Cover Page
Cover Page - shares | 6 Months Ended | |
Jun. 30, 2019 | Jul. 26, 2019 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Jun. 30, 2019 | |
Entity File Number | 001-35219 | |
Entity Registrant Name | Marriott Vacations Worldwide Corp | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 45-2598330 | |
Entity Address, Address Line One | 6649 Westwood Blvd. | |
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 | 206-6000 | |
Title of 12(b) Security | Common Stock, $0.01 Par Value | |
Trading Symbol | VAC | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding (in shares) | 43,527,329 | |
Entity Central Index Key | 0001524358 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q2 | |
Current Fiscal Year End Date | --12-31 |
INTERIM CONSOLIDATED STATEMENTS
INTERIM CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
REVENUES | ||||
Revenue from contracts with customers | $ 999 | $ 559 | $ 1,991 | $ 1,095 |
Financing | 69 | 36 | 137 | 71 |
Cost reimbursements | 252 | 202 | 539 | 418 |
TOTAL REVENUES | 1,068 | 595 | 2,128 | 1,166 |
EXPENSES | ||||
Marketing and sales | 193 | 106 | 381 | 211 |
Rental | 25 | 10 | 47 | 21 |
General and administrative | 79 | 33 | 157 | 61 |
Depreciation and amortization | 36 | 5 | 73 | 11 |
Litigation charges | 1 | 16 | 2 | 16 |
Royalty fee | 26 | 16 | 52 | 31 |
Impairment | 0 | 0 | 26 | 0 |
Impairment | 26 | 0 | ||
Cost reimbursements | 252 | 202 | 539 | 418 |
TOTAL EXPENSES | 925 | 546 | 1,894 | 1,064 |
Gains (losses) and other income (expense), net | 2 | (7) | 10 | (6) |
Interest expense | (35) | (5) | (69) | (9) |
ILG acquisition-related costs | (36) | (19) | (62) | (20) |
Other | 0 | (1) | 0 | (3) |
INCOME BEFORE INCOME TAXES AND NONCONTROLLING INTERESTS | 74 | 17 | 113 | 64 |
Provision for income taxes | (25) | (6) | (40) | (17) |
NET INCOME | 49 | 11 | 73 | 47 |
Net income attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
NET INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS | $ 49 | $ 11 | $ 73 | $ 47 |
EARNINGS PER SHARE ATTRIBUTABLE TO COMMON SHAREHOLDERS | ||||
Basic (in usd per share) | $ 1.11 | $ 0.40 | $ 1.62 | $ 1.75 |
Diluted (in usd per share) | 1.10 | 0.39 | 1.61 | 1.71 |
CASH DIVIDENDS DECLARED PER SHARE (in usd per share) | $ 0.45 | $ 0.40 | $ 0.90 | $ 0.80 |
Sale of vacation ownership products | ||||
REVENUES | ||||
Revenue from contracts with customers | $ 350 | $ 205 | $ 651 | $ 380 |
EXPENSES | ||||
Expenses | 91 | 57 | 171 | 103 |
Resort management and other services | ||||
REVENUES | ||||
Revenue from contracts with customers | 239 | 78 | 478 | 148 |
EXPENSES | ||||
Expenses | 118 | 39 | 234 | 75 |
Rental | ||||
REVENUES | ||||
Revenue from contracts with customers | 158 | 74 | 323 | 149 |
EXPENSES | ||||
Expenses | $ 104 | $ 62 | $ 212 | $ 117 |
INTERIM CONSOLIDATED STATEMEN_2
INTERIM CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Statement of Comprehensive Income [Abstract] | ||||
NET INCOME | $ 49 | $ 11 | $ 73 | $ 47 |
Other comprehensive income (loss): | ||||
Foreign currency translation adjustments | (2) | (7) | (1) | (1) |
Derivative instrument adjustment, net of tax | (13) | 0 | (16) | 0 |
OTHER COMPREHENSIVE LOSS, NET OF TAX | (15) | (7) | (17) | (1) |
Net income attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Other comprehensive income attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
COMPREHENSIVE INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS | 0 | 0 | 0 | 0 |
COMPREHENSIVE INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS | $ 34 | $ 4 | $ 56 | $ 46 |
INTERIM CONSOLIDATED BALANCE SH
INTERIM CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
ASSETS | ||
Cash and cash equivalents | $ 179 | $ 231 |
Restricted cash (including $80 and $69 from VIEs, respectively) | 337 | 383 |
Accounts receivable, net (including $12 and $11 from VIEs, respectively) | 327 | 324 |
Vacation ownership notes receivable, net (including $1,681 and $1,627 from VIEs, respectively) | 2,098 | 2,039 |
Inventory | 888 | 863 |
Property and equipment | 837 | 951 |
Goodwill | 2,824 | 2,828 |
Intangibles, net | 1,075 | 1,107 |
Other (including $34 and $26 from VIEs, respectively) | 458 | 292 |
TOTAL ASSETS | 9,023 | 9,018 |
LIABILITIES AND EQUITY | ||
Accounts payable | 164 | 253 |
Contract Liabilities | 542 | 490 |
Accrued liabilities (including $3 and $2 from VIEs, respectively) | 417 | 357 |
Payroll and benefits liability | 172 | 211 |
Deferred compensation liability | 102 | 93 |
Securitized debt, net (including $1,787 and $1,706 from VIEs, respectively) | 1,792 | 1,714 |
Debt, net | 2,157 | 2,104 |
Other | 64 | 12 |
Deferred taxes | 343 | 318 |
TOTAL LIABILITIES | 5,753 | 5,552 |
Contingencies and Commitments (Note 11) | ||
Preferred stock — $0.01 par value; 2,000,000 shares authorized; none issued or outstanding | 0 | 0 |
Common stock — $0.01 par value; 100,000,000 shares authorized; 57,862,278 and 57,626,462 shares issued, respectively | 1 | 1 |
Treasury stock — at cost; 13,979,609 and 11,633,731 shares, respectively | (1,004) | (790) |
Additional paid-in capital | 3,730 | 3,721 |
Accumulated other comprehensive (loss) income | (11) | 6 |
Retained earnings | 548 | 523 |
TOTAL MVW SHAREHOLDERS' EQUITY | 3,264 | 3,461 |
Noncontrolling interests | 6 | 5 |
TOTAL EQUITY | 3,270 | 3,466 |
TOTAL LIABILITIES AND EQUITY | 9,023 | 9,018 |
Advance deposits | ||
LIABILITIES AND EQUITY | ||
Contract Liabilities | 186 | 171 |
Deferred revenue | ||
LIABILITIES AND EQUITY | ||
Contract Liabilities | $ 356 | $ 319 |
INTERIM CONSOLIDATED BALANCE _2
INTERIM CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Restricted cash | $ 337 | $ 383 |
Accounts receivable, net | 327 | 324 |
Vacation ownership notes receivable, net | 2,098 | 2,039 |
Other | 458 | 292 |
Accrued liabilities | 417 | 357 |
Securitized debt, net | 1,792 | 1,714 |
Other | $ 64 | $ 12 |
Preferred stock, par value (in usd per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 2,000,000 | 2,000,000 |
Preferred stock, issued (in shares) | 0 | 0 |
Preferred stock, outstanding (in shares) | 0 | 0 |
Common stock, Par (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 100,000,000 | 100,000,000 |
Common stock, shares issued (in shares) | 57,862,278 | 57,626,462 |
Treasury stock, shares (in shares) | 13,979,609 | 11,633,731 |
Variable Interest Entity | ||
Restricted cash | $ 80 | $ 69 |
Accounts receivable, net | 12 | 11 |
Vacation ownership notes receivable, net | 1,681 | 1,627 |
Other | 34 | 26 |
Accrued liabilities | 3 | 2 |
Securitized debt, net | $ 1,787 | $ 1,706 |
INTERIM CONSOLIDATED STATEMEN_3
INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
OPERATING ACTIVITIES | ||
NET INCOME | $ 73 | $ 47 |
Adjustments to reconcile net income to net cash, cash equivalents and restricted cash provided by operating activities: | ||
Depreciation and amortization of intangibles | 73 | 11 |
Amortization of debt discount and issuance costs | 9 | 8 |
Vacation ownership notes receivable reserve | 51 | 24 |
Share-based compensation | 17 | 10 |
Impairment charges | 26 | 0 |
Deferred income taxes | 20 | 12 |
Net change in assets and liabilities, net of the effects of acquisition: | ||
Accounts receivable | (18) | 24 |
Vacation ownership notes receivable originations | (423) | (233) |
Vacation ownership notes receivable collections | 309 | 155 |
Inventory | 76 | 37 |
Other assets | (30) | 12 |
Accounts payable, advance deposits and accrued liabilities | (129) | (59) |
Deferred revenue | 37 | 29 |
Payroll and benefit liabilities | (39) | (27) |
Deferred compensation liability | 9 | 8 |
Other, net | (5) | 0 |
Net cash, cash equivalents and restricted cash provided by operating activities | 56 | 58 |
INVESTING ACTIVITIES | ||
Capital expenditures for property and equipment (excluding inventory) | (19) | (7) |
Proceeds from collection of notes receivable | 38 | 0 |
Purchase of company owned life insurance | (4) | (12) |
Net cash, cash equivalents and restricted cash provided by (used in) investing activities | 15 | (19) |
FINANCING ACTIVITIES | ||
Borrowings from securitization transactions | 574 | 423 |
Repayment of debt related to securitization transactions | (496) | (154) |
Proceeds from debt | 310 | 0 |
Repayments of debt | (266) | (33) |
Debt issuance costs | (6) | (7) |
Repurchase of common stock | (215) | (2) |
Payment of dividends | (61) | (32) |
Payment of withholding taxes on vesting of restricted stock units | (10) | (8) |
Net cash, cash equivalents and restricted cash (used in) provided by financing activities | (170) | 187 |
Effect of changes in exchange rates on cash, cash equivalents and restricted cash | 1 | 1 |
Change in cash, cash equivalents and restricted cash | (98) | 227 |
Cash, cash equivalents and restricted cash, beginning of period | 614 | 491 |
Cash, cash equivalents and restricted cash, end of period | 516 | 718 |
SUPPLEMENTAL DISCLOSURES | ||
Non-cash transfer from property and equipment to inventory | 64 | 0 |
Interest paid, net of amounts capitalized | 81 | 12 |
Income taxes paid, net of refunds | $ 60 | $ 13 |
INTERIM CONSOLIDATED STATEMEN_4
INTERIM CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY - USD ($) $ in Millions | Total | Common Stock | Treasury Stock | Additional Paid-In Capital | Accumulated Other Comprehensive Income | Retained Earnings | Total MVW Shareholders' Equity | Noncontrolling Interests |
Balance (in shares) at Dec. 31, 2017 | 36,900,000 | |||||||
Balance at Dec. 31, 2017 | $ 1,041 | $ 0 | $ (694) | $ 1,189 | $ 17 | $ 529 | $ 1,041 | $ 0 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income | 36 | 36 | 36 | |||||
Foreign currency translation adjustments | $ 6 | 6 | 6 | |||||
Amounts related to share-based compensation (in shares) | 100,000 | |||||||
Share-based compensation plans | $ (5) | (5) | (5) | |||||
Repurchase of common stock (in shares) | 0 | |||||||
Repurchase of common stock | $ (2) | (2) | (2) | |||||
Dividends | $ (10) | (10) | (10) | |||||
Balance (in shares) at Mar. 31, 2018 | 37,000,000 | |||||||
Balance at Mar. 31, 2018 | $ 1,066 | 0 | (696) | 1,184 | 23 | 555 | 1,066 | 0 |
Balance (in shares) at Dec. 31, 2017 | 36,900,000 | |||||||
Balance at Dec. 31, 2017 | $ 1,041 | 0 | (694) | 1,189 | 17 | 529 | 1,041 | 0 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Foreign currency translation adjustments | (1) | |||||||
Derivative instrument adjustment | $ 0 | |||||||
Balance (in shares) at Jun. 30, 2018 | 37,000,000 | |||||||
Balance at Jun. 30, 2018 | $ 1,066 | 0 | (696) | 1,191 | 16 | 555 | 1,066 | 0 |
Balance (in shares) at Mar. 31, 2018 | 37,000,000 | |||||||
Balance at Mar. 31, 2018 | $ 1,066 | 0 | (696) | 1,184 | 23 | 555 | 1,066 | 0 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income | 11 | 11 | 11 | |||||
Foreign currency translation adjustments | (7) | (7) | (7) | |||||
Derivative instrument adjustment | $ 0 | |||||||
Amounts related to share-based compensation (in shares) | 0 | |||||||
Share-based compensation plans | $ 7 | 7 | 7 | |||||
Dividends | $ (11) | (11) | (11) | |||||
Balance (in shares) at Jun. 30, 2018 | 37,000,000 | |||||||
Balance at Jun. 30, 2018 | $ 1,066 | 0 | (696) | 1,191 | 16 | 555 | 1,066 | 0 |
Balance (in shares) at Dec. 31, 2018 | 57,626,462 | |||||||
Balance at Dec. 31, 2018 | $ 3,466 | 1 | (790) | 3,721 | 6 | 523 | 3,461 | 5 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income | 24 | 24 | 24 | |||||
Foreign currency translation adjustments | 1 | 1 | 1 | |||||
Derivative instrument adjustment | $ (3) | (3) | (3) | |||||
Amounts related to share-based compensation (in shares) | 200,000 | |||||||
Share-based compensation plans | $ (4) | (4) | (4) | |||||
Repurchase of common stock (in shares) | 0 | |||||||
Repurchase of common stock | $ (106) | (106) | (106) | |||||
Dividends | $ (20) | (20) | (20) | |||||
Employee stock plan issuance (in shares) | 0 | |||||||
Employee stock plan issuance | $ 1 | 1 | 1 | |||||
Balance (in shares) at Mar. 31, 2019 | 57,800,000 | |||||||
Balance at Mar. 31, 2019 | $ 3,351 | 1 | (895) | 3,717 | 4 | 519 | 3,346 | 5 |
Balance (in shares) at Dec. 31, 2018 | 57,626,462 | |||||||
Balance at Dec. 31, 2018 | $ 3,466 | 1 | $ (790) | 3,721 | 6 | 523 | 3,461 | 5 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Foreign currency translation adjustments | (1) | |||||||
Derivative instrument adjustment | $ (16) | |||||||
Repurchase of common stock (in shares) | 2,358,808 | |||||||
Repurchase of common stock | $ (215) | |||||||
Balance (in shares) at Jun. 30, 2019 | 57,862,278 | |||||||
Balance at Jun. 30, 2019 | $ 3,270 | 1 | (1,004) | 3,730 | (11) | 548 | 3,264 | 6 |
Balance (in shares) at Mar. 31, 2019 | 57,800,000 | |||||||
Balance at Mar. 31, 2019 | $ 3,351 | 1 | (895) | 3,717 | 4 | 519 | 3,346 | 5 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income | 49 | 49 | 49 | |||||
ILG Acquisition purchase accounting adjustment | 1 | 1 | ||||||
Foreign currency translation adjustments | (2) | (2) | (2) | |||||
Derivative instrument adjustment | $ (13) | (13) | (13) | |||||
Amounts related to share-based compensation (in shares) | 0 | |||||||
Share-based compensation plans | $ 13 | 13 | 13 | |||||
Repurchase of common stock (in shares) | 0 | |||||||
Repurchase of common stock | $ (109) | (109) | (109) | |||||
Dividends | $ (20) | (20) | (20) | |||||
Employee stock plan issuance (in shares) | 100,000 | |||||||
Employee stock plan issuance | $ 0 | 0 | 0 | |||||
Balance (in shares) at Jun. 30, 2019 | 57,862,278 | |||||||
Balance at Jun. 30, 2019 | $ 3,270 | $ 1 | $ (1,004) | $ 3,730 | $ (11) | $ 548 | $ 3,264 | $ 6 |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 6 Months Ended |
Jun. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
BASIS OF PRESENTATION | 1. BASIS OF PRESENTATION The Interim Consolidated Financial Statements present the results of operations, financial position and cash flows of Marriott Vacations Worldwide Corporation (referred to in this report as (i) “we,” “us,” “Marriott Vacations Worldwide,” “MVW” or “the Company,” which includes our consolidated subsidiaries except where the context of the reference is to a single corporate entity, or (ii) “MVWC,” which shall refer only to Marriott Vacations Worldwide Corporation, without its consolidated subsidiaries). In order to make this report easier to read, we refer throughout to (i) our Interim Consolidated Financial Statements as our “Financial Statements,” (ii) our Interim Consolidated Statements of Income as our “Income Statements,” (iii) our Interim Consolidated Balance Sheets as our “Balance Sheets,” and (iv) our Interim Consolidated Statements of Cash Flows as our “Cash Flows.” In addition, references throughout to numbered “Footnotes” refer to the numbered Notes in these Notes to Interim Consolidated Financial Statements, unless otherwise noted. Capitalized terms used and not specifically defined herein have the same meaning given those terms in our Annual Report on Form 10-K for the fiscal year ended December 31, 2018 (the “2018 Annual Report”). We use certain other terms that are defined within these Financial Statements. The Financial Statements presented herein and discussed below include 100 percent of the assets, liabilities, revenues, expenses and cash flows of Marriott Vacations Worldwide, all entities in which Marriott Vacations Worldwide has a controlling voting interest (“subsidiaries”), and those variable interest entities for which Marriott Vacations Worldwide is the primary beneficiary in accordance with consolidation accounting guidance. References in these Financial Statements to net income attributable to common shareholders and MVW shareholders’ equity do not include noncontrolling interests, which represent the outside ownership of our consolidated non-wholly owned entities and are reported separately. Intercompany accounts and transactions between consolidated companies have been eliminated in consolidation. These Financial Statements reflect our financial position, results of operations and cash flows as prepared in conformity with United States Generally Accepted Accounting Principles (“GAAP”). The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect amounts reported in the financial statements and accompanying notes. Such estimates include, but are not limited to, revenue recognition, allocations of the purchase price paid in business combinations, cost of vacation ownership products, inventory valuation, goodwill and intangibles valuation, property and equipment valuation, accounting for acquired vacation ownership notes receivable, vacation ownership notes receivable reserves, income taxes and loss contingencies. Accordingly, actual amounts may differ from these estimated amounts. In our opinion, our Financial Statements reflect all normal and recurring adjustments necessary to present fairly our financial position, the results of our operations and cash flows for the periods presented. Interim results may not be indicative of fiscal year performance because of, among other reasons, the ILG Acquisition (defined below) and seasonal and short-term variations. These Financial Statements have not been audited. We have condensed or omitted certain information and footnote disclosures normally included in financial statements presented in accordance with GAAP. Although we believe our footnote disclosures are adequate to make the information presented not misleading, the Financial Statements in this report should be read in conjunction with the consolidated financial statements and notes thereto in our 2018 Annual Report. The accompanying Financial Statements also reflect our adoption of new accounting standards. See Footnote 2 “ Significant Accounting Policies and Recent Accounting Standards ” for additional information. Reclassifications We have reclassified the following prior year amounts to conform to the current year presentation: • Reclassified Resort management and other services revenue to Management and exchange revenue; • Reclassified Resort management and other services expense to Management and exchange expense; • Consolidated Consumer financing interest expense into Financing expense; • Reclassified depreciation expense from Marketing and sales expense, Management and exchange expense, Rental expense, and General and administrative expense to Depreciation and amortization expense; • Reclassified $8 million from Accrued liabilities to Accounts payable; • Reclassified $58 million from Accrued liabilities to Advance deposits; and • Reclassified $20 million of other debt from Debt, net to Securitized debt, net. Acquisition of ILG On September 1, 2018, we completed the acquisition of ILG, LLC, formerly known as ILG, Inc. (“ILG”) through a series of transactions (the “ILG Acquisition”), after which ILG became our indirect wholly-owned subsidiary. We refer to our business associated with brands that existed prior to the ILG Acquisition as “Legacy-MVW” and to ILG’s business and brands that we acquired as “Legacy-ILG.” See Footnote 3 “ Acquisitions and Dispositions ” for more information on the ILG Acquisition. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 6 Months Ended |
Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 2. SIGNIFICANT ACCOUNTING POLICIES AND RECENT ACCOUNTING STANDARDS New Accounting Standards Accounting Standards Update 2017-12 – “ Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities ” (“ASU 2017-12”) In August 2017, the FASB issued ASU 2017-12, which amends and simplifies existing guidance in order to allow companies to better portray the economic effects of risk management activities in the financial statements and enhance the transparency and understandability of the results of hedging activities. ASU 2017-12 eliminates the requirement to separately measure and report hedge ineffectiveness and generally requires the entire change in the fair value of a hedging instrument to be presented in the same income statement line as the hedged item. The guidance also eases certain documentation and assessment requirements. This update is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years, with early adoption permitted. The adoption of ASU 2017-12 in the first quarter of 2019 did not have a material impact on our Financial Statements or disclosures. We record derivatives at fair value. The designation of a derivative instrument as a hedge and its ability to meet the hedge accounting criteria determine how we reflect the change in fair value of the derivative instrument in our Financial Statements. A derivative qualifies for hedge accounting if we expect it to be highly effective in offsetting the underlying hedged exposure and we fulfill the hedge documentation requirements. We may designate a hedge as a cash flow hedge, fair value hedge, or a net investment in non-U.S. operations hedge based on the exposure we are hedging. For the effective portion of qualifying hedges, we record changes in fair value in other comprehensive income. We assess the effectiveness of our hedging instruments quarterly, recognize current period hedge ineffectiveness immediately in earnings, and discontinue hedge accounting for any hedge that we no longer consider to be highly effective. We recognize changes in fair value for derivatives not designated as hedges or those not qualifying for hedge accounting in current period earnings. We are exposed to market risk from changes in interest rates, currency exchange rates and debt prices. We manage our exposure to these risks by monitoring available financing alternatives, through pricing policies that may take into account currency exchange rates, and by entering into derivative arrangements. As a matter of policy, we only enter into transactions that we believe will be highly effective at offsetting the underlying risk, and we do not use derivatives for trading or speculative purposes. Accounting Standards Update 2016-02 – “ Leases (Topic 842) ” (“ASU 2016-02”) In February 2016, the FASB issued ASU 2016-02 to increase transparency and comparability of information regarding an entity’s leasing activities by providing additional information to users of financial statements, which as amended, created Accounting Standards Codification 842, Leases (“ASC 842”). ASU 2016-02 requires a lessee to recognize most leases on its balance sheet by recording a liability for its lease obligation and an asset for its right to use the underlying asset as of the lease commencement date and recognizing expenses on the income statement in a similar manner to the current guidance in Accounting Standards Codification 840, Leases (“ASC 840”). Lessor accounting remains largely unchanged, other than certain targeted improvements intended to align lessor accounting with the lessee accounting model and with the updated revenue recognition guidance. Upon adoption of ASU 2016-02, as amended, leases will be classified as either finance or operating, with classification affecting the geography of expense recognition in the income statement. Additionally, enhanced quantitative and qualitative disclosures regarding leases are required. ASU 2016-02 is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years, with early adoption permitted. As permitted by the amended guidance, we elected to retain the original lease classification and historical accounting for existing or expired contracts of lessees and lessors so that we will not be required to reassess whether such contracts contain leases, the lease classification of any such leases or the initial direct costs of any such leases. We will continue to report comparative periods presented in the financial statements in the period of adoption under GAAP in effect as of such comparative period, resulting in a balance sheet presentation that is not comparable to the prior period in the first year of adoption. Additionally, with respect to our real estate leases, we elected an accounting policy by class of underlying asset to combine lease and non-lease components. We also elected to apply an exemption for short-term leases whereby leases with an initial term of a year or less are not recorded on the balance sheet. We did not utilize the practical expedient which allows the use of hindsight by lessees and lessors in determining the lease term and in assessing impairment of their right-of-use assets. We adopted ASU 2016-02, as amended, during the first quarter of 2019 using the transition method which allows the application of the standard at the adoption date, January 1, 2019. Upon adoption, we recognized a lease obligation of $165 million and a right-of-use asset of $155 million , as well as, a cumulative-effect adjustment of $8 million to the opening balance of retained earnings for our operating and finance leases, primarily related to leases of real estate and other assets. The adoption of ASU 2016-02 did not have a material effect on our Income Statement or Cash Flows for the six months ended June 30, 2019 . See Footnote 12 “ Leases ” for further discussion of the adoption and the impact on our Financial Statements. Future Adoption of Accounting Standards Accounting Standards Update 2017-04 – “ Intangibles – Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment ” (“ASU 2017-04”) In January 2017, the FASB issued ASU 2017-04, which simplifies the subsequent measurement of goodwill by eliminating the second step from the goodwill impairment test. ASU 2017-04 requires an entity to perform its annual or interim goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount, and to recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value, not to exceed the total amount of goodwill allocated to that reporting unit. ASU 2017-04 is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years, and is applied on a prospective basis. Early adoption is permitted for interim or annual impairment tests performed after January 1, 2017. We expect to adopt ASU 2017-04 when required and will follow this guidance during our annual impairment testing to be performed during the fourth quarter of 2019, or earlier upon the occurrence of certain events or substantive changes in circumstances. We do not expect the adoption of ASU 2017-04 to have a material effect on our financial statements or disclosures. Accounting Standards Update 2016-13 – “ Financial Instruments – Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments ” (“ASU 2016-13”) In June 2016, the FASB issued ASU 2016-13, which replaces the incurred loss impairment methodology in current GAAP with a methodology that reflects expected credit losses. The update is intended to provide financial statement users with more decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date. This update is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years, with early adoption permitted for fiscal years beginning after December 15, 2018. We expect to adopt ASU 2016-13 commencing in fiscal year 2020 and are continuing to evaluate the impact that adoption of this update will have on our financial statements and disclosures. |
ACQUISITIONS AND DISPOSITIONS
ACQUISITIONS AND DISPOSITIONS | 6 Months Ended |
Jun. 30, 2019 | |
Business Combinations [Abstract] | |
ACQUISITIONS AND DISPOSITIONS | 3. ACQUISITIONS AND DISPOSITIONS Acquisitions ILG Acquisition On September 1, 2018 , (the “Acquisition Date”), we completed the ILG Acquisition. ILG is a leading provider of professionally delivered vacation experiences with a portfolio of leisure businesses ranging from vacation exchange and rental services to vacation ownership, and is the exclusive global licensee for the Hyatt, Sheraton and Westin brands in vacation ownership. The combination of our brands created a leading global provider of upper-upscale vacation ownership, exchange networks and management services with access to world-class loyalty programs and an expanded portfolio of highly demanded vacation destinations. Shareholders of ILG received 0.165 shares of our common stock and $14.75 in cash for each share of ILG common stock. The following table presents the fair value of each class of consideration transferred at the Acquisition Date, as adjusted at June 30, 2019. (in millions, except per share amounts) Equivalent shares of Marriott Vacations Worldwide common stock issued in exchange for ILG outstanding shares 20.5 Marriott Vacations Worldwide common stock price per share as of Acquisition Date $ 119.00 Fair value of Marriott Vacations Worldwide common stock issued in exchange for ILG outstanding shares 2,441 Cash consideration to ILG shareholders, net of cash acquired of $154 million 1,680 Fair value of ILG equity-based awards attributed to pre-combination service 64 Total consideration transferred, net of cash acquired 4,185 Noncontrolling interests 30 $ 4,215 Preliminary Fair Values of Assets Acquired and Liabilities Assumed We accounted for the ILG Acquisition as a business combination, which required us to record the assets acquired and liabilities assumed at fair value as of the Acquisition Date. The amounts recorded for certain assets and liabilities are preliminary in nature and are subject to adjustment as additional information is obtained about the facts and circumstances that existed as of the Acquisition Date. We are continuing to evaluate the underlying inputs and assumptions used in our valuations. Accordingly, these preliminary estimates are subject to change during the measurement period, which is up to one year from the Acquisition Date, as permitted under GAAP. Any potential adjustments could be material in relation to the values presented in the table below. The following table presents our preliminary estimates of the fair values of the assets that we acquired and the liabilities that we assumed on the Acquisition Date in connection with the business combination as previously reported at December 31, 2018 and as adjusted at June 30, 2019. During the second quarter of 2019, we refined our valuation models related to certain acquired property and equipment and our assumptions related to certain acquired management agreements, and recorded an indemnification asset and corresponding liability for tax matters that we believe will be indemnified. See Footnote 5 , “ Income Taxes ” for further information. ($ in millions) September 1, 2018 (as reported at December 31, 2018) Adjustments September 1, 2018 (as adjusted at June 30, 2019) Vacation ownership notes receivable $ 753 $ — $ 753 Inventory 474 — 474 Property and equipment 374 (1 ) 373 Intangible assets 1,166 (3 ) 1,163 Other assets 620 42 662 Deferred revenue (217 ) — (217 ) Deferred taxes (179 ) 4 (175 ) Debt (392 ) — (392 ) Securitized debt from VIEs (702 ) — (702 ) Other liabilities (511 ) (37 ) (548 ) Net assets acquired 1,386 5 1,391 Goodwill (1) 2,828 (4 ) 2,824 $ 4,214 $ 1 $ 4,215 _________________________ (1) Goodwill is calculated as total consideration transferred, net of cash acquired, less identified net assets acquired and it primarily represents the value that we expect to obtain from synergies and growth opportunities from our combined operations. Vacation Ownership Notes Receivable We acquired vacation ownership notes receivable, which consist of loans to customers who purchased vacation ownership products and chose to finance their purchase. These vacation ownership notes receivable are collateralized by the underlying vacation ownership interests (“VOIs”) and generally have terms ranging from five to 15 years. We provisionally estimated the fair value of the vacation ownership notes receivables using a discounted cash flow model, which calculated a present value of expected future cash flows over the term of the respective vacation ownership notes receivable (Level 2). We are continuing to evaluate the significant assumptions underlying the discounted cash flow model including default and prepayment assumptions, which could result in changes to our provisional estimate. See Footnote 6 “ Vacation Ownership Notes Receivable ” for additional information. Inventory We acquired inventory, which consisted of completed unsold VOIs and vacation ownership projects under construction. We provisionally estimated the value of acquired inventory using an income approach, which is primarily based on significant Level 3 assumptions, such as estimates of future income growth, capitalization rates, discount rates and capital expenditure needs of the relevant properties. We are continuing to assess the market assumptions and property conditions, which could result in changes to these provisional values. Property and Equipment We acquired property and equipment, which included four owned hotels, information technology, ancillary business assets, furniture and equipment and land held for future development. We provisionally estimated the value of the property and equipment using a combination of the income, cost, and market approaches, which are primarily based on significant Level 3 assumptions, such as estimates of future income growth, capitalization rates, discount rates and capital expenditure needs of the hotels. We are continuing to refine our estimate of the capital expenditure needs of one of the owned hotels, which could result in a change to the provisional value of that asset. We do not expect any other material changes to the provisional estimates. Goodwill We allocated the carrying amount of our preliminary estimate of goodwill to our Vacation Ownership and our Exchange & Third-Party Management reporting units. The following table details the carrying amount of our goodwill at June 30, 2019 and December 31, 2018 , and reflects our preliminary estimate of goodwill added as a result of the ILG Acquisition. The assignment of goodwill to our reporting units may change during the measurement period as we have not yet finalized the fair value of the assets and liabilities assumed in the ILG Acquisition. ($ in millions) Vacation Ownership Segment Exchange & Third-Party Management Segment Total Consolidated Balance at December 31, 2018 $ 2,448 $ 380 $ 2,828 Adjustments (4 ) — (4 ) Balance at June 30, 2019 $ 2,444 $ 380 $ 2,824 Intangible Assets The following table presents our preliminary estimates of the fair values of ILG’s identified intangible assets and their related estimated useful lives as of the Acquisition Date. Estimated Fair Value ($ in millions) Estimated Useful Life (in years) Member relationships $ 695 15 to 20 Management contracts 356 15 to 25 Management contracts (1) 30 indefinite Trade names and trademarks 82 indefinite $ 1,163 _________________________ (1) The indefinite-lived management contracts, by their terms, continue for the foreseeable horizon. There are no legal, regulatory, contractual, competitive, economic or other factors which limit the period of time over which these resort management contracts are expected to contribute future cash flows. These management contracts were entirely related to the VRI Europe business, which we disposed of in the fourth quarter of 2018. We provisionally estimated the value of the trade names and trademarks using the relief-from-royalty method, which applies an estimated royalty rate to forecasted future cash flows, discounted to present value. We estimated the value of management contracts and member relationships using the multi-period excess earnings method, which is a variation of the income approach. This method estimates an intangible asset’s value based on the present value of the incremental after-tax cash flows attributable to the intangible asset. These valuation approaches utilize Level 3 inputs, and we continue to review the related contracts in addition to evaluating the inputs, including the discount rates and renewal and growth assumptions, which could result in changes to these provisional values. Deferred Revenue Deferred revenue primarily relates to membership fees, which are deferred and recognized over the terms of the applicable memberships, ranging from one to five years, on a straight-line basis. Additionally, deferred revenue includes maintenance fees collected from owners, in certain cases, which are earned by the relevant property owners’ association over the applicable period. We provisionally estimated the value of the deferred revenue utilizing Level 3 inputs based on a review of existing deferred revenue balances against legal performance obligations. While we continue to review the related contracts in addition to evaluating the inputs, we do not expect a material change to the provisional estimate. Deferred Income Taxes Deferred income taxes primarily relate to the fair value of assets and liabilities acquired, including vacation ownership notes receivable, inventory, property and equipment, intangible assets and debt. We provisionally estimated deferred income taxes based on statutory rates in the jurisdictions of the legal entities where the acquired assets and liabilities are recorded. We are continuing to assess the tax rates used, and we will update our estimate of deferred income taxes based on changes to our provisional valuations of the related assets and liabilities and refinement of the effective tax rates, which could result in changes to these provisional values. Debt We valued the IAC Notes (as defined in Footnote 14 “ Debt ”) using a quoted market price, which is considered a Level 2 input as it is observable in the market; however these notes have only a limited trading volume and as such this fair value estimate is not necessarily indicative of the value at which the IAC Notes could be retired or transferred. The carrying value of the outstanding balance on the revolving credit facility that was acquired (the “ILG Revolving Credit Facility”) approximated fair value, as the contractual interest rate was variable plus an applicable margin based credit rating (Level 3 input). The ILG Revolving Credit Facility was extinguished and all amounts due were repaid in full upon completion of the ILG Acquisition. Securitized Debt from VIEs We provisionally estimated the fair value of the securitized debt from VIEs using a discounted cash flow model. The significant assumptions in our analysis include default rates, prepayment rates, bond interest rates and other structural factors (Level 3 inputs). We are continuing to evaluate the significant assumptions underlying the discounted cash flow model including default and prepayment assumptions, which could result in changes to our provisional estimate. Pro Forma Results of Operations The following unaudited pro forma information presents the combined results of operations of Marriott Vacations Worldwide and ILG as if we had completed the ILG Acquisition on December 30, 2016, the last day of our 2016 fiscal year, but using our preliminary fair values of assets and liabilities as of the Acquisition Date. As required by GAAP, these unaudited pro forma results do not reflect any synergies from operating efficiencies. Accordingly, these unaudited pro forma results are presented for informational purposes only and are not necessarily indicative of what the actual results of operations of the combined company would have been if the ILG Acquisition had occurred at the beginning of the period presented, nor are they indicative of future results of operations. ($ in millions, except per share data) Six Months Ended June 30, 2018 Revenues $ 2,097 Net income $ 71 Net income attributable to common shareholders $ 68 EARNINGS PER SHARE ATTRIBUTABLE TO COMMON SHAREHOLDERS Basic $ 1.45 Diluted $ 1.42 The unaudited pro forma results above include $27 million of ILG acquisition-related costs for the six months ended June 30, 2018 . ILG Results of Operations The following table presents the results of Legacy-ILG operations included in our Income Statement for the three and six months ended June 30, 2019 . ($ in millions) Three Months Ended June 30, 2019 Six Months Ended June 30, 2019 Revenue $ 455 $ 913 Net income attributable to common shareholders $ 34 $ 66 Marco Island, Florida During the first quarter of 2018, we acquired 20 completed vacation ownership units located at our resort in Marco Island, Florida for $24 million |
REVENUE
REVENUE | 6 Months Ended |
Jun. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
