Document And Entity Information
Document And Entity Information | 3 Months Ended |
Mar. 31, 2022shares | |
Cover [Abstract] | |
Document Type | 10-Q |
Document Quarterly Report | true |
Document Period End Date | Mar. 31, 2022 |
Document Transition Report | false |
Entity File Number | 001-32876 |
Entity Registrant Name | Travel & Leisure Co. |
Entity Incorporation, State or Country Code | DE |
Entity Tax Identification Number | 20-0052541 |
Entity Address, Address Line One | 6277 Sea Harbor Drive |
Entity Address, City or Town | Orlando, |
Entity Address, State or Province | FL |
Entity Address, Postal Zip Code | 32821 |
City Area Code | 407 |
Local Phone Number | 626-5200 |
Title of 12(b) Security | Common Stock, $0.01 par value per share |
Trading Symbol | TNL |
Security Exchange Name | NYSE |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Small Business | false |
Entity Emerging Growth Company | false |
Entity Shell Company | false |
Entity Common Stock, Shares Outstanding | 85,415,979 |
Amendment Flag | false |
Document Fiscal Year Focus | 2022 |
Document Fiscal Period Focus | Q1 |
Entity Central Index Key | 0001361658 |
Current Fiscal Year End Date | --12-31 |
Condensed Consolidated Statemen
Condensed Consolidated Statements Of Income/(Loss) - USD ($) $ in Millions | 3 Months Ended | |||
Mar. 31, 2022 | Mar. 31, 2021 | |||
Net revenues | ||||
Net revenues | $ 809 | $ 628 | ||
Expenses | ||||
Operating | 381 | 290 | ||
Cost of vacation ownership interests | 40 | 21 | ||
Consumer financing interest | 17 | 24 | ||
General and administrative | 120 | 106 | ||
Marketing | 94 | 69 | ||
Depreciation and amortization | 30 | 31 | ||
Restructuring | [2] | 7 | [1] | (1) |
COVID-19 related costs | 2 | 1 | ||
Asset impairments | 1 | 0 | ||
Total expenses | 692 | 541 | ||
Operating income | 117 | 87 | ||
Interest expense | 47 | 53 | ||
Interest (income) | (1) | (1) | ||
Other (income), net | (3) | 0 | ||
Income before income taxes | 74 | 35 | ||
Provision for income taxes | 23 | 6 | ||
Net income attributable to Travel + Leisure Co. shareholders | $ 51 | $ 29 | ||
Basic earnings per share | ||||
Basic earnings per share | [3] | $ 0.59 | $ 0.33 | |
Diluted earnings per share | ||||
Diluted earnings per share | [3] | $ 0.59 | $ 0.33 | |
Service and membership fees | ||||
Net revenues | ||||
Net revenues | $ 402 | $ 348 | ||
Vacation ownership interest sales | ||||
Net revenues | ||||
Net revenues | 297 | 172 | ||
Consumer financing | ||||
Net revenues | ||||
Net revenues | 98 | 98 | ||
Other | ||||
Net revenues | ||||
Net revenues | $ 12 | $ 10 | ||
[1] | Included in Restructuring on the Condensed Consolidated Statements of Income. | |||
[2] | Includes $3 million of stock-based compensation expense for the three months ended March 31, 2022 associated with the 2022 restructuring. | |||
[3] | Earnings per share amounts are calculated using whole numbers. |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income/(Loss) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Statement of Comprehensive Income [Abstract] | ||
Net income attributable to Travel + Leisure Co. shareholders | $ 51 | $ 29 |
Foreign currency translation adjustments, net of tax | 3 | (13) |
Other comprehensive income/(loss), net of tax | 3 | (13) |
Comprehensive income | $ 54 | $ 16 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Assets | ||
Cash and cash equivalents | $ 381 | $ 369 |
Restricted cash (VIE - $114 as of 2022 and $84 as of 2021) | 166 | 128 |
Trade receivables, net | 146 | 131 |
Vacation ownership contract receivables, net (VIE - $2,053 as of 2022 and $2,061 as of 2021) | 2,261 | 2,309 |
Inventory | 1,129 | 1,216 |
Prepaid expenses | 228 | 227 |
Property and equipment, net | 743 | 689 |
Goodwill | 961 | 961 |
Other intangibles, net | 216 | 219 |
Other assets | 369 | 339 |
Total assets | 6,600 | 6,588 |
Liabilities and (deficit) | ||
Accounts payable | 67 | 62 |
Accrued expenses and other liabilities | 927 | 939 |
Deferred income | 391 | 382 |
Non-recourse vacation ownership debt (VIE) | 1,949 | 1,934 |
Debt | 3,379 | 3,379 |
Deferred income taxes | 698 | 686 |
Total liabilities | 7,411 | 7,382 |
Commitments and contingencies (Note 15) | ||
Stockholders' (deficit): | ||
Preferred stock, $0.01 par value, authorized 6,000,000 shares, none issued and outstanding | 0 | 0 |
Common stock, $0.01 par value, 600,000,000 shares authorized, 222,510,004 issued as of 2022 and 222,250,970 as of 2021 | 2 | 2 |
Treasury stock, at cost – 137,122,411 shares as of 2022 and 136,320,631 shares as of 2021 | (6,579) | (6,534) |
Additional paid-in capital | 4,200 | 4,192 |
Retained earnings | 1,603 | 1,587 |
Accumulated other comprehensive loss | (45) | (48) |
Total stockholders’ (deficit) | (819) | (801) |
Noncontrolling interest | 8 | 7 |
Total (deficit) | (811) | (794) |
Total liabilities and (deficit) | $ 6,600 | $ 6,588 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 6,000,000 | 6,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred Stock, Shares Outstanding | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 600,000,000 | 600,000,000 |
Common Stock, Shares, Issued (in shares) | 222,510,004 | 222,250,970 |
Treasury stock, shares (in shares) | 137,122,411 | 136,320,631 |
Restricted cash (VIE - $114 as of 2022 and $84 as of 2021) | $ 166 | $ 128 |
Vacation ownership contract receivables, net (VIE - $2,053 as of 2022 and $2,061 as of 2021) | 2,261 | 2,309 |
Non-recourse vacation ownership debt (VIE) | 1,949 | 1,934 |
Variable Interest Entity, Primary Beneficiary [Member] | ||
Restricted cash (VIE - $114 as of 2022 and $84 as of 2021) | 114 | 84 |
Vacation ownership contract receivables, net (VIE - $2,053 as of 2022 and $2,061 as of 2021) | 2,053 | 2,061 |
Non-recourse vacation ownership debt (VIE) | $ 1,949 | $ 1,934 |
Statement of Cash Flows (Statem
Statement of Cash Flows (Statement) - USD ($) $ in Millions | 3 Months Ended | 21 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Operating activities | |||
Net income | $ 51 | $ 29 | |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Provision for loan losses | 48 | 38 | |
Depreciation and amortization | 30 | 31 | |
Deferred income taxes | 13 | (12) | |
Stock-based compensation | 12 | 7 | |
Non-cash interest | 5 | 7 | |
Non-cash lease expense | 4 | 3 | |
Asset impairments | 1 | 0 | |
Other, net | 0 | 3 | |
Net change in assets and liabilities, excluding the impact of acquisitions and dispositions: | |||
Trade receivables | (13) | 3 | |
Vacation ownership contract receivables | 3 | 90 | |
Inventory | 26 | (53) | |
Prepaid expenses | (1) | 0 | |
Other assets | (33) | 0 | |
Accounts payable, accrued expenses, and other liabilities | (10) | (54) | |
Deferred income | 5 | (14) | |
Net cash provided by operating activities | 141 | 78 | |
Investing activities | |||
Property and equipment additions | (10) | (12) | |
Purchase of investments | (7) | 0 | |
Acquisitions | 0 | (35) | |
Other, net | 1 | 0 | |
Net cash used in investing activities | (16) | (47) | |
Financing activities | |||
Proceeds from non-recourse vacation ownership debt | 476 | 597 | |
Principal payments on non-recourse vacation ownership debt | (463) | (644) | |
Principal payments on debt | (1) | (548) | |
Repayment of notes | (1) | (251) | |
Repurchase of common stock | (45) | 0 | |
Dividends to shareholders | (35) | (26) | |
Debt issuance/modification costs | (5) | (7) | |
Net share settlement of incentive equity awards | (5) | (7) | |
Proceeds from issuance of common stock | 0 | 2 | |
Net cash used in financing activities | (79) | (884) | |
Effect of changes in exchange rates on cash, cash equivalents and restricted cash | 4 | (3) | |
Net change in cash, cash equivalents and restricted cash | 50 | (856) | |
Cash, cash equivalents and restricted cash, beginning of period | 497 | 1,317 | |
Cash, cash equivalents and restricted cash, end of period | 547 | 461 | $ 497 |
Less: Restricted cash | 166 | 139 | 128 |
Cash and cash equivalents | $ 381 | $ 322 | $ 369 |
Statement of Shareholders' Equi
Statement of Shareholders' Equity (Statement) - USD ($) shares in Millions, $ in Millions | Total | Common Stock | Treasury Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Non-controlling Interest |
Shares, Issued, Beginning Balance at Dec. 31, 2020 | 85.9 | ||||||
Beginning Balance, value at Dec. 31, 2020 | $ (968) | $ 2 | $ (6,508) | $ 4,157 | $ 1,390 | $ (16) | $ 7 |
Net income attributable to Travel + Leisure Co. shareholders | 29 | 29 | |||||
Other comprehensive income/(loss), net of tax | (13) | (13) | |||||
Stock option exercises, count | 0.1 | ||||||
Stock option exercises, value | 3 | 3 | |||||
Issuance of shares for RSU vesting | 0.2 | ||||||
Net share settlement of stock-based compensation | (7) | (7) | |||||
Change in stock-based compensation | 7 | 7 | |||||
Dividends, common stock | $ (27) | (27) | |||||
Common Stock, Dividends, Per Share, Cash Paid | $ 0.30 | ||||||
Shares, Issued, Ending Balance at Mar. 31, 2021 | 86.2 | ||||||
Ending Balance, value at Mar. 31, 2021 | $ (976) | $ 2 | (6,508) | 4,160 | 1,392 | (29) | 7 |
Shares, Issued, Beginning Balance at Dec. 31, 2021 | 85.9 | ||||||
Beginning Balance, value at Dec. 31, 2021 | (794) | $ 2 | (6,534) | 4,192 | 1,587 | (48) | 7 |
Net income attributable to Travel + Leisure Co. shareholders | 51 | 51 | |||||
Other comprehensive income/(loss), net of tax | 3 | 3 | |||||
Issuance of shares for RSU vesting | 0.3 | ||||||
Net share settlement of stock-based compensation | (5) | (5) | |||||
Change in stock-based compensation | 12 | 12 | |||||
Repurchase of common stock, count | (0.8) | ||||||
Repurchase of common stock, value | (45) | (45) | |||||
Dividends, common stock | $ (35) | (35) | |||||
Common Stock, Dividends, Per Share, Cash Paid | $ 0.40 | ||||||
Non-controlling interest ownership change | $ 1 | 1 | |||||
Other | 1 | 1 | |||||
Shares, Issued, Ending Balance at Mar. 31, 2022 | 85.4 | ||||||
Ending Balance, value at Mar. 31, 2022 | $ (811) | $ 2 | $ (6,579) | $ 4,200 | $ 1,603 | $ (45) | $ 8 |
Background and Basis of Present
Background and Basis of Presentation | 3 Months Ended |
Mar. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization, Consolidation and Presentation of Financial Statements Disclosure | Background and Basis of Presentation Background Travel + Leisure Co. and its subsidiaries (collectively, “Travel + Leisure Co.,” or the “Company”) is a global provider of hospitality services and travel products. The Company has two reportable segments: Vacation Ownership and Travel and Membership. The Vacation Ownership segment develops, markets, and sells vacation ownership interests (“VOIs”) to individual consumers, provides consumer financing in connection with the sale of VOIs, and provides property management services at resorts. This segment is 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 Travel + Leisure Group business lines. 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. Basis of Presentation The accompanying unaudited Condensed Consolidated Financial Statements in this Quarterly Report on Form 10-Q include the accounts and transactions of Travel + Leisure Co., as well as the entities in which Travel + Leisure Co. directly or indirectly has a controlling financial interest. The accompanying Condensed Consolidated Financial Statements have been prepared in accordance with Generally Accepted Accounting Principles in the U.S. (“GAAP”). All intercompany balances and transactions have been eliminated in the Condensed Consolidated Financial Statements. The Company presents an unclassified balance sheet which conforms to that of the Company’s peers and industry practice. In presenting the Condensed Consolidated Financial Statements, management makes estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosures. Estimates, by their nature, are based on judgment and available information. Accordingly, actual results could differ from those estimates and assumptions. In management’s opinion, the Condensed Consolidated Financial Statements contain all normal recurring adjustments necessary for a fair presentation of interim results reported. The results of operations reported for interim periods are not necessarily indicative of the results of operations for the entire year or any subsequent interim period. These Condensed Consolidated Financial Statements should be read in conjunction with the Company’s 2021 Consolidated Financial Statements included in its Annual Report on Form 10-K filed with the Securities and Exchange Commission on February 23, 2022. |
New Accounting Pronouncements
New Accounting Pronouncements | 3 Months Ended |
Mar. 31, 2022 | |
Accounting Changes and Error Corrections [Abstract] | |
New Accounting Pronouncements | New 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 Codification (“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 have received government assistance and used a grant or contribution accounting model by analogy to other accounting guidance. The guidance is effective for financial statements issued for annual periods 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. |
Revenue Recognition
Revenue Recognition | 3 Months Ended |
Mar. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | Revenue Recognition Vacation Ownership The Company develops, markets, and sells VOIs to individual consumers, provides consumer financing in connection with the sale of VOIs, and provides property management services at resorts. The Company’s sales of VOIs are either cash sales or developer-financed sales. Developer-financed sales are typically collateralized by the underlying VOI. Revenue is recognized on VOI sales upon transfer of control, which is defined as the point in time when a binding sales contract has been executed, the financing contract has been executed for the remaining transaction price, the statutory rescission period has expired, and the transaction price has been deemed to be collectible. For developer-financed sales, the Company reduces the VOI sales transaction price by an estimate of uncollectible consideration at the time of the sale. The Company’s estimates of uncollectible amounts are based largely on the results of the Company’s static pool analysis which relies on historical payment data by customer class. In connection with entering into a VOI sale, the Company may provide its customers with certain non-cash incentives, such as credits for future stays at its resorts. For those VOI sales, the Company bifurcates the sale and allocates the sales price between the VOI sale and the non-cash incentive. Non-cash incentives generally have expiration periods of 18 months or less and are recognized at a point in time upon transfer of control. The Company provides day-to-day property management services including oversight of housekeeping services, maintenance, and certain accounting and administrative services for property owners’ associations and clubs. These services may also include reservation and resort renovation activities. Such agreements are generally for terms of one year or less and are renewed automatically on an annual basis. The Company’s management agreements contain cancellation clauses, which allow for either party to cancel the agreement, by either a majority board vote or a majority vote of non-developer interests. The Company receives fees for such property management services which are collected monthly in advance and are based upon total costs to operate such resorts (or as services are provided in the case of resort renovation activities). Fees for property management services typically approximate 10% of budgeted operating expenses. The Company is entitled to consideration for reimbursement of costs incurred on behalf of the property owners’ association in providing management services (“reimbursable revenue”). These reimbursable costs principally relate to the payroll costs for management of the associations, club and resort properties where the Company is the employer and are reflected as a component of Operating expenses on the Condensed Consolidated Statements of Income. The Company reduces its management fees for amounts it has paid to the property owners’ association that reflect maintenance fees for VOIs for which it retains ownership, as the Company has concluded that such payments are consideration payable to a customer. Property management fee revenues are recognized when the services are performed and are recorded as a component of Service and membership fees on the Condensed Consolidated Statements of Income. Property management revenues, which are comprised of management fee revenue and reimbursable revenue were (in millions): Three Months Ended March 31, 2022 2021 Management fee revenues $ 95 $ 88 Reimbursable revenues 85 69 Property management revenues $ 180 $ 157 One of the associations that the Company manages paid its Travel and Membership segment $8 million and $7 million for exchange services during the three months ended March 31, 2022 and 2021. 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 Travel Club 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. 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 March 31, 2022 and December 31, 2021, were as follows (in millions): March 31, December 31, 2021 Deferred subscription revenue $ 175 $ 166 Deferred VOI trial package revenue 84 85 Deferred exchange-related revenue (a) 62 61 Deferred VOI incentive revenue 56 55 Deferred co-branded credit card programs revenue 11 12 Deferred other revenue 4 3 Total $ 392 $ 382 (a) Includes contractual liabilities to accommodate members for cancellations initiated by the Company due to unexpected events. These amounts are included within Accrued expenses and other liabilities on the Condensed Consolidated Balance Sheets. In the Company’s Vacation Ownership business, deferred VOI trial package revenue represents consideration received in advance for a trial VOI, which allows customers to utilize a vacation package typically within one year of purchase. Deferred VOI incentive revenue represents payments received in advance for additional travel-related services and products at the time of a VOI sale. Revenue is recognized when a customer utilizes the additional services and products, which is typically within one year of the VOI sale. Within the Company’s Travel and Membership business, deferred subscription revenue represents billings and payments received in advance from members and affiliated clubs for memberships in the Company’s travel programs which are recognized in future periods. Deferred revenue primarily represents payments received in advance from members for the right to access the Company’s vacation travel network to book vacation exchanges 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 service and product revenues which is recognized as customers utilize the associated benefits. Changes in contract liabilities follow (in millions): Three Months Ended March 31, 2022 2021 Beginning balance $ 382 $ 448 Additions 85 74 Revenue recognized (75) (86) Ending balance $ 392 $ 436 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 March 31, 2022 and December 31, 2021, these capitalized costs were $27 million and $28 million and are included within Other assets on the Condensed Consolidated Balance Sheets. The Travel and Membership segment incurs certain direct and incremental selling costs to obtain contracts with customers in connection with subscription revenues and exchange–related revenues. Such costs, which are primarily comprised of commissions paid to internal and external parties and credit card processing fees, are deferred at the inception of the contract and recognized when the benefit is transferred to the customer. As of March 31, 2022 and December 31, 2021, these capitalized costs were $18 million and $19 million; and are included within Other assets on the Condensed Consolidated Balance Sheets. Practical Expedients The Company has not adjusted the consideration for the effects of a significant financing component if it expected, at contract inception, that the period between when the Company will satisfy the performance obligation and when the customer will pay for that good or service will be one year or less. Performance Obligations A performance obligation is a promise in a contract with a customer to transfer a distinct good or service to the customer. The consideration received from a customer is allocated to each distinct performance obligation and recognized as revenue when, or as, each performance obligation is satisfied. The following table summarizes the Company’s remaining performance obligations for the 12-month periods set forth below (in millions): 4/1/2022 - 3/31/2023 4/1/2023 - 3/31/2024 4/1/2024 - 3/31/2025 Thereafter Total Subscription revenue $ 101 $ 39 $ 18 $ 17 $ 175 VOI trial package revenue 81 1 2 — 84 Exchange-related revenue 58 3 1 — 62 VOI incentive revenue 56 — — — 56 Co-branded credit card programs revenue 3 3 3 2 11 Other revenue 4 — — — 4 Total $ 303 $ 46 $ 24 $ 19 $ 392 Disaggregation of Net Revenues The table below presents a disaggregation of the Company’s net revenues from contracts with customers by major services and products for each of the Company’s segments (in millions): Three Months Ended March 31, 2022 2021 Vacation Ownership Vacation ownership interest sales $ 297 $ 172 Property management fees and reimbursable revenues 180 157 Consumer financing 98 98 Fee-for-Service commissions 17 12 Ancillary revenues 12 10 Total Vacation Ownership 604 449 Travel and Membership Transaction revenues 156 132 Subscription revenues 45 41 Ancillary revenues 9 10 Total Travel and Membership 210 183 Corporate and other Eliminations (5) (4) Total Corporate and other (5) (4) Net revenues $ 809 $ 628 |
Earnings_(Loss) Per Share
Earnings/(Loss) Per Share | 3 Months Ended |
Mar. 31, 2022 | |
Earnings Per Share Reconciliation [Abstract] | |
Earnings Per Share | Earnings Per Share The computations of basic and diluted earnings per share (“EPS”) are based on Net income attributable to Travel + Leisure Co. shareholders divided by the basic weighted average number of common shares and diluted weighted average number of common shares outstanding. The following table sets forth the computations of basic and diluted EPS (in millions, except per share data): Three Months Ended March 31, 2022 2021 Net income attributable to Travel + Leisure Co. shareholders $ 51 $ 29 Earnings per share (a) Basic $ 0.59 $ 0.33 Diluted $ 0.59 $ 0.33 Basic weighted average shares outstanding 85.9 86.3 Stock-settled appreciation rights (“SSARs”), RSUs, (b) PSUs (c) and NQs (d) 1.1 0.6 Diluted weighted average shares outstanding (e) 87.0 86.9 Dividends: Aggregate dividends paid to shareholders $ 35 $ 26 (a) Earnings per share amounts are calculated using whole numbers. (b) Excludes 0.6 million and 0.2 million of restricted stock units (“RSUs”) that would have been anti-dilutive to EPS for the three months ended March 31, 2022 and 2021. These shares could potentially dilute EPS in the future. (c) Excludes performance-vested restricted stock units (“PSUs”) of 0.6 million and 0.4 million for the three months ended March 31, 2022 and 2021 as the Company had not met the required performance metrics. These PSUs could potentially dilute EPS in the future. (d) Excludes 1.1 million and 1.5 million of outstanding non-qualified stock option (“NQs”) awards that would have been anti-dilutive to EPS for the three months ended March 31, 2022 and 2021. 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. Share Repurchase Program The following table summarizes stock repurchase activity under the current share repurchase program (in millions): Shares Cost As of December 31, 2021 111.8 $ 5,753 Repurchases 0.8 45 As of March 31, 2022 112.6 $ 5,798 Since the inception of the Company’s share repurchase program, proceeds received from stock option exercises have increased the repurchase capacity by $81 million. As of March 31, 2022, the Company had $283 million of remaining availability under its program. Subsequent to the end of the quarter, the Company’s Board of Directors increased the authorization for the Company’s share repurchase program by $500 million. |
Acquisitions
Acquisitions | 3 Months Ended |
Mar. 31, 2022 | |
Business Combinations [Abstract] | |
Acquisitions | Acquisitions Travel + Leisure. On January 5, 2021, the Company acquired the Travel + Leisure brand from Meredith Corporation for $100 million, $35 million of which was paid at closing and is reflected as cash used in Investing activities on the Condensed Consolidated Statements of Cash Flows. The Company made an additional payment of $20 million during the second quarter of 2021 and will make the next $20 million payment in the second quarter of 2022. 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. |
Vacation Ownership Contract Rec
Vacation Ownership Contract Receivables | 3 Months Ended |
Mar. 31, 2022 | |
Vacation Ownership Contract Receivables [Abstract] | |
