XML 45 R28.htm IDEA: XBRL DOCUMENT
v3.25.0.1

BUSINESS SEGMENTS | 12 Months Ended
--- | ---
Dec. 31, 2024
Segment Reporting [Abstract] |
BUSINESS SEGMENTS | BUSINESS SEGMENTS We define our reportable segments based on the way in which the chief operating decision maker (“CODM”), currently our chief executive officer, manages the operations of the Company for purposes of allocating resources and assessing performance. We operate in two operating and reportable business segments: Vacation Ownership and Exchange & Third-Party Management. These segments are managed independently due to the differing nature of their products and services. Vacation Ownership includes a diverse portfolio of resorts that includes some of the world’s most iconic brands licensed under exclusive, long-term relationships. We are the exclusive worldwide developer, marketer, seller and manager of vacation ownership and related products under the Marriott Vacation Club, Grand Residences by Marriott, Sheraton Vacation Club, Westin Vacation Club, and Hyatt Vacation Club brands. We are also the exclusive worldwide developer, marketer and seller of vacation ownership and related products under The Ritz-Carlton Club brand, and we have the non-exclusive right to develop, market and sell whole ownership residential products under The Ritz-Carlton Residences brand. We also have a license to use the St. Regis brand for specified fractional ownership products. Our Vacation Ownership segment generates most of its revenues from four primary sources: selling vacation ownership products; managing vacation ownership resorts, clubs, and owners’ associations; financing consumer purchases of vacation ownership products; and renting vacation ownership inventory. Exchange & Third-Party Management includes an exchange network and membership programs, as well as provision of management services to other resorts and lodging properties. We provide these services through our Interval International and Aqua-Aston businesses. Exchange & Third-Party Management revenue generally is fee-based and derived from membership, exchange, and rental transactions, property and owners’ association management, and other related products and services. VRI Americas was part of the Exchange & Third-Party Management segment through the date of sale in April 2022. See Footnote 3 “Acquisitions and Dispositions” for more information on the disposition of VRI Americas. Our CODM evaluates the performance of our segments based primarily on the results of the segment without allocating corporate expenses or income taxes. We do not allocate corporate interest expense or indirect general and administrative expenses to our segments. We include interest income specific to segment activities within the appropriate segment. We allocate depreciation and amortization, other gains and losses, equity in earnings or losses from our joint ventures, and noncontrolling interest to each of our segments as appropriate. Corporate and other represents that portion of our results that are not allocable to our segments, including those relating to consolidated owners’ associations, as our CODM does not use this information to make operating segment resource allocations. Our CODM uses Adjusted Earnings before Interest Expense, Taxes, Depreciation and Amortization (“Adjusted EBITDA”) to evaluate the profitability of our operating segments, and the components of net income attributable to common stockholders excluded from Adjusted EBITDA are not separately evaluated. Our CODM reviews budget-to-actual variances on a monthly basis using Adjusted EBITDA to make decisions about capital allocation and resource distribution to the segments. Adjusted EBITDA is defined as net income attributable to common stockholders, before interest expense (excluding consumer financing interest expense associated with term securitization transactions), income taxes, depreciation and amortization, excluding share-based compensation expense and adjusted for certain items that affect the comparability of our operating performance. Our reconciliation of the aggregate amount of Adjusted EBITDA for our reportable segments to consolidated net income attributable to common stockholders is presented below. Segment Revenues and Adjusted EBITDA The table below presents the following for the periods presented: revenues, disaggregated by segment, reconciled to consolidated revenue; segment expenses, including significant expense categories and amounts that align with segment-level information regularly provided to our CODM; and segment Adjusted EBITDA reconciled to Net income attributable to common stockholders.
| 2024 |  | 2023 |  | 2022
($ in millions) | Vacation Ownership |  | Exchange & Third-Party Management |  | Total |  | Vacation Ownership |  | Exchange & Third-Party Management |  | Total |  | Vacation Ownership |  | Exchange & Third-Party Management |  | Total
Revenues from external customers | $ | 4,730 |  |  | $ | 231 |  |  | $ | 4,961 |  |  | $ | 4,468 |  |  | $ | 262 |  |  | $ | 4,730 |  |  | $ | 4,342 |  |  | $ | 291 |  |  | $ | 4,633 |
Reconciliation of revenues |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Corporate and other(1) |  |  |  |  | 6 |  |  |  |  |  |  | (3) |  |  |  |  |  |  | 23 |
Total consolidated revenues |  |  |  |  | $ | 4,967 |  |  |  |  |  |  | $ | 4,727 |  |  |  |  |  |  | $ | 4,656 |
Cost of vacation ownership products | (200) |  |  | — |  |  |  |  | (224) |  |  | — |  |  |  |  | (289) |  |  | — |  |  |
Marketing and sales | (919) |  |  | — |  |  |  |  | (823) |  |  | — |  |  |  |  | (807) |  |  | — |  |  |
Management and exchange | (293) |  |  | (122) |  |  |  |  | (270) |  |  | (118) |  |  |  |  | (240) |  |  | (120) |  |  |
Rental | (498) |  |  | — |  |  |  |  | (466) |  |  | — |  |  |  |  | (400) |  |  | — |  |  |
Financing | (146) |  |  | — |  |  |  |  | (113) |  |  | — |  |  |  |  | (75) |  |  | — |  |  |
Royalty fee | (114) |  |  | — |  |  |  |  | (117) |  |  | — |  |  |  |  | (114) |  |  | — |  |  |
Other segment items(2) | (1,715) |  |  | (7) |  |  |  |  | (1,572) |  |  | (14) |  |  |  |  | (1,384) |  |  | (23) |  |  |
Segment Adjusted EBITDA | 845 |  |  | 102 |  |  | 947 |  |  | 883 |  |  | 130 |  |  | 1,013 |  |  | 1,033 |  |  | 148 |  |  | 1,181 |
