Document And Entity Information
Document And Entity Information | 9 Months Ended |
Sep. 30, 2021shares | |
Cover [Abstract] | |
Document Type | 10-Q |
Document Quarterly Report | true |
Document Period End Date | Sep. 30, 2021 |
Document Transition Report | false |
Entity File Number | 001-32876 |
Entity Registrant Name | Travel & Leisure Co. |
Entity Incorporation, State or Country Code | DE |
Entity Tax Identification Number | 20-0052541 |
Entity Address, Address Line One | 6277 Sea Harbor Drive |
Entity Address, City or Town | Orlando, |
Entity Address, State or Province | FL |
Entity Address, Postal Zip Code | 32821 |
City Area Code | 407 |
Local Phone Number | 626-5200 |
Title of 12(b) Security | Common Stock, $0.01 par value per share |
Trading Symbol | TNL |
Security Exchange Name | NYSE |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Small Business | false |
Entity Emerging Growth Company | false |
Entity Shell Company | false |
Entity Common Stock, Shares Outstanding | 86,356,226 |
Amendment Flag | false |
Document Fiscal Year Focus | 2021 |
Document Fiscal Period Focus | Q3 |
Entity Central Index Key | 0001361658 |
Current Fiscal Year End Date | --12-31 |
Condensed Consolidated Statemen
Condensed Consolidated Statements Of Income/(Loss) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | ||
Net revenues | |||||
Net revenues | $ 839 | $ 614 | $ 2,264 | $ 1,515 | |
Expenses | |||||
Operating | 352 | 263 | 992 | 861 | |
Cost/(recovery) of vacation ownership interests | 43 | 22 | 105 | (26) | |
Consumer financing interest | 19 | 26 | 63 | 76 | |
General and administrative | 106 | 101 | 325 | 295 | |
Marketing | 101 | 84 | 261 | 247 | |
Depreciation and amortization | 31 | 32 | 93 | 94 | |
COVID-19 related costs | 1 | 14 | 3 | 81 | |
Asset impairments | 0 | 6 | 0 | 50 | |
Restructuring | 0 | 2 | (1) | 27 | |
Total expenses | 653 | 550 | 1,841 | 1,705 | |
Operating income/(loss) | 186 | 64 | 423 | (190) | |
Other (income), net | 0 | (5) | (2) | (11) | |
Interest expense | 47 | 52 | 147 | 138 | |
Interest (income) | (1) | (2) | (1) | (5) | |
Income/(loss) before income taxes | 140 | 19 | 279 | (312) | |
Provision/(benefit) for income taxes | 39 | (21) | 76 | (54) | |
Net income/(loss) from continuing operations | 101 | 40 | 203 | (258) | |
Loss on disposal of discontinued business, net of income taxes | 0 | 0 | (2) | 0 | |
Net income/(loss) attributable to Travel + Leisure Co. shareholders | $ 101 | $ 40 | $ 201 | $ (258) | |
Basic earnings/(loss) per share | |||||
Continuing operations | [1] | $ 1.16 | $ 0.47 | $ 2.35 | $ (3) |
Discontinued operations | [1] | 0 | 0 | (0.02) | 0 |
Basic earnings/(loss) per share | [1] | 1.16 | 0.47 | 2.33 | (3) |
Diluted earnings/(loss) per share | |||||
Continuing operations | [1] | 1.15 | 0.47 | 2.33 | (3) |
Discontinued operations | [1] | 0 | 0 | (0.03) | 0 |
Diluted earnings/(loss) per share | [1] | $ 1.15 | $ 0.47 | $ 2.30 | $ (3) |
Service and membership fees | |||||
Net revenues | |||||
Net revenues | $ 378 | $ 291 | $ 1,114 | $ 845 | |
Vacation ownership interest sales | |||||
Net revenues | |||||
Net revenues | 344 | 196 | 810 | 273 | |
Consumer financing | |||||
Net revenues | |||||
Net revenues | 103 | 115 | 304 | 360 | |
Other | |||||
Net revenues | |||||
Net revenues | $ 14 | $ 12 | $ 36 | $ 37 | |
[1] | Earnings/(loss) per share amounts are calculated using whole numbers. |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income/(Loss) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income/(loss) attributable to Travel + Leisure Co. shareholders | $ 101 | $ 40 | $ 201 | $ (258) |
Foreign currency translation adjustments, net of tax | (15) | 21 | (26) | (4) |
Other comprehensive (loss)/income, net of tax | (15) | 21 | (26) | (4) |
Comprehensive income/(loss) | $ 86 | $ 61 | $ 175 | $ (262) |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
Assets | ||
Cash and cash equivalents | $ 346 | $ 1,196 |
Restricted cash (VIE - $94 as of 2021 and $92 as of 2020) | 128 | 121 |
Trade receivables, net | 125 | 115 |
Vacation ownership contract receivables, net (VIE - $2,136 as of 2021 and $2,458 as of 2020) | 2,292 | 2,482 |
Inventory | 1,270 | 1,347 |
Prepaid expenses | 196 | 204 |
Property and equipment, net | 678 | 666 |
Goodwill | 962 | 964 |
Other intangibles, net | 222 | 131 |
Other assets | 382 | 387 |
Total assets | 6,601 | 7,613 |
Liabilities and (deficit) | ||
Accounts payable | 60 | 62 |
Accrued expenses and other liabilities | 953 | 929 |
Deferred income | 394 | 447 |
Non-recourse vacation ownership debt (VIE) | 1,957 | 2,234 |
Debt | 3,386 | 4,184 |
Deferred income taxes | 700 | 725 |
Total liabilities | 7,450 | 8,581 |
Commitments and contingencies (Note 16) | ||
Stockholders' (deficit): | ||
Preferred stock, $0.01 par value, authorized 6,000,000 shares, none issued and outstanding | 0 | 0 |
Common stock, $0.01 par value, 600,000,000 shares authorized, 222,180,902 issued as of 2021 and 221,755,960 as of 2020 | 2 | 2 |
Treasury stock, at cost – 135,824,676 shares as of 2021 and 2020 | (6,508) | (6,508) |
Additional paid-in capital | 4,180 | 4,157 |
Retained earnings | 1,511 | 1,390 |
Accumulated other comprehensive loss | (42) | (16) |
Total stockholders’ (deficit) | (857) | (975) |
Noncontrolling interest | 8 | 7 |
Total (deficit) | (849) | (968) |
Total liabilities and (deficit) | $ 6,601 | $ 7,613 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 6,000,000 | 6,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred Stock, Shares Outstanding | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 600,000,000 | 600,000,000 |
Common Stock, Shares, Issued (in shares) | 222,180,902 | 221,755,960 |
Treasury stock, shares (in shares) | 135,824,676 | 135,824,676 |
Restricted cash (VIE - $94 as of 2021 and $92 as of 2020) | $ 128 | $ 121 |
Vacation ownership contract receivables, net (VIE - $2,136 as of 2021 and $2,458 as of 2020) | 2,292 | 2,482 |
Non-recourse vacation ownership debt (VIE) | 1,957 | 2,234 |
Variable Interest Entity, Primary Beneficiary [Member] | ||
Restricted cash (VIE - $94 as of 2021 and $92 as of 2020) | 94 | 92 |
Vacation ownership contract receivables, net (VIE - $2,136 as of 2021 and $2,458 as of 2020) | 2,136 | 2,458 |
Non-recourse vacation ownership debt (VIE) | $ 1,957 | $ 2,234 |
Statement of Cash Flows (Statem
Statement of Cash Flows (Statement) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Operating activities | ||
Net income/(loss) | $ 201 | $ (258) |
Loss on disposal of discontinued business, net of income taxes | 2 | 0 |
Adjustments to reconcile net income/(loss) to net cash provided by operating activities: | ||
Depreciation and amortization | 93 | 94 |
Provision for loan losses | 120 | 391 |
Deferred income taxes | (27) | (134) |
Stock-based compensation | 24 | 14 |
Asset impairments | 0 | 50 |
Other Noncash Expense | 13 | 19 |
Non-cash interest | 17 | 16 |
Other, net | 5 | (2) |
Net change in assets and liabilities, excluding the impact of acquisitions and dispositions: | ||
Trade receivables | (9) | 24 |
Vacation ownership contract receivables | 60 | 205 |
Inventory | (14) | (107) |
Deferred income | (58) | (60) |
Accounts payable, accrued expenses, prepaid expenses, other assets and other liabilities | 8 | (28) |
Net cash provided by operating activities | 435 | 224 |
Investing activities | ||
Property and equipment additions | (40) | (56) |
Acquisitions | (37) | 0 |
Purchase of investments | 0 | (50) |
Other, net | 0 | 8 |
Net cash used in investing activities | (77) | (98) |
Financing activities | ||
Proceeds from non-recourse vacation ownership debt | 930 | 1,462 |
Principal payments on non-recourse vacation ownership debt | (1,202) | (1,556) |
Proceeds from debt | 10 | 1,065 |
Principal payments on debt | (561) | (521) |
Proceeds from notes issued | 0 | 643 |
Repayment of notes | (252) | (42) |
Repayments of vacation ownership inventory arrangement | 0 | (10) |
Payment of deferred acquisition consideration | (30) | (11) |
Dividends to shareholders | (79) | (112) |
Proceeds from issuance of common stock | 7 | 4 |
Repurchase of common stock | 0 | (128) |
Debt issuance/modification costs | (9) | (17) |
Net share settlement of incentive equity awards | (9) | (2) |
Net cash (used in)/provided by financing activities | (1,195) | 775 |
Effect of changes in exchange rates on cash, cash equivalents and restricted cash | (6) | (5) |
Net change in cash, cash equivalents and restricted cash | (843) | 896 |
Cash, cash equivalents and restricted cash, beginning of period | 1,317 | 502 |
Cash, cash equivalents and restricted cash, end of period | 474 | 1,398 |
Less: Restricted cash | 128 | 122 |
Cash and cash equivalents | $ 346 | $ 1,276 |
Statement of Shareholders' Equi
Statement of Shareholders' Equity (Statement) - USD ($) shares in Millions, $ in Millions | Total | Common Stock | Treasury Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Non-controlling Interest |
Shares, Issued, Beginning Balance at Dec. 31, 2019 | 88 | ||||||
Stock Repurchased During Period, Shares | (3) | ||||||
Shares, Issued, Ending Balance at Mar. 31, 2020 | 85 | ||||||
Beginning Balance, value at Dec. 31, 2019 | $ (524) | $ 2 | $ (6,383) | $ 4,118 | $ 1,785 | $ (52) | $ 6 |
Net income/(loss) attributable to Travel + Leisure Co. shareholders | (134) | (134) | |||||
Other comprehensive (loss)/income, net of tax | (65) | (65) | |||||
Change in stock-based compensation | 1 | 1 | |||||
Stock Repurchased During Period, Value | (125) | (125) | |||||
Dividends, Common Stock | $ (44) | (44) | |||||
Common Stock, Dividends, Per Share, Cash Paid | $ 0.50 | ||||||
Ending Balance, value at Mar. 31, 2020 | $ (891) | $ 2 | (6,508) | 4,119 | 1,607 | (117) | 6 |
Shares, Issued, Beginning Balance at Dec. 31, 2019 | 88 | ||||||
Shares, Issued, Ending Balance at Sep. 30, 2020 | 86 | ||||||
Beginning Balance, value at Dec. 31, 2019 | (524) | $ 2 | (6,383) | 4,118 | 1,785 | (52) | 6 |
Net income/(loss) attributable to Travel + Leisure Co. shareholders | (258) | ||||||
Other comprehensive (loss)/income, net of tax | (4) | ||||||
Ending Balance, value at Sep. 30, 2020 | (993) | $ 2 | (6,508) | 4,148 | 1,414 | (56) | 7 |
Shares, Issued, Beginning Balance at Mar. 31, 2020 | 85 | ||||||
Shares, Issued, Ending Balance at Jun. 30, 2020 | 85 | ||||||
Beginning Balance, value at Mar. 31, 2020 | (891) | $ 2 | (6,508) | 4,119 | 1,607 | (117) | 6 |
Net income/(loss) attributable to Travel + Leisure Co. shareholders | (164) | (164) | |||||
Other comprehensive (loss)/income, net of tax | 40 | 40 | |||||
Net share settlement of stock-based compensation | (2) | (2) | |||||
Employee stock purchase program issuances | 4 | 4 | |||||
Change in stock-based compensation | 7 | 7 | |||||
Dividends, Common Stock | $ (44) | (44) | |||||
Common Stock, Dividends, Per Share, Cash Paid | $ 0.50 | ||||||
Ending Balance, value at Jun. 30, 2020 | $ (1,050) | $ 2 | (6,508) | 4,128 | 1,399 | (77) | 6 |
Issuance of shares | 0 | 1 | |||||
Shares, Issued, Ending Balance at Sep. 30, 2020 | 86 | ||||||
Net income/(loss) attributable to Travel + Leisure Co. shareholders | $ 40 | 40 | |||||
Other comprehensive (loss)/income, net of tax | 21 | 21 | |||||
Change in stock-based compensation | 6 | 6 | |||||
Dividends, Common Stock | $ (26) | (26) | |||||
Common Stock, Dividends, Per Share, Cash Paid | $ 0.30 | ||||||
Acquisition of a business | $ 14 | 14 | |||||
Non-controlling interest ownership change | 1 | 1 | |||||
Stockholders' Equity, Other | 1 | 1 | |||||
Ending Balance, value at Sep. 30, 2020 | (993) | $ 2 | (6,508) | 4,148 | 1,414 | (56) | 7 |
Shares, Issued, Beginning Balance at Dec. 31, 2020 | 86 | ||||||
Shares, Issued, Ending Balance at Mar. 31, 2021 | 86 | ||||||
Beginning Balance, value at Dec. 31, 2020 | (968) | $ 2 | (6,508) | 4,157 | 1,390 | (16) | 7 |
Net income/(loss) attributable to Travel + Leisure Co. shareholders | 29 | 29 | |||||
Other comprehensive (loss)/income, net of tax | (13) | (13) | |||||
Stock option exercises | 3 | 3 | |||||
Net share settlement of stock-based compensation | (7) | (7) | |||||
Change in stock-based compensation | 7 | 7 | |||||
Dividends, Common Stock | $ (27) | (27) | |||||
Common Stock, Dividends, Per Share, Cash Paid | $ 0.30 | ||||||
Ending Balance, value at Mar. 31, 2021 | $ (976) | $ 2 | (6,508) | 4,160 | 1,392 | (29) | 7 |
Shares, Issued, Beginning Balance at Dec. 31, 2020 | 86 | ||||||
Shares, Issued, Ending Balance at Sep. 30, 2021 | 86 | ||||||
Beginning Balance, value at Dec. 31, 2020 | (968) | $ 2 | (6,508) | 4,157 | 1,390 | (16) | 7 |
Net income/(loss) attributable to Travel + Leisure Co. shareholders | 201 | ||||||
Other comprehensive (loss)/income, net of tax | (26) | ||||||
Ending Balance, value at Sep. 30, 2021 | (849) | $ 2 | (6,508) | 4,180 | 1,511 | (42) | 8 |
Shares, Issued, Beginning Balance at Mar. 31, 2021 | 86 | ||||||
Shares, Issued, Ending Balance at Jun. 30, 2021 | 86 | ||||||
Beginning Balance, value at Mar. 31, 2021 | (976) | $ 2 | (6,508) | 4,160 | 1,392 | (29) | 7 |
Net income/(loss) attributable to Travel + Leisure Co. shareholders | 72 | 72 | |||||
Other comprehensive (loss)/income, net of tax | 2 | 2 | |||||
Stock option exercises | 1 | 1 | |||||
Net share settlement of stock-based compensation | (2) | (2) | |||||
Employee stock purchase program issuances | 3 | 3 | |||||
Change in stock-based compensation | 9 | 9 | |||||
Dividends, Common Stock | $ (27) | (27) | |||||
Common Stock, Dividends, Per Share, Cash Paid | $ 0.30 | ||||||
Ending Balance, value at Jun. 30, 2021 | $ (918) | $ 2 | (6,508) | 4,171 | 1,437 | (27) | 7 |
Shares, Issued, Ending Balance at Sep. 30, 2021 | 86 | ||||||
Net income/(loss) attributable to Travel + Leisure Co. shareholders | 101 | 101 | |||||
Other comprehensive (loss)/income, net of tax | (15) | (15) | |||||
Change in stock-based compensation | 8 | 8 | |||||
Dividends, Common Stock | $ (27) | (27) | |||||
Common Stock, Dividends, Per Share, Cash Paid | $ 0.30 | ||||||
Non-controlling interest ownership change | $ 1 | 1 | |||||
Stockholders' Equity, Other | 1 | 1 | |||||
Ending Balance, value at Sep. 30, 2021 | $ (849) | $ 2 | $ (6,508) | $ 4,180 | $ 1,511 | $ (42) | $ 8 |
Background and Basis of Present
Background and Basis of Presentation | 9 Months Ended |
Sep. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization, Consolidation and Presentation of Financial Statements Disclosure | Background and Basis of Presentation Background On January 5, 2021, Wyndham Destinations, Inc. acquired the Travel + Leisure brand and related assets from Meredith Corporation. The aggregate purchase price was $100 million, of which $35 million was paid at closing with an additional $20 million paid during the second quarter of 2021. The remaining payments are to be completed by June 2024. In connection with this acquisition, Wyndham Destinations, Inc. changed its name to Travel + Leisure Co. and its ticker symbol to TNL on February 17, 2021. Travel + Leisure Co. and its subsidiaries (collectively, “Travel + Leisure Co.,” or the “Company,” formerly Wyndham Destinations, Inc.) is a global provider of hospitality services and travel products. The Company has two reportable segments: Vacation Ownership (formerly Wyndham Vacation Clubs) and Travel and Membership (formerly Panorama or Vacation Exchange). In connection with the Travel + Leisure brand acquisition the Company updated the names and composition of its reportable segments to better align with how the segments are managed. The Vacation Ownership segment develops, markets and sells vacation ownership interests (“VOIs”) to individual consumers, provides consumer financing in connection with the sale of VOIs, and provides property management services at resorts. This segment is wholly comprised of the Wyndham Destinations business line, formerly Wyndham Vacation Clubs. The following brands operate under the Wyndham Destinations business line: Club Wyndham, WorldMark by Wyndham, Shell Vacations Club, Margaritaville Vacation Club by Wyndham, and Presidential Reserve by Wyndham. The Travel and Membership segment operates a variety of travel businesses, including three vacation exchange brands, a home exchange network, travel technology platforms, travel memberships, and direct-to-consumer rentals. This segment is comprised of the Panorama and new Travel + Leisure Group business lines. With the formation of Travel + Leisure Group, the Company decided that the operations of its Extra Holidays business, which focuses on direct to consumer bookings, better aligns with the operations of this new business line and therefore transitioned the management of the Extra Holidays business to the Travel and Membership segment. As such, the Company reclassified the results of its Extra Holidays business, which was previously reported within the Vacation Ownership segment, into the Travel and Membership segment. Prior period segment information has been restated to reflect this change. The following brands operate under the Panorama business line: RCI, Panorama Travel Solutions, Alliance Reservations Network (“ARN”), 7Across, The Registry Collection, and Love Home Swap. The Travel + Leisure Group operates go.travelandleisure.com, Travel + Leisure Travel Clubs, and Extra Holidays brands. Impact of COVID-19 The results of operations for the three and nine months ended September 30, 2021 and 2020 include impacts related to the novel coronavirus global pandemic (“COVID-19”), which have been significantly negative for the travel industry, the Company, its customers, and employees. In response to COVID-19, the Vacation Ownership segment temporarily closed its resorts in mid-March 2020 across the globe and suspended its sales and marketing operations. In the Travel and Membership segment, affiliate resort closures and regional travel restrictions contributed to decreased bookings and increased cancellations. As a result, the Company significantly reduced its workforce and furloughed thousands of associates in the second quarter of 2020. As of September 30, 2021, the Company has reopened all of the resorts and sales offices in North America that it expects to reopen. The remaining closed resorts and sales offices that the Company intends to reopen are located in the South Pacific and are expected to reopen in 2021, contingent upon the lifting of government imposed travel restrictions. As a result of these reopenings the majority of the Company’s furloughed employees have returned to work. As a precautionary measure to enhance liquidity, in the first quarter of 2020 the Company drew down its $1.0 billion revolving credit facility and suspended its share repurchase activity, and in the third quarter of 2020 amended the credit agreement governing its revolving credit facility and term loan B, which provided flexibility during the relief period spanning from July 15, 2020 through April 1, 2022, or upon earlier termination by the Company. The Company has since repaid its $1.0 billion revolving credit facility. See Note 10— Debt for additional details. On October 22, 2021, the Company renewed the credit agreement governing its $1.0 billion revolving credit facility and term loan B. This renewal updated the terms and maturity date of the revolving credit facility, extending the maturity date to October 2026. In addition, this renewal terminated the relief period and restrictions regarding share repurchases, dividends, and acquisitions established by the 2020 amendment. See Note 25— Subsequent Events for additional details. Given these significant COVID-19 related events, the Company’s revenues were negatively impacted and while revenues are continuing to recover, not all product and service lines have yet reached pre-pandemic levels. The Company reversed $12 million and $28 million of COVID-19 charges during the three and nine months ended September 30, 2021, compared to $31 million and $377 million of charges incurred for the same periods last year. The $12 million and $28 million of net reversals during the three and nine months ended September 30, 2021 were primarily due to $21 million and $47 million of releases of the COVID-19 related allowance for loan losses, as the Company has continued to experience improvements in net new defaults. In connection with this allowance release, the Company recorded $8 million and $17 million of costs of vacation ownership interests during the three and nine months ended September 30, 2021 representing the associated reduction in estimated recoveries. Refer to Note 20— COVID-19 Related Items for additional details. Basis of Presentation The accompanying unaudited Condensed Consolidated Financial Statements in this Quarterly Report on Form 10-Q include the accounts and transactions of Travel + Leisure Co., as well as the entities in which Travel + Leisure Co. directly or indirectly has a controlling financial interest. The accompanying Condensed Consolidated Financial Statements have been prepared in accordance with Generally Accepted Accounting Principles in the U.S. (“GAAP”). All intercompany balances and transactions have been eliminated in the Condensed Consolidated Financial Statements. In addition, prior period segment results have been restated to reflect the aforementioned reclassification of the Extra Holidays business into the Travel and Membership segment. The Company presents an unclassified balance sheet which conforms to that of the Company’s peers and industry practice. In presenting the Condensed Consolidated Financial Statements, management makes estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosures. Estimates, by their nature, are based on judgment and available information. Accordingly, actual results could differ from those estimates and assumptions. In management’s opinion, the Condensed 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 Condensed Consolidated Financial Statements should be read in conjunction with the Company’s 2020 Consolidated Financial Statements included in its Annual Report on Form 10-K filed with the Securities and Exchange Commission on February 24, 2021. |
New Accounting Pronouncements
New Accounting Pronouncements | 9 Months Ended |
Sep. 30, 2021 | |
Accounting Changes and Error Corrections [Abstract] | |
New Accounting Pronouncements | New Accounting Pronouncements Recently Issued Accounting Pronouncements Reference Rate Reform. In March 2020, the Financial Accounting Standards Board (“FASB”) issued guidance, amended in January 2021, which provides optional expedients and exceptions for applying GAAP to contract modifications and hedging relationships, subject to meeting certain criteria that reference the London Interbank Offered Rate (“LIBOR”) or another reference rate expected to be discontinued. This guidance became effective on March 12, 2020, and will apply through December 31, 2022. The transition from LIBOR based benchmark is expected to begin January 1, 2022 and to be completed when U.S. Dollar (“USD”) LIBOR rates are phased out by June 30, 2023. The Company is currently evaluating the impact of the transition from LIBOR on its financial statements and related disclosures and the related impact of this guidance on the transition. The Company adopted appropriate LIBOR replacement rate transition language into the agreements for the renewal of its USD bank conduit facility in 2020 and the renewal of the credit agreement governing the revolving credit facility and term loan B which closed on October 22, 2021. These agreements represented the Company’s largest exposure to LIBOR. The Company intends to include such language in its other relevant agreements prior to the end of 2021. See Note 25— Subsequent Events for additional details. Recently Adopted Accounting Pronouncements Simplifying the Accounting for Income Taxes. In December 2019, the FASB issued guidance to simplify the accounting for income taxes and clarify the financial statement presentation for tax benefits related to tax deductible dividends. This guidance became effective for fiscal years beginning after December 15, 2020, including interim periods within those fiscal years. The adoption of this guidance did not have a material impact on the Company’s Condensed Consolidated Financial Statements and related disclosures. |
Revenue Recognition
Revenue Recognition | 9 Months Ended |
Sep. 30, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | Revenue Recognition Vacation Ownership The Company 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. The Company’s sales of VOIs are either cash sales or developer-financed sales. Developer-financed sales are typically collateralized by the underlying VOI. Revenue is recognized on VOI sales upon transfer of control, which is defined as the point in time when a binding sales contract has been executed, the financing contract has been executed for the remaining transaction price, the statutory rescission period has expired, and the transaction price has been deemed to be collectible. For developer-financed sales, the Company reduces the VOI sales transaction price by an estimate of uncollectible consideration at the time of the sale. The Company’s estimates of uncollectible amounts are based largely on the results of the Company’s static pool analysis which relies on historical payment data by customer class. In connection with entering into a VOI sale, the Company may provide its customers with certain non-cash incentives, such as credits for future stays at its resorts. For those VOI sales, the Company bifurcates the sale and allocates the sales price between the VOI sale and the non-cash incentive. Non-cash incentives generally have expiration periods of 18 months or less and are recognized at a point in time upon transfer of control. The Company provides day-to-day property management services including oversight of housekeeping services, maintenance, and certain accounting and administrative services for property owners’ associations and clubs. These services may also include reservation and resort renovation activities. Such agreements are generally for terms of one year or less, and are renewed automatically on an annual basis. The Company’s management agreements contain cancellation clauses, which allow for either party to cancel the agreement, by either a majority board vote or a majority vote of non-developer interests. The Company receives fees for such property management services which are collected monthly in advance and are based upon total costs to operate such resorts (or as services are provided in the case of resort renovation activities). Fees for property management services typically approximate 10% of budgeted operating expenses. The Company is entitled to consideration for reimbursement of costs incurred on behalf of the property owners’ association in providing management services (“reimbursable revenue”). These reimbursable costs principally relate to the payroll costs for management of the associations, club and resort properties where the Company is the employer and are reflected as a component of Operating expenses on the Condensed Consolidated Statements of Income/(Loss). The Company reduces its management fees for amounts it has paid to the property owners’ association that reflect maintenance fees for VOIs for which it retains ownership, as the Company has concluded that such payments are consideration payable to a customer. Property management fee revenues are recognized when the services are performed and are recorded as a component of Service and membership fees on the Condensed Consolidated Statements of Income/(Loss). Property management revenues, which are comprised of management fee revenue and reimbursable revenue were (in millions) (a) : Three Months Ended Nine Months Ended September 30, September 30, 2021 2020 2021 2020 Management fee revenues $ 89 $ 83 $ 268 $ 249 Reimbursable revenues 82 63 221 189 Property management revenues $ 171 $ 146 $ 489 $ 438 (a) Reflects the impact of reclassifying the Extra Holidays business line from the Vacation Ownership segment to Travel and Membership. One of the associations that the Company manages paid its Travel and Membership segment $9 million and $7 million for exchange services during the three months ended September 30, 2021 and 2020, and $23 million and $20 million during nine months ended September 30, 2021 and 2020. Travel and Membership As a provider of vacation exchange services, the Company enters into affiliation agreements with developers of vacation ownership properties to allow owners of VOIs to trade their intervals for intervals at other properties affiliated with the Company’s vacation exchange network and, for some members, for other leisure-related services and products. Travel and Membership derives a majority of revenues from membership dues and fees for facilitating members’ trading of their intervals. Revenues from membership dues represent the fees paid by members or affiliated clubs on their behalf. The Company recognizes revenues from membership dues paid by the member on a straight-line basis over the membership period as the performance obligations are fulfilled through delivery of publications, if applicable, and by providing access to travel-related products and services. Estimated net contract consideration payable by affiliated clubs for memberships is recognized as revenue over the term of the contract with the affiliated club in proportion to the estimated average monthly member count. Such estimates are adjusted periodically for changes in the actual and forecasted member activity. For additional fees, members have the right to exchange their intervals for intervals at other properties affiliated with the Company’s vacation exchange networks and, for certain members, for other leisure-related services and products. The Company also derives revenue from facilitating bookings of travel accommodations for both members and non-members. Revenue is recognized when these transactions have been confirmed, net of expected cancellations. The Company’s vacation exchange business also derives revenues from programs with affiliated resorts, club servicing, and loyalty programs; and additional exchange-related products that provide members with the ability to protect trading power or points, extend the life of deposits, and combine two or more deposits for the opportunity to exchange into intervals with higher trading power. Other vacation exchange related product fees are deferred and recognized as revenue upon the occurrence of a future exchange, event, or other related transaction. The Company also derives revenue from other travel products and services, enabled as a result of the 2019 acquisition of ARN and via the Company’s resort services solution business, optimizing business to business (“B2B”) capabilities, and integration for consumer travel planning. The Company’s relationships and buying power with major travel suppliers provide its partners with access to exclusive travel inventory. The Company’s affiliates and members have access to inventory from accommodation wholesalers, airfare, and rental car providers. The Company earns revenue from its RCI Elite Rewards co–branded credit card program, which is primarily generated by cardholder spending and the enrollment of new cardholders. The advance payments received under the program are recognized as a contract liability until the Company’s performance obligations have been satisfied. The primary performance obligation for the program relates to brand performance services. Total contract consideration is estimated and recognized on a straight-line basis over the contract term. Other Items The Company records property management services revenues for its Vacation Ownership segment and RCI Elite Rewards revenues for its Travel and Membership segment gross as a principal. Contract Liabilities Contract liabilities generally represent payments or consideration received in advance for goods or services that the Company has not yet transferred to the customer. Contract liabilities as of September 30, 2021 and December 31, 2020, were as follows (in millions): September 30, December 31, 2020 Deferred subscription revenue $ 170 $ 176 Deferred VOI trial package revenue 88 115 Deferred exchange-related revenue (a) 64 59 Deferred VOI incentive revenue 57 74 Deferred co-branded credit card programs revenue 13 16 Deferred other revenue 2 8 Total $ 394 $ 448 (a) Includes contractual liabilities to accommodate members for cancellations initiated by the Company due to unexpected events. These amounts are included within Accrued expenses and other liabilities on the Condensed Consolidated Balance Sheets. In the Company’s Vacation Ownership business, deferred VOI trial package revenue represents consideration received in advance for a trial VOI, which allows customers to utilize a vacation package typically within one year of purchase. Deferred VOI incentive revenue represents payments received in advance for additional travel-related services and products at the time of a VOI sale. Revenue is recognized when a customer utilizes the additional services and products, which is typically within one year of the VOI sale. Within the Company’s Travel and Membership business, deferred subscription revenue represents billings and payments received in advance from members and affiliated clubs for memberships in the Company’s travel programs which are recognized in future periods. Deferred revenue primarily represents payments received in advance from members for the right to access the Company’s vacation travel network to book vacation exchanges, rent travel accommodations, and for other leisure-related services and products revenue is recognized on a straight-line basis over the contract period which is generally within one year. Changes in contract liabilities for the nine months ended September 30, 2021 and 2020, follow (in millions): 2021 2020 Beginning balance $ 448 $ 539 Additions 199 180 Revenue recognized (253) (235) Ending balance $ 394 $ 484 Capitalized Contract Costs The Company’s Vacation Ownership segment incurs certain direct and incremental selling costs in connection with VOI trial package and incentive revenues. Such costs are capitalized and subsequently amortized over the utilization period, which is typically within one year of the sale. As of September 30, 2021 and December 31, 2020, these capitalized costs were $29 million and $41 million and are included within Other assets on the Condensed Consolidated Balance Sheets. The Company’s Travel and Membership segment incurs certain direct and incremental selling costs to obtain contracts with customers in connection with subscription revenues and exchange–related revenues. Such costs, which are primarily comprised of commissions paid to internal and external parties and credit card processing fees, are deferred at the inception of the contract and recognized when the benefit is transferred to the customer. As of September 30, 2021 and December 31, 2020, these capitalized costs were $17 million and $16 million; and are included within Other assets on the Condensed Consolidated Balance Sheets. Practical Expedients The Company has not adjusted the consideration for the effects of a significant financing component if it expected, at contract inception, that the period between when the Company satisfied the performance obligation and when the customer paid for that good or service was one year or less. Performance Obligations A performance obligation is a promise in a contract with a customer to transfer a distinct good or service to the customer. The consideration received from a customer is allocated to each distinct performance obligation and recognized as revenue when, or as, each performance obligation is satisfied. The following table summarizes the Company’s remaining performance obligations for the 12-month periods set forth below (in millions): 10/1/2021 - 9/30/2022 10/1/2022 - 9/30/2023 10/1/2023 - 9/30/2024 Thereafter Total Subscription revenue $ 100 $ 37 $ 17 $ 16 $ 170 VOI trial package revenue 88 — — — 88 Exchange-related revenue 60 3 1 — 64 VOI incentive revenue 57 — — — 57 Co-branded credit card programs revenue 3 3 3 4 13 Other revenue 2 — — — 2 Total $ 310 $ 43 $ 21 $ 20 $ 394 Disaggregation of Net Revenues The table below presents a disaggregation of the Company’s net revenues from contracts with customers by major services and products for each of the Company’s segments (in millions) (a) : Three Months Ended Nine Months Ended September 30, September 30, 2021 2020 2021 2020 Vacation Ownership Vacation ownership interest sales (b) $ 344 $ 196 $ 810 $ 273 Property management fees and reimbursable revenues 171 146 489 438 Consumer financing 103 115 304 360 Fee-for-Service commissions 28 6 69 10 Ancillary revenues 14 12 36 35 Total Vacation Ownership 660 475 1,708 1,116 Travel and Membership Transaction revenues 133 86 418 227 Subscription revenues 43 43 127 120 Ancillary revenues 9 16 28 64 Total Travel and Membership 185 145 573 411 Corporate and other Eliminations (6) (6) (17) (12) Total Corporate and other (6) (6) (17) (12) Net revenues $ 839 $ 614 $ 2,264 $ 1,515 (a) This table reflects the reclassification of Extra Holidays from the Vacation Ownership segment into the Travel and Membership segment for all periods presented. Extra Holidays revenue is included within Transaction revenues. (b) The Company recorded a COVID-19 related provision for loan losses of $225 million in the first quarter of 2020, due to an expected increase in defaults driven by higher unemployment associated with COVID-19, which is reflected as a reduction to Vacation ownership interest sales on the Condensed Consolidated Statements of Income/(Loss) during the nine months ended September 30, 2020. During 2021, the Company analyzed the adequacy of this COVID-19 related allowance consistent with past methodology, resulting in a $21 million and $47 million release which is reflected as an increase in Vacation ownership interest sales on the Condensed Consolidated Statements of Income/(Loss) during the three and nine months ended September 30, 2021. |
Earnings_(Loss) Per Share
Earnings/(Loss) Per Share | 9 Months Ended |
Sep. 30, 2021 | |
Earnings Per Share Reconciliation [Abstract] | |
