Document_And_Entity_Informatio
Document And Entity Information | 3 Months Ended |
Mar. 31, 2015 | |
Document And Entity Information [Abstract] | |
Document Type | 10-Q |
Amendment Flag | FALSE |
Document Period End Date | 31-Mar-15 |
Document Fiscal Year Focus | 2015 |
Document Fiscal Period Focus | Q1 |
Entity Registrant Name | WYNDHAM WORLDWIDE CORP |
Entity Central Index Key | 1361658 |
Current Fiscal Year End Date | -19 |
Entity Filer Category | Large Accelerated Filer |
Entity Common Stock, Shares Outstanding | 120,045,342 |
Consolidated_Statements_Of_Inc
Consolidated Statements Of Income (USD $) | 3 Months Ended | |
In Millions, except Per Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Net revenues | ||
Service and membership fees | $599 | $590 |
Vacation ownership interest sales | 336 | 303 |
Franchise fees | 147 | 127 |
Consumer financing | 104 | 105 |
Other | 76 | 68 |
Net revenues | 1,262 | 1,193 |
Expenses | ||
Operating | 564 | 534 |
Cost of vacation ownership interests | 33 | 39 |
Consumer financing interest | 18 | 17 |
Marketing and reservation | 195 | 181 |
General and administrative | 181 | 195 |
Restructuring | -1 | 0 |
Depreciation and amortization | 56 | 56 |
Total expenses | 1,046 | 1,022 |
Operating income | 216 | 171 |
Other income, net | -5 | -3 |
Interest expense | 26 | 27 |
Interest income | -3 | -2 |
Income before income taxes | 198 | 149 |
Provision for income taxes | 76 | 59 |
Net income | $122 | $90 |
Earnings per share | ||
Basic (in dollars per share) | $1.01 | $0.70 |
Diluted (in dollars per share) | $1 | $0.69 |
Cash dividends declared per share (in dollars per share) | $0.42 | $0.35 |
Consolidated_Statements_Of_Com
Consolidated Statements Of Comprehensive Income (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Net Income | ||
Net income | $122 | $90 |
Other comprehensive (loss)/income, net of tax | ||
Foreign currency translation adjustments | -80 | 12 |
Unrealized losses on cash flow hedges | -4 | 0 |
Other comprehensive (loss)/income, net of tax | -84 | 12 |
Comprehensive income | $38 | $102 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Mar. 31, 2015 | Dec. 31, 2014 | ||
In Millions, unless otherwise specified | ||||
Assets | ||||
Cash and cash equivalents | $180 | $183 | ||
Trade receivables, net | 718 | 516 | ||
Vacation ownership contract receivables, net | 280 | 285 | ||
Inventory | 292 | [1] | 302 | [1] |
Prepaid expenses | 175 | 147 | ||
Deferred income taxes | 115 | 114 | ||
Other current assets | 347 | 320 | ||
Total current assets | 2,107 | 1,867 | ||
Long-term vacation ownership contract receivables, net | 2,362 | 2,406 | ||
Non-current inventory | 893 | 860 | ||
Property and equipment, net | 1,443 | 1,500 | ||
Goodwill | 1,553 | 1,551 | ||
Trademarks, net | 726 | 717 | ||
Franchise agreements and other intangibles, net | 413 | 397 | ||
Other non-current assets | 401 | 381 | ||
Total assets | 9,898 | 9,679 | ||
Liabilities and Equity | ||||
Securitized vacation ownership debt | 217 | 214 | ||
Current portion of long-term debt | 53 | 47 | ||
Accounts payable | 576 | 385 | ||
Deferred income | 544 | 464 | ||
Accrued expenses and other current liabilities | 696 | 749 | ||
Total current liabilities | 2,086 | 1,859 | ||
Long-term securitized vacation ownership debt | 1,971 | 1,951 | ||
Long-term debt | 2,971 | 2,841 | ||
Deferred income taxes | 1,223 | 1,202 | ||
Deferred income | 195 | 199 | ||
Other non-current liabilities | 368 | 370 | ||
Total liabilities | 8,814 | 8,422 | ||
Commitments and contingencies (Note 12) | ||||
Stockholders' Equity: | ||||
Preferred stock, $.01 par value, authorized 6,000,000 shares, none issued and outstanding | 0 | 0 | ||
Common stock, $.01 par value, authorized 600,000,000 shares, issued 217,523,623 shares in 2015 and 216,862,509 shares in 2014 | 2 | 2 | ||
Treasury stock, at cost - 97,516,481 shares in 2015 and 95,806,076 shares in 2014 | -3,993 | -3,843 | ||
Additional paid-in capital | 3,881 | 3,889 | ||
Retained earnings | 1,252 | 1,183 | ||
Accumulated other comprehensive (loss)/income | -60 | 24 | ||
Total stockholders' equity | 1,082 | 1,255 | ||
Noncontrolling interest | 2 | 2 | ||
Total equity | 1,084 | 1,257 | ||
Total liabilities and equity | $9,898 | $9,679 | ||
[1] | Represents inventory that the Company expects to sell within the next 12 months. |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest [Abstract] | ||
Preferred stock, par value | $0.01 | $0.01 |
Preferred stock, shares authorized | 6,000,000 | 6,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $0.01 | $0.01 |
Common stock, shares authorized | 600,000,000 | 600,000,000 |
Common Stock, Shares, Issued | 217,523,623 | 216,862,509 |
Treasury Stock, Shares | 97,516,481 | 95,806,076 |
Consolidated_Statements_Of_Cas
Consolidated Statements Of Cash Flows (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Operating Activities | ||
Net income | $122 | $90 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 56 | 56 |
Provision for loan losses | 46 | 60 |
Deferred income taxes | 27 | 29 |
Stock-based compensation | 15 | 16 |
Excess tax benefits from stock-based compensation | -17 | -19 |
Non-cash interest | 6 | 6 |
Net change in assets and liabilities, excluding the impact of acquisitions: | ||
Trade receivables | -224 | -228 |
Vacation ownership contract receivables | -14 | -6 |
Inventory | -1 | 22 |
Prepaid expenses | -31 | -4 |
Other current assets | -1 | -36 |
Accounts payable, accrued expenses and other current liabilities | 190 | 184 |
Deferred income | 91 | 137 |
Other, net | -12 | 8 |
Net cash provided by operating activities | 253 | 315 |
Investing Activities | ||
Property and equipment additions | -56 | -46 |
Net assets acquired, net of cash acquired | -60 | -14 |
Development advances | -3 | -1 |
Equity investments and loans | -8 | 0 |
Proceeds from asset sales | 4 | 4 |
Increase in securitization restricted cash | -19 | -19 |
Increase in escrow deposit restricted cash | -10 | -12 |
Other, net | 3 | 0 |
Net cash used in investing activities | -149 | -88 |
Financing Activities | ||
Proceeds from securitized borrowings | 514 | 653 |
Principal payments on securitized borrowings | -491 | -584 |
Proceeds from long-term debt | 31 | 25 |
Principal payments on long-term debt | -60 | -55 |
Proceeds from/(repayments of) commercial paper, net | 158 | -27 |
Dividends to shareholders | -54 | -48 |
Repurchase of common stock | -154 | -152 |
Excess tax benefits from stock-based compensation | 17 | 19 |
Debt issuance costs | -9 | -6 |
Net share settlement of incentive equity awards | -41 | -44 |
Other, net | -2 | 0 |
Net cash used in financing activities | -91 | -219 |
Effect of changes in exchange rates on cash and cash equivalents | -16 | 1 |
Net (decrease)/increase in cash and cash equivalents | -3 | 9 |
Cash and cash equivalents, beginning of period | 183 | 194 |
Cash and cash equivalents, end of period | $180 | $203 |
Consolidated_Statements_Of_Equ
Consolidated Statements Of Equity (USD $) | Total | Common Stock [Member] | Treasury Stock [Member] | Additional Paid-In Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive (Loss)/Income [Member] | Non-controlling Interest [Member] |
In Millions | |||||||
Balance, value at Dec. 31, 2013 | $1,625 | $2 | ($3,191) | $3,858 | $832 | $122 | $2 |
Balance, shares at Dec. 31, 2013 | 128 | ||||||
Net income | 90 | 90 | |||||
Other comprehensive (loss)/income | 12 | 12 | |||||
Issuance of shares for RSU vesting, shares | 1 | ||||||
Net share settlement of incentive equity awards | -44 | -44 | |||||
Change in deferred compensation | 16 | 16 | |||||
Repurchase of common stock, shares | -2 | ||||||
Repurchase of common stock, value | -150 | -150 | |||||
Change in excess tax benefit on equity awards | 19 | 19 | |||||
Dividends | -45 | -45 | |||||
Other | 1 | 1 | |||||
Balance, value at Mar. 31, 2014 | 1,524 | 2 | -3,341 | 3,850 | 877 | 134 | 2 |
Balance, shares at Mar. 31, 2014 | 127 | ||||||
Balance, value at Dec. 31, 2014 | 1,257 | 2 | -3,843 | 3,889 | 1,183 | 24 | 2 |
Balance, shares at Dec. 31, 2014 | 121 | ||||||
Net income | 122 | 122 | |||||
Other comprehensive (loss)/income | -84 | -84 | |||||
Issuance of shares for RSU vesting, shares | 1 | ||||||
Net share settlement of incentive equity awards | -41 | -41 | |||||
Change in deferred compensation | 15 | 15 | |||||
Repurchase of common stock, shares | -2 | ||||||
Repurchase of common stock, value | -150 | -150 | |||||
Change in excess tax benefit on equity awards | 17 | 17 | |||||
Dividends | -53 | -53 | |||||
Other | 1 | 1 | |||||
Balance, value at Mar. 31, 2015 | $1,084 | $2 | ($3,993) | $3,881 | $1,252 | ($60) | $2 |
Balance, shares at Mar. 31, 2015 | 120 |
Basis_Of_Presentation
Basis Of Presentation | 3 Months Ended | |
Mar. 31, 2015 | ||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Basis Of Presentation | ||
Basis of Presentation | ||
Wyndham Worldwide Corporation (“Wyndham” or the “Company”) is a global provider of hospitality services and products. The accompanying Consolidated Financial Statements include the accounts and transactions of Wyndham, as well as the entities in which Wyndham directly or indirectly has a controlling financial interest. The accompanying Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America. All intercompany balances and transactions have been eliminated in the Consolidated Financial Statements. | ||
In presenting the Consolidated Financial Statements, management makes estimates and assumptions that affect the amounts reported and related disclosures. Estimates, by their nature, are based on judgment and available information. Accordingly, actual results could differ from those estimates. In management’s opinion, the Consolidated Financial Statements contain all normal recurring adjustments necessary for a fair presentation of interim results reported. The results of operations reported for interim periods are not necessarily indicative of the results of operations for the entire year or any subsequent interim period. These financial statements should be read in conjunction with the Company’s 2014 Consolidated Financial Statements included in its Annual Report filed on Form 10-K with the Securities and Exchange Commission on February 13, 2015. | ||
Business Description | ||
The Company operates in the following business segments: | ||
• | Lodging—primarily franchises hotels in the upscale, upper midscale, midscale, economy and extended stay segments and provides hotel management services for full-service and select limited-service hotels. | |
• | Vacation Exchange and Rentals—provides vacation exchange services and products to owners of intervals of vacation ownership interests (“VOIs”) and markets vacation rental properties primarily on behalf of independent owners. | |
• | Vacation Ownership—develops, markets and sells VOIs to individual consumers, provides consumer financing in connection with the sale of VOIs and provides property management services at resorts. | |
Recently Issued Accounting Pronouncements | ||
Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement. In April 2015, the Financial Accounting Standards Board (“FASB”) issued guidance on determining whether a cloud computing arrangement contains a software license that should be accounted for as internal-use software. If a cloud computing arrangement does not contain a software license, it should be accounted for as a service contract. This guidance is effective for fiscal years beginning after December 15, 2015 and for interim periods within those fiscal years, with early adoption permitted. The Company is currently evaluating the impact of the adoption of this guidance on the Consolidated Financial Statements. | ||
Simplifying the Presentation of Debt Issuance Costs. In April 2015, the FASB issued guidance on the presentation of debt issuance costs. The guidance requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of the debt liability, consistent with debt discounts. This guidance requires retrospective application and is effective for fiscal years beginning after December 15, 2015 and for interim periods within those fiscal years, with early adoption permitted. The Company is currently evaluating the impact of the adoption of this guidance on the Consolidated Financial Statements. | ||
Disclosure of Uncertainties About an Entity’s Ability to Continue as a Going Concern. In August 2014, the FASB issued guidance on disclosure of uncertainties about an entity’s ability to continue as a going concern. This guidance addresses management’s responsibility in evaluating whether there is substantial doubt about a company’s ability to continue as a going concern and to provide related footnote disclosures. Management’s evaluation should be based on relevant conditions and events that are known and reasonably knowable at the date that the financial statements are issued. This guidance is effective for fiscal years ending after December 15, 2016 and for interim periods within those fiscal years, with early adoption permitted. The Company early adopted the guidance on January 1, 2015. There was no impact on the Consolidated Financial Statements resulting from the adoption. | ||
Revenue from Contracts with Customers. In May 2014, the FASB issued guidance on revenue from contracts with customers. The guidance outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers. This guidance is effective for fiscal years beginning after December 15, 2016 and for interim periods within those fiscal years. In recent re-deliberations, the FASB has decided to propose a one-year deferral of the effective date of this guidance, such that it will be effective on January 1, 2018. The Company is currently evaluating the impact of the adoption of this guidance on the Consolidated Financial Statements. | ||
Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity. In April 2014, the FASB issued guidance on reporting discontinued operations and disclosures of disposals of components of an entity. This guidance changes the criteria for determining which disposals can be presented as discontinued operations and enhances the related disclosure requirements. This guidance is effective for fiscal years beginning after December 15, 2014 and for interim periods within those fiscal years, with early adoption permitted. The Company adopted the guidance on January 1, 2015, as required. There was no material impact on the Consolidated Financial Statements resulting from the adoption. |
Earnings_Per_Share
Earnings Per Share | 3 Months Ended | ||||||||||
Mar. 31, 2015 | |||||||||||
Earnings Per Share Reconciliation [Abstract] | |||||||||||
Earnings Per Share | |||||||||||
Earnings Per Share | |||||||||||
The computation of basic and diluted earnings per share (“EPS”) is based on net income divided by the basic weighted average number of common shares and diluted weighted average number of common shares, respectively. | |||||||||||
The following table sets forth the computation of basic and diluted EPS (in millions, except per share data): | |||||||||||
Three Months Ended | |||||||||||
March 31, | |||||||||||
2015 | 2014 | ||||||||||
Net income | $ | 122 | $ | 90 | |||||||
Basic weighted average shares outstanding | 121 | 128 | |||||||||
SSARs, RSUs and PSUs (a) (b) (c) | 1 | 2 | |||||||||
Weighted average diluted shares outstanding | 122 | 130 | |||||||||
Earnings per share: | |||||||||||
Basic | $ | 1.01 | $ | 0.7 | |||||||
Diluted | 1 | 0.69 | |||||||||
Dividends: | |||||||||||
Aggregate dividends paid to shareholders | $ | 54 | $ | 48 | |||||||
(a) | Includes unvested dilutive restricted stock units (“RSUs”) which are subject to future forfeitures. | ||||||||||
(b) | Excludes 0.6 million and 0.7 million performance vested restricted stock units (“PSUs”) for the three months ended March 31, 2015 and 2014, respectively, as the Company has not met the required performance metrics. | ||||||||||
(c) | Excludes 11,500 and 11,000 stock-settled stock appreciation rights (“SSARs”) for the three months ended March 31, 2015 and 2014, respectively, as their inclusion would have been anti-dilutive to EPS. | ||||||||||
Stock Repurchase Program | |||||||||||
The following table summarizes stock repurchase activity under the current stock repurchase program (in millions, except per share data): | |||||||||||
Shares | Cost | Average Price Per Share | |||||||||
As of December 31, 2014 | 71.3 | $ | 3,062 | $ | 42.94 | ||||||
For the three months ended March 31, 2015 | 1.7 | 150 | 87.72 | ||||||||
As of March 31, 2015 | 73 | $ | 3,212 | 43.99 | |||||||
The Company had $866 million of remaining availability under its program as of March 31, 2015. The total capacity of the program was increased by proceeds received from stock option exercises. |
Acquisitions
Acquisitions | 3 Months Ended | |
Mar. 31, 2015 | ||
Business Combinations [Abstract] | ||
Acquistions | ||
Acquisitions | ||
Assets acquired and liabilities assumed in business combinations were recorded on the Consolidated Balance Sheets as of the respective acquisition dates based upon their estimated fair values at such dates. The results of operations of businesses acquired by the Company have been included in the Consolidated Statements of Income since their respective dates of acquisition. The excess of the purchase price over the estimated fair values of the underlying assets acquired and liabilities assumed was allocated to goodwill. In certain circumstances, the allocations of the excess purchase price are based upon preliminary estimates and assumptions. Accordingly, the allocations may be subject to revision when the Company receives final information, including appraisals and other analyses. Any revisions to the fair values during the allocation period will be recorded by the Company as further adjustments to the purchase price allocations. Although, in certain circumstances, the Company has substantially integrated the operations of its acquired businesses, additional future costs relating to such integration may occur. These costs may result from integrating operating systems, relocating employees, closing facilities, reducing duplicative efforts and exiting and consolidating other activities. These costs will be recorded on the Consolidated Statements of Income as expenses. | ||
Dolce Hotels and Resorts. During January 2015, the Company completed the acquisition of Dolce Hotels and Resorts (“Dolce”) a manager of properties focused on group accommodations. This acquisition is consistent with the Company’s strategy to expand its managed portfolio within the Company’s lodging business. The net consideration of $57 million was comprised of $52 million, net of cash acquired, for the equity of Dolce and $5 million related to debt repaid at closing. The preliminary purchase price allocation resulted in the recognition of $32 million of goodwill, none of which is expected to be deductible for tax purposes, $28 million of definite-lived intangible assets with a weighted average life of 15 years, and $14 million of trademarks. In addition, the fair value of assets acquired and liabilities assumed resulted in $8 million of other assets and $25 million of liabilities, all of which were assigned to the Company’s Lodging segment. This acquisition was not material to the Company’s results of operations, financial position or cash flows. | ||
Other. During March 2015, the Company also completed a business acquisition for $2 million. The preliminary purchase price allocation resulted in the recognition of $2 million of definite-lived intangible assets with a weighted average life of 6 years, all of which was allocated to the Company’s Vacation Exchange and Rentals segment. This acquisition was not material to the Company’s results of operations, financial position or cash flows. The Company also paid an additional $1 million related to acquisitions completed in prior years. |
Intangible_Assets
Intangible Assets | 3 Months Ended | |||||||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||||||||||
