Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Feb. 28, 2020 | Jun. 30, 2019 | |
Cover [Abstract] | |||
Entity Registrant Name | Hilton Grand Vacations Inc. | ||
Entity Central Index Key | 0001674168 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Current Reporting Status | Yes | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2019 | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Common Stock, Shares Outstanding | 85,542,191 | ||
Entity Public Float | $ 2,703 | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Interactive Data Current | Yes | ||
Title of 12(b) Security | Common Stock, $0.01 par value per share | ||
Trading Symbol | HGV | ||
Security Exchange Name | NYSE | ||
Entity File Number | 001-37794 | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 81-2545345 | ||
Entity Address, Address Line One | 6355 MetroWest Boulevard | ||
Entity Address, Address Line Two | Suite 180 | ||
Entity Address, City or Town | Orlando | ||
Entity Address, State or Province | FL | ||
Entity Address, Postal Zip Code | 32835 | ||
City Area Code | 407 | ||
Local Phone Number | 613-3100 | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Entity Filer Category | Large Accelerated Filer | ||
Documents Incorporated by Reference [Text Block] | The registrant has incorporated by reference into Part III of this report certain portions of its proxy statement for its 2020 annual meeting of stockholders, which is expected to be filed pursuant to Regulation 14A within 120 days after the end of the registrant’s fiscal year ended December 31, 2019. |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
ASSETS | ||
Cash and cash equivalents | $ 67 | $ 108 |
Restricted cash | 85 | 72 |
Accounts receivable, net of allowance for doubtful accounts of $21 and $14 | 174 | 153 |
Timeshare financing receivables, net | 1,156 | 1,120 |
Inventory | 558 | 527 |
Property and equipment, net | 778 | 559 |
Operating lease right-of-use assets, net | 60 | |
Investments in unconsolidated affiliates | 44 | 38 |
Intangible assets, net | 89 | 81 |
Other assets | 68 | 95 |
TOTAL ASSETS (variable interest entities - $748 and $647) | 3,079 | 2,753 |
LIABILITIES AND EQUITY | ||
Accounts payable, accrued expenses and other | 298 | 324 |
Advanced deposits | 115 | 101 |
Debt, net | 828 | 604 |
Non-recourse debt, net | 747 | 759 |
Operating lease liabilities | 76 | |
Deferred revenues | 186 | 95 |
Deferred income tax liabilities | 259 | 254 |
Total liabilities (variable interest entities - $750 and $640) | 2,509 | 2,137 |
Commitments and contingencies - see Note 22 | ||
Equity: | ||
Preferred stock, $0.01 par value; 300,000,000 authorized shares, none issued or outstanding as of December 31, 2019 and 2018 | ||
Common stock, $0.01 par value; 3,000,000,000 authorized shares, 85,535,501 and 94,558,086 issued and outstanding as of December 31, 2019 and 2018, respectively | 1 | 1 |
Additional paid-in capital | 179 | 174 |
Accumulated retained earnings | 390 | 441 |
Total equity | 570 | 616 |
TOTAL LIABILITIES AND EQUITY | $ 3,079 | $ 2,753 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Statement Of Financial Position [Abstract] | ||
Allowance for doubtful accounts receivable | $ 21 | $ 14 |
Assets, variable interest entity | 748 | 647 |
Liabilities, variable interest entity | $ 750 | $ 640 |
Preferred Stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred Stock, shares authorized | 300,000,000 | 300,000,000 |
Preferred Stock, shares issued | 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) | 3,000,000,000 | 3,000,000,000 |
Common Stock, shares issued (in shares) | 85,535,501 | 94,558,086 |
Common Stock, shares outstanding (in shares) | 85,535,501 | 94,558,086 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) | 12 Months Ended | |||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||||
Revenues | ||||||
Total revenues | $ 1,838,000,000 | [1] | $ 1,999,000,000 | [1] | $ 1,711,000,000 | |
Expenses | ||||||
General and administrative | 111,000,000 | 117,000,000 | 104,000,000 | |||
Depreciation and amortization | 51,000,000 | 36,000,000 | 29,000,000 | |||
Total operating expenses | 1,523,000,000 | [1] | 1,565,000,000 | [1] | 1,374,000,000 | |
Interest expense | (43,000,000) | (30,000,000) | (27,000,000) | |||
Equity in earnings from unconsolidated affiliates | 4,000,000 | 1,000,000 | ||||
Other loss, net | (3,000,000) | (1,000,000) | ||||
Income before income taxes | 273,000,000 | [1] | 403,000,000 | [1] | 311,000,000 | |
Income tax (expense) benefit | [2] | (57,000,000) | (105,000,000) | 16,000,000 | ||
Net income | [3] | $ 215,695,961 | [1] | $ 298,124,983 | [1] | $ 326,777,744 |
Earnings per share: | ||||||
Basic | $ 2.43 | [1] | $ 3.07 | [1] | $ 3.30 | |
Diluted | $ 2.42 | [1] | $ 3.05 | [1] | $ 3.28 | |
Sales of VOIs, Net | ||||||
Revenues | ||||||
Total revenues | $ 509,000,000 | $ 734,000,000 | $ 548,000,000 | |||
Sales, Marketing, Brand and Other Fees | ||||||
Revenues | ||||||
Total revenues | 573,000,000 | 570,000,000 | 544,000,000 | |||
Financing | ||||||
Revenues | ||||||
Total revenues | 170,000,000 | 158,000,000 | 147,000,000 | |||
Expenses | ||||||
Expenses | 53,000,000 | 49,000,000 | 43,000,000 | |||
Resort and Club Management | ||||||
Revenues | ||||||
Total revenues | 191,000,000 | 172,000,000 | 158,000,000 | |||
Expenses | ||||||
Expenses | 46,000,000 | 47,000,000 | 43,000,000 | |||
Rental and Ancillary Services | ||||||
Revenues | ||||||
Total revenues | 227,000,000 | 218,000,000 | 179,000,000 | |||
Expenses | ||||||
Expenses | 147,000,000 | 133,000,000 | 122,000,000 | |||
Cost Reimbursements | ||||||
Revenues | ||||||
Total revenues | 168,000,000 | 147,000,000 | 135,000,000 | |||
Expenses | ||||||
Expenses | 168,000,000 | 147,000,000 | 135,000,000 | |||
Cost of VOI Sales | ||||||
Expenses | ||||||
Expenses | 127,000,000 | 210,000,000 | 148,000,000 | |||
Sales and Marketing | ||||||
Expenses | ||||||
Expenses | 719,000,000 | 728,000,000 | 663,000,000 | |||
License Fee Expense | ||||||
Expenses | ||||||
Expenses | $ 101,000,000 | $ 98,000,000 | $ 87,000,000 | |||
[1] | The sum of the earnings per share for the four quarters may differ from annual earnings per share due to the required method of computing the weighted average shares in interim periods. | |||||
[2] | On December 22, 2017, the United States enacted tax reform legislation, the TCJ Act, resulting in significant modifications to existing law which resulted in a reduction in income tax expense for the year ended December 31, 2017. See Note 17: Income Taxes | |||||
[3] | Net income for years ended December 31, 2019, 2018, and 2017 was $215,695,961; $298,124,983 and $326,777,744, respectively. |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | |||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||||
Operating Activities | ||||||
Net income | [1] | $ 215,695,961 | [2] | $ 298,124,983 | [2] | $ 326,777,744 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||||||
Depreciation and amortization | 51,000,000 | 36,000,000 | 29,000,000 | |||
Amortization of deferred financing costs and other | 10,000,000 | 7,000,000 | 5,000,000 | |||
Provision for financing receivables losses | 74,000,000 | 69,000,000 | 58,000,000 | |||
Other loss, net | 3,000,000 | 1,000,000 | ||||
Share-based compensation | 22,000,000 | 16,000,000 | 15,000,000 | |||
Deferred income tax expense (benefit) | 3,000,000 | 20,000,000 | (129,000,000) | |||
Equity in earnings from unconsolidated affiliates | (4,000,000) | (1,000,000) | ||||
Distributions received from unconsolidated affiliates | 2,000,000 | |||||
Net changes in assets and liabilities: | ||||||
Accounts receivable, net | (20,000,000) | (41,000,000) | 12,000,000 | |||
Timeshare financing receivables, net | (111,000,000) | (118,000,000) | (103,000,000) | |||
Inventory | (4,000,000) | 16,000,000 | 47,000,000 | |||
Purchases and development of real estate for future conversion to inventory | (168,000,000) | (299,000,000) | ||||
Other assets | (16,000,000) | (31,000,000) | (4,000,000) | |||
Accounts payable, accrued expenses and other | (17,000,000) | (24,000,000) | 95,000,000 | |||
Advanced deposits | 14,000,000 | 14,000,000 | 1,000,000 | |||
Deferred revenues | 91,000,000 | (126,000,000) | 3,000,000 | |||
Other | 1,000,000 | 1,000,000 | 1,000,000 | |||
Net cash provided by (used in) operating activities | 145,000,000 | (159,000,000) | 356,000,000 | |||
Investing Activities | ||||||
Capital expenditures for property and equipment | (37,000,000) | (44,000,000) | (35,000,000) | |||
Software capitalization costs | (26,000,000) | (19,000,000) | (12,000,000) | |||
Return of investment from unconsolidated affiliates | 11,000,000 | |||||
Investments in unconsolidated affiliates | (2,000,000) | (10,000,000) | (40,000,000) | |||
Net cash used in investing activities | (65,000,000) | (62,000,000) | (87,000,000) | |||
Financing Activities | ||||||
Issuance of debt | 485,000,000 | 530,000,000 | ||||
Issuance of non-recourse debt | 365,000,000 | 663,000,000 | 350,000,000 | |||
Repayment of debt | (290,000,000) | (408,000,000) | (10,000,000) | |||
Repayment of non-recourse debt | (376,000,000) | (485,000,000) | (459,000,000) | |||
Debt issuance costs | (6,000,000) | (12,000,000) | (5,000,000) | |||
Repurchase and retirement of common stock | (283,000,000) | (183,000,000) | ||||
Payment of withholding taxes on vesting of restricted stock units | (4,000,000) | (4,000,000) | ||||
Proceeds from employee stock plan purchases | 3,000,000 | |||||
Capital contribution | 3,000,000 | |||||
Proceeds from stock option exercises | 1,000,000 | |||||
Other financing activity | (2,000,000) | |||||
Net cash (used in) provided by financing activities | (108,000,000) | 104,000,000 | (123,000,000) | |||
Net (decrease) increase in cash, cash equivalents and restricted cash | (28,000,000) | (117,000,000) | 146,000,000 | |||
Cash, cash equivalents and restricted cash, beginning of period | 180,000,000 | 297,000,000 | 151,000,000 | |||
Cash, cash equivalents and restricted cash, end of period | $ 152,000,000 | $ 180,000,000 | $ 297,000,000 | |||
[1] | Net income for years ended December 31, 2019, 2018, and 2017 was $215,695,961; $298,124,983 and $326,777,744, respectively. | |||||
[2] | The sum of the earnings per share for the four quarters may differ from annual earnings per share due to the required method of computing the weighted average shares in interim periods. |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity (Deficit) - USD ($) | Total | Common Stock | Additional Paid-in Capital | Accumulated Retained Earnings | ||
Beginning balance, value at Dec. 31, 2016 | $ 167,000,000 | $ 1,000,000 | $ 138,000,000 | $ 28,000,000 | ||
Beginning balance, shares at Dec. 31, 2016 | 99,000,000 | |||||
Net income | 326,777,744 | [1] | 327,000,000 | |||
Deferred intercompany transaction | [2] | 9,000,000 | 9,000,000 | |||
Activity related to share-based compensation | 12,000,000 | 12,000,000 | ||||
Other | [2] | 3,000,000 | 3,000,000 | |||
Ending balance, value at Dec. 31, 2017 | 518,000,000 | $ 1,000,000 | 162,000,000 | 355,000,000 | ||
Ending balance, shares at Dec. 31, 2017 | 99,000,000 | |||||
Net income | 298,124,983 | [1],[3] | 298,000,000 | |||
Activity related to share-based compensation | 13,000,000 | 13,000,000 | ||||
Repurchase and retirement of common stock | (183,000,000) | (7,000,000) | (176,000,000) | |||
Repurchase and retirement of common stock, shares | (5,000,000) | |||||
Revenue recognition cumulative-effect adjustment | (38,000,000) | (38,000,000) | ||||
Capital contribution from Parent | 3,000,000 | 3,000,000 | ||||
Other | 5,000,000 | 3,000,000 | 2,000,000 | |||
Ending balance, value at Dec. 31, 2018 | $ 616,000,000 | $ 1,000,000 | 174,000,000 | 441,000,000 | ||
Ending balance, shares at Dec. 31, 2018 | 94,558,086 | 94,000,000 | ||||
Net income | $ 215,695,961 | [1],[3] | 216,000,000 | |||
Activity related to share-based compensation | 22,000,000 | 22,000,000 | ||||
Repurchase and retirement of common stock | (283,000,000) | (17,000,000) | (266,000,000) | |||
Repurchase and retirement of common stock, shares | (9,000,000) | |||||
Other | (1,000,000) | (1,000,000) | ||||
Ending balance, value at Dec. 31, 2019 | $ 570,000,000 | $ 1,000,000 | $ 179,000,000 | $ 390,000,000 | ||
Ending balance, shares at Dec. 31, 2019 | 85,535,501 | 85,000,000 | ||||
[1] | Net income for years ended December 31, 2019, 2018, and 2017 was $215,695,961; $298,124,983 and $326,777,744, respectively. | |||||
[2] | Includes pre-spin tax adjustment. | |||||
[3] | The sum of the earnings per share for the four quarters may differ from annual earnings per share due to the required method of computing the weighted average shares in interim periods. |
Organization
Organization | 12 Months Ended |
Dec. 31, 2019 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Organization | Note 1: Organization Our Business Hilton Grand Vacations Inc. (“Hilton Grand Vacations,” “we,” “us,” “our,” “HGV” or the “Company”) is a global timeshare company engaged in developing, marketing, selling and managing timeshare resorts primarily under the Hilton Grand Vacations brand. Our operations primarily consist of: selling vacation ownership intervals (“VOIs”) for us and third parties; financing and servicing loans provided to consumers for their timeshare purchases; operating resorts; and managing our points-based Hilton Grand Vacations Club and Hilton Club exchange program (collectively the “Club”). As of December 31, 2019, we had 59 properties, comprised of 9,540 units, located in the United States (“U.S.”), Japan, the United Kingdom, Italy and Barbados. |
Basis of Presentation and Summa
Basis of Presentation and Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Summary of Significant Accounting Policies | Note 2: Basis of Presentation and Summary of Significant Accounting Policies Basis of Presentation The consolidated financial statements presented herein include 100 percent of our assets, liabilities, revenues, expenses and cash flows as well as all entities in which we have a controlling financial interest. Our accompanying consolidated financial statements reflect all adjustments, including normal recurring items, considered necessary for a fair presentation of the interim periods. All material intercompany transactions and balances have been eliminated in consolidation. The consolidated financial statements reflect our financial position, results of operations and cash flows as prepared in conformity with U.S. generally accepted accounting principles (“U.S. GAAP”). Certain information and footnote disclosures normally included in financial statements presented in accordance with U.S. GAAP have been omitted in accordance with the rules and regulations of the Securities and Exchange Commission (“SEC”). The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported and, accordingly, ultimate results could differ from those estimates. Interim results are not necessarily indicative of full year performance. The determination of a controlling financial interest is based upon the terms of the governing agreements of the respective entities, including the evaluation of rights held by other interests. If the entity is considered to be a variable interest entity (“VIE”), we determine whether we are the primary beneficiary, and then consolidate those VIEs for which we have determined we are the primary beneficiary. If the entity in which we hold an interest does not meet the definition of a VIE, we evaluate whether we have a controlling financial interest through our voting interests in the entity. We consolidate entities when we own more than 50 percent of the voting shares of a company or otherwise have a controlling financial interest. All material intercompany transactions and balances have been eliminated in consolidation. The consolidated financial statements reflect our financial position, results of operations and cash flows as prepared in conformity with U.S. generally accepted accounting principles (“GAAP”). Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported and, accordingly, ultimate results could differ from those estimates. Summary of Significant Accounting Policies Revenue Recognition On January 1, 2018, we adopted Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers The reported results as of and for the years ended December 31, 2019 and 2018 reflects the application of ASC 606 while the reported financial position as of December 31, 2017 and results for years ended December 31, 2017 were prepared under the guidance of ASC 605, Revenue Recognition Real Estate – Time-Sharing Activities, Revenue Recognition In accordance with ASC 606, revenue is recognized upon the transfer of control of promised goods or services to customers in an amount that reflects the consideration we expect to receive in exchange for those products or services. To achieve the core principle of the new guidance, we take the following steps: (i) identify the contract with the customer; (ii) determine whether the promised goods or services are separate performance obligations in the contract; (iii) determine the transaction price, including considering the constraint on variable consideration; (iv) allocate the transaction price to the performance obligations in the contract based on the standalone selling price or estimated standalone selling price of the good or service; and (v) recognize revenue when (or as) we satisfy each performance obligation. Contracts with Multiple Performance Obligations A performance obligation is a promise in a contract to transfer a distinct good or service to the customer and is the unit of account in ASC 606. For arrangements that contain multiple goods or services, we determine whether such goods or services are distinct performance obligations that should be accounted for separately in the arrangement. When allocating the transaction price in the arrangement, we may not have observable standalone sales for all of the performance obligations in these contracts; therefore, we exercise significant judgement when determining the standalone selling price of certain performance obligations. In order to estimate the standalone selling prices, we primarily rely on the expected cost plus margin and adjusted market assessment approaches. We then recognize the revenue allocated to each performance obligation as the related performance obligation is satisfied as discussed below. • Sales of VOIs, net — Customers who purchase vacation ownership products, whether paid in cash or financed, enter into multiple contracts, which we combine and account for as a single contract. Revenue from VOI sales is recognized at the point in time when control of the VOI is transferred to the customer which is when the customer has executed a binding sales contract, collectability is reasonably assured, the purchaser’s period to cancel for a refund has expired and the customer has the right to use the VOI. Revenue from sales of VOIs under construction is deferred until the point in time when construction activities are deemed to be completed, occupancy of the development is permissible, and the above criteria has been met. For financed sales, we estimate the variable consideration to be received under such contracts and recognize revenue net of amounts deemed uncollectible as the VOI is returned to inventory upon customer default. Variable consideration which has not been included within the transaction price is presented as a reserve on the financing receivable. See Timeshare Financing Receivables for more information regarding our estimate of variable consideration. We award Club Bonus Points (“Bonus Points”) to our customers. These points are valid for a maximum of two years and may be used toward reservations at Club resorts, hotel reservations within Hilton’s system and VOI interval exchanges with other third-party vacation ownership exchanges. At the time of the VOI sale, we estimate the fair value of the incentives to be redeemed, including an adjustment for breakage, to determine the standalone selling price of the first day incentive (“FDI”). We defer a portion of the total transaction price for the combined VOI contract as a liability for the FDI and recognize the corresponding revenue at the point in time when the customer receives the benefits of the FDI, which is upon the customer’s redemption of the Bonus Points. At that time, we also determine whether we are principal or agent for the redeemed good or service and recognize revenue on a gross or net basis accordingly. • Sales, marketing, brand and other fees — We enter into contracts with third-party developers to sell VOIs on their behalf through fee-for-service agreements for which we earn sales commissions and other fees. These commissions are variable as they are based on the sales and marketing results, which are subject to the constraint on variable consideration and resolved on a monthly basis over the contract term. We estimate such commissions to the extent that it is probable that a significant reversal of such revenue will not occur and recognize the commissions as the developer receives and consumes the benefits of the services. Any changes in these estimates would affect revenue and earnings in the period such variances are realized. Additionally, we enter into contracts to sell prepaid vacation packages. Our obligation in such contracts is satisfied when customers stay at our property; therefore, we recognize revenue for these packages when they are redeemed. On a portfolio basis, we exercise judgement to estimate the amount of expected breakage related to unused prepaid vacation packages and recognize such breakage in proportion to the pattern of packages utilized by our portfolio of customers. • Financing — We offer financing to qualifying customers purchasing our VOI. Revenue from the financing of timeshare sales is recognized on the accrual method as earned based on the outstanding principal, interest rate and terms stated in each individual financing agreement. We also recognize revenue from servicing the loans provided by third-party developers to purchasers of their VOIs over the period services are rendered. • Resort and club management — As part of our VOI sales, our customers enter into a Club arrangement which gives the customer an annual allotment of Club points that allow the customer to exchange the Club points for a number of vacation options. We manage the Club, receiving Club activation fees, annual dues and transaction fees from member exchanges. Club activation fees and the member's first year of annual dues are payable at the time of the VOI sale. The Club activation fee relates to activities we are required to undertake at or near contract inception to fulfill the contract, and does not result in the transfer of a promised good or service. Since our customers are granted the opportunity to renew their membership on an annual basis for no additional activation fee, we defer and amortize the activation fee on a straight-line basis over the seven year average inventory holding period. Annual dues for membership renewals are billed each year, and we recognize revenue from these annual dues over the period services are rendered. A member may elect to enter into an optional exchange transaction with their allotted Club points at which point the member pays their required transaction fee. This option does not represent a material right as the transactions are priced at their standalone selling price. Revenue related to the transaction is recognized when the services are rendered. As part of our resort operations, we contract with homeowner’s associations (“HOAs”) to provide day-to-day-management services, including housekeeping services, operation of a reservation system, maintenance, and certain accounting and administrative services. We receive compensation for such management services, which is generally based on a percentage of costs to operate the resorts, on a monthly basis. These fees represent a form of variable consideration and are estimated and recognized over time as the HOAs receive and consume the benefits of the management services. Management fees received related to the portion of unsold VOIs at each resort which we own are recognized on a net basis given we retain these VOIs in our inventory. • Rental and ancillary services — Our rental and ancillary services consist primarily of rental revenues on unoccupied vacation ownership units, inventory made available due to ownership exchanges through our club program and ancillary revenues. Rental revenue is recognized when occupancy has occurred. Advance deposits on the rental unit and the corresponding revenue is deferred and recognized upon the customer’s vacation stay. Ancillary revenues consist of food and beverage, retail, spa offerings and other guest services. We recognize ancillary revenue when goods have been provided and/or services have been rendered. We account for rental operations of unsold VOIs, including accommodations provided through the use of our vacation sampler programs, as incidental operations. Incremental carrying costs in excess of incremental revenues are recognized in the period incurred. In all periods presented, incremental carrying costs exceeded incremental revenues and all revenues and expenses are recognized in the period earned or incurred. • Cost reimbursements — As part of our management agreements with HOAs and fee-for-service developers, we receive cost reimbursements for performing the day to day management services, including direct and indirect costs that HOAs and developers reimburse to us. These costs primarily consist of payroll and payroll related costs for management of the HOAs and other services we provide where we are the employer. Cost reimbursements are based upon actual expenses with no added margin, and are billed to the HOA on a monthly basis. We recognize cost reimbursements when we incur the related reimbursable costs as the HOA receives and consumes the benefits of the management services. We capitalize all incremental costs incurred to obtain a contract when such costs would not have been incurred if the contract had not been obtained. We elect to expense costs incurred to obtain a contract when the deferral period would be one year or less. Commissions for VOI sales for resorts under construction are expensed when the associated VOI revenue is recognized which is upon completion of the resort. These commissions are classified as Sales and marketing expense As of December 31, 2019, the ending asset balance for costs to obtain a contract was $15 million relating to deferred commission costs for certain vacation package sales and VOI sales of resorts under construction. For the year ended December 31, 2019, we recognized Other than the United States, there were no countries that individually represented more than 10 percent of total revenues for the years ended December 31, 2019, 2018 and 2017. We earn commission and other fees related to fee-for-service agreements to sell VOIs. For the years ended December 31, 2019 and 2018, we did not earn more than 10 percent of our total revenue from one customer. For the year ended December 31, 2017, approximately 15 percent of our total revenue was earned from one customer. We are required to collect certain taxes and fees from customers on behalf of government agencies and remit these back to the applicable governmental agencies on a periodic basis. We have a legal obligation to act as a collection agent with respect to these taxes and fees. We do not retain these taxes and fees and, therefore, they are not included in revenues. We record a liability when the amounts are collected and relieve the liability when payments are made to the applicable taxing authority or other appropriate governmental agency. Investments in Unconsolidated Affiliates We account for investments in unconsolidated affiliates under the equity method of accounting when we exercise significant influence, but do not maintain a controlling financial interest over the affiliates. We evaluate our investments in affiliates for impairment when there are indicators that the fair value of our investment may be less than our carrying value. Cash and Cash Equivalents Cash and cash equivalents include all highly liquid investments with original maturities of three months or less. Restricted Cash Restricted cash includes deposits received on VOI sales that are held in escrow until legal requirements of the local jurisdictions are met with regards to project construction or contract status and cash reserves required by our non-recourse debt agreements. Accounts Receivable and Allowance for Doubtful Accounts Accounts receivable primarily consists of trade receivables and is reported at the customers’ outstanding balances, less any allowance for doubtful accounts. An allowance for doubtful accounts is provided on accounts receivable when losses are probable based on historical collection activity and current business conditions. Timeshare Financing Receivables and Allowance for Financing Receivables Losses Our timeshare financing receivables consist of loans related to our financing of VOI sales that are secured by the underlying timeshare properties. We determine our timeshare financing receivables to be past due based on the contractual terms of the individual mortgage loans. We recognize interest income on our timeshare financing receivables as earned. The interest rate charged on the notes correlates to the risk profile of the borrower at the time of purchase and the percentage of the purchase that is financed, among other factors. We record an estimate of variable consideration as a reduction of revenue from VOI sales at the time revenue is recognized on a VOI sale. We evaluate this portfolio collectively, since we hold a large group of homogeneous timeshare financing receivables, which are individually immaterial. We monitor the credit quality of our receivables on an ongoing basis. There are no significant concentrations of collection risk with any individual counterparty or groups of counterparties. We use a technique referred to as static pool analysis as the basis for determining our financing receivables losses reserve requirements on our timeshare financing receivables. The static pool analysis includes several years of default data through which we stratify our portfolio using certain key dimensions including: FICO scores and equity percentage at the time of sale. The adequacy of the related allowance is determined by management through analysis of several factors, such as current economic conditions and industry trends, as well as the specific risk characteristics of the portfolio including assumed default rates, aging and historical write-offs of these receivables. The allowance is maintained at a level deemed adequate by management based on a periodic analysis of the mortgage portfolio. We apply payments we receive for loans, including those in non-accrual status, to amounts due in the following order: servicing fees; interest; principal; and late charges. Once a note is 91 days past due we cease accruing interest and reverse the accrued interest recognized up to that point. We resume interest accrual for loans for which we had previously ceased accruing interest once the loan is less than 91 days past due. We fully reserve for a timeshare financing receivable in the month following the date that the loan is 121 days past due and, subsequently, we write off the uncollectible note against the reserve once the foreclosure process is complete and we receive the deed for the foreclosed unit. Inventory and Cost of Sales Inventory includes unsold, completed VOIs; VOIs under construction; and land and infrastructure held for future VOI product development at our current resorts. We carry our completed VOI inventory at the lower of cost or estimated fair value, less costs to sell, which can result in impairment losses and/or recoveries of previous impairments. Projects under development, along with land and infrastructure for future development are under a held and use impairment model and are reviewed for indicators of impairment quarterly. We capitalize costs directly associated with the acquisition, development and construction of a real estate project when it is probable that the project will move forward. We capitalize salary and related costs only to the extent they directly relate to the project. We capitalize interest expense, taxes and insurance costs when activities that are necessary to get the property ready for its intended use are underway. We cease capitalization of costs during prolonged gaps in development when substantially all activities are suspended or when projects are considered substantially complete. We account for our VOI inventory and cost of VOI sales using the relative sales value method. Also, we do not reduce inventory for the cost of VOI sales related to anticipated defaults, and accordingly, no adjustment is made when inventory is reacquired upon default of the related receivable. This results in changes in estimates within the relative sales value calculations to be accounted for as real estate inventory true-ups, which we refer to as cost of sales true-ups, and are included in Cost of VOI sales Property and Equipment Property and equipment includes land, buildings and leasehold improvements and furniture and equipment at our corporate offices, sales centers and management offices which are recorded at cost. Additionally, certain property and equipment is held for future conversion into inventory. Construction in progress primarily relates to development activities. Costs that are capitalized related to development activities are classified as property and equipment until they are registered for sale. Costs of improvements that extend the economic life or improve service potential are also capitalized. Capitalized costs are depreciated over their estimated useful lives. Costs for normal repairs and maintenance are expensed as incurred. Other than the United States, there were no countries that individually represented over 10 percent of total property and equipment, net as of December 31, 2019 and 2018. Depreciation is recorded using the straight-line method over the assets’ estimated useful lives, which are generally as follows: buildings and improvements (eight to 40 years); furniture and equipment (three to eight years); and computer equipment and acquired software (three years). Leasehold improvements are depreciated over the shorter of the estimated useful life, based on the estimates above, or the lease term. We evaluate the carrying value of our property and equipment if there are indicators of potential impairment. We perform an analysis to determine the recoverability of the asset’s carrying value by comparing the expected undiscounted future cash flows to the net book value of the asset. If it is determined that the expected undiscounted future cash flows are less than the net book value of the asset, to the