REVENUE | 4. REVENUE Sources of Revenue by Segment The following tables detail the sources of revenue by segment for the time periods presented. Three Months Ended June 30, 2019 ($ in millions) Vacation Ownership Exchange & Third-Party Management Corporate and Other Total Sale of vacation ownership products $ 350 $ — $ — $ 350 Ancillary revenues 66 1 — 67 Management fee revenues 38 11 (3 ) 46 Other services revenues 30 63 33 126 Management and exchange 134 75 30 239 Rental 141 17 — 158 Cost reimbursements 258 22 (28 ) 252 Revenue from contracts with customers 883 114 2 999 Financing 68 1 — 69 Total Revenues $ 951 $ 115 $ 2 $ 1,068 Three Months Ended June 30, 2018 ($ in millions) Vacation Ownership Exchange & Third-Party Management Corporate and Other Total Sale of vacation ownership products $ 205 $ — $ — $ 205 Ancillary revenues 36 — — 36 Management fee revenues 26 — — 26 Other services revenues 16 — — 16 Management and exchange 78 — — 78 Rental 74 — — 74 Cost reimbursements 202 — — 202 Revenue from contracts with customers 559 — — 559 Financing 36 — — 36 Total Revenues $ 595 $ — $ — $ 595 Six Months Ended June 30, 2019 ($ in millions) Vacation Ownership Exchange & Third-Party Management Corporate and Other Total Sale of vacation ownership products $ 651 $ — $ — $ 651 Ancillary revenues 123 2 — 125 Management fee revenues 75 26 (7 ) 94 Other services revenues 61 129 69 259 Management and exchange 259 157 62 478 Rental 288 34 1 323 Cost reimbursements 549 46 (56 ) 539 Revenue from contracts with customers 1,747 237 7 1,991 Financing 135 2 — 137 Total Revenues $ 1,882 $ 239 $ 7 $ 2,128 Six Months Ended June 30, 2018 ($ in millions) Vacation Ownership Exchange & Third-Party Management Corporate and Other Total Sale of vacation ownership products $ 380 $ — $ — $ 380 Ancillary revenues 64 — — 64 Management fee revenues 50 — — 50 Other services revenues 34 — — 34 Management and exchange 148 — — 148 Rental 149 — — 149 Cost reimbursements 418 — — 418 Revenue from contracts with customers 1,095 — — 1,095 Financing 71 — — 71 Total Revenues $ 1,166 $ — $ — $ 1,166 Timing of Revenue from Contracts with Customers by Segment The following tables detail the timing of revenue from contracts with customers by segment for the time periods presented. Three Months Ended June 30, 2019 ($ in millions) Vacation Ownership Exchange & Third-Party Management Corporate and Other Total Services transferred over time $ 471 $ 55 $ 2 $ 528 Goods or services transferred at a point in time 412 59 — 471 $ 883 $ 114 $ 2 $ 999 Three Months Ended June 30, 2018 ($ in millions) Vacation Ownership Exchange & Third-Party Management Corporate and Other Total Services transferred over time $ 315 $ — $ — $ 315 Goods or services transferred at a point in time 244 — — 244 $ 559 $ — $ — $ 559 Six Months Ended June 30, 2019 ($ in millions) Vacation Ownership Exchange & Third-Party Management Corporate and Other Total Services transferred over time $ 978 $ 113 $ 7 $ 1,098 Goods or services transferred at a point in time 769 124 — 893 $ 1,747 $ 237 $ 7 $ 1,991 Six Months Ended June 30, 2018 ($ in millions) Vacation Ownership Exchange & Third-Party Management Corporate and Other Total Services transferred over time $ 643 $ — $ — $ 643 Goods or services transferred at a point in time 452 — — 452 $ 1,095 $ — $ — $ 1,095 Sale of Vacation Ownership Products Revenues were reduced during the second quarter and first half of 2019 by $4 million and $3 million , respectively, due to changes in our estimate of variable consideration for performance obligations that were satisfied in prior periods. Receivables, Contract Assets & Contract Liabilities The following table shows the composition of our receivables and contract liabilities. We had no contract assets at either June 30, 2019 or December 31, 2018 . ($ in millions) At June 30, 2019 At December 31, 2018 Receivables Accounts receivable $ 127 $ 164 Vacation ownership notes receivable, net 2,098 2,039 $ 2,225 $ 2,203 Contract Liabilities Advance deposits $ 186 $ 171 Deferred revenue 356 319 $ 542 $ 490 Revenue recognized during the second quarter and first half of 2019 that was included in our contract liabilities balance at December 31, 2018 was $51 million and $203 million , respectively. Remaining Performance Obligations Our remaining performance obligations represent the expected transaction price allocated to our contracts that we expect to recognize as revenue in future periods when we perform under the contracts. At June 30, 2019 , over 90 percent of this amount is expected to be recognized as revenue over the next two years. |
INCOME TAXES
INCOME TAXES | 6 Months Ended |
Jun. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | 5. INCOME TAXES Our provision for income taxes is calculated using an estimated annual effective tax rate, based upon expected annual income, less losses in certain jurisdictions, permanent items, statutory rates and planned tax strategies in the various jurisdictions in which we operate. However, discrete items related to prior year tax items are treated separately. Our interim effective tax rate was 32.97 percent and 38.08 percent for the three months ended June 30, 2019 and June 30, 2018 , respectively. The decrease in effective tax rate is predominately attributable to a change in our projected mix of earnings in international jurisdictions with differing tax rates and jurisdictions where valuation allowances are recorded, primarily as a result of the ILG Acquisition. Our interim effective tax rate was 35.55 percent and 27.05 percent for the six months ended June 30, 2019 and June 30, 2018 , respectively. The increase in the effective tax rate is predominately attributable to the change in expected annual income primarily as a result of the ILG Acquisition, and discrete tax adjustments relating to share-based compensation. We file income tax returns with U.S. federal and state and non-U.S. jurisdictions and are subject to audits in these jurisdictions. Certain of our returns are being audited in various jurisdictions for years 2012 through 2017. During the second quarter of 2019, we adjusted our preliminary purchase price allocation for the ILG Acquisition to record a $36 million reserve for Legacy-ILG tax matters prior to the ILG Acquisition. We expect that we will be indemnified for this amount pursuant to the Tax Matters Agreement dated May 11, 2016, among Starwood Hotels & Resorts Worldwide, Inc. (“Starwood”), Vistana Signature Experiences, Inc., and Interval Leisure Group, Inc., and as such, have recorded a corresponding indemnification asset. Our unrecognized tax benefit balance could change significantly during the next fiscal year as a result of audits in various jurisdictions and our total unrecognized tax benefit balance that, if recognized, would impact our effective tax rate, was $2 million at both June 30, 2019 and December 31, 2018 |
VACATION OWNERSHIP NOTES RECEIV
VACATION OWNERSHIP NOTES RECEIVABLE | 6 Months Ended |
Jun. 30, 2019 | |
Receivables [Abstract] | |
VACATION OWNERSHIP NOTES RECEIVABLE | 6. VACATION OWNERSHIP NOTES RECEIVABLE The following table shows the composition of our vacation ownership notes receivable balances, net of reserves. June 30, 2019 December 31, 2018 ($ in millions) Originated Acquired Total Originated Acquired Total Securitized $ 1,209 $ 472 $ 1,681 $ 1,070 $ 557 $ 1,627 Non-securitized Eligible for securitization (1) 83 11 94 85 22 107 Not eligible for securitization (1) 261 62 323 233 72 305 Subtotal 344 73 417 318 94 412 $ 1,553 $ 545 $ 2,098 $ 1,388 $ 651 $ 2,039 _________________________ (1) Refer to Footnote 7 “ Financial Instruments ” for a discussion of eligibility of our vacation ownership notes receivable for securitization. We reflect interest income associated with vacation ownership notes receivable in our Income Statements in the Financing revenues caption. The following table summarizes interest income associated with vacation ownership notes receivable. Three Months Ended Six Months Ended ($ in millions) June 30, 2019 June 30, 2018 June 30, 2019 June 30, 2018 Interest income associated with vacation ownership notes receivable — securitized $ 59 $ 27 $ 118 $ 53 Interest income associated with vacation ownership notes receivable — non-securitized 8 7 14 15 Total interest income associated with vacation ownership notes receivable $ 67 $ 34 $ 132 $ 68 Acquired Vacation Ownership Notes Receivable As part of the ILG Acquisition, we acquired existing portfolios of vacation ownership notes receivable. These notes receivable are accounted for using the expected cash flow method of recognizing discount accretion based on the expected cash flows from the acquired vacation ownership notes receivable pursuant to ASC 310-30, “ Loans acquired with deteriorated credit quality ” (“ASC 310-30”). At acquisition, we recorded these acquired vacation ownership notes receivable at a preliminary estimate of fair value, including a credit discount which is accreted as an adjustment to yield over the estimated life of the vacation ownership notes receivable. The fair value of our acquired vacation ownership notes receivable as of the Acquisition Date was determined using a discounted cash flow method, which calculated a present value of expected future cash flows based on scheduled principal and interest payments over the term of the respective vacation ownership notes receivable, while considering anticipated defaults and early repayments based on historical experience. Consequently, the fair value of the acquired vacation ownership notes receivable recorded on our balance sheet as of the Acquisition Date included an estimate for future uncollectible amounts, which became the historical cost basis for that portfolio going forward. The table below presents a rollforward from December 31, 2018 of the accretable yield (interest income) expected to be earned related to our acquired vacation ownership notes receivable, as well as the amount of non-accretable difference at the end of the period. The non-accretable difference represents estimated contractually required payments in excess of estimated cash flows expected to be collected. The accretable yield represents the excess of estimated cash flows expected to be collected over the carrying amount of the acquired vacation ownership notes receivable. ($ in millions) Six Months Ended June 30, 2019 Accretable yield balance at December 31, 2018 $ 199 Accretion (43 ) Reclassification from non-accretable difference (3 ) Accretable yield balance at June 30, 2019 $ 153 Non-accretable difference at June 30, 2019 $ 55 The accretable yield is recognized into interest income over the estimated life of the acquired vacation ownership notes receivable using the level yield method. The accretable yield may change in future periods due to changes in the anticipated remaining life of the acquired vacation ownership notes receivable, which may alter the amount of future interest income expected to be collected, and changes in expected future principal and interest cash collections, which impacts the non-accretable difference. Our acquired vacation ownership notes receivable are remeasured at period end based on expected future cash flows, which takes into consideration an estimated measure of anticipated defaults and early repayments. We consider historical Legacy-ILG vacation ownership notes receivable performance and the current economic environment in developing the expected future cash flows used in the re-measurement of our acquired vacation ownership notes receivable. The following table shows future contractual principal payments, as well as interest rates for our non-securitized and securitized acquired vacation ownership notes receivable, at June 30, 2019 . Acquired Vacation Ownership Notes Receivable ($ in millions) Non-Securitized Securitized Total 2019, remaining $ 7 $ 55 $ 62 2020 7 53 60 2021 8 53 61 2022 8 53 61 2023 8 52 60 Thereafter 35 206 241 Balance at June 30, 2019 $ 73 $ 472 $ 545 Weighted average stated interest rate 13.5% 13.4% 13.4% Range of stated interest rates 0.0% to 17.9% 6.0% to 16.9% 0.0% to 17.9% Originated Vacation Ownership Notes Receivable Originated vacation ownership notes receivable represent vacation ownership notes receivable originated by Legacy-ILG subsequent to the Acquisition Date and all Legacy-MVW vacation ownership notes receivable. The following table shows future principal payments, net of reserves, as well as interest rates, for our originated non-securitized and securitized originated vacation ownership notes receivable at June 30, 2019 . Originated Vacation Ownership Notes Receivable ($ in millions) Non-Securitized Securitized Total 2019, remaining $ 34 $ 65 $ 99 2020 45 114 159 2021 37 120 157 2022 32 125 157 2023 29 128 157 Thereafter 167 657 824 Balance at June 30, 2019 $ 344 $ 1,209 $ 1,553 Weighted average stated interest rate 11.8% 12.6% 12.4% Range of stated interest rates 0.0% to 18.0% 5.2% to 17.5% 0.0% to 18.0% For originated vacation ownership notes receivable, we record the difference between the vacation ownership note receivable and the variable consideration included in the transaction price for the sale of the related vacation ownership product as a reserve on our vacation ownership notes receivable. The following table summarizes the activity related to our originated vacation ownership notes receivable reserve. Originated Vacation Ownership Notes Receivable Reserve ($ in millions) Non-Securitized Securitized Total Balance at December 31, 2018 $ 61 $ 79 $ 140 Increase in vacation ownership notes receivable reserve 38 8 46 Securitizations (35 ) 35 — Clean-up call (1) 18 (18 ) — Write-offs (23 ) — (23 ) Defaulted vacation ownership notes receivable repurchase activity (2) 11 (11 ) — Balance at June 30, 2019 $ 70 $ 93 $ 163 _________________________ (1) Refers to our voluntary repurchase of previously securitized non-defaulted vacation ownership notes receivable to retire outstanding vacation ownership notes receivable from our Warehouse Credit Facility. (2) Decrease in securitized vacation ownership notes receivable reserve and increase in non-securitized vacation ownership notes receivable reserve was attributable to the transfer of the reserve when we voluntarily repurchased defaulted securitized vacation ownership notes receivable. Credit Quality of Vacation Ownership Notes Receivable Legacy-MVW Vacation Ownership Notes Receivable Although we consider loans to owners to be past due if we do not receive payment within 30 days of the due date, we suspend accrual of interest only on those loans that are over 90 days past due. We consider loans over 150 days past due to be in default and fully reserve such amounts. We apply payments we receive for vacation ownership notes receivable on non-accrual status first to interest, then to principal and any remainder to fees. We resume accruing interest when vacation ownership notes receivable are less than 90 days past due. We do not accept payments for vacation ownership notes receivable during the foreclosure process unless the amount is sufficient to pay all past due principal, interest, fees and penalties owed and fully reinstate the note. We write off vacation ownership notes receivable against the reserve once we receive title to the vacation ownership products through the foreclosure or deed-in-lieu process or, in Asia Pacific or Europe, when revocation is complete. For both Legacy-MVW non-securitized and securitized vacation ownership notes receivable, we estimated average remaining default rates of 6.94 percent and 7.01 percent as of June 30, 2019 and December 31, 2018 , respectively. A 0.5 percentage point increase in the estimated default rate would have resulted in an increase in our vacation ownership notes receivable reserve of $7 million as of both June 30, 2019 and December 31, 2018 . The following table shows our recorded investment in non-accrual Legacy-MVW vacation ownership notes receivable, which are vacation ownership notes receivable that are 90 days or more past due. Legacy-MVW Vacation Ownership Notes Receivable ($ in millions) Non-Securitized Securitized Total Investment in vacation ownership notes receivable on non-accrual status at June 30, 2019 $ 41 $ 8 $ 49 Investment in vacation ownership notes receivable on non-accrual status at December 31, 2018 $ 36 $ 9 $ 45 Average investment in vacation ownership notes receivable on non-accrual status during the second quarter of 2019 $ 39 $ 10 $ 49 Average investment in vacation ownership notes receivable on non-accrual status during the second quarter of 2018 $ 39 $ 8 $ 47 Average investment in vacation ownership notes receivable on non-accrual status during the first half of 2019 $ 38 $ 9 $ 47 Average investment in vacation ownership notes receivable on non-accrual status during the first half of 2018 $ 39 $ 7 $ 46 The following table shows the aging of the recorded investment in principal, before reserves, in Legacy-MVW vacation ownership notes receivable as of June 30, 2019 . Legacy-MVW Vacation Ownership Notes Receivable ($ in millions) Non-Securitized Securitized Total 31 – 90 days past due $ 6 $ 21 $ 27 91 – 150 days past due 5 8 13 Greater than 150 days past due 36 — 36 Total past due 47 29 76 Current 223 1,160 1,383 Total vacation ownership notes receivable $ 270 $ 1,189 $ 1,459 The following table shows the aging of the recorded investment in principal, before reserves, in Legacy-MVW vacation ownership notes receivable as of December 31, 2018 . Legacy-MVW Vacation Ownership Notes Receivable ($ in millions) Non-Securitized Securitized Total 31 – 90 days past due $ 7 $ 26 $ 33 91 – 150 days past due 3 9 12 Greater than 150 days past due 33 — 33 Total past due 43 35 78 Current 235 1,090 1,325 Total vacation ownership notes receivable $ 278 $ 1,125 $ 1,403 Legacy-ILG Vacation Ownership Notes Receivable On an ongoing basis, we monitor credit quality of our Legacy-ILG vacation ownership notes receivable portfolio based on payment activity as follows: • Current — The vacation ownership note receivable is in good standing as payments and reporting are current per the terms contractually stipulated in the agreement. • Delinquent — We consider a vacation ownership note receivable to be delinquent based on the contractual terms of each individual financing agreement. • Non-performing — Our vacation ownership notes receivable are generally considered non-performing if interest or principal is more than 30 days past due. All non-performing vacation ownership notes receivable are placed on non-accrual status and we do not resume interest accrual until the vacation ownership notes receivable becomes contractually current. We apply payments we receive for vacation ownership notes receivable on non-performing status first to interest, then to principal, and any remainder to fees. We consider vacation ownership notes receivable to be in default upon reaching 120 days outstanding. We use the origination of the vacation ownership notes receivable by brand (Hyatt, Sheraton or Westin) and the FICO scores of the customer as the primary credit quality indicators for our Legacy-ILG vacation ownership notes receivable, as historical performance indicates that there is a relationship between the default behavior of borrowers and the brand associated with the vacation ownership property they have acquired, supplemented by the FICO scores of the customers. At June 30, 2019 and December 31, 2018 , the weighted average FICO score within our consolidated Legacy-ILG vacation ownership notes receivable pools was 711 and 710 , respectively, based upon the outstanding vacation ownership notes receivable balance at time of origination. The average estimated rate for all future defaults for our Legacy-ILG consolidated outstanding pool of vacation ownership notes receivable as of June 30, 2019 and December 31, 2018 was 12.41 percent and 12.37 percent , respectively. A 0.5 percentage point increase in the estimated default rate on the Legacy-ILG originated vacation ownership notes receivable would have resulted in an increase in the related vacation ownership notes receivable reserve of $2 million and $1 million as of June 30, 2019 and December 31, 2018 , respectively. The following table shows the Legacy-ILG acquired vacation ownership notes receivable by brand and FICO score as of June 30, 2019 . Acquired Vacation Ownership Notes Receivable ($ in millions) 700 + 600 - 699 < 600 No Score (1) Total Westin $ 127 $ 70 $ 5 $ 17 $ 219 Sheraton 120 104 19 45 288 Hyatt 17 12 2 — 31 Other 4 1 — 2 7 $ 268 $ 187 $ 26 $ 64 $ 545 _________________________ (1) Vacation ownership notes receivable with no FICO score primarily relate to non-U.S. resident borrowers. The following table shows the Legacy-ILG acquired vacation ownership notes receivable by brand and FICO score as of December 31, 2018 . Acquired Vacation Ownership Notes Receivable ($ in millions) 700 + 600 - 699 < 600 No Score (1) Total Westin $ 154 $ 82 $ 6 $ 21 $ 263 Sheraton 145 124 21 55 345 Hyatt 20 13 2 — 35 Other 4 1 — 3 8 $ 323 $ 220 $ 29 $ 79 $ 651 _________________________ (1) Vacation ownership notes receivable with no FICO score primarily relate to non-U.S. resident borrowers. The following table shows the Legacy-ILG originated vacation ownership notes receivable by brand and FICO score as of June 30, 2019 . Originated Vacation Ownership Notes Receivable ($ in millions) 700 + 600 - 699 < 600 No Score (1) Total Westin $ 80 $ 27 $ 2 $ 14 $ 123 Sheraton 58 36 6 21 121 Hyatt 9 4 1 — 14 $ 147 $ 67 $ 9 $ 35 $ 258 _________________________ (1) Vacation ownership notes receivable with no FICO score primarily relate to non-U.S. resident borrowers. The following table shows the Legacy-ILG originated vacation ownership notes receivable by brand and FICO score as of December 31, 2018 . Originated Vacation Ownership Notes Receivable ($ in millions) 700 + 600 - 699 < 600 No Score (1) Total Westin $ 43 $ 11 $ 1 $ 7 $ 62 Sheraton 28 17 3 9 57 Hyatt 5 2 — — 7 $ 76 $ 30 $ 4 $ 16 $ 126 _________________________ (1) Vacation ownership notes receivable with no FICO score primarily relate to non-U.S. resident borrowers. The following table shows the aging of the recorded investment in principal, before reserves, in Legacy-ILG originated vacation ownership notes receivable as of June 30, 2019 and December 31, 2018 . Originated Vacation Ownership Notes Receivable Delinquent Defaulted (1) Total Delinquent & Defaulted ($ in millions) Receivables Current 30 - 59 Days 60 - 89 Days 90 - 119 Days > 120 Days As of June 30, 2019 $ 258 $ 252 $ 3 $ 2 $ 1 $ — $ 6 As of December 31, 2018 $ 126 $ 124 $ 2 $ — $ — $ — $ 2 _________________________ (1) Vacation ownership notes receivable equal to or greater than 120 days are considered in default. |
FINANCIAL INSTRUMENTS
FINANCIAL INSTRUMENTS | 6 Months Ended |
Jun. 30, 2019 | |
Investments, All Other Investments [Abstract] | |
FINANCIAL INSTRUMENTS | 7. FINANCIAL INSTRUMENTS The following table shows the carrying values and the estimated fair values of financial assets and liabilities that qualify as financial instruments, determined in accordance with the authoritative guidance for disclosures regarding the fair value of financial instruments. Considerable judgment is required in interpreting market data to develop estimates of fair value. The use of different market assumptions and/or estimation methodologies could have a material effect on the estimated fair value amounts. The table excludes Cash and cash equivalents, Restricted cash, Accounts receivable, Accounts payable, Advance deposits and Accrued liabilities, all of which had fair values approximating their carrying amounts due to the short maturities and liquidity of these instruments. The table also excludes acquired vacation ownership notes receivable which are remeasured at each period end based on expected future cash flows. See Footnote 6 “ Vacation Ownership Notes Receivable ” for additional information on our acquired vacation ownership notes receivable. At June 30, 2019 At December 31, 2018 ($ in millions) Carrying Amount Fair Value Carrying Amount Fair Value Originated vacation ownership notes receivable $ 1,553 $ 1,584 $ 1,388 $ 1,413 Other assets 41 41 66 66 Total financial assets $ 1,594 $ 1,625 $ 1,454 $ 1,479 Securitized debt, net $ (1,792 ) $ (1,820 ) $ (1,714 ) $ (1,718 ) Exchange Notes, net (88 ) (89 ) (88 ) (87 ) Senior Unsecured Notes, net (742 ) (807 ) (741 ) (726 ) IAC Notes (141 ) (140 ) (141 ) (140 ) Term Loan, net (884 ) (895 ) (888 ) (887 ) Revolving Corporate Credit Facility, net (76 ) (76 ) — — Convertible notes, net (203 ) (221 ) (199 ) (198 ) Non-interest bearing note payable, net — — (30 ) (30 ) Total financial liabilities $ (3,926 ) $ (4,048 ) $ (3,801 ) $ (3,786 ) Originated Vacation Ownership Notes Receivable At June 30, 2019 At December 31, 2018 ($ in millions) Carrying Amount Fair Value Carrying Amount Fair Value Originated vacation ownership notes receivable Securitized $ 1,209 $ 1,238 $ 1,070 $ 1,093 Eligible for securitization 83 85 85 87 Not eligible for securitization 261 261 233 233 Non-securitized 344 346 318 320 $ 1,553 $ 1,584 $ 1,388 $ 1,413 We estimate the fair value of our originated vacation ownership notes receivable that have been securitized using a discounted cash flow model. We believe this is comparable to the model that an independent third party would use in the current market. Our model uses default rates, prepayment rates, coupon rates and loan terms for our securitized vacation ownership notes receivable portfolio as key drivers of risk and relative value to determine the fair value of the underlying vacation ownership notes receivable. We concluded that this fair value measurement should be categorized within Level 3. Due to factors that impact the general marketability of our originated vacation ownership notes receivable that have not been securitized, as well as current market conditions, we bifurcate our non-securitized vacation ownership notes receivable at each balance sheet date into those eligible and not eligible for securitization using criteria applicable to current securitization transactions in the ABS market. Generally, vacation ownership notes receivable are considered not eligible for securitization if any of the following attributes are present: (1) payments are greater than 30 days past due; (2) the first payment has not been received; or (3) the collateral is located in Asia or Europe. In some cases, eligibility may also be determined based on the credit score of the borrower, the remaining term of the loans and other similar factors that may reflect investor demand in a securitization transaction or the cost to effectively securitize the vacation ownership notes receivable. The table above shows the bifurcation of our originated vacation ownership notes receivable that have not been securitized into those eligible and not eligible for securitization based upon the aforementioned eligibility criteria. We estimate the fair value of the portion of our originated vacation ownership notes receivable that have not been securitized that we believe will ultimately be securitized in the same manner as originated vacation ownership notes receivable that have been securitized. We value the remaining originated vacation ownership notes receivable that have not been securitized at their carrying value, rather than using our pricing model. We believe that the carrying value of these particular vacation ownership notes receivable approximates fair value because the stated, or otherwise imputed, interest rates of these loans are consistent with current market rates and the reserve for these vacation ownership notes receivable appropriately accounts for risks in default rates, prepayment rates, discount rates and loan terms. We concluded that this fair value measurement should be categorized within Level 3. Other Assets Other assets include $34 million of company owned insurance policies (the “COLI policies”), acquired on the lives of certain participants in the Marriott Vacations Worldwide Deferred Compensation Plan, that are held in a rabbi trust. The carrying value of the COLI policies is equal to their cash surrender value (Level 2 inputs). In addition, we have investments in marketable securities of $7 million that are marked to market as trading securities using quoted market prices (Level 1 inputs). Securitized Debt We generate cash flow estimates by modeling all bond tranches for our active vacation ownership notes receivable securitization transactions, with consideration for the collateral specific to each tranche. The key drivers in our analysis include default rates, prepayment rates, bond interest rates and other structural factors, which we use to estimate the projected cash flows. In order to estimate market credit spreads by rating, we obtain indicative credit spreads from investment banks that actively issue and facilitate the market for vacation ownership securities and determine an average credit spread by rating level of the different tranches. We then apply those estimated market spreads to swap rates in order to estimate an underlying discount rate for calculating the fair value of the active bonds payable. We concluded that this fair value measurement should be categorized within Level 3. Exchange Notes We estimate the fair value of our Exchange Notes (as defined in Footnote 14 “ Debt ”) using indicative quotes from securities dealers as of the last trading day for the quarter; however these notes have only a limited trading history and volume and as such this fair value estimate is not necessarily indicative of the value at which the Exchange Notes could be retired or transferred. We concluded that this fair value measurement should be categorized within Level 3. Senior Unsecured Notes We estimate the fair value of our Senior Unsecured Notes (as defined in Footnote 14 “ Debt ”) using quoted market prices as of the last trading day for the quarter; however these notes have only a limited trading history and volume and as such this fair value estimate is not necessarily indicative of the value at which the Senior Unsecured Notes could be retired or transferred. We concluded that this fair value measurement should be categorized within Level 2. IAC Notes We estimate the fair value of our IAC Notes (as defined in Footnote 14 “ Debt ”) using indicative quotes from securities dealers as of the last trading day for the quarter; however these notes have only a limited trading volume and as such this fair value estimate is not necessarily indicative of the value at which the IAC Notes could be retired or transferred. We concluded that this fair value measurement should be categorized within Level 3. Term Loan We estimate that the fair value of our Term Loan (as defined in Footnote 14 “ Debt ”) indicative quotes from securities dealers as of the last trading day for the quarter; however these notes have only a limited trading history and volume and as such this fair value estimate is not necessarily indicative of the value at which the Term Loan could be retired or transferred. We concluded that this fair value measurement should be categorized within Level 3. Revolving Corporate Credit Facility We estimate that the fair value of our Revolving Corporate Credit Facility (as defined in Footnote 11 “ Contingencies and Commitments ”) approximates its gross carrying value as the contractual interest rate is variable plus an applicable margin. We concluded that this fair value measurement should be categorized within Level 3. Convertible Notes We estimate the fair value of our Convertible Notes (as defined in Footnote 14 “ Debt ”) using quoted market prices as of the last trading day for the quarter; however these notes have only a limited trading history and volume and as such this fair value estimate is not necessarily indicative of the value at which the Convertible Notes could be retired or transferred. We concluded that this fair value measurement should be categorized within Level 2. The difference between the carrying value and the fair value is primarily attributed to the underlying conversion feature, and the spread between the conversion price and the market value of the shares underlying the Convertible Notes. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 6 Months Ended |
Jun. 30, 2019 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | 8. EARNINGS PER SHARE Basic earnings per common share attributable to common shareholders is calculated by dividing net income attributable to common shareholders by the weighted average number of shares of common stock outstanding during the reporting period. Treasury stock is excluded from the weighted average number of shares of common stock outstanding. Diluted earnings per common share attributable to common shareholders is calculated to give effect to all potentially dilutive common shares that were outstanding during the reporting period. The dilutive effect of outstanding equity-based compensation awards is reflected in diluted earnings per common share applicable to common shareholders by application of the treasury stock method using average market prices during the period. Our calculation of diluted earnings per share attributable to common shareholders reflects our intent to settle conversions of the Convertible Notes through a combination settlement, which contemplates repayment in cash of the principal amount and repayment in shares of our common stock of any excess of the conversion value over the principal amount (the “conversion premium”). Therefore, we include only the shares that may be issued with respect to any conversion premium in total dilutive weighted average shares outstanding, which we calculate using the treasury stock method. As no conversion premium existed as of either June 30, 2019 or June 30, 2018 , there was no dilutive impact from the Convertible Notes for either the second quarter or first half of 2019 or 2018. The shares issuable on exercise of the Warrants (as defined in Footnote 14 “ Debt ”) sold in connection with the issuance of the Convertible Notes will not impact the total dilutive weighted average shares outstanding unless and until the price of our common stock exceeds the strike price, which was subject to adjustment during the second quarter of 2019 to $175.79 , as described in Footnote 14 “ Debt .” If and when the price of our common stock exceeds the strike price of the Warrants, we will include the dilutive effect of the additional shares that may be issued upon exercise of the Warrants in total dilutive weighted average shares outstanding, which we calculate using the treasury stock method. The Convertible Note Hedges (as defined in Footnote 14 “ Debt ”) purchased in connection with the issuance of the Convertible Notes are considered to be anti-dilutive and will not impact our calculation of diluted earnings per share attributable to common shareholders. The table below illustrates the reconciliation of the earnings and number of shares used in our calculation of basic and diluted earnings per share attributable to common shareholders. Three Months Ended Six Months Ended (in millions, except per share amounts) June 30, 2019 (1) June 30, 2018 (1) June 30, 2019 (1) June 30, 2018 (1) Computation of Basic Earnings Per Share Attributable to Common Shareholders Net income attributable to common shareholders $ 49 $ 11 $ 73 $ 47 Shares for basic earnings per share 44.7 26.7 45.1 26.7 Basic earnings per share $ 1.11 $ 0.40 $ 1.62 $ 1.75 Computation of Diluted Earnings Per Share Attributable to Common Shareholders Net income attributable to common shareholders $ 49 $ 11 $ 73 $ 47 Shares for basic earnings per share 44.7 26.7 45.1 26.7 Effect of dilutive shares outstanding Employee stock options and SARs 0.3 0.4 0.3 0.4 Restricted stock units 0.2 0.2 0.2 0.2 Shares for diluted earnings per share 45.2 27.3 45.6 27.3 Diluted earnings per share $ 1.10 $ 0.39 $ 1.61 $ 1.71 _______________________________ (1) The computations of diluted earnings per share attributable to common shareholders exclude approximately 452,000 and 307,000 shares of common stock, the maximum number of shares issuable as of June 30, 2019 and June 30, 2018 , respectively, upon the vesting of certain performance-based awards because the performance conditions required to be met for the shares subject to such awards to vest were not achieved by the end of the reporting period. In accordance with the applicable accounting guidance for calculating earnings per share, for the second quarter of 2019 , we excluded from our calculation of diluted earnings per share 167,760 shares underlying stock appreciation rights (“SARs”) that may settle in shares of common stock because the exercise prices of such SARs, which ranged from $100.52 to $143.38 , were greater than the average market price for the applicable period. For the first half of 2019 , we excluded from our calculation of diluted earnings per share 249,737 shares underlying SARs that may settle in shares of common stock because the exercise prices of such SARs, which ranged from $97.53 to $143.38 , were greater than the average market price for the applicable period. For the second quarter and first half of 2018 , we excluded from our calculation of diluted earnings per share 56,649 shares underlying SARs that may settle in shares of common stock because the exercise price of $143.38 of such SARs was greater than the average market price for the applicable period. |
INVENTORY
INVENTORY | 6 Months Ended |
Jun. 30, 2019 | |
Inventory Disclosure [Abstract] | |
INVENTORY | 9. INVENTORY The following table shows the composition of our inventory balances: ($ in millions) At June 30, 2019 At December 31, 2018 Finished goods (1) $ 828 $ 843 Work-in-progress 48 9 Real estate inventory 876 852 Other 12 11 $ 888 $ 863 _________________________ (1) Represents completed inventory that is either registered for sale as vacation ownership interests, or unregistered and available for sale in its current form. We value vacation ownership products at the lower of cost or fair market value less costs to sell, in accordance with applicable accounting guidance, and we record operating supplies at the lower of cost (using the first-in, first-out method) or net realizable value. Product cost true-up activity relating to vacation ownership products increased carrying values of inventory by $4 million and less than $1 million during the first half of 2019 and the first half of 2018 , respectively. In addition to the above, at June 30, 2019 , we had $48 million |
PROPERTY AND EQUIPMENT
PROPERTY AND EQUIPMENT | 6 Months Ended |
Jun. 30, 2019 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY AND EQUIPMENT | 10. PROPERTY AND EQUIPMENT The following table details the composition of our property and equipment balances: ($ in millions) At June 30, 2019 At December 31, 2018 Land and land improvements $ 373 $ 466 Buildings and leasehold improvements 403 404 Furniture, fixtures and other equipment 87 88 Information technology 311 297 Construction in progress 38 32 1,212 1,287 Accumulated depreciation (375 ) (336 ) $ 837 $ 951 As a result of the ILG Acquisition, we are performing a comprehensive review of our property and equipment to determine the best strategic direction with respect to these assets for the combined company. These assets include undeveloped parcels, future phases of existing resorts, operating hotels and other non-core assets. A key focus of the comprehensive review is to evaluate opportunities to reduce holdings in markets where we have excess supply so that future inventory spend will be focused on markets that create incremental cost-effective sales locations in areas of high customer demand. The result of this review could have a material impact on the carrying value of certain assets, which, in turn, would result in non-cash impairments. During the second quarter of 2019, we entered into a contract to sell land and land improvements associated with a future phase of an existing resort located in Orlando, Florida for $10 million , which was less than the carrying value of the land and land improvements. As a result, we recorded a non-cash impairment of $26 million in the first half of 2019. The impairment is primarily attributable to the fact that the book value of the assets to be sold exceeds the sales price because the book value includes allocations of common costs incurred when we built the infrastructure for the resort, including future phases. |
CONTINGENCIES AND COMMITMENTS
CONTINGENCIES AND COMMITMENTS | 6 Months Ended |
Jun. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
