Document And Entity Information
Document And Entity Information | 9 Months Ended |
Sep. 30, 2023 shares | |
Cover [Abstract] | |
Document Type | 10-Q |
Document Quarterly Report | true |
Document Period End Date | Sep. 30, 2023 |
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, $0.01 par value per share |
Trading Symbol | TNL |
Security Exchange Name | NYSE |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Small Business | false |
Entity Emerging Growth Company | false |
Entity Shell Company | false |
Entity Common Stock, Shares Outstanding | 72,420,073 |
Amendment Flag | false |
Document Fiscal Year Focus | 2023 |
Document Fiscal Period Focus | Q3 |
Entity Central Index Key | 0001361658 |
Current Fiscal Year End Date | --12-31 |
Condensed Consolidated Statemen
Condensed Consolidated Statements Of Income/(Loss) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | ||
Net revenues | |||||
Net revenues | $ 986 | $ 937 | $ 2,814 | $ 2,668 | |
Expenses | |||||
Operating | 428 | 417 | 1,275 | 1,202 | |
Cost of vacation ownership interests | 43 | 39 | 107 | 125 | |
Consumer financing interest | 29 | 20 | 81 | 55 | |
Marketing | 141 | 125 | 379 | 337 | |
General and administrative | 108 | 117 | 347 | 358 | |
Depreciation and amortization | 28 | 30 | 83 | 91 | |
Restructuring | [1] | 2 | 0 | 12 | 8 |
COVID-19 related costs | 0 | 0 | 0 | 2 | |
Asset recoveries, net | 0 | 0 | (1) | (1) | |
Total expenses | 779 | 748 | 2,283 | 2,177 | |
Loss on sale of business | [2] | 0 | 0 | 2 | 0 |
Operating income | 207 | 189 | 529 | 491 | |
Interest expense | 64 | 48 | 183 | 143 | |
Other (income), net | (2) | (19) | (3) | (16) | |
Interest (income) | (3) | (2) | (9) | (3) | |
Income before income taxes | 148 | 162 | 358 | 367 | |
Provision for income taxes | 38 | 46 | 96 | 101 | |
Net income from continuing operations | 110 | 116 | 262 | 266 | |
Gain on disposal of discontinued business, net of income taxes | 0 | 0 | 5 | 0 | |
Net income attributable to Travel + Leisure Co. shareholders | $ 110 | $ 116 | $ 267 | $ 266 | |
Basic earnings per share | |||||
Continuing operations | [3] | $ 1.50 | $ 1.39 | $ 3.48 | $ 3.15 |
Discontinued operations | [3] | 0 | 0 | 0.07 | 0 |
Basic earnings per share | [3] | 1.50 | 1.39 | 3.55 | 3.15 |
Diluted earnings per share | |||||
Continuing operations | [3] | 1.49 | 1.38 | 3.46 | 3.12 |
Discontinued operations | [3] | 0 | 0 | 0.07 | 0 |
Diluted earnings per share | [3] | $ 1.49 | $ 1.38 | $ 3.53 | $ 3.12 |
Service and membership fees | |||||
Net revenues | |||||
Net revenues | $ 419 | $ 410 | $ 1,263 | $ 1,222 | |
Vacation ownership interest sales | |||||
Net revenues | |||||
Net revenues | 433 | 403 | 1,172 | 1,099 | |
Consumer financing | |||||
Net revenues | |||||
Net revenues | 107 | 104 | 313 | 302 | |
Other | |||||
Net revenues | |||||
Net revenues | $ 27 | $ 20 | $ 66 | $ 45 | |
[1]Includes $3 million of stock-based compensation expense for the nine months ended September 30, 2022, associated with the 2022 restructuring.[2]Represents the loss on sale of the Love Home Swap business.[3]Earnings per share amounts are calculated using whole numbers. |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income/(Loss) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income attributable to Travel + Leisure Co. shareholders | $ 110 | $ 116 | $ 267 | $ 266 |
Foreign currency translation adjustments, net of tax | (15) | (34) | (15) | (64) |
Other comprehensive loss, net of tax | (15) | (34) | (15) | (64) |
Comprehensive income | $ 95 | $ 82 | $ 252 | $ 202 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Assets | ||
Cash and cash equivalents | $ 238 | $ 550 |
Restricted cash (VIE - $80 as of 2023 and $83 as of 2022) | 154 | 138 |
Trade receivables, net | 184 | 160 |
Vacation ownership contract receivables, net (VIE - $2,102 as of 2023 and $2,164 as of 2022) | 2,460 | 2,370 |
Inventory | 1,149 | 1,193 |
Prepaid expenses | 247 | 202 |
Property and equipment, net | 655 | 658 |
Goodwill | 959 | 955 |
Other intangibles, net | 201 | 207 |
Other assets | 408 | 324 |
Total assets | 6,655 | 6,757 |
Liabilities and (deficit) | ||
Accounts payable | 71 | 65 |
Accrued expenses and other liabilities | 818 | 876 |
Deferred income | 435 | 399 |
Non-recourse vacation ownership debt (VIE) | 1,893 | 1,973 |
Debt | 3,729 | 3,669 |
Deferred income taxes | 706 | 679 |
Total liabilities | 7,652 | 7,661 |
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, 223,641,713 issued as of 2023 and 222,895,523 as of 2022 | 2 | 2 |
Treasury stock, at cost – 151,221,431 shares as of 2023 and 144,499,361 shares as of 2022 | (7,155) | (6,886) |
Additional paid-in capital | 4,268 | 4,242 |
Retained earnings | 1,971 | 1,808 |
Accumulated other comprehensive loss | (94) | (79) |
Total stockholders’ (deficit) | (1,008) | (913) |
Noncontrolling interest | 11 | 9 |
Total (deficit) | (997) | (904) |
Total liabilities and (deficit) | $ 6,655 | $ 6,757 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
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) | 223,641,713 | 222,895,523 |
Treasury Stock, Common, Shares | 151,221,431 | 144,499,361 |
Restricted cash (VIE - $80 as of 2023 and $83 as of 2022) | $ 154 | $ 138 |
Vacation ownership contract receivables, net (VIE - $2,102 as of 2023 and $2,164 as of 2022) | 2,460 | 2,370 |
Non-recourse vacation ownership debt (VIE) | 1,893 | 1,973 |
Variable Interest Entity, Primary Beneficiary [Member] | ||
Restricted cash (VIE - $80 as of 2023 and $83 as of 2022) | 80 | 83 |
Vacation ownership contract receivables, net (VIE - $2,102 as of 2023 and $2,164 as of 2022) | 2,102 | 2,164 |
Non-recourse vacation ownership debt (VIE) | $ 1,893 | $ 1,973 |
Statement of Cash Flows (Statem
Statement of Cash Flows (Statement) - USD ($) $ in Millions | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | ||
Operating activities | |||
Net income | $ 267 | $ 266 | |
Gain on disposal of discontinued business, net of income taxes | (5) | 0 | |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Provision for loan losses | 257 | 216 | |
Depreciation and amortization | 83 | 91 | |
Deferred income taxes | 28 | 15 | |
Stock-based compensation | 31 | 34 | |
Non-cash interest | 15 | 14 | |
Non-cash lease expense | 12 | 12 | |
Loss on sale of business | [1] | 2 | 0 |
Asset recoveries, net | 0 | (1) | |
Other, net | 0 | 9 | |
Net change in assets and liabilities, excluding the impact of acquisitions and dispositions: | |||
Trade receivables | (23) | (37) | |
Vacation ownership contract receivables | (354) | (283) | |
Inventory | 17 | (10) | |
Prepaid expenses | (46) | 18 | |
Other assets | (35) | (2) | |
Accounts payable, accrued expenses, and other liabilities | (78) | (85) | |
Deferred income | 27 | 10 | |
Net cash provided by operating activities | 198 | 267 | |
Investing activities | |||
Property and equipment additions | (42) | (36) | |
Acquisitions | (6) | (2) | |
Proceeds from sale of investments | 0 | (8) | |
Other, net | 2 | 2 | |
Net cash used in investing activities - continuing operations | (46) | (28) | |
Net cash used in investing activities - discontinued operations | 0 | (6) | |
Net cash used in investing activities | (46) | (34) | |
Financing activities | |||
Proceeds from non-recourse vacation ownership debt | 1,207 | 1,155 | |
Principal payments on non-recourse vacation ownership debt | (1,282) | (1,193) | |
Proceeds from debt | 1,404 | 20 | |
Principal payments on debt | (960) | (13) | |
Repayment of notes | (405) | (2) | |
Repurchase of common stock | (269) | (240) | |
Dividends to shareholders | [2] | (104) | (103) |
Payment of deferred acquisition consideration | (14) | (19) | |
Debt issuance/modification costs | (11) | (12) | |
Net share settlement of incentive equity awards | (10) | (7) | |
Repayments of vacation ownership inventory arrangement | (6) | (6) | |
Proceeds from issuance of common stock | 6 | 6 | |
Net cash used in financing activities | (444) | (414) | |
Effect of changes in exchange rates on cash, cash equivalents and restricted cash | (4) | (11) | |
Net change in cash, cash equivalents and restricted cash | (296) | (192) | |
Cash, cash equivalents and restricted cash, beginning of period | 688 | 497 | |
Cash, cash equivalents and restricted cash, end of period | 392 | 305 | |
Less: Restricted cash | 154 | 136 | |
Cash and cash equivalents | $ 238 | $ 169 | |
[1]Represents the loss on sale of the Love Home Swap business.[2]The Company paid cash dividends of $0.45 and $1.35 per share during the three and nine months ended September 30, 2023 and $0.40 and $1.20 per share during the three and nine months ended September 30, 2022. |
Statement of Shareholders' Equi
Statement of Shareholders' Equity (Statement) - USD ($) 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, 2021 | 85.9 | ||||||
Beginning Balance, value at Dec. 31, 2021 | $ (794) | $ 2 | $ (6,534) | $ 4,192 | $ 1,587 | $ (48) | $ 7 |
Net income attributable to Travel + Leisure Co. shareholders | 51 | ||||||
Net income attributable to Travel + Leisure Co. shareholders | 51 | ||||||
Other comprehensive loss, net of tax | 3 | 3 | |||||
Issuance of shares for RSU vesting | 0.3 | ||||||
Net share settlement of stock-based compensation | (5) | (5) | |||||
Change in stock-based compensation | 12 | 12 | |||||
Repurchase of common stock, count | (0.8) | ||||||
Repurchase of common stock, value | (45) | (45) | |||||
Dividends, common stock | $ (35) | (35) | |||||
Common Stock, Dividends, Per Share, Cash Paid | $ 0.40 | ||||||
Non-controlling interest ownership change | $ 1 | 1 | |||||
Other | 1 | 1 | |||||
Shares, Issued, Ending Balance at Mar. 31, 2022 | 85.4 | ||||||
Ending Balance, value at Mar. 31, 2022 | (811) | $ 2 | (6,579) | 4,200 | 1,603 | (45) | 8 |
Shares, Issued, Beginning Balance at Dec. 31, 2021 | 85.9 | ||||||
Beginning Balance, value at Dec. 31, 2021 | (794) | $ 2 | (6,534) | 4,192 | 1,587 | (48) | 7 |
Net income attributable to Travel + Leisure Co. shareholders | 266 | ||||||
Net income attributable to Travel + Leisure Co. shareholders | 266 | ||||||
Other comprehensive loss, net of tax | $ (64) | ||||||
Common Stock, Dividends, Per Share, Cash Paid | $ 1.20 | ||||||
Shares, Issued, Ending Balance at Sep. 30, 2022 | 81.2 | ||||||
Ending Balance, value at Sep. 30, 2022 | $ (903) | $ 2 | (6,778) | 4,227 | 1,750 | (112) | 8 |
Shares, Issued, Beginning Balance at Mar. 31, 2022 | 85.4 | ||||||
Beginning Balance, value at Mar. 31, 2022 | (811) | $ 2 | (6,579) | 4,200 | 1,603 | (45) | 8 |
Net income attributable to Travel + Leisure Co. shareholders | 100 | ||||||
Net income attributable to Travel + Leisure Co. shareholders | 100 | ||||||
Other comprehensive loss, net of tax | (33) | (33) | |||||
Issuance of shares for RSU vesting | 0.1 | ||||||
Net share settlement of stock-based compensation | (1) | (1) | |||||
Stock Issued During Period, Shares, Employee Stock Purchase Plans | 0.1 | ||||||
Employee stock purchase program issuances | 5 | 5 | |||||
Change in stock-based compensation | 12 | 12 | |||||
Repurchase of common stock, count | (1.7) | ||||||
Repurchase of common stock, value | (83) | (83) | |||||
Dividends, common stock | $ (35) | (35) | |||||
Common Stock, Dividends, Per Share, Cash Paid | $ 0.40 | ||||||
Other | (1) | 1 | |||||
Shares, Issued, Ending Balance at Jun. 30, 2022 | 83.9 | ||||||
Ending Balance, value at Jun. 30, 2022 | $ (846) | $ 2 | (6,663) | 4,217 | 1,668 | (78) | 8 |
Net income attributable to Travel + Leisure Co. shareholders | 116 | 116 | |||||
Net income attributable to Travel + Leisure Co. shareholders | 116 | ||||||
Other comprehensive loss, net of tax | (34) | (34) | |||||
Issuance of shares for RSU vesting | 0.1 | ||||||
Net share settlement of stock-based compensation | (1) | (1) | |||||
Change in stock-based compensation | 10 | 10 | |||||
Repurchase of common stock, count | (2.8) | ||||||
Repurchase of common stock, value | (115) | (115) | |||||
Dividends, common stock | $ (34) | (34) | |||||
Common Stock, Dividends, Per Share, Cash Paid | $ 0.40 | ||||||
Other | $ 1 | 1 | |||||
Shares, Issued, Ending Balance at Sep. 30, 2022 | 81.2 | ||||||
Ending Balance, value at Sep. 30, 2022 | (903) | $ 2 | (6,778) | 4,227 | 1,750 | (112) | 8 |
Shares, Issued, Beginning Balance at Dec. 31, 2022 | 78.4 | ||||||
Beginning Balance, value at Dec. 31, 2022 | (904) | $ 2 | (6,886) | 4,242 | 1,808 | (79) | 9 |
Net income attributable to Travel + Leisure Co. shareholders | 64 | ||||||
Net income attributable to Travel + Leisure Co. shareholders | 64 | ||||||
Other comprehensive loss, net of tax | (2) | (2) | |||||
Issuance of shares for RSU vesting | 0.3 | ||||||
Net share settlement of stock-based compensation | (5) | (5) | |||||
Change in stock-based compensation | 10 | 10 | |||||
Repurchase of common stock, count | (2.5) | ||||||
Repurchase of common stock, value | (102) | (102) | |||||
Dividends, common stock | $ (36) | (36) | |||||
Common Stock, Dividends, Per Share, Cash Paid | $ 0.45 | ||||||
Shares, Issued, Ending Balance at Mar. 31, 2023 | 76.2 | ||||||
Ending Balance, value at Mar. 31, 2023 | $ (975) | $ 2 | (6,988) | 4,247 | 1,836 | (81) | 9 |
Shares, Issued, Beginning Balance at Dec. 31, 2022 | 78.4 | ||||||
Beginning Balance, value at Dec. 31, 2022 | (904) | $ 2 | (6,886) | 4,242 | 1,808 | (79) | 9 |
Net income attributable to Travel + Leisure Co. shareholders | 267 | ||||||
Net income attributable to Travel + Leisure Co. shareholders | 267 | ||||||
Other comprehensive loss, net of tax | $ (15) | ||||||
Common Stock, Dividends, Per Share, Cash Paid | $ 1.35 | ||||||
Shares, Issued, Ending Balance at Sep. 30, 2023 | 72.4 | ||||||
Ending Balance, value at Sep. 30, 2023 | $ (997) | $ 2 | (7,155) | 4,268 | 1,971 | (94) | 11 |
Shares, Issued, Beginning Balance at Mar. 31, 2023 | 76.2 | ||||||
Beginning Balance, value at Mar. 31, 2023 | (975) | $ 2 | (6,988) | 4,247 | 1,836 | (81) | 9 |
Net income attributable to Travel + Leisure Co. shareholders | 94 | ||||||
Net income attributable to Travel + Leisure Co. shareholders | 94 | ||||||
Other comprehensive loss, net of tax | 2 | 2 | |||||
Issuance of shares for RSU vesting | 0.3 | ||||||
Net share settlement of stock-based compensation | (5) | (5) | |||||
Stock Issued During Period, Shares, Employee Stock Purchase Plans | 0.1 | ||||||
Employee stock purchase program issuances | 5 | 5 | |||||
Change in stock-based compensation | 12 | 12 | |||||
Repurchase of common stock, count | (2.6) | ||||||
Repurchase of common stock, value | (102) | (102) | |||||
Dividends, common stock | $ (35) | (35) | |||||
Common Stock, Dividends, Per Share, Cash Paid | $ 0.45 | ||||||
Non-controlling interest ownership change | $ 1 | 1 | |||||
Other | (1) | (1) | |||||
Shares, Issued, Ending Balance at Jun. 30, 2023 | 74 | ||||||
Ending Balance, value at Jun. 30, 2023 | (1,004) | $ 2 | (7,090) | 4,258 | 1,895 | (79) | 10 |
Net income attributable to Travel + Leisure Co. shareholders | 110 | 110 | |||||
Net income attributable to Travel + Leisure Co. shareholders | 110 | ||||||
Other comprehensive loss, net of tax | (15) | (15) | |||||
Change in stock-based compensation | 9 | 9 | |||||
Repurchase of common stock, count | (1.6) | ||||||
Repurchase of common stock, value | (65) | (65) | |||||
Dividends, common stock | $ (34) | (34) | |||||
Common Stock, Dividends, Per Share, Cash Paid | $ 0.45 | ||||||
Non-controlling interest ownership change | $ 1 | 1 | |||||
Other | 1 | 1 | |||||
Shares, Issued, Ending Balance at Sep. 30, 2023 | 72.4 | ||||||
Ending Balance, value at Sep. 30, 2023 | $ (997) | $ 2 | $ (7,155) | $ 4,268 | $ 1,971 | $ (94) | $ 11 |
Background and Basis of Present
Background and Basis of Presentation | 9 Months Ended |
Sep. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization, Consolidation and Presentation of Financial Statements Disclosure | Background and Basis of Presentation Background Travel + Leisure Co. and its subsidiaries (collectively, “Travel + Leisure Co.,” or the “Company”) is a global provider of hospitality services and travel products. The Company has two reportable segments: Vacation Ownership and Travel and Membership. 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 substantially comprised of the Wyndham Destinations business line. The Travel and Membership segment operates a variety of travel businesses, including vacation exchange brands, travel technology platforms, travel memberships, and direct-to-consumer rentals. This segment is comprised of the Exchange and Travel Club business lines. 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 United States (“GAAP”). All intercompany balances and transactions have been eliminated in the Condensed Consolidated Financial Statements. 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 2022 Consolidated Financial Statements included in its Annual Report on Form 10-K filed with the Securities and Exchange Commission (“SEC”) on February 22, 2023. |
New Accounting Pronouncements
New Accounting Pronouncements | 9 Months Ended |
Sep. 30, 2023 | |
Accounting Changes and Error Corrections [Abstract] | |
New Accounting Pronouncements | New Accounting Pronouncements Recently Issued Accounting Pronouncements Business Combinations—Joint Venture Formations . In August 2023, the Financial Accounting Standards Board (“FASB”) issued guidance to address the accounting for contributions made to a joint venture, upon formation, in a joint venture’s separate financial statements. The guidance was issued in an effort to reduce the diversity in practice and requires a joint venture to initially measure its assets and liabilities at fair value on the formation date. This guidance is effective prospectively for all joint ventures within the scope of the standard that are formed on or after January 1, 2025. Existing joint ventures have the option to apply the guidance retrospectively. Early adoption is permitted. The Company is currently evaluating the impact of the adoption of this guidance on its financial statements and related disclosures. Recently Adopted Accounting Pronouncements Presentation of Financial Statements . In July 2023, the FASB issued guidance which amends various SEC paragraphs pursuant to the issuance of SEC Staff Accounting Bulletin No. 120. The bulletin added interpretive guidance for public companies to consider when entering into share-based payment transactions while in possession of material non-public information (i.e., “spring-loaded” awards). This guidance became effective upon issuance and the adoption of this guidance did not have an impact on the Company's Condensed Consolidated Financial Statements and related disclosures. The Company will monitor future stock-based awards and will include additional disclosures in future filings, if applicable. Contract Assets and Contract Liabilities from Contracts with Customers Acquired in a Business Combination. In October 2021, the FASB issued guidance which requires companies to apply Accounting Standards Codification (“ASC”) 606 - Revenue from Contracts with Customers to recognize and measure contract assets and contract liabilities from contracts with customers acquired in a business combination. This creates an exception to the general recognition and measurement principle in ASC 805 - Business Combinations. This generally will result in companies recognizing contract assets and contract liabilities at amounts consistent with those recorded by the acquiree immediately before the acquisition date. This guidance became effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. The amendments should be applied prospectively to business combinations occurring on or after the effective date. The Company early adopted this guidance in 2022. The adoption of this guidance has not had a material impact on the Company's Condensed Consolidated Financial Statements and related disclosures. Troubled Debt Restructurings and Vintage Disclosures. In March 2022, the FASB issued guidance which eliminates the accounting guidance in ASC 310-40 Troubled Debt Restructurings for Creditors and amends the guidance on “vintage disclosures” to require disclosure of current-period gross write-offs by year of origination. This guidance became effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. As a result of adopting this guidance the Company added the required disclosure of current-period gross write-offs in Note 7— Vacation Ownership Contract Receivables. Aside from this additional disclosure the adoption of this guidance did not have a material impact on the Company’s Condensed Consolidated Financial Statements or related disclosures. |
Revenue Recognition
Revenue Recognition | 9 Months Ended |
Sep. 30, 2023 | |
