XML 34 R23.htm IDEA: XBRL DOCUMENT v3.25.2
BUSINESS SEGMENTS
 6 Months Ended
Jun. 30, 2025
Segment Reporting [Abstract]  
BUSINESS SEGMENTS
16. 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.
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 and/or forecast-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 amortization of cloud computing software implementation costs, and adjusted for certain items that affect the comparability of our operating performance.
During the first quarter of 2025, we began excluding Amortization of cloud computing software implementation costs, which are not included in Depreciation and amortization, from Adjusted EBITDA for comparability purposes, to address the considerable variability among companies in the utilization of productive assets, and have reclassified prior year amounts to conform with our current year presentation.
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.
Three Months EndedSix Months Ended
June 30, 2025June 30, 2024June 30, 2025June 30, 2024
($ in millions)
Vacation
Ownership
Exchange & Third-Party ManagementTotalVacation OwnershipExchange & Third-Party ManagementTotalVacation OwnershipExchange & Third-Party ManagementTotalVacation OwnershipExchange & Third-Party ManagementTotal
Revenues from external customers$1,188 $53 $1,241 $1,078 $58 $1,136 $2,323 $111 $2,434 $2,208 $123 $2,331 
Reconciliation of revenues
Corporate and other(1)
5 4 12 4 
Total consolidated revenues$1,246 $1,140 $2,446 $2,335 
Cost of vacation ownership products$(41)$— $(38)$— $(83)$— $(91)$— 
Marketing and sales(237)— (226)— (471)— (449)— 
Management and exchange(76)(29)(73)(31)(148)(58)(144)(62)
Rental(129)— (113)— (255)— (223)— 
Financing(37)— (35)— (73)— (69)— 
Royalty fee(28)— (29)— (56)— (57)— 
Other segment items(2)(3)
(409)(1)(383)(2)(785)(2)(781)(4)
Segment Adjusted EBITDA231 23 254 181 25 206 452 51 503 394 57 451 
Corporate and other(1)
(51)(48)(108)(106)
Interest expense, net(42)(43)(82)(83)
Depreciation and amortization(38)(35)(76)(73)
Share-based compensation expense(12)(9)(19)(16)
Amortization of cloud computing software implementation costs(3)
(1)(1)(2)(1)
Certain items(16)(23)(21)(43)
Provision for income taxes(25)(10)(70)(45)
Net income attributable to common stockholders$69 $37 $125 $84 
(1)Corporate and Other consist of results that are not allocable to our segments, including company-wide general and administrative expenses, corporate interest expense, transaction and integration costs, and income taxes. In addition, Corporate and Other includes revenues and expenses from Consolidated Property Owners’ Associations. Our CODM does not use this information for operating segment resource allocations.
(2)Other segment items include cost reimbursements, non-cash share-based compensation, amortization of cloud computing software implementation costs, and other.
(3)Prior year amounts have been reclassified to conform with our current year presentation.
Assets
($ in millions)At June 30, 2025At December 31, 2024
Vacation Ownership$8,430 $8,296 
Exchange & Third-Party Management754 777 
Total segment assets9,184 9,073 
Corporate and other703 735 
$9,887 $9,808