Vacation Ownership Contract Receivables | Vacation Ownership Contract Receivables The Company generates vacation ownership contract receivables (“VOCRs”) by extending financing to the purchasers of its VOIs. Vacation ownership contract receivables, net consisted of (in millions): March 31, December 31, Vacation ownership contract receivables: Securitized (a) $ 2,053 $ 2,061 Non-securitized (b) 702 758 Vacation ownership contract receivables, gross 2,755 2,819 Less: allowance for loan losses 494 510 Vacation ownership contract receivables, net $ 2,261 $ 2,309 (a) Excludes $16 million and $17 million of accrued interest on VOCRs as of March 31, 2022 and December 31, 2021, which are included in Trade receivables, net on the Condensed Consolidated Balance Sheets. (b) Excludes $6 million and $5 million of accrued interest on VOCRs as of March 31, 2022 and December 31, 2021, which are included in Trade receivables, net on the Condensed Consolidated Balance Sheets. During the three months ended March 31, 2022 and 2021, the Company’s securitized VOCRs generated interest income of $69 million and $79 million. Such interest income is included within Consumer financing revenue on the Condensed Consolidated Statements of Income. During the three months ended March 31, 2022 and 2021, the Company had net VOCR originations of $218 million and $103 million, and received principal collections of $221 million and $193 million. The weighted average interest rate on outstanding VOCRs was 14.6% and 14.5% as of March 31, 2022 and December 31, 2021. The activity in the allowance for loan losses on VOCRs was as follows (in millions): Three Months Ended March 31, 2022 2021 Allowance for loan losses, beginning balance $ 510 $ 693 Provision for loan losses, net 48 38 Contract receivables write-offs, net (64) (109) Allowance for loan losses, ending balance $ 494 $ 622 Due to the economic downturn resulting from the novel coronavirus global pandemic (“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 Condensed Consolidated Statements of Income. Since the first quarter of 2020, the Company has performed a quarterly 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 a total of $111 million with a corresponding $40 million increase in Cost of vacation ownership interests. There were no adjustments in the first quarter of 2022 or 2021. After considering write-offs and the allowance for remaining likely defaults associated with loans that were granted payment deferrals, the Company has not had a COVID-19 related allowance since December 31, 2021. The Company recorded net provisions for loan losses of $48 million and $38 million as a reduction of net revenues during the three months ended March 31, 2022 and 2021. 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 March 31, 2022 700+ 600-699 <600 No Score Asia Pacific Total Current $ 1,593 $ 720 $ 104 $ 71 $ 168 $ 2,656 31 - 60 days 14 17 8 2 1 42 61 - 90 days 9 12 8 1 — 30 91 - 120 days 6 10 10 1 — 27 Total (a) $ 1,622 $ 759 $ 130 $ 75 $ 169 $ 2,755 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 (a) Includes contracts under temporary deferment (up to 180 days) of $5 million and $7 million as of March 31, 2022 and December 31, 2021. The Company ceases to accrue interest on VOI contract receivables once the contract has remained delinquent for greater than 90 days and reverses all of the associated accrued interest recognized to date against interest income included within Consumer financing revenue on the Condensed Consolidated Statements of Income. At greater than 120 days, the VOI contract receivable is written off to the allowance for loan losses. In accordance with its policy, the Company assesses the allowance for loan losses using a static pool methodology and thus does not assess individual loans for impairment. The following table details the year of origination of financing receivables using the most recently updated FICO scores, based on the policy described above (in millions): As of March 31, 2022 700+ 600-699 <600 No Score Asia Pacific Total 2022 $ 170 $ 48 $ — $ 10 $ 25 $ 253 2021 455 229 27 6 34 751 2020 196 89 17 5 22 329 2019 276 142 33 16 30 497 2018 218 104 22 13 22 379 Prior 307 147 31 25 36 546 Total $ 1,622 $ 759 $ 130 $ 75 $ 169 $ 2,755 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 |
Inventory
Inventory | 3 Months Ended |
Mar. 31, 2022 | |
Inventory Disclosure [Abstract] | |
Inventory | Inventory Inventory consisted of (in millions): March 31, December 31, Completed VOI inventory $ 916 $ 998 Estimated VOI recoveries 180 187 VOI construction in process 15 13 Inventory sold subject to repurchase 13 13 Vacation exchange credits and other 4 4 Land held for VOI development 1 1 Total inventory $ 1,129 $ 1,216 The Company had net transfers of VOI inventory to property and equipment of $70 million and $10 million during the three months ended March 31, 2022 and 2021. Inventory Sale Transactions During 2020, the Company acquired properties in Orlando, Florida, and Moab, Utah, from third-party developers for vacation ownership inventory and property and equipment. During 2013, the Company sold real property located in Las Vegas, Nevada, to a third-party developer, consisting of vacation ownership inventory and property and equipment. The Company recognized no gain or loss on this sale transaction. In accordance with the agreements with the third-party developers, the Company has conditional rights and conditional obligations to repurchase the completed properties from the developers subject to the properties conforming to the Company’s vacation ownership resort standards and provided that the third-party developers have not sold the properties to another party. Under the sale of real estate accounting guidance, the conditional rights and obligations of the Company constitute continuing involvement and thus the Company was unable to account for these transactions as a sale. The following table summarizes the activity related to the Company’s inventory obligations (in millions): Las Vegas (a) Moab (a) Orlando (a) Other (b) Total December 31, 2021 $ 13 $ — $ — $ 1 $ 14 Purchases — — — 19 19 Payments — — — (13) (13) March 31, 2022 $ 13 $ — $ — $ 7 $ 20 December 31, 2020 $ 13 $ 31 $ 22 $ 17 $ 83 Purchases — 25 — 19 44 Payments — (56) — (22) (78) March 31, 2021 $ 13 $ — $ 22 $ 14 $ 49 (a) Included in Accrued expenses and other liabilities on the Condensed Consolidated Balance Sheets. (b) Included in Accounts payable on the Condensed Consolidated Balance Sheets. The Company has committed to repurchase the completed property located in Las Vegas, Nevada, from a third-party developer subject to the property meeting the Company’s vacation ownership resort standards and provided that the third-party developer has not sold the property to another party. The maximum potential future payments that the Company may be required to make under this commitment was $65 million as of March 31, 2022. |
Property and equipment
Property and equipment | 3 Months Ended |
Mar. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment Disclosure [Text Block] | Property and Equipment Property and equipment, net, consisted of (in millions): March 31, December 31, 2021 Building and leasehold improvements $ 718 $ 653 Capitalized software 710 707 Furniture, fixtures and equipment 207 204 Land 30 30 Construction in progress 23 18 Finance leases 21 20 Total property and equipment 1,709 1,632 Less: accumulated depreciation and amortization 966 943 Property and equipment, net $ 743 $ 689 |
Debt
Debt | 3 Months Ended |
Mar. 31, 2022 | |
Debt Disclosure [Abstract] | |
Debt | Debt The Company’s indebtedness consisted of (in millions): March 31, December 31, Non-recourse vacation ownership debt : (a) Term notes (b) $ 1,658 $ 1,614 USD bank conduit facility (due July 2024) (c) 163 190 AUD/NZD bank conduit facility (due April 2023) (d) 128 130 Total $ 1,949 $ 1,934 Debt : (e) $1.0 billion secured revolving credit facility (due October 2026) (f) $ — $ — $300 million secured term loan B (due May 2025) (g) 288 288 $400 million 3.90% secured notes (due March 2023) (h) 401 401 $300 million 5.65% secured notes (due April 2024) 299 299 $350 million 6.60% secured notes (due October 2025) (i) 345 345 $650 million 6.625% secured notes (due July 2026) 643 643 $400 million 6.00% secured notes (due April 2027) (j) 407 407 $650 million 4.50% secured notes (due December 2029) 641 641 $350 million 4.625% secured notes (due March 2030) 346 346 Finance leases 9 9 Total $ 3,379 $ 3,379 (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 $2.2 billion and $2.17 billion of underlying gross VOCRs and related assets (which legally are not assets of the Company) as of March 31, 2022 and December 31, 2021. (b) The carrying amounts of the term notes are net of deferred financing costs of $20 million and $18 million as of March 31, 2022 and December 31, 2021. (c) The Company has a borrowing capacity of $600 million under the USD bank conduit facility through July 2024. Borrowings under this facility are required to be repaid as the collateralized receivables amortize but no later than August 2025. (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 $19 million and $20 million as of March 31, 2022 and December 31, 2021, and net of unamortized debt financing costs of $7 million and $8 million as of March 31, 2022 and December 31, 2021. (f) The weighted average effective interest rate on borrowings from this facility were 4.59% and 3.19% as of March 31, 2022 and December 31, 2021. (g) The weighted average effective interest rate on borrowings from this facility was 2.39% as of March 31, 2022 and December 31, 2021. (h) Includes $1 million and $2 million of unamortized gains from the settlement of a derivative as of March 31, 2022 and December 31, 2021. (i) Includes $4 million of unamortized losses from the settlement of a derivative as of March 31, 2022 and December 31, 2021. (j) Includes $9 million of unamortized gains from the settlement of a derivative as of March 31, 2022 and December 31, 2021. Sierra Timeshare 2022-1 Receivables Funding LLC On March 23, 2022, the Company closed on a placement of a series of term notes payable, issued by Sierra Timeshare 2022-1 Receivables Fundings LLC, with an initial principal amount of $275 million, secured by VOCRs and bearing interest at a weighted average coupon rate of 3.84%. The advance rate for this transaction was 98%. USD Bank Conduit Renewal On March 4, 2022, the Company renewed its USD timeshare receivables conduit facility, extending the end of the commitment period from October 2022 to July 2024. The renewal includes a reduction of the USD borrowing capacity from $800 million to $600 million. The facility bears interest based on variable commercial paper rates plus a spread or the Daily Simple Secured Overnight Financing Rate (“SOFR”), plus a spread. Maturities and Capacity The Company’s outstanding debt as of March 31, 2022, matures as follows (in millions): Non-recourse Vacation Ownership Debt Debt Total Within 1 year $ 224 $ 408 $ 632 Between 1 and 2 years 256 6 262 Between 2 and 3 years 230 303 533 Between 3 and 4 years 303 625 928 Between 4 and 5 years 207 643 850 Thereafter 729 1,394 2,123 $ 1,949 $ 3,379 $ 5,328 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 March 31, 2022, available capacity under the Company’s borrowing arrangements was as follows (in millions): Non-recourse Conduit Facilities (a) Revolving Credit Facilities (b) Total capacity $ 824 $ 1,000 Less: outstanding borrowings 291 — Less: letters of credit — 2 Available capacity $ 533 $ 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. 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 2.50 to 1.0 as of the measurement date and a maximum first lien leverage ratio not to exceed 4.25 to 1.0 as of the measurement date. The interest coverage ratio is calculated by dividing consolidated EBITDA (as defined in the credit agreement) by consolidated interest expense (as defined in the credit agreement), both as measured on a trailing 12-month basis preceding the measurement date. The first lien leverage ratio is calculated by dividing consolidated first lien debt (as defined in the credit agreement) as of the measurement date by consolidated EBITDA (as defined in the credit agreement) as measured on a trailing 12-month basis preceding the measurement date. As a precautionary measure during 2020, the Company 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”). Among other changes, the First Amendment established Relief Period restrictions regarding share repurchases, dividends, and acquisitions. During 2021, the Company renewed the credit agreement governing the revolving credit facilities and term loan B (“Second Amendment”). The Second Amendment terminated the Relief Period and the aforementioned Relief Period restrictions. Additionally, the Second Amendment stipulated a first lien leverage ratio financial covenant not to exceed 4.75 to 1.0 which commenced with the December 31, 2021 period and extends through June 30, 2022, after which time it will return to 4.25 to 1.0 and reestablished the interest coverage ratio (as defined in the credit agreement) of no less than 2.50 to 1.0, the levels in place prior to COVID-19. The Second Amendment also reestablished the tiered pricing grid that was in place prior to COVID-19. 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 March 31, 2022, the Company’s interest coverage ratio was 4.32 to 1.0 and the first lien leverage ratio was 3.79 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 March 31, 2022, the Company was in compliance with 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 VOCRs pool that collateralizes one of the Company’s securitization notes fails to perform within the parameters established by the contractual triggers (such as higher default or delinquency rates), there are provisions pursuant to which the cash flows for that pool will be maintained in the securitization as extra collateral for the note holders or applied to accelerate the repayment of outstanding principal to the note holders. As of March 31, 2022, all of the Company’s securitized loan pools were in compliance with applicable contractual triggers. Interest Expense The Company incurred interest expense of $47 million during the three months ended March 31, 2022, 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 $41 million during the three months ended March 31, 2022. The Company incurred interest expense of $53 million during the three months ended March 31, 2021, 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 $70 million during the three months ended March 31, 2021. Interest expense incurred in connection with the Company’s non-recourse vacation ownership debt was $17 million during the three months ended March 31, 2022, and $24 million during the three months ended March 31, 2021, and is recorded within Consumer financing interest on the Condensed Consolidated Statements of Income. Cash paid related to such interest was $11 million and $17 million for the three months ended March 31, 2022 and 2021. |
Variable Interest Entities
Variable Interest Entities | 3 Months Ended |
Mar. 31, 2022 | |
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 variable interest entity (“VIE”). If the entity is deemed to be a VIE, the Company consolidates those VIEs for which the Company is the primary beneficiary. Vacation Ownership Contract Receivables Securitizations The Company pools qualifying VOCRs and sells them to bankruptcy-remote entities. VOCRs qualify for securitization based primarily on the credit strength of the VOI purchaser to whom financing has been extended. VOCRs are securitized through bankruptcy-remote SPEs that are consolidated within the Company’s Condensed Consolidated Financial Statements. As a result, the Company does not recognize gains or losses resulting from these securitizations at the time of sale to the SPEs. Interest income is recognized when earned over the contractual life of the VOCRs. The Company services the securitized VOCRs pursuant to servicing agreements negotiated on an arm’s-length basis based on market conditions. The activities of these SPEs are limited to (i) purchasing VOCRs from the Company’s vacation ownership subsidiaries, (ii) issuing debt securities and/or borrowing under a conduit facility to fund such purchases, and (iii) entering into derivatives to hedge interest rate exposure. The bankruptcy-remote SPEs are legally separate from the Company. The receivables held by the bankruptcy-remote SPEs are not available to creditors of the Company and legally are not assets of the Company. Additionally, the non-recourse debt that is securitized through the SPEs is legally not a liability of the Company and thus, the creditors of these SPEs have no recourse to the Company for principal and interest. The assets and liabilities of these vacation ownership SPEs are as follows (in millions): March 31, December 31, Securitized contract receivables, gross (a) $ 2,053 $ 2,061 Securitized restricted cash (b) 114 84 Interest receivables on securitized contract receivables (c) 16 17 Other assets (d) 14 4 Total SPE assets 2,197 2,166 Non-recourse term notes (e) (f) 1,658 1,614 Non-recourse conduit facilities (e) 291 320 Other liabilities (g) 2 2 Total SPE liabilities 1,951 1,936 SPE assets in excess of SPE liabilities $ 246 $ 230 (a) Included in Vacation ownership contract receivables, net on the Condensed Consolidated Balance Sheets. (b) Included in Restricted cash on the Condensed Consolidated Balance Sheets. (c) Included in Trade receivables, net on the Condensed Consolidated Balance Sheets. (d) Primarily includes deferred financing costs for the bank conduit facility and a security investment asset, which is included in Other assets on the Condensed Consolidated Balance Sheets. (e) Included in Non-recourse vacation ownership debt on the Condensed Consolidated Balance Sheets. (f) Includes deferred financing costs of $20 million and $18 million as of March 31, 2022 and December 31, 2021, related to non-recourse debt. (g) Primarily includes accrued interest on non-recourse debt, which is included in Accrued expenses and other liabilities on the Condensed Consolidated Balance Sheets. In addition, the Company has VOCRs that have not been securitized through bankruptcy-remote SPEs. Such gross receivables were $702 million and $758 million as of March 31, 2022 and December 31, 2021. 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): March 31, December 31, SPE assets in excess of SPE liabilities $ 246 $ 230 Non-securitized contract receivables 702 758 Less: allowance for loan losses 494 510 Total, net $ 454 $ 478 |
Fair Value
Fair Value | 3 Months Ended |
Mar. 31, 2022 | |
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. As of March 31, 2022, 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 Condensed 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 March 31, 2022 and 2021. 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): March 31, 2022 December 31, 2021 Carrying Estimated Fair Value Carrying Estimated Fair Value Assets Vacation ownership contract receivables, net (Level 3) $ 2,261 $ 2,807 $ 2,309 $ 2,858 Liabilities Debt (Level 2) $ 5,328 $ 5,324 $ 5,313 $ 5,514 The Company estimates the fair value of its VOCRs using a discounted cash flow model which it believes is comparable to the model that an independent third-party would use in the current market. The model uses Level 3 inputs consisting of default rates, prepayment rates, coupon rates, and loan terms for the contract receivables portfolio as key drivers of risk and relative value that, when applied in combination with pricing parameters, determines the fair value of the underlying contract receivables. The Company estimates the fair value of its non-recourse vacation ownership debt by obtaining Level 2 inputs comprised of indicative bids from investment banks that actively issue and facilitate the secondary market for timeshare securities. The Company estimates the fair value of its debt, excluding finance leases, using Level 2 inputs based on indicative bids from investment banks and determines the fair value of its secured notes using quoted market prices (such secured notes are not actively traded). 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. During the fourth quarter of 2021, Vacasa merged with a publicly traded special purpose acquisition company and began trading on the Nasdaq Global Select market. As of both March 31, 2022 and 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). |
Derivative Instruments And Hedg
Derivative Instruments And Hedging Activities | 3 Months Ended |
Mar. 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments And Hedging Activities | Derivative Instruments and Hedging Activities Foreign Currency Risk The Company has foreign currency rate exposure to exchange rate fluctuations worldwide with particular exposure to the Euro, British pound sterling, Australian and Canadian dollars, and Mexican peso. The Company uses freestanding foreign currency forward contracts to manage a portion of its exposure to changes in foreign currency exchange rates associated with its foreign currency denominated receivables, payables, and forecasted earnings of foreign subsidiaries. Additionally, the Company has used foreign currency forward contracts designated as cash flow hedges to manage a portion of its exposure to changes in forecasted foreign currency denominated vendor payments. The amount of gains or losses relating to contracts designated as cash flow hedges that the Company expects to reclassify from Accumulated other comprehensive loss (“AOCL”) to earnings over the next 12 months is not material. Interest Rate Risk A portion of the debt used to finance the Company’s operations is exposed to interest rate fluctuations. The Company periodically uses financial derivatives to strategically adjust its mix of fixed to floating rate debt. The derivative instruments utilized include interest rate swaps which convert fixed–rate debt into variable–rate debt (i.e. fair value hedges) and interest rate caps (undesignated hedges) to manage the overall interest cost. For relationships designated as fair value hedges, changes in fair value of the derivatives are recorded in income, with offsetting adjustments to the carrying amount of the hedged debt. As of March 31, 2022 and 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 three months ended March 31, 2022 and 2021. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company files U.S. federal, state, and foreign income tax returns in jurisdictions with varying statutes of limitations. The Company is no longer subject to U.S. federal income tax examinations for years prior to 2016. In addition, with few exceptions, the Company is no longer subject to state, local, or foreign income tax examinations for years prior to 2011. The Company’s effective tax rate was 31.3% and 17.1% for the three months ended March 31, 2022 and 2021. The change in the effective tax rate is primarily due to excess benefits from stock-based compensation recognized during the three months ended March 31, 2021. The effective tax rate for the three months ended March 31, 2022 also increased due to statutory changes as well as increases to unrecognized tax benefits. |
Leases
Leases | 3 Months Ended |
Mar. 31, 2022 | |
Leases [Abstract] | |
Lessee, Finance Leases | Leases The Company leases property and equipment under finance and operating leases for its corporate headquarters, administrative functions, marketing and sales offices, and various other facilities and equipment. For leases with terms greater than 12 months, the Company records the related asset and obligation at the present value of lease payments over the term. Many of its leases include rental escalation clauses, lease incentives, renewal options and/or termination options that are factored into the Company’s determination of lease payments. The Company elected the hindsight practical expedient to determine the reasonably certain lease term for existing leases. The Company also made an accounting policy election to keep leases with an initial term of 12 months or less off the balance sheet and recognize the associated lease payments on a straight-line basis over the lease term in the Condensed Consolidated Statements of Income. When available, the Company uses the rate implicit in the lease to discount lease payments to present value; however, most of its leases do not provide a readily determinable implicit rate. Therefore, the Company must estimate its incremental borrowing rate to discount the lease payments based on information available at lease commencement. The majority of the Company’s leases have remaining lease terms of one The table below presents information related to the lease costs for finance and operating leases (in millions): Three Months Ended March 31, 2022 2021 Operating lease cost $ 6 $ 6 Short-term lease cost $ 3 $ 3 Finance lease cost: Amortization of right-of-use assets $ 1 $ 1 Interest on lease liabilities — — Total finance lease cost $ 1 $ 1 The table below presents the lease-related assets and liabilities recorded on the Condensed Consolidated Balance Sheets: Balance Sheet Classification March 31, 2022 December 31, 2021 Operating leases (in millions): Operating lease right-of-use assets Other assets $ 73 $ 79 Operating lease liabilities Accrued expenses and other liabilities $ 128 $ 136 Finance leases (in millions): Finance lease assets (a) Property and equipment, net $ 10 $ 10 Finance lease liabilities Debt $ 9 $ 9 Weighted average remaining lease term: Operating leases 6.2 years 6.4 years Finance leases 2.5 years 2.6 years Weighted average discount rate: Operating leases (b) 5.8 % 5.8 % Finance leases 4.3 % 4.4 % (a) Presented net of accumulated depreciation. (b) Upon adoption of the lease standard, discount rates used for existing leases were established at January 1, 2019. The table below presents supplemental cash flow information related to leases (in millions): Three Months Ended March 31, 2022 2021 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 8 $ 10 Operating cash flows from finance leases $ — $ — Financing cash flows from finance leases $ 1 $ 1 Right-of-use assets obtained in exchange for lease obligations: Operating leases (a) $ (1) $ — Finance leases $ 1 $ — (a) Includes write-off of right-of-use assets during the three months ended March 31, 2022. The table below presents maturities of lease liabilities as of March 31, 2022 (in millions): Operating Leases Finance Nine months ending December 31, 2022 $ 24 $ 4 2023 30 4 2024 28 2 2025 23 — 2026 14 — Thereafter 34 — Total minimum lease payments 153 10 Less: amount of lease payments representing interest (25) (1) Present value of future minimum lease payments $ 128 $ 9 |
Commitments And Contingencies
Commitments And Contingencies | 3 Months Ended |
Mar. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments And Contingencies | Commitments and Contingencies The Company is involved in claims, legal and regulatory proceedings, and governmental inquiries related to its business, none of which, in the opinion of management, is expected to have a material effect on the Company’s results of operations or financial condition. Travel + Leisure Co. Litigation The Company may be from time to time involved in claims, legal and regulatory proceedings, and governmental inquiries arising in the ordinary course of its business including but not limited to: for its Vacation Ownership business — breach of contract, bad faith, conflict of interest, fraud, consumer protection and other statutory claims by property owners’ associations, owners and prospective owners in connection with the sale or use of VOIs or land, or the management of vacation ownership resorts, construction defect claims relating to vacation ownership units or resorts or in relation to guest reservations and bookings; and negligence, breach of contract, fraud, consumer protection and other statutory claims by guests and other consumers for alleged injuries sustained at or acts or occurrences related to vacation ownership units or resorts or in relation to guest reservations and bookings; for its Travel and Membership business — breach of contract, fraud and bad faith claims by affiliates and customers in connection with their respective agreements, negligence, breach of contract, fraud, consumer protection and other statutory claims asserted by members, guests and other consumers for alleged injuries sustained at or acts or occurrences related to affiliated resorts, or in relation to guest reservations and bookings; and for each of its businesses, bankruptcy proceedings involving efforts to collect receivables from a debtor in bankruptcy, employment matters including but not limited to, claims of wrongful termination, retaliation, discrimination, harassment and wage and hour claims, whistleblower claims, claims of infringement upon third parties’ intellectual property rights, claims relating to information security, privacy and consumer protection, fiduciary duty/trust claims, tax claims, environmental claims, and landlord/tenant disputes. The Company records an accrual for legal contingencies when it determines, after consultation with outside counsel where appropriate, that it is probable that a liability has been incurred and the amount of the loss can be reasonably estimated. In making such determinations, the Company evaluates, among other things, the degree of probability of an unfavorable outcome and, when it is probable that a liability has been incurred, the Company’s ability to make a reasonable estimate of loss. The Company reviews these accruals each fiscal quarter and makes revisions based on changes in facts and circumstances including changes to its strategy in dealing with these matters. The Company believes that it has adequately accrued for such matters wit h reserves of $21 million and $19 million as of March 31, 2022 and December 31, 2021. L itigation is inherently unpredictable and, although the Company believes that its accruals are adequate and/or that it has valid defenses in these matters, unfavorable results could occur. As such, an adverse outcome from such proceedings for which claims are awarded in excess of the amounts accrued, if any, could be material to the Company with respect to earnings and/or cash flows in any given reporting period. As of March 31, 2022, it is estimated that the potential exposure resulting from adverse outcomes of such legal proceedings could, in the aggregate, range up to $32 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 of Wyndham Hotels & Resorts, Inc. (“Wyndham Hotels”) (“Spin-off”), and matters relating to the sale of the vacation rentals businesses, which are discussed in Note 21— Transactions with Former Parent and Former Subsidiaries . However, the Company does not believe that the impact of such litigation should result in a material liability to the Company in relation to its consolidated financial position and/or liquidity. For matters deemed reasonably possible, therefore not requiring accrual, the Company believes that such matters will not have a material effect on its results of operations, financial position, or cash flows based on information currently available. As of March 31, 2022, 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 7— Inventory for additional details. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive (Loss)/Income | 3 Months Ended |
Mar. 31, 2022 | |
Equity [Abstract] | |
Accumulated Other Comprehensive (Loss)/Income | Accumulated Other Comprehensive (Loss)/Income The components of accumulated other comprehensive loss are as follows (in millions): Foreign Unrealized Accumulated Currency (Losses)/Gains Other Translation on Cash Flow Comprehensive Pretax Adjustments Hedges (Loss)/Income Balance, December 31, 2021 $ (145) $ (1) $ (146) Other comprehensive income 3 — 3 Balance, March 31, 2022 $ (142) $ (1) $ (143) Tax Balance, December 31, 2021 $ 97 $ 1 $ 98 Other comprehensive income — — — Balance, March 31, 2022 $ 97 $ 1 $ 98 Net of Tax Balance, December 31, 2021 $ (48) $ — $ (48) Other comprehensive income 3 — 3 Balance, March 31, 2022 $ (45) $ — $ (45) Foreign Unrealized Accumulated Currency (Losses)/Gains Other Translation on Cash Flow Comprehensive Pretax Adjustments Hedges (Loss)/Income Balance, December 31, 2020 $ (113) $ (1) $ (114) Other comprehensive loss (14) — (14) Balance, March 31, 2021 $ (127) $ (1) $ (128) Tax Balance, December 31, 2020 $ 97 $ 1 $ 98 Other comprehensive income 1 — 1 Balance, March 31, 2021 $ 98 $ 1 $ 99 Net of Tax Balance, December 31, 2020 $ (16) $ — $ (16) Other comprehensive loss (13) — (13) Balance, March 31, 2021 $ (29) $ — $ (29) Currency translation adjustments exclude income taxes related to investments in foreign subsidiaries where the Company intends to reinvest the undistributed earnings indefinitely in those foreign operations. There were no reclassifications out of AOCL for the three months ended March 31, 2022 or 2021. |
Stock-Based Compensation
Stock-Based Compensation | 3 Months Ended |
Mar. 31, 2022 | |
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 March 31, 2022, 10.7 million shares remain available. Incentive Equity Awards Granted by the Company During the three months ended March 31, 2022, the Company granted incentive equity awards to key employees and senior officers totaling $30 million in the form of RSUs and $13 million in the form of PSUs. Of these awards, the majority of RSUs will vest ratably over a period of four years. The majority of PSUs will cliff vest on the third anniversary of the grant date, contingent upon the Company achieving certain performance metrics. During the three months ended March 31, 2021, the Company granted incentive equity awards to key employees and senior officers totaling $33 million in the form of RSUs, $7 million in the form of PSUs, and $2 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 three months ended March 31, 2022, consisted of the following (in millions, except grant prices): Balance, December 31, 2021 Granted Vested /Exercised (a) Cancelled / Forfeited (b) Balance, March 31, 2022 RSUs Number of RSUs 1.8 0.6 (0.4) — 2.0 (c) Weighted average grant price $ 47.83 $ 52.87 $ 48.87 $ — $ 49.10 PSUs Number of PSUs 0.4 0.3 — (0.1) 0.6 (d) Weighted average grant price $ 48.18 $ 52.87 $ — $ 44.43 $ 51.30 NQs Number of NQs 2.3 — — — 2.3 (e) Weighted average grant price $ 45.32 $ — $ — $ — $ 45.33 (a) Upon exercise of NQs and upon vesting of RSUs and PSUs, the Company issues new shares to participants. (b) The Company recognizes cancellations and forfeitures as they occur. (c) Aggregate unrecognized compensation expense related to RSUs was $70 million as of March 31, 2022, which is expected to be recognized over a weighted average period of 2.9 years. (d) Aggregate unrecognized compensation expense related to PSUs that are probable of vesting was $9 million as of March 31, 2022, which is expected to be recognized over a weighted average period of 2.9 years. The maximum amount of compensation expense associated with PSUs that are not probable of vesting could range up to $20 million over a weighted average period of 2.0 years. (e) There were 1.3 million NQs which were exercisable as of March 31, 2022. These exercisable NQs will expire over a weighted average period of 6.9 years and carry a weighted average grant date fair value of $8.53. Unrecognized compensation expense for NQs was $7 million as of March 31, 2022, which is expected to be recognized over a weighted average period of 2.2 years. The Company did not grant any stock options during the first quarter of 2022. The fair value of stock options granted by the Company during 2021 was estimated on the date 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 Grant date fair value $18.87 Grant date strike price $59.00 Expected volatility 44.80% Expected life (a) 6.25 years Risk-free interest rate 1.09% Projected dividend yield 3.12% (a) The maximum contractual term for these options is 10 years. The total intrinsic value of exercised options was less than $1 million during the three months ended March 31, 2022 and $1 million during the three months ended March 31, 2021. The grant date fair value of options that vested during the three months ended March 31, 2022 and 2021 were $3 million and $2 million. Stock-Based Compensation Expense The Company recorded stock-based compensation expense related to incentive equity awards granted to key employees, senior officers, and non-employee directors of $12 million and $7 million during the three months ended March 31, 2022, and 2021. Stock-based compensation expense of $3 million has been classified within Restructuring on the Condensed Consolidated Statements of Income for the three months ended March 31, 2022. The Company recognized $3 million and $2 million of associated tax benefits during the three months ended March 31, 2022 and 2021. The Company paid $5 million and $7 million of taxes for the net share settlement of incentive equity awards that vested during the three months ended March 31, 2022 and 2021. Such amounts are included within Financing activities on the Condensed Consolidated Statements of Cash Flows. |
Segment Information
Segment Information | 3 Months Ended |
Mar. 31, 2022 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information The Company has two reportable segments: Vacation Ownership and Travel and Membership. The reportable segments presented below are those for which discrete financial information is available and which are utilized on a regular basis by the chief operating decision maker to assess performance and to allocate resources. In identifying its reportable segments, the Company also considers the nature of services provided by its operating segments. Management uses net revenues and Adjusted EBITDA to assess the performance of the reportable segments. Adjusted EBITDA is defined by the Company as Net income from continuing operations before Depreciation and amortization, Interest expense (excluding Consumer financing interest), early extinguishment of debt, Interest income (excluding Consumer financing revenues) and income taxes. Adjusted EBITDA also excludes stock-based compensation costs, separation and restructuring costs, legacy items, transaction costs for acquisitions and divestitures, 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): Three Months Ended March 31, Net revenues 2022 2021 Vacation Ownership $ 604 $ 449 Travel and Membership 210 183 Total reportable segments 814 632 Corporate and other (a) (5) (4) Total Company $ 809 $ 628 Three Months Ended March 31, Reconciliation of Net income to Adjusted EBITDA 2022 2021 Net income attributable to Travel + Leisure Co. shareholders $ 51 $ 29 Provision for income taxes 23 6 Depreciation and amortization 30 31 Interest expense 47 53 Interest (income) (1) (1) Stock-based compensation 9 7 Restructuring (b) 7 (1) COVID-19 related costs (c) 2 1 Legacy items 1 4 Asset impairments 1 — Adjusted EBITDA $ 170 $ 129 Three Months Ended March 31, Adjusted EBITDA 2022 2021 Vacation Ownership $ 103 $ 66 Travel and Membership 84 75 Total reportable segments 187 141 Corporate and other (a) (17) (12) Total Company $ 170 $ 129 (a) Includes the elimination of transactions between segments. (b) Includes $3 million of stock-based compensation expense for the three months ended March 31, 2022 associated with the 2022 restructuring. (c) Includes expenses related to COVID-19 testing and other expenses associated with the Company’s return-to-work program in 2022. In 2021, this includes severance and other employee costs associated with layoffs due to the COVID-19 workforce reduction offset in part by U.S. and international government employee retention credits. Segment Assets (a) March 31, December 31, 2021 Vacation Ownership $ 4,729 $ 4,743 Travel and Membership 1,426 1,414 Total reportable segments 6,155 6,157 Corporate and other 445 431 Total Company $ 6,600 $ 6,588 (a) Excludes investment in consolidated subsidiaries. |
COVID-19 Related Items
COVID-19 Related Items | 3 Months Ended |
Mar. 31, 2022 | |
Restructuring and Related Activities [Abstract] | |
COVID-19 Related Impacts [Text Block] | COVID-19 Related Items The Company’s financial statements included impacts directly related to COVID-19 as detailed in the tables below (in millions): Three Months Ended March 31, 2022 Vacation Ownership Travel and Membership Corporate Consolidated Income Statement Classification Employee compensation related and other $ — $ — $ 2 $ 2 COVID-19 related costs Total COVID-19 $ — $ — $ 2 $ 2 Three Months Ended March 31, 2021 Vacation Ownership Travel and Membership Corporate Consolidated Income Statement Classification Employee compensation related and other $ — $ — $ 1 $ 1 COVID-19 related costs Lease related (1) — — (1) Restructuring Total COVID-19 $ (1) $ — $ 1 $ — Employee compensation related and other - During the three months ended March 31, 2022, these costs were related to COVID-19 testing and other expenses associated with the Company’s return-to-work program. During the three months ended March 31, 2021, employee compensation related and other included severance and other employee costs associated with layoffs due to the COVID-19 workforce reduction offset in part by U.S. and international government employee retention credits. In connection with these actions the Company recorded COVID-19 employee-related liabilities which are included within Accrued expenses and other liabilities on the Condensed Consolidated Balance Sheets. The activity associated with these COVID-19 related liabilities is summarized as follows (in millions): Liability as of Liability as of December 31, 2021 Costs Recognized Cash Payments March 31, 2022 COVID-19 employee-related $ 1 $ 2 $ (2) $ 1 $ 1 $ 2 $ (2) $ 1 Lease related - During the three months ended March 31, 2021, the Company reversed $1 million of expense included in Restructuring on the Condensed Consolidated Statements of Income related to the reimbursement of prepaid licensing fees that were previously written-off at the Vacation Ownership segment. |
Restructuring
Restructuring | 3 Months Ended |
Mar. 31, 2022 | |
Restructuring Charges [Abstract] | |
Restructuring | Restructuring 2022 Restructuring Plans During the three months ended March 31, 2022, the Company incurred $7 million of restructuring expense. Certain positions were made redundant based upon changes to the organizational structure of the Company, primarily within the Travel and Membership segment. The majority of the initiative and related expenses were incurred in the first quarter of 2022 with the remaining charges to be completed in the second quarter. The charges consisted of (i) $5 million of personnel costs at the Travel and Membership segment (ii) $1 million of lease and personnel-related costs at the Vacation Ownership segment, and (iii) $1 million of personnel-related costs at the Company’s corporate operations. These restructuring charges included $3 million of accelerated stock-based compensation expense. The majority of the remaining liability of $4 million is expected to be paid in 2022 with lease-related payments continuing through 2025. 2020 Restructuring Plans During 2020, the Company recorded $37 million of restructuring charges, most of which were COVID-19 related. These charges included $22 million at the Travel and Membership segment associated with the Company’s decision to abandon the remaining portion of its administrative offices in New Jersey, and $14 million of charges at the Vacation Ownership segment due to a renegotiated agreement and closed sales centers. As of December 31, 2021 this restructuring liability was $22 million which was reduced by $1 million of cash payments during the three months ended March 31, 2022. The remaining 2020 restructuring liability of $21 million is lease-related and is expected to be paid by the end of 2029. The activity associated with the Company’s restructuring plans is summarized as follows (in millions): Liability as of Liability as of December 31, 2021 Costs Recognized (a) Cash Payments Other March 31, 2022 Facility-related $ 22 $ 1 $ (1) $ — $ 22 Personnel-related — 6 — (3) (b) 3 $ 22 $ 7 $ (1) $ (3) $ 25 (a) Included in Restructuring on the Condensed Consolidated Statements of Income. (b) Represents $3 million of accelerated stock-based compensation expense for the three months ended March 31, 2022, included in Additional paid-in capital on the Condensed Consolidated Statements of Deficit. |
Transactions with Former Parent
Transactions with Former Parent and Former Subsidiaries | 3 Months Ended |
Mar. 31, 2022 | |
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 March 31, 2022 and December 31, 2021 the Cendant separation and related liabilities were $14 million and $13 million, all of which were tax related liabilities. These liabilities are included within Accrued expenses and other liabilities on the Condensed Consolidated Balance Sheets. Matters Related to Wyndham Hotels In connection with the Spin-off on May 31, 2018, Travel + Leisure Co. entered into several agreements with Wyndham Hotels that govern the relationship of the parties following the separation including the Separation and Distribution Agreement, the Employee Matters Agreement, the Tax Matters Agreement, the Transition Services Agreement, and the License, Development and Noncompetition Agreement. The Company and Wyndham Hotels entered into a letter agreement during 2021 pursuant to which, among other things Wyndham Hotels waived its right to enforce certain noncompetition covenants in the License, Development and Noncompetition Agreement. In accordance with the agreements governing the relationship between Travel + Leisure Co. and Wyndham Hotels, Travel + Leisure Co. assumed two-thirds and Wyndham Hotels assumed one-third of certain contingent corporate liabilities of the Company incurred prior to the Spin-off, including liabilities of the Company related to certain terminated or divested businesses, certain general corporate matters, and any actions with respect to the separation plan. Likewise, Travel + Leisure Co. is entitled to receive two-thirds and Wyndham Hotels is entitled to receive one-third of the proceeds from certain contingent corporate assets of the Company arising or accrued prior to the Spin-off. Matters Related to the European Vacation Rentals Business In connection with the sale of the Company’s European vacation rentals business to Awaze Limited (“Awaze”), formerly Compass IV Limited, an affiliate of Platinum Equity, LLC, the Company and Wyndham Hotels agreed to certain post-closing credit support for the benefit of certain credit card service providers, a British travel association, and certain regulatory authorities to allow them to continue providing services or regulatory approval to the business. Post-closing credit support may be called if the business fails to meet its primary obligation to pay amounts when due. Awaze has provided an indemnification to Travel + Leisure Co. in the event that the post-closing credit support is enforced or called upon. At closing, the Company agreed to provide additional post-closing credit support to a British travel association and regulatory authority. An escrow was established at closing, of which $46 million was subsequently released in exchange for a secured bonding facility and a perpetual guarantee denominated in pound sterling of $46 million. The estimated fair value of the guarantee was $22 million as of March 31, 2022. The Company maintains a $7 million receivable from Wyndham Hotels for its portion of the guarantee. In addition, the Company agreed to indemnify Awaze against certain claims and assessments, including income tax, value-added tax and other tax matters, related to the operations of the European vacation rentals business for the periods prior to the transaction. The estimated fair value of the indemnifications was $42 million at March 31, 2022. The Company has a $14 million receivable from Wyndham Hotels for its portion of the guarantee. Wyndham Hotels provided certain post-closing credit support primarily for the benefit of a British travel association in the form of guarantees which are mainly denominated in pound sterling of up to £61 million ($81 million USD) on a perpetual basis. These guarantees totaled £30 million ($39 million USD) at March 31, 2022. 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 Investors Services and BB+ for Standard & Poor’s Rating Services (“S&P”) on May 9, 2020. In April 2020, S&P downgraded Wyndham Hotels’ credit rating from BB+ to BB. Although any ultimate exposure relative to indemnities retained from the European vacation rentals sale 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 March 31, 2022, including the two-thirds portion related to guarantees provided by Wyndham Hotels, totaled $90 million and was recorded in Accrued expenses and other liabilities and total receivables of $21 million were included in Other assets on the Condensed Consolidated Balance Sheets, representing the portion of these guarantees and indemnifications for which Wyndham Hotels is responsible. During 2019, Awaze proposed certain post-closing adjustments of £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. 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 Condensed Consolidated Balance Sheets at March 31, 2022. 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 the three months ended March 31, 2021, transition service agreement expenses were less than $1 million and transition service agreement income was less than $1 million. Transition service agreement expenses were included in General and administrative expense and transition service income was included in Other revenue on the Condensed Consolidated Statements of Income. These transition services ended in February 2021. Related Party Transactions |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Mar. 31, 2022 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Transactions with Former Parent and Former Subsidiaries Matters Related to Cendant Pursuant to the Separation and Distribution Agreement with Cendant (the Company’s former parent company, now Avis Budget Group), the Company entered into certain guarantee commitments with Cendant and Cendant’s former subsidiary, Realogy. These guarantee arrangements primarily relate to certain contingent litigation liabilities, contingent tax liabilities, and Cendant contingent and other corporate liabilities, of which Wyndham Worldwide Corporation assumed 37.5% of the responsibility while Cendant’s former subsidiary Realogy is responsible for the remaining 62.5%. In connection with the Spin-off, Wyndham Hotels agreed to retain one-third of Cendant’s contingent and other corporate liabilities and associated costs; therefore, Travel + Leisure Co. is effectively responsible for 25% of such matters subsequent to the separation. Since Cendant’s separation, Cendant has settled the majority of the lawsuits that were pending on the date of the separation. As of March 31, 2022 and December 31, 2021 the Cendant separation and related liabilities were $14 million and $13 million, all of which were tax related liabilities. These liabilities are included within Accrued expenses and other liabilities on the Condensed Consolidated Balance Sheets. Matters Related to Wyndham Hotels In connection with the Spin-off on May 31, 2018, Travel + Leisure Co. entered into several agreements with Wyndham Hotels that govern the relationship of the parties following the separation including the Separation and Distribution Agreement, the Employee Matters Agreement, the Tax Matters Agreement, the Transition Services Agreement, and the License, Development and Noncompetition Agreement. The Company and Wyndham Hotels entered into a letter agreement during 2021 pursuant to which, among other things Wyndham Hotels waived its right to enforce certain noncompetition covenants in the License, Development and Noncompetition Agreement. In accordance with the agreements governing the relationship between Travel + Leisure Co. and Wyndham Hotels, Travel + Leisure Co. assumed two-thirds and Wyndham Hotels assumed one-third of certain contingent corporate liabilities of the Company incurred prior to the Spin-off, including liabilities of the Company related to certain terminated or divested businesses, certain general corporate matters, and any actions with respect to the separation plan. Likewise, Travel + Leisure Co. is entitled to receive two-thirds and Wyndham Hotels is entitled to receive one-third of the proceeds from certain contingent corporate assets of the Company arising or accrued prior to the Spin-off. Matters Related to the European Vacation Rentals Business In connection with the sale of the Company’s European vacation rentals business to Awaze Limited (“Awaze”), formerly Compass IV Limited, an affiliate of Platinum Equity, LLC, the Company and Wyndham Hotels agreed to certain post-closing credit support for the benefit of certain credit card service providers, a British travel association, and certain regulatory authorities to allow them to continue providing services or regulatory approval to the business. Post-closing credit support may be called if the business fails to meet its primary obligation to pay amounts when due. Awaze has provided an indemnification to Travel + Leisure Co. in the event that the post-closing credit support is enforced or called upon. At closing, the Company agreed to provide additional post-closing credit support to a British travel association and regulatory authority. An escrow was established at closing, of which $46 million was subsequently released in exchange for a secured bonding facility and a perpetual guarantee denominated in pound sterling of $46 million. The estimated fair value of the guarantee was $22 million as of March 31, 2022. The Company maintains a $7 million receivable from Wyndham Hotels for its portion of the guarantee. In addition, the Company agreed to indemnify Awaze against certain claims and assessments, including income tax, value-added tax and other tax matters, related to the operations of the European vacation rentals business for the periods prior to the transaction. The estimated fair value of the indemnifications was $42 million at March 31, 2022. The Company has a $14 million receivable from Wyndham Hotels for its portion of the guarantee. Wyndham Hotels provided certain post-closing credit support primarily for the benefit of a British travel association in the form of guarantees which are mainly denominated in pound sterling of up to £61 million ($81 million USD) on a perpetual basis. These guarantees totaled £30 million ($39 million USD) at March 31, 2022. 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 Investors Services and BB+ for Standard & Poor’s Rating Services (“S&P”) on May 9, 2020. In April 2020, S&P downgraded Wyndham Hotels’ credit rating from BB+ to BB. Although any ultimate exposure relative to indemnities retained from the European vacation rentals sale 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 March 31, 2022, including the two-thirds portion related to guarantees provided by Wyndham Hotels, totaled $90 million and was recorded in Accrued expenses and other liabilities and total receivables of $21 million were included in Other assets on the Condensed Consolidated Balance Sheets, representing the portion of these guarantees and indemnifications for which Wyndham Hotels is responsible. During 2019, Awaze proposed certain post-closing adjustments of £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. 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 Condensed Consolidated Balance Sheets at March 31, 2022. 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 the three months ended March 31, 2021, transition service agreement expenses were less than $1 million and transition service agreement income was less than $1 million. Transition service agreement expenses were included in General and administrative expense and transition service income was included in Other revenue on the Condensed Consolidated Statements of Income. These transition services ended in February 2021. Related Party Transactions |
Subsequent Event
Subsequent Event | 3 Months Ended |
Mar. 31, 2022 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent EventOn April 25, 2022, the Company’s Board of Directors increased the authorization for the Company’s share repurchase program by $500 million. |
Background and Basis of Prese_2
Background and Basis of Presentation Background and Basis of Presentation (Policies) | 3 Months Ended |
Mar. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Accounting, Policy [Policy Text Block] | Basis of Presentation The accompanying unaudited Condensed Consolidated Financial Statements in this Quarterly Report on Form 10-Q include the accounts and transactions of Travel + Leisure Co., as well as the entities in which Travel + Leisure Co. directly or indirectly has a controlling financial interest. The accompanying Condensed Consolidated Financial Statements have been prepared in accordance with Generally Accepted Accounting Principles in the U.S. (“GAAP”). All intercompany balances and transactions have been eliminated in the Condensed Consolidated Financial Statements. The Company presents an unclassified balance sheet which conforms to that of the Company’s peers and industry practice. In presenting the Condensed Consolidated Financial Statements, management makes estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosures. Estimates, by their nature, are based on judgment and available information. Accordingly, actual results could differ from those estimates and assumptions. In management’s opinion, the Condensed Consolidated Financial Statements contain all normal recurring adjustments necessary for a fair presentation of interim results reported. The results of operations reported for interim periods are not necessarily indicative of the results of operations for the entire year or any subsequent interim period. These Condensed Consolidated Financial Statements should be read in conjunction with the Company’s 2021 Consolidated Financial Statements included in its Annual Report on Form 10-K filed with the Securities and Exchange Commission on February 23, 2022. |
New Accounting Pronouncements N
New Accounting Pronouncements New Accounting Pronouncements (Policies) | 3 Months Ended |
Mar. 31, 2022 | |
Accounting Changes and Error Corrections [Abstract] | |
New Accounting Pronouncements, Policy [Policy Text Block] | 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 Codification (“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 have received government assistance and used a grant or contribution accounting model by analogy to other accounting guidance. The guidance is effective for financial statements issued for annual periods 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. |
Revenue Recognition Revenue Rec
Revenue Recognition Revenue Recognition (Policies) | 3 Months Ended |
Mar. 31, 2022 | |
Revenue Recognition and Deferred Revenue [Abstract] | |
Revenue Recognition and Loyalty Programs | Vacation Ownership The Company develops, markets, and sells VOIs to individual consumers, provides consumer financing in connection with the sale of VOIs, and provides property management services at resorts. The Company’s sales of VOIs are either cash sales or developer-financed sales. Developer-financed sales are typically collateralized by the underlying VOI. Revenue is recognized on VOI sales upon transfer of control, which is defined as the point in time when a binding sales contract has been executed, the financing contract has been executed for the remaining transaction price, the statutory rescission period has expired, and the transaction price has been deemed to be collectible. For developer-financed sales, the Company reduces the VOI sales transaction price by an estimate of uncollectible consideration at the time of the sale. The Company’s estimates of uncollectible amounts are based largely on the results of the Company’s static pool analysis which relies on historical payment data by customer class. In connection with entering into a VOI sale, the Company may provide its customers with certain non-cash incentives, such as credits for future stays at its resorts. For those VOI sales, the Company bifurcates the sale and allocates the sales price between the VOI sale and the non-cash incentive. Non-cash incentives generally have expiration periods of 18 months or less and are recognized at a point in time upon transfer of control. The Company provides day-to-day property management services including oversight of housekeeping services, maintenance, and certain accounting and administrative services for property owners’ associations and clubs. These services may also include reservation and resort renovation activities. Such agreements are generally for terms of one year or less and are renewed automatically on an annual basis. The Company’s management agreements contain cancellation clauses, which allow for either party to cancel the agreement, by either a majority board vote or a majority vote of non-developer interests. The Company receives fees for such property management services which are collected monthly in advance and are based upon total costs to operate such resorts (or as services are provided in the case of resort renovation activities). Fees for property management services typically approximate 10% of budgeted operating expenses. The Company is entitled to consideration for reimbursement of costs incurred on behalf of the property owners’ association in providing management services (“reimbursable revenue”). These reimbursable costs principally relate to the payroll costs for management of the associations, club and resort properties where the Company is the employer and are reflected as a component of Operating expenses on the Condensed Consolidated Statements of Income. The Company reduces its management fees for amounts it has paid to the property owners’ association that reflect maintenance fees for VOIs for which it retains ownership, as the Company has concluded that such payments are consideration payable to a customer. Travel and Membership 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 Travel Club 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. 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 |
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 March 31, 2022 and December 31, 2021, these capitalized costs were $27 million and $28 million and are included within Other assets on the Condensed Consolidated Balance Sheets. The Travel and Membership segment incurs certain direct and incremental selling costs to obtain contracts with customers in connection with subscription revenues and exchange–related revenues. Such costs, which are primarily comprised of commissions paid to internal and external parties and credit card processing fees, are deferred at the inception of the contract and recognized when the benefit is transferred to the customer. As of March 31, 2022 and December 31, 2021, these capitalized costs were $18 million and $19 million; and are included within Other assets on the Condensed Consolidated Balance Sheets. |
Vacation Ownership Contract R_2
Vacation Ownership Contract Receivables Policy (Policies) | 3 Months Ended |
Mar. 31, 2022 | |
Receivables [Abstract] | |
Credit Quality for Financed Receivables and the Allowance for Credit Losses | Credit Quality for Financed Receivables and the Allowance for Credit Losses The basis of the differentiation within the identified class of financed VOI contract receivables is the consumer’s Fair Isaac Corporation (“FICO”) score. A FICO score is a branded version of a consumer credit score widely used within the U.S. by the largest banks and lending institutions. FICO scores range from 300 to 850 and are calculated based on information obtained from one or more of the three major U.S. credit reporting agencies that compile and report on a consumer’s credit history. The Company updates its records for all active VOI contract receivables with a balance due on a rolling monthly basis to ensure that all VOI contract receivables are scored at least every six months. The Company groups all VOI contract receivables into five different categories: FICO scores ranging from 700 to 850, from 600 to 699, below 600, no score (primarily comprised of consumers for whom a score is not readily available, including consumers declining access to FICO scores and non-U.S. residents), and Asia Pacific (comprised of receivables in the Company’s Vacation Ownership Asia Pacific business for which scores are not readily available). |
Variable Interest Entities Vari
Variable Interest Entities Variable Interest Entities Policies (Policies) | 3 Months Ended |
Mar. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Principals of consolidation | 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 variable interest entity (“VIE”). If the entity is deemed to be a VIE, the Company consolidates those VIEs for which the Company is the primary beneficiary. Vacation Ownership Contract Receivables Securitizations The Company pools qualifying VOCRs and sells them to bankruptcy-remote entities. VOCRs qualify for securitization based primarily on the credit strength of the VOI purchaser to whom financing has been extended. VOCRs are securitized through bankruptcy-remote SPEs that are consolidated within the Company’s Condensed Consolidated Financial Statements. As a result, the Company does not recognize gains or losses resulting from these securitizations at the time of sale to the SPEs. Interest income is recognized when earned over the contractual life of the VOCRs. The Company services the securitized VOCRs pursuant to servicing agreements negotiated on an arm’s-length basis based on market conditions. The activities of these SPEs are limited to (i) purchasing VOCRs from the Company’s vacation ownership subsidiaries, (ii) issuing debt securities and/or borrowing under a conduit facility to fund such purchases, and (iii) entering into derivatives to hedge interest rate exposure. The bankruptcy-remote SPEs are legally separate from the Company. The receivables held by the bankruptcy-remote SPEs are not available to creditors of the Company and legally are not assets of the Company. Additionally, the non-recourse debt that is securitized through the SPEs is legally not a liability of the Company and thus, the creditors of these SPEs have no recourse to the Company for principal and interest. |
Fair Value Measures and Disclos
Fair Value Measures and Disclosures (Policies) | 3 Months Ended |
Mar. 31, 2022 | |
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. The Company estimates the fair value of its VOCRs using a discounted cash flow model which it believes is comparable to the model that an independent third-party would use in the current market. The model uses Level 3 inputs consisting of default rates, prepayment rates, coupon rates, and loan terms for the contract receivables portfolio as key drivers of risk and relative value that, when applied in combination with pricing parameters, determines the fair value of the underlying contract receivables. The Company estimates the fair value of its non-recourse vacation ownership debt by obtaining Level 2 inputs comprised of indicative bids from investment banks that actively issue and facilitate the secondary market for timeshare securities. The Company estimates the fair value of its debt, excluding finance leases, using Level 2 inputs based on indicative bids from investment banks and determines the fair value of its secured notes using quoted market prices (such secured notes are not actively traded). |
Leases (Policies)
Leases (Policies) | 3 Months Ended |
Mar. 31, 2022 | |
Leases [Abstract] | |
Lessee, Leases [Policy Text Block] | The Company leases property and equipment under finance and operating leases for its corporate headquarters, administrative functions, marketing and sales offices, and various other facilities and equipment. For leases with terms greater than 12 months, the Company records the related asset and obligation at the present value of lease payments over the term. Many of its leases include rental escalation clauses, lease incentives, renewal options and/or termination options that are factored into the Company’s determination of lease payments. The Company elected the hindsight practical expedient to determine the reasonably certain lease term for existing leases. The Company also made an accounting policy election to keep leases with an initial term of 12 months or less off the balance sheet and recognize the associated lease payments on a straight-line basis over the lease term in the Condensed Consolidated Statements of Income.When available, the Company uses the rate implicit in the lease to discount lease payments to present value; however, most of its leases do not provide a readily determinable implicit rate. Therefore, the Company must estimate its incremental borrowing rate to discount the lease payments based on information available at lease commencement. The majority of the Company’s leases have remaining lease terms of one |
Commitment and Contingencies (P
Commitment and Contingencies (Policies) | 3 Months Ended |
Mar. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies, Policy | Travel + Leisure Co. Litigation The Company may be from time to time involved in claims, legal and regulatory proceedings, and governmental inquiries arising in the ordinary course of its business including but not limited to: for its Vacation Ownership business — breach of contract, bad faith, conflict of interest, fraud, consumer protection and other statutory claims by property owners’ associations, owners and prospective owners in connection with the sale or use of VOIs or land, or the management of vacation ownership resorts, construction defect claims relating to vacation ownership units or resorts or in relation to guest reservations and bookings; and negligence, breach of contract, fraud, consumer protection and other statutory claims by guests and other consumers for alleged injuries sustained at or acts or occurrences related to vacation ownership units or resorts or in relation to guest reservations and bookings; for its Travel and Membership business — breach of contract, fraud and bad faith claims by affiliates and customers in connection with their respective agreements, negligence, breach of contract, fraud, consumer protection and other statutory claims asserted by members, guests and other consumers for alleged injuries sustained at or acts or occurrences related to affiliated resorts, or in relation to guest reservations and bookings; and for each of its businesses, bankruptcy proceedings involving efforts to collect receivables from a debtor in bankruptcy, employment matters including but not limited to, claims of wrongful termination, retaliation, discrimination, harassment and wage and hour claims, whistleblower claims, claims of infringement upon third parties’ intellectual property rights, claims relating to information security, privacy and consumer protection, fiduciary duty/trust claims, tax claims, environmental claims, and landlord/tenant disputes. Standard Guarantees/Indemnifications In the ordinary course of business, the Company enters into agreements that contain standard guarantees and indemnities whereby the Company indemnifies another party for specified breaches of, or third-party claims relating to, an underlying agreement. Such underlying agreements are typically entered into by one of the Company’s subsidiaries. The various underlying agreements generally govern purchases, sales or outsourcing of products or services, leases of real estate, licensing of software and/or development of vacation ownership properties, access to credit facilities, derivatives and issuances of debt securities. Also in the ordinary course of business, the Company provides corporate guarantees for its operating business units relating to merchant credit-card processing for prepaid customer stays and other deposits. While a majority of these guarantees and indemnifications extend only for the duration of the underlying agreement, some survive the expiration of the agreement. The Company is not able to estimate the maximum potential amount of future payments to |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Disaggregation of Net Revenues | Property management revenues, which are comprised of management fee revenue and reimbursable revenue were (in millions): Three Months Ended March 31, 2022 2021 Management fee revenues $ 95 $ 88 Reimbursable revenues 85 69 Property management revenues $ 180 $ 157 The table below presents a disaggregation of the Company’s net revenues from contracts with customers by major services and products for each of the Company’s segments (in millions): Three Months Ended March 31, 2022 2021 Vacation Ownership Vacation ownership interest sales $ 297 $ 172 Property management fees and reimbursable revenues 180 157 Consumer financing 98 98 Fee-for-Service commissions 17 12 Ancillary revenues 12 10 Total Vacation Ownership 604 449 Travel and Membership Transaction revenues 156 132 Subscription revenues 45 41 Ancillary revenues 9 10 Total Travel and Membership 210 183 Corporate and other Eliminations (5) (4) Total Corporate and other (5) (4) Net revenues $ 809 $ 628 |
Schedule of Contract Liabilities | Contract liabilities as of March 31, 2022 and December 31, 2021, were as follows (in millions): March 31, December 31, 2021 Deferred subscription revenue $ 175 $ 166 Deferred VOI trial package revenue 84 85 Deferred exchange-related revenue (a) 62 61 Deferred VOI incentive revenue 56 55 Deferred co-branded credit card programs revenue 11 12 Deferred other revenue 4 3 Total $ 392 $ 382 (a) Includes contractual liabilities to accommodate members for cancellations initiated by the Company due to unexpected events. These amounts are included within Accrued expenses and other liabilities on the Condensed Consolidated Balance Sheets. |
Contract with customer liability rollforward | Changes in contract liabilities follow (in millions): Three Months Ended March 31, 2022 2021 Beginning balance $ 382 $ 448 Additions 85 74 Revenue recognized (75) (86) Ending balance $ 392 $ 436 |
Schedule of Performance Obligations | The following table summarizes the Company’s remaining performance obligations for the 12-month periods set forth below (in millions): 4/1/2022 - 3/31/2023 4/1/2023 - 3/31/2024 4/1/2024 - 3/31/2025 Thereafter Total Subscription revenue $ 101 $ 39 $ 18 $ 17 $ 175 VOI trial package revenue 81 1 2 — 84 Exchange-related revenue 58 3 1 — 62 VOI incentive revenue 56 — — — 56 Co-branded credit card programs revenue 3 3 3 2 11 Other revenue 4 — — — 4 Total $ 303 $ 46 $ 24 $ 19 $ 392 |
Earnings_(Loss) Per Share (Tabl
Earnings/(Loss) Per Share (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Earnings Per Share Reconciliation [Abstract] | |
Computation Of Basic And Diluted EPS | The following table sets forth the computations of basic and diluted EPS (in millions, except per share data): Three Months Ended March 31, 2022 2021 Net income attributable to Travel + Leisure Co. shareholders $ 51 $ 29 Earnings per share (a) Basic $ 0.59 $ 0.33 Diluted $ 0.59 $ 0.33 Basic weighted average shares outstanding 85.9 86.3 Stock-settled appreciation rights (“SSARs”), RSUs, (b) PSUs (c) and NQs (d) 1.1 0.6 Diluted weighted average shares outstanding (e) 87.0 86.9 Dividends: Aggregate dividends paid to shareholders $ 35 $ 26 (a) Earnings per share amounts are calculated using whole numbers. (b) Excludes 0.6 million and 0.2 million of restricted stock units (“RSUs”) that would have been anti-dilutive to EPS for the three months ended March 31, 2022 and 2021. These shares could potentially dilute EPS in the future. (c) Excludes performance-vested restricted stock units (“PSUs”) of 0.6 million and 0.4 million for the three months ended March 31, 2022 and 2021 as the Company had not met the required performance metrics. These PSUs could potentially dilute EPS in the future. (d) Excludes 1.1 million and 1.5 million of outstanding non-qualified stock option (“NQs”) awards that would have been anti-dilutive to EPS for the three months ended March 31, 2022 and 2021. These outstanding stock option awards could potentially dilute EPS in the future. (e) The dilutive impact of the Company’s potential common stock is computed utilizing the treasury stock method using average market prices during the period. |
Current Stock Repurchase Program | The following table summarizes stock repurchase activity under the current share repurchase program (in millions): Shares Cost As of December 31, 2021 111.8 $ 5,753 Repurchases 0.8 45 As of March 31, 2022 112.6 $ 5,798 |
Vacation Ownership Contract R_3
Vacation Ownership Contract Receivables (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Vacation Ownership Contract Receivables [Abstract] | |
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block] | Vacation ownership contract receivables, net consisted of (in millions): March 31, December 31, Vacation ownership contract receivables: Securitized (a) $ 2,053 $ 2,061 Non-securitized (b) 702 758 Vacation ownership contract receivables, gross 2,755 2,819 Less: allowance for loan losses 494 510 Vacation ownership contract receivables, net $ 2,261 $ 2,309 (a) Excludes $16 million and $17 million of accrued interest on VOCRs as of March 31, 2022 and December 31, 2021, which are included in Trade receivables, net on the Condensed Consolidated Balance Sheets. (b) Excludes $6 million and $5 million of accrued interest on VOCRs as of March 31, 2022 and December 31, 2021, which are included in Trade receivables, net on the Condensed Consolidated Balance Sheets. |
Financing Receivable, Allowance for Credit Loss [Table Text Block] | The activity in the allowance for loan losses on VOCRs was as follows (in millions): Three Months Ended March 31, 2022 2021 Allowance for loan losses, beginning balance $ 510 $ 693 Provision for loan losses, net 48 38 Contract receivables write-offs, net (64) (109) Allowance for loan losses, ending balance $ 494 $ 622 |
Financing Receivable Credit Quality Indicators [Table Text Block] | The following table details an aging analysis of financing receivables using the most recently updated FICO scores, based on the policy described above (in millions): As of March 31, 2022 700+ 600-699 <600 No Score Asia Pacific Total Current $ 1,593 $ 720 $ 104 $ 71 $ 168 $ 2,656 31 - 60 days 14 17 8 2 1 42 61 - 90 days 9 12 8 1 — 30 91 - 120 days 6 10 10 1 — 27 Total (a) $ 1,622 $ 759 $ 130 $ 75 $ 169 $ 2,755 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 (a) Includes contracts under temporary deferment (up to 180 days) of $5 million and $7 million as of March 31, 2022 and December 31, 2021. 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 March 31, 2022 700+ 600-699 <600 No Score Asia Pacific Total 2022 $ 170 $ 48 $ — $ 10 $ 25 $ 253 2021 455 229 27 6 34 751 2020 196 89 17 5 22 329 2019 276 142 33 16 30 497 2018 218 104 22 13 22 379 Prior 307 147 31 25 36 546 Total $ 1,622 $ 759 $ 130 $ 75 $ 169 $ 2,755 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 |
Inventory (Tables)
Inventory (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Inventory Disclosure [Abstract] | |
Inventory | Inventory consisted of (in millions): March 31, December 31, Completed VOI inventory $ 916 $ 998 Estimated VOI recoveries 180 187 VOI construction in process 15 13 Inventory sold subject to repurchase 13 13 Vacation exchange credits and other 4 4 Land held for VOI development 1 1 Total inventory $ 1,129 $ 1,216 |
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, 2021 $ 13 $ — $ — $ 1 $ 14 Purchases — — — 19 19 Payments — — — (13) (13) March 31, 2022 $ 13 $ — $ — $ 7 $ 20 December 31, 2020 $ 13 $ 31 $ 22 $ 17 $ 83 Purchases — 25 — 19 44 Payments — (56) — (22) (78) March 31, 2021 $ 13 $ — $ 22 $ 14 $ 49 (a) Included in Accrued expenses and other liabilities on the Condensed Consolidated Balance Sheets. (b) Included in Accounts payable on the Condensed Consolidated Balance Sheets. |
Property and equipment (Tables)
Property and equipment (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment [Table Text Block] | Property and equipment, net, consisted of (in millions): March 31, December 31, 2021 Building and leasehold improvements $ 718 $ 653 Capitalized software 710 707 Furniture, fixtures and equipment 207 204 Land 30 30 Construction in progress 23 18 Finance leases 21 20 Total property and equipment 1,709 1,632 Less: accumulated depreciation and amortization 966 943 Property and equipment, net $ 743 $ 689 |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments | The Company’s indebtedness consisted of (in millions): March 31, December 31, Non-recourse vacation ownership debt : (a) Term notes (b) $ 1,658 $ 1,614 USD bank conduit facility (due July 2024) (c) 163 190 AUD/NZD bank conduit facility (due April 2023) (d) 128 130 Total $ 1,949 $ 1,934 Debt : (e) $1.0 billion secured revolving credit facility (due October 2026) (f) $ — $ — $300 million secured term loan B (due May 2025) (g) 288 288 $400 million 3.90% secured notes (due March 2023) (h) 401 401 $300 million 5.65% secured notes (due April 2024) 299 299 $350 million 6.60% secured notes (due October 2025) (i) 345 345 $650 million 6.625% secured notes (due July 2026) 643 643 $400 million 6.00% secured notes (due April 2027) (j) 407 407 $650 million 4.50% secured notes (due December 2029) 641 641 $350 million 4.625% secured notes (due March 2030) 346 346 Finance leases 9 9 Total $ 3,379 $ 3,379 (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 $2.2 billion and $2.17 billion of underlying gross VOCRs and related assets (which legally are not assets of the Company) as of March 31, 2022 and December 31, 2021. (b) The carrying amounts of the term notes are net of deferred financing costs of $20 million and $18 million as of March 31, 2022 and December 31, 2021. (c) The Company has a borrowing capacity of $600 million under the USD bank conduit facility through July 2024. Borrowings under this facility are required to be repaid as the collateralized receivables amortize but no later than August 2025. (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 $19 million and $20 million as of March 31, 2022 and December 31, 2021, and net of unamortized debt financing costs of $7 million and $8 million as of March 31, 2022 and December 31, 2021. (f) The weighted average effective interest rate on borrowings from this facility were 4.59% and 3.19% as of March 31, 2022 and December 31, 2021. (g) The weighted average effective interest rate on borrowings from this facility was 2.39% as of March 31, 2022 and December 31, 2021. (h) Includes $1 million and $2 million of unamortized gains from the settlement of a derivative as of March 31, 2022 and December 31, 2021. (i) Includes $4 million of unamortized losses from the settlement of a derivative as of March 31, 2022 and December 31, 2021. |
Summary Of Outstanding Debt Maturities | The Company’s outstanding debt as of March 31, 2022, matures as follows (in millions): Non-recourse Vacation Ownership Debt Debt Total Within 1 year $ 224 $ 408 $ 632 Between 1 and 2 years 256 6 262 Between 2 and 3 years 230 303 533 Between 3 and 4 years 303 625 928 Between 4 and 5 years 207 643 850 Thereafter 729 1,394 2,123 $ 1,949 $ 3,379 $ 5,328 |
Summary Of Available Capacity Under Borrowing Arrangements | As of March 31, 2022, available capacity under the Company’s borrowing arrangements was as follows (in millions): Non-recourse Conduit Facilities (a) Revolving Credit Facilities (b) Total capacity $ 824 $ 1,000 Less: outstanding borrowings 291 — Less: letters of credit — 2 Available capacity $ 533 $ 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) | 3 Months Ended |
Mar. 31, 2022 | |
Variable Interest Entity, Primary Beneficiary, Does Not Hold Majority Voting Interest, Disclosures [Abstract] | |
Assets and Liabilities of SPEs | The assets and liabilities of these vacation ownership SPEs are as follows (in millions): March 31, December 31, Securitized contract receivables, gross (a) $ 2,053 $ 2,061 Securitized restricted cash (b) 114 84 Interest receivables on securitized contract receivables (c) 16 17 Other assets (d) 14 4 Total SPE assets 2,197 2,166 Non-recourse term notes (e) (f) 1,658 1,614 Non-recourse conduit facilities (e) 291 320 Other liabilities (g) 2 2 Total SPE liabilities 1,951 1,936 SPE assets in excess of SPE liabilities $ 246 $ 230 (a) Included in Vacation ownership contract receivables, net on the Condensed Consolidated Balance Sheets. (b) Included in Restricted cash on the Condensed Consolidated Balance Sheets. (c) Included in Trade receivables, net on the Condensed Consolidated Balance Sheets. (d) Primarily includes deferred financing costs for the bank conduit facility and a security investment asset, which is included in Other assets on the Condensed Consolidated Balance Sheets. (e) Included in Non-recourse vacation ownership debt on the Condensed Consolidated Balance Sheets. (f) Includes deferred financing costs of $20 million and $18 million as of March 31, 2022 and December 31, 2021, related to non-recourse debt. (g) Primarily includes accrued interest on non-recourse debt, which is included in Accrued expenses and other liabilities on the Condensed Consolidated Balance Sheets. |
Summary Of Total Vacation Ownership Receivables And Other Securitized Assets, Net Of Securitized Liabilities And Allowance For Loan Losses | A summary of total vacation ownership receivables and other securitized assets, net of securitized liabilities and the allowance for loan losses, is as follows (in millions): March 31, December 31, SPE assets in excess of SPE liabilities $ 246 $ 230 Non-securitized contract receivables 702 758 Less: allowance for loan losses 494 510 Total, net $ 454 $ 478 |
Fair Value (Tables)
Fair Value (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
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): March 31, 2022 December 31, 2021 Carrying Estimated Fair Value Carrying Estimated Fair Value Assets Vacation ownership contract receivables, net (Level 3) $ 2,261 $ 2,807 $ 2,309 $ 2,858 Liabilities Debt (Level 2) $ 5,328 $ 5,324 $ 5,313 $ 5,514 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Leases [Abstract] | |
Lease, Cost [Table Text Block] | The table below presents information related to the lease costs for finance and operating leases (in millions): Three Months Ended March 31, 2022 2021 Operating lease cost $ 6 $ 6 Short-term lease cost $ 3 $ 3 Finance lease cost: Amortization of right-of-use assets $ 1 $ 1 Interest on lease liabilities — — Total finance lease cost $ 1 $ 1 |
Leases, Assets and Liabilities [Table Text Block] | The table below presents the lease-related assets and liabilities recorded on the Condensed Consolidated Balance Sheets: Balance Sheet Classification March 31, 2022 December 31, 2021 Operating leases (in millions): Operating lease right-of-use assets Other assets $ 73 $ 79 Operating lease liabilities Accrued expenses and other liabilities $ 128 $ 136 Finance leases (in millions): Finance lease assets (a) Property and equipment, net $ 10 $ 10 Finance lease liabilities Debt $ 9 $ 9 Weighted average remaining lease term: Operating leases 6.2 years 6.4 years Finance leases 2.5 years 2.6 years Weighted average discount rate: Operating leases (b) 5.8 % 5.8 % Finance leases 4.3 % 4.4 % (a) Presented net of accumulated depreciation. |
Leases, Cash Flow Presentation [Table Text Block] | The table below presents supplemental cash flow information related to leases (in millions): Three Months Ended March 31, 2022 2021 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 8 $ 10 Operating cash flows from finance leases $ — $ — Financing cash flows from finance leases $ 1 $ 1 Right-of-use assets obtained in exchange for lease obligations: Operating leases (a) $ (1) $ — Finance leases $ 1 $ — (a) Includes write-off of right-of-use assets during the three months ended March 31, 2022. |
Leases, Liability Maturity [Table Text Block] | The table below presents maturities of lease liabilities as of March 31, 2022 (in millions): Operating Leases Finance Nine months ending December 31, 2022 $ 24 $ 4 2023 30 4 2024 28 2 2025 23 — 2026 14 — Thereafter 34 — Total minimum lease payments 153 10 Less: amount of lease payments representing interest (25) (1) Present value of future minimum lease payments $ 128 $ 9 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive (Loss)/Income (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Equity [Abstract] | |
Components Of Accumulated Other Comprehensive (Loss)/Income | The components of accumulated other comprehensive loss are as follows (in millions): Foreign Unrealized Accumulated Currency (Losses)/Gains Other Translation on Cash Flow Comprehensive Pretax Adjustments Hedges (Loss)/Income Balance, December 31, 2021 $ (145) $ (1) $ (146) Other comprehensive income 3 — 3 Balance, March 31, 2022 $ (142) $ (1) $ (143) Tax Balance, December 31, 2021 $ 97 $ 1 $ 98 Other comprehensive income — — — Balance, March 31, 2022 $ 97 $ 1 $ 98 Net of Tax Balance, December 31, 2021 $ (48) $ — $ (48) Other comprehensive income 3 — 3 Balance, March 31, 2022 $ (45) $ — $ (45) Foreign Unrealized Accumulated Currency (Losses)/Gains Other Translation on Cash Flow Comprehensive Pretax Adjustments Hedges (Loss)/Income Balance, December 31, 2020 $ (113) $ (1) $ (114) Other comprehensive loss (14) — (14) Balance, March 31, 2021 $ (127) $ (1) $ (128) Tax Balance, December 31, 2020 $ 97 $ 1 $ 98 Other comprehensive income 1 — 1 Balance, March 31, 2021 $ 98 $ 1 $ 99 Net of Tax Balance, December 31, 2020 $ (16) $ — $ (16) Other comprehensive loss (13) — (13) Balance, March 31, 2021 $ (29) $ — $ (29) |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
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 three months ended March 31, 2022, consisted of the following (in millions, except grant prices): Balance, December 31, 2021 Granted Vested /Exercised (a) Cancelled / Forfeited (b) Balance, March 31, 2022 RSUs Number of RSUs 1.8 0.6 (0.4) — 2.0 (c) Weighted average grant price $ 47.83 $ 52.87 $ 48.87 $ — $ 49.10 PSUs Number of PSUs 0.4 0.3 — (0.1) 0.6 (d) Weighted average grant price $ 48.18 $ 52.87 $ — $ 44.43 $ 51.30 NQs Number of NQs 2.3 — — — 2.3 (e) Weighted average grant price $ 45.32 $ — $ — $ — $ 45.33 (a) Upon exercise of NQs and upon vesting of RSUs and PSUs, the Company issues new shares to participants. (b) The Company recognizes cancellations and forfeitures as they occur. (c) Aggregate unrecognized compensation expense related to RSUs was $70 million as of March 31, 2022, which is expected to be recognized over a weighted average period of 2.9 years. (d) Aggregate unrecognized compensation expense related to PSUs that are probable of vesting was $9 million as of March 31, 2022, which is expected to be recognized over a weighted average period of 2.9 years. The maximum amount of compensation expense associated with PSUs that are not probable of vesting could range up to $20 million over a weighted average period of 2.0 years. (e) There were 1.3 million NQs which were exercisable as of March 31, 2022. These exercisable NQs will expire over a weighted average period of 6.9 years and carry a weighted average grant date fair value of $8.53. Unrecognized compensation expense for NQs was $7 million as of March 31, 2022, which is expected to be recognized over a weighted average period of 2.2 years. |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | The projected dividend yield was based on the Company’s anticipated annual dividend divided by the price of the Company’s stock on the date of the grant. Stock Options 2021 Grant date fair value $18.87 Grant date strike price $59.00 Expected volatility 44.80% Expected life (a) 6.25 years Risk-free interest rate 1.09% Projected dividend yield 3.12% (a) The maximum contractual term for these options is 10 years. |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Segment Reporting [Abstract] | |
Summary Of Segment Information | The following tables present the Company’s segment information (in millions): Three Months Ended March 31, Net revenues 2022 2021 Vacation Ownership $ 604 $ 449 Travel and Membership 210 183 Total reportable segments 814 632 Corporate and other (a) (5) (4) Total Company $ 809 $ 628 Three Months Ended March 31, Reconciliation of Net income to Adjusted EBITDA 2022 2021 Net income attributable to Travel + Leisure Co. shareholders $ 51 $ 29 Provision for income taxes 23 6 Depreciation and amortization 30 31 Interest expense 47 53 Interest (income) (1) (1) Stock-based compensation 9 7 Restructuring (b) 7 (1) COVID-19 related costs (c) 2 1 Legacy items 1 4 Asset impairments 1 — Adjusted EBITDA $ 170 $ 129 Three Months Ended March 31, Adjusted EBITDA 2022 2021 Vacation Ownership $ 103 $ 66 Travel and Membership 84 75 Total reportable segments 187 141 Corporate and other (a) (17) (12) Total Company $ 170 $ 129 (a) Includes the elimination of transactions between segments. (b) Includes $3 million of stock-based compensation expense for the three months ended March 31, 2022 associated with the 2022 restructuring. (c) Includes expenses related to COVID-19 testing and other expenses associated with the Company’s return-to-work program in 2022. In 2021, this includes severance and other employee costs associated with layoffs due to the COVID-19 workforce reduction offset in part by U.S. and international government employee retention credits. Segment Assets (a) March 31, December 31, 2021 Vacation Ownership $ 4,729 $ 4,743 Travel and Membership 1,426 1,414 Total reportable segments 6,155 6,157 Corporate and other 445 431 Total Company $ 6,600 $ 6,588 (a) Excludes investment in consolidated subsidiaries. |
COVID-19 Related Items (Tables)
COVID-19 Related Items (Tables) | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Restructuring and Related Activities [Abstract] | ||
COVID-19 Related Impacts [Table Text Block] | The Company’s financial statements included impacts directly related to COVID-19 as detailed in the tables below (in millions): Three Months Ended March 31, 2022 Vacation Ownership Travel and Membership Corporate Consolidated Income Statement Classification Employee compensation related and other $ — $ — $ 2 $ 2 COVID-19 related costs Total COVID-19 $ — $ — $ 2 $ 2 | Three Months Ended March 31, 2021 Vacation Ownership Travel and Membership Corporate Consolidated Income Statement Classification Employee compensation related and other $ — $ — $ 1 $ 1 COVID-19 related costs Lease related (1) — — (1) Restructuring Total COVID-19 $ (1) $ — $ 1 $ — |
COVID-19 Related Liabilities [Table Text Block] | The activity associated with these COVID-19 related liabilities is summarized as follows (in millions): Liability as of Liability as of December 31, 2021 Costs Recognized Cash Payments March 31, 2022 COVID-19 employee-related $ 1 $ 2 $ (2) $ 1 $ 1 $ 2 $ (2) $ 1 |
Restructuring (Tables)
Restructuring (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Restructuring Charges [Abstract] | |
Activity Related To The Restructuring Costs | The activity associated with the Company’s restructuring plans is summarized as follows (in millions): Liability as of Liability as of December 31, 2021 Costs Recognized (a) Cash Payments Other March 31, 2022 Facility-related $ 22 $ 1 $ (1) $ — $ 22 Personnel-related — 6 — (3) (b) 3 $ 22 $ 7 $ (1) $ (3) $ 25 (a) Included in Restructuring on the Condensed Consolidated Statements of Income. (b) Represents $3 million of accelerated stock-based compensation expense for the three months ended March 31, 2022, included in Additional paid-in capital on the Condensed Consolidated Statements of Deficit. |
Background and Basis of Prese_3
Background and Basis of Presentation (Narrative) (Details) | 3 Months Ended |
Mar. 31, 2022segmentbrand | |
Background [Line Items] | |
Number of Reportable Segments | segment | 2 |
Travel and Membership | |
Background [Line Items] | |
Number of brands | brand | 3 |
Revenue Recognition (Narrative)
Revenue Recognition (Narrative) (Details) | 3 Months Ended |
Mar. 31, 2022 | |
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% |
Revenue Recognition (Prop Mgmt
Revenue Recognition (Prop Mgmt Rev) (Details) $ in Millions | 3 Months Ended | |
Mar. 31, 2022USD ($)numberOfAssociations | Mar. 31, 2021USD ($) | |
Disaggregation of Revenue [Line Items] | ||
Net revenues | $ 809 | $ 628 |
Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Net revenues | 814 | 632 |
Vacation Ownership | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Net revenues | 604 | 449 |
Management fee revenues | Vacation Ownership | ||
Disaggregation of Revenue [Line Items] | ||
Net revenues | 95 | 88 |
Reimbursable revenues | Vacation Ownership | ||
Disaggregation of Revenue [Line Items] | ||
Net revenues | 85 | 69 |
Property management fees and reimbursable revenues | Vacation Ownership | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Net revenues | 180 | 157 |
Exchange-related revenue | Vacation Ownership | ||
Disaggregation of Revenue [Line Items] | ||
Net revenues | $ 8 | $ 7 |
Managed property owner's associations that paid travel and membership exchange fees | numberOfAssociations | 1 |
Revenue Recognition (Contract L
Revenue Recognition (Contract Liabilities) (Details) - USD ($) $ in Millions | 3 Months Ended | ||||
Mar. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | ||
Disaggregation of Revenue [Line Items] | |||||
Contract liabilities | $ 392 | $ 382 | $ 436 | $ 448 | |
Contract with Customer, Liability, Revenue Recognition Term | 1 year | ||||
Deferred subscription revenue | |||||
Disaggregation of Revenue [Line Items] | |||||
Contract liabilities | $ 175 | 166 | |||
Deferred VOI trial package revenue | |||||
Disaggregation of Revenue [Line Items] | |||||
Contract liabilities | $ 84 | 85 | |||
Deferred VOI trial package revenue | Vacation Ownership | |||||
Disaggregation of Revenue [Line Items] | |||||
Contract with Customer, Liability, Revenue Recognition Term | 1 year | ||||
Deferred exchange-related revenue | |||||
Disaggregation of Revenue [Line Items] | |||||
Contract liabilities | [1] | $ 62 | 61 | ||
Deferred exchange-related revenue | Travel and Membership | |||||
Disaggregation of Revenue [Line Items] | |||||
Contract with Customer, Liability, Revenue Recognition Term | 1 year | ||||
Deferred VOI incentive revenue | |||||
Disaggregation of Revenue [Line Items] | |||||
Contract liabilities | $ 56 | 55 | |||
Deferred co-branded credit card programs revenue | |||||
Disaggregation of Revenue [Line Items] | |||||
Contract liabilities | 11 | 12 | |||
Deferred other revenue | |||||
Disaggregation of Revenue [Line Items] | |||||
Contract liabilities | $ 4 | $ 3 | |||
[1] | Includes contractual liabilities to accommodate members for cancellations initiated by the Company due to unexpected events. These amounts are included within Accrued expenses and other liabilities on the Condensed Consolidated Balance Sheets. |
Revenue Recognition Revenue R_2
Revenue Recognition Revenue Recognition (Contract Liabilities Rollforward) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Revenue Recognition and Deferred Revenue [Abstract] | ||
Contract liabilities, Beginning Balance | $ 382 | $ 448 |
Additions | 85 | 74 |
Revenue recognized | (75) | (86) |
Contract liabilities, Ending Balance | $ 392 | $ 436 |
Revenue Recognition (Capitalize
Revenue Recognition (Capitalized Contract Costs) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Dec. 31, 2021 | |
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 | $ 27 | $ 28 |
Other assets | Travel and Membership | ||
Capitalized Contract Cost [Line Items] | ||
Capitalized contract costs | $ 18 | $ 19 |
Revenue Recognition (Performanc
Revenue Recognition (Performance Obligations) (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||||
Contract with Customer, Liability | $ 392 | $ 382 | $ 436 | $ 448 | |
Deferred subscription revenue | |||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||||
Contract with Customer, Liability | 175 | 166 | |||
Deferred VOI trial package revenue | |||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||||
Contract with Customer, Liability | 84 | 85 | |||
Deferred exchange-related revenue | |||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||||
Contract with Customer, Liability | [1] | 62 | 61 | ||
Deferred VOI incentive revenue | |||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||||
Contract with Customer, Liability | 56 | 55 | |||
Deferred co-branded credit card programs revenue | |||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||||
Contract with Customer, Liability | 11 | 12 | |||
Deferred other revenue | |||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||||
Contract with Customer, Liability | 4 | $ 3 | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-04-01 | |||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||||
Remaining performance obligations | $ 303 | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-04-01 | Deferred subscription revenue | |||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||||
Remaining performance obligations | $ 101 | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-04-01 | Deferred VOI trial package revenue | |||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||||
Remaining performance obligations | $ 81 | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-04-01 | Deferred exchange-related revenue | |||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||||
Remaining performance obligations | $ 58 | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-04-01 | Deferred VOI incentive revenue | |||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||||
Remaining performance obligations | $ 56 | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-04-01 | Deferred co-branded credit card programs revenue | |||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||||