CONTINGENCIES AND COMMITMENTS | 11. CONTINGENCIES AND COMMITMENTS Commitments and Letters of Credit As of June 30, 2019 , we had the following commitments outstanding: • We have various contracts for the use of information technology hardware and software that we use in the normal course of business. Our aggregate commitments under these contracts were $62 million , of which we expect $19 million , $19 million , $10 million , $7 million , $6 million and $1 million will be paid in the remainder of 2019, 2020, 2021, 2022, 2023 and thereafter, respectively. • We have commitments of $3 million to subsidize operating costs of vacation ownership property owners’ associations, which we expect to pay in 2019. • We have a commitment to purchase an operating property located in New York, New York for $182 million , of which $7 million is attributable to a related finance lease arrangement and recorded in Debt. We expect to acquire the units in the property in their current form, over time, and we expect to make payments for these units of $120 million and $62 million in 2020 and 2021, respectively. We currently manage this property, which was rebranded as Marriott Vacation Club Pulse, New York City. See Footnote 17 “ Variable Interest Entities ” for additional information on this transaction and our activities relating to the variable interest entity involved in this transaction. • We have a commitment to purchase 88 vacation ownership units located in Bali, Indonesia for use in our Vacation Ownership segment, contingent upon completion of construction to agreed-upon standards within specified timeframes. We expect to complete the acquisition in 2020 and to make the remaining payments with respect to these units when specific construction milestones are completed, as follows: $7 million in 2019, $23 million in 2020 and $2 million in 2021. • During the second quarter of 2019, we amended a commitment to purchase an operating property located in San Francisco, California for $158 million of which $9 million is attributable to a related finance lease arrangement and recorded in Debt. We expect to acquire the operating property over time and expect to make payments for the operating property as follows: $57 million in 2019, $55 million in 2020 and $46 million in 2021. We currently manage this property, which was rebranded as Marriott Vacation Club Pulse, San Francisco, during 2019. See Footnote 17 “ Variable Interest Entities ” for additional information on this transaction and our activities relating to the variable interest entity involved in this transaction. Subsequent to the end of the second quarter of 2019, we made a payment of $57 million relating to this commitment. Surety bonds issued as of June 30, 2019 totaled $78 million , the majority of which were requested by federal, state or local governments in connection with our operations. As of June 30, 2019 , we had $4 million of letters of credit outstanding under our $600 million revolving credit facility (the “Revolving Corporate Credit Facility”). In addition, as of June 30, 2019, we had $4 million in letters of credit outstanding related to and in lieu of reserves required for several vacation ownership notes receivable securitization transactions outstanding. These letters of credit are not issued pursuant to, nor do they impact our borrowing capacity under, the Revolving Credit Facility. We estimate the cash outflow associated with completing the phases of our existing portfolio of vacation ownership projects currently under development will be approximately $17 million , of which $3 million is included within liabilities on our Balance Sheet at June 30, 2019 . This estimate is based on our current development plans, which remain subject to change, and we expect the phases currently under development will be completed by the end of 2019. Guarantees Certain of our rental management agreements in our Exchange & Third-Party Management segment provide for owners of properties we manage to receive specified percentages or guaranteed amounts of the rental revenue generated under our management. In these cases, the operating expenses for the rental operations are paid from the revenue generated by the rentals, the owners are then paid their contractual percentages or guaranteed amounts, and our vacation rental business either retains the balance (if any) as its fee or makes up the deficit. At June 30, 2019 , our maximum exposure under these guarantees is $37 million , of which $8 million , $10 million , $9 million , $4 million , $2 million and $4 million relate to the remainder of 2019, 2020, 2021, 2022, 2023 and thereafter. In addition, our maximum exposure under other guarantees is $4 million . Loss Contingencies In March 2017, RCHFU, L.L.C. and other owners at The Ritz-Carlton Club, Aspen Highlands (“RCC Aspen Highlands”) filed a complaint in an action pending in the U.S. District Court for the District of Colorado against us and certain third parties, alleging that their fractional interests were devalued by the affiliation of the RCC Aspen Highlands and other Ritz-Carlton Clubs with our points-based Marriott Vacation Club Destinations (“MVCD”) program. The plaintiffs are seeking compensatory damages, disgorgement, fees and costs. In May 2016, a purported class-action lawsuit was filed in the U.S. District Court for the Middle District of Florida by Anthony and Beth Lennen against us and certain third parties. The complaint challenges the characterization of the beneficial interests in the MVCD trust that are sold to customers as real estate interests under Florida law, the structure of the trust, and associated operational aspects of the trust. The plaintiffs are seeking declaratory relief, an unwinding of the MVCD product, and punitive damages. In December 2016, Flora and Bruce Gillespie and other owners and former owners of fractional interests at the Fifth and Fifty-Fifth Residence Club located within The St. Regis, New York (the “St. Regis NY Club”) filed an action in the U.S. District Court for the Southern District of New York against ILG, certain of its subsidiaries, and certain third parties alleging that the sale of less than all interests offered in the fractional offering plan, the amendment of the plan to include additional units, and the rental of unsold fractional interests by the plan’s sponsor breached the relevant agreements and harmed the value of plaintiffs’ fractional interests. The plaintiffs are seeking compensatory damages, rescission, disgorgement, fees and costs. In February 2017, the owners’ association for the St. Regis NY Club filed a separate suit against ILG and certain of its subsidiaries in the U.S. District Court for the Southern District of New York, which was amended to add Marriott International and Starwood as additional defendants in March 2017. The lawsuit was subsequently transferred to the U.S. District Court for the Middle District of Florida. The operative complaint alleges that the sponsor of the St. Regis NY Club (St. Regis Residence Club, New York, Inc.), the St. Regis NY Club manager (St. Regis New York Management, Inc.), and certain affiliated entities, as well as Marriott International and Starwood, breached their fiduciary duties related to sale and rental practices, and further alleges tortious interference with the management agreement, unjust enrichment, and anticompetitive conduct. The amended complaint also alleges anticompetitive conduct in connection with the renewal of the St. Regis NY Club management agreement. The plaintiff is seeking declaratory relief in connection with the Starpoint conversion program and the exchange program at the St. Regis NY Club, unspecified damages, and disgorgement of payments under the management and purchase agreements. In April 2019, a purported class-action lawsuit was filed by Alan and Marjorie Helman and others against us in the Superior Court of the Virgin Islands, Division of St. Thomas alleging that their fractional interests were devalued by the affiliation of The Ritz-Carlton Club, St. Thomas and other Ritz-Carlton Clubs with our MVCD program. The lawsuit was subsequently removed to the U.S. District Court for the District of the Virgin Islands. The plaintiffs are seeking unspecified damages, disgorgement of profits, fees and costs. In May 2019, the G.A. Resort Condominium Association Inc., the owners’ association for the fractional owners at the Hyatt Residence Club Grand Aspen resort (“HRC Grand Aspen”) filed a lawsuit against us in the District Court for the County of Pitkin, Colorado relating to the transfer of ownership of developer-owned fractional interests at HRC Grand Aspen to the HPC Trust Club for sale and use as a part of the Hyatt Residence Club Portfolio Program. The lawsuit was subsequently removed to the U.S. District Court for the District of Colorado. The plaintiff is seeking termination of the management agreement with the owners’ association, the annulment of certain amendments to governing documents at HRC Grand Aspen, the removal of fractional interests at HRC Grand Aspen from the HPC Trust Club, unspecified damages, disgorgement of profits, fees and costs. We believe we have meritorious defenses to the claims in each of the above matters and intend to vigorously defend each matter. In the ordinary course of our business, various claims and lawsuits have been filed or are pending against us. A number of these lawsuits and claims may exist at any given time. We record and accrue for legal contingencies when we determine that it is probable that a liability has been incurred and the amount of the loss can be reasonably estimated. In making such determinations, we evaluate, among other things, the degree of probability of an unfavorable outcome and, when it is probable that a liability has been incurred, our ability to make a reasonable estimate of loss. We review these accruals each reporting period and make revisions based on changes in facts and circumstances. We have not accrued for any of the pending matters described above and we cannot estimate a range of the potential liability associated with these pending matters, if any, at this time. We have accrued for other claims and lawsuits, but the amount accrued is not material in the aggregate. For matters not requiring accrual, we do not believe that the ultimate outcome of such matters, individually and in the aggregate, will materially harm our financial position, cash flows, or overall trends in results of operations based on information currently available. However, legal proceedings are inherently uncertain, and while we believe that our accruals are adequate and/or we have valid defenses to the claims asserted, unfavorable rulings could occur that could, individually or in the aggregate, have a material adverse effect on our business, financial condition, or operating results. Other During June 2018, we identified forged and fraudulently induced electronic payment disbursements we made to third parties in an aggregate amount of $10 million resulting from unauthorized third-party access to our email system. Upon detection, we immediately notified law enforcement authorities and relevant financial institutions and commenced a forensic investigation. During 2018, we recovered $6 million . During the second quarter of 2019, we received $3 million from our insurance company as final settlement of our claim, and the insurance company waived the requirement for us to reimburse the insurance company for any monies subsequently recovered. We recorded a gain of $3 million in the Gains (losses) and other income (expense), net line of our Income Statement for the second quarter and first half of 2019. Any additional recoveries will be recorded in our results in the future. We have concluded that this event did not involve access to any of our other systems. No other misappropriation of assets was identified during our investigation. Insurance Recoveries During September 2017, the Westin St. John Resort Villas, a Legacy-ILG property, sustained damage as a result of Hurricane Irma and remained closed until January 2019. As of June 30, 2019 , the property insurance claim receivable related to this event and other 2017 storms was $10 million and is presented within Accounts receivable on our Balance Sheet. This balance is subject to change. In September 2017, over 20 of our Legacy-MVW properties were impacted by Hurricane Irma and Hurricane Maria and, as a result, as of December 31, 2017, we accrued $1 million for the estimated property damage insurance deductibles and impairment of property and equipment, which was recorded in the Gains and other income, net line on our Income Statement for the year ended December 31, 2017. In 2018, we received $32 million of insurance proceeds related to the settlement of Legacy-MVW business interruption insurance claims arising from Hurricane Irma. These proceeds, and the related deductible of $3 million , were recorded net in the Gains and other income, net line on our Income Statement for the year ended December 31, 2018. During the first quarter of 2019, we recorded an additional $9 million of other income relating to the final settlement of these business interruption insurance claims, which was recorded in the Gains (losses) and other income (expense), net line on our Income Statement for the six months ended June 30, 2019 . |
LEASES
LEASES | 6 Months Ended |
Jun. 30, 2019 | |
Leases [Abstract] | |
LEASES | 12. LEASES We account for leases in accordance with ASC 842, which we adopted using the optional transition method in the period of adoption as of January 1, 2019, without retrospective application to comparative periods. See Footnote 2 “ Significant Accounting Policies and Recent Accounting Standards ” for additional information. Operating leases include lease arrangements for various land, corporate facilities, real estate and equipment. Our land leases consist of long-term leases for a golf course (term of 30 years) and for land underlying an operating hotel (term of 50 years). Corporate facilities leases are for office space, including our corporate headquarters in Orlando, Florida, and have lease terms that range from nine to 14 years. Other operating leases are primarily for office and retail space, as well as various equipment supporting our operations, with varying terms and renewal option periods. Finance leases (analogous to capital leases under ASC 840) include lease arrangements for ancillary and operations space for which it is reasonably certain we will exercise the option to purchase the underlying assets in connection with the commitment to purchase the associated operating property. See Footnote 11 “ Contingencies and Commitments ” for additional information regarding these transactions. In addition, we also lease various equipment supporting our operations and classify these leases as finance leases in accordance with ASC 842. The depreciable life of these assets are limited to the expected lease term, unless there is a transfer of title or purchase option reasonably certain of exercise. Right-of-use assets and lease liabilities are recognized based on the present value of lease payments over the lease term at commencement date. For purposes of calculating lease liabilities, lease terms may be deemed to include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Macro-economic conditions are the primary factor used to estimate whether an option to extend a lease term will be exercised or not. For existing leases that commenced prior to the adoption of ASC 842, we made an accounting policy election to use our incremental borrowing rate, considering the remaining lease term and remaining minimum rental payments during transition, in establishing our lease liabilities. For new leases entered into after the adoption of ASC 842, we will use an incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments. Certain of our lease agreements include variable rental payments that are based on a percentage of retail sales over contractual levels and others include rental payments adjusted periodically for inflation. The following table presents the carrying values of our leases and the classification on our Balance Sheet as of June 30, 2019 . ($ in millions) Balance Sheet Classification At June 30, 2019 Operating lease assets Other assets $ 121 Finance lease assets Property and equipment 22 $ 143 Operating lease liabilities Accrued liabilities $ 134 Finance lease liabilities Debt 22 $ 156 The following table presents the lease costs and the classification on our Income Statement for the three and six months ended June 30, 2019 . ($ in millions) Income Statement Classification Three Months Ended June 30, 2019 Six Months Ended June 30, 2019 Operating lease cost Marketing and sales expense $ 9 $ 17 Finance lease cost Amortization of right-of-use assets Depreciation and amortization 1 2 Interest on lease liabilities Interest expense 1 1 Variable lease cost Marketing and sales expense 1 2 $ 12 $ 22 The following table presents the maturity of our operating and financing lease liabilities as of June 30, 2019 . ($ in millions) Operating Leases Finance Leases (1) Total 2019, remaining $ 15 $ 11 $ 26 2020 29 10 39 2021 21 2 23 2022 18 — 18 2023 16 — 16 Thereafter 103 — 103 Total lease payments 202 23 225 Less: Imputed interest (68 ) (1 ) (69 ) $ 134 $ 22 $ 156 _________________________ (1) Finance lease payments include $17 million related to residual value guarantees associated with purchase commitments for operating properties in San Francisco, California and New York, New York. See Footnote 11 “ Contingencies and Commitments ” for additional information regarding these transactions. Lease Term and Discount Rate At June 30, 2019 Weighted-average remaining lease term (in years) Operating leases 11.4 years Finance leases 0.7 years Weighted-average discount rate Operating leases 6.1% Finance leases 4.8% Other Information ($ in millions) Six Months Ended June 30, 2019 Cash paid for amounts included in measurement of lease liabilities Operating cash flows for finance leases $ — Operating cash flows for operating leases 17 Financing cash flows for finance leases 2 $ 19 |
LEASES | 12. LEASES We account for leases in accordance with ASC 842, which we adopted using the optional transition method in the period of adoption as of January 1, 2019, without retrospective application to comparative periods. See Footnote 2 “ Significant Accounting Policies and Recent Accounting Standards ” for additional information. Operating leases include lease arrangements for various land, corporate facilities, real estate and equipment. Our land leases consist of long-term leases for a golf course (term of 30 years) and for land underlying an operating hotel (term of 50 years). Corporate facilities leases are for office space, including our corporate headquarters in Orlando, Florida, and have lease terms that range from nine to 14 years. Other operating leases are primarily for office and retail space, as well as various equipment supporting our operations, with varying terms and renewal option periods. Finance leases (analogous to capital leases under ASC 840) include lease arrangements for ancillary and operations space for which it is reasonably certain we will exercise the option to purchase the underlying assets in connection with the commitment to purchase the associated operating property. See Footnote 11 “ Contingencies and Commitments ” for additional information regarding these transactions. In addition, we also lease various equipment supporting our operations and classify these leases as finance leases in accordance with ASC 842. The depreciable life of these assets are limited to the expected lease term, unless there is a transfer of title or purchase option reasonably certain of exercise. Right-of-use assets and lease liabilities are recognized based on the present value of lease payments over the lease term at commencement date. For purposes of calculating lease liabilities, lease terms may be deemed to include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Macro-economic conditions are the primary factor used to estimate whether an option to extend a lease term will be exercised or not. For existing leases that commenced prior to the adoption of ASC 842, we made an accounting policy election to use our incremental borrowing rate, considering the remaining lease term and remaining minimum rental payments during transition, in establishing our lease liabilities. For new leases entered into after the adoption of ASC 842, we will use an incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments. Certain of our lease agreements include variable rental payments that are based on a percentage of retail sales over contractual levels and others include rental payments adjusted periodically for inflation. The following table presents the carrying values of our leases and the classification on our Balance Sheet as of June 30, 2019 . ($ in millions) Balance Sheet Classification At June 30, 2019 Operating lease assets Other assets $ 121 Finance lease assets Property and equipment 22 $ 143 Operating lease liabilities Accrued liabilities $ 134 Finance lease liabilities Debt 22 $ 156 The following table presents the lease costs and the classification on our Income Statement for the three and six months ended June 30, 2019 . ($ in millions) Income Statement Classification Three Months Ended June 30, 2019 Six Months Ended June 30, 2019 Operating lease cost Marketing and sales expense $ 9 $ 17 Finance lease cost Amortization of right-of-use assets Depreciation and amortization 1 2 Interest on lease liabilities Interest expense 1 1 Variable lease cost Marketing and sales expense 1 2 $ 12 $ 22 The following table presents the maturity of our operating and financing lease liabilities as of June 30, 2019 . ($ in millions) Operating Leases Finance Leases (1) Total 2019, remaining $ 15 $ 11 $ 26 2020 29 10 39 2021 21 2 23 2022 18 — 18 2023 16 — 16 Thereafter 103 — 103 Total lease payments 202 23 225 Less: Imputed interest (68 ) (1 ) (69 ) $ 134 $ 22 $ 156 _________________________ (1) Finance lease payments include $17 million related to residual value guarantees associated with purchase commitments for operating properties in San Francisco, California and New York, New York. See Footnote 11 “ Contingencies and Commitments ” for additional information regarding these transactions. Lease Term and Discount Rate At June 30, 2019 Weighted-average remaining lease term (in years) Operating leases 11.4 years Finance leases 0.7 years Weighted-average discount rate Operating leases 6.1% Finance leases 4.8% Other Information ($ in millions) Six Months Ended June 30, 2019 Cash paid for amounts included in measurement of lease liabilities Operating cash flows for finance leases $ — Operating cash flows for operating leases 17 Financing cash flows for finance leases 2 $ 19 |
SECURITIZED DEBT
SECURITIZED DEBT | 6 Months Ended |
Jun. 30, 2019 | |
Debt Disclosure [Abstract] | |
SECURITIZED DEBT | 13. SECURITIZED DEBT The following table provides detail on our securitized debt, net of unamortized debt issuance costs. ($ in millions) At June 30, 2019 At December 31, 2018 Vacation ownership notes receivable securitizations, gross (1) $ 1,787 $ 1,590 Unamortized debt discount and issuance costs (15 ) (11 ) 1,772 1,579 Warehouse Credit Facility, gross — 116 Unamortized debt issuance costs (2) — (1 ) — 115 Other (3) 20 20 $ 1,792 $ 1,714 _________________________ (1) Interest rates as of June 30, 2019 range from 2.2% to 6.3% , with a weighted average interest rate of 2.9% (2) Excludes $1 million of unamortized debt issuance costs as of June 30, 2019 , as no cash borrowings were outstanding on the Warehouse Credit Facility at that time (3) Non-recourse See Footnote 17 “ Variable Interest Entities ” for a discussion of the collateral for the non-recourse debt associated with the securitized vacation ownership notes receivable and our non-recourse warehouse credit facility (the “Warehouse Credit Facility”). The debt associated with our vacation ownership notes receivable securitizations and our Warehouse Credit Facility is non-recourse to us. Vacation Ownership Notes Receivable Securitizations On May 23, 2019, we completed the securitization of a pool of $459 million of vacation ownership notes receivable. Approximately $367 million of the vacation ownership notes receivable were purchased on May 23, 2019 by MVW 2019-1 LLC (the “2019-1 LLC”), and an additional $85 million of the vacation ownership notes receivable were purchased prior to June 30, 2019. As of June 30, 2019 , the 2019-1 LLC held $6 million of the proceeds, which were released as the remaining vacation ownership notes receivable were purchased. On July 12, 2019, subsequent to the end of the second quarter of 2019, the 2019-1 LLC purchased the remaining $7 million of vacation ownership notes receivable and $6 million was released from restricted cash. In connection with the securitization, investors purchased in a private placement $450 million in vacation ownership loan backed notes from the 2019-1 LLC. Three classes of vacation ownership loan backed notes were issued by the 2019-1 LLC: $350 million of Class A Notes, $67 million of Class B Notes and $33 million of Class C Notes. The Class A Notes have an interest rate of 2.89 percent , the Class B Notes have an interest rate of 3.00 percent and the Class C Notes have an interest rate of 3.33 percent , for an overall weighted average interest rate of 2.94 percent . Each of the securitized vacation ownership notes receivable transactions contains various triggers relating to the performance of the underlying vacation ownership notes receivable. If a pool of securitized vacation ownership notes receivable fails to perform within the pool’s established parameters (default or delinquency thresholds vary by transaction), transaction provisions effectively redirect the monthly excess spread we would otherwise receive from that pool (attributable to the interests we retained) to accelerate the principal payments to investors (taking into account the subordination of the different tranches to the extent there are multiple tranches) until the performance trigger is cured. During the second quarter of 2019 , and as of June 30, 2019 , no securitized vacation ownership notes receivable pools were out of compliance with their respective established parameters. As of June 30, 2019 , we had 12 securitized vacation ownership notes receivable pools outstanding. As the contractual terms of the underlying securitized vacation ownership notes receivable determine the maturities of the non-recourse debt associated with them, actual maturities may occur earlier than shown below due to prepayments by the vacation ownership notes receivable obligors. The following table shows scheduled future principal payments for our securitized debt as of June 30, 2019 . Vacation Ownership Notes Receivable Securitizations Other Total ($ in millions) Payments Year 2019, remaining $ 128 $ 1 $ 129 2020 225 2 227 2021 202 2 204 2022 191 3 194 2023 185 3 188 Thereafter 856 9 865 $ 1,787 $ 20 $ 1,807 Warehouse Credit Facility The Warehouse Credit Facility, which has a borrowing capacity of $250 million , allows for the securitization of Legacy-MVW vacation ownership notes receivable on a revolving non-recourse basis through March 13, 2020. During the first quarter of 2019, we securitized vacation ownership notes receivable under our Warehouse Credit Facility. The carrying amount of the vacation ownership notes receivable securitized was $146 million . The advance rate was 85 percent , which resulted in gross proceeds of $124 million . Net proceeds were $123 million due to the funding of reserve accounts of $1 million . As of June 30, 2019 , there were no cash borrowings outstanding under our Warehouse Credit Facility. All outstanding amounts were repaid with proceeds from our vacation ownership notes receivable securitization transaction during the second quarter of 2019. |
DEBT
DEBT | 6 Months Ended |
Jun. 30, 2019 | |
Debt Disclosure [Abstract] | |
DEBT | 14. DEBT The following table provides detail on our debt balances, net of unamortized debt discount and issuance costs. ($ in millions) At June 30, 2019 At December 31, 2018 Senior Notes Exchange Notes $ 89 $ 89 Unamortized debt issuance costs (1 ) (1 ) 88 88 Senior Unsecured Notes 750 750 Unamortized debt issuance costs (8 ) (9 ) 742 741 IAC Notes 141 141 Corporate Credit Facility Term Loan 895 900 Unamortized debt discount and issuance costs (11 ) (12 ) 884 888 Revolving Corporate Credit Facility 80 — Unamortized debt issuance costs (1) (4 ) — 76 — Convertible notes, gross 230 230 Unamortized debt discount and issuance costs (27 ) (31 ) 203 199 Non-Interest bearing note payable — 31 Unamortized debt discount — (1 ) — 30 Finance leases 23 17 $ 2,157 $ 2,104 _________________________ (1) Excludes $4 million of unamortized debt issuance costs as of December 31, 2018, as no cash borrowings were outstanding on the Revolving Corporate Credit Facility at that time. The following table shows scheduled future principal payments for our debt, excluding finance leases, as of June 30, 2019 . Payments Year ($ in millions) Remaining 2019 2020 2021 2022 2023 Thereafter Total Exchange Notes $ — $ — $ — $ — $ 89 $ — $ 89 Senior Unsecured Notes — — — — — 750 750 IAC Notes — — — — 141 — 141 Term Loan 4 9 9 9 9 855 895 Revolving Corporate Credit Facility — — — — 80 — 80 Convertible Notes — — — 230 — — 230 $ 4 $ 9 $ 9 $ 239 $ 319 $ 1,605 $ 2,185 Senior Notes Our Senior Notes include the following: $750 million aggregate principal amount of 6.500% senior unsecured notes due 2026 issued in the third quarter of 2018 (the “Senior Unsecured Notes”); $350 million in aggregate principal amount of outstanding 5.625% Senior Unsecured Notes due 2023 assumed in connection with the ILG Acquisition (the “IAC Notes”); and 5.625% Senior Unsecured Notes due 2023 offered in exchange for the IAC Notes during the third quarter of 2018 (the “Exchange Notes”). Corporate Credit Facility Our corporate credit facility (“Corporate Credit Facility”), which provides support for our business, including ongoing liquidity and letters of credit, includes a $900 million term loan facility (the “Term Loan”) which matures on August 31, 2025, and a Revolving Corporate Credit Facility with a borrowing capacity of $600 million that terminates on August 31, 2023. The Term Loan bears interest at LIBOR plus 2.25 percent . Borrowings under the Revolving Corporate Credit Facility generally bear interest at a floating rate plus an applicable margin that varies from 0.50 percent to 2.75 percent depending on the type of loan and our credit rating. In addition, we pay a commitment fee on the unused availability under the Revolving Corporate Credit Facility at a rate that varies from 20 to 40 basis points per annum, also depending on our credit rating. The Revolving Corporate Credit Facility also includes a letter of credit sub-facility of $75 million . As of June 30, 2019 , we were in compliance with the applicable financial and operating covenants under the Corporate Credit Facility. We entered into $250 million of interest rate swaps under which we pay a fixed rate of 2.9625 percent and receive a floating interest rate through September 2023 and $200 million of interest rate swaps under which we pay a fixed rate of 2.2480 percent and receive a floating interest rate through April 2024, in each case to hedge a portion of our interest rate risk on the Term Loan. We also entered into a $100 million interest rate collar with a cap strike rate of 2.5000% and a floor strike rate of 1.8810% through April 2024 to further hedge our interest rate risk on the Term Loan. Both the interest rate swaps and the interest rate collar have been designated and qualify as cash flow hedges of interest rate risk and recorded in Other liabilities on our Balance Sheet as of June 30, 2019 . We characterize payments we make in connection with these derivative instruments as interest expense and a reclassification of accumulated other comprehensive income for presentation purposes. The following table reflects the activity in accumulated other comprehensive loss related to our derivative instruments during the first half of 2019: ($ in millions) Derivative Instrument Adjustments Balance at December 31, 2018 $ (6 ) Other comprehensive loss before reclassifications (3 ) Reclassification to Income Statement — Net other comprehensive loss (3 ) Balance at March 31, 2019 (9 ) Other comprehensive loss before reclassifications (13 ) Reclassification to Income Statement — Net other comprehensive loss (13 ) Balance at June 30, 2019 $ (22 ) Convertible Notes Our $230 million of 1.50% Convertible Senior Notes due 2022 (the “Convertible Notes”) were convertible at an initial rate of 6.7482 shares of common stock per $1,000 principal amount of Convertible Notes (equivalent to an initial conversion price of approximately $148.19 per share of our common stock). The conversion rate is subject to adjustment for certain events as described in the indenture governing the notes and was subject to adjustment during the second quarter of 2019 to 6.7825 shares of common stock per $1,000 principal amount of Convertible Notes (equivalent to a conversion price of approximately $147.44 per share of our common stock) when we declared a quarterly dividend of $0.45 per share, which was greater than the quarterly dividend at the time of the issuance of the Convertible Notes. Upon conversion, we will pay or deliver, as the case may be, cash, shares of our common stock or a combination of cash and shares of our common stock, at our election. It is our intent to settle conversions of the Convertible Notes through combination settlement, which contemplates repayment in cash of the principal amount and repayment in shares of our common stock of any excess of the conversion value over the principal amount. As of June 30, 2019 , the effective interest rate was 4.7% and the remaining discount amortization period was 3.2 years . The following table shows the net carrying value of the Convertible Notes. ($ in millions) At June 30, 2019 At December 31, 2018 Liability component Principal amount $ 230 $ 230 Unamortized debt discount (23 ) (26 ) Unamortized debt issuance costs (4 ) (5 ) Net carrying amount of the liability component $ 203 $ 199 Carrying amount of equity component, net of issuance costs $ 33 $ 33 The following table shows interest expense information related to the Convertible Notes. Three Months Ended Six Months Ended ($ in millions) June 30, 2019 June 30, 2018 June 30, 2019 June 30, 2018 Contractual interest expense $ — $ 1 $ 1 $ 2 Amortization of debt discount 1 2 3 3 Amortization of debt issuance costs 1 — 1 — $ 2 $ 3 $ 5 $ 5 Convertible Note Hedges and Warrants In connection with the offering of the Convertible Notes, we concurrently entered into the following privately-negotiated separate transactions: convertible note hedge transactions with respect to our common stock (“Convertible Note Hedges”), covering a total of approximately 1.55 million shares of our common stock, and warrant transactions (“Warrants”), whereby we sold to the counterparties to the Convertible Note Hedges warrants to acquire approximately 1.55 million shares of our common stock at an initial strike price of $176.68 per share. The strike price was subject to adjustment during the second quarter of 2019 to $175.79 per share when we declared a quarterly dividend of $0.45 per share. As of June 30, 2019 , no Convertible Note Hedges or Warrants have been exercised. Finance Leases See Footnote 12 “ Leases ” for information on our finance leases accounted for under ASC 842. Restrictions Amounts borrowed under the Corporate Credit Facility, as well as obligations with respect to letters of credit issued pursuant to that facility, are secured by a perfected first priority security interest in substantially all of the assets of the borrowers under, and guarantors of, that facility (which include MVWC and certain of our direct and indirect, existing and future, domestic subsidiaries, excluding certain bankruptcy remote special purpose subsidiaries), in each case including inventory, subject to certain exceptions. The IAC Notes are guaranteed by MVWC, ILG and certain other subsidiaries whose voting securities are wholly owned directly or indirectly by ILG. The Senior Unsecured Notes are guaranteed by MVWC and certain of its subsidiaries whose voting securities are wholly owned directly or indirectly by MVWC. The Exchange Notes are guaranteed by MVWC and its domestic subsidiaries that guarantee the Corporate Credit Facility. See Footnote 19 “ Supplemental Guarantor Information |
SHAREHOLDERS' EQUITY
SHAREHOLDERS' EQUITY | 6 Months Ended |
Jun. 30, 2019 | |
Equity [Abstract] | |
SHAREHOLDERS' EQUITY | 15. SHAREHOLDERS’ EQUITY Marriott Vacations Worldwide has 100,000,000 authorized shares of common stock, par value of $ 0.01 per share. At June 30, 2019 , there were 57,862,278 shares of Marriott Vacations Worldwide common stock issued, of which 43,882,669 shares were outstanding and 13,979,609 shares were held as treasury stock. At December 31, 2018 , there were 57,626,462 shares of Marriott Vacations Worldwide common stock issued, of which 45,992,731 shares were outstanding and 11,633,731 shares were held as treasury stock. Marriott Vacations Worldwide has 2,000,000 authorized shares of preferred stock, par value of $ 0.01 per share, none of which were issued or outstanding as of June 30, 2019 or December 31, 2018 . Share Repurchase Program The following table summarizes share repurchase activity under our current share repurchase program: ($ in millions, except per share amounts) Number of Shares Repurchased Cost of Shares Repurchased Average Price Paid per Share As of December 31, 2018 11,687,774 $ 793 $ 67.85 For the first half of 2019 2,358,808 215 91.12 As of June 30, 2019 14,046,582 $ 1,008 $ 71.76 As of June 30, 2019 , our Board of Directors had authorized the repurchase of an aggregate of up to 14.9 million shares of our common stock under the share repurchase program since the initiation of the program in October 2013. Subsequent to the end of the second quarter of 2019, our Board of Directors authorized the extension of the duration of our existing share repurchase program to December 31, 2020, as well as the repurchase of up to 4.5 million additional shares of our common stock. Share repurchases may be made through open market purchases, privately negotiated transactions, block transactions, tender offers, accelerated share repurchase agreements or otherwise. The specific timing, amount and other terms of the repurchases will depend on market conditions, corporate and regulatory requirements and other factors. Acquired shares of our common stock are held as treasury shares carried at cost in our Financial Statements. In connection with the repurchase program, we are authorized to adopt one or more trading plans pursuant to the provisions of Rule 10b5-1 under the Securities Exchange Act of 1934, as amended. As of June 30, 2019 , 0.6 million shares remained available for repurchase under the authorization approved by our Board of Directors. The authorization for the share repurchase program may be suspended, terminated, increased or decreased by our Board of Directors at any time without prior notice. Dividends We declared cash dividends to holders of common stock during the first half of 2019 as follows: Declaration Date Shareholder Record Date Distribution Date Dividend per Share February 15, 2019 February 28, 2019 March 14, 2019 $0.45 May 9, 2019 May 23, 2019 June 6, 2019 $0.45 Any future dividend payments will be subject to Board approval, and there can be no assurance that we will pay dividends in the future. Noncontrolling Interests Property Owners’ Associations As part of the ILG Acquisition we established a noncontrolling interest in property owners’ associations that Legacy-ILG consolidates under the voting interest model, which represents the portion of the property owners’ associations related to individual or third-party VOI owners. As of June 30, 2019 , this noncontrolling interest amounts to $10 million and is included on our Balance Sheet as a component of equity. |
SHARE-BASED COMPENSATION