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 allocates the sales price between the VOI sale and the non-cash incentive. Non-cash incentives generally have expiration periods of two years 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. The Company reduces its management fee revenue 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 and reimbursable 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. Property management fee and reimbursable revenues were (in millions): Three Months Ended Nine Months Ended September 30, September 30, 2023 2022 2023 2022 Management fee revenues $ 110 $ 106 $ 326 $ 313 Reimbursable revenues 96 85 284 252 Property management fees and reimbursable revenues $ 206 $ 191 $ 610 $ 565 One of the associations that the Company manages paid its Travel and Membership segment $8 million and $7 million for exchange services during the three months ended September 30, 2023 and 2022, and $25 million and $24 million during the nine months ended September 30, 2023 and 2022. Travel and Membership Travel and Membership derives a majority of its revenues from membership dues and fees for facilitating members’ trading of their timeshare intervals. Revenues from membership dues represent the fees paid by members or affiliated clubs on their behalf. 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. 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 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 travel club 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. Revenues from other vacation exchange related product fees are deferred and recognized upon the occurrence of a future exchange, event, or other related transaction. 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 service 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 consisted of (in millions): September 30, December 31, 2022 Deferred subscription revenue $ 163 $ 164 Deferred VOI trial package revenue 128 101 Deferred VOI incentive revenue 78 70 Deferred exchange-related revenue (a) 59 53 Deferred co-branded credit card programs revenue 7 9 Deferred other revenue 1 3 Total $ 436 $ 400 (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 three years of purchase, but may extend longer for certain programs. 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 two years of the VOI sale, but may extend longer for certain programs. 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 exchange-related revenue primarily represents payments received in advance from members to book vacation exchanges which are recognized upon the future confirmed transaction. Deferred revenue also includes other leisure-related service and product revenues which are recognized as customers utilize the associated benefits. Changes in contract liabilities for the periods presented were as follows (in millions): Nine Months Ended September 30, 2023 2022 Beginning balance $ 400 $ 382 Additions 257 218 Revenue recognized (221) (205) Ending balance $ 436 $ 395 Capitalized Contract Costs The 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 recognized over the utilization period when usage or expiration occurs, which is typically within three years from the date of sale. As of September 30, 2023 and December 31, 2022, these capitalized costs were $45 million and $35 million and are included within Other assets on the Condensed Consolidated Balance Sheets. The 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, 2023, the capitalized costs were $17 million, of which $11 million are included in Prepaid expenses and $6 million are included in Other assets on the Condensed Consolidated Balance Sheets. As of December 31, 2022, the capitalized costs were $18 million, of which $11 million are included in Prepaid expenses and $7 million are included in 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 will satisfy the performance obligation and when the customer will pay for that good or service will be 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): 10/1/2023 - 9/30/2024 10/1/2024 - 9/30/2025 10/1/2025 - 9/30/2026 Thereafter Total Subscription revenue $ 96 $ 37 $ 16 $ 14 $ 163 VOI trial package revenue 121 2 2 3 128 VOI incentive revenue 78 — — — 78 Exchange-related revenue 56 3 — — 59 Co-branded credit card programs revenue 3 3 1 — 7 Other revenue 1 — — — 1 Total $ 355 $ 45 $ 19 $ 17 $ 436 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): Three Months Ended Nine Months Ended September 30, September 30, 2023 2022 2023 2022 Vacation Ownership Vacation ownership interest sales $ 433 $ 403 $ 1,172 $ 1,099 Property management fees and reimbursable revenues 206 191 610 565 Consumer financing 107 104 313 302 Fee-for-Service commissions 40 36 108 87 Ancillary revenues 26 20 62 45 Total Vacation Ownership 812 754 2,265 2,098 Travel and Membership Transaction revenues 121 129 395 411 Subscription revenues 46 47 137 137 Ancillary revenues 7 7 21 24 Total Travel and Membership 174 183 553 572 Corporate and other Ancillary revenues 1 — 4 — Eliminations (1) — (8) (2) Total Corporate and other — — (4) (2) Net revenues $ 986 $ 937 $ 2,814 $ 2,668 |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Sep. 30, 2023 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share The computations of basic and diluted earnings per share (“EPS”) are based on Net income 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, 2023 2022 2023 2022 Net income from continuing operations attributable to Travel + Leisure Co. shareholders $ 110 $ 116 $ 262 $ 266 Gain on disposal of discontinued business attributable to Travel + Leisure Co. shareholders, net of income taxes — — 5 — Net income attributable to Travel + Leisure Co. shareholders $ 110 $ 116 $ 267 $ 266 Basic earnings per share (a) Continuing operations $ 1.50 $ 1.39 $ 3.48 $ 3.15 Discontinued operations — — 0.07 — $ 1.50 $ 1.39 $ 3.55 $ 3.15 Diluted earnings per share (a) Continuing operations $ 1.49 $ 1.38 $ 3.46 $ 3.12 Discontinued operations — — 0.07 — $ 1.49 $ 1.38 $ 3.53 $ 3.12 Basic weighted average shares outstanding 73.3 83.0 75.3 84.6 RSUs, (b) PSUs (c) and NQs (d) 0.3 0.6 0.4 0.9 Diluted weighted average shares outstanding (e) 73.6 83.6 75.7 85.5 Dividends: Aggregate dividends paid to shareholders (f) $ 33 $ 33 $ 104 $ 103 (a) Earnings per share amounts are calculated using whole numbers. (b) Excludes 1.0 million and 1.3 million of restricted stock units (“RSUs”) that would have been anti-dilutive to EPS for the three and nine months ended September 30, 2023 and 0.7 million and 0.6 million of RSUs that would have been anti-dilutive to EPS for the three and nine months ended September 30, 2022. These shares could potentially dilute EPS in the future. (c) Excludes performance-vested restricted stock units (“PSUs”) of 0.8 million for both the three and nine months ended September 30, 2023 and 0.5 million of PSUs for both the three and nine months ended September 30, 2022, as the Company has not met the required performance metrics. These PSUs could potentially dilute EPS in the future. (d) Excludes 2.3 million of outstanding non-qualified stock options (“NQs”) that would have been anti-dilutive to EPS for both the three and nine months ended September 30, 2023 and 2.0 million and 1.1 million of outstanding NQs for the three and nine months ended September 30, 2022. These outstanding NQs 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. (f) The Company paid cash dividends of $0.45 and $1.35 per share during the three and nine months ended September 30, 2023 and $0.40 and $1.20 per share during the three and nine months ended September 30, 2022. Share Repurchase Program The following table summarizes stock repurchase activity under the current share repurchase program (in millions): Shares Cost As of December 31, 2022 120.0 $ 6,104 Repurchases 6.7 267 As of September 30, 2023 126.7 $ 6,371 Since the inception of the Company’s share repurchase program in August 2007 proceeds received from stock option exercises have increased the repurchase capacity by $81 million. As of September 30, 2023, the Company had $210 million of remaining availability under the program. During 2022, the United States enacted the Inflation Reduction Act which became effective for the 2023 tax year. Among other provisions, this new law imposes a 1% excise tax on stock buybacks. During the nine months ended September 30, 2023, the Company recorded $2 million of excise tax related to share repurchases; which is included within Treasury stock on the Condensed Consolidated Balance Sheets. |
Acquisitions
Acquisitions | 9 Months Ended |
Sep. 30, 2023 | |
Business Combinations [Abstract] | |
Acquisitions | Acquisitions Playbook365. On January 3, 2023, the Company acquired the Playbook365 business for $13 million, comprised of $6 million of cash paid at closing and contingent consideration with a fair market value of $7 million, which can range to $24 million, based on the achievement of certain financial metrics. Playbook365 is a youth and amateur sports management platform. This platform was integrated with Alliance Reservations Network’s (“ARN”) event lodging management platform to create an all-in-one solution in the youth sports market. This acquisition was made to broaden the products and services offered by ARN. This transaction was accounted for as a business acquisition. As of September 30, 2023, the Company has recognized the assets and liabilities of Playbook365 based on estimates of their acquisition date fair values. The determination of the fair values of the acquired assets and assumed liabilities, including goodwill and other intangible assets, requires significant judgment. The purchase price allocation includes: (i) $5 million of developed software with a weighted average life of four years included within Property and equipment, net on the Condensed Consolidated Balance Sheets; (ii) $5 million of Goodwill; (iii) $3 million of definite-lived intangible assets with a weighted average life of four years primarily consisting of customer relationships included within Other intangibles, net on the Condensed Consolidated Balance Sheets; and (iv) $7 million of Accrued expenses and other liabilities. All of the goodwill and other intangible assets are expected to be deductible for income tax purposes. This business is included within the Travel and Membership segment. The Company completed purchase accounting for this transaction during the third quarter of 2023. |
Discontinued Operations
Discontinued Operations | 9 Months Ended |
Sep. 30, 2023 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operations | Discontinued Operations During 2018 the Company sold its European vacation rentals business. In connection with this sale, during the nine months ended September 30, 2023, the Company recognized a $5 million Gain on disposal of discontinued business, net of income taxes associated with the release of a guarantee. See Note 21— Transactions with Former Parent and Former Subsidiaries for additional information. During the nine months ended September 30, 2022, the Company had $6 million of Net cash used in investing activities from discontinued operations on the Condensed Consolidated Statements of Cash Flows related to the settlement of post-closing adjustment claims associated with the sale of the European vacation rentals business. |
Vacation Ownership Contract Rec
Vacation Ownership Contract Receivables | 9 Months Ended |
Sep. 30, 2023 | |
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 the following (in millions): September 30, December 31, Vacation ownership contract receivables: Securitized (a) $ 2,102 $ 2,164 Non-securitized (b) 927 747 Vacation ownership contract receivables, gross 3,029 2,911 Less: allowance for loan losses 569 541 Vacation ownership contract receivables, net $ 2,460 $ 2,370 (a) Excludes $16 million and $17 million of accrued interest on VOCRs as of September 30, 2023 and December 31, 2022, which are included in Trade receivables, net on the Condensed Consolidated Balance Sheets. (b) Excludes $8 million and $7 million of accrued interest on VOCRs as of September 30, 2023 and December 31, 2022, which are included in Trade receivables, net on the Condensed Consolidated Balance Sheets. During the three and nine months ended September 30, 2023, the Company’s securitized VOCRs generated interest income of $78 million and $232 million. During the three and nine months ended September 30, 2022, the Company’s securitized VOCRs generated interest income of $73 million and $214 million. Such interest income is included within Consumer financing revenue on the Condensed Consolidated Statements of Income. During the nine months ended September 30, 2023 and 2022, the Company had net VOCR originations of $1.04 billion and $922 million, and received principal collections of $681 million and $639 million. The weighted average interest rate on outstanding VOCRs was 14.7% and 14.6% as of September 30, 2023 and December 31, 2022. The Company records the difference between VOCRs and the variable consideration included in the transaction price for the sale of the related VOIs as a provision for loan losses on VOCRs. The activity in the allowance for loan losses on VOCRs was as follows (in millions): Nine Months Ended September 30, 2023 2022 Allowance for loan losses, beginning balance $ 541 $ 510 Provision for loan losses, net 257 216 Contract receivables write-offs, net (229) (187) Allowance for loan losses, ending balance $ 569 $ 539 The Company recorded net provisions for loan losses of $99 million and $257 million as a reduction of net revenues during the three and nine months ended September 30, 2023, and $91 million and $216 million for the three and nine months ended September 30, 2022. 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 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, 2023 700+ 600-699 <600 No Score Asia Pacific Total Current $ 1,799 $ 742 $ 117 $ 83 $ 158 $ 2,899 31 - 60 days 19 24 13 2 1 59 61 - 90 days 10 16 11 1 — 38 91 - 120 days 8 12 12 1 — 33 Total $ 1,836 $ 794 $ 153 $ 87 $ 159 $ 3,029 As of December 31, 2022 700+ 600-699 <600 No Score Asia Pacific Total Current $ 1,674 $ 700 $ 93 $ 142 $ 143 $ 2,752 31 - 60 days 24 32 11 5 1 73 61 - 90 days 16 20 7 2 — 45 91 - 120 days 12 17 10 2 — 41 Total $ 1,726 $ 769 $ 121 $ 151 $ 144 $ 2,911 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. 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. 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, 2023 700+ 600-699 <600 No Score Asia Pacific Total 2023 $ 686 $ 229 $ 14 $ 25 $ 77 $ 1,031 2022 459 230 48 16 19 772 2021 190 98 30 5 13 336 2020 96 42 12 4 10 164 2019 145 71 20 12 14 262 Prior 260 124 29 25 26 464 Total $ 1,836 $ 794 $ 153 $ 87 $ 159 $ 3,029 As of December 31, 2022 700+ 600-699 <600 No Score Asia Pacific Total 2022 $ 745 $ 291 $ 19 $ 87 $ 52 $ 1,194 2021 275 149 30 8 19 481 2020 134 60 12 5 15 226 2019 198 97 23 16 21 355 2018 162 74 16 13 14 279 Prior 212 98 21 22 23 376 Total $ 1,726 $ 769 $ 121 $ 151 $ 144 $ 2,911 The table below represents the gross write-offs of financing receivables by year of origination (in millions): Nine Months Ended September 30, 2023 2023 $ 13 2022 113 2021 38 2020 15 2019 20 Prior 30 Total $ 229 |
Inventory
Inventory | 9 Months Ended |
Sep. 30, 2023 | |
Inventory Disclosure [Abstract] | |
Inventory | Inventory Inventory consisted of the following (in millions): September 30, December 31, Completed VOI inventory $ 913 $ 982 Estimated VOI recoveries 202 192 Land held for VOI development 20 1 VOI construction in process 9 14 Exchange and other inventory 5 4 Total inventory $ 1,149 $ 1,193 As VOI inventory is completed it is transferred into property and equipment until such units are registered and made available for sale. Once registered and available for sale, the units are then transferred back into completed inventory. The Company had net transfers of VOI inventory to property and equipment of $12 million and $91 million during the nine months ended September 30, 2023 and 2022. Inventory Obligations The Company has entered into inventory sale transactions with third-party developers for which the Company has conditional rights and 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): Atlanta (a) (b) Las Vegas (a) Other (c) Total December 31, 2022 $ — $ 30 $ 7 $ 37 Purchases — — 66 66 Payments — (30) (64) (94) September 30, 2023 $ — $ — $ 9 $ 9 December 31, 2021 $ — $ 13 $ 1 $ 14 Purchases 67 28 46 141 Payments (67) (35) (38) (140) September 30, 2022 $ — $ 6 $ 9 $ 15 (a) Included in Accrued expenses and other liabilities on the Condensed Consolidated Balance Sheets. (b) Represents vacation ownership inventory and property and equipment in Atlanta, Georgia, acquired from a third-party developer. (c) Included in Accounts payable on the Condensed Consolidated Balance Sheets. |
Property and equipment
Property and equipment | 9 Months Ended |
Sep. 30, 2023 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment Disclosure [Text Block] | Property and Equipment Property and equipment, net consisted of the following (in millions): September 30, December 31, 2022 Capitalized software $ 753 $ 724 Building and leasehold improvements (a) 685 671 Furniture, fixtures and equipment 191 192 Finance leases 39 27 Land 31 30 Construction in progress 13 8 Total property and equipment 1,712 1,652 Less: accumulated depreciation and amortization 1,057 994 Property and equipment, net $ 655 $ 658 (a) Includes $254 million and $242 million of unregistered VOI inventory as of September 30, 2023 and December 31, 2022. |
Debt
Debt | 9 Months Ended |
Sep. 30, 2023 | |
Debt Disclosure [Abstract] | |
Debt | Debt The Company’s indebtedness consisted of the following (in millions): September 30, December 31, Non-recourse vacation ownership debt : (a) Term notes (b) $ 1,424 $ 1,545 USD bank conduit facility (due September 2025) (c) 372 321 AUD/NZD bank conduit facility (due December 2024) (d) 97 107 Total $ 1,893 $ 1,973 Debt : (e) $1.0 billion secured revolving credit facility (due October 2026) (f) $ 451 $ — $300 million secured term loan B (due May 2025) (g) 284 286 $300 million secured incremental term loan B (due December 2029) (h) 287 288 $400 million 3.90% secured notes (due March 2023) (i) — 400 $300 million 5.65% secured notes (due April 2024) 300 299 $350 million 6.60% secured notes (due October 2025) (j) 347 346 $650 million 6.625% secured notes (due July 2026) 646 645 $400 million 6.00% secured notes (due April 2027) (k) 404 406 $650 million 4.50% secured notes (due December 2029) 643 642 $350 million 4.625% secured notes (due March 2030) 347 346 Finance leases 20 11 Total $ 3,729 $ 3,669 (a) Represents non-recourse debt that is securitized through bankruptcy-remote special purpose entities, 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 $2.24 billion and $2.29 billion of underlying gross VOCRs and related assets (which legally are not assets of the Company) as of September 30, 2023 and December 31, 2022. (b) The carrying amounts of the term notes are net of deferred financing costs of $19 million and $18 million as of September 30, 2023 and December 31, 2022. (c) The Company has a borrowing capacity of $600 million under the USD bank conduit facility through September 2025. Borrowings under this facility are required to be repaid as the collateralized receivables amortize but no later than October 2026. (d) The Company has a borrowing capacity of 200 million Australian dollars (“AUD”) and 25 million New Zealand dollars (“NZD”) under the AUD/NZD bank conduit facility through December 2024. Borrowings under this facility are required to be repaid no later than January 2027. (e) The carrying amounts of the secured notes and term loan are net of unamortized discounts of $20 million and $23 million as of September 30, 2023 and December 31, 2022, and net of unamortized debt financing costs of $9 million and $10 million as of September 30, 2023 and December 31, 2022. (f) The weighted average effective interest rate on facility borrowings was 7.35% and 7.53% as of September 30, 2023 and December 31, 2022. (g) The weighted average effective interest rate on facility borrowings was 7.33% and 4.01% as of September 30, 2023 and December 31, 2022. (h) The weighted average effective interest rate on facility borrowings was 9.15% and 8.24% as of September 30, 2023 and December 31, 2022. (i) Includes less than $1 million of unamortized gains from the settlement of a derivative as of December 31, 2022. (j) Includes $2 million and $3 million of unamortized losses from the settlement of a derivative as of September 30, 2023 and December 31, 2022. (k) Includes $6 million and $7 million of unamortized gains from the settlement of a derivative as of September 30, 2023 and December 31, 2022. USD Bank Conduit Renewal On September 26, 2023, the Company renewed its $600 million USD timeshare receivables conduit facility, extending the end of the commitment period from July 2024 to September 2025 and making certain other amendments, including to the advance rate. The facility bears interest based on variable commercial paper rates plus a spread or the Daily Simple Secured Overnight Financing Rate (“SOFR”), plus a spread. Sierra Timeshare 2023-1 Receivables Funding LLC On April 5, 2023, the Company closed on a placement of a series of term notes payable, issued by Sierra Timeshare 2023-1 Receivables Funding LLC, with an initial principal amount of $250 million, secured by VOCRs and bearing interest at a weighted average coupon rate of 6.33%. The advance rate for this transaction was 91.25%. Sierra Timeshare 2023-2 Receivables Funding LLC On July 20, 2023, the Company closed on a placement of a series of term notes payable, issued by Sierra Timeshare 2023-2 Receivables Funding LLC, with an initial principal amount of $300 million, secured by VOCRs and bearing interest at a weighted average coupon rate of 6.72%. The advance rate for this transaction was 91.70%. Credit Agreement Amendment On March 30, 2023, the Company entered into the fourth amendment to the credit agreement governing its revolving credit facility and term loan B facilities. Through this amendment the Company exercised its early opt-in election to change the benchmark rate on the revolving credit facility and term loan B facility due May 2025 from the USD London Interbank Offered Rate (“LIBOR”) to SOFR. This change became effective on March 31, 2023, for both new borrowings and rollovers of then existing USD LIBOR based borrowings (except Base Rate borrowings) and eliminated the Company’s exposure to LIBOR. Maturities and Capacity The Company’s outstanding indebtedness as of September 30, 2023, matures as follows (in millions): Non-recourse Vacation Ownership Debt Debt Total Within 1 year $ 215 $ 313 $ 528 Between 1 and 2 years 209 291 500 Between 2 and 3 years 513 1,000 1,513 Between 3 and 4 years 184 860 1,044 Between 4 and 5 years 185 3 188 Thereafter 587 1,262 1,849 $ 1,893 $ 3,729 $ 5,622 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, 2023, the available capacity under the Company’s borrowing arrangements was as follows (in millions): Non-recourse Conduit Facilities (a) Revolving Credit Facilities (b) Total capacity $ 744 $ 1,000 Less: outstanding borrowings 469 451 Less: letters of credit — 2 Available capacity $ 275 $ 547 (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 facility and term loan B facilities 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 no less than 2.50 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. As of September 30, 2023, the Company’s interest coverage ratio was 4.40 to 1.0 and the first lien leverage ratio was 3.69 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, 2023, the Company was in compliance with the financial covenants described above. Each of the Company’s non-recourse securitized term notes and bank conduit facilities contain various triggers relating to the performance of the applicable loan pools. If the VOCR 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, 2023, all of the Company’s securitized loan pools were in compliance with applicable contractual triggers. Interest Expense The Company incurred interest expense of $64 million and $183 million during the three and nine months ended September 30, 2023, excluding interest expense associated with non-recourse vacation ownership debt. These amounts include offsets of less than $1 million of capitalized interest during each of the three and nine months ended September 30, 2023. Cash paid related to such interest was $174 million during the nine months ended September 30, 2023. The Company incurred interest expense of $48 million and $143 million during the three and nine months ended September 30, 2022, excluding interest expense associated with non-recourse vacation ownership debt. These amounts include offsets of less than $1 million and $1 million of capitalized interest during the three and nine months ended September 30, 2022. Cash paid related to such interest was $135 million during the nine months ended September 30, 2022. Interest expense incurred in connection with the Company’s non-recourse vacation ownership debt was $29 million and $81 million during the three and nine months ended September 30, 2023, and $20 million and $55 million during the three and nine months ended September 30, 2022. These amounts are included within Consumer financing interest on the Condensed Consolidated Statements of Income. Cash paid related to such interest was $65 million and $39 million for the nine months ended September 30, 2023 and 2022. |