Earnings Per Share | Earnings/(Loss) Per Share The computations of basic and diluted earnings/(loss) per share (“EPS”) are based on Net income/(loss) attributable to Travel + Leisure Co. shareholders divided by the basic weighted average number of common shares and diluted weighted average number of common shares outstanding. The following table sets forth the computations of basic and diluted EPS (in millions, except per share data): Three Months Ended Nine Months Ended September 30, September 30, 2021 2020 2021 2020 Net income/(loss) from continuing operations attributable to Travel + Leisure Co. shareholders $ 101 $ 40 $ 203 $ (258) Loss on disposal of discontinued business attributable to Travel + Leisure Co. shareholders, net of income taxes — — (2) — Net income/(loss) attributable to Travel + Leisure Co. shareholders $ 101 $ 40 $ 201 $ (258) Basic earnings/(loss) per share (a) Continuing operations $ 1.16 $ 0.47 $ 2.35 $ (3.00) Discontinued operations — — (0.02) — $ 1.16 $ 0.47 $ 2.33 $ (3.00) Diluted earnings/(loss) per share (a) Continuing operations $ 1.15 $ 0.47 $ 2.33 $ (3.00) Discontinued operations — — (0.03) — $ 1.15 $ 0.47 $ 2.30 $ (3.00) Basic weighted average shares outstanding 86.6 85.9 86.5 86.1 Stock-settled appreciation rights (“SSARs”), RSUs, (b) PSUs (c) and NQs (d) 0.8 0.2 0.8 — Diluted weighted average shares outstanding (e) 87.4 86.1 87.3 86.1 Dividends: Aggregate dividends paid to shareholders $ 26 $ 26 $ 79 $ 112 (a) Earnings/(loss) per share amounts are calculated using whole numbers. (b) Excludes 0.4 million and 0.3 million of anti-dilutive restricted stock units (“RSUs”) for the three and nine months ended September 30, 2021. Excludes 1.0 million and 1.1 million of anti-dilutive RSUs for the three and nine months ended September 30, 2020, of which 0.1 million would have been dilutive for the nine months ended September 30, 2020 had the Company not been in a net loss position during the period. These shares could potentially dilute EPS in the future. (c) Excludes performance-vested restricted stock units (“PSUs”) of 0.4 million for both the three and nine months ended September 30, 2021, as the Company had not met the required performance metrics. Excludes 0.3 million PSUs for both the three and nine months ended September 30, 2020, as the Company has not met the required performance metrics. These PSUs could potentially dilute EPS in the future. (d) Excludes 1.4 million of outstanding non-qualified stock option (“NQs”) awards that would have been anti-dilutive to EPS for both the three and nine months ended September 30, 2021. Excludes 2.3 million and 2.1 million of outstanding NQ awards that would have been anti-dilutive to EPS for the three and nine months ended September 30, 2020. These outstanding stock option awards could potentially dilute EPS in the future. (e) The dilutive impact of the Company’s potential common stock is computed utilizing the treasury stock method using average market prices during the period. Stock Repurchase Program The following table summarizes stock repurchase activity under the current stock repurchase program (in millions): Shares Cost As of December 31, 2020 111.3 $ 5,727 Repurchases — — As of September 30, 2021 111.3 $ 5,727 Proceeds received from stock option exercises increase the repurchase capacity under the program. Cash proceeds received from stock option exercises during the nine months ended September 30, 2021 were $4 million. As of September 30, 2021, the Company had $354 million of remaining availability under its program. In March 2020, the Company suspended its share repurchase activity due to the uncertainty resulting from COVID-19. On July 15, 2020, the Company amended the credit agreement for its revolving credit facility and term loan B. The amendment placed the Company into a relief period from July 15, 2020 through April 1, 2022 (“Relief Period”) that prohibited the use of cash for share repurchases during this period. On October 22, 2021, the Company renewed its credit agreement governing its revolving credit facility and term loan B, which terminated the Relief Period and eliminated the Relief Period restrictions regarding share repurchases and dividends. See Note 25— Subsequent Events for additional details. |
Acquisitions
Acquisitions | 9 Months Ended |
Sep. 30, 2021 | |
Business Combinations [Abstract] | |
Acquisitions | Acquisitions Travel + Leisure. On January 5, 2021, the Company acquired the Travel + Leisure brand from Meredith Corporation for $100 million, of which the Company paid $35 million at closing and an additional $20 million during the second quarter of 2021. The remaining payments are to be completed by June 2024. This transaction was accounted for as an asset acquisition, with the full consideration allocated to the related trademark indefinite-lived intangible asset. The Company acquired the Travel + Leisure brand to accelerate its strategic plan to broaden its reach with the launch of new travel services, expand its membership travel business, and amplify the global visibility of its leisure travel products. Alliance Reservations Network . On August 7, 2019, the Company acquired all of the equity of ARN. ARN provides private-label travel booking technology solutions. This acquisition was undertaken for the purpose of accelerating growth at Travel and Membership by increasing the offerings available to its members and affiliates. ARN was acquired for $102 million ($97 million net of cash acquired), subject to customary post-closing adjustments based on final valuation information and additional analysis. The fair value of purchase consideration was comprised of: (i) $70 million paid in cash, $11 million of which was paid during the third quarter of 2021; (ii) $24 million of Travel + Leisure Co. stock (721,450 shares at a weighted average price per share of $32.51); and (iii) $10 million of contingent consideration based on achieving certain financial and operational metrics. |
Discontinued Operations
Discontinued Operations | 9 Months Ended |
Sep. 30, 2021 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operations | Discontinued OperationsDuring 2018, the Company completed the spin-off of its hotel business (“Spin-off”) Wyndham Hotels & Resorts, Inc. (“Wyndham Hotels”) and the sale of its European vacation rentals business. As a result, the Company has classified the results of operations for these businesses as discontinued operations in its Condensed Consolidated Financial Statements and related notes. Discontinued operations include direct expenses clearly identifiable to the businesses being discontinued. The Company does not expect to incur significant ongoing expenses classified as discontinued operations except for certain tax adjustments that may be required as final tax returns are completed. The Company recognized a Loss on disposal of discontinued business, net of income taxes of $2 million during the nine months ended September 30, 2021. |
Vacation Ownership Contract Rec
Vacation Ownership Contract Receivables | 9 Months Ended |
Sep. 30, 2021 | |
Vacation Ownership Contract Receivables [Abstract] | |
Vacation Ownership Contract Receivables | Vacation Ownership Contract Receivables The Company generates vacation ownership contract receivables (“VOCRs”) by extending financing to the purchasers of its VOIs. Vacation ownership contract receivables, net consisted of (in millions): September 30, December 31, Vacation ownership contract receivables: Securitized (a) $ 2,136 $ 2,458 Non-securitized (b) 721 717 Vacation ownership contract receivables, gross 2,857 3,175 Less: Allowance for loan losses 565 693 Vacation ownership contract receivables, net $ 2,292 $ 2,482 (a) Excludes $17 million and $23 million of accrued interest on securitized VOCRs as of September 30, 2021 and December 31, 2020, which are included in Trade receivables, net on the Condensed Consolidated Balance Sheets. (b) Excludes $5 million and $9 million of accrued interest on non-securitized VOCRs as of September 30, 2021 and December 31, 2020, which are included in Trade receivables, net on the Condensed Consolidated Balance Sheets. During the three and nine months ended September 30, 2021, the Company’s securitized VOCRs generated interest income of $76 million and $232 million. During the three and nine months ended September 30, 2020, the Company’s securitized VOCRs generated interest income of $92 million and $303 million. Such interest income is included within Consumer financing revenue on the Condensed Consolidated Statements of Income/(Loss). During the nine months ended September 30, 2021 and 2020, the Company originated VOCRs of $544 million and $338 million, and received principal collections of $604 million and $543 million. The weighted average interest rate on outstanding VOCRs was 14.5% and 14.4% as of September 30, 2021 and December 31, 2020. The activity in the allowance for loan losses on VOCRs was as follows (in millions): Amount Allowance for loan losses as of December 31, 2020 $ 693 Provision for loan losses, net 120 Contract receivables write-offs, net (248) Allowance for loan losses as of September 30, 2021 $ 565 Amount Allowance for loan losses as of December 31, 2019 $ 747 Provision for loan losses, net 391 Contract receivables write-offs, net (350) Allowance for loan losses as of September 30, 2020 $ 788 Due to the economic downturn resulting from COVID-19 during the first quarter of 2020, the Company evaluated the potential impact of COVID-19 on its owners’ ability to repay their contract receivables and as a result of current and projected unemployment rates at that time, the Company recorded a COVID-19 related allowance for loan losses. This allowance consisted of a $225 million COVID-19 related provision, which was reflected as a reduction to Vacation ownership interest sales and $55 million of estimated recoveries, which were reflected as a reduction to Cost/(recovery) of vacation ownership interests on the Condensed Consolidated Statements of Income/(Loss). During 2021, the Company analyzed the adequacy of the COVID-19 related allowance consistent with past methodology, and due to improvement in net new defaults the Company reduced the allowance resulting in a $21 million and $47 million increase to Vacation ownership interest sales and a corresponding $8 million and $17 million increase to Cost/(recovery) of vacation ownership interests during the three and nine months ended September 30, 2021 on the Condensed Consolidated Statements of Income/(Loss). Estimating the amount of the COVID-19 related allowance involves the use of significant estimates and assumptions. Management based its estimates upon historical data on the relationship between unemployment rates and net new defaults observed during the most recent recession in 2008. Specifically, historical data indicated that net new defaults did not return to prior levels until 15-20 months after the peak in unemployment. As of September 30, 2021, given the significant amount of government assistance provided to consumers during the pandemic, the Company estimated default rates would remain elevated for approximately six months as these programs expire. The Company will continue to monitor this allowance as more information becomes available. The Company recorded net provisions for loan losses of $49 million and $120 million as a reduction of net revenues during the three and nine months ended September 30, 2021, and $45 million and $391 million for the three and nine months ended September 30, 2020, inclusive of the aforementioned COVID-19 related adjustments. 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 Fair Isaac Corporation (“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 to 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, from 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 Vacation Ownership Asia Pacific business for which scores are not readily available). The following table details an aging analysis of financing receivables using the most recently updated FICO scores, based on the policy described above (in millions): As of September 30, 2021 700+ 600-699 <600 No Score Asia Pacific Total Current $ 1,639 $ 756 $ 108 $ 75 $ 176 $ 2,754 31 - 60 days 16 20 10 2 1 49 61 - 90 days 8 11 6 1 1 27 91 - 120 days 8 9 9 1 — 27 Total (a) $ 1,671 $ 796 $ 133 $ 79 $ 178 $ 2,857 As of December 31, 2020 700+ 600-699 <600 No Score Asia Pacific Total Current $ 1,706 $ 835 $ 160 $ 96 $ 221 $ 3,018 31 - 60 days 20 25 13 4 2 64 61 - 90 days 13 18 12 3 1 47 91 - 120 days 12 16 14 3 1 46 Total (a) $ 1,751 $ 894 $ 199 $ 106 $ 225 $ 3,175 (a) Includes contracts under temporary deferment (up to 180 days). As of September 30, 2021 and December 31, 2020, contracts under deferment total $9 million and $37 million. The Company ceases to accrue interest on VOI contract receivables once the contract has remained delinquent for greater than 90 days and reverses all of the associated accrued interest recognized to date against interest income included within Consumer financing revenue on the Condensed Consolidated Statements of Income/(Loss). 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. The following table details the year of origination of financing receivables using the most recently updated FICO scores, based on the policy described above (in millions): As of September 30, 2021 700+ 600-699 <600 No Score Asia Pacific Total 2021 $ 406 $ 157 $ 5 $ 7 $ 29 $ 604 2020 259 125 19 6 42 451 2019 363 190 41 21 37 652 2018 257 129 29 15 26 456 2017 172 85 17 12 16 302 Prior 214 110 22 18 28 392 Total $ 1,671 $ 796 $ 133 $ 79 $ 178 $ 2,857 As of December 31, 2020 700+ 600-699 <600 No Score Asia Pacific Total 2020 $ 424 $ 173 $ 11 $ 17 $ 55 $ 680 2019 476 269 67 27 70 909 2018 339 183 50 21 36 629 2017 220 115 31 16 22 404 2016 128 63 16 10 16 233 Prior 164 91 24 15 26 320 Total $ 1,751 $ 894 $ 199 $ 106 $ 225 $ 3,175 |
Inventory
Inventory | 9 Months Ended |
Sep. 30, 2021 | |
Inventory Disclosure [Abstract] | |
Inventory | Inventory Inventory consisted of (in millions): September 30, December 31, Completed VOI inventory $ 1,021 $ 1,049 Estimated VOI recoveries, net 204 246 VOI construction in process 27 30 Inventory sold subject to repurchase 13 13 Vacation exchange credits and other 4 8 Land held for VOI development 1 1 Total inventory $ 1,270 $ 1,347 The Company had net transfers of VOI inventory to property and equipment of $56 million and $28 million during the nine months ended September 30, 2021 and 2020. During 2020, as a result of resort closures and cancellations surrounding COVID-19, the Company recorded $48 million of reductions to exchange inventory consisting of costs previously incurred by RCI to provide enhanced out-of-network travel options to members. These write-offs were included within Operating expenses on the Condensed Consolidated Statements of Income/(Loss), $38 million during the first quarter of 2020 and $10 million during the third quarter of 2020. The Company anticipates that remaining inventory will be fully utilized to maximize exchange supply for its members in 2021 and beyond. Inventory Sale Transactions During 2020, the Company acquired properties in Orlando, Florida, and Moab, Utah, from third-party developers for vacation ownership inventory and property and equipment. During 2013, the Company sold real property located in Las Vegas, Nevada, to a third-party developer, consisting of vacation ownership inventory and property and equipment. The Company recognized no gain or loss on this sale transaction. In accordance with the agreements with the third-party developers, the Company has conditional rights and conditional obligations to repurchase the completed properties from the developers subject to the properties conforming to the Company's vacation ownership resort standards and provided that the third-party developers have not sold the properties to another party. Under the sale of real estate accounting guidance, the conditional rights and obligations of the Company constitute continuing involvement and thus the Company was unable to account for these transactions as a sale. The following table summarizes the activity related to the Company’s inventory obligations (in millions): Las Vegas (a) Moab (a) Orlando (a) Other (b) Total December 31, 2020 $ 13 $ 31 $ 22 $ 17 $ 83 Purchases 2 25 1 55 83 Payments (2) (56) (5) (61) (124) September 30, 2021 $ 13 $ — $ 18 $ 11 $ 42 December 31, 2019 $ 43 $ — $ — $ 6 $ 49 Purchases 15 37 44 87 183 Payments (39) — (22) (83) (144) September 30, 2020 $ 19 $ 37 $ 22 $ 10 $ 88 (a) Included in Accrued expenses and other liabilities on the Condensed Consolidated Balance Sheets. (b) Included in Accounts payable on the Condensed Consolidated Balance Sheets. The Company has committed to repurchase the completed property located 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 may be required to make under this commitment was $65 million as of September 30, 2021. |
Property and equipment
Property and equipment | 9 Months Ended |
Sep. 30, 2021 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment Disclosure [Text Block] | Property and Equipment Property and equipment, net, consisted of (in millions): September 30, December 31, 2020 Capitalized software $ 714 $ 694 Building and leasehold improvements 636 591 Furniture, fixtures and equipment 207 207 Land 30 30 Construction in progress 18 12 Finance leases 17 14 Total property and equipment 1,622 1,548 Less: Accumulated depreciation and amortization 944 882 Property and equipment, net $ 678 $ 666 |
Debt
Debt | 9 Months Ended |
Sep. 30, 2021 | |
Debt Disclosure [Abstract] | |
Debt | Debt The Company’s indebtedness consisted of (in millions): September 30, December 31, Non-recourse vacation ownership debt : (a) Term notes (b) $ 1,505 $ 1,893 USD bank conduit facility (due October 2022) (c) 314 168 AUD/NZD bank conduit facility (due April 2023) (d) 138 173 Total $ 1,957 $ 2,234 Debt : (e) $1.0 billion secured revolving credit facility (due May 2023) (f) $ — $ 547 $300 million secured term loan B (due May 2025) (g) 289 291 $250 million 5.625% secured notes (due March 2021) — 250 $650 million 4.25% secured notes (due March 2022) (h) 650 650 $400 million 3.90% secured notes (due March 2023) (i) 402 402 $300 million 5.65% secured notes (due April 2024) 299 299 $350 million 6.60% secured notes (due October 2025) (j) 345 344 $650 million 6.625% secured notes (due July 2026) 642 641 $400 million 6.00% secured notes (due April 2027) (k) 407 408 $350 million 4.625% secured notes (due March 2030) 345 345 Finance leases 7 7 Total $ 3,386 $ 4,184 (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 (which legally are not liabilities of the Company) are collateralized by $2.25 billion and $2.57 billion of underlying gross VOCRs and related assets (which legally are not assets of the Company) as of September 30, 2021 and December 31, 2020. (b) The carrying amounts of the term notes are net of deferred financing costs of $16 million and $21 million as of September 30, 2021 and December 31, 2020. (c) The Company has a borrowing capacity of $800 million under the USD bank conduit facility through October 2022. Borrowings under this facility are required to be repaid as the collateralized receivables amortize but no later than November 2023. (d) The Company has a borrowing capacity of 250 million Australian dollars (“AUD”) and 48 million New Zealand dollars (“NZD”) under the AUD/NZD bank conduit facility through April 2023. Borrowings under this facility are required to be repaid no later than May 2025. (e) The carrying amounts of the secured notes and term loan are net of unamortized discounts of $14 million and $16 million as of September 30, 2021 and December 31, 2020, and net of unamortized debt financing costs of $6 million and $7 million as of September 30, 2021 and December 31, 2020. (f) The weighted average effective interest rate on borrowings from this facility were 3.19% and 3.02% as of September 30, 2021 and December 31, 2020. In late March 2020, the Company drew down its $1.0 billion secured revolving credit facility as a precautionary measure due to COVID-19. As of September 30, 2021, these borrowings have been repaid. On October 22, 2021, the Company renewed this facility, extending the commitment period through October 2026. See Note 25— Subsequent Events for additional details. (g) The weighted average effective interest rate on borrowings from this facility was 2.39% and 2.93% as of September 30, 2021 and December 31, 2020. (h) Includes less than $1 million of unamortized gains from the settlement of a derivative as of September 30, 2021 and December 31, 2020. (i) Includes $2 million and $3 million of unamortized gains from the settlement of a derivative as of September 30, 2021 and December 31, 2020. (j) Includes $4 million and $5 million of unamortized losses from the settlement of a derivative as of September 30, 2021 and December 31, 2020. (k) Includes $10 million and $11 million of unamortized gains from the settlement of a derivative as of September 30, 2021 and December 31, 2020. Sierra Timeshare 2021-1 Receivables Funding LLC On March 8, 2021, the Company closed on a placement of a series of term notes payable, issued by Sierra Timeshare 2021-1 Receivables Fundings LLC, with an initial principal amount of $500 million, secured by VOCRs and bearing interest at a weighted average coupon rate of 1.57%. The advance rate for this transaction was 98%. AUD/NZD Bank Conduit Renewal On April 27, 2021, the Company renewed its AUD/NZD timeshare receivables conduit facility, extending the end of the commitment period from September 2021 to April 2023. The renewal includes a reduction of the AUD borrowing capacity from A$255 million to A$250 million, while the NZD capacity remains unchanged at NZ$48 million. The renewal bears interest at variable rates based on the Bank Bill Swap Bid Rate plus 1.65%. Maturities and Capacity The Company’s outstanding debt as of September 30, 2021, matures as follows (in millions): Non-recourse Vacation Ownership Debt Debt Total Within 1 year $ 292 $ 656 $ 948 Between 1 and 2 years 484 407 891 Between 2 and 3 years 191 303 494 Between 3 and 4 years 192 280 472 Between 4 and 5 years 208 987 1,195 Thereafter 590 753 1,343 $ 1,957 $ 3,386 $ 5,343 Required principal payments on the non-recourse vacation ownership debt are based on the contractual repayment terms of the underlying VOCRs. Actual maturities may differ as a result of prepayments by the VOCR obligors. As of September 30, 2021, available capacity under the Company’s borrowing arrangements was as follows (in millions): Non-recourse Conduit Facilities (a) Revolving Credit Facilities (b) Total capacity $ 1,017 $ 1,000 Less: Outstanding borrowings 452 — Less: Letters of credit — 51 Available capacity $ 565 $ 949 (a) Consists of the Company’s USD bank conduit facility and AUD/NZD bank conduit facility. The capacity of these facilities is subject to the Company’s ability to provide additional assets to collateralize additional non-recourse borrowings. (b) Consists of the Company’s $1.0 billion secured revolving credit facility. Debt Covenants The revolving credit facilities and term loan B are subject to covenants including the maintenance of specific financial ratios as defined in the credit agreement. The financial ratio covenants consist of a minimum interest coverage ratio of at least 2.5 to 1.0 as of the measurement date and a maximum first lien leverage ratio not to exceed 4.25 to 1.0 as of the measurement date. The interest coverage ratio is calculated by dividing consolidated EBITDA (as defined in the credit agreement) by consolidated interest expense (as defined in the credit agreement), both as measured on a trailing 12-month basis preceding the measurement date. The first lien leverage ratio is calculated by dividing consolidated first lien debt (as defined in the credit agreement) as of the measurement date by consolidated EBITDA (as defined in the credit agreement) as measured on a trailing 12-month basis preceding the measurement date. On July 15, 2020, the Company entered into an amendment to the Company’s credit agreement governing its revolving credit facility and term loan B (“Credit Agreement Amendment”). The Credit Agreement Amendment established a Relief Period with respect to the Company’s secured revolving credit facility, which commenced on July 15, 2020 and was scheduled to end on April 1, 2022. The Credit Agreement Amendment increased the existing leverage-based financial covenant of 4.25 to 1.0 by varying levels for each applicable quarter during the Relief Period. The maximum first lien leverage ratio for the test period ending September 30, 2021 was 6.75 to 1.0. Beginning in the first quarter of 2021, and extending through the third quarter of 2021, the Credit Agreement Amendment provided that consolidated EBITDA (as defined in the credit agreement), for the purposes of the first lien leverage ratio, was to be measured based on the greater of either a trailing 12-months preceding the measurement date basis or an annualized basis. In addition, the Credit Agreement Amendment, among other changes, increased the interest rate applicable to borrowings under the Company’s secured revolving credit facility utilizing a tiered pricing grid based on the Company’s first lien leverage ratio in any quarter it exceeds 4.25 to 1.0, until the end of the Relief Period; added a new minimum liquidity covenant, tested quarterly until the end of the Relief Period, of (i) $250 million plus (ii) 50% of the aggregate amount of dividends paid after the effective date of the Credit Agreement Amendment and on or prior to the last day of the relevant fiscal quarter; and required the Company to maintain an interest coverage ratio (as defined in the credit agreement) of not less than 2.0 to 1.0. Finally, the Credit Agreement Amendment amended the definition of “Material Adverse Effect” in the credit agreement to take into consideration the impacts of the COVID-19 pandemic during the Relief Period. The Relief Period included certain restrictions on the use of cash including the prohibition of share repurchases. Additionally, the amendment limited the payout of dividends during the Relief Period to not exceed $0.50 per share, the rate in effect prior to the amendment. As of September 30, 2021, the Company’s interest coverage ratio was 3.6 to 1.0 and the first lien leverage ratio was 4.2 to 1.0. These ratios do not include interest expense or indebtedness related to any qualified securitization financing (as defined in the credit agreement). As of September 30, 2021, the Company was in compliance with the financial covenants described above. Under the Credit Agreement Amendment, when the first lien leverage ratio exceeds 4.25 to 1.0, the interest rate on revolver borrowings increases, and the Company is subject to higher fees associated with its letters of credit, both of which are based on a tiered pricing grid. Given the first lien leverage ratio of 5.4 to 1.0 at December 31, 2020, the Company became subject to higher fees associated with letters of credit and the interest rate on the revolver borrowings increased 25 basis points effective March 2, 2021. On October 22, 2021, the Company renewed the credit agreement governing its revolving credit facility and term loan B. This renewal terminated the Relief Period and reestablished the tiered pricing grid that was in place prior to the Credit Agreement Amendment. The interest rate on revolver borrowings and fees associated with letters of credit are subject to future changes based on the Company’s first lien leverage ratio which could serve to further reduce the interest rate if the ratio were to decrease to 3.75 to 1.0 or below. Additionally, the renewal eliminated restrictions regarding share repurchases, dividends, acquisitions, and the Relief Period minimum liquidity covenant. See Note 25— Subsequent Events for additional details. Each of the Company’s non-recourse, securitized term notes, and the bank conduit facilities contain various triggers relating to the performance of the applicable loan pools. If the VOCRs pool that collateralizes one of the Company’s securitization notes fails to perform within the parameters established by the contractual triggers (such as higher default or delinquency rates), there are provisions pursuant to which the cash flows for that pool will be maintained in the securitization as extra collateral for the note holders or applied to accelerate the repayment of outstanding principal to the note holders. As of September 30, 2021, all of the Company’s securitized loan pools were in compliance with applicable contractual triggers. Interest Expense The Company incurred interest expense of $47 million and $147 million during the three and nine months ended September 30, 2021. Such amounts consisted primarily of interest on debt, excluding non-recourse vacation ownership debt, and included an offset of less than $1 million of capitalized interest during both the three and nine months ended September 30, 2021. Cash paid related to such interest was $160 million during the nine months ended September 30, 2021. The Company incurred interest expense of $52 million and $138 million during the three and nine months ended September 30, 2020. Such amounts consisted primarily of interest on debt, excluding non-recourse vacation ownership debt, and included an offset of less than $1 million and $1 million of capitalized interest during the three and nine months ended September 30, 2020. Cash paid related to such interest was $126 million during the nine months ended September 30, 2020. Interest expense incurred in connection with the Company’s non-recourse vacation ownership debt was $19 million and $63 million during the three and nine months ended September 30, 2021, and $26 million and $76 million during the three and nine months ended September 30, 2020, and is recorded within Consumer financing interest on the Condensed Consolidated Statements of Income/(Loss). Cash paid related to such interest was $44 million and $56 million for the nine months ended September 30, 2021 and 2020. |
Variable Interest Entities
Variable Interest Entities | 9 Months Ended |
Sep. 30, 2021 | |
Variable Interest Entity, Primary Beneficiary, Does Not Hold Majority Voting Interest, Disclosures [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 VOCRs and sells them to bankruptcy-remote entities. VOCRs qualify for securitization based primarily on the credit strength of the VOI purchaser to whom financing has been extended. VOCRs are securitized through bankruptcy-remote SPEs that are consolidated within the Company’s Condensed 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 VOCRs. The Company services the securitized VOCRs pursuant to servicing agreements negotiated on an arm’s-length basis based on market conditions. The activities of these SPEs are limited to (i) purchasing VOCRs 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 non-recourse debt that is securitized through the SPEs is legally not a liability of the Company and thus, the creditors of these SPEs have no recourse against the Company for principal and interest. The assets and liabilities of these vacation ownership SPEs are as follows (in millions): September 30, December 31, Securitized contract receivables, gross (a) $ 2,136 $ 2,458 Securitized restricted cash (b) 94 92 Interest receivables on securitized contract receivables (c) 17 23 Other assets (d) 6 5 Total SPE assets 2,253 2,578 Non-recourse term notes (e) (f) 1,505 1,893 Non-recourse conduit facilities (e) 452 341 Other liabilities (g) 7 2 Total SPE liabilities 1,964 2,236 SPE assets in excess of SPE liabilities $ 289 $ 342 (a) The Company does not allocate allowance for loan losses to SPEs. This amount is included in Vacation ownership contract receivables, net on the Condensed Consolidated Balance Sheets. (b) Included in Restricted cash on the Condensed Consolidated Balance Sheets. (c) Included in Trade receivables, net on the Condensed Consolidated Balance Sheets. (d) Primarily includes deferred financing costs for the bank conduit facility and a security investment asset, which is included in Other assets on the Condensed Consolidated Balance Sheets. (e) Included in Non-recourse vacation ownership debt on the Condensed Consolidated Balance Sheets. (f) Includes deferred financing costs of $16 million and $21 million as of September 30, 2021 and December 31, 2020, related to non-recourse debt. (g) Primarily includes accrued interest on non-recourse debt, which is included in Accrued expenses and other liabilities on the Condensed Consolidated Balance Sheets. In addition, the Company has VOCRs that have not been securitized through bankruptcy-remote SPEs. Such gross receivables were $721 million and $717 million as of September 30, 2021 and December 31, 2020. A summary of total vacation ownership receivables and other securitized assets, net of securitized liabilities and the allowance for loan losses, is as follows (in millions): September 30, December 31, SPE assets in excess of SPE liabilities $ 289 $ 342 Non-securitized contract receivables 721 717 Less: Allowance for loan losses 565 693 Total, net $ 445 $ 366 |
Fair Value
Fair Value | 9 Months Ended |
Sep. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value | Fair Value The Company measures its financial assets and liabilities at fair value on a recurring basis and utilizes the fair value hierarchy 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 Company’s derivative instruments currently consist of foreign exchange forward contracts and interest rate caps. As of September 30, 2021, the Company had foreign exchange contracts which resulted in less than $1 million of assets which are included within Other assets and $1 million of liabilities which are included within Accrued expenses and other liabilities on the Condensed Consolidated Balance Sheet. On a recurring basis, such assets and liabilities are remeasured at estimated fair value (all of which are Level 2) and thus are equal to the carrying value. The impact of interest rate caps was immaterial as of September 30, 2021 and 2020. 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 were as follows (in millions): September 30, 2021 December 31, 2020 Carrying Estimated Fair Value Carrying Estimated Fair Value Assets Vacation ownership contract receivables, net (Level 3) $ 2,292 $ 2,893 $ 2,482 $ 3,035 Liabilities Debt (Level 2) $ 5,343 $ 5,603 $ 6,418 $ 6,705 The Company estimates the fair value of its VOCRs 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 non-recourse 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 estimates the fair value of its debt, excluding finance leases, using Level 2 inputs based on indicative bids from investment banks and determines the fair value of its secured notes using quoted market prices (such secured notes are not actively traded). |
Derivative Instruments And Hedg
Derivative Instruments And Hedging Activities | 9 Months Ended |
Sep. 30, 2021 | |
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 euro, British pound, Australian and Canadian dollars, and the Mexican peso. 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 has used 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. The amount of gains or losses relating to contracts designated as cash flow hedges that the Company expects to reclassify from Accumulated other comprehensive loss (“AOCL”) 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 periodically uses financial derivatives to strategically adjust its mix of fixed to floating rate debt. The derivative instruments utilized include interest rate swaps which convert fixed–rate debt into variable–rate debt (i.e. fair value hedges) and interest rate caps (undesignated hedges) to manage the overall interest cost. For relationships designated as fair value hedges, changes in fair value of the derivatives are recorded in income, with offsetting adjustments to the carrying amount of the hedged debt. As of September 30, 2021 and 2020, the Company had no fair value interest rate hedges. Losses on derivatives recognized in AOCL for the three and nine months ended September 30, 2021 and 2020, were not material. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company files U.S. federal, state and foreign income tax returns in jurisdictions with varying statutes of limitations. The Company is no longer subject to U.S. federal income tax examinations for years prior to 2016. In addition, with few exceptions, the Company is no longer subject to state, local or foreign income tax examinations for years prior to 2011. The Company’s effective tax rate was 27.9% and (110.5)% for the three months ended September 30, 2021 and 2020; and 27.2% and 17.3% for the nine months ended September 30, 2021 and 2020. The effective tax rates during the three and nine months ended September 30, 2020 were significantly impacted by COVID-19, leading to a mix of earnings in higher tax rate jurisdictions and losses in lower tax rate jurisdictions that significantly reduced the Company’s overall effective tax rate in 2020. During the three months ended September 30, 2020, the Company reported a tax benefit on pre-tax income resulting from the true-up of applying the revised forecasted effective tax rate to the prior quarter’s losses. The Company made income tax payments, net of tax refunds, of $91 million and $47 million during the nine months ended September 30, 2021 and 2020. Tax positions are reviewed at least quarterly and adjusted as new information becomes available. The recoverability of deferred tax assets is evaluated by assessing the adequacy of future expected taxable income from all sources, including reversal of taxable temporary differences, available tax planning strategies and forecasted operating earnings. These estimates of future taxable income inherently require significant judgment. To the extent it is considered more likely than not that a deferred tax asset will be not recovered, a valuation allowance is established. Due to various factors including negative impacts of COVID-19, the Company had net increases in its valuation allowances related to foreign tax credits and other deferred assets of $3 million and $8 million during the nine months ended September 30, 2021 and 2020. On March 11, 2021, the American Rescue Plan Act of 2021 (“ARPA”) was signed into law, which is the latest stimulus package to provide COVID-19 relief. ARPA includes an extension of the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act Employee Retention Tax Credit until December 31, 2021. In addition to the expansion of the employee retention credit (among other provisions), ARPA includes several revenue-raising and business tax provisions. One such provision that will impact the Company is the expansion of the limitation of compensation deductions above $1 million for certain covered employees of publicly held corporations. Effective for taxable years after December 31, 2026, ARPA expands the limitation to cover the next five highest compensated employees. On March 27, 2020, the CARES Act was established to provide emergency assistance and health care for individuals, families, and businesses affected by COVID-19 and generally support the U.S. economy. The CARES Act, among other things, includes provisions relating to refundable payroll tax credits, deferment of employer social security payments, net operating loss carryback periods, alternative minimum tax credit refunds, modifications to the net interest deduction limitations, and technical corrections to tax depreciation methods for qualified improvement property. The Company has deferred certain social security payments and had additional depreciation deductions relating to qualified improvement property. The Company recorded $3 million and $24 million of employee retention tax credits for the three and nine months ended September 30, 2020, and an additional $2 million of employee retention tax credits during the nine months ended September 30, 2021, including credits from similar programs outside the U.S. While the Company continues to review and consider any available benefits under the CARES Act, ARPA, or similar legislation that may be enacted in response to COVID-19 for which it qualifies, the Company cannot predict the manner in which such benefits will be allocated or administered and cannot assure that it will be able to receive such benefits in a timely manner. |