extent the net book value is in excess of fair value we recognize an impairment loss. Fair value is generally estimated using valuation techniques that consider the discounted cash flows of the asset using discount and capitalization rates deemed reasonable for the type of asset, as well as prevailing market conditions, appraisals, recent similar transactions in the market and, if appropriate and available, current estimated net sales proceeds from pending offers. If sufficient information exists to reasonably estimate the fair value of a conditional asset retirement obligation, including environmental remediation liabilities, we recognize the fair value of the obligation when the obligation is incurred. Leases We lease sales centers, office space and equipment under lease agreements. We determine if an arrangement is a lease at inception. Amounts related to operating leases are included in Operating lease right-of-use (“ROU”) assets, net Operating lease liabilities ROU assets and operating lease liabilities are recognized based on the present value of lease payments over the lease term as of the commencement date. Because most of our leases do not provide an explicit or implicit rate of return, we use our incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments on an individual lease basis. Our incremental borrowing rate for a lease is the rate of interest we would have to pay on a collateralized basis to borrow an amount equal to the lease payments for the asset under similar terms. We have lease agreements with lease and non-lease components. Our operating leases may require minimum rent payments, contingent rent payments based on a percentage of revenue or income or rental payments adjusted periodically for inflation or rent payments equal to the greater of a minimum rent or contingent rent. Our leases do not contain any residual value guarantees or material restrictive covenants. Leases with a lease term of 12 months or less are not recorded on the consolidated balance sheets and lease expense is recognized on a straight-line basis over the lease term. We monitor events or changes in circumstances that change the timing or amount of future lease payments which results in the remeasurement of a lease liability, with a corresponding adjustment to the ROU asset. ROU assets for operating and financing leases are periodically reviewed for impairment losses under ASC 360-10, Property, Plant, and Equipment Intangible Assets Our intangible assets consist of management agreements and certain proprietary technologies with finite lives. We have management agreements that were recorded at their fair value at the time of the completion of a merger on October 24, 2007 where Hilton became a wholly-owned subsidiary of an affiliate of The Blackstone Group L.P. (“Blackstone”). Additionally, we capitalize costs incurred to develop internal-use computer software, including costs incurred in connection with development of upgrades or enhancements that result in additional functionality. These capitalized costs are included in Intangible assets, net We review all finite life intangible assets for impairment when circumstances indicate that their carrying amounts may not be recoverable. If the carrying value of an asset group is not recoverable, we recognize an impairment loss for the excess of carrying value over the fair value in our consolidated statements of operations. Deferred Financing Costs Deferred financing costs, including legal fees and upfront lenders fees, related to the Company’s debt and non-recourse debt are deferred and amortized over the life of the respective debt using the effective interest method. These capitalized costs are included in Other assets Debt, net Debt & Non-recourse debt Costs Incurred to Sell VOIs and Vacation Packages We expense indirect sales and marketing costs we incur to sell VOIs and vacation packageswhen incurred. Deferred selling expenses, which are direct selling costs related either to a contract for which revenue has not yet been recognized, were $19 million and $4 million as of December 31, 2019 and 2018, respectively, and were included in Other assets Fair Value Measurements—Valuation Hierarchy Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants on the measurement date (an exit price). We use the three-level valuation hierarchy for classification of fair value measurements. The valuation hierarchy is based upon the transparency of inputs to the valuation of an asset or liability as of the measurement date. Inputs refer broadly to the assumptions that market participants would use in pricing an asset or liability. Inputs may be observable or unobservable. Observable inputs are inputs that reflect the assumptions market participants would use in pricing the asset or liability developed based on market data obtained from independent sources. Unobservable inputs are inputs that reflect our own assumptions about the data market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. The three-level hierarchy of inputs is summarized below: • Level 1—Valuation is based upon quoted prices (unadjusted) for identical assets or liabilities in active markets; • Level 2—Valuation is based upon quoted prices for similar assets and liabilities in active markets, or other inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the instrument; and • Level 3—Valuation is based upon unobservable inputs that are significant to the fair value measurement. The classification of assets and liabilities within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement in its entirety. Currency Translation and Remeasurement The United States dollar (“USD”) is our reporting currency and is the functional currency of the majority of our operations. For operations whose functional currency is not the USD, assets and liabilities measured in foreign currencies are translated into USD at the prevailing exchange rates in effect as of the financial statement date and the related gains and losses are reflected with Total Equity Other loss, net Share-Based Compensation Costs Certain of our employees participate in our 2017 Omnibus Incentive Plan (the “Stock Plan”) which compensates eligible employees and directors with restricted stock units (“RSUs”), time and performance-vesting restricted stock units (“PSUs”) and nonqualified stock options (“options”). We record compensation expense based on the share-based awards granted to our employees. Share-based compensation awards issued prior to the spin-off have been converted to reflect the separation from Hilton. Upon the separation on January 3, 2017, holders of Hilton share-based awards received an adjusted award based on our shares. The adjustments were designed to generally preserve the fair value of each award before and after the separation. • RSUs vest in annual installments over three years from the date of grant, subject to the individual’s continued employment through the applicable vesting date. Vested RSUs generally will be settled for Hilton Grand Vacation’s common stock. The grant date fair value is equal to Hilton Grand Vacation’s closing stock price on the date of grant. • PSUs are settled at the end of a three-year • Options vest over three years in annual installments from the date of grant, subject to the individual’s continued employment through the applicable vesting date and will terminate 10 years from the date of grant or earlier on the unvested portion of an individual whose service was terminated. The exercise price is equal to the closing price of the Hilton Grand Vacation’s common stock on the date of grant. The grant date fair value is estimated using the Black-Scholes-Merton Model. We recognize the cost of services received in share-based payment transactions with employees as services are received and recognize a corresponding change in Total Equity Income Taxes We account for income taxes using the asset and liability method. The objectives of accounting for income taxes are to recognize the amount of taxes payable or refundable for the current year, to recognize the deferred tax assets and liabilities that relate to tax consequences in future years, which result from differences between the respective tax basis of assets and liabilities and their financial reporting amounts, and tax loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates in effect for the year in which the respective temporary differences or operating loss or tax credit carryforwards are expected to be recovered or settled. The realization of deferred tax assets and tax loss and tax credit carryforwards is contingent upon the generation of future taxable income and other restrictions that may exist under the tax laws of the jurisdiction in which a deferred tax asset exists. Valuation allowances are provided to reduce such deferred tax assets to amounts more likely than not to be ultimately realized. We use a prescribed recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken in a tax return. For all income tax positions, we first determine whether it is “more-likely-than-not” that a tax position will be sustained upon examination, including resolution of any related appeals or litigation processes, based on the technical merits of the position. If it is determined that a position meets the more-likely-than-not recognition threshold, the benefit recognized in the financial statements is measured as the largest amount of benefit that is greater than 50 percent likely of being realized upon settlement. Earnings Per Share Basic earnings per share (“EPS”) is calculated by dividing the earnings available to common shareholders by the weighted average number of common shares outstanding for the period. Diluted earnings per common share is calculated to give effect to all potentially dilutive common shares that were outstanding during the reporting period. Defined Contribution Plan We administer and maintain a defined contribution plan for the benefit of all employees meeting certain eligibility requirements who elect to participate in the plan. Contributions are determined based on a specified percentage of salary deferrals by participating employees. We recognized compensation expense for our participating employees totaling $13 million and $10 million for the year ended December 31, 2019 and 2018, respectively. Prior to the year ended December 31, 2018, Hilton administrated the plan on our behalf. Reclassifications Certain prior period amounts in the consolidated financial statements have been reclassified to conform to the current period presentation with no effect on previously reported total assets and total lia |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 12 Months Ended |
Dec. 31, 2019 | |
Revenue From Contract With Customer [Abstract] | |
Revenue from Contracts with Customers | Note 3: Revenue from Contracts with Customers Disaggregation of Revenue The following tables show our disaggregated revenues by segment from contracts with customers. We operate our business in the following two segments: (i) Real estate sales and financing Resort operations and club management Business Segments Year Ended December 31, ($ in millions) 2019 2018 2017 Real Estate and Financing Segment Sales of VOIs, net $ 509 $ 734 $ 548 Sales, marketing, brand and other fees 573 570 544 Interest income 147 140 132 Other financing revenue 23 18 15 Real estate and financing segment revenues $ 1,252 $ 1,462 $ 1,239 Year Ended December 31, ($ in millions) 2019 2018 2017 Resort Operations and Club Management Segment Club management $ 125 $ 112 $ 99 Resort management 66 60 59 Rental 201 191 156 Ancillary services 26 27 23 Resort operations and club management segment revenues $ 418 $ 390 $ 337 Contract Balances The following table provides information on our accounts receivable with customers which are included in Accounts Receivable, net December 31, ($ in millions) 2019 2018 Receivables $ 129 $ 122 The following table presents changes in our contract liabilities for the year ended December 31, 2019. December 31 ($ in millions) 2019 2018 Contract liabilities: Advanced deposits $ 115 $ 101 Deferred Sales of VOIs of projects under construction 84 — Club activation fees, annual dues and other 86 72 Club Bonus Point incentive liability (1) 59 56 ( 1 ) Amounts related to the Club Bonus Point incentive liability are included in Accounts payable, accrued expenses and other Revenue earned for the year ended December 31, 2019 that was included in the contract liabilities balance at December 31, 2018 was approximately $121 million. Revenue earned for the year ended December 31, 2018 that was included in the contract liabilities balance at December 31, 2017 was approximately $214 million. Our accounts receivables that relate to our contracts with customers includes amounts associated with our contractual right to consideration for completed performance obligations related primarily to our fee-for-service arrangements and homeowners’ associations (“HOA”) management agreements and are settled when the related cash is received. Accounts receivable are recorded when the right to consideration becomes unconditional and is only contingent on the passage of time. Refer to Note 5: Timeshare Financing Receivables for information on balances and changes in balances during the period related to our timeshare financing receivables. Contract assets relate to incentive fees that can be earned for meeting certain target on sales of VOIs at properties under our fee-for-service arrangements; however, our right to consideration is conditional upon completing the requirements of the annual incentive fee period. There were no contract assets as of December 31, 2019. Contract liabilities include payments received or due in advance of satisfying our performance obligations, offset by revenues recognized. Such contract liabilities include advance deposits received on prepaid vacation packages for future stays at our resorts, deferred revenues and the liability for Club Bonus Points awarded to our customers for purchase of VOIs at our properties or properties under our fee-for-service arrangements that may be redeemed in the future. Transaction Price Allocated to Remaining Performance Obligations Transaction price allocated to remaining performance obligations represents contract revenue that has not yet been recognized. Our contracts with remaining performance obligations primarily include (i) sales of VOIs under construction, (ii) Club activation fees paid at closing of a VOI purchase, (iii) customers’ advanced deposits on prepaid vacation packages and (iv) Club Bonus Points that may be redeemed in the future. As of December 31, 2019, we deferred $84 million of revenue and $27 million of direct selling costs from sales of VOIs under construction that will be acquired under a just-in-time arrangement once construction is complete. We expect to recognize the revenue and direct selling costs late in 2020. Upon acquisition, we expect to recognize $12 million in costs of VOI sales related to these sales. As of December 31, 2018, we had no remaining performance obligations on sales of VOIs under construction. The following table includes the remaining transaction price related to Advanced deposits, Club activation fees and Club Bonus Points as of December 31, 2019: ($ in millions) Remaining Transaction Price Recognition Period Recognition Method Advanced deposits $ 115 18 months Upon customer stays Club activation fees 71 7 years Straight-line basis over average inventory holding period Club Bonus Points 59 24 months Upon redemption |
Restricted Cash
Restricted Cash | 12 Months Ended |
Dec. 31, 2019 | |
Cash And Cash Equivalents [Abstract] | |
Restricted Cash | Note 4: Restricted Cash Restricted cash was as follows: December 31, ($ in millions) 2019 2018 Escrow deposits on VOI sales $ 59 $ 45 Reserves related to non-recourse debt 26 27 $ 85 $ 72 |
Timeshare Financing Receivables
Timeshare Financing Receivables | 12 Months Ended |
Dec. 31, 2019 | |
Receivables [Abstract] | |
Timeshare Financing Receivables | Note 5: Timeshare Financing Receivables Timeshare financing receivables were as follows: December 31, 2019 ($ in millions) Securitized and Pledged Unsecuritized (1) Total Timeshare financing receivables $ 758 $ 582 $ 1,340 Less: allowance for financing receivables losses (54 ) (130 ) (184 ) $ 704 $ 452 $ 1,156 December 31, 2018 ($ in millions) Securitized and Pledged Unsecuritized (1) Total Timeshare financing receivables $ 660 $ 632 $ 1,292 Less: allowance for financing receivables losses (43 ) (129 ) (172 ) $ 617 $ 503 $ 1,120 (1) We record an estimate of variable consideration for estimated defaults as a reduction of revenue from VOI sales at the time revenue is recognized on a VOI sale. As of December 31, 2019, we had no timeshare receivables pledged to the Timeshare Facility. In August 2019, we completed a securitization of $308 million of gross timeshare financing receivables, which included a $21 million cash deposit that was subsequently released upon pledging of qualified collateral, and issued approximately $216 million of 2.34 percent notes, $50 million of 2.54 percent notes and $34 million of 2.84 percent notes, which have a stated maturity date of July 25, 2033. The securitization transaction did not qualify as a sale and, accordingly, no gain or loss was recognized. The transaction is considered a secured borrowing; therefore, the proceeds from the transaction are presented as non-recourse debt (collectively, the “Securitized Debt”). The proceeds were primarily used to pay down the remaining borrowings on our Timeshare Facility and our Securitized Debt with a rate of 2.280%, due 2026 and general corporate operating expenses. See Note 14: Debt and Non-recourse Debt Our timeshare financing receivables as of December 31, 2019 mature as follows: ($ in millions) Securitized and Pledged Unsecuritized Total Year 2020 $ 95 $ 55 $ 150 2021 96 47 143 2022 97 51 148 2023 97 55 152 2024 97 58 155 Thereafter 276 316 592 758 582 1,340 Less: allowance for financing receivables losses (54 ) (130 ) (184 ) $ 704 $ 452 $ 1,156 We evaluate this portfolio collectively for purposes of estimating variable consideration, since we hold a large group of homogeneous timeshare financing receivables which are individually immaterial. We monitor the collectability of our receivables on an ongoing basis. There are no significant concentrations of collection risk with any individual counterparty or groups of counterparties. We use a technique referred to as static pool analysis as the basis for determining our allowance for financing receivables loss es on our timeshare financing receivables. For static pool analysis, we use certain key dimensions to stratify our portfolio, including FICO scores, equity percentage at the time of sale and certain other factors. The adequacy of the related allowance is determined by management through analysis of several factors, such as current economic conditions and industry trends, as well as the specific risk characteristics of the portfolio including assumed default rates, aging and historical write-offs of these receivables. The allowance is maintained at a level deemed adequate by management based on a periodic analysis of the mortgage portfolio . We recognize interest income on our timeshare financing receivables as earned. The interest rate charged on the notes correlates to the risk profile of the borrower at the time of purchase and the percentage of the purchase that is financed, among other factors. As of December 31, 2019, our timeshare financing receivables had interest rates ranging from 3.9 percent to 20.5 percent, a weighted-average interest rate of 12.49 percent, a weighted average remaining term of 7.9 years and maturities through 2034. Our gross timeshare financing receivables balances by average FICO score were as follows: December 31, ($ in millions) 2019 2018 FICO score 700+ $ 818 $ 790 600-699 292 280 <600 39 37 No score (1) 191 185 $ 1,340 $ 1,292 (1) Timeshare financing receivables without a FICO score are primarily related to foreign borrowers. We apply payments we receive for loans, including those in non-accrual status, to amounts due in the following order: servicing fees; interest; principal; and late charges. Once a loan is 91 days past due, we cease accruing interest and reverse the accrued interest recognized up to that point. We resume interest accrual for loans for which we had previously ceased accruing interest once the loan is less than 91 days past due. We fully reserve for a timeshare financing receivable in the month following the date that the loan is 121 days past due and, subsequently, we write off the uncollectible note against the reserve once the foreclosure process is complete and we receive the deed for the foreclosed unit. As of December 31, 2019 and 2018, we had ceased accruing interest on timeshare financing receivables with an aggregate principal balance of $74 million and $69 million, respectively. The following tables detail an aged analysis of our gross timeshare financing receivables balance: December 31, 2019 ($ in millions) Securitized and Pledged Unsecuritized Total Current $ 743 $ 502 $ 1,245 31 - 90 days past due 9 12 21 91 - 120 days past due 3 4 7 121 days and greater past due 3 64 67 $ 758 $ 582 $ 1,340 December 31, 2018 ($ in millions) Securitized and Pledged Unsecuritized Total Current $ 648 $ 556 $ 1,204 31 - 90 days past due 8 11 19 91 - 120 days past due 3 3 6 121 days and greater past due 1 62 63 $ 660 $ 632 $ 1,292 The changes in our allowance for financing receivables losses were as follows: ($ in millions) Securitized and Pledged Unsecuritized Total December 31, 2016 $ 9 $ 111 $ 120 Write-offs — (37 ) (37 ) Securitizations 28 (28 ) — Provision for financing receivables losses (1) (10 ) 68 58 December 31, 2017 27 114 141 Write-offs — (38 ) (38 ) Securitizations 28 (28 ) — Provision for financing receivables losses (1) (12 ) 81 69 December 31, 2018 43 129 172 Write-offs — (62 ) (62 ) Securitizations 27 (27 ) — Provision for financing receivables losses (1) (16 ) 90 74 December 31, 2019 $ 54 $ 130 $ 184 (1) Includes incremental provision for financing receivables losses, net of activity related to the repurchase of defaulted and upgraded securitized timeshare financing receivables. |
Inventory
Inventory | 12 Months Ended |
Dec. 31, 2019 | |
Inventory Disclosure [Abstract] | |
Inventory | Note 6: Inventory Our Inventory was comprised of the following: December 31, ($ in millions) 2019 2018 Completed unsold VOIs $ 241 $ 243 Construction in process 59 9 Land, infrastructure and other 258 275 $ 558 $ 527 For non-cash transfers see Note 23: Supplemental Disclosure of Cash Flow Information Shown below are (i) costs of sales true-ups relating to VOI products and the related impacts to the carrying value of inventory and (ii) expenses incurred, recorded in Cost of VOI sales, related to granting credit to customers for their existing ownership when upgrading into fee-for-service projects. December 31, ($ in millions) 2019 2018 2017 Cost of sales true-ups (1) $ 14 $ 10 $ 4 Cost of VOI sales related to fee-for-service upgrades 31 34 36 (1) Cost of sales true ups reduced costs of VOI sales and increased inventory in all periods presented. |
Property and Equipment
Property and Equipment | 12 Months Ended |
Dec. 31, 2019 | |
Property Plant And Equipment [Abstract] | |
Property and Equipment | Note 7: Property and Equipment Property and equipment were as follows: December 31, ($ in millions) 2019 2018 Land $ 154 $ 268 Buildings and leasehold improvements 286 295 Furniture and equipment 65 54 Construction in progress 383 25 888 642 Accumulated depreciation (110 ) (83 ) $ 778 $ 559 For the year ended December 31, 2019, we completed the purchase of 87 hotel units for future conversion to 74 timeshare units in Los Cabos Mexico for $37 million. For non-cash transfers see Note 23: Supplemental Disclosure of Cash Flow Information Depreciation expense on property and equipment was $35 million, $23 million, and $17 million for the years ended December 31, 2019, 2018 and 2017 respectively. |
Consolidated Variable Interest
Consolidated Variable Interest Entities | 12 Months Ended |
Dec. 31, 2019 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Consolidated Variable Interest Entities | Note 8: Consolidated Variable Interest Entities As of December 31, 2019 and 2018, we consolidated 4 variable interest entities (“VIEs”) that issued Securitized Debt, secured by pledged assets primarily consisting of a pool of timeshare financing receivables, which is without recourse to us. We are the primary beneficiaries of these VIEs as we have the power to direct the activities that most significantly affect their economic performance. We are also the servicer of these timeshare financing receivables and we are required to replace or repurchase timeshare financing receivables that are in default at their outstanding principal amounts. Additionally, we have the obligation to absorb their losses and the right to receive benefits that could be significant to them. Only the assets of the VIEs are available to settle the obligations of the respective entities. Our consolidated balance sheets included the assets and liabilities of these entities, which primarily consisted of the following: December 31, ($ in millions) 2019 2018 Restricted cash $ 26 $ 23 Timeshare financing receivables, net 704 617 Non-recourse debt (1) 747 639 (1) Net of deferred financing costs. During the years ended December 31, 2019, 2018 and 2017, we did not provide any financial or other support to any VIEs that we were not previously contractually required to provide, nor do we intend to provide such support in the future. |
Investments in Unconsolidated A
Investments in Unconsolidated Affiliates | 12 Months Ended |
Dec. 31, 2019 | |
Equity Method Investments And Joint Ventures [Abstract] | |
Investments in Unconsolidated Affiliates | Note As of December 31, 2019, we have 25 percent and 50 percent ownership interests in BRE Ace LLC and 1776 Holdings LLC, respectively, that are deemed as VIEs. We do not consolidate BRE Ace LLC and 1776 Holdings LLC because we are not the primary beneficiary. Our investment interests in and equity earned from both VIEs are included in the consolidated balance sheets as Investments in unconsolidated affiliates and in the consolidated statements of operations as Equity in earnings from unconsolidated affiliates, respectively. We held investments in our two unconsolidated affiliates with aggregated debt balances of $479 million and $490 million as of December 31, 2019 and 2018, respectively. The debt is secured by their assets and is without recourse to us. Our maximum exposure to loss as a result of our investment interests in the two unconsolidated affiliates is primarily limited to (i) the carrying amount of the investments which totals $44 million and $38 million as of December 31, 2019 and December 31, 2018, respectively and (ii) receivables for commission and other fees earned under fee-for-service arrangements. See Note 20: Related Party Transactions |
Intangible Assets
Intangible Assets | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Intangible Assets | Note 10: Intangible Assets Intangible assets and related amortization expense were as follows: December 31, 2019 ($ in millions) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Management agreements $ 88 $ (46 ) $ 42 Capitalized software 95 (48 ) 47 $ 183 $ (94 ) $ 89 December 31, 2018 ($ in millions) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Management agreements $ 88 $ (41 ) $ 47 Capitalized software 71 (37 ) 34 $ 159 $ (78 ) $ 81 Amortization expense on intangible assets was $16 million, $13 million, and $12 million for the years ended December 31, 2019, 2018 and 2017, respectively. As of December 31, 2019, the weighted average amortization period on management agreements was 12.6 years and capitalized software was 2.5 years. As of December 31, 2019, we estimated our future amortization expense for our amortizing intangible assets to be as follows: ($ in millions) Future Amortization Expense Year 2020 $ 25 2021 21 2022 13 2023 3 2024 3 Thereafter 24 $ 89 |
Other Assets
Other Assets | 12 Months Ended |
Dec. 31, 2019 | |
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract] | |
Other Assets | Note 11: Other Assets Other assets were as follows: December 31, ($ in millions) 2019 2018 Inventory deposits $ 7 $ 46 Deferred selling, marketing, general and administrative expenses 12 — Prepaid expenses 13 18 Other 36 31 $ 68 $ 95 For non-cash transfers see Note 23: Supplemental Disclosure of Cash Flow Information |
Accounts Payable, Accrued Expen
Accounts Payable, Accrued Expenses and Other | 12 Months Ended |
Dec. 31, 2019 | |
Payables And Accruals [Abstract] | |
Accounts Payable, Accrued Expenses and Other | Note 12: Accounts Payable, Accrued Expenses and Other Accounts payable, accrued expenses and other were as follows: December 31, ($ in millions) 2019 2018 Accrued employee compensation and benefits $ 77 $ 86 Accounts payable 24 51 Bonus point incentive liability 59 56 Due to Hilton 19 20 Income taxes payable 8 7 Other accrued expenses 111 104 $ 298 $ 324 |
Deferred Revenues
Deferred Revenues | 12 Months Ended |
Dec. 31, 2019 | |
Revenue From Contract With Customer [Abstract] | |
Deferred Revenues | Note 13: Deferred Revenues Deferred revenues were as follows: December 31, ($ in millions) 2019 2018 Deferred VOI sales $ 100 $ 19 Club activation fees 71 63 Other 15 13 $ 186 $ 95 Deferred VOI sales include the deferred revenues associated with: the sales associated with incomplete phases or buildings; the sales of unacquired inventory; and deferred sales associated with our long-term lease product with a reversionary interest. As of December 31, 2019, deferred VOI sales included $84 million associated with Sales of VOIs under construction. We did not have deferred revenues associated with Sales of VOIs under construction as of December 31, 2018. Advanced deposits |
Debt & Non-recourse Debt