Remaining performance obligations | $ 3 | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-04-01 | Deferred other revenue | |||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||||
Remaining performance obligations | $ 4 | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-04-01 | |||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||||
Remaining performance obligations | $ 46 | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-04-01 | Deferred subscription revenue | |||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||||
Remaining performance obligations | $ 39 | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-04-01 | Deferred VOI trial package revenue | |||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||||
Remaining performance obligations | $ 1 | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-04-01 | Deferred exchange-related revenue | |||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||||
Remaining performance obligations | $ 3 | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-04-01 | Deferred VOI incentive revenue | |||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||||
Remaining performance obligations | $ 0 | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-04-01 | Deferred co-branded credit card programs revenue | |||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||||
Remaining performance obligations | $ 3 | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-04-01 | Deferred other revenue | |||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||||
Remaining performance obligations | $ 0 | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-04-01 | |||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||||
Remaining performance obligations | $ 24 | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-04-01 | Deferred subscription revenue | |||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||||
Remaining performance obligations | $ 18 | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-04-01 | Deferred VOI trial package revenue | |||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||||
Remaining performance obligations | $ 2 | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-04-01 | Deferred exchange-related revenue | |||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||||
Remaining performance obligations | $ 1 | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-04-01 | Deferred VOI incentive revenue | |||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||||
Remaining performance obligations | $ 0 | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-04-01 | Deferred co-branded credit card programs revenue | |||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||||
Remaining performance obligations | $ 3 | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-04-01 | Deferred other revenue | |||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||||
Remaining performance obligations | $ 0 | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-04-01 | |||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||||
Remaining performance obligations | $ 19 | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-04-01 | Deferred subscription revenue | |||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||||
Remaining performance obligations | $ 17 | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-04-01 | Deferred VOI trial package revenue | |||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||||
Remaining performance obligations | $ 0 | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-04-01 | Deferred exchange-related revenue | |||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||||
Remaining performance obligations | $ 0 | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-04-01 | Deferred VOI incentive revenue | |||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||||
Remaining performance obligations | $ 0 | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-04-01 | Deferred co-branded credit card programs revenue | |||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||||
Remaining performance obligations | $ 2 | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-04-01 | Deferred other revenue | |||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||||
Remaining performance obligations | $ 0 | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year | ||||
[1] | Includes contractual liabilities to accommodate members for cancellations initiated by the Company due to unexpected events. These amounts are included within Accrued expenses and other liabilities on the Condensed Consolidated Balance Sheets. |
Revenue Recognition Revenue R_3
Revenue Recognition Revenue Recognition (Disaggregation of Net Revenues) (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | ||
Disaggregation of Revenue [Line Items] | |||
Net revenues | $ 809 | $ 628 | |
Operating Segments | |||
Disaggregation of Revenue [Line Items] | |||
Net revenues | 814 | 632 | |
Corporate and other | |||
Disaggregation of Revenue [Line Items] | |||
Net revenues | [1] | (5) | (4) |
Corporate and other | Eliminations | |||
Disaggregation of Revenue [Line Items] | |||
Net revenues | (5) | (4) | |
Vacation Ownership | Operating Segments | |||
Disaggregation of Revenue [Line Items] | |||
Net revenues | 604 | 449 | |
Vacation Ownership | Operating Segments | Vacation ownership interest sales | |||
Disaggregation of Revenue [Line Items] | |||
Net revenues | 297 | 172 | |
Vacation Ownership | Operating Segments | Property management fees and reimbursable revenues | |||
Disaggregation of Revenue [Line Items] | |||
Net revenues | 180 | 157 | |
Vacation Ownership | Operating Segments | Consumer financing | |||
Disaggregation of Revenue [Line Items] | |||
Net revenues | 98 | 98 | |
Vacation Ownership | Operating Segments | Fee-for-Service commissions | |||
Disaggregation of Revenue [Line Items] | |||
Net revenues | 17 | 12 | |
Vacation Ownership | Operating Segments | Ancillary revenues | |||
Disaggregation of Revenue [Line Items] | |||
Net revenues | 12 | 10 | |
Travel and Membership | Operating Segments | |||
Disaggregation of Revenue [Line Items] | |||
Net revenues | 210 | 183 | |
Travel and Membership | Operating Segments | Ancillary revenues | |||
Disaggregation of Revenue [Line Items] | |||
Net revenues | 9 | 10 | |
Travel and Membership | Operating Segments | Transaction revenues | |||
Disaggregation of Revenue [Line Items] | |||
Net revenues | 156 | 132 | |
Travel and Membership | Operating Segments | Subscription revenues | |||
Disaggregation of Revenue [Line Items] | |||
Net revenues | $ 45 | $ 41 | |
[1] | Includes the elimination of transactions between segments. |
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 | ||
Mar. 31, 2022 | Mar. 31, 2021 | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Net income attributable to Travel + Leisure Co. shareholders | $ 51 | $ 29 | |
Basic earnings/(loss) per share | |||
Basic earnings per share | [1] | $ 0.59 | $ 0.33 |
Diluted earnings per share | |||
Diluted earnings per share | [1] | $ 0.59 | $ 0.33 |
Basic weighted average shares outstanding (in shares) | 85.9 | 86.3 | |
Stock-settled appreciation rights (“SSARs”), RSUs, PSUs, and NQs (in shares) | [2],[3],[4] | 1.1 | 0.6 |
Diluted weighted average shares outstanding (in shares) | [5] | 87 | 86.9 |
Earnings Per Share, Basic and Diluted, Other Disclosures [Abstract] | |||
Aggregate dividends paid to shareholders | $ 35 | $ 26 | |
Restricted Stock Units (RSUs) | |||
Earnings Per Share, Basic and Diluted, Other Disclosures [Abstract] | |||
Shares excluded from computation of diluted EPS (in shares) | 0.6 | 0.2 | |
Performance Shares [Member] | |||
Earnings Per Share, Basic and Diluted, Other Disclosures [Abstract] | |||
Shares excluded from computation of diluted EPS (in shares) | 0.6 | 0.4 | |
Share-based Payment Arrangement, Option [Member] | |||
Earnings Per Share, Basic and Diluted, Other Disclosures [Abstract] | |||
Shares excluded from computation of diluted EPS (in shares) | 1.1 | 1.5 | |
[1] | Earnings per share amounts are calculated using whole numbers. | ||
[2] | Excludes 0.6 million and 0.2 million of restricted stock units (“RSUs”) that would have been anti-dilutive to EPS for the three months ended March 31, 2022 and 2021. These shares could potentially dilute EPS in the future. | ||
[3] | Excludes 1.1 million and 1.5 million of outstanding non-qualified stock option (“NQs”) awards that would have been anti-dilutive to EPS for the three months ended March 31, 2022 and 2021. These outstanding stock option awards could potentially dilute EPS in the future | ||
[4] | Excludes performance-vested restricted stock units (“PSUs”) of 0.6 million and 0.4 million for the three months ended March 31, 2022 and 2021 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. |
Earnings_(Loss) Per Share (Curr
Earnings/(Loss) Per Share (Current Stock Repurchase Program) (Details) - USD ($) $ in Millions | Apr. 25, 2022 | Mar. 31, 2022 |
Stock Repurchase Activity [Roll Forward] | ||
Beginning Balance (in shares) | 136,320,631 | |
Ending Balance (in shares) | 137,122,411 | |
Treasury Stock, Value, Beginning Balance | $ 6,534 | |
Treasury Stock, Value, Ending Balance | $ 6,579 | |
Subsequent Event [Member] | ||
Stock Repurchase Activity [Roll Forward] | ||
Treasury Stock Acquired, Repurchase Authorization | 500 million | |
Share Repurchase Program | ||
Stock Repurchase Activity [Roll Forward] | ||
Beginning Balance (in shares) | 111,800,000 | |
Repurchases | 800,000 | |
Ending Balance (in shares) | 112,600,000 | |
Treasury Stock, Value, Beginning Balance | $ 5,753 | |
Repurchases | 45 | |
Treasury Stock, Value, Ending Balance | 5,798 | |
Stock Repurchase Program Increase in Authorized Amount | 81 | |
Remaining authorized amount under share repurchases | $ 283 |
Acquisitions Narrative (Details
Acquisitions Narrative (Details) - USD ($) $ in Millions | Jan. 05, 2021 | Jun. 30, 2022 | Mar. 31, 2022 | Jun. 30, 2021 | Mar. 31, 2021 |
Business Acquisition [Line Items] | |||||
Payments to acquire business | $ 0 | $ 35 | |||
Travel + Leisure | |||||
Business Acquisition [Line Items] | |||||
Business Combination, Consideration Transferred | $ 100 | ||||
Payments to acquire business | $ 20 | ||||
Travel + Leisure | Cash used in Investing Activities | |||||
Business Acquisition [Line Items] | |||||
Payments to acquire business | $ 35 | ||||
Travel + Leisure | Subsequent Event [Member] | |||||
Business Acquisition [Line Items] | |||||
Payments to acquire business | $ 20 |
Vacation Ownership Contract R_4
Vacation Ownership Contract Receivables (Current And Long-Term Vacation Ownership Contract Receivables) (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | |
Accounts, Notes, Loans and Financing Receivables [Line Items] | |||||
Non-securitized contract receivables | [1] | $ 2,755 | $ 2,819 | ||
Financing Receivable, Allowance for Credit Loss | 494 | 510 | $ 622 | $ 693 | |
Vacation ownership contract receivables, net | 2,261 | 2,309 | |||
Securitized | |||||
Accounts, Notes, Loans and Financing Receivables [Line Items] | |||||
Non-securitized contract receivables | [2] | 2,053 | 2,061 | ||
Securitized | Trade Accounts Receivable | |||||
Accounts, Notes, Loans and Financing Receivables [Line Items] | |||||
Interest receivables on securitized contract receivables | 16 | 17 | |||
Non-securitized | |||||
Accounts, Notes, Loans and Financing Receivables [Line Items] | |||||
Non-securitized contract receivables | [3] | 702 | 758 | ||
Non-securitized | Trade Accounts Receivable | |||||
Accounts, Notes, Loans and Financing Receivables [Line Items] | |||||
Interest receivables on securitized contract receivables | $ 6 | $ 5 | |||
[1] | Includes contracts under temporary deferment (up to 180 days) of $5 million and $7 million as of March 31, 2022 and December 31, 2021. | ||||
[2] | Excludes $16 million and $17 million of accrued interest on VOCRs as of March 31, 2022 and December 31, 2021, which are included in Trade receivables, net on the Condensed Consolidated Balance Sheets. | ||||
[3] | Excludes $6 million and $5 million of accrued interest on VOCRs as of March 31, 2022 and December 31, 2021, which are included in Trade receivables, net on the Condensed Consolidated Balance Sheets. |
Vacation Ownership Contract R_5
Vacation Ownership Contract Receivables (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 21 Months Ended | |||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | |
Loans and Leases Receivable Disclosure [Line Items] | |||||
Interest income on securitized receivables | $ 69 | $ 79 | |||
Originated vacation ownership contract receivables | 218 | 103 | |||
Vacation ownership contract principal collections | $ 221 | 193 | |||
Weighted average interest rate | 14.60% | 14.50% | |||
Provision for Loan, Lease, and Other Losses | $ 48 | 38 | |||
Provision for loan losses | $ (48) | (38) | |||
Minimum days which Company ceases to accrue interest on VOI contract receivables | 90 days | ||||
VOI contract receivable written off as credit loss | 120 days | ||||
Financing Receivable, Allowance for Credit Loss | $ 494 | 622 | $ 510 | $ 693 | |
COVID-19 [Member] | |||||
Loans and Leases Receivable Disclosure [Line Items] | |||||
Financing Receivable, Allowance for Credit Loss | 0 | ||||
Vacation ownership interest sales | COVID-19 [Member] | |||||
Loans and Leases Receivable Disclosure [Line Items] | |||||
Provision for loan losses | 0 | 0 | $ (225) | 111 | |
Cost/(recovery) of vacation ownership interest [Member] | COVID-19 [Member] | |||||
Loans and Leases Receivable Disclosure [Line Items] | |||||
Estimated inventory recoveries during the period | $ 0 | $ 0 | $ (55) | $ 40 |
Vacation Ownership Contract R_6
Vacation Ownership Contract Receivables (Allowance For Loan Losses On Vacation Ownership Contract Receivables) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Allowance for Loan Losses [Roll Forward] | ||
Financing Receivable, Allowance for Credit Loss, Beginning Balance | $ 510 | $ 693 |
Provision for loan losses | 48 | 38 |
Contract receivables write-offs, net | (64) | (109) |
Financing Receivable, Allowance for Credit Loss, Ending Balance | $ 494 | $ 622 |
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 | Mar. 31, 2022 | Dec. 31, 2021 | |
Financing Receivables, Recorded Investment [Line Items] | |||
Non-securitized contract receivables | [1] | $ 2,755 | $ 2,819 |
Vacation ownership contract receivable, under temporary deferment | 5 | 7 | |
FICO Score, Greater than 700 [Member] | |||
Financing Receivables, Recorded Investment [Line Items] | |||
Non-securitized contract receivables | [1] | 1,622 | 1,665 |
FICO Score, 600 to 699 [Member] | |||
Financing Receivables, Recorded Investment [Line Items] | |||
Non-securitized contract receivables | [1] | 759 | 782 |
Less than 600 | |||
Financing Receivables, Recorded Investment [Line Items] | |||
Non-securitized contract receivables | [1] | 130 | 124 |
No Score | |||
Financing Receivables, Recorded Investment [Line Items] | |||
Non-securitized contract receivables | [1] | 75 | 77 |
Asia Pacific | |||
Financing Receivables, Recorded Investment [Line Items] | |||
Non-securitized contract receivables | [1] | 169 | 171 |
Current | |||
Financing Receivables, Recorded Investment [Line Items] | |||
Non-securitized contract receivables | 2,656 | 2,703 | |
Current | FICO Score, Greater than 700 [Member] | |||
Financing Receivables, Recorded Investment [Line Items] | |||
Non-securitized contract receivables | 1,593 | 1,630 | |
Current | FICO Score, 600 to 699 [Member] | |||
Financing Receivables, Recorded Investment [Line Items] | |||
Non-securitized contract receivables | 720 | 734 | |
Current | Less than 600 | |||
Financing Receivables, Recorded Investment [Line Items] | |||
Non-securitized contract receivables | 104 | 98 | |
Current | No Score | |||
Financing Receivables, Recorded Investment [Line Items] | |||
Non-securitized contract receivables | 71 | 72 | |
Current | Asia Pacific | |||
Financing Receivables, Recorded Investment [Line Items] | |||
Non-securitized contract receivables | 168 | 169 | |
31 - 60 days | |||
Financing Receivables, Recorded Investment [Line Items] | |||
Non-securitized contract receivables | 42 | 55 | |
31 - 60 days | FICO Score, Greater than 700 [Member] | |||
Financing Receivables, Recorded Investment [Line Items] | |||
Non-securitized contract receivables | 14 | 17 | |
31 - 60 days | FICO Score, 600 to 699 [Member] | |||
Financing Receivables, Recorded Investment [Line Items] | |||
Non-securitized contract receivables | 17 | 24 | |
31 - 60 days | Less than 600 | |||
Financing Receivables, Recorded Investment [Line Items] | |||
Non-securitized contract receivables | 8 | 10 | |
31 - 60 days | No Score | |||
Financing Receivables, Recorded Investment [Line Items] | |||
Non-securitized contract receivables | 2 | 3 | |
31 - 60 days | Asia Pacific | |||
Financing Receivables, Recorded Investment [Line Items] | |||
Non-securitized contract receivables | 1 | 1 | |
61 - 90 days | |||
Financing Receivables, Recorded Investment [Line Items] | |||
Non-securitized contract receivables | 30 | 29 | |
61 - 90 days | FICO Score, Greater than 700 [Member] | |||
Financing Receivables, Recorded Investment [Line Items] | |||
Non-securitized contract receivables | 9 | 9 | |
61 - 90 days | FICO Score, 600 to 699 [Member] | |||
Financing Receivables, Recorded Investment [Line Items] | |||
Non-securitized contract receivables | 12 | 12 | |
61 - 90 days | Less than 600 | |||
Financing Receivables, Recorded Investment [Line Items] | |||
Non-securitized contract receivables | 8 | 7 | |
61 - 90 days | No Score | |||
Financing Receivables, Recorded Investment [Line Items] | |||
Non-securitized contract receivables | 1 | 1 | |
61 - 90 days | Asia Pacific | |||
Financing Receivables, Recorded Investment [Line Items] | |||
Non-securitized contract receivables | 0 | 0 | |
91 - 120 days | |||
Financing Receivables, Recorded Investment [Line Items] | |||
Non-securitized contract receivables | 27 | 32 | |
91 - 120 days | FICO Score, Greater than 700 [Member] | |||
Financing Receivables, Recorded Investment [Line Items] | |||
Non-securitized contract receivables | 6 | 9 | |
91 - 120 days | FICO Score, 600 to 699 [Member] | |||
Financing Receivables, Recorded Investment [Line Items] | |||
Non-securitized contract receivables | 10 | 12 | |
91 - 120 days | Less than 600 | |||
Financing Receivables, Recorded Investment [Line Items] | |||
Non-securitized contract receivables | 10 | 9 | |
91 - 120 days | No Score | |||
Financing Receivables, Recorded Investment [Line Items] | |||
Non-securitized contract receivables | 1 | 1 | |
91 - 120 days | Asia Pacific | |||
Financing Receivables, Recorded Investment [Line Items] | |||
Non-securitized contract receivables | $ 0 | $ 1 | |
[1] | Includes contracts under temporary deferment (up to 180 days) of $5 million and $7 million as of March 31, 2022 and December 31, 2021. |
Vacation Ownership Contract R_8
Vacation Ownership Contract Receivables Vacation Ownership Contract Receivables (Year of Origination) (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 | |
Financing Receivable, Origination [Line Items] | |||
Financing Receivable, Year One, Originated, Current Fiscal Year | $ 253 | $ 815 | |
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year | 751 | 390 | |
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year | 329 | 581 | |
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year | 497 | 414 | |
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year | 379 | 273 | |
Financing Receivable, Originated, More than Five Years before Current Fiscal Year | 546 | 346 | |
Non-securitized contract receivables | [1] | 2,755 | 2,819 |
FICO Score, Greater than 700 [Member] | |||
Financing Receivable, Origination [Line Items] | |||
Financing Receivable, Year One, Originated, Current Fiscal Year | 170 | 534 | |
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year | 455 | 224 | |
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year | 196 | 324 | |
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year | 276 | 234 | |
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year | 218 | 157 | |
Financing Receivable, Originated, More than Five Years before Current Fiscal Year | 307 | 192 | |
Non-securitized contract receivables | [1] | 1,622 | 1,665 |
FICO Score, 600 to 699 [Member] | |||
Financing Receivable, Origination [Line Items] | |||
Financing Receivable, Year One, Originated, Current Fiscal Year | 48 | 221 | |
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year | 229 | 105 | |
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year | 89 | 168 | |
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year | 142 | 117 | |
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year | 104 | 76 | |
Financing Receivable, Originated, More than Five Years before Current Fiscal Year | 147 | 95 | |
Non-securitized contract receivables | [1] | 759 | 782 |
Less than 600 | |||
Financing Receivable, Origination [Line Items] | |||
Financing Receivable, Year One, Originated, Current Fiscal Year | 0 | 11 | |
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year | 27 | 17 | |
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year | 17 | 37 | |
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year | 33 | 25 | |
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year | 22 | 15 | |
Financing Receivable, Originated, More than Five Years before Current Fiscal Year | 31 | 19 | |
Non-securitized contract receivables | [1] | 130 | 124 |
No Score | |||
Financing Receivable, Origination [Line Items] | |||
Financing Receivable, Year One, Originated, Current Fiscal Year | 10 | 11 | |
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year | 6 | 6 | |
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year | 5 | 19 | |
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year | 16 | 14 | |
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year | 13 | 11 | |
Financing Receivable, Originated, More than Five Years before Current Fiscal Year | 25 | 16 | |
Non-securitized contract receivables | [1] | 75 | 77 |
Asia Pacific | |||
Financing Receivable, Origination [Line Items] | |||
Financing Receivable, Year One, Originated, Current Fiscal Year | 25 | 38 | |
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year | 34 | 38 | |
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year | 22 | 33 | |
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year | 30 | 24 | |
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year | 22 | 14 | |
Financing Receivable, Originated, More than Five Years before Current Fiscal Year | 36 | 24 | |
Non-securitized contract receivables | [1] | $ 169 | $ 171 |
[1] | Includes contracts under temporary deferment (up to 180 days) of $5 million and $7 million as of March 31, 2022 and December 31, 2021. |
Inventory (Summary of Inventory
Inventory (Summary of Inventory) (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Inventory Disclosure [Abstract] | ||
Completed VOI inventory | $ 916 | $ 998 |
Estimated VOI recoveries | 180 | 187 |
VOI construction in process | 15 | 13 |
Inventory sold subject to repurchase | 13 | 13 |
Vacation exchange credits and other | 4 | 4 |
Land held for VOI development | 1 | 1 |
Total inventory | $ 1,129 | $ 1,216 |
Inventory (Narrative) (Details)
Inventory (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2013 | |
Inventory [Line Items] | |||
Inventory transferred to Property and Equipment | $ 70 | $ 10 | |
Las Vegas | Maximum [Member] | |||
Inventory [Line Items] | |||
Long-term Purchase Commitment, Amount | $ 65 | ||
Vacation Ownership Inventory Sales | |||
Inventory [Line Items] | |||
No gain or loss on sales transactions | $ 0 |
Inventory (Activity Related to
Inventory (Activity Related to Inventory Obligations) (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | ||
Inventory [Line Items] | |||
Total Inventory obligations, Beginning Balance | $ 14 | $ 83 | |
Purchases | 19 | 44 | |
Payments | (13) | (78) | |
Total Inventory obligations, Ending Balance | 20 | 49 | |
Las Vegas | |||
Inventory [Line Items] | |||
Inventory Sold Under Agreement to Repurchase, Repurchase Liability, Beginning Balance | [1] | 13 | 13 |
Purchases | [1] | 0 | 0 |
Payments | [1] | 0 | 0 |
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] | 0 | 31 |
Purchases | [1] | 0 | 25 |
Payments | [1] | 0 | (56) |
Inventory Sold Under Agreement to Repurchase, Repurchase Liability, Ending Balance | [1] | 0 | 0 |
Orlando | |||
Inventory [Line Items] | |||
Inventory Sold Under Agreement to Repurchase, Repurchase Liability, Beginning Balance | [1] | 0 | 22 |
Purchases | [1] | 0 | 0 |
Payments | [1] | 0 | 0 |
Inventory Sold Under Agreement to Repurchase, Repurchase Liability, Ending Balance | [1] | 0 | 22 |
Other Inventory Sales | |||
Inventory [Line Items] | |||
Other inventory obligations, Beginning Balance | [2] | 1 | 17 |
Purchases | [2] | 19 | 19 |
Payments | [2] | (13) | (22) |
Other inventory obligations, Ending Balance | [2] | $ 7 | $ 14 |
[1] | Included in Accrued expenses and other liabilities on the Condensed Consolidated Balance Sheets. | ||
[2] | Included in Accounts payable on the Condensed Consolidated Balance Sheets. |
Property and equipment (Details
Property and equipment (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | $ 1,709 | $ 1,632 |
