Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Jan. 31, 2022 | Jun. 30, 2021 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2021 | ||
Document Transition Report | false | ||
Entity File Number | 001-32876 | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 20-0052541 | ||
Entity Address, Address Line One | 6277 Sea Harbor Drive | ||
Entity Address, City or Town | Orlando, | ||
Entity Address, State or Province | FL | ||
Entity Address, Postal Zip Code | 32821 | ||
City Area Code | 407 | ||
Local Phone Number | 626-5200 | ||
Title of 12(b) Security | Common Stock | ||
Trading Symbol | TNL | ||
Security Exchange Name | NYSE | ||
Entity Well-know Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 5,055,766,540 | ||
Entity Common Stock, Shares Outstanding | 85,712,356 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2021 | ||
Document Fiscal Period Focus | FY | ||
Entity Central Index Key | 0001361658 | ||
Current Fiscal Year End Date | --12-31 | ||
ICFR Auditor Attestation Flag | true | ||
Entity Registrant Name | Travel & Leisure Co. | ||
Auditor Name | Deloitte & Touche LLP | ||
Auditor Location | Tampa, Florida | ||
Auditor Firm ID | 34 |
Consolidated Statements Of Inco
Consolidated Statements Of Income - USD ($) $ in Millions | 12 Months Ended | |||||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||||
Net Revenues | ||||||
Net revenues | $ 3,134 | $ 2,160 | $ 4,043 | |||
Expenses | ||||||
Operating | 1,359 | 1,130 | 1,648 | |||
Cost of vacation ownership interests | 157 | 2 | 186 | |||
Consumer financing interest | 81 | 101 | 106 | |||
General and administrative | 434 | 398 | 491 | |||
Marketing | 363 | 329 | 666 | |||
Depreciation and amortization | 124 | 126 | 121 | |||
COVID-19 related costs | 4 | 88 | 0 | |||
Separation and related costs | [1] | 0 | 0 | 45 | ||
Restructuring | (1) | 39 | 9 | |||
Asset impairments/(recovery) | (5) | [2] | 52 | 27 | [2] | |
Costs and Expenses, Total | 2,516 | 2,265 | 3,299 | |||
Gain on sale of business | 0 | 0 | (68) | |||
Operating income/(loss) | 618 | (105) | 812 | |||
Interest expense | 198 | 192 | 162 | |||
Interest (income) | (3) | (7) | (7) | |||
Other (income), net | (6) | (14) | (23) | |||
Income/(loss) before income taxes | 429 | (276) | 680 | |||
Provision/(benefit) for income taxes | 116 | (23) | 191 | |||
Net income/(loss) from continuing operations | 313 | (253) | 489 | |||
(Loss)/gain on disposal of discontinued business, net of income taxes | (5) | (2) | 18 | |||
Net income/(loss) attributable to Travel + Leisure Co. shareholders | $ 308 | $ (255) | $ 507 | |||
Basic earnings/(loss) per share | ||||||
Continuing operations | [3] | $ 3.62 | $ (2.95) | $ 5.31 | ||
Discontinued operations | [3] | (0.06) | (0.02) | 0.19 | ||
Basic earnings/(loss) per share | [3] | 3.56 | (2.97) | 5.50 | ||
Diluted earnings/(loss) per share | ||||||
Continuing operations | [3] | 3.58 | (2.95) | 5.29 | ||
Discontinued operations | [3] | (0.06) | (0.02) | 0.19 | ||
Diluted earnings/(loss) per share | [3] | $ 3.52 | $ (2.97) | $ 5.48 | ||
Service and membership fees | ||||||
Net Revenues | ||||||
Net revenues | $ 1,502 | $ 1,139 | $ 1,606 | |||
Vacation Ownership Interest Sales [Member] | ||||||
Net Revenues | ||||||
Net revenues | 1,176 | 505 | 1,848 | |||
Consumer Financing [Member] | ||||||
Net Revenues | ||||||
Net revenues | 404 | 467 | 515 | |||
Other | ||||||
Net Revenues | ||||||
Net revenues | $ 52 | $ 49 | $ 74 | |||
[1] | Includes $4 million of stock-based compensation expenses for the year ended December 31, 2019. | |||||
[2] | Includes $5 million of bad debt expense related to a note receivable for the year ended December 31, 2020, included in Operating expenses on the Consolidated Statements of Income/(Loss). | |||||
[3] | Earnings/(loss) per share amounts are calculated using whole numbers. |
Consolidated Statements Of Comp
Consolidated Statements Of Comprehensive Income - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Net Income | |||
Net income/(loss) attributable to Travel + Leisure Co. shareholders | $ 308 | $ (255) | $ 507 |
Other comprehensive (loss)/income, net of tax | |||
Foreign currency translation adjustments, net of tax | (32) | 37 | 0 |
Defined benefit pension plans, net of tax | 0 | (1) | 0 |
Other comprehensive (loss)/income, net of tax | (32) | 36 | 0 |
Comprehensive income/(loss) attributable to Travel + Leisure Co. shareholders | $ 276 | $ (219) | $ 507 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Debt | $ 3,379 | $ 4,184 |
Assets | ||
Cash and cash equivalents | 369 | 1,196 |
Restricted cash (VIE - $84 as of 2021 and $92 as of 2020) | 128 | 121 |
Trade receivables, net | 131 | 115 |
Vacation ownership contract receivables, net (VIE - $2,061 as of 2021 and $2,458 as of 2020) | 2,309 | 2,482 |
Inventory | 1,216 | 1,347 |
Prepaid expenses | 227 | 204 |
Property and equipment, net | 689 | 666 |
Goodwill | 961 | 964 |
Other intangibles, net | 219 | 131 |
Other assets | 339 | 387 |
Total assets | 6,588 | 7,613 |
Liabilities and (deficit) | ||
Accounts payable | 62 | 62 |
Accrued expenses and other liabilities | 939 | 929 |
Deferred income | 382 | 447 |
Non-recourse vacation ownership debt (VIE) | 1,934 | 2,234 |
Debt | 3,379 | 4,184 |
Deferred income taxes | 686 | 725 |
Total liabilities | 7,382 | 8,581 |
Commitments and contingencies (Note 20) | ||
Stockholders' (deficit): | ||
Preferred stock, $.01 par value, authorized 6,000,000 shares, none issued and outstanding | 0 | 0 |
Common stock, $.01 par value, 600,000,000 shares authorized, 222,250,970 issued as of 2021 and 221,755,960 as of 2020 | 2 | 2 |
Treasury Stock, Value | 6,534 | 6,508 |
Additional paid-in capital | 4,192 | 4,157 |
Retained earnings | 1,587 | 1,390 |
Accumulated other comprehensive loss | (48) | (16) |
Total stockholders’ (deficit) | (801) | (975) |
Noncontrolling interest | 7 | 7 |
Total (deficit) | (794) | (968) |
Total liabilities and (deficit) | $ 6,588 | $ 7,613 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Restricted cash (VIE - $84 as of 2021 and $92 as of 2020) | $ 128 | $ 121 |
Vacation ownership contract receivables, net (VIE - $2,061 as of 2021 and $2,458 as of 2020) | 2,309 | 2,482 |
Non-recourse vacation ownership debt (VIE) | $ 1,934 | $ 2,234 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 6,000,000 | 6,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in shares) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 600,000,000 | 600,000,000 |
Common Stock, Shares, Issued (in shares) | 222,250,970 | 221,755,960 |
Treasury stock, shares (in shares) | 136,320,631 | 135,824,676 |
Variable Interest Entity, Primary Beneficiary | ||
Restricted cash (VIE - $84 as of 2021 and $92 as of 2020) | $ 84 | $ 92 |
Vacation ownership contract receivables, net (VIE - $2,061 as of 2021 and $2,458 as of 2020) | 2,061 | 2,458 |
Non-recourse vacation ownership debt (VIE) | $ 1,934 | $ 2,234 |
Consolidated Statements Of Cash
Consolidated Statements Of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Operating Activities | |||
Net income/(loss) attributable to Travel + Leisure Co. shareholders | $ 308 | $ (255) | $ 507 |
Loss/(gain) on disposal of discontinued business, net of income taxes | 5 | 2 | (18) |
Adjustments to reconcile net income/(loss) to net cash provided by operating activities: | |||
Provision for loan losses | 129 | 415 | 479 |
Depreciation and amortization | 124 | 126 | 121 |
Stock-based compensation | 32 | 20 | 24 |
Non-cash interest | 22 | 23 | 21 |
Non-cash lease expense | 17 | 23 | 31 |
Gain on sale of business | 0 | 0 | (68) |
Asset impairments/(recovery) | (5) | 52 | 36 |
Deferred income taxes | (39) | (88) | 79 |
Other, net | 1 | (9) | 9 |
Net change in assets and liabilities, excluding impact of acquisitions and dispositions: | |||
Trade receivables | (15) | 30 | (15) |
Vacation ownership contract receivables | 35 | 237 | (562) |
Inventory | (6) | (119) | 13 |
Prepaid expenses | (24) | 15 | (64) |
Other assets | 32 | 23 | 1 |
Accounts payable, accrued expenses, and other liabilities | 24 | (21) | (151) |
Deferred income | (72) | (100) | 10 |
Net cash provided by operating activities - continuing operations | 568 | 374 | 453 |
Net cash used in operating activities - discontinued operations | 0 | 0 | (1) |
Net cash provided by operating activities | 568 | 374 | 452 |
Investing activities | |||
Property and equipment additions | (57) | (69) | (108) |
Acquisitions | (37) | 0 | (51) |
Proceeds from asset sales | 0 | 0 | 6 |
Proceeds from sale of business, net | 0 | 0 | 106 |
Other, net | 1 | 9 | 3 |
Net cash used in investing activities - continuing operations | (93) | (60) | (44) |
Net cash used in investing activities - discontinued operations | 0 | (5) | (22) |
Net cash used in investing activities | (93) | (65) | (66) |
Financing activities | |||
Proceeds from non-recourse vacation ownership debt | 1,419 | 1,563 | 2,253 |
Principal payments on non-recourse vacation ownership debt | (1,713) | (1,896) | (2,068) |
Proceeds from debt | 10 | 1,062 | 2,677 |
Repayments of Unsecured Debt | (562) | (519) | (2,892) |
Proceeds from notes issued and term loan | 643 | 643 | 346 |
Repayment of notes | (903) | (43) | (3) |
Repayments of vacation ownership inventory arrangement | 0 | (16) | (12) |
Dividends to shareholders | (109) | (138) | (166) |
Payment of deferred acquisition consideration | (30) | (11) | 0 |
Repurchase of common stock | (25) | (128) | (340) |
Debt issuance/modification costs | (20) | (20) | (22) |
Net share settlement of incentive equity awards | (9) | (2) | (4) |
Cash transferred to Wyndham Hotels related to Spin-off | 0 | 0 | (69) |
Proceeds from issuance of common stock | 11 | 7 | 11 |
Net cash (used in)/provided by financing activities | (1,288) | 502 | (289) |
Effect of changes in exchange rates on cash, cash equivalents and restricted cash | (7) | 4 | 1 |
Net change in cash, cash equivalents and restricted cash | (820) | 815 | 98 |
Cash, cash equivalents and restricted cash, beginning of period | 1,317 | 502 | 404 |
Cash, cash equivalents and restricted cash, end of period | 497 | 1,317 | 502 |
Less: Restricted cash | 128 | 121 | 147 |
Cash and cash equivalents | $ 369 | $ 1,196 | $ 355 |
Consolidated Statements Of Equi
Consolidated Statements Of Equity/(Deficit) - USD ($) shares in Millions, $ in Millions | Total | Common Stock | Treasury Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Non-controlling Interest |
Balance, shares at Dec. 31, 2018 | 95 | ||||||
Beginning Balance, value at Dec. 31, 2018 | $ (569) | $ 2 | $ (6,043) | $ 4,077 | $ 1,442 | $ (52) | $ 5 |
Net income/(loss) attributable to Travel + Leisure Co. shareholders | 507 | 507 | |||||
Other comprehensive income/(loss) | 0 | ||||||
Issuance of shares for RSU vesting | 0.3 | ||||||
Net share settlement of stock-based compensation | (4) | (4) | |||||
Employee stock purchase program | 0.2 | ||||||
Employee stock purchase program issuances | 11 | 11 | |||||
Change in stock-based compensation | 24 | 24 | |||||
Repurchase of common stock | (7.6) | ||||||
Repurchase of common stock | (340) | (340) | |||||
Dividends | (167) | (167) | |||||
Distribution for separation of Wyndham Hotels and adjustments related to discontinued business | 3 | 3 | |||||
Acquisition of a business | 0.2 | ||||||
Acquisition of a business | 10 | 10 | |||||
Non-controlling interest ownership change | 1 | 1 | |||||
Balance, shares at Dec. 31, 2019 | 88.1 | ||||||
Ending Balance, value at Dec. 31, 2019 | (524) | $ 2 | (6,383) | 4,118 | 1,785 | (52) | 6 |
Net income/(loss) attributable to Travel + Leisure Co. shareholders | (255) | (255) | |||||
Other comprehensive income/(loss) | 36 | 36 | |||||
Issuance of shares for RSU vesting | 0.2 | ||||||
Net share settlement of stock-based compensation | (2) | (2) | |||||
Employee stock purchase program | 0.2 | ||||||
Employee stock purchase program issuances | 7 | 7 | |||||
Change in stock-based compensation | 20 | 20 | |||||
Repurchase of common stock | (3.1) | ||||||
Repurchase of common stock | (125) | (125) | |||||
Dividends | (140) | (140) | |||||
Acquisition of a business | 0.5 | ||||||
Acquisition of a business | 14 | 14 | |||||
Non-controlling interest ownership change | 1 | 1 | |||||
Balance, shares at Dec. 31, 2020 | 85.9 | ||||||
Ending Balance, value at Dec. 31, 2020 | (968) | $ 2 | (6,508) | 4,157 | 1,390 | (16) | 7 |
Net income/(loss) attributable to Travel + Leisure Co. shareholders | 308 | 308 | |||||
Other comprehensive income/(loss) | (32) | (32) | |||||
Stock option exercises | 0.1 | ||||||
Stock option exercises | 4 | 4 | |||||
Issuance of shares for RSU vesting | 0.3 | ||||||
Net share settlement of stock-based compensation | (9) | (9) | |||||
Employee stock purchase program | 0.1 | ||||||
Employee stock purchase program issuances | 8 | 8 | |||||
Change in stock-based compensation | 32 | 32 | |||||
Repurchase of common stock | (0.5) | ||||||
Repurchase of common stock | (26) | (26) | |||||
Dividends | (111) | (111) | |||||
Balance, shares at Dec. 31, 2021 | 85.9 | ||||||
Ending Balance, value at Dec. 31, 2021 | $ (794) | $ 2 | $ (6,534) | $ 4,192 | $ 1,587 | $ (48) | $ 7 |
Consolidated Statements Of Eq_2
Consolidated Statements Of Equity/(Deficit) (Parenthetical) - $ / shares | 3 Months Ended | 12 Months Ended | ||||||||||||||||
Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||||
Statement of Stockholders' Equity [Abstract] | ||||||||||||||||||
Cash dividends per share (in usd per share) | $ 0.35 | $ 0.30 | $ 0.30 | $ 0.30 | $ 0.30 | $ 0.30 | $ 0.50 | $ 0.50 | $ 0.45 | $ 0.45 | $ 0.45 | $ 0.45 | $ 1.25 | [1] | $ 1.60 | [1] | $ 1.80 | [1] |
[1] | During 2021 the Company paid cash dividends of $0.30 per share for the first, second and third quarters, and $0.35 per share for the fourth quarter. During 2020 the Company paid cash dividends of $0.50 per share for the first and second quarters, and $0.30 per share for the third and fourth quarters. The Company paid cash dividends of $0.45 per share for all four quarters of 2019. |
Background and Basis Of Present
Background and Basis Of Presentation | 12 Months Ended |
Dec. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization, Consolidation and Presentation of Financial Statements Disclosure | Background and Basis of Presentation Background On January 5, 2021, Wyndham Destinations, Inc. acquired the Travel + Leisure brand and related assets from Meredith Corporation. The aggregate purchase price was $100 million, of which $55 million was paid during 2021. The remaining payments are to be completed by June 2024. In connection with this acquisition, Wyndham Destinations, Inc. changed its name to Travel + Leisure Co. and its ticker symbol to TNL on February 17, 2021. Travel + Leisure Co. and its subsidiaries (collectively, “Travel + Leisure Co.,” or the “Company,” formerly Wyndham Destinations, Inc.) is a global provider of hospitality services and travel products. The Company has two reportable segments: Vacation Ownership and Travel and Membership. In connection with the Travel + Leisure brand acquisition the Company updated the names and composition of its reportable segments to better align with how the segments are managed. The Vacation Ownership segment develops, markets, and sells vacation ownership interests (“VOIs”) to individual consumers, provides consumer financing in connection with the sale of VOIs, and provides property management services at resorts. This segment is wholly comprised of the Wyndham Destinations business line. The following brands operate under the Wyndham Destinations business line: Club Wyndham, WorldMark by Wyndham, Shell Vacations Club, Margaritaville Vacation Club by Wyndham, and Presidential Reserve by Wyndham. The Travel and Membership segment operates a variety of travel businesses, including three vacation exchange brands, a home exchange network, travel technology platforms, travel memberships, and direct-to-consumer rentals. This segment is comprised of the Panorama and the Travel + Leisure Group business lines. With the formation of the Travel + Leisure Group, the Company decided that the operations of its Extra Holidays business, which focuses on direct-to-consumer bookings, better aligns with the operations of this new business line and therefore transitioned the management of the Extra Holidays business to the Travel and Membership segment. As such, the Company reclassified the results of its Extra Holidays business, which was previously reported within the Vacation Ownership segment, into the Travel and Membership segment. Prior period segment information has been restated to reflect this change. The following brands operate under the Panorama business line: RCI, Panorama Travel Solutions, Alliance Reservations Network (“ARN”), 7Across, The Registry Collection, and Love Home Swap. The Travel + Leisure Group operates Travel + Leisure GO, Travel + Leisure Travel Clubs, and the Extra Holidays brands. Impact of COVID-19 The results of operations for 2021 and 2020 include impacts related to the novel coronavirus global pandemic (“COVID-19”), which have been significantly negative for the travel industry, the Company, its customers, and employees. In response to COVID-19, the Vacation Ownership segment temporarily closed its resorts in mid-March 2020 across the globe and suspended its sales and marketing operations. In the Travel and Membership segment, affiliate resort closures and regional travel restrictions contributed to decreased bookings and increased cancellations. As a result, the Company significantly reduced its workforce and furloughed thousands of associates in the second quarter of 2020. As of December 31, 2021, the Company has reopened all of the resorts and sales offices in North America that it expects to reopen. The remaining closed resorts and sales offices that the Company intends to reopen are located in the South Pacific and are expected to reopen in 2022, contingent upon the lifting of government imposed travel restrictions. As a result of these reopenings the majority of the Company’s furloughed employees have returned to work. As a precautionary measure to enhance liquidity, in the first quarter of 2020 the Company drew down its $1.0 billion revolving credit facility and suspended its share repurchase activity, and in the third quarter of 2020 amended the credit agreement governing its revolving credit facility and term loan B (“First Amendment”). The First Amendment provided flexibility during the relief period spanning from July 15, 2020 through April 1, 2022, or upon earlier termination by the Company (“Relief Period”). The Company has since repaid its $1.0 billion revolving credit facility. During the fourth quarter of 2021, the Company renewed the credit agreement governing its $1.0 billion revolving credit facility and term loan B (“Second Amendment”). The Second Amendment updated the terms and maturity date of the revolving credit facility, extending the maturity date to October 2026. In addition, the Second Amendment terminated the Relief Period and restrictions regarding share repurchases, dividends, and acquisitions established by the First Amendment. See Note 16— Debt for additional details. Given the significant COVID-19 related events, the Company’s revenues were negatively impacted and while revenues are continuing to recover, not all product and service lines have yet reached pre-pandemic levels. The Company reversed $61 million of COVID-19 charges for the year ended December 31, 2021, compared to $385 million of charges incurred in 2020. The $385 million of charges incurred for the year ended December 31, 2020 included a $205 million COVID-19 related loan loss provision recorded as a result of the Company’s evaluation of the impact of COVID-19 on its owners’ ability to repay their vacation ownership contract receivables (“VOCRs”). The $61 million of net reversals in 2021 included the release of $91 million of the COVID-19 related allowance for loan losses, as the Company has continued to experience improvements in net new defaults. Refer to Note 26— COVID-19 Related Items for additional details. Alliance Reservations Network Acquisition On August 7, 2019, the Company acquired Alliance Reservations Network for $102 million ($97 million net of cash acquired). ARN provides private-label travel booking technology solutions. This acquisition was undertaken for the purpose of accelerating growth at Travel and Membership by increasing the offerings available to its members and affiliates. ARN is reported within the Travel and Membership segment. See Note 5— Acquisitions for additional details. Basis of Presentation The accompanying Consolidated Financial Statements in this Annual Report on Form 10-K include the accounts and transactions of Travel + Leisure Co., as well as the entities in which Travel + Leisure Co. directly or indirectly has a controlling financial interest. The accompanying Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the U.S. All intercompany balances and transactions have been eliminated in the Consolidated Financial Statements. In addition, prior period segment results have been restated to reflect the aforementioned reclassification of the Extra Holidays business into the Travel and Membership segment. The Company presents an unclassified balance sheet which conforms to that of the Company’s peers and industry practice. In presenting the Consolidated Financial Statements, management makes estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosures. Estimates, by their nature, are based on judgment and available information. Accordingly, actual results could differ from those estimates and assumptions. In management’s opinion, the Consolidated Financial Statements contain all normal recurring adjustments necessary for a fair presentation of annual results reported. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2021 | |
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 a variable interest entity (“VIE”). If the entity is deemed to be a VIE, the Company consolidates those VIEs for which the Company is the primary beneficiary. The Company will also consolidate an entity not deemed a VIE upon determination that the Company has a controlling financial interest. For entities where the Company does not have a controlling financial interest, the investments in such entities are accounted for using the equity or cost method, as appropriate. REVENUE RECOGNITION Refer to Note 3— Revenue Recognition for full details of the Company’s revenue recognition policies. 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. Securitizations. In accordance with the contractual requirements of the Company’s various VOCR 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. This report 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 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 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 trust account. As of December 31, 2021 and 2020, restricted cash for securitizations totaled $84 million and $92 million. 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. Rescission periods vary by state, but range on average from five seven RECEIVABLE VALUATION Trade receivables The Company provides for estimated bad debts based on its assessment of the ultimate ability to realize 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 from continuing operations for the years ended December 31 (in millions): 2021 2020 2019 Beginning balance $ 221 $ 154 $ 104 Bad debt expense 127 125 100 Write-offs (149) (58) (51) Translation and other adjustments — — 1 Ending balance $ 199 $ 221 $ 154 Vacation ownership contract receivables In the Vacation Ownership segment, the Company provides for estimated VOCR defaults at the time of VOI sales by recording a provision for loan losses as a reduction of Vacation ownership interest sales on the Consolidated Statements of Income/(Loss). The Company assesses the adequacy of the allowance for loan losses related to these VOIs using a technique referred to as a static pool analysis. This analysis is based upon the historical performance of similar VOCRs and incorporates more recent history of default information. Management prepares a model to track defaults for each year’s sales over the entire life of the contract receivable as a means to project future expected losses. A qualitative assessment is also performed to determine whether any external economic conditions or internal portfolio characteristics indicate an adjustment is necessary to reflect expected impacts on the contract receivables portfolio. 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 VOCRs. Due to the economic disruption resulting from COVID-19, the Company estimated an additional loan loss allowance related to the impacts on its owners’ ability to repay their contract receivables. For additional details on the Company’s vacation ownership contract receivables, including information on the related allowances and the impact of COVID-19, see Note 10— Vacation Ownership Contract Receivables. INVENTORY Inventory primarily consists of completed VOIs, VOIs under construction, land held for future VOI development, vacation exchange credits, and real estate interests 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 recorded using a percentage ratio of total estimated development cost and VOI revenue, including estimated future revenue, 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 in each period as a current-period adjustment 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 estimated fair value less costs to sell. There was no capitalized interest applied to inventory in 2021. Capitalized interest related to inventory was less than $1 million during 2020 and $1 million and during 2019. 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/(Loss), 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, up to 30 years for vacation rental properties, and range from three 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 for internal use. Capitalization of software costs developed for internal use commences during the development phase of the project. The Company amortizes software developed or obtained for internal use on a straight-line basis over its estimated useful life, which is generally three The net carrying value of software developed or obtained for internal use was $156 million and $191 million as of December 31, 2021 and 2020. Capitalized interest was less than $1 million, $1 million, and $2 million during 2021, 2020, and 2019. 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 in Operating income/(loss) and net interest expense, based upon the nature of the hedged item, on the Consolidated Statements of Income/(Loss). Changes in fair value of derivatives designated as cash flow hedging instruments are recorded as components of other comprehensive income. Amounts included in other comprehensive income are reclassified into earnings in the same period during which the hedged item affects earnings. 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, 2021 and 2020. The Company recognizes the effects of changes in tax laws, or rates, as a component of income taxes from continuing operations within the period that includes the enactment date. 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 a change to 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 that 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. The Company classifies interest and penalties associated with unrecognized tax benefits as a component of Provision/(benefit) for income taxes on the Consolidated Statements of Income/(Loss). ADVERTISING EXPENSE Advertising costs are expensed in the period incurred and are recorded within Marketing expenses on the Consolidated Statements of Income/(Loss). Advertising costs were $33 million, $26 million, and $37 million in 2021, 2020, and 2019. STOCK-BASED COMPENSATION The Company measures all stock-based compensation awards using a fair value method and records the related expense in its Consolidated Statements of Income/(Loss). LONG-LIVED ASSETS Assets such as customer lists, management agreements, and trademarks acquired by the Company are classified as intangible assets and recorded at their fair value as of the date of the acquisition and categorized as having either a finite life or an indefinite life. Assets deemed to have a finite life are assigned an appropriate useful life and amortized on a straight-line basis. IMPAIRMENT OF LONG-LIVED ASSETS The Company has goodwill and other indefinite-lived intangible assets recorded in connection with business combinations. The Company annually in the fourth quarter, or more frequently if circumstances indicate that the value of goodwill may be impaired, reviews the reporting units’ carrying values. This is done either by performing a qualitative assessment or a quantitative assessment, with an impairment being recognized only if a reporting unit’s fair value is less than carrying value. In any given year the Company can elect to perform a qualitative assessment to determine whether it is more likely than not that the fair value of a reporting unit is in excess of its carrying value. If it is not more likely than not that the fair value is in excess of the carrying value, or the Company elects to bypass the qualitative assessment, it would utilize the quantitative assessment. The qualitative factors evaluated include macroeconomic conditions, industry and market considerations, cost factors, overall financial performance, and the Company’s historical share price as well as other industry-specific considerations. 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 Asset impairments/(recovery) on the Consolidated Statements of Income/(Loss). The Company has goodwill recorded at reporting units comprising its Vacation Ownership and Travel and Membership reportable segments. The Company completed its annual goodwill impairment test by performing a qualitative analysis for each of its reporting units as of October 1, 2021 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. 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 activities 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 accrued as of December 31, 2021, represents its best estimate of the obligations incurred in connection with these actions, but could change due to various factors including market conditions, the outcome of negotiations with third parties, or the effects of the COVID-19 pandemic. OTHER INCOME During 2021, the Company recorded $6 million of other income primarily due to activity at the Travel and Membership segment including (i) an unrealized gain on Vacasa equity investment; (ii) value added tax provision release; and (iii) equity earnings. During 2020, the Company recorded $14 million of other income primarily related to (i) settlements of various business interruption claims at its Vacation Ownership segment and (ii) value added tax provision releases at its Travel and Membership segment. During 2019, the Company recorded $23 million of other income related to (i) settlements of various business interruption claims, (ii) value added tax provision releases at its Travel and Membership segment, and (iii) equity earnings at its Travel and Membership segment. RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS Contract Assets and Contract Liabilities from Contracts with Customers Acquired in a Business Combination. In October 2021, the Financial Accounting Standards Board (“FASB”) issued guidance which requires companies to apply Accounting Standards Committee (“ASC”) 606 to recognize and measure contract assets and contract liabilities from contracts with customers acquired in a business combination. This creates an exception to the general recognition and measurement principle in ASC 805. This generally will result in companies recognizing contract assets and contract liabilities at amounts consistent with those recorded by the acquiree immediately before the acquisition date. This guidance is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. The amendments should be applied prospectively to business combinations occurring on or after the effective date. Early adoption is permitted. As this guidance would only be applicable to future business combinations, the Company is currently unable to determine the impact of adopting this guidance. Government Assistance. In November 2021, the FASB issued guidance which requires business entities to provide certain disclosures when they (i) have received government assistance and (ii) use a grant or contribution accounting model by analogy to other accounting guidance. The guidance is effective for fiscal years beginning after December 15, 2021. The adoption of this guidance is not expected to have a material impact on the Company’s Consolidated Financial Statements or related disclosures. RECENTLY ADOPTED ACCOUNTING PRONOUNCEMENTS Simplifying the Accounting for Income Taxes . In December 2019, the FASB issued guidance to simplify the accounting for income taxes and clarify the financial statement presentation for tax benefits related to tax deductible dividends. This guidance became effective for fiscal years beginning after December 15, 2020, including interim periods within those fiscal years. The adoption of this guidance did not have a material impact on the Company’s Consolidated Financial Statements or related disclosures. Reference Rate Reform . In March 2020, the FASB issued guidance which provides optional expedients and exceptions for applying generally accepted accounting principles in the U.S. (“GAAP”) to contract modifications and hedging relationships, subject to meeting certain criteria that reference the London Interbank Offered Rate (“LIBOR”) or another reference rate expected to be discontinued. This guidance became effective as of March 12, 2020, and will apply through December 31, 2022. The transition from LIBOR based benchmark rates is expected to begin January 1, 2022 and be completed when U.S. Dollar (“USD”) LIBOR rates are phased out by June 30, 2023. The Company adopted appropriate LIBOR replacement rate transition language into the agreements for the renewal of its USD bank conduit facility in 2020 and the renewal of the credit agreement governing the revolving credit facility and term loan B which closed during 2021. These agreements represented the Company’s largest exposure to LIBOR. The adoption of this guidance did not have a material impact on the Company’s Consolidated Financial Statements or related disclosures. |
Revenue Recognition
Revenue Recognition | 12 Months Ended |
Dec. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | Revenue Recognition Vacation Ownership The Company develops, markets and sells VOIs to individual consumers, provides consumer financing in connection with the sale of VOIs, and provides property management services at resorts. The Company’s sales of VOIs are either cash sales or developer-financed sales. Developer-financed sales are typically collateralized by the underlying VOI. Revenue is recognized on VOI sales upon transfer of control, which is defined as the point in time when a binding sales contract has been executed, the financing contract has been executed for the remaining transaction price, the statutory rescission period has expired, and the transaction price has been deemed to be collectible. For developer-financed sales, the Company reduces the VOI sales transaction price by an estimate of uncollectible consideration at the time of the sale. The Company’s estimates of uncollectible amounts are based largely on the results of the Company’s static pool analysis which relies on historical payment data by customer class. In connection with entering into a VOI sale, the Company may provide its customers with certain non-cash incentives, such as credits for future stays at its resorts. For those VOI sales, the Company bifurcates the sale and allocates the sales price between the VOI sale and the non-cash incentive. Non-cash incentives generally have expiration periods of 18 months or less and are recognized at a point in time upon transfer of control. The Company provides day-to-day property management services including oversight of housekeeping services, maintenance, and certain accounting and administrative services for property owners’ associations and clubs. These services may also include reservation and resort renovation activities. Such agreements are generally for terms of one year or less, and are renewed automatically on an annual basis. The Company’s management agreements contain cancellation clauses, which allow for either party to cancel the agreement, by either a majority board vote or a majority vote of non-developer interests. The Company receives fees for such property management services which are collected monthly in advance and are based upon total costs to operate such resorts (or as services are provided in the case of resort renovation activities). Fees for property management services typically approximate 10% of budgeted operating expenses. The Company is entitled to consideration for reimbursement of costs incurred on behalf of the property owners’ association in providing management services (“reimbursable revenue”). These reimbursable costs principally relate to the payroll costs for management of the associations, club and resort properties where the Company is the employer and are reflected as a component of Operating expenses on the Consolidated Statements of Income/(Loss). The Company reduces its management fees for amounts it has paid to the property owners’ association that reflect maintenance fees for VOIs for which it retains ownership, as the Company has concluded that such payments are consideration payable to a customer. Property management fee revenues are recognized when the services are performed and are recorded as a component of Service and membership fees on the Consolidated Statements of Income/(Loss). Property management revenues, which are comprised of management fee revenue and reimbursable revenue, for the years ended December 31, were (in millions) (a) : 2021 2020 2019 Management fee revenue $ 358 $ 331 $ 365 Reimbursable revenues 313 252 307 Property management revenues $ 671 $ 583 $ 672 (a) Reflects the impact of reclassifying the Extra Holidays business line from the Vacation Ownership segment to Travel and Membership. One of the associations that the Company manages paid its Travel and Membership segment $30 million for exchange services during 2021, $27 million during 2020, and $29 million during 2019. Travel and Membership Travel and Membership derives a majority of its revenues from membership dues and fees for facilitating members’ trading of their intervals. Revenues from membership dues represent the fees paid by members or affiliated clubs on their behalf. The Company recognizes revenues from membership dues paid by the member on a straight-line basis over the membership period as the performance obligations are fulfilled through delivery of publications, if applicable, and by providing access to travel-related products and services. Estimated net contract consideration payable by affiliated clubs for memberships is recognized as revenue over the term of the contract with the affiliated club in proportion to the estimated average monthly member count. Such estimates are adjusted periodically for changes in the actual and forecasted member activity. For additional fees, members have the right to exchange their intervals for intervals at other properties affiliated with the Company’s vacation exchange networks and, for certain members, for other leisure-related services and products. The Company also derives revenue from facilitating bookings of travel accommodations for both members and non-members. Revenue is recognized when these transactions have been confirmed, net of expected cancellations, except in certain transactions where the Company has a performance obligation that is not satisfied until the time of stay. As a provider of vacation exchange services, the Company enters into affiliation agreements with developers of vacation ownership properties to allow owners of VOIs to trade their intervals for intervals at other properties affiliated with the Company’s vacation exchange network and, for some members, for other leisure-related services and products. The Company’s vacation exchange business also derives revenues from programs with affiliated resorts, club servicing, and loyalty programs; and additional exchange-related products that provide members with the ability to protect trading power or points, extend the life of deposits, and combine two or more deposits for the opportunity to exchange into intervals with higher trading power. Other vacation exchange-related product fees are deferred and recognized as revenue upon the occurrence of a future exchange, event, or other related transaction. The Company earns revenue from its RCI Elite Rewards co–branded credit card program, which is primarily generated by cardholder spending and the enrollment of new cardholders. The advance payments received under the program are recognized as a contract liability until the Company’s performance obligations have been satisfied. The primary performance obligation for the program relates to brand performance services. Total contract consideration is estimated and recognized on a straight-line basis over the contract term. Prior to the sale of the vacation rental businesses, the Company’s vacation rental brands derived revenue from fees associated with the rental of vacation properties managed and marketed by the Company on behalf of independent owners. The Company remitted the rental fee received from the renter to the independent owner, net of the Company’s agreed-upon fee. The related revenue from such fees, net of expected refunds, was recognized over the renter’s stay. The Company’s vacation rental brands also derived revenues from additional services delivered to independent owners, vacation rental guests, and property owners’ associations which were generally recognized when the service was delivered. Other Items The Company records property management services revenues for its Vacation Ownership segment and RCI Elite Rewards revenues for its Travel and Membership segments gross as a principal. Contract Liabilities Contract liabilities generally represent payments or consideration received in advance for goods or services that the Company has not yet transferred to the customer. Contract liabilities as of December 31, were as follows (in millions): 2021 2020 Deferred subscription revenue $ 166 $ 176 Deferred VOI trial package revenue 85 115 Deferred exchange-related revenue (a) 61 59 Deferred VOI incentive revenue 55 74 Deferred co-branded credit card programs revenue 12 16 Deferred other revenue 3 8 Total $ 382 $ 448 (a) Includes contractual liabilities to accommodate members for cancellations initiated by the Company due to unexpected events. These amounts are included within Accrued expenses and other liabilities on the Consolidated Balance Sheets. In the Company’s Vacation Ownership business, deferred VOI trial package revenue represents consideration received in advance for a trial VOI, which allows customers to utilize a vacation package typically within one year of purchase. Deferred VOI incentive revenue represents payments received in advance for additional travel-related services and products at the time of a VOI sale. Revenue is recognized when a customer utilizes the additional services and products, which is typically within one year of the VOI sale. Within the Company’s Travel and Membership business, deferred subscription revenue represents billings and payments received in advance from members and affiliated clubs for memberships in the Company’s travel programs which are recognized in future periods. Deferred revenue primarily represents payments received in advance from members for the right to access the Company’s vacation travel network to book vacation exchanges and rent travel accommodations which are recognized on a straight-line basis over the contract period, generally within one year. Deferred revenue also includes other leisure-related services and products revenue which is recognized as customers utilize the associated benefits. Changes in contract liabilities for the years ended December 31, follow (in millions): 2021 2020 2019 Beginning balance $ 448 $ 539 $ 519 Additions 247 223 387 Revenue recognized (313) (314) (367) Ending balance $ 382 $ 448 $ 539 Capitalized Contract Costs The Vacation Ownership segment incurs certain direct and incremental selling costs in connection with VOI trial package and incentive revenues. Such costs are capitalized and subsequently amortized over the utilization period, which is typically within one year of the sale. As of December 31, 2021 and 2020, these capitalized costs were $28 million and $41 million; and are included within Other assets on the Consolidated Balance Sheets. The Travel and Membership segment incurs certain direct and incremental selling costs to obtain contracts with customers in connection with subscription revenues and exchange–related revenues. Such costs, which are primarily comprised of commissions paid to internal and external parties and credit card processing fees, are deferred at the inception of the contract and recognized when the benefit is transferred to the customer. As of December 31, 2021 and 2020, these capitalized costs were $19 million and $16 million; and are included within Other assets on the Consolidated Balance Sheets. Practical Expedients The Company has not adjusted the consideration for the effects of a significant financing component if it expected, at contract inception, that the period between when the Company satisfied the performance obligation and when the customer paid for that good or service was one year or less. Performance Obligations A performance obligation is a promise in a contract with a customer to transfer a distinct good or service to the customer. The consideration received from a customer is allocated to each distinct performance obligation and recognized as revenue when, or as, each performance obligation is satisfied. The following table summarizes the Company’s remaining performance obligations for the 12-month periods set forth below (in millions): 2022 2023 2024 Thereafter Total Subscription revenue $ 96 $ 37 $ 17 $ 16 $ 166 VOI trial package revenue 82 — 3 — 85 Exchange-related revenue 56 4 1 — 61 VOI incentive revenue 55 — — — 55 Co-branded credit card programs revenue 3 3 2 4 12 Other revenue 3 — — — 3 Total $ 295 $ 44 $ 23 $ 20 $ 382 Disaggregation of Net Revenues The table below presents a disaggregation of the Company’s net revenues from contracts with customers by major services and products for each of the Company’s segments (in millions) (a) : Year Ended December 31, 2021 2020 2019 Vacation Ownership Vacation ownership interest sales (b) $ 1,176 $ 505 $ 1,848 Property management fees and reimbursable revenues 671 583 672 Consumer financing 404 467 515 Fee-for-Service commissions 101 22 18 Ancillary revenues 51 48 69 Total Vacation Ownership 2,403 1,625 3,122 Travel and Membership Transaction revenues 540 315 492 Subscription revenues 176 160 216 Vacation rental revenues (c) — — 153 Ancillary revenues 36 77 83 Total Travel and Membership 752 552 944 Corporate and other Ancillary revenues — — 1 Eliminations (21) (17) (24) Total Corporate and other (21) (17) (23) Net revenues $ 3,134 $ 2,160 $ 4,043 (a) This table reflects the reclassification of Extra Holidays from the Vacation Ownership segment into the Travel and Membership segment for all periods presented. Extra Holidays revenue is included within Transaction revenues. (b) The Company increased its loan loss allowance by $205 million during 2020, due to an expected increase in net new defaults driven by higher unemployment associated with COVID-19, which is reflected as a reduction to Vacation ownership interest sales on the Consolidated Statements of Income/(Loss). During 2021, the Company analyzed the adequacy of this COVID-19 related allowance consistent with past methodology, resulting in releases of $91 million which is reflected as an increase in Vacation ownership interest sales on the Consolidated Statements of Income/(Loss). (c) The Company completed the sale of the North American vacation rentals business on October 22, 2019. |
Earnings_(Loss) Per Share
Earnings/(Loss) Per Share | 12 Months Ended |
Dec. 31, 2021 | |
Earnings Per Share Reconciliation [Abstract] | |
Earnings Per Share | Earnings/(Loss) Per Share The computations of basic and diluted earnings/(loss) per share (“EPS”) are based on Net income/(loss) attributable to Travel + Leisure Co. shareholders divided by the basic weighted average number of common shares and diluted weighted average number of common shares outstanding. The following table sets forth the computations of basic and diluted EPS (in millions, except per share data): Year Ended December 31, 2021 2020 2019 Net income/(loss) from continuing operations attributable to Travel + Leisure Co. shareholders $ 313 $ (253) $ 489 (Loss)/gain on disposal of discontinued business attributable to Travel + Leisure Co. shareholders, net of income taxes (5) (2) 18 Net income/(loss) attributable to Travel + Leisure Co. shareholders $ 308 $ (255) $ 507 Basic earnings/(loss) per share (a) Continuing operations $ 3.62 $ (2.95) $ 5.31 Discontinued operations (0.06) (0.02) 0.19 $ 3.56 $ (2.97) $ 5.50 Diluted earnings/(loss) per share (a) Continuing operations $ 3.58 $ (2.95) $ 5.29 Discontinued operations (0.06) (0.02) 0.19 $ 3.52 $ (2.97) $ 5.48 Basic weighted average shares outstanding 86.5 86.1 92.1 Stock-settled appreciation rights (“SSARs”), RSUs (b) , PSUs (c) and NQs (d) 0.8 — 0.3 Diluted weighted average shares outstanding (e) 87.3 86.1 92.4 Dividends: Cash dividends per share (f) $ 1.25 $ 1.60 $ 1.80 Aggregate dividends paid to shareholders $ 109 $ 138 $ 166 (a) Earnings/(loss) per share amounts are calculated using whole numbers. (b) Excludes 0.4 million, 1.1 million, and 0.4 million of restricted stock units (“RSUs”) that would have been anti-dilutive to EPS for the years 2021, 2020, and 2019, of which 0.2 million would have been dilutive during 2020 had the Company not been in a net loss position. These shares could potentially dilute EPS in the future. (c) Excludes performance-vested restricted stock units (“PSUs”) of 0.4 million, 0.3 million, and 0.2 million for the years 2021, 2020, and 2019 as the Company had not met the required performance metrics. These PSUs could potentially dilute EPS in the future. (d) Excludes 1.4 million, 2.1 million, and 1.2 million of outstanding non-qualified stock option (“NQs”) awards that would have been anti-dilutive to EPS for the years 2021, 2020, and 2019. These outstanding stock option awards could potentially dilute EPS in the future. (e) The dilutive impact of the Company’s potential common stock is computed utilizing the treasury stock method using average market prices during the period. (f) During 2021 the Company paid cash dividends of $0.30 per share for the first, second and third quarters, and $0.35 per share for the fourth quarter. During 2020 the Company paid cash dividends of $0.50 per share for the first and second quarters, and $0.30 per share for the third and fourth quarters. The Company paid cash dividends of $0.45 per share for all four quarters of 2019. Share Repurchase Program As of December 31, 2021, the total authorization under the Company’s current share repurchase program was $6.0 billion, of which $328 million remains available. Proceeds received from stock option exercises have increased the repurchase capacity by $81 million since the inception of this program. In March 2020, the Company suspended its share repurchase activity due to the uncertainty resulting from COVID-19. On July 15, 2020, the Company entered into the First Amendment to the credit agreement governing its revolving credit facility and term loan B. This amendment placed the Company into a Relief Period from July 15, 2020 through April 1, 2022 that prohibited the use of cash for share repurchases during this period. On October 22, 2021, the Company entered into the Second Amendment which renewed the credit agreement governing its revolving credit facility and term loan B, thereby terminating the Relief Period and eliminating the Relief Period restrictions regarding share repurchases and dividends. The Company resumed share repurchases during the fourth quarter of 2021. The following table summarizes stock repurchase activity under the current share repurchase program (in millions): Shares Cost As of December 31, 2020 111.3 $ 5,727 Repurchases 0.5 26 As of December 31, 2021 111.8 $ 5,753 |
Acquisitions
Acquisitions | 12 Months Ended |
Dec. 31, 2021 | |