Variable Interest Entities
Variable Interest Entities | 9 Months Ended |
Sep. 30, 2023 | |
Variable Interest Entity, Primary Beneficiary, Does Not Hold Majority Voting Interest, Disclosures [Abstract] | |
Variable Interest Entities | Variable Interest Entities The Company analyzes its variable interests, including loans, guarantees, interests in special purpose entities (“SPEs”), and equity investments, to determine if an entity in which the Company has a variable interest is a variable interest entity (“VIE”). If the entity is deemed to be a VIE, the Company consolidates those VIEs for which the Company 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 to 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) $ 2,102 $ 2,164 Securitized restricted cash (b) 80 83 Interest receivables on securitized contract receivables (c) 16 17 Other assets (d) 44 25 Total SPE assets 2,242 2,289 Non-recourse term notes (e) (f) 1,424 1,545 Non-recourse conduit facilities (e) 469 428 Other liabilities (g) 3 5 Total SPE liabilities 1,896 1,978 SPE assets in excess of SPE liabilities $ 346 $ 311 (a) 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 facilities 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 $19 million and $18 million as of September 30, 2023 and December 31, 2022, 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 $927 million and $747 million as of September 30, 2023 and December 31, 2022. 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 $ 346 $ 311 Non-securitized contract receivables 927 747 Less: allowance for loan losses 569 541 Total, net $ 704 $ 517 |
Fair Value
Fair Value | 9 Months Ended |
Sep. 30, 2023 | |
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, 2023, the Company had foreign exchange contracts resulting in less than $1 million of assets which are included within Other assets Accrued expenses and other liabilities The impact of interest rate caps was immaterial as of September 30, 2023 and 2022. 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, 2023 December 31, 2022 Carrying Estimated Fair Value Carrying Estimated Fair Value Assets Vacation ownership contract receivables, net (Level 3) $ 2,460 $ 2,774 $ 2,370 $ 2,639 Liabilities Debt (Level 2) $ 5,622 $ 5,375 $ 5,642 $ 5,356 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. |
Derivative Instruments And Hedg
Derivative Instruments And Hedging Activities | 9 Months Ended |
Sep. 30, 2023 | |
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 sterling, Australian and Canadian dollars, and 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. As of September 30, 2023, the Company had no gains or losses relating to contracts designated as cash flow hedges included in Accumulated other comprehensive loss (“AOCL”). 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, 2023 and 2022, the Company had no interest rate derivatives designated as fair value or cash flow hedges. There were no losses on derivatives recognized in AOCL for the three and nine months ended September 30, 2023 or 2022. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company files U.S. federal and state, and foreign income tax returns in jurisdictions with varying statutes of limitations. With few exceptions, the Company is no longer subject to U.S. federal income tax examinations for years prior to 2019 and state and local income tax examinations prior to 2016. In significant foreign jurisdictions, years prior to 2015 are generally no longer subject to income tax examinations by their respective tax authorities. The Company’s effective tax rate was 25.9% and 28.5% for the three months ended September 30, 2023 and 2022; and 26.9% and 27.6% for the nine months ended September 30, 2023 and 2022. The effective tax rate for the three months ended September 30, 2023 was primarily impacted by a decrease in the valuation allowance on foreign tax credits partially offset by an increase in unrecognized tax benefits. The effective tax rate for the nine months ended September 30, 2023 was primarily impacted by a tax deficiency from stock-based compensation. The effective tax rates for the three months ended September 30, 2022 was impacted by the reversal of a prior year tax receivable due to a statute of limitation expiration and a tax deficiency from stock-based compensation. The effective tax rates for the nine months ended September 30, 2022 was impacted by a decrease in unrecognized tax benefits for a tax position effectively settled with taxing authorities, partially offset by the reversal of a prior year tax receivable due to a statute of limitation expiration and a tax deficiency from stock-based compensation. The Company made income tax payments, net of tax refunds, of $114 million and $110 million during the nine months ended September 30, 2023 and 2022. |
Leases
Leases | 9 Months Ended |
Sep. 30, 2023 | |
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. 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 information related to the lease costs for finance and operating leases (in millions): Three Months Ended Nine Months Ended September 30, September 30, 2023 2022 2023 2022 Operating lease cost $ 5 $ 6 $ 16 $ 17 Short-term lease cost $ 3 $ 3 $ 10 $ 10 Finance lease cost: Amortization of right-of-use assets $ 2 $ 1 $ 6 $ 4 Interest on lease liabilities 1 — 1 — Total finance lease cost $ 3 $ 1 $ 7 $ 4 The table below presents the lease-related assets and liabilities recorded on the Condensed Consolidated Balance Sheets: Balance Sheet Classification September 30, December 31, 2022 Operating leases (in millions): Operating lease right-of-use assets Other assets $ 50 $ 62 Operating lease liabilities Accrued expenses and other liabilities $ 92 $ 111 Finance leases (in millions): Finance lease assets (a) Property and equipment, net $ 21 $ 12 Finance lease liabilities Debt $ 20 $ 11 Weighted average remaining lease term: Operating leases 5.2 years 5.6 years Finance leases 2.9 years 2.7 years Weighted average discount rate: Operating leases (b) 6.0 % 5.9 % Finance leases 6.4 % 5.4 % (a) Presented net of accumulated depreciation. (b) Upon adoption of the 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, 2023 2022 Cash paid for amounts included in the measurement of lease liabilities: Operating cash outflows from operating leases $ 24 $ 24 Operating cash outflows from finance leases $ 1 $ — Financing cash outflows from finance leases $ 7 $ 4 Right-of-use assets obtained in exchange for lease obligations: Operating leases (a) $ 3 $ (1) Finance leases $ 15 $ 5 (a) Includes write-off of right-of-use assets during the nine months ended September 30, 2022. The table below presents maturities of lease liabilities as of September 30, 2023 (in millions): Operating Leases Finance Three months ending December 31, 2023 $ 8 $ 2 2024 29 9 2025 24 7 2026 14 4 2027 13 1 Thereafter 21 — Total minimum lease payments 109 23 Less: amount of lease payments representing interest (17) (3) Present value of future minimum lease payments $ 92 $ 20 |
Commitments And Contingencies
Commitments And Contingencies | 9 Months Ended |
Sep. 30, 2023 | |
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 $6 million and $3 million as of September 30, 2023 and December 31, 2022. 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, 2023, it is estimated that the potential exposure resulting from adverse outcomes of such legal proceedings could, in the aggregate, range up to $12 million in excess of recorded accruals. Such accruals are exclusive of matters relating to the Company’s separation from Cendant, matters relating to the spin-off of Wyndham Hotels & Resorts, Inc. (“Spin-off”), and matters relating to the sale of the vacation rentals businesses, which are discussed in Note 21— 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. 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, customer data safeguards, 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 receives offsetting indemnifications from third-parties and/or maintains insurance coverage that may mitigate any potential payments. Other Guarantees and Indemnifications |
Accumulated Other Comprehensive
Accumulated Other Comprehensive (Loss)/Income | 9 Months Ended |
Sep. 30, 2023 | |
Equity [Abstract] | |
Accumulated Other Comprehensive (Loss)/Income | Accumulated Other Comprehensive (Loss)/Income The components of accumulated other comprehensive loss are as follows (in millions): Pretax Foreign Currency Translation Adjustments Unrealized (Losses)/Gains Accumulated Other Comprehensive (Loss)/Income Balance, December 31, 2022 $ (178) $ — $ (178) Other comprehensive loss (15) — (15) Balance, September 30, 2023 $ (193) $ — $ (193) Tax Balance, December 31, 2022 $ 99 $ — $ 99 Other comprehensive loss — — — Balance, September 30, 2023 $ 99 $ — $ 99 Net of Tax Balance, December 31, 2022 $ (79) $ — $ (79) Other comprehensive loss (15) — (15) Balance, September 30, 2023 $ (94) $ — $ (94) Pretax Foreign Currency Translation Adjustments Unrealized (Losses)/Gains Accumulated Other Comprehensive (Loss)/Income Balance, December 31, 2021 $ (145) $ (1) $ (146) Other comprehensive loss (67) — (67) Balance, September 30, 2022 $ (212) $ (1) $ (213) Tax Balance, December 31, 2021 $ 97 $ 1 $ 98 Other comprehensive income 3 — 3 Balance, September 30, 2022 $ 100 $ 1 $ 101 Net of Tax Balance, December 31, 2021 $ (48) $ — $ (48) Other comprehensive loss (64) — (64) Balance, September 30, 2022 $ (112) $ — $ (112) Foreign 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. The Company's policy for releasing disproportionate income tax effects from AOCL utilizes the aggregate approach. There were no reclassifications out of AOCL for the nine months ended September 30, 2023 or 2022. |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Sep. 30, 2023 | |
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, stock-settled appreciation rights, 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, 2023, based on number of awards granted at target performance levels, 10.0 million shares remained available. Incentive Equity Awards Granted by the Company During the nine months ended September 30, 2023, the Company granted incentive equity awards to key employees and senior officers of $35 million in the form of RSUs and $21 million in the form of PSUs. Of these awards, the majority of RSUs will vest ratably over a period of four years and 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, 2022, the Company granted incentive equity awards to key employees and senior officers of $32 million in the form of RSUs and $13 million in the form of PSUs. The activity related to incentive equity awards granted by the Company to key employees and senior officers for the nine months ended September 30, 2023, consisted of the following (in millions, except grant prices): Balance, December 31, 2022 Granted Vested /Exercised (a) Cancelled / Forfeited (b) Balance, September 30, 2023 RSUs Number of RSUs 1.8 0.8 (0.9) (0.1) 1.6 (c) Weighted average grant price $ 48.79 $ 42.06 $ 38.09 $ 46.99 $ 47.07 PSUs Number of PSUs 0.5 0.5 — (0.2) 0.8 (d) Weighted average grant price $ 51.26 $ 42.18 $ — $ 41.84 $ 47.46 NQs Number of NQs 2.3 — — — 2.3 (e) Weighted average grant price $ 45.36 $ — $ — $ — $ 44.88 (a) Upon exercise of NQs and vesting of RSUs and PSUs, the Company issues new shares to participants. (b) The Company recognizes cancellations and forfeitures as they occur. (c) Aggregate unrecognized compensation expense related to RSUs was $58 million as of September 30, 2023, which is expected to be recognized over a weighted average period of 2.7 years. (d) The aggregate maximum unrecognized compensation expense related to PSUs that are probable of vesting was $48 million as of September 30, 2023, which is expected to be recognized over a weighted average period of 1.9 years. The maximum amount of compensation expense associated with PSUs that are not probable of vesting could range up to $4 million which would be recognized over a weighted average period of 2.4 years. (e) There were 1.7 million NQs which were exercisable as of September 30, 2023. These exercisable NQs will expire over a weighted average period of 5.5 years and carry a weighted average grant date fair value of $8.61. Unrecognized compensation expense for NQs was $2 million as of September 30, 2023, which is expected to be recognized over a weighted average period of 1.2 years. The Company did not grant any stock options during the nine months ended September 30, 2023 or 2022. The fair value of stock options granted by the Company prior to 2022 was estimated on the date of grant using the Black-Scholes option-pricing model with the relevant weighted average assumptions. 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 represented the period of time these awards were expected to be outstanding. The risk-free interest rate was 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. The total intrinsic value of options exercised was less than $1 million during the nine months ended September 30, 2023 and 2022. The vest date fair value of shares that vested during the nine months ended September 30, 2023 and 2022 was $36 million and $34 million. Stock-Based Compensation Expense The Company recorded stock-based compensation expense of $9 million and $31 million during the three and nine months ended September 30, 2023, and $10 million and $34 million during the three and nine months ended September 30, 2022 related to incentive equity awards granted to key employees, senior officers, and non-employee directors. Such stock-based compensation expense for the nine months ended September 30, 2022 includes $3 million which is classified within Restructuring on the Condensed Consolidated Statements of Income. During the nine months ended September 30, 2023 and 2022 the Company recognized $8 million and $9 million of tax benefits associated with stock-based compensation. The Company paid $10 million and $7 million of taxes for the net share settlement of incentive equity awards that vested during the nine months ended September 30, 2023 and 2022. Such amounts are included within Financing activities on the Condensed Consolidated Statements of Cash Flows. 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 under this plan during each of the nine months ended September 30, 2023 and 2022 and recognized $1 million and less than $1 million of compensation expense for these issuances. The value of shares issued under this plan was $5 million during each of the nine months ended September 30, 2023 and 2022. |
Segment Information
Segment Information | 9 Months Ended |
Sep. 30, 2023 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information The Company has two reportable segments: Vacation Ownership and Travel and Membership. 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 Adjusted EBITDA to assess the performance of the reportable segments. Adjusted EBITDA is defined by the Company as net income 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, asset impairments/recoveries, 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 assets and liabilities related to acquisitions of continuing businesses and dispositions, including the separation of Wyndham Hotels & Resorts, Inc. (“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 2023 2022 2023 2022 Vacation Ownership $ 812 $ 754 $ 2,265 $ 2,098 Travel and Membership 174 183 553 572 Total reportable segments 986 937 2,818 2,670 Corporate and other (a) — — (4) (2) Total Company $ 986 $ 937 $ 2,814 $ 2,668 Three Months Ended Nine Months Ended September 30, September 30, Reconciliation of Net income to Adjusted EBITDA 2023 2022 2023 2022 Net income attributable to Travel + Leisure Co. shareholders $ 110 $ 116 $ 267 $ 266 Gain on disposal of discontinued business, net of income taxes — — (5) — Interest expense 64 48 183 143 Interest (income) (3) (2) (9) (3) Provision for income taxes 38 46 96 101 Depreciation and amortization 28 30 83 91 Stock-based compensation 9 10 31 31 Restructuring (b) 2 — 12 8 Legacy items — (1) 7 1 Loss on sale of business (c) — — 2 — (Gain)/loss on equity investment — (3) — 5 COVID-19 related costs (d) — — — 2 Asset recoveries, net — — — (1) Fair value change in contingent consideration — (10) — (10) Adjusted EBITDA $ 248 $ 234 $ 667 $ 634 Three Months Ended Nine Months Ended September 30, September 30, Adjusted EBITDA 2023 2022 2023 2022 Vacation Ownership $ 203 $ 188 $ 521 $ 480 Travel and Membership 62 65 195 211 Total reportable segments 265 253 716 691 Corporate and other (a) (17) (19) (49) (57) Total Company $ 248 $ 234 $ 667 $ 634 (a) Includes the elimination of transactions between segments. (b) Includes $3 million of stock-based compensation expense for the nine months ended September 30, 2022, associated with the 2022 restructuring. (c) Represents the loss on sale of the Love Home Swap business. (d) Includes expenses related to COVID-19 testing and other expenses associated with the Company’s return-to-work program in 2022. Segment Assets (a) September 30, December 31, 2022 Vacation Ownership $ 4,932 $ 4,826 Travel and Membership 1,358 1,335 Total reportable segments 6,290 6,161 Corporate and other 365 596 Total Company $ 6,655 $ 6,757 (a) Excludes investment in consolidated subsidiaries. |
Restructuring
Restructuring | 9 Months Ended |
Sep. 30, 2023 | |
Restructuring Charges [Abstract] | |
Restructuring | Restructuring 2023 Restructuring Plan During the three and nine months ended September 30, 2023, the Company incurred $2 million and $12 million of restructuring charges. This action was primarily focused on enhancing organizational efficiency and rationalizing operations. These charges included personnel-related costs resulting from a reduction of approximately 150 employees and other expenses. As part of this restructuring plan, the Company decided to decrease its organizational footprint by closing its owned office in Indianapolis, Indiana, and exiting other leased locations. The 2023 restructuring plan charges incurred through September 30, 2023 consisted of (i) $6 million of personnel-related costs and $1 million of lease costs at the Vacation Ownership segment, (ii) $3 million of personnel-related costs at the Company’s corporate operations, and (iii) $2 million of personnel-related costs at the Travel and Membership segment. The remaining material initiative and related expenses associated with this restructuring plan are expected to be incurred by the end of 2023. The Company reduced the 2023 restructuring liability by $5 million of cash payments during the nine months ended September 30, 2023. The remaining 2023 restructuring liability of $7 million is expected to be paid by the end of 2024. 2022 Restructuring Plan During 2022, the Company incurred $14 million of restructuring charges. These charges were associated with certain positions that were made redundant based upon changes to the organizational structure of the Company, primarily within the Travel and Membership segment. The charges consisted of (i) $9 million of personnel-related costs at the Travel and Membership segment (ii) $3 million of lease and personnel-related costs at the Vacation Ownership segment, and (iii) $2 million of personnel-related costs at the Company’s corporate operations. These restructuring charges included $3 million of accelerated stock-based compensation expense. As of December 31, 2022, this restructuring liability was $7 million which was reduced by $6 million of cash payments during the nine months ended September 30, 2023. The remaining liability of $1 million is expected to be paid by the end of 2024. The Company has additional restructuring plans which were implemented prior to 2022. As of December 31, 2022, the restructuring liability related to these plans was $19 million which was reduced by $2 million of cash payments during the nine months ended September 30, 2023. The remaining liability of $17 million, all of which is related to leased facilities, is expected to be paid by the end of 2029. The activity associated with the Company’s restructuring plans is summarized as follows (in millions): Liability as of Liability as of December 31, 2022 Costs Recognized Cash Payments September 30, Facility-related $ 20 $ 1 $ (4) $ 17 Personnel-related 6 11 (9) 8 $ 26 $ 12 $ (13) $ 25 |
Transactions with Former Parent
Transactions with Former Parent and Former Subsidiaries | 9 Months Ended |
Sep. 30, 2023 | |
Related Party Transactions [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, now Avis Budget Group), 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. On March 21, 2023, the California Office of Tax Appeals (“OTA”) issued an opinion on a Cendant legacy tax matter involving Avis Budget Group related to a 1999 transaction. The matter concerned (i) whether the statute of limitations barred proposed assessment notices issued by the California Franchise Tax Board; and (ii) whether a transaction undertaken by the taxpayers for the 1999 tax year constituted a tax-free reorganization under the Internal Revenue Code. The OTA ruled in favor of the California Franchise Tax Board. As a result, the Company has increased the reserve by $7 million for this legacy tax matter in the first quarter of 2023, one-third of which is the responsibility of Wyndham Hotels. The OTA’s opinion is not final, and during the second quarter of 2023 Cendant filed a petition for rehearing. As of September 30, 2023, Cendant’s petition was still pending. As of September 30, 2023 and December 31, 2022, the Cendant separation and related liabilities were $22 million and $15 million, all of which were tax 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. The Transition Services Agreement ended in 2020. The Company and Wyndham Hotels entered into a letter agreement during 2021 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 the 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 Spin-off, 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 prior to the Spin-off. 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, 2023. 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. During the second quarter of 2023, one of the guarantees under this agreement expired resulting in the Company recognizing $5 million within Gain on disposal of discontinued business, net of income taxes, with an offsetting $2 million of expense, representing Wyndham Hotels one-third share, included within General and administrative expense on the Condensed Consolidated Statements of Income. The estimated fair value of the remaining indemnifications was $36 million at September 30, 2023. The Company has a $12 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 £61 million ($81 million USD) on a perpetual basis. These guarantees totaled £32 million ($39 million USD) at September 30, 2023. Travel + Leisure Co. is responsible for two-thirds of these guarantees. 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, 2023, including the two-thirds portion related to guarantees provided by Wyndham Hotels, totaled $84 million and was recorded in Accrued expenses and other liabilities and total receivables of $19 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. Matters Related to the North American Vacation Rentals Business In connection with the sale of the North American vacation rentals business to Vacasa LLC (“Vacasa”), the Company agreed to indemnify Vacasa against certain claims and assessments, including income tax and other tax matters related to the operations of the North American vacation rentals business for the periods prior to the transaction. The estimated fair Related Party Transactions |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