Leases (Notes)
Leases (Notes) | 9 Months Ended |
Sep. 30, 2021 | |
Leases [Abstract] | |
Lessee, Finance Leases | Leases The Company leases property and equipment under finance and operating leases for its corporate headquarters, administrative functions, marketing and sales offices, and various other facilities and equipment. For leases with terms greater than 12 months, the Company records the related asset and obligation at the present value of lease payments over the term. Many of its leases include rental escalation clauses, lease incentives, renewal options and/or termination options that are factored into the Company’s determination of lease payments. The Company elected the hindsight practical expedient to determine the reasonably certain lease term for existing leases. The Company also made an accounting policy election to keep leases with an initial term of 12 months or less off the balance sheet and recognize the associated lease payments on a straight-line basis over the lease term in the Condensed Consolidated Statements of Income/(Loss). When available, the Company uses the rate implicit in the lease to discount lease payments to present value; however, most of its leases do not provide a readily determinable implicit rate. Therefore, the Company must estimate its incremental borrowing rate to discount the lease payments based on information available at lease commencement. The majority of the Company’s leases have remaining lease terms of one The table below presents certain information related to the lease costs for finance and operating leases (in millions): Three Months Ended Nine Months Ended September 30, September 30, 2021 2020 2021 2020 Operating lease cost $ 5 $ 7 $ 17 $ 24 Short-term lease cost $ 3 $ 4 $ 10 $ 11 Finance lease cost: Amortization of right-of-use assets $ 1 $ 1 $ 3 $ 2 Interest on lease liabilities — — — — Total finance lease cost $ 1 $ 1 $ 3 $ 2 The table below presents the lease-related assets and liabilities recorded on the Condensed Consolidated Balance Sheets: Balance Sheet Classification September 30, 2021 December 31, 2020 Operating leases (in millions): Operating lease right-of-use assets Other assets $ 82 $ 92 Operating lease liabilities Accrued expenses and other liabilities $ 141 $ 157 Finance leases (in millions): Finance lease assets (a) Property and equipment, net $ 8 $ 8 Finance lease liabilities Debt $ 7 $ 7 Weighted average remaining lease term: Operating leases 6.6 years 7.1 years Finance leases 2.5 years 2.6 years Weighted average discount rate: Operating leases (b) 5.8 % 5.9 % Finance leases 4.7 % 5.6 % (a) Presented net of accumulated depreciation. (b) Upon adoption of the new lease standard, discount rates used for existing leases were established at January 1, 2019. The table below presents supplemental cash flow information related to leases (in millions): Nine Months Ended September 30, 2021 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 28 $ 28 Operating cash flows from finance leases — — Financing cash flows from finance leases 3 3 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 6 $ 9 Finance leases 3 6 The table below presents maturities of lease liabilities as of September 30, 2021 (in millions): Operating Leases Finance Three months ending December 31, 2021 $ 8 $ 1 2022 31 4 2023 29 2 2024 28 1 2025 24 — Thereafter 50 — Total minimum lease payments 170 8 Less: Amount of lease payments representing interest (29) (1) Present value of future minimum lease payments $ 141 $ 7 Due to the impact of COVID-19 during the second quarter of 2020, the Company decided to abandon the remaining portion of its administrative offices in New Jersey. The Company was also notified that Wyndham Hotels exercised its early termination rights under the sublease agreement for this building. As a result, the Company recorded $22 million of restructuring charges associated with non-lease components of the office space and $24 million of impairment charges associated with the write-off of right-of-use assets and furniture, fixtures and equipment. During the third quarter of 2020, the Company incurred $5 million of impairment charges related to right-of-use assets at closed sales centers within its Vacation Ownership segment. |
Commitments And Contingencies
Commitments And Contingencies | 9 Months Ended |
Sep. 30, 2021 | |
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 its business, none of which, in the opinion of management, is expected to have a material effect on the Company’s results of operations or financial condition. Travel + Leisure Co. Litigation The Company may be from time to time 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 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 or in relation to guest reservations and bookings; and negligence, breach of contract, fraud, consumer protection and other statutory claims by guests and other consumers for alleged injuries sustained at or acts or occurrences related to vacation ownership units or resorts or in relation to guest reservations and bookings; for its Travel and Membership 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, guests and other consumers for alleged injuries sustained at or acts or occurrences related to affiliated resorts, or in relation to guest reservations and bookings; and for each of its businesses, bankruptcy proceedings involving efforts to collect receivables from a debtor in bankruptcy, employment matters including but not limited to, claims of wrongful termination, retaliation, discrimination, harassment and wage and hour claims, whistleblower claims, claims of infringement upon third parties’ intellectual property rights, claims relating to information security, privacy and consumer protection, fiduciary duty/trust claims, tax claims, environmental claims, and landlord/tenant disputes. The Company records an accrual for legal contingencies when it determines, after consultation with outside counsel where appropriate, 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 fiscal quarter 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 wit h reserves of $15 million and $13 million as of September 30, 2021 and December 31, 2020. L itigation 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 September 30, 2021, it is estimated that the potential exposure resulting from adverse outcomes of such legal proceedings could, in the aggregate, range up to $35 million in excess of recorded accruals. Such reserves and potential exposure are exclusive of matters relating to the Company’s separation from Cendant, matters relating to the Spin-off, matters relating to the sale of the European vacation rentals business, and matters relating to the sale of the North American vacation rentals business, which are discussed in Note 23— Transactions with Former Parent and Former Subsidiaries . 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 and/or liquidity. For matters deemed reasonably possible, therefore 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. As of September 30, 2021, it is estimated that the potential exposure resulting from adverse outcomes of such legal proceedings could, in the aggregate, range up to an amount of $1 million. G UARANTEES /I NDEMNIFICATIONS Standard Guarantees/Indemnifications In the ordinary course of business, the Company enters into agreements that contain standard guarantees and indemnities whereby the Company indemnifies another party for specified breaches of, or third-party claims relating to, an underlying agreement. Such underlying agreements are typically entered into by one of the Company’s subsidiaries. The various underlying agreements generally govern purchases, sales or outsourcing of products or services, leases of real estate, licensing of software and/or development of vacation ownership properties, access to credit facilities, derivatives and issuances of debt securities. Also in the ordinary course of business, the Company provides corporate guarantees for its operating business units relating to merchant credit-card processing for prepaid customer stays and other deposits. While a majority of these guarantees and indemnifications extend only for the duration of the underlying agreement, some survive the expiration of the agreement. The Company is not able to estimate the maximum potential amount of future payments to be made under these guarantees and indemnifications as the triggering events are not predictable. In certain cases, the Company maintains insurance coverage that may mitigate any potential payments. Other Guarantees and Indemnifications Vacation Ownership The Company has committed to repurchase completed property located in Las Vegas, Nevada, from a third-party developer subject to such property meeting the Company’s vacation ownership resort standards and provided that the third-party developer has not sold such property to another party. See Note 8— Inventory for additional details. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive (Loss)/Income | 9 Months Ended |
Sep. 30, 2021 | |
Equity [Abstract] | |
Accumulated Other Comprehensive (Loss)/Income | Accumulated Other Comprehensive (Loss)/Income The components of accumulated other comprehensive loss are as follows (in millions): Foreign Unrealized Defined Accumulated Currency (Losses)/Gains Benefit Other Translation on Cash Flow Pension Comprehensive Pretax Adjustments Hedges Plans (Loss)/Income Balance, December 31, 2020 $ (113) $ (1) $ — $ (114) Other comprehensive loss (27) — — (27) Balance, September 30, 2021 $ (140) $ (1) $ — $ (141) Tax Balance, December 31, 2020 $ 97 $ 1 $ — $ 98 Other comprehensive loss 1 — — 1 Balance, September 30, 2021 $ 98 $ 1 $ — $ 99 Net of Tax Balance, December 31, 2020 $ (16) $ — $ — $ (16) Other comprehensive loss (26) — — (26) Balance, September 30, 2021 $ (42) $ — $ — $ (42) Foreign Unrealized Defined Accumulated Currency (Losses)/Gains Benefit Other Translation on Cash Flow Pension Comprehensive Pretax Adjustments Hedges Plans (Loss)/Income Balance, December 31, 2019 $ (148) $ (1) $ 1 $ (148) Other comprehensive loss (6) — — (6) Balance, September 30, 2020 $ (154) $ (1) $ 1 $ (154) Tax Balance, December 31, 2019 $ 95 $ 1 $ — $ 96 Other comprehensive income 2 — — 2 Balance, September 30, 2020 $ 97 $ 1 $ — $ 98 Net of Tax Balance, December 31, 2019 $ (53) $ — $ 1 $ (52) Other comprehensive loss (4) — — (4) Balance, September 30, 2020 $ (57) $ — $ 1 $ (56) 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. There were no reclassifications out of AOCL for the nine months ended September 30, 2021 or 2020. |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Sep. 30, 2021 | |
Share-based Payment Arrangement, Noncash Expense [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation The Company has a stock-based compensation plan available to grant RSUs, PSUs, SSARs, NQs, and other stock-based awards to key employees, non-employee directors, advisors, and consultants. The Wyndham Worldwide Corporation 2006 Equity and Incentive Plan was originally adopted in 2006 and was amended and restated in its entirety and approved by shareholders on May 17, 2018, (the “Amended and Restated Equity Incentive Plan”). Under the Amended and Restated Equity Incentive Plan, a maximum of 15.7 million shares of common stock may be awarded. As of September 30, 2021, 11.3 million shares remain available. Incentive Equity Awards Granted by the Company During the nine months ended September 30, 2021, the Company granted incentive equity awards to key employees and senior officers totaling $34 million in the form of RSUs, $7 million in the form of PSUs, and $2 million in the form of stock options. Of these awards, the NQs and the majority of RSUs will vest ratably over a period of four years. The PSUs will cliff vest on the third anniversary of the grant date, contingent upon the Company achieving certain performance metrics. During the nine months ended September 30, 2020, the Company granted incentive equity awards to key employees and senior officers totaling $35 million in the form of RSUs, $8 million in the form of PSUs, and $8 million in the form of stock options. The activity related to incentive equity awards granted to the Company’s key employees and senior officers by the Company for the nine months ended September 30, 2021, consisted of the following (in millions, except grant prices): Balance, December 31, 2020 Granted Vested/Exercised (a) Forfeitures (b) Balance, September 30, 2021 RSUs Number of RSUs 1.6 0.6 (0.4) — 1.8 (c) Weighted average grant price $ 38.22 $ 58.61 $ 44.71 $ — $ 47.73 PSUs Number of PSUs 0.3 0.1 — — 0.4 (d) Weighted average grant price $ 42.57 $ 59.00 $ — $ — $ 48.18 SSARs Number of SSARs 0.2 — (0.2) — — (e) Weighted average grant price $ 34.51 $ — $ 34.51 $ — $ — NQs Number of NQs 2.3 0.1 (0.1) — 2.3 (f) Weighted average grant price $ 44.15 $ 59.00 $ 44.50 $ — $ 45.32 (a) Upon exercise of NQs and SSARs and upon vesting of RSUs and PSUs, the Company issues new shares to participants. (b) The Company recognizes forfeitures as they occur. (c) Aggregate unrecognized compensation expense related to RSUs was $58 million as of September 30, 2021, which is expected to be recognized over a weighted average period of 2.6 years. (d) There was no unrecognized compensation expense related to PSUs as these awards were not probable of vesting as of September 30, 2021. The maximum amount of compensation expense associated with these awards would be $8 million which would be recognized over a weighted average period of 2.3 years. (e) As of September 30, 2021, all SSARs had been exercised and thus there was no unrecognized compensation expense. (f) There were 0.9 million NQs which were exercisable as of September 30, 2021. These exercisable NQs will expire over a weighted average period of 7.2 years and carry a weighted average grant date fair value of $8.39. Unrecognized compensation expense for NQs was $9 million as of September 30, 2021, which is expected to be recognized over a weighted average period of 2.5 years. The fair values of stock options granted by the Company during 2021 and 2020 were estimated on the date of grant using the Black-Scholes option-pricing model with the relevant weighted average assumptions outlined in the table below. Expected volatility was based on both historical and implied volatilities of the Company’s stock and the stock of comparable companies over the estimated expected life for options. The expected life represents the period of time these awards are expected to be outstanding. 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 options. 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. Stock Options 2021 2020 Grant date fair value $18.87 $7.27 - $7.28 Grant date strike price $59.00 $41.04 Expected volatility 44.80% 32.60% - 32.88% Expected life 6.25 years 6.25 - 7.50 years Risk-free interest rate 1.09% 0.95% - 1.03% Projected dividend yield 3.12% 4.87% Stock-Based Compensation Expense The Company recorded stock-based compensation expense of $8 million and $24 million during the three and nine months ended September 30, 2021, and $6 million and $14 million during the three and nine months ended September 30, 2020, related to incentive equity awards granted to key employees, senior officers, and non-employee directors. The Company paid $9 million and $2 million of taxes for the net share settlement of incentive equity awards that vested during the nine months ended September 30, 2021 and 2020. Employee Stock Purchase Plan The Company has an employee stock purchase plan which allows eligible employees to purchase common shares of Company stock through payroll deductions at a 10% discount off the fair market value at the grant date. The Company issued 0.1 million shares and recognized less than $1 million of compensation expense related to grants under this plan during both the nine months ended September 30, 2021 and 2020. |
Segment Information
Segment Information | 9 Months Ended |
Sep. 30, 2021 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information The Company has two reportable segments: Vacation Ownership (formerly Wyndham Vacation Clubs) and Travel and Membership (formerly Panorama or Vacation Exchange). In connection with the Travel + Leisure brand acquisition the Company updated the names and composition of its segments to better align with how the segments are managed. The Vacation Ownership segment 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. The Travel and Membership segment operates a variety of travel businesses, including three vacation exchange brands, a home exchange network, travel technology platforms, travel memberships, and direct-to-consumer rentals. With the formation of Travel + Leisure Group the Company decided that the operations of its Extra Holidays business, which focuses on direct to consumer bookings, better aligns with the operations of this new business line and therefore transitioned the management of the Extra Holidays business to the Travel and Membership segment. As such, the Company reclassified the results of its Extra Holidays business, which was previously reported within the Vacation Ownership segment, into the Travel and Membership segment. This change is reflected in all periods reported. The reportable segments presented below are those for which discrete financial information is available and which are utilized on a regular basis by the 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 uses net revenues and Adjusted EBITDA to assess the performance of the reportable segments. Adjusted EBITDA is defined by the Company as Net income/(loss) from continuing operations before Depreciation and amortization, Interest expense (excluding Consumer financing interest), early extinguishment of debt, Interest income (excluding Consumer financing revenues) and income taxes. Adjusted EBITDA also excludes stock-based compensation costs, separation and restructuring costs, legacy items, transaction costs for acquisitions and divestitures, impairments, gains and losses on sale/disposition of business, and items that meet the conditions of unusual and/or infrequent. Legacy items include the resolution of and adjustments to certain contingent liabilities related to acquisitions of continuing businesses and dispositions, including the separation of Wyndham Hotels and Cendant, and the sale of the vacation rentals businesses. The Company believes that Adjusted EBITDA is a useful measure of performance for its segments which, when considered with GAAP measures, the Company believes gives a more complete understanding of its operating performance. The Company’s presentation of Adjusted EBITDA may not be comparable to similarly-titled measures used by other companies. The following tables present the Company’s segment information (in millions): Three Months Ended Nine Months Ended September 30, September 30, Net revenues 2021 2020 2021 2020 Vacation Ownership $ 660 $ 475 $ 1,708 $ 1,116 Travel and Membership 185 145 573 411 Total reportable segments 845 620 2,281 1,527 Corporate and other (a) (6) (6) (17) (12) Total Company $ 839 $ 614 $ 2,264 $ 1,515 Three Months Ended Nine Months Ended September 30, September 30, Reconciliation of Net income/(loss) to Adjusted EBITDA 2021 2020 2021 2020 Net income/(loss) attributable to Travel + Leisure Co. shareholders $ 101 $ 40 $ 201 $ (258) Loss on disposal of discontinued business, net of income taxes — — 2 — Provision/(benefit) for income taxes 39 (21) 76 (54) Depreciation and amortization 31 32 93 94 Interest expense 47 52 147 138 Interest (income) (1) (2) (1) (5) Stock-based compensation 8 6 24 14 Legacy items 2 1 6 2 COVID-19 related costs (b) 1 13 3 51 Asset impairments (c) — 6 — 54 Exchange inventory write-off — 10 — 48 Restructuring — 2 (1) 27 Adjusted EBITDA $ 228 $ 139 $ 550 $ 111 Three Months Ended Nine Months Ended September 30, September 30, Adjusted EBITDA 2021 2020 2021 2020 Vacation Ownership $ 177 $ 93 $ 377 $ 6 Travel and Membership 68 62 218 142 Total reportable segments 245 155 595 148 Corporate and other (a) (17) (16) (45) (37) Total Company $ 228 $ 139 $ 550 $ 111 (a) Includes the elimination of transactions between segments. (b) Reflects severance and other employee costs associated with layoffs due to the COVID-19 workforce reduction offset in part by employee retention credits received in connection with the U.S. CARES Act, ARPA, and similar international programs for wages paid to certain employees despite having operations suspended. This amount does not include costs associated with idle pay. (c) Includes $5 million of bad debt expense related to a note receivable for the nine months ended September 30, 2020, included in Operating expenses on the Condensed Consolidated Statements of Income/(Loss). Segment Assets (a) September 30, December 31, 2020 Vacation Ownership $ 4,738 $ 5,000 Travel and Membership 1,456 1,372 Total reportable segments 6,194 6,372 Corporate and other 407 1,241 Total Company $ 6,601 $ 7,613 (a) Excludes investment in consolidated subsidiaries. |
COVID-19 Related Items (Notes)
COVID-19 Related Items (Notes) | 9 Months Ended |
Sep. 30, 2021 | |
Restructuring and Related Activities [Abstract] | |
COVID-19 Related Impacts [Text Block] | COVID-19 Related Items During the three months ended September 30, 2021, the Company had expenses directly related to COVID-19 as detailed in the table below (in millions): Vacation Ownership Travel and Membership Corporate Consolidated Income Statement Classification Allowance for loan losses: Provision $ (21) $ — $ — $ (21) Vacation ownership interest sales Recoveries 8 — — 8 Cost/(recovery) of vacation ownership interests Employee compensation related and other 1 — — 1 COVID-19 related costs Total COVID-19 $ (12) $ — $ — $ (12) During the nine months ended September 30, 2021, the Company had expenses directly related to COVID-19 as detailed in the table below (in millions): Vacation Ownership Travel and Membership Corporate Consolidated Income Statement Classification Allowance for loan losses: Provision $ (47) $ — $ — $ (47) Vacation ownership interest sales Recoveries 17 — — 17 Cost/(recovery) of vacation ownership interests Employee compensation related and other 2 — 1 3 COVID-19 related costs Lease related (1) — — (1) Restructuring Total COVID-19 $ (29) $ — $ 1 $ (28) During the three months ended September 30, 2020, the Company had expenses directly related to COVID-19 as detailed in the table below (in millions): Vacation Ownership Travel and Membership Corporate Consolidated Income Statement Classification Employee compensation related and other $ 11 $ 1 $ 2 $ 14 COVID-19 related costs Exchange inventory write-off — 10 — 10 Operating expenses Asset impairments 6 — — 6 Asset impairments Lease related 1 — — 1 Restructuring Total COVID-19 $ 18 $ 11 $ 2 $ 31 During the nine months ended September 30, 2020, the Company had expenses directly related to COVID-19 as detailed in the table below (in millions): Vacation Ownership Travel and Membership Corporate Consolidated Income Statement Classification Allowance for loan losses: Provision $ 225 $ — $ — $ 225 Vacation ownership interest sales Recoveries (55) — — (55) Cost/(recovery) of vacation ownership interests Employee compensation related and other 62 6 13 81 COVID-19 related costs Asset impairments 20 34 — 54 Asset impairments/ Exchange inventory write-off — 48 — 48 Operating expenses Lease related 2 22 — 24 Restructuring Total COVID-19 $ 254 $ 110 $ 13 $ 377 Allowance for loan losses - Due to the closure of resorts and sales centers and the economic downturn resulting from COVID-19 during the first quarter of 2020, the Company evaluated the potential impact of COVID-19 on its owners’ ability to repay their contract receivables and as a result of higher unemployment, the Company recorded a COVID-19 related allowance for loan losses. This allowance consisted of a $225 million COVID-19 related provision, which was reflected as a reduction to Vacation ownership interest sales and $55 million of estimated recoveries, which were reflected as a reduction to Cost/(recovery) of vacation ownership interests on the Condensed Consolidated Statements of Income/(Loss). The net negative impact of this COVID-19 related provision on Adjusted EBITDA was $170 million for the nine months ended September 30, 2020. During 2021, the Company analyzed the adequacy of the COVID-19 related allowance consistent with past methodology, and due to the improvement in net new defaults the Company reduced this allowance resulting in a $21 million and $47 million increase to Vacation ownership interest sales during the three and nine months ended September 30, 2021 and a corresponding $8 million and $17 million increase to Cost/(recovery) of vacation ownership interests on the Condensed Consolidated Statements of Income/(Loss). The net positive impact of these adjustments on Adjusted EBITDA was $13 million and $30 million for the three and nine months ended September 30, 2021. The Company will continue to monitor this reserve as more information becomes available. Refer to Note 7— Vacation Ownership Contract Receivables for additional details. Employee compensation related and other - During the three and nine months ended September 30, 2020, these costs included $9 million and $68 million related to severance and other employee costs resulting from the layoffs, salary and benefits continuation for certain employees while operations were suspended, and vacation payments associated with furloughed employees. These costs are inclusive of $3 million and $24 million of employee retention credits earned in connection with government programs, primarily the CARES Act. Employee compensation related and other costs also included $5 million and $13 million of expenses during the three and nine months ended September 30, 2020 related to renegotiating or exiting certain agreements and other professional fees. During the three and nine months ended September 30, 2021, the Company incurred an additional $1 million and $3 million employee related costs associated with benefits continuation, inclusive of $2 million of employee retention credits earned in connection with government programs for the nine months ended September 30, 2021. In connection with these actions the Company recorded COVID-19 employee-related liabilities which are included within Accrued expenses and other liabilities on the Condensed Consolidated Balance Sheets. The activity associated with these COVID-19 related liabilities is summarized as follows (in millions): Liability as of Liability as of December 31, 2020 Costs Recognized Cash Payments September 30, 2021 COVID-19 employee-related $ 6 $ 1 $ (6) $ 1 $ 6 $ 1 $ (6) $ 1 Asset impairments - During the three and nine months ended September 30, 2020, the Company incurred $6 million and $54 million of COVID-19 related impairments. These impairments include $6 million and $49 million recorded within Asset impairments on the Condensed Consolidated Statements of Income/(Loss) during each period as discussed in Note 21— Impairments , and $5 million included in Operating expenses during the nine months ended September 30, 2020. Exchange inventory write-off - During the three and nine months ended September 30, 2020, the Company wrote-off $10 million and $48 million of exchange inventory, which is included in Operating expenses on the Condensed Consolidated Statements of Income/(Loss) as discussed in Note 8— Inventory . Lease related - The Company also recognized $24 million of restructuring charges during the nine months ended September 30, 2020. This was driven by $22 million related to the New Jersey lease discussed in Note 22— Restructuring. |
Impairments
Impairments | 9 Months Ended |
Sep. 30, 2021 | |
Asset Impairment Charges [Abstract] | |
Asset Impairment Charges [Text Block] | Impairments During the three and nine months ended September 30, 2020, the Company recorded $6 million and $50 million of asset impairments, of which $6 million and $49 million were COVID-19 related. In the first quarter of 2020, there were $6 million of impairments at the Vacation Ownership segment related to prepaid development costs and undeveloped land and $4 million at the Travel and Membership segment related to the Love Home Swap trade name. In the second quarter of 2020, the Company recorded a $24 million impairment at the Travel and Membership segment related to the New Jersey lease and related fixed assets discussed in Note 22— Restructuring , a $6 million impairment for equity investments held at the Travel and Membership segment, and a $3 million impairment at the Vacation Ownership segment related to lease assets and furniture, fixtures and equipment. During the third quarter of 2020, $6 million of impairments were driven by leases and related fixed assets within the Vacation Ownership segment due to sales center closures. These impairments are included within the Asset impairments on the Condensed Consolidated Statements of Income/(Loss). The Company also recorded additional impairments of less than $1 million at the Vacation Ownership segment that were unrelated to COVID-19. There were no impairment charges for the three and nine months ended September 30, 2021. |
Restructuring
Restructuring | 9 Months Ended |
Sep. 30, 2021 | |
Restructuring Charges [Abstract] | |
Restructuring | Restructuring 2020 Restructuring Plans During 2020, the Company recorded $37 million of restructuring charges, $36 million of which were COVID-19 related. Due to the impact of COVID-19, the Company decided in the second quarter of 2020 to abandon the remaining portion of its administrative offices in New Jersey. The Company was notified in the second quarter of 2020 that Wyndham Hotels exercised its early termination rights under the sublease agreement. As a result, the Company recorded $22 million of restructuring charges associated with non-lease components of the office space and $24 million of impairment charges associated with the write-off of right-of-use assets and furniture, fixtures and equipment at its Travel and Membership segment. The Company also recognized $12 million of lease-related charges due to the renegotiation of an agreement and $2 million of facility-related restructuring charges associated with closed sales centers at its Vacation Ownership segment. The Travel and Membership segment additionally recognized $1 million in employee-related expenses associated with the consolidation of a shared service center. During 2020, the Company reduced its restructuring liability by $12 million of cash payments. The remaining 2020 restructuring liability of $27 million is expected to be paid by the end of 2027. The Company implemented other restructuring plans prior to 2020. The remaining liability of less than $1 million as of September 30, 2021, is mostly personnel-related and is expected to be paid by the end of 2021. The activity associated with the Company’s restructuring plans is summarized as follows (in millions): Liability as of Liability as of December 31, 2020 Costs Recognized Cash Payments Other September 30, 2021 Personnel-related $ 1 $ — $ (1) $ — $ — Facility-related 23 — — — 23 Marketing-related 2 (1) (a) — 3 (b) 4 $ 26 $ (1) $ (1) $ 3 $ 27 (a) Includes $1 million reversal of expense related to the reimbursement of prepaid licensing fees that were previously written-off at the Vacation Ownership segment. (b) Includes $2 million reimbursement of termination payments and $1 million reimbursement of license fees at the Vacation Ownership segment. |
Transactions with Former Parent
Transactions with Former Parent and Former Subsidiaries | 9 Months Ended |
Sep. 30, 2021 | |
Related Party Transaction, Due from (to) Related Party [Abstract] | |
Transactions with Former Parent and Former Subsidiaries | Transactions with Former Parent and Former Subsidiaries Matters Related to Cendant Pursuant to the Separation and Distribution Agreement with Cendant (the Company’s former parent company), the Company entered into certain guarantee commitments with Cendant and Cendant’s former subsidiary, Realogy. These guarantee arrangements primarily relate to certain contingent litigation liabilities, contingent tax liabilities, and Cendant contingent and other corporate liabilities, of which Wyndham Worldwide Corporation assumed 37.5% of the responsibility while Cendant’s former subsidiary Realogy is responsible for the remaining 62.5%. In connection with the Spin-off, Wyndham Hotels agreed to retain one-third of Cendant’s contingent and other corporate liabilities and associated costs; therefore, Travel + Leisure Co. is effectively responsible for 25% of such matters subsequent to the separation. Since Cendant’s separation, Cendant has settled the majority of the lawsuits that were pending on the date of the separation. As of September 30, 2021, the Cendant separation and related liabilities of $13 million are comprised of $13 million for tax related liabilities and less than $1 million for other contingent and corporate liabilities. As of December 31, 2020, the Company had $13 million of Cendant separation-related liabilities. These liabilities are included within Accrued expenses and other liabilities on the Condensed Consolidated Balance Sheets. Matters Related to Wyndham Hotels In connection with the Spin-off on May 31, 2018, Travel + Leisure Co. entered into several agreements with Wyndham Hotels that govern the relationship of the parties following the separation including the Separation and Distribution Agreement, the Employee Matters Agreement, the Tax Matters Agreement, the Transition Services Agreement and the License, Development and Noncompetition Agreement. On January 4, 2021, the Company and Wyndham Hotels entered into a letter agreement pursuant to which, among other things Wyndham Hotels waived its right to enforce certain noncompetition covenants in the License, Development and Noncompetition Agreement. In accordance with these agreements governing the relationship between Travel + Leisure Co. and Wyndham Hotels, Travel + Leisure Co. assumed two-thirds and Wyndham Hotels assumed one-third of certain contingent corporate liabilities of the Company incurred prior to the distribution, including liabilities of the Company related to certain terminated or divested businesses, certain general corporate matters, and any actions with respect to the separation plan. Likewise, Travel + Leisure Co. is entitled to receive two-thirds and Wyndham Hotels is entitled to receive one-third of the proceeds from certain contingent corporate assets of the Company arising or accrued prior to the distribution. Travel + Leisure Co. entered into a transition service agreement with Wyndham Hotels, pursuant to which the companies agreed to provide each other certain transitional services including human resources, facilities, payroll, tax, information technology, information management and related services, treasury, finance, sourcing, and employee benefits administration on an interim, transitional basis. For both the three and nine months ended September 30, 2020, transition service agreement expenses were less than $1 million and included within General and administrative expense on the Condensed Consolidated Statements of Income/(Loss). These transition services ended in 2020. Matters Related to the European Vacation Rentals Business In connection with the sale of the Company’s European vacation rentals business to Awaze Limited (“Awaze”), formerly Compass IV Limited, an affiliate of Platinum Equity, LLC, the Company and Wyndham Hotels agreed to certain post- closing credit support for the benefit of certain credit card service providers, a British travel association, and certain regulatory authorities to allow them to continue providing services or regulatory approval to the business. Post-closing credit support may be called if the business fails to meet its primary obligation to pay amounts when due. Awaze has provided an indemnification to Travel + Leisure Co. in the event that the post-closing credit support is enforced or called upon. At closing, the Company agreed to provide additional post-closing credit support to a British travel association and regulatory authority. An escrow was established at closing, of which $46 million was subsequently released in exchange for a secured bonding facility and a perpetual guarantee denominated in pound sterling of $46 million. The estimated fair value of the guarantee was $22 million as of September 30, 2021. The Company maintains a $7 million receivable from Wyndham Hotels for its portion of the guarantee. In addition, the Company agreed to indemnify Awaze against certain claims and assessments, including income tax, value-added tax and other tax matters, related to the operations of the European vacation rentals business for the periods prior to the transaction. The estimated fair value of the indemnifications was $42 million at September 30, 2021. The Company has a $14 million receivable from Wyndham Hotels for its portion of the guarantee. Wyndham Hotels provided certain post-closing credit support primarily for the benefit of a British travel association in the form of guarantees which are mainly denominated in pound sterling of up to an approximate $81 million on a perpetual basis. These guarantees totaled $39 million at September 30, 2021. Travel + Leisure Co. is responsible for two-thirds of these guarantees. As part of this agreement Wyndham Hotels is required to maintain minimum credit ratings which increased to Ba1 for Moody’s Investors Services and BB+ for Standard & Poor’s Rating Services (“S&P”) on May 9, 2020. In April 2020, S&P downgraded Wyndham Hotels’ credit rating from BB+ to BB. Although any ultimate exposure relative to indemnities retained from the European vacation rentals sale will be shared two-thirds by Travel + Leisure Co. and one-third by Wyndham Hotels, as the selling entity, Travel + Leisure Co. is responsible for administering additional security to enhance corporate guarantees in the event either company falls below a certain credit rating threshold. As a result of the Wyndham Hotels credit ratings downgrade, during 2020, the Company posted a £58 million surety bond and a £36 million letter of credit ($78 million and $48 million as of September 30, 2021). During the third quarter of 2021, S&P upgraded Wyndham Hotels’ credit rating to BB+. In connection with the upgrade of Wyndham Hotels’ credit rating and as part of the settlement of other claims, the Company and the beneficiary of the bond have agreed to the release of the security in the fourth quarter of 2021. The estimated fair value of the guarantees and indemnifications for which Travel + Leisure Co. is responsible related to the sale of the European vacation rentals business at September 30, 2021, including the two-thirds portion related to guarantees provided by Wyndham Hotels, totaled $90 million and was recorded in Accrued expenses and other liabilities and total receivables of $21 million were included in Other assets on the Condensed Consolidated Balance Sheets, representing the portion of these guarantees and indemnifications for which Wyndham Hotels is responsible. During 2019, Awaze proposed certain post-closing adjustments of $44 million related to the sale of the European vacation rentals business. On October 22, 2021, the Company entered into a letter of intent to settle these post-closing adjustment claims for an immaterial amount, one-third of which is the responsibility of Wyndham Hotels. Travel + Leisure Co. entered into a transition service agreement with Awaze, pursuant to which the companies agreed to provide each other certain transitional services including human resources, facilities, payroll, tax, information technology, information management and related services, treasury, finance, and sourcing on an interim, transitional basis. During both the three and nine months ended September 30, 2020, transition service agreement expenses were less than $1 million and transition service agreement income was less than $1 million. Transition service agreement expenses were included in General and administrative expense and transition service income was included in Net revenues on the Condensed Consolidated Statements of Income/(Loss). These transition services ended in 2020. Matters Related to the North American Vacation Rentals Business In connection with the sale of the North American vacation rentals business, the Company agreed to indemnify Vacasa LLC (“Vacasa”) against certain claims and assessments, including income tax and other tax matters related to the operations of the North American vacations rentals business for the periods prior to the transaction. The estimated fair value of the indemnifications was $2 million, which was included in Accrued expenses and other liabilities on the Condensed Consolidated Balance Sheets at September 30, 2021. Related Party Transactions In March 2019, the Company entered into an agreement with a former executive of the Company whereby the former executive through an SPE would develop and construct VOI inventory located in Orlando, Florida. On July 8, 2020, the Company acquired the completed vacation ownership property for $45 million. This agreement was subsequently amended increasing the purchase to $47 million. The Company occasionally sublets an aircraft from its former CEO and current Chairman of the Board of Directors for business travel through a timesharing arrangement. The Company incurred less than $1 million of expenses during the nine months ended September 30, 2021 and 2020. |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