Debt & Non-recourse Debt | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Debt & Non-recourse Debt | Note 14: Debt & Non-recourse Debt Debt The following table details our outstanding debt balance and its associated interest rates: December 31 ($ in millions) 2019 2018 Debt (1) Senior secured credit facilities: Term loans with an average rate of 3.513%, due 2023 $ 187 $ 197 Revolver with an average rate of 3.513%, due 2023 320 115 Senior notes with a rate of 6.125%, due 2024 300 300 Other debt 27 — 834 612 Less: unamortized deferred financing costs and discount (2)(3) (6 ) (8 ) $ 828 $ 604 (1) As of December 31, 2019 and 2018, weighted-average interest rates were 4.571 percent and 5.170 percent, respectively. (2) (3) Amount does not include deferred financing costs of $5 and $6 million as of December 31, 2019 and 2018, respectively, relating to our revolving facility included in Other Assets Senior Secured Credit Facilities In November 2018, we amended certain terms of our existing credit facilities (the “Amendment”) such as, but not limited to, (i) the existing term loan was increased to $200 million, (ii) the amount of borrowing capacity under the revolving facility was increased from $200 million to $800 million and (iii) the maturity date was extended to November 28, 2023. As a result of the Amendment, we incurred $6 million in debt issuance costs of which $5 million is recorded in Other assets In addition, we are required to pay a commitment fee to the lenders under the Revolving Facility in respect of the unutilized commitments thereunder. The commitment fee will be determined based on a first lien net leverage ratio and will range from 0.25% to 0.35% per annum. We are also required to pay customary letters of credit fees. During the year ended December 31, 2019, we borrowed $485 million and repaid $290 million, including recurring payments, under the senior secured credit facilities with an interest rate based on one-month LIBOR plus 1.75 percent. The obligations under the senior secured credit facility are unconditionally and irrevocably guaranteed by us and certain of our subsidiaries. We are in compliance with all applicable financial covenants as of December 31, 2019. Senior Notes In November 2016, we issued $300 million aggregate principal amount of 6.125 percent senior unsecured notes due 2024 (the “Senior Unsecured Notes”) and incurred $8 million of debt issuance costs. Interest on the senior unsecured notes (the “Senior Unsecured Notes” is payable semi-annually in arrears on June 1 and December 1 of each year, beginning on June 1, 2017. In January 2018, the Subsidiary Issuers completed an exchange offer pursuant to which substantially all of the outstanding Senior Unsecured Notes, which were originally issued without registration under the Securities Act of 1933, as amended (the “Securities Act”), were exchanged for substantially identical notes that were registered under Securities Act, as required by the terms of the original issuance. As used in As used in these notes to the consolidated financial statements, the term Senior Unsecured Notes refers to both the originally unregistered Senior Unsecured Notes and such registered exchange notes, collectively, without duplication. We may, at our sole option, redeem the Senior Unsecured Notes, in whole or in part, at any time prior to December 1, 2021, at a price equal to 100 percent of the principal amount, plus an applicable make-whole premium and accrued and unpaid interest. On and after, December 1, 2021, we may, at our sole option, redeem the Senior Unsecured Notes at 103.25 percent, 101.625 percent or 100 percent of the principal amount in 2021, 2022 or 2023, respectively, without any make-whole premium. The Senior Unsecured Notes are guaranteed on a senior unsecured basis by certain of our subsidiaries. We are in compliance with all applicable financial covenants as of December 31, 2019. Non-recourse Debt The following table details our outstanding non-recourse debt balance and its associated interest rates: December 31 ($ in millions) 2019 2018 Non-recourse debt (1) Timeshare Facility with an average rate of 3.164%, due 2021 $ — $ 120 Securitized Debt with a rate of 2.280%, due 2026 — 33 Securitized Debt with an average rate of 1.810%, due 2026 46 74 Securitized Debt with an average rate of 2.711%, due 2028 149 206 Securitized Debt with an average rate of 3.602%, due 2032 275 333 Securitized Debt with an average rate of 2.421%, due 2033 285 — 755 766 Less: unamortized deferred financing costs (2) (8 ) (7 ) $ 747 $ 759 (1) As of December 31, 2019 and 2018, weighted-average interest rates were 2.876 percent and 3.126 percent, respectively. (2) Amount relates to Securitized Debt only and does not include deferred financing costs of $3 Other Assets In August 2019, we completed a securitization of $308 million of gross timeshare financing receivables and issued approximately $216 million of 2.34 percent notes, $50 million of 2.54 percent notes and $34 million of 2.84 percent notes due July 2033. The Securitized Debt is backed by pledged assets, consisting primarily of a pool of timeshare financing receivables secured by first mortgages or deeds of trust on timeshare interest and temporarily by a $21 million cash deposit, which is reflected as Restricted cash in our consolidated balance sheets for the year ended December 31, 2019. The Securitized Debt is a non-recourse obligation and is payable solely from the pool of timeshare financing receivables pledged as collateral to the debt. The proceeds were primarily used to pay down the remaining borrowings on our Timeshare Facility and our Securitized Debt with a rate of 2.280%, due 2026 (“2013-A”) and general corporate operating expenses. In connection with the securitization, we incurred $4 million in debt issuance costs. In September 2019, we exercised our call option on the remaining outstanding principal balance on our 2013-A Notes and prepaid the remaining balance in accordance with the terms of the arrangement. Collateral securing the notes were pledged as a part of the collateral backing the 2019-A Notes offering in place of the $21 million of cash used as collateral as a part of our 2019 securitization. The Timeshare Facility is a non-recourse obligation with a borrowing capacity of $450 million and is payable solely from the pool of timeshare financing receivables pledged as collateral and related assets. In April 2019, we amended the Timeshare Facility, extending the end of the commitment period, from March 2020 to April 2021, and certain covenants. In September 2019, we amended the Timeshare Facility, temporarily changing certain covenant requirements. All other terms and borrowing capacity remained the same in both amendments. We are required to deposit payments received from customers on the timeshare financing receivables securing the Timeshare Facility and Securitized Debt into depository accounts maintained by third parties. On a monthly basis, the depository accounts are utilized to make required principal, interest and other payments due under the respective loan agreements. The balances in the depository accounts were $26 million and $27 million as of December 31, 2019 and December 31, 2018, respectively, and were included in Restricted cash in our consolidated balance sheets. Debt Maturities The contractual maturities of our debt and non-recourse debt as of December 31, 2019 were as follows: ($ in millions) Debt Non-recourse Debt Total Year 2020 $ 12 $ 242 $ 254 2021 11 166 177 2022 11 113 124 2023 477 109 586 2024 300 42 342 Thereafter 23 83 106 $ 834 $ 755 $ 1,589 |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Note 15: Fair Value Measurements The carrying amounts and estimated fair values of our financial assets and liabilities were as follows: December 31, 2019 Hierarchy Level ($ in millions) Carrying Amount Level 1 Level 3 Assets: Timeshare financing receivables (1) $ 1,156 $ — $ 1,446 Liabilities: Debt (2) 828 326 544 Non-recourse debt (2) 747 — 749 (1) Carrying amount net of allowance for financing receivables losses. (2) Carrying amount net of unamortized deferred financing costs and discount. December 31, 2018 Hierarchy Level ($ in millions) Carrying Amount Level 1 Level 3 Assets: Timeshare financing receivables (1) $ 1,120 $ — $ 1,339 Liabilities: Debt (2) 604 302 309 Non-recourse debt (2) 759 — 753 (1) Carrying amount net of allowance for financing receivables losses. (2) Carrying amount net of unamortized deferred financing costs and discount. Our estimates of the fair values were determined using available market information and appropriate valuation methods. Considerable judgment is necessary to interpret market data and develop the estimated fair values. The table above excludes cash and cash equivalents, restricted cash, accounts receivable, accounts payable, advance deposits and accrued liabilities, all of which had fair values approximating their carrying amounts due to the short maturities and liquidity of these instruments. The estimated fair values of our timeshare financing receivables were determined using a discounted cash flow model. Our model incorporates default rates, coupon rates, credit quality and loan terms respective to the portfolio based on current market assumptions for similar types of arrangements. The estimated fair values of our Level 1 debt was based on prices in active debt markets. The estimated fair value of our Level 3 debt and non-recourse debt were as follows: • Debt – based on indicative quotes obtained for similar issuances and projected future cash flows discounted at risk-adjusted rates • Non-recourse debt – based on projected future cash flows discounted at risk-adjusted rates. We do not have any assets or liabilities measured at fair value on a recurring basis as of December 31, 2019. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Leases | Note 16: Leases We lease sales centers, office space and equipment under operating leases. Our leases expire at various dates from 2020 through 2030, with varying renewal and termination options. Our lease terms include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. We recognize rent expense on leases with both contingent and non-contingent lease payment terms. Rent expense associated with non-contingent lease payments are recognized on a straight-line basis over the lease term. Rent expense for all operating leases for the year ended December 31, 2019, 2018 and 2017 was as follows: Year Ended December 31, ($ in millions) 2019 2018 2017 Minimum rentals $ 19 $ 21 $ 17 Contingent rentals 2 3 3 $ 21 $ 24 $ 20 Supplemental information related to operating leases for the year ending December 31, 2019: ($ in millions) Cash paid for amounts included in the measurement of operating lease liabilities: Operating cash flows from operating leases $ 16 Supplemental non-cash information: Right-of-use assets obtained in exchange for new operating lease liabilities 10 Weighted-average remaining lease term of operating leases 6.1 years Weighted-average discount rate of operating leases 5.34 % The future minimum rent payments under non-cancelable operating leases, due in each of the next five years and thereafter as of December 31, 2019, were as follows: ($ in millions) Operating Leases Year 2020 $ 17 2021 16 2022 12 2023 12 2024 11 Thereafter 22 Total future minimum lease payments $ 90 Less: imputed interest (14 ) Present value of lease liabilities $ 76 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 17: Income Taxes In December 2017, the U.S. government enacted comprehensive tax legislation commonly referred to as the Tax Cuts and Jobs Act (the “TCJ Act”). The TCJ Act made broad and complex changes to the U.S. tax code, including, but not limited to, the following that impact us: (1) reducing the U.S. federal corporate rate from 35 percent to 21 percent; (2) limiting the deductibility of certain executive compensation; (3) imposing a new tax on global intangible low-taxed income; and (4) limiting certain other deductions. The 2019 and 2018 effective tax rates utilize the reduced 21% tax rate due to the TCJ Act while the 2017 effective tax rate utilizes the prior 35% tax rate but reflects the revaluation of deferred taxes due to the TCJ Act’s enactment. The 2019 effective tax rate is lower than the 2018 effective tax rate primarily due to the tax benefit derived from the approval of a tax accounting method change for the 2017 taxable year which redetermined the tax allocation methodology for cost of sales associated with inventory. Due to the TCJ Act of 2017, the federal income tax rate was reduced from 35% to 21%, resulting in a tax rate benefit of $18 million. Our tax provision includes federal, state and foreign income taxes payable. The domestic and foreign components of income before taxes were as follows: Year Ended December 31, ($ in millions) 2019 2018 2017 U.S. income before tax $ 234 $ 380 $ 283 Foreign income before tax 39 23 28 Income before taxes $ 273 $ 403 $ 311 The components of our provision for income taxes were as follows: Year Ended December 31, ($ in millions) 2019 2018 2017 Current: Federal $ 37 $ 62 $ 94 State 9 15 11 Foreign 8 8 8 Total current 54 85 113 Deferred: Federal 3 17 (137 ) State 1 4 8 Foreign (1 ) (1 ) — Total deferred 3 20 (129 ) Total provision for income taxes $ 57 $ 105 $ (16 ) Reconciliations of our tax provision at the U.S. statutory rate to the provision for income taxes were as follows: Year Ended December 31, ($ in millions) 2019 2018 2017 Statutory U.S. federal income tax provision $ 57 $ 85 $ 109 State and local income taxes, net of U.S. federal tax benefit 11 19 12 Impact of foreign operations 1 2 — Interest on installment sales, net of U.S. federal tax benefit 4 3 3 Interest on installment sales adjustment — — (5 ) Effects of the TCJ Act — (4 ) (133 ) Tax accounting method change (18 ) — — Other 2 — (2 ) Provision for income taxes $ 57 $ 105 $ (16 ) Deferred income taxes represent the tax effect of the differences between the book and tax bases of assets and liabilities plus carryforward items. The compositions of net deferred tax balances were as follows: December 31, ($ in millions) 2019 2018 Deferred income tax assets $ 2 $ 1 Deferred income tax liabilities (259 ) (255 ) Net deferred taxes $ (257 ) $ (254 ) The tax effects of the temporary differences and carryforwards that give rise to our net deferred tax liability were as follows: December 31, ($ in millions) 2019 2018 Deferred tax assets: Compensation $ 12 $ 11 Domestic tax loss and credit carryforwards 4 2 Foreign tax loss carryforwards 1 — Other reserves 86 57 103 70 Valuation allowance (4 ) (2 ) Deferred tax assets 99 68 Deferred tax liabilities: Property and equipment (87 ) (46 ) Amortizable intangible assets (9 ) (10 ) Deferred income (259 ) (266 ) Other liabilities (1 ) — Deferred tax liabilities (356 ) (322 ) Net deferred taxes $ (257 ) $ (254 ) Tax loss and credit carryforwards as of December 31, 2019 have expiration dates ranging between 8 years and no expiration in certain instances. The amount of foreign tax loss carryforwards as of December 31, 2019 and December 31, 2018 were $2 million and $1 million, respectively. The amount of state tax loss carryforwards as of December 31, 2019 was $8 million. There were no state tax loss carryforwards as of December 31, 2018. The amount of federal tax credit carryforwards as of December 31, 2019 and December 31, 2018 were $3 million and $2 million, respectively. The valuation allowance increased $2 million to $4 million as of December 31, 2019. The valuation allowance has been established for financial reporting purposes to offset certain federal and state deferred tax assets due to uncertainty regarding our ability to realize them in the future. |
Share-Based Compensation
Share-Based Compensation | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Share-Based Compensation | Note 18: Share-Based Compensation Stock Plan We issue service-based restricted stock units (“Service RSUs”), service and performance-based restricted stock units (“Performance RSUs”) and nonqualified stock options (“Options”) to certain employees and directors. We recognized share-based compensation expense of $22 million, $16 million and $15 million during the years ended December 31, 2019, 2018 and 2017 respectively. The total tax benefit recognized related to this compensation was $4 million for the years ended December 31, 2019, 2018 and 2017. As of December 31, 2019, unrecognized compensation costs for unvested awards were approximately $19 million, which is expected to be recognized over a weighted average period of 1.7 years. As of December 31, 2019, there were 6,500,726 shares of common stock available for future issuance under this plan. Service RSUs The following table provides information about our RSU grants for the last three fiscal years: Year Ended December 31, 2019 2018 2017 Number of shares granted 500,925 378,069 534,329 Weighted average grant date fair value per share $ 33.07 $ 42.63 $ 29.23 Fair value of shares vested (in millions) $ 10 $ 13 $ 11 The following table summarizes the activity of our RSUs during the year ended December 31, 2019: Number of Shares Weighted Average Grant Date Fair Value Outstanding, beginning of period 743,382 $ 34.31 Granted 500,925 33.07 Vested (323,638 ) 31.76 Forfeited (95,078 ) 35.15 Outstanding, end of period 825,591 34.46 Options The following table provides information about our option grants for the last three fiscal years: Year Ended December 31, 2019 2018 2017 Number of options granted 544,209 312,141 669,658 Weighted average exercise price per share $ 33.32 $ 46.48 $ 28.30 Weighted average grant date fair value per share $ 12.29 $ 14.78 $ 8.66 The grant date fair value of each of these options was determined using the Black-Scholes-Merton option-pricing model with the following assumptions: Year Ended December 31, 2019 2018 2017 Expected volatility (1) 33.1 % 26.6 % 26.3 % Dividend yield (2) — % — % — % Risk-free rate (3) 2.6 % 2.7 % 2.3 % Expected term (in years) (4) 6.0 6.0 6.0 (1) Due to limited trading history for our common stock, we did not have sufficient information available on which to base a reasonable and supportable estimate of the expected volatility of its share price. As a result, we used an average historical volatility of our peer group over a time period consistent with its expected term assumption. Our peer group was determined based upon companies in our industry with similar business models and is consistent with those used to benchmark our executive compensation. (2) At the date of grant we had no plans to pay dividends during the expected term of these options. (3) Based on the yields of U.S. Department of Treasury instruments with similar expected lives. (4) Estimated using the average of the vesting periods and the contractual term of the options. As of December 31, 2019, we had 617,419 Options outstanding that were exercisable. The following table summarizes the activity of our options during the year ended December 31, 2019: Number of Shares Weighted Average Exercise Price Per Share Outstanding, beginning of period 1,106,672 $ 31.14 Granted 544,209 33.32 Exercised (23,486 ) 26.03 Forfeited, canceled or expired (86,313 ) 36.79 Outstanding, end of period 1,541,082 31.67 Exercisable, end of period 617,419 27.61 Performance Shares During the year ended December 31, 2019 we issued 133,660 Performance RSUs with a weighted-average grant date fair value of $33.32. The Performance RSUs are settled at the end of a three-year The following table provides information about our Performance RSU grants, which is based on our Adjusted EBITDA metric described in Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations Year Ended December 31, 2019 2018 2017 Number of shares granted 93,566 64,809 — Weighted average grant date fair value per share $ 33.32 $ 42.94 $ — The following table provides information about our Performance RSU grants, which is based on contract sales as defined in Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations Year Ended December 31, 2019 2018 2017 Number of shares granted 40,094 27,769 — Weighted average grant date fair value per share $ 33.32 $ 42.94 $ — The following table summarizes the activity of our Performance RSUs during the year ended December 31, 2019: Adjusted EBITDA (1) Contract Sales Number of Shares Weighted Average Grant Date Fair Value per Share Number of Shares Weighted Average Grant Date Fair Value per Share Outstanding, beginning of period 57,301 $ 42.46 24,552 $ 42.46 Granted 93,566 33.32 40,094 33.32 Vested — — — — Forfeited, canceled or expired — — — — Outstanding, end of period 150,867 36.79 64,646 36.79 (1) Represents our Adjusted EBITDA metric described in Part 1 of this Form 10-K, further adjusted by net recognition and deferral activity from sales of VOIs under construction. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Note 19: Earnings Per Share The following table presents the calculation of our basic and diluted earnings per share (“EPS”). Year Ended December 31, ($ in millions, except per share amounts) 2019 2018 2017 Basic EPS Numerator: Net Income (1) $ 216 $ 298 $ 327 Denominator: Weighted average shares outstanding 89 97 99 Basic EPS $ 2.43 $ 3.07 $ 3.30 Diluted EPS Numerator: Net Income (1) $ 216 $ 298 $ 327 Denominator: Weighted average shares outstanding 89 98 100 Diluted EPS $ 2.42 $ 3.05 $ 3.28 (1) Net income for years ended December 31, 2019, 2018, and 2017 was $215,695,961; $298,124,983 and $326,777,744, respectively. The dilutive effect of outstanding share-based compensation awards is reflected in diluted earnings per common share by application of the treasury stock method using average market prices during the period. For the years ended December 31, 2019, 2018 and 2017, we excluded 836,677, 384,860 and 229,621 share-based compensation awards, respectively, because their effect would have been anti-dilutive under the treasury stock method. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2019 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Note 20: Related Party Transactions BRE Ace LLC and 1776 Holding, LLC We hold a 25 percent ownership interest in BRE Ace LLC, a VIE, which owns a timeshare resort property and related operations, commonly known as “Elara, by Hilton Grand Vacations.” We hold a 50 percent ownership interest in 1776 Holdings, LLC, a VIE, which will construct a timeshare resort property, known as “Liberty Place Charleston, by Hilton Club.” In May 2019, we contributed an additional $2 million in cash to 1776 Holding, LLC. We record Equity in earnings from our unconsolidated affiliates in our consolidated statements of operations. See Note 9: Investments in Unconsolidated Affiliates December 31, ($ in millions) 2019 2018 2017 Equity in earnings from unconsolidated affiliates $ 4 $ — $ 1 Commission and other fees 136 132 79 We also have $25 million and $29 million of outstanding receivables related to the fee-for-service agreements as of December 31, 2019 and 2018. HNA Tourism Group Co., Ltd On March 13, 2018, HNA entered into an underwriting agreement with several underwriters to sell 22,250,000 shares of our common stock. In connection with the underwriting offer, we elected to purchase 2,500,000 shares at a price of approximately $44.75 per share. The transactions were completed on March 19, 2018 and HNA ceased to be a related party. |
Business Segments
Business Segments | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Business Segments | Note 21: Business Segments We operate our business through the following two segments: • Real estate sales and financing – We market and sell VOIs that we own. We also source VOIs through fee-for-service agreements with third-party developers. Related to the sales of the VOIs that we own, we provide consumer financing, which includes interest income generated from the origination of consumer loans to customers to finance their purchase of VOIs and revenue from servicing the loans. We also generate fee revenue from servicing the loans provided by third-party developers to purchasers of their VOIs. • Resort operations and club management – We manage the Club, earn activation fees, annual dues and transaction fees from member exchanges for other vacation products. We earn fees for managing the timeshare properties. We generate rental revenue from unit rentals of unsold inventory and inventory made available due to ownership exchanges under our Club program. We also earn revenue from food and beverage, retail and spa outlets at our timeshare properties. The performance of our operating segments is evaluated primarily based on adjusted earnings before interest expense (excluding non-recourse debt), taxes, depreciation and amortization (“EBITDA”). We define Adjusted EBITDA as EBITDA which has been further adjusted to exclude certain items, including, but not limited to, gains, losses and expenses in connection with: (i) asset dispositions; (ii) foreign currency transactions; (iii) debt restructurings/retirements; (iv) non-cash impairment losses; (v) reorganization costs, including severance and relocation costs; (vi) share-based and other compensation expenses; (vii) costs related to the spin-off; and (viii) other items. We do not include equity in earnings (losses) from unconsolidated affiliates in our measures of segment operating performance. The following table presents revenues for our reportable segments reconciled to consolidated amounts: Year Ended December 31, ($ in millions) 2019 2018 2017 Revenues: Real estate sales and financing $ 1,252 $ 1,462 $ 1,239 Resort operations and club management (1) 454 422 367 Total segment revenues 1,706 1,884 1,606 Cost reimbursements 168 147 135 Intersegment eliminations (1)(2) (36 ) (32 ) (30 ) Total revenues $ 1,838 $ 1,999 $ 1,711 (1) Includes charges to the real estate sales and financing segment from the resort operations and club management segment for fulfillment of discounted marketing package stays at resorts. These charges totaled $35 million, $31 million and $29 million for the years ended December 31, 2019, 2018 and 2017, respectively. (2) Includes charges to the real estate sales and financing segment from the resort operations and club management segment for the rental of model units to show prospective buyers. These charges totaled less than $2 million for the year ended December 31, 2019 and less than $1 million for each of the years ended December 31, 2018 and 2017, respectively The following table presents Adjusted EBITDA for our reportable segments reconciled to net income: Year Ended December 31, ($ in millions) 2019 2018 2017 Adjusted EBITDA: Real estate sales and financing (1) $ 325 $ 447 $ 359 Resort operations and club management (1) 265 245 204 Segment Adjusted EBITDA 590 692 563 General and administrative (111 ) (117 ) (104 ) Depreciation and amortization (51 ) (36 ) (29 ) License fee expense (101 ) (98 ) (87 ) Other loss, net (3 ) (1 ) — Interest expense (43 ) (30 ) (27 ) Income tax (expense) benefit (2) (57 ) (105 ) 16 Equity in earnings from unconsolidated affiliates (3) 4 — 1 Other adjustment items (12 ) (7 ) (6 ) Net income $ 216 $ 298 $ 327 (1) (2) On December 22, 2017, the United States enacted tax reform legislation, the TCJ Act, resulting in significant modifications to existing law which resulted in a reduction in income tax expense for the year ended December 31, 2017. See Note 17: Income Taxes ( 3 ) Investment in Unconsolidated Affiliates The following table presents total assets for our reportable segments, reconciled to consolidated amounts: December 31, ($ in millions) 2019 2018 Real estate sales and financing $ 2,753 $ 2,501 Resort operations and club management 196 172 Total segment assets 2,949 2,673 Corporate 130 80 Total assets $ 3,079 $ 2,753 The following table presents capital expenditures for property and equipment for our reportable segments, reconciled to consolidated amounts: December 31, ($ in millions) 2019 2018 2017 Real estate sales and financing $ 19 $ 36 $ 28 Resort operations and club management 5 — 2 Total segment capital expenditures for property and equipment 24 36 30 Corporate 13 8 5 Total capital expenditures for property and equipment $ 37 $ 44 $ 35 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2019 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 22: Commitments and Contingencies We have entered into certain arrangements with developers whereby we have committed to purchase vacation ownership units or other real estate at a future date to be marketed and sold under our Hilton Grand Vacations brand. As of December 31, 2019, we were committed to purchase approximately $473 million of inventory and land over a period of 11 years and $25 million of other commitments under the normal course of business. Additionally, we have committed to develop additional vacation ownership units at an existing resort in Japan. We expect to begin construction of these units in 2020. The actual amount and timing of the acquisitions is subject to change pursuant to the terms of the respective arrangements, which could also allow for cancellation in certain circumstances. During the years ended December 31, 2019 and 2018, we purchased $75 million and $18 million, respectively as required under our commitments. As of December 31, 2019, our remaining obligation pursuant to these arrangements was expected to be incurred as follows: ($ in millions) 2020 2021 2022 2023 2024 Thereafter Total Inventory purchase obligations $ 84 $ 221 $ 56 $ 58 $ 40 $ 14 $ 473 Other commitments (1) 15 8 2 — — — 25 Total $ 99 $ 229 $ 58 $ 58 $ 40 $ 14 $ 498 (1) Primarily relates to commitments related to information technology and brand licensing under the normal course of business We are involved in litigation arising from the normal course of business, some of which includes claims for substantial sums. |
Supplemental Disclosures of Cas
Supplemental Disclosures of Cash Flow Information | 12 Months Ended |
Dec. 31, 2019 | |
Supplemental Cash Flow Information [Abstract] | |
Supplemental Disclosures of Cash Flow Information | Note 23: Supplemental Disclosures of Cash Flow Information Cash paid for interest during the years ended December 31, 2019, 2018 and 2017, was $63 The following non-cash activities were excluded from the consolidated statements of cash flows: • In 2019, we recorded a $23 million non-cash issuance of other debt related to the acquisition of property for future conversion to inventory involving a note payable financed by the seller. • In 2019, we recorded net non-cash operating activity transfers of $25 million from Property and equipment to Inventory related to the registration of timeshare units under construction. • In 2019, we recorded non-cash operating activity transfers of $40 million related to the reclassification of deposits on properties for future development into timeshare inventory from Other assets to Property and equipment. • In 2018, we recorded a cumulative non-cash adjustment of $38 million related to the adoption of ASC 606. See Note 3: Revenue from Contracts with Customers for more information. • In 2018, we recorded a $3 million non-cash operating activity transfer from Property and Equipment, net to Inventory . • In 2018, we recorded a $3 million non-cash financing activity adjustment to equity related to the write-off of expenses due to Hilton prior to the spin-off • In 2017, we recorded a $40 million non-cash operating activity transfer from Property and Equipment , net to Inventory . |
Condensed Consolidating Guarant
Condensed Consolidating Guarantor Financial Information | 12 Months Ended |
Dec. 31, 2019 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Condensed Consolidating Guarantor Financial Information | Note 24: Condensed Consolidating Guarantor Financial Information In November 2016, Hilton Grand Vacations Borrower LLC and Hilton Grand Vacations Borrower Inc. (the “Subsidiary Issuers”), entities formed in October 2016 which are 100 percent owned by HGV (the “Parent”), issued the Senior Unsecured Notes. The obligations of the Subsidiary Issuers are fully and unconditionally guaranteed jointly and severally on a senior unsecured basis by the Parent, and certain of the Parent’s 100 percent owned domestic subsidiaries (the “Guarantors”). The indenture that governs the Senior Unsecured Notes provides that any subsidiary of the Company that provides a guarantee of the senior secured credit facilities will guarantee the Senior Unsecured Notes. Neither of our foreign subsidiaries nor certain of our special purpose subsidiaries formed in connection with our Timeshare Facility and Securitized Timeshare Debt guarantee the Senior Unsecured Notes (collectively, the “Non-Guarantors”). In January 2018, the Subsidiary Issuers completed an exchange offer pursuant to which substantially all of the outstanding Senior Unsecured Notes, which were originally issued without registration under the Securities Act, were exchanged for substantially identical notes that were registered under Securities Act, as required by the terms of the original issuance. The following schedules present the condensed consolidating financial information as of December 31, 2019 and 2018 and for the years ended December 31, 2019, 2018 and 2017, for the Parent, Subsidiary Issuers, Guarantors and Non-Guarantors. December 31, 2019 ($ in millions) Parent Issuers Guarantors Non- Guarantors Eliminations Total ASSETS Cash and cash equivalents $ 2 $ — $ 33 $ 32 $ — $ 67 Restricted cash — — 59 26 — 85 Accounts receivable, net — — 192 52 (70 ) 174 Timeshare financing receivables, net — — 449 707 — 1,156 Inventory — — 524 34 — 558 Property and equipment, net — — 718 60 — 778 Operating lease right-of-use assets, net — — 58 2 — 60 Investments in unconsolidated affiliates — — 44 — — 44 Intangible assets, net — — 89 — — 89 Other assets — 5 52 11 — 68 Investments in subsidiaries 568 1,364 136 — (2,068 ) — TOTAL ASSETS $ 570 $ 1,369 $ 2,354 $ 924 $ (2,138 ) $ 3,079 LIABILITIES AND EQUITY Accounts payable, accrued expenses and other $ — $ — $ 329 $ 39 $ (70 ) $ 298 Advance deposits — — 115 — — 115 Debt, net — 801 27 — — 828 Non-recourse debt, net — — — 747 — 747 Operating lease liabilities — — 74 2 — 76 Deferred revenues — — 186 — — 186 Deferred income tax liabilities — — 259 — — 259 Total equity 570 568 1,364 136 (2,068 ) 570 TOTAL LIABILITIES AND EQUITY $ 570 $ 1,369 $ 2,354 $ 924 $ (2,138 ) $ 3,079 December 31, 2018 ($ in millions) Parent Issuers Guarantors Non- Guarantors Eliminations Total ASSETS Cash and cash equivalents $ 4 $ — $ 89 $ 15 $ — $ 108 Restricted cash — — 45 27 — 72 Accounts receivable, net — — 157 17 (21 ) 153 Timeshare financing receivables, net — — 209 911 — 1,120 Inventory — — 502 25 — 527 Property and equipment, net — — 553 6 — 559 Investment in unconsolidated affiliate — — 38 — — 38 Intangible assets, net — — 81 — — 81 Other assets — 6 41 48 — 95 Investments in subsidiaries 612 1,210 277 — (2,099 ) — TOTAL ASSETS $ 616 $ 1,216 $ 1,992 $ 1,049 $ (2,120 ) $ 2,753 LIABILITIES AND EQUITY Accounts payable, accrued expenses and other $ — $ — $ 332 $ 13 $ (21 ) $ 324 Advance deposits — — 101 — — 101 Debt, net — 604 — — — 604 Non-recourse debt, net — — — 759 — 759 Deferred revenues — — 95 — — 95 Deferred income tax liabilities — — 254 — — 254 Total equity 616 612 1,210 277 (2,099 ) 616 TOTAL LIABILITIES AND EQUITY $ 616 $ 1,216 $ 1,992 $ 1,049 $ (2,120 ) $ 2,753 For the Year Ended December 31, 2019 ($ in millions) Parent Issuers Guarantors Non- Guarantors Eliminations Total Revenues Sales of VOIs, net $ — $ — $ 409 $ 100 $ — $ 509 Sales, marketing, brand and other fees — — 632 7 (66 ) 573 Financing — — 77 101 (8 ) 170 Resort and club management — — 190 1 — 191 Rental and ancillary services — — 224 3 — 227 Cost reimbursements — — 164 4 — 168 Total revenues — — 1,696 216 (74 ) 1,838 Expenses Cost of VOI sales — — 107 20 — 127 Sales and marketing — — 719 66 (66 ) 719 Financing — — 19 42 (8 ) 53 Resort and club management — — 46 — — 46 Rental and ancillary services — — 142 5 — 147 General and administrative — — 111 — — 111 Depreciation and amortization — — 50 1 — 51 License fee expense — — 100 1 — 101 Cost reimbursements — — 164 4 — 168 Total operating expenses — — 1,458 139 (74 ) 1,523 Interest expense — (43 ) — — — (43 ) Dividends from subsidiary 281 281 — — (562 ) — Equity in earnings from unconsolidated affiliates — — 4 — — 4 Other loss, net — — (3 ) — — (3 ) Income before income taxes 281 238 239 77 (562 ) 273 Income tax expense — — (56 ) (1 ) — (57 ) Income before equity in earnings from subsidiaries 281 238 183 76 (562 ) 216 Equity in (losses) earnings from subsidiaries (65 ) 259 77 — (271 ) — Net income $ 216 $ 497 $ 260 $ 76 $ (833 ) $ 216 For the Year Ended December 31, 2018 ($ in millions) Parent Issuers Guarantors Non- Guarantors Eliminations Total Revenues Sales of VOIs, net $ — $ — $ 716 $ 18 $ — $ 734 Sales, marketing, brand and other fees — — 578 4 (12 ) 570 Financing — — 70 95 (7 ) 158 Resort and club management — — 172 — — 172 Rental and ancillary services — — 216 2 — 218 Cost reimbursements — — 143 4 — 147 Total revenues — — 1,895 123 (19 ) 1,999 Expenses Cost of VOI sales — — 208 2 — 210 Sales and marketing — — 725 15 (12 ) 728 Financing — — 19 37 (7 ) 49 Resort and club management — — 47 — — 47 Rental and ancillary services — — 130 3 — 133 General and administrative — — 116 1 — 117 Depreciation and amortization — — 36 — — 36 License fee expense — — 98 — — 98 Cost reimbursements — — 143 4 — 147 Total operating expenses — — 1,522 62 (19 ) 1,565 Interest expense — (30 ) — — — (30 ) Other loss, net — — (1 ) — — (1 ) Income (loss) before income taxes — (30 ) 372 61 — 403 Income tax expense — — (105 ) — — (105 ) Income (loss) before equity in earnings (loss) from subsidiaries — (30 ) 267 61 — 298 Equity in earnings from subsidiaries 298 328 61 — (687 ) — Net income $ 298 $ 298 $ 328 $ 61 $ (687 ) $ 298 For the Year Ended December 31, 2017 ($ in millions) Parent Issuers Guarantors Non- Guarantors Eliminations Total Revenues Sales of VOIs, net $ — $ — $ 518 $ 30 $ — $ 548 Sales, marketing, brand and other fees — — 545 3 (4 ) 544 Financing — — 71 83 (7 ) 147 Resort and club management — — 156 2 — 158 Rental and ancillary services — — 177 2 — 179 Cost reimbursements — — 131 4 — 135 Total revenues — — 1,598 124 (11 ) 1,711 Expenses Cost of VOI sales — — 145 3 — 148 Sales and marketing — — 650 17 (4 ) 663 Financing — — 19 31 (7 ) 43 Resort and club management — — 41 2 — 43 Rental and ancillary services — — 120 2 — 122 General and administrative — — 101 3 — 104 Depreciation and amortization — — 29 — — 29 License fee expense — — 87 — — 87 Cost reimbursements — — 131 4 — 135 Total operating expenses — — 1,323 62 (11 ) 1,374 Interest expense — (27 ) — — — (27 ) Equity in earnings from unconsolidated affiliate — — 1 — — 1 Income (loss) before income taxes — (27 ) 276 62 — 311 Income tax benefit (expense) — — 18 (2 ) — 16 Income (loss) before equity in earnings (loss) from subsidiaries — (27 ) 294 60 — 327 Equity in earnings from subsidiaries 327 354 60 — (741 ) — Net income $ 327 $ 327 $ 354 $ 60 $ (741 ) $ 327 For the Year Ended December 31, 2019 ($ in millions) Parent Issuers Guarantors Non- Guarantors Eliminations Total Operating Activities Net cash provided by (used in) operating activities $ 216 $ 498 $ (7 ) $ 253 $ (815 ) $ 145 Investing Activities Capital expenditures for property and equipment — — (33 ) (4 ) — (37 ) Software capitalization costs — — (26 ) — — (26 ) Investments in unconsolidated affiliates — — (2 ) — — (2 ) Dividends from subsidiary 281 281 — — (562 ) — Net cash provided by (used in) investing activities 281 281 (61 ) (4 ) (562 ) (65 ) Financing Activities Issuance of debt — 485 — — — 485 Issuance of non-recourse debt — — — 365 — 365 Repayment of debt — (290 ) — — — (290 ) Repayment of non-recourse debt — — — (376 ) — (376 ) Debt issuance costs — — — (6 ) — (6 ) Repurchase and retirement of common stock (283 ) — — — — (283 ) Payment of withholding taxes on vesting of restricted stock units (4 ) — — — — (4 ) Proceeds from employee stock plan purchases 3 — — — — 3 Other financing activity — — (2 ) — — (2 ) Intercompany transfers (215 ) (974 ) 28 (216 ) 1,377 — Net cash (used in) provided by financing activities (499 ) (779 ) 26 (233 ) 1,377 (108 ) Net (decrease) increase in cash, cash equivalents and restricted cash (2 ) — (42 ) 16 — (28 ) Cash, cash equivalents and restricted cash, beginning of period 4 — 134 42 — 180 Cash, cash equivalents and restricted cash, end of period $ 2 $ — $ 92 $ 58 $ — $ 152 For the Year Ended December 31, 2018 ($ in millions) Parent Issuers Guarantors Non- Guarantors Eliminations Total Operating Activities Net cash (used in) provided by operating activities $ — $ (28 ) $ 163 $ (291 ) $ (3 ) $ (159 ) Investing Activities Capital expenditures for property and equipment — — (37 ) (7 ) — (44 ) Software capitalization costs — — (19 ) — — (19 ) Return of investment from unconsolidated affiliates — — 11 — — 11 Investment in unconsolidated affiliates — — (10 ) — — (10 ) Net cash used in investing activities — — (55 ) (7 ) — (62 ) Financing Activities Issuance of debt — 530 — — — 530 Issuance of non-recourse debt — — — 663 — 663 Repayment of debt — (408 ) — — — (408 ) Repayment of non-recourse debt — — — (485 ) — (485 ) Debt issuance costs — (7 ) — (5 ) — (12 ) Repurchase and retirement of common stock — (183 ) — — — (183 ) Payment of withholding taxes on vesting of restricted stock units — (4 ) — — — (4 ) Capital contribution — 3 — — — 3 Intercompany transfers 4 97 (233 ) 129 3 — Net cash provided by (used in) financing activities 4 28 (233 ) 302 3 104 Net increase (decrease) in cash, cash equivalents and restricted cash 4 — (125 ) 4 — (117 ) Cash, cash equivalents and restricted cash, beginning of period — — 259 38 — 297 Cash, cash equivalents and restricted cash, end of period $ 4 $ — $ 134 $ 42 $ — $ 180 For the Year Ended December 31, 2017 ($ in millions) Parent Issuers Guarantors Non- Guarantors Eliminations Total Operating Activities Net cash (used in) provided by operating activities $ — $ (27 ) $ 156 $ 235 $ (8 ) $ 356 Investing Activities Capital expenditures for property and equipment — — (33 ) (2 ) — (35 ) Software capitalization costs — — (12 ) — — (12 ) Investment in unconsolidated affiliate — — (40 ) — — (40 ) Net cash used in investing activities — — (85 ) (2 ) — (87 ) Financing Activities Issuance of non-recourse debt — — — 350 — 350 Repayment of debt — (10 ) — — — (10 ) Repayment of non-recourse debt — — — (459 ) — (459 ) Debt issuance costs — — — (5 ) — (5 ) Proceeds from stock option exercises — — 1 — — 1 Intercompany transfers — 37 59 (104 ) 8 — Net cash provided by (used in) financing activities — 27 60 (218 ) 8 (123 ) Net increase in cash, cash equivalents and restricted cash — — 131 15 — 146 Cash, cash equivalents and restricted cash, beginning of period — — 128 23 — 151 Cash, cash equivalents and restricted cash, end of period $ — $ — $ 259 $ 38 $ — $ 297 |
Selected Quarterly Financial In
Selected Quarterly Financial Information (unaudited) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Selected Quarterly Financial Information | Note 25: Selected Quarterly Financial Information (unaudited) The following table sets forth the historical unaudited quarterly financial data for the periods indicated. The information for each of these periods has been prepared on the same basis as the audited consolidated financial statements and, in our opinion, reflects all adjustments necessary to present fairly our financial results. Operating results for previous periods do not necessarily indicate results that may be achieved in any future period. 2019 (1) First Second Third Fourth Quarter Quarter Quarter Quarter Year ($ in millions, except per share data) Total revenues $ 450 $ 454 $ 466 $ 468 $ 1,838 Total operating expenses 365 390 384 384 1,523 Income before income taxes 75 54 70 74 273 Net income 55 39 50 72 216 Basic earnings per share $ 0.59 $ 0.43 $ 0.59 $ 0.83 $ 2.43 Diluted earnings per share $ 0.58 $ 0.43 $ 0.59 $ 0.83 $ 2.42 (1) The sum of the earnings per share for the four quarters may differ from annual earnings per share due to the required method of computing the weighted average shares in interim periods. 2018 (1) First Second Third Fourth Quarter Quarter Quarter Quarter Year ($ in millions, except per share data) Total revenues $ 367 $ 563 $ 427 $ 642 $ 1,999 Total operating expenses 320 408 364 473 1,565 Income before income taxes 40 146 56 161 403 Net income 30 107 41 120 298 Basic earnings per share $ 0.31 $ 1.10 $ 0.42 $ 1.25 $ 3.07 Diluted earnings per share $ 0.30 $ 1.10 $ 0.42 $ 1.24 $ 3.05 (1) The sum of the earnings per share for the four quarters may differ from annual earnings per share due to the required method of computing the weighted average shares in interim periods. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 26: Subsequent Events In January 2020, we executed the following transactions: • we borrowed $20 million and repaid $25 million, respectively, under our revolving credit facility • we amended the Timeshare Facility, temporarily changing certain covenant requirements. All other terms and borrowing capacity remained the same • we completed the registrations for timeshare units under construction in New York, New York and Los Cabos, Mexico that resulted in a transfer of $199 million and $50 million, respectively, from property and equipment to inventory. |
Basis of Presentation and Sum_2
Basis of Presentation and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The consolidated financial statements presented herein include 100 percent of our assets, liabilities, revenues, expenses and cash flows as well as all entities in which we have a controlling financial interest. Our accompanying consolidated financial statements reflect all adjustments, including normal recurring items, considered necessary for a fair presentation of the interim periods. All material intercompany transactions and balances have been eliminated in consolidation. The consolidated financial statements reflect our financial position, results of operations and cash flows as prepared in conformity with U.S. generally accepted accounting principles (“U.S. GAAP”). Certain information and footnote disclosures normally included in financial statements presented in accordance with U.S. GAAP have been omitted in accordance with the rules and regulations of the Securities and Exchange Commission (“SEC”). The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported and, accordingly, ultimate results could differ from those estimates. Interim results are not necessarily indicative of full year performance. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported and, accordingly, ultimate results could differ from those estimates. |
Revenue Recognition | Revenue Recognition On January 1, 2018, we adopted Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers The reported results as of and for the years ended December 31, 2019 and 2018 reflects the application of ASC 606 while the reported financial position as of December 31, 2017 and results for years ended December 31, 2017 were prepared under the guidance of ASC 605, Revenue Recognition Real Estate – Time-Sharing Activities, Revenue Recognition In accordance with ASC 606, revenue is recognized upon the transfer of control of promised goods or services to customers in an amount that reflects the consideration we expect to receive in exchange for those products or services. To achieve the core principle of the new guidance, we take the following steps: (i) identify the contract with the customer; (ii) determine whether the promised goods or services are separate performance obligations in the contract; (iii) determine the transaction price, including considering the constraint on variable consideration; (iv) allocate the transaction price to the performance obligations in the contract based on the standalone selling price or estimated standalone selling price of the good or service; and (v) recognize revenue when (or as) we satisfy each performance obligation. Contracts with Multiple Performance Obligations A performance obligation is a promise in a contract to transfer a distinct good or service to the customer and is the unit of account in ASC 606. For arrangements that contain multiple goods or services, we determine whether such goods or services are distinct performance obligations that should be accounted for separately in the arrangement. When allocating the transaction price in the arrangement, we may not have observable standalone sales for all of the performance obligations in these contracts; therefore, we exercise significant judgement when determining the standalone selling price of certain performance obligations. In order to estimate the standalone selling prices, we primarily rely on the expected cost plus margin and adjusted market assessment approaches. We then recognize the revenue allocated to each performance obligation as the related performance obligation is satisfied as discussed below. • Sales of VOIs, net — Customers who purchase vacation ownership products, whether paid in cash or financed, enter into multiple contracts, which we combine and account for as a single contract. Revenue from VOI sales is recognized at the point in time when control of the VOI is transferred to the customer which is when the customer has executed a binding sales contract, collectability is reasonably assured, the purchaser’s period to cancel for a refund has expired and the customer has the right to use the VOI. Revenue from sales of VOIs under construction is deferred until the point in time when construction activities are deemed to be completed, occupancy of the development is permissible, and the above criteria has been met. For financed sales, we estimate the variable consideration to be received under such contracts and recognize revenue net of amounts deemed uncollectible as the VOI is returned to inventory upon customer default. Variable consideration which has not been included within the transaction price is presented as a reserve on the financing receivable. See Timeshare Financing Receivables for more information regarding our estimate of variable consideration. We award Club Bonus Points (“Bonus Points”) to our customers. These points are valid for a maximum of two years and may be used toward reservations at Club resorts, hotel reservations within Hilton’s system and VOI interval exchanges with other third-party vacation ownership exchanges. At the time of the VOI sale, we estimate the fair value of the incentives to be redeemed, including an adjustment for breakage, to determine the standalone selling price of the first day incentive (“FDI”). We defer a portion of the total transaction price for the combined VOI contract as a liability for the FDI and recognize the corresponding revenue at the point in time when the customer receives the benefits of the FDI, which is upon the customer’s redemption of the Bonus Points. At that time, we also determine whether we are principal or agent for the redeemed good or service and recognize revenue on a gross or net basis accordingly. • Sales, marketing, brand and other fees — We enter into contracts with third-party developers to sell VOIs on their behalf through fee-for-service agreements for which we earn sales commissions and other fees. These commissions are variable as they are based on the sales and marketing results, which are subject to the constraint on variable consideration and resolved on a monthly basis over the contract term. We estimate such commissions to the extent that it is probable that a significant reversal of such revenue will not occur and recognize the commissions as the developer receives and consumes the benefits of the services. Any changes in these estimates would affect revenue and earnings in the period such variances are realized. Additionally, we enter into contracts to sell prepaid vacation packages. Our obligation in such contracts is satisfied when customers stay at our property; therefore, we recognize revenue for these packages when they are redeemed. On a portfolio basis, we exercise judgement to estimate the amount of expected breakage related to unused prepaid vacation packages and recognize such breakage in proportion to the pattern of packages utilized by our portfolio of customers. • Financing — We offer financing to qualifying customers purchasing our VOI. Revenue from the financing of timeshare sales is recognized on the accrual method as earned based on the outstanding principal, interest rate and terms stated in each individual financing agreement. We also recognize revenue from servicing the loans provided by third-party developers to purchasers of their VOIs over the period services are rendered. • Resort and club management — As part of our VOI sales, our customers enter into a Club arrangement which gives the customer an annual allotment of Club points that allow the customer to exchange the Club points for a number of vacation options. We manage the Club, receiving Club activation fees, annual dues and transaction fees from member exchanges. Club activation fees and the member's first year of annual dues are payable at the time of the VOI sale. The Club activation fee relates to activities we are required to undertake at or near contract inception to fulfill the contract, and does not result in the transfer of a promised good or service. Since our customers are granted the opportunity to renew their membership on an annual basis for no additional activation fee, we defer and amortize the activation fee on a straight-line basis over the seven year average inventory holding period. Annual dues for membership renewals are billed each year, and we recognize revenue from these annual dues over the period services are rendered. A member may elect to enter into an optional exchange transaction with their allotted Club points at which point the member pays their required transaction fee. This option does not represent a material right as the transactions are priced at their standalone selling price. Revenue related to the transaction is recognized when the services are rendered. As part of our resort operations, we contract with homeowner’s associations (“HOAs”) to provide day-to-day-management services, including housekeeping services, operation of a reservation system, maintenance, and certain accounting and administrative services. We receive compensation for such management services, which is generally based on a percentage of costs to operate the resorts, on a monthly basis. These fees represent a form of variable consideration and are estimated and recognized over time as the HOAs receive and consume the benefits of the management services. Management fees received related to the portion of unsold VOIs at each resort which we own are recognized on a net basis given we retain these VOIs in our inventory. • Rental and ancillary services — Our rental and ancillary services consist primarily of rental revenues on unoccupied vacation ownership units, inventory made available due to ownership exchanges through our club program and ancillary revenues. Rental revenue is recognized when occupancy has occurred. Advance deposits on the rental unit and the corresponding revenue is deferred and recognized upon the customer’s vacation stay. Ancillary revenues consist of food and beverage, retail, spa offerings and other guest services. We recognize ancillary revenue when goods have been provided and/or services have been rendered. We account for rental operations of unsold VOIs, including accommodations provided through the use of our vacation sampler programs, as incidental operations. Incremental carrying costs in excess of incremental revenues are recognized in the period incurred. In all periods presented, incremental carrying costs exceeded incremental revenues and all revenues and expenses are recognized in the period earned or incurred. • Cost reimbursements — As part of our management agreements with HOAs and fee-for-service developers, we receive cost reimbursements for performing the day to day management services, including direct and indirect costs that HOAs and developers reimburse to us. These costs primarily consist of payroll and payroll related costs for management of the HOAs and other services we provide where we are the employer. Cost reimbursements are based upon actual expenses with no added margin, and are billed to the HOA on a monthly basis. We recognize cost reimbursements when we incur the related reimbursable costs as the HOA receives and consumes the benefits of the management services. We capitalize all incremental costs incurred to obtain a contract when such costs would not have been incurred if the contract had not been obtained. We elect to expense costs incurred to obtain a contract when the deferral period would be one year or less. Commissions for VOI sales for resorts under construction are expensed when the associated VOI revenue is recognized which is upon completion of the resort. These commissions are classified as Sales and marketing expense As of December 31, 2019, the ending asset balance for costs to obtain a contract was $15 million relating to deferred commission costs for certain vacation package sales and VOI sales of resorts under construction. For the year ended December 31, 2019, we recognized Other than the United States, there were no countries that individually represented more than 10 percent of total revenues for the years ended December 31, 2019, 2018 and 2017. We earn commission and other fees related to fee-for-service agreements to sell VOIs. For the years ended December 31, 2019 and 2018, we did not earn more than 10 percent of our total revenue from one customer. For the year ended December 31, 2017, approximately 15 percent of our total revenue was earned from one customer. We are required to collect certain taxes and fees from customers on behalf of government agencies and remit these back to the applicable governmental agencies on a periodic basis. We have a legal obligation to act as a collection agent with respect to these taxes and fees. We do not retain these taxes and fees and, therefore, they are not included in revenues. We record a liability when the amounts are collected and relieve the liability when payments are made to the applicable taxing authority or other appropriate governmental agency. |
Investments in Unconsolidated Affiliates | Investments in Unconsolidated Affiliates We account for investments in unconsolidated affiliates under the equity method of accounting when we exercise significant influence, but do not maintain a controlling financial interest over the affiliates. We evaluate our investments in affiliates for impairment when there are indicators that the fair value of our investment may be less than our carrying value. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents include all highly liquid investments with original maturities of three months or less. |
Restricted Cash | Restricted Cash Restricted cash includes deposits received on VOI sales that are held in escrow until legal requirements of the local jurisdictions are met with regards to project construction or contract status and cash reserves required by our non-recourse debt agreements. |
Accounts Receivable and Allowance for Doubtful Accounts | Accounts Receivable and Allowance for Doubtful Accounts Accounts receivable primarily consists of trade receivables and is reported at the customers’ outstanding balances, less any allowance for doubtful accounts. An allowance for doubtful accounts is provided on accounts receivable when losses are probable based on historical collection activity and current business conditions. |
Timeshare Financing Receivables and Allowance for Financing Receivables Losses | Timeshare Financing Receivables and Allowance for Financing Receivables Losses Our timeshare financing receivables consist of loans related to our financing of VOI sales that are secured by the underlying timeshare properties. We determine our timeshare financing receivables to be past due based on the contractual terms of the individual mortgage loans. We recognize interest income on our timeshare financing receivables as earned. The interest rate charged on the notes correlates to the risk profile of the borrower at the time of purchase and the percentage of the purchase that is financed, among other factors. We record an estimate of variable consideration as a reduction of revenue from VOI sales at the time revenue is recognized on a VOI sale. We evaluate this portfolio collectively, since we hold a large group of homogeneous timeshare financing receivables, which are individually immaterial. We monitor the credit quality of our receivables on an ongoing basis. There are no significant concentrations of collection risk with any individual counterparty or groups of counterparties. We use a technique referred to as static pool analysis as the basis for determining our financing receivables losses reserve requirements on our timeshare financing receivables. The static pool analysis includes several years of default data through which we stratify our portfolio using certain key dimensions including: FICO scores and equity percentage at the time of sale. The adequacy of the related allowance is determined by management through analysis of several factors, such as current economic conditions and industry trends, as well as the specific risk characteristics of the portfolio including assumed default rates, aging and historical write-offs of these receivables. The allowance is maintained at a level deemed adequate by management based on a periodic analysis of the mortgage portfolio. We apply payments we receive for loans, including those in non-accrual status, to amounts due in the following order: servicing fees; interest; principal; and late charges. Once a note is 91 days past due we cease accruing interest and reverse the accrued interest recognized up to that point. We resume interest accrual for loans for which we had previously ceased accruing interest once the loan is less than 91 days past due. We fully reserve for a timeshare financing receivable in the month following the date that the loan is 121 days past due and, subsequently, we write off the uncollectible note against the reserve once the foreclosure process is complete and we receive the deed for the foreclosed unit. |
Inventory and Cost of Sales | Inventory and Cost of Sales Inventory includes unsold, completed VOIs; VOIs under construction; and land and infrastructure held for future VOI product development at our current resorts. We carry our completed VOI inventory at the lower of cost or estimated fair value, less costs to sell, which can result in impairment losses and/or recoveries of previous impairments. Projects under development, along with land and infrastructure for future development are under a held and use impairment model and are reviewed for indicators of impairment quarterly. We capitalize costs directly associated with the acquisition, development and construction of a real estate project when it is probable that the project will move forward. We capitalize salary and related costs only to the extent they directly relate to the project. We capitalize interest expense, taxes and insurance costs when activities that are necessary to get the property ready for its intended use are underway. We cease capitalization of costs during prolonged gaps in development when substantially all activities are suspended or when projects are considered substantially complete. We account for our VOI inventory and cost of VOI sales using the relative sales value method. Also, we do not reduce inventory for the cost of VOI sales related to anticipated defaults, and accordingly, no adjustment is made when inventory is reacquired upon default of the related receivable. This results in changes in estimates within the relative sales value calculations to be accounted for as real estate inventory true-ups, which we refer to as cost of sales true-ups, and are included in Cost of VOI sales |
Property and Equipment | Property and Equipment Property and equipment includes land, buildings and leasehold improvements and furniture and equipment at our corporate offices, sales centers and management offices which are recorded at cost. Additionally, certain property and equipment is held for future conversion into inventory. Construction in progress primarily relates to development activities. Costs that are capitalized related to development activities are classified as property and equipment until they are registered for sale. Costs of improvements that extend the economic life or improve service potential are also capitalized. Capitalized costs are depreciated over their estimated useful lives. Costs for normal repairs and maintenance are expensed as incurred. Other than the United States, there were no countries that individually represented over 10 percent of total property and equipment, net as of December 31, 2019 and 2018. Depreciation is recorded using the straight-line method over the assets’ estimated useful lives, which are generally as follows: buildings and improvements (eight to 40 years); furniture and equipment (three to eight years); and computer equipment and acquired software (three years). Leasehold improvements are depreciated over the shorter of the estimated useful life, based on the estimates above, or the lease term. We evaluate the carrying value of our property and equipment if there are indicators of potential impairment. We perform an analysis to determine the recoverability of the asset’s carrying value by comparing the expected undiscounted future cash flows to the net book value of the asset. If it is determined that the expected undiscounted future cash flows are less than the net book value of the asset, to the extent the net book value is in excess of fair value we recognize an impairment loss. Fair value is generally estimated using valuation techniques that consider the discounted cash flows of the asset using discount and capitalization rates deemed reasonable for the type of asset, as well as prevailing market conditions, appraisals, recent similar transactions in the market and, if appropriate and available, current estimated net sales proceeds from pending offers. If sufficient information exists to reasonably estimate the fair value of a conditional asset retirement obligation, including environmental remediation liabilities, we recognize the fair value of the obligation when the obligation is incurred. |
Leases | Leases We lease sales centers, office space and equipment under lease agreements. We determine if an arrangement is a lease at inception. Amounts related to operating leases are included in Operating lease right-of-use (“ROU”) assets, net Operating lease liabilities ROU assets and operating lease liabilities are recognized based on the present value of lease payments over the lease term as of the commencement date. Because most of our leases do not provide an explicit or implicit rate of return, we use our incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments on an individual lease basis. Our incremental borrowing rate for a lease is the rate of interest we would have to pay on a collateralized basis to borrow an amount equal to the lease payments for the asset under similar terms. We have lease agreements with lease and non-lease components. Our operating leases may require minimum rent payments, contingent rent payments based on a percentage of revenue or income or rental payments adjusted periodically for inflation or rent payments equal to the greater of a minimum rent or contingent rent. Our leases do not contain any residual value guarantees or material restrictive covenants. Leases with a lease term of 12 months or less are not recorded on the consolidated balance sheets and lease expense is recognized on a straight-line basis over the lease term. We monitor events or changes in circumstances that change the timing or amount of future lease payments which results in the remeasurement of a lease liability, with a corresponding adjustment to the ROU asset. ROU assets for operating and financing leases are periodically reviewed for impairment losses under ASC 360-10, Property, Plant, and Equipment |
Intangible Assets | Intangible Assets Our intangible assets consist of management agreements and certain proprietary technologies with finite lives. We have management agreements that were recorded at their fair value at the time of the completion of a merger on October 24, 2007 where Hilton became a wholly-owned subsidiary of an affiliate of The Blackstone Group L.P. (“Blackstone”). Additionally, we capitalize costs incurred to develop internal-use computer software, including costs incurred in connection with development of upgrades or enhancements that result in additional functionality. These capitalized costs are included in Intangible assets, net We review all finite life intangible assets for impairment when circumstances indicate that their carrying amounts may not be recoverable. If the carrying value of an asset group is not recoverable, we recognize an impairment loss for the excess of carrying value over the fair value in our consolidated statements of operations. |
Deferred Financing Costs | Deferred Financing Costs Deferred financing costs, including legal fees and upfront lenders fees, related to the Company’s debt and non-recourse debt are deferred and amortized over the life of the respective debt using the effective interest method. These capitalized costs are included in Other assets Debt, net Debt & Non-recourse debt |
Costs Incurred to Sell VOIs and Vacation Packages | Costs Incurred to Sell VOIs and Vacation Packages We expense indirect sales and marketing costs we incur to sell VOIs and vacation packageswhen incurred. Deferred selling expenses, which are direct selling costs related either to a contract for which revenue has not yet been recognized, were $19 million and $4 million as of December 31, 2019 and 2018, respectively, and were included in Other assets |
Fair Value Measurements-Valuation Hierarchy | Fair Value Measurements—Valuation Hierarchy Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants on the measurement date (an exit price). We use the three-level valuation hierarchy for classification of fair value measurements. The valuation hierarchy is based upon the transparency of inputs to the valuation of an asset or liability as of the measurement date. Inputs refer broadly to the assumptions that market participants would use in pricing an asset or liability. Inputs may be observable or unobservable. Observable inputs are inputs that reflect the assumptions market participants would use in pricing the asset or liability developed based on market data obtained from independent sources. Unobservable inputs are inputs that reflect our own assumptions about the data market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. The three-level hierarchy of inputs is summarized below: • Level 1—Valuation is based upon quoted prices (unadjusted) for identical assets or liabilities in active markets; • Level 2—Valuation is based upon quoted prices for similar assets and liabilities in active markets, or other inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the instrument; and • Level 3—Valuation is based upon unobservable inputs that are significant to the fair value measurement. The classification of assets and liabilities within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement in its entirety. |
Currency Translation and Remeasurement | Currency Translation and Remeasurement The United States dollar (“USD”) is our reporting currency and is the functional currency of the majority of our operations. For operations whose functional currency is not the USD, assets and liabilities measured in foreign currencies are translated into USD at the prevailing exchange rates in effect as of the financial statement date and the related gains and losses are reflected with Total Equity Other loss, net |
Share-Based Compensation Costs | Share-Based Compensation Costs Certain of our employees participate in our 2017 Omnibus Incentive Plan (the “Stock Plan”) which compensates eligible employees and directors with restricted stock units (“RSUs”), time and performance-vesting restricted stock units (“PSUs”) and nonqualified stock options (“options”). We record compensation expense based on the share-based awards granted to our employees. Share-based compensation awards issued prior to the spin-off have been converted to reflect the separation from Hilton. Upon the separation on January 3, 2017, holders of Hilton share-based awards received an adjusted award based on our shares. The adjustments were designed to generally preserve the fair value of each award before and after the separation. • RSUs vest in annual installments over three years from the date of grant, subject to the individual’s continued employment through the applicable vesting date. Vested RSUs generally will be settled for Hilton Grand Vacation’s common stock. The grant date fair value is equal to Hilton Grand Vacation’s closing stock price on the date of grant. • PSUs are settled at the end of a three-year • Options vest over three years in annual installments from the date of grant, subject to the individual’s continued employment through the applicable vesting date and will terminate 10 years from the date of grant or earlier on the unvested portion of an individual whose service was terminated. The exercise price is equal to the closing price of the Hilton Grand Vacation’s common stock on the date of grant. The grant date fair value is estimated using the Black-Scholes-Merton Model. We recognize the cost of services received in share-based payment transactions with employees as services are received and recognize a corresponding change in Total Equity |
Income Taxes | Income Taxes We account for income taxes using the asset and liability method. The objectives of accounting for income taxes are to recognize the amount of taxes payable or refundable for the current year, to recognize the deferred tax assets and liabilities that relate to tax consequences in future years, which result from differences between the respective tax basis of assets and liabilities and their financial reporting amounts, and tax loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates in effect for the year in which the respective temporary differences or operating loss or tax credit carryforwards are expected to be recovered or settled. The realization of deferred tax assets and tax loss and tax credit carryforwards is contingent upon the generation of future taxable income and other restrictions that may exist under the tax laws of the jurisdiction in which a deferred tax asset exists. Valuation allowances are provided to reduce such deferred tax assets to amounts more likely than not to be ultimately realized. We use a prescribed recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken in a tax return. For all income tax positions, we first determine whether it is “more-likely-than-not” that a tax position will be sustained upon examination, including resolution of any related appeals or litigation processes, based on the technical merits of the position. If it is determined that a position meets the more-likely-than-not recognition threshold, the benefit recognized in the financial statements is measured as the largest amount of benefit that is greater than 50 percent likely of being realized upon settlement. |