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/(Loss) 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 were 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 measurement 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/(Loss) as expenses. 2021 ACQUISITIONS Travel + Leisure. On January 5, 2021, the Company acquired the Travel + Leisure brand from Meredith Corporation for $100 million, $55 million of which was paid in 2021. These payments are reflected as $35 million of cash used in investing activities, along with the associated professional fees, and $20 million of cash used in financing activities on the Consolidated Statements of Cash Flows. The remaining payments are to be completed by June 2024. This transaction was accounted for as an asset acquisition, with the full consideration allocated to the related trademark indefinite-lived intangible asset. The Company acquired the Travel + Leisure brand to accelerate its strategic plan to broaden its reach with the launch of new travel services, expand its membership travel business, and amplify the global visibility of its leisure travel products. 2019 ACQUISITIONS Alliance Reservations Network. On August 7, 2019, the Company acquired all of the equity of ARN. ARN provides private-label travel booking technology solutions. This acquisition was undertaken for the purpose of accelerating growth at Travel and Membership by increasing the offerings available to its members and affiliates. ARN was acquired for $102 million ($97 million net of cash acquired). The fair value of purchase consideration was comprised of: (i) $48 million paid in cash at closing, which is included in cash used in investing activities on the Consolidated Statements of Cash Flows, net of cash received; and $11 million paid in each of 2020 and 2021 included in cash used in financing activities on the Consolidated Statements of Cash Flows; (ii) $24 million of Travel + Leisure Co. stock (721,450 shares at a weighted average price per share of $32.51); and (iii) $10 million of contingent consideration based on achieving certain financial and operational metrics. The Company recognized the assets and liabilities of ARN based on estimates of their acquisition date fair values. The determination of the fair values of the acquired assets and assumed liabilities, including goodwill and other intangible assets, requires significant judgment. The purchase price allocation, including the impacts of certain post-closing adjustments, consists of: (i) $27 million of developed software with a weighted average life of 10 years included within Property and equipment, net; (ii) $38 million of Goodwill; (iii) $35 million of definite-lived intangible assets with a weighted average life of 12 years primarily consisting of customer relationships; and (iv) $4 million of Accounts payable. All of the goodwill and other intangible assets are deductible for income tax purposes. ARN is reported within the Travel and Membership segment. The Company completed purchase accounting for this transaction during 2020. Given the impact of COVID-19 on the industry, the Company performed assessments of the goodwill acquired as part of the ARN acquisition at October 1, 2021 and each interim period in 2020, including the annual assessment on October 1, 2020, and concluded at each assessment that the goodwill of ARN was not impaired. For the assessment performed on October 1, 2021, it was determined that the fair value substantially exceeded the carrying value. Although the Company determined that the goodwill of ARN was not impaired at these times, to the extent estimated discounted cash flows are revised downward, whether as a result of continued and worsening COVID-19 impacts or if management’s current negotiations to expand ARN programs both internally and externally do not materialize as expected, the Company may be required to write-down all or a portion of this goodwill, which would negatively impact earnings. As a result of the impacts of COVID-19, the Company also performed an impairment analysis of ARN’s property and equipment and other intangible assets during each quarter of 2020, including the fourth quarter as part of its annual impairment analysis on October 1, 2020, and determined in all periods that it was more likely than not that these assets were not impaired. The Company did not have any triggering events requiring an impairment test to be performed for these amortizing assets in 2021. |
Discontinued Operations
Discontinued Operations | 12 Months Ended |
Dec. 31, 2021 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operations | Discontinued Operations During 2018, the Company completed the spin-off of its hotel business (“Spin-off”) and the sale of its European vacation rentals business. Subsequent to these transactions closing, the Company recognized additional gain and losses on disposal associated with these discontinued businesses. During 2021, the Company recognized a loss on disposal of discontinued business, net of income taxes of $5 million as a result of entering into a settlement agreement for post-closing adjustment claims related to the sale of the European vacation rentals business. See Note 29— Transactions with Former Parent and Former Subsidiaries for additional information. During 2020, the Company recognized a $2 million loss on disposal of discontinued business, net of income taxes resulting from a tax audit related to the European vacation rentals business. During 2019, the Company recognized an $18 million gain on disposal of discontinued business, net of income taxes. This gain was related to $12 million of tax benefits associated with additional foreign tax credit utilization and lower than anticipated state income taxes, as well as $6 million in returned escrow deposits associated with expired guarantees related to the sale of the European vacation rentals business. The Company does not expect to incur significant ongoing gains and losses for these discontinued operations. Prior to their classification as discontinued operations, the hotel business comprised the Hotel Group segment and the European vacation rentals business was part of the Travel and Membership segment. The following table presents information regarding components of cash flows from discontinued operations for the years ended December 31, (in millions): 2021 2020 2019 Cash flows used in operating activities $ — $ — $ (1) Cash flows used in investing activities — (5) (22) During 2019, the Company closed on the sale of its North American vacation rentals business for $162 million. After customary closing adjustments, the Company received $156 million in cash and $10 million in Vacasa LLC (“Vacasa”) equity, resulting in a gain of $68 million which is included in Gain on sale of business on the Consolidated Statements of Income/(Loss). Prior to sale, this business was reported within the Travel and Membership segment. During December 2021, Vacasa merged with a publicly traded special purpose acquisition company and began trading on the Nasdaq Global Select market. As of December 31, 2021, the fair value of the Company’s investment in Vacasa was $13 million, as measured using quoted prices in the active market (Level 1); representing an increase of $9 million during the year. This increase is reflected as a $6 million recovery in Asset impairments/(recovery), and $3 million of Other income, net on the Consolidated Statements of Income/(Loss). |
Held-for Sale Business
Held-for Sale Business | 12 Months Ended |
Dec. 31, 2021 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Held-for Sale Business | Discontinued Operations During 2018, the Company completed the spin-off of its hotel business (“Spin-off”) and the sale of its European vacation rentals business. Subsequent to these transactions closing, the Company recognized additional gain and losses on disposal associated with these discontinued businesses. During 2021, the Company recognized a loss on disposal of discontinued business, net of income taxes of $5 million as a result of entering into a settlement agreement for post-closing adjustment claims related to the sale of the European vacation rentals business. See Note 29— Transactions with Former Parent and Former Subsidiaries for additional information. During 2020, the Company recognized a $2 million loss on disposal of discontinued business, net of income taxes resulting from a tax audit related to the European vacation rentals business. During 2019, the Company recognized an $18 million gain on disposal of discontinued business, net of income taxes. This gain was related to $12 million of tax benefits associated with additional foreign tax credit utilization and lower than anticipated state income taxes, as well as $6 million in returned escrow deposits associated with expired guarantees related to the sale of the European vacation rentals business. The Company does not expect to incur significant ongoing gains and losses for these discontinued operations. Prior to their classification as discontinued operations, the hotel business comprised the Hotel Group segment and the European vacation rentals business was part of the Travel and Membership segment. The following table presents information regarding components of cash flows from discontinued operations for the years ended December 31, (in millions): 2021 2020 2019 Cash flows used in operating activities $ — $ — $ (1) Cash flows used in investing activities — (5) (22) During 2019, the Company closed on the sale of its North American vacation rentals business for $162 million. After customary closing adjustments, the Company received $156 million in cash and $10 million in Vacasa LLC (“Vacasa”) equity, resulting in a gain of $68 million which is included in Gain on sale of business on the Consolidated Statements of Income/(Loss). Prior to sale, this business was reported within the Travel and Membership segment. During December 2021, Vacasa merged with a publicly traded special purpose acquisition company and began trading on the Nasdaq Global Select market. As of December 31, 2021, the fair value of the Company’s investment in Vacasa was $13 million, as measured using quoted prices in the active market (Level 1); representing an increase of $9 million during the year. This increase is reflected as a $6 million recovery in Asset impairments/(recovery), and $3 million of Other income, net on the Consolidated Statements of Income/(Loss). |
Intangible Assets
Intangible Assets | 12 Months Ended |
Dec. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets | Intangible Assets Intangible assets consisted of (in millions): As of December 31, 2021 As of December 31, 2020 Gross Accumulated Net Gross Accumulated Net Unamortized Intangible Assets: Goodwill $ 961 $ 964 Trademarks (a) $ 146 $ 47 Amortized Intangible Assets: Customer lists (b) $ 75 $ 31 $ 44 $ 75 $ 25 $ 50 Management agreements (c) 52 34 18 53 31 22 Trademarks (d) 8 5 3 8 5 3 Other (e) 8 — 8 9 — 9 $ 143 $ 70 $ 73 $ 145 $ 61 $ 84 (a) Comprised of trademarks that the Company has acquired that are expected to generate future cash flows for an indefinite period of time. (b) Amortized between 4 to 15 years with a weighted average life of 12 years. (c) Amortized between 10 to 25 years with a weighted average life of 17 years. (d) Amortized between 7 to 8 years with a weighted average life of 7 years. (e) Includes business contracts, which are amortized between 10 to 69 years with a weighted average life of 57 years. Goodwill During the fourth quarters of 2021, 2020, and 2019, the Company performed its annual goodwill impairment test and determined no impairment existed as the fair value of goodwill at its reporting units was in excess of the carrying value. Due to the impacts of COVID-19, the Company also performed a qualitative analysis for each of its reporting units during each quarter of 2020. Additionally, the Company performed quantitative assessments of the goodwill acquired as part of the ARN acquisition during the third and fourth quarters of 2020; which resulted in the fair value exceeding the carrying value. Based on the results of these qualitative and quantitative assessments, the Company determined that ARN’s goodwill was not impaired and that it was more likely than not that goodwill was not impaired at the Company’s other reporting units. For the quantitative assessment performed on October 1, 2021 as part of the Company’s annual impairment analysis, it was determined that the fair value of the ARN goodwill substantially exceeded the carrying value. The changes in the carrying amount of goodwill are as follows (in millions): Balance as of December 31, 2020 Foreign Exchange Balance as of December 31, 2021 Travel and Membership $ 937 $ (3) $ 934 Vacation Ownership 27 — 27 Total Company $ 964 $ (3) $ 961 Amortizable Intangible Assets Amortization expense relating to amortizable intangible assets is included as a component of Depreciation and amortization on the Consolidated Statements of Income/(Loss) and was as follows (in millions): 2021 2020 2019 Customer lists $ 6 $ 6 $ 6 Management agreements 3 3 3 Other — 1 — Total $ 9 $ 10 $ 9 Based on the Company’s amortizable intangible assets as of December 31, 2021, the Company expects related amortization expense for the next five years as follows (in millions): Amount 2022 $ 10 2023 10 2024 9 2025 9 2026 9 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes On March 11, 2021, the American Rescue Plan Act of 2021 (“ARPA”) was signed into law, which is the latest stimulus package to provide COVID-19 relief. ARPA included an extension of the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act Employee Retention Tax Credit until December 31, 2021. In addition to the expansion of the employee retention credit (among other provisions), ARPA includes several revenue-raising and business tax provisions. One such provision that will impact the Company is the expansion of the limitation of compensation deductions above $1 million for certain covered employees of publicly held corporations. Effective for taxable years after December 31, 2026, ARPA expands the limitation to include the next five highest compensated employees . On March 27, 2020, the CARES Act was established to provide emergency assistance and health care for individuals, families, and businesses affected by COVID-19 and generally support the U.S. economy. The CARES Act, among other things, included provisions relating to refundable payroll tax credits, deferment of employer social security payments, net operating loss carryback periods, alternative minimum tax credit refunds, modifications to the net interest deduction limitations, and technical corrections to tax depreciation methods for qualified improvement property. The Company recorded $2 million and $26 million of employee retention tax credits for the years ended December 31, 2021 and 2020, including credits from similar programs outside the U.S. This provision of the CARES Act has no additional requirements or restrictions. The Company has deferred social security payments and taken additional depreciation deductions relating to qualified improvement property. The Company asserts that substantially all undistributed foreign earnings will be reinvested indefinitely as of December 31, 2021. In the event the Company determines not to continue to assert that all or part of its undistributed foreign earnings are permanently reinvested, such a determination in the future could result in the accrual and payment of additional foreign withholding taxes, as well as U.S. taxes on currency transaction gains and losses, the determination of which is not practicable. The income tax provision/(benefit) attributable to continuing operations consisted of the following for the years ended December 31 (in millions): 2021 2020 2019 Current Federal $ 111 $ 42 $ 74 State 27 12 9 Foreign 17 11 29 155 65 112 Deferred Federal (38) (82) 57 State (2) (3) 17 Foreign 1 (3) 5 (39) (88) 79 Provision/(benefit) for income taxes $ 116 $ (23) $ 191 Pre-tax income/(loss) for domestic and foreign operations attributable to continuing operations consisted of the following for the years ended December 31 (in millions): 2021 2020 2019 Domestic $ 314 $ (326) $ 452 Foreign 115 50 228 Income/(loss) before income taxes $ 429 $ (276) $ 680 Deferred income tax assets and liabilities, as of December 31, were comprised of the following (in millions): 2021 2020 Deferred income tax assets: Provision for doubtful accounts and loan loss allowance for vacation ownership contract receivables $ 180 $ 227 Foreign tax credit carryforward 77 75 Accrued liabilities and deferred income 76 80 Other comprehensive income 73 69 Net operating loss carryforward 33 37 Tax basis differences in assets of foreign subsidiaries 11 12 Other 89 92 Valuation allowance (a) (156) (153) Deferred income tax assets 383 439 Deferred income tax liabilities: Installment sales of vacation ownership interests 700 780 Depreciation and amortization 227 228 Other comprehensive income 53 49 Estimated VOI recoveries 46 60 Other 18 20 Deferred income tax liabilities 1,044 1,137 Net deferred income tax liabilities $ 661 $ 698 Reported in: Other assets $ 25 $ 27 Deferred income taxes 686 725 Net deferred income tax liabilities $ 661 $ 698 (a) The valuation allowance of $156 million at December 31, 2021, relates to foreign tax credits, net operating loss carryforwards, and certain deferred tax assets of $56 million, $21 million, and $79 million. The valuation allowance of $153 million at December 31, 2020, relates to foreign tax credits, net operating loss carryforwards, and certain deferred tax assets of $50 million, $22 million, and $81 million. 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, 2021, the Company’s net operating loss carryforwards primarily relate to state and foreign net operating losses of $17 million and $14 million. The state net operating losses are due to expire at various dates, but no later than 2041. The majority of the foreign net operating losses can be carried forward indefinitely. As of December 31, 2021, the Company had $77 million of foreign tax credits. These foreign tax credits expire between 2022 and 2031. The Company’s effective income tax rate differs from the U.S. federal statutory rate as follows for the years ended December 31: 2021 2020 2019 Federal statutory rate 21.0% 21.0% 21.0% State and local income taxes, net of federal tax benefits 4.5 (0.9) 6.8 Taxes on foreign operations at rates different than U.S. federal statutory rates (3.2) (0.9) 1.4 Taxes on foreign income, net of tax credits 3.5 0.2 0.4 Valuation allowance 1.8 (7.1) (2.4) Installment sale interest 1.3 (0.8) 0.5 Other (1.9) (3.2) 0.4 27.0% 8.3% 28.1% The effective income tax rate for 2021 differed from the statutory U.S. Federal income tax rate of 21.0% primarily due to the effect of state income taxes and the net increases in valuation allowances on the Company’s deferred tax assets. The effective income tax rate for 2020 differed from the statutory U.S. Federal income tax rate of 21.0% primarily due to net increases in valuation allowances on the Company’s deferred tax assets. The following table summarizes the activity related to the Company’s unrecognized tax benefits (in millions): 2021 2020 2019 Beginning balance $ 26 $ 29 $ 28 Increases related to tax positions taken during a prior period 2 — 1 Increases related to tax positions taken during the current period 2 2 4 Decreases related to settlements with taxing authorities — — (1) Decreases related to tax positions taken during a prior period — (2) (1) Decreases as a result of a lapse of the applicable statute of limitations (3) (3) (2) Ending balance $ 27 $ 26 $ 29 The gross amount of the unrecognized tax benefits that, if recognized, would affect the Company’s effective tax rate was $22 million, $22 million, and $24 million as of December 31, 2021, 2020, and 2019. The Company accrued potential penalties and interest as a component of Provision/(benefit) for income taxes on the Consolidated Statements of Income/(Loss) related to these unrecognized tax benefits of $1 million, $1 million, and $2 million during 2021, 2020, and 2019. The Company had a liability for potential penalties of $4 million as of December 31, 2021, 2020, and 2019, and potential interest of $11 million, $10 million, and $9 million as of December 31, 2021, 2020, and 2019. Such liabilities are reported as a component of Accrued expenses and other liabilities on the Consolidated Balance Sheets. The Company does not expect the unrecognized tax benefits balance to change significantly over the next 12 months. The Company files U.S. federal and state, and foreign income tax returns in jurisdictions with varying statutes of limitations. The Company is currently under a U.S. federal exam for the 2016 tax year and generally remains subject to examination by U.S. federal tax authorities for tax years 2018 through 2021. The 2012 through 2021 tax years generally remain subject to examination by many U.S. state tax authorities. In significant foreign jurisdictions, the 2014 through 2021 tax years generally remain subject to examination by their respective tax authorities. The statutes of limitations are 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 $2 million due to statute expirations. The Company made cash income tax payments, net of refunds, of $110 million, $50 million, and $89 million during 2021, 2020, and 2019. In addition, the Company made cash income tax payments, net of refunds, of $8 million and $39 million during 2020 and 2019 related to discontinued operations. Such payments exclude income tax related payments made to or refunded by the Company’s former parent Cendant and Wyndham Hotels & Resorts, Inc. (“Wyndham Hotels”). |
Vacation Ownership Contract Rec
Vacation Ownership Contract Receivables | 12 Months Ended |
Dec. 31, 2021 | |
Vacation Ownership Contract Receivables [Abstract] | |
Vacation Ownership Contract Receivables | Vacation Ownership Contract Receivables The Company generates VOCRs by extending financing to the purchasers of its VOIs. As of December 31, Vacation ownership contract receivables, net consisted of (in millions): 2021 2020 Vacation ownership contract receivables: Securitized (a) $ 2,061 $ 2,458 Non-securitized (b) 758 717 Vacation ownership contract receivables, gross 2,819 3,175 Less: Allowance for loan losses 510 693 Vacation ownership contract receivables, net $ 2,309 $ 2,482 (a) Excludes $17 million and $23 million of accrued interest on VOCRs as of December 31, 2021 and 2020, which are included in Trade receivables, net on the Consolidated Balance Sheets. (b) Excludes $5 million and $9 million of accrued interest on VOCRs as of December 31, 2021 and 2020, which are included in Trade receivables, net on the Consolidated Balance Sheets. Principal payments due on the Company’s VOCRs during each of the five years subsequent to December 31, 2021, and thereafter are as follows (in millions): Securitized Non - Total 2022 $ 219 $ 68 $ 287 2023 233 77 310 2024 245 83 328 2025 258 88 346 2026 249 78 327 Thereafter 857 364 1,221 $ 2,061 $ 758 $ 2,819 During 2021, 2020, and 2019, the Company’s securitized VOCRs generated interest income of $304 million, $391 million, and $405 million. Such interest income is included within Consumer financing revenue on the Consolidated Statements of Income/(Loss). During 2021, 2020, and 2019, the Company had net VOCR originations of $780 million, $481 million, and $1.5 billion and received principal collections of $815 million, $718 million, and $937 million. The weighted average interest rate on outstanding VOCRs was 14.5%, 14.4%, and 14.4% during 2021, 2020, and 2019. The activity in the allowance for loan losses on VOCRs was as follows (in millions): Amount Allowance for loan losses as of December 31, 2018 $ 734 Provision for loan losses, net 479 Contract receivables write-offs, net (466) Allowance for loan losses as of December 31, 2019 747 Provision for loan losses, net 415 Contract receivables write-offs, net (469) Allowance for loan losses as of December 31, 2020 693 Provision for loan losses, net 129 Contract receivables write-offs, net (312) Allowance for loan losses as of December 31, 2021 $ 510 Due to the economic downturn resulting from COVID-19 during the first quarter of 2020, the Company evaluated the potential impact of COVID-19 on its owners’ ability to repay their contract receivables and as a result of current and projected unemployment rates at that time, the Company recorded a COVID-19 related allowance for loan losses. The Company based its COVID-19 loan loss estimate upon historical data on the relationship between unemployment rates and net new defaults observed during the most recent recession in 2008. This allowance consisted of a $225 million COVID-19 related provision, which was reflected as a reduction to Vacation ownership interest sales and $55 million of estimated recoveries, which were reflected as a reduction to Cost of vacation ownership interests on the Consolidated Statements of Income/(Loss). During the fourth quarter of 2020, the Company updated its evaluation of the impact of COVID-19 on its owners’ ability to repay their contract receivables and, as a result of an improvement in net new defaults and lower than expected unemployment rates, reduced the provision by $20 million with a corresponding $7 million increase in Cost of vacation ownership interests. The total impact of COVID-19 on the ability for owners’ to repay their contracts receivables for the year ended December 31, 2020, is reflected as a $205 million reduction to Vacation ownership interest sales and a $48 million reduction to Cost of vacation ownership interests on the Consolidated Statements of Income/(Loss). During 2021, the Company analyzed the adequacy of the COVID-19 related allowance consistent with past methodology, and due to improvement in net new defaults the Company reduced the allowance resulting in a $91 million increase to Vacation ownership interest sales and a corresponding $33 million increase to Cost of vacation ownership interests on the Consolidated Statements of Income/(Loss). Estimating the amount of the COVID-19 related allowance involves the use of significant estimates and assumptions. Since the time this allowance was established in March 2020, the Company has reversed $111 million of the initial $225 million provision. After considering write-offs and the allowance for remaining likely defaults associated with loans that were granted payment deferrals, the Company has no COVID-19 related allowances as of December 31, 2021. The Company recorded net provisions for loan losses of $129 million and $415 million as a reduction of net revenues during the years ended December 31, 2021 and 2020, inclusive of the aforementioned COVID-19 related adjustments. Credit Quality for Financed Receivables and the Allowance for Credit Losses The basis of the differentiation within the identified class of financed VOI contract receivables is the consumer’s Fair Isaac Corporation (“FICO”) score. A FICO score is a branded version of a consumer credit score widely used within the U.S. by the largest banks and lending institutions. FICO scores range from 300 to 850 and are calculated based on information obtained from one or more of the three major U.S. credit reporting agencies that compile and report on a consumer’s credit history. The Company updates its records for all active VOI contract receivables with a balance due on a rolling monthly basis to ensure that all VOI contract receivables are scored at least every six months. The Company groups all VOI contract receivables into five different categories: FICO scores ranging from 700 to 850, from 600 to 699, below 600, no score (primarily comprised of consumers for whom a score is not readily available, including consumers declining access to FICO scores and non-U.S. residents), and Asia Pacific (comprised of receivables in the Company’s Vacation Ownership Asia Pacific business for which scores are not readily available). The following table details an aging analysis of financing receivables using the most recently updated FICO scores, based on the policy described above (in millions): As of December 31, 2021 700+ 600-699 <600 No Score Asia Pacific Total Current $ 1,630 $ 734 $ 98 $ 72 $ 169 $ 2,703 31 - 60 days 17 24 10 3 1 55 61 - 90 days 9 12 7 1 — 29 91 - 120 days 9 12 9 1 1 32 Total (a) $ 1,665 $ 782 $ 124 $ 77 $ 171 $ 2,819 As of December 31, 2020 700+ 600-699 <600 No Score Asia Pacific Total Current $ 1,706 $ 835 $ 160 $ 96 $ 221 $ 3,018 31 - 60 days 20 25 13 4 2 64 61 - 90 days 13 18 12 3 1 47 91 - 120 days 12 16 14 3 1 46 Total (a) $ 1,751 $ 894 $ 199 $ 106 $ 225 $ 3,175 (a) Includes contracts under temporary deferment (up to 180 days). As of December 31, 2021 and 2020, contracts under deferment total $7 million and $37 million. The Company ceases to accrue interest on VOI contract receivables once the contract has remained delinquent for greater than 90 days and reverses all of the associated accrued interest recognized to date against interest income included within Consumer financing revenue on the Consolidated Statements of Income/(Loss). At greater than 120 days, the VOI contract receivable is written off to the allowance for loan losses. In accordance with its policy, the Company assesses the allowance for loan losses primarily using a static pool methodology and thus does not assess individual loans for impairment. The following table details the year of origination of financing receivables using the most recently updated FICO scores, based on the policy described above (in millions): As of December 31, 2021 700+ 600-699 <600 No Score Asia Pacific Total 2021 $ 534 $ 221 $ 11 $ 11 $ 38 $ 815 2020 224 105 17 6 38 390 2019 324 168 37 19 33 581 2018 234 117 25 14 24 414 2017 157 76 15 11 14 273 Prior 192 95 19 16 24 346 Total $ 1,665 $ 782 $ 124 $ 77 $ 171 $ 2,819 As of December 31, 2020 700+ 600-699 <600 No Score Asia Pacific Total 2020 $ 424 $ 173 $ 11 $ 17 $ 55 $ 680 2019 476 269 67 27 70 909 2018 339 183 50 21 36 629 2017 220 115 31 16 22 404 2016 128 63 16 10 16 233 Prior 164 91 24 15 26 320 Total $ 1,751 $ 894 $ 199 $ 106 $ 225 $ 3,175 |
Inventory
Inventory | 12 Months Ended |
Dec. 31, 2021 | |
Inventory Disclosure [Abstract] | |
Inventory | Inventory Inventory, as of December 31, consisted of (in millions): 2021 2020 Completed VOI inventory $ 998 $ 1,049 Estimated VOI recoveries 187 246 VOI construction in process 13 30 Inventory sold subject to repurchase 13 13 Vacation exchange credits and other 4 8 Land held for VOI development 1 1 Total inventory $ 1,216 $ 1,347 The Company had net transfers of $75 million and $30 million of VOI inventory to property and equipment during 2021 and 2020. During 2020, as a result of resort closures and cancellations surrounding COVID-19, the Company recorded a $48 million reduction to exchange inventory consisting of costs previously incurred by RCI to provide enhanced out-of-network travel options to members. The write-off was included within Operating expenses on the Consolidated Statements of Income/(Loss). The Company anticipates that remaining inventory will be fully utilized to maximize exchange supply for its members in 2022 and beyond. Inventory Sale Transactions During 2020, the Company acquired properties in Orlando, Florida, and Moab, Utah, from third-party developers for vacation ownership inventory and property and equipment. During 2013, the Company sold real property located in Las Vegas, Nevada, to a third-party developer, consisting of vacation ownership inventory and property and equipment. The Company recognized no gain or loss on 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. The following table summarizes the activity related to the Company’s inventory obligations (in millions): Las Vegas (a) Moab (a) Orlando (a) Other (b) Total December 31, 2019 $ 43 $ — $ — $ 6 $ 49 Purchases 36 41 44 107 228 Payments (66) (10) (22) (96) (194) December 31, 2020 13 31 22 17 83 Purchases 2 25 2 70 99 Payments (2) (56) (24) (86) (168) December 31, 2021 $ 13 $ — $ — $ 1 $ 14 (a) Included in Accrued expenses and other liabilities on the Consolidated Balance Sheets. (b) Included in Accounts payable on the Consolidated Balance Sheets. The Company has committed to repurchase the completed property located in Las Vegas, Nevada, from third-party developers subject to the property meeting the Company’s vacation ownership resort standards and provided that the third-party developers have not sold the property to another party. The maximum potential future payments that the Company may be required to make under these commitments was $65 million as of December 31, 2021. |
Property And Equipment, Net
Property And Equipment, Net | 12 Months Ended |
Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Property And Equipment, Net | Property and Equipment, net Property and equipment, net, as of December 31, consisted of (in millions): 2021 2020 Capitalized software $ 707 $ 694 Building and leasehold improvements 653 591 Furniture, fixtures and equipment 204 207 Land 30 30 Finance leases 20 14 Construction in progress 18 12 Total property and equipment 1,632 1,548 Less: Accumulated depreciation and amortization 943 882 Property and equipment, net $ 689 $ 666 During 2021, 2020, and 2019, the Company recorded depreciation and amortization expense of $115 million, $117 million, and $113 million related to property and equipment. As of December 31, 2021 and 2020, the Company had accrued capital expenditures of $1 million and $3 million. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2021 | |
Leases [Abstract] | |
Lessee, Finance Leases | Leases The Company leases property and equipment under finance and operating leases for its corporate headquarters, administrative functions, marketing and sales offices, and various other facilities and equipment. For leases with terms greater than 12 months, the Company records the related asset and obligation at the present value of lease payments over the term. Many of its leases include rental escalation clauses, lease incentives, renewal options and/or termination options that are factored into the Company’s determination of lease payments. The Company elected the hindsight practical expedient to determine the reasonably certain lease term for existing leases. The Company also made an accounting policy election to keep leases with an initial term of 12 months or less off the balance sheet and recognize the associated lease payments on a straight-line basis over the lease term in the Consolidated Statements of Income/(Loss). When available, the Company uses the rate implicit in the lease to discount lease payments to present value; however, most of its leases do not provide a readily determinable implicit rate. Therefore, the Company must estimate its incremental borrowing rate to discount the lease payments based on information available at lease commencement. The majority of the Company’s leases have remaining lease terms of one The table below presents information related to the lease costs for finance and operating leases for the years ended December 31, (in millions): 2021 2020 2019 Operating lease cost $ 22 $ 30 $ 37 Short-term lease cost $ 13 $ 14 $ 23 Finance lease cost: Amortization of right-of-use assets $ 4 $ 3 $ 2 Interest on lease liabilities — — — Total finance lease cost $ 4 $ 3 $ 2 The table below presents the lease-related assets and liabilities recorded on the Consolidated Balance Sheets: Balance Sheet Classification December 31, 2021 December 31, 2020 Operating Leases (in millions): Operating lease right-of-use assets Other assets $ 79 $ 92 Operating lease liabilities Accrued expenses and other liabilities $ 136 $ 157 Finance Leases (in millions): Finance lease assets (a) Property and equipment, net $ 10 $ 8 Finance lease liabilities Debt $ 9 $ 7 Weighted Average Remaining Lease Term: Operating leases 6.4 years 7.1 years Finance leases 2.6 years 2.6 years Weighted Average Discount Rate: Operating leases (b) 5.8 % 5.9 % Finance leases 4.4 % 5.6 % (a) Presented net of accumulated depreciation. (b) Upon adoption of the lease standard, discount rates used for existing leases were established at January 1, 2019. The table below presents supplemental cash flow information related to leases for the years ended December 31, (in millions): 2021 2020 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 36 $ 36 $ 48 Operating cash flows from finance leases — — — Financing cash flows from finance leases 4 4 2 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 7 $ 3 $ 8 Finance leases 6 6 3 The table below presents maturities of lease liabilities as of December 31, 2021 (in millions): Operating Leases Finance 2022 $ 32 $ 5 2023 30 3 2024 28 2 2025 24 — 2026 14 — Thereafter 35 — Total minimum lease payments 163 10 Less: Amount of lease payments representing interest (27) (1) Present value of future minimum lease payments $ 136 $ 9 Due to the impact of COVID-19 during 2020, the Company decided to abandon the remaining portion of its administrative offices in New Jersey. In 2020, the Company was also notified that Wyndham Hotels exercised its early termination rights under the sublease agreement for this building. As a result, the Company recorded $22 million of restructuring charges associated with non-lease components of the office space and $24 million of impairment charges associated with the write-off of right-of-use assets and furniture, fixtures and equipment. Additionally during 2020, the Company incurred $5 million of impairment charges related to right-of-use assets at closed sales centers within its Vacation Ownership segment, and $1 million of restructuring charges at each of the Vacation Ownership and corporate segments related to right-of-use assets at its corporate headquarters. Subsequent to the Spin-off and in accordance with the Company’s decision to further reduce its corporate footprint, the Company focused on rationalizing existing facilities which included abandoning portions of its administrative offices in New Jersey. As a result, during 2019 the Company recorded $12 million of non-cash impairment charges associated with the write-off of right-of-use assets and furniture, fixtures and equipment. During 2019, the Company also entered into an early termination agreement for an operating lease in Chicago, Illinois, resulting in $6 million of non-cash impairment charges associated with the write-off of right-of-use assets, related lease liabilities, and furniture, fixtures and equipment. These charges were offset by a $9 million indemnification receivable from Wyndham Hotels. Such amounts are included within Separation and related costs on the Consolidated Statements of Income/(Loss). Refer to Note 27— Impairments and Other Charges for additional information on the Company’s lease related impairments. |
Other Assets
Other Assets | 12 Months Ended |
Dec. 31, 2021 | |
Other Assets [Abstract] | |
Other Assets | Other Assets Other assets, as of December 31, consisted of (in millions): 2021 2020 Deferred costs $ 81 $ 90 Right-of-use assets 79 92 Non-trade receivables, net 57 77 Marketable securities 27 9 Deferred tax asset 25 27 Investments 21 26 Deposits 19 20 Tax receivables 5 20 Other 25 26 $ 339 $ 387 |
Accrued Expenses and Other Liab
Accrued Expenses and Other Liabilities | 12 Months Ended |
Dec. 31, 2021 | |
Accrued Liabilities and Other Liabilities [Abstract] | |
Accrued Expenses And Other Current Liabilities | Accrued Expenses and Other Liabilities Accrued expenses and other liabilities, as of December 31, consisted of (in millions): 2021 2020 Accrued payroll and related costs $ 209 $ 166 Lease liabilities (a) 136 157 Accrued taxes 106 73 Guarantees 67 67 Resort related obligations 54 39 Accrued interest 53 65 Deferred consideration 52 21 Payables associated with separation and sale of business activities 39 39 Accrued advertising and marketing 34 61 Accrued VOI maintenance fees 29 24 Restructuring liabilities (b) 22 26 Accrued legal and professional fees 21 20 Accrued legal settlements 19 13 Inventory sale obligation (c) 13 66 Customer advances 10 10 Accrued separation costs — 7 COVID-19 liabilities (d) 1 6 Accrued other 74 69 $ 939 $ 929 (a) See Note 13— Leases for details. (b) See Note 28— Restructuring for details. (c) See Note 11— Inventory for details. (d) See Note 26— COVID-19 Related Items for details. |
Debt
Debt | 12 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
Debt | Debt The Company’s indebtedness, as of December 31, consisted of (in millions): 2021 2020 Non-recourse vacation ownership debt : (a) Term notes (b) $ 1,614 $ 1,893 USD bank conduit facility (due October 2022) (c) 190 168 AUD/NZD bank conduit facility (due April 2023) (d) 130 173 Total $ 1,934 $ 2,234 Debt : (e) $1.0 billion secured revolving credit facility (due October 2026) (f) $ — $ 547 $300 million secured term loan B (due May 2025) (g) 288 291 $250 million 5.625% secured notes (due March 2021) — 250 $650 million 4.25% secured notes (due March 2022) (h) — 650 $400 million 3.90% secured notes (due March 2023) (i) 401 402 $300 million 5.65% secured notes (due April 2024) 299 299 $350 million 6.60% secured notes (due October 2025) (j) 345 344 $650 million 6.625% secured notes (due July 2026) 643 641 $400 million 6.00% secured notes (due April 2027) (k) 407 408 $650 million 4.50% secured notes (due December 2029) 641 — $350 million 4.625% secured notes (due March 2030) 346 345 Finance leases 9 7 Total $ 3,379 $ 4,184 (a) Represents non-recourse debt that is securitized through bankruptcy-remote special purpose entities (“SPEs”), the creditors of which have no recourse to the Company for principal and interest. These outstanding borrowings (which legally are not liabilities of the Company) are collateralized by $2.17 billion and $2.57 billion of underlying gross VOCRs and related assets (which legally are not assets of the Company) as of December 31, 2021 and 2020. (b) The carrying amounts of the term notes are net of debt issuance costs of $18 million and $21 million as of December 31, 2021 and 2020. (c) The Company has a borrowing capacity of $800 million under the USD bank conduit facility through October 2022. Borrowings under this facility are required to be repaid as the collateralized receivables amortize but no later than November 2023. (d) The Company has a borrowing capacity of 250 million Australian dollars (“AUD”) and 48 million New Zealand dollars (“NZD”) under the AUD/NZD bank conduit facility through April 2023. Borrowings under this facility are required to be repaid no later than May 2025. (e) The carrying amounts of the secured notes and term loan are net of unamortized discounts of $20 million and $16 million as of December 31, 2021 and 2020, and net of unamortized debt financing costs of $8 million and $7 million as of December 31, 2021 and 2020. (f) The weighted average effective interest rate on borrowings from this facility was 3.19% and 3.02% as of December 31, 2021 and 2020. In late March 2020, the Company drew down its $1.0 billion secured revolving credit facility as a precautionary measure due to COVID-19. As of December 31, 2021, these borrowings have been repaid. (g) The weighted average effective interest rate on borrowings from this facility was 2.39% and 2.93% as of December 31, 2021 and 2020. (h) Includes less than $1 million of unamortized gains from the settlement of a derivative as of December 31, 2020. (i) Includes $2 million and $3 million of unamortized gains from the settlement of a derivative as of December 31, 2021 and 2020. (j) Includes $4 million and $5 million of unamortized losses from the settlement of a derivative as of December 31, 2021 and 2020. (k) Includes $9 million and $11 million of unamortized gains from the settlement of a derivative as of December 31, 2021 and 2020. Maturities and Capacity The Company’s outstanding debt as of December 31, 2021, matures as follows (in millions): Non-recourse Vacation Ownership Debt Debt Total Within 1 year $ 424 $ 7 $ 431 Between 1 and 2 years 234 407 641 Between 2 and 3 years 201 303 504 Between 3 and 4 years 201 625 826 Between 4 and 5 years 214 643 857 Thereafter 660 1,394 2,054 $ 1,934 $ 3,379 $ 5,313 Required principal payments on the non-recourse vacation ownership debt are based on the contractual repayment terms of the underlying VOCRs. Actual maturities may differ as a result of prepayments by the VOCR obligors. As of December 31, 2021, the available capacity under the Company’s borrowing arrangements was as follows (in millions): Non-recourse Conduit Facilities (a) Revolving Credit Facilities (b) Total capacity $ 1,018 $ 1,000 Less: Outstanding borrowings 320 — Less: Letters of credit — 2 Available capacity $ 698 $ 998 (a) Consists of the Company’s USD bank conduit facility and AUD/NZD bank conduit facility. The capacity of these facilities is subject to the Company’s ability to provide additional assets to collateralize additional non-recourse borrowings. (b) Consists of the Company’s $1.0 billion secured revolving credit facility. Non-recourse Vacation Ownership Debt As discussed in Note 17— Variable Interest Entities , the Company issues debt through the securitization of VOCRs. Sierra Timeshare 2021-1 Receivables Funding, LLC. On March 8, 2021, the Company closed on a placement of a series of term notes payable, issued by Sierra Timeshare 2021-1 Receivables Fundings LLC, with an initial principal amount of $500 million, secured by VOCRs and bearing interest at a weighted average coupon rate of 1.57%. The advance rate for this transaction was 98%. As of December 31, 2021, the Company had $316 million of outstanding borrowings under these term notes, net of debt issuance costs. Sierra Timeshare 2021-2 Receivables Funding LLC. On October 26, 2021, the Company closed on a placement of a series of term notes payable, issued by Sierra Timeshare 2021-2 Receivables Funding LLC, with an initial principal amount of $350 million, secured by VOCRs and bearing interest at a weighted average coupon rate of 1.82%. The advance rate for this transaction was 98%. As of December 31, 2021, the Company had $309 million of outstanding borrowings under these term notes, net of debt issuance costs. Term Notes. In addition to the 2021 term notes described above, as of December 31, 2021, the Company had $989 million of outstanding non-recourse borrowings, net of debt issuance costs, under term notes entered into prior to December 31, 2020. The Company’s non-recourse term notes include fixed and floating rate term notes for which the weighted average interest rate was 3.9%, 4.5%, and 4.5% during 2021, 2020, and 2019. USD bank conduit facility . The Company has a non-recourse timeshare receivables conduit facility with a total capacity of $800 million and bearing interest based on variable commercial paper rates plus a spread or LIBOR (or a successor rate), plus a spread. Borrowings under this facility are required to be repaid as the collateralized receivables amortize, no later than November 2023. As of December 31, 2021, the Company had $190 million of outstanding borrowings under this facility. AUD/NZD bank conduit facility. On April 27, 2021, the Company renewed its AUD/NZD non-recourse timeshare receivables conduit facility, extending the commitment period from September 2021 to April 2023. The renewal included a reduction of the AUD borrowing from A$255 million to A$250 million, while the NZD capacity remained unchanged at NZ$48 million. The facility is secured by VOCRs and bears interest at variable rates based on the Bank Bill Swap Bid Rate plus 1.65%. Borrowings under this facility are required to be repaid no later than May 2025. As of December 31, 2021, the Company had $130 million of outstanding borrowings under this facility. As of December 31, 2021, the Company’s non-recourse vacation ownership debt of $1.93 billion was collateralized by $2.17 billion of underlying gross VOCRs and related assets. Additional usage of the capacity of the Company’s non-recourse bank conduit facilities are subject to the Company’s ability to provide additional assets to collateralize such facilities. The combined weighted average interest rate on the Company’s total non-recourse vacation ownership debt was 4.0%, 4.2%, and 4.4% during 2021, 2020, and 2019. Debt $1.0 billion Revolving Credit Facility and $300 million Term Loan B. In 2018, the Company entered into a credit agreement with Bank of America, N.A. as administrative agent and collateral agent. The agreement provided for senior secured credit facilities in the amount of $1.3 billion, consisting of the secured term loan B of $300 million maturing in 2025 and a secured revolving facility of $1.0 billion maturing in 2026. On October 22, 2021, the Company entered the Second Amendment which renewed the credit agreement governing its $1.0 billion revolving credit facility and term loan B, extending the end of the commitment period of the revolving credit facility from May 2023 to October 2026. The Second Amendment reestablished the annual interest rate pricing construct in existence prior to the First Amendment which is equal to, at the Company’s option, either a base rate plus a margin ranging from 0.75% to 1.25% or LIBOR plus a margin ranging from 1.75% to 2.25%, in either case based upon the Company’s first lien leverage ratio. The interest rate per annum applicable to term loan B is equal to, at the Company’s option, either a base rate plus a margin of 1.25% or LIBOR plus a margin of 2.25%. The Second Amendment also includes customary LIBOR transition language providing for alternate interest rate options upon the cessation of LIBOR publication. As of December 31, 2021, the Company’s interest rate per annum applicable to term loan B and borrowings under the revolving credit facility was the applicable LIBOR based rate plus a margin of 2.25%. As of December 31, 2021, the security agreement that exists in connection with the credit agreement names Bank of America N.A. as collateral agent on behalf of the secured parties (as defined in the security agreement), and has been in force since May 31 2018. The security agreement grants a security interest in the collateral of the Company (as defined in the security agreement) and includes the holders of Travel + Leisure Co.'s 3.90% notes due 2023, 5.65% notes due 2024, 6.60% notes due 2025, 6.625% notes due 2026, 6.00% notes due 2027, 4.50% notes due 2029, and the 4.625% notes due 2030, as “secured parties.” These noteholders share equally and ratably in the collateral (as defined in the security agreement) owned by the Company for so long as the indebtedness under the credit agreement is secured by such collateral. The interest rates on the aforementioned notes reflect increases for those notes that were impacted by the rating agency downgrades of the Company’s corporate notes. Pursuant to the terms of the indentures governing such rating sensitive series of notes, the interest rate on each such series of notes may be subject to future increases or decreases, as a result of future downgrades or upgrades to the credit ratings of such notes by Standard & Poor’s Rating Services (“S&P”), Moody’s Investors Services, Inc. (“Moody’s”), or a substitute rating agency. Since issuance, the interest rates on the impacted notes have increased 150 basis points as of December 31, 2021, with a maximum potential for additional increase of 50 basis points. Secured Notes. On November 18, 2021, the Company issued secured notes, with a face value of $650 million and an interest rate of 4.5%, for net proceeds of $643 million. Debt discount and deferred financing costs were collectively $9 million, which will be amortized over the life of the notes. Interest is payable semi-annually in arrears. The notes will mature on December 1, 2029, and are redeemable at the Company’s option at a redemption price equal to the greater of (i) the sum of the principal being redeemed, and (ii) a “make-whole” price specified in the indenture and the notes, plus, in each case, accrued and unpaid interest. The net proceeds of this offering, together with cash on hand, was used to redeem all of the Company’s $650 million 4.25% secured notes due March 2022, and to pay the related fees and expenses. As of December 31, 2021, the Company had $2.44 billion of outstanding secured notes issued prior to December 31, 2020. Interest on these notes is payable semi-annually in arrears. The notes are redeemable at the Company’s option at a redemption price equal to the greater of (i) the sum of the principal being redeemed, and (ii) a “make-whole” price specified in the indenture of the notes, plus, in each case, accrued and unpaid interest. These notes rank equally in right of payment with all of the Company’s other secured indebtedness. Deferred Financing Costs The Company classifies debt issuance costs related to its revolving credit facilities and the bank conduit facilities within Other assets on the Consolidated Balance Sheets. Such costs were $10 million and $11 million as of December 31, 2021 and 2020. Fair Value Hedges During 2017, the Company entered into pay-variable/receive-fixed interest rate swap agreements on its 6.00% secured notes with notional amounts of $400 million. The fixed interest rates on these notes were effectively modified to a variable LIBOR-based index. During 2019, the Company terminated these swap agreements resulting in a gain of $13 million which will be amortized over the remaining life of the secured notes as a reduction to Interest expense on the Consolidated Statements of Income/(Loss). The Company had $9 million and $11 million of deferred gains associated with this transaction as of December 31, 2021 and 2020, which are included within Debt on the Consolidated Balance Sheets. During 2013, the Company entered into pay-variable/receive-fixed interest rate swap agreements on its 3.90% and 4.25% senior unsecured notes with notional amounts of $400 million and $100 million. The fixed interest rates on these notes were effectively modified to a variable LIBOR-based index. During 2015, the Company terminated the swap agreements resulting in a gain of $17 million, which is being amortized over the remaining life of the senior secured notes as a reduction to Interest expense on the Consolidated Statements of Income/(Loss). The Company had $2 million and $4 million of deferred gains as of December 31, 2021 and 2020, which are included within Debt on the Consolidated Balance Sheets. Debt Covenants The revolving credit facilities and term loan B are subject to covenants including the maintenance of specific financial ratios as defined in the credit agreement. The original financial ratio covenants consist of a minimum interest coverage ratio of no less than 2.5 to 1.0 as of the measurement date and a maximum first lien leverage ratio not to exceed 4.25 to 1.0 as of the measurement date. The interest coverage ratio is calculated by dividing consolidated EBITDA (as defined in the credit agreement) by consolidated interest expense (as defined in the credit agreement), both as measured on a trailing 12-month basis preceding the measurement date. The first lien leverage ratio is calculated by dividing consolidated first lien debt (as defined in the credit agreement) as of the measurement date by consolidated EBITDA (as defined in the credit agreement) as measured on a trailing 12-month basis preceding the measurement date. On July 15, 2020, the Company entered into the First Amendment to the Company’s credit agreement governing its revolving credit facility and term loan B. The First Amendment established a Relief Period with respect to the Company’s secured revolving credit facility, which commenced on July 15, 2020, and was scheduled to end on April 1, 2022. The First Amendment increased the existing leverage-based financial covenant of 4.25 to 1.0 by varying levels for each applicable quarter during the Relief Period. Among other changes, the First Amendment increased the interest rate applicable to borrowings under the Company’s secured revolving credit facility utilizing a tiered pricing grid based on the Company’s first lien leverage ratio in any quarter it exceeded 4.25 to 1.0, until the end of the Relief Period; added a new minimum liquidity covenant, tested quarterly until the end of the Relief Period, of (i) $250 million plus (ii) 50% of the aggregate amount of dividends paid after the effective date of the First Amendment and on or prior to the last day of the relevant fiscal quarter; and required the Company to maintain an interest coverage ratio (as defined in the credit agreement) of no less than 2.0 to 1.0. The First Amendment amended the definition of “Material Adverse Effect” in the credit agreement to take into consideration the impacts of the COVID-19 pandemic during the Relief Period. The Relief Period included certain restrictions on the use of cash including the prohibition of share repurchases. Finally, the First Amendment limited the payout of dividends during the Relief Period to not exceed $0.50 per share, the rate in effect prior to the amendment. Under the First Amendment to the credit agreement, if the first lien leverage ratio exceeded 4.25 to 1.0, the interest rate on revolver borrowings would increase, and the Company would be subject to higher fees associated with its letters of credit, both of which were based on a tiered pricing grid. Given the first lien leverage ratio at December 31, 2020, the fees associated with letters of credit and the interest rate on the revolver borrowings increased 25 basis points effective March 1, 2021, until the Relief period was terminated by the Second Amendment on October 22, 2021. The Second Amendment stipulated a first lien leverage ratio financial covenant not to exceed 4.75 to 1.0 commencing with the December 31, 2021 period through June 30, 2022, after which time it will return to 4.25 to 1.0, the level in existence prior to the effective date of the First Amendment. The Second Amendment also increased the interest coverage ratio (as defined in the credit agreement) to no less than 2.5 to 1.0, the level existing prior to the effective date of the First Amendment, and eliminated restrictions regarding share repurchases, dividends, acquisitions, and the Relief Period minimum liquidity covenant. In connection with entering the Second Amendment, the Company resumed share repurchases during the fourth quarter of 2021. The Second Amendment reestablished the tiered pricing grid that was in place prior to the First Amendment. The interest rate on revolver borrowings and fees associated with letters of credit are subject to future changes based on the Company’s first lien leverage ratio which could serve to further reduce the interest rate if the ratio were to decrease to 3.75 to 1.0 or below. As of December 31, 2021, the Company’s interest coverage ratio was 4.00 to 1.0 and the first lien leverage ratio was 3.99 to 1.0. These ratios do not include interest expense or indebtedness related to any qualified securitization financing (as defined in the credit agreement). As of December 31, 2021, the Company was in compliance with all of the financial covenants described above. Each of the Company’s non-recourse securitized term notes, and the bank conduit facilities contain various triggers relating to the performance of the applicable loan pools. If the VOCR pool that collateralizes one of the Company’s securitization notes fails to perform within the parameters established by the contractual triggers (such as higher default or delinquency rates), there are provisions pursuant to which the cash flows for that pool will be maintained in the securitization as extra collateral for the note holders or applied to accelerate the repayment of outstanding principal to the note holders. As of December 31, 2021, all of the Company’s securitized loan pools were in compliance with applicable contractual triggers. Interest Expense The Company incurred interest expense of $198 million during 2021, consisting of interest on debt, excluding non-recourse vacation ownership debt, and including an offset of less than $1 million of capitalized interest. Cash paid related to such interest was $207 million. The Company incurred interest expense of $192 million during 2020, consisting of interest on debt, excluding non-recourse vacation ownership debt, and including an offset of $1 million of capitalized interest. Cash paid related to such interest was $163 million. The Company incurred interest expense of $162 million during 2019, consisting of interest on debt, excluding non-recourse vacation ownership debt, and including an offset of $3 million of capitalized interest. Cash paid related to such interest was $158 million. Interest expense incurred in connection with the Company’s non-recourse vacation ownership debt was $81 million, $101 million, and $106 million during 2021, 2020, and 2019, and is reported within Consumer financing interest on the Consolidated Statements of Income/(Loss). Cash paid related to such interest was $56 million, $74 million, and $81 million during 2021, 2020, and 2019. |