Sep. 30, 2023 | |
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, now Avis Budget Group), 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. On March 21, 2023, the California Office of Tax Appeals (“OTA”) issued an opinion on a Cendant legacy tax matter involving Avis Budget Group related to a 1999 transaction. The matter concerned (i) whether the statute of limitations barred proposed assessment notices issued by the California Franchise Tax Board; and (ii) whether a transaction undertaken by the taxpayers for the 1999 tax year constituted a tax-free reorganization under the Internal Revenue Code. The OTA ruled in favor of the California Franchise Tax Board. As a result, the Company has increased the reserve by $7 million for this legacy tax matter in the first quarter of 2023, one-third of which is the responsibility of Wyndham Hotels. The OTA’s opinion is not final, and during the second quarter of 2023 Cendant filed a petition for rehearing. As of September 30, 2023, Cendant’s petition was still pending. As of September 30, 2023 and December 31, 2022, the Cendant separation and related liabilities were $22 million and $15 million, all of which were tax 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. The Transition Services Agreement ended in 2020. The Company and Wyndham Hotels entered into a letter agreement during 2021 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 the 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 Spin-off, 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 prior to the Spin-off. 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, 2023. 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. During the second quarter of 2023, one of the guarantees under this agreement expired resulting in the Company recognizing $5 million within Gain on disposal of discontinued business, net of income taxes, with an offsetting $2 million of expense, representing Wyndham Hotels one-third share, included within General and administrative expense on the Condensed Consolidated Statements of Income. The estimated fair value of the remaining indemnifications was $36 million at September 30, 2023. The Company has a $12 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 £61 million ($81 million USD) on a perpetual basis. These guarantees totaled £32 million ($39 million USD) at September 30, 2023. Travel + Leisure Co. is responsible for two-thirds of these guarantees. 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, 2023, including the two-thirds portion related to guarantees provided by Wyndham Hotels, totaled $84 million and was recorded in Accrued expenses and other liabilities and total receivables of $19 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. Matters Related to the North American Vacation Rentals Business In connection with the sale of the North American vacation rentals business to Vacasa LLC (“Vacasa”), the Company agreed to indemnify Vacasa against certain claims and assessments, including income tax and other tax matters related to the operations of the North American vacation rentals business for the periods prior to the transaction. The estimated fair Related Party Transactions |
Subsequent Event
Subsequent Event | 9 Months Ended |
Sep. 30, 2023 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Event Sierra Timeshare 2023-3 Receivables Funding LLC On October 19, 2023, the Company closed on a placement of a series of term notes payable, issued by Sierra Timeshare 2023-3 Receivables Funding LLC, with an initial principal amount of $300 million, secured by VOCRs and bearing interest at a weighted average coupon rate of 6.78%. The advance rate for this transaction was 91.75%. |
Background and Basis of Prese_2
Background and Basis of Presentation Background and Basis of Presentation (Policies) | 9 Months Ended |
Sep. 30, 2023 | |
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 United States (“GAAP”). All intercompany balances and transactions have been eliminated in the Condensed Consolidated Financial Statements. 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 2022 Consolidated Financial Statements included in its Annual Report on Form 10-K filed with the Securities and Exchange Commission (“SEC”) on February 22, 2023. |
New Accounting Pronouncements N
New Accounting Pronouncements New Accounting Pronouncements (Policies) | 9 Months Ended |
Sep. 30, 2023 | |
Accounting Changes and Error Corrections [Abstract] | |
New Accounting Pronouncements, Policy [Policy Text Block] | Recently Issued Accounting Pronouncements Business Combinations—Joint Venture Formations . In August 2023, the Financial Accounting Standards Board (“FASB”) issued guidance to address the accounting for contributions made to a joint venture, upon formation, in a joint venture’s separate financial statements. The guidance was issued in an effort to reduce the diversity in practice and requires a joint venture to initially measure its assets and liabilities at fair value on the formation date. This guidance is effective prospectively for all joint ventures within the scope of the standard that are formed on or after January 1, 2025. Existing joint ventures have the option to apply the guidance retrospectively. Early adoption is permitted. The Company is currently evaluating the impact of the adoption of this guidance on its financial statements and related disclosures. Recently Adopted Accounting Pronouncements Presentation of Financial Statements . In July 2023, the FASB issued guidance which amends various SEC paragraphs pursuant to the issuance of SEC Staff Accounting Bulletin No. 120. The bulletin added interpretive guidance for public companies to consider when entering into share-based payment transactions while in possession of material non-public information (i.e., “spring-loaded” awards). This guidance became effective upon issuance and the adoption of this guidance did not have an impact on the Company's Condensed Consolidated Financial Statements and related disclosures. The Company will monitor future stock-based awards and will include additional disclosures in future filings, if applicable. Contract Assets and Contract Liabilities from Contracts with Customers Acquired in a Business Combination. In October 2021, the FASB issued guidance which requires companies to apply Accounting Standards Codification (“ASC”) 606 - Revenue from Contracts with Customers to recognize and measure contract assets and contract liabilities from contracts with customers acquired in a business combination. This creates an exception to the general recognition and measurement principle in ASC 805 - Business Combinations. This generally will result in companies recognizing contract assets and contract liabilities at amounts consistent with those recorded by the acquiree immediately before the acquisition date. This guidance became effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. The amendments should be applied prospectively to business combinations occurring on or after the effective date. The Company early adopted this guidance in 2022. The adoption of this guidance has not had a material impact on the Company's Condensed Consolidated Financial Statements and related disclosures. Troubled Debt Restructurings and Vintage Disclosures. In March 2022, the FASB issued guidance which eliminates the accounting guidance in ASC 310-40 Troubled Debt Restructurings for Creditors and amends the guidance on “vintage disclosures” to require disclosure of current-period gross write-offs by year of origination. This guidance became effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. As a result of adopting this guidance the Company added the required disclosure of current-period gross write-offs in Note 7— Vacation Ownership Contract Receivables. Aside from this additional disclosure the adoption of this guidance did not have a material impact on the Company’s Condensed Consolidated Financial Statements or related disclosures. |
Revenue Recognition Revenue Rec
Revenue Recognition Revenue Recognition (Policies) | 9 Months Ended |
Sep. 30, 2023 | |
Revenue Recognition and Deferred Revenue [Abstract] | |
Revenue Recognition and Loyalty Programs | 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 allocates the sales price between the VOI sale and the non-cash incentive. Non-cash incentives generally have expiration periods of two years 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. The Company reduces its management fee revenue 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 Travel and Membership derives a majority of its revenues from membership dues and fees for facilitating members’ trading of their timeshare intervals. Revenues from membership dues represent the fees paid by members or affiliated clubs on their behalf. 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. 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 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 travel club 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. Revenues from other vacation exchange related product fees are deferred and recognized upon the occurrence of a future exchange, event, or other related transaction. 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 service revenues for its Vacation Ownership segment and RCI Elite Rewards revenues for its Travel and Membership segment gross as a principal. 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 three years of purchase, but may extend longer for certain programs. 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 two years of the VOI sale, but may extend longer for certain programs. 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 exchange-related revenue primarily represents payments received in advance from members to book vacation exchanges which are recognized upon the future confirmed transaction. Deferred revenue also includes other leisure-related service and product revenues which are recognized as customers utilize the associated benefits. |
Capitalized contract costs policy text block [Policy Text Block] | Capitalized Contract Costs The 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 recognized over the utilization period when usage or expiration occurs, which is typically within three years from the date of sale. As of September 30, 2023 and December 31, 2022, these capitalized costs were $45 million and $35 million and are included within Other assets on the Condensed Consolidated Balance Sheets. The 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, 2023, the capitalized costs were $17 million, of which $11 million are included in Prepaid expenses and $6 million are included in Other assets on the Condensed Consolidated Balance Sheets. As of December 31, 2022, the capitalized costs were $18 million, of which $11 million are included in Prepaid expenses and $7 million are included in Other assets on the Condensed Consolidated Balance Sheets. |
Earnings Per Share (Policies)
Earnings Per Share (Policies) | 9 Months Ended |
Sep. 30, 2023 | |
Earnings Per Share [Abstract] | |
Earnings Per Share, Policy | The computations of basic and diluted earnings per share (“EPS”) are based on Net income 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.Earnings per share amounts are calculated using whole numbers.The dilutive impact of the Company’s potential common stock is computed utilizing the treasury stock method using average market prices during the period. |
Vacation Ownership Contract R_2
Vacation Ownership Contract Receivables Policy (Policies) | 9 Months Ended |
Sep. 30, 2023 | |
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 available). |
Variable Interest Entities Vari
Variable Interest Entities Variable Interest Entities Policies (Policies) | 9 Months Ended |
Sep. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Principals of consolidation | The Company analyzes its variable interests, including loans, guarantees, interests in special purpose entities (“SPEs”), and equity investments, to determine if an entity in which the Company has a variable interest is a variable interest entity (“VIE”). If the entity is deemed to be a VIE, the Company consolidates those VIEs for which the Company 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 to the Company for principal and interest. |
Fair Value Measures and Disclos
Fair Value Measures and Disclosures (Policies) | 9 Months Ended |
Sep. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurement, Policy | 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. |
Leases (Policies)
Leases (Policies) | 9 Months Ended |
Sep. 30, 2023 | |
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.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, 2023 | |
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. 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 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, customer data safeguards, 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 receives offsetting indemnifications from third-parties and/or maintains insurance coverage that may mitigate any potential payments. |
Comprehensive Text Block List (
Comprehensive Text Block List (Policies) | 9 Months Ended |
Sep. 30, 2023 | |
Text Block [Abstract] | |
Comprehensive Income, Policy | Foreign 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. The Company's policy for releasing disproportionate income tax effects from AOCL utilizes the aggregate approach. |
Stock-Based Compensation (Polic
Stock-Based Compensation (Policies) | 9 Months Ended |
Sep. 30, 2023 | |
Share-Based Payment Arrangement, Noncash Expense [Abstract] | |
Share-Based Payment Arrangement | The fair value of stock options granted by the Company prior to 2022 was estimated on the date of grant using the Black-Scholes option-pricing model with the relevant weighted average assumptions. 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 represented the period of time these awards were expected to be outstanding. The risk-free interest rate was 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. |
Employee Stock Ownership Plan (ESOP), Policy | 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. |
Segment Reporting (Policies)
Segment Reporting (Policies) | 9 Months Ended |
Sep. 30, 2023 | |
Segment Reporting [Abstract] | |
Segment Reporting, Policy | The Company has two reportable segments: Vacation Ownership and Travel and Membership. 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 Adjusted EBITDA to assess the performance of the reportable segments. Adjusted EBITDA is defined by the Company as net income 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, asset impairments/recoveries, 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 assets and liabilities related to acquisitions of continuing businesses and dispositions, including the separation of Wyndham Hotels & Resorts, Inc. (“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. |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Disaggregation of Net Revenues | Property management fee and reimbursable revenues were (in millions): Three Months Ended Nine Months Ended September 30, September 30, 2023 2022 2023 2022 Management fee revenues $ 110 $ 106 $ 326 $ 313 Reimbursable revenues 96 85 284 252 Property management fees and reimbursable revenues $ 206 $ 191 $ 610 $ 565 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): Three Months Ended Nine Months Ended September 30, September 30, 2023 2022 2023 2022 Vacation Ownership Vacation ownership interest sales $ 433 $ 403 $ 1,172 $ 1,099 Property management fees and reimbursable revenues 206 191 610 565 Consumer financing 107 104 313 302 Fee-for-Service commissions 40 36 108 87 Ancillary revenues 26 20 62 45 Total Vacation Ownership 812 754 2,265 2,098 Travel and Membership Transaction revenues 121 129 395 411 Subscription revenues 46 47 137 137 Ancillary revenues 7 7 21 24 Total Travel and Membership 174 183 553 572 Corporate and other Ancillary revenues 1 — 4 — Eliminations (1) — (8) (2) Total Corporate and other — — (4) (2) Net revenues $ 986 $ 937 $ 2,814 $ 2,668 |
Schedule of Contract Liabilities | Contract liabilities consisted of (in millions): September 30, December 31, 2022 Deferred subscription revenue $ 163 $ 164 Deferred VOI trial package revenue 128 101 Deferred VOI incentive revenue 78 70 Deferred exchange-related revenue (a) 59 53 Deferred co-branded credit card programs revenue 7 9 Deferred other revenue 1 3 Total $ 436 $ 400 (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 periods presented were as follows (in millions): Nine Months Ended September 30, 2023 2022 Beginning balance $ 400 $ 382 Additions 257 218 Revenue recognized (221) (205) Ending balance $ 436 $ 395 |
Schedule of Performance Obligations | The following table summarizes the Company’s remaining performance obligations for the 12-month periods set forth below (in millions): 10/1/2023 - 9/30/2024 10/1/2024 - 9/30/2025 10/1/2025 - 9/30/2026 Thereafter Total Subscription revenue $ 96 $ 37 $ 16 $ 14 $ 163 VOI trial package revenue 121 2 2 3 128 VOI incentive revenue 78 — — — 78 Exchange-related revenue 56 3 — — 59 Co-branded credit card programs revenue 3 3 1 — 7 Other revenue 1 — — — 1 Total $ 355 $ 45 $ 19 $ 17 $ 436 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Earnings Per Share [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, 2023 2022 2023 2022 Net income from continuing operations attributable to Travel + Leisure Co. shareholders $ 110 $ 116 $ 262 $ 266 Gain on disposal of discontinued business attributable to Travel + Leisure Co. shareholders, net of income taxes — — 5 — Net income attributable to Travel + Leisure Co. shareholders $ 110 $ 116 $ 267 $ 266 Basic earnings per share (a) Continuing operations $ 1.50 $ 1.39 $ 3.48 $ 3.15 Discontinued operations — — 0.07 — $ 1.50 $ 1.39 $ 3.55 $ 3.15 Diluted earnings per share (a) Continuing operations $ 1.49 $ 1.38 $ 3.46 $ 3.12 Discontinued operations — — 0.07 — $ 1.49 $ 1.38 $ 3.53 $ 3.12 Basic weighted average shares outstanding 73.3 83.0 75.3 84.6 RSUs, (b) PSUs (c) and NQs (d) 0.3 0.6 0.4 0.9 Diluted weighted average shares outstanding (e) 73.6 83.6 75.7 85.5 Dividends: Aggregate dividends paid to shareholders (f) $ 33 $ 33 $ 104 $ 103 (a) Earnings per share amounts are calculated using whole numbers. (b) Excludes 1.0 million and 1.3 million of restricted stock units (“RSUs”) that would have been anti-dilutive to EPS for the three and nine months ended September 30, 2023 and 0.7 million and 0.6 million of RSUs that would have been anti-dilutive to EPS for the three and nine months ended September 30, 2022. These shares could potentially dilute EPS in the future. (c) Excludes performance-vested restricted stock units (“PSUs”) of 0.8 million for both the three and nine months ended September 30, 2023 and 0.5 million of PSUs for both the three and nine months ended September 30, 2022, as the Company has not met the required performance metrics. These PSUs could potentially dilute EPS in the future. (d) Excludes 2.3 million of outstanding non-qualified stock options (“NQs”) that would have been anti-dilutive to EPS for both the three and nine months ended September 30, 2023 and 2.0 million and 1.1 million of outstanding NQs for the three and nine months ended September 30, 2022. These outstanding NQs 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. (f) The Company paid cash dividends of $0.45 and $1.35 per share during the three and nine months ended September 30, 2023 and $0.40 and $1.20 per share during the three and nine months ended September 30, 2022. |
Current Stock Repurchase Program | The following table summarizes stock repurchase activity under the current share repurchase program (in millions): Shares Cost As of December 31, 2022 120.0 $ 6,104 Repurchases 6.7 267 As of September 30, 2023 126.7 $ 6,371 |
Vacation Ownership Contract R_3
Vacation Ownership Contract Receivables (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Vacation Ownership Contract Receivables [Abstract] | |
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block] | Vacation ownership contract receivables, net consisted of the following (in millions): September 30, December 31, Vacation ownership contract receivables: Securitized (a) $ 2,102 $ 2,164 Non-securitized (b) 927 747 Vacation ownership contract receivables, gross 3,029 2,911 Less: allowance for loan losses 569 541 Vacation ownership contract receivables, net $ 2,460 $ 2,370 (a) Excludes $16 million and $17 million of accrued interest on VOCRs as of September 30, 2023 and December 31, 2022, which are included in Trade receivables, net on the Condensed Consolidated Balance Sheets. (b) Excludes $8 million and $7 million of accrued interest on VOCRs as of September 30, 2023 and December 31, 2022, 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): Nine Months Ended September 30, 2023 2022 Allowance for loan losses, beginning balance $ 541 $ 510 Provision for loan losses, net 257 216 Contract receivables write-offs, net (229) (187) Allowance for loan losses, ending balance $ 569 $ 539 The table below represents the gross write-offs of financing receivables by year of origination (in millions): Nine Months Ended September 30, 2023 2023 $ 13 2022 113 2021 38 2020 15 2019 20 Prior 30 Total $ 229 |