Earnings Per Share | Earnings Per Share Basic earnings per share (“EPS”) is calculated by dividing the earnings available to common shareholders by the weighted average number of common shares outstanding for the period. Diluted earnings per common share is calculated to give effect to all potentially dilutive common shares that were outstanding during the reporting period. |
Defined Contribution Plan | Defined Contribution Plan We administer and maintain a defined contribution plan for the benefit of all employees meeting certain eligibility requirements who elect to participate in the plan. Contributions are determined based on a specified percentage of salary deferrals by participating employees. We recognized compensation expense for our participating employees totaling $13 million and $10 million for the year ended December 31, 2019 and 2018, respectively. Prior to the year ended December 31, 2018, Hilton administrated the plan on our behalf. |
Reclassifications | Reclassifications Certain prior period amounts in the consolidated financial statements have been reclassified to conform to the current period presentation with no effect on previously reported total assets and total liabilities, net income or stockholders’ equity. |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements Adopted Accounting Standards On January 1, 2019, we adopted Accounting Standards Update (ASU) No. 2016-02, Leases Targeted Improvements i. to not reassess whether expired or existing contracts are or contain leases; ii. to not reassess lease classification for expired or existing leases; iii. to not reassess any initial direct costs for any existing leases; iv. to not reassess the existence of a lease for existing or expired land easements that were not previously accounted for as leases; v. to record short-term lease payments (less than 12 months) in profit and loss on a straight-line basis over the lease term and variable lease payments in the period in which the obligation for those payments is incurred; and vi. to not prospectively, and upon adoption, separate lease and non-lease components. ROU assets represent our right to use an underlying asset for the lease term and operating lease liabilities represent our obligation to make lease payments arising from the lease. ASC 842 had no impact on our consolidated statements of operations or on our consolidated statements of cash flows. Upon adoption, we recognized ROU assets of $68 million and operating lease liabilities of $80 million for our real estate and equipment operating leases on our consolidated balance sheets. Accounting Standards Not Yet Adopted In June 2016, the FASB issued ASU No. 2016-13, (“ASU 2016-13”), Financial Instruments-Credit Losses Measurement of Credit Losses on Financial Instruments In August 2018, the FASB issued ASU 2018-15 (“ASU 2018-15”), Customer’s Accounting Implementation Costs Incurred in a Cloud Computing Arrangement That is a Service Contract In January 2017, the FASB issued ASU 2017-03 (“ASU 2017-03”), Accounting Changes and Error Corrections (Topic 250) and Investments - Equity Method and Joint Ventures (Topic 323) In August 2018, the FASB issued ASU 2018-13 (“ASU 2018-13”), Fair Value Measurement (Topic 8420): Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement.” In December 2019, the FASB issued ASU 2019-12 (“ASU 2019-12”), Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Revenue From Contract With Customer [Abstract] | |
Schedule of Disaggregated Revenues by Segment from Contracts with Customers | The following tables show our disaggregated revenues by segment from contracts with customers. We operate our business in the following two segments: (i) Real estate sales and financing Resort operations and club management Business Segments Year Ended December 31, ($ in millions) 2019 2018 2017 Real Estate and Financing Segment Sales of VOIs, net $ 509 $ 734 $ 548 Sales, marketing, brand and other fees 573 570 544 Interest income 147 140 132 Other financing revenue 23 18 15 Real estate and financing segment revenues $ 1,252 $ 1,462 $ 1,239 Year Ended December 31, ($ in millions) 2019 2018 2017 Resort Operations and Club Management Segment Club management $ 125 $ 112 $ 99 Resort management 66 60 59 Rental 201 191 156 Ancillary services 26 27 23 Resort operations and club management segment revenues $ 418 $ 390 $ 337 |
Schedule of Accounts Receivable and Contract Asset from Contracts with Customers and Composition of Contract Liabilities | The following table provides information on our accounts receivable with customers which are included in Accounts Receivable, net December 31, ($ in millions) 2019 2018 Receivables $ 129 $ 122 The following table presents changes in our contract liabilities for the year ended December 31, 2019. December 31 ($ in millions) 2019 2018 Contract liabilities: Advanced deposits $ 115 $ 101 Deferred Sales of VOIs of projects under construction 84 — Club activation fees, annual dues and other 86 72 Club Bonus Point incentive liability (1) 59 56 ( 1 ) Amounts related to the Club Bonus Point incentive liability are included in Accounts payable, accrued expenses and other |
Schedule of Remaining Transaction Price Related to Advanced Deposits Club Activation Fees and Club Bonus Points | The following table includes the remaining transaction price related to Advanced deposits, Club activation fees and Club Bonus Points as of December 31, 2019: ($ in millions) Remaining Transaction Price Recognition Period Recognition Method Advanced deposits $ 115 18 months Upon customer stays Club activation fees 71 7 years Straight-line basis over average inventory holding period Club Bonus Points 59 24 months Upon redemption |
Restricted Cash (Tables)
Restricted Cash (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Cash And Cash Equivalents [Abstract] | |
Schedule of Restricted Cash | Restricted cash was as follows: December 31, ($ in millions) 2019 2018 Escrow deposits on VOI sales $ 59 $ 45 Reserves related to non-recourse debt 26 27 $ 85 $ 72 |
Timeshare Financing Receivabl_2
Timeshare Financing Receivables (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Receivables [Abstract] | |
Schedule of financing receivables | Timeshare financing receivables were as follows: December 31, 2019 ($ in millions) Securitized and Pledged Unsecuritized (1) Total Timeshare financing receivables $ 758 $ 582 $ 1,340 Less: allowance for financing receivables losses (54 ) (130 ) (184 ) $ 704 $ 452 $ 1,156 December 31, 2018 ($ in millions) Securitized and Pledged Unsecuritized (1) Total Timeshare financing receivables $ 660 $ 632 $ 1,292 Less: allowance for financing receivables losses (43 ) (129 ) (172 ) $ 617 $ 503 $ 1,120 (1) |
Schedule of future payments due from financing receivables | Our timeshare financing receivables as of December 31, 2019 mature as follows: ($ in millions) Securitized and Pledged Unsecuritized Total Year 2020 $ 95 $ 55 $ 150 2021 96 47 143 2022 97 51 148 2023 97 55 152 2024 97 58 155 Thereafter 276 316 592 758 582 1,340 Less: allowance for financing receivables losses (54 ) (130 ) (184 ) $ 704 $ 452 $ 1,156 |
Schedule of financing receivables by average FICO score | Our gross timeshare financing receivables balances by average FICO score were as follows: December 31, ($ in millions) 2019 2018 FICO score 700+ $ 818 $ 790 600-699 292 280 <600 39 37 No score (1) 191 185 $ 1,340 $ 1,292 (1) Timeshare financing receivables without a FICO score are primarily related to foreign borrowers. |
Schedule of past due financing receivables | The following tables detail an aged analysis of our gross timeshare financing receivables balance: December 31, 2019 ($ in millions) Securitized and Pledged Unsecuritized Total Current $ 743 $ 502 $ 1,245 31 - 90 days past due 9 12 21 91 - 120 days past due 3 4 7 121 days and greater past due 3 64 67 $ 758 $ 582 $ 1,340 December 31, 2018 ($ in millions) Securitized and Pledged Unsecuritized Total Current $ 648 $ 556 $ 1,204 31 - 90 days past due 8 11 19 91 - 120 days past due 3 3 6 121 days and greater past due 1 62 63 $ 660 $ 632 $ 1,292 |
Schedule of change in allowance for financing receivables losses | The changes in our allowance for financing receivables losses were as follows: ($ in millions) Securitized and Pledged Unsecuritized Total December 31, 2016 $ 9 $ 111 $ 120 Write-offs — (37 ) (37 ) Securitizations 28 (28 ) — Provision for financing receivables losses (1) (10 ) 68 58 December 31, 2017 27 114 141 Write-offs — (38 ) (38 ) Securitizations 28 (28 ) — Provision for financing receivables losses (1) (12 ) 81 69 December 31, 2018 43 129 172 Write-offs — (62 ) (62 ) Securitizations 27 (27 ) — Provision for financing receivables losses (1) (16 ) 90 74 December 31, 2019 $ 54 $ 130 $ 184 (1) Includes incremental provision for financing receivables losses, net of activity related to the repurchase of defaulted and upgraded securitized timeshare financing receivables. |
Inventory (Tables)
Inventory (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory | Our Inventory was comprised of the following: December 31, ($ in millions) 2019 2018 Completed unsold VOIs $ 241 $ 243 Construction in process 59 9 Land, infrastructure and other 258 275 $ 558 $ 527 |
Schedule of expense incurred when customers upgrade existing ownership to fee-for-service project | Shown below are (i) costs of sales true-ups relating to VOI products and the related impacts to the carrying value of inventory and (ii) expenses incurred, recorded in Cost of VOI sales, related to granting credit to customers for their existing ownership when upgrading into fee-for-service projects. December 31, ($ in millions) 2019 2018 2017 Cost of sales true-ups (1) $ 14 $ 10 $ 4 Cost of VOI sales related to fee-for-service upgrades 31 34 36 (1) Cost of sales true ups reduced costs of VOI sales and increased inventory in all periods presented. |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Property Plant And Equipment [Abstract] | |
Schedule of Property and Equipment and Related Depreciation Expenses | Property and equipment were as follows: December 31, ($ in millions) 2019 2018 Land $ 154 $ 268 Buildings and leasehold improvements 286 295 Furniture and equipment 65 54 Construction in progress 383 25 888 642 Accumulated depreciation (110 ) (83 ) $ 778 $ 559 |
Consolidated Variable Interes_2
Consolidated Variable Interest Entities (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Schedule of Consolidated Variable Interest Entities | Our consolidated balance sheets included the assets and liabilities of these entities, which primarily consisted of the following: December 31, ($ in millions) 2019 2018 Restricted cash $ 26 $ 23 Timeshare financing receivables, net 704 617 Non-recourse debt (1) 747 639 (1) Net of deferred financing costs. |
Intangible Assets (Tables)
Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets and Related Amortization Expense | Intangible assets and related amortization expense were as follows: December 31, 2019 ($ in millions) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Management agreements $ 88 $ (46 ) $ 42 Capitalized software 95 (48 ) 47 $ 183 $ (94 ) $ 89 December 31, 2018 ($ in millions) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Management agreements $ 88 $ (41 ) $ 47 Capitalized software 71 (37 ) 34 $ 159 $ (78 ) $ 81 |
Schedule of Estimated Future Amortization Expense | As of December 31, 2019, we estimated our future amortization expense for our amortizing intangible assets to be as follows: ($ in millions) Future Amortization Expense Year 2020 $ 25 2021 21 2022 13 2023 3 2024 3 Thereafter 24 $ 89 |
Other Assets (Tables)
Other Assets (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract] | |
Schedule of Other Assets | Other assets were as follows: December 31, ($ in millions) 2019 2018 Inventory deposits $ 7 $ 46 Deferred selling, marketing, general and administrative expenses 12 — Prepaid expenses 13 18 Other 36 31 $ 68 $ 95 |
Accounts Payable, Accrued Exp_2
Accounts Payable, Accrued Expenses and Other (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Payables And Accruals [Abstract] | |
Summary of Accounts Payable, Accrued Expenses and Other | Accounts payable, accrued expenses and other were as follows: December 31, ($ in millions) 2019 2018 Accrued employee compensation and benefits $ 77 $ 86 Accounts payable 24 51 Bonus point incentive liability 59 56 Due to Hilton 19 20 Income taxes payable 8 7 Other accrued expenses 111 104 $ 298 $ 324 |
Deferred Revenues (Tables)
Deferred Revenues (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Revenue From Contract With Customer [Abstract] | |
Schedule of Deferred Revenues | Deferred revenues were as follows: December 31, ($ in millions) 2019 2018 Deferred VOI sales $ 100 $ 19 Club activation fees 71 63 Other 15 13 $ 186 $ 95 |
Debt & Non-recourse Debt (Table
Debt & Non-recourse Debt (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Outstanding Borrowings | The following table details our outstanding debt balance and its associated interest rates: December 31 ($ in millions) 2019 2018 Debt (1) Senior secured credit facilities: Term loans with an average rate of 3.513%, due 2023 $ 187 $ 197 Revolver with an average rate of 3.513%, due 2023 320 115 Senior notes with a rate of 6.125%, due 2024 300 300 Other debt 27 — 834 612 Less: unamortized deferred financing costs and discount (2)(3) (6 ) (8 ) $ 828 $ 604 (1) As of December 31, 2019 and 2018, weighted-average interest rates were 4.571 percent and 5.170 percent, respectively. (2) (3) Amount does not include deferred financing costs of $5 and $6 million as of December 31, 2019 and 2018, respectively, relating to our revolving facility included in Other Assets The following table details our outstanding non-recourse debt balance and its associated interest rates: December 31 ($ in millions) 2019 2018 Non-recourse debt (1) Timeshare Facility with an average rate of 3.164%, due 2021 $ — $ 120 Securitized Debt with a rate of 2.280%, due 2026 — 33 Securitized Debt with an average rate of 1.810%, due 2026 46 74 Securitized Debt with an average rate of 2.711%, due 2028 149 206 Securitized Debt with an average rate of 3.602%, due 2032 275 333 Securitized Debt with an average rate of 2.421%, due 2033 285 — 755 766 Less: unamortized deferred financing costs (2) (8 ) (7 ) $ 747 $ 759 (1) As of December 31, 2019 and 2018, weighted-average interest rates were 2.876 percent and 3.126 percent, respectively. (2) Amount relates to Securitized Debt only and does not include deferred financing costs of $3 Other Assets |
Schedule of Contractual Maturities of Debt | The contractual maturities of our debt and non-recourse debt as of December 31, 2019 were as follows: ($ in millions) Debt Non-recourse Debt Total Year 2020 $ 12 $ 242 $ 254 2021 11 166 177 2022 11 113 124 2023 477 109 586 2024 300 42 342 Thereafter 23 83 106 $ 834 $ 755 $ 1,589 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Schedule of Carrying and Estimated Fair Value Amounts | The carrying amounts and estimated fair values of our financial assets and liabilities were as follows: December 31, 2019 Hierarchy Level ($ in millions) Carrying Amount Level 1 Level 3 Assets: Timeshare financing receivables (1) $ 1,156 $ — $ 1,446 Liabilities: Debt (2) 828 326 544 Non-recourse debt (2) 747 — 749 (1) Carrying amount net of allowance for financing receivables losses. (2) Carrying amount net of unamortized deferred financing costs and discount. December 31, 2018 Hierarchy Level ($ in millions) Carrying Amount Level 1 Level 3 Assets: Timeshare financing receivables (1) $ 1,120 $ — $ 1,339 Liabilities: Debt (2) 604 302 309 Non-recourse debt (2) 759 — 753 (1) Carrying amount net of allowance for financing receivables losses. (2) Carrying amount net of unamortized deferred financing costs and discount. |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Schedule of Rent Expense | Rent expense for all operating leases for the year ended December 31, 2019, 2018 and 2017 was as follows: Year Ended December 31, ($ in millions) 2019 2018 2017 Minimum rentals $ 19 $ 21 $ 17 Contingent rentals 2 3 3 $ 21 $ 24 $ 20 |
Schedule of Supplemental Information Related to Operating Leases | Supplemental information related to operating leases for the year ending December 31, 2019: ($ in millions) Cash paid for amounts included in the measurement of operating lease liabilities: Operating cash flows from operating leases $ 16 Supplemental non-cash information: Right-of-use assets obtained in exchange for new operating lease liabilities 10 Weighted-average remaining lease term of operating leases 6.1 years Weighted-average discount rate of operating leases 5.34 % |
Future Minimum Lease Payments Under Non-Cancelable Operating Leases | The future minimum rent payments under non-cancelable operating leases, due in each of the next five years and thereafter as of December 31, 2019, were as follows: ($ in millions) Operating Leases Year 2020 $ 17 2021 16 2022 12 2023 12 2024 11 Thereafter 22 Total future minimum lease payments $ 90 Less: imputed interest (14 ) Present value of lease liabilities $ 76 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Before Income Taxes | The domestic and foreign components of income before taxes were as follows: Year Ended December 31, ($ in millions) 2019 2018 2017 U.S. income before tax $ 234 $ 380 $ 283 Foreign income before tax 39 23 28 Income before taxes $ 273 $ 403 $ 311 |
Schedule of Components of Provision for Income Taxes | The components of our provision for income taxes were as follows: Year Ended December 31, ($ in millions) 2019 2018 2017 Current: Federal $ 37 $ 62 $ 94 State 9 15 11 Foreign 8 8 8 Total current 54 85 113 Deferred: Federal 3 17 (137 ) State 1 4 8 Foreign (1 ) (1 ) — Total deferred 3 20 (129 ) Total provision for income taxes $ 57 $ 105 $ (16 ) |
Schedule of Effective Income Tax Rate Reconciliation | Reconciliations of our tax provision at the U.S. statutory rate to the provision for income taxes were as follows: Year Ended December 31, ($ in millions) 2019 2018 2017 Statutory U.S. federal income tax provision $ 57 $ 85 $ 109 State and local income taxes, net of U.S. federal tax benefit 11 19 12 Impact of foreign operations 1 2 — Interest on installment sales, net of U.S. federal tax benefit 4 3 3 Interest on installment sales adjustment — — (5 ) Effects of the TCJ Act — (4 ) (133 ) Tax accounting method change (18 ) — — Other 2 — (2 ) Provision for income taxes $ 57 $ 105 $ (16 ) |
Schedule of Compositions of Net Deferred Tax Balances | The compositions of net deferred tax balances were as follows: December 31, ($ in millions) 2019 2018 Deferred income tax assets $ 2 $ 1 Deferred income tax liabilities (259 ) (255 ) Net deferred taxes $ (257 ) $ (254 ) |
Schedule of Tax Effects of Temporary Differences and Carryforwards of Our Net Deferred Tax Liability | The tax effects of the temporary differences and carryforwards that give rise to our net deferred tax liability were as follows: December 31, ($ in millions) 2019 2018 Deferred tax assets: Compensation $ 12 $ 11 Domestic tax loss and credit carryforwards 4 2 Foreign tax loss carryforwards 1 — Other reserves 86 57 103 70 Valuation allowance (4 ) (2 ) Deferred tax assets 99 68 Deferred tax liabilities: Property and equipment (87 ) (46 ) Amortizable intangible assets (9 ) (10 ) Deferred income (259 ) (266 ) Other liabilities (1 ) — Deferred tax liabilities (356 ) (322 ) Net deferred taxes $ (257 ) $ (254 ) |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Schedule of Restricted Stock Unit Grants | The following table provides information about our RSU grants for the last three fiscal years: Year Ended December 31, 2019 2018 2017 Number of shares granted 500,925 378,069 534,329 Weighted average grant date fair value per share $ 33.07 $ 42.63 $ 29.23 Fair value of shares vested (in millions) $ 10 $ 13 $ 11 |
Schedule of Restricted Stock Units Activity | The following table summarizes the activity of our RSUs during the year ended December 31, 2019: Number of Shares Weighted Average Grant Date Fair Value Outstanding, beginning of period 743,382 $ 34.31 Granted 500,925 33.07 Vested (323,638 ) 31.76 Forfeited (95,078 ) 35.15 Outstanding, end of period 825,591 34.46 |
Schedule of Stock Option Grants | The following table provides information about our option grants for the last three fiscal years: Year Ended December 31, 2019 2018 2017 Number of options granted 544,209 312,141 669,658 Weighted average exercise price per share $ 33.32 $ 46.48 $ 28.30 Weighted average grant date fair value per share $ 12.29 $ 14.78 $ 8.66 |
Schedule of Stock Option Valuation Assumptions | The grant date fair value of each of these options was determined using the Black-Scholes-Merton option-pricing model with the following assumptions: Year Ended December 31, 2019 2018 2017 Expected volatility (1) 33.1 % 26.6 % 26.3 % Dividend yield (2) — % — % — % Risk-free rate (3) 2.6 % 2.7 % 2.3 % Expected term (in years) (4) 6.0 6.0 6.0 (1) Due to limited trading history for our common stock, we did not have sufficient information available on which to base a reasonable and supportable estimate of the expected volatility of its share price. As a result, we used an average historical volatility of our peer group over a time period consistent with its expected term assumption. Our peer group was determined based upon companies in our industry with similar business models and is consistent with those used to benchmark our executive compensation. (2) At the date of grant we had no plans to pay dividends during the expected term of these options. (3) Based on the yields of U.S. Department of Treasury instruments with similar expected lives. (4) Estimated using the average of the vesting periods and the contractual term of the options. |
Schedule of Stock Options Activity | As of December 31, 2019, we had 617,419 Options outstanding that were exercisable. The following table summarizes the activity of our options during the year ended December 31, 2019: Number of Shares Weighted Average Exercise Price Per Share Outstanding, beginning of period 1,106,672 $ 31.14 Granted 544,209 33.32 Exercised (23,486 ) 26.03 Forfeited, canceled or expired (86,313 ) 36.79 Outstanding, end of period 1,541,082 31.67 Exercisable, end of period 617,419 27.61 |
Schedule of Performance Stock Units Activity | The following table summarizes the activity of our Performance RSUs during the year ended December 31, 2019: Adjusted EBITDA (1) Contract Sales Number of Shares Weighted Average Grant Date Fair Value per Share Number of Shares Weighted Average Grant Date Fair Value per Share Outstanding, beginning of period 57,301 $ 42.46 24,552 $ 42.46 Granted 93,566 33.32 40,094 33.32 Vested — — — — Forfeited, canceled or expired — — — — Outstanding, end of period 150,867 36.79 64,646 36.79 (1) Represents our Adjusted EBITDA metric described in Part 1 of this Form 10-K, further adjusted by net recognition and deferral activity from sales of VOIs under construction. |
Performance Shares | Adjusted EBITDA | |
Schedule Of Performance Stock Unit Grants | The following table provides information about our Performance RSU grants, which is based on our Adjusted EBITDA metric described in Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations Year Ended December 31, 2019 2018 2017 Number of shares granted 93,566 64,809 — Weighted average grant date fair value per share $ 33.32 $ 42.94 $ — |
Performance Shares | Contract Sales | |
Schedule Of Performance Stock Unit Grants | The following table provides information about our Performance RSU grants, which is based on contract sales as defined in Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations Year Ended December 31, 2019 2018 2017 Number of shares granted 40,094 27,769 — Weighted average grant date fair value per share $ 33.32 $ 42.94 $ — |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The following table presents the calculation of our basic and diluted earnings per share (“EPS”). Year Ended December 31, ($ in millions, except per share amounts) 2019 2018 2017 Basic EPS Numerator: Net Income (1) $ 216 $ 298 $ 327 Denominator: Weighted average shares outstanding 89 97 99 Basic EPS $ 2.43 $ 3.07 $ 3.30 Diluted EPS Numerator: Net Income (1) $ 216 $ 298 $ 327 Denominator: Weighted average shares outstanding 89 98 100 Diluted EPS $ 2.42 $ 3.05 $ 3.28 (1) Net income for years ended December 31, 2019, 2018, and 2017 was $215,695,961; $298,124,983 and $326,777,744, respectively. |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
BRE Ace LLC | |
Related Party Transaction [Line Items] | |
Summary of Amounts Included in Condensed Consolidated Statements of Operations Related to Fee for Service Arrangement | These amounts are summarized in the following table and are included in our consolidated statements of operations as of the date they became related parties. December 31, ($ in millions) 2019 2018 2017 Equity in earnings from unconsolidated affiliates $ 4 $ — $ 1 Commission and other fees 136 132 79 |
Business Segments (Tables)
Business Segments (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Schedule of Segment Operating Performance Reconciled to Consolidated Amounts | We do not include equity in earnings (losses) from unconsolidated affiliates in our measures of segment operating performance. The following table presents revenues for our reportable segments reconciled to consolidated amounts: Year Ended December 31, ($ in millions) 2019 2018 2017 Revenues: Real estate sales and financing $ 1,252 $ 1,462 $ 1,239 Resort operations and club management (1) 454 422 367 Total segment revenues 1,706 1,884 1,606 Cost reimbursements 168 147 135 Intersegment eliminations (1)(2) (36 ) (32 ) (30 ) Total revenues $ 1,838 $ 1,999 $ 1,711 (1) Includes charges to the real estate sales and financing segment from the resort operations and club management segment for fulfillment of discounted marketing package stays at resorts. These charges totaled $35 million, $31 million and $29 million for the years ended December 31, 2019, 2018 and 2017, respectively. (2) Includes charges to the real estate sales and financing segment from the resort operations and club management segment for the rental of model units to show prospective buyers. These charges totaled less than $2 million for the year ended December 31, 2019 and less than $1 million for each of the years ended December 31, 2018 and 2017, respectively |
Schedule of Adjusted EBITDA Reconciled to Net Income | The following table presents Adjusted EBITDA for our reportable segments reconciled to net income: Year Ended December 31, ($ in millions) 2019 2018 2017 Adjusted EBITDA: Real estate sales and financing (1) $ 325 $ 447 $ 359 Resort operations and club management (1) 265 245 204 Segment Adjusted EBITDA 590 692 563 General and administrative (111 ) (117 ) (104 ) Depreciation and amortization (51 ) (36 ) (29 ) License fee expense (101 ) (98 ) (87 ) Other loss, net (3 ) (1 ) — Interest expense (43 ) (30 ) (27 ) Income tax (expense) benefit (2) (57 ) (105 ) 16 Equity in earnings from unconsolidated affiliates (3) 4 — 1 Other adjustment items (12 ) (7 ) (6 ) Net income $ 216 $ 298 $ 327 (1) (2) On December 22, 2017, the United States enacted tax reform legislation, the TCJ Act, resulting in significant modifications to existing law which resulted in a reduction in income tax expense for the year ended December 31, 2017. See Note 17: Income Taxes ( 3 ) Investment in Unconsolidated Affiliates |
Schedule of Assets Reconciled to Consolidated Amounts | The following table presents total assets for our reportable segments, reconciled to consolidated amounts: December 31, ($ in millions) 2019 2018 Real estate sales and financing $ 2,753 $ 2,501 Resort operations and club management 196 172 Total segment assets 2,949 2,673 Corporate 130 80 Total assets $ 3,079 $ 2,753 |
Schedule of Capital Expenditures for Property and Equipment Reconciled to Consolidated Amounts | The following table presents capital expenditures for property and equipment for our reportable segments, reconciled to consolidated amounts: December 31, ($ in millions) 2019 2018 2017 Real estate sales and financing $ 19 $ 36 $ 28 Resort operations and club management 5 — 2 Total segment capital expenditures for property and equipment 24 36 30 Corporate 13 8 5 Total capital expenditures for property and equipment $ 37 $ 44 $ 35 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Commitments And Contingencies Disclosure [Abstract] | |
Schedule of Remaining Purchase Obligations | As of December 31, 2019, our remaining obligation pursuant to these arrangements was expected to be incurred as follows: ($ in millions) 2020 2021 2022 2023 2024 Thereafter Total Inventory purchase obligations $ 84 $ 221 $ 56 $ 58 $ 40 $ 14 $ 473 Other commitments (1) 15 8 2 — — — 25 Total $ 99 $ 229 $ 58 $ 58 $ 40 $ 14 $ 498 |
Condensed Consolidating Guara_2
Condensed Consolidating Guarantor Financial Information (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Schedule of Condensed Consolidating Guarantor Balance Sheets | The following schedules present the condensed consolidating financial information as of December 31, 2019 and 2018 and for the years ended December 31, 2019, 2018 and 2017, for the Parent, Subsidiary Issuers, Guarantors and Non-Guarantors. December 31, 2019 ($ in millions) Parent Issuers Guarantors Non- Guarantors Eliminations Total ASSETS Cash and cash equivalents $ 2 $ — $ 33 $ 32 $ — $ 67 Restricted cash — — 59 26 — 85 Accounts receivable, net — — 192 52 (70 ) 174 Timeshare financing receivables, net — — 449 707 — 1,156 Inventory — — 524 34 — 558 Property and equipment, net — — 718 60 — 778 Operating lease right-of-use assets, net — — 58 2 — 60 Investments in unconsolidated affiliates — — 44 — — 44 Intangible assets, net — — 89 — — 89 Other assets — 5 52 11 — 68 Investments in subsidiaries 568 1,364 136 — (2,068 ) — TOTAL ASSETS $ 570 $ 1,369 $ 2,354 $ 924 $ (2,138 ) $ 3,079 LIABILITIES AND EQUITY Accounts payable, accrued expenses and other $ — $ — $ 329 $ 39 $ (70 ) $ 298 Advance deposits — — 115 — — 115 Debt, net — 801 27 — — 828 Non-recourse debt, net — — — 747 — 747 Operating lease liabilities — — 74 2 — 76 Deferred revenues — — 186 — — 186 Deferred income tax liabilities — — 259 — — 259 Total equity 570 568 1,364 136 (2,068 ) 570 TOTAL LIABILITIES AND EQUITY $ 570 $ 1,369 $ 2,354 $ 924 $ (2,138 ) $ 3,079 December 31, 2018 ($ in millions) Parent Issuers Guarantors Non- Guarantors Eliminations Total ASSETS Cash and cash equivalents $ 4 $ — $ 89 $ 15 $ — $ 108 Restricted cash — — 45 27 — 72 Accounts receivable, net — — 157 17 (21 ) 153 Timeshare financing receivables, net — — 209 911 — 1,120 Inventory — — 502 25 — 527 Property and equipment, net — — 553 6 — 559 Investment in unconsolidated affiliate — — 38 — — 38 Intangible assets, net — — 81 — — 81 Other assets — 6 41 48 — 95 Investments in subsidiaries 612 1,210 277 — (2,099 ) — TOTAL ASSETS $ 616 $ 1,216 $ 1,992 $ 1,049 $ (2,120 ) $ 2,753 LIABILITIES AND EQUITY Accounts payable, accrued expenses and other $ — $ — $ 332 $ 13 $ (21 ) $ 324 Advance deposits — — 101 — — 101 Debt, net — 604 — — — 604 Non-recourse debt, net — — — 759 — 759 Deferred revenues — — 95 — — 95 Deferred income tax liabilities — — 254 — — 254 Total equity 616 612 1,210 277 (2,099 ) 616 TOTAL LIABILITIES AND EQUITY $ 616 $ 1,216 $ 1,992 $ 1,049 $ (2,120 ) $ 2,753 |
Schedule of Condensed Consolidating Guarantor Statements of Operations | For the Year Ended December 31, 2019 ($ in millions) Parent Issuers Guarantors Non- Guarantors Eliminations Total Revenues Sales of VOIs, net $ — $ — $ 409 $ 100 $ — $ 509 Sales, marketing, brand and other fees — — 632 7 (66 ) 573 Financing — — 77 101 (8 ) 170 Resort and club management — — 190 1 — 191 Rental and ancillary services — — 224 3 — 227 Cost reimbursements — — 164 4 — 168 Total revenues — — 1,696 216 (74 ) 1,838 Expenses Cost of VOI sales — — 107 20 — 127 Sales and marketing — — 719 66 (66 ) 719 Financing — — 19 42 (8 ) 53 Resort and club management — — 46 — — 46 Rental and ancillary services — — 142 5 — 147 General and administrative — — 111 — — 111 Depreciation and amortization — — 50 1 — 51 License fee expense — — 100 1 — 101 Cost reimbursements — — 164 4 — 168 Total operating expenses — — 1,458 139 (74 ) 1,523 Interest expense — (43 ) — — — (43 ) Dividends from subsidiary 281 281 — — (562 ) — Equity in earnings from unconsolidated affiliates — — 4 — — 4 Other loss, net — — (3 ) — — (3 ) Income before income taxes 281 238 239 77 (562 ) 273 Income tax expense — — (56 ) (1 ) — (57 ) Income before equity in earnings from subsidiaries 281 238 183 76 (562 ) 216 Equity in (losses) earnings from subsidiaries (65 ) 259 77 — (271 ) — Net income $ 216 $ 497 $ 260 $ 76 $ (833 ) $ 216 For the Year Ended December 31, 2018 ($ in millions) Parent Issuers Guarantors Non- Guarantors Eliminations Total Revenues Sales of VOIs, net $ — $ — $ 716 $ 18 $ — $ 734 Sales, marketing, brand and other fees — — 578 4 (12 ) 570 Financing — — 70 95 (7 ) 158 Resort and club management — — 172 — — 172 Rental and ancillary services — — 216 2 — 218 Cost reimbursements — — 143 4 — 147 Total revenues — — 1,895 123 (19 ) 1,999 Expenses Cost of VOI sales — — 208 2 — 210 Sales and marketing — — 725 15 (12 ) 728 Financing — — 19 37 (7 ) 49 Resort and club management — — 47 — — 47 Rental and ancillary services — — 130 3 — 133 General and administrative — — 116 1 — 117 Depreciation and amortization — — 36 — — 36 License fee expense — — 98 — — 98 Cost reimbursements — — 143 4 — 147 Total operating expenses — — 1,522 62 (19 ) 1,565 Interest expense — (30 ) — — — (30 ) Other loss, net — — (1 ) — — (1 ) Income (loss) before income taxes — (30 ) 372 61 — 403 Income tax expense — — (105 ) — — (105 ) Income (loss) before equity in earnings (loss) from subsidiaries — (30 ) 267 61 — 298 Equity in earnings from subsidiaries 298 328 61 — (687 ) — Net income $ 298 $ 298 $ 328 $ 61 $ (687 ) $ 298 For the Year Ended December 31, 2017 ($ in millions) Parent Issuers Guarantors Non- Guarantors Eliminations Total Revenues Sales of VOIs, net $ — $ — $ 518 $ 30 $ — $ 548 Sales, marketing, brand and other fees — — 545 3 (4 ) 544 Financing — — 71 83 (7 ) 147 Resort and club management — — 156 2 — 158 Rental and ancillary services — — 177 2 — 179 Cost reimbursements — — 131 4 — 135 Total revenues — — 1,598 124 (11 ) 1,711 Expenses Cost of VOI sales — — 145 3 — 148 Sales and marketing — — 650 17 (4 ) 663 Financing — — 19 31 (7 ) 43 Resort and club management — — 41 2 — 43 Rental and ancillary services — — 120 2 — 122 General and administrative — — 101 3 — 104 Depreciation and amortization — — 29 — — 29 License fee expense — — 87 — — 87 Cost reimbursements — — 131 4 — 135 Total operating expenses — — 1,323 62 (11 ) 1,374 Interest expense — (27 ) — — — (27 ) Equity in earnings from unconsolidated affiliate — — 1 — — 1 Income (loss) before income taxes — (27 ) 276 62 — 311 Income tax benefit (expense) — — 18 (2 ) — 16 Income (loss) before equity in earnings (loss) from subsidiaries — (27 ) 294 60 — 327 Equity in earnings from subsidiaries 327 354 60 — (741 ) — Net income $ 327 $ 327 $ 354 $ 60 $ (741 ) $ 327 |