Variable Interest Entities
Variable Interest Entities | 12 Months Ended |
Dec. 31, 2021 | |
Variable Interest Entity, Primary Beneficiary, Does Not Hold Majority Voting Interest, Disclosures [Abstract] | |
Variable Interest Entities | Variable Interest Entities The Company analyzes its variable interests, including loans, guarantees, SPEs, and equity investments, to determine if an entity in which the Company has a variable interest is a VIE. If the entity is deemed to be a VIE, the Company consolidates those VIEs for which the Company is the primary beneficiary. Vacation Ownership Contract Receivables Securitizations The Company pools qualifying VOCRs and sells them to bankruptcy-remote entities. VOCRs qualify for securitization based primarily on the credit strength of the VOI purchaser to whom financing has been extended. VOCRs are securitized through bankruptcy-remote SPEs that are consolidated within the Consolidated Financial Statements. As a result, the Company does not recognize gains or losses resulting from these securitizations at the time of sale to the SPEs. Interest income is recognized when earned over the contractual life of the VOCRs. The Company services the securitized VOCRs pursuant to servicing agreements negotiated on an arm’s-length basis based on market conditions. The activities of these SPEs are limited to (i) purchasing VOCRs from the Company’s vacation ownership subsidiaries, (ii) issuing debt securities and/or borrowing under a conduit facility to fund such purchases, and (iii) entering into derivatives to hedge interest rate exposure. The bankruptcy-remote SPEs are legally separate from the Company. The receivables held by the bankruptcy-remote SPEs are not available to creditors of the Company and legally are not assets of the Company. Additionally, the non-recourse debt that is securitized through the SPEs is legally not a liability of the Company and thus, the creditors of these SPEs have no recourse to the Company for principal and interest. The assets and liabilities of these vacation ownership SPEs are as follows (in millions): December 31, December 31, Securitized contract receivables, gross (a) $ 2,061 $ 2,458 Securitized restricted cash (b) 84 92 Interest receivables on securitized contract receivables (c) 17 23 Other assets (d) 4 5 Total SPE assets 2,166 2,578 Non-recourse term notes (e)(f) 1,614 1,893 Non-recourse conduit facilities (e) 320 341 Other liabilities (g) 2 2 Total SPE liabilities 1,936 2,236 SPE assets in excess of SPE liabilities $ 230 $ 342 (a) Included in Vacation ownership contract receivables, net on the Consolidated Balance Sheets. (b) Included in Restricted cash on the Consolidated Balance Sheets. (c) Included in Trade receivables, net on the Consolidated Balance Sheets. (d) Primarily includes deferred financing costs for the bank conduit facility and a security investment asset, which is included in Other assets on the Consolidated Balance Sheets. (e) Included in Non-recourse vacation ownership debt on the Consolidated Balance Sheets. (f) Includes deferred financing costs of $18 million and $21 million as of December 31, 2021 and 2020, related to non-recourse debt. (g) Primarily includes accrued interest on non-recourse debt, which is included in Accrued expenses and other liabilities on the Consolidated Balance Sheets. In addition, the Company has VOCRs that have not been securitized through bankruptcy-remote SPEs. Such gross receivables were $758 million and $717 million as of December 31, 2021 and 2020. A summary of total vacation ownership receivables and other securitized assets, net of securitized liabilities and the allowance for loan losses, is as follows (in millions): December 31, December 31, SPE assets in excess of SPE liabilities $ 230 $ 342 Non-securitized contract receivables 758 717 Less: Allowance for loan losses 510 693 Total, net $ 478 $ 366 Saint Thomas, U.S. Virgin Islands Property During 2015, the Company sold real property located in Saint Thomas, U.S. Virgin Islands, to a third-party developer to construct VOI inventory through an SPE. In accordance with the agreements with the third-party developer, the Company has conditional rights and conditional obligations to repurchase the completed property from the developer subject to the property conforming to the Company’s vacation ownership resort standards and provided that the third-party developer has not sold the property to another party. As a result of a disruption to VOI sales caused by the impact of the hurricanes on Saint Thomas, U.S. Virgin Islands, in 2017, there was a change in the economics of the transaction due to a reduction in the fair value of the assets of the SPE. As such, during 2017, the Company was considered the primary beneficiary for specified assets and liabilities of the SPE, and therefore consolidated $64 million of Property and equipment, net and $104 million of Debt on its Consolidated Balance Sheets. As a result of this consolidation, the Company incurred a non-cash $37 million loss due to the write-down of property and equipment to fair value. During 2019, the Company made its final purchase of VOI inventory from the SPE and the debt was extinguished. |
Fair Value
Fair Value | 12 Months Ended |
Dec. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value | Fair Value The Company measures its financial assets and liabilities at fair value on a recurring basis and utilizes the fair value hierarchy to determine such fair values. Financial assets and liabilities carried at fair value are classified and disclosed in one of the following three categories: Level 1: Quoted prices for identical instruments in active markets. Level 2: Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations whose inputs are observable or whose significant value driver is observable. Level 3: Unobservable inputs used when little or no market data is available. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, the level in the fair value hierarchy within which the fair value measurement falls has been determined based on the lowest level input (closest to Level 3) that is significant to the fair value measurement. The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment, and considers factors specific to the asset or liability. The Company’s derivative instruments currently consist of interest rate caps and foreign exchange forward contracts. See Note 19— Financial Instruments for additional details. As of December 31, 2021, the Company had foreign exchange contracts resulting in $1 million of assets which are included within Other assets and less than $1 million of liabilities which are included in Accrued expenses and other liabilities on the Consolidated Balance Sheets. On a recurring basis, such assets and liabilities are remeasured at estimated fair value (all of which are Level 2) and thus are equal to the carrying value. The impact of interest rate caps was immaterial as of December 31, 2021 and 2020. For assets and liabilities that are measured using quoted prices in active markets, the fair value is the published market price per unit multiplied by the number of units held without consideration of transaction costs. Assets and liabilities that are measured using other significant observable inputs are valued by reference to similar assets and liabilities. For these items, a significant portion of fair value is derived by reference to quoted prices of similar assets and liabilities in active markets. For assets and liabilities that are measured using significant unobservable inputs, fair value is primarily derived using a fair value model, such as a discounted cash flow model. The fair value of financial instruments is generally determined by reference to market values resulting from trading on a national securities exchange or in an over-the-counter market. In cases where quoted market prices are not available, fair value is based on estimates using present value or other valuation techniques, as appropriate. The carrying amounts of cash and cash equivalents, restricted cash, trade receivables, accounts payable, and accrued expenses and other current liabilities approximate fair value due to the short-term maturities of these assets and liabilities. The carrying amounts and estimated fair values of all other financial instruments were as follows (in millions): December 31, 2021 December 31, 2020 Carrying Estimated Fair Value Carrying Estimated Fair Value Assets Vacation ownership contract receivables, net (Level 3) $ 2,309 $ 2,858 $ 2,482 $ 3,035 Liabilities Debt (Level 2) $ 5,313 $ 5,514 $ 6,418 $ 6,705 The Company estimates the fair value of its VOCRs using a discounted cash flow model which it believes is comparable to the model that an independent third-party would use in the current market. The model uses Level 3 inputs consisting of default rates, prepayment rates, coupon rates, and loan terms for the contract receivables portfolio as key drivers of risk and relative value that, when applied in combination with pricing parameters, determines the fair value of the underlying contract receivables. |
Financial Instruments
Financial Instruments | 12 Months Ended |
Dec. 31, 2021 | |
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 on 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 qualifying cash flow hedges, are recorded in Accumulated other comprehensive loss (“AOCL”). The derivative’s gain or loss is released from AOCL to match the timing of the underlying hedged cash flows effect on earnings. A hedge is designated as a fair value hedge when the derivative is used to manage an exposure to changes in the fair value of a recognized asset or liability. For fair value hedges, the portion of the gain or loss on the derivative instrument designated as a fair value hedge will be recognized in earnings. The Company concurrently records changes in the value of the hedged asset or liability via a basis adjustment to the hedged item. These two changes in fair value offset one another in whole or in part and are reported in the same statement of income line item as the hedged risk. 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 AOCL 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 AOCL. Changes in interest rates and foreign exchange rates expose the Company to market risk. The Company periodically uses cash flow and fair value 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 Euro, British pound sterling, Australian and Canadian dollars, and Mexican peso. The Company uses freestanding foreign currency forward contracts to manage a portion of its exposure to changes in foreign currency exchange rates associated with its foreign currency denominated receivables, payables, and forecasted earnings of foreign subsidiaries. Additionally, the Company has used foreign currency forward contracts designated as cash flow hedges to manage a portion of its exposure to changes in forecasted foreign currency denominated vendor payments. The amount of gains or losses relating to contracts designated as cash flow hedges that the Company expects to reclassify from AOCL to earnings over the next 12 months is not material. Interest Rate Risk A portion of the debt used to finance the Company’s operations is exposed to interest rate fluctuations. The Company periodically uses financial derivatives to strategically adjust its mix of fixed to floating rate debt. The derivative instruments utilized include interest rate swaps which convert fixed-rate debt into variable-rate debt (i.e. fair value hedges) and interest rate caps (undesignated hedges) to manage the overall interest cost. For relationships designated as fair value hedges, changes in fair value of the derivatives are recorded in income, with offsetting adjustments to the carrying amount of the hedged debt. As of December 31, 2021, the Company had no interest rate derivatives designated as fair value or cash flow hedges. There were no losses on derivatives recognized in AOCL for the years ended December 31, 2021, 2020, or 2019. The following table summarizes information regarding the gains recognized in income on the Company’s freestanding derivatives for the years ended December 31 (in millions): 2021 2020 2019 Non-designated hedging instruments Foreign exchange contracts (a) $ 1 $ 3 $ 1 (a) Included within Operating expenses on the Consolidated Statements of Income/(Loss), which is primarily offset by changes in the value of the underlying assets and liabilities. 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, 2021, there were no significant concentrations of credit risk with any individual counterparty or groups of counterparties. However, 17% of the Company’s outstanding VOCRs 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, extreme weather conditions and other 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 and Nevada are examples of areas with concentrations of sales offices. For the year ended December 31, 2021, 15% of the Company’s VOI sales revenues were generated in sales offices located in Florida and 15% in Nevada. Included within the Consolidated Statements of Income/(Loss) are net revenues generated from transactions in the state of Florida of 15%, 18%, and 19% during 2021, 2020, and 2019; net revenues generated from transactions in California of 10%, 12%, and 11%; and net revenues generated from transactions in the state of Nevada of 10%, 6%, and 9%. |
Commitments And Contingencies
Commitments And Contingencies | 12 Months Ended |
Dec. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies COMMITMENTS Leases The Company is committed to making finance and operating lease payments covering various facilities and equipment. Total future minimum lease obligations are $173 million, including finance leases, operating leases, leases signed but not yet commenced, and leases with a lease term of less than 12 months. See Note 13— Leases for additional detail. 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, 2021, aggregated to $826 million, of which $656 million were for marketing-related activities, $61 million were related to the development of vacation ownership properties, and $45 million were for information technology activities. Inventory Sold Subject to Conditional Repurchase In the normal course of business, the Company makes various commitments to repurchase completed vacation ownership properties from third-party developers. Inventory sold subject to conditional repurchase made by the Company as of December 31, 2021 aggregated to $65 million. See Note 11— Inventory for additional detail. Letters of Credit As of December 31, 2021, the Company had $36 million of irrevocable standby letters of credit outstanding, of which $2 million were under its revolving credit facilities. As of December 31, 2020, the Company had $127 million of irrevocable standby letters of credit outstanding, of which $96 million were under its revolving credit facilities. Such letters of credit issued during 2020 included a $48 million letter of credit for guarantees related to the sale of the European vacation rentals business for which Wyndham Hotels and Travel + Leisure Co. are required to maintain certain credit ratings. This letter of credit was released during 2021, see Note 29— Transactions with Former Parent and Former Subsidiaries for additional details. The letters of credit issued during 2021 and 2020 also supported the securitization of VOCR fundings, certain insurance policies, and development activity at the Company’s Vacation Ownership segment. Surety Bonds A portion 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 12 surety providers in the amount of $2.3 billion, of which the Company had $292 million outstanding as of December 31, 2021. 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, its vacation ownership business could be negatively impacted. L ITIGATION The Company is involved in claims, legal and regulatory proceedings, and governmental inquiries related to its business, none of which, in the opinion of management, is expected to have a material effect on the Company’s results of operations or financial condition. Travel + Leisure Co. Litigation The Company may be from time to time involved in claims, legal and regulatory proceedings, and governmental inquiries arising in the ordinary course of its business including but not limited to: for its Vacation Ownership business — breach of contract, bad faith, conflict of interest, fraud, consumer protection and other statutory claims by property owners’ associations, owners and prospective owners in connection with the sale or use of VOIs or land, or the management of vacation ownership resorts, construction defect claims relating to vacation ownership units or resorts or in relation to guest reservations and bookings; and negligence, breach of contract, fraud, consumer protection and other statutory claims by guests and other consumers for alleged injuries sustained at or acts or occurrences related to vacation ownership units or resorts or in relation to guest reservations and bookings; for its Travel and Membership business — breach of contract, fraud and bad faith claims by affiliates and customers in connection with their respective agreements, negligence, breach of contract, fraud, consumer protection and other statutory claims asserted by members, guests and other consumers for alleged injuries sustained at or acts or occurrences related to affiliated resorts, or in relation to guest reservations and bookings; and for each of its businesses, bankruptcy proceedings involving efforts to collect receivables from a debtor in bankruptcy, employment matters including but not limited to, claims of wrongful termination, retaliation, discrimination, harassment and wage and hour claims, whistleblower claims, claims of infringement upon third parties’ intellectual property rights, claims relating to information security, privacy and consumer protection, fiduciary duty/trust claims, tax claims, environmental claims, and landlord/tenant disputes. The Company records an accrual for legal contingencies when it determines, after consultation with outside counsel where appropriate, that it is probable that a liability has been incurred and the amount of the loss can be reasonably estimated. In making such determinations, the Company evaluates, among other things, the degree of probability of an unfavorable outcome and, when it is probable that a liability has been incurred, the Company’s ability to make a reasonable estimate of loss. The Company reviews these accruals each fiscal quarter and makes revisions based on changes in facts and circumstances including changes to its strategy in dealing with these matters. The Company believes that it has adequately accrued for such matters with reserves of $19 million and $13 million as of December 31, 2021 and 2020. 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, 2021, it is estimated that the potential exposure resulting from adverse outcomes of such legal proceedings could, in the aggregate, range up to $31 million in excess of recorded accruals. Such reserves are exclusive of matters relating to the Company’s separation from Cendant, matters relating to the Spin-off, matters relating to the sale of the European vacation rentals business, and matters relating to the sale of the North American vacation rentals business, which are discussed in Note 29— Transactions with Former Parent and Former Subsidiaries . However, the Company does not believe that the impact of such litigation should result in a material liability to the Company in relation to its consolidated financial position and/or liquidity. For matters deemed reasonably possible, therefore not requiring accrual, the Company believes that such matters will not have a material effect on its results of operations, financial position or cash flows based on information currently available. As of December 31, 2021, it is estimated that the potential exposure resulting from adverse outcomes of such legal proceedings could, in the aggregate, range up to an amount less than $1 million. G UARANTEES /I NDEMNIFICATIONS Standard Guarantees/Indemnifications In the ordinary course of business, the Company enters into agreements that contain standard guarantees and indemnities whereby the Company indemnifies another party for specified breaches of, or third-party claims relating to, an underlying agreement. Such underlying agreements are typically entered into by one of the Company’s subsidiaries. The various underlying agreements generally govern purchases, sales or outsourcing of products or services, leases of real estate, licensing of software and/or development of vacation ownership properties, access to credit facilities, derivatives and issuances of debt securities. Also in the ordinary course of business, the Company provides corporate guarantees for its operating business units relating to merchant credit-card processing for prepaid customer stays and other deposits. While a majority of these guarantees and indemnifications extend only for the duration of the underlying agreement, some survive the expiration of the agreement. The Company is not able to estimate the maximum potential amount of future payments to be made under these guarantees and indemnifications as the triggering events are not predictable. In certain cases, the Company maintains insurance coverage that may mitigate any potential payments. Other Guarantees and Indemnifications Vacation Ownership The Company has committed to repurchase completed property located in Las Vegas, Nevada, from a third-party developer subject to such property meeting the Company’s vacation ownership resort standards and provided that the third-party developer has not sold such property to another party. See Note 11— Inventory for additional details. In connection with the Company’s vacation ownership inventory sale transactions, for which it has conditional rights and conditional obligations to repurchase the completed properties, the Company was required to maintain an investment-grade credit rating from at least one rating agency. As a result of the Spin-off, the Company failed to maintain an investment-grade credit rating with at least one rating agency, which triggered a default. See Note 29— Transactions with Former Parent and Former Subsidiaries for additional details. As part of the Fee-for-Service program, the Company may guarantee to reimburse the developer a certain payment or to purchase inventory from the developer, for a percentage of the original sale price if certain future conditions exist. As of December 31, 2021, the maximum potential future payments that the Company may be required to make under these guarantees is $41 million. As of December 31, 2021 and 2020, the Company had no recognized liabilities in connection with these guarantees. For information on guarantees and indemnifications related to the Company’s former parent and subsidiaries see Note 29— Transactions with Former Parent and Former Subsidiaries . |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income/(Loss) | 12 Months Ended |
Dec. 31, 2021 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income/(Loss) | Accumulated Other Comprehensive Income/(Loss) The components of accumulated other comprehensive income/(loss) are as follows (in millions): Pretax Foreign Currency Translation Adjustments Unrealized (Losses)/Gains on Cash Flow Hedges Defined Benefit Pension Plans Accumulated Other Comprehensive (Loss)/Income Balance as of December 31, 2018 $ (147) $ (2) $ 2 $ (147) Other comprehensive loss before reclassifications (1) — (1) (2) Amount reclassified to earnings — 1 — 1 Balance as of December 31, 2019 (148) (1) 1 (148) Other comprehensive income/(loss) before reclassifications 35 — (1) 34 Balance as of December 31, 2020 (113) (1) — (114) Other comprehensive loss before reclassifications (32) — — (32) Balance as of December 31, 2021 $ (145) $ (1) $ — $ (146) Tax Foreign Currency Translation Adjustments Unrealized (Losses)/Gains on Cash Flow Hedges Defined Benefit Pension Plans Accumulated Other Comprehensive (Loss)/Income Balance as of December 31, 2018 $ 94 $ 2 $ (1) $ 95 Other comprehensive income/(loss) before reclassifications 1 (1) 1 1 Balance as of December 31, 2019 95 1 — 96 Other comprehensive income before reclassifications 2 — — 2 Balance as of December 31, 2020 97 1 — 98 Other comprehensive income before reclassifications — — — — Balance as of December 31, 2021 $ 97 $ 1 $ — $ 98 Net of Tax Foreign Currency Translation Adjustments Unrealized (Losses)/Gains on Cash Flow Hedges Defined Benefit Pension Plans Accumulated Other Comprehensive (Loss)/Income Balance as of December 31, 2018 $ (53) $ — $ 1 $ (52) Other comprehensive loss before reclassification — (1) — (1) Amount reclassified to earnings — 1 — 1 Balance as of December 31, 2019 (53) — 1 (52) Other comprehensive income/(loss) before reclassifications 37 — (1) 36 Balance as of December 31, 2020 (16) — — (16) Other comprehensive loss before reclassifications (32) — — (32) Balance as of December 31, 2021 $ (48) $ — $ — $ (48) Currency translation adjustments exclude income taxes related to investments in foreign subsidiaries where the Company intends to reinvest the undistributed earnings indefinitely in those foreign operations. There were no reclassifications out of AOCL during 2021 and 2020. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2021 | |
Share-based Payment Arrangement, Noncash Expense [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation The Company has a stock-based compensation plan available to grant RSUs, PSUs, SSARs, NQs, and other stock-based awards to key employees, non-employee directors, advisors, and consultants. The Wyndham Worldwide Corporation 2006 Equity and Incentive Plan was originally adopted in 2006 and was amended and restated in its entirety and approved by shareholders on May 17, 2018, (the “Amended and Restated Equity Incentive Plan”). Under the Amended and Restated Equity Incentive Plan, a maximum of 15.7 million shares of common stock may be awarded. As of December 31, 2021, 11.3 million shares remain available. Incentive Equity Awards Granted by the Company During the year ended December 31, 2021, the Company granted incentive equity awards to key employees and senior officers totaling $35 million in the form of RSUs, $7 million in the form of PSUs, and $2 million in the form of stock options. Of these awards, the majority of RSUs and NQs will vest ratably over a period of four years. The PSUs will cliff vest on the third anniversary of the grant date, contingent upon the Company achieving certain performance metrics. During the year ended December 31, 2020, the Company granted incentive equity awards totaling $35 million in the form of RSUs, $8 million in the form of PSUs, and $8 million in the form of stock options. During 2019, the Company granted incentive equity awards totaling $26 million in the form of RSUs, $7 million in the form of PSUs, and $5 million in the form of stock options. The activity related to incentive equity awards granted to the Company’s key employees and senior officers by the Company for the year ended December 31, 2021, consisted of the following (in millions, except grant prices): Balance as of December 31, 2020 Granted Vested/Exercised (a) Forfeitures (b) Balance as of December 31, 2021 RSUs Number of RSUs 1.6 0.6 (0.3) (0.1) 1.8 (c) Weighted average grant price $ 38.22 $ 58.47 $ 44.72 $ 47.25 $ 47.83 PSUs Number of PSUs 0.3 0.1 — — 0.4 (d) Weighted average grant price $ 42.57 $ 59.00 $ — $ — $ 48.18 SSARs Number of SSARs 0.2 — (0.2) — — (e) Weighted average grant price $ 34.51 $ — $ 34.51 $ — $ — NQs Number of NQs 2.3 0.1 (0.1) — 2.3 (f) Weighted average grant price $ 44.15 $ 59.00 $ 44.50 $ — $ 45.32 (a) Upon exercise of NQs and SSARs and upon vesting of RSUs and PSUs, the Company issues new shares to participants. (b) The Company recognizes forfeitures as they occur. (c) Aggregate unrecognized compensation expense related to RSUs was $51 million as of December 31, 2021, which is expected to be recognized over a weighted average period of 2.4 years. (d) There was no unrecognized compensation expense related to PSUs as these awards were not probable of vesting as of December 31, 2021. The maximum amount of compensation expense associated with these awards would be $8 million which would be recognized over a weighted average period of 2.0 years. (e) As of December 31, 2021, all SSARs had been exercised; therefore there was no unrecognized compensation expense. (f) There were 0.9 million NQs which were exercisable as of December 31, 2021. These NQs will expire over a weighted average period of 6.9 years and carry a weighted average grant date fair value of $8.39. Unrecognized compensation expense for the NQs was $8 million as of December 31, 2021, which is expected to be recognized over a weighted average period of 2.3 years. The fair value of stock options granted by the Company during 2021, 2020, and 2019 were estimated on the dates of these grants using the Black-Scholes option-pricing model with the relevant weighted average assumptions outlined in the table below. Expected volatility was based on both historical and implied volatilities of the Company’s stock and the stock of comparable companies over the estimated expected life for options. The expected life represents the period of time these awards are expected to be outstanding. The risk-free interest rate is based on yields on U.S. Treasury strips with a maturity similar to the estimated expected life of the options. The projected dividend yield was based on the Company’s anticipated annual dividend divided by the price of the Company’s stock on the date of the grant. Stock Options 2021 2020 2019 Grant date fair value $18.87 $7.27 - $7.28 $8.98 Grant date strike price $59.00 $41.04 $44.38 Expected volatility 44.80% 32.60 % - 32.88% 29.97% Expected life (a) 6.25 years 6.25 - 7.50 years 6.25 years Risk-free interest rate 1.09% 0.95 % - 1.03% 2.59% Projected dividend yield 3.12% 4.87% 4.06% (a) The maximum contractual term for these options is 10 years. The total intrinsic value of exercised options during 2021 were $1 million. There were no options exercised during 2020 or 2019. The fair value of vested options during 2021, 2020, and 2019 were $6 million, $3 million, and $1 million. Stock-Based Compensation Expense The Company recorded stock-based compensation expense of $32 million, $20 million, and $24 million during 2021, 2020, and 2019, related to the incentive equity awards granted to key employees, senior officers, and non-employee directors. Stock-based compensation expense for 2019 included $4 million of expense which has been classified within Separation and related costs in continuing operations on the Consolidated Statements of Income/(Loss). The Company recognized $9 million, $2 million, and $7 million of associated tax benefits during 2021, 2020, and 2019. The Company paid $9 million, $2 million, and $4 million of taxes for the net share settlement of incentive equity awards that vested during 2021, 2020, and 2019. Such amounts are included within financing activities on the Consolidated Statements of Cash Flows. Employee Stock Purchase Plan The Company has an employee stock purchase plan which allows eligible employees to purchase common shares of Company stock through payroll deductions at a 10% discount from the fair market value at the grant date. The Company issued 0.1 million, 0.2 million, and 0.2 million shares during 2021, 2020, and 2019 and recognized $1 million of compensation expense related to the grants under this plan in each period. The value of shares issued under this plan was $8 million, $7 million, and $11 million during 2021, 2020, and 2019. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2021 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plans | Employee Benefit Plans Defined Contribution Benefit Plans Travel + Leisure Co. 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 $27 million, $19 million, and $33 million during 2021, 2020, and 2019. 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 $6 million, $7 million, and $8 million during 2021, 2020, and 2019. Defined Benefit Pension Plans The Company sponsors defined benefit pension plans for certain foreign subsidiaries, which were primarily part of the Company’s European vacation rentals business, which is presented as discontinued operations. 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. The Company had $4 million and $5 million of net pension liability as of December 31, 2021 and 2020, included within Accrued expenses and other liabilities. As of December 31, 2021 and 2020, the Company had less than $1 million of unrecognized gains included within Accumulated other comprehensive loss on the Consolidated Balance Sheets. The Company’s policy is to contribute amounts sufficient to meet minimum funding requirements as set forth in employee benefit and tax laws and additional amounts that the Company determines to be appropriate. The Company recognized no pension expense related to these plans during 2021, 2020, and 2019. |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2021 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information The Company has two reportable segments: Vacation Ownership and Travel and Membership. In connection with the Travel + Leisure brand acquisition the Company updated the names and composition of its segments to better align with how the segments are managed. The Vacation Ownership segment develops, markets and sells VOIs to individual consumers, provides consumer financing in connection with the sale of VOIs, and provides property management services at resorts. The Travel and Membership segment operates a variety of travel businesses, including three vacation exchange brands, a home exchange network, travel technology platforms, travel memberships, and direct-to-consumer rentals. With the formation of the Travel + Leisure Group the Company decided that the operations of its Extra Holidays business, which focuses on direct-to-consumer bookings, better aligns with the operations of this new business line and therefore transitioned the management of the Extra Holidays business to the Travel and Membership segment. As such, the Company reclassified the results of its Extra Holidays business, which was previously reported within the Vacation Ownership segment, into the Travel and Membership segment. This change is reflected in all periods reported. During 2019, the Company sold its North American vacation rentals business, which was part of its Travel and Membership segment. This business did not meet the criteria to be classified as a discontinued operation; therefore, the results of operations through the date of sale are included in the 2019 results presented in the tables below. The reportable segments presented below are those for which discrete financial information is available and which are utilized on a regular basis by the chief operating decision maker to assess performance and to allocate resources. In identifying its reportable segments, the Company also considers the nature of services provided by its operating segments. Management uses net revenues and Adjusted EBITDA to assess the performance of the reportable segments. Adjusted EBITDA is defined by the Company as Net income/(loss) from continuing operations before Depreciation and amortization, Interest expense (excluding Consumer financing interest), early extinguishment of debt, Interest income (excluding Consumer financing revenues) and income taxes. Adjusted EBITDA also excludes stock-based compensation costs, separation and restructuring costs, legacy items, transaction costs for acquisitions and divestitures, impairments, gains and losses on sale/disposition of business, and items that meet the conditions of unusual and/or infrequent. Legacy items include the resolution of and adjustments to certain contingent assets and liabilities related to acquisitions of continuing businesses and dispositions, including the separation of Wyndham Hotels and Cendant, and the sale of the vacation rentals businesses. The Company believes that Adjusted EBITDA is a useful measure of performance for its segments which, when considered with GAAP measures, the Company believes gives a more complete understanding of its operating performance. The Company’s presentation of Adjusted EBITDA may not be comparable to similarly-titled measures used by other companies. The following tables present the Company’s segment information (in millions): Year Ended December 31, Net revenues 2021 2020 2019 Vacation Ownership $ 2,403 $ 1,625 $ 3,122 Travel and Membership 752 552 944 Total reportable segments 3,155 2,177 4,066 Corporate and other (a) (21) (17) (23) Total Company $ 3,134 $ 2,160 $ 4,043 Year Ended December 31, Reconciliation of Net income to Adjusted EBITDA 2021 2020 2019 Net income/(loss) attributable to Travel + Leisure Co. shareholders $ 308 $ (255) $ 507 Loss/(gain) on disposal of discontinued business, net of income taxes 5 2 (18) Provision/(benefit) for income taxes 116 (23) 191 Depreciation and amortization 124 126 121 Interest expense 198 192 162 Interest (income) (3) (7) (7) Gain on sale of business — — (68) Stock-based compensation 32 20 20 Legacy items 4 4 1 COVID-19 related costs (b) 3 56 — Exchange inventory write-off — 48 — Acquisition and divestiture related costs — — 1 Separation and related costs (c) — — 45 Restructuring (1) 39 9 Unrealized gain on equity investment (d) (3) — — Asset impairments/(recovery) (e) (5) 57 27 Adjusted EBITDA $ 778 $ 259 $ 991 Year Ended December 31, Adjusted EBITDA 2021 2020 2019 Vacation Ownership $ 558 $ 121 $ 736 Travel and Membership 282 191 309 Total reportable segments 840 312 1,045 Corporate and other (a) (62) (53) (54) Total Company $ 778 $ 259 $ 991 (a) Includes the elimination of transactions between segments. (b) Reflects severance and other employee costs associated with layoffs due to the COVID-19 workforce reduction offset in part by employee retention credits received in connection with the U.S. CARES Act, ARPA, and similar international programs for wages paid to certain employees despite having operations suspended. This amount does not include costs associated with idle pay. (c) Includes $4 million of stock-based compensation expenses for the year ended December 31, 2019. (d) Represents the unrealized gain associated with Vacasa equity acquired as part of the consideration for the sale of North America vacation rentals. The total amount of unrealized gain on this investment was $9 million for the year ended December 31, 2021, of which $6 million is included in Asset impairments/(recovery) on the Consolidated Statements of Income/(Loss) to offset the 2020 impairment recognized on this investment. (e) Includes $5 million of bad debt expense related to a note receivable for the year ended December 31, 2020, included in Operating expenses on the Consolidated Statements of Income/(Loss). Year Ended December 31, Segment Assets (a) 2021 2020 Vacation Ownership $ 4,743 $ 5,000 Travel and Membership 1,414 1,372 Total reportable segments 6,157 6,372 Corporate and other 431 1,241 Total Company $ 6,588 $ 7,613 (a) Excludes investment in consolidated subsidiaries. Year Ended December 31, Capital Expenditures 2021 2020 2019 Vacation Ownership $ 34 $ 41 $ 69 Travel and Membership 17 21 27 Total reportable segments 51 62 96 Corporate and other 6 7 12 Total Company $ 57 $ 69 $ 108 The geographic segment information provided below is classified based on the geographic location of the Company’s subsidiaries (in millions): Year Ended December 31, Year Ended December 31, Net Revenues Net Long-lived Assets 2021 2020 2019 2021 2020 United States $ 2,753 $ 1,904 $ 3,513 $ 1,574 $ 1,471 All other countries 381 256 530 295 290 Total $ 3,134 $ 2,160 $ 4,043 $ 1,869 $ 1,761 |
Separation and Transaction Cost
Separation and Transaction Costs | 12 Months Ended |
Dec. 31, 2021 | |
Separation and Related Costs [Abstract] | |
Separation and Transaction Costs | Separation and Transaction Costs During 2019, the Company incurred $45 million of expenses in connection with the Spin-off completed on May 31, 2018, which are reflected within continuing operations. These separation costs were related to stock compensation, severance and other employee costs, as well as impairment charges due to the write-off of right-of-use assets and furniture, fixtures and equipment as a result of the Company abandoning portions of its administrative offices in New Jersey. These expenses also include additional impairment charges associated with the write-off of assets and liabilities related to the early termination of an operating lease in Chicago, Illinois, partially offset by an indemnification receivable from Wyndham Hotels. Refer to Note 13— Leases for additional detail regarding these impairments. |
COVID-19 Related Items (Notes)
COVID-19 Related Items (Notes) | 12 Months Ended |
Dec. 31, 2021 | |
Restructuring and Related Activities [Abstract] | |
COVID-19 Related Impacts [Text Block] | COVID-19 Related Items For the year ended December 31, 2021, the Company’s financial statements included impacts directly related to COVID-19 as detailed in the table below (in millions): Vacation Ownership Travel and Membership Corporate Consolidated Income Statement Classification Allowance for loan losses: Provision $ (91) $ — $ — $ (91) Vacation ownership interest sales Recoveries 33 — — 33 Cost of vacation ownership interests Employee compensation related and other 3 — 1 4 COVID-19 related costs Asset impairment recovery — (6) — (6) Asset impairments/(recovery) Lease-related (1) — — (1) Restructuring Total COVID-19 $ (56) $ (6) $ 1 $ (61) For the year ended December 31, 2020, the Company’s financial statements included impacts directly related to COVID-19 as detailed in the table below (in millions): Vacation Ownership Travel and Membership Corporate Consolidated Income Statement Classification Allowance for loan losses: Provision $ 205 $ — $ — $ 205 Vacation ownership interest sales Recoveries (48) — — (48) Cost of vacation ownership interests Employee compensation related and other 65 9 14 88 COVID-19 related costs Asset impairments 21 34 1 56 Asset impairments/(recovery) and Operating expenses Exchange inventory write-off — 48 — 48 Operating expenses Lease-related 14 22 — 36 Restructuring Total COVID-19 $ 257 $ 113 $ 15 $ 385 Allowance for loan losses — Due to the closure of resorts and sales centers and the economic downturn resulting from COVID-19 during 2020, the Company evaluated the potential impact of COVID-19 on its owners’ ability to repay their contract receivables and as a result of higher unemployment, the Company recorded a COVID-19 related allowance for loan losses. This allowance consisted of a $205 million COVID-19 related provision, which was reflected as a reduction to Vacation ownership interest sales and $48 million of estimated recoveries, which were reflected as a reduction to Cost of vacation ownership interests on the Consolidated Statements of Income/(Loss). The net negative impact of this COVID-19 related provision on Adjusted EBITDA was $157 million for the year ended December 31, 2020. During 2021, the Company analyzed the adequacy of the COVID-19 related allowance consistent with past methodology, and due to the improvement in net new defaults the Company reduced this allowance resulting in a $91 million increase to Vacation ownership interest sales and a corresponding $33 million increase to Cost of vacation ownership interests on the Consolidated Statements of Income/(Loss). The net positive impact of these adjustments on Adjusted EBITDA was $58 million for the year ended December 31, 2021. Based upon improved performance in the Company’s portfolio (lower net new defaults) and improved unemployment rates since the time this allowance was established, and after considering write-offs and the allowance for remaining likely defaults associated with loans that were granted payment deferrals, the Company has no COVID-19 related allowances as of December 31, 2021. Refer to Note 10— Vacation Ownership Contract Receivables for additional details. Employee compensation related and other — During 2020, these costs included $71 million related to severance and other employee costs resulting from the layoffs, salary and benefits continuation for certain employees while operations were suspended, and vacation payments associated with furloughed employees. These costs are inclusive of $26 million of employee retention credits earned in connection with government programs, primarily the CARES Act. Employee compensation related and other costs also included $17 million related to renegotiating or exiting certain agreements and other professional fees in 2020. During 2021, employee compensation related and other costs included $3 million of professional and other costs; as well as $1 million of severance and other employee costs resulting from layoffs, salary and benefits continuation at the Vacation Ownership segment, inclusive of $2 million of employee retention credits earned in connection with government programs. In connection with these actions the Company recorded COVID-19 employee-related liabilities which are included within Accrued expenses and other liabilities on the Consolidated Balance Sheets. The activity associated with the Company’s COVID-19 related liabilities is summarized as follows (in millions): Liability as of Liability as of December 31, 2020 Costs Recognized Cash Payments December 31, 2021 COVID-19 employee-related $ 6 $ 1 $ (6) $ 1 Ending balance $ 6 $ 1 $ (6) $ 1 Asset impairments/(recovery) — During 2020, the Company incurred $56 million of COVID-19 related impairments, including $51 million recorded within Asset impairments/(recovery) and $5 million included in Operating expenses on the Consolidated Statements of Income/(Loss). Refer to Note 27— Impairments and Other Charges for additional details. During 2021, the Company reversed $6 million of asset impairments related to its previously impaired equity investment in Vacasa. Refer to Note 7— Held-for-Sale Business for additional details. Exchange inventory write-off — During 2020, the Company wrote-off $48 million of exchange inventory as discussed in Note 11— Inventory. Lease-related — During 2020, the Company recognized $36 million of restructuring charges including $22 million related to the New Jersey lease discussed in Note 28— Restructuring |
Impairments and Other Charges
Impairments and Other Charges | 12 Months Ended |
Dec. 31, 2021 | |
Asset Impairments and Other Charges [Abstract] | |
Impairment and Other Charges | Impairments and Other Charges Impairments During 2021, the Company had a net $5 million recovery of impairments driven by the $6 million reversal of a 2020 COVID-19 related impairment of the Vacasa equity investment at the Travel and Membership segment. See Note 7— Held-for-Sale Business for additional details. This reversal was partially offset by less than $1 million of impairments at the Vacation Ownership segment. During 2020, the Company recorded $52 million of asset impairments, $51 million of which were COVID-19 related. During the period, the Company recorded a $24 million impairment at the Travel and Membership segment related to the New Jersey lease discussed in Note 28— Restructuring and the associated furniture, fixtures and equipment; $10 million of impairments were driven by right-to-use leases and related fixed assets within the Vacation Ownership segment; $6 million of impairments at the Vacation Ownership segment related to prepaid development costs and undeveloped land; a $6 million impairment for the Vacasa equity investment held at the Travel and Membership segment; a $4 million impairment at the Travel and Membership segment related to the Love Home Swap trade name; and $1 million of impairments at the corporate segment. These impairments are recorded within Asset impairments/(recovery) on the Consolidated Statements of Income/(Loss). In addition to the COVID-19 related impairments mentioned above, the Company also recorded a $1 million impairment charge at the Vacation Ownership segment unrelated to COVID-19. During 2019, the Company sold certain property for $52 million in cash and a note receivable of $4 million. The Company recorded a loss of $27 million, which is recorded within Asset impairments/(recovery) on the Consolidated Statements of Income/(Loss). Other Charges Refer to Note 25— Separation and Transaction Costs, for discussion of the additional 2019 impairments associated with the Spin-off. |
Restructuring
Restructuring | 12 Months Ended |
Dec. 31, 2021 | |
Restructuring Charges [Abstract] | |
Restructuring | Restructuring 2020 Restructuring Plans During 2020, the Company recorded $37 million of restructuring charges, $36 million of which were COVID-19 related. Due to the impact of COVID-19, the Company decided in the second quarter of 2020 to abandon the remaining portion of its administrative offices in New Jersey. The Company was notified in the second quarter that Wyndham Hotels exercised its early termination rights under the sublease agreement. As a result, the Company recorded $22 million of restructuring charges associated with non-lease components of the office space and $24 million of impairment charges associated with the write-off of right-of-use assets and furniture, fixtures and equipment at its Travel and Membership segment. The Company also recognized $12 million of lease-related charges due to the renegotiation of an agreement and $2 million of facility-related restructuring charges associated with closed sales centers at its Vacation Ownership segment. The Travel and Membership segment additionally recognized $1 million in employee-related expenses associated with the consolidation of a shared service center. The Company reduced the 2020 restructuring liability by $5 million and $12 million of cash payments during 2021 and 2020. The remaining 2020 restructuring liability of $22 million is expected to be paid by the end of 2029. 2019 Restructuring Plans During 2019, the Company recorded $5 million of charges related to restructuring initiatives, most of which are personnel-related resulting from a reduction of approximately 100 employees. This action is primarily focused on enhancing organizational efficiency and rationalizing operations. The charges consisted of (i) $2 million at the Vacation Ownership segment, (ii) $2 million at the Travel and Membership segment, and (iii) $1 million at the Company’s corporate operations. During 2020, the Company incurred an additional $1 million of restructuring expenses at both the Travel and Membership segment and its corporate operations. The Company reduced its restructuring liability by less than $1 million, $5 million, and $1 million of cash payments during 2021, 2020, and 2019. The 2019 restructuring liability was paid off as of December 31, 2021. The activity associated with all of the Company’s restructuring plans is summarized by category as follows (in millions): Liability as of 2019 Activity Liability as of December 31, 2018 Costs Cash Other December 31, 2019 Personnel-related $ 12 $ 9 $ (14) $ — $ 7 $ 12 $ 9 $ (14) $ — $ 7 Liability as of 2020 Activity Liability as of December 31, 2019 Costs Cash Other December 31, 2020 Personnel-related $ 7 $ 3 $ (9) $ — $ 1 Facility-related — 24 (1) — 23 Marketing-related — 12 (10) — 2 $ 7 $ 39 $ (20) $ — $ 26 Liability as of 2021 Activity Liability as of December 31, 2020 Costs Cash Other December 31, 2021 Personnel-related $ 1 $ — $ (1) $ — $ — Facility-related 23 — (1) — 22 Marketing-related 2 (1) (a) (4) 3 (b) — $ 26 $ (1) $ (6) $ 3 $ 22 (a) Includes $1 million reversal of expense related to the reimbursement of prepaid licensing fees that were previously written-off at the Vacation Ownership segment. (b) Includes $2 million reimbursement of termination payments and $1 million reimbursement of license fees at the Vacation Ownership segment. |
Transactions with Former Parent
Transactions with Former Parent and Former Subsidiaries | 12 Months Ended |
Dec. 31, 2021 | |
Related Party Transaction, Due from (to) Related Party [Abstract] | |
Transactions with Former Parent and Former Subsidiaries | Transactions with Former Parent and Former Subsidiaries Matters Related to Cendant Pursuant to the Separation and Distribution Agreement with Cendant (the Company’s former parent company, now Avis Budget Group), the Company entered into certain guarantee commitments with Cendant and Cendant’s former subsidiary, Realogy. These guarantee arrangements primarily relate to certain contingent litigation liabilities, contingent tax liabilities, and Cendant contingent and other corporate liabilities, of which Wyndham Worldwide Corporation assumed 37.5% of the responsibility while Cendant’s former subsidiary Realogy is responsible for the remaining 62.5%. In connection with the Spin-off, Wyndham Hotels agreed to retain one-third of Cendant’s contingent and other corporate liabilities and associated costs; therefore, Travel + Leisure Co. is effectively responsible for 25% of such matters subsequent to the separation. Since Cendant’s separation, Cendant has settled the majority of the lawsuits that were pending on the date of the separation. As of December 31, 2021 and 2020 the Cendant separation and related liabilities were $13 million, all of which were tax related. These liabilities are included within Accrued expenses and other liabilities on the Consolidated Balance Sheets. Matters Related to Wyndham Hotels In connection with the Spin-off on May 31, 2018, Travel + Leisure Co. entered into several agreements with Wyndham Hotels that govern the relationship of the parties following the separation including the Separation and Distribution Agreement, the Employee Matters Agreement, the Tax Matters Agreement, the Transition Services Agreement and the License, Development and Noncompetition Agreement. On January 4, 2021, the Company and Wyndham Hotels entered into a letter agreement pursuant to which, among other things Wyndham Hotels waived its right to enforce certain noncompetition covenants in the License, Development and Noncompetition Agreement. In accordance with the agreements governing the relationship between Travel + Leisure Co. and Wyndham Hotels, Travel + Leisure Co. assumed two-thirds and Wyndham Hotels assumed one-third of certain contingent corporate liabilities of the Company incurred prior to the Spin-off, including liabilities of the Company related to certain terminated or divested businesses, certain general corporate matters, and any actions with respect to the separation plan. Likewise, Travel + Leisure Co. is entitled to receive two-thirds and Wyndham Hotels is entitled to receive one-third of the proceeds from certain contingent corporate assets of the Company arising or accrued prior to the Spin-off. Travel + Leisure Co. entered into a transition service agreement with Wyndham Hotels, pursuant to which the companies agreed to provide each other certain transitional services including human resources, facilities, payroll, tax, information technology, information management and related services, treasury, finance, sourcing, and employee benefits administration on an interim, transitional basis. During 2020 and 2019, the Company recognized transition service agreement expenses of less than $1 million and $3 million, included in General and administrative expense on the Consolidated Statements of Income/(Loss). During 2019, the Company recognized transition service agreement expenses of $2 million which were included in Separation and related costs on the Consolidated Statements of Income/(Loss). Transition service agreement income of $1 million in 2019 was included in Other revenue on the Consolidated Statements of Income/(Loss). These transition services ended in 2020. During 2019, as a result of the sale of the North American vacation rentals business to Vacasa, the Company paid Wyndham Hotels $5 million for a trade name royalty buy-out. The related expense was recorded as a reduction to Gain on sale of business on the Consolidated Statements of Income/(Loss). Matters Related to the European Vacation Rentals Business In connection with the sale of the Company’s European vacation rentals business to Awaze Limited (“Awaze”), formerly Compass IV Limited, an affiliate of Platinum Equity, LLC, the Company and Wyndham Hotels agreed to certain post-closing credit support for the benefit of certain credit card service providers, a British travel association, and certain regulatory authorities to allow them to continue providing services or regulatory approval to the business. Post-closing credit support may be called if the business fails to meet its primary obligation to pay amounts when due. Awaze has provided an indemnification to Travel + Leisure Co. in the event that the post-closing credit support is enforced or called upon. Such post-closing credit support included a guarantee of up to $180 million which expired June 30, 2019. At closing, the Company agreed to provide additional post-closing credit support to a British travel association and regulatory authority. An escrow was established at closing, of which $46 million was subsequently released in exchange for a secured bonding facility and a perpetual guarantee denominated in pound sterling of $46 million. The estimated fair value of the guarantee was $22 million at December 31, 2021. The Company maintains a $7 million receivable from Wyndham Hotels for its portion of the guarantee. During 2019, the Company reached an agreement with Awaze on certain post-closing adjustments, resulting in a reduction of proceeds by $27 million. In accordance with the separation agreement, the Company and Wyndham Hotels agreed to share two-thirds and one-third, in the European vacation rentals business’ final net proceeds (as defined by the sales agreement). The Company paid $40 million to Wyndham Hotels in 2019 for certain items including the return of the escrow, post-closing adjustments, transaction expenses, and estimated taxes. The Company also deposited $5 million into an escrow account for which all obligations ceased to exist on May 9, 2019. The escrow was returned to the Company in May 2019. In addition, the Company agreed to indemnify Awaze against certain claims and assessments, including income tax, value-added tax and other tax matters, related to the operations of the European vacation rentals business for the periods prior to the transaction. The estimated fair value of the indemnifications was $42 million at December 31, 2021. The Company has a $14 million receivable from Wyndham Hotels for its portion of the guarantee. During 2020, the Company recorded a $2 million loss on disposal resulting from a tax audit, net of Wyndham Hotels’ one-third share related to the European vacation rentals business. This additional expense was included within (Loss)/gain on disposal of discontinued business, net of income taxes on the Consolidated Statements of Income/(Loss). Wyndham Hotels provided certain post-closing credit support primarily for the benefit of a British travel association in the form of guarantees which are mainly denominated in pound sterling of up to £61 million ($81 million USD) on a perpetual basis. These guarantees totaled £29 million ($39 million USD) at December 31, 2021. Travel + Leisure Co. is responsible for two-thirds of these guarantees. As part of this agreement Wyndham Hotels was required to maintain minimum credit ratings which increased to Ba1 for Moody’s and BB+ for S&P on May 9, 2020. In April 2020, S&P downgraded Wyndham Hotels’ credit rating from BB+ to BB. Although any ultimate exposure relative to indemnities retained from the European vacation rentals sale would be shared two-thirds by Travel + Leisure Co. and one-third by Wyndham Hotels, as the selling entity, Travel + Leisure Co. was responsible for administering additional security to enhance corporate guarantees in the event either company falls below a certain credit rating threshold. As a result of the Wyndham Hotels credit ratings downgrade, during 2020, the Company posted a £58 million surety bond and a £36 million letter of credit. During the third quarter of 2021, S&P upgraded Wyndham Hotels’ credit rating to BB+. In connection with the upgrade of Wyndham Hotels’ credit rating and as part of the settlement of other claims, the surety bond and letter of credit were released during the fourth quarter of 2021. The estimated fair value of the guarantees and indemnifications for which Travel + Leisure Co. is responsible related to the sale of the European vacation rentals business at December 31, 2021, including the two-thirds portion related to guarantees provided by Wyndham Hotels, totaled $90 million and was recorded in Accrued expenses and other liabilities and total receivables of $21 million were included in Other assets on the Consolidated Balance Sheets, representing the portion of these guarantees and indemnifications for which Wyndham Hotels is responsible. During 2019, Awaze proposed certain post-closing adjustments of £35 million ($44 million USD) related to the sale of the European vacation rentals business. During the fourth quarter of 2021, the Company entered into a settlement agreement, contingent upon regulatory approval, to settle these post-closing adjustment claims for £5 million ($7 million USD), one-third of which is the responsibility of Wyndham Hotels. Travel + Leisure Co. entered into a transition service agreement with Awaze, pursuant to which the companies agreed to provide each other certain transitional services including human resources, facilities, payroll, tax, information technology, information management and related services, treasury, finance, and sourcing on an interim, transitional basis. During 2020, transition service agreement expenses were less than $1 million and transition service agreement income was less than $1 million. During 2019, transition service agreement expenses were $2 million and transition service agreement income was $2 million. Transition service agreement expenses were included in General and administrative expense and transition service income was included in Net revenues on the Consolidated Statements of Income/(Loss). These transition services ended in 2020. Matters Related to the North American Vacation Rentals Business In connection with the sale of the North American vacation rentals business, the Company agreed to indemnify Vacasa against certain claims and assessments, including income tax and other tax matters related to the operations of the North American vacation rentals business for the periods prior to the transaction. The estimated fair value of the indemnifications was $2 million, which was included in Accrued expenses and other liabilities on the Consolidated Balance Sheets as of December 31, 2021. In connection with the sale of the North American vacation rentals business in the fourth quarter of 2019, the Company entered into a transition service agreement with Vacasa, pursuant to which the companies agreed to provide each other certain transitional services including human resources, facilities, payroll, information technology, information management and related services, treasury, and finance on an interim, transitional basis. During 2021, transition service agreement expenses were less than $1 million and transition service agreement income was less than $1 million. During 2020, transition service agreement expenses were $1 million and transition service agreement income was $2 million. During 2019, transition service agreement expenses were $3 million and transition service agreement income was $3 million. Transition service agreement expenses were included in General and administrative expense and transition service income was included in Other revenue on the Consolidated Statements of Income/(Loss). These transition services ended in February 2021. During 2021, the Company sold a parcel of land in Crossville, Tennessee, that is no longer core to the Company’s Operations to a former executive of the Company for less than $1 million. During 2020, the Company sold parcels of land in Shawnee, Pennsylvania, that are no longer core to the Company’s operations to a former executive of the Company for less than $1 million. In 2019, the Company entered into an agreement with a former executive of the Company whereby the former executive through an SPE would develop and construct VOI inventory located in Orlando, Florida. In 2020, the Company acquired the completed vacation ownership property for $45 million. This agreement was subsequently amended during 2021, increasing the purchase to $47 million. In August 2018, the Company provided notification to the owner trustee of the Company’s leased aircraft of its intent to exercise the purchase option for such aircraft at fair market value. In connection with that purchase, the Company entered into an agreement to sell the Company aircraft to its former CEO and current Chairman of the Board of Directors at a price equivalent to the purchase price. In January 2019, the transactions to purchase and sell the aircraft for $16 million closed. The Company occasionally sublets this aircraft for business travel through a timesharing arrangement, and incurred less than $1 million of expenses in 2021, 2020, and 2019. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2021 | |
Related Party Transactions [Abstract] | |
Related Part Transactions | Transactions with Former Parent and Former Subsidiaries Matters Related to Cendant Pursuant to the Separation and Distribution Agreement with Cendant (the Company’s former parent company, now Avis Budget Group), the Company entered into certain guarantee commitments with Cendant and Cendant’s former subsidiary, Realogy. These guarantee arrangements primarily relate to certain contingent litigation liabilities, contingent tax liabilities, and Cendant contingent and other corporate liabilities, of which Wyndham Worldwide Corporation assumed 37.5% of the responsibility while Cendant’s former subsidiary Realogy is responsible for the remaining 62.5%. In connection with the Spin-off, Wyndham Hotels agreed to retain one-third of Cendant’s contingent and other corporate liabilities and associated costs; therefore, Travel + Leisure Co. is effectively responsible for 25% of such matters subsequent to the separation. Since Cendant’s separation, Cendant has settled the majority of the lawsuits that were pending on the date of the separation. As of December 31, 2021 and 2020 the Cendant separation and related liabilities were $13 million, all of which were tax related. These liabilities are included within Accrued expenses and other liabilities on the Consolidated Balance Sheets. Matters Related to Wyndham Hotels In connection with the Spin-off on May 31, 2018, Travel + Leisure Co. entered into several agreements with Wyndham Hotels that govern the relationship of the parties following the separation including the Separation and Distribution Agreement, the Employee Matters Agreement, the Tax Matters Agreement, the Transition Services Agreement and the License, Development and Noncompetition Agreement. On January 4, 2021, the Company and Wyndham Hotels entered into a letter agreement pursuant to which, among other things Wyndham Hotels waived its right to enforce certain noncompetition covenants in the License, Development and Noncompetition Agreement. In accordance with the agreements governing the relationship between Travel + Leisure Co. and Wyndham Hotels, Travel + Leisure Co. assumed two-thirds and Wyndham Hotels assumed one-third of certain contingent corporate liabilities of the Company incurred prior to the Spin-off, including liabilities of the Company related to certain terminated or divested businesses, certain general corporate matters, and any actions with respect to the separation plan. Likewise, Travel + Leisure Co. is entitled to receive two-thirds and Wyndham Hotels is entitled to receive one-third of the proceeds from certain contingent corporate assets of the Company arising or accrued prior to the Spin-off. Travel + Leisure Co. entered into a transition service agreement with Wyndham Hotels, pursuant to which the companies agreed to provide each other certain transitional services including human resources, facilities, payroll, tax, information technology, information management and related services, treasury, finance, sourcing, and employee benefits administration on an interim, transitional basis. During 2020 and 2019, the Company recognized transition service agreement expenses of less than $1 million and $3 million, included in General and administrative expense on the Consolidated Statements of Income/(Loss). During 2019, the Company recognized transition service agreement expenses of $2 million which were included in Separation and related costs on the Consolidated Statements of Income/(Loss). Transition service agreement income of $1 million in 2019 was included in Other revenue on the Consolidated Statements of Income/(Loss). These transition services ended in 2020. During 2019, as a result of the sale of the North American vacation rentals business to Vacasa, the Company paid Wyndham Hotels $5 million for a trade name royalty buy-out. The related expense was recorded as a reduction to Gain on sale of business on the Consolidated Statements of Income/(Loss). Matters Related to the European Vacation Rentals Business In connection with the sale of the Company’s European vacation rentals business to Awaze Limited (“Awaze”), formerly Compass IV Limited, an affiliate of Platinum Equity, LLC, the Company and Wyndham Hotels agreed to certain post-closing credit support for the benefit of certain credit card service providers, a British travel association, and certain regulatory authorities to allow them to continue providing services or regulatory approval to the business. Post-closing credit support may be called if the business fails to meet its primary obligation to pay amounts when due. Awaze has provided an indemnification to Travel + Leisure Co. in the event that the post-closing credit support is enforced or called upon. Such post-closing credit support included a guarantee of up to $180 million which expired June 30, 2019. At closing, the Company agreed to provide additional post-closing credit support to a British travel association and regulatory authority. An escrow was established at closing, of which $46 million was subsequently released in exchange for a secured bonding facility and a perpetual guarantee denominated in pound sterling of $46 million. The estimated fair value of the guarantee was $22 million at December 31, 2021. The Company maintains a $7 million receivable from Wyndham Hotels for its portion of the guarantee. During 2019, the Company reached an agreement with Awaze on certain post-closing adjustments, resulting in a reduction of proceeds by $27 million. In accordance with the separation agreement, the Company and Wyndham Hotels agreed to share two-thirds and one-third, in the European vacation rentals business’ final net proceeds (as defined by the sales agreement). The Company paid $40 million to Wyndham Hotels in 2019 for certain items including the return of the escrow, post-closing adjustments, transaction expenses, and estimated taxes. The Company also deposited $5 million into an escrow account for which all obligations ceased to exist on May 9, 2019. The escrow was returned to the Company in May 2019. In addition, the Company agreed to indemnify Awaze against certain claims and assessments, including income tax, value-added tax and other tax matters, related to the operations of the European vacation rentals business for the periods prior to the transaction. The estimated fair value of the indemnifications was $42 million at December 31, 2021. The Company has a $14 million receivable from Wyndham Hotels for its portion of the guarantee. During 2020, the Company recorded a $2 million loss on disposal resulting from a tax audit, net of Wyndham Hotels’ one-third share related to the European vacation rentals business. This additional expense was included within (Loss)/gain on disposal of discontinued business, net of income taxes on the Consolidated Statements of Income/(Loss). Wyndham Hotels provided certain post-closing credit support primarily for the benefit of a British travel association in the form of guarantees which are mainly denominated in pound sterling of up to £61 million ($81 million USD) on a perpetual basis. These guarantees totaled £29 million ($39 million USD) at December 31, 2021. Travel + Leisure Co. is responsible for two-thirds of these guarantees. As part of this agreement Wyndham Hotels was required to maintain minimum credit ratings which increased to Ba1 for Moody’s and BB+ for S&P on May 9, 2020. In April 2020, S&P downgraded Wyndham Hotels’ credit rating from BB+ to BB. Although any ultimate exposure relative to indemnities retained from the European vacation rentals sale would be shared two-thirds by Travel + Leisure Co. and one-third by Wyndham Hotels, as the selling entity, Travel + Leisure Co. was responsible for administering additional security to enhance corporate guarantees in the event either company falls below a certain credit rating threshold. As a result of the Wyndham Hotels credit ratings downgrade, during 2020, the Company posted a £58 million surety bond and a £36 million letter of credit. During the third quarter of 2021, S&P upgraded Wyndham Hotels’ credit rating to BB+. In connection with the upgrade of Wyndham Hotels’ credit rating and as part of the settlement of other claims, the surety bond and letter of credit were released during the fourth quarter of 2021. The estimated fair value of the guarantees and indemnifications for which Travel + Leisure Co. is responsible related to the sale of the European vacation rentals business at December 31, 2021, including the two-thirds portion related to guarantees provided by Wyndham Hotels, totaled $90 million and was recorded in Accrued expenses and other liabilities and total receivables of $21 million were included in Other assets on the Consolidated Balance Sheets, representing the portion of these guarantees and indemnifications for which Wyndham Hotels is responsible. During 2019, Awaze proposed certain post-closing adjustments of £35 million ($44 million USD) related to the sale of the European vacation rentals business. During the fourth quarter of 2021, the Company entered into a settlement agreement, contingent upon regulatory approval, to settle these post-closing adjustment claims for £5 million ($7 million USD), one-third of which is the responsibility of Wyndham Hotels. Travel + Leisure Co. entered into a transition service agreement with Awaze, pursuant to which the companies agreed to provide each other certain transitional services including human resources, facilities, payroll, tax, information technology, information management and related services, treasury, finance, and sourcing on an interim, transitional basis. During 2020, transition service agreement expenses were less than $1 million and transition service agreement income was less than $1 million. During 2019, transition service agreement expenses were $2 million and transition service agreement income was $2 million. Transition service agreement expenses were included in General and administrative expense and transition service income was included in Net revenues on the Consolidated Statements of Income/(Loss). These transition services ended in 2020. Matters Related to the North American Vacation Rentals Business In connection with the sale of the North American vacation rentals business, the Company agreed to indemnify Vacasa against certain claims and assessments, including income tax and other tax matters related to the operations of the North American vacation rentals business for the periods prior to the transaction. The estimated fair value of the indemnifications was $2 million, which was included in Accrued expenses and other liabilities on the Consolidated Balance Sheets as of December 31, 2021. In connection with the sale of the North American vacation rentals business in the fourth quarter of 2019, the Company entered into a transition service agreement with Vacasa, pursuant to which the companies agreed to provide each other certain transitional services including human resources, facilities, payroll, information technology, information management and related services, treasury, and finance on an interim, transitional basis. During 2021, transition service agreement expenses were less than $1 million and transition service agreement income was less than $1 million. During 2020, transition service agreement expenses were $1 million and transition service agreement income was $2 million. During 2019, transition service agreement expenses were $3 million and transition service agreement income was $3 million. Transition service agreement expenses were included in General and administrative expense and transition service income was included in Other revenue on the Consolidated Statements of Income/(Loss). These transition services ended in February 2021. During 2021, the Company sold a parcel of land in Crossville, Tennessee, that is no longer core to the Company’s Operations to a former executive of the Company for less than $1 million. During 2020, the Company sold parcels of land in Shawnee, Pennsylvania, that are no longer core to the Company’s operations to a former executive of the Company for less than $1 million. In 2019, the Company entered into an agreement with a former executive of the Company whereby the former executive through an SPE would develop and construct VOI inventory located in Orlando, Florida. In 2020, the Company acquired the completed vacation ownership property for $45 million. This agreement was subsequently amended during 2021, increasing the purchase to $47 million. In August 2018, the Company provided notification to the owner trustee of the Company’s leased aircraft of its intent to exercise the purchase option for such aircraft at fair market value. In connection with that purchase, the Company entered into an agreement to sell the Company aircraft to its former CEO and current Chairman of the Board of Directors at a price equivalent to the purchase price. In January 2019, the transactions to purchase and sell the aircraft for $16 million closed. The Company occasionally sublets this aircraft for business travel through a timesharing arrangement, and incurred less than $1 million of expenses in 2021, 2020, and 2019. |
Organization, Consolidation and
Organization, Consolidation and Presentation of Financial Statements (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Accounting, Policy | Basis of Presentation The accompanying Consolidated Financial Statements in this Annual Report on Form 10-K include the accounts and transactions of Travel + Leisure Co., as well as the entities in which Travel + Leisure Co. directly or indirectly has a controlling financial interest. The accompanying Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the U.S. All intercompany balances and transactions have been eliminated in the Consolidated Financial Statements. In addition, prior period segment results have been restated to reflect the aforementioned reclassification of the Extra Holidays business into the Travel and Membership segment. The Company presents an unclassified balance sheet which conforms to that of the Company’s peers and industry practice. In presenting the Consolidated Financial Statements, management makes estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosures. Estimates, by their nature, are based on judgment and available information. Accordingly, actual results could differ from those estimates and assumptions. In management’s opinion, the Consolidated Financial Statements contain all normal recurring adjustments necessary for a fair presentation of annual results reported. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Principles Of Consolidation | PRINCIPLES OF CONSOLIDATION When evaluating an entity for consolidation, the Company first determines whether an entity is a variable interest entity (“VIE”). If the entity is deemed to be a VIE, the Company consolidates those VIEs for which the Company is the primary beneficiary. The Company will also consolidate an entity not deemed a VIE upon determination that the Company has a controlling financial interest. For entities where the Company does not have a controlling financial interest, the investments in such entities are accounted for using the equity or cost method, as appropriate. The Company analyzes its variable interests, including loans, guarantees, SPEs, and equity investments, to determine if an entity in which the Company has a variable interest is a VIE. If the entity is deemed to be a VIE, the Company consolidates those VIEs for which the Company is the primary beneficiary. Vacation Ownership Contract Receivables Securitizations The Company pools qualifying VOCRs and sells them to bankruptcy-remote entities. VOCRs qualify for securitization based primarily on the credit strength of the VOI purchaser to whom financing has been extended. VOCRs are securitized through bankruptcy-remote SPEs that are consolidated within the Consolidated Financial Statements. As a result, the Company does not recognize gains or losses resulting from these securitizations at the time of sale to the SPEs. Interest income is recognized when earned over the contractual life of the VOCRs. The Company services the securitized VOCRs pursuant to servicing agreements negotiated on an arm’s-length basis based on market conditions. The activities of these SPEs are limited to (i) purchasing VOCRs from the Company’s vacation ownership subsidiaries, (ii) issuing debt securities and/or borrowing under a conduit facility to fund such purchases, and (iii) entering into derivatives to hedge interest rate exposure. The bankruptcy-remote SPEs are legally separate from the Company. The receivables held by the bankruptcy-remote SPEs are not available to creditors of the Company and legally are not assets of the Company. Additionally, the non-recourse debt that is securitized through the SPEs is legally not a liability of the Company and thus, the creditors of these SPEs have no recourse to the Company for principal and interest. |
Revenue Recognition and Loyalty Programs | REVENUE RECOGNITION Refer to Note 3— Revenue Recognition for full details of the Company’s revenue recognition policies. Vacation Ownership The Company develops, markets and sells VOIs to individual consumers, provides consumer financing in connection with the sale of VOIs, and provides property management services at resorts. The Company’s sales of VOIs are either cash sales or developer-financed sales. Developer-financed sales are typically collateralized by the underlying VOI. Revenue is recognized on VOI sales upon transfer of control, which is defined as the point in time when a binding sales contract has been executed, the financing contract has been executed for the remaining transaction price, the statutory rescission period has expired, and the transaction price has been deemed to be collectible. For developer-financed sales, the Company reduces the VOI sales transaction price by an estimate of uncollectible consideration at the time of the sale. The Company’s estimates of uncollectible amounts are based largely on the results of the Company’s static pool analysis which relies on historical payment data by customer class. In connection with entering into a VOI sale, the Company may provide its customers with certain non-cash incentives, such as credits for future stays at its resorts. For those VOI sales, the Company bifurcates the sale and allocates the sales price between the VOI sale and the non-cash incentive. Non-cash incentives generally have expiration periods of 18 months or less and are recognized at a point in time upon transfer of control. Travel and Membership Travel and Membership derives a majority of its revenues from membership dues and fees for facilitating members’ trading of their intervals. Revenues from membership dues represent the fees paid by members or affiliated clubs on their behalf. The Company recognizes revenues from membership dues paid by the member on a straight-line basis over the membership period as the performance obligations are fulfilled through delivery of publications, if applicable, and by providing access to travel-related products and services. Estimated net contract consideration payable by affiliated clubs for memberships is recognized as revenue over the term of the contract with the affiliated club in proportion to the estimated average monthly member count. Such estimates are adjusted periodically for changes in the actual and forecasted member activity. For additional fees, members have the right to exchange their intervals for intervals at other properties affiliated with the Company’s vacation exchange networks and, for certain members, for other leisure-related services and products. The Company also derives revenue from facilitating bookings of travel accommodations for both members and non-members. Revenue is recognized when these transactions have been confirmed, net of expected cancellations, except in certain transactions where the Company has a performance obligation that is not satisfied until the time of stay. As a provider of vacation exchange services, the Company enters into affiliation agreements with developers of vacation ownership properties to allow owners of VOIs to trade their intervals for intervals at other properties affiliated with the Company’s vacation exchange network and, for some members, for other leisure-related services and products. The Company’s vacation exchange business also derives revenues from programs with affiliated resorts, club servicing, and loyalty programs; and additional exchange-related products that provide members with the ability to protect trading power or points, extend the life of deposits, and combine two or more deposits for the opportunity to exchange into intervals with higher trading power. Other vacation exchange-related product fees are deferred and recognized as revenue upon the occurrence of a future exchange, event, or other related transaction. The Company earns revenue from its RCI Elite Rewards co–branded credit card program, which is primarily generated by cardholder spending and the enrollment of new cardholders. The advance payments received under the program are recognized as a contract liability until the Company’s performance obligations have been satisfied. The primary performance obligation for the program relates to brand performance services. Total contract consideration is estimated and recognized on a straight-line basis over the contract term. Prior to the sale of the vacation rental businesses, the Company’s vacation rental brands derived revenue from fees associated with the rental of vacation properties managed and marketed by the Company on behalf of independent owners. The Company remitted the rental fee received from the renter to the independent owner, net of the Company’s agreed-upon fee. The related revenue from such fees, net of expected refunds, was recognized over the renter’s stay. The Company’s vacation rental brands also derived revenues from additional services delivered to independent owners, vacation rental guests, and property owners’ associations which were generally recognized when the service was delivered. Other Items The Company records property management services revenues for its Vacation Ownership segment and RCI Elite Rewards revenues for its Travel and Membership segments gross as a principal. In the Company’s Vacation Ownership business, deferred VOI trial package revenue represents consideration received in advance for a trial VOI, which allows customers to utilize a vacation package typically within one year of purchase. Deferred VOI incentive revenue represents payments received in advance for additional travel-related services and products at the time of a VOI sale. Revenue is recognized when a customer utilizes the additional services and products, which is typically within one year of the VOI sale. Within the Company’s Travel and Membership business, deferred subscription revenue represents billings and payments received in advance from members and affiliated clubs for memberships in the Company’s travel programs which are recognized in future periods. Deferred revenue primarily represents payments received in advance from members for the right to access the Company’s vacation travel network to book vacation exchanges and rent travel accommodations which are recognized on a straight-line basis over the contract period, generally within one year. Deferred revenue also includes other leisure-related services and products revenue which is recognized as customers utilize the associated benefits. |
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. Securitizations. In accordance with the contractual requirements of the Company’s various VOCR 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. This report 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 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 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 trust account. As of December 31, 2021 and 2020, restricted cash for securitizations totaled $84 million and $92 million. 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. Rescission periods vary by state, but range on average from five seven |
Receivable Valuation | RECEIVABLE VALUATION Trade receivables Vacation ownership contract receivables In the Vacation Ownership segment, the Company provides for estimated VOCR defaults at the time of VOI sales by recording a provision for loan losses as a reduction of Vacation ownership interest sales on the Consolidated Statements of Income/(Loss). The Company assesses the adequacy of the allowance for loan losses related to these VOIs using a technique referred to as a static pool analysis. This analysis is based upon the historical performance of similar VOCRs and incorporates more recent history of default information. Management prepares a model to track defaults for each year’s sales over the entire life of the contract receivable as a means to project future expected losses. A qualitative assessment is also performed to determine whether any external economic conditions or internal portfolio characteristics indicate an adjustment is necessary to reflect expected impacts on the contract receivables portfolio. 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 VOCRs. Due to the economic disruption resulting from COVID-19, the Company estimated an additional loan loss allowance related to the impacts on its owners’ ability to repay their contract receivables. For additional details on the Company’s vacation ownership contract receivables, including information on the related allowances and the impact of COVID-19, see Note 10— Vacation Ownership Contract Receivables. |
Inventory | INVENTORY Inventory primarily consists of completed VOIs, VOIs under construction, land held for future VOI development, vacation exchange credits, and real estate interests 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 recorded using a percentage ratio of total estimated development cost and VOI revenue, including estimated future revenue, 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 in each period as a current-period adjustment to inventory and cost of sales. Inventory is stated at the lower of cost, including |
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/(Loss), 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, up to 30 years for vacation rental properties, and range from three 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 for internal use. Capitalization of software costs developed for internal use commences during the development phase of the project. The Company amortizes software developed or obtained for internal use on a straight-line basis over its estimated useful life, which is generally three The net carrying value of software developed or obtained for internal use was $156 million and $191 million as of December 31, 2021 and 2020. Capitalized interest was less than $1 million, $1 million, and $2 million during 2021, 2020, and 2019. |
Derivatives Instruments | DERIVATIVE INSTRUMENTSThe 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 in Operating income/(loss) and net interest expense, based upon the nature of the hedged item, on the Consolidated Statements of Income/(Loss). Changes in fair value of derivatives designated as cash flow hedging instruments are recorded as components of other comprehensive income. Amounts included in other comprehensive income are reclassified into earnings in the same period during which the hedged item affects earnings. |
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, 2021 and 2020. The Company recognizes the effects of changes in tax laws, or rates, as a component of income taxes from continuing operations within the period that includes the enactment date. 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 a change to 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 that 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. The Company classifies interest and penalties associated with unrecognized tax benefits as a component of Provision/(benefit) for income taxes on the Consolidated Statements of Income/(Loss). |
Advertising Expense | ADVERTISING EXPENSE Advertising costs are expensed in the period incurred and are recorded within Marketing expenses on the Consolidated Statements of Income/(Loss). Advertising costs were $33 million, $26 million, and $37 million in 2021, 2020, and 2019. |
Stock-Based Compensation | STOCK-BASED COMPENSATION The Company measures all stock-based compensation awards using a fair value method and records the related expense in its Consolidated Statements of Income/(Loss). |
Long-Lived Assets | LONG-LIVED ASSETS Assets such as customer lists, management agreements, and trademarks acquired by the Company are classified as intangible assets and recorded at their fair value as of the date of the acquisition and categorized as having either a finite life or an indefinite life. Assets deemed to have a finite life are assigned an appropriate useful life and amortized on a straight-line basis. |
Impairment Of Long-Lived Assets | IMPAIRMENT OF LONG-LIVED ASSETS The Company has goodwill and other indefinite-lived intangible assets recorded in connection with business combinations. The Company annually in the fourth quarter, or more frequently if circumstances indicate that the value of goodwill may be impaired, reviews the reporting units’ carrying values. This is done either by performing a qualitative assessment or a quantitative assessment, with an impairment being recognized only if a reporting unit’s fair value is less than carrying value. In any given year the Company can elect to perform a qualitative assessment to determine whether it is more likely than not that the fair value of a reporting unit is in excess of its carrying value. If it is not more likely than not that the fair value is in excess of the carrying value, or the Company elects to bypass the qualitative assessment, it would utilize the quantitative assessment. The qualitative factors evaluated include macroeconomic conditions, industry and market considerations, cost factors, overall financial performance, and the Company’s historical share price as well as other industry-specific considerations. 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 Asset impairments/(recovery) on the Consolidated Statements of Income/(Loss). The Company has goodwill recorded at reporting units comprising its Vacation Ownership and Travel and Membership reportable segments. The Company completed its annual goodwill impairment test by performing a qualitative analysis for each of its reporting units as of October 1, 2021 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. 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 ACTIVITIESThe Company’s restructuring activities 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 accrued as of December 31, 2021, represents its best estimate of the obligations incurred in connection with these actions, but could change due to various factors including market conditions, the outcome of negotiations with third parties, or the effects of the COVID-19 pandemic. |
Recently Issued and Adopted Accounting Pronouncements | RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS Contract Assets and Contract Liabilities from Contracts with Customers Acquired in a Business Combination. In October 2021, the Financial Accounting Standards Board (“FASB”) issued guidance which requires companies to apply Accounting Standards Committee (“ASC”) 606 to recognize and measure contract assets and contract liabilities from contracts with customers acquired in a business combination. This creates an exception to the general recognition and measurement principle in ASC 805. This generally will result in companies recognizing contract assets and contract liabilities at amounts consistent with those recorded by the acquiree immediately before the acquisition date. This guidance is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. The amendments should be applied prospectively to business combinations occurring on or after the effective date. Early adoption is permitted. As this guidance would only be applicable to future business combinations, the Company is currently unable to determine the impact of adopting this guidance. Government Assistance. In November 2021, the FASB issued guidance which requires business entities to provide certain disclosures when they (i) have received government assistance and (ii) use a grant or contribution accounting model by analogy to other accounting guidance. The guidance is effective for fiscal years beginning after December 15, 2021. The adoption of this guidance is not expected to have a material impact on the Company’s Consolidated Financial Statements or related disclosures. RECENTLY ADOPTED ACCOUNTING PRONOUNCEMENTS Simplifying the Accounting for Income Taxes . In December 2019, the FASB issued guidance to simplify the accounting for income taxes and clarify the financial statement presentation for tax benefits related to tax deductible dividends. This guidance became effective for fiscal years beginning after December 15, 2020, including interim periods within those fiscal years. The adoption of this guidance did not have a material impact on the Company’s Consolidated Financial Statements or related disclosures. Reference Rate Reform . In March 2020, the FASB issued guidance which provides optional expedients and exceptions for applying generally accepted accounting principles in the U.S. (“GAAP”) to contract modifications and hedging relationships, subject to meeting certain criteria that reference the London Interbank Offered Rate (“LIBOR”) or another reference rate expected to be discontinued. This guidance became effective as of March 12, 2020, and will apply through December 31, 2022. The transition from LIBOR based benchmark rates is expected to begin January 1, 2022 and be completed when U.S. Dollar (“USD”) LIBOR rates are phased out by June 30, 2023. The Company adopted appropriate LIBOR replacement rate transition language into the agreements for the renewal of its USD bank conduit facility in 2020 and the renewal of the credit agreement governing the revolving credit facility and term loan B which closed during 2021. These agreements represented the Company’s largest exposure to LIBOR. The adoption of this guidance did not have a material impact on the Company’s Consolidated Financial Statements or related disclosures. |
Revenue Recognition (Policies)
Revenue Recognition (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition and Loyalty Programs | REVENUE RECOGNITION Refer to Note 3— Revenue Recognition for full details of the Company’s revenue recognition policies. Vacation Ownership The Company develops, markets and sells VOIs to individual consumers, provides consumer financing in connection with the sale of VOIs, and provides property management services at resorts. The Company’s sales of VOIs are either cash sales or developer-financed sales. Developer-financed sales are typically collateralized by the underlying VOI. Revenue is recognized on VOI sales upon transfer of control, which is defined as the point in time when a binding sales contract has been executed, the financing contract has been executed for the remaining transaction price, the statutory rescission period has expired, and the transaction price has been deemed to be collectible. For developer-financed sales, the Company reduces the VOI sales transaction price by an estimate of uncollectible consideration at the time of the sale. The Company’s estimates of uncollectible amounts are based largely on the results of the Company’s static pool analysis which relies on historical payment data by customer class. In connection with entering into a VOI sale, the Company may provide its customers with certain non-cash incentives, such as credits for future stays at its resorts. For those VOI sales, the Company bifurcates the sale and allocates the sales price between the VOI sale and the non-cash incentive. Non-cash incentives generally have expiration periods of 18 months or less and are recognized at a point in time upon transfer of control. Travel and Membership Travel and Membership derives a majority of its revenues from membership dues and fees for facilitating members’ trading of their intervals. Revenues from membership dues represent the fees paid by members or affiliated clubs on their behalf. The Company recognizes revenues from membership dues paid by the member on a straight-line basis over the membership period as the performance obligations are fulfilled through delivery of publications, if applicable, and by providing access to travel-related products and services. Estimated net contract consideration payable by affiliated clubs for memberships is recognized as revenue over the term of the contract with the affiliated club in proportion to the estimated average monthly member count. Such estimates are adjusted periodically for changes in the actual and forecasted member activity. For additional fees, members have the right to exchange their intervals for intervals at other properties affiliated with the Company’s vacation exchange networks and, for certain members, for other leisure-related services and products. The Company also derives revenue from facilitating bookings of travel accommodations for both members and non-members. Revenue is recognized when these transactions have been confirmed, net of expected cancellations, except in certain transactions where the Company has a performance obligation that is not satisfied until the time of stay. As a provider of vacation exchange services, the Company enters into affiliation agreements with developers of vacation ownership properties to allow owners of VOIs to trade their intervals for intervals at other properties affiliated with the Company’s vacation exchange network and, for some members, for other leisure-related services and products. The Company’s vacation exchange business also derives revenues from programs with affiliated resorts, club servicing, and loyalty programs; and additional exchange-related products that provide members with the ability to protect trading power or points, extend the life of deposits, and combine two or more deposits for the opportunity to exchange into intervals with higher trading power. Other vacation exchange-related product fees are deferred and recognized as revenue upon the occurrence of a future exchange, event, or other related transaction. The Company earns revenue from its RCI Elite Rewards co–branded credit card program, which is primarily generated by cardholder spending and the enrollment of new cardholders. The advance payments received under the program are recognized as a contract liability until the Company’s performance obligations have been satisfied. The primary performance obligation for the program relates to brand performance services. Total contract consideration is estimated and recognized on a straight-line basis over the contract term. Prior to the sale of the vacation rental businesses, the Company’s vacation rental brands derived revenue from fees associated with the rental of vacation properties managed and marketed by the Company on behalf of independent owners. The Company remitted the rental fee received from the renter to the independent owner, net of the Company’s agreed-upon fee. The related revenue from such fees, net of expected refunds, was recognized over the renter’s stay. The Company’s vacation rental brands also derived revenues from additional services delivered to independent owners, vacation rental guests, and property owners’ associations which were generally recognized when the service was delivered. Other Items The Company records property management services revenues for its Vacation Ownership segment and RCI Elite Rewards revenues for its Travel and Membership segments gross as a principal. In the Company’s Vacation Ownership business, deferred VOI trial package revenue represents consideration received in advance for a trial VOI, which allows customers to utilize a vacation package typically within one year of purchase. Deferred VOI incentive revenue represents payments received in advance for additional travel-related services and products at the time of a VOI sale. Revenue is recognized when a customer utilizes the additional services and products, which is typically within one year of the VOI sale. Within the Company’s Travel and Membership business, deferred subscription revenue represents billings and payments received in advance from members and affiliated clubs for memberships in the Company’s travel programs which are recognized in future periods. Deferred revenue primarily represents payments received in advance from members for the right to access the Company’s vacation travel network to book vacation exchanges and rent travel accommodations which are recognized on a straight-line basis over the contract period, generally within one year. Deferred revenue also includes other leisure-related services and products revenue which is recognized as customers utilize the associated benefits. |
Capitalized contract costs policy text block [Policy Text Block] | Capitalized Contract Costs The Vacation Ownership segment incurs certain direct and incremental selling costs in connection with VOI trial package and incentive revenues. Such costs are capitalized and subsequently amortized over the utilization period, which is typically within one year of the sale. As of December 31, 2021 and 2020, these capitalized costs were $28 million and $41 million; and are included within Other assets on the Consolidated Balance Sheets. |
Business Combinations (Policies
Business Combinations (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
Business Combinations [Abstract] | |
Business Combinations Policy | 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/(Loss) 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 were 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 measurement 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/(Loss) as expenses. |
Receivables, Loans, Notes Recei
Receivables, Loans, Notes Receivable, and Others (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
Receivables [Abstract] | |
Credit Quality for Financed Receivables and the Allowance for Credit Losses | Credit Quality for Financed Receivables and the Allowance for Credit Losses The basis of the differentiation within the identified class of financed VOI contract receivables is the consumer’s Fair Isaac Corporation (“FICO”) score. A FICO score is a branded version of a consumer credit score widely used within the U.S. by the largest banks and lending institutions. FICO scores range from 300 to 850 and are calculated based on information obtained from one or more of the three major U.S. credit reporting agencies that compile and report on a consumer’s credit history. The Company updates its records for all active VOI contract receivables with a balance due on a rolling monthly basis to ensure that all VOI contract receivables are scored at least every six months. The Company groups all VOI contract receivables into five different categories: FICO scores ranging from 700 to 850, from 600 to 699, below 600, no score (primarily comprised of consumers for whom a score is not readily available, including consumers declining access to FICO scores and non-U.S. residents), and Asia Pacific (comprised of receivables in the Company’s Vacation Ownership Asia Pacific business for which scores are not readily available). |
Leases (Policies)
Leases (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
Leases [Abstract] | |
Leases | The Company leases property and equipment under finance and operating leases for its corporate headquarters, administrative functions, marketing and sales offices, and various other facilities and equipment. For leases with terms greater than 12 months, the Company records the related asset and obligation at the present value of lease payments over the term. Many of its leases include rental escalation clauses, lease incentives, renewal options and/or termination options that are factored into the Company’s determination of lease payments. The Company elected the hindsight practical expedient to determine the reasonably certain lease term for existing leases. The Company also made an accounting policy election to keep leases with an initial term of 12 months or less off the balance sheet and recognize the associated lease payments on a straight-line basis over the lease term in the Consolidated Statements of Income/(Loss).When available, the Company uses the rate implicit in the lease to discount lease payments to present value; however, most of its leases do not provide a readily determinable implicit rate. Therefore, the Company must estimate its incremental borrowing rate to discount the lease payments based on information available at lease commencement. The majority of the Company’s leases have remaining lease terms of one |
Debt (Policies)
Debt (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
Deferred Financing Costs | Deferred Financing Costs The Company classifies debt issuance costs related to its revolving credit facilities and the bank conduit facilities within Other assets on the Consolidated Balance Sheets. Such costs were $10 million and $11 million as of December 31, 2021 and 2020. |
Variable Interest Entities (Pol
Variable Interest Entities (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
Variable Interest Entity, Primary Beneficiary, Does Not Hold Majority Voting Interest, Disclosures [Abstract] | |
Principles Of Consolidation | PRINCIPLES OF CONSOLIDATION When evaluating an entity for consolidation, the Company first determines whether an entity is a variable interest entity (“VIE”). If the entity is deemed to be a VIE, the Company consolidates those VIEs for which the Company is the primary beneficiary. The Company will also consolidate an entity not deemed a VIE upon determination that the Company has a controlling financial interest. For entities where the Company does not have a controlling financial interest, the investments in such entities are accounted for using the equity or cost method, as appropriate. The Company analyzes its variable interests, including loans, guarantees, SPEs, and equity investments, to determine if an entity in which the Company has a variable interest is a VIE. If the entity is deemed to be a VIE, the Company consolidates those VIEs for which the Company is the primary beneficiary. Vacation Ownership Contract Receivables Securitizations The Company pools qualifying VOCRs and sells them to bankruptcy-remote entities. VOCRs qualify for securitization based primarily on the credit strength of the VOI purchaser to whom financing has been extended. VOCRs are securitized through bankruptcy-remote SPEs that are consolidated within the Consolidated Financial Statements. As a result, the Company does not recognize gains or losses resulting from these securitizations at the time of sale to the SPEs. Interest income is recognized when earned over the contractual life of the VOCRs. The Company services the securitized VOCRs pursuant to servicing agreements negotiated on an arm’s-length basis based on market conditions. The activities of these SPEs are limited to (i) purchasing VOCRs from the Company’s vacation ownership subsidiaries, (ii) issuing debt securities and/or borrowing under a conduit facility to fund such purchases, and (iii) entering into derivatives to hedge interest rate exposure. The bankruptcy-remote SPEs are legally separate from the Company. The receivables held by the bankruptcy-remote SPEs are not available to creditors of the Company and legally are not assets of the Company. Additionally, the non-recourse debt that is securitized through the SPEs is legally not a liability of the Company and thus, the creditors of these SPEs have no recourse to the Company for principal and interest. |
Fair Value Measures and Disclos
Fair Value Measures and Disclosures (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurement, Policy | The Company measures its financial assets and liabilities at fair value on a recurring basis and utilizes the fair value hierarchy to determine such fair values. Financial assets and liabilities carried at fair value are classified and disclosed in one of the following three categories: Level 1: Quoted prices for identical instruments in active markets. Level 2: Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations whose inputs are observable or whose significant value driver is observable. Level 3: Unobservable inputs used when little or no market data is available. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, the level in the fair value hierarchy within which the fair value measurement falls has been determined based on the lowest level input (closest to Level 3) that is significant to the fair value measurement. The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment, and considers factors specific to the asset or liability. 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. |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activities (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives, Reporting of Derivative Activity | 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 on 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 qualifying cash flow hedges, are recorded in Accumulated other comprehensive loss (“AOCL”). The derivative’s gain or loss is released from AOCL to match the timing of the underlying hedged cash flows effect on earnings. A hedge is designated as a fair value hedge when the derivative is used to manage an exposure to changes in the fair value of a recognized asset or liability. For fair value hedges, the portion of the gain or loss on the derivative instrument designated as a fair value hedge will be recognized in earnings. The Company concurrently records changes in the value of the hedged asset or liability via a basis adjustment to the hedged item. These two changes in fair value offset one another in whole or in part and are reported in the same statement of income line item as the hedged risk. 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 AOCL 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 AOCL. Changes in interest rates and foreign exchange rates expose the Company to market risk. The Company periodically uses cash flow and fair value 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. |
Commitment and Contingencies (P
Commitment and Contingencies (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies, Policy | Travel + Leisure Co. Litigation The Company may be from time to time involved in claims, legal and regulatory proceedings, and governmental inquiries arising in the ordinary course of its business including but not limited to: for its Vacation Ownership business — breach of contract, bad faith, conflict of interest, fraud, consumer protection and other statutory claims by property owners’ associations, owners and prospective owners in connection with the sale or use of VOIs or land, or the management of vacation ownership resorts, construction defect claims relating to vacation ownership units or resorts or in relation to guest reservations and bookings; and negligence, breach of contract, fraud, consumer protection and other statutory claims by guests and other consumers for alleged injuries sustained at or acts or occurrences related to vacation ownership units or resorts or in relation to guest reservations and bookings; for its Travel and Membership business — breach of contract, fraud and bad faith claims by affiliates and customers in connection with their respective agreements, negligence, breach of contract, fraud, consumer protection and other statutory claims asserted by members, guests and other consumers for alleged injuries sustained at or acts or occurrences related to affiliated resorts, or in relation to guest reservations and bookings; and for each of its businesses, bankruptcy proceedings involving efforts to collect receivables from a debtor in bankruptcy, employment matters including but not limited to, claims of wrongful termination, retaliation, discrimination, harassment and wage and hour claims, whistleblower claims, claims of infringement upon third parties’ intellectual property rights, claims relating to information security, privacy and consumer protection, fiduciary duty/trust claims, tax claims, environmental claims, and landlord/tenant disputes. |
Stock-Based Compensation (Polic
Stock-Based Compensation (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
Share-based Payment Arrangement, Noncash Expense [Abstract] | |
Stock-Based Compensation | STOCK-BASED COMPENSATION The Company measures all stock-based compensation awards using a fair value method and records the related expense in its Consolidated Statements of Income/(Loss). |
Compensation Related Costs, Ret
Compensation Related Costs, Retirement Benefits (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
Retirement Benefits [Abstract] | |
Postemployment Benefit Plans, Policy | Defined Contribution Benefit PlansTravel + Leisure Co. 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. 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. Defined Benefit Pension PlansThe Company sponsors defined benefit pension plans for certain foreign subsidiaries, which were primarily part of the Company’s European vacation rentals business, which is presented as discontinued operations. 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. The Company’s policy is to contribute amounts sufficient to meet minimum funding requirements as set forth in employee benefit and tax laws and additional amounts that the Company determines to be appropriate. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Summary of Activity of Allowance For Doubtful Accounts | The following table illustrates the Company’s allowance for doubtful accounts activity from continuing operations for the years ended December 31 (in millions): 2021 2020 2019 Beginning balance $ 221 $ 154 $ 104 Bad debt expense 127 125 100 Write-offs (149) (58) (51) Translation and other adjustments — — 1 Ending balance $ 199 $ 221 $ 154 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Disaggregation of Net Revenues | Property management revenues, which are comprised of management fee revenue and reimbursable revenue, for the years ended December 31, were (in millions) (a) : 2021 2020 2019 Management fee revenue $ 358 $ 331 $ 365 Reimbursable revenues 313 252 307 Property management revenues $ 671 $ 583 $ 672 (a) Reflects the impact of reclassifying the Extra Holidays business line from the Vacation Ownership segment to Travel and Membership. The table below presents a disaggregation of the Company’s net revenues from contracts with customers by major services and products for each of the Company’s segments (in millions) (a) : Year Ended December 31, 2021 2020 2019 Vacation Ownership Vacation ownership interest sales (b) $ 1,176 $ 505 $ 1,848 Property management fees and reimbursable revenues 671 583 672 Consumer financing 404 467 515 Fee-for-Service commissions 101 22 18 Ancillary revenues 51 48 69 Total Vacation Ownership 2,403 1,625 3,122 Travel and Membership Transaction revenues 540 315 492 Subscription revenues 176 160 216 Vacation rental revenues (c) — — 153 Ancillary revenues 36 77 83 Total Travel and Membership 752 552 944 Corporate and other Ancillary revenues — — 1 Eliminations (21) (17) (24) Total Corporate and other (21) (17) (23) Net revenues $ 3,134 $ 2,160 $ 4,043 (a) This table reflects the reclassification of Extra Holidays from the Vacation Ownership segment into the Travel and Membership segment for all periods presented. Extra Holidays revenue is included within Transaction revenues. (b) The Company increased its loan loss allowance by $205 million during 2020, due to an expected increase in net new defaults driven by higher unemployment associated with COVID-19, which is reflected as a reduction to Vacation ownership interest sales on the Consolidated Statements of Income/(Loss). During 2021, the Company analyzed the adequacy of this COVID-19 related allowance consistent with past methodology, resulting in releases of $91 million which is reflected as an increase in Vacation ownership interest sales on the Consolidated Statements of Income/(Loss). (c) The Company completed the sale of the North American vacation rentals business on October 22, 2019. |
Schedule of Contract Liabilities | Contract liabilities as of December 31, were as follows (in millions): 2021 2020 Deferred subscription revenue $ 166 $ 176 Deferred VOI trial package revenue 85 115 Deferred exchange-related revenue (a) 61 59 Deferred VOI incentive revenue 55 74 Deferred co-branded credit card programs revenue 12 16 Deferred other revenue 3 8 Total $ 382 $ 448 (a) Includes contractual liabilities to accommodate members for cancellations initiated by the Company due to unexpected events. These amounts are included within Accrued expenses and other liabilities on the Consolidated Balance Sheets. |
Contract with customer liability rollforward [Table Text Block] | Changes in contract liabilities for the years ended December 31, follow (in millions): 2021 2020 2019 Beginning balance $ 448 $ 539 $ 519 Additions 247 223 387 Revenue recognized (313) (314) (367) Ending balance $ 382 $ 448 $ 539 |
Schedule of Performance Obligations | The following table summarizes the Company’s remaining performance obligations for the 12-month periods set forth below (in millions): 2022 2023 2024 Thereafter Total Subscription revenue $ 96 $ 37 $ 17 $ 16 $ 166 VOI trial package revenue 82 — 3 — 85 Exchange-related revenue 56 4 1 — 61 VOI incentive revenue 55 — — — 55 Co-branded credit card programs revenue 3 3 2 4 12 Other revenue 3 — — — 3 Total $ 295 $ 44 $ 23 $ 20 $ 382 |
Earnings_(Loss) Per Share (Tabl
Earnings/(Loss) Per Share (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Earnings Per Share Reconciliation [Abstract] | |
Computation Of Basic And Diluted EPS | The following table sets forth the computations of basic and diluted EPS (in millions, except per share data): Year Ended December 31, 2021 2020 2019 Net income/(loss) from continuing operations attributable to Travel + Leisure Co. shareholders $ 313 $ (253) $ 489 (Loss)/gain on disposal of discontinued business attributable to Travel + Leisure Co. shareholders, net of income taxes (5) (2) 18 Net income/(loss) attributable to Travel + Leisure Co. shareholders $ 308 $ (255) $ 507 Basic earnings/(loss) per share (a) Continuing operations $ 3.62 $ (2.95) $ 5.31 Discontinued operations (0.06) (0.02) 0.19 $ 3.56 $ (2.97) $ 5.50 Diluted earnings/(loss) per share (a) Continuing operations $ 3.58 $ (2.95) $ 5.29 Discontinued operations (0.06) (0.02) 0.19 $ 3.52 $ (2.97) $ 5.48 Basic weighted average shares outstanding 86.5 86.1 92.1 Stock-settled appreciation rights (“SSARs”), RSUs (b) , PSUs (c) and NQs (d) 0.8 — 0.3 Diluted weighted average shares outstanding (e) 87.3 86.1 92.4 Dividends: Cash dividends per share (f) $ 1.25 $ 1.60 $ 1.80 Aggregate dividends paid to shareholders $ 109 $ 138 $ 166 (a) Earnings/(loss) per share amounts are calculated using whole numbers. (b) Excludes 0.4 million, 1.1 million, and 0.4 million of restricted stock units (“RSUs”) that would have been anti-dilutive to EPS for the years 2021, 2020, and 2019, of which 0.2 million would have been dilutive during 2020 had the Company not been in a net loss position. These shares could potentially dilute EPS in the future. (c) Excludes performance-vested restricted stock units (“PSUs”) of 0.4 million, 0.3 million, and 0.2 million for the years 2021, 2020, and 2019 as the Company had not met the required performance metrics. These PSUs could potentially dilute EPS in the future. (d) Excludes 1.4 million, 2.1 million, and 1.2 million of outstanding non-qualified stock option (“NQs”) awards that would have been anti-dilutive to EPS for the years 2021, 2020, and 2019. These outstanding stock option awards could potentially dilute EPS in the future. (e) The dilutive impact of the Company’s potential common stock is computed utilizing the treasury stock method using average market prices during the period. (f) During 2021 the Company paid cash dividends of $0.30 per share for the first, second and third quarters, and $0.35 per share for the fourth quarter. During 2020 the Company paid cash dividends of $0.50 per share for the first and second quarters, and $0.30 per share for the third and fourth quarters. The Company paid cash dividends of $0.45 per share for all four quarters of 2019. |
Current Stock Repurchase Program | The following table summarizes stock repurchase activity under the current share repurchase program (in millions): Shares Cost As of December 31, 2020 111.3 $ 5,727 Repurchases 0.5 26 As of December 31, 2021 111.8 $ 5,753 |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Disposal Groups, Including Discontinued Operations | The following table presents information regarding components of cash flows from discontinued operations for the years ended December 31, (in millions): 2021 2020 2019 Cash flows used in operating activities $ — $ — $ (1) Cash flows used in investing activities — (5) (22) |
Intangible Assets (Tables)
Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule Of Intangible Assets And Goodwill | Intangible assets consisted of (in millions): As of December 31, 2021 As of December 31, 2020 Gross Accumulated Net Gross Accumulated Net Unamortized Intangible Assets: Goodwill $ 961 $ 964 Trademarks (a) $ 146 $ 47 Amortized Intangible Assets: Customer lists (b) $ 75 $ 31 $ 44 $ 75 $ 25 $ 50 Management agreements (c) 52 34 18 53 31 22 Trademarks (d) 8 5 3 8 5 3 Other (e) 8 — 8 9 — 9 $ 143 $ 70 $ 73 $ 145 $ 61 $ 84 (a) Comprised of trademarks that the Company has acquired that are expected to generate future cash flows for an indefinite period of time. (b) Amortized between 4 to 15 years with a weighted average life of 12 years. (c) Amortized between 10 to 25 years with a weighted average life of 17 years. (d) Amortized between 7 to 8 years with a weighted average life of 7 years. (e) Includes business contracts, which are amortized between 10 to 69 years with a weighted average life of 57 years. |
Changes In Carrying Amount Of Goodwill By Segnent | The changes in the carrying amount of goodwill are as follows (in millions): Balance as of December 31, 2020 Foreign Exchange Balance as of December 31, 2021 Travel and Membership $ 937 $ (3) $ 934 Vacation Ownership 27 — 27 Total Company $ 964 $ (3) $ 961 |
Amortization Expense Related To Intangible Assets By Major Class | Amortization expense relating to amortizable intangible assets is included as a component of Depreciation and amortization on the Consolidated Statements of Income/(Loss) and was as follows (in millions): 2021 2020 2019 Customer lists $ 6 $ 6 $ 6 Management agreements 3 3 3 Other — 1 — Total $ 9 $ 10 $ 9 |
Future Amortization Expenses Of Intangible Assets | Based on the Company’s amortizable intangible assets as of December 31, 2021, the Company expects related amortization expense for the next five years as follows (in millions): Amount 2022 $ 10 2023 10 2024 9 2025 9 2026 9 |
Income Tax (Tables)
Income Tax (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Tax Provision | The income tax provision/(benefit) attributable to continuing operations consisted of the following for the years ended December 31 (in millions): 2021 2020 2019 Current Federal $ 111 $ 42 $ 74 State 27 12 9 Foreign 17 11 29 155 65 112 Deferred Federal (38) (82) 57 State (2) (3) 17 Foreign 1 (3) 5 (39) (88) 79 Provision/(benefit) for income taxes $ 116 $ (23) $ 191 |
Pre-Tax Income For Domestic And Foreign Operations | Pre-tax income/(loss) for domestic and foreign operations attributable to continuing operations consisted of the following for the years ended December 31 (in millions): 2021 2020 2019 Domestic $ 314 $ (326) $ 452 Foreign 115 50 228 Income/(loss) before income taxes $ 429 $ (276) $ 680 |
Current and Non-Current Deferred Income Tax Assets and Liabilities | Deferred income tax assets and liabilities, as of December 31, were comprised of the following (in millions): 2021 2020 Deferred income tax assets: Provision for doubtful accounts and loan loss allowance for vacation ownership contract receivables $ 180 $ 227 Foreign tax credit carryforward 77 75 Accrued liabilities and deferred income 76 80 Other comprehensive income 73 69 Net operating loss carryforward 33 37 Tax basis differences in assets of foreign subsidiaries 11 12 Other 89 92 Valuation allowance (a) (156) (153) Deferred income tax assets 383 439 Deferred income tax liabilities: Installment sales of vacation ownership interests 700 780 Depreciation and amortization 227 228 Other comprehensive income 53 49 Estimated VOI recoveries 46 60 Other 18 20 Deferred income tax liabilities 1,044 1,137 Net deferred income tax liabilities $ 661 $ 698 Reported in: Other assets $ 25 $ 27 Deferred income taxes 686 725 Net deferred income tax liabilities $ 661 $ 698 (a) The valuation allowance of $156 million at December 31, 2021, relates to foreign tax credits, net operating loss carryforwards, and certain deferred tax assets of $56 million, $21 million, and $79 million. The valuation allowance of $153 million at December 31, 2020, relates to foreign tax credits, net operating loss carryforwards, and certain deferred tax assets of $50 million, $22 million, and $81 million. 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 years ended December 31: 2021 2020 2019 Federal statutory rate 21.0% 21.0% 21.0% State and local income taxes, net of federal tax benefits 4.5 (0.9) 6.8 Taxes on foreign operations at rates different than U.S. federal statutory rates (3.2) (0.9) 1.4 Taxes on foreign income, net of tax credits 3.5 0.2 0.4 Valuation allowance 1.8 (7.1) (2.4) Installment sale interest 1.3 (0.8) 0.5 Other (1.9) (3.2) 0.4 27.0% 8.3% 28.1% |
Summary of Activities Related To Unrecognized Tax Benefits | The following table summarizes the activity related to the Company’s unrecognized tax benefits (in millions): 2021 2020 2019 Beginning balance $ 26 $ 29 $ 28 Increases related to tax positions taken during a prior period 2 — 1 Increases related to tax positions taken during the current period 2 2 4 Decreases related to settlements with taxing authorities — — (1) Decreases related to tax positions taken during a prior period — (2) (1) Decreases as a result of a lapse of the applicable statute of limitations (3) (3) (2) Ending balance $ 27 $ 26 $ 29 |
Vacation Ownership Contract R_2
Vacation Ownership Contract Receivables (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Vacation Ownership Contract Receivables [Abstract] | |
Current And Long-Term Vacation Ownership Contract Receivables | As of December 31, Vacation ownership contract receivables, net consisted of (in millions): 2021 2020 Vacation ownership contract receivables: Securitized (a) $ 2,061 $ 2,458 Non-securitized (b) 758 717 Vacation ownership contract receivables, gross 2,819 3,175 Less: Allowance for loan losses 510 693 Vacation ownership contract receivables, net $ 2,309 $ 2,482 |
Principal Payments Due On Vacation Ownership Contract Receivables | Principal payments due on the Company’s VOCRs during each of the five years subsequent to December 31, 2021, and thereafter are as follows (in millions): Securitized Non - Total 2022 $ 219 $ 68 $ 287 2023 233 77 310 2024 245 83 328 2025 258 88 346 2026 249 78 327 Thereafter 857 364 1,221 $ 2,061 $ 758 $ 2,819 |
Allowance For Loan Losses On Vacation Ownership Contract Receivables | The activity in the allowance for loan losses on VOCRs was as follows (in millions): Amount Allowance for loan losses as of December 31, 2018 $ 734 Provision for loan losses, net 479 Contract receivables write-offs, net (466) Allowance for loan losses as of December 31, 2019 747 Provision for loan losses, net 415 Contract receivables write-offs, net (469) Allowance for loan losses as of December 31, 2020 693 Provision for loan losses, net 129 Contract receivables write-offs, net (312) Allowance for loan losses as of December 31, 2021 $ 510 |
Aged Analysis Of Financing Receivables Using Updated FICO Scores | The following table details an aging analysis of financing receivables using the most recently updated FICO scores, based on the policy described above (in millions): As of December 31, 2021 700+ 600-699 <600 No Score Asia Pacific Total Current $ 1,630 $ 734 $ 98 $ 72 $ 169 $ 2,703 31 - 60 days 17 24 10 3 1 55 61 - 90 days 9 12 7 1 — 29 91 - 120 days 9 12 9 1 1 32 Total (a) $ 1,665 $ 782 $ 124 $ 77 $ 171 $ 2,819 As of December 31, 2020 700+ 600-699 <600 No Score Asia Pacific Total Current $ 1,706 $ 835 $ 160 $ 96 $ 221 $ 3,018 31 - 60 days 20 25 13 4 2 64 61 - 90 days 13 18 12 3 1 47 91 - 120 days 12 16 14 3 1 46 Total (a) $ 1,751 $ 894 $ 199 $ 106 $ 225 $ 3,175 (a) Includes contracts under temporary deferment (up to 180 days). As of December 31, 2021 and 2020, contracts under deferment total $7 million and $37 million. The following table details the year of origination of financing receivables using the most recently updated FICO scores, based on the policy described above (in millions): As of December 31, 2021 700+ 600-699 <600 No Score Asia Pacific Total 2021 $ 534 $ 221 $ 11 $ 11 $ 38 $ 815 2020 224 105 17 6 38 390 2019 324 168 37 19 33 581 2018 234 117 25 14 24 414 2017 157 76 15 11 14 273 Prior 192 95 19 16 24 346 Total $ 1,665 $ 782 $ 124 $ 77 $ 171 $ 2,819 As of December 31, 2020 700+ 600-699 <600 No Score Asia Pacific Total 2020 $ 424 $ 173 $ 11 $ 17 $ 55 $ 680 2019 476 269 67 27 70 909 2018 339 183 50 21 36 629 2017 220 115 31 16 22 404 2016 128 63 16 10 16 233 Prior 164 91 24 15 26 320 Total $ 1,751 $ 894 $ 199 $ 106 $ 225 $ 3,175 |
Inventory (Tables)
Inventory (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Inventory Disclosure [Abstract] | |
Schedule Of Inventory | Inventory, as of December 31, consisted of (in millions): 2021 2020 Completed VOI inventory $ 998 $ 1,049 Estimated VOI recoveries 187 246 VOI construction in process 13 30 Inventory sold subject to repurchase 13 13 Vacation exchange credits and other 4 8 Land held for VOI development 1 1 Total inventory $ 1,216 $ 1,347 |
Activity Related to Inventory Obligations | The following table summarizes the activity related to the Company’s inventory obligations (in millions): Las Vegas (a) Moab (a) Orlando (a) Other (b) Total December 31, 2019 $ 43 $ — $ — $ 6 $ 49 Purchases 36 41 44 107 228 Payments (66) (10) (22) (96) (194) December 31, 2020 13 31 22 17 83 Purchases 2 25 2 70 99 Payments (2) (56) (24) (86) (168) December 31, 2021 $ 13 $ — $ — $ 1 $ 14 (a) Included in Accrued expenses and other liabilities on the Consolidated Balance Sheets. (b) Included in Accounts payable on the Consolidated Balance Sheets. |
Property And Equipment, Net (Ta
Property And Equipment, Net (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property And Equipment | Property and equipment, net, as of December 31, consisted of (in millions): 2021 2020 Capitalized software $ 707 $ 694 Building and leasehold improvements 653 591 Furniture, fixtures and equipment 204 207 Land 30 30 Finance leases 20 14 Construction in progress 18 12 Total property and equipment 1,632 1,548 Less: Accumulated depreciation and amortization 943 882 Property and equipment, net $ 689 $ 666 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Leases [Abstract] | |
Lease, Cost [Table Text Block] | The table below presents information related to the lease costs for finance and operating leases for the years ended December 31, (in millions): 2021 2020 2019 Operating lease cost $ 22 $ 30 $ 37 Short-term lease cost $ 13 $ 14 $ 23 Finance lease cost: Amortization of right-of-use assets $ 4 $ 3 $ 2 Interest on lease liabilities — — — Total finance lease cost $ 4 $ 3 $ 2 |
Leases, Assets and Liabilities [Table Text Block] | The table below presents the lease-related assets and liabilities recorded on the Consolidated Balance Sheets: Balance Sheet Classification December 31, 2021 December 31, 2020 Operating Leases (in millions): Operating lease right-of-use assets Other assets $ 79 $ 92 Operating lease liabilities Accrued expenses and other liabilities $ 136 $ 157 Finance Leases (in millions): Finance lease assets (a) Property and equipment, net $ 10 $ 8 Finance lease liabilities Debt $ 9 $ 7 Weighted Average Remaining Lease Term: Operating leases 6.4 years 7.1 years Finance leases 2.6 years 2.6 years Weighted Average Discount Rate: Operating leases (b) 5.8 % 5.9 % Finance leases 4.4 % 5.6 % (a) Presented net of accumulated depreciation. |
Leases, Cash Flow Presentation [Table Text Block] | The table below presents supplemental cash flow information related to leases for the years ended December 31, (in millions): 2021 2020 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 36 $ 36 $ 48 Operating cash flows from finance leases — — — Financing cash flows from finance leases 4 4 2 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 7 $ 3 $ 8 Finance leases 6 6 3 |
Leases, Liability Maturity [Table Text Block] | The table below presents maturities of lease liabilities as of December 31, 2021 (in millions): Operating Leases Finance 2022 $ 32 $ 5 2023 30 3 2024 28 2 2025 24 — 2026 14 — Thereafter 35 — Total minimum lease payments 163 10 Less: Amount of lease payments representing interest (27) (1) Present value of future minimum lease payments $ 136 $ 9 |
Other Assets (Tables)
Other Assets (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Other Assets [Abstract] | |
Schedule Of Other Assets | Other assets, as of December 31, consisted of (in millions): 2021 2020 Deferred costs $ 81 $ 90 Right-of-use assets 79 92 Non-trade receivables, net 57 77 Marketable securities 27 9 Deferred tax asset 25 27 Investments 21 26 Deposits 19 20 Tax receivables 5 20 Other 25 26 $ 339 $ 387 |
Accrued Expenses and Other Li_2
Accrued Expenses and Other Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Accrued Liabilities and Other Liabilities [Abstract] | |
Schedule Of Accrued Expenses And Other Liabilities | Accrued expenses and other liabilities, as of December 31, consisted of (in millions): 2021 2020 Accrued payroll and related costs $ 209 $ 166 Lease liabilities (a) 136 157 Accrued taxes 106 73 Guarantees 67 67 Resort related obligations 54 39 Accrued interest 53 65 Deferred consideration 52 21 Payables associated with separation and sale of business activities 39 39 Accrued advertising and marketing 34 61 Accrued VOI maintenance fees 29 24 Restructuring liabilities (b) 22 26 Accrued legal and professional fees 21 20 Accrued legal settlements 19 13 Inventory sale obligation (c) 13 66 Customer advances 10 10 Accrued separation costs — 7 COVID-19 liabilities (d) 1 6 Accrued other 74 69 $ 939 $ 929 (a) See Note 13— Leases for details. (b) See Note 28— Restructuring for details. (c) See Note 11— Inventory for details. (d) See Note 26— COVID-19 Related Items for details. |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
Schedule Of Long-Term Debt Instruments | The Company’s indebtedness, as of December 31, consisted of (in millions): 2021 2020 Non-recourse vacation ownership debt : (a) Term notes (b) $ 1,614 $ 1,893 USD bank conduit facility (due October 2022) (c) 190 168 AUD/NZD bank conduit facility (due April 2023) (d) 130 173 Total $ 1,934 $ 2,234 Debt : (e) $1.0 billion secured revolving credit facility (due October 2026) (f) $ — $ 547 $300 million secured term loan B (due May 2025) (g) 288 291 $250 million 5.625% secured notes (due March 2021) — 250 $650 million 4.25% secured notes (due March 2022) (h) — 650 $400 million 3.90% secured notes (due March 2023) (i) 401 402 $300 million 5.65% secured notes (due April 2024) 299 299 $350 million 6.60% secured notes (due October 2025) (j) 345 344 $650 million 6.625% secured notes (due July 2026) 643 641 $400 million 6.00% secured notes (due April 2027) (k) 407 408 $650 million 4.50% secured notes (due December 2029) 641 — $350 million 4.625% secured notes (due March 2030) 346 345 Finance leases 9 7 Total $ 3,379 $ 4,184 (a) Represents non-recourse debt that is securitized through bankruptcy-remote special purpose entities (“SPEs”), the creditors of which have no recourse to the Company for principal and interest. These outstanding borrowings (which legally are not liabilities of the Company) are collateralized by $2.17 billion and $2.57 billion of underlying gross VOCRs and related assets (which legally are not assets of the Company) as of December 31, 2021 and 2020. (b) The carrying amounts of the term notes are net of debt issuance costs of $18 million and $21 million as of December 31, 2021 and 2020. (c) The Company has a borrowing capacity of $800 million under the USD bank conduit facility through October 2022. Borrowings under this facility are required to be repaid as the collateralized receivables amortize but no later than November 2023. (d) The Company has a borrowing capacity of 250 million Australian dollars (“AUD”) and 48 million New Zealand dollars (“NZD”) under the AUD/NZD bank conduit facility through April 2023. Borrowings under this facility are required to be repaid no later than May 2025. (e) The carrying amounts of the secured notes and term loan are net of unamortized discounts of $20 million and $16 million as of December 31, 2021 and 2020, and net of unamortized debt financing costs of $8 million and $7 million as of December 31, 2021 and 2020. (f) The weighted average effective interest rate on borrowings from this facility was 3.19% and 3.02% as of December 31, 2021 and 2020. In late March 2020, the Company drew down its $1.0 billion secured revolving credit facility as a precautionary measure due to COVID-19. As of December 31, 2021, these borrowings have been repaid. (g) The weighted average effective interest rate on borrowings from this facility was 2.39% and 2.93% as of December 31, 2021 and 2020. (h) Includes less than $1 million of unamortized gains from the settlement of a derivative as of December 31, 2020. (i) Includes $2 million and $3 million of unamortized gains from the settlement of a derivative as of December 31, 2021 and 2020. (j) Includes $4 million and $5 million of unamortized losses from the settlement of a derivative as of December 31, 2021 and 2020. |
Summary Of Outstanding Debt Maturities | The Company’s outstanding debt as of December 31, 2021, matures as follows (in millions): Non-recourse Vacation Ownership Debt Debt Total Within 1 year $ 424 $ 7 $ 431 Between 1 and 2 years 234 407 641 Between 2 and 3 years 201 303 504 Between 3 and 4 years 201 625 826 Between 4 and 5 years 214 643 857 Thereafter 660 1,394 2,054 $ 1,934 $ 3,379 $ 5,313 |
Summary Of Available Capacity Under Borrowing Arrangements | As of December 31, 2021, the available capacity under the Company’s borrowing arrangements was as follows (in millions): Non-recourse Conduit Facilities (a) Revolving Credit Facilities (b) Total capacity $ 1,018 $ 1,000 Less: Outstanding borrowings 320 — Less: Letters of credit — 2 Available capacity $ 698 $ 998 (a) Consists of the Company’s USD bank conduit facility and AUD/NZD bank conduit facility. The capacity of these facilities is subject to the Company’s ability to provide additional assets to collateralize additional non-recourse borrowings. (b) Consists of the Company’s $1.0 billion secured revolving credit facility. |
Variable Interest Entities (Tab
Variable Interest Entities (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Variable Interest Entity, Primary Beneficiary, Does Not Hold Majority Voting Interest, Disclosures [Abstract] | |
Assets And Liabilities Of Vacation Ownership SPEs | The assets and liabilities of these vacation ownership SPEs are as follows (in millions): December 31, December 31, Securitized contract receivables, gross (a) $ 2,061 $ 2,458 Securitized restricted cash (b) 84 92 Interest receivables on securitized contract receivables (c) 17 23 Other assets (d) 4 5 Total SPE assets 2,166 2,578 Non-recourse term notes (e)(f) 1,614 1,893 Non-recourse conduit facilities (e) 320 341 Other liabilities (g) 2 2 Total SPE liabilities 1,936 2,236 SPE assets in excess of SPE liabilities $ 230 $ 342 (a) Included in Vacation ownership contract receivables, net on the Consolidated Balance Sheets. (b) Included in Restricted cash on the Consolidated Balance Sheets. (c) Included in Trade receivables, net on the Consolidated Balance Sheets. (d) Primarily includes deferred financing costs for the bank conduit facility and a security investment asset, which is included in Other assets on the Consolidated Balance Sheets. (e) Included in Non-recourse vacation ownership debt on the Consolidated Balance Sheets. (f) Includes deferred financing costs of $18 million and $21 million as of December 31, 2021 and 2020, related to non-recourse debt. (g) Primarily includes accrued interest on non-recourse debt, which is included in Accrued expenses and other liabilities on the 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 (in millions): December 31, December 31, SPE assets in excess of SPE liabilities $ 230 $ 342 Non-securitized contract receivables 758 717 Less: Allowance for loan losses 510 693 Total, net $ 478 $ 366 |
Fair Value (Tables)
Fair Value (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value, by Balance Sheet Grouping | The carrying amounts and estimated fair values of all other financial instruments were as follows (in millions): December 31, 2021 December 31, 2020 Carrying Estimated Fair Value Carrying Estimated Fair Value Assets Vacation ownership contract receivables, net (Level 3) $ 2,309 $ 2,858 $ 2,482 $ 3,035 Liabilities Debt (Level 2) $ 5,313 $ 5,514 $ 6,418 $ 6,705 |
Financial Instruments (Tables)
Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Summary of gain/(loss) recognized In income | The following table summarizes information regarding the gains recognized in income on the Company’s freestanding derivatives for the years ended December 31 (in millions): 2021 2020 2019 Non-designated hedging instruments Foreign exchange contracts (a) $ 1 $ 3 $ 1 (a) Included within Operating expenses on the Consolidated Statements of Income/(Loss), which is primarily offset by changes in the value of the underlying assets and liabilities. |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income/(Loss) (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | The components of accumulated other comprehensive income/(loss) are as follows (in millions): Pretax Foreign Currency Translation Adjustments Unrealized (Losses)/Gains on Cash Flow Hedges Defined Benefit Pension Plans Accumulated Other Comprehensive (Loss)/Income Balance as of December 31, 2018 $ (147) $ (2) $ 2 $ (147) Other comprehensive loss before reclassifications (1) — (1) (2) Amount reclassified to earnings — 1 — 1 Balance as of December 31, 2019 (148) (1) 1 (148) Other comprehensive income/(loss) before reclassifications 35 — (1) 34 Balance as of December 31, 2020 (113) (1) — (114) Other comprehensive loss before reclassifications (32) — — (32) Balance as of December 31, 2021 $ (145) $ (1) $ — $ (146) Tax Foreign Currency Translation Adjustments Unrealized (Losses)/Gains on Cash Flow Hedges Defined Benefit Pension Plans Accumulated Other Comprehensive (Loss)/Income Balance as of December 31, 2018 $ 94 $ 2 $ (1) $ 95 Other comprehensive income/(loss) before reclassifications 1 (1) 1 1 Balance as of December 31, 2019 95 1 — 96 Other comprehensive income before reclassifications 2 — — 2 Balance as of December 31, 2020 97 1 — 98 Other comprehensive income before reclassifications — — — — Balance as of December 31, 2021 $ 97 $ 1 $ — $ 98 Net of Tax Foreign Currency Translation Adjustments Unrealized (Losses)/Gains on Cash Flow Hedges Defined Benefit Pension Plans Accumulated Other Comprehensive (Loss)/Income Balance as of December 31, 2018 $ (53) $ — $ 1 $ (52) Other comprehensive loss before reclassification — (1) — (1) Amount reclassified to earnings — 1 — 1 Balance as of December 31, 2019 (53) — 1 (52) Other comprehensive income/(loss) before reclassifications 37 — (1) 36 Balance as of December 31, 2020 (16) — — (16) Other comprehensive loss before reclassifications (32) — — (32) Balance as of December 31, 2021 $ (48) $ — $ — $ (48) |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Share-based Payment Arrangement, Noncash Expense [Abstract] | |
Incentive Equity Awards Granted By The Company | The activity related to incentive equity awards granted to the Company’s key employees and senior officers by the Company for the year ended December 31, 2021, consisted of the following (in millions, except grant prices): Balance as of December 31, 2020 Granted Vested/Exercised (a) Forfeitures (b) Balance as of December 31, 2021 RSUs Number of RSUs 1.6 0.6 (0.3) (0.1) 1.8 (c) Weighted average grant price $ 38.22 $ 58.47 $ 44.72 $ 47.25 $ 47.83 PSUs Number of PSUs 0.3 0.1 — — 0.4 (d) Weighted average grant price $ 42.57 $ 59.00 $ — $ — $ 48.18 SSARs Number of SSARs 0.2 — (0.2) — — (e) Weighted average grant price $ 34.51 $ — $ 34.51 $ — $ — NQs Number of NQs 2.3 0.1 (0.1) — 2.3 (f) Weighted average grant price $ 44.15 $ 59.00 $ 44.50 $ — $ 45.32 (a) Upon exercise of NQs and SSARs and upon vesting of RSUs and PSUs, the Company issues new shares to participants. (b) The Company recognizes forfeitures as they occur. (c) Aggregate unrecognized compensation expense related to RSUs was $51 million as of December 31, 2021, which is expected to be recognized over a weighted average period of 2.4 years. (d) There was no unrecognized compensation expense related to PSUs as these awards were not probable of vesting as of December 31, 2021. The maximum amount of compensation expense associated with these awards would be $8 million which would be recognized over a weighted average period of 2.0 years. (e) As of December 31, 2021, all SSARs had been exercised; therefore there was no unrecognized compensation expense. (f) There were 0.9 million NQs which were exercisable as of December 31, 2021. These NQs will expire over a weighted average period of 6.9 years and carry a weighted average grant date fair value of $8.39. Unrecognized compensation expense for the NQs was $8 million as of December 31, 2021, which is expected to be recognized over a weighted average period of 2.3 years. |
Weighted Average Grant Date Fair Value Assumptions | The fair value of stock options granted by the Company during 2021, 2020, and 2019 were estimated on the dates of these grants using the Black-Scholes option-pricing model with the relevant weighted average assumptions outlined in the table below. Expected volatility was based on both historical and implied volatilities of the Company’s stock and the stock of comparable companies over the estimated expected life for options. The expected life represents the period of time these awards are expected to be outstanding. The risk-free interest rate is based on yields on U.S. Treasury strips with a maturity similar to the estimated expected life of the options. The projected dividend yield was based on the Company’s anticipated annual dividend divided by the price of the Company’s stock on the date of the grant. Stock Options 2021 2020 2019 Grant date fair value $18.87 $7.27 - $7.28 $8.98 Grant date strike price $59.00 $41.04 $44.38 Expected volatility 44.80% 32.60 % - 32.88% 29.97% Expected life (a) 6.25 years 6.25 - 7.50 years 6.25 years Risk-free interest rate 1.09% 0.95 % - 1.03% 2.59% Projected dividend yield 3.12% 4.87% 4.06% (a) The maximum contractual term for these options is 10 years. |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Segment Reporting [Abstract] | |
Summary Of Segment Information | The following tables present the Company’s segment information (in millions): Year Ended December 31, Net revenues 2021 2020 2019 Vacation Ownership $ 2,403 $ 1,625 $ 3,122 Travel and Membership 752 552 944 Total reportable segments 3,155 2,177 4,066 Corporate and other (a) (21) (17) (23) Total Company $ 3,134 $ 2,160 $ 4,043 Year Ended December 31, Reconciliation of Net income to Adjusted EBITDA 2021 2020 2019 Net income/(loss) attributable to Travel + Leisure Co. shareholders $ 308 $ (255) $ 507 Loss/(gain) on disposal of discontinued business, net of income taxes 5 2 (18) Provision/(benefit) for income taxes 116 (23) 191 Depreciation and amortization 124 126 121 Interest expense 198 192 162 Interest (income) (3) (7) (7) Gain on sale of business — — (68) Stock-based compensation 32 20 20 Legacy items 4 4 1 COVID-19 related costs (b) 3 56 — Exchange inventory write-off — 48 — Acquisition and divestiture related costs — — 1 Separation and related costs (c) — — 45 Restructuring (1) 39 9 Unrealized gain on equity investment (d) (3) — — Asset impairments/(recovery) (e) (5) 57 27 Adjusted EBITDA $ 778 $ 259 $ 991 Year Ended December 31, Adjusted EBITDA 2021 2020 2019 Vacation Ownership $ 558 $ 121 $ 736 Travel and Membership 282 191 309 Total reportable segments 840 312 1,045 Corporate and other (a) (62) (53) (54) Total Company $ 778 $ 259 $ 991 (a) Includes the elimination of transactions between segments. (b) Reflects severance and other employee costs associated with layoffs due to the COVID-19 workforce reduction offset in part by employee retention credits received in connection with the U.S. CARES Act, ARPA, and similar international programs for wages paid to certain employees despite having operations suspended. This amount does not include costs associated with idle pay. (c) Includes $4 million of stock-based compensation expenses for the year ended December 31, 2019. (d) Represents the unrealized gain associated with Vacasa equity acquired as part of the consideration for the sale of North America vacation rentals. The total amount of unrealized gain on this investment was $9 million for the year ended December 31, 2021, of which $6 million is included in Asset impairments/(recovery) on the Consolidated Statements of Income/(Loss) to offset the 2020 impairment recognized on this investment. (e) Includes $5 million of bad debt expense related to a note receivable for the year ended December 31, 2020, included in Operating expenses on the Consolidated Statements of Income/(Loss). Year Ended December 31, Segment Assets (a) 2021 2020 Vacation Ownership $ 4,743 $ 5,000 Travel and Membership 1,414 1,372 Total reportable segments 6,157 6,372 Corporate and other 431 1,241 Total Company $ 6,588 $ 7,613 (a) Excludes investment in consolidated subsidiaries. Year Ended December 31, Capital Expenditures 2021 2020 2019 Vacation Ownership $ 34 $ 41 $ 69 Travel and Membership 17 21 27 Total reportable segments 51 62 96 Corporate and other 6 7 12 Total Company $ 57 $ 69 $ 108 |
