Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Jan. 31, 2016 | Jun. 30, 2015 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2015 | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | FY | ||
Entity Registrant Name | WYNDHAM WORLDWIDE CORP | ||
Entity Central Index Key | 1,361,658 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 112,508,047 | ||
Entity Well-know Seasoned Issuer | Yes | ||
Entity Public Float | $ 9,574,693,998 | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No |
Consolidated Statements Of Inco
Consolidated Statements Of Income - USD ($) $ in Millions | 12 Months Ended | |||||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||||
Net revenues | ||||||
Service and membership fees | $ 2,519 | $ 2,431 | $ 2,329 | |||
Vacation ownership interest sales | 1,604 | 1,485 | 1,379 | |||
Franchise fees | 674 | 632 | 599 | |||
Consumer financing | 427 | 427 | 426 | |||
Other | 312 | 306 | 276 | |||
Net revenues | 5,536 | [1] | 5,281 | [2] | 5,009 | [3] |
Expenses | ||||||
Operating | 2,461 | 2,262 | 2,161 | |||
Cost of vacation ownership interests | 165 | 171 | 155 | |||
Consumer financing interest | 74 | 71 | 78 | |||
Marketing and reservation | 813 | 802 | 751 | |||
General and administrative | 761 | 755 | 720 | |||
Loss on sale and asset impairments | 7 | 35 | 8 | |||
Restructuring | 6 | 11 | 10 | |||
Depreciation and amortization | 234 | 233 | 216 | |||
Total expenses | 4,521 | 4,340 | 4,099 | |||
Operating income | 1,015 | 941 | 910 | |||
Other (income)/expense, net | (17) | (7) | (6) | |||
Interest expense | 125 | 113 | 131 | |||
Early extinguishment of debt | 0 | 0 | 111 | |||
Interest income | (9) | (10) | (9) | |||
Income before income taxes | 916 | 845 | 683 | |||
Provision for income taxes | 304 | 316 | 250 | |||
Net income | 612 | 529 | 433 | |||
Net income attributable to noncontrolling interest | 0 | 0 | (1) | |||
Net income attributable to Wyndham shareholders | $ 612 | $ 529 | $ 432 | |||
Earnings per share | ||||||
Basic (in dollars per share) | $ 5.18 | $ 4.22 | $ 3.25 | |||
Diluted (in dollars per share) | $ 5.14 | $ 4.18 | $ 3.21 | |||
[1] | Includes $71 million of intercompany segment revenues in the Company’s Hotel Group segment comprised of (i) $57 million of intersegment licensing fees for use of the Wyndham trade name, (ii) $8 million of room revenues at a Company owned hotel and (iii) $6 million of other fees primarily associated with the Wyndham Rewards program. Such revenues are offset in expenses at the Company’s Vacation Ownership segment. | |||||
[2] | Includes $62 million of intercompany segment revenues in the Company’s Hotel Group segment comprised of (i) $41 million of intersegment licensing fees for use of the Wyndham trade name, (ii) $8 million of room revenues at a Company owned hotel, (iii) $7 million of hotel management reimbursable revenues and (iv) $6 million of other fees primarily associated with the Wyndham Rewards program. Such revenues are offset in expenses at the Company’s Vacation Ownership segment. | |||||
[3] | Includes $59 million of intercompany segment revenues in the Company’s Hotel Group segment comprised of (i) $39 million of intersegment licensing fees for use of the Wyndham trade name, (ii) $8 million of room revenues at a Company owned hotel, (iii) $6 million of hotel management reimbursable fees and (iv) $6 million of other revenues primarily associated with the Wyndham Rewards program. Such revenues are offset in expenses at the Company’s Vacation Ownership segment. |
Consolidated Statements Of Comp
Consolidated Statements Of Comprehensive Income - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Net Income | |||
Net income | $ 612 | $ 529 | $ 433 |
Other comprehensive loss, net of tax | |||
Foreign currency translation adjustments | (106) | (92) | (33) |
Unrealized gains on cash flow hedges | 5 | 0 | 1 |
Defined benefit pension plans | 3 | (6) | 3 |
Other comprehensive loss, net of tax | (98) | (98) | (29) |
Comprehensive income | 514 | 431 | 404 |
Net income attributable to noncontrolling interest | 0 | 0 | (1) |
Comprehensive income attributable to Wyndham shareholders | $ 514 | $ 431 | $ 403 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 | |
Assets | |||
Cash and cash equivalents | $ 171 | $ 183 | |
Trade receivables, net | 586 | 516 | |
Vacation ownership contract receivables, net | 272 | 285 | |
Inventory | [1] | 295 | 302 |
Prepaid expenses | 153 | 147 | |
Deferred income taxes | 126 | 114 | |
Other current assets | 266 | 320 | |
Total current assets | 1,869 | 1,867 | |
Long-term vacation ownership contract receivables, net | 2,438 | 2,406 | |
Non-current inventory | 964 | 860 | |
Property and equipment, net | 1,399 | 1,500 | |
Goodwill | 1,563 | 1,551 | |
Trademarks, net | 726 | 717 | |
Franchise agreements and other intangibles, net | 397 | 397 | |
Other non-current assets | 360 | 381 | |
Total assets | 9,716 | 9,679 | |
Liabilities and Equity | |||
Securitized vacation ownership debt | 209 | 214 | |
Current portion of long-term debt | 44 | 47 | |
Accounts payable | 394 | 385 | |
Deferred income | 483 | 464 | |
Accrued expenses and other current liabilities | 827 | 749 | |
Total current liabilities | 1,957 | 1,859 | |
Long-term securitized vacation ownership debt | 1,921 | 1,951 | |
Long-term debt | 3,034 | 2,841 | |
Deferred income taxes | 1,252 | 1,202 | |
Deferred income | 198 | 199 | |
Other non-current liabilities | 401 | 370 | |
Total liabilities | $ 8,763 | $ 8,422 | |
Commitments and contingencies (Note 17) | |||
Stockholders’ equity: | |||
Preferred stock, $.01 par value, authorized 6,000,000 shares, none issued and outstanding | $ 0 | $ 0 | |
Common stock, $.01 par value, authorized 600,000,000 shares, issued 217,534,615 shares in 2015 and 216,862,509 shares in 2014 | 2 | 2 | |
Treasury stock, at cost – 103,730,568 shares in 2015 and 95,806,076 shares in 2014 | (4,493) | (3,843) | |
Additional paid-in capital | 3,923 | 3,889 | |
Retained earnings | 1,592 | 1,183 | |
Accumulated other comprehensive (loss)/income | (74) | 24 | |
Total stockholders’ equity | 950 | 1,255 | |
Noncontrolling interest | 3 | 2 | |
Total equity | 953 | 1,257 | |
Total liabilities and equity | $ 9,716 | $ 9,679 | |
[1] | Represents inventory that the Company expects to sell within the next 12 months. |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2015 | Dec. 31, 2014 |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest [Abstract] | ||
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 6,000,000 | 6,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 600,000,000 | 600,000,000 |
Common Stock, Shares, Issued | 217,534,615 | 216,862,509 |
Treasury Stock, Shares | 103,730,568 | 95,806,076 |
Consolidated Statements Of Cash
Consolidated Statements Of Cash Flows - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Operating Activities | ||||
Net income | $ 612 | $ 529 | $ 433 | |
Adjustments to reconcile net income to net cash provided by operating activities: | ||||
Depreciation and amortization | 234 | 233 | 216 | |
Provision for loan losses | 248 | 260 | 349 | |
Deferred income taxes | 40 | 47 | 64 | |
Stock-based compensation | 58 | 57 | 53 | |
Excess tax benefits from stock-based compensation | (17) | (34) | (15) | |
Loss on sale and asset impairments | 7 | 35 | 8 | |
Loss on early extinguishment of debt | 0 | 0 | 106 | |
Non-cash interest | 22 | 23 | 26 | |
Net change in assets and liabilities, excluding the impact of acquisitions: | ||||
Trade receivables | (46) | (29) | (63) | |
Vacation ownership contract receivables | (295) | (221) | (255) | |
Inventory | (25) | (17) | 32 | |
Prepaid expenses | (9) | (3) | (30) | |
Other current assets | 32 | (12) | 0 | |
Accounts payable, accrued expenses and other current liabilities | 109 | 84 | 46 | |
Deferred income | 21 | 38 | 39 | |
Deferred income | 0 | (6) | (1) | |
Net cash provided by operating activities | 991 | 984 | 1,008 | |
Investing Activities | ||||
Property and equipment additions | (222) | (235) | (238) | |
Net assets acquired, net of cash acquired | (96) | (34) | (129) | |
Payments of development advance notes | (9) | (18) | (65) | |
Proceeds from development advance notes | 6 | 6 | 0 | |
Equity investments and loans | (14) | (8) | (3) | |
Proceeds from sale of business and asset sales | 26 | 11 | 6 | |
Decrease/(increase) in securitization restricted cash | 4 | (4) | 29 | |
(Increase)/decrease in escrow deposit restricted cash | (5) | 10 | (2) | |
Other, net | 8 | (4) | 1 | |
Net cash used in investing activities | (302) | (276) | (401) | |
Financing Activities | ||||
Proceeds from securitized borrowings | 1,712 | 2,143 | 1,734 | |
Principal payments on securitized borrowings | (1,747) | (1,887) | (1,785) | |
Proceeds from long-term debt | 110 | 164 | 405 | |
Principal payments on long-term debt | (173) | (211) | (411) | |
Repayments of commercial paper, net | (79) | (21) | (63) | |
Proceeds from notes issued | 348 | 0 | 843 | |
Repurchase of notes | 0 | 0 | (636) | |
Proceeds from vacation ownership inventory arrangements | 70 | 0 | 96 | |
Repayments of vacation ownership inventory arrangements | (7) | (15) | 0 | |
Dividends to shareholders | [1] | (202) | (179) | (156) |
Repurchase of common stock | (658) | (646) | (593) | |
Proceeds from stock option exercises | 0 | 1 | 0 | |
Excess tax benefits from stock-based compensation | 17 | 34 | 15 | |
Debt issuance costs | (21) | (19) | (23) | |
Net share settlement of incentive equity awards | (42) | (64) | (31) | |
Other, net | (3) | (1) | 0 | |
Net cash used in financing activities | (675) | (701) | (605) | |
Effect of changes in exchange rates on cash and cash equivalents | (26) | (18) | (3) | |
Net decrease in cash and cash equivalents | (12) | (11) | (1) | |
Cash and cash equivalents, beginning of period | 183 | 194 | 195 | |
Cash and cash equivalents, end of period | $ 171 | $ 183 | $ 194 | |
[1] | For each of the quarterly periods ended March 31, June 30, September 30 and December 31, 2015, 2014 and 2013, the Company paid cash dividends of $0.42, $0.35 and $0.29 per share, respectively. |
Consolidated Statements Of Equi
Consolidated Statements Of Equity - USD ($) shares in Millions, $ in Millions | Total | Common Stock [Member] | Treasury Stock [Member] | Additional Paid-In Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income/(Loss) [Member] | Non-controlling Interest [Member] |
Balance, shares at Dec. 31, 2012 | 137 | ||||||
Beginning Balance, value at Dec. 31, 2012 | $ 1,931 | $ 2 | $ (2,601) | $ 3,820 | $ 558 | $ 151 | $ 1 |
Net income | 433 | 432 | 1 | ||||
Other comprehensive loss | (29) | (29) | |||||
Issuance of shares for RSU vesting, shares | 1 | ||||||
Net share settlement of incentive equity awards | (31) | (31) | |||||
Change in deferred compensation | 53 | 53 | |||||
Repurchase of common stock, shares | (10) | ||||||
Repurchase of common stock, value | (590) | (590) | |||||
Change in excess tax benefit on equity awards | 15 | 15 | |||||
Dividends | (158) | (158) | |||||
Other | 1 | 1 | |||||
Balance, shares at Dec. 31, 2013 | 128 | ||||||
Ending Balance, value at Dec. 31, 2013 | 1,625 | $ 2 | (3,191) | 3,858 | 832 | 122 | 2 |
Net income | 529 | 529 | |||||
Other comprehensive loss | (98) | (98) | |||||
Exercise of stock options and SSARs, shares | 1 | ||||||
Exercise of stock options and SSARs | 1 | 1 | |||||
Issuance of shares for RSU vesting, shares | 1 | ||||||
Net share settlement of incentive equity awards | (64) | (64) | |||||
Change in deferred compensation | 57 | 57 | |||||
Change in deferred compensation for Board of Directors | 1 | 1 | |||||
Repurchase of common stock, shares | (9) | ||||||
Repurchase of common stock, value | (652) | (652) | |||||
Change in excess tax benefit on equity awards | 34 | 34 | |||||
Dividends | (178) | (178) | |||||
Other | 2 | 2 | |||||
Balance, shares at Dec. 31, 2014 | 121 | ||||||
Ending Balance, value at Dec. 31, 2014 | 1,257 | $ 2 | (3,843) | 3,889 | 1,183 | 24 | 2 |
Net income | 612 | 612 | 0 | ||||
Other comprehensive loss | (98) | (98) | |||||
Issuance of shares for RSU vesting, shares | 1 | ||||||
Net share settlement of incentive equity awards | (42) | (42) | |||||
Change in deferred compensation | 58 | 58 | |||||
Change in deferred compensation for Board of Directors | 1 | 1 | |||||
Repurchase of common stock, shares | (8) | ||||||
Repurchase of common stock, value | (650) | (650) | |||||
Change in excess tax benefit on equity awards | 17 | 17 | |||||
Dividends | (203) | (203) | |||||
Other | 1 | 0 | |||||
Balance, shares at Dec. 31, 2015 | 114 | ||||||
Ending Balance, value at Dec. 31, 2015 | $ 953 | $ 2 | $ (4,493) | $ 3,923 | $ 1,592 | $ (74) | $ 3 |
Basis Of Presentation
Basis Of Presentation | 12 Months Ended |
Dec. 31, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis Of Presentation | Basis of Presentation Wyndham Worldwide Corporation (“Wyndham” or the “Company”) is a global provider of hospitality services and products. The accompanying Consolidated Financial Statements include the accounts and transactions of Wyndham, as well as the entities in which Wyndham directly or indirectly has a controlling financial interest. The accompanying Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America. All intercompany balances and transactions have been eliminated in the Consolidated Financial Statements. In presenting the Consolidated Financial Statements, management makes estimates and assumptions that affect the amounts reported and related disclosures. Estimates, by their nature, are based on judgment and available information. Accordingly, actual results could differ from those estimates. In management’s opinion, the Consolidated Financial Statements contain all normal recurring adjustments necessary for a fair presentation of annual results reported. Business Description The Company operates in the following business segments: • Hotel Group —primarily franchises hotels in the upscale, upper midscale, midscale, economy and extended stay segments and provides hotel management services for full-service and select limited-service hotels. • Destination Network (formerly known as Vacation Exchange and Rentals) —provides vacation exchange services and products to owners of intervals of vacation ownership interests (“VOIs”) and markets vacation rental properties primarily on behalf of independent owners. • Vacation Ownership —develops, markets and sells VOIs to individual consumers, provides consumer financing in connection with the sale of VOIs and provides property management services at resorts. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies PRINCIPLES OF CONSOLIDATION When evaluating an entity for consolidation, the Company first determines whether an entity is within the scope of the guidance for consolidation of variable interest entities (“VIE”) and if it is deemed to be a VIE. If the entity is considered to be a VIE, the Company determines whether it would be considered the entity’s primary beneficiary. The Company consolidates those VIEs for which it has determined that it is the primary beneficiary. The Company will consolidate an entity not deemed a VIE upon a determination that it has a controlling financial interest. For entities where the Company does not have a controlling financial interest, the investments in such entities are classified as available-for-sale securities or accounted for using the equity or cost method, as appropriate. REVENUE RECOGNITION Hotel Group The principal source of revenues from franchising hotels is ongoing franchise fees, which are primarily comprised of royalty, marketing and reservation fees. Royalty, marketing and reservation fees are typically a percentage of gross room revenues of each franchised hotel and are recognized as revenue upon becoming due from the franchisee. An estimate of uncollectible ongoing royalty fees is charged to bad debt expense and included in operating expenses on the Consolidated Statements of Income. Hotel Group revenues also include initial franchise fees, which are recognized as revenues when all material services or conditions have been substantially performed, which is either when a franchised hotel opens for business or when a franchise agreement is terminated after it has been determined that the franchised hotel will not open. The Company’s franchise agreements also require the payment of marketing and reservation fees, which are intended to reimburse the Company for expenses associated with operating an international, centralized, brand-specific reservations system, e-commerce channels such as the Company’s brand.com websites, as well as access to third-party distribution channels, such as online travel agents, advertising and marketing programs, global sales efforts, operations support, training and other related services. Marketing and reservation fees are recognized as revenue upon becoming due from the franchisee. An estimate of uncollectible ongoing marketing and reservation fees is charged to bad debt expense and included in marketing and reservation expenses in the Consolidated Statements of Income. The Company is contractually obligated to expend the marketing and reservation fees it collects from franchisees in accordance with the franchise agreements; as such, revenues earned in excess of costs incurred are accrued as a liability for future marketing or reservation costs. Costs incurred in excess of revenues earned are expensed as incurred. In accordance with its franchise agreements, the Company includes an allocation of costs required to carry out marketing and reservation activities within marketing and reservation expenses. The Company also earns revenues from its Wyndham Rewards loyalty program when a member stays at a participating hotel. These revenues are derived from a fee the Company charges as a percentage of room revenues generated from such stay. This fee is recognized as revenue upon becoming due from the franchisee. Since the Company is obligated to expend the fees it collects from franchisees, revenues earned in excess of costs incurred are accrued as a liability for future costs to support the program. The Company also provides management services for hotels under management contracts, which offer all the benefits of a global brand and a full range of management, marketing and reservation services. In addition to the standard franchise services described above, the Company’s hotel management business provides hotel owners with professional oversight and comprehensive operations support services such as hiring, training and supervising the managers and employees that operate the hotels as well as annual budget preparation, financial analysis and extensive food and beverage services. The Company’s standard management agreement typically has a term of up to 25 years. The Company’s management fees are comprised of base fees, which are typically a specified percentage of gross revenues from hotel operations, and incentive fees, which are typically a specified percentage of a hotel’s gross operating profit. Management fee revenues are recognized when earned in accordance with the terms of the contract and recorded as a component of franchise fee revenues on the Consolidated Statements of Income. Management fee revenues were $23 million , $11 million and $8 million during 2015 , 2014 and 2013 , respectively. The Company also recognizes as revenue reimbursable payroll costs for operational employees at certain of the Company’s managed hotels. Although these costs are funded by hotel owners, accounting guidance requires the Company to report these fees on a gross basis as both revenues and expenses. The revenues are recorded as a component of service and membership fees while the offsetting expenses are reflected as a component of operating expenses on the Consolidated Statements of Income. As such, there is no effect on the Company’s operating income. Revenues related to these payroll costs were $273 million , $148 million and $129 million in 2015 , 2014 and 2013 , respectively. The Company also earns revenues from hotel ownership. The Company’s ownership portfolio is limited to two hotels in locations where it has developed timeshare units. Revenues earned from the Company’s owned hotels consist primarily of (i) gross room night rentals, (ii) food and beverage services and (iii) on-site spa, casino, golf and shop revenues. These revenues are recognized upon the completion of services to its guests. Destination Network As a provider of vacation exchange services, the Company enters into affiliation agreements with developers of vacation ownership properties to allow owners of intervals of VOIs to trade their intervals for intervals at other properties affiliated with the Company’s RCI brand and, for some members, for other leisure-related services and products. Additionally, as a marketer of vacation rental properties, generally the Company enters into contracts for exclusive periods of time with property owners to market the rental of such properties to rental customers. The Company’s RCI brand derives a majority of its revenues from annual membership dues and exchange fees from RCI members trading their intervals. Revenues from annual membership dues represent the annual fees from RCI members who, for additional fees, have the right to exchange their intervals for intervals at other properties affiliated with the Company’s exchange network and, for certain members, for other leisure-related services and products. The Company recognizes revenues from annual membership dues on a straight-line basis over the membership period during which delivery of publications, if applicable, and other services are provided to the members. Exchange fees are generated when members exchange their intervals for intervals at other properties affiliated with the Company’s exchange network or for other leisure-related services and products. Exchange fees are recognized as revenues, net of expected cancellations, when the exchange requests have been confirmed to the member. The Company’s vacation rental brands primarily derive their revenues from fees, which generally average between 20% and 45% of the gross booking fees. For properties which the Company owns, manages or operates under long-term capital and operating leases (which represent less than 10% of the Company’s portfolio), the Company receives 100% of the revenues. The majority of the time, the Company acts on behalf of the owners of the rental properties to generate the Company’s fees. The Company provides reservation services to the independent property owners and receives the agreed-upon fee for the services provided. The Company remits the gross rental fee received from the renter to the independent property owner, net of the Company’s agreed-upon fee. Revenues from such fees that are recognized in the period that the rental reservation is made, are recorded net of expected cancellations. Cancellations for 2015 , 2014 and 2013 each totaled less than 4% of rental transactions booked. Upon confirmation of the rental reservation, the rental customer and property owner generally have a direct relationship for additional services to be performed. The Company also earns rental fees in connection with properties which it owns, manages or operates and such fees are recognized ratably over the rental customer’s stay, as this is the point at which the service is rendered. The Company’s revenues are earned when evidence of an arrangement exists, delivery has occurred or the services have been rendered, the seller’s price to the buyer is fixed or determinable, and collectability is reasonably assured. Vacation Ownership The Company develops, markets and sells VOIs to individual consumers, provides property management services at resorts and provides consumer financing in connection with the sale of VOIs. The Company’s vacation ownership business derives the majority of its revenues from sales of VOIs and other revenues from consumer financing and property management. The Company’s sales of VOIs are either cash sales or developer-financed sales. In order for the Company to recognize revenues from VOI sales under the full accrual method of accounting described in the guidance for sales of real estate for fully constructed inventory, a binding sales contract must have been executed, the statutory rescission period must have expired (after which time the purchasers are not entitled to a refund except for non-delivery by the Company), receivables must have been deemed collectible and the remainder of the Company’s obligations must have been substantially completed. In addition, before the Company recognizes any revenues from VOI sales, the purchaser of the VOI must have met the initial investment criteria and, as applicable, the continuing investment criteria, by executing a legally binding financing contract. A purchaser has met the initial investment criteria when a minimum down payment of 10% is received by the Company. In accordance with the guidance for accounting for real estate time-sharing transactions, the Company must also take into consideration the fair value of certain incentives provided to the purchaser when assessing the adequacy of the purchaser’s initial investment. In those cases where financing is provided to the purchaser by the Company, the purchaser is obligated to remit monthly payments under financing contracts that represent the purchaser’s continuing investment. If all of the criteria for a VOI sale to qualify under the full accrual method of accounting have been met, as discussed above, except that construction of the VOI purchased is not complete, the Company recognizes revenues using the percentage-of-completion (“POC”) method of accounting provided that the preliminary construction phase is complete and that a minimum sales level has been met (to assure that the property will not revert to a rental property). The preliminary stage of development is deemed to be complete when the engineering and design work is complete, the construction contracts have been executed, the site has been cleared, prepared and excavated, and the building foundation is complete. The completion percentage is determined by the proportion of real estate inventory costs incurred to total estimated costs. These estimated costs are based upon historical experience and the related contractual terms. The remaining revenues and related costs of sales, including commissions and direct expenses, are deferred and recognized as the remaining costs are incurred. During 2015 , gross VOI sales were increased by $13 million representing the net change in revenues that was deferred under the POC method of accounting. As of December 31, 2015 , no revenues were deferred under the POC method of accounting. Deferred revenues under the POC method of accounting were $12 million during 2014 . During 2013 , an immaterial amount of revenues were deferred under the POC method of accounting. The Company also offers consumer financing as an option to customers purchasing VOIs, which are typically collateralized by the underlying VOI. The contractual terms of Company-provided financing agreements require that the contractual level of annual principal payments be sufficient to amortize the loan over a customary period for the VOI being financed, which is generally 10 years and payments under the financing contracts begin within 45 days of the sale and receipt of the minimum down payment of 10% . An estimate of uncollectible amounts is recorded at the time of the sale with a charge to the provision for loan losses, which is classified as a reduction of VOI sales on the Consolidated Statements of Income. The interest income earned from the financing arrangements is earned on the principal balance outstanding over the life of the arrangement and is recorded within consumer financing on the Consolidated Statements of Income. The Company also provides day-to-day-management services, including oversight of housekeeping services, maintenance and certain accounting and administrative services for property owners’ associations and clubs. In some cases, the Company’s employees serve as officers and/or directors of these associations and clubs in accordance with their by-laws and associated regulations. The Company receives fees for such property management services which are generally based upon total costs to operate such resorts. Fees for property management services typically approximate 10% of budgeted operating expenses. Property management fee revenues are recognized when earned in accordance with the terms of the contract and are recorded as a component of service and membership fees on the Consolidated Statements of Income. Property management revenues, which are comprised of management fee revenue and reimbursable revenue, were $615 million , $581 million and $567 million during 2015 , 2014 and 2013 , respectively. Management fee revenues were $275 million , $288 million and $290 million during 2015 , 2014 and 2013 , respectively. Reimbursable revenues, which are based upon certain reimbursable costs with no added margin, were $340 million , $293 million and $277 million during 2015 , 2014 and 2013 , respectively. These reimbursable costs principally relate to the payroll costs for management of the associations, club and resort properties where the Company is the employer and are reflected as a component of operating expenses on the Consolidated Statements of Income. One of the associations that the Company manages paid Wyndham Destination Network $24 million for exchange services during 2015 and $19 million during 2014 and 2013 . Other Items The Company records marketing and reservation revenues, Wyndham Rewards revenues, RCI Elite Rewards revenues and hotel/property management services revenues for its Hotel Group, Destination Network and Vacation Ownership segments, in accordance with the guidance for reporting revenues gross as a principal versus net as an agent, which requires that these revenues be recorded on a gross basis. Deferred Income Deferred income, as of December 31, consisted of: 2015 2014 Membership and exchange fees $ 260 $ 275 VOI trial and incentive fees 153 160 Vacation rental fees 110 104 Initial franchise fees 53 49 Other fees 105 75 Total deferred income 681 663 Less: Current deferred income 483 464 Non-current deferred income $ 198 $ 199 Deferred membership and exchange fees consist primarily of payments made in advance for annual memberships that are recognized over the term of the membership period, which is typically one to three years. Deferred VOI trial fees are payments received in advance for a trial VOI, which allows customers to utilize a VOI typically within one year of purchase. Deferred incentive fees represent payments received in advance for additional travel related services and products at the time of a VOI sale. Revenue is recognized when a customer utilizes the additional services and products, which is typically within two years of a VOI sale. Deferred vacation rental fees represent payments received in advance of a rental customer’s stay that are recognized as revenue when the rental stay occurs, which is typically within six months of the confirmation date. Deferred initial franchise fees are recognized when all material services or conditions have been performed which is typically within two years . INCOME TAXES The Company recognizes deferred tax assets and liabilities using the asset and liability method, under which deferred tax assets and liabilities are calculated based upon the temporary differences between the financial statement and income tax bases of assets and liabilities using currently enacted tax rates. These differences are based upon estimated differences between the book and tax basis of the assets and liabilities for the Company as of December 31, 2015 and 2014 . The Company’s deferred tax assets are recorded net of a valuation allowance when, based on the weight of available evidence, it is more likely than not that some portion or all of the recorded deferred tax assets will not be realized in future periods. Decreases to the valuation allowance are recorded as reductions to the Company’s provision for income taxes and increases to the valuation allowance result in additional provision for income taxes. The realization of the Company’s deferred tax assets, net of the valuation allowance, is primarily dependent on estimated future taxable income. A change in the Company’s estimate of future taxable income may require an addition to or reduction from the valuation allowance. For tax positions the Company has taken or expects to take in a tax return, the Company applies a more likely than not threshold, under which the Company must conclude a tax position is more likely than not to be sustained, assuming that the position will be examined by the appropriate taxing authority that has full knowledge of all relevant information, in order to recognize or continue to recognize the benefit. In determining the Company’s provision for income taxes, the Company uses judgment, reflecting its estimates and assumptions, in applying the more likely than not threshold. CASH AND CASH EQUIVALENTS The Company considers highly-liquid investments purchased with an original maturity of three months or less to be cash equivalents. RESTRICTED CASH The largest portion of the Company’s restricted cash relates to securitizations. The remaining portion is comprised of cash held in escrow accounts primarily related to the Company’s destination network and vacation ownership businesses. Securitizations: In accordance with the contractual requirements of the Company’s various vacation ownership contract receivable securitizations, a dedicated lockbox account, subject to a blocked control agreement, is established for each securitization. At each month end, the total cash in the collection account from the previous month is analyzed and a monthly servicer report is prepared by the Company, which details how much cash should be remitted to the note holders for principal and interest payments, and any cash remaining is transferred by the trustee back to the Company. Additionally, as required by various securitizations, the Company holds an agreed-upon percentage of the aggregate outstanding principal balances of the VOI contract receivables collateralizing the asset-backed notes in a segregated trust (or reserve) account as credit enhancement. Each time a securitization closes and the Company receives cash from the note holders, a portion of the cash is deposited in the reserve account. Such amounts were $92 million and $96 million , of which $73 million and $75 million is recorded within other current assets and $19 million and $21 million is recorded within other non-current assets as of December 31, 2015 and 2014 , respectively, on the Consolidated Balance Sheets. Escrow Deposits: Laws in most U.S. states require the escrow of down payments on VOI sales, with the typical requirement mandating that the funds be held in escrow until the rescission period expires. As sales transactions are consummated, down payments are collected and are subsequently placed in escrow until the rescission period has expired. Depending on the state, the rescission period can be as short as 3 calendar days or as long as 15 calendar days. In certain states, the escrow laws require that 100% of VOI purchaser funds (excluding interest payments, if any), be held in escrow until the deeding process is complete. Where possible, the Company utilizes surety bonds in lieu of escrow deposits. Escrow deposit amounts were $59 million and $51 million as of December 31, 2015 and 2014 , respectively, which is recorded within other current assets on the Consolidated Balance Sheets. RECEIVABLE VALUATION Trade receivables The Company provides for estimated bad debts based on its assessment of the ultimate realizability of receivables, considering historical collection experience, the economic environment and specific customer information. When the Company determines that an account is not collectible, the account is written-off to the allowance for doubtful accounts. The following table illustrates the Company’s allowance for doubtful accounts activity for the year ended December 31: 2015 2014 2013 Beginning balance $ 169 $ 209 $ 213 Bad debt expense 51 48 57 Write-offs (71 ) (86 ) (64 ) Translation and other adjustments 1 (2 ) 3 Ending balance $ 150 $ 169 $ 209 Vacation ownership contract receivables In the Company’s Vacation Ownership segment, the Company provides for estimated vacation ownership contract receivable defaults at the time of VOI sales by recording a provision for loan losses as a reduction of VOI sales on the Consolidated Statements of Income. The Company assesses the adequacy of the allowance for loan losses based on the historical performance of similar vacation ownership contract receivables. The Company uses a technique referred to as static pool analysis, which tracks defaults for each year’s sales over the entire life of those contract receivables. The Company considers current defaults, past due aging, historical write-offs of contracts and consumer credit scores (FICO scores) in the assessment of borrower’s credit strength and expected loan performance. The Company also considers whether the historical economic conditions are comparable to current economic conditions. If current or expected future conditions differ from the conditions in effect when the historical experience was generated, the Company adjusts the allowance for loan losses to reflect the expected effects of the current environment on the collectability of the Company’s vacation ownership contract receivables. LOYALTY PROGRAMS The Company operates a number of loyalty programs including Wyndham Rewards, RCI Elite Rewards and other programs. Wyndham Rewards members primarily accumulate points by staying in hotels franchised under one of the Company’s hotel group brands. Wyndham Rewards and RCI Elite Rewards members accumulate points by purchasing everyday services and products utilizing their co-branded credit cards. Members may redeem their points for hotel stays, airline tickets, rental cars, resort vacations, electronics, sporting goods, movie and theme park tickets, gift certificates, vacation ownership maintenance fees and annual membership dues and exchange fees for transactions. The points cannot be redeemed for cash. The Company earns revenue from these programs (i) when a member stays at a participating hotel, from a fee charged by the Company to the franchisee, which is based upon a percentage of room revenues generated from such stay or (ii) based upon a percentage of the members’ spending on the co-branded credit cards and such revenues are paid to the Company by a third-party issuing bank. The Company also incurs costs to support these programs, which primarily relate to marketing expenses to promote the programs, costs to administer the programs and costs of members’ redemptions. As members earn points through the Company’s loyalty programs, the Company records a liability for the estimated future redemption costs, which is calculated based on (i) an estimated cost per point and (ii) an estimated redemption rate of the overall points earned, which is determined through historical experience, current trends and the use of an actuarial analysis. Revenues relating to the Company’s loyalty programs are recorded in other revenues in the Consolidated Statements of Income and amounted to $152 million , $142 million and $113 million , while total expenses amounted to $119 million , $112 million and $93 million in 2015 , 2014 and 2013 , respectively. The liability for estimated future redemption costs as of December 31, 2015 and 2014 amounted to $67 million and $62 million , respectively, and is included in accrued expenses and other current liabilities and other non-current liabilities in the Consolidated Balance Sheets. INVENTORY Inventory primarily consists of real estate and development costs of completed VOIs, VOIs under construction, land held for future VOI development, vacation ownership properties, vacation credits and inventory sold subject to conditional repurchase. The Company applies the relative sales value method for relieving VOI inventory and recording the related cost of sales. Under the relative sales value method, cost of sales is calculated as a percentage of net sales using a cost-of-sales percentage ratio of total estimated development cost to total estimated VOI revenue, including estimated future revenue and incorporating factors such as changes in prices and the recovery of VOIs generally as a result of contract receivable defaults. The effect of such changes in estimates under the relative sales value method is accounted for on a retrospective basis through corresponding current-period adjustments to inventory and cost of sales. Inventory is stated at the lower of cost, including capitalized interest, property taxes and certain other carrying costs incurred during the construction process, or net realizable value. Capitalized interest was $3 million , $2 million and less than $1 million in 2015 , 2014 and 2013 , respectively. ADVERTISING EXPENSE Advertising costs are generally expensed in the period incurred. Advertising expenses, which are primarily recorded within marketing and reservation expenses on the Consolidated Statements of Income, were $172 million , $170 million and $146 million in 2015 , 2014 and 2013 , respectively. USE OF ESTIMATES AND ASSUMPTIONS The preparation of the Consolidated Financial Statements requires the Company to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses and the disclosure of contingent assets and liabilities in the Consolidated Financial Statements and accompanying notes. Although these estimates and assumptions are based on the Company’s knowledge of current events and actions the Company may undertake in the future, actual results may ultimately differ from estimates and assumptions. DERIVATIVE INSTRUMENTS The Company uses derivative instruments as part of its overall strategy to manage its exposure to market risks primarily associated with fluctuations in foreign currency exchange rates and interest rates. As a matter of policy, the Company does not use derivatives for trading or speculative purposes. All derivatives are recorded at fair value either as assets or liabilities. Changes in fair value of derivatives not designated as hedging instruments and of derivatives designated as fair value hedging instruments are recognized currently in operating income and net interest expense, based upon the nature of the hedged item, in the Consolidated Statements of Income. The effective portion of changes in fair value of derivatives designated as cash flow hedging instruments is recorded as a component of other comprehensive income. The ineffective portion is reported immediately in earnings as a component of operating expense, based upon the nature of the hedged item. Amounts included in other comprehensive income are reclassified into earnings in the same period during which the hedged item affects earnings. PROPERTY AND EQUIPMENT Property and equipment (including leasehold improvements) are recorded at cost, and presented net of accumulated depreciation and amortization. Depreciation, recorded as a component of depreciation and amortization on the Consolidated Statements of Income, is computed utilizing the straight-line method over the lesser of the lease terms or estimated useful lives of the related assets. Amortization of leasehold improvements, also recorded as a component of depreciation and amortization, is computed utilizing the straight-line method over the lesser of the estimated benefit period of the related assets or the lease terms. Useful lives are generally 30 years for buildings, up to 20 years for leasehold improvements, from 15 to 30 years for vacation rental properties and from 3 to 7 years for furniture, fixtures and equipment. The Company capitalizes the costs of software developed for internal use in accordance with the guidance for accounting for costs of computer software developed or obtained fo r internal use. Capitalization of software developed for internal use commences during the development phase of the pro ject. The Company amortizes software developed or obtained for internal use on a straight-line basis over its estimated useful life which is generally 3 to 5 years, with the exception of certain enterprise resource planning and reservation and inventory management software which is 7 years . Such amortization commences when the software is substantially ready for use. The net carrying value of software developed or obtained for internal use was $223 million and $190 million as of December 31, 2015 and 2014 , respectively. Capitalized interest was $4 million in both 2015 and 2014 and $5 million in 2013 . IMPAIRMENT OF LONG-LIVED ASSETS T he Company has goodwill and other indefinite-lived intangible assets recorded in connection with business combinations. The Company annually (during the fourth quarter of each year subsequent to completing the Company’s annual forecasting process), or more frequently if circumstances indicate that the value of goodwill may be impaired, reviews the reporting units’ carrying values as required by the guidance for goodwill and other indefinite-lived intangible assets. In accordance with the guidance, the Company has determined that its reporting units are the same as its reportable segments. Under current accounting guidance, goodwill and other intangible assets with indefinite lives are not subject to amortization. However, goodwill and other intangibles with indefinite lives are subject to fair value-based rules for measuring impairment, and resulting write-downs, if any, are reflected in operating expense. The Company has goodwill recorded at its hotel group, destination network and vacation ownership reporting units. The Company completed its annual goodwill impairment test by performing a quantitative analysis for each of its reporting units as of October 1, 2015 and determined that no impairment exists. The Company also evaluates the recoverability of its other long-lived assets, including property and equipment and amortizable intangible assets, if circumstances indicate impairment may have occurred, pursuant to guidance for impairment or disposal of long-lived assets. This analysis is performed by comparing the respective carrying values of the assets to the current and expected future cash flows, on an undiscounted basis, to be generated from such assets. Property and equipment is evaluated separately within each segment. If such analysis indicates that the carrying value of these assets is not recoverable, the carrying value of such assets is reduced to fair value. ACCOUNTING FOR RESTRUCTURING ACTIVITIES The Company’s restructuring actions require it to make significant estimates in several areas including (i) expenses for severance and related benefit costs, (ii) the ability to generate sublease income, as well as its ability to terminate lease ob |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2015 | |
Earnings Per Share Reconciliation [Abstract] | |
Earnings Per Share | Earnings Per Share The computation of basic and diluted earnings per share (“EPS”) is based on net income attributable to Wyndham shareholders divided by the basic weighted average number of common shares and diluted weighted average number of common shares, respectively. The following table sets forth the computation of basic and diluted EPS (in millions, except per share data): Year Ended December 31, 2015 2014 2013 Net income attributable to Wyndham shareholders $ 612 $ 529 $ 432 Basic weighted average shares outstanding 118 125 133 Stock options, SSARs (a) , RSUs (b) and PSUs (c) 1 2 2 Weighted average diluted shares outstanding 119 127 135 Earnings per share: Basic $ 5.18 $ 4.22 $ 3.25 Diluted 5.14 4.18 3.21 Dividends: Cash dividends per share (d) $ 1.68 $ 1.40 $ 1.16 Aggregate dividends paid to shareholders 202 179 156 (a) Excludes stock-settled appreciation rights (“SSARs”) that would have been anti-dilutive to EPS. (b) Includes unvested dilutive restricted stock units (“RSUs”) which are subject to future forfeitures. (c) Excludes 0.6 million , 0.4 million and 0.5 million performance vested restricted stock units (“PSUs”) for the years ended 2015 , 2014 and 2013 , respectively, as the Company had not met the required performance metrics. (d) For each of the quarterly periods ended March 31, June 30, September 30 and December 31, 2015 , 2014 and 2013 , the Company paid cash dividends of $0.42 , $0.35 and $0.29 per share, respectively. Stock Repurchase Programs On October 22, 2014 , the Company’s Board of Directors authorized an increase of $1.0 billion to the Company’s existing stock repurchase program. As of December 31, 2015 , the total authorization of the current program was $4.0 billion . The following table summarizes stock repurchase activity under the current stock repurchase program (in millions, except per share data): Shares Cost Average Price Per Share As of December 31, 2014 71.3 $ 3,062 $ 42.94 For the year ended December 31, 2015 7.9 650 82.01 As of December 31, 2015 79.2 $ 3,712 46.85 The Company had $366 million remaining availability in its program as of December 31, 2015 . The total capacity of the program was increased by proceeds received from stock option exercises. As of December 31, 2015 , the Company has repurchased under its current and prior stock repurchase plans, a total of 104 million shares at an average price of $43.35 for a cost of $4.5 billion since its separation from Cendant (“Separation”). |
Acquisitions
Acquisitions | 12 Months Ended |
Dec. 31, 2015 | |
Business Combinations [Abstract] | |
Acquistions | Acquisitions Assets acquired and liabilities assumed in business combinations were recorded on the Consolidated Balance Sheets as of the respective acquisition dates based upon their estimated fair values at such dates. The results of operations of businesses acquired by the Company have been included in the Consolidated Statements of Income since their respective dates of acquisition. The excess of the purchase price over the estimated fair values of the underlying assets acquired and liabilities assumed was allocated to goodwill. In certain circumstances, the allocations of the excess purchase price are based upon preliminary estimates and assumptions. Accordingly, the allocations may be subject to revision when the Company receives final information, including appraisals and other analyses. Any revisions to the fair values during the allocation period will be recorded by the Company as further adjustments to the purchase price allocations. Although, in certain circumstances, the Company has substantially integrated the operations of its acquired businesses, additional future costs relating to such integration may occur. These costs may result from integrating operating systems, relocating employees, closing facilities, reducing duplicative efforts and exiting and consolidating other activities. These costs will be recorded on the Consolidated Statements of Income as expenses. 2015 ACQUISITIONS Dolce Hotels and Resorts. During January 2015, the Company completed the acquisition of Dolce Hotels and Resorts (“Dolce”), a manager of properties focused on group accommodations. This acquisition is consistent with the Company’s strategy to expand its managed portfolio within its hotel group business. The net consideration of $57 million was comprised of $52 million in cash, net of cash acquired, for the equity of Dolce and $5 million related to debt repaid at closing. The purchase price allocation resulted in the recognition of $29 million of goodwill, none of which is expected to be deductible for tax purposes, $28 million of definite-lived intangible assets with a weighted average life of 15 years and $14 million of trademarks. In addition, the fair value of assets acquired and liabilities assumed resulted in $9 million of other assets and $23 million of liabilities, all of which were assigned to the Company’s Hotel Group segment. This acquisition was not material to the Company’s results of operations, financial position or cash flows. Other. During 2015, the Company completed five acquisitions for a total of $38 million in cash, net of cash acquired. The preliminary purchase price allocations resulted in the recognition of (i) $12 million of property and equipment, all of which was allocated to the Company’s Vacation Ownership segment, and (ii) $19 million of goodwill, of which $13 million is expected to be deductible for tax purposes, and $13 million of definite-lived intangible assets with a weighted average life of 10 years , both of which were allocated to the Company’s Destination Network segment. These acquisitions were not material to the Company’s results of operations, financial position or cash flows. 2014 ACQUISITIONS During 2014 , the Company completed four acquisitions for $32 million in cash, net of cash acquired, and paid an additional $2 million of contingent consideration related to prior year acquisitions. The purchase price allocations resulted in the recognition of $14 million of property, $9 million of inventory and $3 million of definite-lived intangible assets with a weighted average life of 13 years , all of which were allocated to the Company’s Vacation Ownership segment. In addition, the Company recognized $2 million of goodwill, none of which is expected to be deductible for tax purposes, and $3 million of definite-lived intangible assets with a weighted average life of 12 years , both of which were allocated to the Company’s Destination Network segment. These acquisitions were not material to the Company’s results of operations, financial position or cash flows. 2013 ACQUISITIONS Midtown 45, NYC Property. During January 2013 , the Company entered into an agreement with a third-party partner whereby the partner acquired the Midtown 45 property in New York City (“Midtown 45”) for $115 million through a special purpose entity (“SPE”). The Company is considered to be the primary beneficiary of the SPE and therefore the Company consolidates the SPE within its financial statements. The Company is managing and operating the property for rental purposes while the Company converts it into VOI inventory. The SPE’s purchase price allocation for this property resulted in the recognition of $115 million of property and equipment, all of which was assigned to the Company’s Vacation Ownership segment. Acquisition-related costs of $2 million are included in operating expenses in the accompanying Consolidated Statement of Income for 2013 . This SPE transaction is consistent with the Company’s strategy to replenish VOI inventory utilizing Wyndham Asset Affiliation Models (“WAAM”) Just-in-Time. The consolidation of the SPE was not material to the Company’s results of operations, financial position or cash flows (see Note 14 - Variable Interest Entities for more detailed information). In addition, during 2013 , the Company completed two other acquisitions for $14 million in cash, net of cash acquired. The purchase price allocations resulted in the recognition of $12 million of goodwill, none of which is expected to be deductible for tax purposes, $8 million of definite-lived intangible assets with a weighted average life of 10 years and $1 million of trademarks, all of which were assigned to the Company’s Destination Network segment. These acquisitions were not material to the Company’s results of operations, financial position or cash flows. |
Intangible Assets
Intangible Assets | 12 Months Ended |
Dec. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets | Intangible Assets Intangible assets consisted of: As of December 31, 2015 As of December 31, 2014 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Unamortized Intangible Assets: Goodwill $ 1,563 $ 1,551 Trademarks (a) $ 723 $ 713 Amortized Intangible Assets: Franchise agreements (b) $ 594 $ 386 $ 208 $ 594 $ 371 $ 223 Management agreements (c) 153 46 107 105 35 70 Trademarks (d) 8 5 3 7 3 4 Other (e) 148 66 82 167 63 104 $ 903 $ 503 $ 400 $ 873 $ 472 $ 401 (a) Comprised of various trade names (primarily including the Wyndham Hotels and Resorts, Ramada, Days Inn, RCI, Landal GreenParks, Baymont Inn & Suites, Microtel Inns & Suites, Hawthorn by Wyndham, TRYP by Wyndham, Dolce Hotels and Resorts and Hoseasons trade names) that the Company has acquired. These trade names are expected to generate future cash flows for an indefinite period of time. (b) Generally amortized over a period ranging from 20 to 40 years with a weighted average life of 35 years . (c) Generally amortized over a period ranging from 10 to 20 years with a weighted average life of 14 years . (d) Generally amortized over a period of 3 to 7 years with a weighted average life of 5 years . (e) Includes customer lists and business contracts, generally amortized over a period ranging from 7 to 20 years with a weighted average life of 15 years . During 2013, the Company recorded $8 million of non-cash impairment charges at its hotel group business primarily related to a partial write-down of the Hawthorn trademark resulting from slower than expected growth in the brand. As of December 31, 2013, the remaining $28 million carrying amount for the Hawthorn trademark was equal to its estimated fair value as of the date of impairment. The Company utilized a discounted cash flow model for the brand using assumptions of future operating performance, growth and discount rate. Such amounts are included within loss on sale and asset impairments on the Consolidated Statements of Income (see Note 22 — Restructuring, Impairment and Other Charges for more information). Goodwill During the fourth quarters of 2015 , 2014 and 2013 , the Company performed its annual goodwill impairment test and determined that no impairment existed as the fair value of goodwill at its reporting units was in excess of the carrying value. The changes in the carrying amount of goodwill are as follows: Balance as of December 31, 2014 Goodwill Acquired During 2015 Foreign Exchange Balance as of December 31, 2015 Hotel Group $ 300 $ 29 $ — $ 329 Destination Network 1,224 19 (36 ) 1,207 Vacation Ownership 27 — — 27 Total Company $ 1,551 $ 48 $ (36 ) $ 1,563 Amortization expense relating to amortizable intangible assets was as follows: 2015 2014 2013 Franchise agreements $ 15 $ 15 $ 15 Management agreements 10 8 8 Other 12 14 13 Total (*) $ 37 $ 37 $ 36 (*) Included as a component of depreciation and amortization on the Consolidated Statements of Income. Based on the Company’s amortizable intangible assets as of December 31, 2015 , the Company expects related amortization expense as follows: Amount 2016 $ 37 2017 36 2018 34 2019 33 2020 32 |
Franchising And Marketing_Reser
Franchising And Marketing/Reservation Activities | 12 Months Ended |
Dec. 31, 2015 | |
Franchising And Marketing/Reservation Activities [Abstract] | |
Franchising And Marketing/Reservation Activities | Franchising and Marketing/Reservation Activities Franchise fee revenues of $674 million , $632 million and $599 million on the Consolidated Statements of Income for 2015 , 2014 and 2013 , respectively, include initial franchise fees of $12 million during each year. As part of ongoing franchise fees, the Company receives marketing and reservation fees from its hotel group franchisees, which generally are calculated based on a specified percentage of gross room revenues. Such fees totaled $313 million , $294 million and $291 million during 2015 , 2014 and 2013 , respectively, and are recorded within franchise fees on the Consolidated Statements of Income. In accordance with the franchise agreements, the Company is contractually obligated to expend the marketing and reservation fees it collects from franchisees for the operation of an international, centralized, brand-specific reservation system and for marketing purposes such as advertising, promotional and co-marketing programs, and training for the respective franchisees. Additionally, the Company is required to provide certain services to its franchisees, including referrals, technology and volume purchasing. The Company may, at its discretion, provide development advances to certain franchisees or hotel owners in its managed business in order to assist such franchisees/hotel owners in converting to one of the Company’s brands, building a new hotel to be flagged under one of the Company’s brands or in assisting in other franchisee expansion efforts. Provided the franchisee/hotel owner is in compliance with the terms of the franchise/management agreement, all or a portion of the development advance may be forgiven by the Company over the period of the franchise/management agreement, which typically ranges from 10 to 20 years. Otherwise, the related principal is due and payable to the Company. In certain instances, the Company may earn interest on unpaid franchisee development advances. Such interest was not significant during 2015 , 2014 or 2013 . Development advances recorded on the Consolidated Balance Sheets amounted to $81 million and $94 million as of December 31, 2015 and 2014 , respectively, and are classified within other non-current assets on the Consolidated Balance Sheets. During 2015 , 2014 and 2013 , the Company recorded $8 million , $9 million and $7 million , respectively, related to the forgiveness of these advances. Such amounts are recorded as a reduction of franchise fees on the Consolidated Statements of Income. In addition, the Company received $6 million of development advance note repayments during 2015 and 2014 , which are reported as proceeds from development advance notes on the Consolidated Statements of Cash Flows. There were no repayments of such notes during 2013 . The Company recorded $1 million during 2015 and less than $1 million during each of 2014 and 2013 of bad debt expenses related to development advances that were due and payable within its hotel group business. Such expenses were reported within operating expenses on the Consolidated Statements of Income. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The income tax provision consists of the following for the year ended December 31: 2015 2014 2013 Current Federal $ 182 $ 176 $ 114 State 31 40 23 Foreign 51 53 49 264 269 186 Deferred Federal 34 53 49 State 8 (1 ) 18 Foreign (2 ) (5 ) (3 ) 40 47 64 Provision for income taxes $ 304 $ 316 $ 250 Pre-tax income for domestic and foreign operations consisted of the following for the year ended December 31: 2015 2014 2013 Domestic $ 745 $ 681 $ 509 Foreign 171 164 174 Pre-tax income $ 916 $ 845 $ 683 Current and non-current deferred income tax assets and liabilities, as of December 31, are comprised of the following: 2015 2014 Current deferred income tax assets: Accrued liabilities and deferred income $ 107 $ 97 Provision for doubtful accounts and loan loss reserves for vacation ownership contract receivables 159 159 Foreign tax credit carryforward 4 7 Valuation allowance (*) (10 ) (17 ) Other 5 7 Current deferred income tax assets 265 253 Current deferred income tax liabilities: Installment sales of vacation ownership interests 98 98 Other 41 41 Current deferred income tax liabilities 139 139 Current net deferred income tax asset $ 126 $ 114 Non-current deferred income tax assets: Net operating loss carryforward $ 50 $ 46 Foreign tax credit carryforward 85 79 Tax basis differences in assets of foreign subsidiaries 35 43 Accrued liabilities and deferred income 78 78 Provision for doubtful accounts and loan loss reserves for vacation ownership contract receivables 141 141 Other comprehensive income 55 40 Other 14 14 Valuation allowance (*) (21 ) (40 ) Non-current deferred income tax assets 437 401 Non-current deferred income tax liabilities: Depreciation and amortization 734 703 Installment sales of vacation ownership interests 886 838 Other 69 62 Non-current deferred income tax liabilities 1,689 1,603 Non-current net deferred income tax liabilities $ 1,252 $ 1,202 (*) The valuation allowance of $31 million at December 31, 2015 relates to foreign tax credits, net operating loss carryforwards and certain deferred tax assets of $10 million , $19 million and $2 million , respectively. The valuation allowance of $57 million at December 31, 2014 relates to foreign tax credits, net operating loss carryforwards and certain deferred tax assets of $34 million , $19 million and $4 million , respectively. The valuation allowance will be reduced when and if the Company determines it is more likely than not that the related deferred income tax assets will be realized. As of December 31, 2015 , the Company’s net operating loss carryforwards primarily relate to state net operating losses which are due to expire at various dates, but no later than 2035 . As of December 31, 2015 , the Company had $89 million of foreign tax credits. The foreign tax credits primarily expire between 2016 and 2025 . No provision has been made for U.S. federal deferred income taxes on $809 million of accumulated and undistributed earnings of certain foreign subsidiaries as of December 31, 2015 since it is the present intention of management to reinvest the undistributed earnings indefinitely in those foreign operations. The determination of the amount of unrecognized U.S. federal deferred income tax liability for unremitted earnings is not practicable as a result of the large number of assumptions necessary to compute the tax. These earnings could become subject to additional taxes if remitted as dividends; the resulting U.S. income tax liabilities could be offset, in whole or in part, by credits allowable for taxes paid to foreign jurisdictions. The Company’s effective income tax rate differs from the U.S. federal statutory rate as follows for the year ended December 31: 2015 2014 2013 Federal statutory rate 35.0% 35.0% 35.0% State and local income taxes, net of federal tax benefits 2.8 3.0 3.7 Taxes on foreign operations at rates different than U.S. federal statutory rates (1.4) (1.9) (2.3) Taxes on foreign income, net of tax credits (0.6) (4.6) (1.4) Valuation allowance (2.7) 4.0 0.1 Other 0.1 1.9 1.5 33.2% 37.4% 36.6% During 2015 , the Company reduced its valuation allowance and recognized foreign tax credit benefits from a realignment of certain foreign operations which resulted in a reduction of its effective tax rate from 37.4% in 2014 to 33.2% in 2015 . The following table summarizes the activity related to the Company’s unrecognized tax benefits: 2015 2014 2013 Beginning balance $ 35 $ 36 $ 37 Increases related to tax positions taken during a prior period 6 5 7 Increases related to tax positions taken during the current period 6 4 5 Decreases related to settlements with taxing authorities (2 ) (1 ) (4 ) Decreases as a result of a lapse of the applicable statute of limitations (9 ) (7 ) (8 ) Decreases related to tax positions taken during a prior period (1 ) (2 ) (1 ) Ending balance $ 35 $ 35 $ 36 The gross amount of the unrecognized tax benefits that, if recognized, would affect the Company’s effective tax rate was $35 million as of December 31, 2015 and 2014 and $36 million as of December 31, 2013 . The Company recorded both accrued interest and penalties related to unrecognized tax benefits as a component of provision for income taxes on the Consolidated Statements of Income. The Company also accrued potential penalties and interest related to these unrecognized tax benefits of $4 million during 2015 and 2014 and $2 million during 2013 . The Company had a liability for potential penalties of $4 million as of December 31, 2015 and 2014 and $3 million as of December 31, 2013 and potential interest of $6 million , $5 million and $4 million as of December 31, 2015 , 2014 and 2013 , respectively. Such liabilities are reported as a component of accrued expenses and other current liabilities and other non-current liabilities on the Consolidated Balance Sheets. The Company does not expect the unrecognized tax benefits to change significantly over the next 12 months . The Company files U.S., state, and foreign income tax returns in jurisdictions with varying statutes of limitations. The 2012 through 2015 tax years generally remain subject to examination by federal tax authorities. The 2009 through 2015 tax years generally remain subject to examination by many state tax authorities. In significant foreign jurisdictions, the 2008 through 2015 tax years generally remain subject to examination by their respective tax authorities. The statute of limitations is scheduled to expire within 12 months of the reporting date in certain taxing jurisdictions and the Company believes that it is reasonably possible that the total amount of its unrecognized tax benefits could decrease by $3 million to $6 million . The Company made cash income tax payments, net of refunds, of $239 million , $249 million and $175 million during 2015 , 2014 and 2013 , respectively. Such payments exclude income tax related payments made to or refunded by former Parent. |
Vacation Ownership Contract Rec
Vacation Ownership Contract Receivables | 12 Months Ended |
Dec. 31, 2015 | |
Vacation Ownership Contract Receivables [Abstract] | |
Vacation Ownership Contract Receivables | Vacation Ownership Contract Receivables The Company generates vacation ownership contract receivables by extending financing to the purchasers of its VOIs. As of December 31, current and long-term vacation ownership contract receivables, net consisted of: 2015 2014 Current vacation ownership contract receivables: Securitized $ 248 $ 256 Non-securitized 81 88 329 344 Less: Allowance for loan losses 57 59 Current vacation ownership contract receivables, net $ 272 $ 285 Long-term vacation ownership contract receivables: Securitized $ 2,214 $ 2,256 Non-securitized 748 672 2,962 2,928 Less: Allowance for loan losses 524 522 Long-term vacation ownership contract receivables, net $ 2,438 $ 2,406 Principal payments that are contractually due on the Company’s vacation ownership contract receivables during the next 12 months are classified as current on the Consolidated Balance Sheets. Principal payments due on the Company’s vacation ownership contract receivables during each of the five years subsequent to December 31, 2015 and thereafter are as follows: Securitized Non - Securitized Total 2016 $ 248 $ 81 $ 329 2017 256 82 338 2018 258 82 340 2019 265 83 348 2020 280 86 366 Thereafter 1,155 415 1,570 $ 2,462 $ 829 $ 3,291 During 2015 , 2014 and 2013 , the Company’s securitized vacation ownership contract receivables generated interest income of $333 million , $300 million and $297 million , respectively. During 2015 , 2014 and 2013 , the Company originated vacation ownership contract receivables of $1,091 million , $1,013 million and $1,064 million , respectively, and received principal collections of $796 million , $792 million and $809 million , respectively. The weighted average interest rate on outstanding vacation ownership contract receivables was 13.8% , 13.6% and 13.5% as of December 31, 2015 , 2014 and 2013 , respectively. The activity in the allowance for loan losses on vacation ownership contract receivables was as follows: Amount Allowance for loan losses as of December 31, 2012 $ 497 Provision for loan losses 349 Contract receivables written off, net (280 ) Allowance for loan losses as of December 31, 2013 566 Provision for loan losses 260 Contract receivables write-offs, net (245 ) Allowance for loan losses as of December 31, 2014 581 Provision for loan losses 248 Contract receivables write-offs, net (248 ) Allowance for loan losses as of December 31, 2015 $ 581 Credit Quality for Financed Receivables and the Allowance for Credit Losses The basis of the differentiation within the identified class of financed VOI contract receivable is the consumer’s FICO score. A FICO score is a branded version of a consumer credit score widely used within the U.S. by the largest banks and lending institutions. FICO scores range from 300 – 850 and are calculated based on information obtained from one or more of the three major U.S. credit reporting agencies that compile and report on a consumer’s credit history. The Company updates its records for all active VOI contract receivables with a balance due on a rolling monthly basis so as to ensure that all VOI contract receivables are scored at least every six months. The Company groups all VOI contract receivables into five different categories: FICO scores ranging from 700 to 850, 600 to 699, Below 600, No Score (primarily comprised of consumers for whom a score is not readily available, including consumers declining access to FICO scores and non U.S. residents) and Asia Pacific (comprised of receivables in the Company’s Wyndham Vacation Resort Asia Pacific business for which scores are not readily available). The following table details an aged analysis of financing receivables using the most recently updated FICO scores (based on the policy described above): As of December 31, 2015 700+ 600-699 <600 No Score Asia Pacific Total Current $ 1,623 $ 1,023 $ 163 $ 115 $ 231 $ 3,155 31 - 60 days 16 25 17 5 2 65 61 - 90 days 10 14 11 3 1 39 91 - 120 days 7 11 11 2 1 32 Total $ 1,656 $ 1,073 $ 202 $ 125 $ 235 $ 3,291 As of December 31, 2014 700+ 600-699 <600 No Score Asia Pacific Total Current $ 1,556 $ 1,028 $ 191 $ 115 $ 261 $ 3,151 31 - 60 days 12 23 16 4 3 58 61 - 90 days 7 13 11 2 1 34 91 - 120 days 5 10 11 2 1 29 Total $ 1,580 $ 1,074 $ 229 $ 123 $ 266 $ 3,272 The Company ceases to accrue interest on VOI contract receivables once the contract has remained delinquent for greater than 90 days . At greater than 120 days , the VOI contract receivable is written off to the allowance for loan losses. In accordance with its policy, the Company assesses the allowance for loan losses using a static pool methodology and thus does not assess individual loans for impairment separate from the pool. |
Inventory
Inventory | 12 Months Ended |
Dec. 31, 2015 | |
Inventory Disclosure [Abstract] | |
Inventory | Inventory Inventory, as of December 31, consisted of: 2015 2014 Land held for VOI development $ 136 $ 136 VOI construction in process 62 226 Inventory sold subject to conditional repurchase 155 73 Completed VOI inventory 604 431 Estimated recoveries 242 235 Destination network vacation credits and other 60 61 Total inventory 1,259 1,162 Less: Current portion (*) 295 302 Non-current inventory $ 964 $ 860 (*) Represents inventory that the Company expects to sell within the next 12 months. During 2015 and 2014 , the Company transferred $70 million and $65 million from property and equipment to VOI inventory, respectively. In addition to the inventory obligations listed below, the Company had $27 million of inventory accruals as of December 31, 2015 , of which $20 million was included in accrued expenses and other current liabilities and $7 million was included in accounts payable and $24 million of inventory accruals as of December 31, 2014 , of which $20 million was included in other non-current liabilities and $4 million was included in accounts payable. Inventory Sale Transaction During 2015 , the Company sold real property located in St. Thomas, U.S. Virgin Islands (“St. Thomas”) to a third-party developer, consisting of $80 million of vacation ownership inventory, in exchange for $70 million in cash consideration and $10 million of a receivable to be paid during 2016. During 2013, the Company sold real property located in Las Vegas, Nevada and Avon, Colorado to a third-party developer, consisting of vacation ownership inventory and property and equipment. The Company recognized no gain or loss on these sales transactions. In accordance with the agreements with the third-party developers, the Company has conditional rights and conditional obligations to repurchase the completed properties from the developers subject to the properties conforming to the Company's vacation ownership resort standards and provided that the third-party developers have not sold the properties to another party. Under the sale of real estate accounting guidance, the conditional rights and obligations of the Company constitute continuing involvement and thus the Company was unable to account for these transactions as a sale. During 2014, the Company purchased the property located in Avon, Colorado from the third-party developer. In connection with this purchase, the Company had an outstanding inventory obligation of $32 million as of December 31, 2015 , of which $11 million was included within accrued expenses and other current liabilities and $21 million was included within other non-current liabilities on the Consolidated Balance Sheet. During 2015 , the Company paid $11 million to the third-party developer comprised of $8 million for additional inventory, $2 million to satisfy a portion of its inventory obligation and $1 million of accrued interest. As of December 31, 2014 , the Company had an outstanding inventory obligation of $42 million , of which $10 million was included within accrued expenses and other current liabilities and $32 million was included within other non-current liabilities on the Consolidated Balance Sheet. In connection with the Las Vegas, Nevada and St. Thomas properties, the Company had outstanding inventory obligations of $157 million as of December 31, 2015 , of which $33 million was included within accrued expenses and other current liabilities and $124 million was included within other non-current liabilities on the Consolidated Balance Sheet. During 2015 , the Company paid $12 million to the third-party developer comprised of $6 million for additional inventory, $5 million to satisfy a portion of its inventory obligation and $1 million of accrued interest. In connection with these transactions, the Company acquired $9 million of inventory developed by third party developer during 2015 which will be paid in 2016. As of December 31, 2014 , the Company had an outstanding inventory obligation related to the Las Vegas property of $73 million , of which $5 million was included within accrued expenses and other current liabilities and $68 million was included within other non-current liabilities on the Consolidated Balance Sheet. The Company has guaranteed to repurchase the completed properties located in Las Vegas, Nevada and St. Thomas from the third-party developers subject to the properties meeting the Company’s vacation ownership resort standards and provided that the third-party developers have not sold the properties to another party. The maximum potential future payments that the Company could be required to make under these commitments was $288 million as of December 31, 2015 . |
Property And Equipment, Net
Property And Equipment, Net | 12 Months Ended |
Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |
Property And Equipment, Net | Property and Equipment, net Property and equipment, net, as of December 31, consisted of: 2015 2014 Land $ 171 $ 203 Buildings and leasehold improvements 867 923 Capitalized software 762 670 Furniture, fixtures and equipment 529 534 Capital leases 202 211 Construction in progress 164 173 2,695 2,714 Less: Accumulated depreciation and amortization 1,296 1,214 $ 1,399 $ 1,500 During 2015 , 2014 and 2013 , the Company recorded depreciation and amortization expense of $197 million , $196 million and $180 million , respectively, related to property and equipment. As of December 31, 2015 and 2014 , the Company had accrued property and equipment of $7 million and $24 million , respectively. |
Other Current Assets
Other Current Assets | 12 Months Ended |
Dec. 31, 2015 | |
Other Current Assets [Abstract] | |
Other Current Assets | Other Current Assets Other current assets, as of December 31, consisted of: 2015 2014 Securitization restricted cash $ 73 $ 75 Escrow deposit restricted cash 59 51 Deferred costs 53 54 Non-trade receivables, net 32 58 Tax receivables 11 38 Assets held for sale 2 9 Other 36 35 $ 266 $ 320 |
Accrued Expenses and Other Curr
Accrued Expenses and Other Current Liabilities | 12 Months Ended |
Dec. 31, 2015 | |
Accrued Expenses and Other Current Liabilities [Abstract] | |
Accrued Expenses And Other Current Liabilities | Accrued Expenses and Other Current Liabilities Accrued expenses and other current liabilities, as of December 31, consisted of: 2015 2014 Accrued payroll and related $ 274 $ 238 Accrued taxes 102 129 Accrued advertising and marketing 65 69 Accrued interest 49 45 Accrued loyalty programs 37 35 Inventory sale and repurchase obligations (a) 44 15 Accrued legal settlements 29 24 Accrued VOI maintenance fees 26 18 Accrued separation (b) 19 26 Accrued other 182 150 $ 827 $ 749 (a) See Note 9 - Inventory. (b) See Note 23 - Separation Adjustments and Transactions with Former Parent and Subsidiaries. |
Long-Term Debt And Borrowing Ar
Long-Term Debt And Borrowing Arrangements | 12 Months Ended |
Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |
Long-Term Debt And Borrowing Arrangements | Long-Term Debt and Borrowing Arrangements The Company’s indebtedness, as of December 31, consisted of: 2015 2014 Securitized vacation ownership debt : (a) Term notes $ 1,891 $ 1,962 Bank conduit facility (due August 2017) 239 203 Total securitized vacation ownership debt 2,130 2,165 Less: Current portion of securitized vacation ownership debt 209 214 Long-term securitized vacation ownership debt $ 1,921 $ 1,951 Long-term debt : (b) Revolving credit facility (due July 2020) $ 7 $ 25 Commercial paper 109 189 $315 million 6.00% senior unsecured notes (due December 2016) (c)(d) 316 317 $300 million 2.95% senior unsecured notes (due March 2017) 299 299 $14 million 5.75% senior unsecured notes (due February 2018) 14 14 $450 million 2.50% senior unsecured notes (due March 2018) 449 448 $40 million 7.375% senior unsecured notes (due March 2020) 40 40 $250 million 5.625% senior unsecured notes (due March 2021) 247 247 $650 million 4.25% senior unsecured notes (due March 2022) (e) 648 648 $400 million 3.90% senior unsecured notes (due March 2023) (f) 408 410 $350 million 5.10% senior unsecured notes (due October 2025) (g) 338 — Capital leases 153 170 Other 50 81 Total long-term debt 3,078 2,888 Less: Current portion of long-term debt 44 47 Long-term debt $ 3,034 $ 2,841 (a) Represents non-recourse debt that is securitized through bankruptcy-remote special purpose entities (“SPEs”), the creditors of which have no recourse to the Company for principal and interest. These outstanding borrowings (which legally are not liabilities of the Company) are collateralized by $2,576 million and $2,629 million of underlying gross vacation ownership contract receivables and related assets (which legally are not assets of the Company) as of December 31, 2015 and 2014 , respectively. (b) The carrying amounts of the senior unsecured notes are net of unamortized discount of $14 million as of December 31, 2015 and 2014 . (c) Classified as long-term as the Company has the intent to refinance such debt on a long-term basis and the ability to do so with its revolving credit facility. (d) Includes $1 million and $2 million of unamortized gains from the settlement of a derivative as of December 31, 2015 and 2014 , respectively. (e) Includes unamortized gains from the settlement of a derivative in the amount of $2 million as of December 31, 2015 . As of December 31, 2014 , includes a $3 million increase in the carrying value resulting from a fair value hedge derivative. (f) Includes unamortized gains from the settlement of a derivative in the amount of $11 million as of December 31, 2015 . As of December 31, 2014 , includes a $13 million increase in the carrying value resulting from a fair value hedge derivative. (g) Includes unamortized losses from the settlement of a derivative in the amount of $10 million as of December 31, 2015 . Maturities and Capacity The Company’s outstanding debt as of December 31, 2015 matures as follows: Securitized Vacation Ownership Debt Long-Term Debt Total Within 1 year $ 209 $ 360 (*) $ 569 Between 1 and 2 years 235 330 565 Between 2 and 3 years 393 476 869 Between 3 and 4 years 205 13 218 Between 4 and 5 years 212 168 380 Thereafter 876 1,731 2,607 $ 2,130 $ 3,078 $ 5,208 (*) Includes $316 million of senior unsecured notes that the Company classified as long-term debt as it has the intent to refinance such debt on a long-term basis and the ability to do so with its revolving credit facility. Debt maturities of the securitized vacation ownership debt are based on the contractual payment terms of the underlying vacation ownership contract receivables. As such, actual maturities may differ as a result of prepayments by the vacation ownership contract receivable obligors. As of December 31, 2015 , the available capacity under the Company’s borrowing arrangements was as follows: Securitized Bank Conduit Facility (a) Revolving Credit Facility Total Capacity $ 650 $ 1,500 Less: Outstanding Borrowings 239 7 Letters of credit — 1 Commercial paper borrowings — 109 (b) Available Capacity $ 411 $ 1,383 (a) The capacity of this facility is subject to the Company’s ability to provide additional assets to collateralize additional securitized borrowings. (b) The Company considers outstanding borrowings under its commercial paper programs to be a reduction of the available capacity of its revolving credit facility. Securitized Vacation Ownership Debt As discussed in Note 14 — Variable Interest Entities, the Company issues debt through the securitization of vacation ownership contract receivables. Sierra Timeshare 2015-1 Receivables Funding, LLC. During March, 2015 , the Company closed a series of term notes payable, Sierra Timeshare 2015-1 Receivables Funding LLC, with an initial principal amount of $350 million , which are secured by vacation ownership contract receivables and bear interest at a weighted average coupon rate of 2.54% . The advance rate for this transaction was 90% . As of December 31, 2015 , the Company had $222 million of outstanding borrowings under these term notes. Sierra Timeshare 2015-2 Receivables Funding, LLC. During July, 2015 , the Company closed a series of term notes payable, Sierra Timeshare 2015-2 Receivables Funding LLC, with an initial principal amount of $275 million , which are secured by vacation ownership contract receivables and bear interest at a weighted average coupon rate of 2.56% . The advance rate for this transaction was 90% . As of December 31, 2015 , the Company had $207 million of outstanding borrowings under these term notes. Sierra Timeshare 2015-3 Receivables Funding, LLC. During October, 2015 , the Company closed a series of term notes payable, Sierra Timeshare 2015-3 Receivables Funding LLC, with an initial principal amount of $300 million , which are secured by vacation ownership contract receivables and bear interest at a weighted average coupon rate of 2.69% . The advance rate for this transaction was 89% . As of December 31, 2015 , the Company had $275 million of outstanding borrowings under these term notes. As of December 31, 2015 , the Company had $1,187 million of outstanding borrowings under term notes entered into prior to December 31, 2014 . The Company’s securitized term notes include fixed and floating rate term notes for which the weighted average interest rate was 3.5% , 3.7% and 4.2% during 2015 , 2014 and 2013 , respectively. Sierra Timeshare Conduit Receivables Funding II, LLC. During August 2015 , the Company renewed its securitized timeshare receivables conduit facility for a two -year period through August 2017 . The facility has a total capacity of $650 million and bears interest at variable rates based on commercial paper rates and LIBOR rates plus a spread. The bank conduit facility had a weighted average interest rate of 3.7% , 3.4% and 3.9% during 2015 , 2014 and 2013 , respectively. As of December 31, 2015 , the Company’s securitized vacation ownership debt of $2,130 million is collateralized by $2,576 million of underlying gross vacation ownership contract receivables and related assets. Additional usage of the capacity of the Company’s bank conduit facility is subject to the Company’s ability to provide additional assets to collateralize such facility. The combined weighted average interest rate on the Company’s total securitized vacation ownership debt was 3.5% , 3.7% and 4.2% during 2015 , 2014 and 2013 , respectively. Long-Term Debt Revolving Credit Facility. During March 2015 , the Company replaced its $1.5 billion revolving credit facility expiring on July 15, 2018 with a $1.5 billion five -year revolving credit facility that expires on July 15, 2020 . This facility is subject to a fee of 20 basis points based on total capacity and bears interest at LIBOR plus 130 basis points on outstanding borrowings. The facility fee and interest rate are dependent on the Company’s credit ratings. The available capacity of the facility also supports the Company’s commercial paper programs. Commercial Paper. The Company maintains U.S. and European commercial paper programs with a total capacity of $750 million and $500 million , respectively. The maturities of U.S. and European commercial paper notes will vary, but may not exceed 366 days and 364 days , respectively, from the date of issue. As of December 31, 2015 , the Company had outstanding borrowings of $109 million at a weighted average rate of 1.07% , all of which was under its U.S. commercial paper program. As of December 31, 2014 , the Company had $189 million of outstanding borrowings at a weighted average interest rate of 0.89% all under its U.S. commercial paper program. The Company considers outstanding borrowings under its commercial paper programs to be a reduction of available capacity on its revolving credit facility. The commercial paper notes are sold at a discount from par or will bear interest at a negotiated rate. While outstanding commercial paper borrowings generally have short-term maturities, the Company classifies the outstanding borrowings as long-term debt based on its intent to refinance the outstanding borrowings on a long-term basis and the ability to do so with its revolving credit facility. 5.10% Senior Unsecured Notes. During September 2015 , the Company issued senior unsecured notes, with face value of $350 million and bearing interest at a rate of 5.10% , for net proceeds of $ 348 million . The interest on the senior unsecured notes will be subject to adjustments from time to time if there are downgrades to the credit ratings assigned to the notes. Interest began accruing on September 15, 2015 and is payable semi-annually in arrears on April 1 and October 1 of each year, commencing on April 1, 2016. The notes will mature on October 1, 2025 and are redeemable at the Company’s option at any time, in whole or in part, at the stated redemption prices plus accrued interest through the redemption date. These notes rank equally in right of payment with all of the Company’s other senior unsecured indebtedness. In connection with this transaction, the Company settled an interest swap agreement resulting in a payment of $10 million which was included within other, net in operating activities on the Consolidated Statement of Cash Flows. As of December 31, 2015 , the Company had a $10 million deferred loss which was included within long-term debt on the Consolidated Balance Sheet and will be amortized over the tenor of the senior unsecured notes within interest expense on the Consolidated Statement of Income. As of December 31, 2015 , the Company had $2,421 million of outstanding senior unsecured notes issued prior to December 31, 2014 . Interest is payable semi-annually in arrears on the notes. The notes are redeemable at the Company’s option at any time, in whole or in part, at the stated redemption prices plus accrued interest through the redemption dates. These notes rank equally in right of payment with all of the Company’s other senior unsecured indebtedness. Destination Network Capital Leases. The Company leases vacation homes located in European holiday parks as part of its destination network business. The majority of these leases are recorded as capital lease obligations with corresponding assets classified within property and equipment, net on the Consolidated Balance Sheets. Such capital lease obligations had a weighted average interest rate of 4.5% during each of 2015 , 2014 and 2013 . Capital Lease. During 2013 , the Company extended the lease on its Corporate headquarters. As a result of this extension, the Company classified the lease as a capital lease and recorded a capital lease obligation of $85 million with a corresponding capital lease asset which was recorded net of deferred rent. Such transaction was non-cash and as such, is excluded from both investing and financing activities within the Company’s Consolidated Statement of Cash Flows. Such capital lease had an interest rate of 4.5% during 2015 , 2014 and 2013 . Other. During January 2013, the Company entered into an agreement with a third-party partner whereby the partner acquired Midtown 45 through an SPE. The SPE financed the purchase with a $115 million four -year mortgage note, provided by related parties of such partner. The note accrues interest at 4.5% and the principal and interest are payable semi-annually, commencing on July 24, 2013. In addition, $9 million of mandatorily redeemable equity of the SPE was classified as long-term debt. As of December 31, 2015 , $42 million of the four-year mortgage note and $4 million of mandatorily redeemable equity were outstanding. As of December 31, 2014 , $71 million of the four-year mortgage note and $6 million of mandatorily redeemable equity were outstanding. See Note 14 - Variable Interest Entities for more detailed information. Fair Value Hedges . During 2013 , the Company entered into fixed to variable interest rate swap agreements (“the Swaps”) on its 3.90% and 4.25% senior unsecured notes (the “Senior Notes”) with notional amounts of $400 million and $100 million , respectively. The fixed interest rates on these notes were effectively modified to a variable LIBOR-based index. During May 2015 , the Company terminated the Swaps and received $17 million of cash which was included within other, net in operating activities on the Consolidated Statement of Cash Flows. As of December 31, 2015 , the Company had $13 million of deferred gains which were included within long-term debt on the Consolidated Balance Sheet and will be recognized within interest expense on the Consolidated Statement of Income over the remaining life of the Senior Notes. As of December 31, 2014 , the aggregate fair value of these Swaps was $18 million of assets which were included in other non-current assets on the Consolidated Balance Sheet. Early Extinguishment of Debt During 2013, the Company repurchased a portion of its 5.75% and 7.375% senior unsecured notes totaling $446 million through tender offers, repurchased $42 million of its 6.00% senior unsecured notes on the open market and executed a redemption option for the remaining $43 million outstanding on its 9.875% senior unsecured notes. As a result, during 2013, the Company repurchased a total of $531 million of its outstanding senior unsecured notes and incurred expenses of $111 million which is included within early extinguishment of debt on the Consolidated Statement of Income. Interest Expense The Company incurred non-securitized interest expense of $125 million during 2015 . Such amount consisted primarily of interest on long-term debt, partially offset by $7 million of capitalized interest. Such amounts are included within interest expense on the Consolidated Statement of Income. Cash paid related to interest on the Company’s non-securitized debt was $118 million . The Company incurred non-securitized interest expense of $113 million during 2014 . Such amount consisted primarily of interest on long-term debt, partially offset by $6 million of capitalized interest and $2 million of gains resulting from the ineffectiveness of the fair value hedges. Such amounts are included within interest expense on the Consolidated Statement of Income. Cash paid related to interest on the Company’s non-securitized debt was $119 million . The Company incurred non-securitized interest expense of $131 million during 2013 . Such amount consisted primarily of interest on long-term debt, partially offset by $5 million of capitalized interest and is recorded within interest expense on the Consolidated Statement of Income. Cash paid related to interest on the Company’s non-securitized debt was $127 million . Interest expense incurred in connection with the Company’s securitized vacation ownership debt was $74 million , $71 million and $78 million during 2015 , 2014 and 2013 , respectively, and is recorded within consumer financing interest on the Consolidated Statements of Income. Cash paid related to such interest was $56 million , $53 million and $61 million during 2015 , 2014 and 2013 , respectively. |
Variable Interest Entities
Variable Interest Entities | 12 Months Ended |
Dec. 31, 2015 | |
Variable Interest Entity, Classification of Carrying Amount, Assets and Liabilities, Net [Abstract] | |
Variable Interest Entities | Variable Interest Entities The Company pools qualifying vacation ownership contract receivables and sells them to bankruptcy-remote entities. Vacation ownership contract receivables qualify for securitization based primarily on the credit strength of the VOI purchaser to whom financing has been extended. Vacation ownership contract receivables are securitized through bankruptcy-remote SPEs that are consolidated within the Consolidated Financial Statements. As a result, the Company does not recognize gains or losses resulting from these securitizations at the time of sale to the SPEs. Interest income is recognized when earned over the contractual life of the vacation ownership contract receivables. The Company services the securitized vacation ownership contract receivables pursuant to servicing agreements negotiated on an arms-length basis based on market conditions. The activities of these SPEs are limited to (i) purchasing vacation ownership contract receivables from the Company’s vacation ownership subsidiaries, (ii) issuing debt securities and/or borrowing under a conduit facility to fund such purchases and (iii) entering into derivatives to hedge interest rate exposure. The bankruptcy-remote SPEs are legally separate from the Company. The receivables held by the bankruptcy-remote SPEs are not available to creditors of the Company and legally are not assets of the Company. Additionally, the non-recourse debt that is securitized through the SPEs is legally not a liability of the Company and thus, the creditors of these SPEs have no recourse to the Company for principal and interest. The assets and liabilities of these vacation ownership SPEs are as follows: December 31, December 31, Securitized contract receivables, gross (a) $ 2,462 $ 2,512 Securitized restricted cash (b) 92 96 Interest receivables on securitized contract receivables (c) 20 20 Other assets (d) 2 1 Total SPE assets (e) 2,576 2,629 Securitized term notes (f) 1,891 1,962 Securitized conduit facilities (f) 239 203 Other liabilities (g) 2 1 Total SPE liabilities 2,132 2,166 SPE assets in excess of SPE liabilities $ 444 $ 463 (a) Included in current ( $248 million and $256 million as of December 31, 2015 and 2014 , respectively) and non-current ( $2,214 million and $2,256 million as of December 31, 2015 and 2014 , respectively) vacation ownership contract receivables on the Consolidated Balance Sheets. (b) Included in other current assets ( $73 million and $75 million as of December 31, 2015 and 2014 , respectively) and other non-current assets ( $19 million and $21 million as of December 31, 2015 and 2014 , respectively) on the Consolidated Balance Sheets. (c) Included in trade receivables, net on the Consolidated Balance Sheets. (d) Primarily includes a security investment asset, which is included in other non-current assets on the Consolidated Balance Sheets. (e) Excludes deferred financing costs of $27 million and $30 million as of December 31, 2015 and 2014 , respectively, related to securitized debt. (f) Included in current ( $209 million and $214 million as of December 31, 2015 and 2014 , respectively) and long-term ( $1,921 million and $1,951 million as of December 31, 2015 and 2014 , respectively) securitized vacation ownership debt on the Consolidated Balance Sheets. (g) Primarily includes accrued interest on securitized debt, which is included in accrued expenses and other current liabilities on the Consolidated Balance Sheets. In addition, the Company has vacation ownership contract receivables that have not been securitized through bankruptcy-remote SPEs. Such gross receivables were $829 million and $760 million as of December 31, 2015 and 2014 , respectively. A summary of total vacation ownership receivables and other securitized assets, net of securitized liabilities and the allowance for loan losses, is as follows: December 31, December 31, SPE assets in excess of SPE liabilities $ 444 $ 463 Non-securitized contract receivables 829 760 Less: Allowance for loan losses 581 581 Total, net $ 692 $ 642 Midtown 45, NYC Property During January 2013, the Company entered into an agreement with a third-party partner whereby the partner acquired the Midtown 45 property in New York City through an SPE. The Company is managing and operating the property for rental purposes while the Company converts it into VOI inventory. The SPE financed the acquisition and planned renovations with a four-year mortgage note and mandatorily redeemable equity provided by related parties of such partner. At the time of the agreement, the Company committed to purchase such VOI inventory from the SPE over a four-year period which will be used to repay the four-year mortgage note and the mandatorily redeemable equity of the SPE. The Company is considered to be the primary beneficiary of the SPE and therefore, the Company consolidated the SPE within its financial statements. The assets and liabilities of the SPE are as follows: December 31, December 31, Receivable for leased property and equipment (a) $ 47 $ 64 Total SPE assets 47 64 Accrued expenses and other current liabilities 1 1 Long-term debt (b) 46 77 Total SPE liabilities 47 78 SPE deficit $ — $ (14 ) (a) Represents a receivable for assets leased to the Company which are reported within property and equipment, net on the Company’s Consolidated Balance Sheets. (b) As of December 31, 2015 , included $42 million relating to a four-year mortgage note due in 2017 and $4 million of mandatorily redeemable equity, of which $29 million was included in current portion of long-term debt on the Consolidated Balance Sheet. As of December 31, 2014 , included $71 million relating to a four-year mortgage note due in 2017 and $6 million of mandatorily redeemable equity, of which $31 million was included in current portion of long-term debt on the Consolidated Balance Sheet. During 2015 , the SPE conveyed $23 million of property and equipment to the Company. In addition, the Company subsequently transferred $55 million of property and equipment to VOI inventory. During 2014 , the SPE conveyed $51 million of property and equipment to the Company, of which $24 million was subsequently transferred to VOI inventory. |
Fair Value
Fair Value | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value | Fair Value The following table presents information about the Company’s financial assets and liabilities that are measured at fair value on a recurring basis and indicates the fair value hierarchy of the valuation techniques utilized by the Company to determine such fair values. Financial assets and liabilities carried at fair value are classified and disclosed in one of the following three categories: Level 1: Quoted prices for identical instruments in active markets. Level 2: Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations whose inputs are observable or whose significant value driver is observable. Level 3: Unobservable inputs used when little or no market data is available. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, the level in the fair value hierarchy within which the fair value measurement falls has been determined based on the lowest level input (closest to Level 3) that is significant to the fair value measurement. The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment, and considers factors specific to the asset or liability. The following table summarizes information regarding assets and liabilities that are measured at fair value (all of which are Level 2) on a recurring basis: As of As of December 31, 2015 December 31, 2014 Fair Value Carrying Value Fair Value Carrying Value Assets Derivatives: (a) Interest rate contracts $ — $ — $ 18 $ 18 Foreign exchange contracts 2 2 1 1 Total assets $ 2 $ 2 $ 19 $ 19 Liabilities Derivatives: (b) Interest rate contracts (c) $ — $ — $ 4 $ 4 Foreign exchange contracts 3 3 3 3 Total liabilities $ 3 $ 3 $ 7 $ 7 (a) Included in other current assets ( $2 million and $1 million as of December 31, 2015 and 2014 , respectively) and other non-current assets ( $18 million as of December 31, 2014 , respectively) on the Consolidated Balance Sheets. (b) Included in accrued expenses and other current liabilities on the Consolidated Balance Sheets. (c) As of December 31, 2014, primarily related to interest rate swap locks for the 2015 issuance of senior unsecured notes. The Company’s derivative instruments primarily consist of pay-fixed/receive-variable interest rate swaps, pay-variable/receive-fixed interest rate swaps, interest rate caps, foreign exchange forward contracts and foreign exchange average rate forward contracts (see Note 16 – Financial Instruments for more detail). For assets and liabilities that are measured using quoted prices in active markets, the fair value is the published market price per unit multiplied by the number of units held without consideration of transaction costs. Assets and liabilities that are measured using other significant observable inputs are valued by reference to similar assets and liabilities. For these items, a significant portion of fair value is derived by reference to quoted prices of similar assets and liabilities in active markets. For assets and liabilities that are measured using significant unobservable inputs, fair value is primarily derived using a fair value model, such as a discounted cash flow model. The fair value of financial instruments is generally determined by reference to market values resulting from trading on a national securities exchange or in an over-the-counter market. In cases where quoted market prices are not available, fair value is based on estimates using present value or other valuation techniques, as appropriate. The carrying amounts of cash and cash equivalents, restricted cash, trade receivables, accounts payable and accrued expenses and other current liabilities approximate fair value due to the short-term maturities of these assets and liabilities. The carrying amounts and estimated fair values of all other financial instruments are as follows: December 31, 2015 December 31, 2014 Carrying Amount Estimated Fair Value Carrying Amount Estimated Fair Value Assets Vacation ownership contract receivables, net $ 2,710 $ 3,272 $ 2,691 $ 3,284 Debt Total debt 5,208 5,234 5,053 5,140 The Company estimates the fair value of its vacation ownership contract receivables using a discounted cash flow model which it believes is comparable to the model that an independent third-party would use in the current market. The model uses Level 3 inputs consisting of default rates, prepayment rates, coupon rates and loan terms for the contract receivables portfolio as key drivers of risk and relative value that, when applied in combination with pricing parameters, determines the fair value of the underlying contract receivables. The Company estimates the fair value of its securitized vacation ownership debt by obtaining Level 2 inputs comprised of indicative bids from investment banks that actively issue and facilitate the secondary market for timeshare securities. The Company estimates the fair value of its other long-term debt, excluding capital leases, using Level 2 inputs based on indicative bids from investment banks and determines the fair value of its senior notes using quoted market prices (such senior notes are not actively traded). |
Financial Instruments
Financial Instruments | 12 Months Ended |
Dec. 31, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Financial Instruments | Financial Instruments The designation of a derivative instrument as a hedge and its ability to meet the hedge accounting criteria determine how the change in fair value of the derivative instrument will be reflected in the Consolidated Financial Statements. A derivative qualifies for hedge accounting if, at inception, the derivative is expected to be highly effective in offsetting the underlying hedged cash flows or fair value and the hedge documentation standards are fulfilled at the time the Company enters into the derivative contract. A hedge is designated as a cash flow hedge based on the exposure being hedged. The asset or liability value of the derivative will change in tandem with its fair value. Changes in fair value, for the effective portion of qualifying hedges, are recorded in AOCI. The derivative’s gain or loss is released from AOCI to match the timing of the underlying hedged cash flows effect on earnings. The Company reviews the effectiveness of its hedging instruments on an ongoing basis, recognizes current period hedge ineffectiveness immediately in earnings and discontinues hedge accounting for any hedge that it no longer considers to be highly effective. The Company recognizes changes in fair value for derivatives not designated as hedges or those not qualifying for hedge accounting in current period earnings. Upon termination of cash flow hedges, the Company releases gains and losses from AOCI based on the timing of the underlying cash flows, unless the termination results from the failure of the intended transaction to occur in the expected time frame. Such untimely transactions require the Company to immediately recognize in earnings gains and losses previously recorded in AOCI. Changes in interest rates and foreign exchange rates expose the Company to market risk. The Company also uses cash flow hedges as part of its overall strategy to manage its exposure to market risks associated with fluctuations in interest rates and foreign currency exchange rates. As a matter of policy, the Company only enters into transactions that it believes will be highly effective at offsetting the underlying risk and it does not use derivatives for trading or speculative purposes. The Company uses the following derivative instruments to mitigate its foreign currency exchange rate and interest rate risks: Foreign Currency Risk The Company has foreign currency rate exposure to exchange rate fluctuations worldwide with particular exposure to the British pound, Euro, Canadian and Australian dollar. The Company uses freestanding foreign currency forward contracts to manage a portion of its exposure to changes in foreign currency exchange rates associated with its foreign currency denominated receivables, payables and forecasted earnings of foreign subsidiaries. Additionally, the Company uses foreign currency forward contracts designated as cash flow hedges to manage a portion of its exposure to changes in forecasted foreign currency denominated vendor payments. The amount of gains or losses relating to contracts designated as cash flow hedges that the Company expects to reclassify from AOCI to earnings over the next 12 months is not material. Interest Rate Risk A portion of the debt used to finance the Company’s operations is exposed to interest rate fluctuations. The Company uses various hedging strategies and derivative financial instruments to create a desired mix of fixed and floating rate assets and liabilities. Derivative instruments currently used in these hedging strategies include swaps and interest rate caps. The derivatives used to manage the risk associated with the Company’s floating rate debt include freestanding derivatives and derivatives designated as cash flow hedges. The Company also uses swaps to convert specific fixed-rate debt into variable-rate debt (i.e., fair value hedges) to manage the overall interest cost. For relationships designated as fair value hedges, changes in fair value of the derivatives are recorded in income with offsetting adjustments to the carrying amount of the hedged debt. The amount of gains or losses that the Company expects to reclassify from AOCI to earnings during the next 12 months is not material. The following table summarizes information regarding the gains/(losses) recognized in AOCI for the years ended December 31: 2015 2014 2013 Designated hedging instruments Interest rate contracts $ 4 $ (4 ) $ 2 Foreign exchange contracts 3 2 (2 ) Total $ 7 $ (2 ) $ — The following table summarizes information regarding the gains/(losses) recognized in income on the Company’s freestanding derivatives for the years ended December 31: 2015 2014 2013 Non-designated hedging instruments Foreign exchange contracts (a) $ (15 ) $ (21 ) $ 10 Interest rate contracts (b) — — (1 ) Total $ (15 ) $ (21 ) $ 9 (a) Included within operating expenses on the Consolidated Statements of Income, which is primarily offset by changes in the value of the underlying assets and liabilities. (b) Included within consumer financing interest expense on the Consolidated Statements of Income. Credit Risk and Exposure The Company is exposed to counterparty credit risk in the event of nonperformance by counterparties to various agreements and sales transactions. The Company manages such risk by evaluating the financial position and creditworthiness of such counterparties and by requiring collateral in instances in which financing is provided. The Company mitigates counterparty credit risk associated with its derivative contracts by monitoring the amounts at risk with each counterparty to such contracts, periodically evaluating counterparty creditworthiness and financial position, and where possible, dispersing its risk among multiple counterparties. As of December 31, 2015 , there were no significant concentrations of credit risk with any individual counterparty or groups of counterparties. However, approximately 19% of the Company’s outstanding vacation ownership contract receivables portfolio relates to customers who reside in California. With the exception of the financing provided to customers of its vacation ownership businesses, the Company does not normally require collateral or other security to support credit sales. Market Risk The Company is subject to risks relating to the geographic concentrations of (i) areas in which the Company is currently developing and selling vacation ownership properties, (ii) sales offices in certain vacation areas and (iii) customers of the Company’s vacation ownership business, which in each case, may result in the Company’s results of operations being more sensitive to local and regional economic conditions and other factors, including competition, natural disasters and economic downturns, than the Company’s results of operations would be, absent such geographic concentrations. Local and regional economic conditions and other factors may differ materially from prevailing conditions in other parts of the world. Florida, California and Nevada are examples of areas with concentrations of sales offices. For the year ended December 31, 2015 , approximately 14% , 12% and 12% of the Company’s VOI sales revenues were generated in sales offices located in Florida, California and Nevada, respectively. Included within the Consolidated Statements of Income is approximately 15% , 14% and 10% of net revenues generated from transactions in the state of Florida during 2015 , 2014 and 2013 , respectively, and 12% of net revenues generated from transactions in the state of California during 2015 and 2014 . |
Commitments And Contingencies
Commitments And Contingencies | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments And Contingencies | Commitments and Contingencies C OMMITMENTS Leases The Company is committed to making rental payments under noncancelable operating leases covering various facilities and equipment. Future minimum lease payments required under noncancelable operating leases as of December 31, 2015 are as follows: Noncancelable Operating Leases 2016 $ 90 2017 70 2018 57 2019 47 2020 35 Thereafter 194 $ 493 The Company incurred total rental expense of $83 million during both 2015 and 2014 and $80 million during 2013 . Purchase Commitments In the normal course of business, the Company makes various commitments to purchase goods or services from specific suppliers, including those related to vacation ownership resort development and other capital expenditures. Purchase commitments made by the Company as of December 31, 2015 aggregated $620 million , of which $191 million were for information technology activities, $179 million were for marketing related activities and $149 million were related to the development of vacation ownership properties. Letters of Credit As of December 31, 2015 , the Company had $63 million of irrevocable standby letters of credit outstanding, of which $1 million were under its revolving credit facility. As of December 31, 2014 , the Company had $69 million of irrevocable standby letters of credit outstanding, of which $2 million were under its revolving credit facility. Such letters of credit issued during 2015 and 2014 primarily supported the securitization of vacation ownership contract receivables fundings, certain insurance policies and development activity at the Company’s vacation ownership business. Surety Bonds Some of the Company’s vacation ownership sales and developments are supported by surety bonds provided by affiliates of certain insurance companies in order to meet regulatory requirements of certain states. In the ordinary course of the Company’s business, it has assembled commitments from 13 surety providers in the amount of $1.3 billion , of which the Company had $433 million outstanding as of December 31, 2015 . The availability, terms and conditions and pricing of bonding capacity are dependent on, among other things, continued financial strength and stability of the insurance company affiliates providing the bonding capacity, general availability of such capacity and the Company’s corporate credit rating. If the bonding capacity is unavailable or, alternatively, the terms and conditions and pricing of the bonding capacity are unacceptable to the Company, the cost of development of the Company’s vacation ownership units could be negatively impacted. LITIGATION The Company is involved in claims, legal and regulatory proceedings and governmental inquiries related to the Company’s business. Wyndham Worldwide Corporation Litigation The Company is involved in claims, legal and regulatory proceedings and governmental inquiries arising in the ordinary course of its business including but not limited to: for its hotel group business-breach of contract, fraud and bad faith claims between franchisors and franchisees in connection with franchise agreements and with owners in connection with management contracts, negligence, breach of contract, fraud, employment, consumer protection and other statutory claims asserted in connection with alleged acts or occurrences at owned, franchised or managed properties or in relation to guest reservations and bookings; for its destination network business-breach of contract, fraud and bad faith claims by affiliates and customers in connection with their respective agreements, negligence, breach of contract, fraud, consumer protection and other statutory claims asserted by members and guests for alleged injuries sustained at affiliated resorts and vacation rental properties and consumer protection and other statutory claims asserted by consumers; for its vacation ownership business-breach of contract, bad faith, conflict of interest, fraud, consumer protection and other statutory claims by property owners’ associations, owners and prospective owners in connection with the sale or use of VOIs or land, or the management of vacation ownership resorts, construction defect claims relating to vacation ownership units or resorts, and negligence, breach of contract, fraud, consumer protection and other statutory claims by guests for alleged injuries sustained at vacation ownership units or resorts; and for each of its businesses, bankruptcy proceedings involving efforts to collect receivables from a debtor in bankruptcy, employment matters which may include claims of retaliation, discrimination, harassment and wage and hour claims, claims of infringement upon third parties’ intellectual property rights, claims relating to information security, privacy and consumer protection, fiduciary duty/trust claims, tax claims, environmental claims and landlord/tenant disputes. On June 26, 2012, the U.S. Federal Trade Commission (“FTC”) filed a lawsuit in Federal District Court for the District of Arizona against the Company and its subsidiaries, Wyndham Hotel Group, LLC (“WHG”), Wyndham Hotels & Resorts Inc. (“WHR”) and Wyndham Hotel Management Inc. (“WHM”), alleging unfairness and deception-based violations of Section 5 of the FTC Act in connection with three prior data breach incidents involving a group of Wyndham brand hotels. The Company, WHG, WHR and WHM disputed the allegations in the lawsuit. The Company does not believe that the data breach incidents were material. On March 26, 2013, the Company’s, WHG’s, WHR’s and WHM’s motion to transfer venue of the lawsuit from Arizona to the Federal District Court for the District of New Jersey was granted. WHR’s motion to dismiss one of the counts in the lawsuit was denied on April 7, 2014. The District Court granted WHR’s motion to certify its order denying WHR’s motion to dismiss for interlocutory appeal on June 23, 2014. The separate motion to dismiss the Company, WHG and WHM from the lawsuit was denied on June 23, 2014. On July 29, 2014, the Third Circuit Court of Appeals granted WHR’s request to file an interlocutory appeal of the District Court’s denial of its motion to dismiss. On August 24, 2015, the Third Circuit affirmed the District Court’s ruling denying WHR’s motion to dismiss and ordered that the case proceed in the District Court, where the parties would proceed with discovery on the merits of the allegations in the complaint. On December 9, 2015, the Company and the FTC announced that the parties entered into a Stipulated Order for Injunction (“Stipulated Order”) to resolve the litigation. The Company did not pay any monetary relief in connection with the Stipulated Order. The Stipulated Order requires WHR to maintain an information security program for payment card information within WHR’s network, and provides WHR with a safe harbor provided it continues to meet certain requirements for “reasonable data security” as outlined in the Stipulated Order. The Stipulated Order does not impose any obligation upon us for the data security at franchised hotels. The Stipulated Order remains in effect for 20 years. The District Court entered the Stipulated Order and dismissed the litigation with prejudice on December 11, 2015. The Company records an accrual for legal contingencies when it determines, after consultation with outside counsel, that it is probable that a liability has been incurred and the amount of the loss can be reasonably estimated. In making such determinations, the Company evaluates, among other things, the degree of probability of an unfavorable outcome and, when it is probable that a liability has been incurred, the Company’s ability to make a reasonable estimate of loss. The Company reviews these accruals each reporting period and makes revisions based on changes in facts and circumstances including changes to its strategy in dealing with these matters. The Company believes that it has adequately accrued for such matters with reserves of $29 million and $24 million as of December 31, 2015 and 2014 , res pectively. Such reserves are exclusive of matters relating to the Separation. For matters not requiring accrual, the Company believes that such matters will not have a material effect on its results of operations, financial position or cash flows based on information currently available. However, litigation is inherently unpredictable and, although the Company believes that its accruals are adequate and/or that it has valid defenses in these matters, unfavorable results could occur. As such, an adverse outcome from such proceedings for which claims are awarded in excess of the amounts accrued, if any, could be material to the Company with respect to earnings and/or cash flows in any given reporting period. As of December 31, 2015 , the potential exposure resulting from adverse outcomes of such legal proceedings could, in the aggregate, range up to approximately $30 million in excess of recorded accruals. However, the Company does not believe that the impact of such litigation should result in a material liability to the Company in relation to its consolidated financial position or liquidity. Cendant Litigation Under the Separation agreement, the Company agreed to be responsible for 37.5% of certain of Cendant’s contingent and other corporate liabilities and associated costs, including certain contingent litigation. Since the Separation, Cendant settled the majority of the lawsuits pending on the date of the Separation. See also Note 23 - Separation Adjustments and Transactions with Former Parent and Subsidiaries regarding contingent litigation liabilities resulting from the Separation. G UARANTEES / INDEMNIFICATIONS Standard Guarantees/Indemnifications In the ordinary course of business, the Company enters into agreements that contain standard guarantees and indemnities whereby the Company indemnifies another party for specified breaches of or third-party claims relating to an underlying agreement. Such underlying agreements are typically entered into by one of the Company’s subsidiaries. The various underlying agreements generally govern purchases, sales or outsourcing of products or services, leases of real estate, licensing of software and/or development of vacation ownership properties, access to credit facilities, derivatives and issuances of debt securities. While a majority of these guarantees and indemnifications extend only for the duration of the underlying agreement, some survive the expiration of the agreement. The Company is not able to estimate the maximum potential amount of future payments to be made under these guarantees and indemnifications as the triggering events are not predictable. In certain cases, the Company maintains insurance coverage that may mitigate any potential payments. Other Guarantees/Indemnifications Hotel Group From time to time, the Company may enter into a hotel management agreement that provides the hotel owner with a guarantee of a certain level of profitability based upon various metrics. Under such an agreement, the Company would be required to compensate such hotel owner for any profitability shortfall over the life of the management agreement up to a specified aggregate amount. For certain agreements, the Company may be able to recapture all or a portion of the shortfall payments in the event that future operating results exceed targets. The terms of such guarantees generally range from 7 to 10 years and certain agreements may provide for early termination provisions under certain circumstances. As of December 31, 2015 , the remaining maximum potential amount of future payments that may be made under these guarantees is $132 million with a combined annual cap of $44 million . These guarantees have a remaining weighted average life of approximately 7 years . As of December 31, 2015 , the Company also had a conditional guarantee with a hotel that will become effective when all the necessary conditions are satisfied by the hotel owner. At the effective date, the maximum potential amount of future payments that may be made under this conditional guarantee is $45 million with an annual cap of $10 million . In connection with such performance guarantees, as of December 31, 2015 , the Company maintained a liability of $25 million , of which $24 million was included in other non-current liabilities and $1 million was included in accrued expenses and other current liabilities on its Consolidated Balance Sheet. As of December 31, 2015 , the Company also had a corresponding $35 million asset related to these guarantees, of which $31 million was included in other non-current assets and $4 million was included in other current assets on its Consolidated Balance Sheet. As of December 31, 2014 , the Company maintained a liability of $32 million , of which $31 million was included in other non-current liabilities and $1 million was included in accrued expenses and other current liabilities on its Consolidated Balance Sheet. As of December 31, 2014 , the Company also had a corresponding $39 million asset related to the guarantees, of which $35 million was included in other non-current assets and $4 million was included in other current assets on its Consolidated Balance Sheet. Such assets are being amortized on a straight-line basis over the life of the agreements. The amortization expense for the assets noted above was $4 million for the years ended December 31, 2015 and 2014 . For guarantees subject to recapture provisions, the Company had a receivable of $32 million as of December 31, 2015 , of which $1 million was included in other current assets and $31 million was included in other non-current assets on its Consolidated Balance Sheet. As of December 31, 2014 , the Company had a receivable of $26 million which was included in other non-current assets on its Consolidated Balance Sheet. Such receivables were the result of payments made to date which are subject to recapture and which the Company believes will be recoverable from future operating performance. Vacation Ownership In the ordinary course of business, the Company’s vacation ownership business provides guarantees to certain owners’ associations for funds required to operate and maintain vacation ownership properties in excess of assessments collected from owners of the VOIs. The Company may be required to fund such excess as a result of unsold Company-owned VOIs or failure by owners to pay such assessments. In addition, from time to time, the Company will agree to reimburse certain owner associations up to 75% of their uncollected assessments. These guarantees extend for the duration of the underlying subsidy or similar agreement (which generally approximate one year and are renewable at the discretion of the Company on an annual basis). The maximum potential future payments that the Company could be required to make under these guarantees were approximately $347 million as of December 31, 2015 . The Company would only be required to pay this maximum amount if none of the assessed owners paid their assessments. Any assessments collected from the owners of the VOIs would reduce the maximum potential amount of future payments to be made by the Company. Additionally, should the Company be required to fund the deficit through the payment of any owners’ assessments under these guarantees, the Company would be permitted access to the property for its own use and may use that property to engage in revenue-producing activities, such as rentals. During 2015 , 2014 and 2013 , the Company made payments related to these guarantees of $15 million , $17 million and $18 million , respectively. As of December 31, 2015 and 2014 , the Company maintained a liability in connection with these guarantees of $34 million and $25 million , respectively, on its Consolidated Balance Sheets. The Company has guaranteed to repurchase completed properties located in Las Vegas, Nevada and St. Thomas from third-party developers subject to the properties meeting the Company’s vacation ownership resort standards and provided that the third-party developers have not sold the properties to another party (see Note 9 - Inventory). As part of WAAM Fee-for-Service, the Company may guarantee to reimburse the developer a certain payment or to purchase from the developer, inventory associated with the developer’s resort property for a percentage of the original sale price if certain future conditions exist. The maximum potential future payments that the Company could be required to make under these guarantees were approximately $55 million as of December 31, 2015 . As of December 31, 2015 and 2014 , the Company had no recognized liabilities in connection with these guarantees. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive (Loss)/Income | 12 Months Ended |
Dec. 31, 2015 | |
Accumulated Other Comprehensive Income [Abstract] | |
Accumulated Other Comprehensive (Loss)/Income | Accumulated Other Comprehensive (Loss)/Income The components of AOCI are as follows: Pretax Foreign Currency Translation Adjustments Unrealized Gains/(Losses) on Cash Flow Hedges Defined Benefit Pension Plans AOCI Balance as of December 31, 2012 $ 137 $ (9 ) $ (8 ) $ 120 Period change (26 ) 1 4 (21 ) Balance as of December 31, 2013 111 (8 ) (4 ) 99 Period change (124 ) — (8 ) (132 ) Balance as of December 31, 2014 (13 ) (8 ) (12 ) (33 ) Period change (126 ) 8 3 (115 ) Balance as of December 31, 2015 $ (139 ) $ — $ (9 ) $ (148 ) Tax Foreign Currency Translation Adjustments Unrealized Gains/(Losses) on Cash Flow Hedges Defined Benefit Pension Plans AOCI Balance as of December 31, 2012 $ 25 $ 4 $ 2 $ 31 Period change (7 ) — (1 ) (8 ) Balance as of December 31, 2013 18 4 1 23 Period change 32 — 2 34 Balance as of December 31, 2014 50 4 3 57 Period change 20 (3 ) — 17 Balance as of December 31, 2015 $ 70 $ 1 $ 3 $ 74 Net of Tax Foreign Currency Translation Adjustments Unrealized Gains/(Losses) on Cash Flow Hedges Defined Benefit Pension Plans AOCI Balance as of December 31, 2012 $ 162 $ (5 ) $ (6 ) $ 151 Period change (33 ) 1 3 (29 ) Balance as of December 31, 2013 129 (4 ) (3 ) 122 Period change (92 ) — (6 ) (98 ) Balance as of December 31, 2014 37 (4 ) (9 ) 24 Period change (106 ) 5 3 (98 ) Balance as of December 31, 2015 $ (69 ) $ 1 $ (6 ) $ (74 ) Currency translation adjustments exclude income taxes related to investments in foreign subsidiaries where the Company intends to reinvest the undistributed earnings indefinitely in those foreign operations. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2015 | |
Share-based Compensation [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation The Company has a stock-based compensation plan available to grant RSUs, SSARs, PSUs and other stock-based awards to key employees, non-employee directors, advisors and consultants. Under the Wyndham Worldwide Corporation 2006 Equity and Incentive Plan, as amended, a maximum of 36.7 million shares of common stock may be awarded. As of December 31, 2015 , 16.3 million shares remained available. Incentive Equity Awards Granted by the Company The activity related to incentive equity awards granted by the Company for the year ended December 31, 2015 consisted of the following: RSUs PSUs SSARs Number of RSUs Weighted Average Grant Price Number of PSUs Weighted Average Grant Price Number of SSARs Weighted Average Exercise Price Balance as of December 31, 2014 2.0 $ 57.13 0.7 $ 57.99 0.7 $ 40.09 Granted (a) 0.6 91.50 0.2 91.81 0.1 91.81 Vested/exercised (0.9 ) 49.35 (0.3 ) 44.57 — — Canceled (0.1 ) 68.47 — — — — Balance as of December 31, 2015 1.6 (b)(c) 73.75 0.6 (d) 73.60 0.8 (b)(e) 46.45 (a) Primarily represents awards granted by the Company on February 26, 2015 . (b) Aggregate unrecognized compensation expense related to RSUs and SSARs was $88 million as of December 31, 2015 , which is expected to be recognized over a weighted average period of 2.5 years . (c) Approximately 1.6 million RSUs outstanding as of December 31, 2015 are expected to vest over time. (d) Maximum aggregate unrecognized compensation expense was $23 million as of December 31, 2015 . (e) Approximately 0.6 million SSARs are exercisable as of December 31, 2015 . The Company assumes that all unvested SSARs are expected to vest over time. SSARs outstanding as of December 31, 2015 had an intrinsic value of $39 million and have a weighted average remaining contractual life of 2.0 years . During 2015 , 2014 and 2013 , the Company granted incentive equity awards totaling $61 million , $54 million and $54 million , respectively, to the Company’s key employees and senior officers in the form of RSUs and SSARs. The 2015 , 2014 and 2013 awards will vest ratably over a period of four years. In addition, during 2015 , 2014 and 2013 , the Company approved grants of incentive equity awards totaling $16 million , $14 million and $14 million respectively, to key employees and senior officers of the Company in the form of PSUs. These awards cliff vest on the third anniversary of the grant date, contingent upon the Company achieving certain performance metrics. The fair value of SSARs granted by the Company during 2015 , 2014 and 2013 was estimated on the date of the grant using the Black-Scholes option-pricing model with the relevant weighted average assumptions outlined in the table below. Expected volatility is based on both historical and implied volatilities of the Company’s stock over the estimated expected life of the SSARs. The expected life represents the period of time the SSARs are expected to be outstanding and is based on historical experience given consideration to the contractual terms and vesting periods of the SSARs. The risk free interest rate is based on yields on U.S. Treasury strips with a maturity similar to the estimated expected life of the SSARs. The projected dividend yield was based on the Company’s anticipated annual dividend divided by the price of the Company’s stock on the date of the grant. SSARs Issued on 2/26/2015 2/27/2014 2/28/2013 Grant date fair value $ 18.55 $ 20.36 $ 19.93 Grant date strike price $ 91.81 $ 72.97 $ 60.24 Expected volatility 25.38 % 35.86 % 44.56 % Expected life 5.1 years 5.1 years 5 years Risk free interest rate 1.64 % 1.54 % 0.80 % Projected dividend yield 1.83 % 1.92 % 1.93 % Stock-Based Compensation Expense The Company recorded stock-based compensation expense of $58 million , $57 million and $53 million during 2015 , 2014 and 2013 , respectively, related to the incentive equity awards granted to employees by the Company. During 2015 , 2014 and 2013 , the Company increased its pool of excess tax benefits available to absorb tax deficiencies (“APIC Pool”) by $17 million , $34 million and $15 million , respectively, due to the vesting of RSUs, PSUs and SSARs. As of December 31, 2015 , the Company’s APIC Pool balance was $129 million . The Company paid $42 million , $64 million and $31 million of taxes for the net share settlement of incentive equity awards during 2015 , 2014 and 2013 , respectively. Such amounts are included within financing activities on the Consolidated Statements of Cash Flows. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
Employee Benefit Plans | Employee Benefit Plans Defined Contribution Benefit Plans Wyndham sponsors domestic defined contribution savings plans and a domestic deferred compensation plan that provide eligible employees of the Company an opportunity to accumulate funds for retirement. The Company matches the contributions of participating employees on the basis specified by each plan. The Company’s cost for these plans was $36 million , $31 million and $28 million during 2015 , 2014 and 2013 , respectively. In addition, the Company contributes to several foreign employee benefit contributory plans which also provide eligible employees with an opportunity to accumulate funds for retirement. The Company’s contributory cost for these plans was $21 million during both 2015 and 2014 and $22 million during 2013 . Defined Benefit Pension Plans The Company sponsors defined benefit pension plans for certain foreign subsidiaries. Under these plans, benefits are based on an employee’s years of credited service and a percentage of final average compensation or as otherwise described by the plan. As of December 31, 2015 and 2014 , the Company’s net pension liability of $15 million and $19 million , respectively, is reported as other non-current liabilities on the Consolidated Balance Sheets. As of December 31, 2015 , the Company recorded $1 million and $8 million , within AOCI on the Consolidated Balance Sheet as an unrecognized prior service credit and unrecognized loss, respectively. As of December 31, 2014 , the Company recorded $2 million and $13 million within AOCI on the Consolidated Balance Sheet as an unrecognized prior service credit and unrecognized loss, respectively. The Company’s policy is to contribute amounts sufficient to meet minimum funding requirements as set forth in employee benefit and tax laws plus such additional amounts that the Company determines to be appropriate. The Company recorded pension expense of $3 million during both 2015 and 2014 and $4 million during 2013 . |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2015 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information The reportable segments presented below represent the Company’s operating segments for which separate financial information is available and which is utilized on a regular basis by its chief operating decision maker to assess performance and to allocate resources. In identifying its reportable segments, the Company also considers the nature of services provided by its operating segments. Management evaluates the operating results of each of its reportable segments based upon net revenues and “EBITDA”, which is defined as net income before depreciation and amortization, interest expense (excluding consumer financing interest), early extinguishment of debt, interest income (excluding consumer financing revenues) and income taxes, each of which is presented on the Consolidated Statements of Income. The Company believes that EBITDA is a useful measure of performance for its industry segments which, when considered with GAAP measures, the Company believes gives a more complete understanding of its operating performance. The Company’s presentation of EBITDA may not be comparable to similarly-titled measures used by other companies. YEAR ENDED OR AS OF DECEMBER 31, 2015 Hotel Group Destination Network Vacation Ownership Corporate and Other (d) Total Net revenues (a) $ 1,297 $ 1,538 $ 2,772 $ (71 ) $ 5,536 EBITDA 349 367 687 (137 ) 1,266 Depreciation and amortization 69 90 47 28 234 Segment assets 1,908 2,669 4,919 220 9,716 Capital expenditures 52 67 81 22 222 YEAR ENDED OR AS OF DECEMBER 31, 2014 Hotel Group Destination Network Vacation Ownership Corporate and Other (d) Total Net revenues (b) $ 1,101 $ 1,604 $ 2,638 $ (62 ) $ 5,281 EBITDA 327 335 660 (141 ) 1,181 Depreciation and amortization 61 96 47 29 233 Segment assets 1,835 2,703 4,856 285 9,679 Capital expenditures 55 74 85 21 235 YEAR ENDED OR AS OF DECEMBER 31, 2013 Hotel Group Destination Network Vacation Ownership Corporate and Other (d) Total Net revenues (c) $ 1,027 $ 1,526 $ 2,515 $ (59 ) $ 5,009 EBITDA 279 356 619 (122 ) 1,132 Depreciation and amortization 54 87 47 28 216 Segment assets 1,843 2,878 4,812 208 9,741 Capital expenditures 51 81 66 40 238 (a) Includes $71 million of intercompany segment revenues in the Company’s Hotel Group segment comprised of (i) $57 million of intersegment licensing fees for use of the Wyndham trade name, (ii) $8 million of room revenues at a Company owned hotel and (iii) $6 million of other fees primarily associated with the Wyndham Rewards program. Such revenues are offset in expenses at the Company’s Vacation Ownership segment. (b) Includes $62 million of intercompany segment revenues in the Company’s Hotel Group segment comprised of (i) $41 million of intersegment licensing fees for use of the Wyndham trade name, (ii) $8 million of room revenues at a Company owned hotel, (iii) $7 million of hotel management reimbursable revenues and (iv) $6 million of other fees primarily associated with the Wyndham Rewards program. Such revenues are offset in expenses at the Company’s Vacation Ownership segment. (c) Includes $59 million of intercompany segment revenues in the Company’s Hotel Group segment comprised of (i) $39 million of intersegment licensing fees for use of the Wyndham trade name, (ii) $8 million of room revenues at a Company owned hotel, (iii) $6 million of hotel management reimbursable fees and (iv) $6 million of other revenues primarily associated with the Wyndham Rewards program. Such revenues are offset in expenses at the Company’s Vacation Ownership segment. (d) Includes the elimination of transactions between segments. Provided below is a reconciliation of EBITDA to net income attributable to Wyndham shareholders. Year Ended December 31, 2015 2014 2013 EBITDA $ 1,266 $ 1,181 $ 1,132 Depreciation and amortization 234 233 216 Interest expense 125 113 131 Early extinguishment of debt — — 111 Interest income (9 ) (10 ) (9 ) Income before income taxes 916 845 683 Provision for income taxes 304 316 250 Net income 612 529 433 Net income attributable to noncontrolling interest — — (1 ) Net income attributable to Wyndham shareholders $ 612 $ 529 $ 432 The geographic segment information provided below is classified based on the geographic location of the Company’s subsidiaries. United States United Kingdom Netherlands All Other Countries Total Year Ended or As of December 31, 2015 Net revenues $ 4,248 $ 272 $ 239 $ 777 $ 5,536 Net long-lived assets 2,992 410 285 398 4,085 Year Ended or As of December 31, 2014 Net revenues $ 3,892 $ 298 $ 276 $ 815 $ 5,281 Net long-lived assets 3,011 433 317 404 4,165 Year Ended or As of December 31, 2013 Net revenues $ 3,765 $ 266 $ 250 $ 728 $ 5,009 Net long-lived assets 3,066 459 372 400 4,297 |
Restructuring, Impairment and O
Restructuring, Impairment and Other Charges | 12 Months Ended |
Dec. 31, 2015 | |
Restructuring Charges [Abstract] | |
Restructuring, Impairment and Other Charges | Restructuring, Impairment and Other Charges 2015 Restructuring Plans During 2015, the Company recorded $8 million of restructuring charges resulting from a realignment of brand services and call center operations within its hotel group business, a rationalization of international operations within its destination network business and a reorganization of the sales function within its vacation ownership business. In connection with these initiatives, the Company initially recorded $7 million of personnel-related costs and a $1 million non-cash asset impairment charge associated with a facility. It subsequently reversed $2 million of previously recorded personnel-related costs and reduced its liability with $2 million of cash payments. As of December 31, 2015 , the Company had a remaining liability of $3 million , which is expected to be paid in cash by the end of 2016. 2014 Restructuring Plans During 2014, the Company implemented restructuring initiatives at its destination network and hotel group businesses, primarily focused on improving the alignment of the organizational structure of each business with their strategic objectives. In connection with these initiatives, the Company recorded $6 million of personnel-related costs, a $5 million non-cash charge to write-off information technology assets and $1 million of costs related to contract terminations. During 2015 , the Company reduced its liability with $6 million of cash payments and reversed $1 million related to previously recorded contract termination costs. 2013 Restructuring Plan During 2013, the Company committed to an organizational realignment initiative at its hotel group business, primarily focused on optimizing its marketing structure. In connection with this initiative, the Company recorded $8 million of personnel-related costs and $1 million of costs related to contract terminations, of which $2 million was paid in cash and $1 million was non-cash. During 2014, the Company reduced its liability with $5 million of cash payments and reversed $1 million of previously recorded contract termination costs. The Company has additional restructuring plans which were implemented prior to 2013. During 2015 , the Company reduced its liability for such plans with $2 million of cash payments. The remaining liability of $2 million as of December 31, 2015 , which is related to leased facilities, is expected to be paid by 2020. The table below includes activity for prior restructuring plans that are immaterial to the Company. The activity related to costs associated with the restructuring plans is summarized by category as follows: Liability as of December 31, 2012 2013 Activity Liability as of December 31, 2013 Costs Recognized Cash Payments Other Personnel-Related $ 6 $ 8 (a) $ (6 ) $ (2 ) (f) $ 6 Facility-Related 5 2 (4 ) 1 (g) 4 Contract Terminations — 1 — — 1 $ 11 $ 11 $ (10 ) $ (1 ) $ 11 Liability as of December 31, 2013 2014 Activity Liability as of December 31, 2014 Costs Recognized Cash Payments Other Personnel-Related $ 6 $ 6 (b) $ (6 ) $ — $ 6 Facility-Related 4 — — — 4 Contract Terminations 1 1 — (1 ) (h) 1 Asset Impairment — 5 (c) — (5 ) (c) — $ 11 $ 12 $ (6 ) $ (6 ) $ 11 Liability as of December 31, 2014 2015 Activity Liability as of December 31, 2015 Costs Recognized Cash Payments Other Personnel-Related $ 6 $ 5 (d) $ (8 ) $ — $ 3 Facility-Related 4 — (2 ) — 2 Contract Terminations 1 — — (1 ) (i) — Asset Impairment — 1 (e) — (1 ) (e) — $ 11 $ 6 $ (10 ) $ (2 ) $ 5 (a) Represents severance costs incurred at the Company’s hotel group business resulting from a reduction of 105 employees. (b) Represents severance costs of $4 million and $2 million at the Company’s destination network and hotel group businesses, respectively, resulting from a reduction of 122 employees. (c) Represents the non-cash write-off of assets related to an information technology project at the Company’s destination network business. (d) Represents severance costs of $3 million , $1 million and $1 million at the Company’s hotel group, destination network and vacation ownership businesses, respectively, resulting from a reduction of 361 employees. (e) Represents the non-cash asset impairment charge associated with a facility at the Company’s destination network business. (f) Includes $1 million of a reversal of previously recorded expenses at the Company’s destination network business and $1 million of a non-cash settlement at the Company’s hotel group business. (g) Represents a non-cash adjustment to the liability at the Company’s vacation ownership business. (h) Represents a reversal of previously recorded expenses at the Company’s hotel group business. (i) Represents a reversal of a portion of previously recorded expenses at the Company’s destination network business. Loss on Sale During 2014, the Company sold its U.K.-based camping business at its destination network business resulting in a $20 million loss. As a result of this transaction, the Company received $1 million of cash, net, reduced its net assets by $11 million , wrote-off $6 million of foreign currency translation adjustments and recorded a $4 million indemnification liability. Such loss is recorded within loss on sale and asset impairments on the Consolidated Statement of Income. Impairments During 2015, the Company recorded a $7 million non-cash impairment charge at its hotel group business related to the write-down of terminated in-process technology projects resulting from the decision to outsource its reservation system to a third-party partner. Such charge is recorded within loss on sale and asset impairments on the Consolidated Statement of Income. During 2014, the Company recorded a $7 million non-cash impairment charge related to the write-down of an equity investment at its destination network business which was the result of a reduction in the fair value of the entity in which the Company has a minority ownership position. In addition, the Company recorded an $8 million non-cash impairment charge at its hotel group business related to the write-down of an investment in a joint venture, which was the result of the joint venture’s recurring losses and negative operating cash flows. Such amounts are recorded within loss on sale and asset impairments on the Consolidated Statement of Income. During 2013, the Company recorded $8 million of non-cash impairment charges at its hotel group business primarily related to a partial write-down of its Hawthorn trademark due to lower than anticipated growth in the brand. Such amount is recorded within loss on sale and asset impairments on the Consolidated Statement of Income. Other Charge During 2015, the Company recorded a $14 million charge relating to the anticipated termination of a management agreement at its hotel group business. |
Separation Adjustments And Tran
Separation Adjustments And Transactions With Former Parent And Subsidiaries | 12 Months Ended |
Dec. 31, 2015 | |
Related Party Transaction, Due from (to) Related Party [Abstract] | |
Separation Adjustments And Transactions With Former Parent And Subsidiaries | Separation Adjustments and Transactions with Former Parent and Subsidiaries Transfer of Cendant Corporate Liabilities and Issuance of Guarantees to Cendant and Affiliates Pursuant to the Separation and Distribution Agreement, upon the distribution of the Company’s common stock to Cendant shareholders, the Company entered into certain guarantee commitments with Cendant (pursuant to the assumption of certain liabilities and the obligation to indemnify Cendant, Realogy and Travelport for such liabilities) and guarantee commitments related to deferred compensation arrangements with each of Cendant and Realogy. These guarantee arrangements primarily relate to contingent litigation liabilities, contingent tax liabilities, and Cendant contingent and other corporate liabilities, of which the Company assumed and is responsible for 37.5% while Realogy is responsible for the remaining 62.5% . The remaining amount of liabilities which were assumed by the Company in connection with the Separation was $34 million and $38 million as of December 31, 2015 and 2014 , respectively. These amounts were comprised of Cendant corporate liabilities which were recorded on the books of Cendant as well as additional liabilities which were established for guarantees issued at the date of Separation, related to unresolved contingent matters and others that could arise during the guarantee period. Regarding the guarantees, if any of the companies responsible for all or a portion of such liabilities were to default in its payment of costs or expenses related to any such liability, the Company would be responsible for a portion of the defaulting party or parties’ obligation(s). The Company also provided a default guarantee related to deferred compensation arrangements related to current and former senior officers and directors of Cendant, Realogy and Travelport. These arrangements were valued upon the Separation in accordance with the guidance for guarantees and recorded as liabilities on the Consolidated Balance Sheets. To the extent such recorded liabilities are not adequate to cover the ultimate payment amounts, such excess will be reflected as an expense to the results of operations in future periods. As a result of the sale of Realogy on April 10, 2007, Realogy was required to post a letter of credit in an amount acceptable to the Company and Avis Budget Group (formerly known as Cendant) to satisfy its obligations for the Cendant legacy contingent liabilities. As of December 31, 2015 , the letter of credit was $53 million . As of December 31, 2015 , the $34 million of Separation related liabilities is comprised of $30 million for tax liabilities, $1 million for liabilities of previously sold businesses of Cendant, $1 million for other contingent and corporate liabilities and $2 million of liabilities where the calculated guarantee amount exceeded the contingent liability assumed at the Separation Date. In connection with these liabilities, as of December 31, 2015 , $19 million is recorded in accrued expenses and other current liabilities and $15 million is recorded in other non-current liabilities on the Consolidated Balance Sheet. The Company will indemnify Cendant for these contingent liabilities and therefore any payments made to the third-party would be through the former Parent. The actual timing of payments relating to these liabilities is dependent on a variety of factors beyond the Company’s control. In addition, the Company had $1 million of receivables due from former Parent and subsidiaries primarily relating to income taxes, as of December 31, 2015 and 2014 , which is recorded in other current assets on the Consolidated Balance Sheets. Prior to the Separation, the Company and Realogy were included in the consolidated federal and state income tax returns of Cendant through the Separation date for the 2006 period then ended. The Company is generally liable for 37.5% of certain contingent tax liabilities. In addition, each of the Company, Cendant and Realogy may be responsible for 100% of certain of Cendant’s tax liabilities that will provide the responsible party with a future, offsetting tax benefit. |
Selected Quarterly Financial Da
Selected Quarterly Financial Data - (unaudited) | 12 Months Ended |
Dec. 31, 2015 | |
Selected Quarterly Financial Information [Abstract] | |
Quarterly Financial Information | Selected Quarterly Financial Data - (unaudited) Provided below is selected unaudited quarterly financial data for 2015 and 2014 . 2015 First Second Third Fourth Net revenues Hotel Group $ 292 $ 334 $ 357 $ 314 Destination Network 369 383 476 310 Vacation Ownership 617 699 750 706 Corporate and Other (*) (16 ) (18 ) (19 ) (19 ) $ 1,262 $ 1,398 $ 1,564 $ 1,311 EBITDA Hotel Group $ 76 $ 96 $ 83 $ 94 Destination Network 105 84 134 44 Vacation Ownership 130 182 200 174 Corporate and Other (*) (34 ) (30 ) (35 ) (37 ) 277 332 382 275 Less: Depreciation and amortization 56 58 59 61 Interest expense 26 30 33 37 Interest income (3 ) (2 ) (2 ) (2 ) Income before income taxes 198 246 292 179 Provision for income taxes 76 87 102 39 Net income $ 122 $ 159 $ 190 $ 140 Per share information Basic $ 1.01 $ 1.34 $ 1.62 $ 1.22 Diluted 1.00 1.33 1.61 1.21 Weighted average diluted shares outstanding 122 120 118 116 Note: The sum of the quarters may not agree to the Consolidated Statement of Income for the year ended December 31, 2015 due to rounding. (*) Includes the elimination of transactions between segments. 2014 First Second Third Fourth Net revenues Hotel Group $ 237 $ 283 $ 315 $ 267 Destination Network 379 402 512 311 Vacation Ownership 593 673 704 668 Corporate and Other (*) (16 ) (15 ) (17 ) (15 ) $ 1,193 $ 1,343 $ 1,514 $ 1,231 EBITDA Hotel Group $ 64 $ 87 $ 100 $ 77 Destination Network 85 89 159 2 Vacation Ownership 115 185 188 172 Corporate and Other (*) (34 ) (35 ) (36 ) (36 ) 230 326 411 215 Less: Depreciation and amortization 56 59 60 58 Interest expense 27 29 28 29 Interest income (2 ) (3 ) (2 ) (4 ) Income before income taxes 149 241 325 132 Provision for income taxes 59 88 119 51 Net income $ 90 $ 153 $ 206 $ 81 Per share information Basic $ 0.70 $ 1.21 $ 1.65 $ 0.66 Diluted 0.69 1.20 1.64 0.65 Weighted average diluted shares outstanding 130 128 126 124 Note: The sum of the quarters may not agree to the Consolidated Statement of Income for the year ended December 31, 2014 due to rounding. (*) Includes the elimination of transactions between segments. |
Subsequent Event
Subsequent Event | 12 Months Ended |
Dec. 31, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Event | Subsequent Events Repurchase Authorization On February 8, 2016, the Company's Board of Directors increased the authorization for the Company's stock repurchase program by $1 billion . Dividend Increase Authorization On February 8, 2016, the Company's Board of Directors authorized an increase of the quarterly dividends to $0.50 per share. |
Summary of Significant Accoun33
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Principles Of Consolidation | PRINCIPLES OF CONSOLIDATION When evaluating an entity for consolidation, the Company first determines whether an entity is within the scope of the guidance for consolidation of variable interest entities (“VIE”) and if it is deemed to be a VIE. If the entity is considered to be a VIE, the Company determines whether it would be considered the entity’s primary beneficiary. The Company consolidates those VIEs for which it has determined that it is the primary beneficiary. The Company will consolidate an entity not deemed a VIE upon a determination that it has a controlling financial interest. For entities where the Company does not have a controlling financial interest, the investments in such entities are classified as available-for-sale securities or accounted for using the equity or cost method, as appropriate. |
Revenue Recognition | REVENUE RECOGNITION Hotel Group The principal source of revenues from franchising hotels is ongoing franchise fees, which are primarily comprised of royalty, marketing and reservation fees. Royalty, marketing and reservation fees are typically a percentage of gross room revenues of each franchised hotel and are recognized as revenue upon becoming due from the franchisee. An estimate of uncollectible ongoing royalty fees is charged to bad debt expense and included in operating expenses on the Consolidated Statements of Income. Hotel Group revenues also include initial franchise fees, which are recognized as revenues when all material services or conditions have been substantially performed, which is either when a franchised hotel opens for business or when a franchise agreement is terminated after it has been determined that the franchised hotel will not open. The Company’s franchise agreements also require the payment of marketing and reservation fees, which are intended to reimburse the Company for expenses associated with operating an international, centralized, brand-specific reservations system, e-commerce channels such as the Company’s brand.com websites, as well as access to third-party distribution channels, such as online travel agents, advertising and marketing programs, global sales efforts, operations support, training and other related services. Marketing and reservation fees are recognized as revenue upon becoming due from the franchisee. An estimate of uncollectible ongoing marketing and reservation fees is charged to bad debt expense and included in marketing and reservation expenses in the Consolidated Statements of Income. The Company is contractually obligated to expend the marketing and reservation fees it collects from franchisees in accordance with the franchise agreements; as such, revenues earned in excess of costs incurred are accrued as a liability for future marketing or reservation costs. Costs incurred in excess of revenues earned are expensed as incurred. In accordance with its franchise agreements, the Company includes an allocation of costs required to carry out marketing and reservation activities within marketing and reservation expenses. The Company also earns revenues from its Wyndham Rewards loyalty program when a member stays at a participating hotel. These revenues are derived from a fee the Company charges as a percentage of room revenues generated from such stay. This fee is recognized as revenue upon becoming due from the franchisee. Since the Company is obligated to expend the fees it collects from franchisees, revenues earned in excess of costs incurred are accrued as a liability for future costs to support the program. The Company also provides management services for hotels under management contracts, which offer all the benefits of a global brand and a full range of management, marketing and reservation services. In addition to the standard franchise services described above, the Company’s hotel management business provides hotel owners with professional oversight and comprehensive operations support services such as hiring, training and supervising the managers and employees that operate the hotels as well as annual budget preparation, financial analysis and extensive food and beverage services. The Company’s standard management agreement typically has a term of up to 25 years. The Company’s management fees are comprised of base fees, which are typically a specified percentage of gross revenues from hotel operations, and incentive fees, which are typically a specified percentage of a hotel’s gross operating profit. Management fee revenues are recognized when earned in accordance with the terms of the contract and recorded as a component of franchise fee revenues on the Consolidated Statements of Income. Management fee revenues were $23 million , $11 million and $8 million during 2015 , 2014 and 2013 , respectively. The Company also recognizes as revenue reimbursable payroll costs for operational employees at certain of the Company’s managed hotels. Although these costs are funded by hotel owners, accounting guidance requires the Company to report these fees on a gross basis as both revenues and expenses. The revenues are recorded as a component of service and membership fees while the offsetting expenses are reflected as a component of operating expenses on the Consolidated Statements of Income. As such, there is no effect on the Company’s operating income. Revenues related to these payroll costs were $273 million , $148 million and $129 million in 2015 , 2014 and 2013 , respectively. The Company also earns revenues from hotel ownership. The Company’s ownership portfolio is limited to two hotels in locations where it has developed timeshare units. Revenues earned from the Company’s owned hotels consist primarily of (i) gross room night rentals, (ii) food and beverage services and (iii) on-site spa, casino, golf and shop revenues. These revenues are recognized upon the completion of services to its guests. Destination Network As a provider of vacation exchange services, the Company enters into affiliation agreements with developers of vacation ownership properties to allow owners of intervals of VOIs to trade their intervals for intervals at other properties affiliated with the Company’s RCI brand and, for some members, for other leisure-related services and products. Additionally, as a marketer of vacation rental properties, generally the Company enters into contracts for exclusive periods of time with property owners to market the rental of such properties to rental customers. The Company’s RCI brand derives a majority of its revenues from annual membership dues and exchange fees from RCI members trading their intervals. Revenues from annual membership dues represent the annual fees from RCI members who, for additional fees, have the right to exchange their intervals for intervals at other properties affiliated with the Company’s exchange network and, for certain members, for other leisure-related services and products. The Company recognizes revenues from annual membership dues on a straight-line basis over the membership period during which delivery of publications, if applicable, and other services are provided to the members. Exchange fees are generated when members exchange their intervals for intervals at other properties affiliated with the Company’s exchange network or for other leisure-related services and products. Exchange fees are recognized as revenues, net of expected cancellations, when the exchange requests have been confirmed to the member. The Company’s vacation rental brands primarily derive their revenues from fees, which generally average between 20% and 45% of the gross booking fees. For properties which the Company owns, manages or operates under long-term capital and operating leases (which represent less than 10% of the Company’s portfolio), the Company receives 100% of the revenues. The majority of the time, the Company acts on behalf of the owners of the rental properties to generate the Company’s fees. The Company provides reservation services to the independent property owners and receives the agreed-upon fee for the services provided. The Company remits the gross rental fee received from the renter to the independent property owner, net of the Company’s agreed-upon fee. Revenues from such fees that are recognized in the period that the rental reservation is made, are recorded net of expected cancellations. Cancellations for 2015 , 2014 and 2013 each totaled less than 4% of rental transactions booked. Upon confirmation of the rental reservation, the rental customer and property owner generally have a direct relationship for additional services to be performed. The Company also earns rental fees in connection with properties which it owns, manages or operates and such fees are recognized ratably over the rental customer’s stay, as this is the point at which the service is rendered. The Company’s revenues are earned when evidence of an arrangement exists, delivery has occurred or the services have been rendered, the seller’s price to the buyer is fixed or determinable, and collectability is reasonably assured. Vacation Ownership The Company develops, markets and sells VOIs to individual consumers, provides property management services at resorts and provides consumer financing in connection with the sale of VOIs. The Company’s vacation ownership business derives the majority of its revenues from sales of VOIs and other revenues from consumer financing and property management. The Company’s sales of VOIs are either cash sales or developer-financed sales. In order for the Company to recognize revenues from VOI sales under the full accrual method of accounting described in the guidance for sales of real estate for fully constructed inventory, a binding sales contract must have been executed, the statutory rescission period must have expired (after which time the purchasers are not entitled to a refund except for non-delivery by the Company), receivables must have been deemed collectible and the remainder of the Company’s obligations must have been substantially completed. In addition, before the Company recognizes any revenues from VOI sales, the purchaser of the VOI must have met the initial investment criteria and, as applicable, the continuing investment criteria, by executing a legally binding financing contract. A purchaser has met the initial investment criteria when a minimum down payment of 10% is received by the Company. In accordance with the guidance for accounting for real estate time-sharing transactions, the Company must also take into consideration the fair value of certain incentives provided to the purchaser when assessing the adequacy of the purchaser’s initial investment. In those cases where financing is provided to the purchaser by the Company, the purchaser is obligated to remit monthly payments under financing contracts that represent the purchaser’s continuing investment. If all of the criteria for a VOI sale to qualify under the full accrual method of accounting have been met, as discussed above, except that construction of the VOI purchased is not complete, the Company recognizes revenues using the percentage-of-completion (“POC”) method of accounting provided that the preliminary construction phase is complete and that a minimum sales level has been met (to assure that the property will not revert to a rental property). The preliminary stage of development is deemed to be complete when the engineering and design work is complete, the construction contracts have been executed, the site has been cleared, prepared and excavated, and the building foundation is complete. The completion percentage is determined by the proportion of real estate inventory costs incurred to total estimated costs. These estimated costs are based upon historical experience and the related contractual terms. The remaining revenues and related costs of sales, including commissions and direct expenses, are deferred and recognized as the remaining costs are incurred. During 2015 , gross VOI sales were increased by $13 million representing the net change in revenues that was deferred under the POC method of accounting. As of December 31, 2015 , no revenues were deferred under the POC method of accounting. Deferred revenues under the POC method of accounting were $12 million during 2014 . During 2013 , an immaterial amount of revenues were deferred under the POC method of accounting. The Company also offers consumer financing as an option to customers purchasing VOIs, which are typically collateralized by the underlying VOI. The contractual terms of Company-provided financing agreements require that the contractual level of annual principal payments be sufficient to amortize the loan over a customary period for the VOI being financed, which is generally 10 years and payments under the financing contracts begin within 45 days of the sale and receipt of the minimum down payment of 10% . An estimate of uncollectible amounts is recorded at the time of the sale with a charge to the provision for loan losses, which is classified as a reduction of VOI sales on the Consolidated Statements of Income. The interest income earned from the financing arrangements is earned on the principal balance outstanding over the life of the arrangement and is recorded within consumer financing on the Consolidated Statements of Income. The Company also provides day-to-day-management services, including oversight of housekeeping services, maintenance and certain accounting and administrative services for property owners’ associations and clubs. In some cases, the Company’s employees serve as officers and/or directors of these associations and clubs in accordance with their by-laws and associated regulations. The Company receives fees for such property management services which are generally based upon total costs to operate such resorts. Fees for property management services typically approximate 10% of budgeted operating expenses. Property management fee revenues are recognized when earned in accordance with the terms of the contract and are recorded as a component of service and membership fees on the Consolidated Statements of Income. Property management revenues, which are comprised of management fee revenue and reimbursable revenue, were $615 million , $581 million and $567 million during 2015 , 2014 and 2013 , respectively. Management fee revenues were $275 million , $288 million and $290 million during 2015 , 2014 and 2013 , respectively. Reimbursable revenues, which are based upon certain reimbursable costs with no added margin, were $340 million , $293 million and $277 million during 2015 , 2014 and 2013 , respectively. These reimbursable costs principally relate to the payroll costs for management of the associations, club and resort properties where the Company is the employer and are reflected as a component of operating expenses on the Consolidated Statements of Income. One of the associations that the Company manages paid Wyndham Destination Network $24 million for exchange services during 2015 and $19 million during 2014 and 2013 . Other Items The Company records marketing and reservation revenues, Wyndham Rewards revenues, RCI Elite Rewards revenues and hotel/property management services revenues for its Hotel Group, Destination Network and Vacation Ownership segments, in accordance with the guidance for reporting revenues gross as a principal versus net as an agent, which requires that these revenues be recorded on a gross basis. Deferred Income Deferred income, as of December 31, consisted of: 2015 2014 Membership and exchange fees $ 260 $ 275 VOI trial and incentive fees 153 160 Vacation rental fees 110 104 Initial franchise fees 53 49 Other fees 105 75 Total deferred income 681 663 Less: Current deferred income 483 464 Non-current deferred income $ 198 $ 199 Deferred membership and exchange fees consist primarily of payments made in advance for annual memberships that are recognized over the term of the membership period, which is typically one to three years. Deferred VOI trial fees are payments received in advance for a trial VOI, which allows customers to utilize a VOI typically within one year of purchase. Deferred incentive fees represent payments received in advance for additional travel related services and products at the time of a VOI sale. Revenue is recognized when a customer utilizes the additional services and products, which is typically within two years of a VOI sale. Deferred vacation rental fees represent payments received in advance of a rental customer’s stay that are recognized as revenue when the rental stay occurs, which is typically within six months of the confirmation date. Deferred initial franchise fees are recognized when all material services or conditions have been performed which is typically within two years . |
Income Taxes | INCOME TAXES The Company recognizes deferred tax assets and liabilities using the asset and liability method, under which deferred tax assets and liabilities are calculated based upon the temporary differences between the financial statement and income tax bases of assets and liabilities using currently enacted tax rates. These differences are based upon estimated differences between the book and tax basis of the assets and liabilities for the Company as of December 31, 2015 and 2014 . The Company’s deferred tax assets are recorded net of a valuation allowance when, based on the weight of available evidence, it is more likely than not that some portion or all of the recorded deferred tax assets will not be realized in future periods. Decreases to the valuation allowance are recorded as reductions to the Company’s provision for income taxes and increases to the valuation allowance result in additional provision for income taxes. The realization of the Company’s deferred tax assets, net of the valuation allowance, is primarily dependent on estimated future taxable income. A change in the Company’s estimate of future taxable income may require an addition to or reduction from the valuation allowance. For tax positions the Company has taken or expects to take in a tax return, the Company applies a more likely than not threshold, under which the Company must conclude a tax position is more likely than not to be sustained, assuming that the position will be examined by the appropriate taxing authority that has full knowledge of all relevant information, in order to recognize or continue to recognize the benefit. In determining the Company’s provision for income taxes, the Company uses judgment, reflecting its estimates and assumptions, in applying the more likely than not threshold. |
Cash And Cash Equivalents | CASH AND CASH EQUIVALENTS The Company considers highly-liquid investments purchased with an original maturity of three months or less to be cash equivalents. |
Restricted Cash | RESTRICTED CASH The largest portion of the Company’s restricted cash relates to securitizations. The remaining portion is comprised of cash held in escrow accounts primarily related to the Company’s destination network and vacation ownership businesses. Securitizations: In accordance with the contractual requirements of the Company’s various vacation ownership contract receivable securitizations, a dedicated lockbox account, subject to a blocked control agreement, is established for each securitization. At each month end, the total cash in the collection account from the previous month is analyzed and a monthly servicer report is prepared by the Company, which details how much cash should be remitted to the note holders for principal and interest payments, and any cash remaining is transferred by the trustee back to the Company. Additionally, as required by various securitizations, the Company holds an agreed-upon percentage of the aggregate outstanding principal balances of the VOI contract receivables collateralizing the asset-backed notes in a segregated trust (or reserve) account as credit enhancement. Each time a securitization closes and the Company receives cash from the note holders, a portion of the cash is deposited in the reserve account. Such amounts were $92 million and $96 million , of which $73 million and $75 million is recorded within other current assets and $19 million and $21 million is recorded within other non-current assets as of December 31, 2015 and 2014 , respectively, on the Consolidated Balance Sheets. Escrow Deposits: Laws in most U.S. states require the escrow of down payments on VOI sales, with the typical requirement mandating that the funds be held in escrow until the rescission period expires. As sales transactions are consummated, down payments are collected and are subsequently placed in escrow until the rescission period has expired. Depending on the state, the rescission period can be as short as 3 calendar days or as long as 15 calendar days. In certain states, the escrow laws require that 100% of VOI purchaser funds (excluding interest payments, if any), be held in escrow until the deeding process is complete. Where possible, the Company utilizes surety bonds in lieu of escrow deposits. Escrow deposit amounts were $59 million and $51 million as of December 31, 2015 and 2014 , respectively, which is recorded within other current assets on the Consolidated Balance Sheets. |
Receivable Valuation | RECEIVABLE VALUATION Trade receivables The Company provides for estimated bad debts based on its assessment of the ultimate realizability of receivables, considering historical collection experience, the economic environment and specific customer information. When the Company determines that an account is not collectible, the account is written-off to the allowance for doubtful accounts. The following table illustrates the Company’s allowance for doubtful accounts activity for the year ended December 31: 2015 2014 2013 Beginning balance $ 169 $ 209 $ 213 Bad debt expense 51 48 57 Write-offs (71 ) (86 ) (64 ) Translation and other adjustments 1 (2 ) 3 Ending balance $ 150 $ 169 $ 209 Vacation ownership contract receivables In the Company’s Vacation Ownership segment, the Company provides for estimated vacation ownership contract receivable defaults at the time of VOI sales by recording a provision for loan losses as a reduction of VOI sales on the Consolidated Statements of Income. The Company assesses the adequacy of the allowance for loan losses based on the historical performance of similar vacation ownership contract receivables. The Company uses a technique referred to as static pool analysis, which tracks defaults for each year’s sales over the entire life of those contract receivables. The Company considers current defaults, past due aging, historical write-offs of contracts and consumer credit scores (FICO scores) in the assessment of borrower’s credit strength and expected loan performance. The Company also considers whether the historical economic conditions are comparable to current economic conditions. If current or expected future conditions differ from the conditions in effect when the historical experience was generated, the Company adjusts the allowance for loan losses to reflect the expected effects of the current environment on the collectability of the Company’s vacation ownership contract receivables. |
Loyalty Programs | LOYALTY PROGRAMS The Company operates a number of loyalty programs including Wyndham Rewards, RCI Elite Rewards and other programs. Wyndham Rewards members primarily accumulate points by staying in hotels franchised under one of the Company’s hotel group brands. Wyndham Rewards and RCI Elite Rewards members accumulate points by purchasing everyday services and products utilizing their co-branded credit cards. Members may redeem their points for hotel stays, airline tickets, rental cars, resort vacations, electronics, sporting goods, movie and theme park tickets, gift certificates, vacation ownership maintenance fees and annual membership dues and exchange fees for transactions. The points cannot be redeemed for cash. The Company earns revenue from these programs (i) when a member stays at a participating hotel, from a fee charged by the Company to the franchisee, which is based upon a percentage of room revenues generated from such stay or (ii) based upon a percentage of the members’ spending on the co-branded credit cards and such revenues are paid to the Company by a third-party issuing bank. The Company also incurs costs to support these programs, which primarily relate to marketing expenses to promote the programs, costs to administer the programs and costs of members’ redemptions. As members earn points through the Company’s loyalty programs, the Company records a liability for the estimated future redemption costs, which is calculated based on (i) an estimated cost per point and (ii) an estimated redemption rate of the overall points earned, which is determined through historical experience, current trends and the use of an actuarial analysis. Revenues relating to the Company’s loyalty programs are recorded in other revenues in the Consolidated Statements of Income and amounted to $152 million , $142 million and $113 million , while total expenses amounted to $119 million , $112 million and $93 million in 2015 , 2014 and 2013 , respectively. The liability for estimated future redemption costs as of December 31, 2015 and 2014 amounted to $67 million and $62 million , respectively, and is included in accrued expenses and other current liabilities and other non-current liabilities in the Consolidated Balance Sheets. |
Inventory | INVENTORY Inventory primarily consists of real estate and development costs of completed VOIs, VOIs under construction, land held for future VOI development, vacation ownership properties, vacation credits and inventory sold subject to conditional repurchase. The Company applies the relative sales value method for relieving VOI inventory and recording the related cost of sales. Under the relative sales value method, cost of sales is calculated as a percentage of net sales using a cost-of-sales percentage ratio of total estimated development cost to total estimated VOI revenue, including estimated future revenue and incorporating factors such as changes in prices and the recovery of VOIs generally as a result of contract receivable defaults. The effect of such changes in estimates under the relative sales value method is accounted for on a retrospective basis through corresponding current-period adjustments to inventory and cost of sales. Inventory is stated at the lower of cost, including capitalized interest, property taxes and certain other carrying costs incurred during the construction process, or net realizable value. Capitalized interest was $3 million , $2 million and less than $1 million in 2015 , 2014 and 2013 , respectively. |
Advertising Expense | ADVERTISING EXPENSE Advertising costs are generally expensed in the period incurred. Advertising expenses, which are primarily recorded within marketing and reservation expenses on the Consolidated Statements of Income, were $172 million , $170 million and $146 million in 2015 , 2014 and 2013 , respectively. |
Use Of Estimates and Assumptions | USE OF ESTIMATES AND ASSUMPTIONS The preparation of the Consolidated Financial Statements requires the Company to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses and the disclosure of contingent assets and liabilities in the Consolidated Financial Statements and accompanying notes. Although these estimates and assumptions are based on the Company’s knowledge of current events and actions the Company may undertake in the future, actual results may ultimately differ from estimates and assumptions. |
Derivatives Instruments | DERIVATIVE INSTRUMENTS The Company uses derivative instruments as part of its overall strategy to manage its exposure to market risks primarily associated with fluctuations in foreign currency exchange rates and interest rates. As a matter of policy, the Company does not use derivatives for trading or speculative purposes. All derivatives are recorded at fair value either as assets or liabilities. Changes in fair value of derivatives not designated as hedging instruments and of derivatives designated as fair value hedging instruments are recognized currently in operating income and net interest expense, based upon the nature of the hedged item, in the Consolidated Statements of Income. The effective portion of changes in fair value of derivatives designated as cash flow hedging instruments is recorded as a component of other comprehensive income. The ineffective portion is reported immediately in earnings as a component of operating expense, based upon the nature of the hedged item. Amounts included in other comprehensive income are reclassified into earnings in the same period during which the hedged item affects earnings. |
Property And Equipment | PROPERTY AND EQUIPMENT Property and equipment (including leasehold improvements) are recorded at cost, and presented net of accumulated depreciation and amortization. Depreciation, recorded as a component of depreciation and amortization on the Consolidated Statements of Income, is computed utilizing the straight-line method over the lesser of the lease terms or estimated useful lives of the related assets. Amortization of leasehold improvements, also recorded as a component of depreciation and amortization, is computed utilizing the straight-line method over the lesser of the estimated benefit period of the related assets or the lease terms. Useful lives are generally 30 years for buildings, up to 20 years for leasehold improvements, from 15 to 30 years for vacation rental properties and from 3 to 7 years for furniture, fixtures and equipment. The Company capitalizes the costs of software developed for internal use in accordance with the guidance for accounting for costs of computer software developed or obtained fo r internal use. Capitalization of software developed for internal use commences during the development phase of the pro ject. The Company amortizes software developed or obtained for internal use on a straight-line basis over its estimated useful life which is generally 3 to 5 years, with the exception of certain enterprise resource planning and reservation and inventory management software which is 7 years . Such amortization commences when the software is substantially ready for use. The net carrying value of software developed or obtained for internal use was $223 million and $190 million as of December 31, 2015 and 2014 , respectively. Capitalized interest was $4 million in both 2015 and 2014 and $5 million in 2013 . |
Impairment Of Long-Lived Assets | IMPAIRMENT OF LONG-LIVED ASSETS T he Company has goodwill and other indefinite-lived intangible assets recorded in connection with business combinations. The Company annually (during the fourth quarter of each year subsequent to completing the Company’s annual forecasting process), or more frequently if circumstances indicate that the value of goodwill may be impaired, reviews the reporting units’ carrying values as required by the guidance for goodwill and other indefinite-lived intangible assets. In accordance with the guidance, the Company has determined that its reporting units are the same as its reportable segments. Under current accounting guidance, goodwill and other intangible assets with indefinite lives are not subject to amortization. However, goodwill and other intangibles with indefinite lives are subject to fair value-based rules for measuring impairment, and resulting write-downs, if any, are reflected in operating expense. The Company has goodwill recorded at its hotel group, destination network and vacation ownership reporting units. The Company completed its annual goodwill impairment test by performing a quantitative analysis for each of its reporting units as of October 1, 2015 and determined that no impairment exists. The Company also evaluates the recoverability of its other long-lived assets, including property and equipment and amortizable intangible assets, if circumstances indicate impairment may have occurred, pursuant to guidance for impairment or disposal of long-lived assets. This analysis is performed by comparing the respective carrying values of the assets to the current and expected future cash flows, on an undiscounted basis, to be generated from such assets. Property and equipment is evaluated separately within each segment. If such analysis indicates that the carrying value of these assets is not recoverable, the carrying value of such assets is reduced to fair value. |
Accounting For Restructuring Activities | ACCOUNTING FOR RESTRUCTURING ACTIVITIES The Company’s restructuring actions require it to make significant estimates in several areas including (i) expenses for severance and related benefit costs, (ii) the ability to generate sublease income, as well as its ability to terminate lease obligations and (iii) contract terminations. The amount that the Company has accrued as of December 31, 2015 represents its best estimate of the obligations incurred in connection with these actions, but could be subject to change due to various factors including market conditions and the outcome of negotiations with third parties. |
Accumulated Other Comprehensive Income | ACCUMULATED OTHER COMPREHENSIVE INCOME Accumulated other comprehensive income (“AOCI”) consists of accumulated foreign currency translation adjustments, accumulated unrealized gains and losses on derivative instruments designated as cash flow hedges and pension related costs. Foreign currency translation adjustments exclude income taxes related to indefinite investments in foreign subsidiaries. Assets and liabilities of foreign subsidiaries having non-U.S.-dollar functional currencies are translated at exchange rates at the Consolidated Balance Sheet dates. Revenues and expenses are translated at average exchange rates during the periods presented. The gains or losses resulting from translating foreign currency financial statements into U.S. dollars, net of hedging gains or losses and taxes, are included in AOCI on the Consolidated Balance Sheets. Gains or losses resulting from foreign currency transactions are included in the Consolidated Statements of Income. |
Stock-Based Compensation | STOCK-BASED COMPENSATION In accordance with the guidance for stock-based compensation, the Company measures all employee stock-based compensation awards using a fair value method and records the related expense in its Consolidated Statements of Income. |
Equity Earnings And Other Income | EQUITY EARNINGS AND OTHER INCOME The Company applies the equity method of accounting when it has the ability to exercise significant influence over operating and financial policies of an investee. The Company recorded $2 million of net earnings from such investments during both 2015 and 2014 and $3 million during 2013 in other income, net on the Consolidated Statements of Income. During 2015 , the Company recorded $15 million of income primarily related to the settlement of a business disruption claim related to the Gulf of Mexico oil spill in 2010, the sale of non-strategic assets and other miscellaneous royalties at its vacation ownership business. During 2014 , the Company recorded $5 million of income primarily related to the sale of non-strategic assets and other miscellaneous royalties at its vacation ownership business. In addition, during 2013 , the Company recorded $3 million of income primarily related to other miscellaneous royalties at its vacation ownership business. |
Recently Issued Accounting Pronouncements | RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity . In April 2014, the Financial Accounting Standards Board (“FASB”) issued guidance on reporting discontinued operations and disclosures of disposals of components of an entity. This guidance changes the criteria for determining which disposals can be presented as discontinued operations and enhances the related disclosure requirements. This guidance is effective for fiscal years beginning after December 15, 2014 and for interim periods within those fiscal years, with early adoption permitted. The Company adopted the guidance on January 1, 2015, as required. There was no material impact on the Consolidated Financial Statements resulting from the adoption. Revenue from Contracts with Customers . In May 2014, the FASB issued guidance on revenue from contracts with customers. The guidance outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers. The guidance was effective for fiscal years beginning after December 15, 2016 and for interim periods within those fiscal years. In re-deliberations, the FASB approved a one-year deferral of the effective date of this guidance, such that it will be effective on January 1, 2018. The Company is currently evaluating the impact of the adoption of this guidance on the Consolidated Financial Statements. Disclosure of Uncertainties About an Entity’s Ability to Continue as a Going Concern . In August 2014, the FASB issued guidance on disclosure of uncertainties about an entity’s ability to continue as a going concern. This guidance addresses management’s responsibility in evaluating whether there is substantial doubt about a company’s ability to continue as a going concern and to provide related footnote disclosures. Management’s evaluation should be based on relevant conditions and events that are known and reasonably knowable at the date that the financial statements are issued. This guidance is effective for fiscal years ending after December 15, 2016 and for interim periods within those fiscal years, with early adoption permitted. The Company early adopted the guidance on January 1, 2015. There was no impact on the Consolidated Financial Statements resulting from the adoption. Consolidation. In February 2015, the FASB issued guidance related to management’s evaluation of consolidation for certain legal entities. This guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2015. The Company believes the adoption of this guidance will not have a material impact on the Consolidated Financial Statements. Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement . In April 2015, the FASB issued guidance on determining whether a cloud computing arrangement contains a software license that should be accounted for as internal-use software. If a cloud computing arrangement does not contain a software license, it should be accounted for as a service contract. This guidance is effective for fiscal years beginning after December 15, 2015 and for interim periods within those fiscal years, with early adoption permitted. The Company believes the adoption of this guidance will not have a material impact on the Consolidated Financial Statements. Simplifying the Measurement of Inventory. In July 2015, the FASB issued guidance related to simplifying the measurement of inventory. This guidance requires an entity to measure inventory at the lower of cost or net realizable value, which consists of the estimated selling prices in the ordinary course of business, less reasonably predictable cost of completion, disposal, and transportation. This guidance is effective prospectively for fiscal years beginning after December 15, 2016 and for interim periods within those fiscal years, with early adoption permitted. The Company is currently evaluating the impact of the adoption of this guidance on the Consolidated Financial Statements. Simplifying the Accounting for Measurement-Period Adjustments from Business Combination. In September 2015, the FASB issued guidance simplifying the accounting for measurement-period adjustments related to a business combination. The guidance requires that an acquirer recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined. The guidance is effective for fiscal years beginning after December 15, 2015 and for interim periods within those fiscal years, with early adoption permitted. The Company believes the adoption of this guidance will not have a material impact on the Consolidated Financial Statements. Simplifying the Presentation of Debt Issuance Costs. During 2015, the FASB issued guidance on the presentation of debt issuance costs. The guidance requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of the debt liability, consistent with debt discounts. This guidance requires retrospective application and is effective for fiscal years beginning after December 15, 2015 and for interim periods within those fiscal years, with early adoption permitted. As of December 31, 2015 and 2014, the Company had deferred debt costs of approximately $27 million and $29 million , respectively, which are included within other non-current assets on the Consolidated Balance Sheets. Upon adoption of this guidance, the deferred debt costs will be presented as a direct deduction from the carrying amounts of the securitized vacation ownership debt and long-term debt balances on the Consolidated Balance Sheets. Income Taxes. In November 2015, the FASB issued guidance on the balance sheet classification of deferred taxes. The guidance requires that deferred tax assets and liabilities to be classified as noncurrent in the Consolidated Balance Sheet. The guidance is effective for fiscal years beginning after December 15, 2016 and for interim periods within those fiscal years, with early adoption permitted. This guidance may be applied either prospectively to all deferred tax liabilities and assets or retrospectively to all periods presented. The Company is currently evaluating the impact of the adoption of this guidance on the Consolidated Financial Statements . |
Summary of Significant Accoun34
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Schedule of Deferred Income | Deferred income, as of December 31, consisted of: 2015 2014 Membership and exchange fees $ 260 $ 275 VOI trial and incentive fees 153 160 Vacation rental fees 110 104 Initial franchise fees 53 49 Other fees 105 75 Total deferred income 681 663 Less: Current deferred income 483 464 Non-current deferred income $ 198 $ 199 |
Summary of Activity of Allowance For Doubtful Accounts | The following table illustrates the Company’s allowance for doubtful accounts activity for the year ended December 31: 2015 2014 2013 Beginning balance $ 169 $ 209 $ 213 Bad debt expense 51 48 57 Write-offs (71 ) (86 ) (64 ) Translation and other adjustments 1 (2 ) 3 Ending balance $ 150 $ 169 $ 209 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Earnings Per Share Reconciliation [Abstract] | |
Computation Of Basic And Diluted EPS | The following table sets forth the computation of basic and diluted EPS (in millions, except per share data): Year Ended December 31, 2015 2014 2013 Net income attributable to Wyndham shareholders $ 612 $ 529 $ 432 Basic weighted average shares outstanding 118 125 133 Stock options, SSARs (a) , RSUs (b) and PSUs (c) 1 2 2 Weighted average diluted shares outstanding 119 127 135 Earnings per share: Basic $ 5.18 $ 4.22 $ 3.25 Diluted 5.14 4.18 3.21 Dividends: Cash dividends per share (d) $ 1.68 $ 1.40 $ 1.16 Aggregate dividends paid to shareholders 202 179 156 (a) Excludes stock-settled appreciation rights (“SSARs”) that would have been anti-dilutive to EPS. (b) Includes unvested dilutive restricted stock units (“RSUs”) which are subject to future forfeitures. (c) Excludes 0.6 million , 0.4 million and 0.5 million performance vested restricted stock units (“PSUs”) for the years ended 2015 , 2014 and 2013 , respectively, as the Company had not met the required performance metrics. (d) For each of the quarterly periods ended March 31, June 30, September 30 and December 31, 2015 , 2014 and 2013 , the Company paid cash dividends of $0.42 , $0.35 and $0.29 per share, respectively. |
Current Stock Repurchase Program | The following table summarizes stock repurchase activity under the current stock repurchase program (in millions, except per share data): Shares Cost Average Price Per Share As of December 31, 2014 71.3 $ 3,062 $ 42.94 For the year ended December 31, 2015 7.9 650 82.01 As of December 31, 2015 79.2 $ 3,712 46.85 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule Of Intangible Assets And Goodwill | Intangible assets consisted of: As of December 31, 2015 As of December 31, 2014 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Unamortized Intangible Assets: Goodwill $ 1,563 $ 1,551 Trademarks (a) $ 723 $ 713 Amortized Intangible Assets: Franchise agreements (b) $ 594 $ 386 $ 208 $ 594 $ 371 $ 223 Management agreements (c) 153 46 107 105 35 70 Trademarks (d) 8 5 3 7 3 4 Other (e) 148 66 82 167 63 104 $ 903 $ 503 $ 400 $ 873 $ 472 $ 401 (a) Comprised of various trade names (primarily including the Wyndham Hotels and Resorts, Ramada, Days Inn, RCI, Landal GreenParks, Baymont Inn & Suites, Microtel Inns & Suites, Hawthorn by Wyndham, TRYP by Wyndham, Dolce Hotels and Resorts and Hoseasons trade names) that the Company has acquired. These trade names are expected to generate future cash flows for an indefinite period of time. (b) Generally amortized over a period ranging from 20 to 40 years with a weighted average life of 35 years . (c) Generally amortized over a period ranging from 10 to 20 years with a weighted average life of 14 years . (d) Generally amortized over a period of 3 to 7 years with a weighted average life of 5 years . (e) Includes customer lists and business contracts, generally amortized over a period ranging from 7 to 20 years with a weighted average life of 15 years . |
Changes In Carrying Amount Of Goodwill By Segnent | The changes in the carrying amount of goodwill are as follows: Balance as of December 31, 2014 Goodwill Acquired During 2015 Foreign Exchange Balance as of December 31, 2015 Hotel Group $ 300 $ 29 $ — $ 329 Destination Network 1,224 19 (36 ) 1,207 Vacation Ownership 27 — — 27 Total Company $ 1,551 $ 48 $ (36 ) $ 1,563 |
Amortization Expense Related To Intangible Assets By Major Class | Amortization expense relating to amortizable intangible assets was as follows: 2015 2014 2013 Franchise agreements $ 15 $ 15 $ 15 Management agreements 10 8 8 Other 12 14 13 Total (*) $ 37 $ 37 $ 36 (*) Included as a component of depreciation and amortization on the Consolidated Statements of Income. |
Future Amortization Expenses Of Intangible Assets | Based on the Company’s amortizable intangible assets as of December 31, 2015 , the Company expects related amortization expense as follows: Amount 2016 $ 37 2017 36 2018 34 2019 33 2020 32 |
Income Tax (Tables)
Income Tax (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Tax Provision | The income tax provision consists of the following for the year ended December 31: 2015 2014 2013 Current Federal $ 182 $ 176 $ 114 State 31 40 23 Foreign 51 53 49 264 269 186 Deferred Federal 34 53 49 State 8 (1 ) 18 Foreign (2 ) (5 ) (3 ) 40 47 64 Provision for income taxes $ 304 $ 316 $ 250 |
Pre-Tax Income For Domestic And Foreign Operations | Pre-tax income for domestic and foreign operations consisted of the following for the year ended December 31: 2015 2014 2013 Domestic $ 745 $ 681 $ 509 Foreign 171 164 174 Pre-tax income $ 916 $ 845 $ 683 |
Current and Non-Current Deferred Income Tax Assets and Liabilities | Current and non-current deferred income tax assets and liabilities, as of December 31, are comprised of the following: 2015 2014 Current deferred income tax assets: Accrued liabilities and deferred income $ 107 $ 97 Provision for doubtful accounts and loan loss reserves for vacation ownership contract receivables 159 159 Foreign tax credit carryforward 4 7 Valuation allowance (*) (10 ) (17 ) Other 5 7 Current deferred income tax assets 265 253 Current deferred income tax liabilities: Installment sales of vacation ownership interests 98 98 Other 41 41 Current deferred income tax liabilities 139 139 Current net deferred income tax asset $ 126 $ 114 Non-current deferred income tax assets: Net operating loss carryforward $ 50 $ 46 Foreign tax credit carryforward 85 79 Tax basis differences in assets of foreign subsidiaries 35 43 Accrued liabilities and deferred income 78 78 Provision for doubtful accounts and loan loss reserves for vacation ownership contract receivables 141 141 Other comprehensive income 55 40 Other 14 14 Valuation allowance (*) (21 ) (40 ) Non-current deferred income tax assets 437 401 Non-current deferred income tax liabilities: Depreciation and amortization 734 703 Installment sales of vacation ownership interests 886 838 Other 69 62 Non-current deferred income tax liabilities 1,689 1,603 Non-current net deferred income tax liabilities $ 1,252 $ 1,202 (*) The valuation allowance of $31 million at December 31, 2015 relates to foreign tax credits, net operating loss carryforwards and certain deferred tax assets of $10 million , $19 million and $2 million , respectively. The valuation allowance of $57 million at December 31, 2014 relates to foreign tax credits, net operating loss carryforwards and certain deferred tax assets of $34 million , $19 million and $4 million , respectively. The valuation allowance will be reduced when and if the Company determines it is more likely than not that the related deferred income tax assets will be realized. |
Difference of Effective Income Tax Rate From US Rederal Statutory Rate | The Company’s effective income tax rate differs from the U.S. federal statutory rate as follows for the year ended December 31: 2015 2014 2013 Federal statutory rate 35.0% 35.0% 35.0% State and local income taxes, net of federal tax benefits 2.8 3.0 3.7 Taxes on foreign operations at rates different than U.S. federal statutory rates (1.4) (1.9) (2.3) Taxes on foreign income, net of tax credits (0.6) (4.6) (1.4) Valuation allowance (2.7) 4.0 0.1 Other 0.1 1.9 1.5 33.2% 37.4% 36.6% |
Summary of Activities Related To Unrecognized Tax Benefits | The following table summarizes the activity related to the Company’s unrecognized tax benefits: 2015 2014 2013 Beginning balance $ 35 $ 36 $ 37 Increases related to tax positions taken during a prior period 6 5 7 Increases related to tax positions taken during the current period 6 4 5 Decreases related to settlements with taxing authorities (2 ) (1 ) (4 ) Decreases as a result of a lapse of the applicable statute of limitations (9 ) (7 ) (8 ) Decreases related to tax positions taken during a prior period (1 ) (2 ) (1 ) Ending balance $ 35 $ 35 $ 36 |
Vacation Ownership Contract R38
Vacation Ownership Contract Receivables (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Vacation Ownership Contract Receivables [Abstract] | |
Current And Long-Term Vacation Ownership Contract Receivables | As of December 31, current and long-term vacation ownership contract receivables, net consisted of: 2015 2014 Current vacation ownership contract receivables: Securitized $ 248 $ 256 Non-securitized 81 88 329 344 Less: Allowance for loan losses 57 59 Current vacation ownership contract receivables, net $ 272 $ 285 Long-term vacation ownership contract receivables: Securitized $ 2,214 $ 2,256 Non-securitized 748 672 2,962 2,928 Less: Allowance for loan losses 524 522 Long-term vacation ownership contract receivables, net $ 2,438 $ 2,406 |
Principal Payments Due On Vacation Ownership Contract Receivables | Principal payments due on the Company’s vacation ownership contract receivables during each of the five years subsequent to December 31, 2015 and thereafter are as follows: Securitized Non - Securitized Total 2016 $ 248 $ 81 $ 329 2017 256 82 338 2018 258 82 340 2019 265 83 348 2020 280 86 366 Thereafter 1,155 415 1,570 $ 2,462 $ 829 $ 3,291 |
Allowance For Loan Losses On Vacation Ownership Contract Receivables | The activity in the allowance for loan losses on vacation ownership contract receivables was as follows: Amount Allowance for loan losses as of December 31, 2012 $ 497 Provision for loan losses 349 Contract receivables written off, net (280 ) Allowance for loan losses as of December 31, 2013 566 Provision for loan losses 260 Contract receivables write-offs, net (245 ) Allowance for loan losses as of December 31, 2014 581 Provision for loan losses 248 Contract receivables write-offs, net (248 ) Allowance for loan losses as of December 31, 2015 $ 581 |
Aged Analysis Of Financing Receivables Using Updated FICO Scores | The following table details an aged analysis of financing receivables using the most recently updated FICO scores (based on the policy described above): As of December 31, 2015 700+ 600-699 <600 No Score Asia Pacific Total Current $ 1,623 $ 1,023 $ 163 $ 115 $ 231 $ 3,155 31 - 60 days 16 25 17 5 2 65 61 - 90 days 10 14 11 3 1 39 91 - 120 days 7 11 11 2 1 32 Total $ 1,656 $ 1,073 $ 202 $ 125 $ 235 $ 3,291 As of December 31, 2014 700+ 600-699 <600 No Score Asia Pacific Total Current $ 1,556 $ 1,028 $ 191 $ 115 $ 261 $ 3,151 31 - 60 days 12 23 16 4 3 58 61 - 90 days 7 13 11 2 1 34 91 - 120 days 5 10 11 2 1 29 Total $ 1,580 $ 1,074 $ 229 $ 123 $ 266 $ 3,272 |
Inventory (Tables)
Inventory (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Inventory Disclosure [Abstract] | |
Schedule Of Inventory | Inventory, as of December 31, consisted of: 2015 2014 Land held for VOI development $ 136 $ 136 VOI construction in process 62 226 Inventory sold subject to conditional repurchase 155 73 Completed VOI inventory 604 431 Estimated recoveries 242 235 Destination network vacation credits and other 60 61 Total inventory 1,259 1,162 Less: Current portion (*) 295 302 Non-current inventory $ 964 $ 860 (*) Represents inventory that the Company expects to sell within the next 12 months. |
Property And Equipment, Net (Ta