Corporate and other(1) |  |  |  |  | (220) |  |  |  |  |  |  | (252) |  |  |  |  |  |  | (215) |
Interest expense, net |  |  |  |  | (162) |  |  |  |  |  |  | (145) |  |  |  |  |  |  | (118) |
Depreciation and amortization |  |  |  |  | (146) |  |  |  |  |  |  | (135) |  |  |  |  |  |  | (132) |
Share-based compensation expense |  |  |  |  | (33) |  |  |  |  |  |  | (31) |  |  |  |  |  |  | (39) |
Certain items |  |  |  |  | (79) |  |  |  |  |  |  | (50) |  |  |  |  |  |  | (95) |
Provision for income taxes |  |  |  |  | (89) |  |  |  |  |  |  | (146) |  |  |  |  |  |  | (191) |
Net income attributable to common stockholders |  |  |  |  | $ | 218 |  |  |  |  |  |  | $ | 254 |  |  |  |  |  |  | $ | 391 |
(1)Corporate and Other consist of results that are not allocable to our segments, including company-wide general and administrative expenses, corporate interest expense, transaction and integration costs, and income taxes. In addition, Corporate and Other includes revenues and expenses from Consolidated Property Owners’ Associations. Our CODM does not use this information for operating segment resource allocations. (2)Other segment items include cost reimbursements, non-cash share-based compensation, purchase accounting adjustments related to the Welk acquisition, and other. Depreciation and Amortization
($ in millions) | 2024 |  | 2023 |  | 2022
Vacation Ownership | $ | 100 |  |  | $ | 93 |  |  | $ | 92 |
Exchange & Third-Party Management | 28 |  |  | 31 |  |  | 31 |
Total segment depreciation and amortization | 128 |  |  | 124 |  |  | 123 |
Corporate and other | 18 |  |  | 11 |  |  | 9 |
| $ | 146 |  |  | $ | 135 |  |  | $ | 132 |
Assets
($ in millions) | At December 31, 2024 |  | At December 31, 2023
Vacation Ownership | $ | 8,296 |  |  | $ | 8,167 |
Exchange & Third-Party Management | 777 |  |  | 813 |
Total segment assets | 9,073 |  |  | 8,980 |
Corporate and other | 735 |  |  | 700 |
| $ | 9,808 |  |  | $ | 9,680 |
Capital Expenditures (including inventory)
($ in millions) | 2024 |  | 2023 |  | 2022
Vacation Ownership | $ | 237 |  |  | $ | 171 |  |  | $ | 182 |
Exchange & Third-Party Management | 2 |  |  | — |  |  | — |
Total segment capital expenditures | 239 |  |  | 171 |  |  | 182 |
Corporate and other | 11 |  |  | 63 |  |  | 33 |
| $ | 250 |  |  | $ | 234 |  |  | $ | 215 |
Revenues Excluding Cost Reimbursements
($ in millions) | 2024 |  | 2023 |  | 2022
United States | $ | 2,797 |  |  | $ | 2,722 |  |  | $ | 2,886 |
All other countries | 481 |  |  | 444 |  |  | 403 |
| $ | 3,278 |  |  | $ | 3,166 |  |  | $ | 3,289 |
Property and Equipment, net
($ in millions) | At December 31, 2024 |  | At December 31, 2023
United States | $ | 1,033 |  |  | $ | 1,103 |
All other countries | 137 |  |  | 157 |
| $ | 1,170 |  |  | $ | 1,260 |

X
- References No definition available. + Details
Name: | us-gaap_SegmentReportingAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- 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/exampleRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 48 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482785/280-10-55-48 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (f) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-32 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 270 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (i) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482964/270-10-50-1 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (ee) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-32 Reference 5: http://fasb.org/us-gaap/role/ref/otherTransitionRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-32 Reference 6: http://www.xbrl.org/2003/role/exampleRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 54 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482785/280-10-55-54 Reference 7: http://www.xbrl.org/2003/role/exampleRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 47 -Subparagraph (c) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482785/280-10-55-47 Reference 8: http://www.xbrl.org/2003/role/exampleRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 54 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482785/280-10-55-54 Reference 9: http://www.xbrl.org/2003/role/exampleRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 47 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482785/280-10-55-47 Reference 10: http://www.xbrl.org/2003/role/exampleRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 54 -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482785/280-10-55-54 Reference 11: http://www.xbrl.org/2003/role/exampleRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 47 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482785/280-10-55-47 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 22 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-22 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 31 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-31 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 34 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-34 Reference 15: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 26C -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-26C Reference 16: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 26B -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-26B Reference 17: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 15 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-15 Reference 18: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 42 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-42 Reference 19: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 40 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-40 Reference 20: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/280/tableOfContent Reference 21: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 26 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-26 Reference 22: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 41 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-41 Reference 23: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-21 Reference 24: 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 25: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-32 + Details
Name: | us-gaap_SegmentReportingDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration