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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.
202420232022
($ 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 EBITDA845 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)202420232022
Vacation Ownership$100 $93 $92 
Exchange & Third-Party Management28 31 31 
Total segment depreciation and amortization128 124 123 
Corporate and other18 11 9 
$146 $135 $132 
Assets
($ in millions)At December 31, 2024At December 31, 2023
Vacation Ownership$8,296 $8,167 
Exchange & Third-Party Management777 813 
Total segment assets9,073 8,980 
Corporate and other735 700 
$9,808 $9,680 
Capital Expenditures (including inventory)
($ in millions)202420232022
Vacation Ownership$237 $171 $182 
Exchange & Third-Party Management2 — — 
Total segment capital expenditures239 171 182 
Corporate and other11 63 33 
$250 $234 $215 
Revenues Excluding Cost Reimbursements
($ in millions)202420232022
United States$2,797 $2,722 $2,886 
All other countries481 444 403 
$3,278 $3,166 $3,289 
Property and Equipment, net
($ in millions)At December 31, 2024At December 31, 2023
United States$1,033 $1,103 
All other countries137 157 
$1,170 $1,260