Property And Equipment, Net (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property And Equipment | Property and equipment, net, as of December 31, consisted of: 2015 2014 Land $ 171 $ 203 Buildings and leasehold improvements 867 923 Capitalized software 762 670 Furniture, fixtures and equipment 529 534 Capital leases 202 211 Construction in progress 164 173 2,695 2,714 Less: Accumulated depreciation and amortization 1,296 1,214 $ 1,399 $ 1,500 |
Other Current Assets (Tables)
Other Current Assets (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Other Current Assets [Abstract] | |
Schedule Of Other Current Assets | Other current assets, as of December 31, consisted of: 2015 2014 Securitization restricted cash $ 73 $ 75 Escrow deposit restricted cash 59 51 Deferred costs 53 54 Non-trade receivables, net 32 58 Tax receivables 11 38 Assets held for sale 2 9 Other 36 35 $ 266 $ 320 |
Accrued Expenses and Other Cu42
Accrued Expenses and Other Current Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Accrued Expenses and Other Current Liabilities [Abstract] | |
Schedule Of Accrued Expenses And Other Current Liabilities | Accrued expenses and other current liabilities, as of December 31, consisted of: 2015 2014 Accrued payroll and related $ 274 $ 238 Accrued taxes 102 129 Accrued advertising and marketing 65 69 Accrued interest 49 45 Accrued loyalty programs 37 35 Inventory sale and repurchase obligations (a) 44 15 Accrued legal settlements 29 24 Accrued VOI maintenance fees 26 18 Accrued separation (b) 19 26 Accrued other 182 150 $ 827 $ 749 (a) See Note 9 - Inventory. (b) See Note 23 - Separation Adjustments and Transactions with Former Parent and Subsidiaries. |
Long-Term Debt And Borrowing 43
Long-Term Debt And Borrowing Arrangements (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |
Schedule Of Long-Term Debt Instruments | The Company’s indebtedness, as of December 31, consisted of: 2015 2014 Securitized vacation ownership debt : (a) Term notes $ 1,891 $ 1,962 Bank conduit facility (due August 2017) 239 203 Total securitized vacation ownership debt 2,130 2,165 Less: Current portion of securitized vacation ownership debt 209 214 Long-term securitized vacation ownership debt $ 1,921 $ 1,951 Long-term debt : (b) Revolving credit facility (due July 2020) $ 7 $ 25 Commercial paper 109 189 $315 million 6.00% senior unsecured notes (due December 2016) (c)(d) 316 317 $300 million 2.95% senior unsecured notes (due March 2017) 299 299 $14 million 5.75% senior unsecured notes (due February 2018) 14 14 $450 million 2.50% senior unsecured notes (due March 2018) 449 448 $40 million 7.375% senior unsecured notes (due March 2020) 40 40 $250 million 5.625% senior unsecured notes (due March 2021) 247 247 $650 million 4.25% senior unsecured notes (due March 2022) (e) 648 648 $400 million 3.90% senior unsecured notes (due March 2023) (f) 408 410 $350 million 5.10% senior unsecured notes (due October 2025) (g) 338 — Capital leases 153 170 Other 50 81 Total long-term debt 3,078 2,888 Less: Current portion of long-term debt 44 47 Long-term debt $ 3,034 $ 2,841 (a) Represents non-recourse debt that is securitized through bankruptcy-remote special purpose entities (“SPEs”), the creditors of which have no recourse to the Company for principal and interest. These outstanding borrowings (which legally are not liabilities of the Company) are collateralized by $2,576 million and $2,629 million of underlying gross vacation ownership contract receivables and related assets (which legally are not assets of the Company) as of December 31, 2015 and 2014 , respectively. (b) The carrying amounts of the senior unsecured notes are net of unamortized discount of $14 million as of December 31, 2015 and 2014 . (c) Classified as long-term as the Company has the intent to refinance such debt on a long-term basis and the ability to do so with its revolving credit facility. (d) Includes $1 million and $2 million of unamortized gains from the settlement of a derivative as of December 31, 2015 and 2014 , respectively. (e) Includes unamortized gains from the settlement of a derivative in the amount of $2 million as of December 31, 2015 . As of December 31, 2014 , includes a $3 million increase in the carrying value resulting from a fair value hedge derivative. (f) Includes unamortized gains from the settlement of a derivative in the amount of $11 million as of December 31, 2015 . As of December 31, 2014 , includes a $13 million increase in the carrying value resulting from a fair value hedge derivative. (g) Includes unamortized losses from the settlement of a derivative in the amount of $10 million as of December 31, 2015 . |
Summary Of Outstanding Debt Maturities | The Company’s outstanding debt as of December 31, 2015 matures as follows: Securitized Vacation Ownership Debt Long-Term Debt Total Within 1 year $ 209 $ 360 (*) $ 569 Between 1 and 2 years 235 330 565 Between 2 and 3 years 393 476 869 Between 3 and 4 years 205 13 218 Between 4 and 5 years 212 168 380 Thereafter 876 1,731 2,607 $ 2,130 $ 3,078 $ 5,208 (*) Includes $316 million of senior unsecured notes that the Company classified as long-term debt as it has the intent to refinance such debt on a long-term basis and the ability to do so with its revolving credit facility. |
Summary Of Available Capacity Under Borrowing Arrangements | As of December 31, 2015 , the available capacity under the Company’s borrowing arrangements was as follows: Securitized Bank Conduit Facility (a) Revolving Credit Facility Total Capacity $ 650 $ 1,500 Less: Outstanding Borrowings 239 7 Letters of credit — 1 Commercial paper borrowings — 109 (b) Available Capacity $ 411 $ 1,383 (a) The capacity of this facility is subject to the Company’s ability to provide additional assets to collateralize additional securitized borrowings. (b) The Company considers outstanding borrowings under its commercial paper programs to be a reduction of the available capacity of its revolving credit facility. |
Variable Interest Entities (Tab
Variable Interest Entities (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Servicing Assets at Fair Value [Line Items] | |
Assets And Liabilities Of Vacation Ownership SPEs | The assets and liabilities of these vacation ownership SPEs are as follows: December 31, December 31, Securitized contract receivables, gross (a) $ 2,462 $ 2,512 Securitized restricted cash (b) 92 96 Interest receivables on securitized contract receivables (c) 20 20 Other assets (d) 2 1 Total SPE assets (e) 2,576 2,629 Securitized term notes (f) 1,891 1,962 Securitized conduit facilities (f) 239 203 Other liabilities (g) 2 1 Total SPE liabilities 2,132 2,166 SPE assets in excess of SPE liabilities $ 444 $ 463 (a) Included in current ( $248 million and $256 million as of December 31, 2015 and 2014 , respectively) and non-current ( $2,214 million and $2,256 million as of December 31, 2015 and 2014 , respectively) vacation ownership contract receivables on the Consolidated Balance Sheets. (b) Included in other current assets ( $73 million and $75 million as of December 31, 2015 and 2014 , respectively) and other non-current assets ( $19 million and $21 million as of December 31, 2015 and 2014 , respectively) on the Consolidated Balance Sheets. (c) Included in trade receivables, net on the Consolidated Balance Sheets. (d) Primarily includes a security investment asset, which is included in other non-current assets on the Consolidated Balance Sheets. (e) Excludes deferred financing costs of $27 million and $30 million as of December 31, 2015 and 2014 , respectively, related to securitized debt. (f) Included in current ( $209 million and $214 million as of December 31, 2015 and 2014 , respectively) and long-term ( $1,921 million and $1,951 million as of December 31, 2015 and 2014 , respectively) securitized vacation ownership debt on the Consolidated Balance Sheets. (g) Primarily includes accrued interest on securitized debt, which is included in accrued expenses and other current liabilities on the Consolidated Balance Sheets. |
Summary Of Vacation Ownership Receivables And Other Securitized Assets, Net Of Securitized Liabilities And Allowance For Loan Losses | A summary of total vacation ownership receivables and other securitized assets, net of securitized liabilities and the allowance for loan losses, is as follows: December 31, December 31, SPE assets in excess of SPE liabilities $ 444 $ 463 Non-securitized contract receivables 829 760 Less: Allowance for loan losses 581 581 Total, net $ 692 $ 642 |
Midtown 45, NYC Property [Member] | |
Servicing Assets at Fair Value [Line Items] | |
Assets And Liabilities Of Vacation Ownership SPEs | The assets and liabilities of the SPE are as follows: December 31, December 31, Receivable for leased property and equipment (a) $ 47 $ 64 Total SPE assets 47 64 Accrued expenses and other current liabilities 1 1 Long-term debt (b) 46 77 Total SPE liabilities 47 78 SPE deficit $ — $ (14 ) (a) Represents a receivable for assets leased to the Company which are reported within property and equipment, net on the Company’s Consolidated Balance Sheets. (b) As of December 31, 2015 , included $42 million relating to a four-year mortgage note due in 2017 and $4 million of mandatorily redeemable equity, of which $29 million was included in current portion of long-term debt on the Consolidated Balance Sheet. As of December 31, 2014 , included $71 million relating to a four-year mortgage note due in 2017 and $6 million of mandatorily redeemable equity, of which $31 million was included in current portion of long-term debt on the Consolidated Balance Sheet. |
Fair Value (Tables)
Fair Value (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
Summary Of Assets And Liabilities Measured At Fair Value On Recurring Basis | The following table summarizes information regarding assets and liabilities that are measured at fair value (all of which are Level 2) on a recurring basis: As of As of December 31, 2015 December 31, 2014 Fair Value Carrying Value Fair Value Carrying Value Assets Derivatives: (a) Interest rate contracts $ — $ — $ 18 $ 18 Foreign exchange contracts 2 2 1 1 Total assets $ 2 $ 2 $ 19 $ 19 Liabilities Derivatives: (b) Interest rate contracts (c) $ — $ — $ 4 $ 4 Foreign exchange contracts 3 3 3 3 Total liabilities $ 3 $ 3 $ 7 $ 7 (a) Included in other current assets ( $2 million and $1 million as of December 31, 2015 and 2014 , respectively) and other non-current assets ( $18 million as of December 31, 2014 , respectively) on the Consolidated Balance Sheets. (b) Included in accrued expenses and other current liabilities on the Consolidated Balance Sheets. (c) As of December 31, 2014, primarily related to interest rate swap locks for the 2015 issuance of senior unsecured notes. |
Carrying Amounts And Estimated Fair Values Of Financial Instruments | The carrying amounts and estimated fair values of all other financial instruments are as follows: December 31, 2015 December 31, 2014 Carrying Amount Estimated Fair Value Carrying Amount Estimated Fair Value Assets Vacation ownership contract receivables, net $ 2,710 $ 3,272 $ 2,691 $ 3,284 Debt Total debt 5,208 5,234 5,053 5,140 |
Financial Instruments (Tables)
Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Summary Of Gain/(Loss) Amounts Recognized In AOCI | The following table summarizes information regarding the gains/(losses) recognized in AOCI for the years ended December 31: 2015 2014 2013 Designated hedging instruments Interest rate contracts $ 4 $ (4 ) $ 2 Foreign exchange contracts 3 2 (2 ) Total $ 7 $ (2 ) $ — |
Summary Of Gain/(Loss) Recognized In Income | The following table summarizes information regarding the gains/(losses) recognized in income on the Company’s freestanding derivatives for the years ended December 31: 2015 2014 2013 Non-designated hedging instruments Foreign exchange contracts (a) $ (15 ) $ (21 ) $ 10 Interest rate contracts (b) — — (1 ) Total $ (15 ) $ (21 ) $ 9 (a) Included within operating expenses on the Consolidated Statements of Income, which is primarily offset by changes in the value of the underlying assets and liabilities. (b) Included within consumer financing interest expense on the Consolidated Statements of Income. |
Commitments And Contingencies (
Commitments And Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Rental Payments for Operating Leases | Future minimum lease payments required under noncancelable operating leases as of December 31, 2015 are as follows: Noncancelable Operating Leases 2016 $ 90 2017 70 2018 57 2019 47 2020 35 Thereafter 194 $ 493 |
Accumulated Other Comprehensi48
Accumulated Other Comprehensive (Loss)/Income (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Accumulated Other Comprehensive Income [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | The components of AOCI are as follows: Pretax Foreign Currency Translation Adjustments Unrealized Gains/(Losses) on Cash Flow Hedges Defined Benefit Pension Plans AOCI Balance as of December 31, 2012 $ 137 $ (9 ) $ (8 ) $ 120 Period change (26 ) 1 4 (21 ) Balance as of December 31, 2013 111 (8 ) (4 ) 99 Period change (124 ) — (8 ) (132 ) Balance as of December 31, 2014 (13 ) (8 ) (12 ) (33 ) Period change (126 ) 8 3 (115 ) Balance as of December 31, 2015 $ (139 ) $ — $ (9 ) $ (148 ) Tax Foreign Currency Translation Adjustments Unrealized Gains/(Losses) on Cash Flow Hedges Defined Benefit Pension Plans AOCI Balance as of December 31, 2012 $ 25 $ 4 $ 2 $ 31 Period change (7 ) — (1 ) (8 ) Balance as of December 31, 2013 18 4 1 23 Period change 32 — 2 34 Balance as of December 31, 2014 50 4 3 57 Period change 20 (3 ) — 17 Balance as of December 31, 2015 $ 70 $ 1 $ 3 $ 74 Net of Tax Foreign Currency Translation Adjustments Unrealized Gains/(Losses) on Cash Flow Hedges Defined Benefit Pension Plans AOCI Balance as of December 31, 2012 $ 162 $ (5 ) $ (6 ) $ 151 Period change (33 ) 1 3 (29 ) Balance as of December 31, 2013 129 (4 ) (3 ) 122 Period change (92 ) — (6 ) (98 ) Balance as of December 31, 2014 37 (4 ) (9 ) 24 Period change (106 ) 5 3 (98 ) Balance as of December 31, 2015 $ (69 ) $ 1 $ (6 ) $ (74 ) |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Share-based Compensation [Abstract] | |
Incentive Equity Awards Granted By The Company | The activity related to incentive equity awards granted by the Company for the year ended December 31, 2015 consisted of the following: RSUs PSUs SSARs Number of RSUs Weighted Average Grant Price Number of PSUs Weighted Average Grant Price Number of SSARs Weighted Average Exercise Price Balance as of December 31, 2014 2.0 $ 57.13 0.7 $ 57.99 0.7 $ 40.09 Granted (a) 0.6 91.50 0.2 91.81 0.1 91.81 Vested/exercised (0.9 ) 49.35 (0.3 ) 44.57 — — Canceled (0.1 ) 68.47 — — — — Balance as of December 31, 2015 1.6 (b)(c) 73.75 0.6 (d) 73.60 0.8 (b)(e) 46.45 (a) Primarily represents awards granted by the Company on February 26, 2015 . (b) Aggregate unrecognized compensation expense related to RSUs and SSARs was $88 million as of December 31, 2015 , which is expected to be recognized over a weighted average period of 2.5 years . (c) Approximately 1.6 million RSUs outstanding as of December 31, 2015 are expected to vest over time. (d) Maximum aggregate unrecognized compensation expense was $23 million as of December 31, 2015 . (e) Approximately 0.6 million SSARs are exercisable as of December 31, 2015 . The Company assumes that all unvested SSARs are expected to vest over time. SSARs outstanding as of December 31, 2015 had an intrinsic value of $39 million and have a weighted average remaining contractual life of 2.0 years . |
Weighted Average Grant Date Fair Value Assumptions | The projected dividend yield was based on the Company’s anticipated annual dividend divided by the price of the Company’s stock on the date of the grant. SSARs Issued on 2/26/2015 2/27/2014 2/28/2013 Grant date fair value $ 18.55 $ 20.36 $ 19.93 Grant date strike price $ 91.81 $ 72.97 $ 60.24 Expected volatility 25.38 % 35.86 % 44.56 % Expected life 5.1 years 5.1 years 5 years Risk free interest rate 1.64 % 1.54 % 0.80 % Projected dividend yield 1.83 % 1.92 % 1.93 % |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Segment Reporting [Abstract] | |
Summary Of Segment Information | YEAR ENDED OR AS OF DECEMBER 31, 2015 Hotel Group Destination Network Vacation Ownership Corporate and Other (d) Total Net revenues (a) $ 1,297 $ 1,538 $ 2,772 $ (71 ) $ 5,536 EBITDA 349 367 687 (137 ) 1,266 Depreciation and amortization 69 90 47 28 234 Segment assets 1,908 2,669 4,919 220 9,716 Capital expenditures 52 67 81 22 222 YEAR ENDED OR AS OF DECEMBER 31, 2014 Hotel Group Destination Network Vacation Ownership Corporate and Other (d) Total Net revenues (b) $ 1,101 $ 1,604 $ 2,638 $ (62 ) $ 5,281 EBITDA 327 335 660 (141 ) 1,181 Depreciation and amortization 61 96 47 29 233 Segment assets 1,835 2,703 4,856 285 9,679 Capital expenditures 55 74 85 21 235 YEAR ENDED OR AS OF DECEMBER 31, 2013 Hotel Group Destination Network Vacation Ownership Corporate and Other (d) Total Net revenues (c) $ 1,027 $ 1,526 $ 2,515 $ (59 ) $ 5,009 EBITDA 279 356 619 (122 ) 1,132 Depreciation and amortization 54 87 47 28 216 Segment assets 1,843 2,878 4,812 208 9,741 Capital expenditures 51 81 66 40 238 (a) Includes $71 million of intercompany segment revenues in the Company’s Hotel Group segment comprised of (i) $57 million of intersegment licensing fees for use of the Wyndham trade name, (ii) $8 million of room revenues at a Company owned hotel and (iii) $6 million of other fees primarily associated with the Wyndham Rewards program. Such revenues are offset in expenses at the Company’s Vacation Ownership segment. (b) Includes $62 million of intercompany segment revenues in the Company’s Hotel Group segment comprised of (i) $41 million of intersegment licensing fees for use of the Wyndham trade name, (ii) $8 million of room revenues at a Company owned hotel, (iii) $7 million of hotel management reimbursable revenues and (iv) $6 million of other fees primarily associated with the Wyndham Rewards program. Such revenues are offset in expenses at the Company’s Vacation Ownership segment. (c) Includes $59 million of intercompany segment revenues in the Company’s Hotel Group segment comprised of (i) $39 million of intersegment licensing fees for use of the Wyndham trade name, (ii) $8 million of room revenues at a Company owned hotel, (iii) $6 million of hotel management reimbursable fees and (iv) $6 million of other revenues primarily associated with the Wyndham Rewards program. Such revenues are offset in expenses at the Company’s Vacation Ownership segment. (d) Includes the elimination of transactions between segments. |
Reconciliation Of Earnings Before Interest, Taxes, Depreciation And Amortization To Net Income Attributable to Wyndham Shareholders | Provided below is a reconciliation of EBITDA to net income attributable to Wyndham shareholders. Year Ended December 31, 2015 2014 2013 EBITDA $ 1,266 $ 1,181 $ 1,132 Depreciation and amortization 234 233 216 Interest expense 125 113 131 Early extinguishment of debt — — 111 Interest income (9 ) (10 ) (9 ) Income before income taxes 916 845 683 Provision for income taxes 304 316 250 Net income 612 529 433 Net income attributable to noncontrolling interest — — (1 ) Net income attributable to Wyndham shareholders $ 612 $ 529 $ 432 |
Schedule Of Geographic Segment Information | The geographic segment information provided below is classified based on the geographic location of the Company’s subsidiaries. United States United Kingdom Netherlands All Other Countries Total Year Ended or As of December 31, 2015 Net revenues $ 4,248 $ 272 $ 239 $ 777 $ 5,536 Net long-lived assets 2,992 410 285 398 4,085 Year Ended or As of December 31, 2014 Net revenues $ 3,892 $ 298 $ 276 $ 815 $ 5,281 Net long-lived assets 3,011 433 317 404 4,165 Year Ended or As of December 31, 2013 Net revenues $ 3,765 $ 266 $ 250 $ 728 $ 5,009 Net long-lived assets 3,066 459 372 400 4,297 |
Restructuring, Impairment and51
Restructuring, Impairment and Other Charges (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Restructuring Charges [Abstract] | |
Activity Related To The Restructuring Costs | The activity related to costs associated with the restructuring plans is summarized by category as follows: Liability as of December 31, 2012 2013 Activity Liability as of December 31, 2013 Costs Recognized Cash Payments Other Personnel-Related $ 6 $ 8 (a) $ (6 ) $ (2 ) (f) $ 6 Facility-Related 5 2 (4 ) 1 (g) 4 Contract Terminations — 1 — — 1 $ 11 $ 11 $ (10 ) $ (1 ) $ 11 Liability as of December 31, 2013 2014 Activity Liability as of December 31, 2014 Costs Recognized Cash Payments Other Personnel-Related $ 6 $ 6 (b) $ (6 ) $ — $ 6 Facility-Related 4 — — — 4 Contract Terminations 1 1 — (1 ) (h) 1 Asset Impairment — 5 (c) — (5 ) (c) — $ 11 $ 12 $ (6 ) $ (6 ) $ 11 Liability as of December 31, 2014 2015 Activity Liability as of December 31, 2015 Costs Recognized Cash Payments Other Personnel-Related $ 6 $ 5 (d) $ (8 ) $ — $ 3 Facility-Related 4 — (2 ) — 2 Contract Terminations 1 — — (1 ) (i) — Asset Impairment — 1 (e) — (1 ) (e) — $ 11 $ 6 $ (10 ) $ (2 ) $ 5 (a) Represents severance costs incurred at the Company’s hotel group business resulting from a reduction of 105 employees. (b) Represents severance costs of $4 million and $2 million at the Company’s destination network and hotel group businesses, respectively, resulting from a reduction of 122 employees. (c) Represents the non-cash write-off of assets related to an information technology project at the Company’s destination network business. (d) Represents severance costs of $3 million , $1 million and $1 million at the Company’s hotel group, destination network and vacation ownership businesses, respectively, resulting from a reduction of 361 employees. (e) Represents the non-cash asset impairment charge associated with a facility at the Company’s destination network business. (f) Includes $1 million of a reversal of previously recorded expenses at the Company’s destination network business and $1 million of a non-cash settlement at the Company’s hotel group business. (g) Represents a non-cash adjustment to the liability at the Company’s vacation ownership business. (h) Represents a reversal of previously recorded expenses at the Company’s hotel group business. (i) Represents a reversal of a portion of previously recorded expenses at the Company’s destination network business. |
Selected Quarterly Financial 52
Selected Quarterly Financial Data - (unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Selected Quarterly Financial Information [Abstract] | |
Summary Of Selected Quarterly Financial Data | Provided below is selected unaudited quarterly financial data for 2015 and 2014 . 2015 First Second Third Fourth Net revenues Hotel Group $ 292 $ 334 $ 357 $ 314 Destination Network 369 383 476 310 Vacation Ownership 617 699 750 706 Corporate and Other (*) (16 ) (18 ) (19 ) (19 ) $ 1,262 $ 1,398 $ 1,564 $ 1,311 EBITDA Hotel Group $ 76 $ 96 $ 83 $ 94 Destination Network 105 84 134 44 Vacation Ownership 130 182 200 174 Corporate and Other (*) (34 ) (30 ) (35 ) (37 ) 277 332 382 275 Less: Depreciation and amortization 56 58 59 61 Interest expense 26 30 33 37 Interest income (3 ) (2 ) (2 ) (2 ) Income before income taxes 198 246 292 179 Provision for income taxes 76 87 102 39 Net income $ 122 $ 159 $ 190 $ 140 Per share information Basic $ 1.01 $ 1.34 $ 1.62 $ 1.22 Diluted 1.00 1.33 1.61 1.21 Weighted average diluted shares outstanding 122 120 118 116 Note: The sum of the quarters may not agree to the Consolidated Statement of Income for the year ended December 31, 2015 due to rounding. (*) Includes the elimination of transactions between segments. 2014 First Second Third Fourth Net revenues Hotel Group $ 237 $ 283 $ 315 $ 267 Destination Network 379 402 512 311 Vacation Ownership 593 673 704 668 Corporate and Other (*) (16 ) (15 ) (17 ) (15 ) $ 1,193 $ 1,343 $ 1,514 $ 1,231 EBITDA Hotel Group $ 64 $ 87 $ 100 $ 77 Destination Network 85 89 159 2 Vacation Ownership 115 185 188 172 Corporate and Other (*) (34 ) (35 ) (36 ) (36 ) 230 326 411 215 Less: Depreciation and amortization 56 59 60 58 Interest expense 27 29 28 29 Interest income (2 ) (3 ) (2 ) (4 ) Income before income taxes 149 241 325 132 Provision for income taxes 59 88 119 51 Net income $ 90 $ 153 $ 206 $ 81 Per share information Basic $ 0.70 $ 1.21 $ 1.65 $ 0.66 Diluted 0.69 1.20 1.64 0.65 Weighted average diluted shares outstanding 130 128 126 124 Note: The sum of the quarters may not agree to the Consolidated Statement of Income for the year ended December 31, 2014 due to rounding. (*) Includes the elimination of transactions between segments. |
Summary of Significant Accoun53
Summary of Significant Accounting Policies (Narrative) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Summary Of Significant Accounting policies [Line Items] | |||
Unrecognized Deferred Revenue under POC | $ (21,000,000) | $ (38,000,000) | $ (39,000,000) |
Deferred Revenue under POC | 681,000,000 | 663,000,000 | |
Cash desposited in reserve account | 92,000,000 | 96,000,000 | |
Escrow deposit | 59,000,000 | 51,000,000 | |
Loyalty points liability | 67,000,000 | 62,000,000 | |
Capitalized interest of inventory (less than $1 million in 2013) | 3,000,000 | 2,000,000 | 1,000,000 |
Advertising expense | 172,000,000 | 170,000,000 | 146,000,000 |
Software developed or obtained for internal use | 223,000,000 | 190,000,000 | |
Other income, net | 17,000,000 | 7,000,000 | 6,000,000 |
Debt issuance cost | $ 27,000,000 | 29,000,000 | |
Minimum [Member] | |||
Summary Of Significant Accounting policies [Line Items] | |||
Rescission period | 3 days | ||
Maximum [Member] | |||
Summary Of Significant Accounting policies [Line Items] | |||
Rescission period | 15 days | ||
Buildings and leasehold improvements | |||
Summary Of Significant Accounting policies [Line Items] | |||
Property and equipment useful life, average (in years) | 30 years | ||
Leasehold Improvements [Member] | |||
Summary Of Significant Accounting policies [Line Items] | |||
Property and equipment useful life, average (in years) | 20 years | ||
Vacation Rental Properties [Member] | Minimum [Member] | |||
Summary Of Significant Accounting policies [Line Items] | |||
Property and equipment useful life, average (in years) | 15 years | ||
Vacation Rental Properties [Member] | Maximum [Member] | |||
Summary Of Significant Accounting policies [Line Items] | |||
Property and equipment useful life, average (in years) | 30 years | ||
Furniture Fixtures And Equipment [Member] | Minimum [Member] | |||
Summary Of Significant Accounting policies [Line Items] | |||
Property and equipment useful life, average (in years) | 3 years | ||
Furniture Fixtures And Equipment [Member] | Maximum [Member] | |||
Summary Of Significant Accounting policies [Line Items] | |||
Property and equipment useful life, average (in years) | 7 years | ||
Software Development [Member] | |||
Summary Of Significant Accounting policies [Line Items] | |||
Property and equipment useful life, average (in years) | 7 years | ||
Software Development [Member] | Minimum [Member] | |||
Summary Of Significant Accounting policies [Line Items] | |||
Property and equipment useful life, average (in years) | 3 years | ||
Software Development [Member] | Maximum [Member] | |||
Summary Of Significant Accounting policies [Line Items] | |||
Property and equipment useful life, average (in years) | 5 years | ||
Interest Expense [Member] | |||
Summary Of Significant Accounting policies [Line Items] | |||
Software developed or obtained for internal use | $ 4,000,000 | 4,000,000 | 5,000,000 |
Loyalty Programs [Member] | |||
Summary Of Significant Accounting policies [Line Items] | |||
Loyalty revenue | 152,000,000 | 142,000,000 | 113,000,000 |
Loyalty expenses | 119,000,000 | 112,000,000 | 93,000,000 |
Other Income Net [Member] | |||
Summary Of Significant Accounting policies [Line Items] | |||
Net earnings from equity investments | 2,000,000 | 2,000,000 | 3,000,000 |
Other Current Assets [Member] | |||
Summary Of Significant Accounting policies [Line Items] | |||
Cash desposited in reserve account | 73,000,000 | 75,000,000 | |
Non Current Assets [Member] | |||
Summary Of Significant Accounting policies [Line Items] | |||
Cash desposited in reserve account | $ 19,000,000 | 21,000,000 | |
Lodging [Member] | |||
Summary Of Significant Accounting policies [Line Items] | |||
Standard management agreement, maximum | 25 years | ||
Management fee revenues | $ 23,000,000 | 11,000,000 | 8,000,000 |
Revenue related to payroll costs | $ 273,000,000 | $ 148,000,000 | $ 129,000,000 |
Destination Network [Member] | |||
Summary Of Significant Accounting policies [Line Items] | |||
Percent of revenues from long-term capital leases or operating leases | 100.00% | ||
Percentage cancellations of booked rental transactions | 4.00% | 4.00% | 4.00% |
Destination Network [Member] | Minimum [Member] | |||
Summary Of Significant Accounting policies [Line Items] | |||
Vacation rentals business revenues from fees | 20.00% | ||
Destination Network [Member] | Maximum [Member] | |||
Summary Of Significant Accounting policies [Line Items] | |||
Vacation rentals business revenues from fees | 45.00% | ||
Vacation Ownership [Member] | |||
Summary Of Significant Accounting policies [Line Items] | |||
Management fee revenues | $ 275,000,000 | $ 288,000,000 | $ 290,000,000 |
Percentage of minimum down payment to meet initial investment criteria | 10.00% | ||
Unrecognized Deferred Revenue under POC | $ 13,000,000 | ||
Deferred Revenue under POC | $ 0 | 12,000,000 | |
Maximum number of days before payments begin under financing contracts | 45 days | ||
Property management revenues | $ 615,000,000 | 581,000,000 | 567,000,000 |
Reimbursable revenues | 340,000,000 | 293,000,000 | 277,000,000 |
Payment for exchange services | 24,000,000 | 19,000,000 | 19,000,000 |
Other income, net | $ 15,000,000 | $ 5,000,000 | $ 3,000,000 |
Summary of Significant Accoun54
Summary of Significant Accounting Policies (Schedule of Deferred Income) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Deferred Revenue Arrangement [Line Items] | ||
Total deferred income | $ 681 | $ 663 |
Less: Current deferred income | 483 | 464 |
Non-current deferred income | 198 | 199 |
Membership And Exchange Fees [Member] | ||
Deferred Revenue Arrangement [Line Items] | ||
Total deferred income | 260 | 275 |
VOI Trial And Incentive Fees [Member] | ||
Deferred Revenue Arrangement [Line Items] | ||
Total deferred income | $ 153 | 160 |
Deferred Revenue, Revenue Recognition Term | 2 years | |
Vacation Rental Fees [Member] | ||
Deferred Revenue Arrangement [Line Items] | ||
Total deferred income | $ 110 | 104 |
Deferred Revenue, Revenue Recognition Term | 6 months | |
Initial Franchise Fees [Member] | ||
Deferred Revenue Arrangement [Line Items] | ||
Total deferred income | $ 53 | 49 |
Deferred Revenue, Revenue Recognition Term | 2 years | |
Other Fees [Member] | ||
Deferred Revenue Arrangement [Line Items] | ||
Total deferred income | $ 105 | $ 75 |
Minimum [Member] | Membership And Exchange Fees [Member] | ||
Deferred Revenue Arrangement [Line Items] | ||
Deferred Revenue, Revenue Recognition Term | 1 year | |
Maximum [Member] | Membership And Exchange Fees [Member] | ||
Deferred Revenue Arrangement [Line Items] | ||
Deferred Revenue, Revenue Recognition Term | 3 years |
Summary of Significant Accoun55
Summary of Significant Accounting Policies (Summary of Activity of Allowance For Doubtful Accounts) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Allowance for doubtful accounts | |||
Beginning balance | $ 169 | $ 209 | $ 213 |
Bad debt expense | 51 | 48 | 57 |
Write-offs | (71) | (86) | (64) |
Translation and other adjustments | 1 | (2) | 3 |
Ending balance | $ 150 | $ 169 | $ 209 |
Earnings Per Share (Narrative)
Earnings Per Share (Narrative) (Details) - USD ($) $ / shares in Units, $ in Millions | Oct. 22, 2014 | Dec. 31, 2015 | Dec. 31, 2014 |
Earnings Per Share [Line Items] | |||
Increase in authorized amount for share repurchase | $ 1,000 | ||
Amount authorized under share repurchase program | $ 4,000 | ||
Remaining authorized amount under share repurchases | $ 366 | ||
Stock repurchased | 103,730,568 | 95,806,076 | |
Since Separation [Member] | |||
Earnings Per Share [Line Items] | |||
Stock repurchased | 104,000,000 | ||
Treasury stock average cost | $ 43.35 | ||
Cost of shares repurchased under authorized program | $ 4,500 |
Earnings Per Share (Computation
Earnings Per Share (Computation Of Basic And Diluted EPS) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||||||||||||||||
Net income attributable to Wyndham shareholders | $ 140 | $ 190 | $ 159 | $ 122 | $ 81 | $ 206 | $ 153 | $ 90 | $ 612 | $ 529 | $ 432 | ||||||||
Basic weighted average shares outstanding | 118,000,000 | 125,000,000 | 133,000,000 | ||||||||||||||||
Stock options, SSARs, RSUs and PSUs | [1],[2],[3] | 1,000,000 | 2,000,000 | 2,000,000 | |||||||||||||||
Weighted average diluted shares outstanding | 116,000,000 | 118,000,000 | 120,000,000 | 122,000,000 | 124,000,000 | 126,000,000 | 128,000,000 | 130,000,000 | 119,000,000 | 127,000,000 | 135,000,000 | ||||||||
Basic (in dollars per share) | $ 1.22 | $ 1.62 | $ 1.34 | $ 1.01 | $ 0.66 | $ 1.65 | $ 1.21 | $ 0.7 | $ 5.18 | $ 4.22 | $ 3.25 | ||||||||
Diluted (in dollars per share) | 1.21 | 1.61 | 1.33 | 1 | 0.65 | 1.64 | 1.2 | 0.69 | 5.14 | 4.18 | 3.21 | ||||||||
Cash dividends per share | $ 0.42 | $ 0.42 | $ 0.42 | $ 0.42 | $ 0.35 | $ 0.35 | $ 0.35 | $ 0.35 | $ 0.29 | $ 0.29 | $ 0.29 | $ 0.29 | $ 1.68 | [4] | $ 1.40 | [4] | $ 1.16 | [4] | |
Aggregate dividends paid to shareholders | [4] | $ 202 | $ 179 | $ 156 | |||||||||||||||
Performance-Based Stock Units [Member] | |||||||||||||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||||||||||||||||
Shares excluded from computation of diluted EPS | 581,912 | 422,000 | 492,000 | ||||||||||||||||
[1] | Excludes 0.6 million, 0.4 million and 0.5 million performance vested restricted stock units (“PSUs”) for the years ended 2015, 2014 and 2013, respectively, as the Company had not met the required performance metrics. | ||||||||||||||||||
[2] | Excludes stock-settled appreciation rights (“SSARs”) that would have been anti-dilutive to EPS. | ||||||||||||||||||
[3] | Includes unvested dilutive restricted stock units (“RSUs”) which are subject to future forfeitures. | ||||||||||||||||||
[4] | For each of the quarterly periods ended March 31, June 30, September 30 and December 31, 2015, 2014 and 2013, the Company paid cash dividends of $0.42, $0.35 and $0.29 per share, respectively. |
Earnings Per Share (Current Sto
Earnings Per Share (Current Stock Repurchase Program) (Details) $ / shares in Units, $ in Millions | 12 Months Ended |
Dec. 31, 2015USD ($)$ / sharesshares | |
Stock Repurchase Activity [Roll Forward] | |
Shares, As of December 31, 2014 | 95,806,076 |
Shares, As of December 31, 2015 | 103,730,568 |
Stock Repurchase Program [Member] | |
Stock Repurchase Activity [Roll Forward] | |
Shares, As of December 31, 2014 | 71,300,000 |
Cost, As of December 31, 2014 | $ | $ 3,062 |
Average Price, As of December 31, 2014 (in dollars per share) | $ / shares | $ 42.94 |
Shares, For the year ended December 31, 2015 | 7,900,000 |
Cost, For the year ended December 31, 2015 | $ | $ 650 |
Average Price, For the year ended December 31, 2015 (in dollars per share) | $ / shares | $ 82.01 |
Shares, As of December 31, 2015 | 79,200,000 |
Cost, As of December 31, 2015 | $ | $ 3,712 |
Average Price, As of December 31, 2015 (in dollars per share) | $ / shares | $ 46.85 |
Acquisitions (Narrative) (Detai
Acquisitions (Narrative) (Details) $ in Millions | Jan. 30, 2015USD ($) | Jan. 31, 2013USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | Jan. 24, 2013USD ($) |
Acquisitions [Line Items] | ||||||
Goodwill | $ 1,563 | $ 1,551 | ||||
Vacation Ownership [Member] | ||||||
Acquisitions [Line Items] | ||||||
Goodwill | 27 | 27 | ||||
Destination Network [Member] | ||||||
Acquisitions [Line Items] | ||||||
Goodwill | 1,207 | 1,224 | ||||
Dolce Hotels and Resorts [Member] | ||||||
Acquisitions [Line Items] | ||||||
Net consideration | $ 57 | |||||
Consideration received, net of cash acquired | 52 | |||||
Debt repaid at closing | 5 | |||||
Goodwill | 29 | |||||
Definite-Lived Intangibles | $ 28 | |||||
Weighted average useful life (in years) of definite-lived intangible assets | 15 years | |||||
Other assets acquired | $ 9 | |||||
Liabilities assumed | 23 | |||||
Other Acquisitions [Member] | ||||||
Acquisitions [Line Items] | ||||||
Consideration received, net of cash acquired | $ 38 | |||||
Number of businesses acquired | 5 | |||||
Other Acquisitions [Member] | Vacation Ownership [Member] | ||||||
Acquisitions [Line Items] | ||||||
Property and equipment | $ 12 | |||||
Other Acquisitions [Member] | Destination Network [Member] | ||||||
Acquisitions [Line Items] | ||||||
Goodwill | 19 | |||||
Goodwill, expected tax deductible amount | 13 | |||||
Definite-Lived Intangibles | $ 13 | |||||
Weighted average useful life (in years) of definite-lived intangible assets | 10 years | |||||
Series of Individually Immaterial Business Acquisitions [Member] | ||||||
Acquisitions [Line Items] | ||||||
Consideration received, net of cash acquired | $ 32 | $ 14 | ||||
Goodwill | 12 | |||||
Definite-Lived Intangibles | $ 8 | |||||
Weighted average useful life (in years) of definite-lived intangible assets | 10 years | |||||
Number of businesses acquired | 4 | 2 | ||||
Contingent consideration | $ 2 | |||||
Series of Individually Immaterial Business Acquisitions [Member] | Vacation Ownership [Member] | ||||||
Acquisitions [Line Items] | ||||||
Definite-Lived Intangibles | $ 3 | |||||
Weighted average useful life (in years) of definite-lived intangible assets | 13 years | |||||
Property and equipment | $ 14 | |||||
Inventory | 9 | |||||
Series of Individually Immaterial Business Acquisitions [Member] | Destination Network [Member] | ||||||
Acquisitions [Line Items] | ||||||
Goodwill | 2 | |||||
Definite-Lived Intangibles | $ 3 | |||||
Weighted average useful life (in years) of definite-lived intangible assets | 12 years | |||||
Midtown 45, NYC Property [Member] | ||||||
Acquisitions [Line Items] | ||||||
Property and equipment | $ 115 | |||||
Acquisition related costs | $ 2 | |||||
Consideration transferred | $ 115 | |||||
Trademarks [Member] | Dolce Hotels and Resorts [Member] | ||||||
Acquisitions [Line Items] | ||||||
Definite-Lived Intangibles | $ 14 | |||||
Trademarks [Member] | Series of Individually Immaterial Business Acquisitions [Member] | ||||||
Acquisitions [Line Items] | ||||||
Definite-Lived Intangibles | $ 1 |
Intangible Assets (Narrative) (
Intangible Assets (Narrative) (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Goodwill [Line Items] | ||||
No Impairment | $ 0 | $ 0 | $ 0 | |
Gross Carrying Amount, Trademarks | 726,000,000 | 717,000,000 | ||
Wyndham Hotels And Resorts [Member] | ||||
Goodwill [Line Items] | ||||
Impairment of Intangible Assets, Finite-lived | 8,000,000 | |||
Trademarks [Member] | ||||
Goodwill [Line Items] | ||||
Gross Carrying Amount, Trademarks | [1] | $ 723,000,000 | $ 713,000,000 | |
Trademarks [Member] | Wyndham Hotels And Resorts [Member] | ||||
Goodwill [Line Items] | ||||
Gross Carrying Amount, Trademarks | [1] | $ 28,000,000 | ||
[1] | Comprised of various trade names (primarily including the Wyndham Hotels and Resorts, Ramada, Days Inn, RCI, Landal GreenParks, Baymont Inn & Suites, Microtel Inns & Suites, Hawthorn by Wyndham, TRYP by Wyndham, Dolce Hotels and Resorts and Hoseasons trade names) that the Company has acquired. These trade names are expected to generate future cash flows for an indefinite period of time. |
Intangible Assets (Components O
Intangible Assets (Components Of Intangible Assets) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | ||
Goodwill [Roll Forward] | |||
Gross Carrying Amount, Goodwill | $ 1,563 | $ 1,551 | |
Gross Carrying Amount, Trademarks | 726 | 717 | |
Gross Carrying Amount, Amortized Intangible Assets | 903 | 873 | |
Accumulated Amortization, Amortized Intangible Assets | 503 | 472 | |
Net Carrying Amount, Amortized Intangible Assets | 400 | 401 | |
Franchise Agreements [Member] | |||
Goodwill [Roll Forward] | |||
Gross Carrying Amount, Amortized Intangible Assets | [1] | 594 | 594 |
Accumulated Amortization, Amortized Intangible Assets | [1] | 386 | 371 |
Net Carrying Amount, Amortized Intangible Assets | [1] | $ 208 | 223 |
Finite-Lived Intangible Assets, Useful Life | 35 years | ||
Management Agreement [Member] | |||
Goodwill [Roll Forward] | |||
Gross Carrying Amount, Amortized Intangible Assets | [2] | $ 153 | 105 |
Accumulated Amortization, Amortized Intangible Assets | [2] | 46 | 35 |
Net Carrying Amount, Amortized Intangible Assets | [2] | $ 107 | 70 |
Finite-Lived Intangible Assets, Useful Life | 14 years | ||
Trademarks [Member] | |||
Goodwill [Roll Forward] | |||
Gross Carrying Amount, Amortized Intangible Assets | [3] | $ 8 | 7 |
Accumulated Amortization, Amortized Intangible Assets | [3] | 5 | 3 |
Net Carrying Amount, Amortized Intangible Assets | [3] | $ 3 | 4 |
Finite-Lived Intangible Assets, Useful Life | 5 years | ||
Other Intangible Assets [Member] | |||
Goodwill [Roll Forward] | |||
Gross Carrying Amount, Amortized Intangible Assets | [4] | $ 148 | 167 |
Accumulated Amortization, Amortized Intangible Assets | [4] | 66 | 63 |
Net Carrying Amount, Amortized Intangible Assets | [4] | $ 82 | 104 |
Customer Lists And Business Contracts [Member] | |||
Goodwill [Roll Forward] | |||
Finite-Lived Intangible Assets, Useful Life | 15 years | ||
Minimum [Member] | Franchise Agreements [Member] | |||
Goodwill [Roll Forward] | |||
Finite-Lived Intangible Assets, Useful Life | 20 years | ||
Minimum [Member] | Management Agreement [Member] | |||
Goodwill [Roll Forward] | |||
Finite-Lived Intangible Assets, Useful Life | 10 years | ||
Minimum [Member] | Trademarks [Member] | |||
Goodwill [Roll Forward] | |||
Finite-Lived Intangible Assets, Useful Life | 3 years | ||
Minimum [Member] | Customer Lists And Business Contracts [Member] | |||
Goodwill [Roll Forward] | |||
Finite-Lived Intangible Assets, Useful Life | 7 years | ||
Maximum [Member] | Franchise Agreements [Member] | |||
Goodwill [Roll Forward] | |||
Finite-Lived Intangible Assets, Useful Life | 40 years | ||
Maximum [Member] | Management Agreement [Member] | |||
Goodwill [Roll Forward] | |||
Finite-Lived Intangible Assets, Useful Life | 20 years | ||
Maximum [Member] | Trademarks [Member] | |||
Goodwill [Roll Forward] | |||
Finite-Lived Intangible Assets, Useful Life | 7 years | ||
Maximum [Member] | Customer Lists And Business Contracts [Member] | |||
Goodwill [Roll Forward] | |||
Finite-Lived Intangible Assets, Useful Life | 20 years | ||
Trademarks [Member] | |||
Goodwill [Roll Forward] | |||
Gross Carrying Amount, Trademarks | [5] | $ 723 | $ 713 |
[1] | Generally amortized over a period ranging from 20 to 40 years with a weighted average life of 35 years. | ||
[2] | Generally amortized over a period ranging from 10 to 20 years with a weighted average life of 14 years. | ||