Intangible Assets | ||||||||||||||||||||||||
Intangible Assets | ||||||||||||||||||||||||
Intangible assets consisted of: | ||||||||||||||||||||||||
As of March 31, 2015 | As of December 31, 2014 | |||||||||||||||||||||||
Gross | Accumulated | Net | Gross | Accumulated | Net | |||||||||||||||||||
Carrying | Amortization | Carrying | Carrying | Amortization | Carrying | |||||||||||||||||||
Amount | Amount | Amount | Amount | |||||||||||||||||||||
Unamortized Intangible Assets: | ||||||||||||||||||||||||
Goodwill | $ | 1,553 | $ | 1,551 | ||||||||||||||||||||
Trademarks | $ | 723 | $ | 713 | ||||||||||||||||||||
Amortized Intangible Assets: | ||||||||||||||||||||||||
Franchise agreements | $ | 594 | $ | 375 | $ | 219 | $ | 594 | $ | 371 | $ | 223 | ||||||||||||
Management agreements | 131 | 36 | 95 | 105 | 35 | 70 | ||||||||||||||||||
Trademarks | 7 | 4 | 3 | 7 | 3 | 4 | ||||||||||||||||||
Other | 161 | 62 | 99 | 167 | 63 | 104 | ||||||||||||||||||
$ | 893 | $ | 477 | $ | 416 | $ | 873 | $ | 472 | $ | 401 | |||||||||||||
The changes in the carrying amount of goodwill are as follows: | ||||||||||||||||||||||||
Balance as of December 31, 2014 | Goodwill Acquired During 2015 | Foreign | Balance as of March 31, 2015 | |||||||||||||||||||||
Exchange | ||||||||||||||||||||||||
Lodging | $ | 300 | $ | 32 | $ | — | $ | 332 | ||||||||||||||||
Vacation Exchange and Rentals | 1,224 | — | (30 | ) | 1,194 | |||||||||||||||||||
Vacation Ownership | 27 | — | — | 27 | ||||||||||||||||||||
Total Company | $ | 1,551 | $ | 32 | $ | (30 | ) | $ | 1,553 | |||||||||||||||
Amortization expense relating to amortizable intangible assets was as follows: | ||||||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||||||
March 31, | ||||||||||||||||||||||||
2015 | 2014 | |||||||||||||||||||||||
Franchise agreements | $ | 4 | $ | 4 | ||||||||||||||||||||
Management agreements | 2 | 2 | ||||||||||||||||||||||
Other | 3 | 3 | ||||||||||||||||||||||
Total (*) | $ | 9 | $ | 9 | ||||||||||||||||||||
(*) | Included as a component of depreciation and amortization on the Consolidated Statements of Income. | |||||||||||||||||||||||
Based on the Company's amortizable intangible assets as of March 31, 2015, the Company expects related amortization expense as follows: | ||||||||||||||||||||||||
Amount | ||||||||||||||||||||||||
Remainder of 2015 | $ | 28 | ||||||||||||||||||||||
2016 | 35 | |||||||||||||||||||||||
2017 | 34 | |||||||||||||||||||||||
2018 | 33 | |||||||||||||||||||||||
2019 | 32 | |||||||||||||||||||||||
2020 | 31 | |||||||||||||||||||||||
Vacation_Ownership_Contract_Re
Vacation Ownership Contract Receivables | 3 Months Ended | |||||||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||||||
Vacation Ownership Contract Receivables [Abstract] | ||||||||||||||||||||||||
Vacation Ownership Contract Receivables | ||||||||||||||||||||||||
Vacation Ownership Contract Receivables | ||||||||||||||||||||||||
The Company generates vacation ownership contract receivables by extending financing to the purchasers of its VOIs. Current and long-term vacation ownership contract receivables, net consisted of: | ||||||||||||||||||||||||
March 31, | December 31, | |||||||||||||||||||||||
2015 | 2014 | |||||||||||||||||||||||
Current vacation ownership contract receivables: | ||||||||||||||||||||||||
Securitized | $ | 254 | $ | 256 | ||||||||||||||||||||
Non-securitized | 83 | 88 | ||||||||||||||||||||||
337 | 344 | |||||||||||||||||||||||
Less: Allowance for loan losses | 57 | 59 | ||||||||||||||||||||||
Current vacation ownership contract receivables, net | $ | 280 | $ | 285 | ||||||||||||||||||||
Long-term vacation ownership contract receivables: | ||||||||||||||||||||||||
Securitized | $ | 2,218 | $ | 2,256 | ||||||||||||||||||||
Non-securitized | 652 | 672 | ||||||||||||||||||||||
2,870 | 2,928 | |||||||||||||||||||||||
Less: Allowance for loan losses | 508 | 522 | ||||||||||||||||||||||
Long-term vacation ownership contract receivables, net | $ | 2,362 | $ | 2,406 | ||||||||||||||||||||
During the three months ended March 31, 2015 and 2014, the Company’s securitized vacation ownership contract receivables generated interest income of $82 million and $70 million, respectively. Such interest income is included in consumer financing revenues on the Consolidated Statements of Income. | ||||||||||||||||||||||||
Principal payments that are contractually due on the Company’s vacation ownership contract receivables during the next twelve months are classified as current on the Consolidated Balance Sheets. During the three months ended March 31, 2015 and 2014, the Company originated vacation ownership contract receivables of $220 million and $210 million, respectively, and received principal collections of $206 million and $204 million, respectively. The weighted average interest rate on outstanding vacation ownership contract receivables was 13.6% as of both March 31, 2015 and December 31, 2014. | ||||||||||||||||||||||||
The activity in the allowance for loan losses on vacation ownership contract receivables was as follows: | ||||||||||||||||||||||||
Amount | ||||||||||||||||||||||||
Allowance for loan losses as of December 31, 2014 | $ | 581 | ||||||||||||||||||||||
Provision for loan losses | 46 | |||||||||||||||||||||||
Contract receivables write-offs, net | (62 | ) | ||||||||||||||||||||||
Allowance for loan losses as of March 31, 2015 | $ | 565 | ||||||||||||||||||||||
Amount | ||||||||||||||||||||||||
Allowance for loan losses as of December 31, 2013 | $ | 566 | ||||||||||||||||||||||
Provision for loan losses | 60 | |||||||||||||||||||||||
Contract receivables write-offs, net | (63 | ) | ||||||||||||||||||||||
Allowance for loan losses as of March 31, 2014 | $ | 563 | ||||||||||||||||||||||
In accordance with the guidance for accounting for real estate time-sharing transactions, the Company recorded a provision for loan losses of $46 million and $60 million as a reduction of net revenues during the three months ended March 31, 2015 and 2014, respectively. | ||||||||||||||||||||||||
Credit Quality for Financed Receivables and the Allowance for Credit Losses | ||||||||||||||||||||||||
The basis of the differentiation within the identified class of financed VOI contract receivables is the consumer’s FICO score. A FICO score is a branded version of a consumer credit score widely used within the U.S. by the largest banks and lending institutions. FICO scores range from 300 – 850 and are calculated based on information obtained from one or more of the three major U.S. credit reporting agencies that compile and report on a consumer’s credit history. The Company updates its records for all active VOI contract receivables with a balance due on a rolling monthly basis to ensure that all VOI contract receivables are scored at least every six months. The Company groups all VOI contract receivables into five different categories: FICO scores ranging from 700 to 850, 600 to 699, Below 600, No Score (primarily comprised of consumers for whom a score is not readily available, including consumers declining access to FICO scores and non U.S. residents) and Asia Pacific (comprised of receivables in the Company’s Wyndham Vacation Resort Asia Pacific business for which scores are not readily available). | ||||||||||||||||||||||||
The following table details an aged analysis of financing receivables using the most recently updated FICO scores (based on the policy described above): | ||||||||||||||||||||||||
As of March 31, 2015 | ||||||||||||||||||||||||
700+ | 600-699 | <600 | No Score | Asia Pacific | Total | |||||||||||||||||||
Current | $ | 1,528 | $ | 1,015 | $ | 191 | $ | 118 | $ | 243 | $ | 3,095 | ||||||||||||
31 - 60 days | 10 | 19 | 14 | 4 | 2 | 49 | ||||||||||||||||||
61 - 90 days | 7 | 12 | 10 | 2 | 1 | 32 | ||||||||||||||||||
91 - 120 days | 7 | 10 | 11 | 2 | 1 | 31 | ||||||||||||||||||
Total | $ | 1,552 | $ | 1,056 | $ | 226 | $ | 126 | $ | 247 | $ | 3,207 | ||||||||||||
As of December 31, 2014 | ||||||||||||||||||||||||
700+ | 600-699 | <600 | No Score | Asia Pacific | Total | |||||||||||||||||||
Current | $ | 1,556 | $ | 1,028 | $ | 191 | $ | 115 | $ | 261 | $ | 3,151 | ||||||||||||
31 - 60 days | 12 | 23 | 16 | 4 | 3 | 58 | ||||||||||||||||||
61 - 90 days | 7 | 13 | 11 | 2 | 1 | 34 | ||||||||||||||||||
91 - 120 days | 5 | 10 | 11 | 2 | 1 | 29 | ||||||||||||||||||
Total | $ | 1,580 | $ | 1,074 | $ | 229 | $ | 123 | $ | 266 | $ | 3,272 | ||||||||||||
The Company ceases to accrue interest on VOI contract receivables once the contract has remained delinquent for greater than 90 days. At greater than 120 days, the VOI contract receivable is written off to the allowance for loan losses. In accordance with its policy, the Company assesses the allowance for loan losses using a static pool methodology and thus does not assess individual loans for impairment separate from the pool. |
Inventory
Inventory | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Inventory Disclosure [Abstract] | ||||||||
Inventory | ||||||||
Inventory | ||||||||
Inventory consisted of: | ||||||||
March 31, | December 31, | |||||||
2015 | 2014 | |||||||
Land held for VOI development | $ | 136 | $ | 136 | ||||
VOI construction in process | 125 | 226 | ||||||
Inventory sold subject to conditional repurchase | 73 | 73 | ||||||
Completed VOI inventory | 562 | 431 | ||||||
Estimated recoveries | 230 | 235 | ||||||
Exchange and rentals vacation credits and other | 59 | 61 | ||||||
Total inventory | 1,185 | 1,162 | ||||||
Less: Current portion (*) | 292 | 302 | ||||||
Non-current inventory | $ | 893 | $ | 860 | ||||
(*) | Represents inventory that the Company expects to sell within the next 12 months. | |||||||
During the three months ended March 31, 2015 and 2014 the Company transferred $15 million and $12 million, respectively, from property and equipment to VOI inventory. | ||||||||
Inventory Sale Transactions | ||||||||
During 2013, the Company sold real property located in Las Vegas, Nevada and Avon, Colorado to a third-party developer, consisting of vacation ownership inventory and property and equipment. The Company recognized no gain or loss on these transactions. In accordance with the agreements with the third-party developer, the Company has conditional rights and a conditional obligation to repurchase the completed properties from the developer subject to the properties conforming to the Company's vacation ownership resort standards and provided that the third-party developer has not sold the properties to another party. Under the sale of real estate accounting guidance, the conditional rights and obligation of the Company constitute continuing involvement and thus the Company was unable to account for these transactions as a sale. | ||||||||
In connection with such transactions, the Company had outstanding obligations of $81 million as of March 31, 2015, of which $12 million was included within accrued expenses and other current liabilities and $69 million was included within other non-current liabilities on the Consolidated Balance Sheet. As of December 31, 2014, the Company had outstanding obligations of $81 million, of which $7 million was included within accrued expenses and other current liabilities and $74 million was included within other non-current liabilities on the Consolidated Balance Sheet (see Note 12 - Commitments and Contingencies for more detailed information). |
LongTerm_Debt_And_Borrowing_Ar
Long-Term Debt And Borrowing Arrangements | 3 Months Ended | |||||||||||
Mar. 31, 2015 | ||||||||||||
Debt Disclosure [Abstract] | ||||||||||||
Long-Term Debt And Borrowing Arrangements | ||||||||||||
Long-Term Debt and Borrowing Arrangements | ||||||||||||
The Company’s indebtedness consisted of: | ||||||||||||
March 31, | December 31, | |||||||||||
2015 | 2014 | |||||||||||
Securitized vacation ownership debt: (a) | ||||||||||||
Term notes | $ | 2,090 | $ | 1,962 | ||||||||
Bank conduit facility (due August 2016) | 98 | 203 | ||||||||||
Total securitized vacation ownership debt | 2,188 | 2,165 | ||||||||||
Less: Current portion of securitized vacation ownership debt | 217 | 214 | ||||||||||
Long-term securitized vacation ownership debt | $ | 1,971 | $ | 1,951 | ||||||||
Long-term debt: (b) | ||||||||||||
Revolving credit facility (due July 2020) | $ | 14 | $ | 25 | ||||||||
Commercial paper | 346 | 189 | ||||||||||
$315 million 6.00% senior unsecured notes (due December 2016) (c) | 317 | 317 | ||||||||||
$300 million 2.95% senior unsecured notes (due March 2017) | 299 | 299 | ||||||||||
$14 million 5.75% senior unsecured notes (due February 2018) | 14 | 14 | ||||||||||
$450 million 2.50% senior unsecured notes (due March 2018) | 448 | 448 | ||||||||||
$40 million 7.375% senior unsecured notes (due March 2020) | 40 | 40 | ||||||||||
$250 million 5.625% senior unsecured notes (due March 2021) | 247 | 247 | ||||||||||
$650 million 4.25% senior unsecured notes (due March 2022) (d) | 650 | 648 | ||||||||||
$400 million 3.90% senior unsecured notes (due March 2023) (e) | 418 | 410 | ||||||||||
Capital leases | 161 | 170 | ||||||||||
Other | 70 | 81 | ||||||||||
Total long-term debt | 3,024 | 2,888 | ||||||||||
Less: Current portion of long-term debt | 53 | 47 | ||||||||||
Long-term debt | $ | 2,971 | $ | 2,841 | ||||||||
(a) | Represents non-recourse debt that is securitized through bankruptcy-remote special purpose entities (“SPEs”), the creditors of which have no recourse to the Company for principal and interest. These outstanding borrowings are collateralized by $2,609 million and $2,629 million of underlying gross vacation ownership contract receivables and related assets as of March 31, 2015 and December 31, 2014, respectively. | |||||||||||
(b) | The carrying amounts of the senior unsecured notes are net of unamortized discounts aggregating $14 million as of both March 31, 2015 and December 31, 2014. | |||||||||||
(c) | Includes $2 million of unamortized gains from the settlement of a derivative as of both March 31, 2015 and December 31, 2014. | |||||||||||
(d) | Includes an increase of $4 million and $3 million in the carrying value resulting from a fair value hedge derivative as of March 31, 2015 and December 31, 2014, respectively. | |||||||||||
(e) | Includes an increase of $21 million and $13 million in the carrying value resulting from a fair value hedge derivative as of March 31, 2015 and December 31, 2014, respectively. | |||||||||||
Debt Issuances | ||||||||||||
Sierra Timeshare 2015-1 Receivables Funding, LLC. During March 2015, the Company closed a series of term notes payable, Sierra Timeshare 2015-1 Receivables Funding, LLC, with an initial principal amount of $350 million, which are secured by vacation ownership contract receivables and bear interest at a weighted average coupon rate of 2.54%. The advance rate for this transaction was 90%. As of March 31, 2015, the Company had $350 million of outstanding borrowings under these term notes. | ||||||||||||
Revolving Credit Facility. During March 2015, the Company replaced its $1.5 billion revolving credit facility expiring on July 15, 2018 with a $1.5 billion revolving credit facility that expires on July 15, 2020. This facility is subject to a facility fee of 20 basis points based on total capacity and bears interest at LIBOR plus 130 basis points. The facility fee and interest rate are dependent on the Company's credit ratings. The available capacity of the facility also supports the Company's commercial paper programs. | ||||||||||||
Commercial Paper | ||||||||||||
The Company maintains U.S. and European commercial paper programs with a total capacity of $750 million and $500 million, respectively. As of March 31, 2015, the Company had outstanding borrowings of $346 million at a weighted average interest rate of 1.01%, all of which were under its U.S. commercial paper program. As of December 31, 2014, the Company had outstanding borrowings of $189 million at a weighted average interest rate of 0.89%, all of which were under its U.S. commercial paper program. The Company considers outstanding borrowings under its commercial paper programs to be a reduction of available capacity on its revolving credit facility. | ||||||||||||
Fair Value Hedges | ||||||||||||
The Company has fixed to variable interest rate swap agreements on its 3.90% and 4.25% senior unsecured notes with notional amounts of $400 million and $100 million, respectively. The fixed interest rates on these notes were effectively modified to a variable LIBOR-based index. As of March 31, 2015, the variable interest rates on the notional portion of the 3.90% and 4.25% senior unsecured notes were 2.37% and 2.28%, respectively. The aggregate fair value of these interest rate swap agreements resulted in $28 million and $18 million of assets as of March 31, 2015 and December 31, 2014, respectively. Such assets are included in other non-current assets on the Consolidated Balance Sheets. | ||||||||||||
Maturities and Capacity | ||||||||||||
The Company’s outstanding debt as of March 31, 2015 matures as follows: | ||||||||||||
Securitized Vacation Ownership Debt | Long-Term Debt | Total | ||||||||||
Within 1 year | $ | 217 | $ | 53 | $ | 270 | ||||||
Between 1 and 2 years | 243 | 660 | 903 | |||||||||
Between 2 and 3 years | 296 | 476 | 772 | |||||||||
Between 3 and 4 years | 221 | 13 | 234 | |||||||||
Between 4 and 5 years | 227 | 53 | 280 | |||||||||
Thereafter | 984 | 1,769 | 2,753 | |||||||||
$ | 2,188 | $ | 3,024 | $ | 5,212 | |||||||
Debt maturities of the securitized vacation ownership debt are based on the contractual payment terms of the underlying vacation ownership contract receivables. As such, actual maturities may differ as a result of prepayments by the vacation ownership contract receivable obligors. | ||||||||||||
As of March 31, 2015, available capacity under the Company’s borrowing arrangements was as follows: | ||||||||||||
Securitized Bank | Revolving | |||||||||||
Conduit Facility (a) | Credit Facility | |||||||||||
Total Capacity | $ | 650 | $ | 1,500 | ||||||||
Less: Outstanding Borrowings | 98 | 14 | ||||||||||
Letters of credit | — | 1 | ||||||||||
Commercial paper borrowings | — | 346 | (b) | |||||||||
Available Capacity | $ | 552 | $ | 1,139 | ||||||||
(a) | The capacity of this facility is subject to the Company’s ability to provide additional assets to collateralize additional securitized borrowings. | |||||||||||
(b) | The Company considers outstanding borrowings under its commercial paper programs to be a reduction of the available capacity of its revolving credit facility. | |||||||||||
Interest Expense | ||||||||||||
During the three months ended March 31, 2015, the Company incurred non-securitized interest expense of $26 million, which primarily consisted of $29 million of interest on long-term debt, partially offset by $2 million of capitalized interest and $1 million of gains resulting from the ineffectiveness of the fair value hedges. Such amount is included within interest expense on the Consolidated Statement of Income. Cash paid related to interest on the Company’s non-securitized debt was $43 million during the three months ended March 31, 2015. | ||||||||||||
During the three months ended March 31, 2014, the Company incurred non-securitized interest expense of $27 million, which primarily consisted of $28 million of interest on long-term debt, partially offset by $1 million of capitalized interest. Such amount is included within interest expense on the Consolidated Statement of Income. Cash paid related to interest on the Company’s non-securitized debt was $42 million during the three months ended March 31, 2014. | ||||||||||||
Interest expense incurred in connection with the Company’s securitized vacation ownership debt during the three months ended March 31, 2015 and 2014 was $18 million and $17 million, respectively, and is recorded within consumer financing interest on the Consolidated Statements of Income. Cash paid related to such interest was $14 million and $13 million during the three months ended March 31, 2015 and 2014, respectively. |