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, 2023 700+ 600-699 <600 No Score Asia Pacific Total Current $ 1,799 $ 742 $ 117 $ 83 $ 158 $ 2,899 31 - 60 days 19 24 13 2 1 59 61 - 90 days 10 16 11 1 — 38 91 - 120 days 8 12 12 1 — 33 Total $ 1,836 $ 794 $ 153 $ 87 $ 159 $ 3,029 As of December 31, 2022 700+ 600-699 <600 No Score Asia Pacific Total Current $ 1,674 $ 700 $ 93 $ 142 $ 143 $ 2,752 31 - 60 days 24 32 11 5 1 73 61 - 90 days 16 20 7 2 — 45 91 - 120 days 12 17 10 2 — 41 Total $ 1,726 $ 769 $ 121 $ 151 $ 144 $ 2,911 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, 2023 700+ 600-699 <600 No Score Asia Pacific Total 2023 $ 686 $ 229 $ 14 $ 25 $ 77 $ 1,031 2022 459 230 48 16 19 772 2021 190 98 30 5 13 336 2020 96 42 12 4 10 164 2019 145 71 20 12 14 262 Prior 260 124 29 25 26 464 Total $ 1,836 $ 794 $ 153 $ 87 $ 159 $ 3,029 As of December 31, 2022 700+ 600-699 <600 No Score Asia Pacific Total 2022 $ 745 $ 291 $ 19 $ 87 $ 52 $ 1,194 2021 275 149 30 8 19 481 2020 134 60 12 5 15 226 2019 198 97 23 16 21 355 2018 162 74 16 13 14 279 Prior 212 98 21 22 23 376 Total $ 1,726 $ 769 $ 121 $ 151 $ 144 $ 2,911 |
Inventory (Tables)
Inventory (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Inventory Disclosure [Abstract] | |
Inventory | Inventory consisted of the following (in millions): September 30, December 31, Completed VOI inventory $ 913 $ 982 Estimated VOI recoveries 202 192 Land held for VOI development 20 1 VOI construction in process 9 14 Exchange and other inventory 5 4 Total inventory $ 1,149 $ 1,193 |
Activity Related to Inventory Obligations | The following table summarizes the activity related to the Company's inventory obligations (in millions): Atlanta (a) (b) Las Vegas (a) Other (c) Total December 31, 2022 $ — $ 30 $ 7 $ 37 Purchases — — 66 66 Payments — (30) (64) (94) September 30, 2023 $ — $ — $ 9 $ 9 December 31, 2021 $ — $ 13 $ 1 $ 14 Purchases 67 28 46 141 Payments (67) (35) (38) (140) September 30, 2022 $ — $ 6 $ 9 $ 15 (a) Included in Accrued expenses and other liabilities on the Condensed Consolidated Balance Sheets. (b) Represents vacation ownership inventory and property and equipment in Atlanta, Georgia, acquired from a third-party developer. (c) Included in Accounts payable on the Condensed Consolidated Balance Sheets. |
Property and equipment (Tables)
Property and equipment (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment [Table Text Block] | Property and equipment, net consisted of the following (in millions): September 30, December 31, 2022 Capitalized software $ 753 $ 724 Building and leasehold improvements (a) 685 671 Furniture, fixtures and equipment 191 192 Finance leases 39 27 Land 31 30 Construction in progress 13 8 Total property and equipment 1,712 1,652 Less: accumulated depreciation and amortization 1,057 994 Property and equipment, net $ 655 $ 658 (a) Includes $254 million and $242 million of unregistered VOI inventory as of September 30, 2023 and December 31, 2022. |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments | The Company’s indebtedness consisted of the following (in millions): September 30, December 31, Non-recourse vacation ownership debt : (a) Term notes (b) $ 1,424 $ 1,545 USD bank conduit facility (due September 2025) (c) 372 321 AUD/NZD bank conduit facility (due December 2024) (d) 97 107 Total $ 1,893 $ 1,973 Debt : (e) $1.0 billion secured revolving credit facility (due October 2026) (f) $ 451 $ — $300 million secured term loan B (due May 2025) (g) 284 286 $300 million secured incremental term loan B (due December 2029) (h) 287 288 $400 million 3.90% secured notes (due March 2023) (i) — 400 $300 million 5.65% secured notes (due April 2024) 300 299 $350 million 6.60% secured notes (due October 2025) (j) 347 346 $650 million 6.625% secured notes (due July 2026) 646 645 $400 million 6.00% secured notes (due April 2027) (k) 404 406 $650 million 4.50% secured notes (due December 2029) 643 642 $350 million 4.625% secured notes (due March 2030) 347 346 Finance leases 20 11 Total $ 3,729 $ 3,669 (a) Represents non-recourse debt that is securitized through bankruptcy-remote special purpose entities, 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 $2.24 billion and $2.29 billion of underlying gross VOCRs and related assets (which legally are not assets of the Company) as of September 30, 2023 and December 31, 2022. (b) The carrying amounts of the term notes are net of deferred financing costs of $19 million and $18 million as of September 30, 2023 and December 31, 2022. (c) The Company has a borrowing capacity of $600 million under the USD bank conduit facility through September 2025. Borrowings under this facility are required to be repaid as the collateralized receivables amortize but no later than October 2026. (d) The Company has a borrowing capacity of 200 million Australian dollars (“AUD”) and 25 million New Zealand dollars (“NZD”) under the AUD/NZD bank conduit facility through December 2024. Borrowings under this facility are required to be repaid no later than January 2027. (e) The carrying amounts of the secured notes and term loan are net of unamortized discounts of $20 million and $23 million as of September 30, 2023 and December 31, 2022, and net of unamortized debt financing costs of $9 million and $10 million as of September 30, 2023 and December 31, 2022. (f) The weighted average effective interest rate on facility borrowings was 7.35% and 7.53% as of September 30, 2023 and December 31, 2022. (g) The weighted average effective interest rate on facility borrowings was 7.33% and 4.01% as of September 30, 2023 and December 31, 2022. (h) The weighted average effective interest rate on facility borrowings was 9.15% and 8.24% as of September 30, 2023 and December 31, 2022. (i) Includes less than $1 million of unamortized gains from the settlement of a derivative as of December 31, 2022. (j) Includes $2 million and $3 million of unamortized losses from the settlement of a derivative as of September 30, 2023 and December 31, 2022. |
Summary Of Outstanding Debt Maturities | The Company’s outstanding indebtedness as of September 30, 2023, matures as follows (in millions): Non-recourse Vacation Ownership Debt Debt Total Within 1 year $ 215 $ 313 $ 528 Between 1 and 2 years 209 291 500 Between 2 and 3 years 513 1,000 1,513 Between 3 and 4 years 184 860 1,044 Between 4 and 5 years 185 3 188 Thereafter 587 1,262 1,849 $ 1,893 $ 3,729 $ 5,622 |
Summary Of Available Capacity Under Borrowing Arrangements | As of September 30, 2023, the available capacity under the Company’s borrowing arrangements was as follows (in millions): Non-recourse Conduit Facilities (a) Revolving Credit Facilities (b) Total capacity $ 744 $ 1,000 Less: outstanding borrowings 469 451 Less: letters of credit — 2 Available capacity $ 275 $ 547 (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, 2023 | |
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) $ 2,102 $ 2,164 Securitized restricted cash (b) 80 83 Interest receivables on securitized contract receivables (c) 16 17 Other assets (d) 44 25 Total SPE assets 2,242 2,289 Non-recourse term notes (e) (f) 1,424 1,545 Non-recourse conduit facilities (e) 469 428 Other liabilities (g) 3 5 Total SPE liabilities 1,896 1,978 SPE assets in excess of SPE liabilities $ 346 $ 311 (a) 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 facilities 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 $19 million and $18 million as of September 30, 2023 and December 31, 2022, 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 $ 346 $ 311 Non-securitized contract receivables 927 747 Less: allowance for loan losses 569 541 Total, net $ 704 $ 517 |
Fair Value (Tables)
Fair Value (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value, by Balance Sheet Grouping | The carrying amounts and estimated fair values of all other financial instruments were as follows (in millions): September 30, 2023 December 31, 2022 Carrying Estimated Fair Value Carrying Estimated Fair Value Assets Vacation ownership contract receivables, net (Level 3) $ 2,460 $ 2,774 $ 2,370 $ 2,639 Liabilities Debt (Level 2) $ 5,622 $ 5,375 $ 5,642 $ 5,356 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Leases [Abstract] | |
Lease, Cost [Table Text Block] | The table below presents information related to the lease costs for finance and operating leases (in millions): Three Months Ended Nine Months Ended September 30, September 30, 2023 2022 2023 2022 Operating lease cost $ 5 $ 6 $ 16 $ 17 Short-term lease cost $ 3 $ 3 $ 10 $ 10 Finance lease cost: Amortization of right-of-use assets $ 2 $ 1 $ 6 $ 4 Interest on lease liabilities 1 — 1 — Total finance lease cost $ 3 $ 1 $ 7 $ 4 |
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, December 31, 2022 Operating leases (in millions): Operating lease right-of-use assets Other assets $ 50 $ 62 Operating lease liabilities Accrued expenses and other liabilities $ 92 $ 111 Finance leases (in millions): Finance lease assets (a) Property and equipment, net $ 21 $ 12 Finance lease liabilities Debt $ 20 $ 11 Weighted average remaining lease term: Operating leases 5.2 years 5.6 years Finance leases 2.9 years 2.7 years Weighted average discount rate: Operating leases (b) 6.0 % 5.9 % Finance leases 6.4 % 5.4 % (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, 2023 2022 Cash paid for amounts included in the measurement of lease liabilities: Operating cash outflows from operating leases $ 24 $ 24 Operating cash outflows from finance leases $ 1 $ — Financing cash outflows from finance leases $ 7 $ 4 Right-of-use assets obtained in exchange for lease obligations: Operating leases (a) $ 3 $ (1) Finance leases $ 15 $ 5 (a) Includes write-off of right-of-use assets during the nine months ended September 30, 2022. |
Leases, Liability Maturity [Table Text Block] | The table below presents maturities of lease liabilities as of September 30, 2023 (in millions): Operating Leases Finance Three months ending December 31, 2023 $ 8 $ 2 2024 29 9 2025 24 7 2026 14 4 2027 13 1 Thereafter 21 — Total minimum lease payments 109 23 Less: amount of lease payments representing interest (17) (3) Present value of future minimum lease payments $ 92 $ 20 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive (Loss)/Income (Tables) | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Equity [Abstract] | ||
Components Of Accumulated Other Comprehensive (Loss)/Income | The components of accumulated other comprehensive loss are as follows (in millions): Pretax Foreign Currency Translation Adjustments Unrealized (Losses)/Gains Accumulated Other Comprehensive (Loss)/Income Balance, December 31, 2022 $ (178) $ — $ (178) Other comprehensive loss (15) — (15) Balance, September 30, 2023 $ (193) $ — $ (193) Tax Balance, December 31, 2022 $ 99 $ — $ 99 Other comprehensive loss — — — Balance, September 30, 2023 $ 99 $ — $ 99 Net of Tax Balance, December 31, 2022 $ (79) $ — $ (79) Other comprehensive loss (15) — (15) Balance, September 30, 2023 $ (94) $ — $ (94) | Pretax Foreign Currency Translation Adjustments Unrealized (Losses)/Gains Accumulated Other Comprehensive (Loss)/Income Balance, December 31, 2021 $ (145) $ (1) $ (146) Other comprehensive loss (67) — (67) Balance, September 30, 2022 $ (212) $ (1) $ (213) Tax Balance, December 31, 2021 $ 97 $ 1 $ 98 Other comprehensive income 3 — 3 Balance, September 30, 2022 $ 100 $ 1 $ 101 Net of Tax Balance, December 31, 2021 $ (48) $ — $ (48) Other comprehensive loss (64) — (64) Balance, September 30, 2022 $ (112) $ — $ (112) |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Share-Based Payment Arrangement, Noncash Expense [Abstract] | |
Incentive Equity Awards Granted By The Company | The activity related to incentive equity awards granted by the Company to key employees and senior officers for the nine months ended September 30, 2023, consisted of the following (in millions, except grant prices): Balance, December 31, 2022 Granted Vested /Exercised (a) Cancelled / Forfeited (b) Balance, September 30, 2023 RSUs Number of RSUs 1.8 0.8 (0.9) (0.1) 1.6 (c) Weighted average grant price $ 48.79 $ 42.06 $ 38.09 $ 46.99 $ 47.07 PSUs Number of PSUs 0.5 0.5 — (0.2) 0.8 (d) Weighted average grant price $ 51.26 $ 42.18 $ — $ 41.84 $ 47.46 NQs Number of NQs 2.3 — — — 2.3 (e) Weighted average grant price $ 45.36 $ — $ — $ — $ 44.88 (a) Upon exercise of NQs and vesting of RSUs and PSUs, the Company issues new shares to participants. (b) The Company recognizes cancellations and forfeitures as they occur. (c) Aggregate unrecognized compensation expense related to RSUs was $58 million as of September 30, 2023, which is expected to be recognized over a weighted average period of 2.7 years. (d) The aggregate maximum unrecognized compensation expense related to PSUs that are probable of vesting was $48 million as of September 30, 2023, which is expected to be recognized over a weighted average period of 1.9 years. The maximum amount of compensation expense associated with PSUs that are not probable of vesting could range up to $4 million which would be recognized over a weighted average period of 2.4 years. (e) There were 1.7 million NQs which were exercisable as of September 30, 2023. These exercisable NQs will expire over a weighted average period of 5.5 years and carry a weighted average grant date fair value of $8.61. Unrecognized compensation expense for NQs was $2 million as of September 30, 2023, which is expected to be recognized over a weighted average period of 1.2 years. |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
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 2023 2022 2023 2022 Vacation Ownership $ 812 $ 754 $ 2,265 $ 2,098 Travel and Membership 174 183 553 572 Total reportable segments 986 937 2,818 2,670 Corporate and other (a) — — (4) (2) Total Company $ 986 $ 937 $ 2,814 $ 2,668 Three Months Ended Nine Months Ended September 30, September 30, Reconciliation of Net income to Adjusted EBITDA 2023 2022 2023 2022 Net income attributable to Travel + Leisure Co. shareholders $ 110 $ 116 $ 267 $ 266 Gain on disposal of discontinued business, net of income taxes — — (5) — Interest expense 64 48 183 143 Interest (income) (3) (2) (9) (3) Provision for income taxes 38 46 96 101 Depreciation and amortization 28 30 83 91 Stock-based compensation 9 10 31 31 Restructuring (b) 2 — 12 8 Legacy items — (1) 7 1 Loss on sale of business (c) — — 2 — (Gain)/loss on equity investment — (3) — 5 COVID-19 related costs (d) — — — 2 Asset recoveries, net — — — (1) Fair value change in contingent consideration — (10) — (10) Adjusted EBITDA $ 248 $ 234 $ 667 $ 634 Three Months Ended Nine Months Ended September 30, September 30, Adjusted EBITDA 2023 2022 2023 2022 Vacation Ownership $ 203 $ 188 $ 521 $ 480 Travel and Membership 62 65 195 211 Total reportable segments 265 253 716 691 Corporate and other (a) (17) (19) (49) (57) Total Company $ 248 $ 234 $ 667 $ 634 (a) Includes the elimination of transactions between segments. (b) Includes $3 million of stock-based compensation expense for the nine months ended September 30, 2022, associated with the 2022 restructuring. (c) Represents the loss on sale of the Love Home Swap business. (d) Includes expenses related to COVID-19 testing and other expenses associated with the Company’s return-to-work program in 2022. Segment Assets (a) September 30, December 31, 2022 Vacation Ownership $ 4,932 $ 4,826 Travel and Membership 1,358 1,335 Total reportable segments 6,290 6,161 Corporate and other 365 596 Total Company $ 6,655 $ 6,757 (a) Excludes investment in consolidated subsidiaries. |
Restructuring (Tables)
Restructuring (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
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, 2022 Costs Recognized Cash Payments September 30, Facility-related $ 20 $ 1 $ (4) $ 17 Personnel-related 6 11 (9) 8 $ 26 $ 12 $ (13) $ 25 |
Background and Basis of Prese_3
Background and Basis of Presentation (Narrative) (Details) | 9 Months Ended |
Sep. 30, 2023 segment | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of Reportable Segments | 2 |
Revenue Recognition (Narrative)
Revenue Recognition (Narrative) (Details) | 9 Months Ended |
Sep. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Expiration periods for non-cash incentives (or less) | 2 years |
Term of management services agreements (or less) | 1 year |
Fees For Property Management Services, Budgeted Operating Expenses, Percentage | 10% |
Revenue Recognition (Prop Mgmt
Revenue Recognition (Prop Mgmt Rev) (Details) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 USD ($) | Sep. 30, 2022 USD ($) | Sep. 30, 2023 USD ($) numberOfAssociations | Sep. 30, 2022 USD ($) numberOfAssociations | |
Disaggregation of Revenue [Line Items] | ||||
Net revenues | $ 986 | $ 937 | $ 2,814 | $ 2,668 |
Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | 986 | 937 | 2,818 | 2,670 |
Vacation Ownership | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | 812 | 754 | 2,265 | 2,098 |
Management fee revenues | Vacation Ownership | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | 110 | 106 | 326 | 313 |
Reimbursable revenues | Vacation Ownership | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | 96 | 85 | 284 | 252 |
Property management fees and reimbursable revenues | Vacation Ownership | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | 206 | 191 | 610 | 565 |
Exchange-related revenue | Vacation Ownership | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | $ 8 | $ 7 | $ 25 | $ 24 |
Managed property owner's associations that paid travel and membership exchange fees | numberOfAssociations | 1 | 1 |
Revenue Recognition (Contract L
Revenue Recognition (Contract Liabilities) (Details) - USD ($) $ in Millions | 9 Months Ended | ||||
Sep. 30, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Dec. 31, 2021 | ||
Disaggregation of Revenue [Line Items] | |||||
Contract liabilities | $ 436 | $ 400 | $ 395 | $ 382 | |
Contract with Customer, Liability, Revenue Recognition Term | 1 year | ||||
Deferred subscription revenue | |||||
Disaggregation of Revenue [Line Items] | |||||
Contract liabilities | $ 163 | 164 | |||
Deferred VOI trial package revenue | |||||
Disaggregation of Revenue [Line Items] | |||||
Contract liabilities | $ 128 | 101 | |||
Deferred VOI trial package revenue | Vacation Ownership | |||||
Disaggregation of Revenue [Line Items] | |||||
Contract with Customer, Liability, Revenue Recognition Term | 3 years | ||||
Deferred VOI incentive revenue | |||||
Disaggregation of Revenue [Line Items] | |||||
Contract liabilities | $ 78 | 70 | |||
Deferred VOI incentive revenue | Vacation Ownership | |||||
Disaggregation of Revenue [Line Items] | |||||
Contract with Customer, Liability, Revenue Recognition Term | 2 years | ||||
Deferred exchange-related revenue | |||||
Disaggregation of Revenue [Line Items] | |||||
Contract liabilities | [1] | $ 59 | 53 | ||
Deferred co-branded credit card programs revenue | |||||
Disaggregation of Revenue [Line Items] | |||||
Contract liabilities | 7 | 9 | |||
Deferred other revenue | |||||
Disaggregation of Revenue [Line Items] | |||||
Contract liabilities | $ 1 | $ 3 | |||
[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, 2023 | Sep. 30, 2022 | |
Revenue Recognition and Deferred Revenue [Abstract] | ||
Contract liabilities, Beginning Balance | $ 400 | $ 382 |
Additions | 257 | 218 |
Revenue recognized | (221) | (205) |
Contract liabilities, Ending Balance | $ 436 | $ 395 |
Revenue Recognition (Capitalize
Revenue Recognition (Capitalized Contract Costs) (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2023 | Dec. 31, 2022 | |
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 | 3 years | |
Travel and Membership | ||
Capitalized Contract Cost [Line Items] | ||
Capitalized contract costs | $ 17 | $ 18 |
Other assets | Vacation Ownership | ||
Capitalized Contract Cost [Line Items] | ||
Capitalized contract costs | 45 | 35 |
Other assets | Travel and Membership | ||
Capitalized Contract Cost [Line Items] | ||
Capitalized contract costs | 6 | 7 |
Prepaid Expenses and Other Current Assets | Travel and Membership | ||
Capitalized Contract Cost [Line Items] | ||
Capitalized contract costs | $ 11 | $ 11 |
Revenue Recognition (Performanc
Revenue Recognition (Performance Obligations) (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Dec. 31, 2021 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||||
Contract with Customer, Liability | $ 436 | $ 400 | $ 395 | $ 382 | |
Deferred subscription revenue | |||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||||
Contract with Customer, Liability | 163 | 164 | |||
Deferred VOI trial package revenue | |||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||||
Contract with Customer, Liability | 128 | 101 | |||
Deferred VOI incentive revenue | |||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||||
Contract with Customer, Liability | 78 | 70 | |||
Deferred exchange-related revenue | |||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||||
Contract with Customer, Liability | [1] | 59 | 53 | ||
Deferred co-branded credit card programs revenue | |||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||||
Contract with Customer, Liability | 7 | 9 | |||
Deferred other revenue | |||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||||
Contract with Customer, Liability | 1 | $ 3 | |||
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 | $ 355 | ||||
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 | $ 96 | ||||
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 | $ 121 | ||||
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 | $ 78 | ||||
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 | $ 56 | ||||
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 | $ 1 | ||||
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 | $ 45 | ||||
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 | $ 37 | ||||
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 | $ 2 | ||||
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 | $ 3 | ||||
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 | $ 3 | ||||
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 | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-10-01 | |||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||||
Remaining performance obligations | $ 19 | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-10-01 | 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]: 2025-10-01 | Deferred VOI trial package 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]: 2025-10-01 | 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]: 2025-10-01 | 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]: 2025-10-01 | Deferred co-branded credit card programs 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]: 2025-10-01 | 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]: 2026-10-01 | |||||
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]: 2026-10-01 | Deferred subscription revenue | |||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||||