Sep. 30, 2021 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Transactions with Former Parent and Former Subsidiaries Matters Related to Cendant Pursuant to the Separation and Distribution Agreement with Cendant (the Company’s former parent company), the Company entered into certain guarantee commitments with Cendant and Cendant’s former subsidiary, Realogy. These guarantee arrangements primarily relate to certain contingent litigation liabilities, contingent tax liabilities, and Cendant contingent and other corporate liabilities, of which Wyndham Worldwide Corporation assumed 37.5% of the responsibility while Cendant’s former subsidiary Realogy is responsible for the remaining 62.5%. In connection with the Spin-off, Wyndham Hotels agreed to retain one-third of Cendant’s contingent and other corporate liabilities and associated costs; therefore, Travel + Leisure Co. is effectively responsible for 25% of such matters subsequent to the separation. Since Cendant’s separation, Cendant has settled the majority of the lawsuits that were pending on the date of the separation. As of September 30, 2021, the Cendant separation and related liabilities of $13 million are comprised of $13 million for tax related liabilities and less than $1 million for other contingent and corporate liabilities. As of December 31, 2020, the Company had $13 million of Cendant separation-related liabilities. These liabilities are included within Accrued expenses and other liabilities on the Condensed Consolidated Balance Sheets. Matters Related to Wyndham Hotels In connection with the Spin-off on May 31, 2018, Travel + Leisure Co. entered into several agreements with Wyndham Hotels that govern the relationship of the parties following the separation including the Separation and Distribution Agreement, the Employee Matters Agreement, the Tax Matters Agreement, the Transition Services Agreement and the License, Development and Noncompetition Agreement. On January 4, 2021, the Company and Wyndham Hotels entered into a letter agreement pursuant to which, among other things Wyndham Hotels waived its right to enforce certain noncompetition covenants in the License, Development and Noncompetition Agreement. In accordance with these agreements governing the relationship between Travel + Leisure Co. and Wyndham Hotels, Travel + Leisure Co. assumed two-thirds and Wyndham Hotels assumed one-third of certain contingent corporate liabilities of the Company incurred prior to the distribution, including liabilities of the Company related to certain terminated or divested businesses, certain general corporate matters, and any actions with respect to the separation plan. Likewise, Travel + Leisure Co. is entitled to receive two-thirds and Wyndham Hotels is entitled to receive one-third of the proceeds from certain contingent corporate assets of the Company arising or accrued prior to the distribution. Travel + Leisure Co. entered into a transition service agreement with Wyndham Hotels, pursuant to which the companies agreed to provide each other certain transitional services including human resources, facilities, payroll, tax, information technology, information management and related services, treasury, finance, sourcing, and employee benefits administration on an interim, transitional basis. For both the three and nine months ended September 30, 2020, transition service agreement expenses were less than $1 million and included within General and administrative expense on the Condensed Consolidated Statements of Income/(Loss). These transition services ended in 2020. Matters Related to the European Vacation Rentals Business In connection with the sale of the Company’s European vacation rentals business to Awaze Limited (“Awaze”), formerly Compass IV Limited, an affiliate of Platinum Equity, LLC, the Company and Wyndham Hotels agreed to certain post- closing credit support for the benefit of certain credit card service providers, a British travel association, and certain regulatory authorities to allow them to continue providing services or regulatory approval to the business. Post-closing credit support may be called if the business fails to meet its primary obligation to pay amounts when due. Awaze has provided an indemnification to Travel + Leisure Co. in the event that the post-closing credit support is enforced or called upon. At closing, the Company agreed to provide additional post-closing credit support to a British travel association and regulatory authority. An escrow was established at closing, of which $46 million was subsequently released in exchange for a secured bonding facility and a perpetual guarantee denominated in pound sterling of $46 million. The estimated fair value of the guarantee was $22 million as of September 30, 2021. The Company maintains a $7 million receivable from Wyndham Hotels for its portion of the guarantee. In addition, the Company agreed to indemnify Awaze against certain claims and assessments, including income tax, value-added tax and other tax matters, related to the operations of the European vacation rentals business for the periods prior to the transaction. The estimated fair value of the indemnifications was $42 million at September 30, 2021. The Company has a $14 million receivable from Wyndham Hotels for its portion of the guarantee. Wyndham Hotels provided certain post-closing credit support primarily for the benefit of a British travel association in the form of guarantees which are mainly denominated in pound sterling of up to an approximate $81 million on a perpetual basis. These guarantees totaled $39 million at September 30, 2021. Travel + Leisure Co. is responsible for two-thirds of these guarantees. As part of this agreement Wyndham Hotels is required to maintain minimum credit ratings which increased to Ba1 for Moody’s Investors Services and BB+ for Standard & Poor’s Rating Services (“S&P”) on May 9, 2020. In April 2020, S&P downgraded Wyndham Hotels’ credit rating from BB+ to BB. Although any ultimate exposure relative to indemnities retained from the European vacation rentals sale will be shared two-thirds by Travel + Leisure Co. and one-third by Wyndham Hotels, as the selling entity, Travel + Leisure Co. is responsible for administering additional security to enhance corporate guarantees in the event either company falls below a certain credit rating threshold. As a result of the Wyndham Hotels credit ratings downgrade, during 2020, the Company posted a £58 million surety bond and a £36 million letter of credit ($78 million and $48 million as of September 30, 2021). During the third quarter of 2021, S&P upgraded Wyndham Hotels’ credit rating to BB+. In connection with the upgrade of Wyndham Hotels’ credit rating and as part of the settlement of other claims, the Company and the beneficiary of the bond have agreed to the release of the security in the fourth quarter of 2021. The estimated fair value of the guarantees and indemnifications for which Travel + Leisure Co. is responsible related to the sale of the European vacation rentals business at September 30, 2021, including the two-thirds portion related to guarantees provided by Wyndham Hotels, totaled $90 million and was recorded in Accrued expenses and other liabilities and total receivables of $21 million were included in Other assets on the Condensed Consolidated Balance Sheets, representing the portion of these guarantees and indemnifications for which Wyndham Hotels is responsible. During 2019, Awaze proposed certain post-closing adjustments of $44 million related to the sale of the European vacation rentals business. On October 22, 2021, the Company entered into a letter of intent to settle these post-closing adjustment claims for an immaterial amount, one-third of which is the responsibility of Wyndham Hotels. Travel + Leisure Co. entered into a transition service agreement with Awaze, pursuant to which the companies agreed to provide each other certain transitional services including human resources, facilities, payroll, tax, information technology, information management and related services, treasury, finance, and sourcing on an interim, transitional basis. During both the three and nine months ended September 30, 2020, transition service agreement expenses were less than $1 million and transition service agreement income was less than $1 million. Transition service agreement expenses were included in General and administrative expense and transition service income was included in Net revenues on the Condensed Consolidated Statements of Income/(Loss). These transition services ended in 2020. Matters Related to the North American Vacation Rentals Business In connection with the sale of the North American vacation rentals business, the Company agreed to indemnify Vacasa LLC (“Vacasa”) against certain claims and assessments, including income tax and other tax matters related to the operations of the North American vacations rentals business for the periods prior to the transaction. The estimated fair value of the indemnifications was $2 million, which was included in Accrued expenses and other liabilities on the Condensed Consolidated Balance Sheets at September 30, 2021. Related Party Transactions In March 2019, the Company entered into an agreement with a former executive of the Company whereby the former executive through an SPE would develop and construct VOI inventory located in Orlando, Florida. On July 8, 2020, the Company acquired the completed vacation ownership property for $45 million. This agreement was subsequently amended increasing the purchase to $47 million. The Company occasionally sublets an aircraft from its former CEO and current Chairman of the Board of Directors for business travel through a timesharing arrangement. The Company incurred less than $1 million of expenses during the nine months ended September 30, 2021 and 2020. |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events Revolving Credit Facility Renewal On October 22, 2021, the Company renewed the credit agreement governing its $1.0 billion revolving credit facility and term loan B, extending the end of the commitment period of the revolving credit facility from May 2023 to October 2026. This renewal terminated the Relief Period established by the July 15, 2020 Credit Agreement Amendment. The renewal stipulates a first lien leverage ratio financial covenant not to exceed 4.75 to 1.0 commencing with the December 31, 2021 period through June 30, 2022, after which time it will return to 4.25 to 1.0, the level in existence prior to the effective date of the Credit Agreement Amendment. The renewal also increased the interest coverage ratio (as defined in the Credit Agreement) to 2.5 to 1.0, the level existing prior to the effective date of the Credit Agreement Amendment, and eliminated restrictions regarding share repurchases, dividends, acquisitions, and the Relief Period minimum liquidity covenant. The renewal reestablishes the annual interest rate in existence prior to the Credit Agreement Amendment which is equal to, at the Company’s option, either a base rate plus a margin ranging from 0.75% to 1.25% or LIBOR plus a margin ranging from 1.75% to 2.25%, in either case based upon the Company’s first lien leverage ratio. Sierra Timeshare 2021-2 Receivables Funding LL C On October 26, 2021, the Company closed on a placement of a series of term notes payable, issued by Sierra Timeshare 2021-2 Receivables Fundings LLC, with an initial principal amount of $350 million, secured by vacation ownership contract receivables and bearing interest at a weighted average coupon rate of 1.82%. The advance rate for this transaction was 98%. Post-Closing Adjustments for the Sale of the European Vacation Rentals Business |
Background and Basis of Prese_2
Background and Basis of Presentation Background and Basis of Presentation (Policies) | 9 Months Ended |
Sep. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Accounting, Policy [Policy Text Block] | Basis of Presentation The accompanying unaudited Condensed Consolidated Financial Statements in this Quarterly Report on Form 10-Q include the accounts and transactions of Travel + Leisure Co., as well as the entities in which Travel + Leisure Co. directly or indirectly has a controlling financial interest. The accompanying Condensed Consolidated Financial Statements have been prepared in accordance with Generally Accepted Accounting Principles in the U.S. (“GAAP”). All intercompany balances and transactions have been eliminated in the Condensed Consolidated Financial Statements. In addition, prior period segment results have been restated to reflect the aforementioned reclassification of the Extra Holidays business into the Travel and Membership segment. The Company presents an unclassified balance sheet which conforms to that of the Company’s peers and industry practice. In presenting the Condensed Consolidated Financial Statements, management makes estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosures. Estimates, by their nature, are based on judgment and available information. Accordingly, actual results could differ from those estimates and assumptions. In management’s opinion, the Condensed 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 Condensed Consolidated Financial Statements should be read in conjunction with the Company’s 2020 Consolidated Financial Statements included in its Annual Report on Form 10-K filed with the Securities and Exchange Commission on February 24, 2021. |
New Accounting Pronouncements N
New Accounting Pronouncements New Accounting Pronouncements (Policies) | 9 Months Ended |
Sep. 30, 2021 | |
Accounting Changes and Error Corrections [Abstract] | |
New Accounting Pronouncements, Policy [Policy Text Block] | Recently Issued Accounting Pronouncements Reference Rate Reform. In March 2020, the Financial Accounting Standards Board (“FASB”) issued guidance, amended in January 2021, which provides optional expedients and exceptions for applying GAAP to contract modifications and hedging relationships, subject to meeting certain criteria that reference the London Interbank Offered Rate (“LIBOR”) or another reference rate expected to be discontinued. This guidance became effective on March 12, 2020, and will apply through December 31, 2022. The transition from LIBOR based benchmark is expected to begin January 1, 2022 and to be completed when U.S. Dollar (“USD”) LIBOR rates are phased out by June 30, 2023. The Company is currently evaluating the impact of the transition from LIBOR on its financial statements and related disclosures and the related impact of this guidance on the transition. The Company adopted appropriate LIBOR replacement rate transition language into the agreements for the renewal of its USD bank conduit facility in 2020 and the renewal of the credit agreement governing the revolving credit facility and term loan B which closed on October 22, 2021. These agreements represented the Company’s largest exposure to LIBOR. The Company intends to include such language in its other relevant agreements prior to the end of 2021. See Note 25— Subsequent Events for additional details. Recently Adopted Accounting Pronouncements Simplifying the Accounting for Income Taxes. In December 2019, the FASB issued guidance to simplify the accounting for income taxes and clarify the financial statement presentation for tax benefits related to tax deductible dividends. This guidance became effective for fiscal years beginning after December 15, 2020, including interim periods within those fiscal years. The adoption of this guidance did not have a material impact on the Company’s Condensed Consolidated Financial Statements and related disclosures. |
Revenue Recognition Revenue Rec
Revenue Recognition Revenue Recognition (Policies) | 9 Months Ended |
Sep. 30, 2021 | |
Revenue Recognition and Deferred Revenue [Abstract] | |
Revenue [Policy Text Block] | Vacation Ownership The Company 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. The Company’s sales of VOIs are either cash sales or developer-financed sales. Developer-financed sales are typically collateralized by the underlying VOI. Revenue is recognized on VOI sales upon transfer of control, which is defined as the point in time when a binding sales contract has been executed, the financing contract has been executed for the remaining transaction price, the statutory rescission period has expired, and the transaction price has been deemed to be collectible. For developer-financed sales, the Company reduces the VOI sales transaction price by an estimate of uncollectible consideration at the time of the sale. The Company’s estimates of uncollectible amounts are based largely on the results of the Company’s static pool analysis which relies on historical payment data by customer class. In connection with entering into a VOI sale, the Company may provide its customers with certain non-cash incentives, such as credits for future stays at its resorts. For those VOI sales, the Company bifurcates the sale and allocates the sales price between the VOI sale and the non-cash incentive. Non-cash incentives generally have expiration periods of 18 months or less and are recognized at a point in time upon transfer of control. The Company provides day-to-day property management services including oversight of housekeeping services, maintenance, and certain accounting and administrative services for property owners’ associations and clubs. These services may also include reservation and resort renovation activities. Such agreements are generally for terms of one year or less, and are renewed automatically on an annual basis. The Company’s management agreements contain cancellation clauses, which allow for either party to cancel the agreement, by either a majority board vote or a majority vote of non-developer interests. The Company receives fees for such property management services which are collected monthly in advance and are based upon total costs to operate such resorts (or as services are provided in the case of resort renovation activities). Fees for property management services typically approximate 10% of budgeted operating expenses. The Company is entitled to consideration for reimbursement of costs incurred on behalf of the property owners’ association in providing management services (“reimbursable revenue”). These reimbursable costs principally relate to the payroll costs for management of the associations, club and resort properties where the Company is the employer and are reflected as a component of Operating expenses on the Condensed Consolidated Statements of Income/(Loss). The Company reduces its management fees for amounts it has paid to the property owners’ association that reflect maintenance fees for VOIs for which it retains ownership, as the Company has concluded that such payments are consideration payable to a customer. Travel and Membership As a provider of vacation exchange services, the Company enters into affiliation agreements with developers of vacation ownership properties to allow owners of VOIs to trade their intervals for intervals at other properties affiliated with the Company’s vacation exchange network and, for some members, for other leisure-related services and products. Travel and Membership derives a majority of revenues from membership dues and fees for facilitating members’ trading of their intervals. Revenues from membership dues represent the fees paid by members or affiliated clubs on their behalf. The Company recognizes revenues from membership dues paid by the member on a straight-line basis over the membership period as the performance obligations are fulfilled through delivery of publications, if applicable, and by providing access to travel-related products and services. Estimated net contract consideration payable by affiliated clubs for memberships is recognized as revenue over the term of the contract with the affiliated club in proportion to the estimated average monthly member count. Such estimates are adjusted periodically for changes in the actual and forecasted member activity. For additional fees, members have the right to exchange their intervals for intervals at other properties affiliated with the Company’s vacation exchange networks and, for certain members, for other leisure-related services and products. The Company also derives revenue from facilitating bookings of travel accommodations for both members and non-members. Revenue is recognized when these transactions have been confirmed, net of expected cancellations. The Company’s vacation exchange business also derives revenues from programs with affiliated resorts, club servicing, and loyalty programs; and additional exchange-related products that provide members with the ability to protect trading power or points, extend the life of deposits, and combine two or more deposits for the opportunity to exchange into intervals with higher trading power. Other vacation exchange related product fees are deferred and recognized as revenue upon the occurrence of a future exchange, event, or other related transaction. The Company also derives revenue from other travel products and services, enabled as a result of the 2019 acquisition of ARN and via the Company’s resort services solution business, optimizing business to business (“B2B”) capabilities, and integration for consumer travel planning. The Company’s relationships and buying power with major travel suppliers provide its partners with access to exclusive travel inventory. The Company’s affiliates and members have access to inventory from accommodation wholesalers, airfare, and rental car providers. The Company earns revenue from its RCI Elite Rewards co–branded credit card program, which is primarily generated by cardholder spending and the enrollment of new cardholders. The advance payments received under the program are recognized as a contract liability until the Company’s performance obligations have been satisfied. The primary performance obligation for the program relates to brand performance services. Total contract consideration is estimated and recognized on a straight-line basis over the contract term. Other Items The Company records property management services revenues for its Vacation Ownership segment and RCI Elite Rewards revenues for its Travel and Membership segment gross as a principal. |
Revenue Recognition, Deferred Revenue [Policy Text Block] | In the Company’s Vacation Ownership business, deferred VOI trial package revenue represents consideration received in advance for a trial VOI, which allows customers to utilize a vacation package typically within one year of purchase. Deferred VOI incentive revenue represents payments received in advance for additional travel-related services and products at the time of a VOI sale. Revenue is recognized when a customer utilizes the additional services and products, which is typically within one year of the VOI sale. Within the Company’s Travel and Membership business, deferred subscription revenue represents billings and payments received in advance from members and affiliated clubs for memberships in the Company’s travel programs which are |
Capitalized contract costs policy text block [Policy Text Block] | Capitalized Contract Costs The Company’s Vacation Ownership segment incurs certain direct and incremental selling costs in connection with VOI trial package and incentive revenues. Such costs are capitalized and subsequently amortized over the utilization period, which is typically within one year of the sale. As of September 30, 2021 and December 31, 2020, these capitalized costs were $29 million and $41 million and are included within Other assets on the Condensed Consolidated Balance Sheets. The Company’s Travel and Membership segment incurs certain direct and incremental selling costs to obtain contracts with customers in connection with subscription revenues and exchange–related revenues. Such costs, which are primarily comprised of commissions paid to internal and external parties and credit card processing fees, are deferred at the inception of the contract and recognized when the benefit is transferred to the customer. As of September 30, 2021 and December 31, 2020, these capitalized costs were $17 million and $16 million; and are included within Other assets on the Condensed Consolidated Balance Sheets. |
Vacation Ownership Contract R_2
Vacation Ownership Contract Receivables Policy (Policies) | 9 Months Ended |
Sep. 30, 2021 | |
Receivables [Abstract] | |
Credit Quality for Financed Receivables and the Allowance for Credit Losses | 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 Fair Isaac Corporation (“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 to 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, from 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 Vacation Ownership Asia Pacific business for which scores are not readily available). |
Variable Interest Entities Vari
Variable Interest Entities Variable Interest Entities Policies (Policies) | 9 Months Ended |
Sep. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Principals of consolidation | 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 VOCRs and sells them to bankruptcy-remote entities. VOCRs qualify for securitization based primarily on the credit strength of the VOI purchaser to whom financing has been extended. VOCRs are securitized through bankruptcy-remote SPEs that are consolidated within the Company’s Condensed 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 VOCRs. The Company services the securitized VOCRs pursuant to servicing agreements negotiated on an arm’s-length basis based on market conditions. The activities of these SPEs are limited to (i) purchasing VOCRs 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 non-recourse debt that is securitized through the SPEs is legally not a liability of the Company and thus, the creditors of these SPEs have no recourse against the Company for principal and interest. |
Income Taxes Income Taxes (Poli
Income Taxes Income Taxes (Policies) | 9 Months Ended |
Sep. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Tax, Policy [Policy Text Block] | Tax positions are reviewed at least quarterly and adjusted as new information becomes available. The recoverability of deferred tax assets is evaluated by assessing the adequacy of future expected taxable income from all sources, including reversal of taxable temporary differences, available tax planning strategies and forecasted operating earnings. These estimates of future taxable income inherently require significant judgment. To the extent it is considered more likely than not that a deferred tax asset will be not recovered, a valuation allowance is established. |
Leases (Policies)
Leases (Policies) | 9 Months Ended |
Sep. 30, 2021 | |
Leases [Abstract] | |
Lessee, Leases [Policy Text Block] | The Company leases property and equipment under finance and operating leases for its corporate headquarters, administrative functions, marketing and sales offices, and various other facilities and equipment. For leases with terms greater than 12 months, the Company records the related asset and obligation at the present value of lease payments over the term. Many of its leases include rental escalation clauses, lease incentives, renewal options and/or termination options that are factored into the Company’s determination of lease payments. The Company elected the hindsight practical expedient to determine the reasonably certain lease term for existing leases. The Company also made an accounting policy election to keep leases with an initial term of 12 months or less off the balance sheet and recognize the associated lease payments on a straight-line basis over the lease term in the Condensed Consolidated Statements of Income/(Loss).When available, the Company uses the rate implicit in the lease to discount lease payments to present value; however, most of its leases do not provide a readily determinable implicit rate. Therefore, the Company must estimate its incremental borrowing rate to discount the lease payments based on information available at lease commencement. The majority of the Company’s leases have remaining lease terms of one |
Commitment and Contingencies (P
Commitment and Contingencies (Policies) | 9 Months Ended |
Sep. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies, Policy | Travel + Leisure Co. Litigation The Company may be from time to time 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 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 or in relation to guest reservations and bookings; and negligence, breach of contract, fraud, consumer protection and other statutory claims by guests and other consumers for alleged injuries sustained at or acts or occurrences related to vacation ownership units or resorts or in relation to guest reservations and bookings; for its Travel and Membership 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, guests and other consumers for alleged injuries sustained at or acts or occurrences related to affiliated resorts, or in relation to guest reservations and bookings; and for each of its businesses, bankruptcy proceedings involving efforts to collect receivables from a debtor in bankruptcy, employment matters including but not limited to, claims of wrongful termination, retaliation, discrimination, harassment and wage and hour claims, whistleblower claims, claims of infringement upon third parties’ intellectual property rights, claims relating to information security, privacy and consumer protection, fiduciary duty/trust claims, tax claims, environmental claims, and landlord/tenant disputes. Standard Guarantees/Indemnifications In the ordinary course of business, the Company enters into agreements that contain standard guarantees and indemnities whereby the Company indemnifies another party for specified breaches of, or third-party claims relating to, an underlying agreement. Such underlying agreements are typically entered into by one of the Company’s subsidiaries. The various underlying agreements generally govern purchases, sales or outsourcing of products or services, leases of real estate, licensing of software and/or development of vacation ownership properties, access to credit facilities, derivatives and issuances of debt securities. Also in the ordinary course of business, the Company provides corporate guarantees for its operating business units relating to merchant credit-card processing for prepaid customer stays and other deposits. While a majority of these guarantees and indemnifications extend only for the duration of the underlying agreement, some survive the expiration of the agreement. The Company is not able to estimate the maximum potential amount of future payments to be made under these guarantees and indemnifications as the triggering events are not predictable. In certain cases, the Company maintains insurance coverage that may mitigate any potential payments. |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Disaggregation of Net Revenues | Property management revenues, which are comprised of management fee revenue and reimbursable revenue were (in millions) (a) : Three Months Ended Nine Months Ended September 30, September 30, 2021 2020 2021 2020 Management fee revenues $ 89 $ 83 $ 268 $ 249 Reimbursable revenues 82 63 221 189 Property management revenues $ 171 $ 146 $ 489 $ 438 (a) Reflects the impact of reclassifying the Extra Holidays business line from the Vacation Ownership segment to Travel and Membership. The table below presents a disaggregation of the Company’s net revenues from contracts with customers by major services and products for each of the Company’s segments (in millions) (a) : Three Months Ended Nine Months Ended September 30, September 30, 2021 2020 2021 2020 Vacation Ownership Vacation ownership interest sales (b) $ 344 $ 196 $ 810 $ 273 Property management fees and reimbursable revenues 171 146 489 438 Consumer financing 103 115 304 360 Fee-for-Service commissions 28 6 69 10 Ancillary revenues 14 12 36 35 Total Vacation Ownership 660 475 1,708 1,116 Travel and Membership Transaction revenues 133 86 418 227 Subscription revenues 43 43 127 120 Ancillary revenues 9 16 28 64 Total Travel and Membership 185 145 573 411 Corporate and other Eliminations (6) (6) (17) (12) Total Corporate and other (6) (6) (17) (12) Net revenues $ 839 $ 614 $ 2,264 $ 1,515 (a) This table reflects the reclassification of Extra Holidays from the Vacation Ownership segment into the Travel and Membership segment for all periods presented. Extra Holidays revenue is included within Transaction revenues. (b) The Company recorded a COVID-19 related provision for loan losses of $225 million in the first quarter of 2020, due to an expected increase in defaults driven by higher unemployment associated with COVID-19, which is reflected as a reduction to Vacation ownership interest sales on the Condensed Consolidated Statements of Income/(Loss) during the nine months ended September 30, 2020. During 2021, the Company analyzed the adequacy of this COVID-19 related allowance consistent with past methodology, resulting in a $21 million and $47 million release which is reflected as an increase in Vacation ownership interest sales on the Condensed Consolidated Statements of Income/(Loss) during the three and nine months ended September 30, 2021. |