Variable_Interest_Entities
Variable Interest Entities | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Variable Interest Entity, Classification of Carrying Amount, Assets and Liabilities, Net [Abstract] | ||||||||
Variable Interest Entities | ||||||||
Variable Interest Entities | ||||||||
In accordance with the applicable accounting guidance for the consolidation of a variable interest entity (“VIE”), the Company analyzes its variable interests, including loans, guarantees, SPEs and equity investments to determine if an entity in which the Company has a variable interest is a VIE. If the entity is considered to be a VIE, the Company determines whether it would be considered the entity’s primary beneficiary. The Company consolidates into its financial statements those VIEs for which it has determined that it is the primary beneficiary. | ||||||||
Vacation Ownership Contract Receivables Securitizations | ||||||||
The Company pools qualifying vacation ownership contract receivables and sells them to bankruptcy-remote entities. Vacation ownership contract receivables qualify for securitization based primarily on the credit strength of the VOI purchaser to whom financing has been extended. Vacation ownership contract receivables are securitized through bankruptcy-remote SPEs that are consolidated within the Consolidated Financial Statements. As a result, the Company does not recognize gains or losses resulting from these securitizations at the time of sale to the SPEs. Interest income is recognized when earned over the contractual life of the vacation ownership contract receivables. The Company services the securitized vacation ownership contract receivables pursuant to servicing agreements negotiated on an arms-length basis based on market conditions. The activities of these SPEs are limited to (i) purchasing vacation ownership contract receivables from the Company’s vacation ownership subsidiaries, (ii) issuing debt securities and/or borrowing under a conduit facility to fund such purchases and (iii) entering into derivatives to hedge interest rate exposure. The bankruptcy-remote SPEs are legally separate from the Company. The receivables held by the bankruptcy-remote SPEs are not available to creditors of the Company and legally are not assets of the Company. Additionally, the creditors of these SPEs have no recourse to the Company for principal and interest. | ||||||||
The assets and liabilities of these vacation ownership SPEs are as follows: | ||||||||
March 31, | December 31, | |||||||
2015 | 2014 | |||||||
Securitized contract receivables, gross (a) | $ | 2,472 | $ | 2,512 | ||||
Securitized restricted cash (b) | 116 | 96 | ||||||
Interest receivables on securitized contract receivables (c) | 19 | 20 | ||||||
Other assets (d) | 2 | 1 | ||||||
Total SPE assets (e) | 2,609 | 2,629 | ||||||
Securitized term notes (f) | 2,090 | 1,962 | ||||||
Securitized conduit facilities (f) | 98 | 203 | ||||||
Other liabilities (g) | 2 | 1 | ||||||
Total SPE liabilities | 2,190 | 2,166 | ||||||
SPE assets in excess of SPE liabilities | $ | 419 | $ | 463 | ||||
(a) | Included in current ($254 million and $256 million as of March 31, 2015 and December 31, 2014, respectively) and non-current ($2,218 million and $2,256 million as of March 31, 2015 and December 31, 2014, respectively) vacation ownership contract receivables on the Consolidated Balance Sheets. | |||||||
(b) | Included in other current assets ($90 million and $75 million as of March 31, 2015 and December 31, 2014, respectively) and other non-current assets ($26 million and $21 million as of March 31, 2015 and December 31, 2014, respectively) on the Consolidated Balance Sheets. | |||||||
(c) | Included in trade receivables, net on the Consolidated Balance Sheets. | |||||||
(d) | Includes interest rate derivative contracts and related assets; included in other non-current assets on the Consolidated Balance Sheets. | |||||||
(e) | Excludes deferred financing costs of $31 million and $30 million as of March 31, 2015 and December 31, 2014, respectively, related to securitized debt. | |||||||
(f) | Included in current ($217 million and $214 million as of March 31, 2015 and December 31, 2014, respectively) and long-term ($1,971 million and $1,951 million as of March 31, 2015 and December 31, 2014, respectively) securitized vacation ownership debt on the Consolidated Balance Sheets. | |||||||
(g) | Primarily includes accrued interest on securitized debt of $2 million and $1 million as of March 31, 2015 and December 31, 2014, respectively, which is included in accrued expenses and other current liabilities on the Consolidated Balance Sheets. | |||||||
In addition, the Company has vacation ownership contract receivables that have not been securitized through bankruptcy-remote SPEs. Such gross receivables were $735 million and $760 million as of March 31, 2015 and December 31, 2014, respectively. A summary of total vacation ownership receivables and other securitized assets, net of securitized liabilities and the allowance for loan losses, is as follows: | ||||||||
March 31, | December 31, | |||||||
2015 | 2014 | |||||||
SPE assets in excess of SPE liabilities | $ | 419 | $ | 463 | ||||
Non-securitized contract receivables | 735 | 760 | ||||||
Less: Allowance for loan losses | 565 | 581 | ||||||
Total, net | $ | 589 | $ | 642 | ||||
In addition to restricted cash related to securitizations, the Company had $61 million and $51 million of restricted cash related to escrow deposits as of March 31, 2015 and December 31, 2014, respectively, which are recorded within other current assets on the Consolidated Balance Sheets. | ||||||||
Midtown 45, NYC Property | ||||||||
During January 2013, the Company entered into an agreement with a third-party partner whereby the partner acquired the Midtown 45 property in New York City through an SPE. The Company is managing and operating the property for rental purposes while the Company converts it into VOI inventory. The SPE financed the acquisition and planned renovations with a four-year mortgage note and mandatorily redeemable equity provided by related parties of such partner. At the time of the agreement, the Company committed to purchase such VOI inventory from the SPE over a four-year period which will be used to repay the four-year mortgage note and the mandatorily redeemable equity of the SPE. The Company is considered to be the primary beneficiary of the SPE and therefore, the Company consolidated the SPE within its financial statements. | ||||||||
The assets and liabilities of the SPE are as follows: | ||||||||
March 31, | December 31, | |||||||
2015 | 2014 | |||||||
Property and equipment, net | $ | 54 | $ | 64 | ||||
Total SPE assets | 54 | 64 | ||||||
Accrued expenses and other current liabilities | — | 1 | ||||||
Long-term debt (*) | 64 | 77 | ||||||
Total SPE liabilities | 64 | 78 | ||||||
SPE deficit | $ | (10 | ) | $ | (14 | ) | ||
(*) | As of March 31, 2015, included $59 million for a four-year mortgage note and $5 million of mandatorily redeemable equity, of which $34 million was included in current portion of long-term debt on the Consolidated Balance Sheet. As of December 31, 2014, included $71 million for a four-year mortgage note and $6 million of mandatorily redeemable equity, of which $31 million was included in current portion of long-term debt on the Consolidated Balance Sheet. | |||||||
During 2015, the SPE conveyed $10 million of property and equipment to the Company. |
Fair_Value
Fair Value | 3 Months Ended | |||||||||||||||
Mar. 31, 2015 | ||||||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||||||
Fair Value | ||||||||||||||||
Fair Value | ||||||||||||||||
The following table presents information about the Company’s financial assets and liabilities that are measured at fair value on a recurring basis and indicates the fair value hierarchy of the valuation techniques utilized by the Company to determine such fair values. Financial assets and liabilities carried at fair value are classified and disclosed in one of the following three categories: | ||||||||||||||||
Level 1: Quoted prices for identical instruments in active markets. | ||||||||||||||||
Level 2: Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations whose inputs are observable or whose significant value driver is observable. | ||||||||||||||||
Level 3: Unobservable inputs used when little or no market data is available. | ||||||||||||||||
In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, the level in the fair value hierarchy within which the fair value measurement falls has been determined based on the lowest level input (closest to Level 3) that is significant to the fair value measurement. The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment, and considers factors specific to the asset or liability. | ||||||||||||||||
The following table summarizes information regarding assets and liabilities that are measured at fair value (all of which are Level 2) on a recurring basis: | ||||||||||||||||
As of | As of | |||||||||||||||
March 31, 2015 | December 31, 2014 | |||||||||||||||
Fair Value | Carrying Amount | Fair Value | Carrying Amount | |||||||||||||
Assets | ||||||||||||||||
Derivatives: (a) | ||||||||||||||||
Interest rate contracts | $ | 28 | $ | 28 | $ | 18 | $ | 18 | ||||||||
Foreign exchange contracts | 1 | 1 | 1 | 1 | ||||||||||||
Total assets | $ | 29 | $ | 29 | $ | 19 | $ | 19 | ||||||||
Liabilities | ||||||||||||||||
Derivatives: (b) | ||||||||||||||||
Interest rate contracts (c) | $ | 12 | $ | 12 | $ | 4 | $ | 4 | ||||||||
Foreign exchange contracts | 6 | 6 | 3 | 3 | ||||||||||||
Total liabilities | $ | 18 | $ | 18 | $ | 7 | $ | 7 | ||||||||
(a) | Included in other current assets ($1 million as of both March 31, 2015 and December 31, 2014) and other non-current assets ($28 million and $18 million as of March 31, 2015 and December 31, 2014, respectively) on the Consolidated Balance Sheets. | |||||||||||||||
(b) | Included in accrued expenses and other current liabilities ($18 million and $7 million as of March 31, 2015 and December 31, 2014, respectively). | |||||||||||||||
(c) | Liabilities of $12 million and $4 million as of March 31, 2015 and December 31, 2014, respectively, primarily represent interest rate swap locks for an anticipated 2015 transaction. | |||||||||||||||
The Company’s derivative instruments primarily consist of pay-fixed/receive-variable interest rate swaps, pay-variable/receive-fixed interest rate swaps, interest rate caps, foreign exchange forward contracts and foreign exchange average rate forward contracts. For assets and liabilities that are measured using quoted prices in active markets, the fair value is the published market price per unit multiplied by the number of units held without consideration of transaction costs. Assets and liabilities that are measured using other significant observable inputs are valued by reference to similar assets and liabilities. For these items, a significant portion of fair value is derived by reference to quoted prices of similar assets and liabilities in active markets. For assets and liabilities that are measured using significant unobservable inputs, fair value is primarily derived using a fair value model, such as a discounted cash flow model. | ||||||||||||||||
The fair value of financial instruments is generally determined by reference to market values resulting from trading on a national securities exchange or in an over-the-counter market. In cases where quoted market prices are not available, fair value is based on estimates using present value or other valuation techniques, as appropriate. The carrying amounts of cash and cash equivalents, restricted cash, trade receivables, accounts payable and accrued expenses and other current liabilities approximate fair value due to the short-term maturities of these assets and liabilities. The carrying amounts and estimated fair values of all other financial instruments are as follows: | ||||||||||||||||
March 31, 2015 | December 31, 2014 | |||||||||||||||
Carrying | Estimated Fair Value | Carrying | Estimated Fair Value | |||||||||||||
Amount | Amount | |||||||||||||||
Assets | ||||||||||||||||
Vacation ownership contract receivables, net | $ | 2,642 | $ | 3,242 | $ | 2,691 | $ | 3,284 | ||||||||
Debt | ||||||||||||||||
Total debt | 5,212 | 5,314 | 5,053 | 5,140 | ||||||||||||
The Company estimates the fair value of its vacation ownership contract receivables using a discounted cash flow model which it believes is comparable to the model that an independent third-party would use in the current market. The model uses Level 3 inputs consisting of default rates, prepayment rates, coupon rates and loan terms for the contract receivables portfolio as key drivers of risk and relative value that, when applied in combination with pricing parameters, determines the fair value of the underlying contract receivables. | ||||||||||||||||
The Company estimates the fair value of its securitized vacation ownership debt by obtaining Level 2 inputs comprised of indicative bids from investment banks that actively issue and facilitate the secondary market for timeshare securities. The Company determines the fair value of its senior notes using quoted market prices as such senior notes are not actively traded and thus are considered Level 2 inputs. Additionally, the Company estimates the fair value of its other long-term debt, excluding capital leases, using Level 2 inputs based on indicative bids from investment banks. |
Derivative_Instruments_And_Hed
Derivative Instruments And Hedging Activities | 3 Months Ended | |
Mar. 31, 2015 | ||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Derivative Instruments And Hedging Activities | ||
Derivative Instruments and Hedging Activities | ||
Foreign Currency Risk | ||
The Company has foreign currency rate exposure to exchange rate fluctuations worldwide with particular exposure to the British pound, Euro, Canadian and Australian dollar. The Company uses freestanding foreign currency forward contracts to manage a portion of its exposure to changes in foreign currency exchange rates associated with its foreign currency denominated receivables, payables and forecasted earnings of foreign subsidiaries. Additionally, the Company uses foreign currency forward contracts designated as cash flow hedges to manage a portion of its exposure to changes in forecasted foreign currency denominated vendor payments. Gains and losses relating to freestanding foreign currency contracts are included in operating expenses on the Company’s Consolidated Statements of Income and are substantially offset by the earnings effect from the underlying items that were economically hedged. The freestanding foreign currency contracts resulted in losses of $12 million and $1 million during the three months ended March 31, 2015 and 2014, respectively. The amount of gains or losses relating to contracts designated as cash flow hedges that the Company expects to reclassify from accumulated other comprehensive income (“AOCI”) to earnings over the next 12 months is not material. | ||
Interest Rate Risk | ||
A portion of the debt used to finance the Company’s operations is exposed to interest rate fluctuations. The Company uses various hedging strategies and derivative financial instruments to create a desired mix of fixed and floating rate assets and liabilities. Derivative instruments currently used in these hedging strategies include swaps and interest rate caps. The derivatives used to manage the risk associated with the Company’s floating rate debt include freestanding derivatives and derivatives designated as cash flow hedges. The Company also uses swaps to convert specific fixed-rate debt into variable-rate debt (i.e., fair value hedges) to manage the overall interest cost. For relationships designated as fair value hedges, changes in the fair value of the derivatives are recorded in income with offsetting adjustments to the carrying amount of the hedged debt. The amount of gains or losses that the Company expects to reclassify from AOCI to earnings during the next 12 months is not material. | ||
Gains or losses recognized in AOCI for the three months ended March 31, 2015 and 2014 were not material. |
Income_Taxes
Income Taxes | 3 Months Ended | |
Mar. 31, 2015 | ||
Current Income Tax Expense (Benefit), Continuing Operations [Abstract] | ||
Income Taxes | ||
Income Taxes | ||
The Company files income tax returns in the U.S. federal jurisdiction and various states and foreign jurisdictions. The Company is no longer subject to U.S. federal income tax examinations for years prior to 2011. In addition, with few exceptions, the Company is no longer subject to state and local, or non-U.S. income tax examinations for years prior to 2006. | ||
The Company’s effective tax rate decreased from 39.6% during the three months ended March 31, 2014 to 38.4% during the three months ended March 31, 2015 primarily due to the absence of the Venezuelan foreign exchange devaluation loss incurred during the first quarter of 2014, for which the Company received no tax benefit. | ||
The Company made cash income tax payments, net of refunds, of $17 million and $13 million during the three months ended March 31, 2015 and 2014, respectively. |
Commitments_And_Contingencies
Commitments And Contingencies | 3 Months Ended | |
Mar. 31, 2015 | ||
Commitments and Contingencies Disclosure [Abstract] | ||
Commitments And Contingencies | ||
Commitments and Contingencies | ||
The Company is involved in claims, legal and regulatory proceedings and governmental inquiries related to the Company’s business. | ||
Wyndham Worldwide Corporation Litigation | ||
The Company is involved in claims, legal and regulatory proceedings and governmental inquiries arising in the ordinary course of its business including but not limited to: for its lodging business-breach of contract, fraud and bad faith claims between franchisors and franchisees in connection with franchise agreements and with owners in connection with management contracts, negligence, breach of contract, fraud, employment, consumer protection and other statutory claims asserted in connection with alleged acts or occurrences at owned, franchised or managed properties or in relation to guest reservations and bookings; for its vacation exchange and rentals business-breach of contract, fraud and bad faith claims by affiliates and customers in connection with their respective agreements, negligence, breach of contract, fraud, consumer protection and other statutory claims asserted by members and guests for alleged injuries sustained at affiliated resorts and vacation rental properties and consumer protection and other statutory claims asserted by consumers; for its vacation ownership business-breach of contract, bad faith, conflict of interest, fraud, consumer protection and other statutory claims by property owners’ associations, owners and prospective owners in connection with the sale or use of VOIs or land, or the management of vacation ownership resorts, construction defect claims relating to vacation ownership units or resorts, and negligence, breach of contract, fraud, consumer protection and other statutory claims by guests for alleged injuries sustained at vacation ownership units or resorts; and for each of its businesses, bankruptcy proceedings involving efforts to collect receivables from a debtor in bankruptcy, employment matters which may include claims of retaliation, discrimination, harassment and wage and hour claims, claims of infringement upon third parties’ intellectual property rights, claims relating to information security, privacy and consumer protection, tax claims and environmental claims. | ||