Remaining performance obligations | $ 14 | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-10-01 | Deferred VOI trial package 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]: 2026-10-01 | 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]: 2026-10-01 | 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]: 2026-10-01 | Deferred co-branded credit card programs 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]: 2026-10-01 | 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, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | ||
Disaggregation of Revenue [Line Items] | |||||
Net revenues | $ 986 | $ 937 | $ 2,814 | $ 2,668 | |
Operating Segments | |||||
Disaggregation of Revenue [Line Items] | |||||
Net revenues | 986 | 937 | 2,818 | 2,670 | |
Corporate and other | |||||
Disaggregation of Revenue [Line Items] | |||||
Net revenues | [1] | 0 | 0 | (4) | (2) |
Corporate and other | Ancillary revenues | |||||
Disaggregation of Revenue [Line Items] | |||||
Net revenues | 1 | 0 | 4 | 0 | |
Corporate and other | Eliminations | |||||
Disaggregation of Revenue [Line Items] | |||||
Net revenues | (1) | 0 | (8) | (2) | |
Vacation Ownership | Operating Segments | |||||
Disaggregation of Revenue [Line Items] | |||||
Net revenues | 812 | 754 | 2,265 | 2,098 | |
Vacation Ownership | Operating Segments | Vacation Ownership Interest Sales | |||||
Disaggregation of Revenue [Line Items] | |||||
Net revenues | 433 | 403 | 1,172 | 1,099 | |
Vacation Ownership | Operating Segments | Property management fees and reimbursable revenues | |||||
Disaggregation of Revenue [Line Items] | |||||
Net revenues | 206 | 191 | 610 | 565 | |
Vacation Ownership | Operating Segments | Consumer financing | |||||
Disaggregation of Revenue [Line Items] | |||||
Net revenues | 107 | 104 | 313 | 302 | |
Vacation Ownership | Operating Segments | Fee-for-Service commissions | |||||
Disaggregation of Revenue [Line Items] | |||||
Net revenues | 40 | 36 | 108 | 87 | |
Vacation Ownership | Operating Segments | Ancillary revenues | |||||
Disaggregation of Revenue [Line Items] | |||||
Net revenues | 26 | 20 | 62 | 45 | |
Travel and Membership | Operating Segments | |||||
Disaggregation of Revenue [Line Items] | |||||
Net revenues | 174 | 183 | 553 | 572 | |
Travel and Membership | Operating Segments | Ancillary revenues | |||||
Disaggregation of Revenue [Line Items] | |||||
Net revenues | 7 | 7 | 21 | 24 | |
Travel and Membership | Operating Segments | Transaction revenues | |||||
Disaggregation of Revenue [Line Items] | |||||
Net revenues | 121 | 129 | 395 | 411 | |
Travel and Membership | Operating Segments | Subscription revenues | |||||
Disaggregation of Revenue [Line Items] | |||||
Net revenues | $ 46 | $ 47 | $ 137 | $ 137 | |
[1]Includes the elimination of transactions between segments. |
Earnings Per Share (Computation
Earnings 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, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||||||
Net income from continuing operations attributable to Travel + Leisure Co. shareholders | $ 110 | $ 116 | $ 262 | $ 266 | |||||
Gain on disposal of discontinued business, net of income taxes | 0 | 0 | 5 | 0 | |||||
Net income attributable to Travel + Leisure Co. shareholders | $ 110 | $ 116 | $ 267 | $ 266 | |||||
Basic earnings per share | |||||||||
Continuing operations | [1] | $ 1.50 | $ 1.39 | $ 3.48 | $ 3.15 | ||||
Discontinued operations | [1] | 0 | 0 | 0.07 | 0 | ||||
Basic earnings per share | [1] | 1.50 | 1.39 | 3.55 | 3.15 | ||||
Diluted earnings per share | |||||||||
Continuing operations | [1] | 1.49 | 1.38 | 3.46 | 3.12 | ||||
Discontinued operations | [1] | 0 | 0 | 0.07 | 0 | ||||
Diluted earnings per share | [1] | $ 1.49 | $ 1.38 | $ 3.53 | $ 3.12 | ||||
Basic weighted average shares outstanding (in shares) | 73.3 | 83 | 75.3 | 84.6 | |||||
RSUs, PSUs, and NQs (in shares) | [2],[3],[4] | 0.3 | 0.6 | 0.4 | 0.9 | ||||
Diluted weighted average shares outstanding (in shares) | [5] | 73.6 | 83.6 | 75.7 | 85.5 | ||||
Aggregate dividends paid to shareholders | [6] | $ 33 | $ 33 | $ 104 | $ 103 | ||||
Common Stock, Dividends, Per Share, Cash Paid | $ 0.45 | $ 0.45 | $ 0.45 | $ 0.40 | $ 0.40 | $ 0.40 | $ 1.35 | $ 1.20 | |
Restricted Stock Units (RSUs) | |||||||||
Diluted earnings per share | |||||||||
Shares excluded from computation of diluted EPS (in shares) | 1 | 0.7 | 1.3 | 0.6 | |||||
Performance Shares [Member] | |||||||||
Diluted earnings per share | |||||||||
Shares excluded from computation of diluted EPS (in shares) | 0.8 | 0.5 | 0.8 | 0.5 | |||||
Share-based Payment Arrangement, Option [Member] | |||||||||
Diluted earnings per share | |||||||||
Shares excluded from computation of diluted EPS (in shares) | 2.3 | 2 | 2.3 | 1.1 | |||||
[1]Earnings per share amounts are calculated using whole numbers.[2]Excludes 1.0 million and 1.3 million of restricted stock units (“RSUs”) that would have been anti-dilutive to EPS for the three and nine months ended September 30, 2023 and 0.7 million and 0.6 million of RSUs that would have been anti-dilutive to EPS for the three and nine months ended September 30, 2022. These shares could potentially dilute EPS in the future.[3]Excludes 2.3 million of outstanding non-qualified stock options (“NQs”) that would have been anti-dilutive to EPS for both the three and nine months ended September 30, 2023 and 2.0 million and 1.1 million of outstanding NQs for the three and nine months ended September 30, 2022. These outstanding NQs could potentially dilute EPS in the future[4]Excludes performance-vested restricted stock units (“PSUs”) of 0.8 million for both the three and nine months ended September 30, 2023 and 0.5 million of PSUs for both the three and nine months ended September 30, 2022, 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.[6]The Company paid cash dividends of $0.45 and $1.35 per share during the three and nine months ended September 30, 2023 and $0.40 and $1.20 per share during the three and nine months ended September 30, 2022. |
Earnings Per Share (Current Sto
Earnings Per Share (Current Stock Repurchase Program) (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2023 USD ($) shares | |
Stock Repurchase Activity [Roll Forward] | |
Treasury Stock, Common, Shares, Beginning Balance | shares | 144,499,361 |
Treasury Stock, Common, Shares, Ending Balance | shares | 151,221,431 |
Treasury Stock, Value, Beginning Balance | $ 6,886 |
Treasury Stock, Value, Ending Balance | $ 7,155 |
Share Repurchase Program | |
Stock Repurchase Activity [Roll Forward] | |
Treasury Stock, Common, Shares, Beginning Balance | shares | 120,000,000 |
Repurchases | shares | 6,700,000 |
Treasury Stock, Common, Shares, Ending Balance | shares | 126,700,000 |
Treasury Stock, Value, Beginning Balance | $ 6,104 |
Repurchases | 267 |
Treasury Stock, Value, Ending Balance | 6,371 |
Remaining authorized amount under share repurchases | 210 |
Excise Tax Payable | 2 |
Share Repurchase Program | Option exercises | |
Stock Repurchase Activity [Roll Forward] | |
Stock Repurchase Program, Authorized Amount | $ 81 |
Acquisitions Narrative (Details
Acquisitions Narrative (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||||
Jan. 03, 2023 | Jan. 05, 2021 | Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | Sep. 30, 2023 | Sep. 30, 2022 | |
Business Acquisition [Line Items] | ||||||||
Payments to acquire business | $ 6 | $ 2 | ||||||
Travel and Membership | ||||||||
Business Acquisition [Line Items] | ||||||||
Asset Acquisition, Consideration Transferred | $ 100 | |||||||
Travel and Membership | Cash used in Investing Activities | ||||||||
Business Acquisition [Line Items] | ||||||||
Payments to Acquire Productive Assets | $ 35 | $ 15 | $ 20 | $ 20 | ||||
Travel and Membership | Cash used in Investing Activities | Subsequent Event [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Payments to Acquire Productive Assets | $ 10 | |||||||
Travel and Membership | Playbook365 | ||||||||
Business Acquisition [Line Items] | ||||||||
Business Combination, Consideration Transferred, net of cash acquired | $ 13 | |||||||
Payments to acquire business | 6 | |||||||
Business Combination, Contingent Consideration, Liability | 7 | |||||||
Business Acquisition, Goodwill, Expected Tax Deductible Amount | 5 | |||||||
Travel and Membership | Property, Plant and Equipment | Playbook365 | ||||||||
Business Acquisition [Line Items] | ||||||||
Business Combination, PP&E acquired | $ 5 | |||||||
Property, Plant and Equipment, Useful Life | 4 years | |||||||
Travel and Membership | Other intangibles, net [Member] | Playbook365 | ||||||||
Business Acquisition [Line Items] | ||||||||
Definite-lived intangible assets | $ 3 | |||||||
Definite-lived intangible assets, useful life | 4 years | |||||||
Travel and Membership | Accrued Liabilities [Member] | Playbook365 | ||||||||
Business Acquisition [Line Items] | ||||||||
Accrued expenses and other liabilities | $ 7 | |||||||
Travel and Membership | Maximum [Member] | Playbook365 | ||||||||
Business Acquisition [Line Items] | ||||||||
Business Combination, Contingent Consideration, Liability | $ 24 |
Discontinued Operations and Dis
Discontinued Operations and Disposal Groups (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Jun. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Gain on disposal of discontinued business, net of income taxes | $ 0 | $ 0 | $ 5 | $ 0 | |
Net cash used in investing activities - discontinued operations | 0 | (6) | |||
Sale Of European Vacation Rental Business | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Gain on disposal of discontinued business, net of income taxes | $ 5 | $ 5 | |||
Net cash used in investing activities - discontinued operations | $ (6) |
Vacation Ownership Contract R_4
Vacation Ownership Contract Receivables (Current And Long-Term Vacation Ownership Contract Receivables) (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Dec. 31, 2021 | |
Accounts, Notes, Loans and Financing Receivables [Line Items] | |||||
Non-securitized contract receivables | $ 3,029 | $ 2,911 | |||
Financing Receivable, Allowance for Credit Loss | 569 | 541 | $ 539 | $ 510 | |
Vacation ownership contract receivables, net | 2,460 | 2,370 | |||
Securitized | |||||
Accounts, Notes, Loans and Financing Receivables [Line Items] | |||||
Non-securitized contract receivables | [1] | 2,102 | 2,164 | ||
Securitized | Trade Accounts Receivable | |||||
Accounts, Notes, Loans and Financing Receivables [Line Items] | |||||
Interest receivables on securitized contract receivables | 16 | 17 | |||
Non-securitized | |||||
Accounts, Notes, Loans and Financing Receivables [Line Items] | |||||
Non-securitized contract receivables | [2] | 927 | 747 | ||
Non-securitized | Trade Accounts Receivable | |||||
Accounts, Notes, Loans and Financing Receivables [Line Items] | |||||
Interest receivables on securitized contract receivables | $ 8 | $ 7 | |||
[1]Excludes $16 million and $17 million of accrued interest on VOCRs as of September 30, 2023 and December 31, 2022, which are included in Trade receivables, net on the Condensed Consolidated Balance Sheets.[2]Excludes $8 million and $7 million of accrued interest on VOCRs as of September 30, 2023 and December 31, 2022, which are included in Trade receivables, net on the Condensed Consolidated Balance Sheets. |
Vacation Ownership Contract R_5
Vacation Ownership Contract Receivables (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Vacation Ownership Contract Receivables [Abstract] | |||||
Interest income on securitized receivables | $ 78 | $ 73 | $ 232 | $ 214 | |
Originated vacation ownership contract receivables | 1,040 | 922 | |||
Vacation ownership contract principal collections | $ 681 | 639 | |||
Weighted average interest rate | 14.70% | 14.70% | 14.60% | ||
Provision for Loan, Lease, and Other Losses | $ 99 | $ 91 | $ 257 | $ 216 | |
Financing Receivable, Threshold Period Past Due | 90 days | 90 days | |||
Financing Receivable, Threshold Period Past Due, Writeoff | 120 days | 120 days |
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, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Allowance for Loan Losses [Roll Forward] | ||||
Allowance for loan losses, beginning balance | $ 541 | $ 510 | ||
Provision for loan losses, net | $ 99 | $ 91 | 257 | 216 |
Contract receivables write-offs, net | 229 | 187 | ||
Allowance for loan losses, ending balance | $ 569 | $ 539 | $ 569 | $ 539 |
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, 2023 | Dec. 31, 2022 |
Financing Receivables, Recorded Investment [Line Items] | ||
Non-securitized contract receivables | $ 3,029 | $ 2,911 |
FICO Score, Greater than 700 [Member] | ||
Financing Receivables, Recorded Investment [Line Items] | ||
Non-securitized contract receivables | 1,836 | 1,726 |
FICO Score, 600 to 699 [Member] | ||
Financing Receivables, Recorded Investment [Line Items] | ||
Non-securitized contract receivables | 794 | 769 |
Less than 600 | ||
Financing Receivables, Recorded Investment [Line Items] | ||
Non-securitized contract receivables | 153 | 121 |
No Score | ||
Financing Receivables, Recorded Investment [Line Items] | ||
Non-securitized contract receivables | 87 | 151 |
Asia Pacific | ||
Financing Receivables, Recorded Investment [Line Items] | ||
Non-securitized contract receivables | 159 | 144 |
Current | ||
Financing Receivables, Recorded Investment [Line Items] | ||
Non-securitized contract receivables | 2,899 | 2,752 |
Current | FICO Score, Greater than 700 [Member] | ||
Financing Receivables, Recorded Investment [Line Items] | ||
Non-securitized contract receivables | 1,799 | 1,674 |
Current | FICO Score, 600 to 699 [Member] | ||
Financing Receivables, Recorded Investment [Line Items] | ||
Non-securitized contract receivables | 742 | 700 |
Current | Less than 600 | ||
Financing Receivables, Recorded Investment [Line Items] | ||
Non-securitized contract receivables | 117 | 93 |
Current | No Score | ||
Financing Receivables, Recorded Investment [Line Items] | ||
Non-securitized contract receivables | 83 | 142 |
Current | Asia Pacific | ||
Financing Receivables, Recorded Investment [Line Items] | ||
Non-securitized contract receivables | 158 | 143 |
31 - 60 days | ||
Financing Receivables, Recorded Investment [Line Items] | ||
Non-securitized contract receivables | 59 | 73 |
31 - 60 days | FICO Score, Greater than 700 [Member] | ||
Financing Receivables, Recorded Investment [Line Items] | ||
Non-securitized contract receivables | 19 | 24 |
31 - 60 days | FICO Score, 600 to 699 [Member] | ||
Financing Receivables, Recorded Investment [Line Items] | ||
Non-securitized contract receivables | 24 | 32 |
31 - 60 days | Less than 600 | ||
Financing Receivables, Recorded Investment [Line Items] | ||
Non-securitized contract receivables | 13 | 11 |
31 - 60 days | No Score | ||
Financing Receivables, Recorded Investment [Line Items] | ||
Non-securitized contract receivables | 2 | 5 |
31 - 60 days | Asia Pacific | ||
Financing Receivables, Recorded Investment [Line Items] | ||
Non-securitized contract receivables | 1 | 1 |
61 - 90 days | ||
Financing Receivables, Recorded Investment [Line Items] | ||
Non-securitized contract receivables | 38 | 45 |
61 - 90 days | FICO Score, Greater than 700 [Member] | ||
Financing Receivables, Recorded Investment [Line Items] | ||
Non-securitized contract receivables | 10 | 16 |
61 - 90 days | FICO Score, 600 to 699 [Member] | ||
Financing Receivables, Recorded Investment [Line Items] | ||
Non-securitized contract receivables | 16 | 20 |
61 - 90 days | Less than 600 | ||
Financing Receivables, Recorded Investment [Line Items] | ||
Non-securitized contract receivables | 11 | 7 |
61 - 90 days | No Score | ||
Financing Receivables, Recorded Investment [Line Items] | ||
Non-securitized contract receivables | 1 | 2 |
61 - 90 days | Asia Pacific | ||
Financing Receivables, Recorded Investment [Line Items] | ||
Non-securitized contract receivables | 0 | 0 |
91 - 120 days | ||
Financing Receivables, Recorded Investment [Line Items] | ||
Non-securitized contract receivables | 33 | 41 |
91 - 120 days | FICO Score, Greater than 700 [Member] | ||
Financing Receivables, Recorded Investment [Line Items] | ||
Non-securitized contract receivables | 8 | 12 |
91 - 120 days | FICO Score, 600 to 699 [Member] | ||
Financing Receivables, Recorded Investment [Line Items] | ||
Non-securitized contract receivables | 12 | 17 |
91 - 120 days | Less than 600 | ||
Financing Receivables, Recorded Investment [Line Items] | ||
Non-securitized contract receivables | 12 | 10 |
91 - 120 days | No Score | ||
Financing Receivables, Recorded Investment [Line Items] | ||
Non-securitized contract receivables | 1 | 2 |
91 - 120 days | Asia Pacific | ||
Financing Receivables, Recorded Investment [Line Items] | ||
Non-securitized contract receivables | $ 0 | $ 0 |
Vacation Ownership Contract R_8
Vacation Ownership Contract Receivables Vacation Ownership Contract Receivables (Year of Origination) (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Financing Receivable, Origination [Line Items] | ||
Financing Receivable, Year One, Originated, Current Fiscal Year | $ 1,031 | $ 1,194 |
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year | 772 | 481 |
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year | 336 | 226 |
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year | 164 | 355 |
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year | 262 | 279 |
Financing Receivable, Originated, More than Five Years before Current Fiscal Year | 464 | 376 |
Non-securitized contract receivables | 3,029 | 2,911 |
FICO Score, Greater than 700 [Member] | ||
Financing Receivable, Origination [Line Items] | ||
Financing Receivable, Year One, Originated, Current Fiscal Year | 686 | 745 |
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year | 459 | 275 |
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year | 190 | 134 |
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year | 96 | 198 |
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year | 145 | 162 |
Financing Receivable, Originated, More than Five Years before Current Fiscal Year | 260 | 212 |
Non-securitized contract receivables | 1,836 | 1,726 |
FICO Score, 600 to 699 [Member] | ||
Financing Receivable, Origination [Line Items] | ||
Financing Receivable, Year One, Originated, Current Fiscal Year | 229 | 291 |
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year | 230 | 149 |
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year | 98 | 60 |
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year | 42 | 97 |
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year | 71 | 74 |
Financing Receivable, Originated, More than Five Years before Current Fiscal Year | 124 | 98 |
Non-securitized contract receivables | 794 | 769 |
Less than 600 | ||
Financing Receivable, Origination [Line Items] | ||
Financing Receivable, Year One, Originated, Current Fiscal Year | 14 | 19 |
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year | 48 | 30 |
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year | 30 | 12 |
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year | 12 | 23 |
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year | 20 | 16 |
Financing Receivable, Originated, More than Five Years before Current Fiscal Year | 29 | 21 |
Non-securitized contract receivables | 153 | 121 |
No Score | ||
Financing Receivable, Origination [Line Items] | ||
Financing Receivable, Year One, Originated, Current Fiscal Year | 25 | 87 |
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year | 16 | 8 |
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year | 5 | 5 |
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year | 4 | 16 |
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year | 12 | 13 |
Financing Receivable, Originated, More than Five Years before Current Fiscal Year | 25 | 22 |
Non-securitized contract receivables | 87 | 151 |
Asia Pacific | ||
Financing Receivable, Origination [Line Items] | ||
Financing Receivable, Year One, Originated, Current Fiscal Year | 77 | 52 |
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year | 19 | 19 |
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year | 13 | 15 |
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year | 10 | 21 |
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year | 14 | 14 |
Financing Receivable, Originated, More than Five Years before Current Fiscal Year | 26 | 23 |
Non-securitized contract receivables | $ 159 | $ 144 |
Vacation Ownership Contract R_9
Vacation Ownership Contract Receivables (Allowance For Loan Losses On Vacation Ownership Contract Receivables Gross Write-Offs) (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2023 USD ($) | |
Allowance for Credit Loss [Abstract] | |
Financing Receivable, Year One, Originated, Current Fiscal Year | $ 13 |
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year, Writeoff | 113 |
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year, Writeoff | 38 |
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year, Writeoff | 15 |
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year, Writeoff | 20 |
Financing Receivable, Originated, More than Five Years before Current Fiscal Year, Writeoff | 30 |
Financing Receivable, Allowance for Credit Loss, Writeoff | $ 229 |
Inventory (Summary of Inventory
Inventory (Summary of Inventory) (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Inventory Disclosure [Abstract] | ||
Completed VOI inventory | $ 913 | $ 982 |
Estimated VOI recoveries | 202 | 192 |
VOI construction in process | 9 | 14 |
Exchange and other inventory | 5 | 4 |
Land held for VOI development | 20 | 1 |
Total inventory | $ 1,149 | $ 1,193 |
Inventory (Narrative) (Details)
Inventory (Narrative) (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Inventory Disclosure [Abstract] | ||
Inventory transferred to Property and Equipment | $ 12 | $ 91 |
Inventory (Activity Related to
Inventory (Activity Related to Inventory Obligations) (Details) - USD ($) $ in Millions | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | ||
Inventory [Line Items] | |||
Total Inventory obligations, Beginning Balance | $ 37 | $ 14 | |
Purchases | 66 | 141 | |
Payments | (94) | (140) | |
Total Inventory obligations, Ending Balance | 9 | 15 | |
Atlanta, GA | |||
Inventory [Line Items] | |||
Inventory Sold Under Agreement to Repurchase, Repurchase Liability, Beginning Balance | [1],[2] | 0 | 0 |
Purchases | [1],[2] | 0 | 67 |
Payments | [1],[2] | 0 | (67) |
Inventory Sold Under Agreement to Repurchase, Repurchase Liability, Ending Balance | [1],[2] | 0 | 0 |
Las Vegas | |||
Inventory [Line Items] | |||
Inventory Sold Under Agreement to Repurchase, Repurchase Liability, Beginning Balance | [1] | 30 | 13 |
Purchases | [1] | 0 | 28 |