Schedule of Contract Liabilities | Contract liabilities as of September 30, 2021 and December 31, 2020, were as follows (in millions): September 30, December 31, 2020 Deferred subscription revenue $ 170 $ 176 Deferred VOI trial package revenue 88 115 Deferred exchange-related revenue (a) 64 59 Deferred VOI incentive revenue 57 74 Deferred co-branded credit card programs revenue 13 16 Deferred other revenue 2 8 Total $ 394 $ 448 (a) Includes contractual liabilities to accommodate members for cancellations initiated by the Company due to unexpected events. These amounts are included within Accrued expenses and other liabilities on the Condensed Consolidated Balance Sheets. |
Contract with customer liability rollforward | Changes in contract liabilities for the nine months ended September 30, 2021 and 2020, follow (in millions): 2021 2020 Beginning balance $ 448 $ 539 Additions 199 180 Revenue recognized (253) (235) Ending balance $ 394 $ 484 |
Schedule of Performance Obligations | The following table summarizes the Company’s remaining performance obligations for the 12-month periods set forth below (in millions): 10/1/2021 - 9/30/2022 10/1/2022 - 9/30/2023 10/1/2023 - 9/30/2024 Thereafter Total Subscription revenue $ 100 $ 37 $ 17 $ 16 $ 170 VOI trial package revenue 88 — — — 88 Exchange-related revenue 60 3 1 — 64 VOI incentive revenue 57 — — — 57 Co-branded credit card programs revenue 3 3 3 4 13 Other revenue 2 — — — 2 Total $ 310 $ 43 $ 21 $ 20 $ 394 |
Earnings_(Loss) Per Share (Tabl
Earnings/(Loss) Per Share (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Earnings Per Share Reconciliation [Abstract] | |
Computation Of Basic And Diluted EPS | The following table sets forth the computations of basic and diluted EPS (in millions, except per share data): Three Months Ended Nine Months Ended September 30, September 30, 2021 2020 2021 2020 Net income/(loss) from continuing operations attributable to Travel + Leisure Co. shareholders $ 101 $ 40 $ 203 $ (258) Loss on disposal of discontinued business attributable to Travel + Leisure Co. shareholders, net of income taxes — — (2) — Net income/(loss) attributable to Travel + Leisure Co. shareholders $ 101 $ 40 $ 201 $ (258) Basic earnings/(loss) per share (a) Continuing operations $ 1.16 $ 0.47 $ 2.35 $ (3.00) Discontinued operations — — (0.02) — $ 1.16 $ 0.47 $ 2.33 $ (3.00) Diluted earnings/(loss) per share (a) Continuing operations $ 1.15 $ 0.47 $ 2.33 $ (3.00) Discontinued operations — — (0.03) — $ 1.15 $ 0.47 $ 2.30 $ (3.00) Basic weighted average shares outstanding 86.6 85.9 86.5 86.1 Stock-settled appreciation rights (“SSARs”), RSUs, (b) PSUs (c) and NQs (d) 0.8 0.2 0.8 — Diluted weighted average shares outstanding (e) 87.4 86.1 87.3 86.1 Dividends: Aggregate dividends paid to shareholders $ 26 $ 26 $ 79 $ 112 (a) Earnings/(loss) per share amounts are calculated using whole numbers. (b) Excludes 0.4 million and 0.3 million of anti-dilutive restricted stock units (“RSUs”) for the three and nine months ended September 30, 2021. Excludes 1.0 million and 1.1 million of anti-dilutive RSUs for the three and nine months ended September 30, 2020, of which 0.1 million would have been dilutive for the nine months ended September 30, 2020 had the Company not been in a net loss position during the period. These shares could potentially dilute EPS in the future. (c) Excludes performance-vested restricted stock units (“PSUs”) of 0.4 million for both the three and nine months ended September 30, 2021, as the Company had not met the required performance metrics. Excludes 0.3 million PSUs for both the three and nine months ended September 30, 2020, as the Company has not met the required performance metrics. These PSUs could potentially dilute EPS in the future. (d) Excludes 1.4 million of outstanding non-qualified stock option (“NQs”) awards that would have been anti-dilutive to EPS for both the three and nine months ended September 30, 2021. Excludes 2.3 million and 2.1 million of outstanding NQ awards that would have been anti-dilutive to EPS for the three and nine months ended September 30, 2020. These outstanding stock option awards could potentially dilute EPS in the future. (e) The dilutive impact of the Company’s potential common stock is computed utilizing the treasury stock method using average market prices during the period. |
Current Stock Repurchase Program | The following table summarizes stock repurchase activity under the current stock repurchase program (in millions): Shares Cost As of December 31, 2020 111.3 $ 5,727 Repurchases — — As of September 30, 2021 111.3 $ 5,727 |
Vacation Ownership Contract R_3
Vacation Ownership Contract Receivables (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Vacation Ownership Contract Receivables [Abstract] | |
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block] | Vacation ownership contract receivables, net consisted of (in millions): September 30, December 31, Vacation ownership contract receivables: Securitized (a) $ 2,136 $ 2,458 Non-securitized (b) 721 717 Vacation ownership contract receivables, gross 2,857 3,175 Less: Allowance for loan losses 565 693 Vacation ownership contract receivables, net $ 2,292 $ 2,482 (a) Excludes $17 million and $23 million of accrued interest on securitized VOCRs as of September 30, 2021 and December 31, 2020, which are included in Trade receivables, net on the Condensed Consolidated Balance Sheets. (b) Excludes $5 million and $9 million of accrued interest on non-securitized VOCRs as of September 30, 2021 and December 31, 2020, which are included in Trade receivables, net on the Condensed Consolidated Balance Sheets. |
Financing Receivable, Allowance for Credit Loss [Table Text Block] | The activity in the allowance for loan losses on VOCRs was as follows (in millions): Amount Allowance for loan losses as of December 31, 2020 $ 693 Provision for loan losses, net 120 Contract receivables write-offs, net (248) Allowance for loan losses as of September 30, 2021 $ 565 Amount Allowance for loan losses as of December 31, 2019 $ 747 Provision for loan losses, net 391 Contract receivables write-offs, net (350) Allowance for loan losses as of September 30, 2020 $ 788 |
Financing Receivable Credit Quality Indicators [Table Text Block] | The following table details an aging analysis of financing receivables using the most recently updated FICO scores, based on the policy described above (in millions): As of September 30, 2021 700+ 600-699 <600 No Score Asia Pacific Total Current $ 1,639 $ 756 $ 108 $ 75 $ 176 $ 2,754 31 - 60 days 16 20 10 2 1 49 61 - 90 days 8 11 6 1 1 27 91 - 120 days 8 9 9 1 — 27 Total (a) $ 1,671 $ 796 $ 133 $ 79 $ 178 $ 2,857 As of December 31, 2020 700+ 600-699 <600 No Score Asia Pacific Total Current $ 1,706 $ 835 $ 160 $ 96 $ 221 $ 3,018 31 - 60 days 20 25 13 4 2 64 61 - 90 days 13 18 12 3 1 47 91 - 120 days 12 16 14 3 1 46 Total (a) $ 1,751 $ 894 $ 199 $ 106 $ 225 $ 3,175 (a) Includes contracts under temporary deferment (up to 180 days). As of September 30, 2021 and December 31, 2020, contracts under deferment total $9 million and $37 million. The following table details the year of origination of financing receivables using the most recently updated FICO scores, based on the policy described above (in millions): As of September 30, 2021 700+ 600-699 <600 No Score Asia Pacific Total 2021 $ 406 $ 157 $ 5 $ 7 $ 29 $ 604 2020 259 125 19 6 42 451 2019 363 190 41 21 37 652 2018 257 129 29 15 26 456 2017 172 85 17 12 16 302 Prior 214 110 22 18 28 392 Total $ 1,671 $ 796 $ 133 $ 79 $ 178 $ 2,857 As of December 31, 2020 700+ 600-699 <600 No Score Asia Pacific Total 2020 $ 424 $ 173 $ 11 $ 17 $ 55 $ 680 2019 476 269 67 27 70 909 2018 339 183 50 21 36 629 2017 220 115 31 16 22 404 2016 128 63 16 10 16 233 Prior 164 91 24 15 26 320 Total $ 1,751 $ 894 $ 199 $ 106 $ 225 $ 3,175 |
Inventory (Tables)
Inventory (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Inventory Disclosure [Abstract] | |
Inventory | Inventory consisted of (in millions): September 30, December 31, Completed VOI inventory $ 1,021 $ 1,049 Estimated VOI recoveries, net 204 246 VOI construction in process 27 30 Inventory sold subject to repurchase 13 13 Vacation exchange credits and other 4 8 Land held for VOI development 1 1 Total inventory $ 1,270 $ 1,347 |
Activity Related to Inventory Obligations | The following table summarizes the activity related to the Company’s inventory obligations (in millions): Las Vegas (a) Moab (a) Orlando (a) Other (b) Total December 31, 2020 $ 13 $ 31 $ 22 $ 17 $ 83 Purchases 2 25 1 55 83 Payments (2) (56) (5) (61) (124) September 30, 2021 $ 13 $ — $ 18 $ 11 $ 42 December 31, 2019 $ 43 $ — $ — $ 6 $ 49 Purchases 15 37 44 87 183 Payments (39) — (22) (83) (144) September 30, 2020 $ 19 $ 37 $ 22 $ 10 $ 88 (a) Included in Accrued expenses and other liabilities on the Condensed Consolidated Balance Sheets. (b) Included in Accounts payable on the Condensed Consolidated Balance Sheets. |
Property and equipment (Tables)
Property and equipment (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment [Table Text Block] | Property and equipment, net, consisted of (in millions): September 30, December 31, 2020 Capitalized software $ 714 $ 694 Building and leasehold improvements 636 591 Furniture, fixtures and equipment 207 207 Land 30 30 Construction in progress 18 12 Finance leases 17 14 Total property and equipment 1,622 1,548 Less: Accumulated depreciation and amortization 944 882 Property and equipment, net $ 678 $ 666 |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments | The Company’s indebtedness consisted of (in millions): September 30, December 31, Non-recourse vacation ownership debt : (a) Term notes (b) $ 1,505 $ 1,893 USD bank conduit facility (due October 2022) (c) 314 168 AUD/NZD bank conduit facility (due April 2023) (d) 138 173 Total $ 1,957 $ 2,234 Debt : (e) $1.0 billion secured revolving credit facility (due May 2023) (f) $ — $ 547 $300 million secured term loan B (due May 2025) (g) 289 291 $250 million 5.625% secured notes (due March 2021) — 250 $650 million 4.25% secured notes (due March 2022) (h) 650 650 $400 million 3.90% secured notes (due March 2023) (i) 402 402 $300 million 5.65% secured notes (due April 2024) 299 299 $350 million 6.60% secured notes (due October 2025) (j) 345 344 $650 million 6.625% secured notes (due July 2026) 642 641 $400 million 6.00% secured notes (due April 2027) (k) 407 408 $350 million 4.625% secured notes (due March 2030) 345 345 Finance leases 7 7 Total $ 3,386 $ 4,184 (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 (which legally are not liabilities of the Company) are collateralized by $2.25 billion and $2.57 billion of underlying gross VOCRs and related assets (which legally are not assets of the Company) as of September 30, 2021 and December 31, 2020. (b) The carrying amounts of the term notes are net of deferred financing costs of $16 million and $21 million as of September 30, 2021 and December 31, 2020. (c) The Company has a borrowing capacity of $800 million under the USD bank conduit facility through October 2022. Borrowings under this facility are required to be repaid as the collateralized receivables amortize but no later than November 2023. (d) The Company has a borrowing capacity of 250 million Australian dollars (“AUD”) and 48 million New Zealand dollars (“NZD”) under the AUD/NZD bank conduit facility through April 2023. Borrowings under this facility are required to be repaid no later than May 2025. (e) The carrying amounts of the secured notes and term loan are net of unamortized discounts of $14 million and $16 million as of September 30, 2021 and December 31, 2020, and net of unamortized debt financing costs of $6 million and $7 million as of September 30, 2021 and December 31, 2020. (f) The weighted average effective interest rate on borrowings from this facility were 3.19% and 3.02% as of September 30, 2021 and December 31, 2020. In late March 2020, the Company drew down its $1.0 billion secured revolving credit facility as a precautionary measure due to COVID-19. As of September 30, 2021, these borrowings have been repaid. On October 22, 2021, the Company renewed this facility, extending the commitment period through October 2026. See Note 25— Subsequent Events for additional details. (g) The weighted average effective interest rate on borrowings from this facility was 2.39% and 2.93% as of September 30, 2021 and December 31, 2020. (h) Includes less than $1 million of unamortized gains from the settlement of a derivative as of September 30, 2021 and December 31, 2020. (i) Includes $2 million and $3 million of unamortized gains from the settlement of a derivative as of September 30, 2021 and December 31, 2020. (j) Includes $4 million and $5 million of unamortized losses from the settlement of a derivative as of September 30, 2021 and December 31, 2020. |
Summary Of Outstanding Debt Maturities | The Company’s outstanding debt as of September 30, 2021, matures as follows (in millions): Non-recourse Vacation Ownership Debt Debt Total Within 1 year $ 292 $ 656 $ 948 Between 1 and 2 years 484 407 891 Between 2 and 3 years 191 303 494 Between 3 and 4 years 192 280 472 Between 4 and 5 years 208 987 1,195 Thereafter 590 753 1,343 $ 1,957 $ 3,386 $ 5,343 |
Summary Of Available Capacity Under Borrowing Arrangements | As of September 30, 2021, available capacity under the Company’s borrowing arrangements was as follows (in millions): Non-recourse Conduit Facilities (a) Revolving Credit Facilities (b) Total capacity $ 1,017 $ 1,000 Less: Outstanding borrowings 452 — Less: Letters of credit — 51 Available capacity $ 565 $ 949 (a) Consists of the Company’s USD bank conduit facility and AUD/NZD bank conduit facility. The capacity of these facilities is subject to the Company’s ability to provide additional assets to collateralize additional non-recourse borrowings. (b) Consists of the Company’s $1.0 billion secured revolving credit facility. |
Variable Interest Entities (Tab
Variable Interest Entities (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Variable Interest Entity, Primary Beneficiary, Does Not Hold Majority Voting Interest, Disclosures [Abstract] | |
Assets and Liabilities of SPEs | The assets and liabilities of these vacation ownership SPEs are as follows (in millions): September 30, December 31, Securitized contract receivables, gross (a) $ 2,136 $ 2,458 Securitized restricted cash (b) 94 92 Interest receivables on securitized contract receivables (c) 17 23 Other assets (d) 6 5 Total SPE assets 2,253 2,578 Non-recourse term notes (e) (f) 1,505 1,893 Non-recourse conduit facilities (e) 452 341 Other liabilities (g) 7 2 Total SPE liabilities 1,964 2,236 SPE assets in excess of SPE liabilities $ 289 $ 342 (a) The Company does not allocate allowance for loan losses to SPEs. This amount is included in Vacation ownership contract receivables, net on the Condensed Consolidated Balance Sheets. (b) Included in Restricted cash on the Condensed Consolidated Balance Sheets. (c) Included in Trade receivables, net on the Condensed Consolidated Balance Sheets. (d) Primarily includes deferred financing costs for the bank conduit facility and a security investment asset, which is included in Other assets on the Condensed Consolidated Balance Sheets. (e) Included in Non-recourse vacation ownership debt on the Condensed Consolidated Balance Sheets. (f) Includes deferred financing costs of $16 million and $21 million as of September 30, 2021 and December 31, 2020, related to non-recourse debt. (g) Primarily includes accrued interest on non-recourse debt, which is included in Accrued expenses and other liabilities on the Condensed Consolidated Balance Sheets. |
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 (in millions): September 30, December 31, SPE assets in excess of SPE liabilities $ 289 $ 342 Non-securitized contract receivables 721 717 Less: Allowance for loan losses 565 693 Total, net $ 445 $ 366 |
Fair Value (Tables)
Fair Value (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Carrying Amounts and Estimated Fair Values of Financial Instruments | The carrying amounts and estimated fair values of all other financial instruments were as follows (in millions): September 30, 2021 December 31, 2020 Carrying Estimated Fair Value Carrying Estimated Fair Value Assets Vacation ownership contract receivables, net (Level 3) $ 2,292 $ 2,893 $ 2,482 $ 3,035 Liabilities Debt (Level 2) $ 5,343 $ 5,603 $ 6,418 $ 6,705 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Leases [Abstract] | |
Lease, Cost [Table Text Block] | The table below presents certain information related to the lease costs for finance and operating leases (in millions): Three Months Ended Nine Months Ended September 30, September 30, 2021 2020 2021 2020 Operating lease cost $ 5 $ 7 $ 17 $ 24 Short-term lease cost $ 3 $ 4 $ 10 $ 11 Finance lease cost: Amortization of right-of-use assets $ 1 $ 1 $ 3 $ 2 Interest on lease liabilities — — — — Total finance lease cost $ 1 $ 1 $ 3 $ 2 |
Leases, Assets and Liabilities [Table Text Block] | The table below presents the lease-related assets and liabilities recorded on the Condensed Consolidated Balance Sheets: Balance Sheet Classification September 30, 2021 December 31, 2020 Operating leases (in millions): Operating lease right-of-use assets Other assets $ 82 $ 92 Operating lease liabilities Accrued expenses and other liabilities $ 141 $ 157 Finance leases (in millions): Finance lease assets (a) Property and equipment, net $ 8 $ 8 Finance lease liabilities Debt $ 7 $ 7 Weighted average remaining lease term: Operating leases 6.6 years 7.1 years Finance leases 2.5 years 2.6 years Weighted average discount rate: Operating leases (b) 5.8 % 5.9 % Finance leases 4.7 % 5.6 % (a) Presented net of accumulated depreciation. |
Leases, Cash Flow Presentation [Table Text Block] | The table below presents supplemental cash flow information related to leases (in millions): Nine Months Ended September 30, 2021 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 28 $ 28 Operating cash flows from finance leases — — Financing cash flows from finance leases 3 3 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 6 $ 9 Finance leases 3 6 |
Leases, Liability Maturity [Table Text Block] | The table below presents maturities of lease liabilities as of September 30, 2021 (in millions): Operating Leases Finance Three months ending December 31, 2021 $ 8 $ 1 2022 31 4 2023 29 2 2024 28 1 2025 24 — Thereafter 50 — Total minimum lease payments 170 8 Less: Amount of lease payments representing interest (29) (1) Present value of future minimum lease payments $ 141 $ 7 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive (Loss)/Income (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Equity [Abstract] | |
Components Of Accumulated Other Comprehensive (Loss)/Income | The components of accumulated other comprehensive loss are as follows (in millions): Foreign Unrealized Defined Accumulated Currency (Losses)/Gains Benefit Other Translation on Cash Flow Pension Comprehensive Pretax Adjustments Hedges Plans (Loss)/Income Balance, December 31, 2020 $ (113) $ (1) $ — $ (114) Other comprehensive loss (27) — — (27) Balance, September 30, 2021 $ (140) $ (1) $ — $ (141) Tax Balance, December 31, 2020 $ 97 $ 1 $ — $ 98 Other comprehensive loss 1 — — 1 Balance, September 30, 2021 $ 98 $ 1 $ — $ 99 Net of Tax Balance, December 31, 2020 $ (16) $ — $ — $ (16) Other comprehensive loss (26) — — (26) Balance, September 30, 2021 $ (42) $ — $ — $ (42) Foreign Unrealized Defined Accumulated Currency (Losses)/Gains Benefit Other Translation on Cash Flow Pension Comprehensive Pretax Adjustments Hedges Plans (Loss)/Income Balance, December 31, 2019 $ (148) $ (1) $ 1 $ (148) Other comprehensive loss (6) — — (6) Balance, September 30, 2020 $ (154) $ (1) $ 1 $ (154) Tax Balance, December 31, 2019 $ 95 $ 1 $ — $ 96 Other comprehensive income 2 — — 2 Balance, September 30, 2020 $ 97 $ 1 $ — $ 98 Net of Tax Balance, December 31, 2019 $ (53) $ — $ 1 $ (52) Other comprehensive loss (4) — — (4) Balance, September 30, 2020 $ (57) $ — $ 1 $ (56) |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Share-based Payment Arrangement, Noncash Expense [Abstract] | |
Incentive Equity Awards Granted By The Company | The activity related to incentive equity awards granted to the Company’s key employees and senior officers by the Company for the nine months ended September 30, 2021, consisted of the following (in millions, except grant prices): Balance, December 31, 2020 Granted Vested/Exercised (a) Forfeitures (b) Balance, September 30, 2021 RSUs Number of RSUs 1.6 0.6 (0.4) — 1.8 (c) Weighted average grant price $ 38.22 $ 58.61 $ 44.71 $ — $ 47.73 PSUs Number of PSUs 0.3 0.1 — — 0.4 (d) Weighted average grant price $ 42.57 $ 59.00 $ — $ — $ 48.18 SSARs Number of SSARs 0.2 — (0.2) — — (e) Weighted average grant price $ 34.51 $ — $ 34.51 $ — $ — NQs Number of NQs 2.3 0.1 (0.1) — 2.3 (f) Weighted average grant price $ 44.15 $ 59.00 $ 44.50 $ — $ 45.32 (a) Upon exercise of NQs and SSARs and upon vesting of RSUs and PSUs, the Company issues new shares to participants. (b) The Company recognizes forfeitures as they occur. (c) Aggregate unrecognized compensation expense related to RSUs was $58 million as of September 30, 2021, which is expected to be recognized over a weighted average period of 2.6 years. (d) There was no unrecognized compensation expense related to PSUs as these awards were not probable of vesting as of September 30, 2021. The maximum amount of compensation expense associated with these awards would be $8 million which would be recognized over a weighted average period of 2.3 years. (e) As of September 30, 2021, all SSARs had been exercised and thus there was no unrecognized compensation expense. (f) There were 0.9 million NQs which were exercisable as of September 30, 2021. These exercisable NQs will expire over a weighted average period of 7.2 years and carry a weighted average grant date fair value of $8.39. Unrecognized compensation expense for NQs was $9 million as of September 30, 2021, which is expected to be recognized over a weighted average period of 2.5 years. |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | 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. Stock Options 2021 2020 Grant date fair value $18.87 $7.27 - $7.28 Grant date strike price $59.00 $41.04 Expected volatility 44.80% 32.60% - 32.88% Expected life 6.25 years 6.25 - 7.50 years Risk-free interest rate 1.09% 0.95% - 1.03% Projected dividend yield 3.12% 4.87% |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Segment Reporting [Abstract] | |
Summary Of Segment Information | The following tables present the Company’s segment information (in millions): Three Months Ended Nine Months Ended September 30, September 30, Net revenues 2021 2020 2021 2020 Vacation Ownership $ 660 $ 475 $ 1,708 $ 1,116 Travel and Membership 185 145 573 411 Total reportable segments 845 620 2,281 1,527 Corporate and other (a) (6) (6) (17) (12) Total Company $ 839 $ 614 $ 2,264 $ 1,515 Three Months Ended Nine Months Ended September 30, September 30, Reconciliation of Net income/(loss) to Adjusted EBITDA 2021 2020 2021 2020 Net income/(loss) attributable to Travel + Leisure Co. shareholders $ 101 $ 40 $ 201 $ (258) Loss on disposal of discontinued business, net of income taxes — — 2 — Provision/(benefit) for income taxes 39 (21) 76 (54) Depreciation and amortization 31 32 93 94 Interest expense 47 52 147 138 Interest (income) (1) (2) (1) (5) Stock-based compensation 8 6 24 14 Legacy items 2 1 6 2 COVID-19 related costs (b) 1 13 3 51 Asset impairments (c) — 6 — 54 Exchange inventory write-off — 10 — 48 Restructuring — 2 (1) 27 Adjusted EBITDA $ 228 $ 139 $ 550 $ 111 Three Months Ended Nine Months Ended September 30, September 30, Adjusted EBITDA 2021 2020 2021 2020 Vacation Ownership $ 177 $ 93 $ 377 $ 6 Travel and Membership 68 62 218 142 Total reportable segments 245 155 595 148 Corporate and other (a) (17) (16) (45) (37) Total Company $ 228 $ 139 $ 550 $ 111 (a) Includes the elimination of transactions between segments. (b) Reflects severance and other employee costs associated with layoffs due to the COVID-19 workforce reduction offset in part by employee retention credits received in connection with the U.S. CARES Act, ARPA, and similar international programs for wages paid to certain employees despite having operations suspended. This amount does not include costs associated with idle pay. (c) Includes $5 million of bad debt expense related to a note receivable for the nine months ended September 30, 2020, included in Operating expenses on the Condensed Consolidated Statements of Income/(Loss). Segment Assets (a) September 30, December 31, 2020 Vacation Ownership $ 4,738 $ 5,000 Travel and Membership 1,456 1,372 Total reportable segments 6,194 6,372 Corporate and other 407 1,241 Total Company $ 6,601 $ 7,613 (a) Excludes investment in consolidated subsidiaries. |
COVID-19 Related Items (Tables)
COVID-19 Related Items (Tables) | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Restructuring and Related Activities [Abstract] | ||
COVID-19 Related Impacts [Table Text Block] | During the three months ended September 30, 2021, the Company had expenses directly related to COVID-19 as detailed in the table below (in millions): Vacation Ownership Travel and Membership Corporate Consolidated Income Statement Classification Allowance for loan losses: Provision $ (21) $ — $ — $ (21) Vacation ownership interest sales Recoveries 8 — — 8 Cost/(recovery) of vacation ownership interests Employee compensation related and other 1 — — 1 COVID-19 related costs Total COVID-19 $ (12) $ — $ — $ (12) During the nine months ended September 30, 2021, the Company had expenses directly related to COVID-19 as detailed in the table below (in millions): Vacation Ownership Travel and Membership Corporate Consolidated Income Statement Classification Allowance for loan losses: Provision $ (47) $ — $ — $ (47) Vacation ownership interest sales Recoveries 17 — — 17 Cost/(recovery) of vacation ownership interests Employee compensation related and other 2 — 1 3 COVID-19 related costs Lease related (1) — — (1) Restructuring Total COVID-19 $ (29) $ — $ 1 $ (28) | During the three months ended September 30, 2020, the Company had expenses directly related to COVID-19 as detailed in the table below (in millions): Vacation Ownership Travel and Membership Corporate Consolidated Income Statement Classification Employee compensation related and other $ 11 $ 1 $ 2 $ 14 COVID-19 related costs Exchange inventory write-off — 10 — 10 Operating expenses Asset impairments 6 — — 6 Asset impairments Lease related 1 — — 1 Restructuring Total COVID-19 $ 18 $ 11 $ 2 $ 31 During the nine months ended September 30, 2020, the Company had expenses directly related to COVID-19 as detailed in the table below (in millions): Vacation Ownership Travel and Membership Corporate Consolidated Income Statement Classification Allowance for loan losses: Provision $ 225 $ — $ — $ 225 Vacation ownership interest sales Recoveries (55) — — (55) Cost/(recovery) of vacation ownership interests Employee compensation related and other 62 6 13 81 COVID-19 related costs Asset impairments 20 34 — 54 Asset impairments/ Exchange inventory write-off — 48 — 48 Operating expenses Lease related 2 22 — 24 Restructuring Total COVID-19 $ 254 $ 110 $ 13 $ 377 |
COVID-19 Related Liabilities [Table Text Block] | The activity associated with these COVID-19 related liabilities is summarized as follows (in millions): Liability as of Liability as of December 31, 2020 Costs Recognized Cash Payments September 30, 2021 COVID-19 employee-related $ 6 $ 1 $ (6) $ 1 $ 6 $ 1 $ (6) $ 1 |
Restructuring (Tables)
Restructuring (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Restructuring Charges [Abstract] | |
Activity Related To The Restructuring Costs | The activity associated with the Company’s restructuring plans is summarized as follows (in millions): Liability as of Liability as of December 31, 2020 Costs Recognized Cash Payments Other September 30, 2021 Personnel-related $ 1 $ — $ (1) $ — $ — Facility-related 23 — — — 23 Marketing-related 2 (1) (a) — 3 (b) 4 $ 26 $ (1) $ (1) $ 3 $ 27 (a) Includes $1 million reversal of expense related to the reimbursement of prepaid licensing fees that were previously written-off at the Vacation Ownership segment. (b) Includes $2 million reimbursement of termination payments and $1 million reimbursement of license fees at the Vacation Ownership segment. |
Background and Basis of Prese_3
Background and Basis of Presentation (Narrative) (Details) $ in Millions | Jan. 05, 2021USD ($) | Sep. 30, 2021USD ($) | Jun. 30, 2021USD ($) | Sep. 30, 2020USD ($) | Mar. 31, 2020USD ($) | Sep. 30, 2021USD ($)segmentbrand | Sep. 30, 2020USD ($) |
Background [Line Items] | |||||||
Number of Reportable Segments | segment | 2 | ||||||
Business Acquisition [Line Items] | |||||||
Payments to acquire business | $ 37 | $ 0 | |||||
Restructuring Cost and Reserve [Line Items] | |||||||
Provision for loan losses | $ 120 | 391 | |||||
Debt Instrument [Line Items] | |||||||
Number of operating segments | segment | 2 | ||||||
Secured Revolving Credit Facility due May 2023 | Revolving Credit Facility | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, face amount | $ 1,000 | $ 1,000 | |||||
Travel and Membership | |||||||
Background [Line Items] | |||||||
Number of brands | brand | 3 | ||||||
Revolving Credit Facility | Secured Revolving Credit Facility due May 2023 | Revolving Credit Facility | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, face amount | 1,000 | $ 1,000 | |||||
COVID-19 [Member] | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Total COVID-19 Impact | (12) | $ 31 | (28) | 377 | |||
COVID-19 [Member] | Vacation ownership interest sales | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Provision for loan losses | (21) | $ 225 | (47) | 225 | |||
COVID-19 [Member] | Cost/(recovery) of vacation ownership interest [Member] | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Estimated inventory recoveries during the period | (8) | $ 55 | (17) | 55 | |||
COVID-19 [Member] | Travel and Membership | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Total COVID-19 Impact | 0 | $ 11 | 0 | 110 | |||
COVID-19 [Member] | Travel and Membership | Vacation ownership interest sales | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Provision for loan losses | 0 | 0 | 0 | ||||
COVID-19 [Member] | Travel and Membership | Cost/(recovery) of vacation ownership interest [Member] | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Estimated inventory recoveries during the period | $ 0 | $ 0 | $ 0 | ||||
Travel + Leisure | |||||||
Business Acquisition [Line Items] | |||||||
Business Combination, Consideration Transferred | $ 100 | ||||||
Payments to acquire business | $ 35 | $ 20 |
Revenue Recognition (Narrative)
Revenue Recognition (Narrative) (Details) | 9 Months Ended |
Sep. 30, 2021numberOfAssociations | |
Revenue from Contract with Customer [Abstract] | |
Expiration periods for non-cash incentives (or less) | 18 months |
Term of management services agreements (or less) | 1 year |
Fees For Property Management Services, Budgeted Operating Expenses, Percentage | 10.00% |
Managed property owner's associations that paid travel and membership exchange fees | 1 |
Revenue Recognition (Prop Mgmt
Revenue Recognition (Prop Mgmt Rev) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | ||
Disaggregation of Revenue [Line Items] | |||||
Net revenues | [1] | $ 839 | $ 614 | $ 2,264 | $ 1,515 |
Operating Segments | |||||
Disaggregation of Revenue [Line Items] | |||||
Net revenues | 845 | 620 | 2,281 | 1,527 | |
Vacation Ownership | Operating Segments | |||||
Disaggregation of Revenue [Line Items] | |||||
Net revenues | [1] | 660 | 475 | 1,708 | 1,116 |
Management fee revenues | Vacation Ownership | |||||
Disaggregation of Revenue [Line Items] | |||||
Net revenues | [2] | 89 | 83 | 268 | 249 |
Reimbursable revenues | Vacation Ownership | |||||
Disaggregation of Revenue [Line Items] | |||||
Net revenues | [2] | 82 | 63 | 221 | 189 |
Property management fees and reimbursable revenues | Vacation Ownership | Operating Segments | |||||
Disaggregation of Revenue [Line Items] | |||||
Net revenues | [1],[2] | 171 | 146 | 489 | 438 |
Exchange-related revenue | Vacation Ownership | |||||
Disaggregation of Revenue [Line Items] | |||||
Net revenues | $ 9 | $ 7 | $ 23 | $ 20 | |
[1] | This table reflects the reclassification of Extra Holidays from the Vacation Ownership segment into the Travel and Membership segment for all periods presented. Extra Holidays revenue is included within Transaction revenues. | ||||
[2] | Reflects the impact of reclassifying the Extra Holidays business line from the Vacation Ownership segment to Travel and Membership. |
Revenue Recognition (Contract L
Revenue Recognition (Contract Liabilities) (Details) - USD ($) $ in Millions | 9 Months Ended | ||||
Sep. 30, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Dec. 31, 2019 | ||
Disaggregation of Revenue [Line Items] | |||||
Contract liabilities | $ 394 | $ 448 | $ 484 | $ 539 | |
Contract with Customer, Liability, Revenue Recognition Term | 1 year | ||||
Deferred subscription revenue | |||||
Disaggregation of Revenue [Line Items] | |||||
Contract liabilities | $ 170 | 176 | |||
Deferred VOI trial package revenue | |||||
Disaggregation of Revenue [Line Items] | |||||
Contract liabilities | $ 88 | 115 | |||
Deferred VOI trial package revenue | Vacation Ownership | |||||
Disaggregation of Revenue [Line Items] | |||||
Contract with Customer, Liability, Revenue Recognition Term | 1 year | ||||
Deferred exchange-related revenue | |||||
Disaggregation of Revenue [Line Items] | |||||
Contract liabilities | [1] | $ 64 | 59 | ||
Deferred exchange-related revenue | Travel and Membership | |||||
Disaggregation of Revenue [Line Items] | |||||
Contract with Customer, Liability, Revenue Recognition Term | 1 year | ||||
Deferred VOI incentive revenue | |||||
Disaggregation of Revenue [Line Items] | |||||
Contract liabilities | $ 57 | 74 | |||
Deferred co-branded credit card programs revenue | |||||
Disaggregation of Revenue [Line Items] | |||||
Contract liabilities | 13 | 16 | |||
Deferred other revenue | |||||
Disaggregation of Revenue [Line Items] | |||||
Contract liabilities | $ 2 | $ 8 | |||
[1] | Includes contractual liabilities to accommodate members for cancellations initiated by the Company due to unexpected events. These amounts are included within Accrued expenses and other liabilities on the Condensed Consolidated Balance Sheets. |
Revenue Recognition Revenue R_2
Revenue Recognition Revenue Recognition (Contract Liabilities Rollforward) (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Revenue Recognition and Deferred Revenue [Abstract] | ||
Contract liabilities, Beginning Balance | $ 448 | $ 539 |
Contract with Customer, Liability, Additions | 199 | 180 |
Contract with Customer, Liability, Revenue Recognized | (253) | (235) |
Contract liabilities, Ending Balance | $ 394 | $ 484 |
Revenue Recognition (Capitalize
Revenue Recognition (Capitalized Contract Costs) (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2021 | Dec. 31, 2020 | |
Capitalized Contract Cost [Line Items] | ||
Contract with Customer, Liability, Revenue Recognition Term | 1 year | |
Vacation Ownership | ||
Capitalized Contract Cost [Line Items] | ||
Capitalized Contract Cost, Amortization Period | 1 year | |
Other Assets | Vacation Ownership | ||
Capitalized Contract Cost [Line Items] | ||
Capitalized contract costs | $ 29 | $ 41 |
Other Assets | Travel and Membership | ||
Capitalized Contract Cost [Line Items] | ||
Capitalized contract costs | $ 17 | $ 16 |
Revenue Recognition (Performanc
Revenue Recognition (Performance Obligations) (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Dec. 31, 2019 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||||
Contract with Customer, Liability | $ 394 | $ 448 | $ 484 | $ 539 | |
Deferred subscription revenue | |||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||||
Contract with Customer, Liability | 170 | 176 | |||
Deferred VOI trial package revenue | |||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||||
Contract with Customer, Liability | 88 | 115 | |||
Deferred VOI incentive revenue | |||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||||
Contract with Customer, Liability | 57 | 74 | |||
Deferred exchange-related revenue | |||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||||
Contract with Customer, Liability | [1] | 64 | 59 | ||
Deferred co-branded credit card programs revenue | |||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||||
Contract with Customer, Liability | 13 | 16 | |||
Deferred other revenue | |||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||||
Contract with Customer, Liability | 2 | $ 8 | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-10-01 | |||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||||
Remaining performance obligations | $ 310 | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-10-01 | Deferred subscription revenue | |||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||||
Remaining performance obligations | $ 100 | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-10-01 | Deferred VOI trial package revenue | |||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||||
Remaining performance obligations | $ 88 | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-10-01 | Deferred VOI incentive revenue | |||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||||
Remaining performance obligations | $ 57 | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-10-01 | Deferred exchange-related revenue | |||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||||
Remaining performance obligations | $ 60 | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-10-01 | Deferred co-branded credit card programs revenue | |||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||||
Remaining performance obligations | $ 3 | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-10-01 | Deferred other revenue | |||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||||
Remaining performance obligations | $ 2 | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-10-01 | |||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||||
Remaining performance obligations | $ 43 | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-10-01 | Deferred subscription revenue | |||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||||
Remaining performance obligations | $ 37 | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-10-01 | Deferred VOI trial package revenue | |||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||||