SHARE-BASED COMPENSATION | 6 Months Ended |
Jun. 30, 2019 | |
Share-based Payment Arrangement [Abstract] | |
SHARE-BASED COMPENSATION | 16. SHARE-BASED COMPENSATION We maintain the Marriott Vacations Worldwide Corporation Stock and Cash Incentive Plan (the “MVW Stock Plan”) for the benefit of our officers, directors and employees. Under the MVW Stock Plan, we are authorized to award: (1) restricted stock units (“RSUs”) of our common stock, (2) SARs relating to our common stock and (3) stock options to purchase our common stock. A total of 6 million shares are authorized for issuance pursuant to grants under the MVW Stock Plan. As of June 30, 2019 , 1 million shares were available for grants under the MVW Stock Plan. As part of the ILG Acquisition, we assumed the Interval Leisure Group, Inc. 2013 Stock and Incentive Plan (the “ILG Stock Plan”) and equity based awards outstanding under the ILG Stock Plan. As of June 30, 2019 , 1 million shares were available for grants under the ILG Stock Plan to Legacy-ILG employees. The following table details our share-based compensation expense related to award grants to our officers, directors and employees: Three Months Ended Six Months Ended ($ in millions) June 30, 2019 June 30, 2018 June 30, 2019 June 30, 2018 Service-based RSUs $ 6 $ 4 $ 9 $ 6 Performance-based RSUs 2 2 3 3 ILG Acquisition Converted RSUs 2 — 6 — 10 6 18 9 SARs 1 — 2 1 Stock options — — — — $ 11 $ 6 $ 20 $ 10 The following table details our deferred compensation costs related to unvested awards: ($ in millions) At June 30, 2019 At December 31, 2018 Service-based RSUs $ 25 $ 16 Performance-based RSUs 16 7 ILG Acquisition Converted RSUs 7 15 48 38 SARs 3 1 Stock options — — $ 51 $ 39 Restricted Stock Units We granted 189,300 service-based RSUs, which are subject to time-based vesting conditions, with a weighted average grant-date fair value of $96.25 , to our employees and non-employee directors during the first half of 2019 . During the first half of 2019 , we also granted performance-based RSUs, which are subject to performance-based vesting conditions, to members of management. A maximum of 287,876 RSUs may be earned under the performance-based RSU awards granted during the first half of 2019 . Stock Appreciation Rights We granted 111,111 SARs, with a weighted average grant-date fair value of $28.89 and a weighted average exercise price of $100.52 , to members of management during the first half of 2019 . We use the Black-Scholes model to estimate the fair value of the SARs granted. The expected stock price volatility was calculated based on the average of the historical and implied volatility of our stock price. The average expected life was calculated using the simplified method, as we have insufficient historical information to provide a basis for estimating average expected life. The risk-free interest rate was calculated based on U.S. Treasury zero-coupon issues with a remaining term equal to the expected life assumed at the date of grant. The dividend yield assumption listed below is based on the expectation of future payouts. The following table outlines the assumptions used to estimate the fair value of grants during the first half of 2019 : Expected volatility 31.10% Dividend yield 1.76% Risk-free rate 2.59% Expected term (in years) 6.25 Legacy-ILG Deferred Compensation Plan Certain deferred share units (“DSUs”) of ILG common stock were outstanding on the Acquisition Date under the Interval Leisure Group, Inc. Deferred Compensation Plan for Non-Employee Directors. On the Acquisition Date, these DSUs were converted to equity-based awards with respect to MVW’s common stock and cash-based awards, resulting in 12,265 DSUs (“ILG DSUs”) and $1 million of cash-based awards. The ILG DSUs had a weighted average fair value of $114.31 on the Acquisition Date. The services associated with the ILG DSUs were completed as of the Acquisition Date, resulting in no deferred compensation costs. The ILG DSUs and related cash-based awards were paid in full during the first quarter of 2019 and there is no remaining obligation as of June 30, 2019 . |
VARIABLE INTEREST ENTITIES
VARIABLE INTEREST ENTITIES | 6 Months Ended |
Jun. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
VARIABLE INTEREST ENTITIES | 17. VARIABLE INTEREST ENTITIES Variable Interest Entities Related to Our Vacation Ownership Notes Receivable Securitizations We periodically securitize, without recourse, through bankruptcy remote special purpose entities, notes receivable originated in connection with the sale of vacation ownership products. These vacation ownership notes receivable securitizations provide funding for us and transfer the economic risks and substantially all the benefits of the consumer loans we originate to third parties. In a vacation ownership notes receivable securitization, various classes of debt securities issued by a special purpose entity are generally collateralized by a single tranche of transferred assets, which consist of vacation ownership notes receivable. With each vacation ownership notes receivable securitization, we may retain a portion of the securities, subordinated tranches, interest-only strips, subordinated interests in accrued interest and fees on the securitized vacation ownership notes receivable or, in some cases, overcollateralization and cash reserve accounts. We created these bankruptcy remote special purpose entities to serve as a mechanism for holding assets and related liabilities, and the entities have no equity investment at risk, making them variable interest entities. We continue to service the vacation ownership notes receivable, transfer all proceeds collected to these special purpose entities, and retain rights to receive benefits that are potentially significant to the entities. Accordingly, we concluded that we are the entities’ primary beneficiary and, therefore, consolidate them. There is no noncontrolling interest balance related to these entities and the creditors of these entities do not have general recourse to us. As part of the ILG Acquisition, we acquired the variable interests in the entities associated with ILG’s outstanding vacation ownership notes receivable securitization transactions. As these vacation ownership notes receivable securitizations are similar in nature to the Legacy-MVW vacation ownership notes receivable securitizations they have been aggregated for disclosure purposes. The following table shows consolidated assets, which are collateral for the obligations of these variable interest entities, and consolidated liabilities included on our Balance Sheet at June 30, 2019 : ($ in millions) Vacation Ownership Notes Receivable Securitizations Warehouse Credit Facility Total Consolidated Assets Vacation ownership notes receivable, net of reserves $ 1,681 $ — $ 1,681 Interest receivable 12 — 12 Restricted cash (1) 80 — 80 Total $ 1,773 $ — $ 1,773 Consolidated Liabilities Interest payable $ 3 $ — $ 3 Debt 1,787 — 1,787 Total $ 1,790 $ — $ 1,790 _________________________ (1) Includes $6 million of the proceeds from the securitization transaction completed during the second quarter of 2019, which were released when the remaining vacation ownership notes receivable were purchased by the 2019-1 LLC subsequent to the end of the second quarter. Refer to Footnote 13 “ Securitized Debt ” for a discussion of the terms of this securitization transaction and the purchase of additional vacation ownership notes receivable by the 2019-1 LLC subsequent to June 30, 2019. The following table shows the interest income and expense recognized as a result of our involvement with these variable interest entities during the second quarter of 2019 : ($ in millions) Vacation Ownership Notes Receivable Securitizations Warehouse Credit Facility Total Interest income $ 55 $ 4 $ 59 Interest expense to investors $ 13 $ 1 $ 14 Debt issuance cost amortization $ 1 $ 1 $ 2 Administrative expenses $ 1 $ — $ 1 The following table shows the interest income and expense recognized as a result of our involvement with these variable interest entities during the first half of 2019 : ($ in millions) Vacation Ownership Notes Receivable Securitizations Warehouse Credit Facility Total Interest income $ 107 $ 11 $ 118 Interest expense to investors $ 26 $ 3 $ 29 Debt issuance cost amortization $ 2 $ 1 $ 3 Administrative expenses $ 1 $ — $ 1 The following table shows cash flows between us and the vacation ownership notes receivable securitization variable interest entities: Six Months Ended ($ in millions) June 30, 2019 June 30, 2018 Cash Inflows Net proceeds from vacation ownership notes receivable securitizations $ 445 $ 419 Principal receipts 237 127 Interest receipts 101 52 Reserve release (1) 99 1 Total 882 599 Cash Outflows Principal to investors (233 ) (117 ) Voluntary repurchases of defaulted vacation ownership notes receivable (23 ) (15 ) Voluntary clean-up call — (22 ) Interest to investors (22 ) (10 ) Funding of restricted cash (2) (3) (93 ) (110 ) Total (371 ) (274 ) Net Cash Flows $ 511 $ 325 _________________________ (1) Includes the release of $84 million related to the securitization transaction completed during the second quarter of 2019, which was released as the remaining vacation ownership notes receivable were purchased by the 2019-1 LLC. Refer to Footnote 13 “ Securitized Debt ” for a discussion of the terms of this securitization transaction and the purchase of additional vacation ownership notes receivable by the 2019-1 LLC subsequent to June 30, 2019. (2) Includes $90 million of the proceeds from the securitization transaction completed during the second quarter of 2019, of which $84 million was released during the second quarter of 2019, as a portion of the remaining vacation ownership notes receivable were purchased by the 2019-1 LLC. The remaining $6 million was released when the remaining vacation ownership notes receivable were purchased by the 2019-1 LLC subsequent to the end of the second quarter of 2019. (3) Includes $106 million of the proceeds from the securitization transaction completed during the second quarter of 2018, which were released when the remaining vacation ownership notes receivable were purchased by the 2018-1 Trust during the third quarter of 2018. Under the terms of our vacation ownership notes receivable securitizations, we have the right to substitute loans for, or repurchase, defaulted loans at our option, subject to certain limitations. Our maximum exposure to loss relating to the special purpose entities that purchase, sell and own these vacation ownership notes receivable is the overcollateralization amount (the difference between the loan collateral balance and the balance on the outstanding vacation ownership notes receivable), plus cash reserves and any residual interest in future cash flows from collateral. The following table shows cash flows between us and the Warehouse Credit Facility variable interest entity: Six Months Ended ($ in millions) June 30, 2019 June 30, 2018 Cash Inflows Proceeds from vacation ownership notes receivable securitizations $ 124 $ — Principal receipts 12 — Interest receipts 12 — Reserve release 2 — Total 150 — Cash Outflows Principal to investors (12 ) — Repayment of Warehouse Credit Facility (228 ) — Interest to investors (4 ) (1 ) Funding of restricted cash (1 ) — Total (245 ) (1 ) Net Cash Flows $ (95 ) $ (1 ) Other Variable Interest Entities We have a commitment to purchase an operating property located in San Francisco, California, that we currently manage as Marriott Vacation Club Pulse, San Francisco. Refer to Footnote 11 “ Contingencies and Commitments ” for additional information on the commitment. We are required to purchase the operating property from the third party developer unless the developer has sold the property to another party. The operating property is held by a variable interest entity for which we are not the primary beneficiary as we cannot prevent the variable interest entity from selling the operating property at a higher price. Accordingly, we have not consolidated the variable interest entity. As of June 30, 2019 , our Balance Sheet reflected $14 million in Property and equipment related to a finance lease and leasehold improvements, $1 million in Accrued liabilities and $9 million in Debt related to the finance lease liability for ancillary and operations space we lease from the variable interest entity. In addition, a note receivable of less than $1 million is included in the Accounts receivable line. We believe that our maximum exposure to loss as a result of our involvement with this variable interest entity is $5 million as of June 30, 2019 . We have a commitment to purchase an operating property located in New York, New York, that we currently manage as Marriott Vacation Club Pulse, New York City. Refer to Footnote 11 “ Contingencies and Commitments ” for additional information on the commitment. We are required to purchase the completed property from the third party developer unless the developer has sold the property to another party. The property is held by a variable interest entity for which we are not the primary beneficiary as we cannot prevent the variable interest entity from selling the property at a higher price. Accordingly, we have not consolidated the variable interest entity. As of June 30, 2019 , our Balance Sheet reflected $8 million in Property and equipment related to a finance lease and leasehold improvements, $1 million in Accrued liabilities and $7 million in Debt related to the finance lease liability for ancillary and operations space we lease from the variable interest entity. In addition, a note receivable of less than $1 million is included in the Accounts receivable line on the Balance Sheet as of June 30, 2019 . We believe that our maximum exposure to loss as a result of our involvement with this variable interest entity is less than $1 million as of June 30, 2019 . Deferred Compensation Plan We consolidate the liabilities of the Marriott Vacations Worldwide Deferred Compensation Plan and the related assets, which consist of the COLI policies held in the rabbi trust. The rabbi trust is considered a variable interest entity. We are considered the primary beneficiary of the rabbi trust because we direct the activities of the trust and are the beneficiary of the trust. At June 30, 2019 , the value of the assets held in the rabbi trust was $34 million , which is included in the Other line within assets on our Balance Sheets. |
BUSINESS SEGMENTS
BUSINESS SEGMENTS | 6 Months Ended |
Jun. 30, 2019 | |
Segment Reporting [Abstract] | |
BUSINESS SEGMENTS | 18. BUSINESS SEGMENTS We define our reportable segments based on the way in which the chief operating decision maker (“CODM”), currently our chief executive officer, manages the operations of the company for purposes of allocating resources and assessing performance. We operate in two operating and reportable business segments: • Vacation Ownership includes a diverse portfolio of resorts that includes seven vacation ownership brands licensed under exclusive, long-term relationships with Marriott International and Hyatt Hotels Corporation. We are the exclusive worldwide developer, marketer, seller and manager of vacation ownership and related products under the Marriott Vacation Club, Grand Residences by Marriott, Sheraton, Westin and Hyatt Residence Club brands, as well as under Marriott Vacation Club Pulse, an extension to the Marriott Vacation Club brand. We are also the exclusive worldwide developer, marketer and seller of vacation ownership and related products under The Ritz-Carlton Destination Club brand, we have the non-exclusive right to develop, market and sell whole ownership residential products under The Ritz-Carlton Residences brand and have a license to use the St. Regis brand for specified fractional ownership resorts. Our Vacation Ownership segment generates most of its revenues from four primary sources: selling vacation ownership products; managing vacation ownership resorts, clubs and owners’ associations; financing consumer purchases of vacation ownership products; and renting vacation ownership inventory. • Exchange & Third-Party Management, includes exchange networks and membership programs, as well as management of resorts and lodging properties. We provide these services through a variety of brands including Interval International, Trading Places International, Vacation Resorts International, Aqua-Aston and Great Destinations. Exchange & Third-Party Management revenue generally is fee-based and derived from membership, exchange and rental transactions, property and association management, and other related products and services. Our CODM evaluates the performance of our segments based primarily on the results of the segment without allocating corporate expenses or income taxes. We do not allocate corporate interest expense or indirect general and administrative expenses to our segments. We include interest income specific to segment activities within the appropriate segment. We allocate depreciation, other gains and losses, equity in earnings or losses from our joint ventures and noncontrolling interest to each of our segments as appropriate. Corporate and other represents that portion of our results that are not allocable to our segments, including those relating to property owners’ associations consolidated under the voting interest model, as our CODM does not use this information to make operating segment resource allocations. Prior year segment information has been reclassified to conform to the current reportable segment presentation. Our CODM uses Adjusted EBITDA to evaluate the profitability of our operating segments, and the components of net income attributable to common shareholders excluded from Adjusted EBITDA are not separately evaluated. Adjusted EBITDA is defined as net income attributable to common shareholders, before interest expense (excluding consumer financing interest expense), income taxes, depreciation and amortization, excluding share-based compensation expense and adjusted for certain items that affect the comparability or our operating performance. Our reconciliation of the aggregate amount of Adjusted EBITDA for our reportable segments to consolidated net income attributable to common shareholders is presented below. Revenues Three Months Ended Six Months Ended ($ in millions) June 30, 2019 June 30, 2018 June 30, 2019 June 30, 2018 Vacation Ownership $ 951 $ 595 $ 1,882 $ 1,166 Exchange & Third-Party Management 115 — 239 — Total segment revenues 1,066 595 2,121 1,166 Corporate and other 2 — 7 — $ 1,068 $ 595 $ 2,128 $ 1,166 Adjusted EBITDA and Reconciliation to Net Income Attributable to Common Shareholders Three Months Ended Six Months Ended ($ in millions) June 30, 2019 June 30, 2018 June 30, 2019 June 30, 2018 Adjusted EBITDA Vacation Ownership $ 208 $ 104 $ 379 $ 192 Adjusted EBITDA Exchange & Third-Party Management 58 — 124 — Reconciling items: Corporate and other (71 ) (28 ) (142 ) (53 ) Interest expense (35 ) (5 ) (69 ) (9 ) Tax provision (25 ) (6 ) (40 ) (17 ) Depreciation and amortization (36 ) (5 ) (73 ) (11 ) Share-based compensation expense (11 ) (6 ) (20 ) (10 ) Certain items (39 ) (43 ) (86 ) (45 ) Net income attributable to common shareholders $ 49 $ 11 $ 73 $ 47 Assets ($ in millions) At June 30, 2019 At December 31, 2018 Vacation Ownership $ 7,358 $ 7,275 Exchange & Third-Party Management 1,124 1,182 Total segment assets 8,482 8,457 Corporate and other 541 561 $ 9,023 $ 9,018 We conduct business globally, and our operations outside the United States represented approximately 13 percent and 12 percent of our revenues, excluding cost reimbursements, for the three months ended June 30, 2019 and June 30, 2018 , respectively, and 14 percent and 12 percent of our revenues, excluding cost reimbursements, for the six months ended June 30, 2019 and June 30, 2018 , respectively. |
SUPPLEMENTAL GUARANTOR INFORMAT
SUPPLEMENTAL GUARANTOR INFORMATION | 6 Months Ended |
Jun. 30, 2019 | |
Guarantees and Product Warranties [Abstract] | |
SUPPLEMENTAL GUARANTOR INFORMATION | 19. SUPPLEMENTAL GUARANTOR INFORMATION IAC Notes The IAC Notes are guaranteed by MVWC, ILG and certain other subsidiaries whose voting securities are wholly owned directly or indirectly by ILG (such subsidiaries collectively, the “IAC Notes Guarantors”). These guarantees are full and unconditional and joint and several. The guarantees of the IAC Notes Guarantors are subject to release in limited circumstances only upon the occurrence of certain customary conditions. The indenture governing the IAC Notes contains covenants that, among other things, limit the ability of Interval Acquisition Corp. (the “Issuer”) and the IAC Notes Guarantors to pay dividends to us or make distributions, loans or advances to us. The following tables present consolidating financial information as of June 30, 2019 and December 31, 2018 , and for the three and six months ended June 30, 2019 and June 30, 2018 for MVWC and ILG on a stand-alone basis, the Issuer on a stand-alone basis, the IAC Notes Guarantors, the combined non-guarantor subsidiaries of MVW and MVW on a consolidated basis. Condensed Consolidating Balance Sheet As of June 30, 2019 ($ in millions) MVWC Interval Acquisition Corp. IAC Notes Guarantors Non-Guarantor Subsidiaries Total Eliminations MVW Consolidated Cash and cash equivalents $ — $ 1 $ 27 $ 151 $ — $ 179 Restricted cash — — 52 285 — 337 Accounts receivable, net 67 2 115 147 (4 ) 327 Vacation ownership notes receivable, net — — 189 1,909 — 2,098 Inventory — — 449 439 — 888 Property and equipment — — 230 607 — 837 Goodwill 2,824 — — — — 2,824 Intangibles, net — — 1,034 41 — 1,075 Due from parent — — — 1,957 (1,957 ) — Investments in subsidiaries 2,520 1,942 1,828 — (6,290 ) — Other 35 27 245 219 (68 ) 458 Total assets $ 5,446 $ 1,972 $ 4,169 $ 5,755 $ (8,319 ) $ 9,023 Accounts payable $ 12 $ — $ 40 $ 105 $ 7 $ 164 Advance deposits — — 81 105 — 186 Accrued liabilities 5 — 170 274 (32 ) 417 Deferred revenue — — 145 215 (4 ) 356 Payroll and benefits liability 3 — 67 102 — 172 Deferred compensation liability — — 7 95 — 102 Securitized debt, net — — — 1,792 — 1,792 Debt, net 203 141 1 1,812 — 2,157 Due to subsidiary 1,957 — — — (1,957 ) — Other 2 — 38 24 — 64 Deferred taxes — — 179 164 — 343 MVW shareholders' equity 3,264 1,831 3,445 1,057 (6,333 ) 3,264 Noncontrolling interests — — (4 ) 10 — 6 Total liabilities and equity $ 5,446 $ 1,972 $ 4,169 $ 5,755 $ (8,319 ) $ 9,023 As of December 31, 2018 (1) ($ in millions) MVWC Interval Acquisition Corp. IAC Notes Guarantors Non-Guarantor Subsidiaries Total Eliminations MVW Consolidated Cash and cash equivalents $ 1 $ 11 $ 28 $ 191 $ — $ 231 Restricted cash — — 83 300 — 383 Accounts receivable, net 31 2 107 184 — 324 Vacation ownership notes receivable, net — — 176 1,863 — 2,039 Inventory — — 440 423 — 863 Property and equipment — — 272 679 — 951 Goodwill 2,828 — — — — 2,828 Intangibles, net — — 1,065 42 — 1,107 Due from parent — — — 1,834 (1,834 ) — Investments in subsidiaries 2,681 1,975 1,875 — (6,531 ) — Other 27 28 140 172 (75 ) 292 Total assets $ 5,568 $ 2,016 $ 4,186 $ 5,688 $ (8,440 ) $ 9,018 Accounts payable $ 50 $ — $ 72 $ 131 $ — $ 253 Advance deposits — — 81 90 — 171 Accrued liabilities 7 — 79 295 (24 ) 357 Deferred revenue — — 117 206 (4 ) 319 Payroll and benefits liability 15 — 77 119 — 211 Deferred compensation liability — — 7 86 — 93 Securitized debt, net — — — 1,714 — 1,714 Debt, net 199 141 1 1,763 — 2,104 Due to subsidiary 1,834 — — — (1,834 ) — Other 2 — 1 9 — 12 Deferred taxes — — 155 159 4 318 MVW shareholders' equity 3,461 1,875 3,599 1,108 (6,582 ) 3,461 Noncontrolling interests — — (3 ) 8 — 5 Total liabilities and equity $ 5,568 $ 2,016 $ 4,186 $ 5,688 $ (8,440 ) $ 9,018 _________________________ (1) Amounts have been revised to correct certain immaterial prior period errors as reported in the 2018 Annual Report and have been reclassified to conform to the current year presentation. Condensed Consolidating Statement of Income Three Months Ended June 30, 2019 ($ in millions) MVWC Interval Acquisition Corp. IAC Notes Guarantors Non-Guarantor Subsidiaries Total Eliminations MVW Consolidated Revenues $ — $ — $ 398 $ 671 $ (1 ) $ 1,068 Expenses (6 ) — (346 ) (574 ) 1 (925 ) Gains (losses) and other income (expense), net — — 2 — — 2 Interest expense (2 ) (2 ) (3 ) (28 ) — (35 ) ILG acquisition-related costs — — (14 ) (22 ) — (36 ) Other — — — — — — Equity in earnings from unconsolidated entities — — — — — — Equity in net income of subsidiaries 54 28 27 — (109 ) — Provision for income taxes 3 1 (12 ) (16 ) (1 ) (25 ) Net income 49 27 52 31 (110 ) 49 Net income attributable to noncontrolling interests — — — — — — Net income attributable to common shareholders $ 49 $ 27 $ 52 $ 31 $ (110 ) $ 49 Three Months Ended June 30, 2018 ($ in millions) MVWC Interval Acquisition Corp. IAC Notes Guarantors Non-Guarantor Subsidiaries Total Eliminations MVW Consolidated Revenues $ — $ — $ — $ 595 $ — $ 595 Expenses (2 ) — — (544 ) — (546 ) Gains (losses) and other income (expense), net — — — (7 ) — (7 ) Interest expense (3 ) — — (2 ) — (5 ) ILG acquisition-related costs — — — (19 ) — (19 ) Other — — — (1 ) — (1 ) Provision for income taxes 1 — — (7 ) — (6 ) Equity in earnings from unconsolidated entities — — — — — — Equity in net income of subsidiaries 15 — — — (15 ) — Net income 11 — — 15 (15 ) 11 Net income attributable to noncontrolling interests — — — — — — Net income attributable to common shareholders $ 11 $ — $ — $ 15 $ (15 ) $ 11 Six Months Ended June 30, 2019 ($ in millions) MVWC Interval Acquisition Corp. IAC Notes Guarantors Non-Guarantor Subsidiaries Total Eliminations MVW Consolidated Revenues $ — $ — $ 797 $ 1,340 $ (9 ) $ 2,128 Expenses (9 ) — (715 ) (1,179 ) 9 (1,894 ) Gains (losses) and other income (expense), net — — — 10 — 10 Interest expense (5 ) (3 ) (3 ) (58 ) — (69 ) ILG acquisition-related costs — — (14 ) (48 ) — (62 ) Other — — — — — — Provision for income taxes 4 1 (22 ) (23 ) — (40 ) Equity in earnings from unconsolidated entities — — — — — — Equity in net income of subsidiaries 83 64 62 — (209 ) — Net income 73 62 105 42 (209 ) 73 Net income attributable to noncontrolling interests — — — — — — Net income attributable to common shareholders $ 73 $ 62 $ 105 $ 42 $ (209 ) $ 73 Six Months Ended June 30, 2018 ($ in millions) MVWC Interval Acquisition Corp. IAC Notes Guarantors Non-Guarantor Subsidiaries Total Eliminations MVW Consolidated Revenues $ — $ — $ — $ 1,166 $ — $ 1,166 Expenses (4 ) — — (1,060 ) — (1,064 ) Gains (losses) and other income (expense), net — — — (6 ) — (6 ) Interest expense (5 ) — — (4 ) — (9 ) ILG acquisition-related costs — — — (20 ) — (20 ) Other — — — (3 ) — (3 ) Provision for income taxes 2 — — (19 ) — (17 ) Equity in earnings from unconsolidated entities — — — — — — Equity in net income of subsidiaries 54 — — — (54 ) — Net income 47 — — 54 (54 ) 47 Net income attributable to noncontrolling interests — — — — — — Net income attributable to common shareholders $ 47 $ — $ — $ 54 $ (54 ) $ 47 Condensed Consolidating Statement of Cash Flows Six Months Ended June 30, 2019 ($ in millions) MVWC Interval Acquisition Corp. IAC Notes Guarantors Non-Guarantor Subsidiaries Total Eliminations MVW Consolidated Net cash, cash equivalents and restricted cash provided by (used in) operating activities $ (71 ) $ (2 ) $ 106 $ 315 $ (292 ) $ 56 Net cash, cash equivalents and restricted cash (used in) provided by investing activities (4 ) — 22 (3 ) — 15 Net cash, cash equivalents and restricted cash (used in) provided by financing activities 74 (8 ) (160 ) (368 ) 292 (170 ) Effect of changes in exchange rates on cash, cash equivalents and restricted cash — — — 1 — 1 Cash, cash equivalents and restricted cash, beginning of period 1 11 111 491 — 614 Cash, cash equivalents and restricted cash, end of period $ — $ 1 $ 79 $ 436 $ — $ 516 Six Months Ended June 30, 2018 ($ in millions) MVWC Interval Acquisition Corp. IAC Notes Guarantors Non-Guarantor Subsidiaries Total Eliminations MVW Consolidated Net cash, cash equivalents and restricted cash provided by (used in) operating activities $ (45 ) $ — $ — $ 101 $ 2 $ 58 Net cash, cash equivalents and restricted cash (used in) provided by investing activities (12 ) — — (7 ) — (19 ) Net cash, cash equivalents and restricted cash (used in) provided by financing activities 57 — — 132 (2 ) 187 Effect of changes in exchange rates on cash, cash equivalents and restricted cash — — — 1 — 1 Cash, cash equivalents and restricted cash, beginning of period — — — 491 — 491 Cash, cash equivalents and restricted cash, end of period $ — $ — $ — $ 718 $ — $ 718 Senior Unsecured Notes and Exchange Notes The Senior Unsecured Notes and Exchanges Notes (collectively referred to as the “Senior MVW Notes”) are guaranteed by MVWC, Marriott Ownership Resorts, Inc. (“MORI”), ILG and certain other subsidiaries whose voting securities are wholly owned directly or indirectly by MORI or ILG (such subsidiaries collectively, the “Senior Notes Guarantors”). These guarantees are full and unconditional and joint and several. The guarantees of the Senior Notes Guarantors are subject to release in limited circumstances only upon the occurrence of certain customary conditions. The following tables present consolidating financial information as of June 30, 2019 and December 31, 2018 , and for the three and six months ended June 30, 2019 and June 30, 2018 for MVWC on a stand-alone basis, each of MORI and ILG on a stand-alone basis (collectively, the “Issuers” and each individually, an “Issuer”), the Senior Notes Guarantors, the combined non-guarantor subsidiaries of MVW and MVW on a consolidated basis. Condensed Consolidating Balance Sheet As of June 30, 2019 MVWC Issuers Senior Notes Guarantors Non-Guarantor Subsidiaries Total Eliminations MVW Consolidated ($ in millions) MORI ILG Cash and cash equivalents $ — $ 44 $ — $ 29 $ 106 $ — $ 179 Restricted cash — 20 — 54 263 — 337 Accounts receivable, net 67 28 — 131 105 (4 ) 327 Vacation ownership notes receivable, net — 108 — 196 1,794 — 2,098 Inventory — 304 — 489 95 — 888 Property and equipment — 274 1 272 290 — 837 Goodwill 2,824 — — — — — 2,824 Intangibles, net — — — 1,034 41 — 1,075 Due from parent — 1,957 — — — (1,957 ) — Investments in subsidiaries 2,520 21 1,828 — — (4,369 ) — Other 35 53 — 359 79 (68 ) 458 Total assets $ 5,446 $ 2,809 $ 1,829 $ 2,564 $ 2,773 $ (6,398 ) $ 9,023 Accounts payable $ 12 $ 44 $ — $ 74 $ 26 $ 8 $ 164 Advance deposits — 76 — 90 20 — 186 Accrued liabilities 5 71 7 177 189 (32 ) 417 Deferred revenue — 4 — 239 117 (4 ) 356 Payroll and benefits liability 3 77 — 76 16 — 172 Deferred compensation liability — 86 — 15 1 — 102 Securitized debt, net — — — — 1,792 — 1,792 Debt, net 203 1,805 — 149 — — 2,157 Due to subsidiary 1,957 — — — — (1,957 ) — Other 2 22 — 38 2 — 64 Deferred taxes — 138 — 181 24 — 343 MVW shareholders' equity 3,264 486 1,822 1,529 576 (4,413 ) 3,264 Noncontrolling interests — — — (4 ) 10 — 6 Total liabilities and equity $ 5,446 $ 2,809 $ 1,829 $ 2,564 $ 2,773 $ (6,398 ) $ 9,023 As of December 31, 2018 (1) MVWC Issuers Senior Notes Guarantors Non-Guarantor Subsidiaries Total Eliminations MVW Consolidated ($ in millions) MORI ILG Cash and cash equivalents $ 1 $ 62 $ 2 $ 39 $ 127 $ — $ 231 Restricted cash — 19 — 122 242 — 383 Accounts receivable, net 31 20 — 169 104 — 324 Vacation ownership notes receivable, net — 121 — 183 1,735 — 2,039 Inventory — 212 — 475 176 — 863 Property and equipment — 439 1 308 203 — 951 Goodwill 2,828 — — — — — 2,828 Intangibles, net — — — 1,065 42 — 1,107 Due from parent — 1,834 — — — (1,834 ) — Investments in subsidiaries 2,681 93 1,875 — — (4,649 ) — Other 27 53 — 251 36 (75 ) 292 Total assets $ 5,568 $ 2,853 $ 1,878 $ 2,612 $ 2,665 $ (6,558 ) $ 9,018 Accounts payable $ 50 $ 13 $ — $ 165 $ 25 $ — $ 253 Advance deposits — 65 — 89 17 — 171 Accrued liabilities 7 96 7 121 150 (24 ) 357 Deferred revenue — 6 — 189 128 (4 ) 319 Payroll and benefits liability 15 96 — 84 16 — 211 Deferred compensation liability — 79 — 13 1 — 93 Securitized debt, net — — — — 1,714 — 1,714 Debt, net 199 1,726 — 179 — — 2,104 Due to subsidiary 1,834 — — — — (1,834 ) — Other 2 6 — 1 3 — 12 Deferred taxes — 133 — 157 24 4 318 MVW shareholders' equity 3,461 633 1,871 1,617 579 (4,700 ) 3,461 Noncontrolling interests — — — (3 ) 8 — 5 Total liabilities and equity $ 5,568 $ 2,853 $ 1,878 $ 2,612 $ 2,665 $ (6,558 ) $ 9,018 _________________________ (1) Amounts have been revised to correct certain immaterial prior period errors as reported in the 2018 Annual Report and have been reclassified to conform to the current year presentation. Condensed Consolidating Statement of Income Three Months Ended June 30, 2019 MVWC Issuers Senior Notes Guarantors Non-Guarantor Subsidiaries Total Eliminations MVW Consolidated ($ in millions) MORI ILG Revenues $ — $ 191 $ — $ 695 $ 183 $ (1 ) $ 1,068 Expenses (6 ) (200 ) — (583 ) (137 ) 1 (925 ) Gains (losses) and other income (expense), net — 2 — — — — 2 Interest expense (2 ) (24 ) — (5 ) (4 ) — (35 ) ILG acquisition-related costs — (22 ) — (14 ) — — (36 ) Other — — — — — — — Provision for income taxes 3 16 — (35 ) (9 ) — (25 ) Equity in earnings from unconsolidated entities — — — — — — — Equity in net income of subsidiaries 54 62 27 — — (143 ) — Net income 49 25 27 58 33 (143 ) 49 Net income attributable to noncontrolling interests — — — — — — — Net income attributable to common shareholders $ 49 $ 25 $ 27 $ 58 $ 33 $ (143 ) $ 49 Three Months Ended June 30, 2018 MVWC Issuers Senior Notes Guarantors Non-Guarantor Subsidiaries Total Eliminations MVW Consolidated ($ in millions) MORI ILG Revenues $ — $ 194 $ — $ 286 $ 115 $ — $ 595 Expenses (2 ) (189 ) — (257 ) (98 ) — (546 ) Gains (losses) and other income (expense), net — (7 ) — — — — (7 ) Interest expense (3 ) (1 ) — (1 ) — — (5 ) ILG acquisition-related costs — (19 ) — — — — (19 ) Other — (1 ) — — — — (1 ) Provision for income taxes 1 7 — (12 ) (2 ) — (6 ) Equity in earnings from unconsolidated entities — — — — — — — Equity in net income of subsidiaries 15 16 — — — (31 ) — Net income 11 — — 16 15 (31 ) 11 Net income attributable to noncontrolling interests — — — — — — — Net income attributable to common shareholders $ 11 $ — $ — $ 16 $ 15 $ (31 ) $ 11 Six Months Ended June 30, 2019 MVWC Issuers Senior Notes Guarantors Non-Guarantor Subsidiaries Total Eliminations MVW Consolidated ($ in millions) MORI ILG Revenues $ — $ 350 $ — $ 1,406 $ 381 $ (9 ) $ 2,128 Expenses (9 ) (392 ) — (1,214 ) (288 ) 9 (1,894 ) Gains (losses) and other income (expense), net — 11 — (1 ) — — 10 Interest expense (5 ) (54 ) — (6 ) (4 ) — (69 ) ILG acquisition-related costs — (48 ) — (14 ) — — (62 ) Other — — — — — — — Provision for income taxes 4 40 — (70 ) (14 ) — (40 ) Equity in earnings from unconsolidated entities — — — — — — — Equity in net income of subsidiaries 83 115 62 — — (260 ) — Net income 73 22 62 101 75 (260 ) 73 Net income attributable to noncontrolling interests — — — — — — — Net income attributable to common shareholders $ 73 $ 22 $ 62 $ 101 $ 75 $ (260 ) $ 73 Six Months Ended June 30, 2018 MVWC Issuers Senior Notes Guarantors Non-Guarantor Subsidiaries Total Eliminations MVW Consolidated ($ in millions) MORI ILG Revenues $ — $ 363 $ — $ 585 $ 218 $ — $ 1,166 Expenses (4 ) (362 ) — (510 ) (188 ) — (1,064 ) Gains (losses) and other income (expense), net — (6 ) — — — — (6 ) Interest expense (5 ) (2 ) — (2 ) — — (9 ) ILG acquisition-related costs — (20 ) — — — — (20 ) Other — (3 ) — — — — (3 ) Provision for income taxes 2 11 — (27 ) (3 ) — (17 ) Equity in earnings from unconsolidated entities — — — — — — — Equity in net income of subsidiaries 54 46 — — — (100 ) — Net income 47 27 — 46 27 (100 ) 47 Net income attributable to noncontrolling interests — — — — — — — Net income attributable to common shareholders $ 47 $ 27 $ — $ 46 $ 27 $ (100 ) $ 47 Condensed Consolidating Statement of Cash Flows Six Months Ended June 30, 2019 MVWC Issuers Senior Notes Guarantors Non-Guarantor Subsidiaries Total Eliminations MVW Consolidated ($ in millions) MORI ILG Net cash, cash equivalents and restricted cash provided by (used in) operating activities $ (71 ) $ (31 ) $ — $ 151 $ 19 $ (12 ) $ 56 Net cash, cash equivalents and restricted cash (used in) provided by investing activities (4 ) (14 ) — 26 7 — 15 Net cash, cash equivalents and restricted cash (used in) provided by financing activities 74 28 (2 ) (255 ) (27 ) 12 (170 ) Effect of changes in exchange rates on cash, cash equivalents and restricted cash — — — — 1 — 1 Cash, cash equivalents and restricted cash, beginning of period 1 81 2 161 369 — 614 Cash, cash equivalents and restricted cash, end of period $ — $ 64 $ — $ 83 $ 369 $ — $ 516 Six Months Ended June 30, 2018 MVWC Issuers Senior Notes Guarantors Non-Guarantor Subsidiaries Total Eliminations MVW Consolidated ($ in millions) MORI ILG Net cash, cash equivalents and restricted cash provided by (used in) operating activities $ (45 ) $ 111 $ — $ (2 ) $ (8 ) $ 2 $ 58 Net cash, cash equivalents and restricted cash (used in) provided by investing activities (12 ) (4 ) — — (3 ) — (19 ) Net cash, cash equivalents and restricted cash (used in) provided by financing activities 57 49 — (22 ) 105 (2 ) 187 Effect of changes in exchange rates on cash, cash equivalents and restricted cash — — — — 1 — 1 Cash, cash equivalents and restricted cash, beginning of period — 377 — 30 84 — 491 Cash, cash equivalents and restricted cash, end of period $ — $ 533 $ — $ 6 $ 179 $ — $ 718 |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 6 Months Ended |
Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
Derivative Instruments | We record derivatives at fair value. The designation of a derivative instrument as a hedge and its ability to meet the hedge accounting criteria determine how we reflect the change in fair value of the derivative instrument in our Financial Statements. A derivative qualifies for hedge accounting if we expect it to be highly effective in offsetting the underlying hedged exposure and we fulfill the hedge documentation requirements. We may designate a hedge as a cash flow hedge, fair value hedge, or a net investment in non-U.S. operations hedge based on the exposure we are hedging. For the effective portion of qualifying hedges, we record changes in fair value in other comprehensive income. We assess the effectiveness of our hedging instruments quarterly, recognize current period hedge ineffectiveness immediately in earnings, and discontinue hedge accounting for any hedge that we no longer consider to be highly effective. We recognize changes in fair value for derivatives not designated as hedges or those not qualifying for hedge accounting in current period earnings. We are exposed to market risk from changes in interest rates, currency exchange rates and debt prices. We manage our exposure to these risks by monitoring available financing alternatives, through pricing policies that may take into account currency exchange rates, and by entering into derivative arrangements. As a matter of policy, we only enter into transactions that we believe will be highly effective at offsetting the underlying risk, and we do not use derivatives for trading or speculative purposes. |
New Accounting Pronouncements | New Accounting Standards Accounting Standards Update 2017-12 – “ Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities ” (“ASU 2017-12”) In August 2017, the FASB issued ASU 2017-12, which amends and simplifies existing guidance in order to allow companies to better portray the economic effects of risk management activities in the financial statements and enhance the transparency and understandability of the results of hedging activities. ASU 2017-12 eliminates the requirement to separately measure and report hedge ineffectiveness and generally requires the entire change in the fair value of a hedging instrument to be presented in the same income statement line as the hedged item. The guidance also eases certain documentation and assessment requirements. This update is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years, with early adoption permitted. The adoption of ASU 2017-12 in the first quarter of 2019 did not have a material impact on our Financial Statements or disclosures. We record derivatives at fair value. The designation of a derivative instrument as a hedge and its ability to meet the hedge accounting criteria determine how we reflect the change in fair value of the derivative instrument in our Financial Statements. A derivative qualifies for hedge accounting if we expect it to be highly effective in offsetting the underlying hedged exposure and we fulfill the hedge documentation requirements. We may designate a hedge as a cash flow hedge, fair value hedge, or a net investment in non-U.S. operations hedge based on the exposure we are hedging. For the effective portion of qualifying hedges, we record changes in fair value in other comprehensive income. We assess the effectiveness of our hedging instruments quarterly, recognize current period hedge ineffectiveness immediately in earnings, and discontinue hedge accounting for any hedge that we no longer consider to be highly effective. We recognize changes in fair value for derivatives not designated as hedges or those not qualifying for hedge accounting in current period earnings. We are exposed to market risk from changes in interest rates, currency exchange rates and debt prices. We manage our exposure to these risks by monitoring available financing alternatives, through pricing policies that may take into account currency exchange rates, and by entering into derivative arrangements. As a matter of policy, we only enter into transactions that we believe will be highly effective at offsetting the underlying risk, and we do not use derivatives for trading or speculative purposes. Accounting Standards Update 2016-02 – “ Leases (Topic 842) ” (“ASU 2016-02”) In February 2016, the FASB issued ASU 2016-02 to increase transparency and comparability of information regarding an entity’s leasing activities by providing additional information to users of financial statements, which as amended, created Accounting Standards Codification 842, Leases (“ASC 842”). ASU 2016-02 requires a lessee to recognize most leases on its balance sheet by recording a liability for its lease obligation and an asset for its right to use the underlying asset as of the lease commencement date and recognizing expenses on the income statement in a similar manner to the current guidance in Accounting Standards Codification 840, Leases (“ASC 840”). Lessor accounting remains largely unchanged, other than certain targeted improvements intended to align lessor accounting with the lessee accounting model and with the updated revenue recognition guidance. Upon adoption of ASU 2016-02, as amended, leases will be classified as either finance or operating, with classification affecting the geography of expense recognition in the income statement. Additionally, enhanced quantitative and qualitative disclosures regarding leases are required. ASU 2016-02 is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years, with early adoption permitted. As permitted by the amended guidance, we elected to retain the original lease classification and historical accounting for existing or expired contracts of lessees and lessors so that we will not be required to reassess whether such contracts contain leases, the lease classification of any such leases or the initial direct costs of any such leases. We will continue to report comparative periods presented in the financial statements in the period of adoption under GAAP in effect as of such comparative period, resulting in a balance sheet presentation that is not comparable to the prior period in the first year of adoption. Additionally, with respect to our real estate leases, we elected an accounting policy by class of underlying asset to combine lease and non-lease components. We also elected to apply an exemption for short-term leases whereby leases with an initial term of a year or less are not recorded on the balance sheet. We did not utilize the practical expedient which allows the use of hindsight by lessees and lessors in determining the lease term and in assessing impairment of their right-of-use assets. We adopted ASU 2016-02, as amended, during the first quarter of 2019 using the transition method which allows the application of the standard at the adoption date, January 1, 2019. Upon adoption, we recognized a lease obligation of $165 million and a right-of-use asset of $155 million , as well as, a cumulative-effect adjustment of $8 million to the opening balance of retained earnings for our operating and finance leases, primarily related to leases of real estate and other assets. The adoption of ASU 2016-02 did not have a material effect on our Income Statement or Cash Flows for the six months ended June 30, 2019 . See Footnote 12 “ Leases ” for further discussion of the adoption and the impact on our Financial Statements. |
Future Adoption of New Accounting Standards | Future Adoption of Accounting Standards Accounting Standards Update 2017-04 – “ Intangibles – Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment ” (“ASU 2017-04”) In January 2017, the FASB issued ASU 2017-04, which simplifies the subsequent measurement of goodwill by eliminating the second step from the goodwill impairment test. ASU 2017-04 requires an entity to perform its annual or interim goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount, and to recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value, not to exceed the total amount of goodwill allocated to that reporting unit. ASU 2017-04 is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years, and is applied on a prospective basis. Early adoption is permitted for interim or annual impairment tests performed after January 1, 2017. We expect to adopt ASU 2017-04 when required and will follow this guidance during our annual impairment testing to be performed during the fourth quarter of 2019, or earlier upon the occurrence of certain events or substantive changes in circumstances. We do not expect the adoption of ASU 2017-04 to have a material effect on our financial statements or disclosures. Accounting Standards Update 2016-13 – “ Financial Instruments – Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments ” (“ASU 2016-13”) In June 2016, the FASB issued ASU 2016-13, which replaces the incurred loss impairment methodology in current GAAP with a methodology that reflects expected credit losses. The update is intended to provide financial statement users with more decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date. This update is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years, with early adoption permitted for fiscal years beginning after December 15, 2018. We expect to adopt ASU 2016-13 commencing in fiscal year 2020 and are continuing to evaluate the impact that adoption of this update will have on our financial statements and disclosures. |
ACQUISITIONS AND DISPOSITIONS (
ACQUISITIONS AND DISPOSITIONS (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Business Combinations [Abstract] | |
Consideration Transferred | The following table presents the fair value of each class of consideration transferred at the Acquisition Date, as adjusted at June 30, 2019. (in millions, except per share amounts) Equivalent shares of Marriott Vacations Worldwide common stock issued in exchange for ILG outstanding shares 20.5 Marriott Vacations Worldwide common stock price per share as of Acquisition Date $ 119.00 Fair value of Marriott Vacations Worldwide common stock issued in exchange for ILG outstanding shares 2,441 Cash consideration to ILG shareholders, net of cash acquired of $154 million 1,680 Fair value of ILG equity-based awards attributed to pre-combination service 64 Total consideration transferred, net of cash acquired 4,185 Noncontrolling interests 30 $ 4,215 |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The following table presents our preliminary estimates of the fair values of the assets that we acquired and the liabilities that we assumed on the Acquisition Date in connection with the business combination as previously reported at December 31, 2018 and as adjusted at June 30, 2019. During the second quarter of 2019, we refined our valuation models related to certain acquired property and equipment and our assumptions related to certain acquired management agreements, and recorded an indemnification asset and corresponding liability for tax matters that we believe will be indemnified. See Footnote 5 , “ Income Taxes ” for further information. ($ in millions) September 1, 2018 (as reported at December 31, 2018) Adjustments September 1, 2018 (as adjusted at June 30, 2019) Vacation ownership notes receivable $ 753 $ — $ 753 Inventory 474 — 474 Property and equipment 374 (1 ) 373 Intangible assets 1,166 (3 ) 1,163 Other assets 620 42 662 Deferred revenue (217 ) — (217 ) Deferred taxes (179 ) 4 (175 ) Debt (392 ) — (392 ) Securitized debt from VIEs (702 ) — (702 ) Other liabilities (511 ) (37 ) (548 ) Net assets acquired 1,386 5 1,391 Goodwill (1) 2,828 (4 ) 2,824 $ 4,214 $ 1 $ 4,215 _________________________ (1) Goodwill is calculated as total consideration transferred, net of cash acquired, less identified net assets acquired and it primarily represents the value that we expect to obtain from synergies and growth opportunities from our combined operations. |
Schedule of Goodwill | The following table details the carrying amount of our goodwill at June 30, 2019 and December 31, 2018 , and reflects our preliminary estimate of goodwill added as a result of the ILG Acquisition. The assignment of goodwill to our reporting units may change during the measurement period as we have not yet finalized the fair value of the assets and liabilities assumed in the ILG Acquisition. ($ in millions) Vacation Ownership Segment Exchange & Third-Party Management Segment Total Consolidated Balance at December 31, 2018 $ 2,448 $ 380 $ 2,828 Adjustments (4 ) — (4 ) Balance at June 30, 2019 $ 2,444 $ 380 $ 2,824 |
Finite-Lived and Indefinite-Lived Intangible Assets Acquired as Part of Business Combination | The following table presents our preliminary estimates of the fair values of ILG’s identified intangible assets and their related estimated useful lives as of the Acquisition Date. Estimated Fair Value ($ in millions) Estimated Useful Life (in years) Member relationships $ 695 15 to 20 Management contracts 356 15 to 25 Management contracts (1) 30 indefinite Trade names and trademarks 82 indefinite $ 1,163 _________________________ (1) The indefinite-lived management contracts, by their terms, continue for the foreseeable horizon. There are no legal, regulatory, contractual, competitive, economic or other factors which limit the period of time over which these resort management contracts are expected to contribute future cash flows. These management contracts were entirely related to the VRI Europe business, which we disposed of in the fourth quarter of 2018. |
Business Acquisition, Pro Forma Information | The following table presents the results of Legacy-ILG operations included in our Income Statement for the three and six months ended June 30, 2019 . ($ in millions) Three Months Ended June 30, 2019 Six Months Ended June 30, 2019 Revenue $ 455 $ 913 Net income attributable to common shareholders $ 34 $ 66 The following unaudited pro forma information presents the combined results of operations of Marriott Vacations Worldwide and ILG as if we had completed the ILG Acquisition on December 30, 2016, the last day of our 2016 fiscal year, but using our preliminary fair values of assets and liabilities as of the Acquisition Date. As required by GAAP, these unaudited pro forma results do not reflect any synergies from operating efficiencies. Accordingly, these unaudited pro forma results are presented for informational purposes only and are not necessarily indicative of what the actual results of operations of the combined company would have been if the ILG Acquisition had occurred at the beginning of the period presented, nor are they indicative of future results of operations. ($ in millions, except per share data) Six Months Ended June 30, 2018 Revenues $ 2,097 Net income $ 71 Net income attributable to common shareholders $ 68 EARNINGS PER SHARE ATTRIBUTABLE TO COMMON SHAREHOLDERS Basic $ 1.45 Diluted $ 1.42 |
REVENUE (Tables)
REVENUE (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following tables detail the sources of revenue by segment for the time periods presented. Three Months Ended June 30, 2019 ($ in millions) Vacation Ownership Exchange & Third-Party Management Corporate and Other Total Sale of vacation ownership products $ 350 $ — $ — $ 350 Ancillary revenues 66 1 — 67 Management fee revenues 38 11 (3 ) 46 Other services revenues 30 63 33 126 Management and exchange 134 75 30 239 Rental 141 17 — 158 Cost reimbursements 258 22 (28 ) 252 Revenue from contracts with customers 883 114 2 999 Financing 68 1 — 69 Total Revenues $ 951 $ 115 $ 2 $ 1,068 Three Months Ended June 30, 2018 ($ in millions) Vacation Ownership Exchange & Third-Party Management Corporate and Other Total Sale of vacation ownership products $ 205 $ — $ — $ 205 Ancillary revenues 36 — — 36 Management fee revenues 26 — — 26 Other services revenues 16 — — 16 Management and exchange 78 — — 78 Rental 74 — — 74 Cost reimbursements 202 — — 202 Revenue from contracts with customers 559 — — 559 Financing 36 — — 36 Total Revenues $ 595 $ — $ — $ 595 Six Months Ended June 30, 2019 ($ in millions) Vacation Ownership Exchange & Third-Party Management Corporate and Other Total Sale of vacation ownership products $ 651 $ — $ — $ 651 Ancillary revenues 123 2 — 125 Management fee revenues 75 26 (7 ) 94 Other services revenues 61 129 69 259 Management and exchange 259 157 62 478 Rental 288 34 1 323 Cost reimbursements 549 46 (56 ) 539 Revenue from contracts with customers 1,747 237 7 1,991 Financing 135 2 — 137 Total Revenues $ 1,882 $ 239 $ 7 $ 2,128 Six Months Ended June 30, 2018 ($ in millions) Vacation Ownership Exchange & Third-Party Management Corporate and Other Total Sale of vacation ownership products $ 380 $ — $ — $ 380 Ancillary revenues 64 — — 64 Management fee revenues 50 — — 50 Other services revenues 34 — — 34 Management and exchange 148 — — 148 Rental 149 — — 149 Cost reimbursements 418 — — 418 Revenue from contracts with customers 1,095 — — 1,095 Financing 71 — — 71 Total Revenues $ 1,166 $ — $ — $ 1,166 The following tables detail the timing of revenue from contracts with customers by segment for the time periods presented. Three Months Ended June 30, 2019 ($ in millions) Vacation Ownership Exchange & Third-Party Management Corporate and Other Total Services transferred over time $ 471 $ 55 $ 2 $ 528 Goods or services transferred at a point in time 412 59 — 471 $ 883 $ 114 $ 2 $ 999 Three Months Ended June 30, 2018 ($ in millions) Vacation Ownership Exchange & Third-Party Management Corporate and Other Total Services transferred over time $ 315 $ — $ — $ 315 Goods or services transferred at a point in time 244 — — 244 $ 559 $ — $ — $ 559 Six Months Ended June 30, 2019 ($ in millions) Vacation Ownership Exchange & Third-Party Management Corporate and Other Total Services transferred over time $ 978 $ 113 $ 7 $ 1,098 Goods or services transferred at a point in time 769 124 — 893 $ 1,747 $ 237 $ 7 $ 1,991 Six Months Ended June 30, 2018 ($ in millions) Vacation Ownership Exchange & Third-Party Management Corporate and Other Total Services transferred over time $ 643 $ — $ — $ 643 Goods or services transferred at a point in time 452 — — 452 $ 1,095 $ — $ — $ 1,095 |
Contract with Customer, Asset and Liability | The following table shows the composition of our receivables and contract liabilities. We had no contract assets at either June 30, 2019 or December 31, 2018 . ($ in millions) At June 30, 2019 At December 31, 2018 Receivables Accounts receivable $ 127 $ 164 Vacation ownership notes receivable, net 2,098 2,039 $ 2,225 $ 2,203 Contract Liabilities Advance deposits $ 186 $ 171 Deferred revenue 356 319 $ 542 $ 490 |
VACATION OWNERSHIP NOTES RECE_2
VACATION OWNERSHIP NOTES RECEIVABLE (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Receivables [Abstract] | |
Composition of Vacation Ownership Notes Receivable Balances, Net of Reserves | The following table shows the composition of our vacation ownership notes receivable balances, net of reserves. June 30, 2019 December 31, 2018 ($ in millions) Originated Acquired Total Originated Acquired Total Securitized $ 1,209 $ 472 $ 1,681 $ 1,070 $ 557 $ 1,627 Non-securitized Eligible for securitization (1) 83 11 94 85 22 107 Not eligible for securitization (1) 261 62 323 233 72 305 Subtotal 344 73 417 318 94 412 $ 1,553 $ 545 $ 2,098 $ 1,388 $ 651 $ 2,039 _________________________ (1) Refer to Footnote 7 “ Financial Instruments ” for a discussion of eligibility of our vacation ownership notes receivable for securitization. |
Interest Income Associated with Vacation Ownership Notes Receivable | The following table summarizes interest income associated with vacation ownership notes receivable. Three Months Ended Six Months Ended ($ in millions) June 30, 2019 June 30, 2018 June 30, 2019 June 30, 2018 Interest income associated with vacation ownership notes receivable — securitized $ 59 $ 27 $ 118 $ 53 Interest income associated with vacation ownership notes receivable — non-securitized 8 7 14 15 Total interest income associated with vacation ownership notes receivable $ 67 $ 34 $ 132 $ 68 |
Schedule Of Accretable Yield | The table below presents a rollforward from December 31, 2018 of the accretable yield (interest income) expected to be earned related to our acquired vacation ownership notes receivable, as well as the amount of non-accretable difference at the end of the period. The non-accretable difference represents estimated contractually required payments in excess of estimated cash flows expected to be collected. The accretable yield represents the excess of estimated cash flows expected to be collected over the carrying amount of the acquired vacation ownership notes receivable. ($ in millions) Six Months Ended June 30, 2019 Accretable yield balance at December 31, 2018 $ 199 Accretion (43 ) Reclassification from non-accretable difference (3 ) Accretable yield balance at June 30, 2019 $ 153 Non-accretable difference at June 30, 2019 $ 55 |
Future Principal Payments, Net of Reserves, and Interest Rates of Vacation Ownership Notes Receivable | The following table shows future contractual principal payments, as well as interest rates for our non-securitized and securitized acquired vacation ownership notes receivable, at June 30, 2019 . Acquired Vacation Ownership Notes Receivable ($ in millions) Non-Securitized Securitized Total 2019, remaining $ 7 $ 55 $ 62 2020 7 53 60 2021 8 53 61 2022 8 53 61 2023 8 52 60 Thereafter 35 206 241 Balance at June 30, 2019 $ 73 $ 472 $ 545 Weighted average stated interest rate 13.5% 13.4% 13.4% Range of stated interest rates 0.0% to 17.9% 6.0% to 16.9% 0.0% to 17.9% June 30, 2019 . Originated Vacation Ownership Notes Receivable ($ in millions) Non-Securitized Securitized Total 2019, remaining $ 34 $ 65 $ 99 2020 45 114 159 2021 37 120 157 2022 32 125 157 2023 29 128 157 Thereafter 167 657 824 Balance at June 30, 2019 $ 344 $ 1,209 $ 1,553 Weighted average stated interest rate 11.8% 12.6% 12.4% Range of stated interest rates 0.0% to 18.0% 5.2% to 17.5% 0.0% to 18.0% |
Notes Receivable Reserves | The following table summarizes the activity related to our originated vacation ownership notes receivable reserve. Originated Vacation Ownership Notes Receivable Reserve ($ in millions) Non-Securitized Securitized Total Balance at December 31, 2018 $ 61 $ 79 $ 140 Increase in vacation ownership notes receivable reserve 38 8 46 Securitizations (35 ) 35 — Clean-up call (1) 18 (18 ) — Write-offs (23 ) — (23 ) Defaulted vacation ownership notes receivable repurchase activity (2) 11 (11 ) — Balance at June 30, 2019 $ 70 $ 93 $ 163 _________________________ (1) Refers to our voluntary repurchase of previously securitized non-defaulted vacation ownership notes receivable to retire outstanding vacation ownership notes receivable from our Warehouse Credit Facility. (2) Decrease in securitized vacation ownership notes receivable reserve and increase in non-securitized vacation ownership notes receivable reserve was attributable to the transfer of the reserve when we voluntarily repurchased defaulted securitized vacation ownership notes receivable. |
Recorded Investment in Non-accrual Notes Receivable that are 90 Days or More Past Due | The following table shows our recorded investment in non-accrual Legacy-MVW vacation ownership notes receivable, which are vacation ownership notes receivable that are 90 days or more past due. Legacy-MVW Vacation Ownership Notes Receivable ($ in millions) Non-Securitized Securitized Total Investment in vacation ownership notes receivable on non-accrual status at June 30, 2019 $ 41 $ 8 $ 49 Investment in vacation ownership notes receivable on non-accrual status at December 31, 2018 $ 36 $ 9 $ 45 Average investment in vacation ownership notes receivable on non-accrual status during the second quarter of 2019 $ 39 $ 10 $ 49 Average investment in vacation ownership notes receivable on non-accrual status during the second quarter of 2018 $ 39 $ 8 $ 47 Average investment in vacation ownership notes receivable on non-accrual status during the first half of 2019 $ 38 $ 9 $ 47 Average investment in vacation ownership notes receivable on non-accrual status during the first half of 2018 $ 39 $ 7 $ 46 |
Aging of Recorded Investment in Principal, Before Reserves, in Vacation Ownership Notes Receivable | The following table shows the aging of the recorded investment in principal, before reserves, in Legacy-MVW vacation ownership notes receivable as of June 30, 2019 . Legacy-MVW Vacation Ownership Notes Receivable ($ in millions) Non-Securitized Securitized Total 31 – 90 days past due $ 6 $ 21 $ 27 91 – 150 days past due 5 8 13 Greater than 150 days past due 36 — 36 Total past due 47 29 76 Current 223 1,160 1,383 Total vacation ownership notes receivable $ 270 $ 1,189 $ 1,459 The following table shows the aging of the recorded investment in principal, before reserves, in Legacy-MVW vacation ownership notes receivable as of December 31, 2018 . Legacy-MVW Vacation Ownership Notes Receivable ($ in millions) Non-Securitized Securitized Total 31 – 90 days past due $ 7 $ 26 $ 33 91 – 150 days past due 3 9 12 Greater than 150 days past due 33 — 33 Total past due 43 35 78 Current 235 1,090 1,325 Total vacation ownership notes receivable $ 278 $ 1,125 $ 1,403 The following table shows the aging of the recorded investment in principal, before reserves, in Legacy-ILG originated vacation ownership notes receivable as of June 30, 2019 and December 31, 2018 . Originated Vacation Ownership Notes Receivable Delinquent Defaulted (1) Total Delinquent & Defaulted ($ in millions) Receivables Current 30 - 59 Days 60 - 89 Days 90 - 119 Days > 120 Days As of June 30, 2019 $ 258 $ 252 $ 3 $ 2 $ 1 $ — $ 6 As of December 31, 2018 $ 126 $ 124 $ 2 $ — $ — $ — $ 2 _________________________ (1) Vacation ownership notes receivable equal to or greater than 120 days are considered in default. |
Financing Receivable Credit Quality Indicators | The following table shows the Legacy-ILG acquired vacation ownership notes receivable by brand and FICO score as of June 30, 2019 . Acquired Vacation Ownership Notes Receivable ($ in millions) 700 + 600 - 699 < 600 No Score (1) Total Westin $ 127 $ 70 $ 5 $ 17 $ 219 Sheraton 120 104 19 45 288 Hyatt 17 12 2 — 31 Other 4 1 — 2 7 $ 268 $ 187 $ 26 $ 64 $ 545 _________________________ (1) Vacation ownership notes receivable with no FICO score primarily relate to non-U.S. resident borrowers. The following table shows the Legacy-ILG acquired vacation ownership notes receivable by brand and FICO score as of December 31, 2018 . Acquired Vacation Ownership Notes Receivable ($ in millions) 700 + 600 - 699 < 600 No Score (1) Total Westin $ 154 $ 82 $ 6 $ 21 $ 263 Sheraton 145 124 21 55 345 Hyatt 20 13 2 — 35 Other 4 1 — 3 8 $ 323 $ 220 $ 29 $ 79 $ 651 _________________________ (1) Vacation ownership notes receivable with no FICO score primarily relate to non-U.S. resident borrowers. The following table shows the Legacy-ILG originated vacation ownership notes receivable by brand and FICO score as of June 30, 2019 . Originated Vacation Ownership Notes Receivable ($ in millions) 700 + 600 - 699 < 600 No Score (1) Total Westin $ 80 $ 27 $ 2 $ 14 $ 123 Sheraton 58 36 6 21 121 Hyatt 9 4 1 — 14 $ 147 $ 67 $ 9 $ 35 $ 258 _________________________ (1) Vacation ownership notes receivable with no FICO score primarily relate to non-U.S. resident borrowers. The following table shows the Legacy-ILG originated vacation ownership notes receivable by brand and FICO score as of December 31, 2018 . Originated Vacation Ownership Notes Receivable ($ in millions) 700 + 600 - 699 < 600 No Score (1) Total Westin $ 43 $ 11 $ 1 $ 7 $ 62 Sheraton 28 17 3 9 57 Hyatt 5 2 — — 7 $ 76 $ 30 $ 4 $ 16 $ 126 _________________________ (1) Vacation ownership notes receivable with no FICO score primarily relate to non-U.S. resident borrowers. |
FINANCIAL INSTRUMENTS (Tables)
FINANCIAL INSTRUMENTS (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Investments, All Other Investments [Abstract] | |
Carrying Values and Estimated Fair Values of Financial Assets and Liabilities | The following table shows the carrying values and the estimated fair values of financial assets and liabilities that qualify as financial instruments, determined in accordance with the authoritative guidance for disclosures regarding the fair value of financial instruments. Considerable judgment is required in interpreting market data to develop estimates of fair value. The use of different market assumptions and/or estimation methodologies could have a material effect on the estimated fair value amounts. The table excludes Cash and cash equivalents, Restricted cash, Accounts receivable, Accounts payable, Advance deposits and Accrued liabilities, all of which had fair values approximating their carrying amounts due to the short maturities and liquidity of these instruments. The table also excludes acquired vacation ownership notes receivable which are remeasured at each period end based on expected future cash flows. See Footnote 6 “ Vacation Ownership Notes Receivable ” for additional information on our acquired vacation ownership notes receivable. At June 30, 2019 At December 31, 2018 ($ in millions) Carrying Amount Fair Value Carrying Amount Fair Value Originated vacation ownership notes receivable $ 1,553 $ 1,584 $ 1,388 $ 1,413 Other assets 41 41 66 66 Total financial assets $ 1,594 $ 1,625 $ 1,454 $ 1,479 Securitized debt, net $ (1,792 ) $ (1,820 ) $ (1,714 ) $ (1,718 ) Exchange Notes, net (88 ) (89 ) (88 ) (87 ) Senior Unsecured Notes, net (742 ) (807 ) (741 ) (726 ) IAC Notes (141 ) (140 ) (141 ) (140 ) Term Loan, net (884 ) (895 ) (888 ) (887 ) Revolving Corporate Credit Facility, net (76 ) (76 ) — — Convertible notes, net (203 ) (221 ) (199 ) (198 ) Non-interest bearing note payable, net — — (30 ) (30 ) Total financial liabilities $ (3,926 ) $ (4,048 ) $ (3,801 ) $ (3,786 ) Originated Vacation Ownership Notes Receivable At June 30, 2019 At December 31, 2018 ($ in millions) Carrying Amount Fair Value Carrying Amount Fair Value Originated vacation ownership notes receivable Securitized $ 1,209 $ 1,238 $ 1,070 $ 1,093 Eligible for securitization 83 85 85 87 Not eligible for securitization 261 261 233 233 Non-securitized 344 346 318 320 $ 1,553 $ 1,584 $ 1,388 $ 1,413 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Earnings Per Share [Abstract] | |
Reconciliation of Earnings and Number of Shares Used in Calculation of Basic and Diluted Earnings Per Share | The table below illustrates the reconciliation of the earnings and number of shares used in our calculation of basic and diluted earnings per share attributable to common shareholders. Three Months Ended Six Months Ended (in millions, except per share amounts) June 30, 2019 (1) June 30, 2018 (1) June 30, 2019 (1) June 30, 2018 (1) Computation of Basic Earnings Per Share Attributable to Common Shareholders Net income attributable to common shareholders $ 49 $ 11 $ 73 $ 47 Shares for basic earnings per share 44.7 26.7 45.1 26.7 Basic earnings per share $ 1.11 $ 0.40 $ 1.62 $ 1.75 Computation of Diluted Earnings Per Share Attributable to Common Shareholders Net income attributable to common shareholders $ 49 $ 11 $ 73 $ 47 Shares for basic earnings per share 44.7 26.7 45.1 26.7 Effect of dilutive shares outstanding Employee stock options and SARs 0.3 0.4 0.3 0.4 Restricted stock units 0.2 0.2 0.2 0.2 Shares for diluted earnings per share 45.2 27.3 45.6 27.3 Diluted earnings per share $ 1.10 $ 0.39 $ 1.61 $ 1.71 _______________________________ (1) The computations of diluted earnings per share attributable to common shareholders exclude approximately 452,000 and 307,000 shares of common stock, the maximum number of shares issuable as of June 30, 2019 and June 30, 2018 , respectively, upon the vesting of certain performance-based awards because the performance conditions required to be met for the shares subject to such awards to vest were not achieved by the end of the reporting period. |
INVENTORY (Tables)
INVENTORY (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Inventory Disclosure [Abstract] | |
Composition of Inventory | The following table shows the composition of our inventory balances: ($ in millions) At June 30, 2019 At December 31, 2018 Finished goods (1) $ 828 $ 843 Work-in-progress 48 9 Real estate inventory 876 852 Other 12 11 $ 888 $ 863 _________________________ (1) Represents completed inventory that is either registered for sale as vacation ownership interests, or unregistered and available for sale in its current form. |
PROPERTY AND EQUIPMENT (Tables)
PROPERTY AND EQUIPMENT (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Property, Plant and Equipment [Abstract] | |
Composition of Property and Equipment | The following table details the composition of our property and equipment balances: ($ in millions) At June 30, 2019 At December 31, 2018 Land and land improvements $ 373 $ 466 Buildings and leasehold improvements 403 404 Furniture, fixtures and other equipment 87 88 Information technology 311 297 Construction in progress 38 32 1,212 1,287 Accumulated depreciation (375 ) (336 ) $ 837 $ 951 |
LEASES (Tables)
LEASES (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Leases [Abstract] | |
Components of Lease Expense | The following table presents the carrying values of our leases and the classification on our Balance Sheet as of June 30, 2019 . ($ in millions) Balance Sheet Classification At June 30, 2019 Operating lease assets Other assets $ 121 Finance lease assets Property and equipment 22 $ 143 Operating lease liabilities Accrued liabilities $ 134 Finance lease liabilities Debt 22 $ 156 The following table presents the lease costs and the classification on our Income Statement for the three and six months ended June 30, 2019 . ($ in millions) Income Statement Classification Three Months Ended June 30, 2019 Six Months Ended June 30, 2019 Operating lease cost Marketing and sales expense $ 9 $ 17 Finance lease cost Amortization of right-of-use assets Depreciation and amortization 1 2 Interest on lease liabilities Interest expense 1 1 Variable lease cost Marketing and sales expense 1 2 $ 12 $ 22 Lease Term and Discount Rate At June 30, 2019 Weighted-average remaining lease term (in years) Operating leases 11.4 years Finance leases 0.7 years Weighted-average discount rate Operating leases 6.1% Finance leases 4.8% Other Information ($ in millions) Six Months Ended June 30, 2019 Cash paid for amounts included in measurement of lease liabilities Operating cash flows for finance leases $ — Operating cash flows for operating leases 17 Financing cash flows for finance leases 2 $ 19 |
Maturities of Operating Lease Liabilities | The following table presents the maturity of our operating and financing lease liabilities as of June 30, 2019 . ($ in millions) Operating Leases Finance Leases (1) Total 2019, remaining $ 15 $ 11 $ 26 2020 29 10 39 2021 21 2 23 2022 18 — 18 2023 16 — 16 Thereafter 103 — 103 Total lease payments 202 23 225 Less: Imputed interest (68 ) (1 ) (69 ) $ 134 $ 22 $ 156 _________________________ (1) Finance lease payments include $17 million related to residual value guarantees associated with purchase commitments for operating properties in San Francisco, California and New York, New York. See Footnote 11 “ Contingencies and Commitments ” for additional information regarding these transactions. |
Maturities of Financing Lease Liabilities | The following table presents the maturity of our operating and financing lease liabilities as of June 30, 2019 . ($ in millions) Operating Leases Finance Leases (1) Total 2019, remaining $ 15 $ 11 $ 26 2020 29 10 39 2021 21 2 23 2022 18 — 18 2023 16 — 16 Thereafter 103 — 103 Total lease payments 202 23 225 Less: Imputed interest (68 ) (1 ) (69 ) $ 134 $ 22 $ 156 _________________________ (1) Finance lease payments include $17 million related to residual value guarantees associated with purchase commitments for operating properties in San Francisco, California and New York, New York. See Footnote 11 “ Contingencies and Commitments ” for additional information regarding these transactions. |
SECURITIZED DEBT (Tables)
SECURITIZED DEBT (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Securitized Vacation Ownership Debt | The following table provides detail on our securitized debt, net of unamortized debt issuance costs. ($ in millions) At June 30, 2019 At December 31, 2018 Vacation ownership notes receivable securitizations, gross (1) $ 1,787 $ 1,590 Unamortized debt discount and issuance costs (15 ) (11 ) 1,772 1,579 Warehouse Credit Facility, gross — 116 Unamortized debt issuance costs (2) — (1 ) — 115 Other (3) 20 20 $ 1,792 $ 1,714 _________________________ (1) Interest rates as of June 30, 2019 range from 2.2% to 6.3% , with a weighted average interest rate of 2.9% (2) Excludes $1 million of unamortized debt issuance costs as of June 30, 2019 , as no cash borrowings were outstanding on the Warehouse Credit Facility at that time (3) Non-recourse |
Scheduled Future Principal Payments for Debt | The following table shows scheduled future principal payments for our securitized debt as of June 30, 2019 . Vacation Ownership Notes Receivable Securitizations Other Total ($ in millions) Payments Year 2019, remaining $ 128 $ 1 $ 129 2020 225 2 227 2021 202 2 204 2022 191 3 194 2023 185 3 188 Thereafter 856 9 865 $ 1,787 $ 20 $ 1,807 The following table shows scheduled future principal payments for our debt, excluding finance leases, as of June 30, 2019 . Payments Year ($ in millions) Remaining 2019 2020 2021 2022 2023 Thereafter Total Exchange Notes $ — $ — $ — $ — $ 89 $ — $ 89 Senior Unsecured Notes — — — — — 750 750 IAC Notes — — — — 141 — 141 Term Loan 4 9 9 9 9 855 895 Revolving Corporate Credit Facility — — — — 80 — 80 Convertible Notes — — — 230 — — 230 $ 4 $ 9 $ 9 $ 239 $ 319 $ 1,605 $ 2,185 |
DEBT (Tables)
DEBT (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Debt Disclosure [Abstract] | |
Debt Balances, Net of Unamortized Debt Issuance Costs | The following table provides detail on our debt balances, net of unamortized debt discount and issuance costs. ($ in millions) At June 30, 2019 At December 31, 2018 Senior Notes Exchange Notes $ 89 $ 89 Unamortized debt issuance costs (1 ) (1 ) 88 88 Senior Unsecured Notes 750 750 Unamortized debt issuance costs (8 ) (9 ) 742 741 IAC Notes 141 141 Corporate Credit Facility Term Loan 895 900 Unamortized debt discount and issuance costs (11 ) (12 ) 884 888 Revolving Corporate Credit Facility 80 — Unamortized debt issuance costs (1) (4 ) — 76 — Convertible notes, gross 230 230 Unamortized debt discount and issuance costs (27 ) (31 ) 203 199 Non-Interest bearing note payable — 31 Unamortized debt discount — (1 ) — 30 Finance leases 23 17 $ 2,157 $ 2,104 _________________________ (1) Excludes $4 million of unamortized debt issuance costs as of December 31, 2018, as no cash borrowings were outstanding on the Revolving Corporate Credit Facility at that time. |
Scheduled Future Principal Payments for Debt | The following table shows scheduled future principal payments for our securitized debt as of June 30, 2019 . Vacation Ownership Notes Receivable Securitizations Other Total ($ in millions) Payments Year 2019, remaining $ 128 $ 1 $ 129 2020 225 2 227 2021 202 2 204 2022 191 3 194 2023 185 3 188 Thereafter 856 9 865 $ 1,787 $ 20 $ 1,807 The following table shows scheduled future principal payments for our debt, excluding finance leases, as of June 30, 2019 . Payments Year ($ in millions) Remaining 2019 2020 2021 2022 2023 Thereafter Total Exchange Notes $ — $ — $ — $ — $ 89 $ — $ 89 Senior Unsecured Notes — — — — — 750 750 IAC Notes — — — — 141 — 141 Term Loan 4 9 9 9 9 855 895 Revolving Corporate Credit Facility — — — — 80 — 80 Convertible Notes — — — 230 — — 230 $ 4 $ 9 $ 9 $ 239 $ 319 $ 1,605 $ 2,185 |
Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss) | The following table reflects the activity in accumulated other comprehensive loss related to our derivative instruments during the first half of 2019: ($ in millions) Derivative Instrument Adjustments Balance at December 31, 2018 $ (6 ) Other comprehensive loss before reclassifications (3 ) Reclassification to Income Statement — Net other comprehensive loss (3 ) Balance at March 31, 2019 (9 ) Other comprehensive loss before reclassifications (13 ) Reclassification to Income Statement — Net other comprehensive loss (13 ) Balance at June 30, 2019 $ (22 ) |
Convertible Debt | The following table shows the net carrying value of the Convertible Notes. ($ in millions) At June 30, 2019 At December 31, 2018 Liability component Principal amount $ 230 $ 230 Unamortized debt discount (23 ) (26 ) Unamortized debt issuance costs (4 ) (5 ) Net carrying amount of the liability component $ 203 $ 199 Carrying amount of equity component, net of issuance costs $ 33 $ 33 The following table shows interest expense information related to the Convertible Notes. Three Months Ended Six Months Ended ($ in millions) June 30, 2019 June 30, 2018 June 30, 2019 June 30, 2018 Contractual interest expense $ — $ 1 $ 1 $ 2 Amortization of debt discount 1 2 3 3 Amortization of debt issuance costs 1 — 1 — $ 2 $ 3 $ 5 $ 5 |
SHAREHOLDERS' EQUITY (Tables)
SHAREHOLDERS' EQUITY (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Equity [Abstract] | |
Stock Repurchase Activity under Current Stock Repurchase Program | The following table summarizes share repurchase activity under our current share repurchase program: ($ in millions, except per share amounts) Number of Shares Repurchased Cost of Shares Repurchased Average Price Paid per Share As of December 31, 2018 11,687,774 $ 793 $ 67.85 For the first half of 2019 2,358,808 215 91.12 As of June 30, 2019 14,046,582 $ 1,008 $ 71.76 |
Cash Dividend Declared | We declared cash dividends to holders of common stock during the first half of 2019 as follows: Declaration Date Shareholder Record Date Distribution Date Dividend per Share February 15, 2019 February 28, 2019 March 14, 2019 $0.45 May 9, 2019 May 23, 2019 June 6, 2019 $0.45 |
SHARE-BASED COMPENSATION (Table
SHARE-BASED COMPENSATION (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Compensation Cost for Share-based Payment Arrangements, Allocation of Share-based Compensation Costs by Plan | The following table details our share-based compensation expense related to award grants to our officers, directors and employees: Three Months Ended Six Months Ended ($ in millions) June 30, 2019 June 30, 2018 June 30, 2019 June 30, 2018 Service-based RSUs $ 6 $ 4 $ 9 $ 6 Performance-based RSUs 2 2 3 3 ILG Acquisition Converted RSUs 2 — 6 — 10 6 18 9 SARs 1 — 2 1 Stock options — — — — $ 11 $ 6 $ 20 $ 10 |
Schedule of Unrecognized Compensation Cost, Nonvested Awards | The following table details our deferred compensation costs related to unvested awards: ($ in millions) At June 30, 2019 At December 31, 2018 Service-based RSUs $ 25 $ 16 Performance-based RSUs 16 7 ILG Acquisition Converted RSUs 7 15 48 38 SARs 3 1 Stock options — — $ 51 $ 39 |
Assumptions Used to Estimate Fair Value of Grants | The following table outlines the assumptions used to estimate the fair value of grants during the first half of 2019 : Expected volatility 31.10% Dividend yield 1.76% Risk-free rate 2.59% Expected term (in years) 6.25 |
VARIABLE INTEREST ENTITIES (Tab
VARIABLE INTEREST ENTITIES (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Classifications of Consolidated VIE Assets and Liabilities | The following table shows consolidated assets, which are collateral for the obligations of these variable interest entities, and consolidated liabilities included on our Balance Sheet at June 30, 2019 : ($ in millions) Vacation Ownership Notes Receivable Securitizations Warehouse Credit Facility Total Consolidated Assets Vacation ownership notes receivable, net of reserves $ 1,681 $ — $ 1,681 Interest receivable 12 — 12 Restricted cash (1) 80 — 80 Total $ 1,773 $ — $ 1,773 Consolidated Liabilities Interest payable $ 3 $ — $ 3 Debt 1,787 — 1,787 Total $ 1,790 $ — $ 1,790 _________________________ (1) Includes $6 million of the proceeds from the securitization transaction completed during the second quarter of 2019, which were released when the remaining vacation ownership notes receivable were purchased by the 2019-1 LLC subsequent to the end of the second quarter. Refer to Footnote 13 “ Securitized Debt ” for a discussion of the terms of this securitization transaction and the purchase of additional vacation ownership notes receivable by the 2019-1 LLC subsequent to June 30, 2019. |
Interest Income and Expense Recognized as a Result of Our Involvement with Variable Interest Entities | The following table shows the interest income and expense recognized as a result of our involvement with these variable interest entities during the second quarter of 2019 : ($ in millions) Vacation Ownership Notes Receivable Securitizations Warehouse Credit Facility Total Interest income $ 55 $ 4 $ 59 Interest expense to investors $ 13 $ 1 $ 14 Debt issuance cost amortization $ 1 $ 1 $ 2 Administrative expenses $ 1 $ — $ 1 The following table shows the interest income and expense recognized as a result of our involvement with these variable interest entities during the first half of 2019 : ($ in millions) Vacation Ownership Notes Receivable Securitizations Warehouse Credit Facility Total Interest income $ 107 $ 11 $ 118 Interest expense to investors $ 26 $ 3 $ 29 Debt issuance cost amortization $ 2 $ 1 $ 3 Administrative expenses $ 1 $ — $ 1 |
Cash Flows Between Company and Variable Interest Entities | The following table shows cash flows between us and the Warehouse Credit Facility variable interest entity: Six Months Ended ($ in millions) June 30, 2019 June 30, 2018 Cash Inflows Proceeds from vacation ownership notes receivable securitizations $ 124 $ — Principal receipts 12 — Interest receipts 12 — Reserve release 2 — Total 150 — Cash Outflows Principal to investors (12 ) — Repayment of Warehouse Credit Facility (228 ) — Interest to investors (4 ) (1 ) Funding of restricted cash (1 ) — Total (245 ) (1 ) Net Cash Flows $ (95 ) $ (1 ) The following table shows cash flows between us and the vacation ownership notes receivable securitization variable interest entities: Six Months Ended ($ in millions) June 30, 2019 June 30, 2018 Cash Inflows Net proceeds from vacation ownership notes receivable securitizations $ 445 $ 419 Principal receipts 237 127 Interest receipts 101 52 Reserve release (1) 99 1 Total 882 599 Cash Outflows Principal to investors (233 ) (117 ) Voluntary repurchases of defaulted vacation ownership notes receivable (23 ) (15 ) Voluntary clean-up call — (22 ) Interest to investors (22 ) (10 ) Funding of restricted cash (2) (3) (93 ) (110 ) Total (371 ) (274 ) Net Cash Flows $ 511 $ 325 _________________________ (1) Includes the release of $84 million related to the securitization transaction completed during the second quarter of 2019, which was released as the remaining vacation ownership notes receivable were purchased by the 2019-1 LLC. Refer to Footnote 13 “ Securitized Debt ” for a discussion of the terms of this securitization transaction and the purchase of additional vacation ownership notes receivable by the 2019-1 LLC subsequent to June 30, 2019. (2) Includes $90 million of the proceeds from the securitization transaction completed during the second quarter of 2019, of which $84 million was released during the second quarter of 2019, as a portion of the remaining vacation ownership notes receivable were purchased by the 2019-1 LLC. The remaining $6 million was released when the remaining vacation ownership notes receivable were purchased by the 2019-1 LLC subsequent to the end of the second quarter of 2019. (3) Includes $106 million of the proceeds from the securitization transaction completed during the second quarter of 2018, which were released when the remaining vacation ownership notes receivable were purchased by the 2018-1 Trust during the third quarter of 2018. |
BUSINESS SEGMENTS (Tables)
BUSINESS SEGMENTS (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Segment Reporting [Abstract] | |
Revenues | Revenues Three Months Ended Six Months Ended ($ in millions) June 30, 2019 June 30, 2018 June 30, 2019 June 30, 2018 Vacation Ownership $ 951 $ 595 $ 1,882 $ 1,166 Exchange & Third-Party Management 115 — 239 — Total segment revenues 1,066 595 2,121 1,166 Corporate and other 2 — 7 — $ 1,068 $ 595 $ 2,128 $ 1,166 |
Adjusted EBITDA Reconciling Items from Segments | Adjusted EBITDA and Reconciliation to Net Income Attributable to Common Shareholders Three Months Ended Six Months Ended ($ in millions) June 30, 2019 June 30, 2018 June 30, 2019 June 30, 2018 Adjusted EBITDA Vacation Ownership $ 208 $ 104 $ 379 $ 192 Adjusted EBITDA Exchange & Third-Party Management 58 — 124 — Reconciling items: Corporate and other (71 ) (28 ) (142 ) (53 ) Interest expense (35 ) (5 ) (69 ) (9 ) Tax provision (25 ) (6 ) (40 ) (17 ) Depreciation and amortization (36 ) (5 ) (73 ) (11 ) Share-based compensation expense (11 ) (6 ) (20 ) (10 ) Certain items (39 ) (43 ) (86 ) (45 ) Net income attributable to common shareholders $ 49 $ 11 $ 73 $ 47 |
Reconciliation of Assets from Segments | Assets ($ in millions) At June 30, 2019 At December 31, 2018 Vacation Ownership $ 7,358 $ 7,275 Exchange & Third-Party Management 1,124 1,182 Total segment assets 8,482 8,457 Corporate and other 541 561 $ 9,023 $ 9,018 |
SUPPLEMENTAL GUARANTOR INFORM_2
SUPPLEMENTAL GUARANTOR INFORMATION (Tables) | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Guarantees and Product Warranties [Abstract] | ||
Balance Sheet | Condensed Consolidating Balance Sheet As of June 30, 2019 MVWC Issuers Senior Notes Guarantors Non-Guarantor Subsidiaries Total Eliminations MVW Consolidated ($ in millions) MORI ILG Cash and cash equivalents $ — $ 44 $ — $ 29 $ 106 $ — $ 179 Restricted cash — 20 — 54 263 — 337 Accounts receivable, net 67 28 — 131 105 (4 ) 327 Vacation ownership notes receivable, net — 108 — 196 1,794 — 2,098 Inventory — 304 — 489 95 — 888 Property and equipment — 274 1 272 290 — 837 Goodwill 2,824 — — — — — 2,824 Intangibles, net — — — 1,034 41 — 1,075 Due from parent — 1,957 — — — (1,957 ) — Investments in subsidiaries 2,520 21 1,828 — — (4,369 ) — Other 35 53 — 359 79 (68 ) 458 Total assets $ 5,446 $ 2,809 $ 1,829 $ 2,564 $ 2,773 $ (6,398 ) $ 9,023 Accounts payable $ 12 $ 44 $ — $ 74 $ 26 $ 8 $ 164 Advance deposits — 76 — 90 20 — 186 Accrued liabilities 5 71 7 177 189 (32 ) 417 Deferred revenue — 4 — 239 117 (4 ) 356 Payroll and benefits liability 3 77 — 76 16 — 172 Deferred compensation liability — 86 — 15 1 — 102 Securitized debt, net — — — — 1,792 — 1,792 Debt, net 203 1,805 — 149 — — 2,157 Due to subsidiary 1,957 — — — — (1,957 ) — Other 2 22 — 38 2 — 64 Deferred taxes — 138 — 181 24 — 343 MVW shareholders' equity 3,264 486 1,822 1,529 576 (4,413 ) 3,264 Noncontrolling interests — — — (4 ) 10 — 6 Total liabilities and equity $ 5,446 $ 2,809 $ 1,829 $ 2,564 $ 2,773 $ (6,398 ) $ 9,023 As of December 31, 2018 (1) MVWC Issuers Senior Notes Guarantors Non-Guarantor Subsidiaries Total Eliminations MVW Consolidated ($ in millions) MORI ILG Cash and cash equivalents $ 1 $ 62 $ 2 $ 39 $ 127 $ — $ 231 Restricted cash — 19 — 122 242 — 383 Accounts receivable, net 31 20 — 169 104 — 324 Vacation ownership notes receivable, net — 121 — 183 1,735 — 2,039 Inventory — 212 — 475 176 — 863 Property and equipment — 439 1 308 203 — 951 Goodwill 2,828 — — — — — 2,828 Intangibles, net — — — 1,065 42 — 1,107 Due from parent — 1,834 — — — (1,834 ) — Investments in subsidiaries 2,681 93 1,875 — — (4,649 ) — Other 27 53 — 251 36 (75 ) 292 Total assets $ 5,568 $ 2,853 $ 1,878 $ 2,612 $ 2,665 $ (6,558 ) $ 9,018 Accounts payable $ 50 $ 13 $ — $ 165 $ 25 $ — $ 253 Advance deposits — 65 — 89 17 — 171 Accrued liabilities 7 96 7 121 150 (24 ) 357 Deferred revenue — 6 — 189 128 (4 ) 319 Payroll and benefits liability 15 96 — 84 16 — 211 Deferred compensation liability — 79 — 13 1 — 93 Securitized debt, net — — — — 1,714 — 1,714 Debt, net 199 1,726 — 179 — — 2,104 Due to subsidiary 1,834 — — — — (1,834 ) — Other 2 6 — 1 3 — 12 Deferred taxes — 133 — 157 24 4 318 MVW shareholders' equity 3,461 633 1,871 1,617 579 (4,700 ) 3,461 Noncontrolling interests — — — (3 ) 8 — 5 Total liabilities and equity $ 5,568 $ 2,853 $ 1,878 $ 2,612 $ 2,665 $ (6,558 ) $ 9,018 _________________________ (1) Amounts have been revised to correct certain immaterial prior period errors as reported in the 2018 Annual Report and have been reclassified to conform to the current year presentation. | Condensed Consolidating Balance Sheet As of June 30, 2019 ($ in millions) MVWC Interval Acquisition Corp. IAC Notes Guarantors Non-Guarantor Subsidiaries Total Eliminations MVW Consolidated Cash and cash equivalents $ — $ 1 $ 27 $ 151 $ — $ 179 Restricted cash — — 52 285 — 337 Accounts receivable, net 67 2 115 147 (4 ) 327 Vacation ownership notes receivable, net — — 189 1,909 — 2,098 Inventory — — 449 439 — 888 Property and equipment — — 230 607 — 837 Goodwill 2,824 — — — — 2,824 Intangibles, net — — 1,034 41 — 1,075 Due from parent — — — 1,957 (1,957 ) — Investments in subsidiaries 2,520 1,942 1,828 — (6,290 ) — Other 35 27 245 219 (68 ) 458 Total assets $ 5,446 $ 1,972 $ 4,169 $ 5,755 $ (8,319 ) $ 9,023 Accounts payable $ 12 $ — $ 40 $ 105 $ 7 $ 164 Advance deposits — — 81 105 — 186 Accrued liabilities 5 — 170 274 (32 ) 417 Deferred revenue — — 145 215 (4 ) 356 Payroll and benefits liability 3 — 67 102 — 172 Deferred compensation liability — — 7 95 — 102 Securitized debt, net — — — 1,792 — 1,792 Debt, net 203 141 1 1,812 — 2,157 Due to subsidiary 1,957 — — — (1,957 ) — Other 2 — 38 24 — 64 Deferred taxes — — 179 164 — 343 MVW shareholders' equity 3,264 1,831 3,445 1,057 (6,333 ) 3,264 Noncontrolling interests — — (4 ) 10 — 6 Total liabilities and equity $ 5,446 $ 1,972 $ 4,169 $ 5,755 $ (8,319 ) $ 9,023 As of December 31, 2018 (1) ($ in millions) MVWC Interval Acquisition Corp. IAC Notes Guarantors Non-Guarantor Subsidiaries Total Eliminations MVW Consolidated Cash and cash equivalents $ 1 $ 11 $ 28 $ 191 $ — $ 231 Restricted cash — — 83 300 — 383 Accounts receivable, net 31 2 107 184 — 324 Vacation ownership notes receivable, net — — 176 1,863 — 2,039 Inventory — — 440 423 — 863 Property and equipment — — 272 679 — 951 Goodwill 2,828 — — — — 2,828 Intangibles, net — — 1,065 42 — 1,107 Due from parent — — — 1,834 (1,834 ) — Investments in subsidiaries 2,681 1,975 1,875 — (6,531 ) — Other 27 28 140 172 (75 ) 292 Total assets $ 5,568 $ 2,016 $ 4,186 $ 5,688 $ (8,440 ) $ 9,018 Accounts payable $ 50 $ — $ 72 $ 131 $ — $ 253 Advance deposits — — 81 90 — 171 Accrued liabilities 7 — 79 295 (24 ) 357 Deferred revenue — — 117 206 (4 ) 319 Payroll and benefits liability 15 — 77 119 — 211 Deferred compensation liability — — 7 86 — 93 Securitized debt, net — — — 1,714 — 1,714 Debt, net 199 141 1 1,763 — 2,104 Due to subsidiary 1,834 — — — (1,834 ) — Other 2 — 1 9 — 12 Deferred taxes — — 155 159 4 318 MVW shareholders' equity 3,461 1,875 3,599 1,108 (6,582 ) 3,461 Noncontrolling interests — — (3 ) 8 — 5 Total liabilities and equity $ 5,568 $ 2,016 $ 4,186 $ 5,688 $ (8,440 ) $ 9,018 |
Income Statement | Condensed Consolidating Statement of Income Three Months Ended June 30, 2019 ($ in millions) MVWC Interval Acquisition Corp. IAC Notes Guarantors Non-Guarantor Subsidiaries Total Eliminations MVW Consolidated Revenues $ — $ — $ 398 $ 671 $ (1 ) $ 1,068 Expenses (6 ) — (346 ) (574 ) 1 (925 ) Gains (losses) and other income (expense), net — — 2 — — 2 Interest expense (2 ) (2 ) (3 ) (28 ) — (35 ) ILG acquisition-related costs — — (14 ) (22 ) — (36 ) Other — — — — — — Equity in earnings from unconsolidated entities — — — — — — Equity in net income of subsidiaries 54 28 27 — (109 ) — Provision for income taxes 3 1 (12 ) (16 ) (1 ) (25 ) Net income 49 27 52 31 (110 ) 49 Net income attributable to noncontrolling interests — — — — — — Net income attributable to common shareholders $ 49 $ 27 $ 52 $ 31 $ (110 ) $ 49 Three Months Ended June 30, 2018 ($ in millions) MVWC Interval Acquisition Corp. IAC Notes Guarantors Non-Guarantor Subsidiaries Total Eliminations MVW Consolidated Revenues $ — $ — $ — $ 595 $ — $ 595 Expenses (2 ) — — (544 ) — (546 ) Gains (losses) and other income (expense), net — — — (7 ) — (7 ) Interest expense (3 ) — — (2 ) — (5 ) ILG acquisition-related costs — — — (19 ) — (19 ) Other — — — (1 ) — (1 ) Provision for income taxes 1 — — (7 ) — (6 ) Equity in earnings from unconsolidated entities — — — — — — Equity in net income of subsidiaries 15 — — — (15 ) — Net income 11 — — 15 (15 ) 11 Net income attributable to noncontrolling interests — — — — — — Net income attributable to common shareholders $ 11 $ — $ — $ 15 $ (15 ) $ 11 Six Months Ended June 30, 2019 ($ in millions) MVWC Interval Acquisition Corp. IAC Notes Guarantors Non-Guarantor Subsidiaries Total Eliminations MVW Consolidated Revenues $ — $ — $ 797 $ 1,340 $ (9 ) $ 2,128 Expenses (9 ) — (715 ) (1,179 ) 9 (1,894 ) Gains (losses) and other income (expense), net — — — 10 — 10 Interest expense (5 ) (3 ) (3 ) (58 ) — (69 ) ILG acquisition-related costs — — (14 ) (48 ) — (62 ) Other — — — — — — Provision for income taxes 4 1 (22 ) (23 ) — (40 ) Equity in earnings from unconsolidated entities — — — — — — Equity in net income of subsidiaries 83 64 62 — (209 ) — Net income 73 62 105 42 (209 ) 73 Net income attributable to noncontrolling interests — — — — — — Net income attributable to common shareholders $ 73 $ 62 $ 105 $ 42 $ (209 ) $ 73 Six Months Ended June 30, 2018 ($ in millions) MVWC Interval Acquisition Corp. IAC Notes Guarantors Non-Guarantor Subsidiaries Total Eliminations MVW Consolidated Revenues $ — $ — $ — $ 1,166 $ — $ 1,166 Expenses (4 ) — — (1,060 ) — (1,064 ) Gains (losses) and other income (expense), net — — — (6 ) — (6 ) Interest expense (5 ) — — (4 ) — (9 ) ILG acquisition-related costs — — — (20 ) — (20 ) Other — — — (3 ) — (3 ) Provision for income taxes 2 — — (19 ) — (17 ) Equity in earnings from unconsolidated entities — — — — — — Equity in net income of subsidiaries 54 — — — (54 ) — Net income 47 — — 54 (54 ) 47 Net income attributable to noncontrolling interests — — — — — — Net income attributable to common shareholders $ 47 $ — $ — $ 54 $ (54 ) $ 47 Condensed Consolidating Statement of Income Three Months Ended June 30, 2019 MVWC Issuers Senior Notes Guarantors Non-Guarantor Subsidiaries Total Eliminations MVW Consolidated ($ in millions) MORI ILG Revenues $ — $ 191 $ — $ 695 $ 183 $ (1 ) $ 1,068 Expenses (6 ) (200 ) — (583 ) (137 ) 1 (925 ) Gains (losses) and other income (expense), net — 2 — — — — 2 Interest expense (2 ) (24 ) — (5 ) (4 ) — (35 ) ILG acquisition-related costs — (22 ) — (14 ) — — (36 ) Other — — — — — — — Provision for income taxes 3 16 — (35 ) (9 ) — (25 ) Equity in earnings from unconsolidated entities — — — — — — — Equity in net income of subsidiaries 54 62 27 — — (143 ) — Net income 49 25 27 58 33 (143 ) 49 Net income attributable to noncontrolling interests — — — — — — — Net income attributable to common shareholders $ 49 $ 25 $ 27 $ 58 $ 33 $ (143 ) $ 49 Three Months Ended June 30, 2018 MVWC Issuers Senior Notes Guarantors Non-Guarantor Subsidiaries Total Eliminations MVW Consolidated ($ in millions) MORI ILG Revenues $ — $ 194 $ — $ 286 $ 115 $ — $ 595 Expenses (2 ) (189 ) — (257 ) (98 ) — (546 ) Gains (losses) and other income (expense), net — (7 ) — — — — (7 ) Interest expense (3 ) (1 ) — (1 ) — — (5 ) ILG acquisition-related costs — (19 ) — — — — (19 ) Other — (1 ) — — — — (1 ) Provision for income taxes 1 7 — (12 ) (2 ) — (6 ) Equity in earnings from unconsolidated entities — — — — — — — Equity in net income of subsidiaries 15 16 — — — (31 ) — Net income 11 — — 16 15 (31 ) 11 Net income attributable to noncontrolling interests — — — — — — — Net income attributable to common shareholders $ 11 $ — $ — $ 16 $ 15 $ (31 ) $ 11 Six Months Ended June 30, 2019 MVWC Issuers Senior Notes Guarantors Non-Guarantor Subsidiaries Total Eliminations MVW Consolidated ($ in millions) MORI ILG Revenues $ — $ 350 $ — $ 1,406 $ 381 $ (9 ) $ 2,128 Expenses (9 ) (392 ) — (1,214 ) (288 ) 9 (1,894 ) Gains (losses) and other income (expense), net — 11 — (1 ) — — 10 Interest expense (5 ) (54 ) — (6 ) (4 ) — (69 ) ILG acquisition-related costs — (48 ) — (14 ) — — (62 ) Other — — — — — — — Provision for income taxes 4 40 — (70 ) (14 ) — (40 ) Equity in earnings from unconsolidated entities — — — — — — — Equity in net income of subsidiaries 83 115 62 — — (260 ) — Net income 73 22 62 101 75 (260 ) 73 Net income attributable to noncontrolling interests — — — — — — — Net income attributable to common shareholders $ 73 $ 22 $ 62 $ 101 $ 75 $ (260 ) $ 73 Six Months Ended June 30, 2018 MVWC Issuers Senior Notes Guarantors Non-Guarantor Subsidiaries Total Eliminations MVW Consolidated ($ in millions) MORI ILG Revenues $ — $ 363 $ — $ 585 $ 218 $ — $ 1,166 Expenses (4 ) (362 ) — (510 ) (188 ) — (1,064 ) Gains (losses) and other income (expense), net — (6 ) — — — — (6 ) Interest expense (5 ) (2 ) — (2 ) — — (9 ) ILG acquisition-related costs — (20 ) — — — — (20 ) Other — (3 ) — — — — (3 ) Provision for income taxes 2 11 — (27 ) (3 ) — (17 ) Equity in earnings from unconsolidated entities — — — — — — — Equity in net income of subsidiaries 54 46 — — — (100 ) — Net income 47 27 — 46 27 (100 ) 47 Net income attributable to noncontrolling interests — — — — — — — Net income attributable to common shareholders $ 47 $ 27 $ — $ 46 $ 27 $ (100 ) $ 47 | |
Cash Flow | Condensed Consolidating Statement of Cash Flows Six Months Ended June 30, 2019 MVWC Issuers Senior Notes Guarantors Non-Guarantor Subsidiaries Total Eliminations MVW Consolidated ($ in millions) MORI ILG Net cash, cash equivalents and restricted cash provided by (used in) operating activities $ (71 ) $ (31 ) $ — $ 151 $ 19 $ (12 ) $ 56 Net cash, cash equivalents and restricted cash (used in) provided by investing activities (4 ) (14 ) — 26 7 — 15 Net cash, cash equivalents and restricted cash (used in) provided by financing activities 74 28 (2 ) (255 ) (27 ) 12 (170 ) Effect of changes in exchange rates on cash, cash equivalents and restricted cash — — — — 1 — 1 Cash, cash equivalents and restricted cash, beginning of period 1 81 2 161 369 — 614 Cash, cash equivalents and restricted cash, end of period $ — $ 64 $ — $ 83 $ 369 $ — $ 516 Six Months Ended June 30, 2018 MVWC Issuers Senior Notes Guarantors Non-Guarantor Subsidiaries Total Eliminations MVW Consolidated ($ in millions) MORI ILG Net cash, cash equivalents and restricted cash provided by (used in) operating activities $ (45 ) $ 111 $ — $ (2 ) $ (8 ) $ 2 $ 58 Net cash, cash equivalents and restricted cash (used in) provided by investing activities (12 ) (4 ) — — (3 ) — (19 ) Net cash, cash equivalents and restricted cash (used in) provided by financing activities 57 49 — (22 ) 105 (2 ) 187 Effect of changes in exchange rates on cash, cash equivalents and restricted cash — — — — 1 — 1 Cash, cash equivalents and restricted cash, beginning of period — 377 — 30 84 — 491 Cash, cash equivalents and restricted cash, end of period $ — $ 533 $ — $ 6 $ 179 $ — $ 718 Condensed Consolidating Statement of Cash Flows Six Months Ended June 30, 2019 ($ in millions) MVWC Interval Acquisition Corp. IAC Notes Guarantors Non-Guarantor Subsidiaries Total Eliminations MVW Consolidated Net cash, cash equivalents and restricted cash provided by (used in) operating activities $ (71 ) $ (2 ) $ 106 $ 315 $ (292 ) $ 56 Net cash, cash equivalents and restricted cash (used in) provided by investing activities (4 ) — 22 (3 ) — 15 Net cash, cash equivalents and restricted cash (used in) provided by financing activities 74 (8 ) (160 ) (368 ) 292 (170 ) Effect of changes in exchange rates on cash, cash equivalents and restricted cash — — — 1 — 1 Cash, cash equivalents and restricted cash, beginning of period 1 11 111 491 — 614 Cash, cash equivalents and restricted cash, end of period $ — $ 1 $ 79 $ 436 $ — $ 516 Six Months Ended June 30, 2018 ($ in millions) MVWC Interval Acquisition Corp. IAC Notes Guarantors Non-Guarantor Subsidiaries Total Eliminations MVW Consolidated Net cash, cash equivalents and restricted cash provided by (used in) operating activities $ (45 ) $ — $ — $ 101 $ 2 $ 58 Net cash, cash equivalents and restricted cash (used in) provided by investing activities (12 ) — — (7 ) — (19 ) Net cash, cash equivalents and restricted cash (used in) provided by financing activities 57 — — 132 (2 ) 187 Effect of changes in exchange rates on cash, cash equivalents and restricted cash — — — 1 — 1 Cash, cash equivalents and restricted cash, beginning of period — — — 491 — 491 Cash, cash equivalents and restricted cash, end of period $ — $ — $ — $ 718 $ — $ 718 |
BASIS OF PRESENTATION - (Detail
BASIS OF PRESENTATION - (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||
Accounts payable | $ (164) | $ (253) |
Advance deposits | (542) | (490) |
Accrued liabilities | 417 | 357 |
Debt, net | 2,157 | 2,104 |
Securitized debt, net | 1,792 | 1,714 |
Restatement Adjustment | ||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||
Accounts payable | (8) | |
Accrued liabilities | (66) | |
Debt, net | 20 | |
Advance deposits | ||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||
Advance deposits | $ (186) | (171) |
Advance deposits | Restatement Adjustment | ||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||
Advance deposits | (58) | |
Other | Restatement Adjustment | ||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||
Securitized debt, net | $ (20) |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Jan. 01, 2019 |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||
Present value of lease liabilities | $ 156 | |
Operating lease assets | $ 143 | |
Accounting Standards Update 2016-02 | ||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||
Impact of adoption of ASU 2016-02 | $ 8 | |
Present value of lease liabilities | 165 | |
Operating lease assets | 155 | |
Accounting Standards Update 2016-02 | Retained Earnings | ||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||
Impact of adoption of ASU 2016-02 | $ 8 |
ACQUISITIONS AND DISPOSITIONS -
ACQUISITIONS AND DISPOSITIONS - Consideration Transferred (Details) - ILG - USD ($) $ / shares in Units, shares in Millions, $ in Millions | Jun. 30, 2019 | Aug. 31, 2018 | Sep. 01, 2018 |
Business Acquisition [Line Items] | |||
Equivalent shares of Marriott Vacations Worldwide common stock issued in exchange for ILG outstanding shares (in shares) | 20.5 | ||
Marriott Vacations Worldwide common stock price as of Acquisition Date (in dollars per share) | $ 119 | ||
Fair value of Marriott Vacations Worldwide common stock issued in exchange for ILG outstanding shares | $ 2,441 | ||
Cash consideration to ILG shareholders, net of cash acquired of $154 million | 1,680 | ||
Fair value of ILG equity-based awards attributed to pre-combination service | 64 | ||
Total consideration transferred, net of cash acquired | 4,185 | ||
Noncontrolling interests | 30 | ||
Total shareholder equity | $ 4,215 | $ 4,215 | |
Cash acquired from acquisition | $ 154 |
ACQUISITIONS AND DISPOSITIONS_2
ACQUISITIONS AND DISPOSITIONS - Preliminary Fair Values of Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Millions | Sep. 01, 2018 | Jun. 30, 2019 | Dec. 31, 2018 |
September 1, 2018 (as reported at December 31, 2018) | |||
Goodwill | $ 2,824 | $ 2,828 | |
Adjustments | |||
Adjustments | (4) | ||
September 1, 2018 (as adjusted at June 30, 2019) | |||
Goodwill | 2,824 | $ 2,828 | |
ILG | |||
September 1, 2018 (as reported at December 31, 2018) | |||
Vacation ownership notes receivable | $ 753 | ||
Inventory | 474 | ||
Property and equipment | 373 | ||
Intangible assets | 1,163 | ||
Other assets | 662 | ||
Deferred revenue | (217) | ||
Deferred taxes | (175) | ||
Debt | (392) | ||
Securitized debt from VIEs | (702) | ||
Other liabilities | (548) | ||
Net assets acquired | 1,391 | ||
Goodwill | 2,824 | ||
Assets acquired | 4,215 | 4,215 | |
Adjustments | |||
Vacation ownership notes receivable | 0 | ||
Inventory | 0 | ||
Property and equipment | (1) | ||
Intangible assets | (3) | ||
Other assets | 42 | ||
Deferred revenue | 0 | ||
Deferred taxes | 4 | ||
Debt | 0 | ||
Securitized debt from VIEs | 0 | ||
Other liabilities | (37) | ||
Net assets acquired | 5 | ||
Adjustments | (4) | ||
Assets acquired | 1 | ||
September 1, 2018 (as adjusted at June 30, 2019) | |||
Vacation ownership notes receivable | 753 | ||
Inventory | 474 | ||
Property and equipment | 373 | ||
Intangible assets | 1,163 | ||
Other assets | 662 | ||
Deferred revenue | (217) | ||
Deferred taxes | (175) | ||
Debt | (392) | ||
Securitized debt from VIEs | (702) | ||
Other liabilities | (548) | ||
Net assets acquired | 1,391 | ||
Goodwill | 2,824 | ||
Assets acquired | 4,215 | $ 4,215 | |
Previously Reported [Member] | ILG | |||
September 1, 2018 (as reported at December 31, 2018) | |||
Vacation ownership notes receivable | 753 | ||
Inventory | 474 | ||
Property and equipment | 374 | ||
Intangible assets | 1,166 | ||
Other assets | 620 | ||
Deferred revenue | (217) | ||
Deferred taxes | (179) | ||
Debt | (392) | ||
Securitized debt from VIEs | (702) | ||
Other liabilities | (511) | ||
Net assets acquired | 1,386 | ||
Goodwill | 2,828 | ||
Assets acquired | 4,214 | ||
September 1, 2018 (as adjusted at June 30, 2019) | |||
Vacation ownership notes receivable | 753 | ||
Inventory | 474 | ||
Property and equipment | 374 | ||
Intangible assets | 1,166 | ||
Other assets | 620 | ||
Deferred revenue | (217) | ||
Deferred taxes | (179) | ||
Debt | (392) | ||
Securitized debt from VIEs | (702) | ||
Other liabilities | (511) | ||
Net assets acquired | 1,386 | ||
Goodwill | 2,828 | ||
Assets acquired | $ 4,214 |
ACQUISITIONS AND DISPOSITIONS_3
ACQUISITIONS AND DISPOSITIONS - Additional Information (Details) $ / shares in Units, $ in Millions | Sep. 01, 2018Property$ / shares | Mar. 31, 2018USD ($)vacation_ownership_unit | Jun. 30, 2019USD ($)$ / shares | Jun. 30, 2018USD ($) | Dec. 31, 2018USD ($) |
Business Acquisition [Line Items] | |||||
Number of hotels acquired | Property | 4 | ||||
Goodwill | $ 2,824 | $ 2,828 | |||
Business combinations, pro forma, acquisition-related costs | $ 27 | ||||
Vacation Ownership | |||||
Business Acquisition [Line Items] | |||||
Goodwill | 2,444 | 2,448 | |||
Exchange & Third-Party Management | |||||
Business Acquisition [Line Items] | |||||
Goodwill | $ 380 | $ 380 | |||
Marco Island Florida | |||||
Business Acquisition [Line Items] | |||||
Number of vacation ownership units acquired | vacation_ownership_unit | 20 | ||||
Payments to acquire real estate | $ 24 | ||||
ILG | |||||
Business Acquisition [Line Items] | |||||
Business combination, share conversion ratio | 0.165 | ||||
Business combination, share price (in usd per share) | $ / shares | $ 119 | ||||
ILG | Minimum | |||||
Business Acquisition [Line Items] | |||||
Vacation ownership product, financing term | 5 years | ||||
ILG | Maximum | |||||
Business Acquisition [Line Items] | |||||
Vacation ownership product, financing term | 15 years | ||||
ILG | ILG | |||||
Business Acquisition [Line Items] | |||||
Business combination, share price (in usd per share) | $ / shares | $ 14.75 |
ACQUISITIONS AND DISPOSITIONS_4
ACQUISITIONS AND DISPOSITIONS - Goodwill (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2019 | Dec. 31, 2018 | |
Business Acquisition [Line Items] | ||
Goodwill | $ 2,824 | $ 2,828 |
Adjustments | (4) | |
Exchange & Third-Party Management | ||
Business Acquisition [Line Items] | ||
Goodwill | 380 | 380 |
Adjustments | 0 | |
Vacation Ownership | ||
Business Acquisition [Line Items] | ||
Goodwill | 2,444 | $ 2,448 |
Adjustments | $ (4) |
ACQUISITIONS AND DISPOSITIONS_5
ACQUISITIONS AND DISPOSITIONS - Intangible Assets (Details) - ILG $ in Millions | Sep. 01, 2018USD ($) |
Business Acquisition [Line Items] | |
Intangible assets | $ 1,163 |
Management contracts | |
Business Acquisition [Line Items] | |
Estimated Fair Value | 30 |
Trade names and trademarks | |
Business Acquisition [Line Items] | |
Estimated Fair Value | 82 |
Member relationships | |
Business Acquisition [Line Items] | |
Estimated Fair Value | $ 695 |
Member relationships | Minimum | |
Business Acquisition [Line Items] | |
Estimated Useful Life | 15 years |
Member relationships | Maximum | |
Business Acquisition [Line Items] | |
Estimated Useful Life | 20 years |
Management contracts | |
Business Acquisition [Line Items] | |
Estimated Fair Value | $ 356 |
Management contracts | Minimum | |
Business Acquisition [Line Items] | |
Estimated Useful Life | 15 years |
Management contracts | Maximum | |
Business Acquisition [Line Items] | |
Estimated Useful Life | 25 years |
ACQUISITIONS AND DISPOSITIONS_6
ACQUISITIONS AND DISPOSITIONS - Deferred Revenue Narrative (Details) | Jun. 30, 2019 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-07-01 | |
Business Acquisition [Line Items] | |
Expected timing of satisfaction, period | 2 years |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-04-01 | Minimum | Sale of vacation ownership products | |
Business Acquisition [Line Items] | |
Expected timing of satisfaction, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-04-01 | Maximum | Sale of vacation ownership products | |
Business Acquisition [Line Items] | |
Expected timing of satisfaction, period | 5 years |
ACQUISITIONS AND DISPOSITIONS_7
ACQUISITIONS AND DISPOSITIONS - Pro Forma Results of Operations (Details) - ILG $ / shares in Units, $ in Millions | 6 Months Ended |
Jun. 30, 2018USD ($)$ / shares | |
Business Acquisition [Line Items] | |
Revenues | $ 2,097 |
Net income | 71 |
Net income attributable to common shareholders | $ 68 |
EARNINGS PER SHARE ATTRIBUTABLE TO COMMON SHAREHOLDERS | |
Basic (in usd per share) | $ / shares | $ 1.45 |
Diluted (in usd per share) | $ / shares | $ 1.42 |
ACQUISITIONS AND DISPOSITIONS_8
ACQUISITIONS AND DISPOSITIONS - ILG Results of Operations (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended |
Jun. 30, 2019 | Jun. 30, 2019 | |
Business Acquisition [Line Items] | ||
Net income attributable to common shareholders | $ 34 | $ 66 |
ILG | ||
Business Acquisition [Line Items] | ||
Revenue | $ 455 | $ 913 |
REVENUE - Additional Informatio
REVENUE - Additional Information (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2019 | Dec. 31, 2018 | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Performance obligation satisfied in previous period | $ (4,000,000) | $ (3,000,000) | |
Contract with customer, contract assets | 0 | 0 | $ 0 |
Contract with customer, liability, revenue recognized | $ 51,000,000 | $ 203,000,000 |
REVENUE - Revenue with Customer
REVENUE - Revenue with Customers (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Revenue from contracts with customers | $ 999 | $ 559 | $ 1,991 | $ 1,095 |
Cost reimbursements | 252 | 202 | 539 | 418 |
Financing | 69 | 36 | 137 | 71 |
TOTAL REVENUES | 1,068 | 595 | 2,128 | 1,166 |
Vacation Ownership | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Revenue from contracts with customers | 883 | 559 | 1,747 | 1,095 |
Cost reimbursements | 258 | 202 | 549 | 418 |
Financing | 68 | 36 | 135 | 71 |
TOTAL REVENUES | 951 | 595 | 1,882 | 1,166 |
Exchange & Third-Party Management | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Revenue from contracts with customers | 114 | 0 | 237 | 0 |
Cost reimbursements | 22 | 0 | 46 | 0 |
Financing | 1 | 0 | 2 | 0 |
TOTAL REVENUES | 115 | 0 | 239 | 0 |
Sale of vacation ownership products | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Revenue from contracts with customers | 350 | 205 | 651 | 380 |
Sale of vacation ownership products | Vacation Ownership | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Revenue from contracts with customers | 350 | 205 | 651 | 380 |
Sale of vacation ownership products | Exchange & Third-Party Management | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Revenue from contracts with customers | 0 | 0 | 0 | 0 |
Ancillary revenues | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Revenue from contracts with customers | 67 | 36 | 125 | 64 |
Ancillary revenues | Vacation Ownership | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Revenue from contracts with customers | 66 | 36 | 123 | 64 |
Ancillary revenues | Exchange & Third-Party Management | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Revenue from contracts with customers | 1 | 0 | 2 | 0 |
Management fee revenues | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Revenue from contracts with customers | 46 | 26 | 94 | 50 |
Management fee revenues | Vacation Ownership | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Revenue from contracts with customers | 38 | 26 | 75 | 50 |
Management fee revenues | Exchange & Third-Party Management | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Revenue from contracts with customers | 11 | 0 | 26 | 0 |
Other services revenues | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Revenue from contracts with customers | 126 | 16 | 259 | 34 |
Other services revenues | Vacation Ownership | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Revenue from contracts with customers | 30 | 16 | 61 | 34 |
Other services revenues | Exchange & Third-Party Management | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Revenue from contracts with customers | 63 | 0 | 129 | 0 |
Resort management and other services | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Revenue from contracts with customers | 239 | 78 | 478 | 148 |
Resort management and other services | Vacation Ownership | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Revenue from contracts with customers | 134 | 78 | 259 | 148 |
Resort management and other services | Exchange & Third-Party Management | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Revenue from contracts with customers | 75 | 0 | 157 | 0 |
Rental | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Revenue from contracts with customers | 158 | 74 | 323 | 149 |
Rental | Vacation Ownership | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Revenue from contracts with customers | 141 | 74 | 288 | 149 |
Rental | Exchange & Third-Party Management | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Revenue from contracts with customers | 17 | 0 | 34 | 0 |
Corporate and other | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Revenue from contracts with customers | 2 | 0 | 7 | 0 |
Cost reimbursements | (28) | 0 | (56) | 0 |
Financing | 0 | 0 | 0 | 0 |
TOTAL REVENUES | 2 | 0 | 7 | 0 |
Corporate and other | Sale of vacation ownership products | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Revenue from contracts with customers | 0 | 0 | 0 | 0 |
Corporate and other | Ancillary revenues | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Revenue from contracts with customers | 0 | 0 | 0 | 0 |
Corporate and other | Management fee revenues | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Revenue from contracts with customers | (3) | 0 | (7) | 0 |
Corporate and other | Other services revenues | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Revenue from contracts with customers | 33 | 0 | 69 | 0 |
Corporate and other | Resort management and other services | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Revenue from contracts with customers | 30 | 0 | 62 | 0 |
Corporate and other | Rental | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Revenue from contracts with customers | $ 0 | $ 0 | $ 1 | $ 0 |
REVENUE - Timing of Revenue fro
REVENUE - Timing of Revenue from Contracts with Customers (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Revenue from contracts with customers | $ 999 | $ 559 | $ 1,991 | $ 1,095 |
Vacation Ownership | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Revenue from contracts with customers | 883 | 559 | 1,747 | 1,095 |
Exchange & Third-Party Management | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Revenue from contracts with customers | 114 | 0 | 237 | 0 |
Services transferred over time | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Revenue from contracts with customers | 528 | 315 | 1,098 | 643 |
Services transferred over time | Vacation Ownership | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Revenue from contracts with customers | 471 | 315 | 978 | 643 |
Services transferred over time | Exchange & Third-Party Management | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Revenue from contracts with customers | 55 | 0 | 113 | 0 |
Goods or services transferred at a point in time | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Revenue from contracts with customers | 471 | 244 | 893 | 452 |
Goods or services transferred at a point in time | Vacation Ownership | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Revenue from contracts with customers | 412 | 244 | 769 | 452 |
Goods or services transferred at a point in time | Exchange & Third-Party Management | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Revenue from contracts with customers | 59 | 0 | 124 | 0 |
Corporate and other | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Revenue from contracts with customers | 2 | 0 | 7 | 0 |
Corporate and other | Services transferred over time | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Revenue from contracts with customers | 2 | 0 | 7 | 0 |
Corporate and other | Goods or services transferred at a point in time | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Revenue from contracts with customers | $ 0 | $ 0 | $ 0 | $ 0 |
REVENUE - Contracts with Custom
REVENUE - Contracts with Customers, Assets and Liabilities (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Receivables | ||
Accounts receivable | $ 127 | $ 164 |
Vacation ownership notes receivable, net | 2,098 | 2,039 |
Receivables | 2,225 | 2,203 |
Contract Liabilities | ||
Contract Liabilities | 542 | 490 |
Advance deposits | ||
Contract Liabilities | ||
Contract Liabilities | 186 | 171 |
Deferred revenue | ||
Contract Liabilities | ||
Contract Liabilities | $ 356 | $ 319 |
REVENUE - Remaining Performance
REVENUE - Remaining Performance Obligation Narrative (Details) - Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-07-01 | Jun. 30, 2019 |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |
Revenue remaining performance obligation expected timing percentage | 90.00% |
Expected timing of satisfaction, period | 2 years |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Income Tax Contingency [Line Items] | |||||
Effective income tax rate, percent | 32.97% | 38.08% | 35.55% | 27.05% | |
Unrecognized tax benefits that, if recognized, would impact the effective tax rate | $ 2 | $ 2 | $ 2 | ||
Indemnified Tax Liability | |||||
Income Tax Contingency [Line Items] | |||||
Change in unrecognized tax benefits is reasonably possible | $ (36) |
VACATION OWNERSHIP NOTES RECE_3
VACATION OWNERSHIP NOTES RECEIVABLE - Composition of Vacation Ownership Notes Receivable Balances, Net of Reserves (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Vacation ownership notes receivable, net | $ 2,098 | $ 2,039 |
Securitized | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Vacation ownership notes receivable, net | 1,681 | 1,627 |
Eligible for securitization | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Vacation ownership notes receivable, net | 94 | 107 |