Schedule of Condensed Consolidating Guarantor Statements of Cash Flows | For the Year Ended December 31, 2019 ($ in millions) Parent Issuers Guarantors Non- Guarantors Eliminations Total Operating Activities Net cash provided by (used in) operating activities $ 216 $ 498 $ (7 ) $ 253 $ (815 ) $ 145 Investing Activities Capital expenditures for property and equipment — — (33 ) (4 ) — (37 ) Software capitalization costs — — (26 ) — — (26 ) Investments in unconsolidated affiliates — — (2 ) — — (2 ) Dividends from subsidiary 281 281 — — (562 ) — Net cash provided by (used in) investing activities 281 281 (61 ) (4 ) (562 ) (65 ) Financing Activities Issuance of debt — 485 — — — 485 Issuance of non-recourse debt — — — 365 — 365 Repayment of debt — (290 ) — — — (290 ) Repayment of non-recourse debt — — — (376 ) — (376 ) Debt issuance costs — — — (6 ) — (6 ) Repurchase and retirement of common stock (283 ) — — — — (283 ) Payment of withholding taxes on vesting of restricted stock units (4 ) — — — — (4 ) Proceeds from employee stock plan purchases 3 — — — — 3 Other financing activity — — (2 ) — — (2 ) Intercompany transfers (215 ) (974 ) 28 (216 ) 1,377 — Net cash (used in) provided by financing activities (499 ) (779 ) 26 (233 ) 1,377 (108 ) Net (decrease) increase in cash, cash equivalents and restricted cash (2 ) — (42 ) 16 — (28 ) Cash, cash equivalents and restricted cash, beginning of period 4 — 134 42 — 180 Cash, cash equivalents and restricted cash, end of period $ 2 $ — $ 92 $ 58 $ — $ 152 For the Year Ended December 31, 2018 ($ in millions) Parent Issuers Guarantors Non- Guarantors Eliminations Total Operating Activities Net cash (used in) provided by operating activities $ — $ (28 ) $ 163 $ (291 ) $ (3 ) $ (159 ) Investing Activities Capital expenditures for property and equipment — — (37 ) (7 ) — (44 ) Software capitalization costs — — (19 ) — — (19 ) Return of investment from unconsolidated affiliates — — 11 — — 11 Investment in unconsolidated affiliates — — (10 ) — — (10 ) Net cash used in investing activities — — (55 ) (7 ) — (62 ) Financing Activities Issuance of debt — 530 — — — 530 Issuance of non-recourse debt — — — 663 — 663 Repayment of debt — (408 ) — — — (408 ) Repayment of non-recourse debt — — — (485 ) — (485 ) Debt issuance costs — (7 ) — (5 ) — (12 ) Repurchase and retirement of common stock — (183 ) — — — (183 ) Payment of withholding taxes on vesting of restricted stock units — (4 ) — — — (4 ) Capital contribution — 3 — — — 3 Intercompany transfers 4 97 (233 ) 129 3 — Net cash provided by (used in) financing activities 4 28 (233 ) 302 3 104 Net increase (decrease) in cash, cash equivalents and restricted cash 4 — (125 ) 4 — (117 ) Cash, cash equivalents and restricted cash, beginning of period — — 259 38 — 297 Cash, cash equivalents and restricted cash, end of period $ 4 $ — $ 134 $ 42 $ — $ 180 For the Year Ended December 31, 2017 ($ in millions) Parent Issuers Guarantors Non- Guarantors Eliminations Total Operating Activities Net cash (used in) provided by operating activities $ — $ (27 ) $ 156 $ 235 $ (8 ) $ 356 Investing Activities Capital expenditures for property and equipment — — (33 ) (2 ) — (35 ) Software capitalization costs — — (12 ) — — (12 ) Investment in unconsolidated affiliate — — (40 ) — — (40 ) Net cash used in investing activities — — (85 ) (2 ) — (87 ) Financing Activities Issuance of non-recourse debt — — — 350 — 350 Repayment of debt — (10 ) — — — (10 ) Repayment of non-recourse debt — — — (459 ) — (459 ) Debt issuance costs — — — (5 ) — (5 ) Proceeds from stock option exercises — — 1 — — 1 Intercompany transfers — 37 59 (104 ) 8 — Net cash provided by (used in) financing activities — 27 60 (218 ) 8 (123 ) Net increase in cash, cash equivalents and restricted cash — — 131 15 — 146 Cash, cash equivalents and restricted cash, beginning of period — — 128 23 — 151 Cash, cash equivalents and restricted cash, end of period $ — $ — $ 259 $ 38 $ — $ 297 |
Selected Quarterly Financial _2
Selected Quarterly Financial Information (unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Selected Quarterly Financial Information | The following table sets forth the historical unaudited quarterly financial data for the periods indicated. The information for each of these periods has been prepared on the same basis as the audited consolidated financial statements and, in our opinion, reflects all adjustments necessary to present fairly our financial results. Operating results for previous periods do not necessarily indicate results that may be achieved in any future period. 2019 (1) First Second Third Fourth Quarter Quarter Quarter Quarter Year ($ in millions, except per share data) Total revenues $ 450 $ 454 $ 466 $ 468 $ 1,838 Total operating expenses 365 390 384 384 1,523 Income before income taxes 75 54 70 74 273 Net income 55 39 50 72 216 Basic earnings per share $ 0.59 $ 0.43 $ 0.59 $ 0.83 $ 2.43 Diluted earnings per share $ 0.58 $ 0.43 $ 0.59 $ 0.83 $ 2.42 (1) The sum of the earnings per share for the four quarters may differ from annual earnings per share due to the required method of computing the weighted average shares in interim periods. 2018 (1) First Second Third Fourth Quarter Quarter Quarter Quarter Year ($ in millions, except per share data) Total revenues $ 367 $ 563 $ 427 $ 642 $ 1,999 Total operating expenses 320 408 364 473 1,565 Income before income taxes 40 146 56 161 403 Net income 30 107 41 120 298 Basic earnings per share $ 0.31 $ 1.10 $ 0.42 $ 1.25 $ 3.07 Diluted earnings per share $ 0.30 $ 1.10 $ 0.42 $ 1.24 $ 3.05 (1) The sum of the earnings per share for the four quarters may differ from annual earnings per share due to the required method of computing the weighted average shares in interim periods. |
Organization - Additional Infor
Organization - Additional Information (Details) | Dec. 31, 2019propertyunit |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Number of timeshare properties | property | 59 |
Number of units in timeshare properties | unit | 9,540 |
Basis of Presentation and Sum_3
Basis of Presentation and Summary of Significant Accounting Policies - Additional Information (Details) | 12 Months Ended | ||
Dec. 31, 2019USD ($)CountryCustomer | Dec. 31, 2018USD ($)CountryCustomer | Dec. 31, 2017CountryCustomer | |
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | |||
Club bonus points to customers, maximum valid duration period | 2 years | ||
Contract cost | $ 15,000,000 | ||
Commission expense for certain vacation package sales | 3,000,000 | ||
Adjustments on inventory reacquired upon related receivables | 0 | ||
Compensation expense recognized | 13,000,000 | $ 10,000,000 | |
Operating lease right-of-use assets, net | 60,000,000 | ||
Operating lease liabilities | 76,000,000 | ||
ASU 2016-02 | |||
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | |||
Operating lease right-of-use assets, net | 68,000,000 | ||
Operating lease liabilities | $ 80,000,000 | ||
Performance Shares | |||
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | |||
Award vesting period | 3 years | ||
Performance Shares | VOI sale | |||
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | |||
Award vesting percentage | 30.00% | ||
Performance Shares | Adjusted EBITDA | |||
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | |||
Award vesting percentage | 70.00% | ||
Other Assets | |||
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | |||
Deferred selling expenses | $ 19,000,000 | $ 4,000,000 | |
Blackstone | Management Agreements | |||
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | |||
Merger agreement completion date | Oct. 24, 2007 | ||
Computer Equipment and Acquired Software | |||
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | |||
Property and equipment, estimated useful life | 3 years | ||
Total Revenue | Customer Concentration Risk | Single Customer | |||
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | |||
Concentration Risk, Percentage | 15.00% | ||
Number of Customers Accounted for Revenue | Customer | 1 | 1 | 1 |
Maximum | Restricted Stock Units (RSUs) | |||
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | |||
Award vesting period | 3 years | ||
Maximum | Stock Options | |||
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | |||
Award vesting period | 3 years | ||
Award termination period from date of grant or earlier | 10 years | ||
Maximum | Buildings and Improvements | |||
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | |||
Property and equipment, estimated useful life | 40 years | ||
Maximum | Furniture and Equipment | |||
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | |||
Property and equipment, estimated useful life | 8 years | ||
Maximum | Total Revenue | Customer Concentration Risk | Single Customer | |||
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | |||
Concentration Risk, Percentage | 10.00% | 10.00% | |
Minimum | Buildings and Improvements | |||
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | |||
Property and equipment, estimated useful life | 8 years | ||
Minimum | Furniture and Equipment | |||
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | |||
Property and equipment, estimated useful life | 3 years | ||
Non-US | |||
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | |||
Number of countries representing more than 10 percent of total revenue | Country | 0 | 0 | 0 |
Number of countries representing over 10 percent of total property and equipment, net | Country | 0 | 0 |
Revenue from Contracts with C_3
Revenue from Contracts with Customers - Additional Information (Details) | 12 Months Ended | |
Dec. 31, 2019USD ($)segment | Dec. 31, 2018USD ($) | |
Revenue Initial Application Period Cumulative Effect Transition [Line Items] | ||
Number of operating segments | segment | 2 | |
Deferred revenues | $ 186,000,000 | $ 95,000,000 |
Sales of VOIs | ||
Revenue Initial Application Period Cumulative Effect Transition [Line Items] | ||
Revenue earned that was included in the contract liabilities balance | 121,000,000 | 214,000,000 |
Contract Assets | 0 | |
Deferred revenues | 84,000,000 | |
Direct selling cost | 27,000,000 | |
Direct selling cost to be recognized upon acquisition | $ 12,000,000 | |
Remaining performance obligations | $ 0 |
Revenue from Contracts with C_4
Revenue from Contracts with Customers - Schedule of Disaggregated Revenues by Segment from Contracts with Customers (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2019 | [1] | Sep. 30, 2019 | [1] | Jun. 30, 2019 | [1] | Mar. 31, 2019 | [1] | Dec. 31, 2018 | [1] | Sep. 30, 2018 | [1] | Jun. 30, 2018 | [1] | Mar. 31, 2018 | [1] | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |||
Disaggregation Of Revenue [Line Items] | |||||||||||||||||||||
Total revenues | $ 468 | $ 466 | $ 454 | $ 450 | $ 642 | $ 427 | $ 563 | $ 367 | $ 1,838 | [1] | $ 1,999 | [1] | $ 1,711 | ||||||||
Real Estate and Financing Segment | |||||||||||||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||||||||||||
Total revenues | 1,252 | 1,462 | 1,239 | ||||||||||||||||||
Resort Operations and Club Management Segment | |||||||||||||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||||||||||||
Total revenues | 418 | 390 | 337 | ||||||||||||||||||
Sales of VOIs, Net | |||||||||||||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||||||||||||
Total revenues | 509 | 734 | 548 | ||||||||||||||||||
Sales of VOIs, Net | Real Estate and Financing Segment | |||||||||||||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||||||||||||
Total revenues | 509 | 734 | 548 | ||||||||||||||||||
Sales, Marketing, Brand and Other Fees | |||||||||||||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||||||||||||
Total revenues | 573 | 570 | 544 | ||||||||||||||||||
Sales, Marketing, Brand and Other Fees | Real Estate and Financing Segment | |||||||||||||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||||||||||||
Total revenues | 573 | 570 | 544 | ||||||||||||||||||
Interest Income | Real Estate and Financing Segment | |||||||||||||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||||||||||||
Total revenues | 147 | 140 | 132 | ||||||||||||||||||
Other Financing Revenue | Real Estate and Financing Segment | |||||||||||||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||||||||||||
Total revenues | 23 | 18 | 15 | ||||||||||||||||||
Club Management | Resort Operations and Club Management Segment | |||||||||||||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||||||||||||
Total revenues | 125 | 112 | 99 | ||||||||||||||||||
Resort Management | Resort Operations and Club Management Segment | |||||||||||||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||||||||||||
Total revenues | 66 | 60 | 59 | ||||||||||||||||||
Rental | Resort Operations and Club Management Segment | |||||||||||||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||||||||||||
Total revenues | 201 | 191 | 156 | ||||||||||||||||||
Ancillary Services | Resort Operations and Club Management Segment | |||||||||||||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||||||||||||
Total revenues | $ 26 | $ 27 | $ 23 | ||||||||||||||||||
[1] | The sum of the earnings per share for the four quarters may differ from annual earnings per share due to the required method of computing the weighted average shares in interim periods. |
Revenue from Contracts with C_5
Revenue from Contracts with Customers - Schedule of Accounts Receivable with Customers (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Accounts Receivables | ||
Revenue Initial Application Period Cumulative Effect Transition [Line Items] | ||
Receivables | $ 129 | $ 122 |
Revenue from Contracts with C_6
Revenue from Contracts with Customers - Composition of Contract Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | |
Revenue Initial Application Period Cumulative Effect Transition [Line Items] | |||
Contract liabilities | $ 186 | $ 95 | |
Topic 606 | Advanced deposits | |||
Revenue Initial Application Period Cumulative Effect Transition [Line Items] | |||
Contract liabilities | 115 | 101 | |
Topic 606 | Deferred Sales of VOIs of projects under construction | |||
Revenue Initial Application Period Cumulative Effect Transition [Line Items] | |||
Contract liabilities | 84 | ||
Topic 606 | Club activation fees, annual dues and other | |||
Revenue Initial Application Period Cumulative Effect Transition [Line Items] | |||
Contract liabilities | 86 | 72 | |
Topic 606 | Club Bonus Point incentive liability | |||
Revenue Initial Application Period Cumulative Effect Transition [Line Items] | |||
Contract liabilities | [1] | $ 59 | $ 56 |
[1] | Amounts related to the Club Bonus Point incentive liability are included in Accounts payable, accrued expenses and other |
Revenue from Contracts with C_7
Revenue from Contracts with Customers - Remaining Transaction Price (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Advanced deposits | |
Revenue Initial Application Period Cumulative Effect Transition [Line Items] | |
Remaining Transaction Price | $ 115 |
Recognition Period | 18 months |
Recognition Method | Upon customer stays |
Club Activation Fees | |
Revenue Initial Application Period Cumulative Effect Transition [Line Items] | |
Remaining Transaction Price | $ 71 |
Recognition Period | 7 years |
Recognition Method | Straight-line basis over average inventory holding period |
Club Bonus Points | |
Revenue Initial Application Period Cumulative Effect Transition [Line Items] | |
Remaining Transaction Price | $ 59 |
Recognition Period | 24 months |
Recognition Method | Upon redemption |
Restricted Cash - Schedule of R
Restricted Cash - Schedule of Restricted Cash (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Aug. 31, 2019 | Dec. 31, 2018 |
Restricted Cash And Cash Equivalents Items [Line Items] | |||
Restricted cash | $ 85 | $ 21 | $ 72 |
Escrow deposits on VOI sales | |||
Restricted Cash And Cash Equivalents Items [Line Items] | |||
Restricted cash | 59 | 45 | |
Reserves related to non-recourse debt | |||
Restricted Cash And Cash Equivalents Items [Line Items] | |||
Restricted cash | $ 26 | $ 27 |
Timeshare Financing Receivabl_3
Timeshare Financing Receivables - Schedule of Timeshare Financing Receivables (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Timeshare financing receivables | $ 1,340 | $ 1,292 | ||
Less: allowance for financing receivables losses | (184) | (172) | $ (141) | $ (120) |
Timeshare financing receivables, net | 1,156 | 1,120 | ||
Securitized and Pledged | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Timeshare financing receivables | 758 | 660 | ||
Less: allowance for financing receivables losses | (54) | (43) | (27) | (9) |
Timeshare financing receivables, net | 704 | 617 | ||
Unsecuritized | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Timeshare financing receivables | 582 | 632 | ||
Less: allowance for financing receivables losses | (130) | (129) | $ (114) | $ (111) |
Timeshare financing receivables, net | $ 452 | $ 503 |
Timeshare Financing Receivabl_4
Timeshare Financing Receivables - Narrative (Details) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | |
Aug. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Cash deposit for future pledging of qualified collateral | $ 21 | ||
Financing receivable, weighted average interest rate (as a percent) | 12.49% | ||
Financing receivable, weighted average remaining term (in years) | 7 years 10 months 24 days | ||
Financing receivable weighted average maturities year | 2034 | ||
Timeshare financing receivable not accruing interest | $ 74 | $ 69 | |
Minimum [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Financing receivable, stated interest rate (as a percent) | 3.90% | ||
Maximum | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Financing receivable, stated interest rate (as a percent) | 20.50% | ||
2.34 Percent Notes | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Debt instrument, face amount | $ 216 | ||
Debt instrument, stated interest rate | 2.34% | ||
2.54 Percent Notes | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Debt instrument, face amount | $ 50 | ||
Debt instrument, stated interest rate | 2.54% | ||
2.84 Percent Notes | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Debt instrument, face amount | $ 34 | ||
Debt instrument, stated interest rate | 2.84% | ||
Non-recourse Debt | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Gross timeshare receivables securing the Timeshare Facility | $ 0 | ||
Timeshare financing receivables securitized | $ 308 | ||
Debt instrument stated maturity date | Jul. 25, 2033 | ||
Non-recourse Debt | 2.34 Percent Notes | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Debt instrument, face amount | $ 216 | ||
Debt instrument, stated interest rate | 2.34% | ||
Non-recourse Debt | 2.54 Percent Notes | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Debt instrument, face amount | $ 50 | ||
Debt instrument, stated interest rate | 2.54% | ||
Non-recourse Debt | 2.84 Percent Notes | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Debt instrument, face amount | $ 34 | ||
Debt instrument, stated interest rate | 2.84% | ||
Non-recourse Debt | Securitized Debt with a rate of 2.280%, due 2026 | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Debt instrument, stated interest rate | 2.28% | 2.28% | |
Debt instrument, maturity year | 2026 | 2026 |
Timeshare Financing Receivabl_5
Timeshare Financing Receivables - Maturities of Financing Receivables (Details) $ in Millions | Dec. 31, 2019USD ($) |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
2020 | $ 150 |
2021 | 143 |
2022 | 148 |
2023 | 152 |
2024 | 155 |
Thereafter | 592 |
Timeshare financing receivable maturities, gross | 1,340 |
Less: allowance for financing receivables losses | (184) |
Timeshare financing receivable maturities, net | 1,156 |
Securitized and Pledged | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
2020 | 95 |
2021 | 96 |
2022 | 97 |
2023 | 97 |
2024 | 97 |
Thereafter | 276 |
Timeshare financing receivable maturities, gross | 758 |
Less: allowance for financing receivables losses | (54) |
Timeshare financing receivable maturities, net | 704 |
Unsecuritized | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
2020 | 55 |
2021 | 47 |
2022 | 51 |
2023 | 55 |
2024 | 58 |
Thereafter | 316 |
Timeshare financing receivable maturities, gross | 582 |
Less: allowance for financing receivables losses | (130) |
Timeshare financing receivable maturities, net | $ 452 |
Timeshare Financing Receivabl_6
Timeshare Financing Receivables - Financing Receivable by Average FICO Score (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | |
Financing Receivable, Recorded Investment [Line Items] | |||
Timeshare financing receivables | $ 1,340 | $ 1,292 | |
More than 700 | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Timeshare financing receivables | 818 | 790 | |
600-699 | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Timeshare financing receivables | 292 | 280 | |
Less than 600 | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Timeshare financing receivables | 39 | 37 | |
No score | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Timeshare financing receivables | [1] | $ 191 | $ 185 |
[1] | Timeshare financing receivables without a FICO score are primarily related to foreign borrowers. |
Timeshare Financing Receivabl_7
Timeshare Financing Receivables - Past Due Financing Receivables (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | $ 1,245 | $ 1,204 |
Financing receivable, past due | 1,340 | 1,292 |
Securitized and Pledged | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 743 | 648 |
Financing receivable, past due | 758 | 660 |
Unsecuritized | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 502 | 556 |
Financing receivable, past due | 582 | 632 |
31 - 90 days past due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivable, past due | 21 | 19 |
31 - 90 days past due | Securitized and Pledged | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivable, past due | 9 | 8 |
31 - 90 days past due | Unsecuritized | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivable, past due | 12 | 11 |
91 - 120 days past due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivable, past due | 7 | 6 |
91 - 120 days past due | Securitized and Pledged | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivable, past due | 3 | 3 |
91 - 120 days past due | Unsecuritized | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivable, past due | 4 | 3 |
121 days and greater past due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivable, past due | 67 | 63 |
121 days and greater past due | Securitized and Pledged | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivable, past due | 3 | 1 |
121 days and greater past due | Unsecuritized | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivable, past due | $ 64 | $ 62 |
Timeshare Financing Receivabl_8
Timeshare Financing Receivables - Schedule of Change in Allowance For Financing Receivables Losses (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||
Allowance for loan loss, beginning balance | $ 172 | $ 141 | $ 120 | |
Write-offs | (62) | (38) | (37) | |
Provision for financing receivables losses | [1] | 74 | 69 | 58 |
Allowance for loan loss, ending balance | 184 | 172 | 141 | |
Securitized and Pledged | ||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||
Allowance for loan loss, beginning balance | 43 | 27 | 9 | |
Securitizations | 27 | 28 | 28 | |
Provision for financing receivables losses | [1] | (16) | (12) | (10) |
Allowance for loan loss, ending balance | 54 | 43 | 27 | |
Unsecuritized | ||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||
Allowance for loan loss, beginning balance | 129 | 114 | 111 | |
Write-offs | (62) | (38) | (37) | |
Securitizations | (27) | (28) | (28) | |
Provision for financing receivables losses | [1] | 90 | 81 | 68 |
Allowance for loan loss, ending balance | $ 130 | $ 129 | $ 114 | |
[1] | Includes incremental provision for financing receivables losses, net of activity related to the repurchase of defaulted and upgraded securitized timeshare financing receivables. |
Inventory - Schedule of Invento
Inventory - Schedule of Inventory, Noncurrent (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Inventory Disclosure [Abstract] | ||
Completed unsold VOIs | $ 241 | $ 243 |
Construction in process | 59 | 9 |
Land, infrastructure and other | 258 | 275 |
Inventory | $ 558 | $ 527 |
Inventory - Schedule of Expense
Inventory - Schedule of Expenses Incurred, Recorded in Cost of VOI Sales (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Time Share | ||||
Inventory [Line Items] | ||||
Expenses | [1] | $ 14 | $ 10 | $ 4 |
Fee For Service Upgrades | ||||
Inventory [Line Items] | ||||
Expenses | $ 31 | $ 34 | $ 36 | |
[1] | Cost of sales true ups reduced costs of VOI sales and increased inventory in all periods presented. |
Property and Equipment - Schedu
Property and Equipment - Schedule of Property and Equipment (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | $ 888 | $ 642 |
Accumulated depreciation | (110) | (83) |
Property and equipment, net | 778 | 559 |
Land | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 154 | 268 |
Buildings and Leasehold Improvements | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 286 | 295 |
Furniture and Equipment | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 65 | 54 |
Construction-in-Progress | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | $ 383 | $ 25 |
Property and Equipment - Additi
Property and Equipment - Additional Information (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019USD ($)propertyshares | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Property Plant And Equipment [Line Items] | |||
Number of shares repurchased | shares | 74 | ||
Average price per share | $ | $ 37 | ||
Number of timeshare properties | property | 59 | ||
Depreciation expense | $ | $ 35 | $ 23 | $ 17 |
MEXICO | |||
Property Plant And Equipment [Line Items] | |||
Number of timeshare properties | property | 87 |
Consolidated Variable Interes_3
Consolidated Variable Interest Entities - Additional Information (Details) | 12 Months Ended | ||
Dec. 31, 2019USD ($)entity | Dec. 31, 2018USD ($)entity | Dec. 31, 2017USD ($) | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |||
Number of VIEs consolidated | entity | 4 | 4 | |
Financial or other support to any VIEs | $ | $ 0 | $ 0 | $ 0 |
Consolidated Variable Interes_4
Consolidated Variable Interest Entities - Schedule of Consolidated Variable Interest Entities (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | |
Variable Interest Entity [Line Items] | |||
Assets, variable interest entity | $ 748 | $ 647 | |
Liabilities, variable interest entity | 750 | 640 | |
Variable Interest Entity, Primary Beneficiary | Restricted cash | |||
Variable Interest Entity [Line Items] | |||
Assets, variable interest entity | 26 | 23 | |
Variable Interest Entity, Primary Beneficiary | Timeshare financing receivables, net | |||
Variable Interest Entity [Line Items] | |||
Assets, variable interest entity | 704 | 617 | |
Variable Interest Entity, Primary Beneficiary | Non-recourse debt | |||
Variable Interest Entity [Line Items] | |||
Liabilities, variable interest entity | [1] | $ 747 | $ 639 |
[1] | Net of deferred financing costs. |
Investments in Unconsolidated_2
Investments in Unconsolidated Affiliates - Additional Information (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019USD ($)Affiliate | Dec. 31, 2018USD ($) | Dec. 31, 2017 | |
Schedule Of Investments [Line Items] | |||
Number of unconsolidated affiliates | Affiliate | 2 | ||
Debt | $ 828 | $ 604 | |
Investments in unconsolidated affiliates | $ 44 | 38 | |
BRE Ace LLC | |||
Schedule Of Investments [Line Items] | |||
Equity method investment, ownership percentage | 25.00% | ||
1776 Holdings LLC | |||
Schedule Of Investments [Line Items] | |||
Equity method investment, ownership percentage | 50.00% | 50.00% | |
BRE Ace LLC and 1776 Holding, LLC | |||
Schedule Of Investments [Line Items] | |||
Debt | $ 479 | $ 490 |
Intangible Assets - Schedule of
Intangible Assets - Schedule of Intangible Assets and Related Amortization Expense (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 183 | $ 159 |
Accumulated Amortization | (94) | (78) |
Net Carrying Amount | 89 | 81 |
Management Agreements | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 88 | 88 |
Accumulated Amortization | (46) | (41) |
Net Carrying Amount | 42 | 47 |
Capitalized Software | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 95 | 71 |
Accumulated Amortization | (48) | (37) |
Net Carrying Amount | $ 47 | $ 34 |
Intangible Assets - Additional
Intangible Assets - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Finite Lived Intangible Assets Net | |||
Amortization expense on intangible assets | $ 16 | $ 13 | $ 12 |
Management Agreements | |||
Finite Lived Intangible Assets Net | |||
Weighted average amortization period | 12 years 7 months 6 days | ||
Capitalized Software | |||
Finite Lived Intangible Assets Net | |||
Weighted average amortization period | 2 years 6 months |
Intangible Assets - Schedule _2
Intangible Assets - Schedule of Estimated Future Amortization Expense (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Finite Lived Intangible Assets Future Amortization Expense [Abstract] | ||
2020 | $ 25 | |
2021 | 21 | |
2022 | 13 | |
2023 | 3 | |
2024 | 3 | |
Thereafter | 24 | |
Net Carrying Amount | $ 89 | $ 81 |
Other Assets - Schedule of Othe
Other Assets - Schedule of Other Assets (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract] | ||
Inventory deposits | $ 7 | $ 46 |
Deferred selling, marketing, general and administrative expenses | 12 | |
Prepaid expenses | 13 | 18 |
Other | 36 | 31 |
Other Assets | $ 68 | $ 95 |
Accounts Payable, Accrued Exp_3
Accounts Payable, Accrued Expenses and Other - Summary of Accounts Payable, Accrued Expenses and Other (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Payables And Accruals [Abstract] | ||
Accrued employee compensation and benefits | $ 77 | $ 86 |
Accounts payable | 24 | 51 |
Bonus point incentive liability | 59 | 56 |
Due to Hilton | 19 | 20 |
Income taxes payable | 8 | 7 |
Other accrued expenses | 111 | 104 |
Accounts payable, accrued expenses and other | $ 298 | $ 324 |
Deferred Revenues - Schedule of
Deferred Revenues - Schedule of Deferred Revenues (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Disaggregation Of Revenue [Line Items] | ||
Deferred revenues | $ 186 | $ 95 |
Deferred VOI sales | ||
Disaggregation Of Revenue [Line Items] | ||
Deferred revenues | 100 | 19 |
Club Activation Fees | ||
Disaggregation Of Revenue [Line Items] | ||
Deferred revenues | 71 | 63 |
Other | ||
Disaggregation Of Revenue [Line Items] | ||
Deferred revenues | $ 15 | $ 13 |
Deferred Revenues - Schedule _2
Deferred Revenues - Schedule of Deferred Revenues (Additional Information) (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Disaggregation Of Revenue [Line Items] | ||
Deferred revenues | $ 186,000,000 | $ 95,000,000 |
Deferred Revenue VOIs Under Construction | ||
Disaggregation Of Revenue [Line Items] | ||
Deferred revenues | $ 84,000,000 | $ 0 |
Debt & Non-recourse Debt - Sche
Debt & Non-recourse Debt - Schedule of Outstanding Borrowings (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Aug. 31, 2019 | Dec. 31, 2018 | Nov. 30, 2016 | |||
Debt Instrument [Line Items] | |||||||
Long-term debt, gross | [1] | $ 834 | $ 612 | ||||
Less: unamortized deferred financing costs and discount | (6) | [2],[3] | $ (4) | (8) | [2],[3] | ||
Long-term debt | 828 | 604 | |||||
Revolving Credit Facility | |||||||
Debt Instrument [Line Items] | |||||||
Less: unamortized deferred financing costs and discount | (5) | (6) | |||||
Revolver with an average rate of 3.513%, due 2023 | Revolving Credit Facility | |||||||
Debt Instrument [Line Items] | |||||||
Long-term debt, gross | 320 | 115 | |||||
Line of Credit | Term loans with an average rate of 3.513%, due 2023 | |||||||
Debt Instrument [Line Items] | |||||||
Long-term debt, gross | 187 | 197 | |||||
Less: unamortized deferred financing costs and discount | (1) | (2) | |||||
Line of Credit | Senior notes with a rate of 6.125%, due 2024 | |||||||
Debt Instrument [Line Items] | |||||||
Long-term debt, gross | $ 300 | ||||||
Less: unamortized deferred financing costs and discount | $ (8) | ||||||
Senior Notes | Senior notes with a rate of 6.125%, due 2024 | |||||||
Debt Instrument [Line Items] | |||||||
Long-term debt, gross | [1] | 300 | 300 | ||||
Less: unamortized deferred financing costs and discount | (5) | (6) | |||||
Other Debt | |||||||
Debt Instrument [Line Items] | |||||||
Long-term debt, gross | [1] | 27 | |||||
Non-recourse Debt | |||||||
Debt Instrument [Line Items] | |||||||
Long-term debt, gross | [4] | 755 | 766 | ||||
Less: unamortized deferred financing costs and discount | [5] | (8) | (7) | ||||
Long-term debt | 747 | 759 | |||||
Non-recourse Debt | Timeshare Facility with an average rate of 3.164%, due 2021 | |||||||
Debt Instrument [Line Items] | |||||||
Long-term debt, gross | 120 | ||||||
Non-recourse Debt | Securitized Debt with a rate of 2.280%, due 2026 | |||||||
Debt Instrument [Line Items] | |||||||
Long-term debt, gross | [4] | 33 | |||||
Non-recourse Debt | Securitized Debt with an average rate of 3.602%, due 2032 | |||||||
Debt Instrument [Line Items] | |||||||
Long-term debt, gross | 275 | 333 | |||||
Non-recourse Debt | Securitized Debt with an average rate of 1.810%, due 2026 | |||||||
Debt Instrument [Line Items] | |||||||
Long-term debt, gross | 46 | 74 | |||||
Non-recourse Debt | Securitized Debt with an average rate of 2.711%, due 2028 | |||||||
Debt Instrument [Line Items] | |||||||
Long-term debt, gross | 149 | $ 206 | |||||
Non-recourse Debt | Securitized Debt with an average rate of 2.431%, due 2033 | |||||||
Debt Instrument [Line Items] | |||||||
Long-term debt, gross | $ 285 | ||||||