On June 26, 2012, the U.S. Federal Trade Commission (“FTC”) filed a lawsuit in Federal District Court for the District of Arizona against the Company and its subsidiaries, Wyndham Hotel Group, LLC (“WHG”), Wyndham Hotels & Resorts Inc. (“WHR”) and Wyndham Hotel Management Inc. (“WHM”), alleging unfairness and deception-based violations of Section 5 of the FTC Act in connection with three prior data breach incidents involving a group of Wyndham brand hotels. The Company, WHG, WHR and WHM dispute the allegations in the lawsuit and are defending this lawsuit vigorously. The Company does not believe that the data breach incidents were material, nor does it expect that the outcome of the FTC litigation will have a material effect on the Company’s results of operations, financial position or cash flows. On March 26, 2013, the Company’s, WHG’s, WHR’s and WHM’s motion to transfer venue of the lawsuit from Arizona to the Federal District Court for the District of New Jersey was granted. WHR’s motion to dismiss the lawsuit was denied on April 7, 2014. The Court granted WHR’s motion to certify its order denying WHR’s motion to dismiss for interlocutory appeal on June 23, 2014. The motion to dismiss the lawsuit filed by the Company, WHG and WHM was denied on June 23, 2014. On July 29, 2014, the Third Circuit Court of Appeals granted WHR’s request to file an interlocutory appeal of the District Court’s denial of its motion to dismiss. WHR filed its brief in support of its interlocutory appeal on October 6, 2014. The FTC filed its opposition brief on November 5, 2014, and WHR filed its reply brief on December 8, 2014. The Third Circuit Court of Appeals held oral argument on the interlocutory appeal on March 3, 2015, and the parties submitted additional briefings on March 27, 2015. The Company is unable at this time to estimate any loss or range of reasonably possible loss. | ||
The Company records an accrual for legal contingencies when it determines, after consultation with outside counsel, that it is probable that a liability has been incurred and the amount of the loss can be reasonably estimated. In making such determinations, the Company evaluates, among other things, the degree of probability of an unfavorable outcome and, when it is probable that a liability has been incurred, the Company’s ability to make a reasonable estimate of loss. The Company reviews these accruals each reporting period and makes revisions based on changes in facts and circumstances including changes to its strategy in dealing with these matters. | ||
The Company believes that it has adequately accrued for such matters with reserves of $26 million and $24 million as of March 31, 2015 and December 31, 2014, respectively. Such reserves are exclusive of matters relating to the Company’s separation from Cendant (“Separation”). For matters not requiring accrual, the Company believes that such matters will not have a material effect on its results of operations, financial position or cash flows based on information currently available. However, litigation is inherently unpredictable and, although the Company believes that its accruals are adequate and/or that it has valid defenses in these matters, unfavorable results could occur. As such, an adverse outcome from such proceedings for which claims are awarded in excess of the amounts accrued, if any, could be material to the Company with respect to earnings and/or cash flows in any given reporting period. As of March 31, 2015, the potential exposure resulting from adverse outcomes of such legal proceedings could, in the aggregate, range up to $23 million in excess of recorded accruals. However, the Company does not believe that the impact of such litigation should result in a material liability to the Company in relation to its consolidated financial position or liquidity. | ||
Other Guarantees/Indemnifications | ||
Lodging | ||
From time to time, the Company may enter into a hotel management agreement that provides the hotel owner with a guarantee of a certain level of profitability based upon various metrics. Under such an agreement, the Company would be required to compensate such hotel owner for any profitability shortfall over the life of the management agreement up to a specified aggregate amount. For certain agreements, the Company may be able to recapture all or a portion of the shortfall payments in the event that future operating results exceed targets. The terms of such guarantees generally range from 7 to 10 years and certain agreements may provide for early termination provisions under certain circumstances. As of March 31, 2015, the maximum potential amount of future payments that may be made under these guarantees was $175 million with a combined annual cap of $45 million. | ||
In connection with such performance guarantees, as of March 31, 2015, the Company maintained a liability of $30 million, of which $24 million was included in other non-current liabilities and $6 million was included in accrued expenses and other current liabilities on its Consolidated Balance Sheet. As of March 31, 2015, the Company also had a corresponding $38 million asset related to these guarantees, of which $34 million was included in other non-current assets and $4 million was included in other current assets on its Consolidated Balance Sheet. As of December 31, 2014, the Company maintained a liability of $32 million, of which $31 million was included in other non-current liabilities and $1 million was included in accrued expenses and other current liabilities on its Consolidated Balance Sheet. As of December 31, 2014, the Company also had a corresponding $39 million asset related to the guarantees, of which $35 million was included in other non-current assets and $4 million was included in other current assets on its Consolidated Balance Sheet. Such assets are being amortized on a straight-line basis over the life of the agreements. The amortization expense for the performance guarantees noted above was $1 million for both the three months ended March 31, 2015 and 2014. | ||
For guarantees subject to recapture provisions, the Company had a receivable of $33 million as of March 31, 2015, of which $4 million was included in other current assets and $29 million was included in other non-current assets on its Consolidated Balance Sheet. As of December 31, 2014, the Company had a receivable of $26 million which was included in other non-current assets on its Consolidated Balance Sheet. Such receivables were the result of payments made to date which are subject to recapture and which the Company believes will be recoverable from future operating performance. | ||
Vacation Ownership | ||
The Company guarantees its vacation ownership subsidiary’s obligations to repurchase completed property in Las Vegas, Nevada from a third-party developer subject to the property meeting the Company’s vacation ownership resort standards and provided that the third-party developer has not sold the property to another party. The maximum potential future payments that the Company could be required to make under these commitments were $262 million as of March 31, 2015. | ||
Cendant Litigation | ||
Under the Separation agreement, the Company agreed to be responsible for 37.5% of certain of Cendant’s contingent and other corporate liabilities and associated costs, including certain contingent litigation. Since the Separation, Cendant settled the majority of the lawsuits pending on the date of the Separation. See also Note 17 - Separation Adjustments and Transactions with Former Parent and Subsidiaries regarding contingent litigation liabilities resulting from the Separation. |
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive (Loss)/Income | 3 Months Ended | |||||||||||||||
Mar. 31, 2015 | ||||||||||||||||
Accumulated Other Comprehensive Income [Abstract] | ||||||||||||||||
Accumulated Other Comprehensive (Loss)/Income | ||||||||||||||||
Accumulated Other Comprehensive (Loss)/Income | ||||||||||||||||
The components of AOCI are as follows: | ||||||||||||||||
Foreign | Unrealized | Defined | ||||||||||||||
Currency | Gains/(Losses) | Benefit | ||||||||||||||
Translation | on Cash Flow | Pension | ||||||||||||||
Pretax | Adjustments | Hedges | Plans | AOCI | ||||||||||||
Balance, December 31, 2014 | $ | (13 | ) | $ | (8 | ) | $ | (12 | ) | $ | (33 | ) | ||||
Period change | (97 | ) | (6 | ) | — | (103 | ) | |||||||||
Balance, March 31, 2015 | $ | (110 | ) | $ | (14 | ) | $ | (12 | ) | $ | (136 | ) | ||||
Foreign | Unrealized | Defined | ||||||||||||||
Currency | Gains/(Losses) | Benefit | ||||||||||||||
Translation | on Cash Flow | Pension | ||||||||||||||
Tax | Adjustments | Hedges | Plans | AOCI | ||||||||||||
Balance, December 31, 2014 | $ | 50 | $ | 4 | $ | 3 | $ | 57 | ||||||||
Period change | 17 | 2 | — | 19 | ||||||||||||
Balance, March 31, 2015 | $ | 67 | $ | 6 | $ | 3 | $ | 76 | ||||||||
Foreign | Unrealized | Defined | ||||||||||||||
Currency | Gains/(Losses) | Benefit | ||||||||||||||
Translation | on Cash Flow | Pension | ||||||||||||||
Net of Tax | Adjustments | Hedges | Plans | AOCI | ||||||||||||
Balance, December 31, 2014 | $ | 37 | $ | (4 | ) | $ | (9 | ) | $ | 24 | ||||||
Period change | (80 | ) | (4 | ) | — | (84 | ) | |||||||||
Balance, March 31, 2015 | $ | (43 | ) | $ | (8 | ) | $ | (9 | ) | $ | (60 | ) | ||||
Currency translation adjustments exclude income taxes related to investments in foreign subsidiaries where the Company intends to reinvest the undistributed earnings indefinitely in those foreign operations. |
StockBased_Compensation
Stock-Based Compensation | 3 Months Ended | ||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||
Share-based Compensation [Abstract] | |||||||||||||||||||||
Stock-Based Compensation | |||||||||||||||||||||
Stock-Based Compensation | |||||||||||||||||||||
The Company has a stock-based compensation plan available to grant RSUs, SSARs, PSUs and other stock or cash-based awards to key employees, non-employee directors, advisors and consultants. Under the Wyndham Worldwide Corporation 2006 Equity and Incentive Plan, as amended, a maximum of 36.7 million shares of common stock may be awarded. As of March 31, 2015, 16.3 million shares remained available. | |||||||||||||||||||||
Incentive Equity Awards Granted by the Company | |||||||||||||||||||||
The activity related to incentive equity awards granted by the Company for the three months ended March 31, 2015 consisted of the following: | |||||||||||||||||||||
RSUs | PSUs | SSARs | |||||||||||||||||||
Number of RSUs | Weighted Average Grant Price | Number of PSUs | Weighted Average Grant Price | Number of SSARs | Weighted Average Exercise Price | ||||||||||||||||
Balance as of December 31, 2014 | 2 | $ | 57.13 | 0.7 | $ | 57.99 | 0.7 | $ | 40.09 | ||||||||||||
Granted (a) | 0.6 | 91.81 | 0.2 | 91.81 | 0.1 | 91.81 | |||||||||||||||
Vested | (0.9 | ) | 49.11 | (0.3 | ) | 44.57 | — | — | |||||||||||||
Balance as of March 31, 2015 | 1.7 | (b) (c) | 73.39 | 0.6 | (d) | 73.57 | 0.8 | (b) (e) | 46.45 | ||||||||||||
(a) | Represents awards granted by the Company on February 26, 2015. | ||||||||||||||||||||
(b) | Aggregate unrecognized compensation expense related to RSUs and SSARs was $128 million as of March 31, 2015, which is expected to be recognized over a weighted average period of 3.1 years. | ||||||||||||||||||||
(c) | Approximately 1.7 million RSUs outstanding as of March 31, 2015 are expected to vest over time. | ||||||||||||||||||||
(d) | Maximum aggregate unrecognized compensation expense was $31 million as of March 31, 2015. | ||||||||||||||||||||
(e) | Approximately 0.6 million SSARs are exercisable as of March 31, 2015. The Company assumes that all unvested SSARs are expected to vest over time. SSARs outstanding as of March 31, 2015 had an intrinsic value of $36 million and have a weighted average remaining contractual life of 2.8 years. | ||||||||||||||||||||
On February 26, 2015, the Company granted incentive equity awards totaling $59 million to key employees and senior officers of Wyndham in the form of RSUs and SSARs. These awards will vest ratably over a period of four years. In addition, on February 26, 2015, the Company approved a grant of incentive equity awards totaling $16 million to key employees and senior officers of Wyndham in the form of PSUs. These awards cliff vest on the third anniversary of the grant date, contingent upon the Company achieving certain performance metrics. | |||||||||||||||||||||
The fair value of SSARs granted by the Company on February 26, 2015 was estimated on the date of the grant using the Black-Scholes option-pricing model with the relevant weighted average assumptions outlined in the table below. Expected volatility is based on both historical and implied volatilities of the Company’s stock over the estimated expected life of the SSARs. The expected life represents the period of time the SSARs are expected to be outstanding and is based on historical experience given consideration to the contractual terms and vesting periods of the SSARs. The risk free interest rate is based on yields on U.S. Treasury strips with a maturity similar to the estimated expected life of the SSARs. The projected dividend yield was based on the Company’s anticipated annual dividend divided by the price of the Company’s stock on the date of the grant. | |||||||||||||||||||||
SSARs Issued on | |||||||||||||||||||||
February 26, 2015 | |||||||||||||||||||||
Grant date fair value | $ | 18.55 | |||||||||||||||||||
Grant date strike price | $ | 91.81 | |||||||||||||||||||
Expected volatility | 25.38 | % | |||||||||||||||||||
Expected life | 5.1 years | ||||||||||||||||||||
Risk free interest rate | 1.64 | % | |||||||||||||||||||
Projected dividend yield | 1.83 | % | |||||||||||||||||||
Stock-Based Compensation Expense | |||||||||||||||||||||
The Company recorded stock-based compensation expense of $15 million and $16 million during the three months ended March 31, 2015 and 2014, respectively, related to the incentive equity awards granted to key employees and senior officers by the Company. The Company recognized a net tax benefit of $6 million during both the three months ended March 31, 2015 and 2014, for stock-based compensation arrangements on the Consolidated Statements of Income. During the three months ended March 31, 2015, the Company increased its pool of excess tax benefits available to absorb tax deficiencies (“APIC Pool”) by $17 million due to the vesting of RSUs and PSUs. As of March 31, 2015, the Company’s APIC Pool balance was $129 million. | |||||||||||||||||||||
The Company paid $41 million and $44 million of taxes for the net share settlement of incentive equity awards during the three months ended March 31, 2015 and 2014, respectively. Such amounts are included within financing activities on the Consolidated Statements of Cash Flows. |
Segment_Information
Segment Information | 3 Months Ended | |||||||||||||||
Mar. 31, 2015 | ||||||||||||||||
Segment Reporting [Abstract] | ||||||||||||||||
Segment Information | ||||||||||||||||
Segment Information | ||||||||||||||||
The reportable segments presented below represent the Company’s operating segments for which separate financial information is available and which is utilized on a regular basis by its chief operating decision maker to assess performance and to allocate resources. In identifying its reportable segments, the Company also considers the nature of services provided by its operating segments. Management evaluates the operating results of each of its reportable segments based upon net revenues and “EBITDA”, which is defined as net income before depreciation and amortization, interest expense (excluding consumer financing interest), early extinguishment of debt, interest income (excluding consumer financing interest) and income taxes, each of which is presented on the Consolidated Statements of Income. The Company’s presentation of EBITDA may not be comparable to similarly-titled measures used by other companies. | ||||||||||||||||
Three Months Ended March 31, | ||||||||||||||||
2015 | 2014 | |||||||||||||||
Net Revenues | EBITDA | Net Revenues | EBITDA | |||||||||||||
Lodging (a) | $ | 292 | $ | 76 | $ | 237 | (b) | $ | 64 | |||||||
Vacation Exchange and Rentals | 369 | 105 | 379 | 85 | ||||||||||||
Vacation Ownership | 617 | 130 | 593 | 115 | ||||||||||||
Total Reportable Segments | 1,278 | 311 | 1,209 | 264 | ||||||||||||
Corporate and Other (c) | (16 | ) | (34 | ) | (16 | ) | (34 | ) | ||||||||
Total Company | $ | 1,262 | $ | 277 | $ | 1,193 | $ | 230 | ||||||||
Reconciliation of EBITDA to Net income | ||||||||||||||||
Three Months Ended March 31, | ||||||||||||||||
2015 | 2014 | |||||||||||||||
EBITDA | $ | 277 | $ | 230 | ||||||||||||
Depreciation and amortization | 56 | 56 | ||||||||||||||
Interest expense | 26 | 27 | ||||||||||||||
Interest income | (3 | ) | (2 | ) | ||||||||||||
Income before income taxes | 198 | 149 | ||||||||||||||
Provision for income taxes | 76 | 59 | ||||||||||||||
Net income | $ | 122 | $ | 90 | ||||||||||||
(a) | Includes $12 million and $9 million of intersegment trademark fees during the three months ended March 31, 2015 and 2014, respectively, which are offset in expenses primarily at the Company’s Vacation Ownership segment and are eliminated in Corporate and Other. | |||||||||||||||
(b) | Includes $2 million of hotel management reimbursable revenues for the three months ended March 31, 2014, which was charged to the Company’s Vacation Ownership segment and eliminated in Corporate and Other. | |||||||||||||||
(c) | Includes the elimination of transactions between segments. |
Restructuring
Restructuring | 3 Months Ended | |||||||||||||||
Mar. 31, 2015 | ||||||||||||||||
Restructuring Charges [Abstract] | ||||||||||||||||
Restructuring | ||||||||||||||||
Restructuring | ||||||||||||||||
During 2014, the Company committed to restructuring initiatives at its vacation exchange and rentals and lodging businesses, primarily focused on improving the alignment of the organizational structure of each business with their strategic objectives. During the three months ended March 31, 2015, the Company reduced its liability with $3 million of cash payments and reversed $1 million primarily related to previously recorded contract termination costs. The remaining liability of $3 million as of March 31, 2015 is expected to be paid in cash primarily by the end of 2015. | ||||||||||||||||
In addition to the restructuring plans implemented during 2014, the Company had a remaining liability of $4 million as of March 31, 2015 for prior restructuring plans, which is expected to be paid by 2020. | ||||||||||||||||
The activity associated with the Company’s restructuring plans is summarized by category as follows: | ||||||||||||||||
Liability as of | Liability as of | |||||||||||||||
31-Dec-14 | Cash Payments | Other | March 31, 2015 | |||||||||||||
Personnel-related | $ | 6 | $ | (3 | ) | $ | — | $ | 3 | |||||||
Facility-related | 4 | — | — | 4 | ||||||||||||
Contract terminations | 1 | — | (1 | ) | (*) | — | ||||||||||
$ | 11 | $ | (3 | ) | $ | (1 | ) | $ | 7 | |||||||
(*) | Represents a reversal of a portion of previously recorded expenses at the Company’s vacation exchange and rentals business. |
Separation_Adjustments_And_Tra
Separation Adjustments And Transactions With Former Parent And Subsidiaries | 3 Months Ended | |
Mar. 31, 2015 | ||
Related Party Transaction, Due from (to) Related Party [Abstract] | ||
Separation Adjustments And Transactions With Former Parent And Subsidiaries | ||
Separation Adjustments and Transactions with Former Parent and Subsidiaries | ||
Transfer of Cendant Corporate Liabilities and Issuance of Guarantees to Cendant and Affiliates | ||