Less: accumulated depreciation and amortization | 966 | 943 |
Property and equipment, net | 743 | 689 |
Building and leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 718 | 653 |
Capitalized software | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 710 | 707 |
Furniture, fixtures and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 207 | 204 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 30 | 30 |
Construction in progress | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 23 | 18 |
Finance leases | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | $ 21 | $ 20 |
Debt (Schedule of Long-term Deb
Debt (Schedule of Long-term Debt Instruments) (Details) $ in Millions, $ in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | |||||
Mar. 31, 2022USD ($) | Dec. 31, 2021USD ($) | Mar. 31, 2022AUD ($) | Mar. 31, 2022NZD ($) | Mar. 04, 2022USD ($) | |||
Debt Instrument [Line Items] | |||||||
Finance lease liabilities | $ 9 | ||||||
Long-term Debt | $ 5,328 | ||||||
$300 million secured term loan B (due May 2025) | Term Loan B [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Weighted average coupon rate | 2.39% | 2.39% | |||||
Term Notes [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt financing cost | $ 20 | $ 18 | |||||
Term Notes [Member] | Term Notes [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Non-recourse vacation ownership debt (VIE) | [1],[2] | 1,658 | 1,614 | ||||
Non-recourse bank conduit facility [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Non-recourse vacation ownership debt (VIE) | [3] | 291 | |||||
Line of Credit Facility, Maximum Borrowing Capacity | [3] | 824 | |||||
Non-recourse bank conduit facility [Member] | USD bank conduit facility (due August 2021) [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Non-recourse vacation ownership debt (VIE) | [1],[4] | 163 | 190 | ||||
Debt instrument, face amount | 600 | 800 | $ 600 | ||||
Non-recourse bank conduit facility [Member] | AUD/NZD bank conduit Facility (due September 2021) [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Non-recourse vacation ownership debt (VIE) | [1],[5] | 128 | 130 | ||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 250 | $ 48 | |||||
Non-Recourse Vacation Ownership Debt [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Non-recourse vacation ownership debt (VIE) | [1] | 1,949 | 1,934 | ||||
Long-term Debt | 1,949 | ||||||
Long-term vacation ownership contract receivables | 2,200 | 2,170 | |||||
Revolving Credit Facility | Secured Revolving Credit Facility due May 2023 | Revolving Credit Facility | |||||||
Debt Instrument [Line Items] | |||||||
Revolving credit facility | [7],[8] | 0 | [6] | $ 0 | |||
Debt instrument, face amount | 1,000 | ||||||
Line of Credit Facility, Maximum Borrowing Capacity | [6] | $ 1,000 | |||||
Weighted average coupon rate | 4.59% | 3.19% | |||||
Debt | |||||||
Debt Instrument [Line Items] | |||||||
Long-term Debt | [7] | $ 3,379 | $ 3,379 | ||||
Debt financing cost | 7 | 8 | |||||
Unamortized discount | 19 | 20 | |||||
Debt | $300 million secured term loan B (due May 2025) | Term Loan B [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt | [7],[9] | 288 | 288 | ||||
Debt instrument, face amount | 300 | ||||||
Debt | 3.90% Secured Notes (Due March 2023) [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Senior notes | [7],[10] | 401 | 401 | ||||
Debt instrument, face amount | 400 | ||||||
Unamortized (gains)/losses from the settlement of a derivative | $ (1) | (2) | |||||
Debt Instrument, Interest Rate, Stated Percentage | 3.90% | 3.90% | 3.90% | ||||
Debt | 5.40% Secured Notes (Due April 2024) [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Senior notes | [7] | $ 299 | 299 | ||||
Debt instrument, face amount | $ 300 | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 5.65% | 5.65% | 5.65% | ||||
Debt | 6.60% secured notes due October 2025 [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Senior notes | [7],[11] | $ 345 | 345 | ||||
Debt instrument, face amount | 350 | ||||||
Unamortized (gains)/losses from the settlement of a derivative | $ 4 | 4 | |||||
Debt Instrument, Interest Rate, Stated Percentage | 6.60% | 6.60% | 6.60% | ||||
Debt | 6.625% Senior Secured Notes Due July 2026 [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Senior notes | [7] | $ 643 | 643 | ||||
Debt instrument, face amount | $ 650 | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 6.625% | 6.625% | 6.625% | ||||
Debt | 6.00% secured notes due April 2027 [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Senior notes | [7],[12] | $ 407 | 407 | ||||
Debt instrument, face amount | 400 | ||||||
Unamortized (gains)/losses from the settlement of a derivative | $ (9) | (9) | |||||
Debt Instrument, Interest Rate, Stated Percentage | 6.00% | 6.00% | 6.00% | ||||
Debt | 4.50% Secured Notes (due Dec 2029) | |||||||
Debt Instrument [Line Items] | |||||||
Senior notes | [7] | $ 641 | 641 | ||||
Debt instrument, face amount | $ 650 | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 4.50% | 4.50% | 4.50% | ||||
Debt | 4.625% Secured notes due March 2030 [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Senior notes | [7] | $ 346 | 346 | ||||
Debt instrument, face amount | $ 350 | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 4.625% | 4.625% | 4.625% | ||||
Debt | Finance leases [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Finance lease liabilities | [7] | $ 9 | $ 9 | ||||
[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 $2.2 billion and $2.17 billion of underlying gross VOCRs and related assets (which legally are not assets of the Company) as of March 31, 2022 and December 31, 2021. | ||||||
[2] | The carrying amounts of the term notes are net of deferred financing costs of $20 million and $18 million as of March 31, 2022 and December 31, 2021. | ||||||
[3] | Consists of the Company’s USD bank conduit facility and AUD/NZD bank conduit facility. The capacity of these facilities is subject to the Company’s ability to provide additional assets to collateralize additional non-recourse borrowings. | ||||||
[4] | The Company has a borrowing capacity of $600 million under the USD bank conduit facility through July 2024. Borrowings under this facility are required to be repaid as the collateralized receivables amortize but no later than August 2025. | ||||||
[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 $19 million and $20 million as of March 31, 2022 and December 31, 2021, and net of unamortized debt financing costs of $7 million and $8 million as of March 31, 2022 and December 31, 2021. | ||||||
[8] | The weighted average effective interest rate on borrowings from this facility were 4.59% and 3.19% as of March 31, 2022 and December 31, 2021. | ||||||
[9] | The weighted average effective interest rate on borrowings from this facility was 2.39% as of March 31, 2022 and December 31, 2021. | ||||||
[10] | Includes $1 million and $2 million of unamortized gains from the settlement of a derivative as of March 31, 2022 and December 31, 2021. | ||||||
[11] | Includes $4 million of unamortized losses from the settlement of a derivative as of March 31, 2022 and December 31, 2021. | ||||||
[12] | Includes $9 million of unamortized gains from the settlement of a derivative as of March 31, 2022 and December 31, 2021. |
Debt Debt (Narrative) (Details)
Debt Debt (Narrative) (Details) $ in Millions, $ in Millions, $ in Millions | Mar. 31, 2022USD ($) | Mar. 31, 2022AUD ($) | Mar. 31, 2022NZD ($) | Mar. 23, 2022USD ($) | Mar. 04, 2022USD ($) | Dec. 31, 2021USD ($) | |
Non-recourse bank conduit facility [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Line of Credit Facility, Maximum Borrowing Capacity | [1] | $ 824 | |||||
AUD/NZD bank conduit Facility (due September 2021) [Member] | Non-recourse bank conduit facility [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 250 | $ 48 | |||||
Sierra Timeshare 2022-1 | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, face amount | $ 275 | ||||||
Long-term Debt, Percentage Bearing Variable Interest, Percentage Rate | 3.84% | ||||||
Debt Instrument, Advance Rate | 98.00% | ||||||
USD bank conduit facility (due August 2021) [Member] | Non-recourse bank conduit facility [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, face amount | $ 600 | $ 600 | $ 800 | ||||
[1] | Consists of the Company’s USD bank conduit facility and AUD/NZD bank conduit facility. The capacity of these facilities is subject to the Company’s ability to provide additional assets to collateralize additional non-recourse borrowings. |
Debt (Summary Of Outstanding De
Debt (Summary Of Outstanding Debt Maturities) (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 | |
Debt Instrument [Line Items] | |||
Within 1 year | $ 632 | ||
Between 1 and 2 years | 262 | ||
Between 2 and 3 years | 533 | ||
Between 3 and 4 years | 928 | ||
Between 4 and 5 years | 850 | ||
Thereafter | 2,123 | ||
Total long-term debt | 5,328 | ||
Non-Recourse Vacation Ownership Debt [Member] | |||
Debt Instrument [Line Items] | |||
Within 1 year | 224 | ||
Between 1 and 2 years | 256 | ||
Between 2 and 3 years | 230 | ||
Between 3 and 4 years | 303 | ||
Between 4 and 5 years | 207 | ||
Thereafter | 729 | ||
Total long-term debt | 1,949 | ||
Debt | |||
Debt Instrument [Line Items] | |||
Within 1 year | 408 | ||
Between 1 and 2 years | 6 | ||
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 | $ 3,379 |
[1] | The carrying amounts of the secured notes and term loan are net of unamortized discounts of $19 million and $20 million as of March 31, 2022 and December 31, 2021, and net of unamortized debt financing costs of $7 million and $8 million as of March 31, 2022 and December 31, 2021. |
Debt (Summary Of Available Capa
Debt (Summary Of Available Capacity Under Borrowing Arrangements) (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 | ||
Non-recourse bank conduit facility [Member] | ||||
Debt Instrument [Line Items] | ||||
Total capacity | [1] | $ 824 | ||
Less: Outstanding borrowings | [1] | 291 | ||
Letters of Credit Outstanding, Amount | [1] | 0 | ||
Available capacity | [1] | 533 | ||
Revolving Credit Facility | Revolving Credit Facility | Secured Revolving Credit Facility due May 2023 | ||||
Debt Instrument [Line Items] | ||||
Total capacity | [2] | 1,000 | ||
Less: Outstanding borrowings | [3],[4] | 0 | [2] | $ 0 |
Letters of Credit Outstanding, Amount | [2] | 2 | ||
Available capacity | [2] | 998 | ||
Debt instrument, face amount | $ 1,000 | |||
[1] | Consists of the Company’s USD bank conduit facility and AUD/NZD bank conduit facility. The capacity of these facilities is subject to the Company’s ability to provide additional assets to collateralize additional non-recourse borrowings. | |||
[2] | Consists of the Company’s $1.0 billion secured revolving credit facility. | |||
[3] | The carrying amounts of the secured notes and term loan are net of unamortized discounts of $19 million and $20 million as of March 31, 2022 and December 31, 2021, and net of unamortized debt financing costs of $7 million and $8 million as of March 31, 2022 and December 31, 2021. | |||
[4] | The weighted average effective interest rate on borrowings from this facility were 4.59% and 3.19% as of March 31, 2022 and December 31, 2021. |
Debt (Debt Covenants) (Details)
Debt (Debt Covenants) (Details) | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 |
Debt Instrument [Line Items] | |||
Maximum leverage ratio | 4.25 | ||
Minimum interest coverage ratio | 2.50 | ||
Interest Coverage Ratio | 4.32 | ||
First Lien Leverage Ratio | 3.79 | ||
Revolving Credit Facility | Second Amendment | Bank of America, N.A. | |||
Debt Instrument [Line Items] | |||
Maximum leverage ratio | 4.75 | 4.75 | |
Revolving Credit Facility | Subsequent Event [Member] | Second Amendment | Bank of America, N.A. | |||
Debt Instrument [Line Items] | |||
Maximum leverage ratio | 4.25 | ||
Revolving Credit Facility | Maximum [Member] | Second Amendment | Bank of America, N.A. | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Covenant, Leverage Ratio, Tier | 3.75 |
Debt (Interest Expense Narrativ
Debt (Interest Expense Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Debt Instrument [Line Items] | ||
Interest expense | $ 47 | $ 53 |
Capitalized Interest Costs, Including Allowance for Funds Used During Construction | 1 | 1 |
Consumer financing interest | 17 | 24 |
consumer finance interest [Member] | ||
Debt Instrument [Line Items] | ||
Consumer financing interest | 17 | 24 |
Debt | ||
Debt Instrument [Line Items] | ||
Cash paid for interest | 41 | 70 |
Non-Recourse Vacation Ownership Debt [Member] | ||
Debt Instrument [Line Items] | ||
Cash paid for interest | $ 11 | $ 17 |
Variable Interest Entities (Ass
Variable Interest Entities (Assets And Liabilities Of Vacation Ownership SPEs) (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2021 | |
Schedule Of Transfer And Financial Assets [Line Items] | ||||
Restricted cash (VIE - $114 as of 2022 and $84 as of 2021) | $ 166 | $ 128 | $ 139 | |
Other assets | 369 | 339 | ||
Total assets | 6,600 | 6,588 | ||
Total SPE liabilities | 7,411 | 7,382 | ||
Variable Interest Entity, Primary Beneficiary [Member] | ||||
Schedule Of Transfer And Financial Assets [Line Items] | ||||
Restricted cash (VIE - $114 as of 2022 and $84 as of 2021) | 114 | 84 | ||
Vacation Ownership SPEs | ||||
Schedule Of Transfer And Financial Assets [Line Items] | ||||
Deferred financing cost related to securitized debt | 20 | 18 | ||
Vacation Ownership SPEs | Variable Interest Entity, Primary Beneficiary [Member] | ||||
Schedule Of Transfer And Financial Assets [Line Items] | ||||
Securitized contract receivables, gross | [1] | 2,053 | 2,061 | |
Restricted cash (VIE - $114 as of 2022 and $84 as of 2021) | [2] | 114 | 84 | |
Interest receivables on securitized contract receivables | [3] | 16 | 17 | |
Other assets | [4] | 14 | 4 | |
Total assets | 2,197 | 2,166 | ||
Other liabilities | [5] | 2 | 2 | |
Total SPE liabilities | 1,951 | 1,936 | ||
SPE assets in excess of SPE liabilities | 246 | 230 | ||
Term Notes [Member] | Vacation Ownership SPEs | Variable Interest Entity, Primary Beneficiary [Member] | ||||
Schedule Of Transfer And Financial Assets [Line Items] | ||||
Non-recourse vacation ownership debt (VIE) | [6],[7] | 1,658 | 1,614 | |
Non-recourse bank conduit facility [Member] | ||||
Schedule Of Transfer And Financial Assets [Line Items] | ||||
Non-recourse vacation ownership debt (VIE) | [8] | 291 | ||
Non-recourse bank conduit facility [Member] | Vacation Ownership SPEs | Variable Interest Entity, Primary Beneficiary [Member] | ||||
Schedule Of Transfer And Financial Assets [Line Items] | ||||
Non-recourse vacation ownership debt (VIE) | [6] | $ 291 | $ 320 | |
[1] | Included in Vacation ownership contract receivables, net on the Condensed Consolidated Balance Sheets. | |||
[2] | Included in Restricted cash on the Condensed Consolidated Balance Sheets. | |||
[3] | Included in Trade receivables, net on the Condensed Consolidated Balance Sheets. | |||
[4] | Primarily includes deferred financing costs for the bank conduit facility and a security investment asset, which is included in Other assets on the Condensed Consolidated Balance Sheets. | |||
[5] | Primarily includes accrued interest on non-recourse debt, which is included in Accrued expenses and other liabilities on the Condensed Consolidated Balance Sheets. | |||
[6] | Included in Non-recourse vacation ownership debt on the Condensed Consolidated Balance Sheets. | |||
[7] | Includes deferred financing costs of $20 million and $18 million as of March 31, 2022 and December 31, 2021, related to non-recourse debt. | |||
[8] | Consists of the Company’s USD bank conduit facility and AUD/NZD bank conduit facility. The capacity of these facilities is subject to the Company’s ability to provide additional assets to collateralize additional non-recourse borrowings. |
Variable Interest Entities (Nar
Variable Interest Entities (Narrative) (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 | |
Schedule Of Transfer And Financial Assets [Line Items] | |||
Non-securitized contract receivables | [1] | $ 2,755 | $ 2,819 |
Non Securitized Receivable [Member] | |||
Schedule Of Transfer And Financial Assets [Line Items] | |||
Non-securitized contract receivables | [2] | 702 | 758 |
Non Securitized Receivable [Member] | Variable Interest Entity, Primary Beneficiary [Member] | |||
Schedule Of Transfer And Financial Assets [Line Items] | |||
Non-securitized contract receivables | $ 702 | $ 758 | |
[1] | Includes contracts under temporary deferment (up to 180 days) of $5 million and $7 million as of March 31, 2022 and December 31, 2021. | ||
[2] | Excludes $6 million and $5 million of accrued interest on VOCRs as of March 31, 2022 and December 31, 2021, which are included in Trade receivables, net on the Condensed Consolidated Balance Sheets. |
Variable Interest Entities (Sum
Variable Interest Entities (Summary Of Total Vacation Ownership Receivables And Other Securitized Assets, Net Of Securitized Liabilities And Allowance For Loan Losses) (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 | |
Schedule Of Transfer And Financial Assets [Line Items] | |||
Non-securitized contract receivables | [1] | $ 2,755 | $ 2,819 |
Non Securitized Receivable [Member] | |||
Schedule Of Transfer And Financial Assets [Line Items] | |||
Non-securitized contract receivables | [2] | 702 | 758 |
Variable Interest Entity, Primary Beneficiary [Member] | Non Securitized Receivable [Member] | |||
Schedule Of Transfer And Financial Assets [Line Items] | |||
SPE assets in excess of SPE liabilities | 246 | 230 | |
Non-securitized contract receivables | 702 | 758 | |
Less: allowance for loan losses | 494 | 510 | |
Total, net | $ 454 | $ 478 | |
[1] | Includes contracts under temporary deferment (up to 180 days) of $5 million and $7 million as of March 31, 2022 and December 31, 2021. | ||
[2] | Excludes $6 million and $5 million of accrued interest on VOCRs as of March 31, 2022 and December 31, 2021, which are included in Trade receivables, net on the Condensed Consolidated Balance Sheets. |
Fair Value (Carrying Amounts An
Fair Value (Carrying Amounts And Estimated Fair Values Of Financial Instruments) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Mar. 31, 2022 | Dec. 31, 2021 | |
Fair Value, Inputs, Level 3 [Member] | Reported Value Measurement [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Vacation ownership contract receivables, net (Level 3) | $ 2,261 | $ 2,309 | |
Fair Value, Inputs, Level 3 [Member] | Estimate of Fair Value Measurement [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Vacation ownership contract receivables, net (Level 3) | 2,807 | 2,858 | |
Fair Value, Inputs, Level 2 [Member] | Reported Value Measurement [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Debt (Level 2) | 5,328 | 5,313 | |
Fair Value, Inputs, Level 2 [Member] | Estimate of Fair Value Measurement [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Debt (Level 2) | 5,324 | 5,514 | |
Fair Value, Inputs, Level 1 | Estimate of Fair Value Measurement [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Equity Securities, FV-NI | 13 | $ 13 | |
Disposal Group, Not Discontinued Operations [Member] | North American Vacation Rentals | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Disposal Group, Including Discontinued Operation, Consideration | $ 162 | ||
Proceeds from Divestiture of Businesses | 156 | ||
Business Combination, Consideration Transferred, Equity Interests Issued and Issuable | $ 10 | ||
Foreign Exchange Contracts | Recurring Basis | Other assets | Fair Value, Inputs, Level 2 [Member] | Estimate of Fair Value Measurement [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Derivative Asset | 1 | ||
Foreign Exchange Contracts | Recurring Basis | Accrued expenses and other liabilities | Fair Value, Inputs, Level 2 [Member] | Estimate of Fair Value Measurement [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Derivative Liability | $ 1 |
Derivative Instruments And He_2
Derivative Instruments And Hedging Activities Derivative Instruments and Hedging Activities (Details) $ in Millions | 3 Months Ended | |
Mar. 31, 2022USD ($)numberOfInterestRateDerivatives | Mar. 31, 2021USD ($)numberOfInterestRateDerivatives | |
Interest Rate Contract [Member] | ||
Derivative [Line Items] | ||
Number of Interest Rate Derivatives Held | numberOfInterestRateDerivatives | 0 | 0 |
Foreign Exchange Contracts | Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Unrealized Gain on Foreign Currency Derivatives, before Tax | $ | $ 0 | $ 0 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Income tax payments, net of refunds | $ 10 | $ 5 |
Latest Tax Year | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Effective income tax rate | 31.30% | |
Earliest Tax Year | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Effective income tax rate | 17.10% |
Leases Narrative (Details)
Leases Narrative (Details) | 3 Months Ended |
Mar. 31, 2022 | |
Minimum [Member] | |
Lessee, Operating Lease, Remaining Lease Term | 1 year |
Maximum [Member] | |
Lessee, Operating Lease, Remaining Lease Term | 20 years |
Lessee, Operating Lease, Renewal Term | 10 years |
Lessee, Operating Lease, Termination Period | 1 year |
Leases Costs (Details)
Leases Costs (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Leases [Abstract] | ||
Operating lease cost | $ 6 | $ 6 |
Short-term lease cost | 3 | 3 |
Amortization of right-of-use assets | 1 | 1 |
Interest on lease liabilities | 0 | 0 |
Total finance lease cost | $ 1 | $ 1 |
Leases, Assets and Liabilities
Leases, Assets and Liabilities (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 | |
Operating lease liabilities | $ 128 | ||
Finance lease liabilities | $ 9 | ||
Operating Lease, Weighted Average Remaining Lease Term | 6 years 2 months 12 days | 6 years 4 months 24 days | |
Finance Lease, Weighted Average Remaining Lease Term | 2 years 6 months | 2 years 7 months 6 days | |
Operating Lease, Weighted Average Discount Rate, Percent | [1] | 5.80% | 5.80% |
Finance Lease, Weighted Average Discount Rate, Percent | 4.30% | 4.40% | |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Other assets | Other assets | |
Operating Lease, Liability, Statement of Financial Position [Extensible Enumeration] | Other Liabilities | Other Liabilities | |
Finance Leased Asset, Type [Extensible Enumeration] | Property and equipment, net | Property and equipment, net | |
Finance Lease, Liability, Statement of Financial Position [Extensible Enumeration] | Debt | Debt | |
Other assets | |||
Operating lease right-of-use assets | $ 73 | $ 79 | |
Accrued expenses and other liabilities | |||
Operating lease liabilities | 128 | 136 | |
Property and equipment, net | |||
Finance lease assets | [2] | 10 | 10 |
Debt | |||
Finance lease liabilities | $ 9 | $ 9 | |
[1] | Upon adoption of the lease standard, discount rates used for existing leases were established at January 1, 2019. | ||
[2] | Presented net of accumulated depreciation. |
Leases Leases, Cash Flow Presen
Leases Leases, Cash Flow Presentation (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | ||
Leases [Abstract] | |||
Operating cash flows from operating leases | $ 8 | $ 10 | |
Operating cash flows from finance leases | 0 | 0 | |
Financing cash flows from finance leases | 1 | 1 | |
Right-of-Use Asset Obtained in Exchange for Operating Lease Liability | [1] | (1) | 0 |
Right-of-Use Asset Obtained in Exchange for Finance Lease Liability | $ 1 | $ 0 | |
[1] | Includes write-off of right-of-use assets during the three months ended March 31, 2022. |
Leases Maturity (Details)
Leases Maturity (Details) $ in Millions | Mar. 31, 2022USD ($) |
Leases [Abstract] | |
Lessee, Operating Lease, Liability, to be Paid, Remainder of Fiscal Year | $ 24 |
Finance Lease, Liability, to be Paid, Remainder of Fiscal Year | 4 |
Lessee, Operating Lease, Liability, to be Paid, Year One | 30 |
Finance Lease, Liability, to be Paid, Year One | 4 |
Lessee, Operating Lease, Liability, to be Paid, Year Two | 28 |
Finance Lease, Liability, to be Paid, Year Two | 2 |
Lessee, Operating Lease, Liability, to be Paid, Year Three | 23 |
Finance Lease, Liability, to be Paid, Year Three | 0 |
Lessee, Operating Lease, Liability, to be Paid, Year Four | 14 |
Finance Lease, Liability, to be Paid, Year Four | 0 |
Lessee, Operating Lease, Liability, to be Paid, after Year Five | 34 |
Finance Lease, Liability, to be Paid, after Year Five | 0 |
Lessee, Operating Lease, Liability, to be Paid | 153 |
Finance Lease, Liability, Payment, Due | 10 |
Operating lease, Amount of lease payments representing interest | (25) |
Capital Leases, Amount of lease payments representing interest | (1) |
Operating lease liabilities | 128 |
Finance lease liabilities | $ 9 |
Commitments And Contingencies (
Commitments And Contingencies (Narrative) (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Commitments And Contingencies [Line Items] | ||
Estimated Litigation Liability | $ 21 | $ 19 |
Maximum [Member] | ||
Commitments And Contingencies [Line Items] | ||
Loss Contingency, Range of Possible Loss, Portion Not Accrued | 32 | |
Maximum [Member] | Unasserted Claim [Member] | ||
Commitments And Contingencies [Line Items] | ||
Loss Contingency, Range of Possible Loss, Portion Not Accrued | $ 1 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive (Loss)/Income (Components Of Accumulated Other Comprehensive (Loss)/Income) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Accumulated Other Comprehensive Loss, Net Of Tax | ||