[1] | As of December 31, 2019 and 2018, weighted-average interest rates were 4.571 percent and 5.170 percent, respectively. | ||||||
[2] | Amount does not include deferred financing costs of $5 and $6 million as of December 31, 2019 and 2018, respectively, relating to our revolving facility included in Other Assets | ||||||
[3] | Amount includes deferred financing costs related to our term loan and senior notes of $1 million and $5 million, respectively as of December 31, 2019 and $2 million and $6 million as of December 31, 2018. | ||||||
[4] | As of December 31, 2019 and 2018, weighted-average interest rates were 2.876 percent and 3.126 percent, respectively | ||||||
[5] | Amount relates to Securitized Debt only and does not include deferred financing costs of $3 Other Assets |
Debt & Non-recourse Debt - Sc_2
Debt & Non-recourse Debt - Schedule of Outstanding Borrowings (Parenthetical) (Details) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | |||||
Nov. 30, 2016 | Dec. 31, 2019 | Dec. 31, 2018 | Aug. 31, 2019 | ||||
Debt Instrument [Line Items] | |||||||
Debt instrument, average interest rate | 4.571% | 5.17% | |||||
Less: unamortized deferred financing costs and discount | $ (6) | [1],[2] | $ (8) | [1],[2] | $ (4) | ||
Revolving Credit Facility | |||||||
Debt Instrument [Line Items] | |||||||
Less: unamortized deferred financing costs and discount | $ (5) | $ (6) | |||||
Revolving Credit Facility | Revolver with an average rate of 3.513%, due 2023 | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, average interest rate | 3.513% | 3.513% | |||||
Debt instrument, maturity year | 2023 | 2023 | |||||
Line of Credit | Term loans with an average rate of 3.513%, due 2023 | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, average interest rate | 3.513% | 3.513% | |||||
Debt instrument, maturity year | 2023 | 2023 | |||||
Less: unamortized deferred financing costs and discount | $ (1) | $ (2) | |||||
Line of Credit | Senior notes with a rate of 6.125%, due 2024 | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, maturity year | 2024 | ||||||
Debt instrument, stated interest rate | 6.125% | ||||||
Less: unamortized deferred financing costs and discount | $ (8) | ||||||
Senior Notes | Senior notes with a rate of 6.125%, due 2024 | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, maturity year | 2024 | 2024 | |||||
Debt instrument, stated interest rate | 6.125% | ||||||
Less: unamortized deferred financing costs and discount | $ (5) | $ (6) | |||||
Non-recourse Debt | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, average interest rate | 2.876% | 3.126% | |||||
Less: unamortized deferred financing costs and discount | [3] | $ (8) | $ (7) | ||||
Non-recourse Debt | Timeshare Facility with an average rate of 3.164%, due 2021 | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, average interest rate | 3.164% | 3.164% | |||||
Debt instrument, maturity year | 2021 | 2021 | |||||
Non-recourse Debt | Securitized Debt with a rate of 2.280%, due 2026 | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, maturity year | 2026 | 2026 | |||||
Debt instrument, stated interest rate | 2.28% | 2.28% | |||||
Non-recourse Debt | Securitized Debt with an average rate of 1.810%, due 2026 | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, average interest rate | 1.81% | 1.81% | |||||
Debt instrument, maturity year | 2026 | 2026 | |||||
Non-recourse Debt | Securitized Debt with an average rate of 2.711%, due 2028 | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, average interest rate | 2.711% | 2.711% | |||||
Debt instrument, maturity year | 2028 | 2028 | |||||
Non-recourse Debt | Securitized Debt with an average rate of 3.602%, due 2032 | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, average interest rate | 3.602% | 3.602% | |||||
Debt instrument, maturity year | 2032 | 2032 | |||||
Non-recourse Debt | Securitized Debt with an average rate of 2.431%, due 2033 | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, average interest rate | 2.421% | 2.421% | |||||
Debt instrument, maturity year | 2033 | 2033 | |||||
Non-recourse Debt | Timeshare Facility with an average rate of 3.164%, due 2021 | |||||||
Debt Instrument [Line Items] | |||||||
Less: unamortized deferred financing costs and discount | $ (3) | $ (3) | |||||
[1] | Amount does not include deferred financing costs of $5 and $6 million as of December 31, 2019 and 2018, respectively, relating to our revolving facility included in Other Assets | ||||||
[2] | Amount includes deferred financing costs related to our term loan and senior notes of $1 million and $5 million, respectively as of December 31, 2019 and $2 million and $6 million as of December 31, 2018. | ||||||
[3] | Amount relates to Securitized Debt only and does not include deferred financing costs of $3 Other Assets |
Debt & Non-recourse Debt - Addi
Debt & Non-recourse Debt - Additional Information (Details) - USD ($) | Nov. 30, 2018 | Nov. 30, 2016 | Dec. 31, 2019 | Dec. 31, 2018 | Aug. 31, 2019 | Dec. 31, 2016 | |||
Debt Instrument [Line Items] | |||||||||
Debt issuance costs | $ 6,000,000 | [1],[2] | $ 8,000,000 | [1],[2] | $ 4,000,000 | ||||
Principal Amount Outstanding | [3] | 834,000,000 | 612,000,000 | ||||||
Accounts Receivable from Securitization | 308,000,000 | ||||||||
Restricted cash | 85,000,000 | 72,000,000 | 21,000,000 | ||||||
Cash used as collateral | $ 21,000,000 | ||||||||
Reserves related to non-recourse debt | |||||||||
Debt Instrument [Line Items] | |||||||||
Restricted cash | 26,000,000 | 27,000,000 | |||||||
Restricted cash and cash equivalents depository accounts | 26,000,000 | ||||||||
2.34 Percent Notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument, stated interest rate | 2.34% | ||||||||
Debt instrument, face amount | $ 216,000,000 | ||||||||
2.54 Percent Notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument, stated interest rate | 2.54% | ||||||||
Debt instrument, face amount | $ 50,000,000 | ||||||||
2.84 Percent Notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument, stated interest rate | 2.84% | ||||||||
Debt instrument, face amount | $ 34,000,000 | ||||||||
Timeshare Facility | |||||||||
Debt Instrument [Line Items] | |||||||||
Term loan outstanding | $ 450,000,000 | ||||||||
Extended commitment termination date | 2021-04 | ||||||||
Revolving Credit Facility | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt issuance costs | $ 5,000,000 | 6,000,000 | |||||||
Interest rate on revolving credit facility description | one-month LIBOR | ||||||||
Revolving Credit Facility | LIBOR | |||||||||
Debt Instrument [Line Items] | |||||||||
Interest rate on revolving credit facility | 1.75% | ||||||||
Revolving Credit Facility | Maximum | |||||||||
Debt Instrument [Line Items] | |||||||||
Unused commitment fee percentage under revolving facility | 0.35% | ||||||||
Revolving Credit Facility | Minimum | |||||||||
Debt Instrument [Line Items] | |||||||||
Unused commitment fee percentage under revolving facility | 0.25% | ||||||||
Senior Secured Credit Facilities | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt issuance costs | $ 6,000,000 | ||||||||
Senior Secured Credit Facilities | Other Assets | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt issuance costs | 5,000,000 | ||||||||
Senior Secured Credit Facilities | Amended Credit Facility | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument extended maturity date | 2023-11 | ||||||||
Senior Secured Credit Facilities | Term Loans | Amended Credit Facility | |||||||||
Debt Instrument [Line Items] | |||||||||
Line of credit facility, maximum borrowing capacity | $ 200,000,000 | ||||||||
Senior Secured Credit Facilities | Revolving Credit Facility | |||||||||
Debt Instrument [Line Items] | |||||||||
Line of credit facility, maximum borrowing capacity | $ 200,000,000 | ||||||||
Outstanding letter of credit | 1,000,000 | ||||||||
Short-term borrowings | 10,000,000 | ||||||||
Debt instrument borrowed amount | 485,000,000 | ||||||||
Debt instrument repaid amount | $ 290,000,000 | ||||||||
Senior Secured Credit Facilities | Revolving Credit Facility | Amended Credit Facility | |||||||||
Debt Instrument [Line Items] | |||||||||
Line of credit facility, maximum borrowing capacity | 800,000,000 | ||||||||
Senior Secured Credit Facilities | Letter of Credit | |||||||||
Debt Instrument [Line Items] | |||||||||
Line of credit facility, current borrowing capacity | $ 30,000,000 | ||||||||
Line of Credit | Senior notes with a rate of 6.125%, due 2024 | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt issuance costs | $ 8,000,000 | ||||||||
Principal Amount Outstanding | $ 300,000,000 | ||||||||
Debt instrument, stated interest rate | 6.125% | ||||||||
Debt instrument, maturity year | 2024 | ||||||||
Debt instrument rate description | Interest on the senior unsecured notes (the “Senior Unsecured Notes” is payable semi-annually in arrears on June 1 and December 1 of each year, beginning on June 1, 2017 | ||||||||
Senior Notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument redemption description | We may, at our sole option, redeem the Senior Unsecured Notes, in whole or in part, at any time prior to December 1, 2021, at a price equal to 100 percent of the principal amount, plus an applicable make-whole premium and accrued and unpaid interest. On and after, December 1, 2021, we may, at our sole option, redeem the Senior Unsecured Notes at 103.25 percent, 101.625 percent or 100 percent of the principal amount in 2021, 2022 or 2023, respectively, without any make-whole premium. | ||||||||
Debt instrument redemption beginning period | Dec. 1, 2021 | ||||||||
Senior Notes | Debt Instrument, Redemption, Period One | |||||||||
Debt Instrument [Line Items] | |||||||||
Percentage of debt redemption on principal amount | 100.00% | ||||||||
Senior Notes | Debt Instrument, Redemption, Period Two | |||||||||
Debt Instrument [Line Items] | |||||||||
Percentage of debt redemption on principal amount | 103.25% | ||||||||
Debt instrument extended maturity date | 2021 | ||||||||
Senior Notes | Debt Instrument, Redemption, Period Three | |||||||||
Debt Instrument [Line Items] | |||||||||
Percentage of debt redemption on principal amount | 101.625% | ||||||||
Debt instrument extended maturity date | 2022 | ||||||||
Senior Notes | Debt Instrument, Redemption, Period Four | |||||||||
Debt Instrument [Line Items] | |||||||||
Percentage of debt redemption on principal amount | 100.00% | ||||||||
Debt instrument extended maturity date | 2023 | ||||||||
Senior Notes | Senior notes with a rate of 6.125%, due 2024 | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt issuance costs | $ 5,000,000 | 6,000,000 | |||||||
Principal Amount Outstanding | [3] | $ 300,000,000 | $ 300,000,000 | ||||||
Debt instrument, stated interest rate | 6.125% | ||||||||
Debt instrument, maturity year | 2024 | 2024 | |||||||
Non-recourse Debt | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt issuance costs | [4] | $ 8,000,000 | $ 7,000,000 | ||||||
Principal Amount Outstanding | [5] | $ 755,000,000 | 766,000,000 | ||||||
Non-recourse Debt | 2.34 Percent Notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument, stated interest rate | 2.34% | ||||||||
Debt instrument, face amount | $ 216,000,000 | ||||||||
Non-recourse Debt | 2.54 Percent Notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument, stated interest rate | 2.54% | ||||||||
Debt instrument, face amount | $ 50,000,000 | ||||||||
Non-recourse Debt | 2.84 Percent Notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument, stated interest rate | 2.84% | ||||||||
Debt instrument, face amount | $ 34,000,000 | ||||||||
Non-recourse Debt | Securitized Debt with a rate of 2.280%, due 2026 | |||||||||
Debt Instrument [Line Items] | |||||||||
Principal Amount Outstanding | [5] | $ 33,000,000 | |||||||
Debt instrument, stated interest rate | 2.28% | 2.28% | |||||||
Debt instrument, maturity year | 2026 | 2026 | |||||||
[1] | Amount does not include deferred financing costs of $5 and $6 million as of December 31, 2019 and 2018, respectively, relating to our revolving facility included in Other Assets | ||||||||
[2] | Amount includes deferred financing costs related to our term loan and senior notes of $1 million and $5 million, respectively as of December 31, 2019 and $2 million and $6 million as of December 31, 2018. | ||||||||
[3] | As of December 31, 2019 and 2018, weighted-average interest rates were 4.571 percent and 5.170 percent, respectively. | ||||||||
[4] | Amount relates to Securitized Debt only and does not include deferred financing costs of $3 Other Assets | ||||||||
[5] | As of December 31, 2019 and 2018, weighted-average interest rates were 2.876 percent and 3.126 percent, respectively |
Debt & Non-recourse Debt - Sc_3
Debt & Non-recourse Debt - Schedule of Contractual Maturities of Debt (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | |
Debt Instrument [Line Items] | |||
2020 | $ 12 | ||
2021 | 11 | ||
2022 | 11 | ||
2023 | 477 | ||
2024 | 300 | ||
Thereafter | 23 | ||
Long-term debt | [1] | 834 | $ 612 |
Non-recourse Debt | |||
Debt Instrument [Line Items] | |||
2020 | 242 | ||
2021 | 166 | ||
2022 | 113 | ||
2023 | 109 | ||
2024 | 42 | ||
Thereafter | 83 | ||
Long-term debt | [2] | 755 | $ 766 |
Debt and Non-recourse Debt | |||
Debt Instrument [Line Items] | |||
2020 | 254 | ||
2021 | 177 | ||
2022 | 124 | ||
2023 | 586 | ||
2024 | 342 | ||
Thereafter | 106 | ||
Long-term debt | $ 1,589 | ||
[1] | As of December 31, 2019 and 2018, weighted-average interest rates were 4.571 percent and 5.170 percent, respectively. | ||
[2] | As of December 31, 2019 and 2018, weighted-average interest rates were 2.876 percent and 3.126 percent, respectively |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Carrying and Estimated Fair Value Amounts (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | |
Carrying Amount | |||
Assets: | |||
Timeshare financing receivables, net | [1] | $ 1,156 | $ 1,120 |
Liabilities: | |||
Debt, net | [2] | 828 | 604 |
Non-recourse debt, net | [2] | 747 | 759 |
Level 1 | |||
Assets: | |||
Timeshare financing receivables, net | [1] | 0 | |
Liabilities: | |||
Debt, net | [2] | 326 | 302 |
Non-recourse debt, net | [2] | 0 | |
Level 3 | |||
Assets: | |||
Timeshare financing receivables, net | [1] | 1,446 | 1,339 |
Liabilities: | |||
Debt, net | [2] | 544 | 309 |
Non-recourse debt, net | [2] | $ 749 | $ 753 |
[1] | Carrying amount net of allowance for financing receivables losses. | ||
[2] | Carrying amount net of unamortized deferred financing costs and discount. |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Details) - Fair Value, Recurring | Dec. 31, 2019USD ($) |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | |
Assets measured at fair value on recurring basis | $ 0 |
Liabilities measured at fair value on recurring basis | $ 0 |
Leases - Additional Information
Leases - Additional Information (Details) | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Leases starting expiration date | 2020 |
Leases ending expiration date | 2030 |
Leases - Schedule of Rent Expen
Leases - Schedule of Rent Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Schedule Of Rent Expense [Abstract] | |||
Minimum rentals | $ 19 | $ 21 | $ 17 |
Contingent rentals | 2 | 3 | 3 |
Rent expense | $ 21 | $ 24 | $ 20 |
Leases - Schedule of Supplement
Leases - Schedule of Supplemental Information Related to Operating Leases (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Cash paid for amounts included in the measurement of operating lease liabilities: | |
Operating cash flows from operating leases | $ 16 |
Supplemental non-cash information: | |
Right-of-use assets obtained in exchange for new operating lease liabilities | $ 10 |
Weighted-average remaining lease term of operating leases | 6 years 1 month 6 days |
Weighted-average discount rate of operating leases | 5.34% |
Leases - Future Minimum Lease P
Leases - Future Minimum Lease Payments Under Non-Cancelable Operating Leases for Prior Period (Details) $ in Millions | Dec. 31, 2019USD ($) |
Leases [Abstract] | |
2020 | $ 17 |
2021 | 16 |
2022 | 12 |
2023 | 12 |
2024 | 11 |
Thereafter | 22 |
Total future minimum lease payments | 90 |
Less: imputed interest | (14) |
Operating lease liabilities | $ 76 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Line Items] | |||
Federal tax rate | 21.00% | 35.00% | |
Tax Cuts and Jobs Act of 2017, Deferred tax liability, income tax expense (benefit) | $ 18 | ||
Deferred tax assets, Tax credit carryforwards, Foreign | 2 | $ 1 | |
Deferred tax assets, Federal tax credit carryforwards | 3 | 2 | |
Deferred tax assets, Tax credit carryforwards, State | 8 | 0 | |
Valuation allowance, deferred tax asset, Increase (Decrease), amount | $ 4 | $ 2 | |
Maximum | |||
Income Tax Disclosure [Line Items] | |||
Tax loss and credit carryforwards expiration period | 8 years |
Income Taxes - Schedule of Comp
Income Taxes - Schedule of Components of Income Before Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2019 | [1] | Sep. 30, 2019 | [1] | Jun. 30, 2019 | [1] | Mar. 31, 2019 | [1] | Dec. 31, 2018 | [1] | Sep. 30, 2018 | [1] | Jun. 30, 2018 | [1] | Mar. 31, 2018 | [1] | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |||
Income Tax Disclosure [Abstract] | |||||||||||||||||||||
U.S. income before tax | $ 234 | $ 380 | $ 283 | ||||||||||||||||||
Foreign income before tax | 39 | 23 | 28 | ||||||||||||||||||
Income before income taxes | $ 74 | $ 70 | $ 54 | $ 75 | $ 161 | $ 56 | $ 146 | $ 40 | $ 273 | [1] | $ 403 | [1] | $ 311 | ||||||||
[1] | The sum of the earnings per share for the four quarters may differ from annual earnings per share due to the required method of computing the weighted average shares in interim periods. |
Income Taxes - Schedule of Co_2
Income Taxes - Schedule of Components of Provision for Income Tax Expense (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Current: | ||||
Federal | $ 37 | $ 62 | $ 94 | |
State | 9 | 15 | 11 | |
Foreign | 8 | 8 | 8 | |
Total current | 54 | 85 | 113 | |
Deferred: | ||||
Federal | 3 | 17 | (137) | |
State | 1 | 4 | 8 | |
Foreign | (1) | (1) | ||
Total deferred | 3 | 20 | (129) | |
Total provision for income taxes | [1] | $ 57 | $ 105 | $ (16) |
[1] | On December 22, 2017, the United States enacted tax reform legislation, the TCJ Act, resulting in significant modifications to existing law which resulted in a reduction in income tax expense for the year ended December 31, 2017. See Note 17: Income Taxes |
Income Taxes - Schedule of Effe
Income Taxes - Schedule of Effective Income Tax Rate Reconciliation (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Income Tax Disclosure [Abstract] | ||||
Statutory U.S. federal income tax provision | $ 57 | $ 85 | $ 109 | |
State and local income taxes, net of U.S. federal tax benefit | 11 | 19 | 12 | |
Impact of foreign operations | 1 | 2 | ||
Interest on installment sales, net of U.S. federal tax benefit | 4 | 3 | 3 | |
Interest on installment sales adjustment | (5) | |||
Effects of the TCJ Act | (4) | (133) | ||
Tax accounting method change | (18) | |||
Other | 2 | (2) | ||
Total provision for income taxes | [1] | $ 57 | $ 105 | $ (16) |
[1] | On December 22, 2017, the United States enacted tax reform legislation, the TCJ Act, resulting in significant modifications to existing law which resulted in a reduction in income tax expense for the year ended December 31, 2017. See Note 17: Income Taxes |
Income Taxes - Schedule of Co_3
Income Taxes - Schedule of Compositions of Net Deferred Tax Balances (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Income Tax Disclosure [Abstract] | ||
Deferred income tax assets | $ 2 | $ 1 |
Deferred income tax liabilities | (259) | (255) |
Net deferred taxes | $ (257) | $ (254) |
Income Taxes - Schedule of Ef_2
Income Taxes - Schedule of Effects of Temporary Differences and Carryforwards of Our Net Deferred Tax Liability (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Deferred tax assets: | ||
Compensation | $ 12 | $ 11 |
Domestic tax loss and credit carryforwards | 4 | 2 |
Foreign tax loss carryforwards | 1 | |
Other reserves | 86 | 57 |
Deferred tax assets, Gross | 103 | 70 |
Valuation allowance | (4) | (2) |
Deferred tax assets | 99 | 68 |
Deferred tax liabilities: | ||
Property and equipment | (87) | (46) |
Amortizable intangible assets | (9) | (10) |
Deferred income | (259) | (266) |
Other liabilities | (1) | |
Deferred tax liabilities | (356) | (322) |
Net deferred taxes | $ (257) | $ (254) |
Share-Based Compensation - Addi
Share-Based Compensation - Additional Information (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Allocated share-based compensation expense | $ 22 | $ 16 | $ 15 | |
Total tax benefit recognized related to share-based compensation | 4 | $ 4 | $ 4 | |
Unrecognized compensation costs for unvested awards | $ 19 | |||
Unrecognized compensation costs, weighted average period for recognition | 1 year 8 months 12 days | |||
Shares of common stock available for future issuance | 6,500,726 | |||
Performance Shares | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Number of shares granted | 133,660 | |||
Weighted average grant date fair value per share | $ 33.32 | |||
Award vesting period | 3 years | |||
Performance Shares | Adjusted EBITDA | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Number of shares granted | [1] | 93,566 | ||
Weighted average grant date fair value per share | [1] | $ 33.32 | ||
Award vesting percentage | 70.00% | |||
Performance Shares | VOI sale | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Award vesting percentage | 30.00% | |||
[1] | Represents our Adjusted EBITDA metric described in Part 1 of this Form 10-K, further adjusted by net recognition and deferral activity from sales of VOIs under construction. |
Share-Based Compensation - Info
Share-Based Compensation - Information on RSU Grants (Details) - Restricted Stock Units (RSUs) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Number of shares granted | 500,925 | 378,069 | 534,329 |
Weighted average grant date fair value per share | $ 33.07 | $ 42.63 | $ 29.23 |
Fair value of shares vested (in millions) | $ 10 | $ 13 | $ 11 |
Share-Based Compensation - Summ
Share-Based Compensation - Summary of Activity of RSUs (Details) - Restricted Stock Units (RSUs) - $ / shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Number of Shares Outstanding, beginning of period | 743,382 | ||
Number of Shares, Granted | 500,925 | 378,069 | 534,329 |
Number of Shares, Vested | (323,638) | ||
Number of Shares, Forfeited | (95,078) | ||
Number of Shares Outstanding, end of period | 825,591 | 743,382 | |
Weighted Average Grant Date Fair Value Outstanding, beginning of period | $ 34.31 | ||
Weighted Average Grant Date Fair Value, Granted | 33.07 | $ 42.63 | $ 29.23 |
Weighted Average Grant Date Fair Value, Vested | 31.76 | ||
Weighted Average Grant Date Fair Value, Forfeited | 35.15 | ||
Weighted Average Grant Date Fair Value Outstanding, end of period | $ 34.46 | $ 34.31 |
Share-Based Compensation - In_2
Share-Based Compensation - Information on Option Grants (Details) - Stock Options - $ / shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Number of options granted | 544,209 | 312,141 | 669,658 |
Weighted average exercise price per share | $ 33.32 | $ 46.48 | $ 28.30 |
Weighted average grant date fair value per share | $ 12.29 | $ 14.78 | $ 8.66 |
Share-Based Compensation - Opti
Share-Based Compensation - Options Assumptions (Details) - Stock Options | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Expected volatility | [1] | 33.10% | 26.60% | 26.30% |
Risk-free rate | [2] | 2.60% | 2.70% | 2.30% |
Expected term (in years) | [3] | 6 years | 6 years | 6 years |
[1] | Due to limited trading history for our common stock, we did not have sufficient information available on which to base a reasonable and supportable estimate of the expected volatility of its share price. As a result, we used an average historical volatility of our peer group over a time period consistent with its expected term assumption. Our peer group was determined based upon companies in our industry with similar business models and is consistent with those used to benchmark our executive compensation. | |||
[2] | Based on the yields of U.S. Department of Treasury instruments with similar expected lives. | |||
[3] | Estimated using the average of the vesting periods and the contractual term of the options. |
Share-Based Compensation - Su_2
Share-Based Compensation - Summary of Options Activity (Details) - Stock Options - $ / shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Number of Shares, Outstanding, beginning of period | 1,106,672 | ||
Number of Shares, Granted | 544,209 | 312,141 | 669,658 |
Number of Shares, Exercised | (23,486) | ||
Number of Shares, Forfeited, canceled or expired | (86,313) | ||
Number of Shares, Outstanding, end of period | 1,541,082 | 1,106,672 | |
Number of Shares, Exercisable, end of period | 617,419 | ||
Weighted Average Exercise Price Per Share, Outstanding, beginning of period | $ 31.14 | ||
Weighted Average Exercise Price Per Share, Granted | 33.32 | $ 46.48 | $ 28.30 |
Weighted Average Exercise Price Per Share, Exercised | 26.03 | ||
Weighted Average Exercise Price Per Share, Forfeited, canceled or expired | 36.79 | ||
Weighted Average Exercise Price Per Share, Outstanding, end of period | 31.67 | $ 31.14 | |
Weighted Average Exercise Price Per Share, Exercisable, end of period | $ 27.61 |
Share-Based Compensation - Sche
Share-Based Compensation - Schedule Of Performance Stock Unit Grants (Details) - Performance Shares - $ / shares | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Number of shares granted | 133,660 | |
Weighted average grant date fair value per share | $ 33.32 | |
Adjusted EBITDA | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Number of shares granted | 93,566 | 64,809 |
Weighted average grant date fair value per share | $ 33.32 | $ 42.94 |
Contract Sales | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Number of shares granted | 40,094 | 27,769 |
Weighted average grant date fair value per share | $ 33.32 | $ 42.94 |
Share-Based Compensation - Sc_2
Share-Based Compensation - Schedule of Performance Stock Units Activity (Details) - Performance Shares | 12 Months Ended | |
Dec. 31, 2019$ / sharesshares | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Number of Shares, Granted | shares | 133,660 | |
Weighted average grant date fair value per share | $ / shares | $ 33.32 | |
Adjusted EBITDA | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Number of Shares Outstanding, beginning of period | shares | 57,301 | [1] |
Number of Shares, Granted | shares | 93,566 | [1] |
Number of Shares Outstanding, end of period | shares | 150,867 | [1] |
Weighted Average Grant Date Fair Value Outstanding, beginning of period | $ / shares | $ 42.46 | [1] |
Weighted average grant date fair value per share | $ / shares | 33.32 | [1] |
Weighted Average Grant Date Fair Value Outstanding, end of period | $ / shares | $ 36.79 | [1] |
Contract Sales | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Number of Shares Outstanding, beginning of period | shares | 24,552 | |
Number of Shares, Granted | shares | 40,094 | |
Number of Shares Outstanding, end of period | shares | 64,646 | |
Weighted Average Grant Date Fair Value Outstanding, beginning of period | $ / shares | $ 42.46 | |
Weighted average grant date fair value per share | $ / shares | 33.32 | |
Weighted Average Grant Date Fair Value Outstanding, end of period | $ / shares | $ 36.79 | |
[1] | Represents our Adjusted EBITDA metric described in Part 1 of this Form 10-K, further adjusted by net recognition and deferral activity from sales of VOIs under construction. |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Details) - shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Weighted average shares outstanding, Basic | 88,758,859 | 97,209,889 | 98,934,352 |
Weighted average shares outstanding, diluted | 89,291,176 | 97,898,242 | 99,621,199 |
Stock Compensation Plan | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from computation of EPS | 836,677 | 384,860 | 229,621 |
Earnings Per Share - Schedule o
Earnings Per Share - Schedule of Earnings Per Share, Basic and Diluted (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2019 | [1] | Sep. 30, 2019 | [1] | Jun. 30, 2019 | [1] | Mar. 31, 2019 | [1] | Dec. 31, 2018 | [1] | Sep. 30, 2018 | [1] | Jun. 30, 2018 | [1] | Mar. 31, 2018 | [1] | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||||
Numerator: | ||||||||||||||||||||||
Net income | $ 72,000,000 | $ 50,000,000 | $ 39,000,000 | $ 55,000,000 | $ 120,000,000 | $ 41,000,000 | $ 107,000,000 | $ 30,000,000 | $ 215,695,961 | [1],[2] | $ 298,124,983 | [1],[2] | $ 326,777,744 | [2] | ||||||||
Denominator: | ||||||||||||||||||||||
Weighted average shares outstanding, Basic | 88,758,859 | 97,209,889 | 98,934,352 | |||||||||||||||||||
Basic EPS | $ 0.83 | $ 0.59 | $ 0.43 | $ 0.59 | $ 1.25 | $ 0.42 | $ 1.10 | $ 0.31 | $ 2.43 | [1] | $ 3.07 | [1] | $ 3.30 | |||||||||
Denominator: | ||||||||||||||||||||||
Weighted average shares outstanding, diluted | 89,291,176 | 97,898,242 | 99,621,199 | |||||||||||||||||||
Diluted EPS | $ 0.83 | $ 0.59 | $ 0.43 | $ 0.58 | $ 1.24 | $ 0.42 | $ 1.10 | $ 0.30 | $ 2.42 | [1] | $ 3.05 | [1] | $ 3.28 | |||||||||
[1] | The sum of the earnings per share for the four quarters may differ from annual earnings per share due to the required method of computing the weighted average shares in interim periods. | |||||||||||||||||||||
[2] | Net income for years ended December 31, 2019, 2018, and 2017 was $215,695,961; $298,124,983 and $326,777,744, respectively. |
Earnings Per Share - Schedule_2
Earnings Per Share - Schedule of Earnings Per Share, Basic and Diluted (Parenthetical) (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||||||||||||
Earnings Per Share [Abstract] | ||||||||||||||||||||||
Net income | $ 72,000,000 | [1] | $ 50,000,000 | [1] | $ 39,000,000 | [1] | $ 55,000,000 | [1] | $ 120,000,000 | [1] | $ 41,000,000 | [1] | $ 107,000,000 | [1] | $ 30,000,000 | [1] | $ 215,695,961 | [1],[2] | $ 298,124,983 | [1],[2] | $ 326,777,744 | [2] |
[1] | The sum of the earnings per share for the four quarters may differ from annual earnings per share due to the required method of computing the weighted average shares in interim periods. | |||||||||||||||||||||
[2] | Net income for years ended December 31, 2019, 2018, and 2017 was $215,695,961; $298,124,983 and $326,777,744, respectively. |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Details) - USD ($) $ / shares in Units, $ in Millions | Mar. 13, 2018 | May 31, 2019 | Dec. 31, 2019 | Dec. 31, 2018 |
Related Party Transaction [Line Items] | ||||
Due from related parties | $ 25 | $ 29 | ||
Underwriting Agreement | ||||
Related Party Transaction [Line Items] | ||||
Stock purchased, shares | 2,500,000 | |||
Sale of stock completion date | Mar. 19, 2018 | |||
Underwriting Agreement | Common Stock | ||||
Related Party Transaction [Line Items] | ||||
Sale of stock (in shares) | 22,250,000 | |||
Stock price per share | $ 44.75 | |||
BRE Ace LLC | ||||
Related Party Transaction [Line Items] | ||||
Equity method investment, ownership percentage | 25.00% | |||
1776 Holdings LLC | ||||
Related Party Transaction [Line Items] | ||||
Equity method investment, ownership percentage | 50.00% | |||
Cash contributed to an equity method investment | $ 2 |
Related Party Transactions - Su
Related Party Transactions - Summary of Amounts Included in Condensed Consolidated Statements of Operations Related to Fee for Service Arrangement (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Related Party Transaction [Line Items] | |||
Equity in earnings from unconsolidated affiliates | $ 4 | $ 1 | |
BRE Ace LLC | |||
Related Party Transaction [Line Items] | |||
Equity in earnings from unconsolidated affiliates | 4 | 1 | |
Commission and other fees | $ 136 | $ 132 | $ 79 |
Business Segments - Additional
Business Segments - Additional Information (Details) | 12 Months Ended |
Dec. 31, 2019segment | |
Segment Reporting [Abstract] | |
Number of operating segments | 2 |
Business Segments - Schedule of
Business Segments - Schedule of Segment Operating Performance Reconciled to Consolidated Amounts (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2019 | [1] | Sep. 30, 2019 | [1] | Jun. 30, 2019 | [1] | Mar. 31, 2019 | [1] | Dec. 31, 2018 | [1] | Sep. 30, 2018 | [1] | Jun. 30, 2018 | [1] | Mar. 31, 2018 | [1] | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||||||||||||||||||||
Total revenues | $ 468 | $ 466 | $ 454 | $ 450 | $ 642 | $ 427 | $ 563 | $ 367 | $ 1,838 | [1] | $ 1,999 | [1] | $ 1,711 | |||||||||
Real Estate and Financing Segment | ||||||||||||||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||||||||||||||||||||
Total revenues | 1,252 | 1,462 | 1,239 | |||||||||||||||||||
Resort Operations and Club Management Segment | ||||||||||||||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||||||||||||||||||||
Total revenues | 418 | 390 | 337 | |||||||||||||||||||
Operating segments | ||||||||||||||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||||||||||||||||||||
Total revenues | 1,706 | 1,884 | 1,606 | |||||||||||||||||||
Operating segments | Real Estate and Financing Segment | ||||||||||||||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||||||||||||||||||||
Total revenues | 1,252 | 1,462 | 1,239 | |||||||||||||||||||
Operating segments | Resort Operations and Club Management Segment | ||||||||||||||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||||||||||||||||||||
Total revenues | [2] | 454 | 422 | 367 | ||||||||||||||||||
Segment Reconciling Items | ||||||||||||||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||||||||||||||||||||
Total revenues | 168 | 147 | 135 | |||||||||||||||||||
Intersegment eliminations | ||||||||||||||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||||||||||||||||||||
Total revenues | [2],[3] | $ (36) | $ (32) | $ (30) | ||||||||||||||||||
[1] | The sum of the earnings per share for the four quarters may differ from annual earnings per share due to the required method of computing the weighted average shares in interim periods. | |||||||||||||||||||||
[2] | Includes charges to the real estate sales and financing segment from the resort operations and club management segment for fulfillment of discounted marketing package stays at resorts. These charges totaled $35 million, $31 million and $29 million for the years ended December 31, 2019, 2018 and 2017, respectively. | |||||||||||||||||||||
[3] | Includes charges to the real estate sales and financing segment from the resort operations and club management segment for the rental of model units to show prospective buyers. These charges totaled less than $2 million for the year ended December 31, 2019 and less than $1 million for each of the years ended December 31, 2018 and 2017, respectively |
Business Segments - Schedule _2