Pursuant to the Separation and Distribution Agreement, upon the distribution of the Company’s common stock to Cendant shareholders, the Company entered into certain guarantee commitments with Cendant (pursuant to the assumption of certain liabilities and the obligation to indemnify Cendant and Realogy and travel distribution services (“Travelport”) for such liabilities) and guarantee commitments related to deferred compensation arrangements with each of Cendant and Realogy. These guarantee arrangements primarily relate to certain contingent litigation liabilities, contingent tax liabilities, and Cendant contingent and other corporate liabilities, of which the Company assumed and is responsible for 37.5% while Realogy is responsible for the remaining 62.5%. The remaining amount of liabilities which were assumed by the Company in connection with the Separation was $34 million and $38 million as of March 31, 2015 and December 31, 2014, respectively. These amounts were comprised of certain Cendant corporate liabilities which were recorded on the books of Cendant as well as additional liabilities which were established for guarantees issued at the date of Separation, related to unresolved contingent matters and others that could arise during the guarantee period. Regarding the guarantees, if any of the companies responsible for all or a portion of such liabilities were to default in its payment of costs or expenses related to any such liability, the Company would be responsible for a portion of the defaulting party or parties’ obligation(s). The Company also provided a default guarantee related to certain deferred compensation arrangements related to certain current and former senior officers and directors of Cendant, Realogy and Travelport. These arrangements were valued upon the Separation in accordance with the guidance for guarantees and recorded as liabilities on the Consolidated Balance Sheets. To the extent such recorded liabilities are not adequate to cover the ultimate payment amounts, such excess will be reflected as an expense to the results of operations in future periods. | ||
As a result of the sale of Realogy on April 10, 2007, Realogy was required to post a letter of credit in an amount acceptable to the Company and Avis Budget Group (formerly known as Cendant) to satisfy its obligations for the Cendant legacy contingent liabilities. As of March 31, 2015, the letter of credit was $53 million. | ||
As of March 31, 2015, the $34 million of Separation related liabilities is comprised of $30 million for tax liabilities, $1 million for liabilities of previously sold businesses of Cendant, $1 million for other contingent and corporate liabilities and $2 million of liabilities where the calculated guarantee amount exceeded the contingent liability assumed at the Separation Date. In connection with these liabilities, as of March 31, 2015, $20 million is recorded in accrued expenses and other current liabilities and $14 million is recorded in other non-current liabilities on the Consolidated Balance Sheet. The Company will indemnify Cendant for these contingent liabilities and therefore any payments made to the third-party would be through the former Parent. The actual timing of payments relating to these liabilities is dependent on a variety of factors beyond the Company’s control. In addition, the Company had $1 million of receivables due from former Parent and subsidiaries primarily relating to income taxes, as of both March 31, 2015 and December 31, 2014, which is included within other current assets on the Consolidated Balance Sheets. |
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 3 Months Ended | ||||||||||
Mar. 31, 2015 | |||||||||||
Earnings Per Share Reconciliation [Abstract] | |||||||||||
Computation Of Basic And Diluted EPS | The following table sets forth the computation of basic and diluted EPS (in millions, except per share data): | ||||||||||
Three Months Ended | |||||||||||
March 31, | |||||||||||
2015 | 2014 | ||||||||||
Net income | $ | 122 | $ | 90 | |||||||
Basic weighted average shares outstanding | 121 | 128 | |||||||||
SSARs, RSUs and PSUs (a) (b) (c) | 1 | 2 | |||||||||
Weighted average diluted shares outstanding | 122 | 130 | |||||||||
Earnings per share: | |||||||||||
Basic | $ | 1.01 | $ | 0.7 | |||||||
Diluted | 1 | 0.69 | |||||||||
Dividends: | |||||||||||
Aggregate dividends paid to shareholders | $ | 54 | $ | 48 | |||||||
(a) | Includes unvested dilutive restricted stock units (“RSUs”) which are subject to future forfeitures. | ||||||||||
(b) | Excludes 0.6 million and 0.7 million performance vested restricted stock units (“PSUs”) for the three months ended March 31, 2015 and 2014, respectively, as the Company has not met the required performance metrics. | ||||||||||
(c) | Excludes 11,500 and 11,000 stock-settled stock appreciation rights (“SSARs”) for the three months ended March 31, 2015 and 2014, respectively, as their inclusion would have been anti-dilutive to EPS. | ||||||||||
Current Stock Repurchase Program | The following table summarizes stock repurchase activity under the current stock repurchase program (in millions, except per share data): | ||||||||||
Shares | Cost | Average Price Per Share | |||||||||
As of December 31, 2014 | 71.3 | $ | 3,062 | $ | 42.94 | ||||||
For the three months ended March 31, 2015 | 1.7 | 150 | 87.72 | ||||||||
As of March 31, 2015 | 73 | $ | 3,212 | 43.99 | |||||||
Intangible_Assets_Tables
Intangible Assets (Tables) | 3 Months Ended | |||||||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||||||||||
Schedule of Intangible Assets and Goodwill | Intangible assets consisted of: | |||||||||||||||||||||||
As of March 31, 2015 | As of December 31, 2014 | |||||||||||||||||||||||
Gross | Accumulated | Net | Gross | Accumulated | Net | |||||||||||||||||||
Carrying | Amortization | Carrying | Carrying | Amortization | Carrying | |||||||||||||||||||
Amount | Amount | Amount | Amount | |||||||||||||||||||||
Unamortized Intangible Assets: | ||||||||||||||||||||||||
Goodwill | $ | 1,553 | $ | 1,551 | ||||||||||||||||||||
Trademarks | $ | 723 | $ | 713 | ||||||||||||||||||||
Amortized Intangible Assets: | ||||||||||||||||||||||||
Franchise agreements | $ | 594 | $ | 375 | $ | 219 | $ | 594 | $ | 371 | $ | 223 | ||||||||||||
Management agreements | 131 | 36 | 95 | 105 | 35 | 70 | ||||||||||||||||||
Trademarks | 7 | 4 | 3 | 7 | 3 | 4 | ||||||||||||||||||
Other | 161 | 62 | 99 | 167 | 63 | 104 | ||||||||||||||||||
$ | 893 | $ | 477 | $ | 416 | $ | 873 | $ | 472 | $ | 401 | |||||||||||||
Changes in Carrying Amount Of Goodwill By Segment | The changes in the carrying amount of goodwill are as follows: | |||||||||||||||||||||||
Balance as of December 31, 2014 | Goodwill Acquired During 2015 | Foreign | Balance as of March 31, 2015 | |||||||||||||||||||||
Exchange | ||||||||||||||||||||||||
Lodging | $ | 300 | $ | 32 | $ | — | $ | 332 | ||||||||||||||||
Vacation Exchange and Rentals | 1,224 | — | (30 | ) | 1,194 | |||||||||||||||||||
Vacation Ownership | 27 | — | — | 27 | ||||||||||||||||||||
Total Company | $ | 1,551 | $ | 32 | $ | (30 | ) | $ | 1,553 | |||||||||||||||
Schedule of Amortization Expense Related To Intangible Assets By Major Class | Amortization expense relating to amortizable intangible assets was as follows: | |||||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||||||
March 31, | ||||||||||||||||||||||||
2015 | 2014 | |||||||||||||||||||||||
Franchise agreements | $ | 4 | $ | 4 | ||||||||||||||||||||
Management agreements | 2 | 2 | ||||||||||||||||||||||
Other | 3 | 3 | ||||||||||||||||||||||
Total (*) | $ | 9 | $ | 9 | ||||||||||||||||||||
(*) | Included as a component of depreciation and amortization on the Consolidated Statements of Income. | |||||||||||||||||||||||
Future Amortization Expenses Of Intangible Assets | Based on the Company's amortizable intangible assets as of March 31, 2015, the Company expects related amortization expense as follows: | |||||||||||||||||||||||
Amount | ||||||||||||||||||||||||
Remainder of 2015 | $ | 28 | ||||||||||||||||||||||
2016 | 35 | |||||||||||||||||||||||
2017 | 34 | |||||||||||||||||||||||
2018 | 33 | |||||||||||||||||||||||
2019 | 32 | |||||||||||||||||||||||
2020 | 31 | |||||||||||||||||||||||
Vacation_Ownership_Contract_Re1
Vacation Ownership Contract Receivables (Tables) | 3 Months Ended | |||||||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||||||
Vacation Ownership Contract Receivables [Abstract] | ||||||||||||||||||||||||
Current And Long-Term Vacation Ownership Contract Receivables | Current and long-term vacation ownership contract receivables, net consisted of: | |||||||||||||||||||||||
March 31, | December 31, | |||||||||||||||||||||||
2015 | 2014 | |||||||||||||||||||||||
Current vacation ownership contract receivables: | ||||||||||||||||||||||||
Securitized | $ | 254 | $ | 256 | ||||||||||||||||||||
Non-securitized | 83 | 88 | ||||||||||||||||||||||
337 | 344 | |||||||||||||||||||||||
Less: Allowance for loan losses | 57 | 59 | ||||||||||||||||||||||
Current vacation ownership contract receivables, net | $ | 280 | $ | 285 | ||||||||||||||||||||
Long-term vacation ownership contract receivables: | ||||||||||||||||||||||||
Securitized | $ | 2,218 | $ | 2,256 | ||||||||||||||||||||
Non-securitized | 652 | 672 | ||||||||||||||||||||||
2,870 | 2,928 | |||||||||||||||||||||||
Less: Allowance for loan losses | 508 | 522 | ||||||||||||||||||||||
Long-term vacation ownership contract receivables, net | $ | 2,362 | $ | 2,406 | ||||||||||||||||||||
Allowance For Loan Losses On Vacation Ownership Contract Receivables | The activity in the allowance for loan losses on vacation ownership contract receivables was as follows: | |||||||||||||||||||||||
Amount | ||||||||||||||||||||||||
Allowance for loan losses as of December 31, 2014 | $ | 581 | ||||||||||||||||||||||
Provision for loan losses | 46 | |||||||||||||||||||||||
Contract receivables write-offs, net | (62 | ) | ||||||||||||||||||||||
Allowance for loan losses as of March 31, 2015 | $ | 565 | ||||||||||||||||||||||
Amount | ||||||||||||||||||||||||
Allowance for loan losses as of December 31, 2013 | $ | 566 | ||||||||||||||||||||||
Provision for loan losses | 60 | |||||||||||||||||||||||
Contract receivables write-offs, net | (63 | ) | ||||||||||||||||||||||
Allowance for loan losses as of March 31, 2014 | $ | 563 | ||||||||||||||||||||||
Summary Of The Aged Analysis Of Financing Receivables Using The Most Recently Updated FICO Scores | The following table details an aged analysis of financing receivables using the most recently updated FICO scores (based on the policy described above): | |||||||||||||||||||||||
As of March 31, 2015 | ||||||||||||||||||||||||
700+ | 600-699 | <600 | No Score | Asia Pacific | Total | |||||||||||||||||||
Current | $ | 1,528 | $ | 1,015 | $ | 191 | $ | 118 | $ | 243 | $ | 3,095 | ||||||||||||
31 - 60 days | 10 | 19 | 14 | 4 | 2 | 49 | ||||||||||||||||||
61 - 90 days | 7 | 12 | 10 | 2 | 1 | 32 | ||||||||||||||||||
91 - 120 days | 7 | 10 | 11 | 2 | 1 | 31 | ||||||||||||||||||
Total | $ | 1,552 | $ | 1,056 | $ | 226 | $ | 126 | $ | 247 | $ | 3,207 | ||||||||||||
As of December 31, 2014 | ||||||||||||||||||||||||
700+ | 600-699 | <600 | No Score | Asia Pacific | Total | |||||||||||||||||||
Current | $ | 1,556 | $ | 1,028 | $ | 191 | $ | 115 | $ | 261 | $ | 3,151 | ||||||||||||
31 - 60 days | 12 | 23 | 16 | 4 | 3 | 58 | ||||||||||||||||||
61 - 90 days | 7 | 13 | 11 | 2 | 1 | 34 | ||||||||||||||||||
91 - 120 days | 5 | 10 | 11 | 2 | 1 | 29 | ||||||||||||||||||
Total | $ | 1,580 | $ | 1,074 | $ | 229 | $ | 123 | $ | 266 | $ | 3,272 | ||||||||||||
Inventory_Tables
Inventory (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Inventory Disclosure [Abstract] | ||||||||
Inventory | Inventory consisted of: | |||||||
March 31, | December 31, | |||||||
2015 | 2014 | |||||||
Land held for VOI development | $ | 136 | $ | 136 | ||||
VOI construction in process | 125 | 226 | ||||||
Inventory sold subject to conditional repurchase | 73 | 73 | ||||||
Completed VOI inventory | 562 | 431 | ||||||
Estimated recoveries | 230 | 235 | ||||||
Exchange and rentals vacation credits and other | 59 | 61 | ||||||
Total inventory | 1,185 | 1,162 | ||||||
Less: Current portion (*) | 292 | 302 | ||||||
Non-current inventory | $ | 893 | $ | 860 | ||||
(*) | Represents inventory that the Company expects to sell within the next 12 months. |
LongTerm_Debt_And_Borrowing_Ar1
Long-Term Debt And Borrowing Arrangements (Tables) | 3 Months Ended | |||||||||||
Mar. 31, 2015 | ||||||||||||
Debt Disclosure [Abstract] | ||||||||||||
Schedule of Long-term Debt Instruments | The Company’s indebtedness consisted of: | |||||||||||
March 31, | December 31, | |||||||||||
2015 | 2014 | |||||||||||
Securitized vacation ownership debt: (a) | ||||||||||||
Term notes | $ | 2,090 | $ | 1,962 | ||||||||
Bank conduit facility (due August 2016) | 98 | 203 | ||||||||||
Total securitized vacation ownership debt | 2,188 | 2,165 | ||||||||||
Less: Current portion of securitized vacation ownership debt | 217 | 214 | ||||||||||
Long-term securitized vacation ownership debt | $ | 1,971 | $ | 1,951 | ||||||||
Long-term debt: (b) | ||||||||||||
Revolving credit facility (due July 2020) | $ | 14 | $ | 25 | ||||||||
Commercial paper | 346 | 189 | ||||||||||
$315 million 6.00% senior unsecured notes (due December 2016) (c) | 317 | 317 | ||||||||||
$300 million 2.95% senior unsecured notes (due March 2017) | 299 | 299 | ||||||||||
$14 million 5.75% senior unsecured notes (due February 2018) | 14 | 14 | ||||||||||
$450 million 2.50% senior unsecured notes (due March 2018) | 448 | 448 | ||||||||||
$40 million 7.375% senior unsecured notes (due March 2020) | 40 | 40 | ||||||||||
$250 million 5.625% senior unsecured notes (due March 2021) | 247 | 247 | ||||||||||
$650 million 4.25% senior unsecured notes (due March 2022) (d) | 650 | 648 | ||||||||||
$400 million 3.90% senior unsecured notes (due March 2023) (e) | 418 | 410 | ||||||||||
Capital leases | 161 | 170 | ||||||||||
Other | 70 | 81 | ||||||||||
Total long-term debt | 3,024 | 2,888 | ||||||||||
Less: Current portion of long-term debt | 53 | 47 | ||||||||||
Long-term debt | $ | 2,971 | $ | 2,841 | ||||||||
(a) | Represents non-recourse debt that is securitized through bankruptcy-remote special purpose entities (“SPEs”), the creditors of which have no recourse to the Company for principal and interest. These outstanding borrowings are collateralized by $2,609 million and $2,629 million of underlying gross vacation ownership contract receivables and related assets as of March 31, 2015 and December 31, 2014, respectively. | |||||||||||
(b) | The carrying amounts of the senior unsecured notes are net of unamortized discounts aggregating $14 million as of both March 31, 2015 and December 31, 2014. | |||||||||||
(c) | Includes $2 million of unamortized gains from the settlement of a derivative as of both March 31, 2015 and December 31, 2014. | |||||||||||
(d) | Includes an increase of $4 million and $3 million in the carrying value resulting from a fair value hedge derivative as of March 31, 2015 and December 31, 2014, respectively. | |||||||||||
(e) | Includes an increase of $21 million and $13 million in the carrying value resulting from a fair value hedge derivative as of March 31, 2015 and December 31, 2014, respectively. | |||||||||||
Summary Of Outstanding Debt Maturities | The Company’s outstanding debt as of March 31, 2015 matures as follows: | |||||||||||
Securitized Vacation Ownership Debt | Long-Term Debt | Total | ||||||||||
Within 1 year | $ | 217 | $ | 53 | $ | 270 | ||||||
Between 1 and 2 years | 243 | 660 | 903 | |||||||||
Between 2 and 3 years | 296 | 476 | 772 | |||||||||
Between 3 and 4 years | 221 | 13 | 234 | |||||||||
Between 4 and 5 years | 227 | 53 | 280 | |||||||||
Thereafter | 984 | 1,769 | 2,753 | |||||||||
$ | 2,188 | $ | 3,024 | $ | 5,212 | |||||||
Summary Of Available Capacity Under Borrowing Arrangements | As of March 31, 2015, available capacity under the Company’s borrowing arrangements was as follows: | |||||||||||
Securitized Bank | Revolving | |||||||||||
Conduit Facility (a) | Credit Facility | |||||||||||
Total Capacity | $ | 650 | $ | 1,500 | ||||||||
Less: Outstanding Borrowings | 98 | 14 | ||||||||||
Letters of credit | — | 1 | ||||||||||
Commercial paper borrowings | — | 346 | (b) | |||||||||
Available Capacity | $ | 552 | $ | 1,139 | ||||||||
(a) | The capacity of this facility is subject to the Company’s ability to provide additional assets to collateralize additional securitized borrowings. | |||||||||||
(b) | The Company considers outstanding borrowings under its commercial paper programs to be a reduction of the available capacity of its revolving credit facility. |
Variable_Interest_Entities_Tab
Variable Interest Entities (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Related Party Transaction [Line Items] | ||||||||
Summary Of Total Vacation Ownership Receivables And Other Securitized Assets, Net Of Securitized Liabilities And Allowance For Loan Losses | A summary of total vacation ownership receivables and other securitized assets, net of securitized liabilities and the allowance for loan losses, is as follows: | |||||||
March 31, | December 31, | |||||||
2015 | 2014 | |||||||
SPE assets in excess of SPE liabilities | $ | 419 | $ | 463 | ||||
Non-securitized contract receivables | 735 | 760 | ||||||
Less: Allowance for loan losses | 565 | 581 | ||||||
Total, net | $ | 589 | $ | 642 | ||||
Vacation Ownership SPEs [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Assets and Liabilities of SPEs | The assets and liabilities of these vacation ownership SPEs are as follows: | |||||||
March 31, | December 31, | |||||||
2015 | 2014 | |||||||
Securitized contract receivables, gross (a) | $ | 2,472 | $ | 2,512 | ||||
Securitized restricted cash (b) | 116 | 96 | ||||||
Interest receivables on securitized contract receivables (c) | 19 | 20 | ||||||
Other assets (d) | 2 | 1 | ||||||
Total SPE assets (e) | 2,609 | 2,629 | ||||||
Securitized term notes (f) | 2,090 | 1,962 | ||||||
Securitized conduit facilities (f) | 98 | 203 | ||||||
Other liabilities (g) | 2 | 1 | ||||||
Total SPE liabilities | 2,190 | 2,166 | ||||||
SPE assets in excess of SPE liabilities | $ | 419 | $ | 463 | ||||
(a) | Included in current ($254 million and $256 million as of March 31, 2015 and December 31, 2014, respectively) and non-current ($2,218 million and $2,256 million as of March 31, 2015 and December 31, 2014, respectively) vacation ownership contract receivables on the Consolidated Balance Sheets. | |||||||
(b) | Included in other current assets ($90 million and $75 million as of March 31, 2015 and December 31, 2014, respectively) and other non-current assets ($26 million and $21 million as of March 31, 2015 and December 31, 2014, respectively) on the Consolidated Balance Sheets. | |||||||
(c) | Included in trade receivables, net on the Consolidated Balance Sheets. | |||||||
(d) | Includes interest rate derivative contracts and related assets; included in other non-current assets on the Consolidated Balance Sheets. | |||||||
(e) | Excludes deferred financing costs of $31 million and $30 million as of March 31, 2015 and December 31, 2014, respectively, related to securitized debt. | |||||||
(f) | Included in current ($217 million and $214 million as of March 31, 2015 and December 31, 2014, respectively) and long-term ($1,971 million and $1,951 million as of March 31, 2015 and December 31, 2014, respectively) securitized vacation ownership debt on the Consolidated Balance Sheets. | |||||||
(g) | Primarily includes accrued interest on securitized debt of $2 million and $1 million as of March 31, 2015 and December 31, 2014, respectively, which is included in accrued expenses and other current liabilities on the Consolidated Balance Sheets. | |||||||
Midtown 45, NYC Property [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Assets and Liabilities of SPEs | The assets and liabilities of the SPE are as follows: | |||||||
March 31, | December 31, | |||||||
2015 | 2014 | |||||||
Property and equipment, net | $ | 54 | $ | 64 | ||||
Total SPE assets | 54 | 64 | ||||||
Accrued expenses and other current liabilities | — | 1 | ||||||