[3] | Generally amortized over a period of 3 to 7 years with a weighted average life of 5 years. | ||
[4] | Includes customer lists and business contracts, generally amortized over a period ranging from 7 to 20 years with a weighted average life of 15 years. | ||
[5] | Comprised of various trade names (primarily including the Wyndham Hotels and Resorts, Ramada, Days Inn, RCI, Landal GreenParks, Baymont Inn & Suites, Microtel Inns & Suites, Hawthorn by Wyndham, TRYP by Wyndham, Dolce Hotels and Resorts and Hoseasons trade names) that the Company has acquired. These trade names are expected to generate future cash flows for an indefinite period of time. |
Intangible Assets (Changes In C
Intangible Assets (Changes In Carrying Amount Of Goodwill By Segment) (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Goodwill [Roll Forward] | |
Balance at December 31, 2014 | $ 1,551 |
Goodwill Acquired | 48 |
Foreign Exchange | (36) |
Balance at December 31, 2015 | 1,563 |
Lodging [Member] | |
Goodwill [Roll Forward] | |
Balance at December 31, 2014 | 300 |
Goodwill Acquired | 29 |
Foreign Exchange | 0 |
Balance at December 31, 2015 | 329 |
Destination Network [Member] | |
Goodwill [Roll Forward] | |
Balance at December 31, 2014 | 1,224 |
Goodwill Acquired | 19 |
Foreign Exchange | (36) |
Balance at December 31, 2015 | 1,207 |
Vacation Ownership [Member] | |
Goodwill [Roll Forward] | |
Balance at December 31, 2014 | 27 |
Goodwill Acquired | 0 |
Foreign Exchange | 0 |
Balance at December 31, 2015 | $ 27 |
Intangible Assets (Amortization
Intangible Assets (Amortization Expense Related To Intangible Assets By Major Class) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Amortization Expense | [1] | $ 37 | $ 37 | $ 36 |
Franchise Agreements [Member] | ||||
Amortization Expense | 15 | 15 | 15 | |
Management Agreement [Member] | ||||
Amortization Expense | 10 | 8 | 8 | |
Other Intangible Assets [Member] | ||||
Amortization Expense | $ 12 | $ 14 | $ 13 | |
[1] | Included as a component of depreciation and amortization on the Consolidated Statements of Income. |
Intangible Assets (Intangible A
Intangible Assets (Intangible Assets Future Amortization Expenses) (Details) $ in Millions | Dec. 31, 2015USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2,016 | $ 37 |
2,017 | 36 |
2,018 | 34 |
2,019 | 33 |
2,020 | $ 32 |
Franchising And Marketing_Res65
Franchising And Marketing/Reservation Activities (Narrative) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Franchisor Disclosure [Line Items] | |||
Franchise Fee Revenues | $ 674,000,000 | $ 632,000,000 | $ 599,000,000 |
Initial Franchise Fees | 12,000,000 | 12,000,000 | 12,000,000 |
Marketing And Reservation Fees | 313,000,000 | 294,000,000 | 291,000,000 |
Development Advances | 81,000,000 | 94,000,000 | |
Development Advances Forgiveness Amount | 8,000,000 | 9,000,000 | 7,000,000 |
Repayments for Development Advances | 6,000,000 | 6,000,000 | 0 |
Bad Debt Expense On Development Advances (Less than $1 million during 2014 and 2013) | $ 1,000,000 | $ 1,000,000 | $ 1,000,000 |
Minimum [Member] | |||
Franchisor Disclosure [Line Items] | |||
Franchise/Management Agreement Expiration Period | 10 years | ||
Maximum [Member] | |||
Franchisor Disclosure [Line Items] | |||
Franchise/Management Agreement Expiration Period | 20 years |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Provision [Line Items] | |||
Accumulated and Undistruted Earnings | $ 809 | ||
Effective Income Tax Rate, Percent | 33.20% | 37.40% | 36.60% |
Unrecognized Tax Benefits that Would Affect Effective Tax Rate | $ 35 | $ 35 | $ 36 |
Potential Accrued Penalties and Interest Related to Unrecongized Tax Benefits | 4 | 4 | 2 |
Liability for Potential Penalties | 4 | 4 | 3 |
Liability for Interest | 6 | 5 | 4 |
Income Taxes Paid, Net of Refunds | 239 | $ 249 | $ 175 |
Foreign Country [Member] | |||
Income Tax Provision [Line Items] | |||
Tax Credit, Amount | 89 | ||
Minimum [Member] | |||
Income Tax Provision [Line Items] | |||
Liability for Interest | 3 | ||
Maximum [Member] | |||
Income Tax Provision [Line Items] | |||
Liability for Interest | $ 6 |
Income Taxes (Income Tax Provis
Income Taxes (Income Tax Provision) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Disclosure [Abstract] | |||||||||||
Current, Federal | $ 182 | $ 176 | $ 114 | ||||||||
Current, State | 31 | 40 | 23 | ||||||||
Current, Foreign | 51 | 53 | 49 | ||||||||
Current Income Tax Provision | 264 | 269 | 186 | ||||||||
Deferred, Federal | 34 | 53 | 49 | ||||||||
Deferred, State | 8 | (1) | 18 | ||||||||
Deferred, Foreign | (2) | (5) | (3) | ||||||||
Deferred Income Tax Provision | 40 | 47 | 64 | ||||||||
Provision for income taxes | $ 39 | $ 102 | $ 87 | $ 76 | $ 51 | $ 119 | $ 88 | $ 59 | $ 304 | $ 316 | $ 250 |
Income Taxes (Pre-Tax Income Fo
Income Taxes (Pre-Tax Income For Domestic And Foreign Operations) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Disclosure [Abstract] | |||||||||||
Domestic | $ 745 | $ 681 | $ 509 | ||||||||
Foreign | 171 | 164 | 174 | ||||||||
Income before income taxes | $ 179 | $ 292 | $ 246 | $ 198 | $ 132 | $ 325 | $ 241 | $ 149 | $ 916 | $ 845 | $ 683 |
Income Taxes (Current and Non-C
Income Taxes (Current and Non-Current Deferred Income Tax Assets and Liabilities) (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Disclosure [Abstract] | |||
Accrued Liabilities And Deferred Income | $ 107 | $ 97 | |
Provision for Doubtful Accounts and Loan Loss Reserves for Vactation Ownership Contract Receivables | 159 | 159 | |
Foreing Tax Credit Carryforwards | 4 | 7 | |
Valuation Allowance | [1] | (10) | (17) |
Other | 5 | 7 | |
Current Deferred Income Tax Assets | 265 | 253 | |
Installment Sales Of Vacation Ownership Interests, Current | 98 | 98 | |
Other | 41 | 41 | |
Current Deferred Income Tax Liabilities | 139 | 139 | |
Current Net Deferred Income Tax Asset | 126 | 114 | |
Net Operating Loss Carryforward, Non-current | 50 | 46 | |
Foreign Tax Credit Carryforward, Non-current | 85 | 79 | |
Tax Basis Differences in Assets of Foreign Subsidiaries, Non-current | 35 | 43 | |
Accrued Liabilities And Deferred Income, Non-current | 78 | 78 | |
Provision for Doubtful Accounts and Loan Loss Reserves for Vacation Ownership Contract Receivables, Non-current | 141 | 141 | |
Other Comprehensive Income, Non-current | 55 | 40 | |
Other, Non-current | 14 | 14 | |
Valuation Allowance, Noncurrent | [1] | (21) | (40) |
Non-current Deferred Income Tax Assets | 437 | 401 | |
Depreciation And Amortization, Non-current | 734 | 703 | |
Installment Sales Of Vacation Ownership Interests, Non-current | 886 | 838 | |
Other, Non-current | 69 | 62 | |
Non-current Deferred Income Tax Liabilities | 1,689 | 1,603 | |
Non-current Net Deferred Income Tax Liabilities | 1,252 | 1,202 | |
Valuation Allowance | 31 | 57 | |
Foreign Tax Credits | 10 | 34 | |
Net Operating Loss Carryforwards | 19 | 19 | |
Other Deferred Tax Assets | $ 2 | $ 4 | |
[1] | The valuation allowance of $31 million at December 31, 2015 relates to foreign tax credits, net operating loss carryforwards and certain deferred tax assets of $10 million, $19 million and $2 million, respectively. The valuation allowance of $57 million at December 31, 2014 relates to foreign tax credits, net operating loss carryforwards and certain deferred tax assets of $34 million, $19 million and $4 million, respectively. The valuation allowance will be reduced when and if the Company determines it is more likely than not that the related deferred income tax assets will be realized. |
Income Taxes (Difference of Eff
Income Taxes (Difference of Effective Income Tax Rate From US Federal Statutor Rate) (Details) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Disclosure [Abstract] | |||
Federal Statutory Rate | 35.00% | 35.00% | 35.00% |
State and Local Income Taxes, Net of Federal Tax Benefits | 2.80% | 3.00% | 3.70% |
Taxes on Foreign Operations at Rates Different Than U.S. Federal Statutory Rates | (1.40%) | (1.90%) | (2.30%) |
Taxes on Foreign Income, Net of Tax Credits | (0.60%) | (4.60%) | (1.40%) |
Valuation Allowance | (2.70%) | 4.00% | 0.10% |
Other | 0.10% | 1.90% | 1.50% |
Effective Income Tax Rate | 33.20% | 37.40% | 36.60% |
Income Taxes (Summary of Activi
Income Taxes (Summary of Activities Related to Unrecognized Tax Benefits) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Beginning balance | $ 35 | $ 36 | $ 37 |
Increases related to tax positions taken during a prior period | 6 | 5 | 7 |
Increases related to tax positions during the current period | 6 | 4 | 5 |
Decreases related to settlements with taxing authorities | (2) | (1) | (4) |
Decrease as a result of a lapse of the applicable statute of limitations | (9) | (7) | (8) |
Decreases related to tax positions taken during a prior period | (1) | (2) | (1) |
Ending balance | $ 35 | $ 35 | $ 36 |
Vacation Ownership Contract R72
Vacation Ownership Contract Receivables (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Vacation Ownership Contract Receivables [Abstract] | |||
Interest income on securitized receivables | $ 333 | $ 300 | $ 297 |
Originated vacation ownership contract receivables | 1,091 | 1,013 | 1,064 |
Vacation ownership contract principal collections | $ 796 | $ 792 | $ 809 |
Contract Receivable Weighted Average Interest Rate | 13.80% | 13.60% | 13.50% |
Minimum days which Company ceases to accrue interest on VOI contract receivables | 90 days | ||
VOI contract receivable written off as credit loss | 120 days |
Vacation Ownership Contract R73
Vacation Ownership Contract Receivables (Current And Long-Term Vacation Ownership Contract Receivables) (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Accounts, Notes, Loans and Financing Receivables [Line Items] | ||
Current vacation ownership contract receivables | $ 329 | $ 344 |
Less: Allowance for loan losses | 57 | 59 |
Current vacation ownership contract receivables, net | 272 | 285 |
Long-term vacation ownership contract receivables | 2,962 | 2,928 |
Less: Allowance for loan losses | 524 | 522 |
Long-term vacation ownership contract receivables, net | 2,438 | 2,406 |
Securitized [Member] | ||
Accounts, Notes, Loans and Financing Receivables [Line Items] | ||
Current vacation ownership contract receivables | 248 | 256 |
Long-term vacation ownership contract receivables | 2,214 | 2,256 |
Non Securitized Receivable [Member] | ||
Accounts, Notes, Loans and Financing Receivables [Line Items] | ||
Current vacation ownership contract receivables | 81 | 88 |
Long-term vacation ownership contract receivables | $ 748 | $ 672 |
Vacation Ownership Contract R74
Vacation Ownership Contract Receivables (Principal Payments Due On Vacation Ownership Contract Receivables) (Details) $ in Millions | Dec. 31, 2015USD ($) |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
2,016 | $ 329 |
2,017 | 338 |
2,018 | 340 |
2,019 | 348 |
2,020 | 366 |
Thereafter | 1,570 |
Contract receivable total | 3,291 |
Securitized Receivable [Member] | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
2,016 | 248 |
2,017 | 256 |
2,018 | 258 |
2,019 | 265 |
2,020 | 280 |
Thereafter | 1,155 |
Contract receivable total | 2,462 |
Non Securitized Receivable [Member] | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
2,016 | 81 |
2,017 | 82 |
2,018 | 82 |
2,019 | 83 |
2,020 | 86 |
Thereafter | 415 |
Contract receivable total | $ 829 |
Vacation Ownership Contract R75
Vacation Ownership Contract Receivables (Allowance For Loan Losses On Vacation Ownership Contract Receivables) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Allowance for Loan Losses on Vaccation Ownership Contract Receivables | |||
Allowance for loan losses, beginning balance | $ 581 | $ 566 | $ 497 |
Provision for loan losses | 248 | 260 | 349 |
Contract receivables written-off, net | (248) | (245) | (280) |
Allowance for loan losses, ending balance | $ 581 | $ 581 | $ 566 |
Vacation Ownership Contract R76
Vacation Ownership Contract Receivables (Summary Of The Aged Analysis Of Financing Receivables Using The Most Recently Updated FICO Scores) (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Financing Receivables, Recorded Investment [Line Items] | ||
Financing receivables | $ 3,291 | $ 3,272 |
700+ [Member] | ||
Financing Receivables, Recorded Investment [Line Items] | ||
Financing receivables | 1,656 | 1,580 |
600-699 [Member] | ||
Financing Receivables, Recorded Investment [Line Items] | ||
Financing receivables | 1,073 | 1,074 |
Less Than 600 [Member] | ||
Financing Receivables, Recorded Investment [Line Items] | ||
Financing receivables | 202 | 229 |
No Score [Member] | ||
Financing Receivables, Recorded Investment [Line Items] | ||
Financing receivables | 125 | 123 |
Asia Pacific [Member] | ||
Financing Receivables, Recorded Investment [Line Items] | ||
Financing receivables | 235 | 266 |
Current [Member] | ||
Financing Receivables, Recorded Investment [Line Items] | ||
Financing receivables | 3,155 | 3,151 |
Current [Member] | 700+ [Member] | ||
Financing Receivables, Recorded Investment [Line Items] | ||
Financing receivables | 1,623 | 1,556 |
Current [Member] | 600-699 [Member] | ||
Financing Receivables, Recorded Investment [Line Items] | ||
Financing receivables | 1,023 | 1,028 |
Current [Member] | Less Than 600 [Member] | ||
Financing Receivables, Recorded Investment [Line Items] | ||
Financing receivables | 163 | 191 |
Current [Member] | No Score [Member] | ||
Financing Receivables, Recorded Investment [Line Items] | ||
Financing receivables | 115 | 115 |
Current [Member] | Asia Pacific [Member] | ||
Financing Receivables, Recorded Investment [Line Items] | ||
Financing receivables | 231 | 261 |
31 - 60 Days [Member] | ||
Financing Receivables, Recorded Investment [Line Items] | ||
Financing receivables | 65 | 58 |
31 - 60 Days [Member] | 700+ [Member] | ||
Financing Receivables, Recorded Investment [Line Items] | ||
Financing receivables | 16 | 12 |
31 - 60 Days [Member] | 600-699 [Member] | ||
Financing Receivables, Recorded Investment [Line Items] | ||
Financing receivables | 25 | 23 |
31 - 60 Days [Member] | Less Than 600 [Member] | ||
Financing Receivables, Recorded Investment [Line Items] | ||
Financing receivables | 17 | 16 |
31 - 60 Days [Member] | No Score [Member] | ||
Financing Receivables, Recorded Investment [Line Items] | ||
Financing receivables | 5 | 4 |
31 - 60 Days [Member] | Asia Pacific [Member] | ||
Financing Receivables, Recorded Investment [Line Items] | ||
Financing receivables | 2 | 3 |
61 - 90 Days [Member | ||
Financing Receivables, Recorded Investment [Line Items] | ||
Financing receivables | 39 | 34 |
61 - 90 Days [Member | 700+ [Member] | ||
Financing Receivables, Recorded Investment [Line Items] | ||
Financing receivables | 10 | 7 |
61 - 90 Days [Member | 600-699 [Member] | ||
Financing Receivables, Recorded Investment [Line Items] | ||
Financing receivables | 14 | 13 |
61 - 90 Days [Member | Less Than 600 [Member] | ||
Financing Receivables, Recorded Investment [Line Items] | ||
Financing receivables | 11 | 11 |
61 - 90 Days [Member | No Score [Member] | ||
Financing Receivables, Recorded Investment [Line Items] | ||
Financing receivables | 3 | 2 |
61 - 90 Days [Member | Asia Pacific [Member] | ||
Financing Receivables, Recorded Investment [Line Items] | ||
Financing receivables | 1 | 1 |
91 - 120 Days [Member] | ||
Financing Receivables, Recorded Investment [Line Items] | ||
Financing receivables | 32 | 29 |
91 - 120 Days [Member] | 700+ [Member] | ||
Financing Receivables, Recorded Investment [Line Items] | ||
Financing receivables | 7 | 5 |
91 - 120 Days [Member] | 600-699 [Member] | ||
Financing Receivables, Recorded Investment [Line Items] | ||
Financing receivables | 11 | 10 |
91 - 120 Days [Member] | Less Than 600 [Member] | ||
Financing Receivables, Recorded Investment [Line Items] | ||
Financing receivables | 11 | 11 |
91 - 120 Days [Member] | No Score [Member] | ||
Financing Receivables, Recorded Investment [Line Items] | ||
Financing receivables | 2 | 2 |
91 - 120 Days [Member] | Asia Pacific [Member] | ||
Financing Receivables, Recorded Investment [Line Items] | ||
Financing receivables | $ 1 | $ 1 |
Inventory (Narrative) (Details)
Inventory (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Inventory [Line Items] | ||||
Property and equipment transferred to VOI Inventory | $ 70 | $ 65 | ||
Accrued inventory | 27 | 24 | ||
Inventory sold subject to conditional repurchase | 155 | 73 | ||
Cash consideration received | 70 | 0 | $ 96 | |
Inventory sold, outstanding obligation, current | [1] | 44 | 15 | |
Vacation ownership inventory | 62 | 226 | ||
Repayments of vacation ownership inventory arrangements | 7 | 15 | $ 0 | |
Maximum potential future payments | 620 | |||
Non-current [Member] | ||||
Inventory [Line Items] | ||||
Accrued inventory | 20 | |||
Current [Member] | ||||
Inventory [Line Items] | ||||
Accrued inventory | 20 | 4 | ||
Accounts Payable [Member] | ||||
Inventory [Line Items] | ||||
Accrued inventory | 7 | |||
St. Thomas, U.S. Virgin Island Inventory Sale [Member] | ||||
Inventory [Line Items] | ||||
Inventory sold subject to conditional repurchase | 80 | |||
Cash consideration received | 70 | |||
Noncash or Part noncash Divestiture, Amount of Noncash Consideration Received | 10 | |||
Avon Colorado Inventory Sale [Member] | ||||
Inventory [Line Items] | ||||
Inventory sold, outstanding obligation | 32 | 42 | ||
Inventory sold, outstanding obligation, current | 11 | 10 | ||
Inventory sold, outstanding obligation, non-current | 21 | 32 | ||
Cash paid to third-party developer | 11 | |||
Vacation ownership inventory | 8 | |||
Repayments of vacation ownership inventory arrangements | 2 | |||
Interest paid | 1 | |||
Las Vegas, Nevada and St. Thomas, U.S. Virgin Island Inventory Sales [Member] | ||||
Inventory [Line Items] | ||||
Inventory sold, outstanding obligation | 157 | |||
Inventory sold, outstanding obligation, current | 33 | |||
Inventory sold, outstanding obligation, non-current | 124 | |||
Vacation ownership inventory | 9 | |||
Maximum potential future payments | 288 | |||
Las Vegas, Nevada Inventory Sale [Member] | ||||
Inventory [Line Items] | ||||
Inventory sold, outstanding obligation | 73 | |||
Inventory sold, outstanding obligation, current | 5 | |||
Inventory sold, outstanding obligation, non-current | $ 68 | |||
Cash paid to third-party developer | 12 | |||
Vacation ownership inventory | 6 | |||
Repayments of vacation ownership inventory arrangements | 5 | |||
Interest paid | $ 1 | |||
[1] | See Note 9 - Inventory. |
Inventory (Inventory) (Details)
Inventory (Inventory) (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 | |
Inventory Disclosure [Abstract] | |||
Land held for VOI development | $ 136 | $ 136 | |
VOI construction in process | 62 | 226 | |
Inventory sold subject to conditional repurchase | 155 | 73 | |
Completed VOI inventory | 604 | 431 | |
Estimated recoveries | 242 | 235 | |
Destination network vacation credits and other | 60 | 61 | |
Total inventory | 1,259 | 1,162 | |
Less: Current portion | [1] | 295 | 302 |
Non-current inventory | $ 964 | $ 860 | |
[1] | Represents inventory that the Company expects to sell within the next 12 months. |
Property And Equipment, Net (Na
Property And Equipment, Net (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Property, Plant and Equipment [Line Items] | |||
Depreciation and amortization expense | $ 197 | $ 196 | $ 180 |
Accrued Liabilities [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Construction in progress | $ 7 | $ 24 |
Property And Equipment, Net (Sc
Property And Equipment, Net (Schedule Of Property And Equipment) (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 2,695 | $ 2,714 |
Less: Accumulated depreciation and amortization | 1,296 | 1,214 |
Property and equipment, net | 1,399 | 1,500 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 171 | 203 |
Buildings and leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 867 | 923 |
Capitalized software | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 762 | 670 |
Furniture, fixtures and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 529 | 534 |
Capital leases | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 202 | 211 |
Construction in progress | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 164 | $ 173 |
Other Current Assets (Details)
Other Current Assets (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Other Current Assets [Abstract] | ||
Securitization restricted cash | $ 73 | $ 75 |
Escrow deposit restricted cash | 59 | 51 |
Deferred costs | 53 | 54 |
Non-trade receivables, net | 32 | 58 |
Tax receivables | 11 | 38 |
Assets held for sale | 2 | 9 |
Other | 36 | 35 |
Other Current Assets | $ 266 | $ 320 |
Accrued Expenses and Other Cu82
Accrued Expenses and Other Current Liabilities (Schedule of Accrued Expenses And Other Current Liabilities) (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 | |
Accrued Expenses and Other Current Liabilities [Abstract] | |||
Accrued payroll and related | $ 274 | $ 238 | |
Accrued taxes | 102 | 129 | |
Accrued advertising and marketing | 65 | 69 | |
Accrued interest | 49 | 45 | |
Accrued loyalty programs | 37 | 35 | |
Inventory sale and repurchase obligations | [1] | 44 | 15 |
Accrued legal settlements | 29 | 24 | |
Accrued VOI maintenance fees | 26 | 18 | |
Accrued separation | [2] | 19 | 26 |
Accrued other | 182 | 150 | |
Accrued expenses and other current liabilities | $ 827 | $ 749 | |
[1] | See Note 9 - Inventory. | ||
[2] | See Note 23 - Separation Adjustments and Transactions with Former Parent and Subsidiaries. |
Long-Term Debt And Borrowing 83
Long-Term Debt And Borrowing Arrangements (Securitized Debt) (Narrative) (Details) - USD ($) $ in Millions | 1 Months Ended | ||||||
Aug. 31, 2015 | Dec. 31, 2015 | Oct. 21, 2015 | Jul. 15, 2015 | Mar. 26, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Debt Instrument [Line Items] | |||||||
Weighted average interest rate | 3.50% | 3.70% | 4.20% | ||||
Total debt, carrying amount | $ 5,208 | $ 5,053 | |||||
Collateralized gross vacation ownership contract receivables and related assets | 2,962 | $ 2,928 | |||||
Sierra Timeshare 2015-1 Receivables Funding LLC [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, face amount | $ 350 | ||||||
Weighted average interest rate | 2.54% | ||||||
Advance rate on securitized debt | 90.00% | ||||||
Total debt, carrying amount | 222 | ||||||
Sierra Timeshare 2015-2 Receivables Funding LLC [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, face amount | $ 275 | ||||||
Weighted average interest rate | 2.56% | ||||||
Advance rate on securitized debt | 90.00% | ||||||
Total debt, carrying amount | 207 | ||||||
Sierra Timeshare 2015-3 Receivables Funding LLC [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, face amount | $ 300 | ||||||
Weighted average interest rate | 2.69% | ||||||
Advance rate on securitized debt | 89.00% | ||||||
Total debt, carrying amount | 275 | ||||||
Term Loan [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Outstanding borrowings | $ 1,187 | ||||||
Sierra Timeshare Conduit Receivables Funding II LLC [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Weighted average interest rate | 3.70% | 3.40% | 3.90% | ||||
Debt Instrument, Term | 2 years | ||||||
Credit facility maximum borrowing capacity | $ 650 | ||||||
Securitized Vacation Ownership Debt [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Weighted average interest rate | 3.50% | 3.70% | 4.20% | ||||
Secured debt | $ 2,130 | $ 2,165 | |||||
Collateralized gross vacation ownership contract receivables and related assets | $ 2,576 | $ 2,629 |
Long-Term Debt and Borrowing 84
Long-Term Debt and Borrowing Arrangements (Long-Term Debt) (Narrative) (Details) - USD ($) $ in Millions | Sep. 15, 2015 | Mar. 26, 2015 | Mar. 31, 2015 | Jan. 31, 2013 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2013 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Jan. 24, 2013 | Jul. 15, 2011 | |
Debt Instrument [Line Items] | |||||||||||||
Senior unsecured notes | [1] | $ 2,421 | |||||||||||
Vacation Rental capital leases weighted average interest rate | 4.50% | 4.50% | 4.50% | ||||||||||
Capital lease obligations | $ 85 | ||||||||||||
Capital lease interest rate | 4.50% | 4.50% | 4.50% | ||||||||||
Debt Instrument, Unamortized Discount | $ 14 | $ 14 | |||||||||||
5.10 % Senior Unsecured Notes ( Due October 2025) [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt instrument, face amount | $ 350 | ||||||||||||
Debt instruments, stated interest percentage | 5.10% | 5.10% | |||||||||||
Proceeds from Issuance of Debt | $ 348 | ||||||||||||
Payment for interest rate swap agreement | $ 10 | ||||||||||||
Loss on interest rate swap | $ 10 | ||||||||||||
Interest Rate Swap [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Derivative, Cash Received on Hedge | $ 17 | ||||||||||||
Deferred gain on fair value hedge | 13 | ||||||||||||
Derivative assets, fair value | $ 18 | ||||||||||||
Interest Rate Swap [Member] | 3.90% Senior Unsecured Notes (Due March 2023) [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt instruments, stated interest percentage | 3.90% | ||||||||||||
Derivative, notional amount | $ 400 | ||||||||||||
Interest Rate Swap [Member] | 4.25% Senior Unsecured Notes (Due March 2022) [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt instruments, stated interest percentage | 4.25% | ||||||||||||
Derivative, notional amount | $ 100 | ||||||||||||
Former Revolving Credit Facility [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Credit facility, borrowing capacity | $ 1,500 | ||||||||||||
New Revolving Credit Facility [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Credit facility, borrowing capacity | $ 1,500 | ||||||||||||
Debt Instrument, Term | 5 years | ||||||||||||
Credit facility, commitment fee percentage | 0.20% | ||||||||||||
Basis spread on variable rate | 1.30% | ||||||||||||
Domestic Commercial Paper [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt Instrument, Term | 366 days | ||||||||||||
Commercial Paper, maximum borrowing capacity | $ 750 | ||||||||||||
Commercial Paper | $ 109 | $ 189 | |||||||||||
Commercial Paper, weighted average interest rate | 1.07% | 0.89% | |||||||||||
European Commercial Paper [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt Instrument, Term | 364 days | ||||||||||||
Commercial Paper, maximum borrowing capacity | $ 500 | ||||||||||||
Mortgage Note - SPE [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt instruments, stated interest percentage | 4.50% | ||||||||||||
Mortgage Note - SPE [Member] | Midtown 45, NYC Property [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt Instrument, Term | 4 years | ||||||||||||
Debt instrument, face amount | 42 | $ 71 | $ 115 | ||||||||||
Mandatorily Redeemable Equity - SPE [Member] | Midtown 45, NYC Property [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt instrument, face amount | $ 4 | $ 6 | $ 9 | ||||||||||
[1] | The carrying amounts of the senior unsecured notes are net of unamortized discount of $14 million as of December 31, 2015 and 2014. |
Long-Term Debt And Borrowing 85
Long-Term Debt And Borrowing Arrangements (Early Extinguishment Of Debt) (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Debt Instrument [Line Items] | |||
Purchase of senior unsecured debt on tender offer | $ 446 | ||
Repurchase of senior unsecured notes on the open market | 42 | ||
Purchase of senior unsecured notes by redemption option | 43 | ||
Purchase of senior unsecured notes, total | 531 | ||
Early extinguishment of debt | $ 0 | $ 0 | $ 111 |
5.75% Senior Unsecured Notes (Due February 2018) [Member] | |||
Debt Instrument [Line Items] | |||
Debt instruments, stated interest percentage | 5.75% | 5.75% | |
7.375% Senior Unsecured Notes (Due March 2020) [Member] | |||
Debt Instrument [Line Items] | |||
Debt instruments, stated interest percentage | 7.375% | 7.375% | |
6.00% Senior Unsecured Notes (Due December 2016) [Member] | |||
Debt Instrument [Line Items] | |||
Debt instruments, stated interest percentage | 6.00% | 6.00% | |
9.875% Senior Unsecured Notes (Due May 2014) [Member] | |||
Debt Instrument [Line Items] | |||
Debt instruments, stated interest percentage | 9.875% |
Long-Term Debt And Borrowing 86
Long-Term Debt And Borrowing Arrangements (Interest Expense) (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Debt Instrument [Line Items] | |||
Interest capitalized | $ 7 | $ 6 | $ 5 |
Gain on fair value hedge ineffectiveness | 2 | ||
Long-Term Debt Borrowings And Capitalized Interest [Member] | |||
Debt Instrument [Line Items] | |||
Interest expense incurred | 125 | 113 | 131 |
Cash paid | 118 | 119 | 127 |
Securitized Vacation Ownership Debt [Member] | |||
Debt Instrument [Line Items] | |||
Interest expense, debt | 74 | 71 | 78 |
Consumer Finance [Member] | |||
Debt Instrument [Line Items] | |||
Cash paid | $ 56 | $ 53 | $ 61 |
Long-Term Debt And Borrowing 87
Long-Term Debt And Borrowing Arrangements (Summary Of Indebtedness-Long-Term Debt) (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Sep. 15, 2015 | ||
Debt Instrument [Line Items] | |||||
Capital lease interest rate | 4.50% | 4.50% | 4.50% | ||
Less: Current portion of securitized vacation ownership debt | $ 209 | $ 214 | |||
Long-term securitized vacation ownership debt | 1,921 | 1,951 | |||
Senior unsecured notes | [1] | 2,421 | |||
Less: Current portion of long-term debt | 44 | 47 | |||
Long-term vacation ownership contract receivables | 2,962 | 2,928 | |||
Debt Instrument, Unamortized Discount | $ 14 | 14 | |||
6.00% Senior Unsecured Notes (Due December 2016) [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt instruments, stated interest percentage | 6.00% | 6.00% | |||
2.95% Senior Unsecured Notes (Due March 2017) [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt instruments, stated interest percentage | 2.95% | ||||
5.75% Senior Unsecured Notes (Due February 2018) [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt instruments, stated interest percentage | 5.75% | 5.75% | |||
2.50% Senior Unsecured Notes (Due March 2018) [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt instruments, stated interest percentage | 2.50% | ||||
7.375% Senior Unsecured Notes (Due March 2020) [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt instruments, stated interest percentage | 7.375% | 7.375% | |||
5.625% Senior Unsecured Notes (Due March 2021) [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt instruments, stated interest percentage | 5.625% | ||||
5.10 % Senior Unsecured Notes ( Due October 2025) [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt instruments, stated interest percentage | 5.10% | 5.10% | |||
Debt instrument, face amount | $ 350 | ||||
Unamortized gains from the settlement of a derivative | $ 10 | ||||
Term Notes [Member] | |||||
Debt Instrument [Line Items] | |||||
Secured debt | [2] | 1,891 | 1,962 | ||
Bank Conduit Facility [Member] | |||||
Debt Instrument [Line Items] | |||||
Secured debt | [2] | 239 | 203 | ||
Securitized Vacation Ownership Debt [Member] | |||||
Debt Instrument [Line Items] | |||||
Secured debt | 2,130 | 2,165 | |||
Less: Current portion of securitized vacation ownership debt | 209 | 214 | |||
Long-term securitized vacation ownership debt | 1,921 | 1,951 | |||
Long-term vacation ownership contract receivables | 2,576 | 2,629 | |||
Revolving Credit Facility [Member] | |||||
Debt Instrument [Line Items] | |||||
Revolving credit facility | 7 | ||||
Commercial Paper | [3] | 109 | |||
Revolving Credit Facility [Member] | Revolving Credit Facility (Due July 2020) [Member] | |||||
Debt Instrument [Line Items] | |||||
Revolving credit facility | 7 | 25 | |||
Commercial Paper [Member] | |||||
Debt Instrument [Line Items] | |||||
Commercial Paper | 109 | 189 | |||
Long-term Debt [Member] | |||||
Debt Instrument [Line Items] | |||||
Capital leases | 153 | 170 | |||
Other | 50 | 81 | |||
Total long-term debt | 3,078 | 2,888 | |||
Less: Current portion of long-term debt | 44 | 47 | |||
Long-term debt | 3,034 | 2,841 | |||
Long-term Debt [Member] | 6.00% Senior Unsecured Notes (Due December 2016) [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, face amount | 315 | ||||
Senior unsecured notes | [1],[4],[5] | 316 | 317 | ||
Unamortized gains from the settlement of a derivative | 1 | 2 | |||
Long-term Debt [Member] | 2.95% Senior Unsecured Notes (Due March 2017) [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, face amount | 300 | ||||
Senior unsecured notes | [1] | 299 | 299 | ||
Long-term Debt [Member] | 5.75% Senior Unsecured Notes (Due February 2018) [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, face amount | 14 | ||||
Senior unsecured notes | [1] | 14 | 14 | ||
Long-term Debt [Member] | 2.50% Senior Unsecured Notes (Due March 2018) [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, face amount | 450 | ||||
Senior unsecured notes | [1] | 449 | 448 | ||
Long-term Debt [Member] | 7.375% Senior Unsecured Notes (Due March 2020) [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, face amount | 40 | ||||
Senior unsecured notes | [1] | 40 | 40 | ||
Long-term Debt [Member] | 5.625% Senior Unsecured Notes (Due March 2021) [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, face amount | 250 | ||||
Senior unsecured notes | [1] | 247 | 247 | ||
Long-term Debt [Member] | 4.25% Senior Unsecured Notes (Due March 2022) [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, face amount | 650 | ||||
Senior unsecured notes | [1],[6] | 648 | 648 | ||
Unamortized gains from the settlement of a derivative | (2) | ||||
Derivative, Additional Amount to Hedge Item | 3 | ||||
Long-term Debt [Member] | 3.90% Senior Unsecured Notes (Due March 2023) [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, face amount | 400 | ||||
Senior unsecured notes | [1],[7] | 408 | 410 | ||
Unamortized gains from the settlement of a derivative | (11) | ||||
Derivative, Additional Amount to Hedge Item | 13 | ||||
Long-term Debt [Member] | 5.10 % Senior Unsecured Notes ( Due October 2025) [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, face amount | 350 | ||||
Senior unsecured notes | [1],[8] | 338 | $ 0 | ||
Unamortized gains from the settlement of a derivative | $ 10 | ||||
[1] | The carrying amounts of the senior unsecured notes are net of unamortized discount of $14 million as of December 31, 2015 and 2014. | ||||
[2] | Represents non-recourse debt that is securitized through bankruptcy-remote special purpose entities (“SPEs”), the creditors of which have no recourse to the Company for principal and interest. These outstanding borrowings (which legally are not liabilities of the Company) are collateralized by $2,576 million and $2,629 million of underlying gross vacation ownership contract receivables and related assets (which legally are not assets of the Company) as of December 31, 2015 and 2014, respectively. | ||||
[3] | The Company considers outstanding borrowings under its commercial paper programs to be a reduction of the available capacity of its revolving credit facility. | ||||
[4] | Classified as long-term as the Company has the intent to refinance such debt on a long-term basis and the ability to do so with its revolving credit facility. | ||||
[5] | Includes $1 million and $2 million of unamortized gains from the settlement of a derivative as of December 31, 2015 and 2014, respectively. | ||||
[6] | Includes unamortized gains from the settlement of a derivative in the amount of $2 million as of December 31, 2015. As of December 31, 2014, includes a $3 million increase in the carrying value resulting from a fair value hedge derivative. | ||||
[7] | Includes unamortized gains from the settlement of a derivative in the amount of $11 million as of December 31, 2015. As of December 31, 2014, includes a $13 million increase in the carrying value resulting from a fair value hedge derivative. | ||||
[8] | Includes unamortized losses from the settlement of a derivative in the amount of $10 million as of December 31, 2015. |
Long-Term Debt And Borrowing 88
Long-Term Debt And Borrowing Arrangements (Summary Of Outstanding Debt Maturities) (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 | |
Debt Instrument [Line Items] | |||
Within 1 year | $ 569 | ||
Between 1 and 2 years | 565 | ||
Between 2 and 3 years | 869 | ||
Between 3 and 4 years | 218 | ||
Between 4 and 5 years | 380 | ||
Thereafter | 2,607 | ||
Long-term debt outstanding | 5,208 | $ 5,053 | |
Securitized Vacation Ownership Debt [Member] | |||
Debt Instrument [Line Items] | |||
Within 1 year | 209 | ||
Between 1 and 2 years | 235 | ||
Between 2 and 3 years | 393 | ||
Between 3 and 4 years | 205 | ||
Between 4 and 5 years | 212 | ||
Thereafter | 876 | ||
Secured debt | 2,130 | 2,165 | |
Long-term Debt [Member] | |||
Debt Instrument [Line Items] | |||
Within 1 year | [1] | 360 | |
Between 1 and 2 years | 330 | ||
Between 2 and 3 years | 476 | ||
Between 3 and 4 years | 13 | ||
Between 4 and 5 years | 168 | ||
Thereafter | 1,731 | ||
Total long-term debt | $ 3,078 | $ 2,888 | |
[1] | Includes $316 million of senior unsecured notes that the Company classified as long-term debt as it has the intent to refinance such debt on a long-term basis and the ability to do so with its revolving credit facility. |
Long-Term Debt And Borrowing 89
Long-Term Debt And Borrowing Arrangements (Summary Of Available Capacity Under Borrowing Arrangements) (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 | |
Debt Instrument [Line Items] | |||
Letters of credit outstanding, amount | $ 63 | $ 69 | |
Securitized Bank Conduit Facility [Member] | |||
Debt Instrument [Line Items] | |||
Total Capacity | [1] | 650 | |
Revolving credit facility | [1] | 239 | |
Available Capacity | [1] | 411 | |
Revolving Credit Facility [Member] | |||
Debt Instrument [Line Items] | |||
Total Capacity | 1,500 | ||
Revolving credit facility | 7 | ||
Letters of credit outstanding, amount | 1 | $ 2 | |
Commercial Paper | [2] | 109 | |
Revolving credit facility, remaining borrowing capacity | $ 1,383 | ||
[1] | The capacity of this facility is subject to the Company’s ability to provide additional assets to collateralize additional securitized borrowings. | ||
[2] | The Company considers outstanding borrowings under its commercial paper programs to be a reduction of the available capacity of its revolving credit facility. |
Variable Interest Entities (Nar
Variable Interest Entities (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Schedule Of Transfer And Financial Assets [Line Items] | |||
Conveyed property and equipment | $ 222 | $ 235 | $ 238 |
Property and equipment transferred to VOI Inventory | 70 | 65 | |
Midtown 45, NYC Property [Member] | |||
Schedule Of Transfer And Financial Assets [Line Items] | |||
Conveyed property and equipment | 23 | 51 | |
Property and equipment transferred to VOI Inventory | 55 | 24 | |
Non Securitized Receivable [Member] | |||
Schedule Of Transfer And Financial Assets [Line Items] | |||
Non-securitized contract receivables | $ 829 | $ 760 |
Variable Interest Entities (Ass
Variable Interest Entities (Assets And Liabilities Of Vacation Ownership SPEs) (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Schedule Of Transfer And Financial Assets [Line Items] | ||||
Securitized contract receivables, gross | $ 2,710 | $ 2,691 | ||
Total assets | 9,716 | 9,679 | $ 9,741 | |
Total liabilities | 8,763 | 8,422 | ||
Securitized contract receivables, net, current | 272 | 285 | ||
Securitized contract receivables, net, non-current | 2,438 | 2,406 | ||
Securitized restricted cash, current | 73 | 75 | ||
Vacation Ownership SPEs [Member] | ||||
Schedule Of Transfer And Financial Assets [Line Items] | ||||
Securitized contract receivables, net, current | 248 | 256 | ||
Securitized contract receivables, net, non-current | 2,214 | 2,256 | ||
Securitized restricted cash, current | 73 | 75 | ||
Securitized restricted cash, non-current | 19 | 21 | ||
Deferred financing cost related to securitized debt | 27 | 30 | ||
Securitized conduit facilities, current | 209 | 214 | ||
Securitized conduit facilities, long-term | 1,921 | 1,951 | ||
Variable Interest Entity, Primary Beneficiary [Member] | ||||
Schedule Of Transfer And Financial Assets [Line Items] | ||||
SPE assets in excess of SPE liabilities | 444 | 463 | ||
Variable Interest Entity, Primary Beneficiary [Member] | Vacation Ownership SPEs [Member] | ||||
Schedule Of Transfer And Financial Assets [Line Items] | ||||
Securitized contract receivables, gross | [1] | 2,462 | 2,512 | |
Securitized restricted cash | [2] | 92 | 96 | |
Interest receivables on securitized contract receivables | [3] | 20 | 20 | |
Other assets | [4] | 2 | 1 | |
Total assets | [5] | 2,576 | 2,629 | |
Securitized term notes | [6] | 1,891 | 1,962 | |
Securitized conduit facilities | [6] | 239 | 203 | |
Other liabilities | [7] | 2 | 1 | |
Total liabilities | 2,132 | 2,166 | ||
SPE assets in excess of SPE liabilities | $ 444 | $ 463 | ||
[1] | Included in current ($248 million and $256 million as of December 31, 2015 and 2014, respectively) and non-current ($2,214 million and $2,256 million as of December 31, 2015 and 2014, respectively) vacation ownership contract receivables on the Consolidated Balance Sheets. | |||
[2] | Included in other current assets ($73 million and $75 million as of December 31, 2015 and 2014, respectively) and other non-current assets ($19 million and $21 million as of December 31, 2015 and 2014, respectively) on the Consolidated Balance Sheets. | |||
[3] | Included in trade receivables, net on the Consolidated Balance Sheets. | |||
[4] | Primarily includes a security investment asset, which is included in other non-current assets on the Consolidated Balance Sheets. | |||
[5] | Excludes deferred financing costs of $27 million and $30 million as of December 31, 2015 and 2014, respectively, related to securitized debt. | |||
[6] | Included in current ($209 million and $214 million as of December 31, 2015 and 2014, respectively) and long-term ($1,921 million and $1,951 million as of December 31, 2015 and 2014, respectively) securitized vacation ownership debt on the Consolidated Balance Sheets. | |||
[7] | Primarily includes accrued interest on securitized debt, which is included in accrued expenses and other current liabilities on the Consolidated Balance Sheets. |
Variable Interest Entities (Sum
Variable Interest Entities (Summary Of Total Vacation Ownership Receivables And Other Securitized Assets, Net Of Securitized Liabilities And Allowance For Loan Losses) (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Less: Allowance for loan losses | $ 581 | $ 581 | $ 566 | $ 497 |
Non Securitized Receivable [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Non-securitized contract receivables | 829 | 760 | ||
Variable Interest Entity, Primary Beneficiary [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