Beginning Balance, value | $ (794) | $ (968) |
Ending Balance, value | (811) | (976) |
Net income attributable to Travel + Leisure Co. shareholders | 51 | 29 |
Reclassification out of Accumulated Other Comprehensive Income | ||
Accumulated Other Comprehensive Loss, Net Of Tax | ||
Net income attributable to Travel + Leisure Co. shareholders | 0 | 0 |
Foreign Currency Translation Adjustments | ||
Accumulated Other Comprehensive Loss, Before Tax | ||
AOCL, Pretax, Beginning Balance | (145) | (113) |
Other Comprehensive Income (Loss), before Tax | 3 | (14) |
AOCL, Pretax, Ending Balance | (142) | (127) |
Accumulated Other Comprehensive Loss, Tax | ||
AOCI, Tax, Beginning Balance | 97 | 97 |
Other Comprehensive Income (Loss), Tax | 0 | 1 |
AOCI, Tax, Ending Balance | 97 | 98 |
Accumulated Other Comprehensive Loss, Net Of Tax | ||
Beginning Balance, value | (48) | (16) |
Other comprehensive loss | 3 | (13) |
Ending Balance, value | (45) | (29) |
Unrealized (losses)/Gains on Cash Flow Hedges | ||
Accumulated Other Comprehensive Loss, Before Tax | ||
AOCL, Pretax, Beginning Balance | (1) | (1) |
Other Comprehensive Income (Loss), before Tax | 0 | 0 |
AOCL, Pretax, Ending Balance | (1) | (1) |
Accumulated Other Comprehensive Loss, Tax | ||
AOCI, Tax, Beginning Balance | 1 | 1 |
Other Comprehensive Income (Loss), Tax | 0 | 0 |
AOCI, Tax, Ending Balance | 1 | 1 |
Accumulated Other Comprehensive Loss, Net Of Tax | ||
Beginning Balance, value | 0 | 0 |
Other comprehensive loss | 0 | 0 |
Ending Balance, value | 0 | 0 |
Accumulated Other Comprehensive (Loss)/Income | ||
Accumulated Other Comprehensive Loss, Before Tax | ||
AOCL, Pretax, Beginning Balance | (146) | (114) |
Other Comprehensive Income (Loss), before Tax | 3 | (14) |
AOCL, Pretax, Ending Balance | (143) | (128) |
Accumulated Other Comprehensive Loss, Tax | ||
AOCI, Tax, Beginning Balance | 98 | 98 |
Other Comprehensive Income (Loss), Tax | 0 | 1 |
AOCI, Tax, Ending Balance | 98 | 99 |
Accumulated Other Comprehensive Loss, Net Of Tax | ||
Beginning Balance, value | (48) | (16) |
Other comprehensive loss | 3 | (13) |
Ending Balance, value | $ (45) | $ (29) |
Stock-Based Compensation (Narra
Stock-Based Compensation (Narrative) (Details) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Maximum shares of common stock to be awarded | 15.7 | |
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 10.7 | |
Stock-based compensation | $ 12 | $ 7 |
Share-based Payment Arrangement, Expense, Tax Benefit | 3 | 2 |
Payment of taxes for net share settlement | 5 | 7 |
Restructuring Charges | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation | 3 | |
RSUs | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares Granted, Value, Share-based Payment Arrangement, before Forfeiture | $ 30 | 33 |
Vesting terms, in years | 4 years | |
PSUs | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares Granted, Value, Share-based Payment Arrangement, before Forfeiture | $ 13 | 7 |
Vesting terms, in years | 3 years | |
NQs | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares Granted, Value, Share-based Payment Arrangement, before Forfeiture | $ 0 | 2 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value | 1 | 1 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested in Period, Fair Value | $ 3 | $ 2 |
Stock-Based Compensation Stock-
Stock-Based Compensation Stock-Based Compensation (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2022 | Dec. 31, 2021 | |||
RSUs | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount | $ 70 | |||
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition | 2 years 10 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) | $ 47.83 | |||
Weighted Average Grant Price, Granted (in dollars per share) | 52.87 | |||
Weighted Average Grant Price, Vested/exercised (in dollars per share) | [1] | 48.87 | ||
Weighted Average Grant Price, Forfeitures (in dollars) | [2] | 0 | ||
Weighted Average Grant Price, Ending Balance (in dollars per share) | $ 49.10 | $ 47.83 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested [Roll Forward] | ||||
Number of Units, Beginning Balance (shares) | 1.8 | |||
Number of Units, Granted (shares) | 0.6 | |||
Number of Units, Vested/exercised (shares) | [1] | (0.4) | ||
Number of Units, Forfeitures (shares) | [2] | 0 | ||
Number of Units, Ending Balance (shares) | 2 | [3] | 1.8 | |
PSUs | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | ||||
Weighted Average Grant Price, Beginning Balance (in dollars per share) | $ 48.18 | |||
Weighted Average Grant Price, Granted (in dollars per share) | 52.87 | |||
Weighted Average Grant Price, Vested/exercised (in dollars per share) | [1] | 0 | ||
Weighted Average Grant Price, Forfeitures (in dollars) | [2] | 44.43 | ||
Weighted Average Grant Price, Ending Balance (in dollars per share) | $ 51.30 | $ 48.18 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested [Roll Forward] | ||||
Number of Units, Beginning Balance (shares) | 0.4 | |||
Number of Units, Granted (shares) | 0.3 | |||
Number of Units, Vested/exercised (shares) | [1] | 0 | ||
Number of Units, Forfeitures (shares) | [2] | (0.1) | ||
Number of Units, Ending Balance (shares) | 0.6 | [4] | 0.4 | |
PSUs | Probable | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount | $ 9 | |||
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition | 2 years 10 months 24 days | |||
PSUs | Maximum [Member] | Not probable | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount | $ 20 | |||
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition | 2 years | |||
NQs | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount | $ 7 | |||
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition | 2 years 2 months 12 days | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Option, Nonvested, Weighted Average Exercise Price, Beginning Balance | $ 45.32 | |||
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price | 0 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercised, Weighted Average Grant Date Fair Value | [1] | 0 | ||
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 | $ 45.33 | $ 45.32 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested [Roll Forward] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Number of Shares, Beginning Balance | 2.3 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 0 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercised, Weighted Average Grant Date Fair Value | [1] | 0 | ||
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 | [5] | 2.3 | |
NQs | Maximum [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 10 years | |||
NQs | Exercisable options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based Payment Arrangement, Option, Exercise Price Range, Shares Exercisable | 1.3 | |||
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, Weighted Average Grant Date Fair Value [Abstract] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercised, Weighted Average Grant Date Fair Value | $ 8.53 | |||
[1] | Upon exercise of NQs and upon vesting of RSUs and PSUs, the Company issues new shares to participants. | |||
[2] | The Company recognizes cancellations and forfeitures as they occur. | |||
[3] | Aggregate unrecognized compensation expense related to RSUs was $70 million as of March 31, 2022, which is expected to be recognized over a weighted average period of 2.9 years. | |||
[4] | Aggregate unrecognized compensation expense related to PSUs that are probable of vesting was $9 million as of March 31, 2022, which is expected to be recognized over a weighted average period of 2.9 years. The maximum amount of compensation expense associated with PSUs that are not probable of vesting could range up to $20 million over a weighted average period of 2.0 years. | |||
[5] | There were 1.3 million NQs which were exercisable as of March 31, 2022. These exercisable NQs will expire over a weighted average period of 6.9 years and carry a weighted average grant date fair value of $8.53. Unrecognized compensation expense for NQs was $7 million as of March 31, 2022, which is expected to be recognized over a weighted average period of 2.2 years |
Stock-Based Compensation (Incen
Stock-Based Compensation (Incentive Equity Awards Granted By The Company) (Details) - NQs | 12 Months Ended | |
Dec. 31, 2021USD ($)$ / shares | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Grant date fair value | $ | $ 18.87 | |
Grant date strike price | $ / shares | $ 59 | |
Expected volatility | 44.80% | |
Expected life | 6 years 3 months | [1] |
Risk-free interest rate | 1.09% | |
Projected dividend yield | 3.12% | |
[1] | The maximum contractual term for these options is 10 years |
Segment Information (Summary Of
Segment Information (Summary Of Segment Information) (Details) $ in Millions | 3 Months Ended | ||||
Mar. 31, 2022USD ($)segment | Mar. 31, 2021USD ($) | Dec. 31, 2021USD ($) | |||
Segment Reporting Information [Line Items] | |||||
Number of Reportable Segments | segment | 2 | ||||
Assets, Net of Investment in Unconsolidated Subsidiaries | [1] | $ 6,600 | $ 6,588 | ||
Net revenues | |||||
Net revenues | 809 | $ 628 | |||
Reconciliation of Net income to Adjusted EBITDA | |||||
Net income/(loss) attributable to Travel + Leisure shareholders | 51 | 29 | |||
Provision for income taxes | 23 | 6 | |||
Depreciation and amortization | 30 | 31 | |||
Interest expense | 47 | 53 | |||
Interest (income) | (1) | (1) | |||
Stock-based compensation | 7 | ||||
Restructuring | [3] | 7 | [2] | (1) | |
Asset impairments | 1 | 0 | |||
Legacy items | 1 | 4 | |||
Adjusted EBITDA | 170 | 129 | |||
General and Administrative Expense [Member] | |||||
Reconciliation of Net income to Adjusted EBITDA | |||||
Stock-based compensation | 9 | ||||
COVID-19 [Member] | |||||
Reconciliation of Net income to Adjusted EBITDA | |||||
COVID-19 related costs Adj EBITDA | [4] | 2 | 1 | ||
Operating Segments | |||||
Segment Reporting Information [Line Items] | |||||
Assets, Net of Investment in Unconsolidated Subsidiaries | [1] | 6,155 | 6,157 | ||
Net revenues | |||||
Net revenues | 814 | 632 | |||
Reconciliation of Net income to Adjusted EBITDA | |||||
Adjusted EBITDA | 187 | 141 | |||
Corporate and other | |||||
Segment Reporting Information [Line Items] | |||||
Assets, Net of Investment in Unconsolidated Subsidiaries | [1] | 445 | 431 | ||
Net revenues | |||||
Net revenues | [5] | (5) | (4) | ||
Reconciliation of Net income to Adjusted EBITDA | |||||
Adjusted EBITDA | [5] | (17) | (12) | ||
Vacation Ownership | Operating Segments | |||||
Segment Reporting Information [Line Items] | |||||
Assets, Net of Investment in Unconsolidated Subsidiaries | [1] | 4,729 | 4,743 | ||
Net revenues | |||||
Net revenues | 604 | 449 | |||
Reconciliation of Net income to Adjusted EBITDA | |||||
Adjusted EBITDA | 103 | 66 | |||
Travel and Membership | Operating Segments | |||||
Segment Reporting Information [Line Items] | |||||
Assets, Net of Investment in Unconsolidated Subsidiaries | [1] | 1,426 | $ 1,414 | ||
Net revenues | |||||
Net revenues | 210 | 183 | |||
Reconciliation of Net income to Adjusted EBITDA | |||||
Adjusted EBITDA | $ 84 | $ 75 | |||
[1] | Excludes investment in consolidated subsidiaries. | ||||
[2] | Included in Restructuring on the Condensed Consolidated Statements of Income. | ||||
[3] | Includes $3 million of stock-based compensation expense for the three months ended March 31, 2022 associated with the 2022 restructuring. | ||||
[4] | Includes expenses related to COVID-19 testing and other expenses associated with the Company’s return-to-work program in 2022. In 2021, this includes severance and other employee costs associated with layoffs due to the COVID-19 workforce reduction offset in part by U.S. and international government employee retention credits. | ||||
[5] | Includes the elimination of transactions between segments. |
COVID-19 Related Impacts (Detai
COVID-19 Related Impacts (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2020 | |||
Restructuring Cost and Reserve [Line Items] | |||||
COVID-19 related costs | $ 2 | $ 1 | |||
Restructuring | [2] | 7 | [1] | (1) | |
Restructuring Plan 2020 [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring | $ 37 | ||||
COVID-19 [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Total COVID-19 Impact | 2 | 0 | |||
COVID-19 [Member] | Vacation Ownership | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Total COVID-19 Impact | 0 | (1) | |||
COVID-19 [Member] | Travel and Membership | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Total COVID-19 Impact | 0 | 0 | |||
COVID-19 [Member] | Corporate and Other | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Total COVID-19 Impact | 2 | 1 | |||
COVID-19 [Member] | COVID-19 related costs | |||||
Restructuring Cost and Reserve [Line Items] | |||||
COVID-19 related costs | 2 | 1 | |||
COVID-19 [Member] | COVID-19 related costs | Vacation Ownership | |||||
Restructuring Cost and Reserve [Line Items] | |||||
COVID-19 related costs | 0 | 0 | |||
COVID-19 [Member] | COVID-19 related costs | Travel and Membership | |||||
Restructuring Cost and Reserve [Line Items] | |||||
COVID-19 related costs | 0 | 0 | |||
COVID-19 [Member] | COVID-19 related costs | Corporate and Other | |||||
Restructuring Cost and Reserve [Line Items] | |||||
COVID-19 related costs | $ 2 | 1 | |||
COVID-19 [Member] | Restructuring [Member] | Restructuring Plan 2020 [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring | (1) | ||||
COVID-19 [Member] | Restructuring [Member] | Vacation Ownership | Restructuring Plan 2020 [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring | (1) | $ 14 | |||
COVID-19 [Member] | Restructuring [Member] | Travel and Membership | Restructuring Plan 2020 [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring | 0 | ||||
COVID-19 [Member] | Restructuring [Member] | Corporate and Other | Restructuring Plan 2020 [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring | $ 0 | ||||
[1] | Included in Restructuring on the Condensed Consolidated Statements of Income. | ||||
[2] | Includes $3 million of stock-based compensation expense for the three months ended March 31, 2022 associated with the 2022 restructuring. |
COVID-19 Related Items Narrativ
COVID-19 Related Items Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |||
Mar. 31, 2022 | Mar. 31, 2021 | |||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring | [2] | $ 7 | [1] | $ (1) |
Personnel-related | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring | [1] | $ 6 | ||
Vacation Ownership | Other Restructuring | COVID-19 [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring | $ 1 | |||
[1] | Included in Restructuring on the Condensed Consolidated Statements of Income. | |||
[2] | Includes $3 million of stock-based compensation expense for the three months ended March 31, 2022 associated with the 2022 restructuring. |
COVID-19 Related Liabilities (D
COVID-19 Related Liabilities (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Restructuring Cost and Reserve [Line Items] | ||
Liability beginning balance | $ 22 | |
COVID-19 related costs | 2 | $ 1 |
Cash payments | (1) | |
Liability ending balance | 25 | |
COVID-19 Plan | ||
Restructuring Cost and Reserve [Line Items] | ||
Liability beginning balance | 1 | |
COVID-19 related costs | 2 | |
Cash payments | (2) | |
Liability ending balance | 1 | |
Personnel-related | ||
Restructuring Cost and Reserve [Line Items] | ||
Liability beginning balance | 0 | |
Cash payments | 0 | |
Liability ending balance | 3 | |
Personnel-related | COVID-19 Plan | ||
Restructuring Cost and Reserve [Line Items] | ||
Liability beginning balance | 1 | |
COVID-19 related costs | 2 | |
Cash payments | (2) | |
Liability ending balance | $ 1 |
Restructuring (Narrative) (Deta
Restructuring (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2021 | |||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring charges | [2] | $ 7 | [1] | $ (1) | ||
Stock-based compensation | 12 | 7 | ||||
Cash payments | (1) | |||||
Restructuring liability | 25 | $ 22 | ||||
Facility related | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring charges | [1] | 1 | ||||
Cash payments | (1) | |||||
Restructuring liability | 22 | 22 | ||||
Personnel-related | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring charges | [1] | 6 | ||||
Cash payments | 0 | |||||
Restructuring liability | 3 | 0 | ||||
Restructuring Plan 2022 | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring charges | 7 | |||||
Restructuring liability | 4 | |||||
Restructuring Plan 2022 | Travel and Membership | Personnel-related | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring charges | 5 | |||||
Restructuring Plan 2022 | Vacation Ownership | Personnel and facility | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring charges | 1 | |||||
Restructuring Plan 2022 | Corporate and Other | Personnel-related | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring charges | 1 | |||||
Restructuring Plan 2020 [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring charges | $ 37 | |||||
Cash payments | (1) | |||||
Restructuring liability | $ 22 | |||||
Restructuring Plan 2020 [Member] | Facility related | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring liability | 21 | |||||
Restructuring Plan 2020 [Member] | Travel and Membership | Facility related | COVID-19 [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring charges | 22 | |||||
Restructuring Charges | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Stock-based compensation | $ 3 | |||||
Restructuring [Member] | Restructuring Plan 2020 [Member] | COVID-19 [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring charges | (1) | |||||
Restructuring [Member] | Restructuring Plan 2020 [Member] | Travel and Membership | COVID-19 [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring charges | 0 | |||||
Restructuring [Member] | Restructuring Plan 2020 [Member] | Vacation Ownership | COVID-19 [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring charges | (1) | $ 14 | ||||
Restructuring [Member] | Restructuring Plan 2020 [Member] | Corporate and Other | COVID-19 [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring charges | $ 0 | |||||
[1] | Included in Restructuring on the Condensed Consolidated Statements of Income. | |||||
[2] | Includes $3 million of stock-based compensation expense for the three months ended March 31, 2022 associated with the 2022 restructuring. |
Restructuring (Activity Related
Restructuring (Activity Related To The Restructuring Costs) (Details) - USD ($) $ in Millions | 3 Months Ended | |||
Mar. 31, 2022 | Mar. 31, 2021 | |||
Restructuring Cost and Reserve [Roll Forward] | ||||
Liability beginning balance | $ 22 | |||
Restructuring | [2] | 7 | [1] | $ (1) |
Cash Payments | (1) | |||
Other | (3) | |||
Liability ending balance | 25 | |||
Stock-based compensation | 12 | $ 7 | ||
Restructuring Charges | ||||
Restructuring Cost and Reserve [Roll Forward] | ||||
Stock-based compensation | 3 | |||
Facility related | ||||
Restructuring Cost and Reserve [Roll Forward] | ||||
Liability beginning balance | 22 | |||
Restructuring | [1] | 1 | ||
Cash Payments | (1) | |||
Other | 0 | |||
Liability ending balance | 22 | |||
Personnel-related | ||||
Restructuring Cost and Reserve [Roll Forward] | ||||
Liability beginning balance | 0 | |||
Restructuring | [1] | 6 | ||
Cash Payments | 0 | |||
Other | [3] | (3) | ||
Liability ending balance | $ 3 | |||
[1] | Included in Restructuring on the Condensed Consolidated Statements of Income. | |||
[2] | Includes $3 million of stock-based compensation expense for the three months ended March 31, 2022 associated with the 2022 restructuring. | |||
[3] | Represents $3 million of accelerated stock-based compensation expense for the three months ended March 31, 2022, included in Additional paid-in capital on the Condensed Consolidated Statements of Deficit. |
Transactions with Former Pare_2
Transactions with Former Parent and Former Subsidiaries (Narrative) (Details) £ in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | ||||||
Mar. 31, 2022USD ($) | Mar. 31, 2021USD ($) | Dec. 31, 2021USD ($) | Mar. 31, 2022GBP (£) | Dec. 31, 2021GBP (£) | Dec. 31, 2020GBP (£) | Dec. 31, 2019USD ($) | Dec. 31, 2019GBP (£) | |
British Travel Association and Regulatory Authorities | ||||||||
Separation Adjustments And Transactions With Former Parent And Subsidiaries [Line Items] | ||||||||
Secured bonding facility and perpetual guarantee | $ 46 | |||||||
Guarantee, fair value | 22 | |||||||
Sale Of European Vacation Rental Business | Financial Guarantee | British Travel Association and Regulatory Authorities | ||||||||
Separation Adjustments And Transactions With Former Parent And Subsidiaries [Line Items] | ||||||||
Secured bonding facility and perpetual guarantee | £ | £ 58 | |||||||
Sale Of European Vacation Rental Business | Letter of Credit [Member] | British Travel Association and Regulatory Authorities | ||||||||
Separation Adjustments And Transactions With Former Parent And Subsidiaries [Line Items] | ||||||||
Secured bonding facility and perpetual guarantee | £ | £ 36 | |||||||
Accrued Expenses and Other Liabilities | Sale Of European Vacation Rental Business | European vacation rentals business | ||||||||
Separation Adjustments And Transactions With Former Parent And Subsidiaries [Line Items] | ||||||||
Guarantee, fair value | $ 90 | |||||||
Wyndham Hotels And Resorts, Inc. [Member] | Sale Of European Vacation Rental Business | Financial Guarantee | Awaze Limited [Member] | ||||||||
Separation Adjustments And Transactions With Former Parent And Subsidiaries [Line Items] | ||||||||
Post-closing Credit Support, Portion of Escrow Received Upon Release | 0.33 | 0.33 | ||||||
Affiliated Entity | ||||||||
Separation Adjustments And Transactions With Former Parent And Subsidiaries [Line Items] | ||||||||
Responsible liability for separation agreement | 37.50% | |||||||
Contingent and other corporate liabilities retained | 0.25 | 0.25 | ||||||
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 | Sale Of European Vacation Rental Business | Financial Guarantee | British Travel Association and Regulatory Authorities | ||||||||
Separation Adjustments And Transactions With Former Parent And Subsidiaries [Line Items] | ||||||||
Secured bonding facility and perpetual guarantee | $ 81 | £ 61 | ||||||
Guarantee, fair value | 39 | £ 30 | ||||||
Affiliated Entity | Sale Of European Vacation Rental Business | Financial Guarantee | Awaze Limited [Member] | ||||||||
Separation Adjustments And Transactions With Former Parent And Subsidiaries [Line Items] | ||||||||
Secured bonding facility and perpetual guarantee | $ 44 | £ 35 | ||||||
Liability for Unpaid Claims and Claims Adjustment Expense, Adjustments | $ 7 | £ 5 | ||||||
Affiliated Entity | Sale Of European Vacation Rental Business | Indemnification Agreement | ||||||||
Separation Adjustments And Transactions With Former Parent And Subsidiaries [Line Items] | ||||||||
Guarantee, fair value | 42 | |||||||
Affiliated Entity | Sale Of North American Vacation Rental Business [Member] | Indemnification Agreement | ||||||||
Separation Adjustments And Transactions With Former Parent And Subsidiaries [Line Items] | ||||||||
Guarantee, fair value | 2 | |||||||
Affiliated Entity | General and Administrative Expense [Member] | Sale Of North American Vacation Rental Business [Member] | ||||||||
Separation Adjustments And Transactions With Former Parent And Subsidiaries [Line Items] | ||||||||
Related Party Transaction, Expenses from Transactions with Related Party | $ 1 | |||||||
Affiliated Entity | Other Revenue [Member] | Sale Of North American Vacation Rental Business [Member] | ||||||||
Separation Adjustments And Transactions With Former Parent And Subsidiaries [Line Items] | ||||||||
Revenue from Related Parties | $ 1 | |||||||
Affiliated Entity | Cendant | Accrued Expenses and Other Liabilities | ||||||||
Separation Adjustments And Transactions With Former Parent And Subsidiaries [Line Items] | ||||||||
Liabilities assumed | $ 14 | $ 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. [Member] | ||||||||
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. [Member] | ||||||||
Separation Adjustments And Transactions With Former Parent And Subsidiaries [Line Items] | ||||||||
Receivable from related party | $ 7 | |||||||
Wyndham Hotels And Resorts, Inc. [Member] | Sale Of European Vacation Rental Business | Indemnification Agreement | ||||||||
Separation Adjustments And Transactions With Former Parent And Subsidiaries [Line Items] | ||||||||
Receivable from related party | 14 | |||||||
Wyndham Hotels And Resorts, Inc. [Member] | Other assets | Sale Of European Vacation Rental Business | ||||||||
Separation Adjustments And Transactions With Former Parent And Subsidiaries [Line Items] | ||||||||
Receivable from related party | $ 21 |
Related Party Transactions Rela
Related Party Transactions Related Party Transactions (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Former Officer [Member] | ||
Related Party Transaction [Line Items] | ||
Related Party Transaction, Amounts of Transaction | $ 47 | $ 45 |
Subsequent Events (Details)
Subsequent Events (Details) | Apr. 25, 2022 |
Subsequent Event [Member] | |
Subsequent Event [Line Items] | |
Treasury Stock Acquired, Repurchase Authorization | 500 million |