Long-term debt (*) | 64 | 77 | ||||||
Total SPE liabilities | 64 | 78 | ||||||
SPE deficit | $ | (10 | ) | $ | (14 | ) | ||
(*) | As of March 31, 2015, included $59 million for a four-year mortgage note and $5 million of mandatorily redeemable equity, of which $34 million was included in current portion of long-term debt on the Consolidated Balance Sheet. As of December 31, 2014, included $71 million for a four-year mortgage note and $6 million of mandatorily redeemable equity, of which $31 million was included in current portion of long-term debt on the Consolidated Balance Sheet. |
Fair_Value_Tables
Fair Value (Tables) | 3 Months Ended | |||||||||||||||
Mar. 31, 2015 | ||||||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||||||
Summary Of Assets And Liabilities Measured At Fair Value On Recurring Basis | The following table summarizes information regarding assets and liabilities that are measured at fair value (all of which are Level 2) on a recurring basis: | |||||||||||||||
As of | As of | |||||||||||||||
March 31, 2015 | December 31, 2014 | |||||||||||||||
Fair Value | Carrying Amount | Fair Value | Carrying Amount | |||||||||||||
Assets | ||||||||||||||||
Derivatives: (a) | ||||||||||||||||
Interest rate contracts | $ | 28 | $ | 28 | $ | 18 | $ | 18 | ||||||||
Foreign exchange contracts | 1 | 1 | 1 | 1 | ||||||||||||
Total assets | $ | 29 | $ | 29 | $ | 19 | $ | 19 | ||||||||
Liabilities | ||||||||||||||||
Derivatives: (b) | ||||||||||||||||
Interest rate contracts (c) | $ | 12 | $ | 12 | $ | 4 | $ | 4 | ||||||||
Foreign exchange contracts | 6 | 6 | 3 | 3 | ||||||||||||
Total liabilities | $ | 18 | $ | 18 | $ | 7 | $ | 7 | ||||||||
(a) | Included in other current assets ($1 million as of both March 31, 2015 and December 31, 2014) and other non-current assets ($28 million and $18 million as of March 31, 2015 and December 31, 2014, respectively) on the Consolidated Balance Sheets. | |||||||||||||||
(b) | Included in accrued expenses and other current liabilities ($18 million and $7 million as of March 31, 2015 and December 31, 2014, respectively). | |||||||||||||||
(c) | Liabilities of $12 million and $4 million as of March 31, 2015 and December 31, 2014, respectively, primarily represent interest rate swap locks for an anticipated 2015 transaction. | |||||||||||||||
Carrying Amounts And Estimated Fair Values Of Financial Instruments | The carrying amounts and estimated fair values of all other financial instruments are as follows: | |||||||||||||||
March 31, 2015 | December 31, 2014 | |||||||||||||||
Carrying | Estimated Fair Value | Carrying | Estimated Fair Value | |||||||||||||
Amount | Amount | |||||||||||||||
Assets | ||||||||||||||||
Vacation ownership contract receivables, net | $ | 2,642 | $ | 3,242 | $ | 2,691 | $ | 3,284 | ||||||||
Debt | ||||||||||||||||
Total debt | 5,212 | 5,314 | 5,053 | 5,140 | ||||||||||||
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive (Loss)/Income (Tables) | 3 Months Ended | |||||||||||||||
Mar. 31, 2015 | ||||||||||||||||
Accumulated Other Comprehensive Income [Abstract] | ||||||||||||||||
Components Of Accumulated Other Comprehensive (Loss)/Income | The components of AOCI are as follows: | |||||||||||||||
Foreign | Unrealized | Defined | ||||||||||||||
Currency | Gains/(Losses) | Benefit | ||||||||||||||
Translation | on Cash Flow | Pension | ||||||||||||||
Pretax | Adjustments | Hedges | Plans | AOCI | ||||||||||||
Balance, December 31, 2014 | $ | (13 | ) | $ | (8 | ) | $ | (12 | ) | $ | (33 | ) | ||||
Period change | (97 | ) | (6 | ) | — | (103 | ) | |||||||||
Balance, March 31, 2015 | $ | (110 | ) | $ | (14 | ) | $ | (12 | ) | $ | (136 | ) | ||||
Foreign | Unrealized | Defined | ||||||||||||||
Currency | Gains/(Losses) | Benefit | ||||||||||||||
Translation | on Cash Flow | Pension | ||||||||||||||
Tax | Adjustments | Hedges | Plans | AOCI | ||||||||||||
Balance, December 31, 2014 | $ | 50 | $ | 4 | $ | 3 | $ | 57 | ||||||||
Period change | 17 | 2 | — | 19 | ||||||||||||
Balance, March 31, 2015 | $ | 67 | $ | 6 | $ | 3 | $ | 76 | ||||||||
Foreign | Unrealized | Defined | ||||||||||||||
Currency | Gains/(Losses) | Benefit | ||||||||||||||
Translation | on Cash Flow | Pension | ||||||||||||||
Net of Tax | Adjustments | Hedges | Plans | AOCI | ||||||||||||
Balance, December 31, 2014 | $ | 37 | $ | (4 | ) | $ | (9 | ) | $ | 24 | ||||||
Period change | (80 | ) | (4 | ) | — | (84 | ) | |||||||||
Balance, March 31, 2015 | $ | (43 | ) | $ | (8 | ) | $ | (9 | ) | $ | (60 | ) |
StockBased_Compensation_Tables
Stock-Based Compensation (Tables) | 3 Months Ended | ||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||
Share-based Compensation [Abstract] | |||||||||||||||||||||
Incentive Equity Awards Granted By The Company | The activity related to incentive equity awards granted by the Company for the three months ended March 31, 2015 consisted of the following: | ||||||||||||||||||||
RSUs | PSUs | SSARs | |||||||||||||||||||
Number of RSUs | Weighted Average Grant Price | Number of PSUs | Weighted Average Grant Price | Number of SSARs | Weighted Average Exercise Price | ||||||||||||||||
Balance as of December 31, 2014 | 2 | $ | 57.13 | 0.7 | $ | 57.99 | 0.7 | $ | 40.09 | ||||||||||||
Granted (a) | 0.6 | 91.81 | 0.2 | 91.81 | 0.1 | 91.81 | |||||||||||||||
Vested | (0.9 | ) | 49.11 | (0.3 | ) | 44.57 | — | — | |||||||||||||
Balance as of March 31, 2015 | 1.7 | (b) (c) | 73.39 | 0.6 | (d) | 73.57 | 0.8 | (b) (e) | 46.45 | ||||||||||||
(a) | Represents awards granted by the Company on February 26, 2015. | ||||||||||||||||||||
(b) | Aggregate unrecognized compensation expense related to RSUs and SSARs was $128 million as of March 31, 2015, which is expected to be recognized over a weighted average period of 3.1 years. | ||||||||||||||||||||
(c) | Approximately 1.7 million RSUs outstanding as of March 31, 2015 are expected to vest over time. | ||||||||||||||||||||
(d) | Maximum aggregate unrecognized compensation expense was $31 million as of March 31, 2015. | ||||||||||||||||||||
(e) | Approximately 0.6 million SSARs are exercisable as of March 31, 2015. The Company assumes that all unvested SSARs are expected to vest over time. SSARs outstanding as of March 31, 2015 had an intrinsic value of $36 million and have a weighted average remaining contractual life of 2.8 years. | ||||||||||||||||||||
Weighted Average Grant Date Fair Value Assumptions | The projected dividend yield was based on the Company’s anticipated annual dividend divided by the price of the Company’s stock on the date of the grant. | ||||||||||||||||||||
SSARs Issued on | |||||||||||||||||||||
February 26, 2015 | |||||||||||||||||||||
Grant date fair value | $ | 18.55 | |||||||||||||||||||
Grant date strike price | $ | 91.81 | |||||||||||||||||||
Expected volatility | 25.38 | % | |||||||||||||||||||
Expected life | 5.1 years | ||||||||||||||||||||
Risk free interest rate | 1.64 | % | |||||||||||||||||||
Projected dividend yield | 1.83 | % |
Segment_Information_Tables
Segment Information (Tables) | 3 Months Ended | |||||||||||||||
Mar. 31, 2015 | ||||||||||||||||
Segment Reporting [Abstract] | ||||||||||||||||
Summary Of Segment Information | The Company’s presentation of EBITDA may not be comparable to similarly-titled measures used by other companies. | |||||||||||||||
Three Months Ended March 31, | ||||||||||||||||
2015 | 2014 | |||||||||||||||
Net Revenues | EBITDA | Net Revenues | EBITDA | |||||||||||||
Lodging (a) | $ | 292 | $ | 76 | $ | 237 | (b) | $ | 64 | |||||||
Vacation Exchange and Rentals | 369 | 105 | 379 | 85 | ||||||||||||
Vacation Ownership | 617 | 130 | 593 | 115 | ||||||||||||
Total Reportable Segments | 1,278 | 311 | 1,209 | 264 | ||||||||||||
Corporate and Other (c) | (16 | ) | (34 | ) | (16 | ) | (34 | ) | ||||||||
Total Company | $ | 1,262 | $ | 277 | $ | 1,193 | $ | 230 | ||||||||
Reconciliation of EBITDA to Net income | ||||||||||||||||
Three Months Ended March 31, | ||||||||||||||||
2015 | 2014 | |||||||||||||||
EBITDA | $ | 277 | $ | 230 | ||||||||||||
Depreciation and amortization | 56 | 56 | ||||||||||||||
Interest expense | 26 | 27 | ||||||||||||||
Interest income | (3 | ) | (2 | ) | ||||||||||||
Income before income taxes | 198 | 149 | ||||||||||||||
Provision for income taxes | 76 | 59 | ||||||||||||||
Net income | $ | 122 | $ | 90 | ||||||||||||
(a) | Includes $12 million and $9 million of intersegment trademark fees during the three months ended March 31, 2015 and 2014, respectively, which are offset in expenses primarily at the Company’s Vacation Ownership segment and are eliminated in Corporate and Other. | |||||||||||||||
(b) | Includes $2 million of hotel management reimbursable revenues for the three months ended March 31, 2014, which was charged to the Company’s Vacation Ownership segment and eliminated in Corporate and Other. | |||||||||||||||
(c) | Includes the elimination of transactions between segments. |
Restructuring_Tables
Restructuring (Tables) | 3 Months Ended | |||||||||||||||
Mar. 31, 2015 | ||||||||||||||||
Restructuring Charges [Abstract] | ||||||||||||||||
Activity Related To The Restructuring Costs | The activity associated with the Company’s restructuring plans is summarized by category as follows: | |||||||||||||||
Liability as of | Liability as of | |||||||||||||||
31-Dec-14 | Cash Payments | Other | March 31, 2015 | |||||||||||||
Personnel-related | $ | 6 | $ | (3 | ) | $ | — | $ | 3 | |||||||
Facility-related | 4 | — | — | 4 | ||||||||||||
Contract terminations | 1 | — | (1 | ) | (*) | — | ||||||||||
$ | 11 | $ | (3 | ) | $ | (1 | ) | $ | 7 | |||||||
(*) | Represents a reversal of a portion of previously recorded expenses at the Company’s vacation exchange and rentals business. |
Earnings_Per_Share_Narrative_D
Earnings Per Share (Narrative) (Details) (USD $) | Mar. 31, 2015 |
In Millions, unless otherwise specified | |
Earnings Per Share Reconciliation [Abstract] | |
Remaining authorized amount under share repurchases | $866 |
Earnings_Per_Share_Computation
Earnings Per Share (Computation Of Basic And Diluted EPS) (Details) (USD $) | 3 Months Ended | |||
In Millions, except Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Net income | $122 | $90 | ||
Basic weighted average shares outstanding | 121,000,000 | 128,000,000 | ||
SSARs, RSUs and PSUs | 1,000,000 | [1],[2],[3] | 2,000,000 | [1],[2],[3] |
Weighted average diluted shares outstanding | 122,000,000 | 130,000,000 | ||
Basic (in dollars per share) | $1.01 | $0.70 | ||
Diluted (in dollars per share) | $1 | $0.69 | ||
Aggregate dividends paid to shareholders | $54 | $48 | ||
Performance-Based Stock Units [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Shares excluded from computation of diluted EPS | 600,000 | 700,000 | ||
Stock Settled Stock Appreciation Rights [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Shares excluded from computation of diluted EPS | 11,500 | 11,000 | ||
[1] | Excludes 0.6 million and 0.7 million performance vested restricted stock units (bPSUsb) for the three months ended MarchB 31, 2015 and 2014, respectively, as the Company has not met the required performance metrics. | |||
[2] | Excludes 11,500 and 11,000 stock-settled stock appreciation rights (bSSARsb) for the three months ended MarchB 31, 2015 and 2014, respectively, as their inclusion would have been anti-dilutive to EPS. | |||
[3] | Includes unvested dilutive restricted stock units (bRSUsb) which are subject to future forfeitures. |
Earnings_Per_Share_Current_Sto
Earnings Per Share (Current Stock Repurchase Program) (Details) (USD $) | 3 Months Ended | |
In Millions, except Share data, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 |
Stock Repurchase Activity [Roll Forward] | ||
Shares, As of December 31, 2014 | 95,806,076 | |
Shares, As of March 31, 2015 | 97,516,481 | 95,806,076 |
Stock Repurchase Program [Member] | ||
Stock Repurchase Activity [Roll Forward] | ||
Shares, As of December 31, 2014 | 71,300,000 | |
Cost, As of December 31, 2014 | $3,062 | |
Average Price, As of December 31, 2014 (in dollars per share) | $42.94 | |
Shares, For the three months ended March 31, 2015 | 1,700,000 | |
Cost, For the three months ended March 31, 2015 | 150 | |
Average Price, For the three months ended March 31, 2015 (in dollars per share) | $87.72 | |
Shares, As of March 31, 2015 | 73,000,000 | |
Cost, As of March 31, 2015 | $3,212 | |
Average Price, As of March 31, 2015 (in dollars per share) | $43.99 |
Acquisitions_Narrative_Details
Acquisitions (Narrative) (Details) (USD $) | 0 Months Ended | 3 Months Ended | |
In Millions, unless otherwise specified | Jan. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 |
Business Acquisition [Line Items] | |||
Goodwill | $1,553 | $1,551 | |
Dolce Hotels and Resorts [Member] | |||
Business Acquisition [Line Items] | |||
Net consideration received | 57 | ||
Net cash acquired | 52 | ||
Debt repaid at closing | 5 | ||
Goodwill | 32 | ||
Definite-lived intangibles | 28 | ||
Weighted average useful life (in years) | 15 years | ||
Other assets acquired | 8 | ||
Liabilities assumed | 25 | ||
Dolce Hotels and Resorts [Member] | Trademarks [Member] | |||
Business Acquisition [Line Items] | |||
Definite-lived intangibles | 14 | ||
Other Acquisitions [Member] | |||
Business Acquisition [Line Items] | |||
Net cash acquired | 2 | ||
Definite-lived intangibles | 2 | ||
Weighted average useful life (in years) | 6 years | ||
Contingent consideration | $1 |
Intangible_Assets_Components_o
Intangible Assets (Components of Intangible Assets) (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Goodwill [Line Items] | ||
Gross Carrying Amount, Goodwill | $1,553 | $1,551 |
Gross Carrying Amount, Trademarks | 726 | 717 |
Gross Carrying Amount, Amortized Intangible Assets | 893 | 873 |
Accumulated Amortization, Amortized Intangible Assets | 477 | 472 |
Net Carrying Amount, Amortized Intangible Assets | 416 | 401 |
Franchise Agreements [Member] | ||
Goodwill [Line Items] | ||
Gross Carrying Amount, Amortized Intangible Assets | 594 | 594 |
Accumulated Amortization, Amortized Intangible Assets | 375 | 371 |
Net Carrying Amount, Amortized Intangible Assets | 219 | 223 |
Management Agreements [Member] | ||
Goodwill [Line Items] | ||
Gross Carrying Amount, Amortized Intangible Assets | 131 | 105 |
Accumulated Amortization, Amortized Intangible Assets | 36 | 35 |
Net Carrying Amount, Amortized Intangible Assets | 95 | 70 |
Trademarks [Member] | ||
Goodwill [Line Items] | ||
Gross Carrying Amount, Amortized Intangible Assets | 7 | 7 |
Accumulated Amortization, Amortized Intangible Assets | 4 | 3 |
Net Carrying Amount, Amortized Intangible Assets | 3 | 4 |
Other Intangible Assets [Member] | ||
Goodwill [Line Items] | ||
Gross Carrying Amount, Amortized Intangible Assets | 161 | 167 |
Accumulated Amortization, Amortized Intangible Assets | 62 | 63 |
Net Carrying Amount, Amortized Intangible Assets | 99 | 104 |
Trademarks [Member] | ||
Goodwill [Line Items] | ||
Gross Carrying Amount, Trademarks | $723 | $713 |
Intangible_Assets_Changes_In_C
Intangible Assets (Changes In Carrying Amount Of Goodwill By Segment) (Details) (USD $) | 3 Months Ended |
In Millions, unless otherwise specified | Mar. 31, 2015 |
Goodwill [Roll Forward] | |
Balance at December 31, 2014 | $1,551 |
Foreign Exchange | -30 |
Balance at March 31, 2015 | 1,553 |
Goodwill Acquired During 2015 [Member] | |
Goodwill [Roll Forward] | |
Goodwill acquired during 2015 | 32 |
Lodging [Member] | |
Goodwill [Roll Forward] | |
Balance at December 31, 2014 | 300 |
Foreign Exchange | 0 |
Balance at March 31, 2015 | 332 |
Lodging [Member] | Goodwill Acquired During 2015 [Member] | |
Goodwill [Roll Forward] | |
Goodwill acquired during 2015 | 32 |
Vacation Exchange And Rentals [Member] | |
Goodwill [Roll Forward] | |
Balance at December 31, 2014 | 1,224 |
Foreign Exchange | -30 |
Balance at March 31, 2015 | 1,194 |
Vacation Exchange And Rentals [Member] | Goodwill Acquired During 2015 [Member] | |
Goodwill [Roll Forward] | |
Goodwill acquired during 2015 | 0 |
Vacation Ownership [Member] | |
Goodwill [Roll Forward] | |
Balance at December 31, 2014 | 27 |
Foreign Exchange | 0 |
Balance at March 31, 2015 | 27 |
Vacation Ownership [Member] | Goodwill Acquired During 2015 [Member] | |
Goodwill [Roll Forward] | |
Goodwill acquired during 2015 | $0 |
Intangible_Assets_Amortization
Intangible Assets (Amortization Expense Related To Intangible Assets By Major Class) (Details) (USD $) | 3 Months Ended | |||
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | ||
Goodwill [Line Items] | ||||
Amortization of Intangible Assets | $9 | [1] | $9 | [1] |
Franchise Agreements [Member] | ||||
Goodwill [Line Items] | ||||
Amortization of Intangible Assets | 4 | 4 | ||
Management Agreements [Member] | ||||
Goodwill [Line Items] | ||||
Amortization of Intangible Assets | 2 | 2 | ||
Other Intangible Assets [Member] | ||||
Goodwill [Line Items] | ||||
Amortization of Intangible Assets | $3 | $3 | ||
[1] | Included as a component of depreciation and amortization on the Consolidated Statements of Income. |
Intangible_Assets_Intangible_A
Intangible Assets (Intangible Assets Future Amortization Expenses) (Details) (USD $) | Mar. 31, 2015 |
In Millions, unless otherwise specified | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Remainder of 2015 | $28 |
2016 | 35 |
2017 | 34 |
2018 | 33 |
2019 | 32 |
2020 | $31 |
Vacation_Ownership_Contract_Re2
Vacation Ownership Contract Receivables (Narrative) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 |
fico_score | |||
Vacation Ownership Contract Receivables [Abstract] | |||
Interest income on securitized receivables | $82 | $70 | |
Originated vacation ownership contract receivables | 220 | 210 | |
Vacation ownership contract principal collections | 206 | 204 | |
Weighted average interest rate on outstanding vacation ownership contract receivables | 13.60% | 13.60% | |
Provision for loan losses | $46 | $60 | |
FICO score range minimum | 300 | ||
FICO score range maximum | 850 | ||
Minimum days which Company ceases to accrue interest on VOI contract receivables | 90 days | ||
VOI contract receivable written off as credit loss | 120 days |
Vacation_Ownership_Contract_Re3
Vacation Ownership Contract Receivables (Current And Long-Term Vacation Ownership Contract Receivables) (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Accounts, Notes, Loans and Financing Receivables [Line Items] | ||
Current vaction ownership contract receivables | $337 | $344 |
Less: Allowance for loan losses | 57 | 59 |
Current vacation ownership contract receivables, net | 280 | 285 |
Long-term vacation ownership contract receivables | 2,870 | 2,928 |
Less: Allowance for loan losses | 508 | 522 |
Long-term vacation ownership contract receivables, net | 2,362 | 2,406 |
Securitized [Member] | ||
Accounts, Notes, Loans and Financing Receivables [Line Items] | ||
Current vaction ownership contract receivables | 254 | 256 |
Long-term vacation ownership contract receivables | 2,218 | 2,256 |
Non-Securitized [Member] | ||
Accounts, Notes, Loans and Financing Receivables [Line Items] | ||
Current vaction ownership contract receivables | 83 | 88 |
Long-term vacation ownership contract receivables | $652 | $672 |
Vacation_Ownership_Contract_Re4
Vacation Ownership Contract Receivables (Allowance For Loan Losses On Vacation Ownership Contract Receivables) (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Allowance for Loan Losses [Roll Forward] | ||
Allowance for loan losses, beginning balance | $581 | $566 |
Provision for loan losses | 46 | 60 |
Contract receivables write-offs, net | -62 | -63 |
Allowance for loan losses, ending balance | $565 | $563 |
Vacation_Ownership_Contract_Re5
Vacation Ownership Contract Receivables (Summary Of The Aged Analysis Of Financing Receivables Using The Most Recently Updated FICO Scores) (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Financing Receivables, Recorded Investment [Line Items] | ||
Financing receivables | $3,207 | $3,272 |