SPE assets in excess of SPE liabilities | 444 | 463 | ||
Less: Allowance for loan losses | 581 | 581 | ||
Total, net | 692 | 642 | ||
Variable Interest Entity, Primary Beneficiary [Member] | Non Securitized Receivable [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Non-securitized contract receivables | $ 829 | $ 760 |
Variable Interest Entities (S93
Variable Interest Entities (Summary of Vacation Ownership NYC, Assets and Liabilities of the SPE) (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Jan. 24, 2013 | |
Servicing Assets at Fair Value [Line Items] | |||||
Receivable for leased property and equipment | $ 1,399 | $ 1,500 | |||
Total assets | 9,716 | 9,679 | $ 9,741 | ||
Accrued expenses and other current liabilities | 827 | 749 | |||
Total liabilities | 8,763 | 8,422 | |||
Current portion of long-term debt | 44 | 47 | |||
Midtown 45, NYC Property [Member] | |||||
Servicing Assets at Fair Value [Line Items] | |||||
Current portion of long-term debt | 29 | 31 | |||
Mortgage Note - SPE [Member] | Midtown 45, NYC Property [Member] | |||||
Servicing Assets at Fair Value [Line Items] | |||||
Debt instrument, face amount | 42 | 71 | $ 115 | ||
Mandatorily Redeemable Equity - SPE [Member] | Midtown 45, NYC Property [Member] | |||||
Servicing Assets at Fair Value [Line Items] | |||||
Debt instrument, face amount | 4 | 6 | $ 9 | ||
Variable Interest Entity, Primary Beneficiary [Member] | |||||
Servicing Assets at Fair Value [Line Items] | |||||
SPE (deficit)/equity | 444 | 463 | |||
Variable Interest Entity, Primary Beneficiary [Member] | Midtown 45, NYC Property [Member] | |||||
Servicing Assets at Fair Value [Line Items] | |||||
Receivable for leased property and equipment | 47 | 64 | |||
Total assets | 47 | 64 | |||
Accrued expenses and other current liabilities | 1 | 1 | |||
Long-term debt | [1] | 46 | 77 | ||
Total liabilities | 47 | 78 | |||
SPE (deficit)/equity | $ 0 | $ (14) | |||
[1] | Represents a receivable for assets leased to the Company which are reported within property and equipment, net on the Company’s Consolidated Balance Sheets. |
Fair Value (Summary Of Assets A
Fair Value (Summary Of Assets And Liabilities Measured At Fair Value On Recurring Basis) (Details) - Recurring Basis [Member] - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 | |
Summary Of Assets And Liabilities Measured At Fair Value On Recurring Basis [Line Items] | |||
Derivative assets included in other current assets | $ 2 | $ 1 | |
Derivative assets included in other non-current assets | 18 | ||
Level 2 [Member] | Fair Value [Member] | |||
Summary Of Assets And Liabilities Measured At Fair Value On Recurring Basis [Line Items] | |||
Derivative assets | 2 | 19 | |
Derivative liabilities | 3 | 7 | |
Level 2 [Member] | Fair Value [Member] | Interest Rate Contracts [Member] | |||
Summary Of Assets And Liabilities Measured At Fair Value On Recurring Basis [Line Items] | |||
Derivative assets | [1] | 0 | 18 |
Derivative liabilities | [2],[3] | 0 | 4 |
Level 2 [Member] | Fair Value [Member] | Foreign Exchange Contracts [Member] | |||
Summary Of Assets And Liabilities Measured At Fair Value On Recurring Basis [Line Items] | |||
Derivative assets | [1] | 2 | 1 |
Derivative liabilities | [3] | 3 | 3 |
Level 2 [Member] | Carrying Value [Member] | |||
Summary Of Assets And Liabilities Measured At Fair Value On Recurring Basis [Line Items] | |||
Derivative assets | 2 | 19 | |
Derivative liabilities | 3 | 7 | |
Level 2 [Member] | Carrying Value [Member] | Interest Rate Contracts [Member] | |||
Summary Of Assets And Liabilities Measured At Fair Value On Recurring Basis [Line Items] | |||
Derivative assets | [1] | 0 | 18 |
Derivative liabilities | [2],[3] | 0 | 4 |
Level 2 [Member] | Carrying Value [Member] | Foreign Exchange Contracts [Member] | |||
Summary Of Assets And Liabilities Measured At Fair Value On Recurring Basis [Line Items] | |||
Derivative assets | [1] | 2 | 1 |
Derivative liabilities | [3] | $ 3 | $ 3 |
[1] | Included in other current assets ($2 million and $1 million as of December 31, 2015 and 2014, respectively) and other non-current assets ($18 million as of December 31, 2014, respectively) on the Consolidated Balance Sheets. | ||
[2] | As of December 31, 2014, primarily related to interest rate swap locks for the 2015 issuance of senior unsecured notes. | ||
[3] | Included in accrued expenses and other current liabilities on the Consolidated Balance Sheets. |
Fair Value (Carrying Amounts An
Fair Value (Carrying Amounts And Estimated Fair Values Of Financial Instruments) (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Fair Value Disclosures [Abstract] | ||
Vacation ownership contract receivables, net, carrying amount | $ 2,710 | $ 2,691 |
Vacation ownership contract receivables, net, estimated fair value | 3,272 | 3,284 |
Total debt, carrying amount | 5,208 | 5,053 |
Total debt, estimated fair value | $ 5,234 | $ 5,140 |
Financial Instruments (Narrativ
Financial Instruments (Narrative) (Details) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
California [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Percentage of vacation ownership contract receivables | 19.00% | ||
Percentage of vacation ownership interest sales revenue | 12.00% | ||
Percentage of sales revenue included in consolidated statement of income | 12.00% | 12.00% | |
Florida [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Percentage of vacation ownership interest sales revenue | 14.00% | ||
Percentage of sales revenue included in consolidated statement of income | 15.00% | 14.00% | 10.00% |
Nevada [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Percentage of vacation ownership interest sales revenue | 12.00% |
Financial Instruments (Summary
Financial Instruments (Summary Of Gain Amounts Recognized In AOCI) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Derivative [Line Items] | |||
Gain/(loss) amounts recognized in AOCI | $ 7 | $ (2) | $ 0 |
Designated Hedging Instruments [Member] | Interest Rate Contracts [Member] | |||
Derivative [Line Items] | |||
Gain/(loss) amounts recognized in AOCI | 4 | (4) | 2 |
Designated Hedging Instruments [Member] | Foreign Exchange Contracts [Member] | |||
Derivative [Line Items] | |||
Gain/(loss) amounts recognized in AOCI | $ 3 | $ 2 | $ (2) |
Financial Instruments (Summar98
Financial Instruments (Summary Of Gain/(Loss) Recognized In Income) (Details) - Non-Designated Hedging Instruments [Member] - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Derivative [Line Items] | ||||
Gain/(loss) amounts recognized in income | $ (15) | $ (21) | $ 9 | |
Foreign Exchange Contracts [Member] | ||||
Derivative [Line Items] | ||||
Gain/(loss) amounts recognized in income | [1] | (15) | (21) | 10 |
Interest Rate Contracts [Member] | ||||
Derivative [Line Items] | ||||
Gain/(loss) amounts recognized in income | [2] | $ 0 | $ 0 | $ (1) |
[1] | Included within operating expenses on the Consolidated Statements of Income, which is primarily offset by changes in the value of the underlying assets and liabilities. | |||
[2] | Included within consumer financing interest expense on the Consolidated Statements of Income. |
Commitments And Contingencies99
Commitments And Contingencies (Narrative) (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015USD ($)Surety_Providers | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | |
Commitments And Contingencies [Line Items] | |||
Total rental expense | $ 83 | $ 83 | $ 80 |
Aggregate amount of purchase commitments | 620 | ||
Letters of credit outstanding, amount | $ 63 | 69 | |
Number of surety providers of assembled commitments | Surety_Providers | 13 | ||
Assembled commitments, amount | $ 1,300 | ||
Surety amounts outstanding | 433 | ||
Litigation reserves | 29 | 24 | |
Range of possible loss, portion not accrued | $ 30 | ||
Responsible liability for separation agreement | 37.50% | ||
Wyndham Hotels And Resorts [Member] | |||
Commitments And Contingencies [Line Items] | |||
Maximum potential future payment | $ 132 | ||
Annual cap | 44 | ||
Amount of liability in guarantees | 25 | 32 | |
Guarantor offsetting asset carrying value | 35 | 39 | |
Amortization expense, contingent asset | 4 | 4 | |
Guarantor obligation recourse receivable | 32 | ||
Vacation Ownership [Member] | |||
Commitments And Contingencies [Line Items] | |||
Maximum potential future payment | 347 | ||
Amount of liability in guarantees | $ 34 | 25 | |
Uncollected assessments of reimburse percentage | 75.00% | ||
Payments related to guarantees | $ 15 | 17 | $ 18 |
Wyndham Asset Affiliation Model [Member] | |||
Commitments And Contingencies [Line Items] | |||
Maximum potential future payment | 55 | ||
InformationTechnology [Member] | |||
Commitments And Contingencies [Line Items] | |||
Aggregate amount of purchase commitments | 191 | ||
Vacation Ownership Properties [Member] | |||
Commitments And Contingencies [Line Items] | |||
Aggregate amount of purchase commitments | $ 149 | ||
Minimum [Member] | Wyndham Hotels And Resorts [Member] | |||
Commitments And Contingencies [Line Items] | |||
Guarantor obligations, term | 7 years | ||
Maximum [Member] | Wyndham Hotels And Resorts [Member] | |||
Commitments And Contingencies [Line Items] | |||
Guarantor obligations, term | 10 years | ||
Weighted Average [Member] | Wyndham Hotels And Resorts [Member] | |||
Commitments And Contingencies [Line Items] | |||
Guarantor obligations, term | 7 years | ||
Revolving Credit Facility [Member] | |||
Commitments And Contingencies [Line Items] | |||
Letters of credit outstanding, amount | $ 1 | 2 | |
Other Noncurrent Liabilities [Member] | Wyndham Hotels And Resorts [Member] | |||
Commitments And Contingencies [Line Items] | |||
Amount of liability in guarantees | 24 | 31 | |
Accrued Liabilities [Member] | Wyndham Hotels And Resorts [Member] | |||
Commitments And Contingencies [Line Items] | |||
Amount of liability in guarantees | 1 | 1 | |
Other Noncurrent Assets [Member] | Wyndham Hotels And Resorts [Member] | |||
Commitments And Contingencies [Line Items] | |||
Guarantor offsetting asset carrying value | 31 | 35 | |
Guarantor obligation recourse receivable | 31 | 26 | |
Other Current Assets [Member] | Wyndham Hotels And Resorts [Member] | |||
Commitments And Contingencies [Line Items] | |||
Guarantor offsetting asset carrying value | 4 | $ 4 | |
Guarantor obligation recourse receivable | 1 | ||
Conditional Guarantee [Member] | Wyndham Hotels And Resorts [Member] | |||
Commitments And Contingencies [Line Items] | |||
Maximum potential future payment | 45 | ||
Annual cap | $ 10 |
Commitments And Contingencie100
Commitments And Contingencies (Schedule of Operating Lease Future Minimum Payments) (Details) $ in Millions | Dec. 31, 2015USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2,016 | $ 90 |
2,017 | 70 |
2,018 | 57 |
2,019 | 47 |
2,020 | 35 |
Thereafter | 194 |
Total noncancelable operating leases | $ 493 |
Accumulated Other Comprehens101
Accumulated Other Comprehensive (Loss)/Income (Components Of Accumulated Other Comprehensive Income) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Accumulated Other Comprehensive (Loss)/Income, Pretax | |||
Beginning, Foreign Currency Translation Adjustments | $ (13) | $ 111 | $ 137 |
Period Change, Foreign Currency Transaction Adjustments | (126) | (124) | (26) |
Ending, Foreign Currency Translation Adjustments | (139) | (13) | 111 |
Beginning, Unrealized Gains/(Losses) on Cash Flow Hedges | (8) | (8) | (9) |
Period Change, Unrealized Gains/(Losses) on Cash Flow Hedges | 8 | 0 | 1 |
Ending, Unrealized Gains/(Losses) on Cash Flow Hedges | 0 | (8) | (8) |
Beginning, Defined Benefit Pension Plans | (12) | (4) | (8) |
Period Change, Defined Benefit Pension Plans | 3 | (8) | 4 |
Ending, Defined Benefit Pension Plans | (9) | (12) | (4) |
Beginning, Accumulated Other Comprehensive Income | (33) | 99 | 120 |
Period Change, Accumulated Other Comprehensive Income | (115) | (132) | (21) |
Ending, Accumulated Other Comprehensive Income | (148) | (33) | 99 |
Accumulated Other Comprehensive (Loss)/Income, Tax | |||
Beginning, Foreign Currency Translation Adjustments | 50 | 18 | 25 |
Period Change, Foreign Currency Translation Adjustments | 20 | 32 | (7) |
Ending, Foreign Currency Translation Adjustments | 70 | 50 | 18 |
Beginning, Unrelaized Gains/(Losses) on Cash Flow Hdges | 4 | 4 | 4 |
Period Change, Unrealized Gains/(Losses) on Cash Flow Hedges | (3) | 0 | 0 |
Ending, Unrelaized Gains/(Losses) on Cash Flow Hdges | 1 | 4 | 4 |
Beginning, Defined Benefit Pension Plans | 3 | 1 | 2 |
Period Change, Defined Benefit Pension Plans | 0 | 2 | (1) |
Ending, Defined Benefit Pension Plans | 3 | 3 | 1 |
Beginning, Accumulated Other Comprehensive Income | 57 | 23 | 31 |
Period Change, Accumulated Other Comprehensive Income, Tax | 17 | 34 | (8) |
Ending, Accumulated Other Comprehensive Income | 74 | 57 | 23 |
Accumulated Other Comprehensive (Loss)/Income, Net of Tax | |||
Beginning Balance, value | 1,257 | 1,625 | 1,931 |
Period change | (98) | (98) | (29) |
Ending Balance, value | 953 | 1,257 | 1,625 |
AOCI | |||
Accumulated Other Comprehensive (Loss)/Income, Net of Tax | |||
Beginning Balance, value | 24 | 122 | 151 |
Ending Balance, value | (74) | 24 | 122 |
Foreign Currency Translation Adjustments | |||
Accumulated Other Comprehensive (Loss)/Income, Net of Tax | |||
Beginning Balance, value | 37 | 129 | 162 |
Period change | (106) | (92) | (33) |
Ending Balance, value | (69) | 37 | 129 |
Unrealized Gains/(Losses) on Cash Flow Hedges | |||
Accumulated Other Comprehensive (Loss)/Income, Net of Tax | |||
Beginning Balance, value | (4) | (4) | (5) |
Period change | 5 | 0 | 1 |
Ending Balance, value | 1 | (4) | (4) |
Defined Benefit Pension Plans | |||
Accumulated Other Comprehensive (Loss)/Income, Net of Tax | |||
Beginning Balance, value | 9 | 3 | 6 |
Period change | (3) | 6 | (3) |
Ending Balance, value | $ 6 | $ 9 | $ 3 |
Stock-Based Compensation (Narra
Stock-Based Compensation (Narrative) (Details) - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Maximum shares of common stock to be awarded | 36.7 | ||
Remaining shares available | 16.3 | ||
Stock-based compensation expense | $ 58 | $ 57 | $ 53 |
Excess tax benefits available to absorb tax deficiencies | 17 | 34 | 15 |
APIC pool balance | 129 | ||
Payment of taxes for net share settlement | 42 | 64 | 31 |
RSUs and SSARs [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Granted incentive equity awards | $ 61 | $ 54 | $ 54 |
Vesting terms, in years | 4 years | 4 years | 4 years |
PSUs [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Granted incentive equity awards | $ 16 | $ 14 | $ 14 |
Stock-Based Compensation (Incen
Stock-Based Compensation (Incentive Equity Awards Granted By The Company) (Details) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | |
Dec. 31, 2015USD ($)$ / sharesshares | ||
RSUs [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested [Roll Forward] | ||
Number of Units, Beginning Balance (shares) | 2 | |
Number of Units, Granted (shares) | 0.6 | [1] |
Number of Units, Vested/exercised (shares) | (0.9) | |
Number of Units, Canceled (shares) | (0.1) | |
Number of Units, Ending Balance (shares) | 1.6 | [2],[3] |
Weighted Average Grant Price, Beginning Balance (in dollars per share) | $ / shares | $ 57.13 | |
Weighted Average Grant Price, Granted (in dollars per share) | $ / shares | 91.50 | [1] |
Weighted Average Grant Price, Vested/exercised (in dollars per share) | $ / shares | 49.35 | |
Weighted Average Grant Price, Canceled (in dollars per share) | $ / shares | 68.47 | |
Weighted Average Grant Price, Ending Balance (in dollars per share) | $ / shares | $ 73.75 | |
Shares outstanding, expected to vest | 1.6 | |
PSUs [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested [Roll Forward] | ||
Number of Units, Beginning Balance (shares) | 0.7 | |
Number of Units, Granted (shares) | 0.2 | [1] |
Number of Units, Vested/exercised (shares) | (0.3) | |
Number of Units, Ending Balance (shares) | 0.6 | [4] |
Weighted Average Grant Price, Beginning Balance (in dollars per share) | $ / shares | $ 57.99 | |
Weighted Average Grant Price, Granted (in dollars per share) | $ / shares | 91.81 | [1] |
Weighted Average Grant Price, Vested/exercised (in dollars per share) | $ / shares | 44.57 | |
Weighted Average Grant Price, Ending Balance (in dollars per share) | $ / shares | $ 73.60 | |
Unrecognized compensation expense | $ | $ 23 | |
SSARs [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested [Roll Forward] | ||
Number of Units, Beginning Balance (shares) | 0.7 | |
Number of Units, Granted (shares) | 0.1 | [1] |
Number of Units, Vested/exercised (shares) | 0 | |
Number of Units, Ending Balance (shares) | 0.8 | [2],[5] |
Weighted Average Exercise Price, Beginning Balance (in dollars per share) | $ / shares | 40.09 | |
Weighted Average Exercise Price, Granted (in dollars per share) | $ / shares | $ 91.81 | [1] |
Weighted Average Exercise Price, Vested/exercised (in dollars per share) | $ / shares | $ 0 | |
Weighted Average Exercise Price, Ending (in dollars per share) Balance | $ / shares | 46.45 | |
Shares outstanding, expected to vest | 0.6 | |
Shares, intrinsic value | $ | $ 39 | |
Weighted average remaining contractual life, years | 2 years | |
RSUs and SSARs [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested [Roll Forward] | ||
Unrecognized compensation expense | $ | $ 88 | |
Incentive equity awards vesting ratably over a period, in years | 2 years 6 months | |
[1] | Primarily represents awards granted by the Company on February 26, 2015. | |
[2] | Aggregate unrecognized compensation expense related to RSUs and SSARs was $88 million as of December 31, 2015, which is expected to be recognized over a weighted average period of 2.5 years. | |
[3] | Approximately 1.6 million RSUs outstanding as of December 31, 2015 are expected to vest over time. | |
[4] | Maximum aggregate unrecognized compensation expense was $23 million as of December 31, 2015. | |
[5] | Approximately 0.6 million SSARs are exercisable as of December 31, 2015. The Company assumes that all unvested SSARs are expected to vest over time. SSARs outstanding as of December 31, 2015 had an intrinsic value of $39 million and have a weighted average remaining contractual life of 2.0 years. |
Stock-Based Compensation (Weigh
Stock-Based Compensation (Weighted Average Grant Date Fair Value Assumptions) (Details) - SSARs [Member] - $ / shares | Feb. 26, 2015 | Feb. 27, 2014 | Mar. 01, 2013 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Grant date fair value | $ 18.55 | $ 20.36 | $ 19.93 |
Grant date strike price | $ 91.81 | $ 72.97 | $ 60.24 |
Expected volatility | 25.38% | 35.86% | 44.56% |
Expected life (years) | 5 years 1 month | 5 years 1 month | 5 years |
Risk free interest rate | 1.64% | 1.54% | 0.80% |
Projected dividend yield | 1.83% | 1.92% | 1.93% |
Employee Benefit Plans (Narrati
Employee Benefit Plans (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Defined Contribution Plan Disclosure [Line Items] | |||
Net pension liability as other non-current liabilities | $ 15 | $ 19 | |
AOCI unrecognized prior service credit | 1 | 2 | |
AOCI unrecognized loss | 8 | 13 | |
Pension expense | 3 | 3 | $ 4 |
Domestic Pension Plan of Foreign Entity [Member] | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Defined contribution benefit plans cost | 36 | 31 | 28 |
Foreign Pension Plan [Member] | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Defined contribution benefit plans cost | $ 21 | $ 21 | $ 22 |
Segment Information (Summary Of
Segment Information (Summary Of Segment Information) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |||||
Segment Information [Line Items] | |||||||||||||||
Net revenues | $ 1,311 | $ 1,564 | $ 1,398 | $ 1,262 | $ 1,231 | $ 1,514 | $ 1,343 | $ 1,193 | $ 5,536 | [1] | $ 5,281 | [2] | $ 5,009 | [3] | |
EBITDA | 275 | 382 | 332 | 277 | 215 | 411 | 326 | 230 | 1,266 | 1,181 | 1,132 | ||||
Depreciation and amortization | 61 | 59 | 58 | 56 | 58 | 60 | 59 | 56 | 234 | 233 | 216 | ||||
Segment assets | 9,716 | 9,679 | 9,716 | 9,679 | 9,741 | ||||||||||
Capital expenditures | 222 | 235 | 238 | ||||||||||||
Other | 312 | 306 | 276 | ||||||||||||
Corporate and Other [Member] | |||||||||||||||
Segment Information [Line Items] | |||||||||||||||
Net revenues | [4] | (71) | [1] | (62) | [2] | (59) | [3] | ||||||||
EBITDA | [4] | (137) | (141) | (122) | |||||||||||
Depreciation and amortization | [4] | 28 | 29 | 28 | |||||||||||
Segment assets | [4] | 220 | 285 | 220 | 285 | 208 | |||||||||
Capital expenditures | [4] | 22 | 21 | 40 | |||||||||||
Lodging [Member] | |||||||||||||||
Segment Information [Line Items] | |||||||||||||||
Net revenues | 314 | 357 | 334 | 292 | 267 | 315 | 283 | 237 | |||||||
EBITDA | 94 | 83 | 96 | 76 | 77 | 100 | 87 | 64 | |||||||
Intersegment revenues | 71 | 62 | 59 | ||||||||||||
Intersegment Licensing Fee | 57 | 41 | 39 | ||||||||||||
Revenue from Owned Hotels | 8 | 8 | 8 | ||||||||||||
Intercompany management fee revenues | 7 | 6 | |||||||||||||
Other | 6 | 6 | 6 | ||||||||||||
Lodging [Member] | Operating Segments [Member] | |||||||||||||||
Segment Information [Line Items] | |||||||||||||||
Net revenues | 1,297 | [1] | 1,101 | [2] | 1,027 | [3] | |||||||||
EBITDA | 349 | 327 | 279 | ||||||||||||
Depreciation and amortization | 69 | 61 | 54 | ||||||||||||
Segment assets | 1,908 | 1,835 | 1,908 | 1,835 | 1,843 | ||||||||||
Capital expenditures | 52 | 55 | 51 | ||||||||||||
Destination Network [Member] | |||||||||||||||
Segment Information [Line Items] | |||||||||||||||
Net revenues | 310 | 476 | 383 | 369 | 311 | 512 | 402 | 379 | |||||||
EBITDA | 44 | 134 | 84 | 105 | 2 | 159 | 89 | 85 | |||||||
Destination Network [Member] | Operating Segments [Member] | |||||||||||||||
Segment Information [Line Items] | |||||||||||||||
Net revenues | 1,538 | [1] | 1,604 | [2] | 1,526 | [3] | |||||||||
EBITDA | 367 | 335 | 356 | ||||||||||||
Depreciation and amortization | 90 | 96 | 87 | ||||||||||||
Segment assets | 2,669 | 2,703 | 2,669 | 2,703 | 2,878 | ||||||||||
Capital expenditures | 67 | 74 | 81 | ||||||||||||
Vacation Ownership [Member] | |||||||||||||||
Segment Information [Line Items] | |||||||||||||||
Net revenues | 706 | 750 | 699 | 617 | 668 | 704 | 673 | 593 | |||||||
EBITDA | 174 | $ 200 | $ 182 | $ 130 | 172 | $ 188 | $ 185 | $ 115 | |||||||
Vacation Ownership [Member] | Operating Segments [Member] | |||||||||||||||
Segment Information [Line Items] | |||||||||||||||
Net revenues | 2,772 | [1] | 2,638 | [2] | 2,515 | [3] | |||||||||
EBITDA | 687 | 660 | 619 | ||||||||||||
Depreciation and amortization | 47 | 47 | 47 | ||||||||||||
Segment assets | $ 4,919 | $ 4,856 | 4,919 | 4,856 | 4,812 | ||||||||||
Capital expenditures | $ 81 | $ 85 | $ 66 | ||||||||||||
[1] | Includes $71 million of intercompany segment revenues in the Company’s Hotel Group segment comprised of (i) $57 million of intersegment licensing fees for use of the Wyndham trade name, (ii) $8 million of room revenues at a Company owned hotel and (iii) $6 million of other fees primarily associated with the Wyndham Rewards program. Such revenues are offset in expenses at the Company’s Vacation Ownership segment. | ||||||||||||||
[2] | Includes $62 million of intercompany segment revenues in the Company’s Hotel Group segment comprised of (i) $41 million of intersegment licensing fees for use of the Wyndham trade name, (ii) $8 million of room revenues at a Company owned hotel, (iii) $7 million of hotel management reimbursable revenues and (iv) $6 million of other fees primarily associated with the Wyndham Rewards program. Such revenues are offset in expenses at the Company’s Vacation Ownership segment. | ||||||||||||||
[3] | Includes $59 million of intercompany segment revenues in the Company’s Hotel Group segment comprised of (i) $39 million of intersegment licensing fees for use of the Wyndham trade name, (ii) $8 million of room revenues at a Company owned hotel, (iii) $6 million of hotel management reimbursable fees and (iv) $6 million of other revenues primarily associated with the Wyndham Rewards program. Such revenues are offset in expenses at the Company’s Vacation Ownership segment. | ||||||||||||||
[4] | Includes the elimination of transactions between segments. |
Segment Information (Reconcilia
Segment Information (Reconciliation of Earnings Before Interest, Depreciation and Amortization To Income Before Income Taxes) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Segment Reporting [Abstract] | |||||||||||
EBITDA | $ 275 | $ 382 | $ 332 | $ 277 | $ 215 | $ 411 | $ 326 | $ 230 | $ 1,266 | $ 1,181 | $ 1,132 |
Depreciation and amortization | 61 | 59 | 58 | 56 | 58 | 60 | 59 | 56 | 234 | 233 | 216 |
Interest expense | 37 | 33 | 30 | 26 | 29 | 28 | 29 | 27 | 125 | 113 | 131 |
Early extinguishment of debt | 0 | 0 | 111 | ||||||||
Interest income | (2) | (2) | (2) | (3) | (4) | (2) | (3) | (2) | (9) | (10) | (9) |
Income before income taxes | 179 | 292 | 246 | 198 | 132 | 325 | 241 | 149 | 916 | 845 | 683 |
Provision for income taxes | 39 | 102 | 87 | 76 | 51 | 119 | 88 | 59 | 304 | 316 | 250 |
Net income | 612 | 529 | 433 | ||||||||
Net income attributable to noncontrolling interest | 0 | 0 | (1) | ||||||||
Net Income attributable to Wyndham shareholders | $ 140 | $ 190 | $ 159 | $ 122 | $ 81 | $ 206 | $ 153 | $ 90 | $ 612 | $ 529 | $ 432 |
Segment Information (Schedule o
Segment Information (Schedule of Geographic Segment Information) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||||
Segment Information [Line Items] | ||||||||||||||
Net revenues | $ 1,311 | $ 1,564 | $ 1,398 | $ 1,262 | $ 1,231 | $ 1,514 | $ 1,343 | $ 1,193 | $ 5,536 | [1] | $ 5,281 | [2] | $ 5,009 | [3] |
Net long-lived assets | 4,085 | 4,165 | 4,085 | 4,165 | 4,297 | |||||||||
United States | ||||||||||||||
Segment Information [Line Items] | ||||||||||||||
Net revenues | 4,248 | 3,892 | 3,765 | |||||||||||
Net long-lived assets | 2,992 | 3,011 | 2,992 | 3,011 | 3,066 | |||||||||
United Kingdom | ||||||||||||||
Segment Information [Line Items] | ||||||||||||||
Net revenues | 272 | 298 | 266 | |||||||||||
Net long-lived assets | 410 | 433 | 410 | 433 | 459 | |||||||||
Netherlands | ||||||||||||||
Segment Information [Line Items] | ||||||||||||||
Net revenues | 239 | 276 | 250 | |||||||||||
Net long-lived assets | 285 | 317 | 285 | 317 | 372 | |||||||||
All Other Countries [Member] | ||||||||||||||
Segment Information [Line Items] | ||||||||||||||
Net revenues | 777 | 815 | 728 | |||||||||||
Net long-lived assets | $ 398 | $ 404 | $ 398 | $ 404 | $ 400 | |||||||||
[1] | Includes $71 million of intercompany segment revenues in the Company’s Hotel Group segment comprised of (i) $57 million of intersegment licensing fees for use of the Wyndham trade name, (ii) $8 million of room revenues at a Company owned hotel and (iii) $6 million of other fees primarily associated with the Wyndham Rewards program. Such revenues are offset in expenses at the Company’s Vacation Ownership segment. | |||||||||||||
[2] | Includes $62 million of intercompany segment revenues in the Company’s Hotel Group segment comprised of (i) $41 million of intersegment licensing fees for use of the Wyndham trade name, (ii) $8 million of room revenues at a Company owned hotel, (iii) $7 million of hotel management reimbursable revenues and (iv) $6 million of other fees primarily associated with the Wyndham Rewards program. Such revenues are offset in expenses at the Company’s Vacation Ownership segment. | |||||||||||||
[3] | Includes $59 million of intercompany segment revenues in the Company’s Hotel Group segment comprised of (i) $39 million of intersegment licensing fees for use of the Wyndham trade name, (ii) $8 million of room revenues at a Company owned hotel, (iii) $6 million of hotel management reimbursable fees and (iv) $6 million of other revenues primarily associated with the Wyndham Rewards program. Such revenues are offset in expenses at the Company’s Vacation Ownership segment. |
Restructuring, Impairment an109
Restructuring, Impairment and Other Charges (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | |||||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring | $ 6 | $ 11 | $ 10 | |||
Restructuring Reserve, Accrual Adjustment | (2) | (6) | (1) | |||
Cash payments | (10) | (6) | (10) | |||
Foreign currency translation adjustments | (126) | (124) | (26) | |||
Loss on contract termination | 14 | |||||
Destination Network [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Loss on sale of business | (20) | |||||
Net proceeds from business sold | 1 | |||||
Net Assets | 11 | |||||
Foreign currency translation adjustments | 6 | |||||
Indemnification liability | 4 | |||||
Non-cash impairment charges | 7 | |||||
Wyndham Hotels And Resorts [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Non-cash impairment charges | 7 | 8 | 8 | |||
Personnel-Related [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring | 5 | [1] | 6 | [2] | 8 | [3] |
Restructuring Reserve, Accrual Adjustment | 0 | [1] | 0 | (2) | [4] | |
Cash payments | (8) | (6) | (6) | |||
Personnel-Related [Member] | Destination Network [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring | 1 | 4 | ||||
Restructuring Reserve, Accrual Adjustment | 1 | |||||
Personnel-Related [Member] | Wyndham Hotels And Resorts [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring | 3 | 2 | ||||
Restructuring reserve, non-cash | 1 | |||||
Contract Termination [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring | 0 | 1 | 1 | |||
Restructuring Reserve, Accrual Adjustment | (1) | [5] | (1) | [6] | 0 | |
Cash payments | 0 | 0 | 0 | |||
Facility-Related [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring | 0 | 0 | 2 | |||
Restructuring Reserve, Accrual Adjustment | 0 | 0 | 1 | [7] | ||
Cash payments | (2) | 0 | (4) | |||
Restructuring Plan 2015 [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring | 8 | |||||
Restructuring reserve, non-cash | 1 | |||||
Restructuring liability expected to be paid | 3 | |||||
Cash payments | (2) | |||||
Restructuring Plan 2015 [Member] | Personnel-Related [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring | 7 | |||||
Restructuring Reserve, Accrual Adjustment | (2) | |||||
Restructuring Plan 2014 [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring reserve, non-cash | 5 | |||||
Restructuring Reserve, Accrual Adjustment | 1 | |||||
Cash payments | (6) | |||||
Restructuring Plan 2014 [Member] | Personnel-Related [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring | 6 | |||||
Restructuring Plan 2014 [Member] | Contract Termination [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring | 1 | |||||
Restructuring Plan 2013 [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring reserve, non-cash | 1 | |||||
Cash payments | (5) | (2) | ||||
Restructuring Plan 2013 [Member] | Personnel-Related [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring | 8 | |||||
Restructuring Plan 2013 [Member] | Contract Termination [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring | $ 1 | |||||
Restructuring Reserve, Accrual Adjustment | $ (1) | |||||
Restructuring Plans, Additional [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring liability expected to be paid | 2 | |||||
Cash payments | $ (2) | |||||
[1] | Represents severance costs of $3 million, $1 million and $1 million at the Company’s hotel group, destination network and vacation ownership businesses, respectively, resulting from a reduction of 361 employees. | |||||
[2] | Represents severance costs of $4 million and $2 million at the Company’s destination network and hotel group businesses, respectively, resulting from a reduction of 122 employees. | |||||
[3] | Represents severance costs incurred at the Company’s hotel group business resulting from a reduction of 105 employees. | |||||
[4] | Includes $1 million of a reversal of previously recorded expenses at the Company’s destination network business and $1 million of a non-cash settlement at the Company’s hotel group business. | |||||
[5] | Represents a reversal of a portion of previously recorded expenses at the Company’s destination network business. | |||||
[6] | Represents a reversal of previously recorded expenses at the Company’s hotel group business. | |||||
[7] | Represents a non-cash adjustment to the liability at the Company’s vacation ownership business. |
Restructuring, Impairment an110
Restructuring, Impairment and Other Charges (Activity Related To The Restructuring Costs) (Details) $ in Millions | 12 Months Ended | |||||
Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | ||||
Restructuring Cost and Reserve [Roll Forward] | ||||||
Liability beginning | $ 11 | $ 11 | $ 11 | |||
Restructuring cost | 6 | 11 | 10 | |||
Cash payments | (10) | (6) | (10) | |||
Other | 2 | 6 | 1 | |||
Liability endinhg | $ 5 | $ 11 | $ 11 | |||
Number of positions eliminated | 361 | 122 | 105 | |||
Personnel-Related [Member] | ||||||
Restructuring Cost and Reserve [Roll Forward] | ||||||
Liability beginning | $ 6 | $ 6 | $ 6 | |||
Restructuring cost | 5 | [1] | 6 | [2] | 8 | [3] |
Cash payments | (8) | (6) | (6) | |||
Other | 0 | [1] | 0 | 2 | [4] | |
Liability endinhg | 3 | 6 | 6 | |||
Facility-Related [Member] | ||||||
Restructuring Cost and Reserve [Roll Forward] | ||||||
Liability beginning | 4 | 4 | 5 | |||
Restructuring cost | 0 | 0 | 2 | |||
Cash payments | (2) | 0 | (4) | |||
Other | 0 | 0 | (1) | [5] | ||
Liability endinhg | 2 | 4 | 4 | |||
Contract Termination [Member] | ||||||
Restructuring Cost and Reserve [Roll Forward] | ||||||
Liability beginning | 1 | 1 | 0 | |||
Restructuring cost | 0 | 1 | 1 | |||
Cash payments | 0 | 0 | 0 | |||
Other | 1 | [6] | 1 | [7] | 0 | |
Liability endinhg | 0 | 1 | 1 | |||
Asset Impairment [Member] | ||||||
Restructuring Cost and Reserve [Roll Forward] | ||||||
Liability beginning | 0 | 0 | ||||
Restructuring cost | 1 | [8] | 5 | [9] | ||
Cash payments | 0 | 0 | ||||
Other | 1 | [8] | 5 | [9] | ||
Liability endinhg | 0 | 0 | 0 | |||
Restructuring Costs Recognized [Member] | ||||||
Restructuring Cost and Reserve [Roll Forward] | ||||||
Restructuring cost | 6 | 12 | $ 11 | |||
Destination Network [Member] | Personnel-Related [Member] | ||||||
Restructuring Cost and Reserve [Roll Forward] | ||||||
Restructuring cost | 1 | 4 | ||||
Other | (1) | |||||
Wyndham Hotels And Resorts [Member] | Personnel-Related [Member] | ||||||
Restructuring Cost and Reserve [Roll Forward] | ||||||
Restructuring cost | 3 | 2 | ||||
Restructuring reserve, non-cash | $ 1 | |||||
Vacation Ownership [Member] | Personnel-Related [Member] | ||||||
Restructuring Cost and Reserve [Roll Forward] | ||||||
Restructuring cost | $ 1 | |||||
[1] | Represents severance costs of $3 million, $1 million and $1 million at the Company’s hotel group, destination network and vacation ownership businesses, respectively, resulting from a reduction of 361 employees. | |||||
[2] | Represents severance costs of $4 million and $2 million at the Company’s destination network and hotel group businesses, respectively, resulting from a reduction of 122 employees. | |||||
[3] | Represents severance costs incurred at the Company’s hotel group business resulting from a reduction of 105 employees. | |||||
[4] | Includes $1 million of a reversal of previously recorded expenses at the Company’s destination network business and $1 million of a non-cash settlement at the Company’s hotel group business. | |||||
[5] | Represents a non-cash adjustment to the liability at the Company’s vacation ownership business. | |||||
[6] | Represents a reversal of a portion of previously recorded expenses at the Company’s destination network business. | |||||
[7] | Represents a reversal of previously recorded expenses at the Company’s hotel group business. | |||||
[8] | Represents the non-cash asset impairment charge associated with a facility at the Company’s destination network business. | |||||
[9] | Represents the non-cash write-off of assets related to an information technology project at the Company’s destination network business. |
Separation Adjustments And T111
Separation Adjustments And Transactions With Former Parent And Subsidiaries (Narrative) (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2015 | |
Separation Adjustments And Transactions With Former Parent And Subsidiaries [Line Items] | ||||
Responsible liability for separation agreement | 37.50% | |||
Liabilities assumed | $ 34 | $ 38 | $ 34 | |
Tax liabilities assumed | 30 | |||
Other contingent and corporate liabilities assumed | 1 | |||
Guarantee amount over contingent liability assumed | 2 | |||
Separation liabilities, current | [1] | 19 | 26 | 19 |
Separation liabilities, non-current | 15 | 15 | ||
Receivables due from former Parent and subsidiaries | 1 | $ 1 | $ 1 | |
Percentage liability for certain contingent tax liabilities | 37.50% | |||
Maximum potential future tax liability exposure | 100.00% | |||
Realogy [Member] | ||||
Separation Adjustments And Transactions With Former Parent And Subsidiaries [Line Items] | ||||
Responsible liability for separation agreement | 62.50% | |||
Cendant [Member] | ||||
Separation Adjustments And Transactions With Former Parent And Subsidiaries [Line Items] | ||||
Previously sold businesses of Cendant assumed | $ 1 | |||
Standby Letters Of Credit [Member] | Realogy [Member] | ||||
Separation Adjustments And Transactions With Former Parent And Subsidiaries [Line Items] | ||||
Standby letter of credit | $ 53 | $ 53 | ||
[1] | See Note 23 - Separation Adjustments and Transactions with Former Parent and Subsidiaries. |
Selected Quarterly Financial112
Selected Quarterly Financial Data - (unaudited) (Summary of Quarterly Financial Data) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||||||||||||
Quarterly Financial Information Data [Line Items] | ||||||||||||||||||||||
Net revenues | $ 1,311 | $ 1,564 | $ 1,398 | $ 1,262 | $ 1,231 | $ 1,514 | $ 1,343 | $ 1,193 | $ 5,536 | [1] | $ 5,281 | [2] | $ 5,009 | [3] | ||||||||
EBITDA | 275 | 382 | 332 | 277 | 215 | 411 | 326 | 230 | 1,266 | 1,181 | 1,132 | |||||||||||
Depreciation and amortization | 61 | 59 | 58 | 56 | 58 | 60 | 59 | 56 | 234 | 233 | 216 | |||||||||||
Interest expense | 37 | 33 | 30 | 26 | 29 | 28 | 29 | 27 | 125 | 113 | 131 | |||||||||||
Interest income | (2) | (2) | (2) | (3) | (4) | (2) | (3) | (2) | (9) | (10) | (9) | |||||||||||
Income before income taxes | 179 | 292 | 246 | 198 | 132 | 325 | 241 | 149 | 916 | 845 | 683 | |||||||||||
Provision for income taxes | 39 | 102 | 87 | 76 | 51 | 119 | 88 | 59 | 304 | 316 | 250 | |||||||||||
Net Income attributable to Wyndham shareholders | $ 140 | $ 190 | $ 159 | $ 122 | $ 81 | $ 206 | $ 153 | $ 90 | $ 612 | $ 529 | $ 432 | |||||||||||
Basic, price per share | $ 1.22 | $ 1.62 | $ 1.34 | $ 1.01 | $ 0.66 | $ 1.65 | $ 1.21 | $ 0.7 | $ 5.18 | $ 4.22 | $ 3.25 | |||||||||||
Diluted, price per share | $ 1.21 | $ 1.61 | $ 1.33 | $ 1 | $ 0.65 | $ 1.64 | $ 1.2 | $ 0.69 | $ 5.14 | $ 4.18 | $ 3.21 | |||||||||||
Weighted average diluted shares outstanding | 116 | 118 | 120 | 122 | 124 | 126 | 128 | 130 | 119 | 127 | 135 | |||||||||||
Lodging [Member] | ||||||||||||||||||||||
Quarterly Financial Information Data [Line Items] | ||||||||||||||||||||||
Net revenues | $ 314 | $ 357 | $ 334 | $ 292 | $ 267 | $ 315 | $ 283 | $ 237 | ||||||||||||||
EBITDA | 94 | 83 | 96 | 76 | 77 | 100 | 87 | 64 | ||||||||||||||
Destination Network [Member] | ||||||||||||||||||||||
Quarterly Financial Information Data [Line Items] | ||||||||||||||||||||||
Net revenues | 310 | 476 | 383 | 369 | 311 | 512 | 402 | 379 | ||||||||||||||
EBITDA | 44 | 134 | 84 | 105 | 2 | 159 | 89 | 85 | ||||||||||||||
Vacation Ownership [Member] | ||||||||||||||||||||||
Quarterly Financial Information Data [Line Items] | ||||||||||||||||||||||
Net revenues | 706 | 750 | 699 | 617 | 668 | 704 | 673 | 593 | ||||||||||||||
EBITDA | 174 | 200 | 182 | 130 | 172 | 188 | 185 | 115 | ||||||||||||||
Corporate and Other [Member] | ||||||||||||||||||||||
Quarterly Financial Information Data [Line Items] | ||||||||||||||||||||||
Net revenues | (19) | [4] | (19) | [4] | (18) | [4] | (16) | [4] | (15) | [5] | (17) | [5] | (15) | [5] | (16) | [5] | ||||||
EBITDA | $ (37) | [4] | $ (35) | [4] | $ (30) | [4] | $ (34) | [4] | $ (36) | [5] | $ (36) | [5] | $ (35) | [5] | $ (34) | [5] | ||||||
[1] | Includes $71 million of intercompany segment revenues in the Company’s Hotel Group segment comprised of (i) $57 million of intersegment licensing fees for use of the Wyndham trade name, (ii) $8 million of room revenues at a Company owned hotel and (iii) $6 million of other fees primarily associated with the Wyndham Rewards program. Such revenues are offset in expenses at the Company’s Vacation Ownership segment. | |||||||||||||||||||||
[2] | Includes $62 million of intercompany segment revenues in the Company’s Hotel Group segment comprised of (i) $41 million of intersegment licensing fees for use of the Wyndham trade name, (ii) $8 million of room revenues at a Company owned hotel, (iii) $7 million of hotel management reimbursable revenues and (iv) $6 million of other fees primarily associated with the Wyndham Rewards program. Such revenues are offset in expenses at the Company’s Vacation Ownership segment. | |||||||||||||||||||||
[3] | Includes $59 million of intercompany segment revenues in the Company’s Hotel Group segment comprised of (i) $39 million of intersegment licensing fees for use of the Wyndham trade name, (ii) $8 million of room revenues at a Company owned hotel, (iii) $6 million of hotel management reimbursable fees and (iv) $6 million of other revenues primarily associated with the Wyndham Rewards program. Such revenues are offset in expenses at the Company’s Vacation Ownership segment. | |||||||||||||||||||||
[4] | Includes the elimination of transactions between segments. | |||||||||||||||||||||
[5] | Includes the elimination of transactions between segments. |
Subsequent Events (Narrative) (
Subsequent Events (Narrative) (Details) - USD ($) $ / shares in Units, $ in Billions | Feb. 08, 2016 | Oct. 22, 2014 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2015 | [1] | Dec. 31, 2014 | [1] | Dec. 31, 2013 | [1] |
Subsequent Event [Line Items] | ||||||||||||||||||||
Increase in authorized amount for share repurchase | $ 1 | |||||||||||||||||||
Cash dividends per share | $ 0.42 | $ 0.42 | $ 0.42 | $ 0.42 | $ 0.35 | $ 0.35 | $ 0.35 | $ 0.35 | $ 0.29 | $ 0.29 | $ 0.29 | $ 0.29 | $ 1.68 | $ 1.40 | $ 1.16 | |||||
Subsequent Event [Member] | ||||||||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||||||||
Increase in authorized amount for share repurchase | $ 1 | |||||||||||||||||||
Cash dividends per share | $ 0.50 | |||||||||||||||||||
[1] | For each of the quarterly periods ended March 31, June 30, September 30 and December 31, 2015, 2014 and 2013, the Company paid cash dividends of $0.42, $0.35 and $0.29 per share, respectively. |