Remaining performance obligations | $ 0 | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-10-01 | Deferred VOI incentive revenue | |||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||||
Remaining performance obligations | $ 0 | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-10-01 | Deferred exchange-related revenue | |||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||||
Remaining performance obligations | $ 3 | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-10-01 | Deferred co-branded credit card programs revenue | |||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||||
Remaining performance obligations | $ 3 | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-10-01 | Deferred other revenue | |||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||||
Remaining performance obligations | $ 0 | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-10-01 | |||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||||
Remaining performance obligations | $ 21 | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-10-01 | Deferred subscription revenue | |||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||||
Remaining performance obligations | $ 17 | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-10-01 | Deferred VOI trial package revenue | |||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||||
Remaining performance obligations | $ 0 | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-10-01 | Deferred VOI incentive revenue | |||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||||
Remaining performance obligations | $ 0 | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-10-01 | Deferred exchange-related revenue | |||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||||
Remaining performance obligations | $ 1 | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-10-01 | Deferred co-branded credit card programs revenue | |||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||||
Remaining performance obligations | $ 3 | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-10-01 | Deferred other revenue | |||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||||
Remaining performance obligations | $ 0 | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-10-01 | |||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||||
Remaining performance obligations | $ 20 | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-10-01 | Deferred subscription revenue | |||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||||
Remaining performance obligations | $ 16 | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-10-01 | Deferred VOI trial package revenue | |||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||||
Remaining performance obligations | $ 0 | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-10-01 | Deferred VOI incentive revenue | |||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||||
Remaining performance obligations | $ 0 | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-10-01 | Deferred exchange-related revenue | |||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||||
Remaining performance obligations | $ 0 | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-10-01 | Deferred co-branded credit card programs revenue | |||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||||
Remaining performance obligations | $ 4 | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-10-01 | Deferred other revenue | |||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||||
Remaining performance obligations | $ 0 | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year | ||||
[1] | Includes contractual liabilities to accommodate members for cancellations initiated by the Company due to unexpected events. These amounts are included within Accrued expenses and other liabilities on the Condensed Consolidated Balance Sheets. |
Revenue Recognition Revenue R_3
Revenue Recognition Revenue Recognition (Disaggregation of Net Revenues) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2021 | Sep. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | ||
Disaggregation of Revenue [Line Items] | ||||||
Net revenues | [1] | $ 839 | $ 614 | $ 2,264 | $ 1,515 | |
Provision for loan losses | 120 | 391 | ||||
Operating Segments | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Net revenues | 845 | 620 | 2,281 | 1,527 | ||
Corporate and other | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Net revenues | [1],[2] | (6) | (6) | (17) | (12) | |
Corporate and other | Eliminations | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Net revenues | [1] | (6) | (6) | (17) | (12) | |
Vacation Ownership | Operating Segments | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Net revenues | [1] | 660 | 475 | 1,708 | 1,116 | |
Vacation Ownership | Operating Segments | Vacation Ownership Interest Sales [Member] | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Net revenues | [1],[3] | 344 | 196 | 810 | 273 | |
Vacation Ownership | Operating Segments | Property management fees and reimbursable revenues | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Net revenues | [1],[4] | 171 | 146 | 489 | 438 | |
Vacation Ownership | Operating Segments | Consumer financing | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Net revenues | [1] | 103 | 115 | 304 | 360 | |
Vacation Ownership | Operating Segments | Fee-for-Service commissions | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Net revenues | [1] | 28 | 6 | 69 | 10 | |
Vacation Ownership | Operating Segments | Ancillary revenues | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Net revenues | [1] | 14 | 12 | 36 | 35 | |
Travel and Membership | Operating Segments | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Net revenues | [1] | 185 | 145 | 573 | 411 | |
Travel and Membership | Operating Segments | Transaction revenues | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Net revenues | [1] | 133 | 86 | 418 | 227 | |
Travel and Membership | Operating Segments | Subscription revenue | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Net revenues | [1] | 43 | 43 | 127 | 120 | |
Travel and Membership | Operating Segments | Ancillary revenues | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Net revenues | [1] | 9 | $ 16 | 28 | 64 | |
Vacation Ownership Interest Sales [Member] | COVID-19 [Member] | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Provision for loan losses | (21) | $ 225 | (47) | 225 | ||
Vacation Ownership Interest Sales [Member] | Vacation Ownership | COVID-19 [Member] | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Provision for loan losses | (21) | (47) | 225 | |||
Vacation Ownership Interest Sales [Member] | Travel and Membership | COVID-19 [Member] | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Provision for loan losses | $ 0 | $ 0 | $ 0 | |||
[1] | This table reflects the reclassification of Extra Holidays from the Vacation Ownership segment into the Travel and Membership segment for all periods presented. Extra Holidays revenue is included within Transaction revenues. | |||||
[2] | Includes the elimination of transactions between segments. | |||||
[3] | The Company recorded a COVID-19 related provision for loan losses of $225 million in the first quarter of 2020, due to an expected increase in defaults driven by higher unemployment associated with COVID-19, which is reflected as a reduction to Vacation ownership interest sales on the Condensed Consolidated Statements of Income/(Loss) during the nine months ended September 30, 2020. During 2021, the Company analyzed the adequacy of this COVID-19 related allowance consistent with past methodology, resulting in a $21 million and $47 million release which is reflected as an increase in Vacation ownership interest sales on the Condensed Consolidated Statements of Income/(Loss) during the three and nine months ended September 30, 2021. | |||||
[4] | Reflects the impact of reclassifying the Extra Holidays business line from the Vacation Ownership segment to Travel and Membership. |
Earnings_(Loss) Per Share (Comp
Earnings/(Loss) Per Share (Computation Of Basic And Diluted EPS) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||
Net income/(loss) from continuing operations attributable to Travel + Leisure Co. shareholders | $ 101 | $ 40 | $ 203 | $ (258) | |
Loss on disposal of discontinued business, net of income taxes | 0 | 0 | (2) | 0 | |
Net income/(loss) attributable to Travel + Leisure Co. shareholders | $ 101 | $ 40 | $ 201 | $ (258) | |
Basic earnings/(loss) per share | |||||
Continuing operations | [1] | $ 1.16 | $ 0.47 | $ 2.35 | $ (3) |
Discontinued operations | [1] | 0 | 0 | (0.02) | 0 |
Basic earnings/(loss) per share | [1] | 1.16 | 0.47 | 2.33 | (3) |
Diluted earnings/(loss) per share | |||||
Continuing operations | [1] | 1.15 | 0.47 | 2.33 | (3) |
Discontinued operations | [1] | 0 | 0 | (0.03) | 0 |
Diluted earnings/(loss) per share | [1] | $ 1.15 | $ 0.47 | $ 2.30 | $ (3) |
Basic weighted average shares outstanding (in shares) | 86.6 | 85.9 | 86.5 | 86.1 | |
Stock-settled appreciation rights (“SSARs”), RSUs and PSUs (in shares) | [2],[3],[4] | 0.8 | 0.2 | 0.8 | 0 |
Diluted weighted average shares outstanding (in shares) | [5] | 87.4 | 86.1 | 87.3 | 86.1 |
Earnings Per Share, Basic and Diluted, Other Disclosures [Abstract] | |||||
Aggregate dividends paid to shareholders | $ 26 | $ 26 | $ 79 | $ 112 | |
Restricted Stock Units (RSUs) | |||||
Earnings Per Share, Basic and Diluted, Other Disclosures [Abstract] | |||||
Shares excluded from computation of diluted EPS (in shares) | 0.4 | 1 | 0.3 | 1.1 | |
Restricted Stock Units (RSUs) | Dilutive Outside Loss Position | |||||
Earnings Per Share, Basic and Diluted, Other Disclosures [Abstract] | |||||
Shares excluded from computation of diluted EPS (in shares) | 0.1 | ||||
Performance Shares [Member] | |||||
Earnings Per Share, Basic and Diluted, Other Disclosures [Abstract] | |||||
Shares excluded from computation of diluted EPS (in shares) | 0.4 | 0.3 | 0.4 | 0.3 | |
Share-based Payment Arrangement, Option [Member] | |||||
Earnings Per Share, Basic and Diluted, Other Disclosures [Abstract] | |||||
Shares excluded from computation of diluted EPS (in shares) | 1.4 | 2.3 | 1.4 | 2.1 | |
[1] | Earnings/(loss) per share amounts are calculated using whole numbers. | ||||
[2] | Excludes 0.4 million and 0.3 million of anti-dilutive restricted stock units (“RSUs”) for the three and nine months ended September 30, 2021. Excludes 1.0 million and 1.1 million of anti-dilutive RSUs for the three and nine months ended September 30, 2020, of which 0.1 million would have been dilutive for the nine months ended September 30, 2020 had the Company not been in a net loss position during the period. These shares could potentially dilute EPS in the future. | ||||
[3] | Excludes 1.4 million of outstanding non-qualified stock option (“NQs”) awards that would have been anti-dilutive to EPS for both the three and nine months ended September 30, 2021. Excludes 2.3 million and 2.1 million of outstanding NQ awards that would have been anti-dilutive to EPS for the three and nine months ended September 30, 2020. These outstanding stock option awards could potentially dilute EPS in the future | ||||
[4] | Excludes performance-vested restricted stock units (“PSUs”) of 0.4 million for both the three and nine months ended September 30, 2021, as the Company had not met the required performance metrics. Excludes 0.3 million PSUs for both the three and nine months ended September 30, 2020, as the Company has not met the required performance metrics. These PSUs could potentially dilute EPS in the future. | ||||
[5] | The dilutive impact of the Company’s potential common stock is computed utilizing the treasury stock method using average market prices during the period. |
Earnings_(Loss) Per Share (Curr
Earnings/(Loss) Per Share (Current Stock Repurchase Program) (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2021USD ($)shares | |
Stock Repurchase Activity [Roll Forward] | |
As of December 31, 2020 | shares | 135,824,676 |
As of September 30, 2021 | shares | 135,824,676 |
Stock Repurchase Program [Member] | |
Stock Repurchase Activity [Roll Forward] | |
As of December 31, 2020 | shares | 111,300,000 |
Repurchases | shares | 0 |
As of September 30, 2021 | shares | 111,300,000 |
As of December 31, 2020 | $ | $ 5,727 |
Cost of repurchases | $ | 0 |
As of September 30, 2021 | $ | 5,727 |
Proceeds from Stock Options Exercised | $ | 4 |
Remaining authorized amount under share repurchases | $ | $ 354 |
Acquisitions Narrative (Details
Acquisitions Narrative (Details) - USD ($) $ / shares in Units, $ in Millions | Jan. 05, 2021 | Aug. 07, 2019 | Sep. 30, 2021 | Jun. 30, 2021 | Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 |
Business Acquisition [Line Items] | |||||||
Payments to acquire business | $ 37 | $ 0 | |||||
Travel + Leisure | |||||||
Business Acquisition [Line Items] | |||||||
Business Combination, Consideration Transferred | $ 100 | ||||||
Payments to acquire business | $ 35 | $ 20 | |||||
Alliance Reservations Network | Travel and Membership | |||||||
Business Acquisition [Line Items] | |||||||
Business Combination, Consideration Transferred | $ 102 | ||||||
Payments to acquire business | $ 11 | $ 70 | |||||
business combination, consideration transferred, net of cash acquired | $ 97 | ||||||
Business Acquisition, Equity Interest Issued or Issuable, Value Assigned | $ 24 | $ 24 | $ 24 | ||||
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares | 721,450 | ||||||
Business Acquisition, Share Price | $ 32.51 | $ 32.51 | $ 32.51 | ||||
Business Combination, Contingent Consideration, Liability, Noncurrent | $ 10 | $ 10 | $ 10 |
Discontinued Operations and Dis
Discontinued Operations and Disposal Groups (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Loss on disposal of discontinued business, net of income taxes | $ 0 | $ 0 | $ (2) | $ 0 |
Discontinued Operations | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Loss on disposal of discontinued business, net of income taxes | $ (2) |
Vacation Ownership Contract R_4
Vacation Ownership Contract Receivables (Current And Long-Term Vacation Ownership Contract Receivables) (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Dec. 31, 2019 | |
Accounts, Notes, Loans and Financing Receivables [Line Items] | |||||
Vacation ownership contract receivables, gross | [1] | $ 2,857 | $ 3,175 | ||
Financing Receivable, Allowance for Credit Loss | 565 | 693 | $ 788 | $ 747 | |
Vacation ownership contract receivables, net | 2,292 | 2,482 | |||
Securitized | |||||
Accounts, Notes, Loans and Financing Receivables [Line Items] | |||||
Vacation ownership contract receivables, gross | [2] | 2,136 | 2,458 | ||
Securitized | Trade Accounts Receivable | |||||
Accounts, Notes, Loans and Financing Receivables [Line Items] | |||||
Interest receivables on securitized contract receivables | 17 | 23 | |||
Non-securitized | |||||
Accounts, Notes, Loans and Financing Receivables [Line Items] | |||||
Vacation ownership contract receivables, gross | [3] | 721 | 717 | ||
Non-securitized | Trade Accounts Receivable | |||||
Accounts, Notes, Loans and Financing Receivables [Line Items] | |||||
Interest receivables on securitized contract receivables | $ 5 | $ 9 | |||
[1] | Includes contracts under temporary deferment (up to 180 days). As of September 30, 2021 and December 31, 2020, contracts under deferment total $9 million and $37 million. | ||||
[2] | Excludes $17 million and $23 million of accrued interest on securitized VOCRs as of September 30, 2021 and December 31, 2020, which are included in Trade receivables, net on the Condensed Consolidated Balance Sheets. | ||||
[3] | Excludes $5 million and $9 million of accrued interest on non-securitized VOCRs as of September 30, 2021 and December 31, 2020, which are included in Trade receivables, net on the Condensed Consolidated Balance Sheets. |
Vacation Ownership Contract R_5
Vacation Ownership Contract Receivables (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2021 | Sep. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Loans and Leases Receivable Disclosure [Line Items] | ||||||
Interest income on securitized receivables | $ 76 | $ 92 | $ 232 | $ 303 | ||
Originated vacation ownership contract receivables | 544 | 338 | ||||
Vacation ownership contract principal collections | $ 604 | 543 | ||||
Weighted average interest rate | 14.50% | 14.50% | 14.40% | |||
Provision for Loan, Lease, and Other Losses | $ 49 | $ 45 | $ 120 | 391 | ||
Provision for loan losses | $ 120 | 391 | ||||
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 Interest Sales [Member] | COVID-19 [Member] | ||||||
Loans and Leases Receivable Disclosure [Line Items] | ||||||
Provision for loan losses | (21) | $ 225 | $ (47) | 225 | ||
Cost/(recovery) of vacation ownership interest [Member] | COVID-19 [Member] | ||||||
Loans and Leases Receivable Disclosure [Line Items] | ||||||
Estimated inventory recoveries during the period | $ (8) | $ 55 | $ (17) | $ 55 |
Vacation Ownership Contract R_6
Vacation Ownership Contract Receivables (Allowance For Loan Losses On Vacation Ownership Contract Receivables) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Allowance for Loan Losses [Roll Forward] | ||||
Financing Receivable, Allowance for Credit Loss, Beginning Balance | $ 693 | $ 747 | ||
Provision for loan losses | $ 49 | $ 45 | 120 | 391 |
Contract receivables write-offs, net | (248) | (350) | ||
Financing Receivable, Allowance for Credit Loss, Ending Balance | $ 565 | $ 788 | $ 565 | $ 788 |
Vacation Ownership Contract R_7
Vacation Ownership Contract Receivables (Summary Of The Aged Analysis Of Financing Receivables Using The Most Recently Updated FICO Scores) (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 | |
Financing Receivables, Recorded Investment [Line Items] | |||
Vacation ownership contract receivables, gross | [1] | $ 2,857 | $ 3,175 |
Vacation ownership contract receivable, under temporary deferment | 9 | 37 | |
FICO Score, Greater than 700 [Member] | |||
Financing Receivables, Recorded Investment [Line Items] | |||
Vacation ownership contract receivables, gross | [1] | 1,671 | 1,751 |
FICO Score, 600 to 699 [Member] | |||
Financing Receivables, Recorded Investment [Line Items] | |||
Vacation ownership contract receivables, gross | [1] | 796 | 894 |
Less than 600 | |||
Financing Receivables, Recorded Investment [Line Items] | |||
Vacation ownership contract receivables, gross | [1] | 133 | 199 |
No Score | |||
Financing Receivables, Recorded Investment [Line Items] | |||
Vacation ownership contract receivables, gross | [1] | 79 | 106 |
Asia Pacific | |||
Financing Receivables, Recorded Investment [Line Items] | |||
Vacation ownership contract receivables, gross | [1] | 178 | 225 |
Current | |||
Financing Receivables, Recorded Investment [Line Items] | |||
Vacation ownership contract receivables, gross | 2,754 | 3,018 | |
Current | FICO Score, Greater than 700 [Member] | |||
Financing Receivables, Recorded Investment [Line Items] | |||
Vacation ownership contract receivables, gross | 1,639 | 1,706 | |
Current | FICO Score, 600 to 699 [Member] | |||
Financing Receivables, Recorded Investment [Line Items] | |||
Vacation ownership contract receivables, gross | 756 | 835 | |
Current | Less than 600 | |||
Financing Receivables, Recorded Investment [Line Items] | |||
Vacation ownership contract receivables, gross | 108 | 160 | |
Current | No Score | |||
Financing Receivables, Recorded Investment [Line Items] | |||
Vacation ownership contract receivables, gross | 75 | 96 | |
Current | Asia Pacific | |||
Financing Receivables, Recorded Investment [Line Items] | |||
Vacation ownership contract receivables, gross | 176 | 221 | |
31 - 60 days | |||
Financing Receivables, Recorded Investment [Line Items] | |||
Vacation ownership contract receivables, gross | 49 | 64 | |
31 - 60 days | FICO Score, Greater than 700 [Member] | |||
Financing Receivables, Recorded Investment [Line Items] | |||
Vacation ownership contract receivables, gross | 16 | 20 | |
31 - 60 days | FICO Score, 600 to 699 [Member] | |||
Financing Receivables, Recorded Investment [Line Items] | |||
Vacation ownership contract receivables, gross | 20 | 25 | |
31 - 60 days | Less than 600 | |||
Financing Receivables, Recorded Investment [Line Items] | |||
Vacation ownership contract receivables, gross | 10 | 13 | |
31 - 60 days | No Score | |||
Financing Receivables, Recorded Investment [Line Items] | |||
Vacation ownership contract receivables, gross | 2 | 4 | |
31 - 60 days | Asia Pacific | |||
Financing Receivables, Recorded Investment [Line Items] | |||
Vacation ownership contract receivables, gross | 1 | 2 | |
61 - 90 days | |||
Financing Receivables, Recorded Investment [Line Items] | |||
Vacation ownership contract receivables, gross | 27 | 47 | |
61 - 90 days | FICO Score, Greater than 700 [Member] | |||
Financing Receivables, Recorded Investment [Line Items] | |||
Vacation ownership contract receivables, gross | 8 | 13 | |
61 - 90 days | FICO Score, 600 to 699 [Member] | |||
Financing Receivables, Recorded Investment [Line Items] | |||
Vacation ownership contract receivables, gross | 11 | 18 | |
61 - 90 days | Less than 600 | |||
Financing Receivables, Recorded Investment [Line Items] | |||
Vacation ownership contract receivables, gross | 6 | 12 | |
61 - 90 days | No Score | |||
Financing Receivables, Recorded Investment [Line Items] | |||
Vacation ownership contract receivables, gross | 1 | 3 | |
61 - 90 days | Asia Pacific | |||
Financing Receivables, Recorded Investment [Line Items] | |||
Vacation ownership contract receivables, gross | 1 | 1 | |
91 - 120 days | |||
Financing Receivables, Recorded Investment [Line Items] | |||
Vacation ownership contract receivables, gross | 27 | 46 | |
91 - 120 days | FICO Score, Greater than 700 [Member] | |||
Financing Receivables, Recorded Investment [Line Items] | |||
Vacation ownership contract receivables, gross | 8 | 12 | |
91 - 120 days | FICO Score, 600 to 699 [Member] | |||
Financing Receivables, Recorded Investment [Line Items] | |||
Vacation ownership contract receivables, gross | 9 | 16 | |
91 - 120 days | Less than 600 | |||
Financing Receivables, Recorded Investment [Line Items] | |||
Vacation ownership contract receivables, gross | 9 | 14 | |
91 - 120 days | No Score | |||
Financing Receivables, Recorded Investment [Line Items] | |||
Vacation ownership contract receivables, gross | 1 | 3 | |
91 - 120 days | Asia Pacific | |||
Financing Receivables, Recorded Investment [Line Items] | |||
Vacation ownership contract receivables, gross | $ 0 | $ 1 | |
[1] | Includes contracts under temporary deferment (up to 180 days). As of September 30, 2021 and December 31, 2020, contracts under deferment total $9 million and $37 million. |
Vacation Ownership Contract R_8
Vacation Ownership Contract Receivables Vacation Ownership Contract Receivables (Year of Origination) (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 | |
Financing Receivable, Origination [Line Items] | |||
Financing Receivable, Year One, Originated, Current Fiscal Year | $ 604 | $ 680 | |
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year | 451 | 909 | |
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year | 652 | 629 | |
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year | 456 | 404 | |
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year | 302 | 233 | |
Financing Receivable, Originated, More than Five Years before Current Fiscal Year | 392 | 320 | |
Vacation ownership contract receivables, gross | [1] | 2,857 | 3,175 |
FICO Score, Greater than 700 [Member] | |||
Financing Receivable, Origination [Line Items] | |||
Financing Receivable, Year One, Originated, Current Fiscal Year | 406 | 424 | |
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year | 259 | 476 | |
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year | 363 | 339 | |
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year | 257 | 220 | |
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year | 172 | 128 | |
Financing Receivable, Originated, More than Five Years before Current Fiscal Year | 214 | 164 | |
Vacation ownership contract receivables, gross | [1] | 1,671 | 1,751 |
FICO Score, 600 to 699 [Member] | |||
Financing Receivable, Origination [Line Items] | |||
Financing Receivable, Year One, Originated, Current Fiscal Year | 157 | 173 | |
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year | 125 | 269 | |
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year | 190 | 183 | |
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year | 129 | 115 | |
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year | 85 | 63 | |
Financing Receivable, Originated, More than Five Years before Current Fiscal Year | 110 | 91 | |
Vacation ownership contract receivables, gross | [1] | 796 | 894 |
Less than 600 | |||
Financing Receivable, Origination [Line Items] | |||
Financing Receivable, Year One, Originated, Current Fiscal Year | 5 | 11 | |
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year | 19 | 67 | |
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year | 41 | 50 | |
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year | 29 | 31 | |
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year | 17 | 16 | |
Financing Receivable, Originated, More than Five Years before Current Fiscal Year | 22 | 24 | |
Vacation ownership contract receivables, gross | [1] | 133 | 199 |
No Score | |||
Financing Receivable, Origination [Line Items] | |||
Financing Receivable, Year One, Originated, Current Fiscal Year | 7 | 17 | |
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year | 6 | 27 | |
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year | 21 | 21 | |
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year | 15 | 16 | |
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year | 12 | 10 | |
Financing Receivable, Originated, More than Five Years before Current Fiscal Year | 18 | 15 | |
Vacation ownership contract receivables, gross | [1] | 79 | 106 |
Asia Pacific | |||
Financing Receivable, Origination [Line Items] | |||
Financing Receivable, Year One, Originated, Current Fiscal Year | 29 | 55 | |
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year | 42 | 70 | |
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year | 37 | 36 | |
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year | 26 | 22 | |
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year | 16 | 16 | |
Financing Receivable, Originated, More than Five Years before Current Fiscal Year | 28 | 26 | |
Vacation ownership contract receivables, gross | [1] | $ 178 | $ 225 |
[1] | Includes contracts under temporary deferment (up to 180 days). As of September 30, 2021 and December 31, 2020, contracts under deferment total $9 million and $37 million. |
Inventory (Summary of Inventory
Inventory (Summary of Inventory) (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
Inventory Disclosure [Abstract] | ||
Completed VOI inventory | $ 1,021 | $ 1,049 |
Estimated VOI recoveries, net | 204 | 246 |
VOI construction in process | 27 | 30 |
Inventory sold subject to repurchase | 13 | 13 |
Vacation exchange credits and other | 4 | 8 |
Land held for VOI development | 1 | 1 |
Total inventory | $ 1,270 | $ 1,347 |
Inventory (Narrative) (Details)
Inventory (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2013 | |
Inventory [Line Items] | ||||||
Inventory transferred to Property and Equipment | $ 56 | $ 28 | ||||
COVID-19 [Member] | ||||||
Inventory [Line Items] | ||||||
Exchange inventory write-off | $ 0 | $ 10 | 0 | 48 | ||
Las Vegas, Nevada Inventory Sales [Member] | Maximum [Member] | ||||||
Inventory [Line Items] | ||||||
Long-term Purchase Commitment, Amount | $ 65 | |||||
Vacation Ownership Inventory Sales | ||||||
Inventory [Line Items] | ||||||
Gain (Loss) on Sale of Properties | $ 0 | |||||
Operating Expense [Member] | COVID-19 [Member] | ||||||
Inventory [Line Items] | ||||||
Exchange inventory write-off | $ 10 | $ 38 | $ 48 |
Inventory (Activity Related to
Inventory (Activity Related to Inventory Obligations) (Details) - USD ($) $ in Millions | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | ||
Inventory [Line Items] | |||
Total Inventory obligations, Beginning Balance | $ 83 | $ 49 | |
Purchases | 83 | 183 | |
Payments | (124) | (144) | |
Total Inventory obligations, Ending Balance | 42 | 88 | |
Las Vegas, Nevada Inventory Sales [Member] | |||
Inventory [Line Items] | |||
Inventory Sold Under Agreement to Repurchase, Repurchase Liability, Beginning Balance | [1] | 13 | 43 |
Purchases | [1] | 2 | 15 |
Payments | [1] | (2) | (39) |
Inventory Sold Under Agreement to Repurchase, Repurchase Liability, Ending Balance | [1] | 13 | 19 |
Moab | |||
Inventory [Line Items] | |||
Inventory Sold Under Agreement to Repurchase, Repurchase Liability, Beginning Balance | [1] | 31 | 0 |
Purchases | [1] | 25 | 37 |
Payments | [1] | (56) | 0 |
Inventory Sold Under Agreement to Repurchase, Repurchase Liability, Ending Balance | [1] | 0 | 37 |
Orlando | |||
Inventory [Line Items] | |||
Inventory Sold Under Agreement to Repurchase, Repurchase Liability, Beginning Balance | [1] | 22 | 0 |
Purchases | [1] | 1 | 44 |
Payments | [1] | (5) | (22) |
Inventory Sold Under Agreement to Repurchase, Repurchase Liability, Ending Balance | [1] | 18 | 22 |
Other Inventory Sales | |||
Inventory [Line Items] | |||
Other inventory obligations, Beginning Balance | [2] | 17 | 6 |
Purchases | [2] | 55 | 87 |
Payments | [2] | (61) | (83) |
Other inventory obligations, Ending Balance | [2] | $ 11 | $ 10 |
[1] | Included in Accrued expenses and other liabilities on the Condensed Consolidated Balance Sheets. | ||
[2] | Included in Accounts payable on the Condensed Consolidated Balance Sheets. |
Property and equipment (Details
Property and equipment (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | $ 1,622 | $ 1,548 |
Property, Plant, and Equipment and Finance Lease Right-of-Use Asset, Accumulated Depreciation and Amortization | 944 | 882 |
Property and equipment, net | 678 | 666 |
Capitalized software | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 714 | 694 |
Building and leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 636 | 591 |
Furniture, fixtures and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 207 | 207 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 30 | 30 |
Construction in progress | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 18 | 12 |
Finance leases | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | $ 17 | $ 14 |
Debt (Schedule of Long-term Deb
Debt (Schedule of Long-term Debt Instruments) (Details) $ in Millions, $ in Millions, $ in Millions | 9 Months Ended | 12 Months Ended | |||||||
Sep. 30, 2021USD ($) | Dec. 31, 2020USD ($) | Sep. 30, 2021AUD ($) | Sep. 30, 2021NZD ($) | Apr. 27, 2021AUD ($) | Apr. 27, 2021NZD ($) | Mar. 31, 2021AUD ($) | |||
Debt Instrument [Line Items] | |||||||||
Finance leases | $ 7 | ||||||||
Long-term Debt | 5,343 | ||||||||
USD bank conduit facility (due August 2021) [Member] | Revolving Credit Facility | |||||||||
Debt Instrument [Line Items] | |||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 800 | ||||||||
$300 million secured term loan B (due May 2025) | Term Loan B [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Weighted average coupon rate | 2.39% | 2.93% | |||||||
5.625% Secured Notes Due March 2021 [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt Instrument, Interest Rate, Stated Percentage | 5.625% | 5.625% | 5.625% | ||||||
4.25% Secured Notes Due March 2022 [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt Instrument, Interest Rate, Stated Percentage | 4.25% | 4.25% | 4.25% | ||||||
3.90% Secured Notes (Due March 2023) [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt Instrument, Interest Rate, Stated Percentage | 3.90% | 3.90% | 3.90% | ||||||
5.40% Secured Notes (Due April 2024) [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt Instrument, Interest Rate, Stated Percentage | 5.40% | 5.40% | 5.40% | ||||||
6.60% secured notes due October 2025 [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt Instrument, Interest Rate, Stated Percentage | 6.60% | 6.60% | 6.60% | ||||||
6.625% Senior Secured Notes Due July 2026 [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt Instrument, Interest Rate, Stated Percentage | 6.625% | 6.625% | 6.625% | ||||||
6.00% secured notes due April 2027 [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt Instrument, Interest Rate, Stated Percentage | 6.00% | 6.00% | 6.00% | ||||||
4.625% Secured notes due March 2030 [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt Instrument, Interest Rate, Stated Percentage | 4.625% | 4.625% | 4.625% | ||||||
Term Notes [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt financing cost | $ 16 | $ 21 | |||||||
Term Notes [Member] | Term Notes [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Non-recourse vacation ownership debt (VIE) | [1],[2] | 1,505 | 1,893 | ||||||
Non-recourse bank conduit facility [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Non-recourse vacation ownership debt (VIE) | [3] | 452 | |||||||
Line of Credit Facility, Maximum Borrowing Capacity | [3] | 1,017 | |||||||
Non-recourse bank conduit facility [Member] | USD bank conduit facility (due August 2021) [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Non-recourse vacation ownership debt (VIE) | [1] | 314 | 168 | ||||||
Debt instrument, face amount | 800 | ||||||||
Non-recourse bank conduit facility [Member] | AUD/NZD bank conduit Facility (due September 2021) [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Non-recourse vacation ownership debt (VIE) | [1],[4] | 138 | 173 | ||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 250 | $ 48 | $ 250 | $ 48 | $ 255 | ||||
Non-Recourse Vacation Ownership Debt [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Non-recourse vacation ownership debt (VIE) | [1] | 1,957 | 2,234 | ||||||
Long-term Debt | 1,957 | ||||||||
Long-term vacation ownership contract receivables | 2,250 | 2,570 | |||||||
Revolving Credit Facility | Secured Revolving Credit Facility due May 2023 | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument, face amount | 1,000 | ||||||||
Revolving Credit Facility | Secured Revolving Credit Facility due May 2023 | Revolving Credit Facility | |||||||||
Debt Instrument [Line Items] | |||||||||
Revolving credit facility | [5],[7] | 0 | [6] | $ 547 | |||||
Line of Credit Facility, Maximum Borrowing Capacity | [6] | $ 1,000 | |||||||
Weighted average coupon rate | 3.19% | 3.02% | |||||||
Debt instrument, face amount | $ 1,000 | ||||||||
Debt | |||||||||
Debt Instrument [Line Items] | |||||||||
Long-term Debt | [7] | 3,386 | $ 4,184 | ||||||
Debt financing cost | 6 | 7 | |||||||
Unamortized discount | 14 | 16 | |||||||
Debt | $300 million secured term loan B (due May 2025) | Term Loan B [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt | [7],[8] | 289 | 291 | ||||||
Debt instrument, face amount | 300 | ||||||||
Debt | 5.625% Secured Notes Due March 2021 [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Senior notes | [7] | 0 | 250 | ||||||
Debt instrument, face amount | 250 | ||||||||
Debt | 4.25% Secured Notes Due March 2022 [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Senior notes | [7],[9] | 650 | 650 | ||||||
Unamortized (gains)/losses from the settlement of a derivative | (1) | (1) | |||||||
Debt instrument, face amount | 650 | ||||||||
Debt | 3.90% Secured Notes (Due March 2023) [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Senior notes | [7],[10] | 402 | 402 | ||||||
Unamortized (gains)/losses from the settlement of a derivative | (2) | (3) | |||||||
Debt instrument, face amount | 400 | ||||||||
Debt | 5.40% Secured Notes (Due April 2024) [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Senior notes | [7] | 299 | 299 | ||||||
Debt instrument, face amount | 300 | ||||||||
Debt | 6.60% secured notes due October 2025 [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Senior notes | [7],[11] | 345 | 344 | ||||||
Unamortized (gains)/losses from the settlement of a derivative | 4 | 5 | |||||||
Debt instrument, face amount | 350 | ||||||||
Debt | 6.625% Senior Secured Notes Due July 2026 [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Senior notes | [7] | 642 | 641 | ||||||
Debt instrument, face amount | 650 | ||||||||
Debt | 6.00% secured notes due April 2027 [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Senior notes | [7],[12] | 407 | 408 | ||||||
Unamortized (gains)/losses from the settlement of a derivative | (10) | (11) | |||||||
Debt instrument, face amount | 400 | ||||||||
Debt | 4.625% Secured notes due March 2030 [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Senior notes | [7] | 345 | 345 | ||||||
Debt instrument, face amount | 350 | ||||||||
Debt | Finance leases [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Finance leases | [7] | $ 7 | $ 7 | ||||||
[1] | 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 (which legally are not liabilities of the Company) are collateralized by $2.25 billion and $2.57 billion of underlying gross VOCRs and related assets (which legally are not assets of the Company) as of September 30, 2021 and December 31, 2020. | ||||||||
[2] | The carrying amounts of the term notes are net of deferred financing costs of $16 million and $21 million as of September 30, 2021 and December 31, 2020. (c) The Company has a borrowing capacity of $800 million under the USD bank conduit facility through October 2022. Borrowings under this facility are required to be repaid as the collateralized receivables amortize but no later than November 2023. | ||||||||
[3] | Consists of the Company’s USD bank conduit facility and AUD/NZD bank conduit facility. The capacity of these facilities is subject to the Company’s ability to provide additional assets to collateralize additional non-recourse borrowings. | ||||||||
[4] | The Company has a borrowing capacity of 250 million Australian dollars (“AUD”) and 48 million New Zealand dollars (“NZD”) under the AUD/NZD bank conduit facility through April 2023. Borrowings under this facility are required to be repaid no later than May 2025. | ||||||||
[5] | The weighted average effective interest rate on borrowings from this facility were 3.19% and 3.02% as of September 30, 2021 and December 31, 2020. In late March 2020, the Company drew down its $1.0 billion secured revolving credit facility as a precautionary measure due to COVID-19. As of September 30, 2021, these borrowings have been repaid. On October 22, 2021, the Company renewed this facility, extending the commitment period through October 2026. See Note 25— Subsequent Events for additional details. | ||||||||