Payments | [1] | (30) | (35) |
Inventory Sold Under Agreement to Repurchase, Repurchase Liability, Ending Balance | [1] | 0 | 6 |
Other Inventory Sales | |||
Inventory [Line Items] | |||
Other inventory obligations, Beginning Balance | [3] | 7 | 1 |
Purchases | [3] | 66 | 46 |
Payments | [3] | (64) | (38) |
Other inventory obligations, Ending Balance | [3] | $ 9 | $ 9 |
[1]Included in Accrued expenses and other liabilities on the Condensed Consolidated Balance Sheets.[2]Represents vacation ownership inventory and property and equipment in Atlanta, Georgia, acquired from a third-party developer.[3]Included in Accounts payable on the Condensed Consolidated Balance Sheets. |
Property and equipment (Details
Property and equipment (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 | |
Property, Plant and Equipment [Line Items] | |||
Total property and equipment | $ 1,712 | $ 1,652 | |
Less: accumulated depreciation and amortization | 1,057 | 994 | |
Property and equipment, net | 655 | 658 | |
Capitalized software | |||
Property, Plant and Equipment [Line Items] | |||
Total property and equipment | 753 | 724 | |
Building and leasehold improvements | |||
Property, Plant and Equipment [Line Items] | |||
Total property and equipment | [1] | 685 | 671 |
Building and leasehold improvements | Unregistered VOI inventory | |||
Property, Plant and Equipment [Line Items] | |||
Total property and equipment | 254 | 242 | |
Furniture, fixtures and equipment | |||
Property, Plant and Equipment [Line Items] | |||
Total property and equipment | 191 | 192 | |
Land | |||
Property, Plant and Equipment [Line Items] | |||
Total property and equipment | 31 | 30 | |
Finance leases | |||
Property, Plant and Equipment [Line Items] | |||
Total property and equipment | 39 | 27 | |
Construction in progress | |||
Property, Plant and Equipment [Line Items] | |||
Total property and equipment | $ 13 | $ 8 | |
[1]Includes $254 million and $242 million of unregistered VOI inventory as of September 30, 2023 and December 31, 2022. |
Debt (Schedule of Long-term Deb
Debt (Schedule of Long-term Debt Instruments) (Details) $ in Millions, $ in Millions, $ in Millions | Sep. 30, 2023 USD ($) | Sep. 30, 2023 AUD ($) | Sep. 30, 2023 NZD ($) | Dec. 31, 2022 USD ($) | ||
Debt Instrument [Line Items] | ||||||
Finance lease liabilities | $ 20 | $ 11 | ||||
Long-term Debt | 5,622 | |||||
Term Notes [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt financing cost | 19 | 18 | ||||
Term Notes [Member] | Term Notes [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Non-recourse vacation ownership debt (VIE) | [1],[2] | 1,424 | 1,545 | |||
Non-recourse bank conduit facility [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Non-recourse vacation ownership debt (VIE) | [3] | 469 | ||||
Non-recourse bank conduit facility [Member] | USD bank conduit facility (due September 2025) [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Non-recourse vacation ownership debt (VIE) | [1],[4] | 372 | 321 | |||
Debt instrument, face amount | 600 | |||||
Non-recourse bank conduit facility [Member] | AUD/NZD bank conduit Facility (due April 2023) [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Non-recourse vacation ownership debt (VIE) | [1],[5] | 97 | 107 | |||
Debt instrument, face amount | $ 200 | $ 25 | ||||
Non-Recourse Vacation Ownership Debt [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Non-recourse vacation ownership debt (VIE) | [1] | 1,893 | 1,973 | |||
Long-term Debt | 1,893 | |||||
Long-term vacation ownership contract receivables | 2,240 | 2,290 | ||||
Revolving Credit Facility | Secured Revolving Credit Facility due May 2023 | Revolving Credit Facility | ||||||
Debt Instrument [Line Items] | ||||||
Revolving credit facility | [7],[8] | 451 | [6] | $ 0 | ||
Debt instrument, face amount | $ 1,000 | |||||
Long-Term Debt, Weighted Average Interest Rate, at Point in Time | 7.35% | 7.35% | 7.35% | 7.53% | ||
Debt | ||||||
Debt Instrument [Line Items] | ||||||
Long-term Debt | [7] | $ 3,729 | $ 3,669 | |||
Debt financing cost | 9 | 10 | ||||
Unamortized discount | 20 | 23 | ||||
Debt | $300 million secured term loan B (due May 2025) | Term Loan B [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt | [7],[9] | 284 | $ 286 | |||
Debt instrument, face amount | $ 300 | |||||
Long-Term Debt, Weighted Average Interest Rate, at Point in Time | 7.33% | 7.33% | 7.33% | 4.01% | ||
Debt | $300 million secured incremental term loan B (due December 2029) | Term Loan B [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt | [7],[10] | $ 287 | $ 288 | |||
Debt instrument, face amount | $ 300 | |||||
Long-Term Debt, Weighted Average Interest Rate, at Point in Time | 9.15% | 9.15% | 9.15% | 8.24% | ||
Debt | 3.90% Secured Notes (Due March 2023) [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Senior notes | [7],[11] | $ 0 | $ 400 | |||
Debt instrument, face amount | $ 400 | |||||
Unamortized (gains)/losses from the settlement of a derivative | (1) | |||||
Debt Instrument, Interest Rate, Stated Percentage | 3.90% | 3.90% | 3.90% | |||
Debt | 5.65% Secured Notes (Due April 2024) [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Senior notes | [7] | $ 300 | 299 | |||
Debt instrument, face amount | $ 300 | |||||
Debt Instrument, Interest Rate, Stated Percentage | 5.65% | 5.65% | 5.65% | |||
Debt | 6.60% secured notes due October 2025 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Senior notes | [7],[12] | $ 347 | 346 | |||
Debt instrument, face amount | 350 | |||||
Unamortized (gains)/losses from the settlement of a derivative | $ 2 | 3 | ||||
Debt Instrument, Interest Rate, Stated Percentage | 6.60% | 6.60% | 6.60% | |||
Debt | 6.625% Senior Secured Notes Due July 2026 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Senior notes | [7] | $ 646 | 645 | |||
Debt instrument, face amount | $ 650 | |||||
Debt Instrument, Interest Rate, Stated Percentage | 6.625% | 6.625% | 6.625% | |||
Debt | 6.00% secured notes due April 2027 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Senior notes | [7],[13] | $ 404 | 406 | |||
Debt instrument, face amount | 400 | |||||
Unamortized (gains)/losses from the settlement of a derivative | $ (6) | (7) | ||||
Debt Instrument, Interest Rate, Stated Percentage | 6% | 6% | 6% | |||
Debt | 4.50% Secured Notes (due Dec 2029) | ||||||
Debt Instrument [Line Items] | ||||||
Senior notes | [7] | $ 643 | 642 | |||
Debt instrument, face amount | $ 650 | |||||
Debt Instrument, Interest Rate, Stated Percentage | 4.50% | 4.50% | 4.50% | |||
Debt | 4.625% Secured notes due March 2030 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Senior notes | [7] | $ 347 | 346 | |||
Debt instrument, face amount | $ 350 | |||||
Debt Instrument, Interest Rate, Stated Percentage | 4.625% | 4.625% | 4.625% | |||
Debt | Finance leases [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Finance lease liabilities | [7] | $ 20 | $ 11 | |||
[1]Represents non-recourse debt that is securitized through bankruptcy-remote special purpose entities, 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 $2.24 billion and $2.29 billion of underlying gross VOCRs and related assets (which legally are not assets of the Company) as of September 30, 2023 and December 31, 2022.[2]The carrying amounts of the term notes are net of deferred financing costs of $19 million and $18 million as of September 30, 2023 and December 31, 2022.[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 $600 million under the USD bank conduit facility through September 2025. Borrowings under this facility are required to be repaid as the collateralized receivables amortize but no later than October 2026.[5]The Company has a borrowing capacity of 200 million Australian dollars (“AUD”) and 25 million New Zealand dollars (“NZD”) under the AUD/NZD bank conduit facility through December 2024. Borrowings under this facility are required to be repaid no later than January 2027.[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 $20 million and $23 million as of September 30, 2023 and December 31, 2022, and net of unamortized debt financing costs of $9 million and $10 million as of September 30, 2023 and December 31, 2022.[8]The weighted average effective interest rate on facility borrowings was 7.35% and 7.53% as of September 30, 2023 and December 31, 2022.[9]The weighted average effective interest rate on facility borrowings was 7.33% and 4.01% as of September 30, 2023 and December 31, 2022.[10]The weighted average effective interest rate on facility borrowings was 9.15% and 8.24% as of September 30, 2023 and December 31, 2022.[11]Includes less than $1 million of unamortized gains from the settlement of a derivative as of December 31, 2022.[12]Includes $2 million and $3 million of unamortized losses from the settlement of a derivative as of September 30, 2023 and December 31, 2022.[13]Includes $6 million and $7 million of unamortized gains from the settlement of a derivative as of September 30, 2023 and December 31, 2022. |
Debt Debt (Narrative) (Details)
Debt Debt (Narrative) (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Jul. 20, 2023 | Apr. 05, 2023 |
Sierra Timeshare 2023-1 | |||
Debt Instrument [Line Items] | |||
Debt instrument, face amount | $ 250 | ||
Long-term Debt, Percentage Bearing Variable Interest, Percentage Rate | 6.33% | ||
Debt Instrument, Advance Rate | 91.25% | ||
Sierra Timeshare 2023-2 | |||
Debt Instrument [Line Items] | |||
Debt instrument, face amount | $ 300 | ||
Long-term Debt, Percentage Bearing Variable Interest, Percentage Rate | 6.72% | ||
Debt Instrument, Advance Rate | 91.70% | ||
USD bank conduit facility (due September 2025) [Member] | Non-recourse bank conduit facility [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument, face amount | $ 600 |
Debt (Summary Of Outstanding De
Debt (Summary Of Outstanding Debt Maturities) (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 | |
Debt Instrument [Line Items] | |||
Within 1 year | $ 528 | ||
Between 1 and 2 years | 500 | ||
Between 2 and 3 years | 1,513 | ||
Between 3 and 4 years | 1,044 | ||
Between 4 and 5 years | 188 | ||
Thereafter | 1,849 | ||
Total long-term debt | 5,622 | ||
Non-Recourse Vacation Ownership Debt [Member] | |||
Debt Instrument [Line Items] | |||
Within 1 year | 215 | ||
Between 1 and 2 years | 209 | ||
Between 2 and 3 years | 513 | ||
Between 3 and 4 years | 184 | ||
Between 4 and 5 years | 185 | ||
Thereafter | 587 | ||
Total long-term debt | 1,893 | ||
Debt | |||
Debt Instrument [Line Items] | |||
Within 1 year | 313 | ||
Between 1 and 2 years | 291 | ||
Between 2 and 3 years | 1,000 | ||
Between 3 and 4 years | 860 | ||
Between 4 and 5 years | 3 | ||
Thereafter | 1,262 | ||
Total long-term debt | [1] | $ 3,729 | $ 3,669 |
[1]The carrying amounts of the secured notes and term loan are net of unamortized discounts of $20 million and $23 million as of September 30, 2023 and December 31, 2022, and net of unamortized debt financing costs of $9 million and $10 million as of September 30, 2023 and December 31, 2022. |
Debt (Summary Of Available Capa
Debt (Summary Of Available Capacity Under Borrowing Arrangements) (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 | ||
Non-recourse bank conduit facility [Member] | ||||
Debt Instrument [Line Items] | ||||
Total capacity | [1] | $ 744 | ||
Less: Outstanding borrowings | [1] | 469 | ||
Letters of Credit Outstanding, Amount | [1] | 0 | ||
Available capacity | [1] | 275 | ||
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] | 451 | [2] | $ 0 |
Letters of Credit Outstanding, Amount | [2] | 2 | ||
Available capacity | [2] | 547 | ||
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 carrying amounts of the secured notes and term loan are net of unamortized discounts of $20 million and $23 million as of September 30, 2023 and December 31, 2022, and net of unamortized debt financing costs of $9 million and $10 million as of September 30, 2023 and December 31, 2022.[4]The weighted average effective interest rate on facility borrowings was 7.35% and 7.53% as of September 30, 2023 and December 31, 2022. |
Debt (Debt Covenants) (Details)
Debt (Debt Covenants) (Details) | Sep. 30, 2023 |
Debt Instrument [Line Items] | |
Interest Coverage Ratio | 4.40 |
First Lien Leverage Ratio | 3.69 |
Revolving credit facility and term loan B facilities | |
Debt Instrument [Line Items] | |
Minimum interest coverage ratio | 2.50 |
Maximum first lien leverage ratio | 4.25 |
Debt (Interest Expense Narrativ
Debt (Interest Expense Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Debt Instrument [Line Items] | ||||
Interest expense | $ 64 | $ 48 | $ 183 | $ 143 |
Capitalized Interest Costs, Including Allowance for Funds Used During Construction | 1 | 1 | 1 | 1 |
Consumer financing interest | $ 29 | $ 20 | 81 | 55 |
Debt | ||||
Debt Instrument [Line Items] | ||||
Cash paid for interest | 174 | 135 | ||
Non-Recourse Vacation Ownership Debt [Member] | ||||
Debt Instrument [Line Items] | ||||
Cash paid for interest | $ 65 | $ 39 |
Variable Interest Entities (Ass
Variable Interest Entities (Assets And Liabilities Of Vacation Ownership SPEs) (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | |
Schedule Of Transfer And Financial Assets [Line Items] | ||||
Restricted cash (VIE - $80 as of 2023 and $83 as of 2022) | $ 154 | $ 138 | $ 136 | |
Other assets | 408 | 324 | ||
Total assets | 6,655 | 6,757 | ||
Total SPE liabilities | 7,652 | 7,661 | ||
Variable Interest Entity, Primary Beneficiary [Member] | ||||
Schedule Of Transfer And Financial Assets [Line Items] | ||||
Restricted cash (VIE - $80 as of 2023 and $83 as of 2022) | 80 | 83 | ||
Vacation Ownership SPEs | ||||
Schedule Of Transfer And Financial Assets [Line Items] | ||||
Deferred financing cost related to securitized debt | 19 | 18 | ||
Vacation Ownership SPEs | Variable Interest Entity, Primary Beneficiary [Member] | ||||
Schedule Of Transfer And Financial Assets [Line Items] | ||||
Securitized contract receivables, gross | [1] | 2,102 | 2,164 | |
Restricted cash (VIE - $80 as of 2023 and $83 as of 2022) | [2] | 80 | 83 | |
Interest receivables on securitized contract receivables | [3] | 16 | 17 | |
Other assets | [4] | 44 | 25 | |
Total assets | 2,242 | 2,289 | ||
Other liabilities | [5] | 3 | 5 | |
Total SPE liabilities | 1,896 | 1,978 | ||
SPE assets in excess of SPE liabilities | 346 | 311 | ||
Term Notes [Member] | Vacation Ownership SPEs | Variable Interest Entity, Primary Beneficiary [Member] | ||||
Schedule Of Transfer And Financial Assets [Line Items] | ||||
Non-recourse vacation ownership debt (VIE) | [6],[7] | 1,424 | 1,545 | |
Non-recourse bank conduit facility [Member] | ||||
Schedule Of Transfer And Financial Assets [Line Items] | ||||
Non-recourse vacation ownership debt (VIE) | [8] | 469 | ||
Non-recourse bank conduit facility [Member] | Vacation Ownership SPEs | Variable Interest Entity, Primary Beneficiary [Member] | ||||
Schedule Of Transfer And Financial Assets [Line Items] | ||||
Non-recourse vacation ownership debt (VIE) | [6] | $ 469 | $ 428 | |
[1]Included in Vacation ownership contract receivables, net on the Condensed Consolidated Balance Sheets.[2]Included in Restricted cash on the Condensed Consolidated Balance Sheets.[3]Included in Trade receivables, net on the Condensed Consolidated Balance Sheets.[4]Primarily includes deferred financing costs for the bank conduit facilities and a security investment asset, which is included in Other assets on the Condensed Consolidated Balance Sheets.[5]Primarily includes accrued interest on non-recourse debt, which is included in Accrued expenses and other liabilities on the Condensed Consolidated Balance Sheets.[6]Included in Non-recourse vacation ownership debt on the Condensed Consolidated Balance Sheets.[7]Includes deferred financing costs of $19 million and $18 million as of September 30, 2023 and December 31, 2022, related to non-recourse debt.[8]Consists of the Company’s USD bank conduit facility and AUD/NZD bank conduit facility. The capacity of these facilities is subject to the Company’s ability to provide additional assets to collateralize additional non-recourse borrowings. |
Variable Interest Entities (Nar
Variable Interest Entities (Narrative) (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 | |
Schedule Of Transfer And Financial Assets [Line Items] | |||
Non-securitized contract receivables | $ 3,029 | $ 2,911 | |
Non Securitized Receivable [Member] | |||
Schedule Of Transfer And Financial Assets [Line Items] | |||
Non-securitized contract receivables | [1] | 927 | 747 |
Non Securitized Receivable [Member] | Variable Interest Entity, Primary Beneficiary [Member] | |||
Schedule Of Transfer And Financial Assets [Line Items] | |||
Non-securitized contract receivables | $ 927 | $ 747 | |
[1]Excludes $8 million and $7 million of accrued interest on VOCRs as of September 30, 2023 and December 31, 2022, which are included in Trade receivables, net on the Condensed Consolidated Balance Sheets. |
Variable Interest Entities (Sum
Variable Interest Entities (Summary Of Total Vacation Ownership Receivables And Other Securitized Assets, Net Of Securitized Liabilities And Allowance For Loan Losses) (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 | |
Schedule Of Transfer And Financial Assets [Line Items] | |||
Non-securitized contract receivables | $ 3,029 | $ 2,911 | |
Non Securitized Receivable [Member] | |||
Schedule Of Transfer And Financial Assets [Line Items] | |||
Non-securitized contract receivables | [1] | 927 | 747 |
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 | 346 | 311 | |
Non-securitized contract receivables | 927 | 747 | |
Less: allowance for loan losses | 569 | 541 | |
Total, net | $ 704 | $ 517 | |
[1]Excludes $8 million and $7 million of accrued interest on VOCRs as of September 30, 2023 and December 31, 2022, which are included in Trade receivables, net on the Condensed Consolidated Balance Sheets. |
Fair Value (Carrying Amounts An
Fair Value (Carrying Amounts And Estimated Fair Values Of Financial Instruments) (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative Asset, Statement of Financial Position [Extensible Enumeration] | Other assets | |
Derivative Liability, Statement of Financial Position [Extensible Enumeration] | Accrued expenses and other liabilities | |
Fair Value, Inputs, Level 3 [Member] | Reported Value Measurement [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Vacation ownership contract receivables, net (Level 3) | $ 2,460 | $ 2,370 |
Fair Value, Inputs, Level 3 [Member] | Estimate of Fair Value Measurement [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Vacation ownership contract receivables, net (Level 3) | 2,774 | 2,639 |
Fair Value, Inputs, Level 2 [Member] | Reported Value Measurement [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt (Level 2) | 5,622 | 5,642 |
Fair Value, Inputs, Level 2 [Member] | Estimate of Fair Value Measurement [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt (Level 2) | 5,375 | $ 5,356 |
Foreign Exchange Contracts | Recurring Basis | Fair Value, Inputs, Level 2 [Member] | Estimate of Fair Value Measurement [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative Asset | 1 | |
Derivative Liability | $ 1 |
Derivative Instruments And He_2
Derivative Instruments And Hedging Activities Derivative Instruments and Hedging Activities (Details) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 USD ($) numberOfInterestRateDerivatives | Sep. 30, 2022 USD ($) numberOfInterestRateDerivatives | Sep. 30, 2023 USD ($) numberOfInterestRateDerivatives | Sep. 30, 2022 USD ($) numberOfInterestRateDerivatives | |
Derivative [Line Items] | ||||
AOCI, Cash Flow Hedge, Cumulative Gain (Loss), after Tax | $ 0 | $ 0 | ||
Interest Rate Contract [Member] | ||||
Derivative [Line Items] | ||||
Number of Interest Rate Derivatives Held | numberOfInterestRateDerivatives | 0 | 0 | 0 | 0 |
Foreign Exchange Contracts | Designated as Hedging Instrument | ||||
Derivative [Line Items] | ||||
Unrealized Loss on Foreign Currency Derivatives, before Tax | $ 0 | $ 0 | $ 0 | $ 0 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Income tax payments, net of refunds | $ 114 | $ 110 | ||
Latest Tax Year | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Effective income tax rate | 25.90% | 26.90% | ||
Earliest Tax Year | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Effective income tax rate | 28.50% | 27.60% |
Leases Narrative (Details)
Leases Narrative (Details) | 9 Months Ended |
Sep. 30, 2023 | |
Minimum [Member] | |
Lessee, Operating Lease, Remaining Lease Term | 1 year |
Maximum [Member] | |
Lessee, Operating Lease, Remaining Lease Term | 20 years |
Lessee, Operating Lease, Renewal Term | 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, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Leases [Abstract] | ||||
Operating lease cost | $ 5 | $ 6 | $ 16 | $ 17 |
Short-term lease cost | 3 | 3 | 10 | 10 |
Amortization of right-of-use assets | 2 | 1 | 6 | 4 |
Interest on lease liabilities | 1 | 0 | 1 | 0 |
Total finance lease cost | $ 3 | $ 1 | $ 7 | $ 4 |
Leases, Assets and Liabilities
Leases, Assets and Liabilities (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 | |
Leases [Abstract] | |||
Operating lease right-of-use assets | $ 50 | $ 62 | |
Operating lease liabilities | 92 | 111 | |
Finance lease assets | [1] | 21 | 12 |
Finance lease liabilities | $ 20 | $ 11 | |
Operating Lease, Weighted Average Remaining Lease Term | 5 years 2 months 12 days | 5 years 7 months 6 days | |
Finance Lease, Weighted Average Remaining Lease Term | 2 years 10 months 24 days | 2 years 8 months 12 days | |
Operating Lease, Weighted Average Discount Rate, Percent | [2] | 6% | 5.90% |
Finance Lease, Weighted Average Discount Rate, Percent | 6.40% | 5.40% | |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Other assets | Other assets | |
Operating Lease, Liability, Statement of Financial Position [Extensible Enumeration] | Other Liabilities | Other Liabilities | |
Finance Leased Asset, Type [Extensible Enumeration] | Property and equipment, net | Property and equipment, net | |
Finance Lease, Liability, Statement of Financial Position [Extensible Enumeration] | Debt | Debt | |
[1]Presented net of accumulated depreciation.[2]Upon adoption of the lease standard, discount rates used for existing leases were established at January 1, 2019. |
Leases Leases, Cash Flow Presen
Leases Leases, Cash Flow Presentation (Details) - USD ($) $ in Millions | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | ||
Leases [Abstract] | |||
Operating cash outflows from operating leases | $ 24 | $ 24 | |
Operating cash outflows from finance leases | 1 | 0 | |
Financing cash outflows from finance leases | 7 | 4 | |
Right-of-Use Asset Obtained in Exchange for Operating Lease Liability | [1] | 3 | (1) |