Schedule Of Geographic Segment Information | The geographic segment information provided below is classified based on the geographic location of the Company’s subsidiaries (in millions): Year Ended December 31, Year Ended December 31, Net Revenues Net Long-lived Assets 2021 2020 2019 2021 2020 United States $ 2,753 $ 1,904 $ 3,513 $ 1,574 $ 1,471 All other countries 381 256 530 295 290 Total $ 3,134 $ 2,160 $ 4,043 $ 1,869 $ 1,761 |
COVID-19 Related Items (Tables)
COVID-19 Related Items (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Restructuring and Related Activities [Abstract] | |
COVID-19 Related Impacts | For the year ended December 31, 2021, the Company’s financial statements included impacts directly related to COVID-19 as detailed in the table below (in millions): Vacation Ownership Travel and Membership Corporate Consolidated Income Statement Classification Allowance for loan losses: Provision $ (91) $ — $ — $ (91) Vacation ownership interest sales Recoveries 33 — — 33 Cost of vacation ownership interests Employee compensation related and other 3 — 1 4 COVID-19 related costs Asset impairment recovery — (6) — (6) Asset impairments/(recovery) Lease-related (1) — — (1) Restructuring Total COVID-19 $ (56) $ (6) $ 1 $ (61) For the year ended December 31, 2020, the Company’s financial statements included impacts directly related to COVID-19 as detailed in the table below (in millions): Vacation Ownership Travel and Membership Corporate Consolidated Income Statement Classification Allowance for loan losses: Provision $ 205 $ — $ — $ 205 Vacation ownership interest sales Recoveries (48) — — (48) Cost of vacation ownership interests Employee compensation related and other 65 9 14 88 COVID-19 related costs Asset impairments 21 34 1 56 Asset impairments/(recovery) and Operating expenses Exchange inventory write-off — 48 — 48 Operating expenses Lease-related 14 22 — 36 Restructuring Total COVID-19 $ 257 $ 113 $ 15 $ 385 |
COVID-19 Related Liabilities | The activity associated with the Company’s COVID-19 related liabilities is summarized as follows (in millions): Liability as of Liability as of December 31, 2020 Costs Recognized Cash Payments December 31, 2021 COVID-19 employee-related $ 6 $ 1 $ (6) $ 1 Ending balance $ 6 $ 1 $ (6) $ 1 |
Restructuring (Tables)
Restructuring (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Restructuring Charges [Abstract] | |
Activity Related To The Restructuring Costs | The activity associated with all of the Company’s restructuring plans is summarized by category as follows (in millions): Liability as of 2019 Activity Liability as of December 31, 2018 Costs Cash Other December 31, 2019 Personnel-related $ 12 $ 9 $ (14) $ — $ 7 $ 12 $ 9 $ (14) $ — $ 7 Liability as of 2020 Activity Liability as of December 31, 2019 Costs Cash Other December 31, 2020 Personnel-related $ 7 $ 3 $ (9) $ — $ 1 Facility-related — 24 (1) — 23 Marketing-related — 12 (10) — 2 $ 7 $ 39 $ (20) $ — $ 26 Liability as of 2021 Activity Liability as of December 31, 2020 Costs Cash Other December 31, 2021 Personnel-related $ 1 $ — $ (1) $ — $ — Facility-related 23 — (1) — 22 Marketing-related 2 (1) (a) (4) 3 (b) — $ 26 $ (1) $ (6) $ 3 $ 22 (a) Includes $1 million reversal of expense related to the reimbursement of prepaid licensing fees that were previously written-off at the Vacation Ownership segment. (b) Includes $2 million reimbursement of termination payments and $1 million reimbursement of license fees at the Vacation Ownership segment. |
Background and Basis Of Prese_2
Background and Basis Of Presentation (Details) $ in Millions | Jan. 05, 2021USD ($) | Dec. 31, 2020USD ($) | Mar. 31, 2020USD ($) | Dec. 31, 2021USD ($)brandsegment | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2021USD ($) |
Background [Line Items] | |||||||
Number of Reportable Segments | segment | 2 | ||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Provision for loan losses | $ 129 | $ 415 | $ 479 | ||||
Secured Revolving Credit Facility due Oct 2026 | Revolving Credit Facility | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, face amount | $ 1,000 | $ 1,000 | |||||
Travel and Membership | |||||||
Background [Line Items] | |||||||
Number of brands | brand | 3 | ||||||
Revolving Credit Facility | Secured Revolving Credit Facility due Oct 2026 | Revolving Credit Facility | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, face amount | $ 1,000 | 1,000 | |||||
COVID-19 (Member) | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Total COVID-19 Impact | (61) | 385 | |||||
COVID-19 (Member) | Vacation Ownership Interest Sales [Member] | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Provision for loan losses | $ (20) | $ 225 | (91) | 205 | $ (111) | ||
COVID-19 (Member) | Travel and Membership | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Total COVID-19 Impact | (6) | 113 | |||||
COVID-19 (Member) | Travel and Membership | Vacation Ownership Interest Sales [Member] | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Provision for loan losses | 0 | $ 0 | |||||
Travel + Leisure brand [Member] | |||||||
Acquisitions [Line Items] | |||||||
Asset Acquisition, Consideration Transferred | $ 100 | ||||||
Payments to Acquire Productive Assets | $ 55 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Summary of Significant Accounting Policies [Line Items] | |||
Restricted cash (VIE - $84 as of 2021 and $92 as of 2020) | $ 128 | $ 121 | $ 147 |
VOI purchaser funds, percentage | 100.00% | ||
Escrow deposit | $ 44 | 29 | |
Capitalized interest on inventory | 0 | 1 | 1 |
Software developed or obtained for internal use | 156 | 191 | |
Advertising expense | 33 | 26 | 37 |
Other (income), net | (6) | (14) | (23) |
Goodwill, Impairment Loss | $ 0 | 0 | 0 |
Building and leasehold improvements | |||
Summary of Significant Accounting Policies [Line Items] | |||
Useful lives | 30 years | ||
Interest Expense | |||
Summary of Significant Accounting Policies [Line Items] | |||
Software developed or obtained for internal use | $ 1 | 1 | $ 2 |
Capitalized software | |||
Summary of Significant Accounting Policies [Line Items] | |||
Useful lives | 10 years | ||
Minimum | |||
Summary of Significant Accounting Policies [Line Items] | |||
Average rescission period | 5 days | ||
Minimum | Software Development | |||
Summary of Significant Accounting Policies [Line Items] | |||
Useful lives | 3 years | ||
Minimum | Furniture, fixtures and equipment | |||
Summary of Significant Accounting Policies [Line Items] | |||
Useful lives | 3 years | ||
Maximum | |||
Summary of Significant Accounting Policies [Line Items] | |||
Average rescission period | 7 days | ||
Maximum | Leasehold Improvements [Member] | |||
Summary of Significant Accounting Policies [Line Items] | |||
Useful lives | 20 years | ||
Maximum | Vacation Rental Properties | |||
Summary of Significant Accounting Policies [Line Items] | |||
Useful lives | 30 years | ||
Maximum | Software Development | |||
Summary of Significant Accounting Policies [Line Items] | |||
Useful lives | 5 years | ||
Maximum | Furniture, fixtures and equipment | |||
Summary of Significant Accounting Policies [Line Items] | |||
Useful lives | 7 years | ||
Securitization restricted Cash [Member] | |||
Summary of Significant Accounting Policies [Line Items] | |||
Restricted cash (VIE - $84 as of 2021 and $92 as of 2020) | $ 84 | $ 92 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies (Summary of Activity of Allowance For Doubtful Accounts) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Allowance for doubtful accounts | |||
Beginning balance | $ 221 | $ 154 | $ 104 |
Bad debt expense | 127 | 125 | 100 |
Write-offs | (149) | (58) | (51) |
Translation and other adjustments | 0 | 0 | 1 |
Ending balance | $ 199 | $ 221 | $ 154 |
Revenue Recognition (Narrative)
Revenue Recognition (Narrative) (Details) | 12 Months Ended |
Dec. 31, 2021numberOfAssociations | |
Revenue from Contract with Customer [Abstract] | |
Expiration periods for non-cash incentives (or less) | 18 months |
Term of management services agreements (or less) | 1 year |
Fees for property management services, budgeted operating expenses, percentage | 10.00% |
Managed property owner's association | 1 |
Revenue Recognition (Prop Mgmt
Revenue Recognition (Prop Mgmt Revenues) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | [1] | $ 3,134 | $ 2,160 | $ 4,043 |
Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 3,155 | 2,177 | 4,066 | |
Vacation Ownership | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | [1] | 2,403 | 1,625 | 3,122 |
Management Fee Revenue | Vacation Ownership | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | [2] | 358 | 331 | 365 |
Reimbursement Revenue | Vacation Ownership | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | [2] | 313 | 252 | 307 |
Property Management Fees and Reimbursable Revenues [Member] | Vacation Ownership | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | [1],[2] | 671 | 583 | 672 |
Exchange-Related Revenue [Member] | Vacation Ownership | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 30 | $ 27 | $ 29 | |
[1] | This table reflects the reclassification of Extra Holidays from the Vacation Ownership segment into the Travel and Membership segment for all periods presented. Extra Holidays revenue is included within Transaction revenues. | |||
[2] | Reflects the impact of reclassifying the Extra Holidays business line from the Vacation Ownership segment to Travel and Membership. |
Revenue Recognition (Contract L
Revenue Recognition (Contract Liabilities) (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Disaggregation of Revenue [Line Items] | |||||
Contract liabilities | $ 382 | $ 448 | $ 539 | $ 519 | |
Contract with Customer, Liability, Revenue Recognition Term | 1 year | ||||
Subscription Revenue [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Contract liabilities | $ 166 | 176 | |||
VOI trial package revenue | |||||
Disaggregation of Revenue [Line Items] | |||||
Contract liabilities | $ 85 | 115 | |||
VOI trial package revenue | Vacation Ownership | |||||
Disaggregation of Revenue [Line Items] | |||||
Contract with Customer, Liability, Revenue Recognition Term | 1 year | ||||
Exchange-Related Revenue [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Contract liabilities | [1] | $ 61 | 59 | ||
Exchange-Related Revenue [Member] | Travel and Membership | |||||
Disaggregation of Revenue [Line Items] | |||||
Contract with Customer, Liability, Revenue Recognition Term | 1 year | ||||
VOI incentive revenue | |||||
Disaggregation of Revenue [Line Items] | |||||
Contract liabilities | $ 55 | 74 | |||
VOI incentive revenue | Vacation Ownership | |||||
Disaggregation of Revenue [Line Items] | |||||
Contract with Customer, Liability, Revenue Recognition Term | 1 year | ||||
Co-branded credit card programs revenue | |||||
Disaggregation of Revenue [Line Items] | |||||
Contract liabilities | $ 12 | 16 | |||
Other revenue | |||||
Disaggregation of Revenue [Line Items] | |||||
Contract liabilities | $ 3 | $ 8 | |||
[1] | Includes contractual liabilities to accommodate members for cancellations initiated by the Company due to unexpected events. These amounts are included within Accrued expenses and other liabilities on the Consolidated Balance Sheets. |
Revenue Recognition (Contract_2
Revenue Recognition (Contract Liabilities Rollforward) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Contract With Customer Liability Rollforward [Roll Forward] | |||
Contract Liabilities, Beginning Balance | $ 448 | $ 539 | $ 519 |
Contract with Customer, Liability, Additions | 247 | 223 | 387 |
Contract with Customer, Liability, Revenue Recognized | (313) | (314) | (367) |
Contract Liabilities, Ending Balance | $ 382 | $ 448 | $ 539 |
Revenue Recognition (Capitalize
Revenue Recognition (Capitalized Contract Costs) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Capitalized Contract Cost [Line Items] | ||
Contract with Customer, Liability, Revenue Recognition Term | 1 year | |
Vacation Ownership | ||
Capitalized Contract Cost [Line Items] | ||
Capitalized Contract Cost, Amortization Period | 1 year | |
Other assets | Vacation Ownership | ||
Capitalized Contract Cost [Line Items] | ||
Capitalized contract costs | $ 28 | $ 41 |
Other assets | Travel and Membership | ||
Capitalized Contract Cost [Line Items] | ||
Capitalized contract costs | $ 19 | $ 16 |
Revenue Recognition (Performanc
Revenue Recognition (Performance Obligations) (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||||
Contract liabilities | $ 382 | $ 448 | $ 539 | $ 519 | |
Subscription revenue | |||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||||
Contract liabilities | 166 | 176 | |||
VOI trial package revenue | |||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||||
Contract liabilities | 85 | 115 | |||
Exchange-related revenue | |||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||||
Contract liabilities | [1] | 61 | 59 | ||
VOI incentive revenue | |||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||||
Contract liabilities | 55 | 74 | |||
Co-branded credit card programs revenue | |||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||||
Contract liabilities | 12 | 16 | |||
Other revenue | |||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||||
Contract liabilities | $ 3 | $ 8 | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | |||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year | ||||
Remaining performance obligations | $ 295 | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | Subscription revenue | |||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year | ||||
Remaining performance obligations | $ 96 | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | VOI trial package revenue | |||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year | ||||
Remaining performance obligations | $ 82 | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | Exchange-related revenue | |||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year | ||||
Remaining performance obligations | $ 56 | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | VOI incentive revenue | |||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year | ||||
Remaining performance obligations | $ 55 | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | Co-branded credit card programs revenue | |||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year | ||||
Remaining performance obligations | $ 3 | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | Other revenue | |||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year | ||||
Remaining performance obligations | $ 3 | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | |||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year | ||||
Remaining performance obligations | $ 44 | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | Subscription revenue | |||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year | ||||
Remaining performance obligations | $ 37 | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | VOI trial package revenue | |||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year | ||||
Remaining performance obligations | $ 0 | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | Exchange-related revenue | |||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year | ||||
Remaining performance obligations | $ 4 | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | VOI incentive revenue | |||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year | ||||
Remaining performance obligations | $ 0 | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | Co-branded credit card programs revenue | |||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year | ||||
Remaining performance obligations | $ 3 | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | Other revenue | |||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year | ||||
Remaining performance obligations | $ 0 | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | |||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year | ||||
Remaining performance obligations | $ 23 | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | Subscription revenue | |||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year | ||||
Remaining performance obligations | $ 17 | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | VOI trial package revenue | |||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year | ||||
Remaining performance obligations | $ 3 | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | Exchange-related revenue | |||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year | ||||
Remaining performance obligations | $ 1 | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | VOI incentive revenue | |||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year | ||||
Remaining performance obligations | $ 0 | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | Co-branded credit card programs revenue | |||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year | ||||
Remaining performance obligations | $ 2 | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | Other revenue | |||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year | ||||
Remaining performance obligations | $ 0 | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01 | |||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year | ||||
Remaining performance obligations | $ 20 | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01 | Subscription revenue | |||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year | ||||
Remaining performance obligations | $ 16 | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01 | VOI trial package revenue | |||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year | ||||
Remaining performance obligations | $ 0 | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01 | Exchange-related revenue | |||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year | ||||
Remaining performance obligations | $ 0 | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01 | VOI incentive revenue | |||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year | ||||
Remaining performance obligations | $ 0 | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01 | Co-branded credit card programs revenue | |||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year | ||||
Remaining performance obligations | $ 4 | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01 | Other revenue | |||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year | ||||
Remaining performance obligations | $ 0 | ||||
[1] | Includes contractual liabilities to accommodate members for cancellations initiated by the Company due to unexpected events. These amounts are included within Accrued expenses and other liabilities on the Consolidated Balance Sheets. |
Revenue Recognition (Disaggrega
Revenue Recognition (Disaggregation of Net Revenues) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | 21 Months Ended | ||||
Dec. 31, 2020 | Mar. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2021 | ||
Disaggregation of Revenue [Line Items] | |||||||
Revenue from Contract with Customer, Excluding Assessed Tax | [1] | $ 3,134 | $ 2,160 | $ 4,043 | |||
Provision for loan losses | 129 | 415 | 479 | ||||
COVID-19 (Member) | Vacation Ownership Interest Sales [Member] | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Provision for loan losses | $ (20) | $ 225 | (91) | 205 | $ (111) | ||
Operating Segments | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Revenue from Contract with Customer, Excluding Assessed Tax | 3,155 | 2,177 | 4,066 | ||||
Corporate and Other | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Revenue from Contract with Customer, Excluding Assessed Tax | [1],[2] | (21) | (17) | (23) | |||
Corporate and Other | Ancillary Revenues [Member] | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Revenue from Contract with Customer, Excluding Assessed Tax | [1] | 0 | 0 | 1 | |||
Corporate and Other | Eliminations [Member] | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Revenue from Contract with Customer, Excluding Assessed Tax | [1] | (21) | (17) | (24) | |||
Vacation Ownership | COVID-19 (Member) | Vacation Ownership Interest Sales [Member] | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Provision for loan losses | (91) | 205 | |||||
Vacation Ownership | Operating Segments | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Revenue from Contract with Customer, Excluding Assessed Tax | [1] | 2,403 | 1,625 | 3,122 | |||
Vacation Ownership | Operating Segments | Vacation Ownership Interest Sales [Member] | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Revenue from Contract with Customer, Excluding Assessed Tax | [1],[3] | 1,176 | 505 | 1,848 | |||
Vacation Ownership | Operating Segments | Property Management Fees and Reimbursable Revenues [Member] | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Revenue from Contract with Customer, Excluding Assessed Tax | [1],[4] | 671 | 583 | 672 | |||
Vacation Ownership | Operating Segments | Consumer Financing [Member] | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Revenue from Contract with Customer, Excluding Assessed Tax | [1] | 404 | 467 | 515 | |||
Vacation Ownership | Operating Segments | Fee-for-service Commissions [Member] | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Revenue from Contract with Customer, Excluding Assessed Tax | [1] | 101 | 22 | 18 | |||
Vacation Ownership | Operating Segments | Ancillary Revenues [Member] | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Revenue from Contract with Customer, Excluding Assessed Tax | [1] | 51 | 48 | 69 | |||
Travel and Membership | COVID-19 (Member) | Vacation Ownership Interest Sales [Member] | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Provision for loan losses | 0 | 0 | |||||
Travel and Membership | Operating Segments | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Revenue from Contract with Customer, Excluding Assessed Tax | [1] | 752 | 552 | 944 | |||
Travel and Membership | Operating Segments | Transaction Revenues | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Revenue from Contract with Customer, Excluding Assessed Tax | [1] | 540 | 315 | 492 | |||
Travel and Membership | Operating Segments | Subscription Revenue [Member] | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Revenue from Contract with Customer, Excluding Assessed Tax | [1] | 176 | 160 | 216 | |||
Travel and Membership | Operating Segments | Vacation Rental Revenues [Member] | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Revenue from Contract with Customer, Excluding Assessed Tax | [1],[5] | 0 | 0 | 153 | |||
Travel and Membership | Operating Segments | Ancillary Revenues [Member] | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Revenue from Contract with Customer, Excluding Assessed Tax | [1] | $ 36 | $ 77 | $ 83 | |||
[1] | This table reflects the reclassification of Extra Holidays from the Vacation Ownership segment into the Travel and Membership segment for all periods presented. Extra Holidays revenue is included within Transaction revenues. | ||||||
[2] | Includes the elimination of transactions between segments. | ||||||
[3] | The Company increased its loan loss allowance by $205 million during 2020, due to an expected increase in net new defaults driven by higher unemployment associated with COVID-19, which is reflected as a reduction to Vacation ownership interest sales on the Consolidated Statements of Income/(Loss). During 2021, the Company analyzed the adequacy of this COVID-19 related allowance consistent with past methodology, resulting in releases of $91 million which is reflected as an increase in Vacation ownership interest sales on the Consolidated Statements of Income/(Loss). | ||||||
[4] | Reflects the impact of reclassifying the Extra Holidays business line from the Vacation Ownership segment to Travel and Membership. | ||||||
[5] | The Company completed the sale of the North American vacation rentals business on October 22, 2019. |
Earnings_(Loss) Per Share (Comp
Earnings/(Loss) Per Share (Computation Of Basic And Diluted EPS) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||||||||
Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||||||||||||||||
Net income/(loss) from continuing operations attributable to Travel + Leisure Co. shareholders | $ 313 | $ (253) | $ 489 | ||||||||||||||||
(Loss)/gain on disposal of discontinued business, net of income taxes | (5) | (2) | 18 | ||||||||||||||||
Net income/(loss) attributable to Travel + Leisure Co. shareholders | $ 308 | $ (255) | $ 507 | ||||||||||||||||
Basic earnings/(loss) per share | |||||||||||||||||||
Continuing operations | [1] | $ 3.62 | $ (2.95) | $ 5.31 | |||||||||||||||
Discontinued operations | [1] | (0.06) | (0.02) | 0.19 | |||||||||||||||
Basic earnings/(loss) per share | [1] | 3.56 | (2.97) | 5.50 | |||||||||||||||
Diluted earnings/(loss) per share | |||||||||||||||||||
Continuing operations | [1] | 3.58 | (2.95) | 5.29 | |||||||||||||||
Discontinued operations | [1] | (0.06) | (0.02) | 0.19 | |||||||||||||||
Diluted earnings/(loss) per share | [1] | $ 3.52 | $ (2.97) | $ 5.48 | |||||||||||||||
Basic weighted average shares outstanding | 86.5 | 86.1 | 92.1 | ||||||||||||||||
SSARs, RSUs and PSUs | [2],[3],[4] | 0.8 | 0 | 0.3 | |||||||||||||||
Diluted weighted average shares outstanding | [5] | 87.3 | 86.1 | 92.4 | |||||||||||||||
Cash dividends per share (in usd per share) | $ 0.35 | $ 0.30 | $ 0.30 | $ 0.30 | $ 0.30 | $ 0.30 | $ 0.50 | $ 0.50 | $ 0.45 | $ 0.45 | $ 0.45 | $ 0.45 | $ 1.25 | [6] | $ 1.60 | [6] | $ 1.80 | [6] | |
Aggregate dividends paid to shareholders | $ 109 | $ 138 | $ 166 | ||||||||||||||||
Restricted Stock Units (RSUs) [Member] | |||||||||||||||||||
Diluted earnings/(loss) per share | |||||||||||||||||||
Shares excluded from computation of diluted EPS | 0.4 | 1.1 | 0.4 | ||||||||||||||||
Restricted Stock Units (RSUs) [Member] | Dilutive Outside Loss Position | |||||||||||||||||||
Diluted earnings/(loss) per share | |||||||||||||||||||
Shares excluded from computation of diluted EPS | 0.2 | ||||||||||||||||||
Performance-vested restricted Stock Units (PSUs) | |||||||||||||||||||
Diluted earnings/(loss) per share | |||||||||||||||||||
Shares excluded from computation of diluted EPS | 0.4 | 0.3 | 0.2 | ||||||||||||||||
Employee Stock Option | |||||||||||||||||||
Diluted earnings/(loss) per share | |||||||||||||||||||
Shares excluded from computation of diluted EPS | 1.4 | 2.1 | 1.2 | ||||||||||||||||
[1] | Earnings/(loss) per share amounts are calculated using whole numbers. | ||||||||||||||||||
[2] | Excludes 0.4 million, 1.1 million, and 0.4 million of restricted stock units (“RSUs”) that would have been anti-dilutive to EPS for the years 2021, 2020, and 2019, of which 0.2 million would have been dilutive during 2020 had the Company not been in a net loss position. These shares could potentially dilute EPS in the future. | ||||||||||||||||||
[3] | Excludes 1.4 million, 2.1 million, and 1.2 million of outstanding non-qualified stock option (“NQs”) awards that would have been anti-dilutive to EPS for the years 2021, 2020, and 2019. These outstanding stock option awards could potentially dilute EPS in the future. | ||||||||||||||||||
[4] | Excludes performance-vested restricted stock units (“PSUs”) of 0.4 million, 0.3 million, and 0.2 million for the years 2021, 2020, and 2019 as the Company had not met the required performance metrics. These PSUs could potentially dilute EPS in the future. | ||||||||||||||||||
[5] | The dilutive impact of the Company’s potential common stock is computed utilizing the treasury stock method using average market prices during the period. | ||||||||||||||||||
[6] | During 2021 the Company paid cash dividends of $0.30 per share for the first, second and third quarters, and $0.35 per share for the fourth quarter. During 2020 the Company paid cash dividends of $0.50 per share for the first and second quarters, and $0.30 per share for the third and fourth quarters. The Company paid cash dividends of $0.45 per share for all four quarters of 2019. |
Earnings_(Loss) Per Share (Curr
Earnings/(Loss) Per Share (Current Share Repurchase Program) (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2021USD ($)shares | |
Share Repurchase Activity [Roll Forward] | |
Beginning balance ( in shares) | shares | 135,824,676 |
Ending balance (in shares) | shares | 136,320,631 |
Treasury Stock, Value, Beginning Balance | $ 6,508 |
Treasury Stock, Value, Ending Balance | 6,534 |
Share Repurchase Program [Member] | |
Share Repurchase Activity [Roll Forward] | |
Amount authorized under share repurchase program | 6,000 |
Remaining authorized amount under share repurchases | 328 |
Increase in repurchase capacity | $ 81 |
Beginning balance ( in shares) | shares | 111,300,000 |
Repurchases | shares | 500,000 |
Ending balance (in shares) | shares | 111,800,000 |
Treasury Stock, Value, Beginning Balance | $ 5,727 |
Repurchases | 26 |
Treasury Stock, Value, Ending Balance | $ 5,753 |
Acquisitions (Narrative) (Detai
Acquisitions (Narrative) (Details) - USD ($) $ / shares in Units, $ in Millions | Jan. 05, 2021 | Aug. 07, 2019 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||
Acquisitions [Line Items] | |||||||||||
Payments to acquire businesses, net of cash acquired | $ 37 | $ 0 | $ 51 | ||||||||
Asset impairments/(recovery) | (5) | [1] | 52 | 27 | [1] | ||||||
Goodwill, Impairment Loss | 0 | 0 | 0 | ||||||||
Travel + Leisure brand [Member] | |||||||||||
Acquisitions [Line Items] | |||||||||||
Asset Acquisition, Consideration Transferred | $ 100 | ||||||||||
Payments to Acquire Productive Assets | 55 | ||||||||||
Travel + Leisure brand [Member] | Cash used in Investing Activities | |||||||||||
Acquisitions [Line Items] | |||||||||||
Payments to Acquire Productive Assets | 35 | ||||||||||
Travel + Leisure brand [Member] | Cash used in Financing Activities | |||||||||||
Acquisitions [Line Items] | |||||||||||
Payments to Acquire Productive Assets | 20 | ||||||||||
Alliance Reservations Network | Travel and Membership | |||||||||||
Acquisitions [Line Items] | |||||||||||
Acquisition price | $ 102 | ||||||||||
Business combination, consideration transferred, net of cash acquired | 97 | ||||||||||
Stock value | $ 24 | ||||||||||
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares | 721,450 | ||||||||||
Business acquisition, Equity issued or issuable, price per share | $ 32.51 | ||||||||||
Payment for Contingent Consideration Liability, Financing Activities | $ 10 | ||||||||||
Developed software | $ 27 | ||||||||||
Developed software weighted average useful life | 10 years | ||||||||||
Goodwill, Acquired During Period | $ 38 | ||||||||||
Definite-lived intangibles | $ 35 | ||||||||||
Finite-Lived Intangible Asset, Useful Life | 12 years | ||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities, Accounts Payable | $ 4 | ||||||||||
Asset impairments/(recovery) | $ 0 | $ 0 | $ 0 | $ 0 | |||||||
Goodwill, Impairment Loss | $ 0 | $ 0 | $ 0 | $ 0 | 0 | ||||||
Alliance Reservations Network | Travel and Membership | Cash used in Investing Activities | |||||||||||
Acquisitions [Line Items] | |||||||||||
Payments to acquire businesses, net of cash acquired | $ 48 | ||||||||||
Alliance Reservations Network | Travel and Membership | Cash used in Financing Activities | |||||||||||
Acquisitions [Line Items] | |||||||||||
Payments to acquire businesses, net of cash acquired | $ 11 | $ 11 | |||||||||
Other Acquisitions | Vacation Ownership | |||||||||||
Acquisitions [Line Items] | |||||||||||
Acquisition price | 13 | ||||||||||
Business combination, consideration transferred, net of cash acquired | 10 | ||||||||||
Definite-lived intangibles | 7 | ||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities, Accounts Payable | 1 | ||||||||||
Inventory | $ 4 | ||||||||||
[1] | Includes $5 million of bad debt expense related to a note receivable for the year ended December 31, 2020, included in Operating expenses on the Consolidated Statements of Income/(Loss). |
Discontinued Operations (Narrat
Discontinued Operations (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
(Loss)/gain on disposal of discontinued business, net of income taxes | $ (5) | $ (2) | $ 18 |
Discontinued Operations | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
(Loss)/gain on disposal of discontinued business, net of income taxes | 12 | ||
Discontinued Operations | Sale Of European Vacation Rental Business | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
(Loss)/gain on disposal of discontinued business, net of income taxes | $ 6 |
Discontinued Operations (Detail
Discontinued Operations (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Including Disposal Group and Discontinued Operations [Abstract] | |||
Net cash used in operating activities - discontinued operations | $ 0 | $ 0 | $ (1) |
Net cash used in investing activities - discontinued operations | $ 0 | $ (5) | $ (22) |
Held-for Sale Business (Details
Held-for Sale Business (Details) - USD ($) $ in Millions | Oct. 22, 2019 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Gain on sale of business | $ 0 | $ 0 | $ 68 | ||||
Unrealized gain on equity investment | 9 | $ 0 | [1] | $ 0 | [1] | ||
Fair Value, Inputs, Level 1 | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Equity Securities, FV-NI | 13 | ||||||
Asset impairments/(recovery) [Member] | COVID-19 (Member) | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Unrealized gain on equity investment | 6 | ||||||
Asset impairments/(recovery) [Member] | Travel and Membership | COVID-19 (Member) | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Unrealized gain on equity investment | 6 | ||||||
Other Income | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Unrealized gain on equity investment | [1] | $ 3 | |||||
Disposal Group, Not Discontinued Operations [Member] | North American Vacation Rentals [Member] | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Sale price | $ 162 | ||||||
Net proceeds from sale of business | 156 | ||||||
Value of additional shares | 10 | ||||||
Gain on sale of business | $ 68 | ||||||
[1] | Represents the unrealized gain associated with Vacasa equity acquired as part of the consideration for the sale of North America vacation rentals. The total amount of unrealized gain on this investment was $9 million for the year ended December 31, 2021, of which $6 million is included in Asset impairments/(recovery) on the Consolidated Statements of Income/(Loss) to offset the 2020 impairment recognized on this investment. |
Intangible Assets (Components O
Intangible Assets (Components Of Intangible Assets) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | ||
Intangible Assets [Line Items] | |||
Goodwill | $ 961 | $ 964 | |
Amortized Intangible Assets: | 143 | 145 | |
Accumulated Amortization | 70 | 61 | |
Net Carrying Amount | 73 | 84 | |
Customer lists | |||
Intangible Assets [Line Items] | |||
Amortized Intangible Assets: | [1] | 75 | 75 |
Accumulated Amortization | [1] | 31 | 25 |
Net Carrying Amount | [1] | 44 | 50 |
Management agreements | |||
Intangible Assets [Line Items] | |||
Amortized Intangible Assets: | [2] | 52 | 53 |
Accumulated Amortization | [2] | 34 | 31 |
Net Carrying Amount | [2] | 18 | 22 |
Trademarks | |||
Intangible Assets [Line Items] | |||
Amortized Intangible Assets: | [3] | 8 | 8 |
Accumulated Amortization | [3] | 5 | 5 |
Net Carrying Amount | [3] | 3 | 3 |
Other | |||
Intangible Assets [Line Items] | |||
Amortized Intangible Assets: | [4] | 8 | 9 |
Accumulated Amortization | [4] | 0 | 0 |
Net Carrying Amount | [4] | $ 8 | 9 |
Minimum | Customer lists | |||
Intangible Assets [Line Items] | |||
Finite-Lived Intangible Asset, Useful Life | 4 years | ||
Minimum | Management agreements | |||
Intangible Assets [Line Items] | |||
Finite-Lived Intangible Asset, Useful Life | 10 years | ||
Minimum | Trademarks | |||
Intangible Assets [Line Items] | |||
Finite-Lived Intangible Asset, Useful Life | 7 years | ||
Minimum | Customer Lists And Business Contracts [Member] | |||
Intangible Assets [Line Items] | |||
Finite-Lived Intangible Asset, Useful Life | 10 years | ||
Maximum | Customer lists | |||
Intangible Assets [Line Items] | |||
Finite-Lived Intangible Asset, Useful Life | 15 years | ||
Maximum | Management agreements | |||
Intangible Assets [Line Items] | |||
Finite-Lived Intangible Asset, Useful Life | 25 years | ||
Maximum | Trademarks | |||
Intangible Assets [Line Items] | |||
Finite-Lived Intangible Asset, Useful Life | 8 years | ||
Maximum | Customer Lists And Business Contracts [Member] | |||
Intangible Assets [Line Items] | |||
Finite-Lived Intangible Asset, Useful Life | 69 years | ||
Weighted Average [Member] | Customer lists | |||
Intangible Assets [Line Items] | |||
Finite-Lived Intangible Asset, Useful Life | 12 years | ||
Weighted Average [Member] | Management agreements | |||
Intangible Assets [Line Items] | |||
Finite-Lived Intangible Asset, Useful Life | 17 years | ||
Weighted Average [Member] | Trademarks | |||
Intangible Assets [Line Items] | |||
Finite-Lived Intangible Asset, Useful Life | 7 years | ||
Weighted Average [Member] | Customer Lists And Business Contracts [Member] | |||
Intangible Assets [Line Items] | |||
Finite-Lived Intangible Asset, Useful Life | 57 years | ||
Trademarks | |||
Intangible Assets [Line Items] | |||
Unamortizable trademarks | [5] | $ 146 | $ 47 |
[1] | Amortized between 4 to 15 years with a weighted average life of 12 years. | ||
[2] | Amortized between 10 to 25 years with a weighted average life of 17 years | ||
[3] | Amortized between 7 to 8 years with a weighted average life of 7 years. | ||
[4] | Includes business contracts, which are amortized between 10 to 69 years with a weighted average life of 57 years. | ||
[5] | Comprised of trademarks that the Company has acquired that 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) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Goodwill [Line Items] | |||||||
Goodwill, Impairment Loss | $ 0 | $ 0 | $ 0 | ||||
Goodwill [Roll Forward] | |||||||
Goodwill, Beginning Balance | 964 | ||||||
Foreign Exchange | (3) | ||||||
Goodwill, Ending Balance | $ 964 | 961 | 964 | ||||
Travel and Membership | |||||||
Goodwill [Roll Forward] | |||||||
Goodwill, Beginning Balance | 937 | ||||||
Foreign Exchange | (3) | ||||||
Goodwill, Ending Balance | 937 | 934 | 937 | ||||
Travel and Membership | Alliance Reservations Network | |||||||
Goodwill [Line Items] | |||||||
Goodwill, Impairment Loss | 0 | $ 0 | $ 0 | $ 0 | 0 | ||
Vacation Ownership | |||||||
Goodwill [Roll Forward] | |||||||
Goodwill, Beginning Balance | 27 | ||||||
Foreign Exchange | 0 | ||||||
Goodwill, Ending Balance | $ 27 | $ 27 | $ 27 |
Intangible Assets (Amortization
Intangible Assets (Amortization Expense Related To Intangible Assets By Major Class) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Amortization Expense | $ 9 | $ 10 | $ 9 |
Customer lists | |||
Amortization Expense | 6 | 6 | 6 |
Management agreements | |||
Amortization Expense | 3 | 3 | 3 |
Other | |||
Amortization Expense | $ 0 | $ 1 | $ 0 |
Intangible Assets (Intangible A
Intangible Assets (Intangible Assets Future Amortization Expenses) (Details) $ in Millions | Dec. 31, 2021USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2022 | $ 10 |
2023 | 10 |
2024 | 9 |
2025 | 9 |
2026 | $ 9 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Provision [Line Items] | |||
Compensation deduction limitation | $ 1 | ||
Federal statutory rate | 21.00% | 21.00% | 21.00% |
Unrecognized benefits that would effect rate | $ 22 | $ 22 | $ 24 |
Income tax payments, net of refunds | 110 | 50 | 89 |
Accrued expenses and other liabilities | |||
Income Tax Provision [Line Items] | |||
Liability for potential penalties | 4 | 4 | 4 |
Liability for interest | 11 | 10 | 9 |
Provision/(benefit) for income taxes | |||
Income Tax Provision [Line Items] | |||
Potential accrued penalties | 1 | 1 | 2 |
Personnel-Related | COVID-19 Plan [Member] | COVID-19 related costs | COVID-19 (Member) | |||
Income Tax Provision [Line Items] | |||
Employee Retention Credits | 2 | 26 | |
Foreign Country | |||
Income Tax Provision [Line Items] | |||
Operating Loss Carryforwards | 14 | ||
Tax credit | 77 | ||
State and Local Jurisdiction | |||
Income Tax Provision [Line Items] | |||
Operating Loss Carryforwards | 17 | ||
Maximum | |||
Income Tax Provision [Line Items] | |||
Unrecognized benefits that would effect rate | $ 2 | ||
Discontinued Operations | |||
Income Tax Provision [Line Items] | |||
Income tax payments, net of refunds | $ 8 | $ 39 |
Income Taxes (Income Tax Provis
Income Taxes (Income Tax Provision) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |||
Current, Federal | $ 111 | $ 42 | $ 74 |
Current, State | 27 | 12 | 9 |
Current, Foreign | 17 | 11 | 29 |
Current income tax provision | 155 | 65 | 112 |
Deferred, Federal | (38) | (82) | 57 |
Deferred, State | (2) | (3) | 17 |
Deferred, Foreign | 1 | (3) | 5 |
Deferred income tax provision/(benefit) | (39) | (88) | 79 |
Income Tax Expense (Benefit), Total | $ 116 | $ (23) | $ 191 |
Income Taxes (Pre-Tax Income_(L
Income Taxes (Pre-Tax Income/(Loss) For Domestic And Foreign Operations) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |||
Domestic | $ 314 | $ (326) | $ 452 |
Foreign | 115 | 50 | 228 |
Income/(loss) before income taxes | $ 429 | $ (276) | $ 680 |
Income Taxes (Deferred Income T
Income Taxes (Deferred Income Tax Assets and Liabilities) (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 | |
Deferred Taxes [Line Items] | |||
Provision for doubtful accounts and loan loss allowance for vacation ownership contract receivables | $ 180 | $ 227 | |
Foreign tax credit carryforward | 77 | 75 | |
Accrued liabilities and deferred income | 76 | 80 | |
Other comprehensive income | 73 | 69 | |
Net operating loss carryforward | 33 | 37 | |
Tax basis differences in assets of foreign subsidiaries | 11 | 12 | |
Other | 89 | 92 | |
Valuation Allowance | [1] | (156) | (153) |
Deferred income tax assets | 383 | 439 | |
Installment sales of vacation ownership interests | 700 | 780 | |
Depreciation and amortization | 227 | 228 | |
Other comprehensive income | 53 | 49 | |
Estimated VOI recoveries | 46 | 60 | |
Other | 18 | 20 | |
Deferred income tax liabilities | 1,044 | 1,137 | |
Net deferred income tax liabilities | 661 | 698 | |
Foreign Tax Credits | 56 | 50 | |
Net Operating Loss Carryforwards | 21 | 22 | |
Other Deferred Tax Assets | 79 | 81 | |
Other assets | |||
Deferred Taxes [Line Items] | |||
Net deferred income tax liabilities | 25 | 27 | |
Deferred tax liabilities [Member] | |||
Deferred Taxes [Line Items] | |||
Net deferred income tax liabilities | $ 686 | $ 725 | |
[1] | The valuation allowance of $156 million at December 31, 2021, relates to foreign tax credits, net operating loss carryforwards, and certain deferred tax assets of $56 million, $21 million, and $79 million. The valuation allowance of $153 million at December 31, 2020, relates to foreign tax credits, net operating loss carryforwards, and certain deferred tax assets of $50 million, $22 million, and $81 million. The valuation allowance will be reduced when and if the Company determines it is more likely than not that the related deferred income tax assets will be realized. |
Income Taxes (Difference of Eff
Income Taxes (Difference of Effective Income Tax Rate From US Federal Statutor Rate) (Details) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |||
Federal statutory rate | 21.00% | 21.00% | 21.00% |
State and local income taxes, net of federal tax benefits | 4.50% | (0.90%) | 6.80% |
Taxes on foreign operations at rates different than U.S. federal statutory rates | (3.20%) | (0.90%) | 1.40% |
Taxes on foreign income, net of tax credits | 3.50% | 0.20% | 0.40% |
Valuation allowance | 1.80% | (7.10%) | (2.40%) |
Installment sale interest | 1.30% | (0.80%) | 0.50% |
Other | (1.90%) | (3.20%) | 0.40% |
Effective Income Tax Rate | 27.00% | 8.30% | 28.10% |
Income Taxes (Summary of Activi
Income Taxes (Summary of Activities Related to Unrecognized Tax Benefits) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Beginning balance | $ 26 | $ 29 | $ 28 |
Increases related to tax positions taken during a prior period | 2 | 0 | 1 |
Increases related to tax positions taken during the current period | 2 | 2 | 4 |
Decreases related to settlements with taxing authorities | 0 | 0 | (1) |
Decreases related to tax positions taken during a prior period | 0 | (2) | (1) |
Decreases as a result of a lapse of the applicable statute of limitations | (3) | (3) | (2) |
Ending balance | $ 27 | $ 26 | $ 29 |
Vacation Ownership Contract R_3
Vacation Ownership Contract Receivables (Current And Long-Term Vacation Ownership Contract Receivables) (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Accounts, Notes, Loans and Financing Receivables [Line Items] | |||||
Vacation ownership contract receivables, gross | [1] | $ 2,819 | $ 3,175 | ||
Financing Receivable, Allowance for Credit Loss | 510 | 693 | $ 747 | $ 734 | |
Vacation ownership contract receivables, net (VIE - $2,061 as of 2021 and $2,458 as of 2020) | 2,309 | 2,482 | |||
Securitized | |||||
Accounts, Notes, Loans and Financing Receivables [Line Items] | |||||
Vacation ownership contract receivables, gross | [2] | 2,061 | 2,458 | ||
Securitized | Trade Receivables, net | |||||
Accounts, Notes, Loans and Financing Receivables [Line Items] | |||||
Interest Receivables | 17 | 23 | |||
Non Securitized Receivable | |||||
Accounts, Notes, Loans and Financing Receivables [Line Items] | |||||
Vacation ownership contract receivables, gross | [3] | 758 | 717 | ||
Non Securitized Receivable | Trade Receivables, net | |||||
Accounts, Notes, Loans and Financing Receivables [Line Items] | |||||
Interest Receivables | $ 5 | $ 9 | |||
[1] | Includes contracts under temporary deferment (up to 180 days). As of December 31, 2021 and 2020, contracts under deferment total $7 million and $37 million. | ||||
[2] | Excludes $17 million and $23 million of accrued interest on VOCRs as of December 31, 2021 and 2020, which are included in Trade receivables, net on the Consolidated Balance Sheets. | ||||
[3] | Excludes $5 million and $9 million of accrued interest on VOCRs as of December 31, 2021 and 2020, which are included in Trade receivables, net on the Consolidated Balance Sheets. |
Vacation Ownership Contract R_4
Vacation Ownership Contract Receivables (Principal Payments Due On Vacation Ownership Contract Receivables) (Details) $ in Millions | Dec. 31, 2021USD ($) |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
2022 | $ 287 |
2023 | 310 |
2024 | 328 |
2025 | 346 |
2026 | 327 |
Thereafter | 1,221 |
Contract receivable total | 2,819 |
Securitized Receivable | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
2022 | 219 |
2023 | 233 |
2024 | 245 |
2025 | 258 |
2026 | 249 |
Thereafter | 857 |
Contract receivable total | 2,061 |
Non Securitized Receivable | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
2022 | 68 |
2023 | 77 |
2024 | 83 |
2025 | 88 |
2026 | 78 |
Thereafter | 364 |
Contract receivable total | $ 758 |
Vacation Ownership Contract R_5
Vacation Ownership Contract Receivables (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | 21 Months Ended | ||||
Dec. 31, 2020 | Mar. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2021 | Dec. 31, 2018 | |
Loans and Leases Receivable Disclosure [Line Items] | |||||||
Interest income on securitized receivables | $ 304 | $ 391 | $ 405 | ||||
Originated vacation ownership contract receivables | 780 | 481 | 1,500 | ||||
Vacation ownership contract principal collections | $ 815 | $ 718 | $ 937 | ||||
Contract Receivable Weighted Average Interest Rate | 14.40% | 14.50% | 14.40% | 14.40% | 14.50% | ||
Provision for Loan, Lease, and Other Losses | $ 129 | $ 415 | $ 479 | ||||
Provision for loan losses | 129 | 415 | 479 | ||||
Financing Receivable, Allowance for Credit Loss | $ 693 | $ 510 | 693 | $ 747 | $ 510 | $ 734 | |
Minimum days which Company ceases to accrue interest on VOI contract receivables | 90 days | ||||||
VOI contract receivable written off as credit loss | 120 days | ||||||
COVID-19 (Member) | |||||||
Loans and Leases Receivable Disclosure [Line Items] | |||||||
Financing Receivable, Allowance for Credit Loss | $ 0 | 0 | |||||
Vacation Ownership Interest Sales [Member] | COVID-19 (Member) | |||||||
Loans and Leases Receivable Disclosure [Line Items] | |||||||
Provision for loan losses | (20) | $ 225 | (91) | 205 | $ (111) | ||
Cost of vacation ownership interest [Member] | COVID-19 (Member) | |||||||
Loans and Leases Receivable Disclosure [Line Items] | |||||||
Estimated Inventory recoveries during the period | $ (7) | $ 55 | $ (33) | $ (48) |
Vacation Ownership Contract R_6
Vacation Ownership Contract Receivables (Allowance For Loan Losses On Vacation Ownership Contract Receivables) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Vacation Ownership Contract Receivables [Abstract] | |||
Financing Receivable, Allowance for Credit Loss, Beginning Balance | $ 693 | $ 747 | $ 734 |
Provision for Loan, Lease, and Other Losses | 129 | 415 | 479 |
Contract receivables write-offs, net | 312 | 469 | 466 |
Financing Receivable, Allowance for Credit Loss, Ending Balance | $ 510 | $ 693 | $ 747 |
Vacation Ownership Contract R_7
Vacation Ownership Contract Receivables (Summary Of The Aged Analysis Of Financing Receivables Using The Most Recently Updated FICO Scores) (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 | |
Financing Receivables, Recorded Investment [Line Items] | |||
Vacation ownership contract receivables, gross | [1] | $ 2,819 | $ 3,175 |
Financing Receivable, Contract Under Temporary Deferment | 7 | 37 | |
FICO Score, Greater than 700 [Member] | |||
Financing Receivables, Recorded Investment [Line Items] | |||
Vacation ownership contract receivables, gross | [1] | 1,665 | 1,751 |
FICO Score, 600 to 699 [Member] | |||
Financing Receivables, Recorded Investment [Line Items] | |||
Vacation ownership contract receivables, gross | [1] | 782 | 894 |
Fico Scores Less Than 600 [Member] | |||
Financing Receivables, Recorded Investment [Line Items] | |||
Vacation ownership contract receivables, gross | [1] | 124 | 199 |
No Score [Member] | |||
Financing Receivables, Recorded Investment [Line Items] | |||
Vacation ownership contract receivables, gross | [1] | 77 | 106 |
Asia Pacific [Member] | |||
Financing Receivables, Recorded Investment [Line Items] | |||
Vacation ownership contract receivables, gross | [1] | 171 | 225 |
Current [Member] | |||
Financing Receivables, Recorded Investment [Line Items] | |||
Vacation ownership contract receivables, gross | 2,703 | 3,018 | |
Current [Member] | FICO Score, Greater than 700 [Member] | |||
Financing Receivables, Recorded Investment [Line Items] | |||
Vacation ownership contract receivables, gross | 1,630 | 1,706 | |
Current [Member] | FICO Score, 600 to 699 [Member] | |||
Financing Receivables, Recorded Investment [Line Items] | |||
Vacation ownership contract receivables, gross | 734 | 835 | |
Current [Member] | Fico Scores Less Than 600 [Member] | |||
Financing Receivables, Recorded Investment [Line Items] | |||
Vacation ownership contract receivables, gross | 98 | 160 | |
Current [Member] | No Score [Member] | |||
Financing Receivables, Recorded Investment [Line Items] | |||
Vacation ownership contract receivables, gross | 72 | 96 | |
Current [Member] | Asia Pacific [Member] | |||
Financing Receivables, Recorded Investment [Line Items] | |||
Vacation ownership contract receivables, gross | 169 | 221 | |
31 - 60 Days [Member] | |||
Financing Receivables, Recorded Investment [Line Items] | |||
Vacation ownership contract receivables, gross | 55 | 64 | |
31 - 60 Days [Member] | FICO Score, Greater than 700 [Member] | |||
Financing Receivables, Recorded Investment [Line Items] | |||
Vacation ownership contract receivables, gross | 17 | 20 | |
31 - 60 Days [Member] | FICO Score, 600 to 699 [Member] | |||
Financing Receivables, Recorded Investment [Line Items] | |||
Vacation ownership contract receivables, gross | 24 | 25 | |
31 - 60 Days [Member] | Fico Scores Less Than 600 [Member] | |||
Financing Receivables, Recorded Investment [Line Items] | |||
Vacation ownership contract receivables, gross | 10 | 13 | |
31 - 60 Days [Member] | No Score [Member] | |||
Financing Receivables, Recorded Investment [Line Items] | |||
Vacation ownership contract receivables, gross | 3 | 4 | |
31 - 60 Days [Member] | Asia Pacific [Member] | |||
Financing Receivables, Recorded Investment [Line Items] | |||
Vacation ownership contract receivables, gross | 1 | 2 | |
61 - 90 Days [Member | |||
Financing Receivables, Recorded Investment [Line Items] | |||
Vacation ownership contract receivables, gross | 29 | 47 | |
61 - 90 Days [Member | FICO Score, Greater than 700 [Member] | |||
Financing Receivables, Recorded Investment [Line Items] | |||
Vacation ownership contract receivables, gross | 9 | 13 | |
61 - 90 Days [Member | FICO Score, 600 to 699 [Member] | |||
Financing Receivables, Recorded Investment [Line Items] | |||