700+ [Member] | ||
Financing Receivables, Recorded Investment [Line Items] | ||
Financing receivables | 1,552 | 1,580 |
600-699 [Member] | ||
Financing Receivables, Recorded Investment [Line Items] | ||
Financing receivables | 1,056 | 1,074 |
Less Than 600 [Member] | ||
Financing Receivables, Recorded Investment [Line Items] | ||
Financing receivables | 226 | 229 |
No Score [Member] | ||
Financing Receivables, Recorded Investment [Line Items] | ||
Financing receivables | 126 | 123 |
Asia Pacific [Member] | ||
Financing Receivables, Recorded Investment [Line Items] | ||
Financing receivables | 247 | 266 |
Current [Member] | ||
Financing Receivables, Recorded Investment [Line Items] | ||
Financing receivables | 3,095 | 3,151 |
Current [Member] | 700+ [Member] | ||
Financing Receivables, Recorded Investment [Line Items] | ||
Financing receivables | 1,528 | 1,556 |
Current [Member] | 600-699 [Member] | ||
Financing Receivables, Recorded Investment [Line Items] | ||
Financing receivables | 1,015 | 1,028 |
Current [Member] | Less Than 600 [Member] | ||
Financing Receivables, Recorded Investment [Line Items] | ||
Financing receivables | 191 | 191 |
Current [Member] | No Score [Member] | ||
Financing Receivables, Recorded Investment [Line Items] | ||
Financing receivables | 118 | 115 |
Current [Member] | Asia Pacific [Member] | ||
Financing Receivables, Recorded Investment [Line Items] | ||
Financing receivables | 243 | 261 |
31 - 60 Days [Member] | ||
Financing Receivables, Recorded Investment [Line Items] | ||
Financing receivables | 49 | 58 |
31 - 60 Days [Member] | 700+ [Member] | ||
Financing Receivables, Recorded Investment [Line Items] | ||
Financing receivables | 10 | 12 |
31 - 60 Days [Member] | 600-699 [Member] | ||
Financing Receivables, Recorded Investment [Line Items] | ||
Financing receivables | 19 | 23 |
31 - 60 Days [Member] | Less Than 600 [Member] | ||
Financing Receivables, Recorded Investment [Line Items] | ||
Financing receivables | 14 | 16 |
31 - 60 Days [Member] | No Score [Member] | ||
Financing Receivables, Recorded Investment [Line Items] | ||
Financing receivables | 4 | 4 |
31 - 60 Days [Member] | Asia Pacific [Member] | ||
Financing Receivables, Recorded Investment [Line Items] | ||
Financing receivables | 2 | 3 |
61 - 90 Days [Member | ||
Financing Receivables, Recorded Investment [Line Items] | ||
Financing receivables | 32 | 34 |
61 - 90 Days [Member | 700+ [Member] | ||
Financing Receivables, Recorded Investment [Line Items] | ||
Financing receivables | 7 | 7 |
61 - 90 Days [Member | 600-699 [Member] | ||
Financing Receivables, Recorded Investment [Line Items] | ||
Financing receivables | 12 | 13 |
61 - 90 Days [Member | Less Than 600 [Member] | ||
Financing Receivables, Recorded Investment [Line Items] | ||
Financing receivables | 10 | 11 |
61 - 90 Days [Member | No Score [Member] | ||
Financing Receivables, Recorded Investment [Line Items] | ||
Financing receivables | 2 | 2 |
61 - 90 Days [Member | Asia Pacific [Member] | ||
Financing Receivables, Recorded Investment [Line Items] | ||
Financing receivables | 1 | 1 |
91 - 120 Days [Member] | ||
Financing Receivables, Recorded Investment [Line Items] | ||
Financing receivables | 31 | 29 |
91 - 120 Days [Member] | 700+ [Member] | ||
Financing Receivables, Recorded Investment [Line Items] | ||
Financing receivables | 7 | 5 |
91 - 120 Days [Member] | 600-699 [Member] | ||
Financing Receivables, Recorded Investment [Line Items] | ||
Financing receivables | 10 | 10 |
91 - 120 Days [Member] | Less Than 600 [Member] | ||
Financing Receivables, Recorded Investment [Line Items] | ||
Financing receivables | 11 | 11 |
91 - 120 Days [Member] | No Score [Member] | ||
Financing Receivables, Recorded Investment [Line Items] | ||
Financing receivables | 2 | 2 |
91 - 120 Days [Member] | Asia Pacific [Member] | ||
Financing Receivables, Recorded Investment [Line Items] | ||
Financing receivables | $1 | $1 |
Inventory_Narrative_Details
Inventory (Narrative) (Details) (USD $) | 3 Months Ended | ||
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 |
Inventory Disclosure [Abstract] | |||
Transferred property and equipment to VOI inventory | $15 | $12 | |
Inventory sold, outstanding obligation | 81 | 81 | |
Inventory sold, outstanding obligation, current | 12 | 7 | |
Inventory sold, outstanding obligation, non-current | $69 | $74 |
Inventory_Summary_of_Inventory
Inventory (Summary of Inventory) (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 | ||
In Millions, unless otherwise specified | ||||
Inventory Disclosure [Abstract] | ||||
Land held for VOI development | $136 | $136 | ||
VOI construction in process | 125 | 226 | ||
Inventory sold subject to conditional repurchase | 73 | 73 | ||
Completed VOI inventory | 562 | 431 | ||
Estimated recoveries | 230 | 235 | ||
Exchange and rentals vacation credits and other | 59 | 61 | ||
Total inventory | 1,185 | 1,162 | ||
Less: Current portion | 292 | [1] | 302 | [1] |
Non-current inventory | $893 | $860 | ||
[1] | Represents inventory that the Company expects to sell within the next 12 months. |
LongTerm_Debt_And_Borrowing_Ar2
Long-Term Debt And Borrowing Arrangements (Narrative) (Details) (USD $) | 0 Months Ended | ||
Mar. 26, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | |
Debt Instrument [Line Items] | |||
Total debt, carrying amount | $5,212,000,000 | $5,053,000,000 | |
Sierra Timeshare 2015-1 Receivables Funding, LLC [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument, face amount | 350,000,000 | ||
Weighted average interest rate | 2.54% | ||
Advance rate on securitized debt | 90.00% | ||
Total debt, carrying amount | 350,000,000 | ||
3.90% Senior Unsecured Notes (Due March 2023) [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument, interest rate, stated percentage | 3.90% | ||
4.25% Senior Unsecured Notes (Due March 2022) [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument, interest rate, stated percentage | 4.25% | ||
Interest Rate Swap [Member] | |||
Debt Instrument [Line Items] | |||
Derivative, aggregate fair value | 28,000,000 | 18,000,000 | |
Interest Rate Swap [Member] | 3.90% Senior Unsecured Notes (Due March 2023) [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument, interest rate, stated percentage | 3.90% | ||
Derivative, notional amount | 400,000,000 | ||
Derivative, variable interest rate | 2.37% | ||
Interest Rate Swap [Member] | 4.25% Senior Unsecured Notes (Due March 2022) [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument, interest rate, stated percentage | 4.25% | ||
Derivative, notional amount | 100,000,000 | ||
Derivative, variable interest rate | 2.28% | ||
Former Revolving Credit Facility [Member] | |||
Debt Instrument [Line Items] | |||
Credit facility, borrowing capacity | 1,500,000,000 | ||
New Revolving Credit Facility [Member] | |||
Debt Instrument [Line Items] | |||
Credit facility, borrowing capacity | 1,500,000,000 | ||
Credit facility, commitment fee percentage | 0.20% | ||
Basis spread on variable rate | 1.30% | ||
Domestic Commercial Paper [Member] | |||
Debt Instrument [Line Items] | |||
Commercial paper maximum borrowing capacity | 750,000,000 | ||
Commercial paper | 346,000,000 | ||
Commercial paper, weighted average interest rate | 1.01% | ||
European Commercial Paper [Member] | |||
Debt Instrument [Line Items] | |||
Commercial paper maximum borrowing capacity | 500,000,000 | ||
Commercial Paper [Member] | |||
Debt Instrument [Line Items] | |||
Commercial paper | $346,000,000 | $189,000,000 | |
Commercial paper, weighted average interest rate | 0.89% |
LongTerm_Debt_And_Borrowing_Ar3
Long-Term Debt And Borrowing Arrangements (Interest Expense Narrative) (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Debt Instrument [Line Items] | ||
Interest capitalized | $2 | $1 |
Gain on ineffectiveness of fair value hedge | 1 | |
Interest on long-term debt | 29 | 28 |
Long-Term Debt Borrowings And Capitalized Interest [Member] | ||
Debt Instrument [Line Items] | ||
Interest expense incurred | 26 | 27 |
Cash paid | 43 | 42 |
Securitized Vacation Ownership Debt [Member] | ||
Debt Instrument [Line Items] | ||
Interest expense incurred | 18 | 17 |
Consumer Finance [Member] | ||
Debt Instrument [Line Items] | ||
Cash paid | $14 | $13 |
LongTerm_Debt_And_Borrowing_Ar4
Long-Term Debt And Borrowing Arrangements (Summary Of Indebtedness-Long-Term Debt) (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 | ||
In Millions, unless otherwise specified | ||||
Debt Instrument [Line Items] | ||||
Less: Current portion of securitized vacation ownership debt | $217 | $214 | ||
Long-term securitized vacation ownership debt | 1,971 | 1,951 | ||
Less: Current portion of long-term debt | 53 | 47 | ||
Long-term vacation ownership contract receivables | 2,870 | 2,928 | ||
Unamortized discount | 14 | 14 | ||
6.00% Senior Unsecured Notes (Due December 2016) [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, interest rate, stated percentage | 6.00% | |||
2.95% Senior Unsecured Notes (Due March 2017) [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, interest rate, stated percentage | 2.95% | |||
5.75% Senior Unsecured Notes (Due February 2018) [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, interest rate, stated percentage | 5.75% | |||
2.50% Senior Unsecured Notes (Due March 2018) [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, interest rate, stated percentage | 2.50% | |||
7.375% Senior Unsecured Notes (Due March 2020) [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, interest rate, stated percentage | 7.38% | |||
5.625% Senior Unsecured Notes (Due March 2021) [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, interest rate, stated percentage | 5.63% | |||
4.25% Senior Unsecured Notes (Due March 2022) [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, interest rate, stated percentage | 4.25% | |||
3.90% Senior Unsecured Notes (Due March 2023) [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, interest rate, stated percentage | 3.90% | |||
Term Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Secured Debt | 2,090 | [1] | 1,962 | [1] |
Bank Conduit Facility (Due August 2016) [Member] | ||||
Debt Instrument [Line Items] | ||||
Secured Debt | 98 | [1] | 203 | [1] |
Securitized Vacation Ownership Debt [Member] | ||||
Debt Instrument [Line Items] | ||||
Secured Debt | 2,188 | 2,165 | ||
Less: Current portion of securitized vacation ownership debt | 217 | 214 | ||
Long-term securitized vacation ownership debt | 1,971 | 1,951 | ||
Long-term vacation ownership contract receivables | 2,609 | 2,629 | ||
Revolving Credit Facility [Member] | ||||
Debt Instrument [Line Items] | ||||
Revolving credit facility | 14 | |||
Commercial paper | 346 | [2] | ||
Revolving Credit Facility [Member] | Revolving Credit Facility (Due July 2020) [Member] | ||||
Debt Instrument [Line Items] | ||||
Revolving credit facility | 14 | 25 | ||
Commercial Paper [Member] | ||||
Debt Instrument [Line Items] | ||||
Commercial paper | 346 | 189 | ||
Other [Member] | ||||
Debt Instrument [Line Items] | ||||
Capital leases | 161 | 170 | ||
Other | 70 | 81 | ||
Total long-term debt | 3,024 | 2,888 | ||
Less: Current portion of long-term debt | 53 | 47 | ||
Long-term debt | 2,971 | 2,841 | ||
Other [Member] | 6.00% Senior Unsecured Notes (Due December 2016) [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, face amount | 315 | |||
Senior notes | 317 | [3],[4] | 317 | [3],[4] |
Unamortized gains from the settlement of a derivative | 2 | 2 | ||
Other [Member] | 2.95% Senior Unsecured Notes (Due March 2017) [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, face amount | 300 | |||
Senior notes | 299 | [3] | 299 | [3] |
Other [Member] | 5.75% Senior Unsecured Notes (Due February 2018) [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, face amount | 14 | |||
Senior notes | 14 | [3] | 14 | [3] |
Other [Member] | 2.50% Senior Unsecured Notes (Due March 2018) [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, face amount | 450 | |||
Senior notes | 448 | [3] | 448 | [3] |
Other [Member] | 7.375% Senior Unsecured Notes (Due March 2020) [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, face amount | 40 | |||
Senior notes | 40 | [3] | 40 | [3] |
Other [Member] | 5.625% Senior Unsecured Notes (Due March 2021) [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, face amount | 250 | |||
Senior notes | 247 | [3] | 247 | [3] |
Other [Member] | 4.25% Senior Unsecured Notes (Due March 2022) [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, face amount | 650 | |||
Senior notes | 650 | [3],[5] | 648 | [3],[5] |
Derivative, additional amount to hedge item | 4 | 3 | ||
Other [Member] | 3.90% Senior Unsecured Notes (Due March 2023) [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, face amount | 400 | |||
Senior notes | 418 | [3],[6] | 410 | [3],[6] |
Derivative, additional amount to hedge item | $21 | $13 | ||
[1] | Represents non-recourse debt that is securitized through bankruptcy-remote special purpose entities (bSPEsb), the creditors of which have no recourse to the Company for principal and interest. These outstanding borrowings are collateralized by $2,609 million and $2,629 million of underlying gross vacation ownership contract receivables and related assets as of MarchB 31, 2015 and DecemberB 31, 2014, respectively. | |||
[2] | The Company considers outstanding borrowings under its commercial paper programs to be a reduction of the available capacity of its revolving credit facility. | |||
[3] | The carrying amounts of the senior unsecured notes are net of unamortized discounts aggregating $14 million as of both MarchB 31, 2015 and DecemberB 31, 2014. | |||
[4] | Includes $2 million of unamortized gains from the settlement of a derivative as of both MarchB 31, 2015 and DecemberB 31, 2014. | |||
[5] | Includes an increase of $4 million and $3 million in the carrying value resulting from a fair value hedge derivative as of MarchB 31, 2015 and DecemberB 31, 2014, respectively. | |||
[6] | Includes an increase of $21 million and $13 million in the carrying value resulting from a fair value hedge derivative as of MarchB 31, 2015 and DecemberB 31, 2014, respectively. |
LongTerm_Debt_And_Borrowing_Ar5
Long-Term Debt And Borrowing Arrangements (Summary Of Outstanding Debt Maturities) (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Debt Instrument [Line Items] | ||
Within 1 year | $270 | |
Between 1 and 2 years | 903 | |
Between 2 and 3 years | 772 | |
Between 3 and 4 years | 234 | |
Between 4 and 5 years | 280 | |
Thereafter | 2,753 | |
Long-term debt outstanding | 5,212 | 5,053 |
Securitized Vacation Ownership Debt [Member] | ||
Debt Instrument [Line Items] | ||
Within 1 year | 217 | |
Between 1 and 2 years | 243 | |
Between 2 and 3 years | 296 | |
Between 3 and 4 years | 221 | |
Between 4 and 5 years | 227 | |
Thereafter | 984 | |
Secured Debt | 2,188 | 2,165 |
Other [Member] | ||
Debt Instrument [Line Items] | ||
Within 1 year | 53 | |
Between 1 and 2 years | 660 | |
Between 2 and 3 years | 476 | |
Between 3 and 4 years | 13 | |
Between 4 and 5 years | 53 | |
Thereafter | 1,769 | |
Total long-term debt | $3,024 | $2,888 |
LongTerm_Debt_And_Borrowing_Ar6
Long-Term Debt And Borrowing Arrangements (Summary Of Available Capacity Under Borrowing Arrangements) (Details) (USD $) | Mar. 31, 2015 | |
In Millions, unless otherwise specified | ||
Securitized Bank Conduit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Total Capacity | $650 | [1] |
Revolving credit facility | 98 | [1] |
Available Capacity | 552 | [1] |
Revolving Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Total Capacity | 1,500 | |
Revolving credit facility | 14 | |
Letters of Credit Outstanding, Amount | 1 | |
Commercial paper | 346 | [2] |
Line of Credit Facility, Remaining Borrowing Capacity | $1,139 | |
[1] | The capacity of this facility is subject to the Companybs ability to provide additional assets to collateralize additional securitized borrowings. | |
[2] | The Company considers outstanding borrowings under its commercial paper programs to be a reduction of the available capacity of its revolving credit facility. |
Variable_Interest_Entities_Nar
Variable Interest Entities (Narrative) (Details) (USD $) | 3 Months Ended | ||
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 |
Schedule Of Transfer And Financial Assets [Line Items] | |||
Restricted cash and cash equivalents | $61 | $51 | |
Purchased property and equipment | 56 | 46 | |
Midtown 45, NYC Property [Member] | |||
Schedule Of Transfer And Financial Assets [Line Items] | |||
Purchased property and equipment | 10 | ||
Non Securitized Receivable [Member] | |||
Schedule Of Transfer And Financial Assets [Line Items] | |||
Non-securitized contract receivables | $735 | $760 |
Variable_Interest_Entities_Ass
Variable Interest Entities (Assets And Liabilities Of Vacation Ownership SPEs) (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 | ||
In Millions, unless otherwise specified | ||||
Schedule Of Transfer And Financial Assets [Line Items] | ||||
Securitized contract receivables, gross | $2,642 | $2,691 | ||
Total assets | 9,898 | 9,679 | ||
Total liabilities | 8,814 | 8,422 | ||
SPE assets in excess of SPE liabilities | 419 | 463 | ||
Securitized contract receivables, net, current | 280 | 285 | ||
Securitized contract receivables, net, non-current | 2,362 | 2,406 | ||
Deferred financing cost related to securitized debt | 31 | 30 | ||
Vacation Ownership SPEs [Member] | ||||
Schedule Of Transfer And Financial Assets [Line Items] | ||||
Securitized contract receivables, gross | 2,472 | [1] | 2,512 | [1] |
Securitized restricted cash | 116 | [2] | 96 | [2] |
Interest receivables on securitized contract receivables | 19 | [3] | 20 | [3] |
Other assets | 2 | [4] | 1 | [4] |
Total assets | 2,609 | [5] | 2,629 | [5] |
Securitized term notes | 2,090 | [6] | 1,962 | [6] |
Securitized conduit facilities | 98 | [6] | 203 | [6] |
Other liabilities | 2 | [7] | 1 | [7] |
Total liabilities | 2,190 | 2,166 | ||
SPE assets in excess of SPE liabilities | 419 | 463 | ||
Securitized contract receivables, net, current | 254 | 256 | ||
Securitized contract receivables, net, non-current | 2,218 | 2,256 | ||
Securitized restricted cash, current | 90 | 75 | ||
Securitized restricted cash, non-current | 26 | 21 | ||
Securitized conduit facilities, current | 217 | 214 | ||
Securitized conduit facilities, long-term | 1,971 | 1,951 | ||
Accrued interest on securitized debt | $2 | $1 | ||
[1] | Included in current ($254 million and $256 million as of MarchB 31, 2015 and DecemberB 31, 2014, respectively) and non-current ($2,218 million and $2,256 million as of MarchB 31, 2015 and DecemberB 31, 2014, respectively) vacation ownership contract receivables on the Consolidated Balance Sheets. | |||
[2] | Included in other current assets ($90 million and $75 million as of MarchB 31, 2015 and DecemberB 31, 2014, respectively) and other non-current assets ($26 million and $21 million as of MarchB 31, 2015 and DecemberB 31, 2014, respectively) on the Consolidated Balance Sheets. | |||
[3] | Included in trade receivables, net on the Consolidated Balance Sheets. | |||
[4] | Includes interest rate derivative contracts and related assets; included in other non-current assets on the Consolidated Balance Sheets. | |||
[5] | Excludes deferred financing costs of $31 million and $30 million as of MarchB 31, 2015 and DecemberB 31, 2014, respectively, related to securitized debt. | |||
[6] | Included in current ($217 million and $214 million as of MarchB 31, 2015 and DecemberB 31, 2014, respectively) and long-term ($1,971 million and $1,951 million as of MarchB 31, 2015 and DecemberB 31, 2014, respectively) securitized vacation ownership debt on the Consolidated Balance Sheets. | |||
[7] | Primarily includes accrued interest on securitized debt of $2 million and $1 million as of MarchB 31, 2015 and DecemberB 31, 2014, respectively, which is included in accrued expenses and other current liabilities on the Consolidated Balance Sheets. |