Not eligible for securitization | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Vacation ownership notes receivable, net | 323 | 305 |
Non-Securitized | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Vacation ownership notes receivable, net | 417 | 412 |
Originated | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Vacation ownership notes receivable, net | 1,553 | 1,388 |
Originated | Securitized | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Vacation ownership notes receivable, net | 1,209 | 1,070 |
Originated | Eligible for securitization | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Vacation ownership notes receivable, net | 83 | 85 |
Originated | Not eligible for securitization | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Vacation ownership notes receivable, net | 261 | 233 |
Originated | Non-Securitized | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Vacation ownership notes receivable, net | 344 | 318 |
Acquired | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Vacation ownership notes receivable, net | 545 | 651 |
Acquired | Securitized | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Vacation ownership notes receivable, net | 472 | 557 |
Acquired | Eligible for securitization | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Vacation ownership notes receivable, net | 11 | 22 |
Acquired | Not eligible for securitization | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Vacation ownership notes receivable, net | 62 | 72 |
Acquired | Non-Securitized | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Vacation ownership notes receivable, net | $ 73 | $ 94 |
VACATION OWNERSHIP NOTES RECE_4
VACATION OWNERSHIP NOTES RECEIVABLE - Interest Income Associated With Vacation Ownership Notes Receivable (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Interest income | $ 67 | $ 34 | $ 132 | $ 68 |
Securitized | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Interest income | 59 | 27 | 118 | 53 |
Non-Securitized | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Interest income | $ 8 | $ 7 | $ 14 | $ 15 |
VACATION OWNERSHIP NOTES RECE_5
VACATION OWNERSHIP NOTES RECEIVABLE - Additional Information (Details) $ in Millions | 6 Months Ended | |
Jun. 30, 2019USD ($)credit_score | Dec. 31, 2018USD ($)credit_score | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Vacation ownership notes receivable, net | $ 2,098 | $ 2,039 |
Period in which loan considered past due | 30 days | |
Period in which loan suspend accrual of interest | 90 days | |
Period in which loan considered default loan | 150 days | |
Notes receivable estimated average remaining default rates | 6.94% | 7.01% |
Estimated default rate increases that would have resulted an increase in allowance for credit losses | 0.50% | |
Financing receivable, allowance for credit losses, that would have been increased | $ 7 | $ 7 |
Weighted average FICO score within originated loan pool | credit_score | 711 | 710 |
Average estimated rate of default for all outstanding loans | 12.41% | 12.37% |
Acquired | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Vacation ownership notes receivable, net | $ 545 | $ 651 |
Estimated default rate increases that would have resulted an increase in allowance for credit losses | 0.50% | |
Financing receivable, allowance for credit losses, that would have been increased | $ 2 | $ 1 |
VACATION OWNERSHIP NOTES RECE_6
VACATION OWNERSHIP NOTES RECEIVABLE - Accretable Yield (Details) - Acquired $ in Millions | 6 Months Ended |
Jun. 30, 2019USD ($) | |
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield Movement Schedule [Roll Forward] | |
Balance at Acquisition Date | $ 199 |
Accretion of acquired vacation ownership notes receivable | (43) |
Reclassification from non-accretable difference | (3) |
Balance at September 30, 2018 | 153 |
Non-accretable difference at September 30, 2018 | $ 55 |
VACATION OWNERSHIP NOTES RECE_7
VACATION OWNERSHIP NOTES RECEIVABLE - Future Principal Payments, Net of Reserves, and Interest Rates of Vacation Ownership Notes Receivable (Details) $ in Millions | Jun. 30, 2019USD ($) |
Acquired | |
Future Minimum Payments Receivable [Line Items] | |
2019, remaining | $ 62 |
2020 | 60 |
2021 | 61 |
2022 | 61 |
2023 | 60 |
Thereafter | 241 |
Total Vacation ownership notes receivable, net of reserve | 545 |
Acquired | Non-Securitized Vacation Ownership Notes Receivable | |
Future Minimum Payments Receivable [Line Items] | |
2019, remaining | 7 |
2020 | 7 |
2021 | 8 |
2022 | 8 |
2023 | 8 |
Thereafter | 35 |
Total Vacation ownership notes receivable, net of reserve | 73 |
Acquired | Securitized Vacation Ownership Notes Receivable | |
Future Minimum Payments Receivable [Line Items] | |
2019, remaining | 55 |
2020 | 53 |
2021 | 53 |
2022 | 53 |
2023 | 52 |
Thereafter | 206 |
Total Vacation ownership notes receivable, net of reserve | $ 472 |
Acquired | Weighted Average | |
Future Minimum Payments Receivable [Line Items] | |
Interest rates | 13.40% |
Acquired | Weighted Average | Non-Securitized Vacation Ownership Notes Receivable | |
Future Minimum Payments Receivable [Line Items] | |
Interest rates | 13.50% |
Acquired | Weighted Average | Securitized Vacation Ownership Notes Receivable | |
Future Minimum Payments Receivable [Line Items] | |
Interest rates | 13.40% |
Acquired | Minimum | |
Future Minimum Payments Receivable [Line Items] | |
Interest rates | 0.00% |
Acquired | Minimum | Non-Securitized Vacation Ownership Notes Receivable | |
Future Minimum Payments Receivable [Line Items] | |
Interest rates | 0.00% |
Acquired | Minimum | Securitized Vacation Ownership Notes Receivable | |
Future Minimum Payments Receivable [Line Items] | |
Interest rates | 6.00% |
Acquired | Maximum | |
Future Minimum Payments Receivable [Line Items] | |
Interest rates | 17.90% |
Acquired | Maximum | Non-Securitized Vacation Ownership Notes Receivable | |
Future Minimum Payments Receivable [Line Items] | |
Interest rates | 17.90% |
Acquired | Maximum | Securitized Vacation Ownership Notes Receivable | |
Future Minimum Payments Receivable [Line Items] | |
Interest rates | 16.90% |
Originated | |
Future Minimum Payments Receivable [Line Items] | |
2019, remaining | $ 99 |
2020 | 159 |
2021 | 157 |
2022 | 157 |
2023 | 157 |
Thereafter | 824 |
Total Vacation ownership notes receivable, net of reserve | 1,553 |
Originated | Non-Securitized Vacation Ownership Notes Receivable | |
Future Minimum Payments Receivable [Line Items] | |
2019, remaining | 34 |
2020 | 45 |
2021 | 37 |
2022 | 32 |
2023 | 29 |
Thereafter | 167 |
Total Vacation ownership notes receivable, net of reserve | 344 |
Originated | Securitized Vacation Ownership Notes Receivable | |
Future Minimum Payments Receivable [Line Items] | |
2019, remaining | 65 |
2020 | 114 |
2021 | 120 |
2022 | 125 |
2023 | 128 |
Thereafter | 657 |
Total Vacation ownership notes receivable, net of reserve | $ 1,209 |
Originated | Weighted Average | |
Future Minimum Payments Receivable [Line Items] | |
Interest rates | 12.40% |
Originated | Weighted Average | Non-Securitized Vacation Ownership Notes Receivable | |
Future Minimum Payments Receivable [Line Items] | |
Interest rates | 11.80% |
Originated | Weighted Average | Securitized Vacation Ownership Notes Receivable | |
Future Minimum Payments Receivable [Line Items] | |
Interest rates | 12.60% |
Originated | Minimum | |
Future Minimum Payments Receivable [Line Items] | |
Interest rates | 0.00% |
Originated | Minimum | Non-Securitized Vacation Ownership Notes Receivable | |
Future Minimum Payments Receivable [Line Items] | |
Interest rates | 0.00% |
Originated | Minimum | Securitized Vacation Ownership Notes Receivable | |
Future Minimum Payments Receivable [Line Items] | |
Interest rates | 5.20% |
Originated | Maximum | |
Future Minimum Payments Receivable [Line Items] | |
Interest rates | 18.00% |
Originated | Maximum | Non-Securitized Vacation Ownership Notes Receivable | |
Future Minimum Payments Receivable [Line Items] | |
Interest rates | 18.00% |
Originated | Maximum | Securitized Vacation Ownership Notes Receivable | |
Future Minimum Payments Receivable [Line Items] | |
Interest rates | 17.50% |
VACATION OWNERSHIP NOTES RECE_8
VACATION OWNERSHIP NOTES RECEIVABLE - Notes Receivable Reserves (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2019USD ($) | |
Time Sharing Transactions, Allowance for Uncollectible Accounts [Roll Forward] | |
Beginning balance | $ 140 |
Increase in vacation ownership notes receivable reserve | 46 |
Securitizations | 0 |
Clean-up call | 0 |
Write-offs | (23) |
Defaulted vacation ownership notes receivable repurchase activity | 0 |
Ending balance | 163 |
Non-Securitized Vacation Ownership Notes Receivable | |
Time Sharing Transactions, Allowance for Uncollectible Accounts [Roll Forward] | |
Beginning balance | 61 |
Increase in vacation ownership notes receivable reserve | 38 |
Securitizations | (35) |
Clean-up call | 18 |
Write-offs | (23) |
Defaulted vacation ownership notes receivable repurchase activity | 11 |
Ending balance | 70 |
Securitized Vacation Ownership Notes Receivable | |
Time Sharing Transactions, Allowance for Uncollectible Accounts [Roll Forward] | |
Beginning balance | 79 |
Increase in vacation ownership notes receivable reserve | 8 |
Securitizations | 35 |
Clean-up call | (18) |
Write-offs | 0 |
Defaulted vacation ownership notes receivable repurchase activity | (11) |
Ending balance | $ 93 |
VACATION OWNERSHIP NOTES RECE_9
VACATION OWNERSHIP NOTES RECEIVABLE - Recorded Investment in Non-accrual Notes Receivable that are Ninety Days or More Past Due (Details) - Legacy-MVW - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Financing Receivable, Past Due [Line Items] | |||||
Investment in notes receivable on non-accrual status | $ 49 | $ 49 | $ 45 | ||
Average investment in notes receivable on non-accrual status | 49 | $ 47 | 47 | $ 46 | |
Non-Securitized Vacation Ownership Notes Receivable | |||||
Financing Receivable, Past Due [Line Items] | |||||
Investment in notes receivable on non-accrual status | 41 | 41 | 36 | ||
Average investment in notes receivable on non-accrual status | 39 | 39 | 38 | 39 | |
Securitized Vacation Ownership Notes Receivable | |||||
Financing Receivable, Past Due [Line Items] | |||||
Investment in notes receivable on non-accrual status | 8 | 8 | $ 9 | ||
Average investment in notes receivable on non-accrual status | $ 10 | $ 8 | $ 9 | $ 7 |
VACATION OWNERSHIP NOTES REC_10
VACATION OWNERSHIP NOTES RECEIVABLE - Aging of Recorded Investment in Principal, Vacation Ownership Notes Receivable (Details) - Legacy-MVW - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Financing Receivable, Past Due [Line Items] | ||
Total past due | $ 76 | $ 78 |
Current | 1,383 | 1,325 |
Total vacation ownership notes receivable | 1,459 | 1,403 |
Non-Securitized Vacation Ownership Notes Receivable | ||
Financing Receivable, Past Due [Line Items] | ||
Total past due | 47 | 43 |
Current | 223 | 235 |
Total vacation ownership notes receivable | 270 | 278 |
Securitized Vacation Ownership Notes Receivable | ||
Financing Receivable, Past Due [Line Items] | ||
Total past due | 29 | 35 |
Current | 1,160 | 1,090 |
Total vacation ownership notes receivable | 1,189 | 1,125 |
31 – 90 days past due | ||
Financing Receivable, Past Due [Line Items] | ||
Total past due | 27 | 33 |
31 – 90 days past due | Non-Securitized Vacation Ownership Notes Receivable | ||
Financing Receivable, Past Due [Line Items] | ||
Total past due | 6 | 7 |
31 – 90 days past due | Securitized Vacation Ownership Notes Receivable | ||
Financing Receivable, Past Due [Line Items] | ||
Total past due | 21 | 26 |
91 – 150 days past due | ||
Financing Receivable, Past Due [Line Items] | ||
Total past due | 13 | 12 |
91 – 150 days past due | Non-Securitized Vacation Ownership Notes Receivable | ||
Financing Receivable, Past Due [Line Items] | ||
Total past due | 5 | 3 |
91 – 150 days past due | Securitized Vacation Ownership Notes Receivable | ||
Financing Receivable, Past Due [Line Items] | ||
Total past due | 8 | 9 |
Greater than 150 days past due | ||
Financing Receivable, Past Due [Line Items] | ||
Total past due | 36 | 33 |
Greater than 150 days past due | Non-Securitized Vacation Ownership Notes Receivable | ||
Financing Receivable, Past Due [Line Items] | ||
Total past due | 36 | 33 |
Greater than 150 days past due | Securitized Vacation Ownership Notes Receivable | ||
Financing Receivable, Past Due [Line Items] | ||
Total past due | $ 0 | $ 0 |
VACATION OWNERSHIP NOTES REC_11
VACATION OWNERSHIP NOTES RECEIVABLE - Legacy-ILG Vacation Ownership Notes Receivable, Brand and FICO score (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Acquired | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Vacation Ownership Notes Receivable | $ 545 | $ 651 |
Acquired | Westin | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Vacation Ownership Notes Receivable | 219 | 263 |
Acquired | Sheraton | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Vacation Ownership Notes Receivable | 288 | 345 |
Acquired | Hyatt | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Vacation Ownership Notes Receivable | 31 | 35 |
Acquired | Other | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Vacation Ownership Notes Receivable | 7 | 8 |
Acquired | 700 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Vacation Ownership Notes Receivable | 268 | 323 |
Acquired | 700 | Westin | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Vacation Ownership Notes Receivable | 127 | 154 |
Acquired | 700 | Sheraton | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Vacation Ownership Notes Receivable | 120 | 145 |
Acquired | 700 | Hyatt | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Vacation Ownership Notes Receivable | 17 | 20 |
Acquired | 700 | Other | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Vacation Ownership Notes Receivable | 4 | 4 |
Acquired | 600 - 699 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Vacation Ownership Notes Receivable | 187 | 220 |
Acquired | 600 - 699 | Westin | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Vacation Ownership Notes Receivable | 70 | 82 |
Acquired | 600 - 699 | Sheraton | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Vacation Ownership Notes Receivable | 104 | 124 |
Acquired | 600 - 699 | Hyatt | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Vacation Ownership Notes Receivable | 12 | 13 |
Acquired | 600 - 699 | Other | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Vacation Ownership Notes Receivable | 1 | 1 |
Acquired | 600 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Vacation Ownership Notes Receivable | 26 | 29 |
Acquired | 600 | Westin | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Vacation Ownership Notes Receivable | 5 | 6 |
Acquired | 600 | Sheraton | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Vacation Ownership Notes Receivable | 19 | 21 |
Acquired | 600 | Hyatt | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Vacation Ownership Notes Receivable | 2 | 2 |
Acquired | 600 | Other | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Vacation Ownership Notes Receivable | 0 | 0 |
Acquired | No Score | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Vacation Ownership Notes Receivable | 64 | 79 |
Acquired | No Score | Westin | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Vacation Ownership Notes Receivable | 17 | 21 |
Acquired | No Score | Sheraton | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Vacation Ownership Notes Receivable | 45 | 55 |
Acquired | No Score | Hyatt | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Vacation Ownership Notes Receivable | 0 | 0 |
Acquired | No Score | Other | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Vacation Ownership Notes Receivable | 2 | 3 |
Legacy-ILG | Originated | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Vacation Ownership Notes Receivable | 258 | 126 |
Legacy-ILG | Originated | Westin | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Vacation Ownership Notes Receivable | 123 | 62 |
Legacy-ILG | Originated | Sheraton | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Vacation Ownership Notes Receivable | 121 | 57 |
Legacy-ILG | Originated | Hyatt | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Vacation Ownership Notes Receivable | 14 | 7 |
Legacy-ILG | Originated | 700 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Vacation Ownership Notes Receivable | 147 | 76 |
Legacy-ILG | Originated | 700 | Westin | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Vacation Ownership Notes Receivable | 80 | 43 |
Legacy-ILG | Originated | 700 | Sheraton | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Vacation Ownership Notes Receivable | 58 | 28 |
Legacy-ILG | Originated | 700 | Hyatt | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Vacation Ownership Notes Receivable | 9 | 5 |
Legacy-ILG | Originated | 600 - 699 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Vacation Ownership Notes Receivable | 67 | 30 |
Legacy-ILG | Originated | 600 - 699 | Westin | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Vacation Ownership Notes Receivable | 27 | 11 |
Legacy-ILG | Originated | 600 - 699 | Sheraton | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Vacation Ownership Notes Receivable | 36 | 17 |
Legacy-ILG | Originated | 600 - 699 | Hyatt | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Vacation Ownership Notes Receivable | 4 | 2 |
Legacy-ILG | Originated | 600 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Vacation Ownership Notes Receivable | 9 | 4 |
Legacy-ILG | Originated | 600 | Westin | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Vacation Ownership Notes Receivable | 2 | 1 |
Legacy-ILG | Originated | 600 | Sheraton | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Vacation Ownership Notes Receivable | 6 | 3 |
Legacy-ILG | Originated | 600 | Hyatt | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Vacation Ownership Notes Receivable | 1 | 0 |
Legacy-ILG | Originated | No Score | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Vacation Ownership Notes Receivable | 35 | 16 |
Legacy-ILG | Originated | No Score | Westin | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Vacation Ownership Notes Receivable | 14 | 7 |
Legacy-ILG | Originated | No Score | Sheraton | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Vacation Ownership Notes Receivable | 21 | 9 |
Legacy-ILG | Originated | No Score | Hyatt | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Vacation Ownership Notes Receivable | $ 0 | $ 0 |
VACATION OWNERSHIP NOTES REC_12
VACATION OWNERSHIP NOTES RECEIVABLE - Legacy-ILG Vacation Ownership Notes Receivable (Details) - Legacy-ILG - Originated - ILG - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Receivables | $ 258 | $ 126 |
Current | 252 | 124 |
Delinquent & Defaulted | 6 | 2 |
30-59 Days | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Delinquent & Defaulted | 3 | 2 |
60-89 Days | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Delinquent & Defaulted | 2 | 0 |
90-119 Days | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Delinquent & Defaulted | 1 | 0 |
Greater than 120 Days | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Delinquent & Defaulted | $ 0 | $ 0 |
FINANCIAL INSTRUMENTS - Carryin
FINANCIAL INSTRUMENTS - Carrying Values and Estimated Fair Values (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Carrying Amount | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Originated vacation ownership notes receivable | $ 1,553 | $ 1,388 |
Other assets | 41 | 66 |
Total financial assets | 1,594 | 1,454 |
Total financial liabilities | (3,926) | (3,801) |
Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Originated vacation ownership notes receivable | 1,584 | 1,413 |
Other assets | 41 | 66 |
Total financial assets | 1,625 | 1,479 |
Total financial liabilities | (4,048) | (3,786) |
Securitized | Carrying Amount | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Originated vacation ownership notes receivable | 1,209 | 1,070 |
Securitized | Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Originated vacation ownership notes receivable | 1,238 | 1,093 |
Non-Securitized | Carrying Amount | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Originated vacation ownership notes receivable | 344 | 318 |
Non-Securitized | Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Originated vacation ownership notes receivable | 346 | 320 |
Debt | Carrying Amount | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt instrument, fair value | (1,792) | (1,714) |
Debt | Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt instrument, fair value | (1,820) | (1,718) |
Exchange Notes, net | Carrying Amount | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt instrument, fair value | (88) | (88) |
Exchange Notes, net | Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt instrument, fair value | (89) | (87) |
Senior Unsecured Notes | Carrying Amount | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt instrument, fair value | (742) | (741) |
Senior Unsecured Notes | Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt instrument, fair value | (807) | (726) |
IAC Notes | Carrying Amount | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt instrument, fair value | (141) | (141) |
IAC Notes | Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt instrument, fair value | (140) | (140) |
Convertible Notes | Carrying Amount | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Convertible notes, net | (203) | (199) |
Convertible Notes | Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Convertible notes, net | (221) | (198) |
Non-Interest Bearing Note Payable | Non-interest bearing note payable, net | Carrying Amount | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Non-interest bearing note payable, net | 0 | (30) |
Non-Interest Bearing Note Payable | Non-interest bearing note payable, net | Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Non-interest bearing note payable, net | 0 | (30) |
Originated | Carrying Amount | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Originated vacation ownership notes receivable | 1,553 | 1,388 |
Originated | Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Originated vacation ownership notes receivable | 1,584 | 1,413 |
Corporate Credit Facility | Term Loan | Carrying Amount | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt instrument, fair value | (884) | (888) |
Corporate Credit Facility | Term Loan | Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt instrument, fair value | (895) | (887) |
Corporate Credit Facility | Revolving Corporate Credit Facility, net | Carrying Amount | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt instrument, fair value | (76) | 0 |
Corporate Credit Facility | Revolving Corporate Credit Facility, net | Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt instrument, fair value | $ (76) | $ 0 |
FINANCIAL INSTRUMENTS - Carry_2
FINANCIAL INSTRUMENTS - Carrying Values and Estimated Fair Values - Non-securitized Notes Receivable (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Carrying Amount | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Originated vacation ownership notes receivable | $ 1,553 | $ 1,388 |
Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Originated vacation ownership notes receivable | 1,584 | 1,413 |
Securitized Vacation Ownership Notes Receivable | Carrying Amount | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Originated vacation ownership notes receivable | 1,209 | 1,070 |
Securitized Vacation Ownership Notes Receivable | Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Originated vacation ownership notes receivable | 1,238 | 1,093 |
Non-Securitized Vacation Ownership Notes Receivable | Carrying Amount | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Originated vacation ownership notes receivable | 344 | 318 |
Non-Securitized Vacation Ownership Notes Receivable | Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Originated vacation ownership notes receivable | 346 | 320 |
Non-Securitized Vacation Ownership Notes Receivable | Eligible for securitization | Carrying Amount | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Originated vacation ownership notes receivable | 83 | 85 |
Non-Securitized Vacation Ownership Notes Receivable | Eligible for securitization | Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Originated vacation ownership notes receivable | 85 | 87 |
Non-Securitized Vacation Ownership Notes Receivable | Not eligible for securitization | Carrying Amount | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Originated vacation ownership notes receivable | 261 | 233 |
Non-Securitized Vacation Ownership Notes Receivable | Not eligible for securitization | Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Originated vacation ownership notes receivable | 261 | 233 |
Originated | Carrying Amount | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Originated vacation ownership notes receivable | 1,553 | 1,388 |
Originated | Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Originated vacation ownership notes receivable | $ 1,584 | $ 1,413 |
FINANCIAL INSTRUMENTS - Narrati
FINANCIAL INSTRUMENTS - Narrative (Details) $ in Millions | Jun. 30, 2019USD ($) |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Marketable securities | $ 7 |
Variable Interest Entity | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Cash surrender value of life insurance | $ 34 |
EARNINGS PER SHARE - Additional
EARNINGS PER SHARE - Additional Information (Details) - $ / shares | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
SARs | |||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||
Shares excluded from the calculation of diluted earnings per share (in shares) | 167,760 | 56,649 | 249,737 | 56,649 | |
Exercise Price Securities, Excluded From Computation Of Earnings Per Share | $ 143.38 | $ 143.38 | |||
Private Warrants | |||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||
Exercise price of warrants (in usd per share) | $ 175.79 | $ 175.79 | $ 176.68 | ||
Minimum | SARs | |||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||
Exercise Price Securities, Excluded From Computation Of Earnings Per Share | 100.52 | 97.53 | |||
Maximum | SARs | |||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||
Exercise Price Securities, Excluded From Computation Of Earnings Per Share | $ 143.38 | $ 143.38 |
EARNINGS PER SHARE - Reconcilia
EARNINGS PER SHARE - Reconciliation of Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Net income attributable to common shareholders | $ 49 | $ 11 | $ 73 | $ 47 |
Shares for basic (loss) earnings per share (in shares) | 44,700 | 26,700 | 45,100 | 26,700 |
Basic (loss) earnings per share (in usd per share) | $ 1.11 | $ 0.40 | $ 1.62 | $ 1.75 |
Employee stock options and SARs (in shares) | 300 | 400 | 300 | 400 |
Restricted stock units (in shares) | 200 | 200 | 200 | 200 |
Shares for diluted earnings per share (in shares) | 45,200 | 27,300 | 45,600 | 27,300 |
Diluted (loss) earnings per share (in usd per share) | $ 1.10 | $ 0.39 | $ 1.61 | $ 1.71 |
Performance Shares | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Shares excluded from the calculation of diluted earnings per share (in shares) | 452 | 307 |
INVENTORY - Composition of Inve
INVENTORY - Composition of Inventory (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Inventory Disclosure [Abstract] | ||
Finished goods | $ 828 | $ 843 |
Work-in-progress | 48 | 9 |
Real estate inventory | 876 | 852 |
Other | 12 | 11 |
Inventory | $ 888 | $ 863 |
INVENTORY - Additional Informat
INVENTORY - Additional Information (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Inventory Disclosure [Abstract] | ||
Real estate inventory, increase (decrease) true up (less than) | $ 4 | $ 1 |
Amount of completed vacation ownership units classified as property and equipment | $ 48 |
PROPERTY AND EQUIPMENT (Details
PROPERTY AND EQUIPMENT (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |||||
Land and land improvements | $ 373 | $ 373 | $ 466 | ||
Buildings and leasehold improvements | 403 | 403 | 404 | ||
Furniture, fixtures and other equipment | 87 | 87 | 88 | ||
Information technology | 311 | 311 | 297 | ||
Construction in progress | 38 | 38 | 32 | ||
Property, plant and equipment, gross | 1,212 | 1,212 | 1,287 | ||
Accumulated depreciation | (375) | (375) | (336) | ||
Property, plant and equipment, net | 837 | 837 | $ 951 | ||
Property, plant and equipment to be sold | 10 | ||||
Impairment | $ 0 | $ 0 | $ 26 | $ 0 |
CONTINGENCIES AND COMMITMENTS (
CONTINGENCIES AND COMMITMENTS (Details) | 1 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||||
Aug. 02, 2019USD ($) | Jun. 30, 2018USD ($) | Jun. 30, 2019USD ($)vacation_ownership_unit | Mar. 31, 2019USD ($) | Jun. 30, 2018USD ($) | Jun. 30, 2019USD ($)vacation_ownership_unit | Jun. 30, 2018USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Sep. 30, 2017Property | |
Commitments and Contingencies Disclosure [Line Items] | ||||||||||
Commitments to subsidize associations | $ 3,000,000 | $ 3,000,000 | ||||||||
Finance leases, future minimum payments due | 23,000,000 | 23,000,000 | ||||||||
Surety bonds issued | 78,000,000 | 78,000,000 | ||||||||
Vacation ownership projects currently under development | 17,000,000 | 17,000,000 | ||||||||
Time share, accrued costs | (3,000,000) | (3,000,000) | ||||||||
Estimate of possible loss | $ 10,000,000 | |||||||||
Recovery of funds | $ (6,000,000) | |||||||||
Litigation charges | 1,000,000 | $ 16,000,000 | 2,000,000 | $ 16,000,000 | ||||||
Settled Litigation | ||||||||||
Commitments and Contingencies Disclosure [Line Items] | ||||||||||
Proceeds from legal settlements | 3,000,000 | |||||||||
Litigation charges | 3,000,000 | 3,000,000 | ||||||||
Revolving corporate credit facility, net | ||||||||||
Commitments and Contingencies Disclosure [Line Items] | ||||||||||
Letters of credit outstanding | 4,000,000 | 4,000,000 | ||||||||
Letter of Credit | ||||||||||
Commitments and Contingencies Disclosure [Line Items] | ||||||||||
Letters of credit outstanding | 4,000,000 | 4,000,000 | ||||||||
Revolving corporate credit facility, net | Corporate Credit Facility | ||||||||||
Commitments and Contingencies Disclosure [Line Items] | ||||||||||
Credit facility | 600,000,000 | 600,000,000 | ||||||||
New York City, New York | ||||||||||
Commitments and Contingencies Disclosure [Line Items] | ||||||||||
Purchase commitment | 182,000,000 | 182,000,000 | ||||||||
Purchase commitment obligation due, 2020 | 120,000,000 | 120,000,000 | ||||||||
Purchase commitment obligation due, 2021 | 62,000,000 | 62,000,000 | ||||||||
Bali Indonesia Resort Two | ||||||||||
Commitments and Contingencies Disclosure [Line Items] | ||||||||||
Purchase commitment obligation due, 2019 | 7,000,000 | 7,000,000 | ||||||||
Purchase commitment obligation due, 2020 | 23,000,000 | 23,000,000 | ||||||||
Purchase commitment obligation due, 2021 | $ 2,000,000 | $ 2,000,000 | ||||||||
Number of vacation ownership units expected to be acquired | vacation_ownership_unit | 88 | 88 | ||||||||
San Francisco, California | ||||||||||
Commitments and Contingencies Disclosure [Line Items] | ||||||||||
Purchase commitment | $ 158,000,000 | $ 158,000,000 | ||||||||
Purchase commitment obligation due, 2019 | 57,000,000 | 57,000,000 | ||||||||
Purchase commitment obligation due, 2020 | 55,000,000 | 55,000,000 | ||||||||
Purchase commitment obligation due, 2021 | 46,000,000 | 46,000,000 | ||||||||
Finance leases, future minimum payments due | 9,000,000 | 9,000,000 | ||||||||
Facility And Other Operating Leases | New York City, New York | ||||||||||
Commitments and Contingencies Disclosure [Line Items] | ||||||||||
Finance leases, future minimum payments due | 7,000,000 | 7,000,000 | ||||||||
Information technology hardware and software | ||||||||||
Commitments and Contingencies Disclosure [Line Items] | ||||||||||
Purchase commitment | 62,000,000 | 62,000,000 | ||||||||
Purchase commitment obligation due, 2019 | 19,000,000 | 19,000,000 | ||||||||
Purchase commitment obligation due, 2020 | 19,000,000 | 19,000,000 | ||||||||
Purchase commitment obligation due, 2021 | 10,000,000 | 10,000,000 | ||||||||
Purchase commitment obligation due, 2022 | 7,000,000 | 7,000,000 | ||||||||
Purchase commitment obligation due, 2023 | 6,000,000 | 6,000,000 | ||||||||
Purchase commitment obligation due, thereafter | 1,000,000 | 1,000,000 | ||||||||
Insurance Claim, Hurricane Irma | ||||||||||
Commitments and Contingencies Disclosure [Line Items] | ||||||||||
Insurance receivable | 10,000,000 | 10,000,000 | ||||||||
Hurricane | ||||||||||
Commitments and Contingencies Disclosure [Line Items] | ||||||||||
Number of other resorts and lodging properties (more than) | Property | 20 | |||||||||
Gains, property damage | $ 1,000,000 | |||||||||
Gain on business interruption insurance recovery | $ 9,000,000 | 32,000,000 | ||||||||
Business interruption insurance recovery, deductible | $ (3,000,000) | |||||||||
Subsequent Event | San Francisco, California | ||||||||||
Commitments and Contingencies Disclosure [Line Items] | ||||||||||
Capital expenditures for property and equipment | $ 57,000,000 | |||||||||
Exchange & Third-Party Management | ||||||||||
Commitments and Contingencies Disclosure [Line Items] | ||||||||||
Guarantor obligations, maximum exposure | 37,000,000 | 37,000,000 | ||||||||
Guarantor obligations, maximum exposure. due remainder of fiscal year | 8,000,000 | 8,000,000 | ||||||||
Guarantor obligations, maximum exposure, due in second year | 10,000,000 | 10,000,000 | ||||||||
Guarantor obligations, maximum exposure, due in third year | 9,000,000 | 9,000,000 | ||||||||
Guarantor obligations, maximum exposure, due in fourth year | 4,000,000 | 4,000,000 | ||||||||
Guarantor obligations, maximum exposure, due in five year | 2,000,000 | 2,000,000 | ||||||||
Guarantor obligations, maximum exposure, due after fifth year | 4,000,000 | 4,000,000 | ||||||||
Other Guarantees | ||||||||||
Commitments and Contingencies Disclosure [Line Items] | ||||||||||
Guarantor obligations, maximum exposure | $ 4,000,000 | $ 4,000,000 |
LEASES - Additional Information
LEASES - Additional Information (Details) | Jun. 30, 2019 |
Land Lease | Minimum | |
Lessee, Lease, Description [Line Items] | |
Initial term of most leases (up to) | 30 years |
Land Lease | Maximum | |
Lessee, Lease, Description [Line Items] | |
Initial term of most leases (up to) | 50 years |
Facilities | Minimum | |
Lessee, Lease, Description [Line Items] | |
Initial term of most leases (up to) | 9 years |
Facilities | Maximum | |
Lessee, Lease, Description [Line Items] | |
Initial term of most leases (up to) | 14 years |
LEASES - Carrying Values of Lea
LEASES - Carrying Values of Leases (Details) $ in Millions | Jun. 30, 2019USD ($) |
Leases [Abstract] | |
Operating lease assets | $ 121 |
Finance lease assets | 22 |
Total lease assets | 143 |
Present value of lease liabilities | 134 |
Finance lease liabilities | 22 |
Present value of lease liabilities | $ 156 |
LEASES - Lease Costs (Details)
LEASES - Lease Costs (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended |
Jun. 30, 2019 | Jun. 30, 2019 | |
Leases [Abstract] | ||
Operating lease cost | $ 9 | $ 17 |
Amortization of right-of-use assets | 1 | 2 |
Interest on lease liabilities | 1 | 1 |
Variable lease cost | 1 | 2 |
Total lease cost | $ 12 | $ 22 |
LEASES - Maturities of Operatin
LEASES - Maturities of Operating and Financing Lease Liabilities (Details) $ in Millions | Jun. 30, 2019USD ($) |
Operating Leases | |
2019, remaining | $ 15 |
2020 | 29 |
2021 | 21 |
2022 | 18 |
2023 | 16 |
Thereafter | 103 |
Total lease payments | 202 |
Less: Imputed interest | (68) |
Present value of lease liabilities | 134 |
Finance Leases | |
2019, remaining | 11 |
2020 | 10 |
2021 | 2 |
2022 | 0 |
2023 | 0 |
Thereafter | 0 |
Total lease payments | 23 |
Less: Imputed interest | (1) |
Present value of lease liabilities | 22 |
Total | |
2019, remaining | 26 |
2020 | 39 |
2021 | 23 |
2022 | 18 |
2023 | 16 |
Thereafter | 103 |
Total lease payments | 225 |
Less: Imputed interest | (69) |
Present value of lease liabilities | 156 |
New York City and San Fransisco | |
Finance Leases | |
Total lease payments | $ 17 |
LEASES - Lease Term and Discoun
LEASES - Lease Term and Discount Rate (Details) | Jun. 30, 2019 |
Weighted-average remaining lease term (in years) | |
Operating leases | 11 years 4 months 24 days |
Finance leases | 10 months 24 days |
Weighted-average discount rate | |
Operating leases | 6.10% |
Finance leases | 4.80% |
LEASES - Other Information (Det
LEASES - Other Information (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2019USD ($) | |
Leases [Abstract] | |
Operating cash flows for finance leases | $ 0 |
Operating cash flows for operating leases | 17 |
Financing cash flows for finance leases | 2 |
Total | $ 19 |
SECURITIZED DEBT - Vacation Own
SECURITIZED DEBT - Vacation Ownership Notes Receivable Securitizations (Details) - USD ($) | Jun. 30, 2019 | Dec. 31, 2018 |
Debt Instrument [Line Items] | ||
Securitized debt, net | $ 1,792,000,000 | $ 1,714,000,000 |
Secured Debt, Net | 1,792,000,000 | 1,714,000,000 |
Debt | Warehouse Credit Facility | ||
Debt Instrument [Line Items] | ||
Unamortized debt issuance costs | 1,000,000 | |
Debt | Other | ||
Debt Instrument [Line Items] | ||
Secured Debt, Net | 20,000,000 | 20,000,000 |
Variable Interest Entity | ||
Debt Instrument [Line Items] | ||
Securitized debt, net | 1,787,000,000 | 1,706,000,000 |
Variable Interest Entity | Debt | ||
Debt Instrument [Line Items] | ||
Securitized debt, net | 1,787,000,000 | 1,590,000,000 |
Unamortized debt discount and issuance costs | (15,000,000) | (11,000,000) |
Secured Debt, Net | $ 1,772,000,000 | 1,579,000,000 |
Debt, weighted average interest rate | 2.90% | |
Variable Interest Entity | Debt | Minimum | ||
Debt Instrument [Line Items] | ||
Debt, stated interest rate | 2.20% | |
Variable Interest Entity | Debt | Maximum | ||
Debt Instrument [Line Items] | ||
Debt, stated interest rate | 6.30% | |
Variable Interest Entity | Debt | Warehouse Credit Facility | ||
Debt Instrument [Line Items] | ||
Securitized debt, net | $ 0 | 116,000,000 |
Unamortized debt issuance costs | 0 | 1,000,000 |
Secured Debt, Net | $ 0 | $ 115,000,000 |
SECURITIZED DEBT - Narrative (D
SECURITIZED DEBT - Narrative (Details) | Jul. 12, 2019USD ($) | May 23, 2019USD ($) | Jun. 30, 2019USD ($)Loan | Jun. 30, 2019USD ($)Loan | Mar. 31, 2019USD ($) | Dec. 31, 2018USD ($) |
Debt Instrument [Line Items] | ||||||
Values of vacation ownership notes receivable that were purchased by trust during the period | $ (459,000,000) | $ (85,000,000) | ||||
Restricted cash | $ 337,000,000 | $ 337,000,000 | $ 383,000,000 | |||
Number of notes receivable pools under performance triggers | Loan | 0 | |||||
Number of notes receivable pools out of compliance | Loan | 0 | 0 | ||||
Number of notes receivable pools outstanding | Loan | 12 | 12 | ||||
Securitized debt, net | $ 1,792,000,000 | $ 1,792,000,000 | 1,714,000,000 | |||
Warehouse Credit Facility | ||||||
Debt Instrument [Line Items] | ||||||
Proceeds from vacation ownership notes receivable securitizations | $ 124,000,000 | |||||
Values of vacation ownership notes receivable that were securitized during the period | $ 146,000,000 | |||||
Advance rate for securitization | 85.00% | |||||
Cash flows between transferee and transferor proceeds | $ 123,000,000 | |||||
Cash flows between transferee and transfer or funding of restricted cash | $ (1,000,000) | |||||
Warehouse Credit Facility | ||||||
Debt Instrument [Line Items] | ||||||
Credit facility | 250,000,000 | 250,000,000 | ||||
Variable Interest Entity, Not Primary Beneficiary | MVW 2019-1 LLC | ||||||
Debt Instrument [Line Items] | ||||||
Values of vacation ownership notes receivable that were purchased by trust during the period | (367,000,000) | |||||
Variable Interest Entity | ||||||
Debt Instrument [Line Items] | ||||||
Restricted cash | 80,000,000 | 80,000,000 | 69,000,000 | |||
Securitized debt, net | $ 1,787,000,000 | 1,787,000,000 | 1,706,000,000 | |||
Variable Interest Entity | MVW 2019-1 LLC | ||||||
Debt Instrument [Line Items] | ||||||
Cash flows between transferee and transfer or funding of restricted cash | $ 84,000,000 | |||||
Secured Debt [Member] | MVW 2019-1 LLC | ||||||
Debt Instrument [Line Items] | ||||||