Business Segments - Schedule of Segment Operating Performance Reconciled to Consolidated Amounts (Parenthetical) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2019 | [1] | Sep. 30, 2019 | [1] | Jun. 30, 2019 | [1] | Mar. 31, 2019 | [1] | Dec. 31, 2018 | [1] | Sep. 30, 2018 | [1] | Jun. 30, 2018 | [1] | Mar. 31, 2018 | [1] | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||||||||||||||||||||
Total revenues | $ 468 | $ 466 | $ 454 | $ 450 | $ 642 | $ 427 | $ 563 | $ 367 | $ 1,838 | [1] | $ 1,999 | [1] | $ 1,711 | |||||||||
Intersegment eliminations | ||||||||||||||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||||||||||||||||||||
Total revenues | [2],[3] | (36) | (32) | (30) | ||||||||||||||||||
Intersegment eliminations | Maximum | ||||||||||||||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||||||||||||||||||||
Rental expense for model units | 2 | 1 | 1 | |||||||||||||||||||
Intersegment eliminations | Billing and Collection Services | ||||||||||||||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||||||||||||||||||||
Total revenues | $ (35) | $ (31) | $ (29) | |||||||||||||||||||
[1] | The sum of the earnings per share for the four quarters may differ from annual earnings per share due to the required method of computing the weighted average shares in interim periods. | |||||||||||||||||||||
[2] | Includes charges to the real estate sales and financing segment from the resort operations and club management segment for fulfillment of discounted marketing package stays at resorts. These charges totaled $35 million, $31 million and $29 million for the years ended December 31, 2019, 2018 and 2017, respectively. | |||||||||||||||||||||
[3] | Includes charges to the real estate sales and financing segment from the resort operations and club management segment for the rental of model units to show prospective buyers. These charges totaled less than $2 million for the year ended December 31, 2019 and less than $1 million for each of the years ended December 31, 2018 and 2017, respectively |
Business Segments - Schedule _3
Business Segments - Schedule of Adjusted EBITDA Reconciled to Net Income (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||||||||||||||
Dec. 31, 2019 | [2] | Sep. 30, 2019 | [2] | Jun. 30, 2019 | [2] | Mar. 31, 2019 | [2] | Dec. 31, 2018 | [2] | Sep. 30, 2018 | [2] | Jun. 30, 2018 | [2] | Mar. 31, 2018 | [2] | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||||||||||||||||||||
General and administrative | $ (111,000,000) | $ (117,000,000) | $ (104,000,000) | ||||||||||||||||||||
Depreciation and amortization | (51,000,000) | (36,000,000) | (29,000,000) | ||||||||||||||||||||
Other loss, net | (3,000,000) | (1,000,000) | |||||||||||||||||||||
Interest expense | (43,000,000) | (30,000,000) | (27,000,000) | ||||||||||||||||||||
Income tax (expense) benefit | [1] | (57,000,000) | (105,000,000) | 16,000,000 | |||||||||||||||||||
Equity in earnings from unconsolidated affiliates | 4,000,000 | 1,000,000 | |||||||||||||||||||||
Net income | $ 72,000,000 | $ 50,000,000 | $ 39,000,000 | $ 55,000,000 | $ 120,000,000 | $ 41,000,000 | $ 107,000,000 | $ 30,000,000 | 215,695,961 | [2],[3] | 298,124,983 | [2],[3] | 326,777,744 | [3] | |||||||||
Operating segments | |||||||||||||||||||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||||||||||||||||||||
Segment Adjusted EBITDA | 590,000,000 | 692,000,000 | 563,000,000 | ||||||||||||||||||||
Operating segments | Real Estate and Financing Segment | |||||||||||||||||||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||||||||||||||||||||
Segment Adjusted EBITDA | [4] | 325,000,000 | 447,000,000 | 359,000,000 | |||||||||||||||||||
Operating segments | Resort Operations and Club Management Segment | |||||||||||||||||||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||||||||||||||||||||
Segment Adjusted EBITDA | [4] | 265,000,000 | 245,000,000 | 204,000,000 | |||||||||||||||||||
Segment Reconciling Items | |||||||||||||||||||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||||||||||||||||||||
General and administrative | (111,000,000) | (117,000,000) | (104,000,000) | ||||||||||||||||||||
Depreciation and amortization | (51,000,000) | (36,000,000) | (29,000,000) | ||||||||||||||||||||
License fee expense | (101,000,000) | (98,000,000) | (87,000,000) | ||||||||||||||||||||
Other loss, net | (3,000,000) | (1,000,000) | |||||||||||||||||||||
Interest expense | (43,000,000) | (30,000,000) | (27,000,000) | ||||||||||||||||||||
Equity in earnings from unconsolidated affiliates | [5] | 4,000,000 | 1,000,000 | ||||||||||||||||||||
Other adjustment items | $ (12,000,000) | $ (7,000,000) | $ (6,000,000) | ||||||||||||||||||||
[1] | On December 22, 2017, the United States enacted tax reform legislation, the TCJ Act, resulting in significant modifications to existing law which resulted in a reduction in income tax expense for the year ended December 31, 2017. See Note 17: Income Taxes | ||||||||||||||||||||||
[2] | The sum of the earnings per share for the four quarters may differ from annual earnings per share due to the required method of computing the weighted average shares in interim periods. | ||||||||||||||||||||||
[3] | Net income for years ended December 31, 2019, 2018, and 2017 was $215,695,961; $298,124,983 and $326,777,744, respectively. | ||||||||||||||||||||||
[4] | Includes intersegment eliminations. Refer to our table presenting revenues by reportable segment above for additional discussion. | ||||||||||||||||||||||
[5] | This amount primarily represents our 25 percent interest in BRE Ace LLC and our 50 percent interest in 1776 Holdings, LLC. See Note 9: Investment in Unconsolidated Affiliates |
Business Segments - Schedule _4
Business Segments - Schedule of Adjusted EBITDA Reconciled to Net Income (Parenthetical) (Details) | Dec. 31, 2019 | Dec. 31, 2017 |
BRE Ace Holdings | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Equity method investment, ownership percentage | 25.00% | 25.00% |
1776 Holdings LLC | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Equity method investment, ownership percentage | 50.00% | 50.00% |
Business Segments - Schedule _5
Business Segments - Schedule of Assets Reconciled to Consolidated Amounts (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Segment Reporting Asset Reconciling Item [Line Items] | ||
Assets, variable interest entity | $ 3,079 | $ 2,753 |
Operating segments | ||
Segment Reporting Asset Reconciling Item [Line Items] | ||
Assets, variable interest entity | 2,949 | 2,673 |
Operating segments | Real Estate and Financing Segment | ||
Segment Reporting Asset Reconciling Item [Line Items] | ||
Assets, variable interest entity | 2,753 | 2,501 |
Operating segments | Resort Operations and Club Management Segment | ||
Segment Reporting Asset Reconciling Item [Line Items] | ||
Assets, variable interest entity | 196 | 172 |
Corporate | ||
Segment Reporting Asset Reconciling Item [Line Items] | ||
Assets, variable interest entity | $ 130 | $ 80 |
Business Segments - Schedule _6
Business Segments - Schedule of Capital Expenditures for Property and Equipment Reconciled to Consolidated Amounts (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Segment Reporting Capital Expenditure For Property And Equipment Reconciling Item [Line Items] | |||
Total capital expenditures for property and equipment | $ 37 | $ 44 | $ 35 |
Operating segments | |||
Segment Reporting Capital Expenditure For Property And Equipment Reconciling Item [Line Items] | |||
Total capital expenditures for property and equipment | 24 | 36 | 30 |
Operating segments | Real Estate and Financing Segment | |||
Segment Reporting Capital Expenditure For Property And Equipment Reconciling Item [Line Items] | |||
Total capital expenditures for property and equipment | 19 | 36 | 28 |
Operating segments | Resort Operations and Club Management Segment | |||
Segment Reporting Capital Expenditure For Property And Equipment Reconciling Item [Line Items] | |||
Total capital expenditures for property and equipment | 5 | 2 | |
Corporate | |||
Segment Reporting Capital Expenditure For Property And Equipment Reconciling Item [Line Items] | |||
Total capital expenditures for property and equipment | $ 13 | $ 8 | $ 5 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Long-term Purchase Commitment [Line Items] | ||
Reasonably estimable of possible losses | $ 0 | |
Inventories | ||
Long-term Purchase Commitment [Line Items] | ||
Purchase commitment | $ 473,000,000 | |
Purchase commitment, period (in years) | 11 years | |
Vacation ownership intervals commitment | $ 75,000,000 | $ 18,000,000 |
Other Commitments | ||
Long-term Purchase Commitment [Line Items] | ||
Purchase commitment | $ 25,000,000 |
Commitments and Contingencies_2
Commitments and Contingencies - Schedule of Remaining Purchase Obligations (Details) $ in Millions | Dec. 31, 2019USD ($) | |
Long-term Purchase Commitment [Line Items] | ||
2020 | $ 99 | |
2021 | 229 | |
2022 | 58 | |
2023 | 58 | |
2024 | 40 | |
Thereafter | 14 | |
Total | 498 | |
Inventory Purchase Obligations | ||
Long-term Purchase Commitment [Line Items] | ||
2020 | 84 | |
2021 | 221 | |
2022 | 56 | |
2023 | 58 | |
2024 | 40 | |
Thereafter | 14 | |
Total | 473 | |
Other Commitments | ||
Long-term Purchase Commitment [Line Items] | ||
2020 | 15 | [1] |
2021 | 8 | [1] |
2022 | 2 | [1] |
Total | $ 25 | [1] |
[1] | Primarily relates to commitments related to information technology and brand licensing under the normal course of business |
Supplemental Disclosures of C_2
Supplemental Disclosures of Cash Flow Information - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Other Significant Noncash Transactions [Line Items] | |||
Cash paid for interest | $ 63 | $ 49 | $ 42 |
Cash paid for income taxes | 74 | 153 | 57 |
Cumulative non-cash adjustment,revenue | 38 | ||
Transfer from property and equipment to inventory | 25 | 3 | $ 40 |
Non cash issuance of other debt related to acquisition of property | 23 | ||
Noncash operating activity transaction related to reclassification of deposits on properties for future conversion | $ 40 | ||
Hilton | |||
Other Significant Noncash Transactions [Line Items] | |||
Non-cash financing activity adjustment to equity related to the write-off of expenses | $ 3 |
Condensed Consolidating Guara_3
Condensed Consolidating Guarantor Financial Information - Narrative (Details) - Hilton Grand Vacations Inc. - Senior Unsecured Notes | 1 Months Ended |
Nov. 30, 2016 | |
Hilton Grand Vacations Borrower LLC and Hilton Grand Vacations Borrower Inc. | |
Condensed Financial Statements Captions [Line Items] | |
Ownership percentages | 100.00% |
Domestic Subsidiaries | |
Condensed Financial Statements Captions [Line Items] | |
Ownership percentages | 100.00% |
Condensed Consolidating Guara_4
Condensed Consolidating Guarantor Financial Information - Balance Sheet (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Aug. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
ASSETS | |||||
Cash and cash equivalents | $ 67 | $ 108 | |||
Restricted cash | 85 | $ 21 | 72 | ||
Accounts receivable, net | 174 | 153 | |||
Timeshare financing receivables, net | 1,156 | 1,120 | |||
Inventory | 558 | 527 | |||
Property and equipment, net | 778 | 559 | |||
Operating lease right-of-use assets, net | 60 | ||||
Investments in unconsolidated affiliates | 44 | 38 | |||
Intangible assets, net | 89 | 81 | |||
Other assets | 68 | 95 | |||
TOTAL ASSETS (variable interest entities - $748 and $647) | 3,079 | 2,753 | |||
LIABILITIES AND EQUITY | |||||
Accounts payable, accrued expenses and other | 298 | 324 | |||
Advanced deposits | 115 | 101 | |||
Debt, net | 828 | 604 | |||
Non-recourse debt, net | 747 | 759 | |||
Operating lease liabilities | 76 | ||||
Deferred revenues | 186 | 95 | |||
Deferred income tax liabilities | 259 | 254 | |||
Deferred income tax liabilities | (2) | (1) | |||
Total equity | 570 | 616 | $ 518 | $ 167 | |
TOTAL LIABILITIES AND EQUITY | 3,079 | 2,753 | |||
Parent | |||||
ASSETS | |||||
Cash and cash equivalents | 2 | 4 | |||
Investments in subsidiaries | 568 | 612 | |||
TOTAL ASSETS (variable interest entities - $748 and $647) | 570 | 616 | |||
LIABILITIES AND EQUITY | |||||
Total equity | 570 | 616 | |||
TOTAL LIABILITIES AND EQUITY | 570 | 616 | |||
Issuers | |||||
ASSETS | |||||
Other assets | 5 | 6 | |||
Investments in subsidiaries | 1,364 | 1,210 | |||
TOTAL ASSETS (variable interest entities - $748 and $647) | 1,369 | 1,216 | |||
LIABILITIES AND EQUITY | |||||
Debt, net | 801 | 604 | |||
Total equity | 568 | 612 | |||
TOTAL LIABILITIES AND EQUITY | 1,369 | 1,216 | |||
Guarantors | |||||
ASSETS | |||||
Cash and cash equivalents | 33 | 89 | |||
Restricted cash | 59 | 45 | |||
Accounts receivable, net | 192 | 157 | |||
Timeshare financing receivables, net | 449 | 209 | |||
Inventory | 524 | 502 | |||
Property and equipment, net | 718 | 553 | |||
Operating lease right-of-use assets, net | 58 | ||||
Investments in unconsolidated affiliates | 44 | 38 | |||
Intangible assets, net | 89 | 81 | |||
Other assets | 52 | 41 | |||
Investments in subsidiaries | 136 | 277 | |||
TOTAL ASSETS (variable interest entities - $748 and $647) | 2,354 | 1,992 | |||
LIABILITIES AND EQUITY | |||||
Accounts payable, accrued expenses and other | 329 | 332 | |||
Advanced deposits | 115 | 101 | |||
Debt, net | 27 | ||||
Operating lease liabilities | 74 | ||||
Deferred revenues | 186 | 95 | |||
Deferred income tax liabilities | 259 | 254 | |||
Total equity | 1,364 | 1,210 | |||
TOTAL LIABILITIES AND EQUITY | 2,354 | 1,992 | |||
Non-Guarantors | |||||
ASSETS | |||||
Cash and cash equivalents | 32 | 15 | |||
Restricted cash | 26 | 27 | |||
Accounts receivable, net | 52 | 17 | |||
Timeshare financing receivables, net | 707 | 911 | |||
Inventory | 34 | 25 | |||
Property and equipment, net | 60 | 6 | |||
Operating lease right-of-use assets, net | 2 | ||||
Other assets | 11 | 48 | |||
TOTAL ASSETS (variable interest entities - $748 and $647) | 924 | 1,049 | |||
LIABILITIES AND EQUITY | |||||
Accounts payable, accrued expenses and other | 39 | 13 | |||
Non-recourse debt, net | 747 | 759 | |||
Operating lease liabilities | 2 | ||||
Total equity | 136 | 277 | |||
TOTAL LIABILITIES AND EQUITY | 924 | 1,049 | |||
Eliminations | |||||
ASSETS | |||||
Accounts receivable, net | (70) | (21) | |||
Investments in subsidiaries | (2,068) | (2,099) | |||
TOTAL ASSETS (variable interest entities - $748 and $647) | (2,138) | (2,120) | |||
LIABILITIES AND EQUITY | |||||
Accounts payable, accrued expenses and other | (70) | (21) | |||
Total equity | (2,068) | (2,099) | |||
TOTAL LIABILITIES AND EQUITY | $ (2,138) | $ (2,120) |
Condensed Consolidating Guara_5
Condensed Consolidating Guarantor Financial Information - Statements of Operations (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||||||||||||||
Dec. 31, 2019 | [1] | Sep. 30, 2019 | [1] | Jun. 30, 2019 | [1] | Mar. 31, 2019 | [1] | Dec. 31, 2018 | [1] | Sep. 30, 2018 | [1] | Jun. 30, 2018 | [1] | Mar. 31, 2018 | [1] | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |||||
Revenues | |||||||||||||||||||||||
Total revenues | $ 468,000,000 | $ 466,000,000 | $ 454,000,000 | $ 450,000,000 | $ 642,000,000 | $ 427,000,000 | $ 563,000,000 | $ 367,000,000 | $ 1,838,000,000 | [1] | $ 1,999,000,000 | [1] | $ 1,711,000,000 | ||||||||||
Expenses | |||||||||||||||||||||||
General and administrative | 111,000,000 | 117,000,000 | 104,000,000 | ||||||||||||||||||||
Depreciation and amortization | 51,000,000 | 36,000,000 | 29,000,000 | ||||||||||||||||||||
Total operating expenses | 384,000,000 | 384,000,000 | 390,000,000 | 365,000,000 | 473,000,000 | 364,000,000 | 408,000,000 | 320,000,000 | 1,523,000,000 | [1] | 1,565,000,000 | [1] | 1,374,000,000 | ||||||||||
Interest expense | (43,000,000) | (30,000,000) | (27,000,000) | ||||||||||||||||||||
Equity in earnings from unconsolidated affiliates | 4,000,000 | 1,000,000 | |||||||||||||||||||||
Other loss, net | (3,000,000) | (1,000,000) | |||||||||||||||||||||
Income before income taxes | 74,000,000 | 70,000,000 | 54,000,000 | 75,000,000 | 161,000,000 | 56,000,000 | 146,000,000 | 40,000,000 | 273,000,000 | [1] | 403,000,000 | [1] | 311,000,000 | ||||||||||
Income tax benefit (expense) | [2] | (57,000,000) | (105,000,000) | 16,000,000 | |||||||||||||||||||
Income (loss) before equity in earnings from subsidiaries | 216,000,000 | 298,000,000 | 327,000,000 | ||||||||||||||||||||
Net income | $ 72,000,000 | $ 50,000,000 | $ 39,000,000 | $ 55,000,000 | $ 120,000,000 | $ 41,000,000 | $ 107,000,000 | $ 30,000,000 | 215,695,961 | [1],[3] | 298,124,983 | [1],[3] | 326,777,744 | [3] | |||||||||
Eliminations | |||||||||||||||||||||||
Revenues | |||||||||||||||||||||||
Total revenues | (74,000,000) | (19,000,000) | (11,000,000) | ||||||||||||||||||||
Expenses | |||||||||||||||||||||||
Total operating expenses | (74,000,000) | (19,000,000) | (11,000,000) | ||||||||||||||||||||
Dividends from subsidiary | (562,000,000) | ||||||||||||||||||||||
Income before income taxes | (562,000,000) | ||||||||||||||||||||||
Income (loss) before equity in earnings from subsidiaries | (562,000,000) | ||||||||||||||||||||||
Equity in earnings (losses) from subsidiaries | (271,000,000) | (687,000,000) | (741,000,000) | ||||||||||||||||||||
Net income | (833,000,000) | (687,000,000) | (741,000,000) | ||||||||||||||||||||
Parent | |||||||||||||||||||||||
Expenses | |||||||||||||||||||||||
Dividends from subsidiary | 281,000,000 | ||||||||||||||||||||||
Income before income taxes | 281,000,000 | ||||||||||||||||||||||
Income (loss) before equity in earnings from subsidiaries | 281,000,000 | ||||||||||||||||||||||
Equity in earnings (losses) from subsidiaries | (65,000,000) | 298,000,000 | 327,000,000 | ||||||||||||||||||||
Net income | 216,000,000 | 298,000,000 | 327,000,000 | ||||||||||||||||||||
Issuers | |||||||||||||||||||||||
Expenses | |||||||||||||||||||||||
Interest expense | (43,000,000) | (30,000,000) | (27,000,000) | ||||||||||||||||||||
Dividends from subsidiary | 281,000,000 | ||||||||||||||||||||||
Income before income taxes | 238,000,000 | (30,000,000) | (27,000,000) | ||||||||||||||||||||
Income (loss) before equity in earnings from subsidiaries | 238,000,000 | (30,000,000) | (27,000,000) | ||||||||||||||||||||
Equity in earnings (losses) from subsidiaries | 259,000,000 | 328,000,000 | 354,000,000 | ||||||||||||||||||||
Net income | 497,000,000 | 298,000,000 | 327,000,000 | ||||||||||||||||||||
Guarantors | |||||||||||||||||||||||
Revenues | |||||||||||||||||||||||
Total revenues | 1,696,000,000 | 1,895,000,000 | 1,598,000,000 | ||||||||||||||||||||
Expenses | |||||||||||||||||||||||
General and administrative | 111,000,000 | 116,000,000 | 101,000,000 | ||||||||||||||||||||
Depreciation and amortization | 50,000,000 | 36,000,000 | 29,000,000 | ||||||||||||||||||||
Total operating expenses | 1,458,000,000 | 1,522,000,000 | 1,323,000,000 | ||||||||||||||||||||
Equity in earnings from unconsolidated affiliates | 4,000,000 | 1,000,000 | |||||||||||||||||||||
Other loss, net | (3,000,000) | (1,000,000) | |||||||||||||||||||||
Income before income taxes | 239,000,000 | 372,000,000 | 276,000,000 | ||||||||||||||||||||
Income tax benefit (expense) | (56,000,000) | (105,000,000) | 18,000,000 | ||||||||||||||||||||
Income (loss) before equity in earnings from subsidiaries | 183,000,000 | 267,000,000 | 294,000,000 | ||||||||||||||||||||
Equity in earnings (losses) from subsidiaries | 77,000,000 | 61,000,000 | 60,000,000 | ||||||||||||||||||||
Net income | 260,000,000 | 328,000,000 | 354,000,000 | ||||||||||||||||||||
Non-Guarantors | |||||||||||||||||||||||
Revenues | |||||||||||||||||||||||
Total revenues | 216,000,000 | 123,000,000 | 124,000,000 | ||||||||||||||||||||
Expenses | |||||||||||||||||||||||
General and administrative | 1,000,000 | 3,000,000 | |||||||||||||||||||||
Depreciation and amortization | 1,000,000 | ||||||||||||||||||||||
Total operating expenses | 139,000,000 | 62,000,000 | 62,000,000 | ||||||||||||||||||||
Income before income taxes | 77,000,000 | 61,000,000 | 62,000,000 | ||||||||||||||||||||
Income tax benefit (expense) | (1,000,000) | (2,000,000) | |||||||||||||||||||||
Income (loss) before equity in earnings from subsidiaries | 76,000,000 | 61,000,000 | 60,000,000 | ||||||||||||||||||||
Net income | 76,000,000 | 61,000,000 | 60,000,000 | ||||||||||||||||||||
Sales, Marketing, Brand and Other Fees | |||||||||||||||||||||||
Revenues | |||||||||||||||||||||||
Total revenues | 573,000,000 | 570,000,000 | 544,000,000 | ||||||||||||||||||||
Sales, Marketing, Brand and Other Fees | Eliminations | |||||||||||||||||||||||
Revenues | |||||||||||||||||||||||
Total revenues | (66,000,000) | (12,000,000) | (4,000,000) | ||||||||||||||||||||
Sales, Marketing, Brand and Other Fees | Guarantors | |||||||||||||||||||||||
Revenues | |||||||||||||||||||||||
Total revenues | 632,000,000 | 578,000,000 | 545,000,000 | ||||||||||||||||||||
Sales, Marketing, Brand and Other Fees | Non-Guarantors | |||||||||||||||||||||||
Revenues | |||||||||||||||||||||||
Total revenues | 7,000,000 | 4,000,000 | 3,000,000 | ||||||||||||||||||||
Financing | |||||||||||||||||||||||
Revenues | |||||||||||||||||||||||
Total revenues | 170,000,000 | 158,000,000 | 147,000,000 | ||||||||||||||||||||
Expenses | |||||||||||||||||||||||
Expenses | 53,000,000 | 49,000,000 | 43,000,000 | ||||||||||||||||||||
Financing | Eliminations | |||||||||||||||||||||||
Revenues | |||||||||||||||||||||||
Total revenues | (8,000,000) | (7,000,000) | (7,000,000) | ||||||||||||||||||||
Expenses | |||||||||||||||||||||||
Expenses | (8,000,000) | (7,000,000) | (7,000,000) | ||||||||||||||||||||
Financing | Guarantors | |||||||||||||||||||||||
Revenues | |||||||||||||||||||||||
Total revenues | 77,000,000 | 70,000,000 | 71,000,000 | ||||||||||||||||||||
Expenses | |||||||||||||||||||||||
Expenses | 19,000,000 | 19,000,000 | 19,000,000 | ||||||||||||||||||||
Financing | Non-Guarantors | |||||||||||||||||||||||
Revenues | |||||||||||||||||||||||
Total revenues | 101,000,000 | 95,000,000 | 83,000,000 | ||||||||||||||||||||
Expenses | |||||||||||||||||||||||
Expenses | 42,000,000 | 37,000,000 | 31,000,000 | ||||||||||||||||||||
Resort and Club Management | |||||||||||||||||||||||
Revenues | |||||||||||||||||||||||
Total revenues | 191,000,000 | 172,000,000 | 158,000,000 | ||||||||||||||||||||
Expenses | |||||||||||||||||||||||
Expenses | 46,000,000 | 47,000,000 | 43,000,000 | ||||||||||||||||||||
Resort and Club Management | Guarantors | |||||||||||||||||||||||
Revenues | |||||||||||||||||||||||
Total revenues | 190,000,000 | 172,000,000 | 156,000,000 | ||||||||||||||||||||
Expenses | |||||||||||||||||||||||
Expenses | 46,000,000 | 47,000,000 | 41,000,000 | ||||||||||||||||||||
Resort and Club Management | Non-Guarantors | |||||||||||||||||||||||
Revenues | |||||||||||||||||||||||
Total revenues | 1,000,000 | 2,000,000 | |||||||||||||||||||||
Expenses | |||||||||||||||||||||||
Expenses | 2,000,000 | ||||||||||||||||||||||
Rental and Ancillary Services | |||||||||||||||||||||||
Revenues | |||||||||||||||||||||||
Total revenues | 227,000,000 | 218,000,000 | 179,000,000 | ||||||||||||||||||||
Expenses | |||||||||||||||||||||||
Expenses | 147,000,000 | 133,000,000 | 122,000,000 | ||||||||||||||||||||
Rental and Ancillary Services | Guarantors | |||||||||||||||||||||||
Revenues | |||||||||||||||||||||||
Total revenues | 224,000,000 | 216,000,000 | 177,000,000 | ||||||||||||||||||||
Expenses | |||||||||||||||||||||||
Expenses | 142,000,000 | 130,000,000 | 120,000,000 | ||||||||||||||||||||
Rental and Ancillary Services | Non-Guarantors | |||||||||||||||||||||||
Revenues | |||||||||||||||||||||||
Total revenues | 3,000,000 | 2,000,000 | 2,000,000 | ||||||||||||||||||||
Expenses | |||||||||||||||||||||||
Expenses | 5,000,000 | 3,000,000 | 2,000,000 | ||||||||||||||||||||
Cost Reimbursements | |||||||||||||||||||||||
Revenues | |||||||||||||||||||||||
Total revenues | 168,000,000 | 147,000,000 | 135,000,000 | ||||||||||||||||||||
Expenses | |||||||||||||||||||||||
Expenses | 168,000,000 | 147,000,000 | 135,000,000 | ||||||||||||||||||||
Cost Reimbursements | Guarantors | |||||||||||||||||||||||
Revenues | |||||||||||||||||||||||
Total revenues | 164,000,000 | 143,000,000 | 131,000,000 | ||||||||||||||||||||
Expenses | |||||||||||||||||||||||
Expenses | 164,000,000 | 143,000,000 | 131,000,000 | ||||||||||||||||||||
Cost Reimbursements | Non-Guarantors | |||||||||||||||||||||||
Revenues | |||||||||||||||||||||||
Total revenues | 4,000,000 | 4,000,000 | 4,000,000 | ||||||||||||||||||||
Expenses | |||||||||||||||||||||||
Expenses | 4,000,000 | 4,000,000 | 4,000,000 | ||||||||||||||||||||
Cost of VOI Sales | |||||||||||||||||||||||
Expenses | |||||||||||||||||||||||
Expenses | 127,000,000 | 210,000,000 | 148,000,000 | ||||||||||||||||||||
Cost of VOI Sales | Guarantors | |||||||||||||||||||||||
Expenses | |||||||||||||||||||||||
Expenses | 107,000,000 | 208,000,000 | 145,000,000 | ||||||||||||||||||||
Cost of VOI Sales | Non-Guarantors | |||||||||||||||||||||||
Expenses | |||||||||||||||||||||||
Expenses | 20,000,000 | 2,000,000 | 3,000,000 | ||||||||||||||||||||
Sales and Marketing | |||||||||||||||||||||||
Expenses | |||||||||||||||||||||||
Expenses | 719,000,000 | 728,000,000 | 663,000,000 | ||||||||||||||||||||
Sales and Marketing | Eliminations | |||||||||||||||||||||||
Expenses | |||||||||||||||||||||||
Expenses | (66,000,000) | (12,000,000) | (4,000,000) | ||||||||||||||||||||
Sales and Marketing | Guarantors | |||||||||||||||||||||||
Expenses | |||||||||||||||||||||||
Expenses | 719,000,000 | 725,000,000 | 650,000,000 | ||||||||||||||||||||
Sales and Marketing | Non-Guarantors | |||||||||||||||||||||||
Expenses | |||||||||||||||||||||||
Expenses | 66,000,000 | 15,000,000 | 17,000,000 | ||||||||||||||||||||
License Fee Expense | |||||||||||||||||||||||
Expenses | |||||||||||||||||||||||
Expenses | 101,000,000 | 98,000,000 | 87,000,000 | ||||||||||||||||||||
License Fee Expense | Guarantors | |||||||||||||||||||||||
Expenses | |||||||||||||||||||||||
Expenses | 100,000,000 | 98,000,000 | 87,000,000 | ||||||||||||||||||||
License Fee Expense | Non-Guarantors | |||||||||||||||||||||||
Expenses | |||||||||||||||||||||||
Expenses | 1,000,000 | ||||||||||||||||||||||
Sales of VOIs, Net | |||||||||||||||||||||||
Revenues | |||||||||||||||||||||||
Total revenues | 509,000,000 | 734,000,000 | 548,000,000 | ||||||||||||||||||||
Sales of VOIs, Net | Guarantors | |||||||||||||||||||||||
Revenues | |||||||||||||||||||||||
Total revenues | 409,000,000 | 716,000,000 | 518,000,000 | ||||||||||||||||||||
Sales of VOIs, Net | Non-Guarantors | |||||||||||||||||||||||
Revenues | |||||||||||||||||||||||
Total revenues | $ 100,000,000 | $ 18,000,000 | $ 30,000,000 | ||||||||||||||||||||
[1] | The sum of the earnings per share for the four quarters may differ from annual earnings per share due to the required method of computing the weighted average shares in interim periods. | ||||||||||||||||||||||
[2] | On December 22, 2017, the United States enacted tax reform legislation, the TCJ Act, resulting in significant modifications to existing law which resulted in a reduction in income tax expense for the year ended December 31, 2017. See Note 17: Income Taxes | ||||||||||||||||||||||
[3] | Net income for years ended December 31, 2019, 2018, and 2017 was $215,695,961; $298,124,983 and $326,777,744, respectively. |
Condensed Consolidating Guara_6
Condensed Consolidating Guarantor Financial Information - Statements of Cash Flows (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Operating Activities | |||
Net cash provided by (used in) operating activities | $ 145 | $ (159) | $ 356 |
Investing Activities | |||
Capital expenditures for property and equipment | (37) | (44) | (35) |
Software capitalization costs | (26) | (19) | (12) |
Return of investment from unconsolidated affiliates | 11 | ||
Investments in unconsolidated affiliates | (2) | (10) | (40) |
Net cash used in investing activities | (65) | (62) | (87) |
Financing Activities | |||
Issuance of debt | 485 | 530 | |
Issuance of non-recourse debt | 365 | 663 | 350 |
Repayment of debt | (290) | (408) | (10) |
Repayment of non-recourse debt | (376) | (485) | (459) |
Debt issuance costs | (6) | (12) | (5) |
Proceeds from stock option exercises | 1 | ||
Repurchase and retirement of common stock | (283) | (183) | |
Payment of withholding taxes on vesting of restricted stock units | (4) | (4) | |
Proceeds from employee stock plan purchases | 3 | ||
Other financing activity | (2) | ||
Capital contribution | 3 | ||
Net cash (used in) provided by financing activities | (108) | 104 | (123) |
Net (decrease) increase in cash, cash equivalents and restricted cash | (28) | (117) | 146 |
Cash, cash equivalents and restricted cash, beginning of period | 180 | 297 | 151 |
Cash, cash equivalents and restricted cash, end of period | 152 | 180 | 297 |
Eliminations | |||
Operating Activities | |||
Net cash provided by (used in) operating activities | (815) | (3) | (8) |
Investing Activities | |||
Dividends from subsidiary | (562) | ||
Net cash used in investing activities | (562) | ||
Financing Activities | |||
Intercompany transfers | 1,377 | 3 | 8 |
Net cash (used in) provided by financing activities | 1,377 | 3 | 8 |
Parent | |||
Operating Activities | |||
Net cash provided by (used in) operating activities | 216 | ||
Investing Activities | |||
Dividends from subsidiary | 281 | ||
Net cash used in investing activities | 281 | ||
Financing Activities | |||
Repurchase and retirement of common stock | (283) | ||
Payment of withholding taxes on vesting of restricted stock units | (4) | ||
Proceeds from employee stock plan purchases | 3 | ||
Intercompany transfers | (215) | 4 | |
Net cash (used in) provided by financing activities | (499) | 4 | |
Net (decrease) increase in cash, cash equivalents and restricted cash | (2) | 4 | |
Cash, cash equivalents and restricted cash, beginning of period | 4 | ||
Cash, cash equivalents and restricted cash, end of period | 2 | 4 | |
Issuers | |||
Operating Activities | |||
Net cash provided by (used in) operating activities | 498 | (28) | (27) |
Investing Activities | |||
Dividends from subsidiary | 281 | ||
Net cash used in investing activities | 281 | ||
Financing Activities | |||
Issuance of debt | 485 | 530 | |
Repayment of debt | (290) | (408) | (10) |
Debt issuance costs | (7) | ||
Repurchase and retirement of common stock | (183) | ||
Payment of withholding taxes on vesting of restricted stock units | (4) | ||
Capital contribution | 3 | ||
Intercompany transfers | (974) | 97 | 37 |
Net cash (used in) provided by financing activities | (779) | 28 | 27 |
Guarantors | |||
Operating Activities | |||
Net cash provided by (used in) operating activities | (7) | 163 | 156 |
Investing Activities | |||
Capital expenditures for property and equipment | (33) | (37) | (33) |
Software capitalization costs | (26) | (19) | (12) |
Return of investment from unconsolidated affiliates | 11 | ||
Investments in unconsolidated affiliates | (2) | (10) | (40) |
Net cash used in investing activities | (61) | (55) | (85) |
Financing Activities | |||
Proceeds from stock option exercises | 1 | ||
Other financing activity | (2) | ||
Intercompany transfers | 28 | (233) | 59 |
Net cash (used in) provided by financing activities | 26 | (233) | 60 |
Net (decrease) increase in cash, cash equivalents and restricted cash | (42) | (125) | 131 |
Cash, cash equivalents and restricted cash, beginning of period | 134 | 259 | 128 |
Cash, cash equivalents and restricted cash, end of period | 92 | 134 | 259 |
Non-Guarantors | |||
Operating Activities | |||
Net cash provided by (used in) operating activities | 253 | (291) | 235 |
Investing Activities | |||
Capital expenditures for property and equipment | (4) | (7) | (2) |
Net cash used in investing activities | (4) | (7) | (2) |
Financing Activities | |||
Issuance of non-recourse debt | 365 | 663 | 350 |
Repayment of non-recourse debt | (376) | (485) | (459) |
Debt issuance costs | (6) | (5) | (5) |
Intercompany transfers | (216) | 129 | (104) |
Net cash (used in) provided by financing activities | (233) | 302 | (218) |
Net (decrease) increase in cash, cash equivalents and restricted cash | 16 | 4 | 15 |
Cash, cash equivalents and restricted cash, beginning of period | 42 | 38 | 23 |
Cash, cash equivalents and restricted cash, end of period | $ 58 | $ 42 | $ 38 |
Selected Quarterly Financial _3
Selected Quarterly Financial Information - Schedule of Selected Quarterly Financial Information (unaudited) (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2019 | [1] | Sep. 30, 2019 | [1] | Jun. 30, 2019 | [1] | Mar. 31, 2019 | [1] | Dec. 31, 2018 | [1] | Sep. 30, 2018 | [1] | Jun. 30, 2018 | [1] | Mar. 31, 2018 | [1] | Dec. 31, 2019 | [1] | Dec. 31, 2018 | [1] | Dec. 31, 2017 | ||
Selected Quarterly Financial Information [Abstract] | ||||||||||||||||||||||
Total revenues | $ 468,000,000 | $ 466,000,000 | $ 454,000,000 | $ 450,000,000 | $ 642,000,000 | $ 427,000,000 | $ 563,000,000 | $ 367,000,000 | $ 1,838,000,000 | $ 1,999,000,000 | $ 1,711,000,000 | |||||||||||
Total operating expenses | 384,000,000 | 384,000,000 | 390,000,000 | 365,000,000 | 473,000,000 | 364,000,000 | 408,000,000 | 320,000,000 | 1,523,000,000 | 1,565,000,000 | 1,374,000,000 | |||||||||||
Income before income taxes | 74,000,000 | 70,000,000 | 54,000,000 | 75,000,000 | 161,000,000 | 56,000,000 | 146,000,000 | 40,000,000 | 273,000,000 | 403,000,000 | 311,000,000 | |||||||||||
Net income | $ 72,000,000 | $ 50,000,000 | $ 39,000,000 | $ 55,000,000 | $ 120,000,000 | $ 41,000,000 | $ 107,000,000 | $ 30,000,000 | $ 215,695,961 | [2] | $ 298,124,983 | [2] | $ 326,777,744 | [2] | ||||||||
Basic | $ 0.83 | $ 0.59 | $ 0.43 | $ 0.59 | $ 1.25 | $ 0.42 | $ 1.10 | $ 0.31 | $ 2.43 | $ 3.07 | $ 3.30 | |||||||||||
Diluted | $ 0.83 | $ 0.59 | $ 0.43 | $ 0.58 | $ 1.24 | $ 0.42 | $ 1.10 | $ 0.30 | $ 2.42 | $ 3.05 | $ 3.28 | |||||||||||
[1] | The sum of the earnings per share for the four quarters may differ from annual earnings per share due to the required method of computing the weighted average shares in interim periods. | |||||||||||||||||||||
[2] | Net income for years ended December 31, 2019, 2018, and 2017 was $215,695,961; $298,124,983 and $326,777,744, respectively. |
Subsequent Events - Additional
Subsequent Events - Additional Information (Details) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | ||
Jan. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Subsequent Event [Line Items] | ||||
Transfer from property and equipment to inventory | $ 25 | $ 3 | $ 40 | |
Subsequent Event | New York | ||||
Subsequent Event [Line Items] | ||||
Transfer from property and equipment to inventory | $ 199 | |||
Subsequent Event | MEXICO | ||||
Subsequent Event [Line Items] | ||||
Transfer from property and equipment to inventory | 50 | |||
Subsequent Event | Revolving Credit Facility | ||||
Subsequent Event [Line Items] | ||||
Debt instrument borrowed amount | 20 | |||
Debt instrument repaid amount | $ 25 |