[6] | Consists of the Company’s $1.0 billion secured revolving credit facility. | ||||||||
[7] | The carrying amounts of the secured notes and term loan are net of unamortized discounts of $14 million and $16 million as of September 30, 2021 and December 31, 2020, and net of unamortized debt financing costs of $6 million and $7 million as of September 30, 2021 and December 31, 2020. | ||||||||
[8] | The weighted average effective interest rate on borrowings from this facility was 2.39% and 2.93% as of September 30, 2021 and December 31, 2020. | ||||||||
[9] | Includes less than $1 million of unamortized gains from the settlement of a derivative as of September 30, 2021 and December 31, 2020. | ||||||||
[10] | Includes $2 million and $3 million of unamortized gains from the settlement of a derivative as of September 30, 2021 and December 31, 2020. | ||||||||
[11] | Includes $4 million and $5 million of unamortized losses from the settlement of a derivative as of September 30, 2021 and December 31, 2020. | ||||||||
[12] | Includes $10 million and $11 million of unamortized gains from the settlement of a derivative as of September 30, 2021 and December 31, 2020. |
Debt Debt (Narrative) (Details)
Debt Debt (Narrative) (Details) $ in Millions, $ in Millions, $ in Millions | Sep. 30, 2021USD ($) | Sep. 30, 2021AUD ($) | Sep. 30, 2021NZD ($) | Apr. 27, 2021AUD ($) | Apr. 27, 2021NZD ($) | Mar. 31, 2021AUD ($) | Mar. 08, 2021USD ($) | |
Non-recourse bank conduit facility [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Line of Credit Facility, Maximum Borrowing Capacity | [1] | $ 1,017 | ||||||
Sierra Timeshare 2021-1 | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument, face amount | $ 500 | |||||||
Long-term Debt, Percentage Bearing Variable Interest, Percentage Rate | 1.57% | |||||||
Debt Instrument, Advance Rate | 98.00% | |||||||
AUD/NZD bank conduit Facility (due September 2021) [Member] | Non-recourse bank conduit facility [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term Debt, Percentage Bearing Variable Interest, Percentage Rate | 1.65% | 1.65% | ||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 250 | $ 48 | $ 250 | $ 48 | $ 255 | |||
[1] | Consists of the Company’s USD bank conduit facility and AUD/NZD bank conduit facility. The capacity of these facilities is subject to the Company’s ability to provide additional assets to collateralize additional non-recourse borrowings. |
Debt (Summary Of Outstanding De
Debt (Summary Of Outstanding Debt Maturities) (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 | |
Debt Instrument [Line Items] | |||
Within 1 year | $ 948 | ||
Between 1 and 2 years | 891 | ||
Between 2 and 3 years | 494 | ||
Between 3 and 4 years | 472 | ||
Between 4 and 5 years | 1,195 | ||
Thereafter | 1,343 | ||
Total long-term debt | 5,343 | ||
Non-Recourse Vacation Ownership Debt [Member] | |||
Debt Instrument [Line Items] | |||
Within 1 year | 292 | ||
Between 1 and 2 years | 484 | ||
Between 2 and 3 years | 191 | ||
Between 3 and 4 years | 192 | ||
Between 4 and 5 years | 208 | ||
Thereafter | 590 | ||
Total long-term debt | 1,957 | ||
Debt | |||
Debt Instrument [Line Items] | |||
Within 1 year | 656 | ||
Between 1 and 2 years | 407 | ||
Between 2 and 3 years | 303 | ||
Between 3 and 4 years | 280 | ||
Between 4 and 5 years | 987 | ||
Thereafter | 753 | ||
Total long-term debt | [1] | $ 3,386 | $ 4,184 |
[1] | The carrying amounts of the secured notes and term loan are net of unamortized discounts of $14 million and $16 million as of September 30, 2021 and December 31, 2020, and net of unamortized debt financing costs of $6 million and $7 million as of September 30, 2021 and December 31, 2020. |
Debt (Summary Of Available Capa
Debt (Summary Of Available Capacity Under Borrowing Arrangements) (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 | ||
Non-recourse bank conduit facility [Member] | ||||
Debt Instrument [Line Items] | ||||
Total capacity | [1] | $ 1,017 | ||
Less: Outstanding borrowings | [1] | 452 | ||
Letters of Credit Outstanding, Amount | [1] | 0 | ||
Available capacity | [1] | 565 | ||
Revolving Credit Facility | Secured Revolving Credit Facility due May 2023 | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, face amount | 1,000 | |||
Revolving Credit Facility | Revolving Credit Facility | Secured Revolving Credit Facility due May 2023 | ||||
Debt Instrument [Line Items] | ||||
Total capacity | [2] | 1,000 | ||
Less: Outstanding borrowings | [3],[4] | 0 | [2] | $ 547 |
Letters of Credit Outstanding, Amount | [2] | 51 | ||
Available capacity | [2] | 949 | ||
Debt instrument, face amount | $ 1,000 | |||
[1] | Consists of the Company’s USD bank conduit facility and AUD/NZD bank conduit facility. The capacity of these facilities is subject to the Company’s ability to provide additional assets to collateralize additional non-recourse borrowings. | |||
[2] | Consists of the Company’s $1.0 billion secured revolving credit facility. | |||
[3] | The weighted average effective interest rate on borrowings from this facility were 3.19% and 3.02% as of September 30, 2021 and December 31, 2020. In late March 2020, the Company drew down its $1.0 billion secured revolving credit facility as a precautionary measure due to COVID-19. As of September 30, 2021, these borrowings have been repaid. On October 22, 2021, the Company renewed this facility, extending the commitment period through October 2026. See Note 25— Subsequent Events for additional details. | |||
[4] | The carrying amounts of the secured notes and term loan are net of unamortized discounts of $14 million and $16 million as of September 30, 2021 and December 31, 2020, and net of unamortized debt financing costs of $6 million and $7 million as of September 30, 2021 and December 31, 2020. |
Debt (Debt Covenants) (Details)
Debt (Debt Covenants) (Details) $ / shares in Units, $ in Millions | Mar. 02, 2021 | Sep. 30, 2021USD ($)$ / shares | Jun. 30, 2022 | Oct. 22, 2021 | Dec. 31, 2020 |
Debt Instrument [Line Items] | |||||
Maximum leverage ratio | 4.25 | ||||
Minimum interest coverage ratio | 2.5 | ||||
Interest Coverage Ratio | 3.6 | ||||
First Lien Leverage Ratio | 4.2 | 5.4 | |||
Debt | Debt The Company’s indebtedness consisted of (in millions): September 30, December 31, Non-recourse vacation ownership debt : (a) Term notes (b) $ 1,505 $ 1,893 USD bank conduit facility (due October 2022) (c) 314 168 AUD/NZD bank conduit facility (due April 2023) (d) 138 173 Total $ 1,957 $ 2,234 Debt : (e) $1.0 billion secured revolving credit facility (due May 2023) (f) $ — $ 547 $300 million secured term loan B (due May 2025) (g) 289 291 $250 million 5.625% secured notes (due March 2021) — 250 $650 million 4.25% secured notes (due March 2022) (h) 650 650 $400 million 3.90% secured notes (due March 2023) (i) 402 402 $300 million 5.65% secured notes (due April 2024) 299 299 $350 million 6.60% secured notes (due October 2025) (j) 345 344 $650 million 6.625% secured notes (due July 2026) 642 641 $400 million 6.00% secured notes (due April 2027) (k) 407 408 $350 million 4.625% secured notes (due March 2030) 345 345 Finance leases 7 7 Total $ 3,386 $ 4,184 (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 (which legally are not liabilities of the Company) are collateralized by $2.25 billion and $2.57 billion of underlying gross VOCRs and related assets (which legally are not assets of the Company) as of September 30, 2021 and December 31, 2020. (b) The carrying amounts of the term notes are net of deferred financing costs of $16 million and $21 million as of September 30, 2021 and December 31, 2020. (c) The Company has a borrowing capacity of $800 million under the USD bank conduit facility through October 2022. Borrowings under this facility are required to be repaid as the collateralized receivables amortize but no later than November 2023. (d) The Company has a borrowing capacity of 250 million Australian dollars (“AUD”) and 48 million New Zealand dollars (“NZD”) under the AUD/NZD bank conduit facility through April 2023. Borrowings under this facility are required to be repaid no later than May 2025. (e) The carrying amounts of the secured notes and term loan are net of unamortized discounts of $14 million and $16 million as of September 30, 2021 and December 31, 2020, and net of unamortized debt financing costs of $6 million and $7 million as of September 30, 2021 and December 31, 2020. (f) The weighted average effective interest rate on borrowings from this facility were 3.19% and 3.02% as of September 30, 2021 and December 31, 2020. In late March 2020, the Company drew down its $1.0 billion secured revolving credit facility as a precautionary measure due to COVID-19. As of September 30, 2021, these borrowings have been repaid. On October 22, 2021, the Company renewed this facility, extending the commitment period through October 2026. See Note 25— Subsequent Events for additional details. (g) The weighted average effective interest rate on borrowings from this facility was 2.39% and 2.93% as of September 30, 2021 and December 31, 2020. (h) Includes less than $1 million of unamortized gains from the settlement of a derivative as of September 30, 2021 and December 31, 2020. (i) Includes $2 million and $3 million of unamortized gains from the settlement of a derivative as of September 30, 2021 and December 31, 2020. (j) Includes $4 million and $5 million of unamortized losses from the settlement of a derivative as of September 30, 2021 and December 31, 2020. (k) Includes $10 million and $11 million of unamortized gains from the settlement of a derivative as of September 30, 2021 and December 31, 2020. Sierra Timeshare 2021-1 Receivables Funding LLC On March 8, 2021, the Company closed on a placement of a series of term notes payable, issued by Sierra Timeshare 2021-1 Receivables Fundings LLC, with an initial principal amount of $500 million, secured by VOCRs and bearing interest at a weighted average coupon rate of 1.57%. The advance rate for this transaction was 98%. AUD/NZD Bank Conduit Renewal On April 27, 2021, the Company renewed its AUD/NZD timeshare receivables conduit facility, extending the end of the commitment period from September 2021 to April 2023. The renewal includes a reduction of the AUD borrowing capacity from A$255 million to A$250 million, while the NZD capacity remains unchanged at NZ$48 million. The renewal bears interest at variable rates based on the Bank Bill Swap Bid Rate plus 1.65%. Maturities and Capacity The Company’s outstanding debt as of September 30, 2021, matures as follows (in millions): Non-recourse Vacation Ownership Debt Debt Total Within 1 year $ 292 $ 656 $ 948 Between 1 and 2 years 484 407 891 Between 2 and 3 years 191 303 494 Between 3 and 4 years 192 280 472 Between 4 and 5 years 208 987 1,195 Thereafter 590 753 1,343 $ 1,957 $ 3,386 $ 5,343 Required principal payments on the non-recourse vacation ownership debt are based on the contractual repayment terms of the underlying VOCRs. Actual maturities may differ as a result of prepayments by the VOCR obligors. As of September 30, 2021, available capacity under the Company’s borrowing arrangements was as follows (in millions): Non-recourse Conduit Facilities (a) Revolving Credit Facilities (b) Total capacity $ 1,017 $ 1,000 Less: Outstanding borrowings 452 — Less: Letters of credit — 51 Available capacity $ 565 $ 949 (a) Consists of the Company’s USD bank conduit facility and AUD/NZD bank conduit facility. The capacity of these facilities is subject to the Company’s ability to provide additional assets to collateralize additional non-recourse borrowings. (b) Consists of the Company’s $1.0 billion secured revolving credit facility. Debt Covenants The revolving credit facilities and term loan B are subject to covenants including the maintenance of specific financial ratios as defined in the credit agreement. The financial ratio covenants consist of a minimum interest coverage ratio of at least 2.5 to 1.0 as of the measurement date and a maximum first lien leverage ratio not to exceed 4.25 to 1.0 as of the measurement date. The interest coverage ratio is calculated by dividing consolidated EBITDA (as defined in the credit agreement) by consolidated interest expense (as defined in the credit agreement), both as measured on a trailing 12-month basis preceding the measurement date. The first lien leverage ratio is calculated by dividing consolidated first lien debt (as defined in the credit agreement) as of the measurement date by consolidated EBITDA (as defined in the credit agreement) as measured on a trailing 12-month basis preceding the measurement date. On July 15, 2020, the Company entered into an amendment to the Company’s credit agreement governing its revolving credit facility and term loan B (“Credit Agreement Amendment”). The Credit Agreement Amendment established a Relief Period with respect to the Company’s secured revolving credit facility, which commenced on July 15, 2020 and was scheduled to end on April 1, 2022. The Credit Agreement Amendment increased the existing leverage-based financial covenant of 4.25 to 1.0 by varying levels for each applicable quarter during the Relief Period. The maximum first lien leverage ratio for the test period ending September 30, 2021 was 6.75 to 1.0. Beginning in the first quarter of 2021, and extending through the third quarter of 2021, the Credit Agreement Amendment provided that consolidated EBITDA (as defined in the credit agreement), for the purposes of the first lien leverage ratio, was to be measured based on the greater of either a trailing 12-months preceding the measurement date basis or an annualized basis. In addition, the Credit Agreement Amendment, among other changes, increased the interest rate applicable to borrowings under the Company’s secured revolving credit facility utilizing a tiered pricing grid based on the Company’s first lien leverage ratio in any quarter it exceeds 4.25 to 1.0, until the end of the Relief Period; added a new minimum liquidity covenant, tested quarterly until the end of the Relief Period, of (i) $250 million plus (ii) 50% of the aggregate amount of dividends paid after the effective date of the Credit Agreement Amendment and on or prior to the last day of the relevant fiscal quarter; and required the Company to maintain an interest coverage ratio (as defined in the credit agreement) of not less than 2.0 to 1.0. Finally, the Credit Agreement Amendment amended the definition of “Material Adverse Effect” in the credit agreement to take into consideration the impacts of the COVID-19 pandemic during the Relief Period. The Relief Period included certain restrictions on the use of cash including the prohibition of share repurchases. Additionally, the amendment limited the payout of dividends during the Relief Period to not exceed $0.50 per share, the rate in effect prior to the amendment. As of September 30, 2021, the Company’s interest coverage ratio was 3.6 to 1.0 and the first lien leverage ratio was 4.2 to 1.0. These ratios do not include interest expense or indebtedness related to any qualified securitization financing (as defined in the credit agreement). As of September 30, 2021, the Company was in compliance with the financial covenants described above. Under the Credit Agreement Amendment, when the first lien leverage ratio exceeds 4.25 to 1.0, the interest rate on revolver borrowings increases, and the Company is subject to higher fees associated with its letters of credit, both of which are based on a tiered pricing grid. Given the first lien leverage ratio of 5.4 to 1.0 at December 31, 2020, the Company became subject to higher fees associated with letters of credit and the interest rate on the revolver borrowings increased 25 basis points effective March 2, 2021. On October 22, 2021, the Company renewed the credit agreement governing its revolving credit facility and term loan B. This renewal terminated the Relief Period and reestablished the tiered pricing grid that was in place prior to the Credit Agreement Amendment. The interest rate on revolver borrowings and fees associated with letters of credit are subject to future changes based on the Company’s first lien leverage ratio which could serve to further reduce the interest rate if the ratio were to decrease to 3.75 to 1.0 or below. Additionally, the renewal eliminated restrictions regarding share repurchases, dividends, acquisitions, and the Relief Period minimum liquidity covenant. See Note 25— Subsequent Events for additional details. Each of the Company’s non-recourse, securitized term notes, and the bank conduit facilities contain various triggers relating to the performance of the applicable loan pools. If the VOCRs pool that collateralizes one of the Company’s securitization notes fails to perform within the parameters established by the contractual triggers (such as higher default or delinquency rates), there are provisions pursuant to which the cash flows for that pool will be maintained in the securitization as extra collateral for the note holders or applied to accelerate the repayment of outstanding principal to the note holders. As of September 30, 2021, all of the Company’s securitized loan pools were in compliance with applicable contractual triggers. Interest Expense The Company incurred interest expense of $47 million and $147 million during the three and nine months ended September 30, 2021. Such amounts consisted primarily of interest on debt, excluding non-recourse vacation ownership debt, and included an offset of less than $1 million of capitalized interest during both the three and nine months ended September 30, 2021. Cash paid related to such interest was $160 million during the nine months ended September 30, 2021. The Company incurred interest expense of $52 million and $138 million during the three and nine months ended September 30, 2020. Such amounts consisted primarily of interest on debt, excluding non-recourse vacation ownership debt, and included an offset of less than $1 million and $1 million of capitalized interest during the three and nine months ended September 30, 2020. Cash paid related to such interest was $126 million during the nine months ended September 30, 2020. Interest expense incurred in connection with the Company’s non-recourse vacation ownership debt was $19 million and $63 million during the three and nine months ended September 30, 2021, and $26 million and $76 million during the three and nine months ended September 30, 2020, and is recorded within Consumer financing interest on the Condensed Consolidated Statements of Income/(Loss). Cash paid related to such interest was $44 million and $56 million for the nine months ended September 30, 2021 and 2020. | ||||
Subsequent Event [Member] | |||||
Debt Instrument [Line Items] | |||||
Maximum leverage ratio | 4.25 | 4.75 | |||
Minimum interest coverage ratio | 2.5 | ||||
Maximum [Member] | Subsequent Event [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Covenant, Leverage Ratio, Tier | 3.75 | ||||
Secured Revolving Credit Facility due May 2023 | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Interest Rate, Increase (Decrease) | 0.25% | ||||
Relief Period [Member] | |||||
Debt Instrument [Line Items] | |||||
Maximum leverage ratio | 6.75 | ||||
Minimum interest coverage ratio | 2 | ||||
Debt instrument, Covenant, Liquidity base | $ | $ 250 | ||||
Debt instrument, Covenant, Liquidity dividend spread | 50.00% | ||||
Relief Period [Member] | Maximum [Member] | |||||
Debt Instrument [Line Items] | |||||
Dividends Payable, Amount Per Share | $ / shares | $ 0.50 |
Debt (Interest Expense Narrativ
Debt (Interest Expense Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Debt Instrument [Line Items] | ||||
Interest expense | $ 47 | $ 52 | $ 147 | $ 138 |
Capitalized Interest Costs, Including Allowance for Funds Used During Construction | 1 | 1 | 1 | 1 |
Consumer financing interest | 19 | 26 | 63 | 76 |
consumer finance interest [Member] | ||||
Debt Instrument [Line Items] | ||||
Consumer financing interest | $ 19 | $ 26 | 63 | 76 |
Debt | ||||
Debt Instrument [Line Items] | ||||
Cash paid for interest | 160 | 126 | ||
Non-Recourse Vacation Ownership Debt [Member] | ||||
Debt Instrument [Line Items] | ||||
Cash paid for interest | $ 44 | $ 56 |
Variable Interest Entities (Ass
Variable Interest Entities (Assets And Liabilities Of Vacation Ownership SPEs) (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | |
Schedule Of Transfer And Financial Assets [Line Items] | ||||
Restricted cash (VIE - $94 as of 2021 and $92 as of 2020) | $ 128 | $ 121 | $ 122 | |
Other assets | 382 | 387 | ||
Total assets | 6,601 | 7,613 | ||
Total SPE liabilities | 7,450 | 8,581 | ||
Vacation Ownership SPEs | ||||
Schedule Of Transfer And Financial Assets [Line Items] | ||||
Deferred financing cost related to securitized debt | 16 | 21 | ||
Non-recourse bank conduit facility [Member] | ||||
Schedule Of Transfer And Financial Assets [Line Items] | ||||
Less: Outstanding borrowings | [1] | 452 | ||
Variable Interest Entity, Primary Beneficiary [Member] | ||||
Schedule Of Transfer And Financial Assets [Line Items] | ||||
Restricted cash (VIE - $94 as of 2021 and $92 as of 2020) | 94 | 92 | ||
Variable Interest Entity, Primary Beneficiary [Member] | Vacation Ownership SPEs | ||||
Schedule Of Transfer And Financial Assets [Line Items] | ||||
Securitized contract receivables, gross | [2] | 2,136 | 2,458 | |
Restricted cash (VIE - $94 as of 2021 and $92 as of 2020) | [3] | 94 | 92 | |
Interest receivables on securitized contract receivables | [4] | 17 | 23 | |
Other assets | [5] | 6 | 5 | |
Total assets | 2,253 | 2,578 | ||
Other liabilities | [6] | 7 | 2 | |
Total SPE liabilities | 1,964 | 2,236 | ||
SPE assets in excess of SPE liabilities | 289 | 342 | ||
Variable Interest Entity, Primary Beneficiary [Member] | Term Notes [Member] | Vacation Ownership SPEs | ||||
Schedule Of Transfer And Financial Assets [Line Items] | ||||
Less: Outstanding borrowings | [7],[8] | 1,505 | 1,893 | |
Variable Interest Entity, Primary Beneficiary [Member] | Non-recourse bank conduit facility [Member] | Vacation Ownership SPEs | ||||
Schedule Of Transfer And Financial Assets [Line Items] | ||||
Less: Outstanding borrowings | [7] | $ 452 | $ 341 | |
[1] | Consists of the Company’s USD bank conduit facility and AUD/NZD bank conduit facility. The capacity of these facilities is subject to the Company’s ability to provide additional assets to collateralize additional non-recourse borrowings. | |||
[2] | The Company does not allocate allowance for loan losses to SPEs. This amount is included in Vacation ownership contract receivables, net on the Condensed Consolidated Balance Sheets. | |||
[3] | Included in Restricted cash on the Condensed Consolidated Balance Sheets. | |||
[4] | Included in Trade receivables, net on the Condensed Consolidated Balance Sheets. | |||
[5] | Primarily includes deferred financing costs for the bank conduit facility and a security investment asset, which is included in Other assets on the Condensed Consolidated Balance Sheets. | |||
[6] | Primarily includes accrued interest on non-recourse debt, which is included in Accrued expenses and other liabilities on the Condensed Consolidated Balance Sheets. | |||
[7] | Included in Non-recourse vacation ownership debt on the Condensed Consolidated Balance Sheets. | |||
[8] | Includes deferred financing costs of $16 million and $21 million as of September 30, 2021 and December 31, 2020, related to non-recourse debt. |
Variable Interest Entities (Nar
Variable Interest Entities (Narrative) (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 | |
Schedule Of Transfer And Financial Assets [Line Items] | |||
Vacation ownership contract receivables, gross | [1] | $ 2,857 | $ 3,175 |
Non Securitized Receivable [Member] | |||
Schedule Of Transfer And Financial Assets [Line Items] | |||
Vacation ownership contract receivables, gross | [2] | $ 721 | $ 717 |
[1] | Includes contracts under temporary deferment (up to 180 days). As of September 30, 2021 and December 31, 2020, contracts under deferment total $9 million and $37 million. | ||
[2] | Excludes $5 million and $9 million of accrued interest on non-securitized VOCRs as of September 30, 2021 and December 31, 2020, which are included in Trade receivables, net on the Condensed Consolidated Balance Sheets. |
Variable Interest Entities (Sum
Variable Interest Entities (Summary Of Total Vacation Ownership Receivables And Other Securitized Assets, Net Of Securitized Liabilities And Allowance For Loan Losses) (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 | |
Schedule Of Transfer And Financial Assets [Line Items] | |||
Non-securitized contract receivables | [1] | $ 2,857 | $ 3,175 |
Non Securitized Receivable [Member] | |||
Schedule Of Transfer And Financial Assets [Line Items] | |||
Non-securitized contract receivables | [2] | 721 | 717 |
Variable Interest Entity, Primary Beneficiary [Member] | Non Securitized Receivable [Member] | |||
Schedule Of Transfer And Financial Assets [Line Items] | |||
SPE assets in excess of SPE liabilities | 289 | 342 | |
Non-securitized contract receivables | 721 | 717 | |
Less: Allowance for loan losses | 565 | 693 | |
Total, net | $ 445 | $ 366 | |
[1] | Includes contracts under temporary deferment (up to 180 days). As of September 30, 2021 and December 31, 2020, contracts under deferment total $9 million and $37 million. | ||
[2] | Excludes $5 million and $9 million of accrued interest on non-securitized VOCRs as of September 30, 2021 and December 31, 2020, which are included in Trade receivables, net on the Condensed Consolidated Balance Sheets. |
Fair Value (Narrative) (Details
Fair Value (Narrative) (Details) - Recurring Basis - Estimated Fair Value - Fair Value, Inputs, Level 2 [Member] - Foreign Exchange Contracts $ in Millions | Sep. 30, 2021USD ($) |
Other Assets | |
Summary Of Assets And Liabilities Measured At Fair Value On Recurring Basis [Line Items] | |
Derivative Asset | $ 1 |
Other Liabilities [Member] | |
Summary Of Assets And Liabilities Measured At Fair Value On Recurring Basis [Line Items] | |
Derivative Liability | $ 1 |
Fair Value (Carrying Amounts An
Fair Value (Carrying Amounts And Estimated Fair Values Of Financial Instruments) (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
Fair Value, Inputs, Level 3 [Member] | Carrying Amount | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Vacation ownership contract receivables, net (Level 3) | $ 2,292 | $ 2,482 |
Fair Value, Inputs, Level 3 [Member] | Estimated Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Vacation ownership contract receivables, net (Level 3) | 2,893 | 3,035 |
Fair Value, Inputs, Level 2 [Member] | Carrying Amount | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt (Level 2) | 5,343 | 6,418 |
Fair Value, Inputs, Level 2 [Member] | Estimated Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt (Level 2) | $ 5,603 | $ 6,705 |
Derivative Instruments And He_2
Derivative Instruments And Hedging Activities Derivative Instruments and Hedging Activities (Details) - numberOfInterestRateDerivatives | Sep. 30, 2021 | Sep. 30, 2020 |
Interest Rate Contract [Member] | ||
Derivative [Line Items] | ||
Number of Interest Rate Derivatives Held | 0 | 0 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Effective income tax rate | 27.90% | (110.50%) | 27.20% | 17.30% |
Income tax payments, net of refunds | $ 91 | $ 47 | ||
Effective Income Tax Rate Reconciliation, Change in Deferred Tax Assets Valuation Allowance, Amount | 3 | 8 | ||
Personnel-related | COVID-19 Plan | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Employee Retention Credits | $ 3 | 2 | $ 24 | |
Maximum [Member] | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Compensation deduction limitation | $ 1 | $ 1 |
Leases Narrative (Details)
Leases Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Jun. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Restructuring | $ 0 | $ 2 | $ (1) | $ 27 | ||
Restructuring Plan 2020 [Member] | ||||||
Restructuring | $ 37 | |||||
Facility Closing [Member] | ||||||
Restructuring | $ 0 | |||||
COVID-19 [Member] | Restructuring Plan 2020 [Member] | ||||||
Restructuring | 36 | |||||
COVID-19 [Member] | Travel and Membership | Facility Closing [Member] | Restructuring Plan 2020 [Member] | ||||||
Restructuring | $ 22 | |||||
COVID-19 [Member] | Vacation Ownership | Facility Closing [Member] | Restructuring Plan 2020 [Member] | ||||||
Restructuring | $ 2 | |||||
COVID-19 [Member] | Asset Impairments [Member] | Travel and Membership | ||||||
Operating Lease, Impairment Loss | $ 24 | |||||
COVID-19 [Member] | Asset Impairments [Member] | Vacation Ownership | ||||||
Operating Lease, Impairment Loss | $ 5 | |||||
Minimum [Member] | ||||||
Lessee, Operating Lease, Remaining Lease Term | 1 year | 1 year | ||||
Maximum [Member] | ||||||
Lessee, Operating Lease, Remaining Lease Term | 20 years | 20 years | ||||
Lessee, Operating Lease, Renewal Term | 10 years | 10 years | ||||
Lessee, Operating Lease, Termination Period | 1 year |
Leases Costs (Details)
Leases Costs (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Leases [Abstract] | ||||
Operating Lease, Cost | $ 5 | $ 7 | $ 17 | $ 24 |
Short-term Lease, Cost | 3 | 4 | 10 | 11 |
Finance Lease, Right-of-Use Asset, Amortization | 1 | 1 | 3 | 2 |
Finance Lease, Interest Expense | 0 | 0 | 0 | 0 |
Finance lease cost | $ 1 | $ 1 | $ 3 | $ 2 |
Leases, Assets and Liabilities
Leases, Assets and Liabilities (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 | |
Operating Lease, Liability | $ 141 | ||
Finance leases | $ 7 | ||
Operating Lease, Weighted Average Remaining Lease Term | 6 years 7 months 6 days | 7 years 1 month 6 days | |
Finance Lease, Weighted Average Remaining Lease Term | 2 years 6 months | 2 years 7 months 6 days | |
Operating Lease, Weighted Average Discount Rate, Percent | [1] | 5.80% | 5.90% |
Finance Lease, Weighted Average Discount Rate, Percent | 4.70% | 5.60% | |
Other Assets | |||
Operating Lease, Right-of-Use Asset | $ 82 | $ 92 | |
Other Liabilities [Member] | |||
Operating Lease, Liability | 141 | 157 | |
Property and equipment, net [Member] | |||
Finance Lease, Right-of-Use Asset, after Accumulated Amortization | [2] | 8 | 8 |
Debt [Member] | |||
Finance leases | $ 7 | $ 7 | |
[1] | Upon adoption of the new lease standard, discount rates used for existing leases were established at January 1, 2019. | ||
[2] | Presented net of accumulated depreciation. |
Leases Leases, Cash Flow Presen
Leases Leases, Cash Flow Presentation (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Cash Flow of Leases [Abstract] | ||
Operating Lease, Payments | $ 28 | $ 28 |
Finance Lease, Interest Payment on Liability | 0 | 0 |
Finance Lease, Principal Payments | 3 | 3 |
Right-of-Use Asset Obtained in Exchange for Operating Lease Liability | 6 | 9 |
Right-of-Use Asset Obtained in Exchange for Finance Lease Liability | $ 3 | $ 6 |
Leases Maturity (Details)
Leases Maturity (Details) $ in Millions | Sep. 30, 2021USD ($) |
Leases [Abstract] | |
Lessee, Operating Lease, Liability, to be Paid, Remainder of Fiscal Year | $ 8 |
Finance Lease, Liability, to be Paid, Remainder of Fiscal Year | 1 |
Lessee, Operating Lease, Liability, to be Paid, Year One | 31 |
Finance Lease, Liability, to be Paid, Year One | 4 |
Lessee, Operating Lease, Liability, to be Paid, Year Two | 29 |
Finance Lease, Liability, to be Paid, Year Two | 2 |
Lessee, Operating Lease, Liability, to be Paid, Year Three | 28 |
Finance Lease, Liability, to be Paid, Year Three | 1 |
Lessee, Operating Lease, Liability, to be Paid, Year Four | 24 |
Finance Lease, Liability, to be Paid, Year Four | 0 |
Lessee, Operating Lease, Liability, to be Paid, after Year Five | 50 |
Finance Lease, Liability, to be Paid, after Year Five | 0 |
Lessee, Operating Lease, Liability, to be Paid | 170 |
Finance Lease, Liability, Payment, Due | 8 |
Operating lease, Amount of lease payments representing interest | (29) |
Capital Leases, Amount of lease payments representing interest | (1) |
Operating Lease, Liability | 141 |
Finance leases | $ 7 |
Commitments And Contingencies (
Commitments And Contingencies (Narrative) (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
Commitments And Contingencies [Line Items] | ||
Estimated Litigation Liability | $ 15 | $ 13 |
Maximum [Member] | Pending Litigation | ||
Commitments And Contingencies [Line Items] | ||
Loss Contingency, Range of Possible Loss, Portion Not Accrued | 35 | |
Maximum [Member] | Unasserted Claim [Member] | ||
Commitments And Contingencies [Line Items] | ||
Loss Contingency, Range of Possible Loss, Portion Not Accrued | $ 1 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive (Loss)/Income (Components Of Accumulated Other Comprehensive (Loss)/Income) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Accumulated Other Comprehensive Loss, Net Of Tax | ||||||||
Beginning Balance, value | $ (918) | $ (976) | $ (968) | $ (1,050) | $ (891) | $ (524) | $ (968) | $ (524) |
Ending Balance, value | (849) | (918) | (976) | (993) | (1,050) | (891) | (849) | (993) |
Net income/(loss) attributable to Travel + Leisure Co. shareholders | 101 | $ 72 | 29 | 40 | $ (164) | (134) | 201 | (258) |
Reclassification out of Accumulated Other Comprehensive Income | ||||||||
Accumulated Other Comprehensive Loss, Net Of Tax | ||||||||
Net income/(loss) attributable to Travel + Leisure Co. shareholders | 0 | 0 | ||||||
Foreign Currency Translation Adjustments | ||||||||
Accumulated Other Comprehensive Loss, Before Tax | ||||||||
AOCL, Pretax, Beginning Balance | (113) | (148) | (113) | (148) | ||||
Other Comprehensive Income (Loss), before Tax | (27) | (6) | ||||||
AOCL, Pretax, Ending Balance | (140) | (154) | (140) | (154) | ||||
Accumulated Other Comprehensive Loss, Tax | ||||||||
AOCI, Tax, Beginning Balance | 97 | 95 | 97 | 95 | ||||
Other Comprehensive Income (Loss), Tax | 1 | 2 | ||||||
AOCI, Tax, Ending Balance | 98 | 97 | 98 | 97 | ||||
Accumulated Other Comprehensive Loss, Net Of Tax | ||||||||
Beginning Balance, value | (16) | (53) | (16) | (53) | ||||
Other comprehensive loss | (26) | (4) | ||||||
Ending Balance, value | (42) | (57) | (42) | (57) | ||||
Unrealized (losses)/Gains on Cash Flow Hedges | ||||||||
Accumulated Other Comprehensive Loss, Before Tax | ||||||||
AOCL, Pretax, Beginning Balance | (1) | (1) | (1) | (1) | ||||
Other Comprehensive Income (Loss), before Tax | 0 | 0 | ||||||
AOCL, Pretax, Ending Balance | (1) | (1) | (1) | (1) | ||||
Accumulated Other Comprehensive Loss, Tax | ||||||||
AOCI, Tax, Beginning Balance | 1 | 1 | 1 | 1 | ||||
Other Comprehensive Income (Loss), Tax | 0 | 0 | ||||||
AOCI, Tax, Ending Balance | 1 | 1 | 1 | 1 | ||||
Accumulated Other Comprehensive Loss, Net Of Tax | ||||||||
Beginning Balance, value | 0 | 0 | 0 | 0 | ||||
Other comprehensive loss | 0 | 0 | ||||||
Ending Balance, value | 0 | 0 | 0 | 0 | ||||
Defined Benefit Pension Plans | ||||||||
Accumulated Other Comprehensive Loss, Before Tax | ||||||||
AOCL, Pretax, Beginning Balance | 0 | 1 | 0 | 1 | ||||
Other Comprehensive Income (Loss), before Tax | 0 | 0 | ||||||
AOCL, Pretax, Ending Balance | 0 | 1 | 0 | 1 | ||||
Accumulated Other Comprehensive Loss, Tax | ||||||||
AOCI, Tax, Beginning Balance | 0 | 0 | 0 | 0 | ||||
Other Comprehensive Income (Loss), Tax | 0 | 0 | ||||||
AOCI, Tax, Ending Balance | 0 | 0 | 0 | 0 | ||||
Accumulated Other Comprehensive Loss, Net Of Tax | ||||||||
Beginning Balance, value | 0 | 1 | 0 | 1 | ||||
Other comprehensive loss | 0 | 0 | ||||||
Ending Balance, value | 0 | 1 | 0 | 1 | ||||
Accumulated Other Comprehensive (Loss)/Income | ||||||||
Accumulated Other Comprehensive Loss, Before Tax | ||||||||
AOCL, Pretax, Beginning Balance | (114) | (148) | (114) | (148) | ||||
Other Comprehensive Income (Loss), before Tax | (27) | (6) | ||||||
AOCL, Pretax, Ending Balance | (141) | (154) | (141) | (154) | ||||
Accumulated Other Comprehensive Loss, Tax | ||||||||
AOCI, Tax, Beginning Balance | 98 | 96 | 98 | 96 | ||||
Other Comprehensive Income (Loss), Tax | 1 | 2 | ||||||
AOCI, Tax, Ending Balance | 99 | 98 | 99 | 98 | ||||
Accumulated Other Comprehensive Loss, Net Of Tax | ||||||||
Beginning Balance, value | $ (16) | $ (52) | (16) | (52) | ||||
Other comprehensive loss | (26) | (4) | ||||||
Ending Balance, value | $ (42) | $ (56) | $ (42) | $ (56) |
Stock-Based Compensation (Narra
Stock-Based Compensation (Narrative) (Details) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Maximum shares of common stock to be awarded | 15.7 | 15.7 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 11.3 | 11.3 | ||
Stock-based compensation | $ 8 | $ 6 | $ 24 | $ 14 |
Payment of taxes for net share settlement | $ 9 | $ 2 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Discount from Market Price, Offering Date | 10.00% | |||
Stock Issued During Period, Shares, Employee Stock Purchase Plans | 0.1 | 0.1 | ||
Employee Stock Ownership Plan (ESOP), Compensation Expense | $ 1 | $ 1 | ||
RSUs | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares Granted, Value, Share-based Payment Arrangement, before Forfeiture | $ 34 | 35 | ||
Vesting terms, in years | 4 years | |||
PSUs | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares Granted, Value, Share-based Payment Arrangement, before Forfeiture | $ 7 | 8 | ||
Vesting terms, in years | 3 years | |||
NQs | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares Granted, Value, Share-based Payment Arrangement, before Forfeiture | $ 2 | $ 8 | ||
Vesting terms, in years | 4 years |
Stock-Based Compensation Stock-
Stock-Based Compensation Stock-Based Compensation (Details) $ / shares in Units, shares in Millions, $ in Millions | 9 Months Ended | |
Sep. 30, 2021USD ($)$ / sharesshares | ||
RSUs | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount | $ | $ 58 | |
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition | 2 years 7 months 6 days | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | ||
Weighted Average Grant Price, Beginning Balance (in dollars per share) | $ / shares | $ 38.22 | |
Weighted Average Grant Price, Granted (in dollars per share) | $ / shares | 58.61 | |
Weighted Average Grant Price, Vested/exercised (in dollars per share) | $ / shares | 44.71 | [1] |