Vacation ownership contract receivables, gross | 12 | 18 | |
61 - 90 Days [Member | Fico Scores Less Than 600 [Member] | |||
Financing Receivables, Recorded Investment [Line Items] | |||
Vacation ownership contract receivables, gross | 7 | 12 | |
61 - 90 Days [Member | No Score [Member] | |||
Financing Receivables, Recorded Investment [Line Items] | |||
Vacation ownership contract receivables, gross | 1 | 3 | |
61 - 90 Days [Member | Asia Pacific [Member] | |||
Financing Receivables, Recorded Investment [Line Items] | |||
Vacation ownership contract receivables, gross | 0 | 1 | |
91 - 120 Days [Member] | |||
Financing Receivables, Recorded Investment [Line Items] | |||
Vacation ownership contract receivables, gross | 32 | 46 | |
91 - 120 Days [Member] | FICO Score, Greater than 700 [Member] | |||
Financing Receivables, Recorded Investment [Line Items] | |||
Vacation ownership contract receivables, gross | 9 | 12 | |
91 - 120 Days [Member] | FICO Score, 600 to 699 [Member] | |||
Financing Receivables, Recorded Investment [Line Items] | |||
Vacation ownership contract receivables, gross | 12 | 16 | |
91 - 120 Days [Member] | Fico Scores Less Than 600 [Member] | |||
Financing Receivables, Recorded Investment [Line Items] | |||
Vacation ownership contract receivables, gross | 9 | 14 | |
91 - 120 Days [Member] | No Score [Member] | |||
Financing Receivables, Recorded Investment [Line Items] | |||
Vacation ownership contract receivables, gross | 1 | 3 | |
91 - 120 Days [Member] | Asia Pacific [Member] | |||
Financing Receivables, Recorded Investment [Line Items] | |||
Vacation ownership contract receivables, gross | $ 1 | $ 1 | |
[1] | Includes contracts under temporary deferment (up to 180 days). As of December 31, 2021 and 2020, contracts under deferment total $7 million and $37 million. |
Vacation Ownership Contract R_8
Vacation Ownership Contract Receivables (Year of Origination) (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 | |
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Financing Receivable, Year One, Originated, Current Fiscal Year | $ 815 | $ 680 | |
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year | 390 | 909 | |
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year | 581 | 629 | |
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year | 414 | 404 | |
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year | 273 | 233 | |
Financing Receivable, Originated, More than Five Years before Current Fiscal Year | 346 | 320 | |
Non-securitized contract receivables | [1] | 2,819 | 3,175 |
FICO Score, Greater than 700 [Member] | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Financing Receivable, Year One, Originated, Current Fiscal Year | 534 | 424 | |
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year | 224 | 476 | |
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year | 324 | 339 | |
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year | 234 | 220 | |
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year | 157 | 128 | |
Financing Receivable, Originated, More than Five Years before Current Fiscal Year | 192 | 164 | |
Non-securitized contract receivables | [1] | 1,665 | 1,751 |
FICO Score, 600 to 699 [Member] | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Financing Receivable, Year One, Originated, Current Fiscal Year | 221 | 173 | |
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year | 105 | 269 | |
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year | 168 | 183 | |
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year | 117 | 115 | |
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year | 76 | 63 | |
Financing Receivable, Originated, More than Five Years before Current Fiscal Year | 95 | 91 | |
Non-securitized contract receivables | [1] | 782 | 894 |
Fico Scores Less Than 600 [Member] | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Financing Receivable, Year One, Originated, Current Fiscal Year | 11 | 11 | |
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year | 17 | 67 | |
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year | 37 | 50 | |
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year | 25 | 31 | |
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year | 15 | 16 | |
Financing Receivable, Originated, More than Five Years before Current Fiscal Year | 19 | 24 | |
Non-securitized contract receivables | [1] | 124 | 199 |
No Score [Member] | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Financing Receivable, Year One, Originated, Current Fiscal Year | 11 | 17 | |
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year | 6 | 27 | |
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year | 19 | 21 | |
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year | 14 | 16 | |
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year | 11 | 10 | |
Financing Receivable, Originated, More than Five Years before Current Fiscal Year | 16 | 15 | |
Non-securitized contract receivables | [1] | 77 | 106 |
Asia Pacific [Member] | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Financing Receivable, Year One, Originated, Current Fiscal Year | 38 | 55 | |
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year | 38 | 70 | |
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year | 33 | 36 | |
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year | 24 | 22 | |
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year | 14 | 16 | |
Financing Receivable, Originated, More than Five Years before Current Fiscal Year | 24 | 26 | |
Non-securitized contract receivables | [1] | $ 171 | $ 225 |
[1] | Includes contracts under temporary deferment (up to 180 days). As of December 31, 2021 and 2020, contracts under deferment total $7 million and $37 million. |
Inventory (Inventory) (Details)
Inventory (Inventory) (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Inventory [Line Items] | ||
Completed VOI inventory | $ 998 | $ 1,049 |
Estimated VOI recoveries | 187 | 246 |
VOI construction in process | 13 | 30 |
Inventory sold subject to repurchase | 13 | 13 |
Vacation exchange credits and other | 4 | 8 |
Land held for VOI development | 1 | 1 |
Inventory, Net | $ 1,216 | $ 1,347 |
Inventory (Narrative) (Details)
Inventory (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2013 | |
Inventory [Line Items] | ||||
VOI Inventory transferred to Property and Equipment | $ 75 | $ 30 | ||
Maximum potential future payments | 826 | |||
Inventory write-down | $ 0 | |||
COVID-19 (Member) | ||||
Inventory [Line Items] | ||||
Inventory write-down | 0 | 48 | ||
Operating Expense | COVID-19 (Member) | ||||
Inventory [Line Items] | ||||
Inventory write-down | $ 48 | |||
Las Vegas Inventory Sale | ||||
Inventory [Line Items] | ||||
Maximum potential future payments | $ 65 | |||
Vacation Ownership Inventory Sales [Member] | ||||
Inventory [Line Items] | ||||
Gain (Loss) on Disposition of Property Plant Equipment | $ 0 |
Inventory Activity Related to I
Inventory Activity Related to Inventory Obligations (Tables) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | ||
Inventory [Line Items] | |||
Total Inventory obligations, Beginning Balance | $ 83 | $ 49 | |
Purchases from Third Party Developer | 99 | 228 | |
Payments to third-party developer | (168) | (194) | |
Total Inventory obligations, Ending Balance | 14 | 83 | |
Las Vegas Inventory Sale | |||
Inventory [Line Items] | |||
Inventory Sold Under Agreement to Repurchase, Repurchase Liability, Beginning Balance | [1] | 13 | 43 |
Purchases from Third Party Developer | [1] | 2 | 36 |
Payments to third-party developer | [1] | (2) | (66) |
Inventory Sold Under Agreement to Repurchase, Repurchase Liability, Ending Balance | [1] | 13 | 13 |
Moab | |||
Inventory [Line Items] | |||
Inventory Sold Under Agreement to Repurchase, Repurchase Liability, Beginning Balance | [1] | 31 | 0 |
Purchases from Third Party Developer | [1] | 25 | 41 |
Payments to third-party developer | [1] | (56) | (10) |
Inventory Sold Under Agreement to Repurchase, Repurchase Liability, Ending Balance | [1] | 0 | 31 |
Orlando | |||
Inventory [Line Items] | |||
Inventory Sold Under Agreement to Repurchase, Repurchase Liability, Beginning Balance | [1] | 22 | 0 |
Purchases from Third Party Developer | [1] | 2 | 44 |
Payments to third-party developer | [1] | (24) | (22) |
Inventory Sold Under Agreement to Repurchase, Repurchase Liability, Ending Balance | [1] | 0 | 22 |
Other Inventory Sales [Member] | |||
Inventory [Line Items] | |||
Other inventory obligations, Beginning Balance | [2] | 17 | 6 |
Purchases from Third Party Developer | [2] | 70 | 107 |
Payments to third-party developer | [2] | (86) | (96) |
Other inventory obligations, Ending Balance | [2] | $ 1 | $ 17 |
[1] | Included in Accrued expenses and other liabilities on the Consolidated Balance Sheets. | ||
[2] | Included in Accounts payable on the Consolidated Balance Sheets. |
Property And Equipment, Net (Sc
Property And Equipment, Net (Schedule Of Property And Equipment) (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Property, Plant and Equipment [Line Items] | ||
Property, Plant, and Equipment and Finance Lease Right-of-Use Asset, before Accumulated Depreciation and Amortization | $ 1,632 | $ 1,548 |
Less: Accumulated depreciation and amortization | 943 | 882 |
Property and equipment, net | 689 | 666 |
Capitalized software | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 707 | 694 |
Building and leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 653 | 591 |
Furniture, fixtures and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 204 | 207 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 30 | 30 |
Finance leases | ||
Property, Plant and Equipment [Line Items] | ||
Finance Lease, Right-of-Use Asset, before Accumulated Amortization | 20 | 14 |
Construction in progress | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 18 | $ 12 |
Property And Equipment, Net (Na
Property And Equipment, Net (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Property, Plant and Equipment [Line Items] | |||
Depreciation and amortization | $ 124 | $ 126 | $ 121 |
Accrued Liabilities | |||
Property, Plant and Equipment [Line Items] | |||
Construction in Progress, Gross | 1 | 3 | |
Property and equipment, net | |||
Property, Plant and Equipment [Line Items] | |||
Depreciation and amortization | $ 115 | $ 117 | $ 113 |
Leases Narrative (Details)
Leases Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |||||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||||
Restructuring | $ (1) | $ 39 | $ 9 | |||
Asset impairments/(recovery) | (5) | [1] | 52 | 27 | [1] | |
Restructuring Plan 2020 | ||||||
Restructuring | 37 | |||||
Facility-Related | ||||||
Restructuring | 0 | 24 | ||||
COVID-19 (Member) | ||||||
Asset impairments/(recovery) | [1] | 57 | ||||
Travel and Membership | COVID-19 (Member) | Restructuring Plan 2020 | ||||||
Operating Lease, Impairment Loss | 24 | |||||
Travel and Membership | COVID-19 (Member) | Facility-Related | Restructuring Plan 2020 | ||||||
Restructuring | 22 | |||||
Vacation Ownership | COVID-19 (Member) | Restructuring Plan 2020 | ||||||
Restructuring | 1 | |||||
Vacation Ownership | COVID-19 (Member) | Facility-Related | Restructuring Plan 2020 | ||||||
Restructuring | 2 | |||||
Corporate and Other | COVID-19 (Member) | Facility-Related | Restructuring Plan 2020 | ||||||
Restructuring | 1 | |||||
Asset impairments/(recovery) [Member] | COVID-19 (Member) | ||||||
Asset impairments/(recovery) | 51 | |||||
Asset impairments/(recovery) [Member] | Travel and Membership | COVID-19 (Member) | ||||||
Operating Lease, Impairment Loss | 24 | |||||
Asset impairments/(recovery) [Member] | Vacation Ownership | ||||||
Asset impairments/(recovery) | 1 | 1 | ||||
Asset impairments/(recovery) [Member] | Vacation Ownership | COVID-19 (Member) | ||||||
Operating Lease, Impairment Loss | 5 | |||||
Asset impairments/(recovery) | 0 | 10 | ||||
Asset impairments/(recovery) [Member] | Corporate and Other | COVID-19 (Member) | ||||||
Asset impairments/(recovery) | $ 0 | $ 1 | ||||
Minimum | ||||||
Lessee, Operating Lease, Remaining Lease Term | 1 year | |||||
Maximum | ||||||
Lessee, Operating Lease, Remaining Lease Term | 20 years | |||||
Option to extend leases | 10 years | |||||
Termination period | 1 year | |||||
New Jersey [Domain] | ||||||
Asset impairments/(recovery) | 12 | |||||
Chicago, Illinois [Member] | ||||||
Asset impairments/(recovery) | 6 | |||||
Indemnification receivable | $ 9 | |||||
[1] | Includes $5 million of bad debt expense related to a note receivable for the year ended December 31, 2020, included in Operating expenses on the Consolidated Statements of Income/(Loss). |
Leases Lease Costs (Details)
Leases Lease Costs (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Leases [Abstract] | |||
Operating Lease, Cost | $ 22 | $ 30 | $ 37 |
Short-term lease cost | 13 | 14 | 23 |
Amortization of right-of-use assets | 4 | 3 | 2 |
Interest on lease liabilities | 0 | 0 | 0 |
Total finance lease cost | $ 4 | $ 3 | $ 2 |
Leases Lease Assets and Liabili
Leases Lease Assets and Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 | |
Operating Lease, Right-of-Use Assets | $ 79 | $ 92 | |
Operating Lease liabilities | [1] | 136 | $ 157 |
Finance Lease liabilities | $ 9 | ||
Operating Lease, Weighted Average Remaining Lease Term | 6 years 4 months 24 days | 7 years 1 month 6 days | |
Finance Lease, Weighted Average Remaining Lease Term | 2 years 7 months 6 days | 2 years 7 months 6 days | |
Operating Lease, Weighted Average Discount Rate, Percent | [2] | 5.80% | 5.90% |
Finance Lease, Weighted Average Discount Rate, Percent | 4.40% | 5.60% | |
Operating Lease, Liability, Statement of Financial Position [Extensible Enumeration] | Other Liabilities | Other Liabilities | |
Finance Leased Asset, Type [Extensible Enumeration] | Property and equipment, net | Property and equipment, net | |
Finance Lease, Liability, Statement of Financial Position [Extensible Enumeration] | Debt | Debt | |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Other assets | Other assets | |
Other assets | |||
Operating Lease, Right-of-Use Assets | $ 79 | $ 92 | |
Accrued expenses and other liabilities | |||
Operating Lease liabilities | 136 | 157 | |
Property and equipment, net | |||
Finance Lease assets | [3] | 10 | 8 |
Debt | |||
Finance Lease liabilities | $ 9 | $ 7 | |
[1] | See Note 13— Leases for details. | ||
[2] | Upon adoption of the lease standard, discount rates used for existing leases were established at January 1, 2019. | ||
[3] | Presented net of accumulated depreciation. |
Leases Cash Flow Presentation (
Leases Cash Flow Presentation (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Leases [Abstract] | |||
Operating cash flows from operating leases | $ 36 | $ 36 | $ 48 |
Operating cash flows from finance leases | 0 | 0 | 0 |
Financing cash flows from finance leases | 4 | 4 | 2 |
Right-of-Use Asset Obtained in Exchange for Operating Lease Liability | 7 | 3 | 8 |
Right-of-Use Asset Obtained in Exchange for Finance Lease Liability | $ 6 | $ 6 | $ 3 |
Leases Lease Maturities (Detail
Leases Lease Maturities (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 | |
Leases [Abstract] | |||
Lessee, Operating Lease, Liability, Payments, Due Year One | $ 32 | ||
Finance Lease, Liability, Payments, Due Year One | 5 | ||
Lessee, Operating Lease, Liability, Payments, Due Year Two | 30 | ||
Finance Lease, Liability, Payments, Due Year Two | 3 | ||
Lessee, Operating Lease, Liability, Payments, Due Year Three | 28 | ||
Finance Lease, Liability, Payments, Due Year Three | 2 | ||
Lessee, Operating Lease, Liability, Payments, Due Year Four | 24 | ||
Finance Lease, Liability, Payments, Due Year Four | 0 | ||
Lessee, Operating Lease, Liability, Payments, Due Year Five | 14 | ||
Finance Lease, Liability, Payments, Due Year Five | 0 | ||
Lessee, Operating Lease, Liability, Payments, Due after Year Five | 35 | ||
Finance Lease, Liability, Payments, Due after Year Five | 0 | ||
Lessee, Operating Lease, Liability, Payments, Due | 163 | ||
Finance Lease, Liability, Payment, Due | 10 | ||
Operating lease, Future Minimum Payments, Interest Included in Payments | (27) | ||
Finance Leases, Future Minimum Payments, Interest Included in Payments | (1) | ||
Operating Lease liabilities | [1] | 136 | $ 157 |
Finance leases | $ 9 | ||
[1] | See Note 13— Leases for details. |
Other Assets (Details)
Other Assets (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Other Assets [Abstract] | ||
Deferred costs | $ 81 | $ 90 |
Right-of-Use Assets | 79 | 92 |
Non-trade receivables, net | 57 | 77 |
Marketable securities | 27 | 9 |
Deferred tax asset | 25 | 27 |
Investments | 21 | 26 |
Deposits | 19 | 20 |
Tax receivables | 5 | 20 |
Other | 25 | 26 |
Other assets | $ 339 | $ 387 |
Accrued Expenses and Other Li_3
Accrued Expenses and Other Liabilities (Schedule of Accrued Expenses And Other Current Liabilities) (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |||
Accrued expenses and other liabilities [Line Items] | |||||||
Accrued payroll and related costs | $ 209 | $ 166 | |||||
Lease liability | [1] | 136 | 157 | ||||
Accrued taxes | 106 | 73 | |||||
Guarantees | 67 | 67 | |||||
Resort related obligations | 54 | 39 | |||||
Accrued interest | 53 | 65 | |||||
Deferred consideration | 52 | 21 | |||||
Payables associated with separation and sale of business activities | 39 | 39 | |||||
Accrued advertising and marketing | 34 | 61 | |||||
Accrued VOI maintenance fees | 29 | 24 | |||||
Restructuring liabilities | 22 | [2] | 26 | [2] | $ 7 | $ 12 | |
Accrued legal and professional fees | 21 | 20 | |||||
Accrued legal settlements | 19 | 13 | |||||
Inventory sale obligation | [3] | 13 | 66 | ||||
Customer advances | 10 | 10 | |||||
Accrued separation costs | 0 | 7 | |||||
Accrued other | 74 | 69 | |||||
Accrued expenses and other liabilities | 939 | 929 | |||||
COVID-19 Plan [Member] | |||||||
Accrued expenses and other liabilities [Line Items] | |||||||
Restructuring liabilities | [4] | $ 1 | $ 6 | ||||
[1] | See Note 13— Leases for details. | ||||||
[2] | See Note 28— Restructuring for details. | ||||||
[3] | See Note 11— Inventory for details. | ||||||
[4] | See Note 26— COVID-19 Related Items for details. |
Debt (Summary Of Indebtedness-L
Debt (Summary Of Indebtedness-Long-Term Debt) (Details) $ in Millions, $ in Millions, $ in Millions | 12 Months Ended | ||||||||
Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2021NZD ($) | Dec. 31, 2021AUD ($) | Nov. 18, 2021USD ($) | Apr. 27, 2021NZD ($) | Apr. 27, 2021AUD ($) | |||
Debt Instrument [Line Items] | |||||||||
Finance leases | $ 9 | ||||||||
Total long-term debt | 5,313 | ||||||||
USD bank conduit facility (due August 2021) | Revolving Credit Facility | |||||||||
Debt Instrument [Line Items] | |||||||||
Credit facility maximum borrowing capacity | $ 800 | ||||||||
5.625% Secured Notes (Due March 2021) | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instruments, stated interest percentage | 5.625% | 5.625% | 5.625% | ||||||
5.65% Secured Notes (Due April 2024) | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instruments, stated interest percentage | 5.65% | 5.65% | 5.65% | ||||||
6.60% secured notes due October 2025 [Domain] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instruments, stated interest percentage | 6.60% | 6.60% | 6.60% | ||||||
6.625% Senior Secured Notes Due July 2026 [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instruments, stated interest percentage | 6.625% | 6.625% | 6.625% | ||||||
6.00% secured notes due April 2027 [Domain] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instruments, stated interest percentage | 6.00% | 6.00% | 6.00% | ||||||
4.50% Secured Notes (due Dec 2029) | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instruments, stated interest percentage | 4.50% | 4.50% | 4.50% | 4.50% | |||||
4.625% Secured notes due March 2030 [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instruments, stated interest percentage | 4.625% | 4.625% | 4.625% | ||||||
Secured Term Loan B | Term Loan B [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Long-term Debt, Weighted Average Interest Rate, over Time | 2.39% | 2.93% | |||||||
Term Notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Non-recourse vacation ownership debt (VIE) | [1],[2] | $ 1,893 | |||||||
Unamortized Debt Issuance Expense | $ 18 | 21 | |||||||
Term Notes | Term Notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Non-recourse vacation ownership debt (VIE) | [1],[2] | 1,614 | |||||||
Non-recourse bank conduit facility | |||||||||
Debt Instrument [Line Items] | |||||||||
Secured revolving credit facility | [3] | 320 | |||||||
Credit facility maximum borrowing capacity | [3] | 1,018 | |||||||
Debt instrument, face amount | 800 | ||||||||
Non-recourse bank conduit facility | USD bank conduit facility (due August 2021) | |||||||||
Debt Instrument [Line Items] | |||||||||
Non-recourse vacation ownership debt (VIE) | [1],[4] | 190 | 168 | ||||||
Debt instrument, face amount | 800 | ||||||||
Non-recourse bank conduit facility | AUD/NZD bank conduit facility (due September 2021) | |||||||||
Debt Instrument [Line Items] | |||||||||
Non-recourse vacation ownership debt (VIE) | [1],[5] | 130 | 173 | ||||||
Debt instrument, face amount | $ 48 | $ 250 | $ 48 | $ 255 | |||||
Non-recourse Vacation Ownership Debt | |||||||||
Debt Instrument [Line Items] | |||||||||
Non-recourse vacation ownership debt (VIE) | [1] | 1,934 | 2,234 | ||||||
Total long-term debt | 1,934 | ||||||||
Long-term vacation ownership contract receivables | 2,170 | 2,570 | |||||||
Revolving Credit Facility | Secured Revolving Credit Facility due Oct 2026 | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument, face amount | 1,000 | ||||||||
Revolving Credit Facility | Secured Revolving Credit Facility due Oct 2026 | Revolving Credit Facility | |||||||||
Debt Instrument [Line Items] | |||||||||
Secured revolving credit facility | [7],[8] | 0 | [6] | $ 547 | |||||
Credit facility maximum borrowing capacity | [6] | $ 1,000 | |||||||
Long-term Debt, Weighted Average Interest Rate, over Time | 3.19% | 3.02% | |||||||
Debt instrument, face amount | $ 1,000 | ||||||||
Long-term Debt | |||||||||
Debt Instrument [Line Items] | |||||||||
Total long-term debt | [7] | 3,379 | $ 4,184 | ||||||
Unamortized Debt Issuance Expense | 8 | 7 | |||||||
Debt Instrument, Unamortized Discount | 20 | 16 | |||||||
Long-term Debt | 5.625% Secured Notes (Due March 2021) | |||||||||
Debt Instrument [Line Items] | |||||||||
Senior notes | [7] | 0 | 250 | ||||||
Debt instrument, face amount | 250 | ||||||||
Long-term Debt | 4.25% Secured Notes (Due March 2022) | |||||||||
Debt Instrument [Line Items] | |||||||||
Senior notes | [7],[9] | 0 | 650 | ||||||
Debt instrument, face amount | 650 | ||||||||
Unamortized (gains)/losses from the settlement of a derivative | (1) | ||||||||
Long-term Debt | 3.90% Secured Notes (Due March 2023) | |||||||||
Debt Instrument [Line Items] | |||||||||
Senior notes | [7],[10] | 401 | 402 | ||||||
Debt instrument, face amount | 400 | ||||||||
Unamortized (gains)/losses from the settlement of a derivative | (2) | (3) | |||||||
Long-term Debt | 5.65% Secured Notes (Due April 2024) | |||||||||
Debt Instrument [Line Items] | |||||||||
Senior notes | [7] | 299 | 299 | ||||||
Debt instrument, face amount | 300 | ||||||||
Long-term Debt | 6.60% secured notes due October 2025 [Domain] | |||||||||
Debt Instrument [Line Items] | |||||||||
Senior notes | [7],[11] | 345 | 344 | ||||||
Debt instrument, face amount | 350 | ||||||||
Unamortized (gains)/losses from the settlement of a derivative | 4 | 5 | |||||||
Long-term Debt | 6.625% Senior Secured Notes Due July 2026 [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Senior notes | [7] | 643 | 641 | ||||||
Debt instrument, face amount | 650 | ||||||||
Long-term Debt | 6.00% secured notes due April 2027 [Domain] | |||||||||
Debt Instrument [Line Items] | |||||||||
Senior notes | [7],[12] | 407 | 408 | ||||||
Debt instrument, face amount | 400 | ||||||||
Unamortized (gains)/losses from the settlement of a derivative | (9) | (11) | |||||||
Long-term Debt | 4.50% Secured Notes (due Dec 2029) | |||||||||
Debt Instrument [Line Items] | |||||||||
Senior notes | [7] | 641 | 0 | ||||||
Debt instrument, face amount | 650 | $ 650 | |||||||
Long-term Debt | 4.625% Secured notes due March 2030 [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Senior notes | [7] | 346 | 345 | ||||||
Debt instrument, face amount | 350 | ||||||||
Long-term Debt | Finance Lease Obligations [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Finance leases | [7] | 9 | 7 | ||||||
Long-term Debt | Secured Term Loan B | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument, face amount | 300 | ||||||||
Long-term Debt | Secured Term Loan B | Term Loan B [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Secured Term Loan B | [7],[13] | $ 288 | $ 291 | ||||||
[1] | Represents non-recourse debt that is securitized through bankruptcy-remote special purpose entities (“SPEs”), the creditors of which have no recourse to the Company for principal and interest. These outstanding borrowings (which legally are not liabilities of the Company) are collateralized by $2.17 billion and $2.57 billion of underlying gross VOCRs and related assets (which legally are not assets of the Company) as of December 31, 2021 and 2020. | ||||||||
[2] | The carrying amounts of the term notes are net of debt issuance costs of $18 million and $21 million as of December 31, 2021 and 2020. | ||||||||
[3] | Consists of the Company’s USD bank conduit facility and AUD/NZD bank conduit facility. The capacity of these facilities is subject to the Company’s ability to provide additional assets to collateralize additional non-recourse borrowings. | ||||||||
[4] | The Company has a borrowing capacity of $800 million under the USD bank conduit facility through October 2022. Borrowings under this facility are required to be repaid as the collateralized receivables amortize but no later than November 2023. | ||||||||
[5] | The Company has a borrowing capacity of 250 million Australian dollars (“AUD”) and 48 million New Zealand dollars (“NZD”) under the AUD/NZD bank conduit facility through April 2023. Borrowings under this facility are required to be repaid no later than May 2025. | ||||||||
[6] | Consists of the Company’s $1.0 billion secured revolving credit facility. | ||||||||
[7] | The carrying amounts of the secured notes and term loan are net of unamortized discounts of $20 million and $16 million as of December 31, 2021 and 2020, and net of unamortized debt financing costs of $8 million and $7 million as of December 31, 2021 and 2020. | ||||||||
[8] | The weighted average effective interest rate on borrowings from this facility was 3.19% and 3.02% as of December 31, 2021 and 2020. In late March 2020, the Company drew down its $1.0 billion secured revolving credit facility as a precautionary measure due to COVID-19. As of December 31, 2021, these borrowings have been repaid. | ||||||||
[9] | Includes less than $1 million of unamortized gains from the settlement of a derivative as of December 31, 2020. | ||||||||
[10] | Includes $2 million and $3 million of unamortized gains from the settlement of a derivative as of December 31, 2021 and 2020. | ||||||||
[11] | Includes $4 million and $5 million of unamortized losses from the settlement of a derivative as of December 31, 2021 and 2020. | ||||||||
[12] | Includes $9 million and $11 million of unamortized gains from the settlement of a derivative as of December 31, 2021 and 2020. | ||||||||
[13] | The weighted average effective interest rate on borrowings from this facility was 2.39% and 2.93% as of December 31, 2021 and 2020. |
Debt (Summary Of Outstanding De
Debt (Summary Of Outstanding Debt Maturities) (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 | |
Debt Instrument [Line Items] | |||
Within 1 year | $ 431 | ||
Between 1 and 2 years | 641 | ||
Between 2 and 3 years | 504 | ||
Between 3 and 4 years | 826 | ||
Between 4 and 5 years | 857 | ||
Thereafter | 2,054 | ||
Total long-term debt | 5,313 | ||
Non-recourse Vacation Ownership Debt | |||
Debt Instrument [Line Items] | |||
Within 1 year | 424 | ||
Between 1 and 2 years | 234 | ||
Between 2 and 3 years | 201 | ||
Between 3 and 4 years | 201 | ||
Between 4 and 5 years | 214 | ||
Thereafter | 660 | ||
Total long-term debt | 1,934 | ||
Long-term Debt | |||
Debt Instrument [Line Items] | |||
Within 1 year | 7 | ||
Between 1 and 2 years | 407 | ||
Between 2 and 3 years | 303 | ||
Between 3 and 4 years | 625 | ||
Between 4 and 5 years | 643 | ||
Thereafter | 1,394 | ||
Total long-term debt | [1] | $ 3,379 | $ 4,184 |
[1] | The carrying amounts of the secured notes and term loan are net of unamortized discounts of $20 million and $16 million as of December 31, 2021 and 2020, and net of unamortized debt financing costs of $8 million and $7 million as of December 31, 2021 and 2020. |
Debt (Summary Of Available Capa
Debt (Summary Of Available Capacity Under Borrowing Arrangements) (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 | ||
Debt Instrument [Line Items] | ||||
Letters of Credit Outstanding, Amount | $ 36 | $ 127 | ||
Non-recourse bank conduit facility | ||||
Debt Instrument [Line Items] | ||||
Total capacity | [1] | 1,018 | ||
Long-term Line of Credit | [1] | 320 | ||
Letters of Credit Outstanding, Amount | [1] | 0 | ||
Available capacity | [1] | 698 | ||
Secured Revolving Credit Facility due Oct 2026 | Revolving Credit Facility | Revolving Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Total capacity | [2] | 1,000 | ||
Long-term Line of Credit | [3],[4] | 0 | [2] | 547 |
Letters of Credit Outstanding, Amount | 2 | [2] | $ 96 | |
Available capacity | [2] | $ 998 | ||
[1] | Consists of the Company’s USD bank conduit facility and AUD/NZD bank conduit facility. The capacity of these facilities is subject to the Company’s ability to provide additional assets to collateralize additional non-recourse borrowings. | |||
[2] | Consists of the Company’s $1.0 billion secured revolving credit facility. | |||
[3] | The carrying amounts of the secured notes and term loan are net of unamortized discounts of $20 million and $16 million as of December 31, 2021 and 2020, and net of unamortized debt financing costs of $8 million and $7 million as of December 31, 2021 and 2020. | |||
[4] | The weighted average effective interest rate on borrowings from this facility was 3.19% and 3.02% as of December 31, 2021 and 2020. In late March 2020, the Company drew down its $1.0 billion secured revolving credit facility as a precautionary measure due to COVID-19. As of December 31, 2021, these borrowings have been repaid. |
Debt (Non-recourse Vacation Own
Debt (Non-recourse Vacation Ownership Debt) (Narrative) (Details) $ in Millions, $ in Millions, $ in Millions | Dec. 31, 2021USD ($) | Dec. 31, 2021NZD ($) | Dec. 31, 2021AUD ($) | Oct. 26, 2021USD ($) | Apr. 27, 2021NZD ($) | Apr. 27, 2021AUD ($) | Mar. 08, 2021USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019 |
Debt Instrument [Line Items] | |||||||||
Debt | $ 5,313 | ||||||||
Non-recourse bank conduit facility | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument, face amount | $ 800 | ||||||||
Non-recourse Vacation Ownership Debt | |||||||||
Debt Instrument [Line Items] | |||||||||
Weighted average interest rate | 4.00% | 4.00% | 4.00% | 4.20% | 4.40% | ||||
Debt | $ 1,934 | ||||||||
Collateralized gross vacation ownership contract receivables and related assets | 2,170 | $ 2,570 | |||||||
Sierra Timeshare 2021-1 | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument, face amount | $ 500 | ||||||||
Weighted average coupon rate | 1.57% | ||||||||
Advance rate on securitized debt | 98.00% | ||||||||
Outstanding borrowings | 316 | ||||||||
Sierra Timeshare 2021-2 | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument, face amount | $ 350 | ||||||||
Weighted average coupon rate | 1.82% | ||||||||
Advance rate on securitized debt | 98.00% | ||||||||
Outstanding borrowings | 309 | ||||||||
Term Notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Outstanding borrowings | $ 989 | ||||||||
Weighted average interest rate | 3.90% | 3.90% | 3.90% | 4.50% | 4.50% | ||||
USD bank conduit facility (due August 2021) | Non-recourse bank conduit facility | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument, face amount | $ 800 | ||||||||
Outstanding borrowings | 190 | ||||||||
AUD/NZD bank conduit facility (due September 2021) | Non-recourse bank conduit facility | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument, face amount | $ 48 | $ 250 | $ 48 | $ 255 | |||||
Outstanding borrowings | $ 130 | ||||||||
Long-term Debt, Percentage Bearing Variable Interest, Percentage Rate | 1.65% | 1.65% | 1.65% |
Debt (Narrative) (Details)
Debt (Narrative) (Details) - USD ($) $ in Millions | Nov. 18, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2018 | |
Debt Instrument [Line Items] | |||||
Debt Instrument, Interest Rate, Increase (Decrease) | 1.50% | ||||
Deferred financing cost related to securitized debt | $ 10 | $ 11 | |||
Maximum | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Interest Rate, Increase (Decrease) | 0.50% | ||||
Base Rate | Maximum | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 1.25% | ||||
Base Rate | Minimum | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 0.75% | ||||
London Interbank Offered Rate (LIBOR) | Maximum | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 2.25% | ||||
London Interbank Offered Rate (LIBOR) | Minimum | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 1.75% | ||||
Bank of America, N.A. | Revolving credit facility & Term Loan B | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, face amount | $ 1,300 | ||||
Secured Term Loan B | Bank of America, N.A. | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, face amount | 300 | ||||
Weighted average interest rate | 2.25% | ||||
Secured Term Loan B | Bank of America, N.A. | Adjusted Base Rate [Member] | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 1.25% | ||||
Secured Term Loan B | Bank of America, N.A. | Adjusted LIBOR Rate | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 2.25% | ||||
Secured Term Loan B | Long-term Debt | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, face amount | $ 300 | ||||
Secured Revolving Credit Facility due Oct 2026 | Bank of America, N.A. | Revolving Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, face amount | $ 1,000 | ||||
Secured Revolving Credit Facility due Oct 2026 | Revolving Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, face amount | 1,000 | ||||
Secured Revolving Credit Facility due Oct 2026 | Revolving Credit Facility | Revolving Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, face amount | 1,000 | ||||
Line of Credit Facility, Maximum Borrowing Capacity | [1] | 1,000 | |||
4.25% Secured Notes (Due March 2022) | Long-term Debt | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, face amount | $ 650 | ||||
3.90% Secured Notes (Due March 2023) | Bank of America, N.A. | |||||
Debt Instrument [Line Items] | |||||
Debt instruments, stated interest percentage | 3.90% | ||||
3.90% Secured Notes (Due March 2023) | Long-term Debt | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, face amount | $ 400 | ||||
5.65% Secured Notes (Due April 2024) | |||||
Debt Instrument [Line Items] | |||||
Debt instruments, stated interest percentage | 5.65% | ||||
5.65% Secured Notes (Due April 2024) | Long-term Debt | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, face amount | $ 300 | ||||
6.60% secured notes due October 2025 [Domain] | |||||
Debt Instrument [Line Items] | |||||
Debt instruments, stated interest percentage | 6.60% | ||||
6.60% secured notes due October 2025 [Domain] | Long-term Debt | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, face amount | $ 350 | ||||
6.625% Senior Secured Notes Due July 2026 [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt instruments, stated interest percentage | 6.625% | ||||
Proceeds from Issuance of Debt | $ 643 | ||||
Debt Instrument, Unamortized Discount (Premium) and Debt Issuance Costs, Net | $ 9 | ||||
6.625% Senior Secured Notes Due July 2026 [Member] | Long-term Debt | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, face amount | $ 650 | ||||
6.00% secured notes due April 2027 [Domain] | |||||
Debt Instrument [Line Items] | |||||
Debt instruments, stated interest percentage | 6.00% | ||||
6.00% secured notes due April 2027 [Domain] | Long-term Debt | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, face amount | $ 400 | ||||
4.50% Secured Notes (due Dec 2029) | |||||
Debt Instrument [Line Items] | |||||
Debt instruments, stated interest percentage | 4.50% | 4.50% | |||
4.50% Secured Notes (due Dec 2029) | Long-term Debt | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, face amount | $ 650 | $ 650 | |||
4.625% Secured notes due March 2030 [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt instruments, stated interest percentage | 4.625% | ||||
4.625% Secured notes due March 2030 [Member] | Long-term Debt | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, face amount | $ 350 | ||||
Secured Notes | Long-term Debt | |||||
Debt Instrument [Line Items] | |||||
Secured Debt | $ 2,440 | ||||
[1] | Consists of the Company’s $1.0 billion secured revolving credit facility. |
Debt (Fair Value Hedges) (Narra
Debt (Fair Value Hedges) (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | |||||
Dec. 31, 2019 | Dec. 31, 2015 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2017 | Dec. 31, 2013 | |
6.00% secured notes due April 2027 [Domain] | ||||||
Debt Instrument [Line Items] | ||||||
Debt instruments, stated interest percentage | 6.00% | |||||
Interest Rate Swap | ||||||
Debt Instrument [Line Items] | ||||||
Derivative, Cash Received on Hedge | $ 13 | $ 17 | ||||
Deferred Gain (Loss) on Discontinuation of Interest Rate Fair Value Hedge | $ 2 | $ 4 | ||||
Interest Rate Swap | 6.00% secured notes due April 2027 [Domain] | ||||||
Debt Instrument [Line Items] | ||||||
Debt instruments, stated interest percentage | 6.00% | |||||
Debt instrument, face amount | $ 400 | |||||
Deferred Gain (Loss) on Discontinuation of Interest Rate Fair Value Hedge | $ 9 | $ 11 | ||||
Interest Rate Swap | 3.90% Secured Notes (Due March 2023) | ||||||
Debt Instrument [Line Items] | ||||||
Debt instruments, stated interest percentage | 3.90% | 3.90% | ||||
Derivative, notional amount | $ 400 | |||||
Interest Rate Swap | 4.25% Secured Notes (Due March 2022) | ||||||
Debt Instrument [Line Items] | ||||||
Debt instruments, stated interest percentage | 4.25% | 4.25% | ||||
Derivative, notional amount | $ 100 |
Debt Debt (Debt Covenants) (Nar
Debt Debt (Debt Covenants) (Narrative) (Details) $ / shares in Units, $ in Millions | Mar. 01, 2021 | Dec. 31, 2021 | Jun. 30, 2022 | Jul. 15, 2020USD ($)$ / shares |
Debt Instrument [Line Items] | ||||
Debt Instrument, Interest Rate, Increase (Decrease) | 1.50% | |||
Maximum | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Interest Rate, Increase (Decrease) | 0.50% | |||
Bank of America, N.A. | Revolving Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Minimum interest coverage ratio | 2.5 | |||
Maximum first lien leverage ratio | 4.25 | |||
Debt Instrument, Interest Rate, Increase (Decrease) | 0.25% | |||
Bank of America, N.A. | Revolving Credit Facility | First Amendment | ||||
Debt Instrument [Line Items] | ||||
Maximum first lien leverage ratio | 4.25 | |||
Bank of America, N.A. | Revolving Credit Facility | Second Amendment | ||||
Debt Instrument [Line Items] | ||||
Minimum interest coverage ratio | 2.5 | |||
Maximum first lien leverage ratio | 4.75 | |||
Bank of America, N.A. | Revolving Credit Facility | Subsequent Event | Second Amendment | ||||
Debt Instrument [Line Items] | ||||
Maximum first lien leverage ratio | 4.25 | |||
Bank of America, N.A. | Revolving Credit Facility | Maximum | Second Amendment | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Covenant, Leverage Ratio, Tier | 3.75 | |||
Bank of America, N.A. | Revolving Credit Facility | Relief Period [Member] | First Amendment | ||||
Debt Instrument [Line Items] | ||||
Minimum interest coverage ratio | 2 | |||
Debt instrument, Covenant, Liquidity base | $ | $ 250 | |||
Debt instrument, Covenant, Liquidity dividend spread | 50.00% | |||
Bank of America, N.A. | Revolving Credit Facility | Relief Period [Member] | Maximum | First Amendment | ||||
Debt Instrument [Line Items] | ||||
Dividends Payable, Amount Per Share | $ / shares | $ 0.50 | |||
Bank of America, N.A. | Credit Agreement | ||||
Debt Instrument [Line Items] | ||||
Interest coverage ratio | 4 | |||
First lien leverage ratio | 3.99 |
Debt (Interest Expense) (Narrat
Debt (Interest Expense) (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Debt Instrument [Line Items] | |||
Interest expense | $ 198 | $ 192 | $ 162 |
Capitalized interest | 1 | 1 | 3 |
Consumer financing interest | 81 | 101 | 106 |
Long-term Debt | |||
Debt Instrument [Line Items] | |||
Interest Paid, Including Capitalized Interest, Operating and Investing Activities | 207 | 163 | 158 |
Non-recourse Vacation Ownership Debt | |||
Debt Instrument [Line Items] | |||
Interest Paid, Including Capitalized Interest, Operating and Investing Activities | $ 56 | $ 74 | $ 81 |
Variable Interest Entities (Ass
Variable Interest Entities (Assets And Liabilities Of Vacation Ownership SPEs) (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Schedule Of Transfer And Financial Assets [Line Items] | ||||
Restricted cash (VIE - $84 as of 2021 and $92 as of 2020) | $ 128 | $ 121 | $ 147 | |
Other assets | 339 | 387 | ||
Total assets | 6,588 | 7,613 | ||
Total SPE liabilities | 7,382 | 8,581 | ||
Deferred financing cost related to securitized debt | 10 | 11 | ||
Variable Interest Entity, Primary Beneficiary | ||||
Schedule Of Transfer And Financial Assets [Line Items] | ||||
Restricted cash (VIE - $84 as of 2021 and $92 as of 2020) | 84 | 92 | ||
Vacation Ownership SPEs | ||||
Schedule Of Transfer And Financial Assets [Line Items] | ||||
Deferred financing cost related to securitized debt | 18 | 21 | ||
Vacation Ownership SPEs | Variable Interest Entity, Primary Beneficiary | ||||
Schedule Of Transfer And Financial Assets [Line Items] | ||||
Securitized contract receivables, gross | [1] | 2,061 | 2,458 | |
Restricted cash (VIE - $84 as of 2021 and $92 as of 2020) | [2] | 84 | 92 | |
Interest receivables on securitized contract receivables | [3] | 17 | 23 | |
Other assets | [4] | 4 | 5 | |
Total assets | 2,166 | 2,578 | ||
Other liabilities | [5] | 2 | 2 | |
Total SPE liabilities | 1,936 | 2,236 | ||
SPE assets in excess of SPE liabilities | 230 | 342 | ||
Term Notes | ||||
Schedule Of Transfer And Financial Assets [Line Items] | ||||
Non-recourse vacation ownership debt (VIE) | [6],[7] | 1,893 | ||
Term Notes | Vacation Ownership SPEs | Variable Interest Entity, Primary Beneficiary | ||||
Schedule Of Transfer And Financial Assets [Line Items] | ||||
Non-recourse vacation ownership debt (VIE) | [8],[9] | 1,614 | 1,893 | |
Non-recourse bank conduit facility | Vacation Ownership SPEs | Variable Interest Entity, Primary Beneficiary | ||||
Schedule Of Transfer And Financial Assets [Line Items] | ||||
Non-recourse vacation ownership debt (VIE) | [8] | $ 320 | $ 341 | |
[1] | Included in Vacation ownership contract receivables, net on the Consolidated Balance Sheets. | |||
[2] | Included in Restricted cash on the Consolidated Balance Sheets. | |||
[3] | Included in Trade receivables, net on the Consolidated Balance Sheets. | |||
[4] | Primarily includes deferred financing costs for the bank conduit facility and a security investment asset, which is included in Other assets on the Consolidated Balance Sheets. | |||
[5] | Primarily includes accrued interest on non-recourse debt, which is included in Accrued expenses and other liabilities on the Consolidated Balance Sheets. | |||
[6] | 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 $2.17 billion and $2.57 billion of underlying gross VOCRs and related assets (which legally are not assets of the Company) as of December 31, 2021 and 2020. | |||
[7] | The carrying amounts of the term notes are net of debt issuance costs of $18 million and $21 million as of December 31, 2021 and 2020. | |||
[8] | Included in Non-recourse vacation ownership debt on the Consolidated Balance Sheets. | |||
[9] | Includes deferred financing costs of $18 million and $21 million as of December 31, 2021 and 2020, related to non-recourse debt. |
Variable Interest Entities (Nar
Variable Interest Entities (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2017 | ||
Schedule Of Transfer And Financial Assets [Line Items] | ||||
Non-securitized contract receivables | [1] | $ 2,819 | $ 3,175 | |
Property and equipment, net | 689 | 666 | ||
Debt | 5,313 | |||
Non Securitized Receivable | ||||
Schedule Of Transfer And Financial Assets [Line Items] | ||||
Non-securitized contract receivables | [2] | 758 | 717 | |
Non Securitized Receivable | Variable Interest Entity, Primary Beneficiary | ||||
Schedule Of Transfer And Financial Assets [Line Items] | ||||
Non-securitized contract receivables | 758 | 717 | ||
Saint Thomas | Variable Interest Entity, Primary Beneficiary | ||||
Schedule Of Transfer And Financial Assets [Line Items] | ||||
Property and equipment, net | $ 64 | |||
Debt | 104 | |||
VOI Development | ||||
Schedule Of Transfer And Financial Assets [Line Items] | ||||
Property, Plant, And Equipment Write-down | $ 37 | |||
Saint Thomas, U.S. Virgin Island Inventory Sale | ||||
Schedule Of Transfer And Financial Assets [Line Items] | ||||
Conveyed PP&E | $ 0 | $ 0 | ||
[1] | Includes contracts under temporary deferment (up to 180 days). As of December 31, 2021 and 2020, contracts under deferment total $7 million and $37 million. | |||
[2] | Excludes $5 million and $9 million of accrued interest on VOCRs as of December 31, 2021 and 2020, which are included in Trade receivables, net on the Consolidated Balance Sheets. |
Variable Interest Entities (Sum
Variable Interest Entities (Summary Of Total Vacation Ownership Receivables And Other Securitized Assets, Net Of Securitized Liabilities And Allowance For Loan Losses) (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Non-securitized contract receivables | [1] | $ 2,819 | $ 3,175 |
Non Securitized Receivable | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Non-securitized contract receivables | [2] | 758 | 717 |
Variable Interest Entity, Primary Beneficiary | Non Securitized Receivable | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
SPE assets in excess of SPE liabilities | 230 | 342 | |
Non-securitized contract receivables | 758 | 717 | |
Less: Allowance for loan losses | 510 | 693 | |
Net Vacation Ownership receivables and other securitized assets, net of securitized liabilities and the allowance for loan losses | $ 478 | $ 366 | |
[1] | Includes contracts under temporary deferment (up to 180 days). As of December 31, 2021 and 2020, contracts under deferment total $7 million and $37 million. | ||
[2] | Excludes $5 million and $9 million of accrued interest on VOCRs as of December 31, 2021 and 2020, which are included in Trade receivables, net on the Consolidated Balance Sheets. |
Fair Value (Carrying Amounts An
Fair Value (Carrying Amounts And Estimated Fair Values Of Financial Instruments) (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Reported Value Measurement [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Receivables, Fair Value Disclosure | $ 2,309 | $ 2,482 |
Reported Value Measurement [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt Instrument, Fair Value Disclosure | 5,313 | 6,418 |
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Receivables, Fair Value Disclosure | 2,858 | 3,035 |
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt Instrument, Fair Value Disclosure | 5,514 | $ 6,705 |
Foreign Exchange Contracts | Fair Value, Recurring [Member] | Other assets | Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Asset | 1 | |
Foreign Exchange Contracts | Fair Value, Recurring [Member] | Accrued expenses and other liabilities | Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative contract liabilities | $ 1 |
Financial Instruments (Narrativ
Financial Instruments (Narrative) (Details) - numberOfInterestRateDerivatives | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Interest Rate Contract | |||
Derivatives, Fair Value [Line Items] | |||
Number of Interest Rate Derivatives Held | 0 | ||
CALIFORNIA | |||
Derivatives, Fair Value [Line Items] | |||
Percentage of vacation ownership contract receivables | 17.00% | ||
Percentage Of Net Revenues Generated From Transactions In Geographic Locations | 10.00% | 12.00% | 11.00% |
FLORIDA | |||
Derivatives, Fair Value [Line Items] | |||
Percentage Of vacation Ownership Interest Sales Revenue Generated From Geographic Sales Office | 15.00% | ||
Percentage Of Net Revenues Generated From Transactions In Geographic Locations | 15.00% | 18.00% | 19.00% |
NEVADA | |||
Derivatives, Fair Value [Line Items] | |||
Percentage Of vacation Ownership Interest Sales Revenue Generated From Geographic Sales Office | 15.00% | ||
Percentage Of Net Revenues Generated From Transactions In Geographic Locations | 10.00% | 6.00% | 9.00% |
Financial Instruments (Summary
Financial Instruments (Summary Of Gain Amounts Recognized In AOCI) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Designated Hedging Instruments | Foreign Exchange Contracts | |||
Derivative [Line Items] | |||
Unrealized Gain on Foreign Currency Derivatives, before Tax | $ 0 | $ 0 | $ 0 |
Financial Instruments (Summar_2
Financial Instruments (Summary Of Gain/(Loss) Recognized In Income) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||
Foreign Exchange Contracts | Non-Designated Hedging Instruments [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Gain/(loss) amounts recognized in income | [1] | $ 1 | $ 3 | $ 1 |
[1] | Included within Operating expenses on the Consolidated Statements of Income/(Loss), which is primarily offset by changes in the value of the underlying assets and liabilities. |
Commitments And Contingencies (
Commitments And Contingencies (Narrative) (Details) £ in Millions, $ in Millions | 12 Months Ended | |||||
Dec. 31, 2021USD ($)Surety_Providers | Dec. 31, 2021GBP (£) | Dec. 31, 2021USD ($) | Dec. 31, 2020GBP (£) | Dec. 31, 2020USD ($) | ||
Commitments And Contingencies [Line Items] | ||||||
Total future minimum lease obligations | $ 173 | |||||
Aggregate amount of purchase commitments | $ 826 | |||||
Letters of Credit Outstanding, Amount | 36 | $ 127 | ||||
Number of surety providers of assembled commitments | Surety_Providers | 12 | |||||
Assembled commitments, amount | 2,300 | |||||
Surety amounts outstanding | 292 | |||||
Litigation reserves | 19 | 13 | ||||
British Travel Association and Regulatory Authorities | ||||||
Commitments And Contingencies [Line Items] | ||||||
Secured bonding facility and perpetual guarantee | 46 | |||||
British Travel Association and Regulatory Authorities | Letter of Credit [Member] | Sale Of European Vacation Rental Business | Wyndham Hotels And Resorts, Inc. [Member] | ||||||
Commitments And Contingencies [Line Items] | ||||||
Secured bonding facility and perpetual guarantee | £ | £ 0 | £ 36 | ||||
British Travel Association and Regulatory Authorities | United States of America, Dollars | Letter of Credit [Member] | Sale Of European Vacation Rental Business | Wyndham Hotels And Resorts, Inc. [Member] | ||||||
Commitments And Contingencies [Line Items] | ||||||
Secured bonding facility and perpetual guarantee | 48 | |||||
Las Vegas Inventory Sale | ||||||
Commitments And Contingencies [Line Items] | ||||||
Aggregate amount of purchase commitments | $ 65 | |||||
Marketing | ||||||
Commitments And Contingencies [Line Items] | ||||||
Aggregate amount of purchase commitments | 656 | |||||
Vacation Ownership Properties | ||||||
Commitments And Contingencies [Line Items] | ||||||
Aggregate amount of purchase commitments | 61 | |||||
Information Technology | ||||||
Commitments And Contingencies [Line Items] | ||||||
Aggregate amount of purchase commitments | $ 45 | |||||
Revolving Credit Facility | Revolving Credit Facility | Secured Revolving Credit Facility due Oct 2026 | ||||||
Commitments And Contingencies [Line Items] | ||||||
Letters of Credit Outstanding, Amount | 2 | [1] | 96 | |||
Vacation Ownership [Member] | ||||||
Commitments And Contingencies [Line Items] | ||||||
Recognized Liability Associated With Guarantees | 0 | $ 0 | ||||
Maximum [Member] | ||||||
Commitments And Contingencies [Line Items] | ||||||
Range of possible loss, portion not accrued | 31 | |||||
Maximum [Member] | Unasserted Claim [Member] | ||||||
Commitments And Contingencies [Line Items] | ||||||
Range of possible loss, portion not accrued | 1 | |||||
Maximum [Member] | Vacation Ownership [Member] | Guarantee Obligations [Member] | ||||||
Commitments And Contingencies [Line Items] | ||||||
Loss Contingency, Estimate of Possible Loss | $ 41 | |||||
[1] | Consists of the Company’s $1.0 billion secured revolving credit facility. |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income/(Loss) (Components Of Accumulated Other Comprehensive Income) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Accumulated Other Comprehensive (Loss)/Income, Net of Tax | |||
Beginning Balance, value | $ (968) | $ (524) | $ (569) |
Ending Balance, value | (794) | (968) | (524) |
Foreign Currency Translation Adjustments | |||
Accumulated Other Comprehensive (Loss)/Income, Net of Tax | |||
Beginning balance, Pretax | (113) | (148) | (147) |
Other comprehensive income/(loss) before reclassifications, Pretax | (32) | 35 | (1) |
Amount reclassed to earnings, Pretax | 0 | ||
Ending balance, Pretax | (145) | (113) | (148) |