Variable_Interest_Entities_Sum
Variable Interest Entities (Summary Of Total Vacation Ownership Receivables And Other Securitized Assets, Net Of Securitized Liabilities And Allowance For Loan Losses) (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||||
Schedule Of Transfer And Financial Assets [Line Items] | ||||
SPE assets in excess of SPE liabilities | $419 | $463 | ||
Less: Allowance for loan losses | 565 | 581 | 563 | 566 |
Total, net | 589 | 642 | ||
Non Securitized Receivable [Member] | ||||
Schedule Of Transfer And Financial Assets [Line Items] | ||||
Non-securitized contract receivables | $735 | $760 |
Variable_Interest_Entities_Ass1
Variable Interest Entities (Assets and Liabilities of the SPE) (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 | ||
In Millions, unless otherwise specified | ||||
Variable Interest Entity [Line Items] | ||||
Property and equipment, net | $1,443 | $1,500 | ||
Total assets | 9,898 | 9,679 | ||
Other current liabilities | 696 | 749 | ||
Total liabilities | 8,814 | 8,422 | ||
SPE deficit | 419 | 463 | ||
Current portion of long-term debt | 53 | 47 | ||
Midtown 45, NYC Property [Member] | ||||
Variable Interest Entity [Line Items] | ||||
Property and equipment, net | 54 | 64 | ||
Total assets | 54 | 64 | ||
Other current liabilities | 0 | 1 | ||
Long-term Debt | 64 | [1] | 77 | [1] |
Total liabilities | 64 | 78 | ||
SPE deficit | -10 | -14 | ||
Current portion of long-term debt | 34 | 31 | ||
Mortgage Note - SPE [Member] | Midtown 45, NYC Property [Member] | ||||
Variable Interest Entity [Line Items] | ||||
Debt instrument, face amount | 59 | 71 | ||
Mandatorily Redeemable Equity - SPE [Member] | Midtown 45, NYC Property [Member] | ||||
Variable Interest Entity [Line Items] | ||||
Debt instrument, face amount | $5 | $6 | ||
[1] | As of MarchB 31, 2015, included $59 million for a four-year mortgage note and $5 million of mandatorily redeemable equity, of which $34 million was included in current portion of long-term debt on the Consolidated Balance Sheet. As of DecemberB 31, 2014, included $71 million for a four-year mortgage note and $6 million of mandatorily redeemable equity, of which $31 million was included in current portion of long-term debt on the Consolidated Balance Sheet. |
Fair_Value_Summary_Of_Assets_A
Fair Value (Summary Of Assets And Liabilities Measured At Fair Value On Recurring Basis) (Details) (Recurring Basis [Member], USD $) | Mar. 31, 2015 | Dec. 31, 2014 | ||
In Millions, unless otherwise specified | ||||
Summary Of Assets And Liabilities Measured At Fair Value On Recurring Basis [Line Items] | ||||
Derivative assets included in other current assets | $1 | $1 | ||
Derivative assets included in other non-current assets | 28 | 18 | ||
Derivative liabilities included in accrued expenses and other current liabilities | 18 | 7 | ||
Derivative Liabilities, interest rate swap locks | 12 | 4 | ||
Fair Value [Member] | Level 2 [Member] | ||||
Summary Of Assets And Liabilities Measured At Fair Value On Recurring Basis [Line Items] | ||||
Derivative assets | 29 | 19 | ||
Derivative liabilities | 18 | 7 | ||
Fair Value [Member] | Level 2 [Member] | Interest Rate Contracts [Member] | ||||
Summary Of Assets And Liabilities Measured At Fair Value On Recurring Basis [Line Items] | ||||
Derivative assets | 28 | [1] | 18 | [1] |
Derivative liabilities | 12 | [2],[3] | 4 | [2],[3] |
Fair Value [Member] | Level 2 [Member] | Foreign Exchange Contracts [Member] | ||||
Summary Of Assets And Liabilities Measured At Fair Value On Recurring Basis [Line Items] | ||||
Derivative assets | 1 | [1] | 1 | [1] |
Derivative liabilities | 6 | [2] | 3 | [2] |
Carrying Amount [Member] | Level 2 [Member] | ||||
Summary Of Assets And Liabilities Measured At Fair Value On Recurring Basis [Line Items] | ||||
Derivative assets | 29 | 19 | ||
Derivative liabilities | 18 | 7 | ||
Carrying Amount [Member] | Level 2 [Member] | Interest Rate Contracts [Member] | ||||
Summary Of Assets And Liabilities Measured At Fair Value On Recurring Basis [Line Items] | ||||
Derivative assets | 28 | [1] | 18 | [1] |
Derivative liabilities | 12 | [2],[3] | 4 | [2],[3] |
Carrying Amount [Member] | Level 2 [Member] | Foreign Exchange Contracts [Member] | ||||
Summary Of Assets And Liabilities Measured At Fair Value On Recurring Basis [Line Items] | ||||
Derivative assets | 1 | [1] | 1 | [1] |
Derivative liabilities | $6 | [2] | $3 | [2] |
[1] | Included in other current assets ($1 million as of both MarchB 31, 2015 and DecemberB 31, 2014) and other non-current assets ($28 million and $18 million as of MarchB 31, 2015 and DecemberB 31, 2014, respectively) on the Consolidated Balance Sheets. | |||
[2] | Included in accrued expenses and other current liabilities ($18 million and $7 million as of MarchB 31, 2015 and DecemberB 31, 2014, respectively). | |||
[3] | Liabilities of $12 million and $4 million as of MarchB 31, 2015 and DecemberB 31, 2014, respectively, primarily represent interest rate swap locks for an anticipated 2015 transaction. |
Fair_Value_Carrying_Amounts_An
Fair Value (Carrying Amounts And Estimated Fair Values Of Financial Instruments) (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Fair Value Disclosures [Abstract] | ||
Vacation ownership contract receivables, net, carrying amount | $2,642 | $2,691 |
Vacation ownership contract receivables, net, estimated fair value | 3,242 | 3,284 |
Total debt, carrying amount | 5,212 | 5,053 |
Total debt, estimated fair value | $5,314 | $5,140 |
Derivative_Instruments_And_Hed1
Derivative Instruments And Hedging Activities (Narrative) (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Gain (Loss) on Derivative, Net | ($12) | ($1) |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Current Income Tax Expense (Benefit), Continuing Operations [Abstract] | ||
Effective income tax rate | 38.40% | 39.60% |
Income taxes payments, net of refunds | $17 | $13 |
Commitments_And_Contingencies_
Commitments And Contingencies (Narrative) (Details) (USD $) | 3 Months Ended | ||
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 |
Loss Contingencies [Line Items] | |||
Litigation reserves | $26 | $24 | |
Range of possible loss, portion not accrued | 23 | ||
Percentage of Cendant's contingent and other corporate liabilities and associated costs | 37.50% | ||
Lodging [Member] | |||
Loss Contingencies [Line Items] | |||
Maximum potential future payment | 175 | ||
Annual cap | 45 | ||
Amount of liability in guarantees | 30 | 32 | |
Guarantor offsetting asset carrying value | 38 | 39 | |
Amortization expense, contingent asset | 1 | 1 | |
Guarantor obligation recourse receivable | 33 | ||
Lodging [Member] | Minimum [Member] | |||
Loss Contingencies [Line Items] | |||
Guarantor obligations, term | 7 years | ||
Lodging [Member] | Maximum [Member] | |||
Loss Contingencies [Line Items] | |||
Guarantor obligations, term | 10 years | ||
Vacation Ownership [Member] | |||
Loss Contingencies [Line Items] | |||
Aggregate amount of purchase commitments | 262 | ||
Accrued Liabilities [Member] | Lodging [Member] | |||
Loss Contingencies [Line Items] | |||
Amount of liability in guarantees | 6 | 1 | |
Other Non Current Liabilities [Member] | Lodging [Member] | |||
Loss Contingencies [Line Items] | |||
Amount of liability in guarantees | 24 | 31 | |
Other Current Assets [Member] | Lodging [Member] | |||
Loss Contingencies [Line Items] | |||
Guarantor offsetting asset carrying value | 4 | 4 | |
Guarantor obligation recourse receivable | 4 | ||
Non Current Assets [Member] | Lodging [Member] | |||
Loss Contingencies [Line Items] | |||
Guarantor offsetting asset carrying value | 34 | 35 | |
Guarantor obligation recourse receivable | $29 | $26 |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive (Loss)/Income (Components Of Accumulated Other Comprehensive Income) (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Accumulated Other Comprehensive Income, Before Tax | ||
Beginning, Foreign Currency Translation Adjustments | ($13) | |
Period Change, Foreign Currency Transaction Adjustments | -97 | |
Ending, Foreign Currency Translation Adjustments | -110 | |
Beginning, Unrealized Gains/(Losses) on Cash Flow Hedges | -8 | |
Period Change, Unrealized Gains/(Losses) on Cash Flow Hedges | -6 | |
Ending, Unrealized Gains/(Losses) on Cash Flow Hedges | -14 | |
Beginning, Defined Benefit Pension Plans | -12 | |
Period Change, Defined Benefit Pension Plans | 0 | |
Ending, Defined Benefit Pension Plans | -12 | |
Beginning, Accumulated Other Comprehensive Income | -33 | |
Period Change, Accumulated Other Comprehensive Income | -103 | |
Ending, Accumulated Other Comprehensive Income | -136 | |
Accumulated Other Comprehensive Income, Tax | ||
Beginning, Foreign Currency Translation Adjustments | 50 | |
Period Change, Foreign Currency Translation Adjustment | 17 | |
Ending, Foreign Currency Translation Adjustments | 67 | |
Beginning, Unrealized Gains/(Losses) on Cash Flow Hedges | 4 | |
Period Change, Unrealized Gains/(Losses) on Cash Flow Hedges | 2 | |
Ending, Unrealized Gains/(Losses) on Cash Flow Hedges | 6 | |
Beginning, Defined Benefit Pension Plans | 3 | |
Period Change, Defined Benefit Pension Plans | 0 | |
Ending, Defined Benefit Pension Plans | 3 | |
Beginning, Accumulated Other Comprehensive Income | 57 | |
Period Change, Accumulated Other Comprehensive Income | 19 | |
Ending, Accumulated Other Comprehensive Income | 76 | |
Accumulated Other Comprehensive Income, Net Of Tax | ||
Beginning, Foreign Currency Translation Adjustments | 37 | |
Period Change, Foreign Currency Transaction and Translation Adjustments | -80 | 12 |
Ending, Foreign Currency Translation Adjustments | -43 | |
Beginning, Unrealized Gains/(Losses) on Cash Flow Hedges | -4 | |
Period Change, Unrealized Gains/(Losses) on Cash Flow Hedges | -4 | 0 |
Ending, Unrealized Gains/(Losses) on Cash Flow Hedges | -8 | |
Beginning, Defined Benefit Pension Plans | -9 | |
Period Change, Defined Benefit Pension Plans | 0 | |
Ending, Defined Benefit Pension Plans | -9 | |
Beginning, Accumulated Other Comprehensive Income | 24 | |
Period Change, Accumulated Other Comprehensive Income | -84 | 12 |
Ending, Accumulated Other Comprehensive Income | ($60) |
StockBased_Compensation_Narrat
Stock-Based Compensation (Narrative) (Details) (USD $) | 3 Months Ended | 0 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Feb. 26, 2015 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Maximum shares of common stock to be awarded | 36.7 | ||
Remaining shares available | 16.3 | ||
Stock-based compensation | $15 | $16 | |
Recognized net tax benefit | 6 | 6 | |
Excess tax benefits available to absorb tax deficiencies | 17 | ||
Employee service share-based compensation, APIC pool balance | 129 | ||
Payment of taxes for net share settlement | 41 | 44 | |
RSUs and SSARs [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Approved grants of incentive equity awards | 59 | ||
Vesting terms, in years | 4 years | ||
Performance Stock Units [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Approved grants of incentive equity awards | $16 |
StockBased_Compensation_Incent
Stock-Based Compensation (Incentive Equity Awards Granted By The Company) (Details) (USD $) | 3 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Mar. 31, 2015 | Feb. 26, 2015 | |
Restricted Stock Units (RSUs) [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested [Roll Forward] | |||
Number of Units, Beginning Balance (shares) | 2 | ||
Number of Units, Granted (shares) | 0.6 | [1] | |
Number of Units, Vested/exercised (shares) | -0.9 | ||
Number of Units, Ending Balance (shares) | 1.7 | [2],[3] | |
Weighted Average Grant Price, Beginning Balance (in dollars per share) | $57.13 | ||
Weighted Average Grant Price, Granted (in dollars per share) | $91.81 | [1] | |
Weighted Average Grant Price, Vested/exercised (in dollars per share) | $49.11 | ||
Weighted Average Grant Price, Ending Balance (in dollars per share) | $73.39 | ||
Shares outstanding, expected to vest | 1.7 | ||
Performance Stock Units [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested [Roll Forward] | |||
Number of Units, Beginning Balance (shares) | 0.7 | ||
Number of Units, Granted (shares) | 0.2 | [1] | |
Number of Units, Vested/exercised (shares) | -0.3 | ||
Number of Units, Ending Balance (shares) | 0.6 | [4] | |
Weighted Average Grant Price, Beginning Balance (in dollars per share) | $57.99 | ||
Weighted Average Grant Price, Granted (in dollars per share) | $91.81 | [1] | |
Weighted Average Grant Price, Vested/exercised (in dollars per share) | $44.57 | ||
Weighted Average Grant Price, Ending Balance (in dollars per share) | $73.57 | ||
Unrecognized compensation expense, maximum | $31 | ||
Stock Settled Stock Appreciation Rights [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested [Roll Forward] | |||
Number of Units, Beginning Balance (shares) | 0.7 | ||
Number of Units, Granted (shares) | 0.1 | [1] | |
Number of Units, Ending Balance (shares) | 0.8 | [3],[5] | |
Weighted Average Grant Price, Beginning Balance (in dollars per share) | $18.55 | ||
Weighted Average Grant Price, Ending Balance (in dollars per share) | $18.55 | ||
Weighted Average Exercise Price, Beginning Balance (in dollars per share) | $40.09 | ||
Weighted Average Exercise Price, Granted (in dollars per share) | $91.81 | [1] | |
Weighted Average Exercise Price, Ending Balance (in dollars per share) | $46.45 | ||
Shares outstanding, expected to vest | 0.6 | ||
Shares, intrinsic value | 36 | ||
Weighted average remaining contractual life, years | 2 years 10 months | ||
RSUs and SSARs [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested [Roll Forward] | |||
Unrecognized compensation expense, maximum | $128 | ||
Incentive equity awards vesting ratably over a period, in years | 3 years 1 month | ||
[1] | Represents awards granted by the Company on FebruaryB 26, 2015. | ||
[2] | Approximately 1.7 million RSUs outstanding as of MarchB 31, 2015 are expected to vest over time. | ||
[3] | Aggregate unrecognized compensation expense related to RSUs and SSARs was $128 million as of MarchB 31, 2015, which is expected to be recognized over a weighted average period of 3.1 years. | ||
[4] | Maximum aggregate unrecognized compensation expense was $31 million as of MarchB 31, 2015. | ||
[5] | Approximately 0.6 million SSARs are exercisable as of MarchB 31, 2015. The Company assumes that all unvested SSARs are expected to vest over time. SSARs outstanding as of MarchB 31, 2015 had an intrinsic value of $36 million and have a weighted average remaining contractual life of 2.8 years. |
StockBased_Compensation_Weight
Stock-Based Compensation (Weighted Average Grant Date Fair Value Assumptions) (Details) (Stock Settled Stock Appreciation Rights [Member], USD $) | 0 Months Ended | |
Feb. 26, 2015 | Feb. 26, 2015 | |
Stock Settled Stock Appreciation Rights [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Grant date fair value (in dollars per share) | $18.55 | $18.55 |
Grant date strike price (in dollars per share) | $91.81 | |
Expected volatility | 25.38% | |
Expected life (years) | 5 years 1 month | |
Risk free interest rate | 1.64% | |
Projected dividend yield | 1.83% |
Segment_Information_Summary_Of
Segment Information (Summary Of Segment Information) (Details) (USD $) | 3 Months Ended | |||
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | ||
Segment Reporting Information [Line Items] | ||||
Net revenues | $1,262 | $1,193 | ||
EBITDA | 277 | 230 | ||
Depreciation and amortization | 56 | 56 | ||
Interest expense | 26 | 27 | ||
Interest income | -3 | -2 | ||
Income before income taxes | 198 | 149 | ||
Provision for income taxes | 76 | 59 | ||
Net income | 122 | 90 | ||
Lodging [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net revenues | 292 | [1] | 237 | [1],[2] |
EBITDA | 76 | [1] | 64 | [1] |
Intersegment trademark fees | 12 | 9 | ||
Management fees | 2 | |||
Vacation Exchange And Rentals [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net revenues | 369 | 379 | ||
EBITDA | 105 | 85 | ||
Vacation Ownership [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net revenues | 617 | 593 | ||
EBITDA | 130 | 115 | ||
Total Reportable Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net revenues | 1,278 | 1,209 | ||
EBITDA | 311 | 264 | ||
Corporate and Other [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net revenues | -16 | [3] | -16 | [3] |
EBITDA | ($34) | [3] | ($34) | [3] |
[1] | Includes $12 million and $9 million of intersegment trademark fees during the three months ended MarchB 31, 2015 and 2014, respectively, which are offset in expenses primarily at the Companybs Vacation Ownership segment and are eliminated in Corporate and Other. | |||
[2] | Includes $2 million of hotel management reimbursable revenues for the three months ended MarchB 31, 2014, which was charged to the Companybs Vacation Ownership segment and eliminated in Corporate and Other. | |||
[3] | Includes the elimination of transactions between segments. |
Restructuring_Narrative_Detail
Restructuring (Narrative) (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | |
Restructuring Cost and Reserve [Line Items] | ||
Cash payments | $3 | |
Restructuring accrual | -1 | |
Restructuring liability expected to be paid | 4 | |
Restructuring Plan 2014 [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Cash payments | 3 | |
Restructuring accrual | -1 | [1] |
Restructuring liability expected to be paid | $3 | |
[1] | Represents a reversal of a portion of previously recorded expenses at the Companybs vacation exchange and rentals business. |
Restructuring_Activity_Related
Restructuring (Activity Related To The Restructuring Costs) (Details) (USD $) | 3 Months Ended | ||
In Millions, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 | |
Restructuring Cost and Reserve [Roll Forward] | |||
Liability as of December 31, 2014 | $11 | ||
Cash payments | -3 | ||
Other | -1 | ||
Liability as of March 31, 2015 | 7 | ||
Personnel-Related [Member] | |||
Restructuring Cost and Reserve [Roll Forward] | |||
Liability as of December 31, 2014 | 6 | ||
Cash payments | -3 | ||
Liability as of March 31, 2015 | 3 | ||
Facility-Related [Member] | |||
Restructuring Cost and Reserve [Roll Forward] | |||
Liability as of December 31, 2014 | 4 | ||
Liability as of March 31, 2015 | 4 | 4 | |
Contract Termination [Member] | |||
Restructuring Cost and Reserve [Roll Forward] | |||
Liability as of December 31, 2014 | 1 | ||
Other | -1 | [1] | |
Liability as of March 31, 2015 | $0 | ||
[1] | Represents a reversal of a portion of previously recorded expenses at the Companybs vacation exchange and rentals business. |
Separation_Adjustments_And_Tra1
Separation Adjustments And Transactions With Former Parent And Subsidiaries (Narrative) (Details) (USD $) | 3 Months Ended | 12 Months Ended |
In Millions, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 |
Separation Adjustments And Transactions With Former Parent And Subsidiaries [Line Items] | ||
Liabilities assumed | $34 | $38 |
Tax liabilities assumed | 30 | |
Other contingent and corporate liabilities assumed | 1 | |
Guarantee amount over contingent liability assumed | 2 | |
Separation liabilities, current | 20 | |
Separation liabilities, non-current | 14 | |
Receivables due from former Parent and subsidiaries | 1 | 1 |
Cendant [Member] | ||
Separation Adjustments And Transactions With Former Parent And Subsidiaries [Line Items] | ||
Responsible liability for separation agreement | 37.50% | |
Previously sold businesses of Cendant assumed | 1 | |
Realogy [Member] | ||
Separation Adjustments And Transactions With Former Parent And Subsidiaries [Line Items] | ||
Responsible liability for separation agreement | 62.50% | |
Standby Letters Of Credit [Member] | Realogy [Member] | ||
Separation Adjustments And Transactions With Former Parent And Subsidiaries [Line Items] | ||
Standby letter of credit | $53 |