Weighted Average Grant Price, Forfeitures (in dollars) | $ / shares | 0 | [2] |
Weighted Average Grant Price, Ending Balance (in dollars per share) | $ / shares | $ 47.73 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested [Roll Forward] | ||
Number of Units, Beginning Balance (shares) | shares | 1.6 | |
Number of Units, Granted (shares) | shares | 0.6 | |
Number of Units, Vested/exercised (shares) | shares | (0.4) | [1] |
Number of Units, Forfeitures (shares) | shares | 0 | [2] |
Number of Units, Ending Balance (shares) | shares | 1.8 | [3] |
PSUs | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount | $ | $ 0 | |
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition | 2 years 3 months 18 days | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | ||
Weighted Average Grant Price, Beginning Balance (in dollars per share) | $ / shares | $ 42.57 | |
Weighted Average Grant Price, Granted (in dollars per share) | $ / shares | 59 | |
Weighted Average Grant Price, Vested/exercised (in dollars per share) | $ / shares | 0 | [1] |
Weighted Average Grant Price, Forfeitures (in dollars) | $ / shares | 0 | [2] |
Weighted Average Grant Price, Ending Balance (in dollars per share) | $ / shares | $ 48.18 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested [Roll Forward] | ||
Number of Units, Beginning Balance (shares) | shares | 0.3 | |
Number of Units, Granted (shares) | shares | 0.1 | |
Number of Units, Vested/exercised (shares) | shares | 0 | [1] |
Number of Units, Forfeitures (shares) | shares | 0 | [2] |
Number of Units, Ending Balance (shares) | shares | 0.4 | [4] |
PSUs | Maximum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount | $ | $ 8 | |
Stock Appreciation Rights (SARs) [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount | $ | $ 0 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | ||
Weighted Average Grant Price, Beginning Balance (in dollars per share) | $ / shares | $ 34.51 | |
Weighted Average Grant Price, Granted (in dollars per share) | $ / shares | 0 | |
Weighted Average Grant Price, Vested/exercised (in dollars per share) | $ / shares | 34.51 | [1] |
Weighted Average Grant Price, Forfeitures (in dollars) | $ / shares | 0 | [2] |
Weighted Average Grant Price, Ending Balance (in dollars per share) | $ / shares | $ 0 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested [Roll Forward] | ||
Number of Units, Beginning Balance (shares) | shares | 0.2 | |
Number of Units, Granted (shares) | shares | 0 | |
Number of Units, Vested/exercised (shares) | shares | (0.2) | [1] |
Number of Units, Forfeitures (shares) | shares | 0 | [2] |
Number of Units, Ending Balance (shares) | shares | 0 | [5] |
NQs | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount | $ | $ 9 | |
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition | 2 years 6 months | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Option, Nonvested, Weighted Average Exercise Price, Beginning Balance | $ / shares | $ 44.15 | |
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price | $ / shares | 59 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercised, Weighted Average Grant Date Fair Value | $ / shares | 44.50 | [1] |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures and Expirations in Period, Weighted Average Intrinsic Value | $ / shares | 0 | [2] |
Share-based Compensation Arrangement by Share-based Payment Award, Option, Nonvested, Weighted Average Exercise Price, Ending Balance | $ / shares | $ 45.32 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested [Roll Forward] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Number of Shares, Beginning Balance | shares | 2.3 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | shares | 0.1 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercised, Weighted Average Grant Date Fair Value | shares | (0.1) | [1] |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures and Expirations in Period | shares | 0 | [2] |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Number of Shares, Ending Balance | shares | 2.3 | [6] |
NQs | Exercisable options | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based Payment Arrangement, Option, Exercise Price Range, Shares Exercisable | shares | 0.9 | |
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 7 years 2 months 12 days | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercised, Weighted Average Grant Date Fair Value | $ / shares | $ 8.39 | |
[1] | Upon exercise of NQs and SSARs and upon vesting of RSUs and PSUs, the Company issues new shares to participants. | |
[2] | The Company recognizes forfeitures as they occur. | |
[3] | Aggregate unrecognized compensation expense related to RSUs was $58 million as of September 30, 2021, which is expected to be recognized over a weighted average period of 2.6 years. | |
[4] | There was no unrecognized compensation expense related to PSUs as these awards were not probable of vesting as of September 30, 2021. The maximum amount of compensation expense associated with these awards would be $8 million which would be recognized over a weighted average period of 2.3 years. | |
[5] | As of September 30, 2021, all SSARs had been exercised and thus there was no unrecognized compensation expense. | |
[6] | There were 0.9 million NQs which were exercisable as of September 30, 2021. These exercisable NQs will expire over a weighted average period of 7.2 years and carry a weighted average grant date fair value of $8.39. Unrecognized compensation expense for NQs was $9 million as of September 30, 2021, which is expected to be recognized over a weighted average period of 2.5 years |
Stock-Based Compensation (Incen
Stock-Based Compensation (Incentive Equity Awards Granted By The Company) (Details) - NQs - USD ($) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Dec. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Grant date fair value | $ 18.87 | |
Grant date strike price | $ 59 | $ 41.04 |
Expected volatility | 44.80% | |
Expected life | 6 years 3 months | |
Risk-free interest rate | 1.09% | |
Projected dividend yield | 3.12% | 4.87% |
Minimum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Grant date fair value | $ 7.27 | |
Expected volatility | 32.60% | |
Expected life | 6 years 3 months | |
Risk-free interest rate | 0.95% | |
Maximum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Grant date fair value | $ 7.28 | |
Expected volatility | 32.88% | |
Expected life | 7 years 6 months | |
Risk-free interest rate | 1.03% |
Segment Information (Summary Of
Segment Information (Summary Of Segment Information) (Details) $ in Millions | 3 Months Ended | 9 Months Ended | |||||
Sep. 30, 2021USD ($) | Sep. 30, 2020USD ($) | Mar. 31, 2020USD ($) | Sep. 30, 2021USD ($)segmentbrand | Sep. 30, 2020USD ($) | Dec. 31, 2020USD ($) | ||
Segment Reporting Information [Line Items] | |||||||
Number of Reportable Segments | segment | 2 | ||||||
Assets, Net of Investment in Unconsolidated Subsidiaries | [1] | $ 6,601 | $ 6,601 | $ 7,613 | |||
Net revenues | |||||||
Net revenues | [2] | 839 | $ 614 | 2,264 | $ 1,515 | ||
Reconciliation of Net income to Adjusted EBITDA | |||||||
Net income/(loss) attributable to Travel + Leisure shareholders | 101 | 40 | 201 | (258) | |||
Loss on disposal of discontinued business, net of income taxes | 0 | 0 | 2 | 0 | |||
Provision/(benefit) for income taxes | 39 | (21) | 76 | (54) | |||
Depreciation and amortization | 31 | 32 | 93 | 94 | |||
Interest expense | 47 | 52 | 147 | 138 | |||
Interest (income) | (1) | (2) | (1) | (5) | |||
Stock-based compensation | 8 | 6 | 24 | 14 | |||
Legacy items | 2 | 1 | 6 | 2 | |||
Asset impairments | 0 | 6 | 0 | 50 | |||
Restructuring | 0 | 2 | (1) | 27 | |||
Adjusted EBITDA | 228 | 139 | 550 | 111 | |||
COVID-19 [Member] | |||||||
Reconciliation of Net income to Adjusted EBITDA | |||||||
COVID-19 related costs Adj EBITDA | [3] | 1 | 13 | 3 | 51 | ||
Asset impairments | [4] | 0 | 6 | 0 | 54 | ||
Exchange inventory write-off | 0 | 10 | 0 | 48 | |||
COVID-19 [Member] | Operating Expense [Member] | |||||||
Reconciliation of Net income to Adjusted EBITDA | |||||||
Asset impairments | 5 | ||||||
Exchange inventory write-off | 10 | $ 38 | 48 | ||||
Operating Segments | |||||||
Segment Reporting Information [Line Items] | |||||||
Assets, Net of Investment in Unconsolidated Subsidiaries | [1] | 6,194 | 6,194 | 6,372 | |||
Net revenues | |||||||
Net revenues | 845 | 620 | 2,281 | 1,527 | |||
Reconciliation of Net income to Adjusted EBITDA | |||||||
Adjusted EBITDA | 245 | 155 | 595 | 148 | |||
Corporate and other | |||||||
Segment Reporting Information [Line Items] | |||||||
Assets, Net of Investment in Unconsolidated Subsidiaries | [1] | 407 | 407 | 1,241 | |||
Net revenues | |||||||
Net revenues | [2],[5] | (6) | (6) | (17) | (12) | ||
Reconciliation of Net income to Adjusted EBITDA | |||||||
Adjusted EBITDA | [5] | (17) | (16) | (45) | (37) | ||
Vacation Ownership | COVID-19 [Member] | Operating Expense [Member] | |||||||
Reconciliation of Net income to Adjusted EBITDA | |||||||
Exchange inventory write-off | 0 | 0 | |||||
Vacation Ownership | Operating Segments | |||||||
Segment Reporting Information [Line Items] | |||||||
Assets, Net of Investment in Unconsolidated Subsidiaries | [1] | 4,738 | 4,738 | 5,000 | |||
Net revenues | |||||||
Net revenues | [2] | 660 | 475 | 1,708 | 1,116 | ||
Reconciliation of Net income to Adjusted EBITDA | |||||||
Adjusted EBITDA | 177 | 93 | $ 377 | 6 | |||
Travel and Membership | |||||||
Segment Reporting Information [Line Items] | |||||||
Number of brands | brand | 3 | ||||||
Travel and Membership | COVID-19 [Member] | Operating Expense [Member] | |||||||
Reconciliation of Net income to Adjusted EBITDA | |||||||
Exchange inventory write-off | 10 | 48 | |||||
Travel and Membership | Operating Segments | |||||||
Segment Reporting Information [Line Items] | |||||||
Assets, Net of Investment in Unconsolidated Subsidiaries | [1] | 1,456 | $ 1,456 | $ 1,372 | |||
Net revenues | |||||||
Net revenues | [2] | 185 | 145 | 573 | 411 | ||
Reconciliation of Net income to Adjusted EBITDA | |||||||
Adjusted EBITDA | $ 68 | $ 62 | $ 218 | $ 142 | |||
[1] | Excludes investment in consolidated subsidiaries. | ||||||
[2] | This table reflects the reclassification of Extra Holidays from the Vacation Ownership segment into the Travel and Membership segment for all periods presented. Extra Holidays revenue is included within Transaction revenues. | ||||||
[3] | Reflects severance and other employee costs associated with layoffs due to the COVID-19 workforce reduction offset in part by employee retention credits received in connection with the U.S. CARES Act, ARPA, and similar international programs for wages paid to certain employees despite having operations suspended. This amount does not include costs associated with idle pay. | ||||||
[4] | Includes $5 million of bad debt expense related to a note receivable for the nine months ended September 30, 2020, included in Operating expenses on the Condensed Consolidated Statements of Income/(Loss). | ||||||
[5] | Includes the elimination of transactions between segments. |
COVID-19 Related Impacts (Detai
COVID-19 Related Impacts (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Sep. 30, 2021 | Sep. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | ||
Restructuring Cost and Reserve [Line Items] | |||||||
Provision for loan losses | $ 120 | $ 391 | |||||
COVID-19 related costs | $ 1 | $ 14 | 3 | 81 | |||
Asset impairments | 0 | 6 | 0 | 50 | |||
Restructuring | 0 | 2 | (1) | 27 | |||
Restructuring Plan 2020 [Member] | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring | $ 37 | ||||||
COVID-19 [Member] | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Asset impairments | [1] | 0 | 6 | 0 | 54 | ||
Exchange inventory write-off | 0 | 10 | 0 | 48 | |||
Total COVID-19 Impact | (12) | 31 | (28) | 377 | |||
COVID-19 [Member] | Restructuring Plan 2020 [Member] | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring | $ 36 | ||||||
COVID-19 [Member] | Vacation Ownership | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Total COVID-19 Impact | (12) | 18 | (29) | 254 | |||
COVID-19 [Member] | Travel and Membership | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Total COVID-19 Impact | 0 | 11 | 0 | 110 | |||
COVID-19 [Member] | Corporate and Other | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Total COVID-19 Impact | 0 | 2 | 1 | 13 | |||
COVID-19 [Member] | Vacation ownership interest sales | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Provision for loan losses | (21) | $ 225 | (47) | 225 | |||
COVID-19 [Member] | Vacation ownership interest sales | Vacation Ownership | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Provision for loan losses | (21) | (47) | 225 | ||||
COVID-19 [Member] | Vacation ownership interest sales | Travel and Membership | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Provision for loan losses | 0 | 0 | 0 | ||||
COVID-19 [Member] | Vacation ownership interest sales | Corporate and Other | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Provision for loan losses | 0 | 0 | 0 | ||||
COVID-19 [Member] | Cost/(recovery) of vacation ownership interest [Member] | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Estimated inventory recoveries during the period | 8 | (55) | 17 | (55) | |||
COVID-19 [Member] | Cost/(recovery) of vacation ownership interest [Member] | Vacation Ownership | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Estimated inventory recoveries during the period | 8 | 17 | (55) | ||||
COVID-19 [Member] | Cost/(recovery) of vacation ownership interest [Member] | Travel and Membership | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Estimated inventory recoveries during the period | 0 | 0 | 0 | ||||
COVID-19 [Member] | Cost/(recovery) of vacation ownership interest [Member] | Corporate and Other | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Estimated inventory recoveries during the period | 0 | 0 | 0 | ||||
COVID-19 [Member] | COVID-19 related costs | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
COVID-19 related costs | 1 | 14 | 3 | 81 | |||
COVID-19 [Member] | COVID-19 related costs | Vacation Ownership | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
COVID-19 related costs | 1 | 11 | 2 | 62 | |||
COVID-19 [Member] | COVID-19 related costs | Travel and Membership | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
COVID-19 related costs | 0 | 1 | 0 | 6 | |||
COVID-19 [Member] | COVID-19 related costs | Corporate and Other | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
COVID-19 related costs | $ 0 | 2 | 1 | 13 | |||
COVID-19 [Member] | Asset Impairment and Operating Expenses [Member] [Member] | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Asset impairments | 6 | 54 | |||||
COVID-19 [Member] | Asset Impairment and Operating Expenses [Member] [Member] | Vacation Ownership | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Asset impairments | 6 | 20 | |||||
COVID-19 [Member] | Asset Impairment and Operating Expenses [Member] [Member] | Travel and Membership | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Asset impairments | 0 | 34 | |||||
COVID-19 [Member] | Asset Impairment and Operating Expenses [Member] [Member] | Corporate and Other | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Asset impairments | 0 | 0 | |||||
COVID-19 [Member] | Operating Expense [Member] | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Asset impairments | 5 | ||||||
Exchange inventory write-off | 10 | $ 38 | 48 | ||||
COVID-19 [Member] | Operating Expense [Member] | Vacation Ownership | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Exchange inventory write-off | 0 | 0 | |||||
COVID-19 [Member] | Operating Expense [Member] | Travel and Membership | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Exchange inventory write-off | 10 | 48 | |||||
COVID-19 [Member] | Operating Expense [Member] | Corporate and Other | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Exchange inventory write-off | 0 | 0 | |||||
COVID-19 [Member] | Restructuring [Member] | Restructuring Plan 2020 [Member] | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring | 1 | (1) | 24 | ||||
COVID-19 [Member] | Restructuring [Member] | Vacation Ownership | Restructuring Plan 2020 [Member] | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring | 1 | (1) | 2 | ||||
COVID-19 [Member] | Restructuring [Member] | Travel and Membership | Restructuring Plan 2020 [Member] | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring | 0 | 0 | 22 | ||||
COVID-19 [Member] | Restructuring [Member] | Corporate and Other | Restructuring Plan 2020 [Member] | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring | $ 0 | $ 0 | $ 0 | ||||
[1] | Includes $5 million of bad debt expense related to a note receivable for the nine months ended September 30, 2020, included in Operating expenses on the Condensed Consolidated Statements of Income/(Loss). |
COVID-19 Related Items Narrativ
COVID-19 Related Items Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||
Sep. 30, 2021 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | ||
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring | $ 0 | $ 2 | $ (1) | $ 27 | ||||
Provision for loan losses | 120 | 391 | ||||||
Asset impairments | 0 | 6 | 0 | 50 | ||||
COVID-19 [Member] | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Total COVID-19 Impact | (12) | 31 | (28) | 377 | ||||
Exchange inventory write-off | 0 | 10 | 0 | 48 | ||||
Net Provision impact | (13) | (30) | 170 | |||||
Asset impairments | [1] | 0 | 6 | 0 | 54 | |||
Restructuring Plan 2020 [Member] | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring | $ 37 | |||||||
Restructuring Plan 2020 [Member] | COVID-19 [Member] | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring | 36 | |||||||
Personnel-related | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring | 0 | |||||||
Personnel-related | COVID-19 Plan | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Employee Retention Credits | 3 | 2 | 24 | |||||
Facility Closing [Member] | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring | 0 | |||||||
Travel and Membership | COVID-19 [Member] | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Total COVID-19 Impact | 0 | 11 | 0 | 110 | ||||
Travel and Membership | Personnel-related | Restructuring Plan 2020 [Member] | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring | $ 1 | |||||||
Travel and Membership | Facility Closing [Member] | Restructuring Plan 2020 [Member] | COVID-19 [Member] | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring | $ 22 | |||||||
Vacation Ownership Interest Sales [Member] | COVID-19 [Member] | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Provision for loan losses | (21) | $ 225 | (47) | 225 | ||||
Vacation Ownership Interest Sales [Member] | Travel and Membership | COVID-19 [Member] | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Provision for loan losses | 0 | 0 | 0 | |||||
Cost/(recovery) of vacation ownership interest [Member] | COVID-19 [Member] | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Estimated inventory recoveries during the period | (8) | 55 | (17) | 55 | ||||
Cost/(recovery) of vacation ownership interest [Member] | Travel and Membership | COVID-19 [Member] | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Estimated inventory recoveries during the period | 0 | 0 | 0 | |||||
COVID-19 related costs | COVID-19 [Member] | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Other COVID-19 related costs | 5 | 13 | ||||||
COVID-19 related costs | Personnel-related | COVID-19 Plan | COVID-19 [Member] | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Severance Costs | $ 1 | 9 | 3 | 68 | ||||
Asset Impairment and Operating Expenses [Member] [Member] | COVID-19 [Member] | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Asset impairments | 6 | 54 | ||||||
Asset Impairment and Operating Expenses [Member] [Member] | Travel and Membership | COVID-19 [Member] | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Asset impairments | 0 | 34 | ||||||
Operating Expense [Member] | COVID-19 [Member] | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Exchange inventory write-off | 10 | $ 38 | 48 | |||||
Asset impairments | 5 | |||||||
Operating Expense [Member] | Travel and Membership | COVID-19 [Member] | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Exchange inventory write-off | 10 | 48 | ||||||
Restructuring [Member] | Restructuring Plan 2020 [Member] | COVID-19 [Member] | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring | 1 | (1) | 24 | |||||
Restructuring [Member] | Travel and Membership | Restructuring Plan 2020 [Member] | COVID-19 [Member] | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring | 0 | $ 0 | 22 | |||||
Asset Impairments [Member] | COVID-19 [Member] | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Asset impairments | $ 6 | $ 49 | ||||||
[1] | Includes $5 million of bad debt expense related to a note receivable for the nine months ended September 30, 2020, included in Operating expenses on the Condensed Consolidated Statements of Income/(Loss). |
COVID-19 Related Liabilities (D
COVID-19 Related Liabilities (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Restructuring Cost and Reserve [Line Items] | ||||
Liability beginning balance | $ 26 | |||
COVID-19 related costs | $ 1 | $ 14 | 3 | $ 81 |
Cash payments | (1) | |||
Liability ending balance | 27 | 27 | ||
COVID-19 Plan | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Liability beginning balance | 6 | |||
COVID-19 related costs | 1 | |||
Cash payments | (6) | |||
Liability ending balance | 1 | 1 | ||
Personnel-related | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Liability beginning balance | 1 | |||
Cash payments | (1) | |||
Liability ending balance | 0 | 0 | ||
Personnel-related | COVID-19 Plan | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Liability beginning balance | 6 | |||
COVID-19 related costs | 1 | |||
Cash payments | (6) | |||
Liability ending balance | $ 1 | $ 1 |
Impairments Impairments (Detail
Impairments Impairments (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||||
Sep. 30, 2021 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | ||
Asset impairments | $ 0 | $ 6 | $ 0 | $ 50 | |||
Asset impairments | 0 | 50 | |||||
COVID-19 [Member] | |||||||
Asset impairments | [1] | $ 0 | 6 | $ 0 | 54 | ||
Non-COVID-19 related | |||||||
Asset impairments | 1 | ||||||
Asset Impairments [Member] | COVID-19 [Member] | |||||||
Asset impairments | 6 | $ 49 | |||||
Vacation Ownership | Asset Impairments [Member] | COVID-19 [Member] | |||||||
Asset impairments | 6 | $ 3 | |||||
Impairment of Real Estate | $ 6 | ||||||
Operating Lease, Impairment Loss | $ 5 | ||||||
Travel and Membership | Asset Impairments [Member] | COVID-19 [Member] | |||||||
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) | $ 4 | ||||||
Operating Lease, Impairment Loss | 24 | ||||||
Asset impairments | $ 6 | ||||||
[1] | Includes $5 million of bad debt expense related to a note receivable for the nine months ended September 30, 2020, included in Operating expenses on the Condensed Consolidated Statements of Income/(Loss). |
Restructuring (Narrative) (Deta
Restructuring (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Sep. 30, 2021 | Sep. 30, 2020 | Jun. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | ||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring charges | $ 0 | $ 2 | $ (1) | $ 27 | |||
Cash payments | (1) | ||||||
Restructuring Reserve, Accrual Adjustment | 3 | ||||||
Restructuring liability | 27 | 27 | $ 26 | ||||
Facility Closing [Member] | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring charges | 0 | ||||||
Cash payments | 0 | ||||||
Restructuring Reserve, Accrual Adjustment | 0 | ||||||
Restructuring liability | 23 | 23 | 23 | ||||
Personnel-related | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring charges | 0 | ||||||
Cash payments | (1) | ||||||
Restructuring Reserve, Accrual Adjustment | 0 | ||||||
Restructuring liability | 0 | 0 | 1 | ||||
Other Restructuring | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring charges | [1] | (1) | |||||
Cash payments | 0 | ||||||
Restructuring Reserve, Accrual Adjustment | [2] | 3 | |||||
Restructuring liability | 4 | 4 | 2 | ||||
Vacation Ownership | Other Restructuring | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring charges | (1) | ||||||
Restructuring Plan 2020 [Member] | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring charges | 37 | ||||||
Cash payments | (12) | ||||||
Restructuring liability | 27 | 27 | |||||
Restructuring Plan 2020 [Member] | COVID-19 [Member] | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring charges | 36 | ||||||
Restructuring Plan 2020 [Member] | Vacation Ownership | Facility Closing [Member] | COVID-19 [Member] | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring charges | 2 | ||||||
Restructuring Plan 2020 [Member] | Vacation Ownership | Other Restructuring | COVID-19 [Member] | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring charges | 12 | ||||||
Restructuring Plan 2020 [Member] | Travel and Membership | Facility Closing [Member] | COVID-19 [Member] | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring charges | $ 22 | ||||||
Restructuring Plan 2020 [Member] | Travel and Membership | Personnel-related | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring charges | $ 1 | ||||||
Restructuring Plans, Additional [Member] | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring liability | $ 1 | $ 1 | |||||
Asset Impairments [Member] | Vacation Ownership | COVID-19 [Member] | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Operating Lease, Impairment Loss | $ 5 | ||||||
Asset Impairments [Member] | Travel and Membership | COVID-19 [Member] | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Operating Lease, Impairment Loss | $ 24 | ||||||
[1] | Includes $1 million reversal of expense related to the reimbursement of prepaid licensing fees that were previously written-off at the Vacation Ownership segment. | ||||||
[2] | Includes $2 million reimbursement of termination payments and $1 million reimbursement of license fees at the Vacation Ownership segment. |
Restructuring (Activity Related
Restructuring (Activity Related To The Restructuring Costs) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | ||
Restructuring Cost and Reserve [Roll Forward] | |||||
Liability beginning balance | $ 26 | ||||
Restructuring | $ 0 | $ 2 | (1) | $ 27 | |
Cash Payments | (1) | ||||
Other | 3 | ||||
Liability ending balance | 27 | 27 | |||
Termination reimbursement | Vacation Ownership | |||||
Restructuring Cost and Reserve [Roll Forward] | |||||
Other | 2 | ||||
License fee reimbursement | Vacation Ownership | |||||
Restructuring Cost and Reserve [Roll Forward] | |||||
Other | 1 | ||||
Personnel-related | |||||
Restructuring Cost and Reserve [Roll Forward] | |||||
Liability beginning balance | 1 | ||||
Restructuring | 0 | ||||
Cash Payments | (1) | ||||
Other | 0 | ||||
Liability ending balance | 0 | 0 | |||
Facility Closing [Member] | |||||
Restructuring Cost and Reserve [Roll Forward] | |||||
Liability beginning balance | 23 | ||||
Restructuring | 0 | ||||
Cash Payments | 0 | ||||
Other | 0 | ||||
Liability ending balance | 23 | 23 | |||
Other Restructuring | |||||
Restructuring Cost and Reserve [Roll Forward] | |||||
Liability beginning balance | 2 | ||||
Restructuring | [1] | (1) | |||
Cash Payments | 0 | ||||
Other | [2] | 3 | |||
Liability ending balance | $ 4 | 4 | |||
Other Restructuring | Vacation Ownership | |||||
Restructuring Cost and Reserve [Roll Forward] | |||||
Restructuring | $ (1) | ||||
[1] | Includes $1 million reversal of expense related to the reimbursement of prepaid licensing fees that were previously written-off at the Vacation Ownership segment. | ||||
[2] | Includes $2 million reimbursement of termination payments and $1 million reimbursement of license fees at the Vacation Ownership segment. |
Transactions with Former Pare_2
Transactions with Former Parent and Former Subsidiaries (Narrative) (Details) £ in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2020USD ($) | Sep. 30, 2021USD ($) | Sep. 30, 2020USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2020GBP (£) | Dec. 31, 2019USD ($) | |
British Travel Association and Regulatory Authorities | ||||||
Separation Adjustments And Transactions With Former Parent And Subsidiaries [Line Items] | ||||||
Secured bonding facility and perpetual guarantee | $ 46 | |||||
Guarantee, fair value | 22 | |||||
Sale Of European Vacation Rental Business | Financial Guarantee | British Travel Association and Regulatory Authorities | ||||||
Separation Adjustments And Transactions With Former Parent And Subsidiaries [Line Items] | ||||||
Fair Value Disclosure, Off-balance Sheet Risks, Face Amount, Liability | 78 | £ 58 | ||||
Sale Of European Vacation Rental Business | Letter of Credit [Member] | British Travel Association and Regulatory Authorities | ||||||
Separation Adjustments And Transactions With Former Parent And Subsidiaries [Line Items] | ||||||
Fair Value Disclosure, Off-balance Sheet Risks, Face Amount, Liability | 48 | £ 36 | ||||
Accrued Expenses and Other Liabilities | Sale Of European Vacation Rental Business | European vacation rentals business | ||||||
Separation Adjustments And Transactions With Former Parent And Subsidiaries [Line Items] | ||||||
Guarantee, fair value | $ 90 | |||||
Wyndham Hotels And Resorts, Inc. [Member] | Sale Of European Vacation Rental Business | Financial Guarantee | Awaze Limited [Member] | ||||||
Separation Adjustments And Transactions With Former Parent And Subsidiaries [Line Items] | ||||||
Post-closing Credit Support, Portion of Escrow Received Upon Release | 0.33 | |||||
Affiliated Entity | ||||||
Separation Adjustments And Transactions With Former Parent And Subsidiaries [Line Items] | ||||||
Responsible liability for separation agreement | 37.50% | |||||
Contingent and other corporate liabilities retained | 0.25 | |||||
Related Party Transaction, Expenses from Transactions with Related Party | $ 1 | $ 1 | ||||
Separation and Distribution Agreement, Portion of Certain Contingent and Other Corporate Liabilities Assumed | 0.67 | |||||
Separation and Distribution Agreement, Portion of Proceeds From Contingent and Other Corporate Assets | 0.67 | |||||
Post-closing Credit Support, Portion of Escrow Received Upon Release | 0.67 | |||||
Post-closing Credit Support, Portion of Guarantees Assumed | 0.67 | |||||
Affiliated Entity | Sale Of European Vacation Rental Business | Financial Guarantee | Awaze Limited [Member] | ||||||
Separation Adjustments And Transactions With Former Parent And Subsidiaries [Line Items] | ||||||
Secured bonding facility and perpetual guarantee | $ 44 | |||||
Affiliated Entity | Sale Of European Vacation Rental Business | Indemnification Agreement | ||||||
Separation Adjustments And Transactions With Former Parent And Subsidiaries [Line Items] | ||||||
Guarantee, fair value | $ 42 | |||||
Affiliated Entity | Sale Of North American Vacation Rental Business [Member] | Indemnification Agreement | ||||||
Separation Adjustments And Transactions With Former Parent And Subsidiaries [Line Items] | ||||||
Guarantee, fair value | 2 | |||||
Affiliated Entity | General and Administrative Expense [Member] | Sale Of European Vacation Rental Business | ||||||
Separation Adjustments And Transactions With Former Parent And Subsidiaries [Line Items] | ||||||
Related Party Transaction, Expenses from Transactions with Related Party | $ 1 | 1 | ||||
Affiliated Entity | General and Administrative Expense [Member] | Sale Of North American Vacation Rental Business [Member] | ||||||
Separation Adjustments And Transactions With Former Parent And Subsidiaries [Line Items] | ||||||
Related Party Transaction, Expenses from Transactions with Related Party | 1 | 1 | 1 | |||
Affiliated Entity | Net Revenue [Member] | Sale Of European Vacation Rental Business | ||||||
Separation Adjustments And Transactions With Former Parent And Subsidiaries [Line Items] | ||||||
Revenue from Related Parties | 1 | 1 | ||||
Affiliated Entity | Other Revenue [Member] | Sale Of North American Vacation Rental Business [Member] | ||||||
Separation Adjustments And Transactions With Former Parent And Subsidiaries [Line Items] | ||||||
Revenue from Related Parties | 1 | 1 | 1 | |||
Affiliated Entity | Cendant | Accrued Expenses and Other Liabilities | ||||||
Separation Adjustments And Transactions With Former Parent And Subsidiaries [Line Items] | ||||||
Liabilities assumed | 13 | $ 13 | ||||
Tax liabilities assumed | 13 | |||||
Other contingent and corporate liabilities assumed | $ 1 | |||||
Affiliated Entity | Realogy | ||||||
Separation Adjustments And Transactions With Former Parent And Subsidiaries [Line Items] | ||||||
Responsible liability for separation agreement | 62.50% | |||||
Affiliated Entity | Wyndham Hotels And Resorts, Inc. [Member] | ||||||
Separation Adjustments And Transactions With Former Parent And Subsidiaries [Line Items] | ||||||
Contingent and other corporate liabilities retained | 0.33 | |||||
Separation and Distribution Agreement, Portion of Certain Contingent and Other Corporate Liabilities Assumed | 0.33 | |||||
Separation and Distribution Agreement, Portion of Proceeds From Contingent and Other Corporate Assets | 0.33 | |||||
Post-closing Credit Support, Portion of Escrow Received Upon Release | 0.33 | |||||
Wyndham Hotels And Resorts, Inc. [Member] | ||||||
Separation Adjustments And Transactions With Former Parent And Subsidiaries [Line Items] | ||||||
Receivable from related party | $ 7 | |||||
Wyndham Hotels And Resorts, Inc. [Member] | Sale Of European Vacation Rental Business | Financial Guarantee | British Travel Association and Regulatory Authorities | ||||||
Separation Adjustments And Transactions With Former Parent And Subsidiaries [Line Items] | ||||||
Secured bonding facility and perpetual guarantee | 81 | |||||
Guarantee, fair value | 39 | |||||
Wyndham Hotels And Resorts, Inc. [Member] | Sale Of European Vacation Rental Business | Indemnification Agreement | ||||||
Separation Adjustments And Transactions With Former Parent And Subsidiaries [Line Items] | ||||||
Receivable from related party | 14 | |||||
Wyndham Hotels And Resorts, Inc. [Member] | General and Administrative Expense [Member] | Transaction Service Agreement [Member] | ||||||
Separation Adjustments And Transactions With Former Parent And Subsidiaries [Line Items] | ||||||
Related Party Transaction, Expenses from Transactions with Related Party | $ 1 | $ 1 | ||||
Wyndham Hotels And Resorts, Inc. [Member] | Other Assets | Sale Of European Vacation Rental Business | ||||||
Separation Adjustments And Transactions With Former Parent And Subsidiaries [Line Items] | ||||||
Receivable from related party | $ 21 |
Related Party Transactions Rela
Related Party Transactions Related Party Transactions (Details) - USD ($) $ in Millions | Jul. 08, 2020 | Sep. 30, 2021 | Sep. 30, 2020 |
Former Officer [Member] | |||
Related Party Transaction [Line Items] | |||
Related Party Transaction, Amounts of Transaction | $ 45 | $ 47 | |
Affiliated Entity | |||
Related Party Transaction [Line Items] | |||
Related Party Transaction, Expenses from Transactions with Related Party | $ 1 | $ 1 |
Subsequent Events (Details)
Subsequent Events (Details) $ in Millions | Oct. 22, 2021USD ($) | Jun. 30, 2022 | Oct. 26, 2021USD ($) | Sep. 30, 2021USD ($) | Mar. 08, 2021USD ($) | Dec. 31, 2019USD ($) |
Subsequent Event [Line Items] | ||||||
Maximum leverage ratio | 4.25 | |||||
Minimum interest coverage ratio | 2.5 | |||||
Affiliated Entity | ||||||
Subsequent Event [Line Items] | ||||||
Post-closing Credit Support, Portion of Escrow Received Upon Release | 0.67 | |||||
Affiliated Entity | Wyndham Hotels And Resorts, Inc. [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Post-closing Credit Support, Portion of Escrow Received Upon Release | 0.33 | |||||
Awaze Limited [Member] | Financial Guarantee | Sale Of European Vacation Rental Business | Wyndham Hotels And Resorts, Inc. [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Post-closing Credit Support, Portion of Escrow Received Upon Release | 0.33 | |||||
Awaze Limited [Member] | Financial Guarantee | Sale Of European Vacation Rental Business | Affiliated Entity | ||||||
Subsequent Event [Line Items] | ||||||
Guarantor Obligations, Maximum Exposure, Undiscounted | $ 44 | |||||
Subsequent Event [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Maximum leverage ratio | 4.75 | 4.25 | ||||
Minimum interest coverage ratio | 2.5 | |||||
Subsequent Event [Member] | Minimum [Member] | Base Rate | ||||||
Subsequent Event [Line Items] | ||||||
Debt Instrument, Basis Spread on Variable Rate | 0.75% | |||||
Subsequent Event [Member] | Minimum [Member] | London Interbank Offered Rate (LIBOR) | ||||||
Subsequent Event [Line Items] | ||||||
Debt Instrument, Basis Spread on Variable Rate | 1.75% | |||||
Subsequent Event [Member] | Maximum [Member] | Base Rate | ||||||
Subsequent Event [Line Items] | ||||||
Debt Instrument, Basis Spread on Variable Rate | 1.25% | |||||
Subsequent Event [Member] | Maximum [Member] | London Interbank Offered Rate (LIBOR) | ||||||
Subsequent Event [Line Items] | ||||||
Debt Instrument, Basis Spread on Variable Rate | 2.25% | |||||
Sierra Timeshare 2021-1 | ||||||
Subsequent Event [Line Items] | ||||||
Debt instrument, face amount | $ 500 | |||||
Long-term Debt, Percentage Bearing Variable Interest, Percentage Rate | 1.57% | |||||
Debt Instrument, Advance Rate | 98.00% | |||||
Sierra Timeshare 2021-1 | Subsequent Event [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Debt instrument, face amount | $ 350 | |||||
Long-term Debt, Percentage Bearing Variable Interest, Percentage Rate | 1.82% | |||||
Debt Instrument, Advance Rate | 98.00% | |||||
Secured Revolving Credit Facility due May 2023 | Revolving Credit Facility | ||||||
Subsequent Event [Line Items] | ||||||
Debt instrument, face amount | $ 1,000 | |||||
Secured Revolving Credit Facility due May 2023 | Revolving Credit Facility | Revolving Credit Facility | ||||||
Subsequent Event [Line Items] | ||||||
Debt instrument, face amount | $ 1,000 | |||||
Secured Revolving Credit Facility due May 2023 | Subsequent Event [Member] | Revolving Credit Facility | Revolving Credit Facility | ||||||
Subsequent Event [Line Items] | ||||||
Debt instrument, face amount | $ 1,000 |