Right-of-Use Asset Obtained in Exchange for Finance Lease Liability | $ 15 | $ 5 | |
[1]Includes write-off of right-of-use assets during the nine months ended September 30, 2022. |
Leases Maturity (Details)
Leases Maturity (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Leases [Abstract] | ||
Lessee, Operating Lease, Liability, to be Paid, Remainder of Fiscal Year | $ 8 | |
Finance Lease, Liability, to be Paid, Remainder of Fiscal Year | 2 | |
Lessee, Operating Lease, Liability, to be Paid, Year One | 29 | |
Finance Lease, Liability, to be Paid, Year One | 9 | |
Lessee, Operating Lease, Liability, to be Paid, Year Two | 24 | |
Finance Lease, Liability, to be Paid, Year Two | 7 | |
Lessee, Operating Lease, Liability, to be Paid, Year Three | 14 | |
Finance Lease, Liability, to be Paid, Year Three | 4 | |
Lessee, Operating Lease, Liability, to be Paid, Year Four | 13 | |
Finance Lease, Liability, to be Paid, Year Four | 1 | |
Lessee, Operating Lease, Liability, to be Paid, after Year Five | 21 | |
Finance Lease, Liability, to be Paid, after Year Five | 0 | |
Lessee, Operating Lease, Liability, to be Paid | 109 | |
Finance Lease, Liability, Payment, Due | 23 | |
Operating lease, Amount of lease payments representing interest | (17) | |
Capital Leases, Amount of lease payments representing interest | (3) | |
Operating lease liabilities | 92 | $ 111 |
Finance lease liabilities | $ 20 | $ 11 |
Commitments And Contingencies (
Commitments And Contingencies (Narrative) (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Commitments And Contingencies [Line Items] | ||
Estimated Litigation Liability | $ 6 | $ 3 |
Maximum [Member] | ||
Commitments And Contingencies [Line Items] | ||
Loss Contingency, Range of Possible Loss, Portion Not Accrued | $ 12 |
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, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Accumulated Other Comprehensive Loss, Net Of Tax | ||||||||
Beginning Balance, value | $ (1,004) | $ (975) | $ (904) | $ (846) | $ (811) | $ (794) | $ (904) | $ (794) |
Ending Balance, value | (997) | (1,004) | (975) | (903) | (846) | (811) | (997) | (903) |
Net income attributable to Travel + Leisure Co. shareholders | 110 | $ 94 | 64 | 116 | $ 100 | 51 | 267 | 266 |
Reclassification out of Accumulated Other Comprehensive Income | ||||||||
Accumulated Other Comprehensive Loss, Net Of Tax | ||||||||
Net income attributable to Travel + Leisure Co. shareholders | 0 | 0 | ||||||
Foreign Currency Translation Adjustments | ||||||||
Accumulated Other Comprehensive Loss, Before Tax | ||||||||
AOCL, Pretax, Beginning Balance | (178) | (145) | (178) | (145) | ||||
Other Comprehensive Income (Loss), before Tax | (15) | (67) | ||||||
AOCL, Pretax, Ending Balance | (193) | (212) | (193) | (212) | ||||
Accumulated Other Comprehensive Loss, Tax | ||||||||
AOCI, Tax, Beginning Balance | 99 | 97 | 99 | 97 | ||||
Other Comprehensive Income (Loss), Tax | 0 | 3 | ||||||
AOCI, Tax, Ending Balance | 99 | 100 | 99 | 100 | ||||
Accumulated Other Comprehensive Loss, Net Of Tax | ||||||||
Beginning Balance, value | (79) | (48) | (79) | (48) | ||||
Other comprehensive loss | (15) | (64) | ||||||
Ending Balance, value | (94) | (112) | (94) | (112) | ||||
Unrealized (losses)/Gains on Cash Flow Hedges | ||||||||
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 | 1 | 0 | 1 | ||||
Other Comprehensive Income (Loss), Tax | 0 | 0 | ||||||
AOCI, Tax, Ending Balance | 0 | 1 | 0 | 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 | ||||
Accumulated Other Comprehensive (Loss)/Income | ||||||||
Accumulated Other Comprehensive Loss, Before Tax | ||||||||
AOCL, Pretax, Beginning Balance | (178) | (146) | (178) | (146) | ||||
Other Comprehensive Income (Loss), before Tax | (15) | (67) | ||||||
AOCL, Pretax, Ending Balance | (193) | (213) | (193) | (213) | ||||
Accumulated Other Comprehensive Loss, Tax | ||||||||
AOCI, Tax, Beginning Balance | 99 | 98 | 99 | 98 | ||||
Other Comprehensive Income (Loss), Tax | 0 | 3 | ||||||
AOCI, Tax, Ending Balance | 99 | 101 | 99 | 101 | ||||
Accumulated Other Comprehensive Loss, Net Of Tax | ||||||||
Beginning Balance, value | $ (79) | $ (48) | (79) | (48) | ||||
Other comprehensive loss | (15) | (64) | ||||||
Ending Balance, value | $ (94) | $ (112) | $ (94) | $ (112) |
Stock-Based Compensation (Narra
Stock-Based Compensation (Narrative) (Details) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
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 | 10 | 10 | ||
Share-Based Compensation Arrangement Awards Vested in Period, Fair Value | $ 36 | $ 34 | ||
Stock-based compensation | $ 9 | $ 10 | 31 | 34 |
Share-based Payment Arrangement, Expense, Tax Benefit | 8 | 9 | ||
Net share settlement of incentive equity awards | $ 10 | $ 7 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Discount from Market Price, Purchase Date | 10% | |||
Stock Issued During Period, Shares, Employee Stock Ownership Plan | 0.1 | 0.1 | ||
Employee Stock Ownership Plan (ESOP), Compensation Expense | $ 1 | $ 1 | ||
Additional Paid-in Capital | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock Issued During Period, Value, Employee Stock Purchase Plan | 5 | 5 | ||
Restructuring Charges | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation | 3 | |||
RSUs | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares Granted, Value, Share-based Payment Arrangement, before Forfeiture | $ 35 | 32 | ||
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 | $ 21 | 13 | ||
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 | $ 0 | 0 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value | $ 1 | $ 1 |
Stock-Based Compensation Stock-
Stock-Based Compensation Stock-Based Compensation (Details) $ / shares in Units, shares in Millions, $ in Millions | 9 Months Ended | |
Sep. 30, 2023 USD ($) $ / shares shares | ||
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 8 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] | ||
Weighted Average Grant Price, Beginning Balance (in dollars per share) | $ / shares | $ 48.79 | |
Weighted Average Grant Price, Granted (in dollars per share) | $ / shares | 42.06 | |
Weighted Average Grant Price, Vested/exercised (in dollars per share) | $ / shares | 38.09 | [1] |
Weighted Average Grant Price, Forfeitures (in dollars) | $ / shares | 46.99 | [2] |
Weighted Average Grant Price, Ending Balance (in dollars per share) | $ / shares | $ 47.07 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested [Roll Forward] | ||
Number of Units, Beginning Balance (shares) | shares | 1.8 | |
Number of Units, Granted (shares) | shares | 0.8 | |
Number of Units, Vested/exercised (shares) | shares | (0.9) | [1] |
Number of Units, Forfeitures (shares) | shares | (0.1) | [2] |
Number of Units, Ending Balance (shares) | shares | 1.6 | [3] |
PSUs | ||
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 | $ 51.26 | |
Weighted Average Grant Price, Granted (in dollars per share) | $ / shares | 42.18 | |
Weighted Average Grant Price, Vested/exercised (in dollars per share) | $ / shares | 0 | [1] |
Weighted Average Grant Price, Forfeitures (in dollars) | $ / shares | 41.84 | [2] |
Weighted Average Grant Price, Ending Balance (in dollars per share) | $ / shares | $ 47.46 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested [Roll Forward] | ||
Number of Units, Beginning Balance (shares) | shares | 0.5 | |
Number of Units, Granted (shares) | shares | 0.5 | |
Number of Units, Vested/exercised (shares) | shares | 0 | [1] |
Number of Units, Forfeitures (shares) | shares | (0.2) | [2] |
Number of Units, Ending Balance (shares) | shares | 0.8 | [4] |
PSUs | Probable | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount | $ | $ 48 | |
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition | 1 year 10 months 24 days | |
PSUs | Maximum [Member] | Not probable | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount | $ | $ 4 | |
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition | 2 years 4 months 24 days | |
NQs | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount | $ | $ 2 | |
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition | 1 year 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, Option, Nonvested, Weighted Average Exercise Price, Beginning Balance | $ / shares | $ 45.36 | |
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price | $ / shares | 0 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercised, Weighted Average Grant Date Fair Value | $ / shares | 0 | [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 | $ 44.88 | |
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 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercised, Weighted Average Grant Date Fair Value | shares | 0 | [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 | [5] |
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 | 1.7 | |
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 5 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, Options, Exercised, Weighted Average Grant Date Fair Value | $ / shares | $ 8.61 | |
[1]Upon exercise of NQs and vesting of RSUs and PSUs, the Company issues new shares to participants.[2]The Company recognizes cancellations and forfeitures as they occur.[3]Aggregate unrecognized compensation expense related to RSUs was $58 million as of September 30, 2023, which is expected to be recognized over a weighted average period of 2.7 years.[4]The aggregate maximum unrecognized compensation expense related to PSUs that are probable of vesting was $48 million as of September 30, 2023, which is expected to be recognized over a weighted average period of 1.9 years. The maximum amount of compensation expense associated with PSUs that are not probable of vesting could range up to $4 million which would be recognized over a weighted average period of 2.4 years.[5]There were 1.7 million NQs which were exercisable as of September 30, 2023. These exercisable NQs will expire over a weighted average period of 5.5 years and carry a weighted average grant date fair value of $8.61. Unrecognized compensation expense for NQs was $2 million as of September 30, 2023, which is expected to be recognized over a weighted average period of 1.2 years |
Segment Information (Summary Of
Segment Information (Summary Of Segment Information) (Details) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2023 USD ($) | Sep. 30, 2022 USD ($) | Sep. 30, 2023 USD ($) segment | Sep. 30, 2022 USD ($) | Dec. 31, 2022 USD ($) | ||
Segment Reporting Information [Line Items] | ||||||
Number of Reportable Segments | segment | 2 | |||||
Net revenues | ||||||
Net revenues | $ 986 | $ 937 | $ 2,814 | $ 2,668 | ||
Reconciliation of Net income to Adjusted EBITDA | ||||||
Net income attributable to Travel + Leisure Co. shareholders | 110 | 116 | 267 | 266 | ||
Gain on disposal of discontinued business, net of income taxes | 0 | 0 | (5) | 0 | ||
Interest expense | 64 | 48 | 183 | 143 | ||
Interest (income) | (3) | (2) | (9) | (3) | ||
Provision for income taxes | 38 | 46 | 96 | 101 | ||
Depreciation and amortization | 28 | 30 | 83 | 91 | ||
Stock-based compensation | 9 | 10 | 31 | 34 | ||
Restructuring | [1] | 2 | 0 | 12 | 8 | |
Legacy items | 0 | (1) | 7 | 1 | ||
Loss on sale of business | [2] | 0 | 0 | 2 | 0 | |
(Gain)/loss on equity investment | 0 | (3) | 0 | 5 | ||
Asset recoveries, net | 0 | 0 | (1) | (1) | ||
Fair value change in contingent consideration | 0 | (10) | 0 | (10) | ||
Asset recoveries, net | 0 | (1) | ||||
Adjusted EBITDA | 248 | 234 | 667 | 634 | ||
Assets, Net of Investment in Unconsolidated Subsidiaries | [3] | 6,655 | 6,655 | $ 6,757 | ||
Restructuring Charges | ||||||
Reconciliation of Net income to Adjusted EBITDA | ||||||
Stock-based compensation | 3 | |||||
General and Administrative Expense [Member] | ||||||
Reconciliation of Net income to Adjusted EBITDA | ||||||
Stock-based compensation | 31 | |||||
Cost of vacation ownership interest/Asset Impairment | ||||||
Reconciliation of Net income to Adjusted EBITDA | ||||||
Asset recoveries, net | 0 | (1) | ||||
COVID-19 [Member] | ||||||
Reconciliation of Net income to Adjusted EBITDA | ||||||
COVID-19 related costs Adj EBITDA | [4] | 0 | 0 | 0 | 2 | |
Operating Segments | ||||||
Net revenues | ||||||
Net revenues | 986 | 937 | 2,818 | 2,670 | ||
Reconciliation of Net income to Adjusted EBITDA | ||||||
Adjusted EBITDA | 265 | 253 | 716 | 691 | ||
Assets, Net of Investment in Unconsolidated Subsidiaries | [3] | 6,290 | 6,290 | 6,161 | ||
Corporate and other | ||||||
Net revenues | ||||||
Net revenues | [5] | 0 | 0 | (4) | (2) | |
Reconciliation of Net income to Adjusted EBITDA | ||||||
Adjusted EBITDA | [5] | (17) | (19) | (49) | (57) | |
Assets, Net of Investment in Unconsolidated Subsidiaries | [3] | 365 | 365 | 596 | ||
Vacation Ownership | Operating Segments | ||||||
Net revenues | ||||||
Net revenues | 812 | 754 | 2,265 | 2,098 | ||
Reconciliation of Net income to Adjusted EBITDA | ||||||
Adjusted EBITDA | 203 | 188 | 521 | 480 | ||
Assets, Net of Investment in Unconsolidated Subsidiaries | [3] | 4,932 | 4,932 | 4,826 | ||
Travel and Membership | Operating Segments | ||||||
Net revenues | ||||||
Net revenues | 174 | 183 | 553 | 572 | ||
Reconciliation of Net income to Adjusted EBITDA | ||||||
Adjusted EBITDA | 62 | $ 65 | 195 | $ 211 | ||
Assets, Net of Investment in Unconsolidated Subsidiaries | [3] | $ 1,358 | $ 1,358 | $ 1,335 | ||
[1]Includes $3 million of stock-based compensation expense for the nine months ended September 30, 2022, associated with the 2022 restructuring.[2]Represents the loss on sale of the Love Home Swap business.[3]Excludes investment in consolidated subsidiaries.[4]Includes expenses related to COVID-19 testing and other expenses associated with the Company’s return-to-work program in 2022.[5]Includes the elimination of transactions between segments. |
Restructuring (Narrative) (Deta
Restructuring (Narrative) (Details) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2023 USD ($) | Sep. 30, 2022 USD ($) | Sep. 30, 2023 USD ($) brand | Sep. 30, 2022 USD ($) | Dec. 31, 2022 USD ($) | ||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring charges | [1] | $ 2 | $ 0 | $ 12 | $ 8 | |
Stock-based compensation | 9 | $ 10 | 31 | 34 | ||
Cash payments | (13) | |||||
Restructuring liability | 25 | 25 | $ 26 | |||
Personnel-related | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring charges | 11 | |||||
Cash payments | (9) | |||||
Restructuring liability | 8 | 8 | 6 | |||
Facility related | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring charges | 1 | |||||
Cash payments | (4) | |||||
Restructuring liability | 17 | 17 | 20 | |||
Restructuring Plan 2023 | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring charges | 2 | $ 12 | ||||
Restructuring and Related Cost, Number of Positions Eliminated | brand | 150 | |||||
Cash payments | $ (5) | |||||
Restructuring liability | 7 | 7 | ||||
Restructuring Plan 2023 | Vacation Ownership | Personnel-related | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring charges | 6 | |||||
Restructuring Plan 2023 | Vacation Ownership | Facility related | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring charges | 1 | |||||
Restructuring Plan 2023 | Corporate and Other | Personnel-related | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring charges | 3 | |||||
Restructuring Plan 2023 | Travel and Membership | Personnel-related | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring charges | 2 | |||||
Restructuring Plan 2022 | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring charges | 14 | |||||
Cash payments | (6) | |||||
Restructuring liability | 1 | 1 | 7 | |||
Restructuring Plan 2022 | Vacation Ownership | Personnel and facility | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring charges | 3 | |||||
Restructuring Plan 2022 | Corporate and Other | Personnel-related | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring charges | 2 | |||||
Restructuring Plan 2022 | Travel and Membership | Personnel-related | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring charges | 9 | |||||
Restructuring plans prior to 2022 | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Cash payments | (2) | |||||
Restructuring liability | $ 19 | |||||
Restructuring plans prior to 2022 | Facility related | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring liability | $ 17 | $ 17 | ||||
Restructuring Charges | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Stock-based compensation | $ 3 | |||||
[1]Includes $3 million of stock-based compensation expense for the nine months ended September 30, 2022, associated with the 2022 restructuring. |
Restructuring (Activity Related
Restructuring (Activity Related To The Restructuring Costs) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | ||
Restructuring Cost and Reserve [Roll Forward] | |||||
Liability beginning balance | $ 26 | ||||
Restructuring | [1] | $ 2 | $ 0 | 12 | $ 8 |
Cash Payments | (13) | ||||
Liability ending balance | 25 | 25 | |||
Facility related | |||||
Restructuring Cost and Reserve [Roll Forward] | |||||
Liability beginning balance | 20 | ||||
Restructuring | 1 | ||||
Cash Payments | (4) | ||||
Liability ending balance | 17 | 17 | |||
Personnel-related | |||||
Restructuring Cost and Reserve [Roll Forward] | |||||
Liability beginning balance | 6 | ||||
Restructuring | 11 | ||||
Cash Payments | (9) | ||||
Liability ending balance | $ 8 | $ 8 | |||
[1]Includes $3 million of stock-based compensation expense for the nine months ended September 30, 2022, associated with the 2022 restructuring. |
Transactions with Former Pare_2
Transactions with Former Parent and Former Subsidiaries (Narrative) (Details) £ in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | |||||
Sep. 30, 2023 USD ($) | Jun. 30, 2023 USD ($) | Sep. 30, 2022 USD ($) | Sep. 30, 2023 USD ($) | Sep. 30, 2022 USD ($) | Sep. 30, 2023 GBP (£) | Dec. 31, 2022 USD ($) | |
Separation Adjustments And Transactions With Former Parent And Subsidiaries [Line Items] | |||||||
Gain on disposal of discontinued business, net of income taxes | $ 0 | $ 0 | $ 5 | $ 0 | |||
Legacy items | 0 | $ (1) | 7 | $ 1 | |||
Sale Of European Vacation Rental Business | |||||||
Separation Adjustments And Transactions With Former Parent And Subsidiaries [Line Items] | |||||||
Gain on disposal of discontinued business, net of income taxes | $ 5 | 5 | |||||
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 | 46 | 46 | |||||
Guarantee, fair value | 22 | 22 | |||||
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 | $ 84 | $ 84 | |||||
Cendant | |||||||
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 | 0.25 | 0.25 | ||||
Separation and Distribution Agreement, Portion of Proceeds From Contingent and Other Corporate Assets | 0.67 | 0.67 | 0.67 | ||||
Cendant | Realogy | |||||||
Separation Adjustments And Transactions With Former Parent And Subsidiaries [Line Items] | |||||||
Responsible liability for separation agreement | 62.50% | ||||||
Cendant | Wyndham Hotels & Resorts, Inc. [Member] | |||||||
Separation Adjustments And Transactions With Former Parent And Subsidiaries [Line Items] | |||||||
Contingent and other corporate liabilities retained | 0.33 | 0.33 | 0.33 | ||||
Separation and Distribution Agreement, Portion of Proceeds From Contingent and Other Corporate Assets | 0.33 | 0.33 | 0.33 | ||||
Wyndham Hotels & Resorts, Inc. [Member] | |||||||
Separation Adjustments And Transactions With Former Parent And Subsidiaries [Line Items] | |||||||
Separation and Distribution Agreement, Portion of Certain Contingent and Other Corporate Liabilities Assumed | 0.67 | 0.67 | 0.67 | ||||
Post-closing Credit Support, Portion of Escrow Received Upon Release | 0.67 | 0.67 | 0.67 | ||||
Post-closing Credit Support, Portion of Guarantees Assumed | 0.67 | 0.67 | 0.67 | ||||
Wyndham Hotels & Resorts, Inc. [Member] | Sale Of European Vacation Rental Business | General and Administrative Expense [Member] | |||||||
Separation Adjustments And Transactions With Former Parent And Subsidiaries [Line Items] | |||||||
Legacy items | $ 2 | ||||||
Wyndham Hotels & Resorts, Inc. [Member] | Sale Of European Vacation Rental Business | Financial Guarantee | |||||||
Separation Adjustments And Transactions With Former Parent And Subsidiaries [Line Items] | |||||||
Other Receivables, Net, Current | $ 7 | $ 7 | |||||
Wyndham Hotels & Resorts, Inc. [Member] | Sale Of European Vacation Rental Business | Indemnification Agreement | |||||||
Separation Adjustments And Transactions With Former Parent And Subsidiaries [Line Items] | |||||||
Other Receivables, Net, Current | 12 | 12 | |||||
Wyndham Hotels & Resorts, Inc. [Member] | Other assets | Sale Of European Vacation Rental Business | |||||||
Separation Adjustments And Transactions With Former Parent And Subsidiaries [Line Items] | |||||||
Other Receivables, Net, Current | $ 19 | $ 19 | |||||
Wyndham Hotels & Resorts, Inc. [Member] | Wyndham Hotels & Resorts, Inc. [Member] | |||||||
Separation Adjustments And Transactions With Former Parent And Subsidiaries [Line Items] | |||||||
Separation and Distribution Agreement, Portion of Certain Contingent and Other Corporate Liabilities Assumed | 0.33 | 0.33 | 0.33 | ||||
Post-closing Credit Support, Portion of Escrow Received Upon Release | 0.33 | 0.33 | 0.33 | ||||
Affiliated Entity | 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 | $ 81 | £ 61 | ||||
Guarantee, fair value | 39 | 39 | £ 32 | ||||
Affiliated Entity | Sale Of European Vacation Rental Business | Indemnification Agreement | |||||||
Separation Adjustments And Transactions With Former Parent And Subsidiaries [Line Items] | |||||||
Guarantee, fair value | 36 | 36 | |||||
Affiliated Entity | Cendant | California Office of Tax Appeals | |||||||
Separation Adjustments And Transactions With Former Parent And Subsidiaries [Line Items] | |||||||
Liabilities assumed | 7 | ||||||
Affiliated Entity | Cendant | Accrued Expenses and Other Liabilities | |||||||
Separation Adjustments And Transactions With Former Parent And Subsidiaries [Line Items] | |||||||
Loss Contingency Accrual | 22 | 22 | $ 15 | ||||
Vacasa LLC | 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 | $ 2 |
Related Party Transactions Rela
Related Party Transactions Related Party Transactions (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Related Party Transaction [Line Items] | ||||
Operating | $ 428 | $ 417 | $ 1,275 | $ 1,202 |
Affiliated Entity | ||||
Related Party Transaction [Line Items] | ||||
Operating | $ 1 | $ 1 |
Subsequent Events (Details)
Subsequent Events (Details) - Subsequent Event [Member] - Sierra Timeshare 2023-3 $ in Millions | Oct. 19, 2023 USD ($) |
Subsequent Event [Line Items] | |
Debt instrument, face amount | $ 300 |
Long-term Debt, Percentage Bearing Variable Interest, Percentage Rate | 6.78% |
Debt Instrument, Advance Rate | 91.75% |