Beginning balance, Tax | 97 | 95 | 94 |
Other comprehensive income/(loss) before reclassifications, tax | 0 | 2 | 1 |
Ending balance, Tax | 97 | 97 | 95 |
Beginning Balance, value | (16) | (53) | (53) |
Other comprehensive income/(loss) before reclassifications, Net of Tax | (32) | 37 | 0 |
Amount reclassified to earnings | 0 | ||
Ending Balance, value | (48) | (16) | (53) |
Unrealized Gains/(Losses) on Cash Flow Hedges | |||
Accumulated Other Comprehensive (Loss)/Income, Net of Tax | |||
Beginning balance, Pretax | (1) | (1) | (2) |
Other comprehensive income/(loss) before reclassifications, Pretax | 0 | 0 | 0 |
Amount reclassed to earnings, Pretax | 1 | ||
Ending balance, Pretax | (1) | (1) | (1) |
Beginning balance, Tax | 1 | 1 | 2 |
Other comprehensive income/(loss) before reclassifications, tax | 0 | 0 | (1) |
Ending balance, Tax | 1 | 1 | 1 |
Beginning Balance, value | 0 | 0 | 0 |
Other comprehensive income/(loss) before reclassifications, Net of Tax | 0 | 0 | (1) |
Amount reclassified to earnings | 1 | ||
Ending Balance, value | 0 | 0 | 0 |
Defined Benefit Pension Plans | |||
Accumulated Other Comprehensive (Loss)/Income, Net of Tax | |||
Beginning balance, Pretax | 0 | 1 | 2 |
Other comprehensive income/(loss) before reclassifications, Pretax | 0 | (1) | (1) |
Amount reclassed to earnings, Pretax | 0 | ||
Ending balance, Pretax | 0 | 0 | 1 |
Beginning balance, Tax | 0 | 0 | (1) |
Other comprehensive income/(loss) before reclassifications, tax | 0 | 0 | 1 |
Ending balance, Tax | 0 | 0 | 0 |
Beginning Balance, value | 0 | 1 | 1 |
Other comprehensive income/(loss) before reclassifications, Net of Tax | 0 | (1) | 0 |
Amount reclassified to earnings | 0 | ||
Ending Balance, value | 0 | 0 | 1 |
AOCI Including Portion Attributable to Noncontrolling Interest | |||
Accumulated Other Comprehensive (Loss)/Income, Net of Tax | |||
Beginning balance, Pretax | (114) | (148) | (147) |
Other comprehensive income/(loss) before reclassifications, Pretax | (32) | 34 | (2) |
Amount reclassed to earnings, Pretax | 1 | ||
Ending balance, Pretax | (146) | (114) | (148) |
Beginning balance, Tax | 98 | 96 | 95 |
Other comprehensive income/(loss) before reclassifications, tax | 0 | 2 | 1 |
Ending balance, Tax | 98 | 98 | 96 |
Beginning Balance, value | (16) | (52) | (52) |
Other comprehensive income/(loss) before reclassifications, Net of Tax | (32) | 36 | (1) |
Amount reclassified to earnings | 1 | ||
Ending Balance, value | $ (48) | $ (16) | $ (52) |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Income/(Loss) (Reclassification out of AOCL) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | $ (308) | $ 255 | $ (507) |
Reclassification out of Accumulated Other Comprehensive Income | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | $ 0 | $ 0 |
Stock-Based Compensation (Narra
Stock-Based Compensation (Narrative) (Details) - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Maximum common stock shares to be awarded | 15.7 | ||
Common stock remaining shares outstanding | 11.3 | ||
Share-based Payment Arrangement, Expense | $ 32 | $ 20 | $ 24 |
Share-based Payment Arrangement, Expense, Tax Benefit | 9 | 2 | 7 |
Net share settlement of incentive equity awards | $ (9) | $ (2) | $ (4) |
Share-based Compensation Arrangement by Share-based Payment Award, Discount from Market Price, Purchase Date | 10.00% | ||
Stock Issued During Period, Shares, Employee Stock Ownership Plan | 0.1 | 0.2 | 0.2 |
Employee Stock Ownership Plan (ESOP), Compensation Expense | $ 1 | $ 1 | $ 1 |
Employee stock purchase program issuances | 8 | 7 | 11 |
Additional Paid-in Capital | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Employee stock purchase program issuances | 8 | 7 | 11 |
Separation and Related Costs [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Payment Arrangement, Expense | 4 | ||
Restricted Stock Units (RSUs) [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares Granted, Value, Share-based Payment Arrangement, before Forfeiture | $ 35 | 35 | 26 |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 4 years | ||
Performance-vested restricted Stock Units (PSUs) | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares Granted, Value, Share-based Payment Arrangement, before Forfeiture | $ 7 | 8 | 7 |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | ||
Employee Stock Option | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares Granted, Value, Share-based Payment Arrangement, before Forfeiture | $ 2 | 8 | 5 |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 4 years | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value | $ 1 | 0 | 0 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested in Period, Fair Value | $ 6 | $ 3 | $ 1 |
Stock-Based Compensation (Incen
Stock-Based Compensation (Incentive Equity Awards Granted By The Company) (Details) - USD ($) $ / shares in Units, shares in Millions | 12 Months Ended | ||||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |||
Restricted Stock Units (RSUs) [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Unrecognized compensation expense | $ 51,000,000 | ||||
Incentive equity awards vesting ratably over a period, in years | 2 years 4 months 24 days | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |||||
Weighted Average Grant Price, Beginning Balance (in dollars per share) | $ 38.22 | ||||
Weighted Average Grant Price, Granted (in dollars per share) | 58.47 | ||||
Weighted Average Grant Price, Vested/exercised (in dollars per share) | [1] | 44.72 | |||
Weighted Average Grant Price, Canceled (in dollars per share) | [2] | 47.25 | |||
Weighted Average Grant Price, Ending Balance (in dollars per share) | $ 47.83 | $ 38.22 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested [Roll Forward] | |||||
Number of Units, Beginning Balance (shares) | 1.6 | ||||
Number of Units, Granted (shares) | 0.6 | ||||
Number of Units, Vested/exercised (shares) | [1] | (0.3) | |||
Number of Units, Canceled (shares) | [2] | (0.1) | |||
Number of Units, Ending Balance (shares) | 1.8 | [3] | 1.6 | ||
Performance-vested restricted Stock Units (PSUs) | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Unrecognized compensation expense | $ 0 | ||||
Incentive equity awards vesting ratably over a period, in years | 2 years | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |||||
Weighted Average Grant Price, Beginning Balance (in dollars per share) | $ 42.57 | ||||
Weighted Average Grant Price, Granted (in dollars per share) | 59 | ||||
Weighted Average Grant Price, Vested/exercised (in dollars per share) | [1] | 0 | |||
Weighted Average Grant Price, Canceled (in dollars per share) | [2] | 0 | |||
Weighted Average Grant Price, Ending Balance (in dollars per share) | $ 48.18 | $ 42.57 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested [Roll Forward] | |||||
Number of Units, Beginning Balance (shares) | 0.3 | ||||
Number of Units, Granted (shares) | 0.1 | ||||
Number of Units, Vested/exercised (shares) | [1] | 0 | |||
Number of Units, Canceled (shares) | [2] | 0 | |||
Number of Units, Ending Balance (shares) | 0.4 | [4] | 0.3 | ||
Performance-vested restricted Stock Units (PSUs) | Maximum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Unrecognized compensation expense | $ 8,000,000 | ||||
Stock-Settled Appreciation Rights (SSARs) [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Unrecognized compensation expense | $ 0 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |||||
Weighted Average Grant Price, Beginning Balance (in dollars per share) | $ 34.51 | ||||
Weighted Average Grant Price, Granted (in dollars per share) | 0 | ||||
Weighted Average Grant Price, Vested/exercised (in dollars per share) | [1] | 34.51 | |||
Weighted Average Grant Price, Canceled (in dollars per share) | [2] | 0 | |||
Weighted Average Grant Price, Ending Balance (in dollars per share) | $ 0 | $ 34.51 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested [Roll Forward] | |||||
Number of Units, Beginning Balance (shares) | 0.2 | ||||
Number of Units, Granted (shares) | 0 | ||||
Number of Units, Vested/exercised (shares) | [1] | (0.2) | |||
Number of Units, Canceled (shares) | [2] | 0 | |||
Number of Units, Ending Balance (shares) | 0 | [5] | 0.2 | ||
Employee Stock Option | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Unrecognized compensation expense | $ 8,000,000 | ||||
Incentive equity awards vesting ratably over a period, in years | 2 years 3 months 18 days | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Number of Shares, Beginning Balance | 2.3 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 0.1 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested, Number of Shares | [1] | (0.1) | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures and Expirations in Period | [2] | 0 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Number of Shares, Ending Balance | 2.3 | [6] | 2.3 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested [Roll Forward] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Option, Nonvested, Weighted Average Exercise Price, Beginning Balance | $ 44.15 | ||||
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price | 59 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested, Weighted Average Grant Date Fair Value | [1] | 44.50 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures and Expirations in Period, Weighted Average Intrinsic Value | [2] | 0 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Option, Nonvested, Weighted Average Exercise Price, Ending Balance | $ 45.32 | $ 44.15 | |||
Employee Stock Option | Maximum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 10 years | 10 years | 10 years | ||
Employee Stock Option | Exercisable options [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Exercisable Stock Options | 0.9 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 6 years 10 months 24 days | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested [Roll Forward] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested, Weighted Average Grant Date Fair Value | $ 8.39 | ||||
[1] | Upon exercise of NQs and SSARs and upon vesting of RSUs and PSUs, the Company issues new shares to participants. | ||||
[2] | The Company recognizes forfeitures as they occur. | ||||
[3] | Aggregate unrecognized compensation expense related to RSUs was $51 million as of December 31, 2021, which is expected to be recognized over a weighted average period of 2.4 years. | ||||
[4] | There was no unrecognized compensation expense related to PSUs as these awards were not probable of vesting as of December 31, 2021. The maximum amount of compensation expense associated with these awards would be $8 million which would be recognized over a weighted average period of 2.0 years. | ||||
[5] | s of December 31, 2021, all SSARs had been exercised; therefore there was no unrecognized compensation expense. | ||||
[6] | There were 0.9 million NQs which were exercisable as of December 31, 2021. These NQs will expire over a weighted average period of 6.9 years and carry a weighted average grant date fair value of $8.39. Unrecognized compensation expense for the NQs was $8 million as of December 31, 2021, which is expected to be recognized over a weighted average period of 2.3 years. |
Stock-Based Compensation (Weigh
Stock-Based Compensation (Weighted Average Grant Date Fair Value Assumptions) (Details) - Employee Stock Option - USD ($) | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Grant date fair value | $ 18.87 | $ 8.98 | ||
Grant date strike price | $ 59 | $ 41.04 | $ 44.38 | |
Expected volatility | 44.80% | 29.97% | ||
Expected life (a) | [1] | 6 years 3 months | 6 years 3 months | |
Risk-free interest rate | 1.09% | 2.59% | ||
Projected dividend yield | 3.12% | 4.87% | 4.06% | |
Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Grant date fair value | $ 7.27 | |||
Expected volatility | 32.60% | |||
Expected life (a) | [1] | 6 years 3 months | ||
Risk-free interest rate | 0.95% | |||
Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Grant date fair value | $ 7.28 | |||
Expected volatility | 32.88% | |||
Expected life (a) | [1] | 7 years 6 months | ||
Risk-free interest rate | 1.03% | |||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 10 years | 10 years | 10 years | |
[1] | The maximum contractual term for these options is 10 years. |
Employee Benefit Plans - Define
Employee Benefit Plans - Defined Contribution Plans (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
United States | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Defined Contribution Plan, Cost | $ 27 | $ 19 | $ 33 |
Foreign Plan | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Defined Contribution Plan, Cost | $ 6 | $ 7 | $ 8 |
Employee Benefit Plans - Defi_2
Employee Benefit Plans - Defined Benefit Pension Plans (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Unrecognized gains | $ (32) | $ 36 | $ 0 |
Pension expense | 0 | 0 | $ 0 |
Defined Benefit Pension Plans | Accrued expenses and other liabilities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Net pension liability | 4 | 5 | |
Accumulated Defined Benefit Plans Adjustment Including Portion Attributable to Noncontrolling Interest | Defined Benefit Pension Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Unrecognized gains | $ 1 | $ 1 |
Segment Information (Summary Of
Segment Information (Summary Of Segment Information) (Details) $ in Millions | Oct. 22, 2019USD ($) | Dec. 31, 2021USD ($)brandsegment | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | ||||
Segment Information [Line Items] | ||||||||
Revenue from Contract with Customer, Excluding Assessed Tax | [1] | $ 3,134 | $ 2,160 | $ 4,043 | ||||
Reconciliation of Operating Profit (Loss) from Segments to Consolidated [Abstract] | ||||||||
Net income/(loss) attributable to Travel + Leisure Co. shareholders | 308 | (255) | 507 | |||||
Loss/(gain) on disposal of discontinued business, net of income taxes | 5 | 2 | (18) | |||||
Provision/(benefit) for income taxes | 116 | (23) | 191 | |||||
Depreciation and amortization | 124 | 126 | 121 | |||||
Interest expense | 198 | 192 | 162 | |||||
Interest (income) | (3) | (7) | (7) | |||||
Gain on sale of business | 0 | 0 | (68) | |||||
Stock-based compensation | 32 | 20 | 20 | |||||
Legacy items | 4 | 4 | 1 | |||||
COVID-19 related costs Adj EBITDA | [2] | 0 | ||||||
Inventory write-down | 0 | |||||||
Acquisition and divestiture related costs | 0 | 0 | 1 | |||||
Separation and related costs | [3] | 0 | 0 | 45 | ||||
Restructuring | (1) | 39 | 9 | |||||
Unrealized gain on equity investment | (9) | 0 | [4] | 0 | [4] | |||
Asset impairments/(recovery) | (5) | [5] | 52 | 27 | [5] | |||
Adjusted EBITDA | 778 | 259 | 991 | |||||
Adjusted EBITDA | ||||||||
Adjusted EBITDA | 778 | 259 | 991 | |||||
Segment Assets | ||||||||
Segment assets | [6] | $ 6,588 | 7,613 | |||||
Number of Reportable Segments | segment | 2 | |||||||
Share-based Payment Arrangement, Expense | $ 32 | 20 | 24 | |||||
Capital Expenditures | 57 | 69 | 108 | |||||
Disposal Group, Not Discontinued Operations [Member] | North American Vacation Rentals [Member] | ||||||||
Reconciliation of Operating Profit (Loss) from Segments to Consolidated [Abstract] | ||||||||
Gain on sale of business | $ (68) | |||||||
COVID-19 (Member) | ||||||||
Reconciliation of Operating Profit (Loss) from Segments to Consolidated [Abstract] | ||||||||
COVID-19 related costs Adj EBITDA | [2] | 3 | 56 | |||||
Inventory write-down | 0 | 48 | ||||||
Asset impairments/(recovery) | [5] | 57 | ||||||
Operating Segments | ||||||||
Segment Information [Line Items] | ||||||||
Revenue from Contract with Customer, Excluding Assessed Tax | 3,155 | 2,177 | 4,066 | |||||
Reconciliation of Operating Profit (Loss) from Segments to Consolidated [Abstract] | ||||||||
Adjusted EBITDA | 840 | 312 | 1,045 | |||||
Adjusted EBITDA | ||||||||
Adjusted EBITDA | 840 | 312 | 1,045 | |||||
Segment Assets | ||||||||
Segment assets | [6] | 6,157 | 6,372 | |||||
Capital Expenditures | 51 | 62 | 96 | |||||
Corporate and Other | ||||||||
Segment Information [Line Items] | ||||||||
Revenue from Contract with Customer, Excluding Assessed Tax | [1],[7] | (21) | (17) | (23) | ||||
Reconciliation of Operating Profit (Loss) from Segments to Consolidated [Abstract] | ||||||||
Adjusted EBITDA | [7] | (62) | (53) | (54) | ||||
Adjusted EBITDA | ||||||||
Adjusted EBITDA | [7] | (62) | (53) | (54) | ||||
Segment Assets | ||||||||
Segment assets | [6] | 431 | 1,241 | |||||
Capital Expenditures | 6 | 7 | 12 | |||||
Vacation Ownership | Operating Segments | ||||||||
Segment Information [Line Items] | ||||||||
Revenue from Contract with Customer, Excluding Assessed Tax | [1] | 2,403 | 1,625 | 3,122 | ||||
Reconciliation of Operating Profit (Loss) from Segments to Consolidated [Abstract] | ||||||||
Adjusted EBITDA | 558 | 121 | 736 | |||||
Adjusted EBITDA | ||||||||
Adjusted EBITDA | 558 | 121 | 736 | |||||
Segment Assets | ||||||||
Segment assets | [6] | 4,743 | 5,000 | |||||
Capital Expenditures | $ 34 | 41 | 69 | |||||
Travel and Membership | ||||||||
Segment Assets | ||||||||
Number of brands | brand | 3 | |||||||
Travel and Membership | Operating Segments | ||||||||
Segment Information [Line Items] | ||||||||
Revenue from Contract with Customer, Excluding Assessed Tax | [1] | $ 752 | 552 | 944 | ||||
Reconciliation of Operating Profit (Loss) from Segments to Consolidated [Abstract] | ||||||||
Adjusted EBITDA | 282 | 191 | 309 | |||||
Adjusted EBITDA | ||||||||
Adjusted EBITDA | 282 | 191 | 309 | |||||
Segment Assets | ||||||||
Segment assets | [6] | 1,414 | 1,372 | |||||
Capital Expenditures | 17 | 21 | 27 | |||||
Separation and Related Costs [Member] | ||||||||
Segment Assets | ||||||||
Share-based Payment Arrangement, Expense | $ 4 | |||||||
Operating Expense | COVID-19 (Member) | ||||||||
Reconciliation of Operating Profit (Loss) from Segments to Consolidated [Abstract] | ||||||||
Inventory write-down | 48 | |||||||
Asset impairments/(recovery) | 5 | |||||||
Operating Expense | Vacation Ownership | COVID-19 (Member) | ||||||||
Reconciliation of Operating Profit (Loss) from Segments to Consolidated [Abstract] | ||||||||
Inventory write-down | 0 | |||||||
Operating Expense | Travel and Membership | COVID-19 (Member) | ||||||||
Reconciliation of Operating Profit (Loss) from Segments to Consolidated [Abstract] | ||||||||
Inventory write-down | 48 | |||||||
Asset impairments/(recovery) [Member] | COVID-19 (Member) | ||||||||
Reconciliation of Operating Profit (Loss) from Segments to Consolidated [Abstract] | ||||||||
Unrealized gain on equity investment | (6) | |||||||
Asset impairments/(recovery) | 51 | |||||||
Asset impairments/(recovery) [Member] | Vacation Ownership | ||||||||
Reconciliation of Operating Profit (Loss) from Segments to Consolidated [Abstract] | ||||||||
Asset impairments/(recovery) | 1 | 1 | ||||||
Asset impairments/(recovery) [Member] | Vacation Ownership | COVID-19 (Member) | ||||||||
Reconciliation of Operating Profit (Loss) from Segments to Consolidated [Abstract] | ||||||||
Asset impairments/(recovery) | 0 | $ 10 | ||||||
Asset impairments/(recovery) [Member] | Travel and Membership | COVID-19 (Member) | ||||||||
Reconciliation of Operating Profit (Loss) from Segments to Consolidated [Abstract] | ||||||||
Unrealized gain on equity investment | (6) | |||||||
Other Income | ||||||||
Reconciliation of Operating Profit (Loss) from Segments to Consolidated [Abstract] | ||||||||
Unrealized gain on equity investment | [4] | $ (3) | ||||||
[1] | This table reflects the reclassification of Extra Holidays from the Vacation Ownership segment into the Travel and Membership segment for all periods presented. Extra Holidays revenue is included within Transaction revenues. | |||||||
[2] | Reflects severance and other employee costs associated with layoffs due to the COVID-19 workforce reduction offset in part by employee retention credits received in connection with the U.S. CARES Act, ARPA, and similar international programs for wages paid to certain employees despite having operations suspended. This amount does not include costs associated with idle pay. | |||||||
[3] | Includes $4 million of stock-based compensation expenses for the year ended December 31, 2019. | |||||||
[4] | Represents the unrealized gain associated with Vacasa equity acquired as part of the consideration for the sale of North America vacation rentals. The total amount of unrealized gain on this investment was $9 million for the year ended December 31, 2021, of which $6 million is included in Asset impairments/(recovery) on the Consolidated Statements of Income/(Loss) to offset the 2020 impairment recognized on this investment. | |||||||
[5] | Includes $5 million of bad debt expense related to a note receivable for the year ended December 31, 2020, included in Operating expenses on the Consolidated Statements of Income/(Loss). | |||||||
[6] | Excludes investment in consolidated subsidiaries. | |||||||
[7] | Includes the elimination of transactions between segments. |
Segment Information (Schedule o
Segment Information (Schedule of Geographic Segment Information) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||
Segment Information [Line Items] | ||||
Net revenues | [1] | $ 3,134 | $ 2,160 | $ 4,043 |
Net long-lived assets | 1,869 | 1,761 | ||
United States | ||||
Segment Information [Line Items] | ||||
Net revenues | 2,753 | 1,904 | 3,513 | |
Net long-lived assets | 1,574 | 1,471 | ||
All Other Countries | ||||
Segment Information [Line Items] | ||||
Net revenues | 381 | 256 | $ 530 | |
Net long-lived assets | $ 295 | $ 290 | ||
[1] | This table reflects the reclassification of Extra Holidays from the Vacation Ownership segment into the Travel and Membership segment for all periods presented. Extra Holidays revenue is included within Transaction revenues. |
Separation and Transaction Co_2
Separation and Transaction Costs (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||
Related Party Transaction [Line Items] | ||||
Separation and related costs | [1] | $ 0 | $ 0 | $ 45 |
Continuing Operations | Wyndham Hotels And Resorts, Inc. [Member] | ||||
Related Party Transaction [Line Items] | ||||
Separation and related costs | $ 45 | |||
[1] | Includes $4 million of stock-based compensation expenses for the year ended December 31, 2019. |
COVID-19 Related Impacts (Detai
COVID-19 Related Impacts (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | 21 Months Ended | |||||||
Dec. 31, 2020 | Mar. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2021 | |||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Provision for loan losses | $ 129 | $ 415 | $ 479 | |||||||
COVID-19 related costs | 4 | 88 | 0 | |||||||
Asset impairments/(recovery) | (5) | [1] | 52 | 27 | [1] | |||||
Inventory write-down | 0 | |||||||||
Lease-related | (1) | 39 | 9 | |||||||
Unrealized gain on equity investment | (9) | 0 | [2] | $ 0 | [2] | |||||
Restructuring Plan 2020 | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Lease-related | 37 | |||||||||
Asset impairments/(recovery) [Member] | Vacation Ownership | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Asset impairments/(recovery) | 1 | 1 | ||||||||
COVID-19 (Member) | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Asset impairments/(recovery) | [1] | 57 | ||||||||
Inventory write-down | 0 | 48 | ||||||||
Total COVID-19 Impact | (61) | 385 | ||||||||
COVID-19 (Member) | Vacation Ownership | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Total COVID-19 Impact | (56) | 257 | ||||||||
COVID-19 (Member) | Vacation Ownership | Restructuring Plan 2020 | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Lease-related | 1 | |||||||||
COVID-19 (Member) | Travel and Membership | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Total COVID-19 Impact | (6) | 113 | ||||||||
COVID-19 (Member) | Corporate and Other | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Total COVID-19 Impact | 1 | 15 | ||||||||
COVID-19 (Member) | Vacation Ownership Interest Sales [Member] | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Provision for loan losses | $ (20) | $ 225 | (91) | 205 | $ (111) | |||||
COVID-19 (Member) | Vacation Ownership Interest Sales [Member] | Vacation Ownership | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Provision for loan losses | (91) | 205 | ||||||||
COVID-19 (Member) | Vacation Ownership Interest Sales [Member] | Travel and Membership | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Provision for loan losses | 0 | 0 | ||||||||
COVID-19 (Member) | Vacation Ownership Interest Sales [Member] | Corporate and Other | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Provision for loan losses | 0 | 0 | ||||||||
COVID-19 (Member) | Cost of vacation ownership interest [Member] | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Estimated Inventory recoveries during the period | $ 7 | $ (55) | 33 | 48 | ||||||
COVID-19 (Member) | Cost of vacation ownership interest [Member] | Vacation Ownership | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Estimated Inventory recoveries during the period | 33 | 48 | ||||||||
COVID-19 (Member) | Cost of vacation ownership interest [Member] | Travel and Membership | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Estimated Inventory recoveries during the period | 0 | 0 | ||||||||
COVID-19 (Member) | Cost of vacation ownership interest [Member] | Corporate and Other | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Estimated Inventory recoveries during the period | 0 | 0 | ||||||||
COVID-19 (Member) | COVID-19 related costs | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
COVID-19 related costs | 4 | 88 | ||||||||
COVID-19 (Member) | COVID-19 related costs | Vacation Ownership | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
COVID-19 related costs | 3 | 65 | ||||||||
COVID-19 (Member) | COVID-19 related costs | Travel and Membership | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
COVID-19 related costs | 0 | 9 | ||||||||
COVID-19 (Member) | COVID-19 related costs | Corporate and Other | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
COVID-19 related costs | 1 | 14 | ||||||||
COVID-19 (Member) | Asset impairments/(recovery) [Member] | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Asset impairments/(recovery) | 51 | |||||||||
Unrealized gain on equity investment | (6) | |||||||||
COVID-19 (Member) | Asset impairments/(recovery) [Member] | Vacation Ownership | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Asset impairments/(recovery) | 0 | 10 | ||||||||
COVID-19 (Member) | Asset impairments/(recovery) [Member] | Travel and Membership | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Unrealized gain on equity investment | (6) | |||||||||
COVID-19 (Member) | Asset impairments/(recovery) [Member] | Corporate and Other | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Asset impairments/(recovery) | 0 | 1 | ||||||||
COVID-19 (Member) | Asset Impairment and Operating Expenses | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Asset impairments/(recovery) | 56 | |||||||||
COVID-19 (Member) | Asset Impairment and Operating Expenses | Vacation Ownership | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Asset impairments/(recovery) | 21 | |||||||||
COVID-19 (Member) | Asset Impairment and Operating Expenses | Travel and Membership | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Asset impairments/(recovery) | 34 | |||||||||
COVID-19 (Member) | Asset Impairment and Operating Expenses | Corporate and Other | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Asset impairments/(recovery) | 1 | |||||||||
COVID-19 (Member) | Operating Expense | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Asset impairments/(recovery) | 5 | |||||||||
Inventory write-down | 48 | |||||||||
COVID-19 (Member) | Operating Expense | Vacation Ownership | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Inventory write-down | 0 | |||||||||
COVID-19 (Member) | Operating Expense | Travel and Membership | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Inventory write-down | 48 | |||||||||
COVID-19 (Member) | Operating Expense | Corporate and Other | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Inventory write-down | 0 | |||||||||
COVID-19 (Member) | Restructuring [Member] | Restructuring Plan 2020 | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Lease-related | (1) | 36 | ||||||||
COVID-19 (Member) | Restructuring [Member] | Vacation Ownership | Restructuring Plan 2020 | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Lease-related | (1) | 14 | ||||||||
COVID-19 (Member) | Restructuring [Member] | Travel and Membership | Restructuring Plan 2020 | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Lease-related | 0 | 22 | ||||||||
COVID-19 (Member) | Restructuring [Member] | Corporate and Other | Restructuring Plan 2020 | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Lease-related | $ 0 | $ 0 | ||||||||
[1] | Includes $5 million of bad debt expense related to a note receivable for the year ended December 31, 2020, included in Operating expenses on the Consolidated Statements of Income/(Loss). | |||||||||
[2] | Represents the unrealized gain associated with Vacasa equity acquired as part of the consideration for the sale of North America vacation rentals. The total amount of unrealized gain on this investment was $9 million for the year ended December 31, 2021, of which $6 million is included in Asset impairments/(recovery) on the Consolidated Statements of Income/(Loss) to offset the 2020 impairment recognized on this investment. |
COVID-19 Related Items Narrativ
COVID-19 Related Items Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | 21 Months Ended | |||||||
Dec. 31, 2020 | Mar. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2021 | Dec. 31, 2018 | ||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Provision for loan losses | $ 129 | $ 415 | $ 479 | |||||||
Financing Receivable, Allowance for Credit Loss | $ 693 | 510 | 693 | 747 | $ 510 | $ 734 | ||||
Asset impairments/(recovery) | (5) | [1] | 52 | 27 | [1] | |||||
Inventory write-down | 0 | |||||||||
Restructuring | (1) | 39 | 9 | |||||||
Asset impairments/(recovery) | (5) | 52 | 36 | |||||||
Restructuring Plan 2020 | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Restructuring | 37 | |||||||||
Personnel-Related | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Restructuring | 0 | 3 | $ 9 | |||||||
Facility-Related | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Restructuring | 0 | 24 | ||||||||
Other Restructuring [Member] | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Restructuring | (1) | [2] | 12 | |||||||
Vacation Ownership | Other Restructuring [Member] | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Restructuring | (1) | |||||||||
Travel and Membership | Personnel-Related | Restructuring Plan 2020 | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Restructuring | 1 | |||||||||
COVID-19 (Member) | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Net COVID-19 Provision impact on Adj EBITDA | (58) | 157 | ||||||||
Financing Receivable, Allowance for Credit Loss | 0 | 0 | ||||||||
Asset impairments/(recovery) | [1] | 57 | ||||||||
Inventory write-down | 0 | 48 | ||||||||
COVID-19 (Member) | Vacation Ownership | Restructuring Plan 2020 | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Restructuring | 1 | |||||||||
COVID-19 (Member) | Vacation Ownership | Facility-Related | Restructuring Plan 2020 | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Restructuring | 2 | |||||||||
COVID-19 (Member) | Travel and Membership | Facility-Related | Restructuring Plan 2020 | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Restructuring | 22 | |||||||||
Vacation Ownership Interest Sales [Member] | COVID-19 (Member) | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Provision for loan losses | (20) | $ 225 | (91) | 205 | $ (111) | |||||
Vacation Ownership Interest Sales [Member] | COVID-19 (Member) | Vacation Ownership | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Provision for loan losses | (91) | 205 | ||||||||
Vacation Ownership Interest Sales [Member] | COVID-19 (Member) | Travel and Membership | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Provision for loan losses | 0 | 0 | ||||||||
Cost of vacation ownership interest [Member] | COVID-19 (Member) | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Estimated Inventory recoveries during the period | $ (7) | $ 55 | (33) | (48) | ||||||
Cost of vacation ownership interest [Member] | COVID-19 (Member) | Vacation Ownership | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Estimated Inventory recoveries during the period | (33) | (48) | ||||||||
Cost of vacation ownership interest [Member] | COVID-19 (Member) | Travel and Membership | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Estimated Inventory recoveries during the period | 0 | 0 | ||||||||
COVID-19 related costs | COVID-19 (Member) | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Professional Fees | 3 | 17 | ||||||||
COVID-19 related costs | COVID-19 (Member) | Personnel-Related | COVID-19 Plan [Member] | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Severance costs | 1 | 71 | ||||||||
Employee Retention Credits | 2 | 26 | ||||||||
Asset Impairment and Operating Expenses | COVID-19 (Member) | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Asset impairments/(recovery) | 56 | |||||||||
Asset Impairment and Operating Expenses | COVID-19 (Member) | Vacation Ownership | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Asset impairments/(recovery) | 21 | |||||||||
Asset Impairment and Operating Expenses | COVID-19 (Member) | Travel and Membership | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Asset impairments/(recovery) | 34 | |||||||||
Asset impairments/(recovery) [Member] | Vacation Ownership | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Asset impairments/(recovery) | 1 | 1 | ||||||||
Asset impairments/(recovery) [Member] | COVID-19 (Member) | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Asset impairments/(recovery) | 51 | |||||||||
Asset impairments/(recovery) [Member] | COVID-19 (Member) | Vacation Ownership | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Asset impairments/(recovery) | 0 | 10 | ||||||||
Asset impairments/(recovery) [Member] | COVID-19 (Member) | Travel and Membership | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Asset impairments/(recovery) | 6 | |||||||||
Operating Expense | COVID-19 (Member) | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Asset impairments/(recovery) | 5 | |||||||||
Inventory write-down | 48 | |||||||||
Operating Expense | COVID-19 (Member) | Vacation Ownership | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Inventory write-down | 0 | |||||||||
Operating Expense | COVID-19 (Member) | Travel and Membership | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Inventory write-down | 48 | |||||||||
Restructuring [Member] | COVID-19 (Member) | Restructuring Plan 2020 | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Restructuring | (1) | 36 | ||||||||
Restructuring [Member] | COVID-19 (Member) | Vacation Ownership | Restructuring Plan 2020 | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Restructuring | (1) | 14 | ||||||||
Restructuring [Member] | COVID-19 (Member) | Vacation Ownership | Other Restructuring [Member] | Restructuring Plan 2020 | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Restructuring | 12 | |||||||||
Restructuring [Member] | COVID-19 (Member) | Travel and Membership | Restructuring Plan 2020 | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Restructuring | $ 0 | 22 | ||||||||
Restructuring [Member] | COVID-19 (Member) | Travel and Membership | Facility-Related | Restructuring Plan 2020 | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Restructuring | $ 22 | |||||||||
[1] | Includes $5 million of bad debt expense related to a note receivable for the year ended December 31, 2020, included in Operating expenses on the Consolidated Statements of Income/(Loss). | |||||||||
[2] | Includes $1 million reversal of expense related to the reimbursement of prepaid licensing fees that were previously written-off at the Vacation Ownership segment. |
COVID-19 Related Liabilities (D
COVID-19 Related Liabilities (Details) - USD ($) $ in Millions | 12 Months Ended | |||||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||||
Restructuring Cost and Reserve [Line Items] | ||||||
Beginning Balance | $ 26 | [1] | $ 7 | $ 12 | ||
COVID-19 related costs | 4 | 88 | 0 | |||
Cash payments | (6) | (20) | (14) | |||
Ending Balance | 22 | [1] | 26 | [1] | 7 | |
COVID-19 Plan [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Beginning Balance | [2] | 6 | ||||
COVID-19 related costs | 1 | |||||
Cash payments | (6) | |||||
Ending Balance | [2] | 1 | 6 | |||
Personnel-Related | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Beginning Balance | 1 | 7 | 12 | |||
Cash payments | (1) | (9) | (14) | |||
Ending Balance | 0 | 1 | $ 7 | |||
Personnel-Related | COVID-19 Plan [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Beginning Balance | 6 | |||||
COVID-19 related costs | 1 | |||||
Cash payments | (6) | |||||
Ending Balance | $ 1 | $ 6 | ||||
[1] | See Note 28— Restructuring for details. | |||||
[2] | See Note 26— COVID-19 Related Items for details. |
Impairments and Other Charges (
Impairments and Other Charges (Details) - USD ($) $ in Millions | 12 Months Ended | |||||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||||
Asset impairments/(recovery) | $ (5) | [1] | $ 52 | $ 27 | [1] | |
Asset impairments/(recovery) | (5) | 52 | 36 | |||
COVID-19 (Member) | ||||||
Asset impairments/(recovery) | [1] | 57 | ||||
Asset impairments/(recovery) [Member] | COVID-19 (Member) | ||||||
Asset impairments/(recovery) | 51 | |||||
Vacation Ownership | Asset impairments/(recovery) [Member] | ||||||
Asset impairments/(recovery) | 1 | 1 | ||||
Vacation Ownership | Asset impairments/(recovery) [Member] | COVID-19 (Member) | ||||||
Asset impairments/(recovery) | 0 | 10 | ||||
Operating Lease, Impairment Loss | 5 | |||||
Impairment of land held for vacation ownership interests | 6 | |||||
Travel and Membership | Asset impairments/(recovery) [Member] | COVID-19 (Member) | ||||||
Asset impairments/(recovery) | 6 | |||||
Operating Lease, Impairment Loss | 24 | |||||
Impairment of Intangible Assets, Finite-lived | 4 | |||||
Corporate and Other | Asset impairments/(recovery) [Member] | COVID-19 (Member) | ||||||
Asset impairments/(recovery) | $ 0 | $ 1 | ||||
Las Vegas Inventory Sale | ||||||
Cash consideration from sale of locations | 52 | |||||
Note receivable | 4 | |||||
Las Vegas Inventory Sale | Asset impairments/(recovery) [Member] | ||||||
Asset impairments/(recovery) | $ 27 | |||||
[1] | Includes $5 million of bad debt expense related to a note receivable for the year ended December 31, 2020, included in Operating expenses on the Consolidated Statements of Income/(Loss). |
Restructuring (Narrative) (Deta
Restructuring (Narrative) (Details) $ in Millions | 12 Months Ended | |||||
Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($)employee | Dec. 31, 2018USD ($) | |||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring | $ (1) | $ 39 | $ 9 | |||
Cash payments | 6 | 20 | 14 | |||
Restructuring liabilities | 22 | [1] | 26 | [1] | 7 | $ 12 |
Facility-Related | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring | 0 | 24 | ||||
Cash payments | 1 | 1 | ||||
Restructuring liabilities | 22 | 23 | 0 | |||
Other Restructuring [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring | (1) | [2] | 12 | |||
Cash payments | 4 | 10 | ||||
Restructuring liabilities | 0 | 2 | 0 | |||
Other Restructuring [Member] | Vacation Ownership | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring | (1) | |||||
Personnel-Related | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring | 0 | 3 | 9 | |||
Cash payments | 1 | 9 | 14 | |||
Restructuring liabilities | 0 | 1 | 7 | $ 12 | ||
Restructuring Plan 2020 | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring | 37 | |||||
Cash payments | 5 | 12 | ||||
Restructuring liabilities | 22 | |||||
Restructuring Plan 2020 | COVID-19 (Member) | Restructuring [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring | (1) | 36 | ||||
Restructuring Plan 2020 | Vacation Ownership | COVID-19 (Member) | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring | 1 | |||||
Restructuring Plan 2020 | Vacation Ownership | COVID-19 (Member) | Restructuring [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring | (1) | 14 | ||||
Restructuring Plan 2020 | Travel and Membership | COVID-19 (Member) | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Operating Lease, Impairment Loss | 24 | |||||
Restructuring Plan 2020 | Travel and Membership | COVID-19 (Member) | Restructuring [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring | 0 | 22 | ||||
Restructuring Plan 2020 | Corporate and Other | COVID-19 (Member) | Restructuring [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring | 0 | 0 | ||||
Restructuring Plan 2020 | Facility-Related | Vacation Ownership | COVID-19 (Member) | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring | 2 | |||||
Restructuring Plan 2020 | Facility-Related | Travel and Membership | COVID-19 (Member) | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring | 22 | |||||
Restructuring Plan 2020 | Facility-Related | Travel and Membership | COVID-19 (Member) | Restructuring [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring | 22 | |||||
Restructuring Plan 2020 | Facility-Related | Corporate and Other | COVID-19 (Member) | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring | 1 | |||||
Restructuring Plan 2020 | Other Restructuring [Member] | Vacation Ownership | COVID-19 (Member) | Restructuring [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring | 12 | |||||
Restructuring Plan 2020 | Personnel-Related | Travel and Membership | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring | 1 | |||||
Restructuring Plan 2019 | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring | $ 5 | |||||
Number of positions eliminated | employee | 100 | |||||
Restructuring Plan 2019 | Personnel-Related | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Cash payments | $ 1 | 5 | $ 1 | |||
Restructuring Plan 2019 | Personnel-Related | Vacation Ownership | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring | 2 | |||||
Restructuring Plan 2019 | Personnel-Related | Travel and Membership | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring | 1 | 2 | ||||
Restructuring Plan 2019 | Personnel-Related | Corporate and Other | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring | $ 1 | $ 1 | ||||
[1] | See Note 28— Restructuring for details. | |||||
[2] | Includes $1 million reversal of expense related to the reimbursement of prepaid licensing fees that were previously written-off at the Vacation Ownership segment. |
Restructuring (Activity Related
Restructuring (Activity Related To The Restructuring Costs) (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |||
Restructuring Cost and Reserve [Roll Forward] | |||||
Beginning Balance | $ 26 | [1] | $ 7 | $ 12 | |
Restructuring | (1) | 39 | 9 | ||
Cash payments | (6) | (20) | (14) | ||
Other | 3 | 0 | 0 | ||
Ending Balance | 22 | [1] | 26 | [1] | 7 |
Vacation Ownership | Termination payment reimbursement | |||||
Restructuring Cost and Reserve [Roll Forward] | |||||
Other | 2 | ||||
Vacation Ownership | License fee reimbursement | |||||
Restructuring Cost and Reserve [Roll Forward] | |||||
Other | 1 | ||||
Personnel-Related | |||||
Restructuring Cost and Reserve [Roll Forward] | |||||
Beginning Balance | 1 | 7 | 12 | ||
Restructuring | 0 | 3 | 9 | ||
Cash payments | (1) | (9) | (14) | ||
Other | 0 | 0 | 0 | ||
Ending Balance | 0 | 1 | 7 | ||
Facility-Related | |||||
Restructuring Cost and Reserve [Roll Forward] | |||||
Beginning Balance | 23 | 0 | |||
Restructuring | 0 | 24 | |||
Cash payments | (1) | (1) | |||
Other | 0 | 0 | |||
Ending Balance | 22 | 23 | 0 | ||
Other Restructuring [Member] | |||||
Restructuring Cost and Reserve [Roll Forward] | |||||
Beginning Balance | 2 | 0 | |||
Restructuring | (1) | [2] | 12 | ||
Cash payments | (4) | (10) | |||
Other | 3 | [3] | 0 | ||
Ending Balance | 0 | $ 2 | $ 0 | ||
Other Restructuring [Member] | Vacation Ownership | |||||
Restructuring Cost and Reserve [Roll Forward] | |||||
Restructuring | $ (1) | ||||
[1] | See Note 28— Restructuring for details. | ||||
[2] | Includes $1 million reversal of expense related to the reimbursement of prepaid licensing fees that were previously written-off at the Vacation Ownership segment. | ||||
[3] | Includes $2 million reimbursement of termination payments and $1 million reimbursement of license fees at the Vacation Ownership segment. |
Transactions with Former Pare_2
Transactions with Former Parent and Former Subsidiaries (Narrative) (Details) £ in Millions, $ in Millions | 12 Months Ended | ||||||||||
Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2021GBP (£) | Dec. 31, 2021USD ($) | Dec. 31, 2020GBP (£) | Dec. 31, 2020USD ($) | Dec. 31, 2019GBP (£) | Dec. 31, 2019USD ($) | Jun. 30, 2019USD ($) | May 09, 2019USD ($) | |
Separation Adjustments And Transactions With Former Parent And Subsidiaries [Line Items] | |||||||||||
Cash paid to Wyndham Hotels related to Awaze | $ 0 | $ 0 | $ 69 | ||||||||
Escrow deposit | $ 44 | $ 29 | |||||||||
(Loss)/gain on disposal of discontinued business, net of income taxes | $ (5) | (2) | 18 | ||||||||
Guarantees | 67 | $ 67 | |||||||||
British Travel Association and Regulatory Authorities | |||||||||||
Separation Adjustments And Transactions With Former Parent And Subsidiaries [Line Items] | |||||||||||
Secured bonding facility and perpetual guarantee | 46 | ||||||||||
Change in proceeds | 27 | ||||||||||
Guarantees | $ 22 | ||||||||||
Affiliated Entity | |||||||||||
Separation Adjustments And Transactions With Former Parent And Subsidiaries [Line Items] | |||||||||||
Responsible liability for separation agreement | 37.50% | ||||||||||
Contingent and other corporate liabilities retained | 0.25 | 0.25 | |||||||||
Related party expense | $ 1 | 1 | 1 | ||||||||
Separation and Distribution Agreement, Portion of Certain Contingent and Other Corporate Liabilities Assumed | 0.67 | 0.67 | |||||||||
Separation and Distribution Agreement, Portion of Proceeds From Contingent and Other Corporate Assets | 0.67 | 0.67 | |||||||||
Post-closing Credit Support, Portion of Escrow Received Upon Release | 0.67 | 0.67 | |||||||||
Post-closing Credit Support, Portion of Guarantees Assumed | 0.67 | 0.67 | |||||||||
Affiliated Entity | Cendant | Accrued Liabilities and Other Liabilities | |||||||||||
Separation Adjustments And Transactions With Former Parent And Subsidiaries [Line Items] | |||||||||||
Liabilities assumed | $ 13 | 13 | |||||||||
Affiliated Entity | Realogy | |||||||||||
Separation Adjustments And Transactions With Former Parent And Subsidiaries [Line Items] | |||||||||||
Responsible liability for separation agreement | 62.50% | ||||||||||
Affiliated Entity | Wyndham Hotels And Resorts, Inc. | |||||||||||
Separation Adjustments And Transactions With Former Parent And Subsidiaries [Line Items] | |||||||||||
Contingent and other corporate liabilities retained | 0.33 | 0.33 | |||||||||
Separation and Distribution Agreement, Portion of Certain Contingent and Other Corporate Liabilities Assumed | 0.33 | 0.33 | |||||||||
Separation and Distribution Agreement, Portion of Proceeds From Contingent and Other Corporate Assets | 0.33 | 0.33 | |||||||||
Post-closing Credit Support, Portion of Escrow Received Upon Release | 0.33 | 0.33 | |||||||||
Wyndham Hotels And Resorts, Inc. | |||||||||||
Separation Adjustments And Transactions With Former Parent And Subsidiaries [Line Items] | |||||||||||
Receivable from related party | $ 7 | ||||||||||
Cash paid to Wyndham Hotels related to Awaze | 40 | ||||||||||
Tradename Royalty Buy-Out | |||||||||||
Separation Adjustments And Transactions With Former Parent And Subsidiaries [Line Items] | |||||||||||
Payment for tradename royalty buy-out | 5 | ||||||||||
Sale Of European Vacation Rental Business | European vacation rentals business [Member] | Accrued Liabilities and Other Liabilities | |||||||||||
Separation Adjustments And Transactions With Former Parent And Subsidiaries [Line Items] | |||||||||||
Guarantees | 90 | ||||||||||
Sale Of European Vacation Rental Business | Affiliated Entity | |||||||||||
Separation Adjustments And Transactions With Former Parent And Subsidiaries [Line Items] | |||||||||||
Escrow deposit | $ 5 | ||||||||||
(Loss)/gain on disposal of discontinued business, net of income taxes | (2) | ||||||||||
Sale Of European Vacation Rental Business | Affiliated Entity | Financial Guarantee | |||||||||||
Separation Adjustments And Transactions With Former Parent And Subsidiaries [Line Items] | |||||||||||
Secured bonding facility and perpetual guarantee | $ 180 | ||||||||||
Sale Of European Vacation Rental Business | Affiliated Entity | Financial Guarantee | British Travel Association and Regulatory Authorities | |||||||||||
Separation Adjustments And Transactions With Former Parent And Subsidiaries [Line Items] | |||||||||||
Secured bonding facility and perpetual guarantee | £ 61 | 81 | |||||||||
Guarantees | 29 | 39 | |||||||||
Sale Of European Vacation Rental Business | Affiliated Entity | Financial Guarantee | Awaze [Member] | |||||||||||
Separation Adjustments And Transactions With Former Parent And Subsidiaries [Line Items] | |||||||||||
Secured bonding facility and perpetual guarantee | £ 35 | $ 44 | |||||||||
Liability for Unpaid Claims and Claims Adjustment Expense, Adjustments | 5 | 7 | |||||||||
Sale Of European Vacation Rental Business | Affiliated Entity | Indemnification Agreement | |||||||||||
Separation Adjustments And Transactions With Former Parent And Subsidiaries [Line Items] | |||||||||||
Guarantees | 42 | ||||||||||
Sale Of European Vacation Rental Business | Wyndham Hotels And Resorts, Inc. | Other assets | |||||||||||
Separation Adjustments And Transactions With Former Parent And Subsidiaries [Line Items] | |||||||||||
Receivable from related party | 21 | ||||||||||
Sale Of European Vacation Rental Business | Wyndham Hotels And Resorts, Inc. | Financial Guarantee | British Travel Association and Regulatory Authorities | |||||||||||
Separation Adjustments And Transactions With Former Parent And Subsidiaries [Line Items] | |||||||||||
Secured bonding facility and perpetual guarantee | £ | 0 | £ 58 | |||||||||
Sale Of European Vacation Rental Business | Wyndham Hotels And Resorts, Inc. | Indemnification Agreement | Other assets | |||||||||||
Separation Adjustments And Transactions With Former Parent And Subsidiaries [Line Items] | |||||||||||
Receivable from related party | 14 | ||||||||||
Sale Of European Vacation Rental Business | Wyndham Hotels And Resorts, Inc. | Letter of Credit [Member] | British Travel Association and Regulatory Authorities | |||||||||||
Separation Adjustments And Transactions With Former Parent And Subsidiaries [Line Items] | |||||||||||
Secured bonding facility and perpetual guarantee | £ | £ 0 | £ 36 | |||||||||
Sale Of North American Vacation Rental Business | Affiliated Entity | Indemnification Agreement | |||||||||||
Separation Adjustments And Transactions With Former Parent And Subsidiaries [Line Items] | |||||||||||
Guarantees | $ 2 | ||||||||||
General and Administrative Expense [Member] | Transaction Service Agreement | Wyndham Hotels And Resorts, Inc. | |||||||||||
Separation Adjustments And Transactions With Former Parent And Subsidiaries [Line Items] | |||||||||||
Related party expense | 1 | 3 | |||||||||
General and Administrative Expense [Member] | Sale Of European Vacation Rental Business | Affiliated Entity | |||||||||||
Separation Adjustments And Transactions With Former Parent And Subsidiaries [Line Items] | |||||||||||
Related party expense | 1 | 2 | |||||||||
General and Administrative Expense [Member] | Sale Of North American Vacation Rental Business | Affiliated Entity | |||||||||||
Separation Adjustments And Transactions With Former Parent And Subsidiaries [Line Items] | |||||||||||
Related party expense | $ 1 | 1 | 3 | ||||||||
Separation and Related Costs [Member] | Transaction Service Agreement | Wyndham Hotels And Resorts, Inc. | |||||||||||
Separation Adjustments And Transactions With Former Parent And Subsidiaries [Line Items] | |||||||||||
Related party expense | 2 | ||||||||||
Other | Transaction Service Agreement | Wyndham Hotels And Resorts, Inc. | |||||||||||
Separation Adjustments And Transactions With Former Parent And Subsidiaries [Line Items] | |||||||||||
Revenue from related parties | 1 | ||||||||||
Other | Sale Of North American Vacation Rental Business | Affiliated Entity | |||||||||||
Separation Adjustments And Transactions With Former Parent And Subsidiaries [Line Items] | |||||||||||
Revenue from related parties | $ 1 | 2 | 3 | ||||||||
Net Revenue [Member] | Sale Of European Vacation Rental Business | Affiliated Entity | |||||||||||
Separation Adjustments And Transactions With Former Parent And Subsidiaries [Line Items] | |||||||||||
Revenue from related parties | $ 1 | $ 2 |
Related Party Transaction (Deta
Related Party Transaction (Details) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | ||
Jan. 31, 2019 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Officer [Member] | ||||
Related Party Transaction [Line Items] | ||||
Related Party Transaction, Amounts of Transaction | $ 47 | $ 45 | ||
Officer [Member] | Real Estate | ||||
Related Party Transaction [Line Items] | ||||
Related Party Transaction, Amounts of Transaction | 1 | 1 | ||
Affiliated Entity | ||||
Related Party Transaction [Line Items] | ||||
Related Party Transaction, Amounts of Transaction | $ 16 | |||
Related Party Transaction, Expenses from Transactions with Related Party | $ 1 | $ 1 | $ 1 |