Proceeds from vacation ownership notes receivable securitizations | $ 450,000,000 | |||||
Debt, stated interest rate | 2.94% | 2.94% | ||||
Secured Debt [Member] | MVW 2019-1 LLC | Class A Notes | ||||||
Debt Instrument [Line Items] | ||||||
Principal amount | $ 350,000,000 | $ 350,000,000 | ||||
Debt, stated interest rate | 2.89% | 2.89% | ||||
Secured Debt [Member] | MVW 2019-1 LLC | Class B Notes | ||||||
Debt Instrument [Line Items] | ||||||
Principal amount | $ 67,000,000 | $ 67,000,000 | ||||
Debt, stated interest rate | 3.00% | 3.00% | ||||
Secured Debt [Member] | MVW 2019-1 LLC | Class C Notes | ||||||
Debt Instrument [Line Items] | ||||||
Principal amount | $ 33,000,000 | $ 33,000,000 | ||||
Debt, stated interest rate | 3.33% | 3.33% | ||||
Secured Debt [Member] | Variable Interest Entity | ||||||
Debt Instrument [Line Items] | ||||||
Securitized debt, net | $ 1,787,000,000 | $ 1,787,000,000 | 1,590,000,000 | |||
Secured Debt [Member] | Variable Interest Entity | Warehouse Credit Facility | ||||||
Debt Instrument [Line Items] | ||||||
Securitized debt, net | 0 | 0 | $ 116,000,000 | |||
Subsequent Event | MVW 2019-1 LLC | ||||||
Debt Instrument [Line Items] | ||||||
Values of vacation ownership notes receivable that were purchased by trust during the period | $ (7,000,000) | |||||
Decrease in restricted cash | $ (6,000,000) | |||||
Restricted cash | Variable Interest Entity | MVW 2019-1 LLC | ||||||
Debt Instrument [Line Items] | ||||||
Restricted cash | $ 6,000,000 | $ 6,000,000 |
SECURITIZED DEBT - Future Payme
SECURITIZED DEBT - Future Payments Vacation Ownership Notes Receivable Securitizations (Details) $ in Millions | Jun. 30, 2019USD ($) |
Debt Instrument [Line Items] | |
2020 | $ 9 |
2021 | 9 |
2022 | 239 |
2023 | 319 |
Thereafter | 1,605 |
Debt | |
Debt Instrument [Line Items] | |
2019, remaining | 129 |
2020 | 227 |
2021 | 204 |
2022 | 194 |
2023 | 188 |
Thereafter | 865 |
Net carrying amount of the liability component | 1,807 |
Debt | Other | |
Debt Instrument [Line Items] | |
2019, remaining | 1 |
2020 | 2 |
2021 | 2 |
2022 | 3 |
2023 | 3 |
Thereafter | 9 |
Net carrying amount of the liability component | 20 |
Debt | Variable Interest Entity | |
Debt Instrument [Line Items] | |
2019, remaining | 128 |
2020 | 225 |
2021 | 202 |
2022 | 191 |
2023 | 185 |
Thereafter | 856 |
Net carrying amount of the liability component | $ 1,787 |
DEBT - Debt Balances, Net of Un
DEBT - Debt Balances, Net of Unamortized Debt Issuance Costs (Details) - USD ($) | Jun. 30, 2019 | Dec. 31, 2018 |
Debt Instrument [Line Items] | ||
Debt, gross | $ 2,185,000,000 | |
Net carrying amount of the liability component | 2,157,000,000 | $ 2,104,000,000 |
Finance lease liabilities | 22,000,000 | |
Carrying Amount | ||
Debt Instrument [Line Items] | ||
Net carrying amount of the liability component | 2,157,000,000 | 2,104,000,000 |
Finance lease liabilities | 23,000,000 | 17,000,000 |
Exchange Notes, net | Senior Notes | ||
Debt Instrument [Line Items] | ||
Debt, gross | 89,000,000 | |
Exchange Notes, net | Senior Notes | Carrying Amount | ||
Debt Instrument [Line Items] | ||
Debt, gross | 89,000,000 | 89,000,000 |
Unamortized debt issuance costs | (1,000,000) | (1,000,000) |
Net carrying amount of the liability component | 88,000,000 | 88,000,000 |
Senior Unsecured Notes | Senior Notes | ||
Debt Instrument [Line Items] | ||
Debt, gross | 750,000,000 | |
Senior Unsecured Notes | Senior Notes | Carrying Amount | ||
Debt Instrument [Line Items] | ||
Debt, gross | 750,000,000 | 750,000,000 |
Unamortized debt issuance costs | (8,000,000) | (9,000,000) |
Net carrying amount of the liability component | 742,000,000 | 741,000,000 |
IAC Notes | ||
Debt Instrument [Line Items] | ||
Net carrying amount of the liability component | 2,104,000,000 | |
IAC Notes | Senior Notes | ||
Debt Instrument [Line Items] | ||
Debt, gross | 141,000,000 | |
IAC Notes | Senior Notes | Carrying Amount | ||
Debt Instrument [Line Items] | ||
Debt, gross | 141,000,000 | 141,000,000 |
Revolving Corporate Credit Facility, net | ||
Debt Instrument [Line Items] | ||
Debt, gross | 80,000,000 | |
Convertible Notes | Convertible Debt | ||
Debt Instrument [Line Items] | ||
Debt, gross | 230,000,000 | 230,000,000 |
Unamortized debt issuance costs | (4,000,000) | (5,000,000) |
Unamortized discount | (23,000,000) | (26,000,000) |
Net carrying amount of the liability component | 203,000,000 | 199,000,000 |
Convertible Notes | Convertible Debt | Carrying Amount | ||
Debt Instrument [Line Items] | ||
Debt, gross | 230,000,000 | 230,000,000 |
Unamortized debt discount and issuance costs | (27,000,000) | (31,000,000) |
Net carrying amount of the liability component | 203,000,000 | 199,000,000 |
Non-Interest Bearing Note Payable | Non-interest bearing note payable, net | Carrying Amount | ||
Debt Instrument [Line Items] | ||
Debt, gross | 0 | 31,000,000 |
Unamortized discount | 0 | (1,000,000) |
Net carrying amount of the liability component | 0 | 30,000,000 |
Corporate Credit Facility | Term Loan | ||
Debt Instrument [Line Items] | ||
Debt, gross | 895,000,000 | 900,000,000 |
Unamortized debt discount and issuance costs | (11,000,000) | (12,000,000) |
Net carrying amount of the liability component | 884,000,000 | 888,000,000 |
Corporate Credit Facility | Revolving Corporate Credit Facility, net | ||
Debt Instrument [Line Items] | ||
Debt, gross | 80,000,000 | 0 |
Unamortized debt issuance costs | (4,000,000) | 0 |
Net carrying amount of the liability component | $ 76,000,000 | 0 |
Debt issuance costs | 4,000,000 | |
Credit facility, amount outstanding | $ 0 |
DEBT - Scheduled Future Princip
DEBT - Scheduled Future Principal Payments for Debt (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Long Term Debt Maturities Repayments Of Principal [Line Items] | ||
2019, remaining | $ 4 | |
2020 | 9 | |
2021 | 9 | |
2022 | 239 | |
2023 | 319 | |
Thereafter | 1,605 | |
Total principal payments | 2,185 | |
Revolving Corporate Credit Facility, net | ||
Long Term Debt Maturities Repayments Of Principal [Line Items] | ||
2019, remaining | 0 | |
2020 | 0 | |
2021 | 0 | |
2022 | 0 | |
2023 | 80 | |
Thereafter | 0 | |
Total principal payments | 80 | |
Senior Notes | Exchange Notes, net | ||
Long Term Debt Maturities Repayments Of Principal [Line Items] | ||
2019, remaining | 0 | |
2020 | 0 | |
2021 | 0 | |
2022 | 0 | |
2023 | 89 | |
Thereafter | 0 | |
Total principal payments | 89 | |
Senior Notes | Senior Unsecured Notes | ||
Long Term Debt Maturities Repayments Of Principal [Line Items] | ||
2019, remaining | 0 | |
2020 | 0 | |
2021 | 0 | |
2022 | 0 | |
2023 | 0 | |
Thereafter | 750 | |
Total principal payments | 750 | |
Senior Notes | IAC Notes | ||
Long Term Debt Maturities Repayments Of Principal [Line Items] | ||
2019, remaining | 0 | |
2020 | 0 | |
2021 | 0 | |
2022 | 0 | |
2023 | 141 | |
Thereafter | 0 | |
Total principal payments | 141 | |
Convertible Debt | Convertible Notes | ||
Long Term Debt Maturities Repayments Of Principal [Line Items] | ||
2019, remaining | 0 | |
2020 | 0 | |
2021 | 0 | |
2022 | 230 | |
2023 | 0 | |
Thereafter | 0 | |
Total principal payments | 230 | $ 230 |
Corporate Credit Facility | Term Loan | ||
Long Term Debt Maturities Repayments Of Principal [Line Items] | ||
2019, remaining | 4 | |
2020 | 9 | |
2021 | 9 | |
2022 | 9 | |
2023 | 9 | |
Thereafter | 855 | |
Total principal payments | 895 | 900 |
Corporate Credit Facility | Revolving Corporate Credit Facility, net | ||
Long Term Debt Maturities Repayments Of Principal [Line Items] | ||
Total principal payments | $ 80 | $ 0 |
DEBT - Additional Information (
DEBT - Additional Information (Details) | Jun. 30, 2019USD ($)$ / sharesshares | May 09, 2019$ / shares | Feb. 15, 2019$ / shares | Jun. 30, 2019USD ($)$ / sharesshares | Mar. 31, 2019 | Jun. 30, 2018$ / shares | Jun. 30, 2019USD ($)$ / sharesshares | Jun. 30, 2018$ / shares | Dec. 31, 2018$ / shares | Mar. 31, 2018shares |
Debt Disclosure [Line Items] | ||||||||||
Reclassification to Income Statement (less than) | $ 1,000,000 | |||||||||
Dividend per share (in usd per share) | $ / shares | $ 0.45 | $ 0.45 | $ 0.45 | $ 0.40 | $ 0.90 | $ 0.80 | ||||
Debt instrument, convertible, remaining discount amortization period | 3 years 2 months 12 days | |||||||||
IAC Notes | Senior Notes | ||||||||||
Debt Disclosure [Line Items] | ||||||||||
Principal amount | $ 350,000,000 | $ 350,000,000 | $ 350,000,000 | |||||||
Debt, stated interest rate | 5.625% | 5.625% | 5.625% | |||||||
Exchange Notes, net | Senior Notes | ||||||||||
Debt Disclosure [Line Items] | ||||||||||
Debt, stated interest rate | 5.625% | 5.625% | 5.625% | |||||||
Senior Unsecured Notes | Senior Notes | ||||||||||
Debt Disclosure [Line Items] | ||||||||||
Principal amount | $ 750,000,000 | $ 750,000,000 | $ 750,000,000 | |||||||
Debt, stated interest rate | 6.50% | 6.50% | 6.50% | |||||||
Convertible Notes | Convertible Debt | ||||||||||
Debt Disclosure [Line Items] | ||||||||||
Principal amount | $ 230,000,000 | $ 230,000,000 | $ 230,000,000 | |||||||
Debt, stated interest rate | 1.50% | 1.50% | 1.50% | |||||||
Conversion ratio | 0.0000067825 | 0.0000067482 | ||||||||
Debt instrument, convertible, conversion price (in usd per share) | $ / shares | $ 147.44 | $ 147.44 | $ 147.44 | $ 148.19 | ||||||
Interest rate, effective percentage | 4.70% | 4.70% | 4.70% | |||||||
Term Loan | Corporate Credit Facility | ||||||||||
Debt Disclosure [Line Items] | ||||||||||
Credit facility | $ 900,000,000 | $ 900,000,000 | $ 900,000,000 | |||||||
Revolving corporate credit facility, net | Corporate Credit Facility | ||||||||||
Debt Disclosure [Line Items] | ||||||||||
Credit facility | 600,000,000 | 600,000,000 | 600,000,000 | |||||||
Revolving corporate credit facility, net | Letter of Credit | Corporate Credit Facility | ||||||||||
Debt Disclosure [Line Items] | ||||||||||
Credit facility | $ 75,000,000 | $ 75,000,000 | $ 75,000,000 | |||||||
Convertible Note Hedges | ||||||||||
Debt Disclosure [Line Items] | ||||||||||
Option indexed to issuer's equity, indexed shares (in shares) | shares | 1,550,000 | |||||||||
Convertible note hedges exercised (in shares) | shares | 0 | 0 | 0 | |||||||
Private Warrants | ||||||||||
Debt Disclosure [Line Items] | ||||||||||
Number of securities called by warrants (in shares) | shares | 1,550,000 | |||||||||
Number of warrants exercised (in shares) | shares | 0 | 0 | 0 | |||||||
Exercise price of warrants (in usd per share) | $ / shares | $ 175.79 | $ 175.79 | $ 175.79 | $ 176.68 | ||||||
Minimum | Revolving corporate credit facility, net | Corporate Credit Facility | ||||||||||
Debt Disclosure [Line Items] | ||||||||||
Basis spread on variable rate | 0.50% | |||||||||
Commitment fee percentage | 0.20% | |||||||||
Maximum | Revolving corporate credit facility, net | Corporate Credit Facility | ||||||||||
Debt Disclosure [Line Items] | ||||||||||
Basis spread on variable rate | 2.75% | |||||||||
Commitment fee percentage | 0.40% | |||||||||
London Interbank Offered Rate (LIBOR) | Term Loan | Corporate Credit Facility | ||||||||||
Debt Disclosure [Line Items] | ||||||||||
Basis spread on variable rate | 2.25% | |||||||||
Interest Rate Swap, September 2023 | ||||||||||
Debt Disclosure [Line Items] | ||||||||||
Derivative, notional amount | $ 250,000,000 | $ 250,000,000 | $ 250,000,000 | |||||||
Derivative, fixed interest rate | 2.9625% | 2.9625% | 2.9625% | |||||||
Interest Rate Swap, April 2024 | ||||||||||
Debt Disclosure [Line Items] | ||||||||||
Derivative, notional amount | $ 200,000,000 | $ 200,000,000 | $ 200,000,000 | |||||||
Derivative, fixed interest rate | 2.248% | 2.248% | 2.248% | |||||||
Interest Rate Contract | ||||||||||
Debt Disclosure [Line Items] | ||||||||||
Derivative, notional amount | $ 100,000,000 | $ 100,000,000 | $ 100,000,000 | |||||||
Cap strike rate | 2.50% | 2.50% | 2.50% | |||||||
Floor strike rate | 1.881% | 1.881% | 1.881% |
DEBT - Net Carrying Value Of Th
DEBT - Net Carrying Value Of The Convertible Notes (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Debt Instrument [Line Items] | ||
Principal amount | $ 2,185 | |
Net carrying amount of the liability component | 2,157 | $ 2,104 |
Convertible Debt | Convertible Notes | ||
Debt Instrument [Line Items] | ||
Principal amount | 230 | 230 |
Unamortized debt discount | (23) | (26) |
Unamortized debt issuance costs | (4) | (5) |
Net carrying amount of the liability component | 203 | 199 |
Carrying amount of equity component, net of issuance costs | $ 33 | $ 33 |
DEBT - Interest Expense Related
DEBT - Interest Expense Related To The Convertible Notes (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Debt Instrument [Line Items] | ||||
Interest Expense, Debt | $ 35 | $ 5 | $ 69 | $ 9 |
Convertible Debt | Convertible Notes | ||||
Debt Instrument [Line Items] | ||||
Contractual interest expense | 0 | 1 | 1 | 2 |
Amortization of debt discount | 1 | 2 | 3 | 3 |
Amortization of debt issuance costs | 1 | 0 | 1 | 0 |
Interest Expense, Debt | $ 2 | $ 3 | $ 5 | $ 5 |
DEBT - Accumulated Other Compre
DEBT - Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jun. 30, 2019 | Mar. 31, 2019 | |
Derivative Instrument Adjustments | ||
Beginning balance | $ 3,461 | |
Ending balance | $ 3,264 | |
Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent | ||
Derivative Instrument Adjustments | ||
Beginning balance | (9) | (6) |
Other comprehensive loss before reclassifications | (13) | (3) |
Reclassification to Income Statement | 0 | 0 |
Net other comprehensive loss | (13) | (3) |
Ending balance | $ (22) | $ (9) |
SHAREHOLDERS' EQUITY - Addition
SHAREHOLDERS' EQUITY - Additional Information (Details) - USD ($) $ / shares in Units, $ in Millions | Aug. 01, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 |
Stockholders Equity Note [Line Items] | ||||||||
Common stock, shares authorized (in shares) | 100,000,000 | 100,000,000 | ||||||
Common stock, par (in dollars per share) | $ 0.01 | $ 0.01 | ||||||
Common stock, shares issued (in shares) | 57,862,278 | 57,800,000 | 57,600,000 | 57,626,462 | 37,000,000 | 37,000,000 | 36,900,000 | |
Common stock, shares outstanding (in shares) | 43,882,669 | 45,992,731 | ||||||
Treasury stock, shares (in shares) | 13,979,609 | 11,633,731 | ||||||
Preferred stock, shares authorized (in shares) | 2,000,000 | 2,000,000 | ||||||
Preferred stock, par value (in usd per share) | $ 0.01 | $ 0.01 | ||||||
Preferred stock, issued (in shares) | 0 | 0 | ||||||
Preferred stock, outstanding (in shares) | 0 | 0 | ||||||
Share repurchase program, number of common stock authorized to be repurchased (in shares) | 14,900,000 | |||||||
Shares remained available for repurchase under the program (in shares) | 600,000 | |||||||
Noncontrolling interests | $ 6 | $ 5 | ||||||
Property Owners Associations | ||||||||
Stockholders Equity Note [Line Items] | ||||||||
Noncontrolling interests | $ 10 | |||||||
Subsequent Event | ||||||||
Stockholders Equity Note [Line Items] | ||||||||
Number of additional shares authorized to be repurchased (in shares) | 4,500,000 |
SHAREHOLDERS' EQUITY - Summary
SHAREHOLDERS' EQUITY - Summary of Stock Repurchase Activity (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Mar. 31, 2019 | Mar. 31, 2018 | Jun. 30, 2019 | |
Stock Repurchase [Roll Forward] | ||||
Number of Shares Repurchased (in shares) | 11,633,731 | 11,633,731 | ||
Repurchase of common stock (in shares) | 0 | 0 | 0 | |
Cost of Shares Repurchased | $ 109 | $ 106 | $ 2 | |
Number of Shares Repurchased (in shares) | 13,979,609 | 13,979,609 | ||
Treasury Stock | ||||
Stock Repurchase [Roll Forward] | ||||
Number of Shares Repurchased (in shares) | 11,687,774 | 11,687,774 | ||
Cost of Shares Repurchased | $ 793 | $ 793 | ||
Average Price Paid per Share (in usd per share) | $ 67.85 | $ 67.85 | ||
Repurchase of common stock (in shares) | 2,358,808 | |||
Cost of Shares Repurchased | $ 109 | $ 106 | $ 2 | $ 215 |
Average Price Paid per Share (in usd per share) | $ 91.12 | |||
Number of Shares Repurchased (in shares) | 14,046,582 | 14,046,582 | ||
Cost of Shares Repurchased | $ 1,008 | $ 1,008 | ||
Average Price Paid per Share (in usd per share) | $ 71.76 | $ 71.76 |
SHAREHOLDERS' EQUITY - Cash Div
SHAREHOLDERS' EQUITY - Cash Dividend Declared (Details) - $ / shares | May 09, 2019 | Feb. 15, 2019 | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 |
Equity [Abstract] | ||||||
Dividend per share (in usd per share) | $ 0.45 | $ 0.45 | $ 0.45 | $ 0.40 | $ 0.90 | $ 0.80 |
SHARE-BASED COMPENSATION - Addi
SHARE-BASED COMPENSATION - Additional Information (Details) | Sep. 01, 2018USD ($)$ / sharesshares | Jun. 30, 2019USD ($)$ / sharesshares | Jun. 30, 2018USD ($) | Jun. 30, 2019USD ($)$ / sharesshares | Jun. 30, 2018USD ($) | Dec. 31, 2018USD ($) |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based compensation expense | $ 11,000,000 | $ 6,000,000 | $ 20,000,000 | $ 10,000,000 | ||
Payroll and benefits liability | $ 172,000,000 | $ 172,000,000 | $ 211,000,000 | |||
Stock options | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Shares authorized for issuance under the plan (in shares) | shares | 6,000,000 | 6,000,000 | ||||
Shares available for grants under the plan (in shares) | shares | 1,000,000 | 1,000,000 | ||||
Share-based compensation expense | $ 0 | 0 | $ 0 | 0 | ||
Restricted stock units | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based compensation expense | 10,000,000 | 6,000,000 | $ 18,000,000 | 9,000,000 | ||
Restricted stock units | Employees and Non Employee Directors | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock awards, grants in period (in shares) | shares | 189,300 | |||||
Stock awards granted, weighted average (in usd per share) grant date fair value | $ / shares | $ 96.25 | |||||
Performance-based RSUs | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Maximum amount of RSU subject to vesting (in shares) | shares | 287,876 | |||||
Share-based compensation expense | 2,000,000 | 2,000,000 | $ 3,000,000 | 3,000,000 | ||
SARs | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock awards, grants in period (in shares) | shares | 111,111 | |||||
Stock awards granted, weighted average (in usd per share) grant date fair value | $ / shares | $ 28.89 | |||||
Stock awards granted, weighted average (in usd per share) exercise date fair value | $ / shares | $ 100.52 | |||||
Share-based compensation expense | $ 1,000,000 | $ 0 | $ 2,000,000 | $ 1,000,000 | ||
ILG | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Business combination, share conversion ratio | 0.165 | |||||
Business combination, share price (in usd per share) | $ / shares | $ 119 | $ 119 | ||||
Legacy-ILG | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Payroll and benefits liability | $ 0 | $ 0 | ||||
Legacy-ILG | Restricted stock units | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Shares available for grants under the plan (in shares) | shares | 1,000,000 | 1,000,000 | ||||
Legacy-ILG | Deferred Share Units | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Weighted average grant date fair value (in usd per share) | $ / shares | $ 114.31 | |||||
Equity instruments other than options (in shares) | shares | 12,265 | |||||
Legacy-ILG | Cash-Based Award | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based compensation expense | $ 1,000,000 | |||||
ILG | ILG | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Business combination, share price (in usd per share) | $ / shares | $ 14.75 |
SHARE-BASED COMPENSATION - Shar
SHARE-BASED COMPENSATION - Share-based Compensation Expense (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation expense | $ 11 | $ 6 | $ 20 | $ 10 |
Service-based RSUs | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation expense | 6 | 4 | 9 | 6 |
Performance-based RSUs | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation expense | 2 | 2 | 3 | 3 |
ILG Acquisition Converted RSUs | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation expense | 2 | 0 | 6 | 0 |
Restricted stock units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation expense | 10 | 6 | 18 | 9 |
SARs | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation expense | 1 | 0 | 2 | 1 |
Stock options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation expense | $ 0 | $ 0 | $ 0 | $ 0 |
SHARE-BASED COMPENSATION - Defe
SHARE-BASED COMPENSATION - Deferred Compensation Costs (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Deferred compensation costs related to unvested awards | $ 51 | $ 39 |
Service-based RSUs | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Deferred compensation costs related to unvested awards | 25 | 16 |
Performance-based RSUs | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Deferred compensation costs related to unvested awards | 16 | 7 |
ILG Acquisition Converted RSUs | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Deferred compensation costs related to unvested awards | 7 | 15 |
Restricted stock units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Deferred compensation costs related to unvested awards | 48 | 38 |
SARs | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Deferred compensation costs related to unvested awards | 3 | 1 |
Stock options | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Deferred compensation costs related to unvested awards | $ 0 | $ 0 |
SHARE-BASED COMPENSATION - Assu
SHARE-BASED COMPENSATION - Assumptions Used to Estimate Fair Value of Grants (Details) | 6 Months Ended |
Jun. 30, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Expected volatility | 31.10% |
Dividend yield | 1.76% |
Risk-free rate | 2.59% |
Expected term (in years) | 6 years 3 months |
VARIABLE INTEREST ENTITIES - Cl
VARIABLE INTEREST ENTITIES - Classifications of Consolidated VIE Assets and Liabilities (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Variable Interest Entity [Line Items] | |||||
VIE Assets | $ 1,773 | $ 1,773 | |||
VIE Liabilities | 1,790 | 1,790 | |||
Restricted cash | 337 | 337 | $ 383 | ||
ILG acquisition-related costs | (36) | $ (19) | (62) | $ (20) | |
Debt | |||||
Variable Interest Entity [Line Items] | |||||
VIE Liabilities | 1,787 | 1,787 | |||
Vacation ownership notes receivable, net of reserves | |||||
Variable Interest Entity [Line Items] | |||||
VIE Assets | 1,681 | 1,681 | |||
Interest receivable | |||||
Variable Interest Entity [Line Items] | |||||
VIE Assets | 12 | 12 | |||
Restricted cash | |||||
Variable Interest Entity [Line Items] | |||||
VIE Assets | 80 | 80 | |||
Interest payable | |||||
Variable Interest Entity [Line Items] | |||||
VIE Liabilities | 3 | 3 | |||
Vacation Ownership Notes Receivable Securitizations | |||||
Variable Interest Entity [Line Items] | |||||
VIE Assets | 1,773 | 1,773 | |||
VIE Liabilities | 1,790 | 1,790 | |||
Vacation Ownership Notes Receivable Securitizations | Debt | |||||
Variable Interest Entity [Line Items] | |||||
VIE Liabilities | 1,787 | 1,787 | |||
Vacation Ownership Notes Receivable Securitizations | Vacation ownership notes receivable, net of reserves | |||||
Variable Interest Entity [Line Items] | |||||
VIE Assets | 1,681 | 1,681 | |||
Vacation Ownership Notes Receivable Securitizations | Interest receivable | |||||
Variable Interest Entity [Line Items] | |||||
VIE Assets | 12 | 12 | |||
Vacation Ownership Notes Receivable Securitizations | Restricted cash | |||||
Variable Interest Entity [Line Items] | |||||
VIE Assets | 80 | 80 | |||
Vacation Ownership Notes Receivable Securitizations | Interest payable | |||||
Variable Interest Entity [Line Items] | |||||
VIE Liabilities | 3 | 3 | |||
Warehouse Credit Facility | |||||
Variable Interest Entity [Line Items] | |||||
VIE Assets | 0 | 0 | |||
VIE Liabilities | 0 | 0 | |||
Warehouse Credit Facility | Debt | |||||
Variable Interest Entity [Line Items] | |||||
VIE Liabilities | 0 | 0 | |||
Warehouse Credit Facility | Vacation ownership notes receivable, net of reserves | |||||
Variable Interest Entity [Line Items] | |||||
VIE Assets | 0 | 0 | |||
Warehouse Credit Facility | Interest receivable | |||||
Variable Interest Entity [Line Items] | |||||
VIE Assets | 0 | 0 | |||
Warehouse Credit Facility | Restricted cash | |||||
Variable Interest Entity [Line Items] | |||||
VIE Assets | 0 | 0 | |||
Warehouse Credit Facility | Interest payable | |||||
Variable Interest Entity [Line Items] | |||||
VIE Liabilities | 0 | 0 | |||
Variable Interest Entity | |||||
Variable Interest Entity [Line Items] | |||||
Restricted cash | 80 | 80 | $ 69 | ||
MVW 2019-1 LLC | Variable Interest Entity | Restricted cash | |||||
Variable Interest Entity [Line Items] | |||||
Restricted cash | $ 6 | $ 6 |
VARIABLE INTEREST ENTITIES - In
VARIABLE INTEREST ENTITIES - Interest Income and Expense Recognized as a Result of Our Involvement with Variable Interest Entities (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Variable Interest Entity [Line Items] | ||||
Interest income | $ 67 | $ 34 | $ 132 | $ 68 |
Administrative expenses | 79 | $ 33 | 157 | $ 61 |
Variable Interest Entity | ||||
Variable Interest Entity [Line Items] | ||||
Interest income | 59 | 118 | ||
Interest expense to investors | 14 | 29 | ||
Debt issuance cost amortization | 2 | 3 | ||
Administrative expenses | 1 | 1 | ||
Variable Interest Entity | Vacation Ownership Notes Receivable Securitizations | ||||
Variable Interest Entity [Line Items] | ||||
Interest income | 55 | 107 | ||
Interest expense to investors | 13 | 26 | ||
Debt issuance cost amortization | 1 | 2 | ||
Administrative expenses | 1 | 1 | ||
Variable Interest Entity | Warehouse Credit Facility | ||||
Variable Interest Entity [Line Items] | ||||
Interest income | 4 | 11 | ||
Interest expense to investors | 1 | 3 | ||
Debt issuance cost amortization | 1 | 1 | ||
Administrative expenses | $ 0 | $ 0 |
VARIABLE INTEREST ENTITIES - Ca
VARIABLE INTEREST ENTITIES - Cash Flows Between Company and Variable Interest Entities (Details) - USD ($) $ in Millions | Jul. 12, 2019 | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 |
Vacation Ownership Notes Receivable Securitizations | |||||
Cash Inflows | |||||
Net proceeds from vacation ownership notes receivable securitizations | $ 445 | $ 419 | |||
Principal receipts | 237 | 127 | |||
Interest receipts | 101 | 52 | |||
Reserve release | 99 | 1 | |||
Total | 882 | 599 | |||
Cash Outflows | |||||
Principal to investors | (233) | (117) | |||
Voluntary repurchases of defaulted vacation ownership notes receivable | (23) | (15) | |||
Voluntary clean-up call | 0 | (22) | |||
Interest to investors | (22) | (10) | |||
Funding of restricted cash | (93) | (110) | |||
Total | (371) | (274) | |||
Net Cash Flows | 511 | 325 | |||
Warehouse Credit Facility | |||||
Cash Inflows | |||||
Net proceeds from vacation ownership notes receivable securitizations | 124 | 0 | |||
Principal receipts | 12 | 0 | |||
Interest receipts | 12 | 0 | |||
Reserve release | 2 | 0 | |||
Total | 150 | 0 | |||
Cash Outflows | |||||
Principal to investors | (12) | 0 | |||
Repayment of Warehouse Credit Facility | (228) | 0 | |||
Interest to investors | (4) | (1) | |||
Funding of restricted cash | (1) | 0 | |||
Total | (245) | (1) | |||
Net Cash Flows | $ (95) | $ (1) | |||
2018-01 Trust | |||||
Cash Outflows | |||||
Funding of restricted cash | $ 106 | ||||
Variable Interest Entity | MVW 2019-1 LLC | |||||
Cash Inflows | |||||
Reserve release | $ 90 | ||||
Cash Outflows | |||||
Funding of restricted cash | $ 84 | ||||
Subsequent Event | MVW 2019-1 LLC | |||||
Cash Outflows | |||||
Decrease in restricted cash | $ 6 |
VARIABLE INTEREST ENTITIES - Ad
VARIABLE INTEREST ENTITIES - Additional Information (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Variable Interest Entity [Line Items] | ||
Finance lease assets | $ 22 | |
Accrued liabilities | 417 | $ 357 |
Finance lease liabilities | 22 | |
Variable Interest Entity, Not Primary Beneficiary | San Francisco, California | ||
Variable Interest Entity [Line Items] | ||
Finance lease assets | 14 | |
Accrued liabilities | 1 | |
Finance lease liabilities | 9 | |
Note receivable (less than) | 1 | |
Maximum loss (less than) | 5 | |
Variable Interest Entity, Not Primary Beneficiary | New York City, New York | ||
Variable Interest Entity [Line Items] | ||
Finance lease assets | 8 | |
Accrued liabilities | 1 | |
Finance lease liabilities | 7 | |
Note receivable (less than) | 1 | |
Maximum loss (less than) | 1 | |
Variable Interest Entity | ||
Variable Interest Entity [Line Items] | ||
Accrued liabilities | 3 | $ 2 |
Cash surrender value of life insurance | $ 34 |
BUSINESS SEGMENTS - Additional
BUSINESS SEGMENTS - Additional Information (Details) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019brand | Jun. 30, 2018 | Jun. 30, 2019brandSegment | Jun. 30, 2018 | |
Segment Reporting Information [Line Items] | ||||
Number of reportable business segments | Segment | 2 | |||
Vacation Ownership | ||||
Segment Reporting Information [Line Items] | ||||
Number of vacation ownership brands | brand | 7 | 7 | ||
Geographic Concentration Risk | Sales Revenue, Net | Non-US | ||||
Segment Reporting Information [Line Items] | ||||
Concentration risk, percentage | 13.00% | 12.00% | 14.00% | 12.00% |
BUSINESS SEGMENTS - Revenues (D
BUSINESS SEGMENTS - Revenues (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Segment Reporting, Asset Reconciling Item [Line Items] | ||||
Revenues | $ 1,068 | $ 595 | $ 2,128 | $ 1,166 |
Vacation Ownership | ||||
Segment Reporting, Asset Reconciling Item [Line Items] | ||||
Revenues | 951 | 595 | 1,882 | 1,166 |
Exchange & Third-Party Management | ||||
Segment Reporting, Asset Reconciling Item [Line Items] | ||||
Revenues | 115 | 0 | 239 | 0 |
Operating Segments | ||||
Segment Reporting, Asset Reconciling Item [Line Items] | ||||
Revenues | 1,066 | 595 | 2,121 | 1,166 |
Operating Segments | Vacation Ownership | ||||
Segment Reporting, Asset Reconciling Item [Line Items] | ||||
Revenues | 951 | 595 | 1,882 | 1,166 |
Operating Segments | Exchange & Third-Party Management | ||||
Segment Reporting, Asset Reconciling Item [Line Items] | ||||
Revenues | 115 | 0 | 239 | 0 |
Corporate and other | ||||
Segment Reporting, Asset Reconciling Item [Line Items] | ||||
Revenues | $ 2 | $ 0 | $ 7 | $ 0 |
BUSINESS SEGMENTS - Adjusted EB
BUSINESS SEGMENTS - Adjusted EBITDA (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Segment Reporting Information [Line Items] | ||||
Corporate and other | $ (71) | $ (28) | $ (142) | $ (53) |
Interest expense | (35) | (5) | (69) | (9) |
Provision for income taxes | (25) | (6) | (40) | (17) |
Depreciation and amortization | (36) | (5) | (73) | (11) |
Share-based compensation expense | (11) | (6) | (20) | (10) |
Certain items | (39) | (43) | (86) | (45) |
Net income attributable to common shareholders | 49 | 11 | 73 | 47 |
Vacation Ownership | ||||
Segment Reporting Information [Line Items] | ||||
Adjusted Earnings Before Income Taxes Depreciation And Amortization | 208 | 104 | 379 | 192 |
Exchange & Third-Party Management | ||||
Segment Reporting Information [Line Items] | ||||
Adjusted Earnings Before Income Taxes Depreciation And Amortization | $ 58 | $ 0 | $ 124 | $ 0 |
BUSINESS SEGMENTS - Assets (Det
BUSINESS SEGMENTS - Assets (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Segment Reporting Information [Line Items] | ||
Total Assets | $ 9,023 | $ 9,018 |
Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Total Assets | 8,482 | 8,457 |
Operating Segments | Vacation Ownership | ||
Segment Reporting Information [Line Items] | ||
Total Assets | 7,358 | 7,275 |
Operating Segments | Exchange & Third-Party Management | ||
Segment Reporting Information [Line Items] | ||
Total Assets | 1,124 | 1,182 |
Corporate and other | ||
Segment Reporting Information [Line Items] | ||
Total Assets | $ 541 | $ 561 |
SUPPLEMENTAL GUARANTOR INFORM_3
SUPPLEMENTAL GUARANTOR INFORMATION - Balance Sheet (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Condensed Financial Statements, Captions [Line Items] | ||
Cash and cash equivalents | $ 179 | $ 231 |
Restricted cash | 337 | 383 |
Accounts receivable, net | 327 | 324 |
Vacation ownership notes receivable, net | 2,098 | 2,039 |
Inventory | 888 | 863 |
Property and equipment | 837 | 951 |
Goodwill | 2,824 | 2,828 |
Intangibles, net | 1,075 | 1,107 |
Due from parent | 0 | 0 |
Investments in subsidiaries | 0 | 0 |
Other | 458 | 292 |
TOTAL ASSETS | 9,023 | 9,018 |
Accounts payable | 164 | 253 |
Contract Liabilities | 542 | 490 |
Accrued liabilities | 417 | 357 |
Payroll and benefits liability | 172 | 211 |
Deferred compensation liability | 102 | 93 |
Securitized debt, net | 1,792 | 1,714 |
Debt, net | 2,157 | 2,104 |
Due to subsidiary | 0 | 0 |
Other | 64 | 12 |
Deferred taxes | 343 | 318 |
MVW shareholders' equity | 3,264 | 3,461 |
Noncontrolling interests | 6 | 5 |
TOTAL LIABILITIES AND EQUITY | 9,023 | 9,018 |
Advance deposits | ||
Condensed Financial Statements, Captions [Line Items] | ||
Contract Liabilities | 186 | 171 |
Deferred revenue | ||
Condensed Financial Statements, Captions [Line Items] | ||
Contract Liabilities | 356 | 319 |
MVWC | Reportable Legal Entities | ||
Condensed Financial Statements, Captions [Line Items] | ||
Cash and cash equivalents | 0 | 1 |
Restricted cash | 0 | 0 |
Accounts receivable, net | 67 | 31 |
Vacation ownership notes receivable, net | 0 | 0 |
Inventory | 0 | 0 |
Property and equipment | 0 | 0 |
Goodwill | 2,824 | 2,828 |
Intangibles, net | 0 | 0 |
Due from parent | 0 | 0 |
Investments in subsidiaries | 2,520 | 2,681 |
Other | 35 | 27 |
TOTAL ASSETS | 5,446 | 5,568 |
Accounts payable | 12 | 50 |
Accrued liabilities | 5 | 7 |
Payroll and benefits liability | 3 | 15 |
Deferred compensation liability | 0 | 0 |
Securitized debt, net | 0 | 0 |
Debt, net | 203 | 199 |
Due to subsidiary | 1,957 | 1,834 |
Other | 2 | 2 |
Deferred taxes | 0 | 0 |
MVW shareholders' equity | 3,264 | 3,461 |
Noncontrolling interests | 0 | 0 |
TOTAL LIABILITIES AND EQUITY | 5,446 | 5,568 |
MVWC | Reportable Legal Entities | Advance deposits | ||
Condensed Financial Statements, Captions [Line Items] | ||
Contract Liabilities | 0 | 0 |
MVWC | Reportable Legal Entities | Deferred revenue | ||
Condensed Financial Statements, Captions [Line Items] | ||
Contract Liabilities | 0 | 0 |
IAC Notes | ||
Condensed Financial Statements, Captions [Line Items] | ||
Accounts payable | 253 | |
Accrued liabilities | 357 | |
Payroll and benefits liability | 211 | |
Deferred compensation liability | 93 | |
Securitized debt, net | 1,714 | |
Debt, net | 2,104 | |
Other | 12 | |
Deferred taxes | 318 | |
MVW shareholders' equity | 3,461 | |
Noncontrolling interests | 5 | |
TOTAL LIABILITIES AND EQUITY | 9,018 | |
IAC Notes | Advance deposits | ||
Condensed Financial Statements, Captions [Line Items] | ||
Contract Liabilities | 171 | |
IAC Notes | Deferred revenue | ||
Condensed Financial Statements, Captions [Line Items] | ||
Contract Liabilities | 319 | |
IAC Notes | Total Eliminations | ||
Condensed Financial Statements, Captions [Line Items] | ||
Cash and cash equivalents | 0 | 0 |
Restricted cash | 0 | 0 |
Accounts receivable, net | (4) | 0 |
Vacation ownership notes receivable, net | 0 | 0 |
Inventory | 0 | 0 |
Property and equipment | 0 | 0 |
Goodwill | 0 | 0 |
Intangibles, net | 0 | 0 |
Due from parent | (1,957) | (1,834) |
Investments in subsidiaries | (6,290) | (6,531) |
Other | (68) | (75) |
TOTAL ASSETS | (8,319) | (8,440) |
Accounts payable | 7 | 0 |
Accrued liabilities | (32) | (24) |
Payroll and benefits liability | 0 | 0 |
Deferred compensation liability | 0 | 0 |
Securitized debt, net | 0 | 0 |
Debt, net | 0 | 0 |
Due to subsidiary | (1,957) | (1,834) |
Other | 0 | 0 |
Deferred taxes | 0 | 4 |
MVW shareholders' equity | (6,333) | (6,582) |
Noncontrolling interests | 0 | 0 |
TOTAL LIABILITIES AND EQUITY | (8,319) | (8,440) |
IAC Notes | Total Eliminations | Advance deposits | ||
Condensed Financial Statements, Captions [Line Items] | ||
Contract Liabilities | 0 | 0 |
IAC Notes | Total Eliminations | Deferred revenue | ||
Condensed Financial Statements, Captions [Line Items] | ||
Contract Liabilities | (4) | (4) |
IAC Notes | MVWC | Reportable Legal Entities | ||
Condensed Financial Statements, Captions [Line Items] | ||
Accounts payable | 50 | |
Accrued liabilities | 7 | |
Payroll and benefits liability | 15 | |
Deferred compensation liability | 0 | |
Securitized debt, net | 0 | |
Debt, net | 199 | |
Other | 2 | |
Deferred taxes | 0 | |
MVW shareholders' equity | 3,461 | |
Noncontrolling interests | 0 | |
TOTAL LIABILITIES AND EQUITY | 5,568 | |
IAC Notes | MVWC | Reportable Legal Entities | Advance deposits | ||
Condensed Financial Statements, Captions [Line Items] | ||
Contract Liabilities | 0 | |
IAC Notes | MVWC | Reportable Legal Entities | Deferred revenue | ||
Condensed Financial Statements, Captions [Line Items] | ||
Contract Liabilities | 0 | |
IAC Notes | Issuers | Reportable Legal Entities | ||
Condensed Financial Statements, Captions [Line Items] | ||
Cash and cash equivalents | 1 | 11 |
Restricted cash | 0 | 0 |
Accounts receivable, net | 2 | 2 |
Vacation ownership notes receivable, net | 0 | 0 |
Inventory | 0 | 0 |
Property and equipment | 0 | 0 |
Goodwill | 0 | 0 |
Intangibles, net | 0 | 0 |
Due from parent | 0 | 0 |
Investments in subsidiaries | 1,942 | 1,975 |
Other | 27 | 28 |
TOTAL ASSETS | 1,972 | 2,016 |
Accounts payable | 0 | 0 |
Accrued liabilities | 0 | 0 |
Payroll and benefits liability | 0 | 0 |
Deferred compensation liability | 0 | 0 |
Securitized debt, net | 0 | 0 |
Debt, net | 141 | 141 |
Due to subsidiary | 0 | 0 |
Other | 0 | 0 |
Deferred taxes | 0 | 0 |
MVW shareholders' equity | 1,831 | 1,875 |
Noncontrolling interests | 0 | 0 |
TOTAL LIABILITIES AND EQUITY | 1,972 | 2,016 |
IAC Notes | Issuers | Reportable Legal Entities | Advance deposits | ||
Condensed Financial Statements, Captions [Line Items] | ||
Contract Liabilities | 0 | 0 |
IAC Notes | Issuers | Reportable Legal Entities | Deferred revenue | ||
Condensed Financial Statements, Captions [Line Items] | ||
Contract Liabilities | 0 | 0 |
IAC Notes | Guarantors | Reportable Legal Entities | ||
Condensed Financial Statements, Captions [Line Items] | ||
Cash and cash equivalents | 27 | 28 |
Restricted cash | 52 | 83 |
Accounts receivable, net | 115 | 107 |
Vacation ownership notes receivable, net | 189 | 176 |
Inventory | 449 | 440 |
Property and equipment | 230 | 272 |
Goodwill | 0 | 0 |
Intangibles, net | 1,034 | 1,065 |
Due from parent | 0 | 0 |
Investments in subsidiaries | 1,828 | 1,875 |
Other | 245 | 140 |
TOTAL ASSETS | 4,169 | 4,186 |
Accounts payable | 40 | 72 |
Accrued liabilities | 170 | 79 |
Payroll and benefits liability | 67 | 77 |
Deferred compensation liability | 7 | 7 |
Securitized debt, net | 0 | 0 |
Debt, net | 1 | 1 |
Due to subsidiary | 0 | 0 |
Other | 38 | 1 |
Deferred taxes | 179 | 155 |
MVW shareholders' equity | 3,445 | 3,599 |
Noncontrolling interests | (4) | (3) |
TOTAL LIABILITIES AND EQUITY | 4,169 | 4,186 |
IAC Notes | Guarantors | Reportable Legal Entities | Advance deposits | ||
Condensed Financial Statements, Captions [Line Items] | ||
Contract Liabilities | 81 | 81 |
IAC Notes | Guarantors | Reportable Legal Entities | Deferred revenue | ||
Condensed Financial Statements, Captions [Line Items] | ||
Contract Liabilities | 145 | 117 |
IAC Notes | Non-Guarantor Subsidiaries | Reportable Legal Entities | ||
Condensed Financial Statements, Captions [Line Items] | ||
Cash and cash equivalents | 151 | 191 |
Restricted cash | 285 | 300 |
Accounts receivable, net | 147 | 184 |
Vacation ownership notes receivable, net | 1,909 | 1,863 |
Inventory | 439 | 423 |
Property and equipment | 607 | 679 |
Goodwill | 0 | 0 |
Intangibles, net | 41 | 42 |
Due from parent | 1,957 | 1,834 |
Investments in subsidiaries | 0 | 0 |
Other | 219 | 172 |
TOTAL ASSETS | 5,755 | 5,688 |
Accounts payable | 105 | 131 |
Accrued liabilities | 274 | 295 |
Payroll and benefits liability | 102 | 119 |
Deferred compensation liability | 95 | 86 |
Securitized debt, net | 1,792 | 1,714 |
Debt, net | 1,812 | 1,763 |
Due to subsidiary | 0 | 0 |
Other | 24 | 9 |
Deferred taxes | 164 | 159 |
MVW shareholders' equity | 1,057 | 1,108 |
Noncontrolling interests | 10 | 8 |
TOTAL LIABILITIES AND EQUITY | 5,755 | 5,688 |
IAC Notes | Non-Guarantor Subsidiaries | Reportable Legal Entities | Advance deposits | ||
Condensed Financial Statements, Captions [Line Items] | ||
Contract Liabilities | 105 | 90 |
IAC Notes | Non-Guarantor Subsidiaries | Reportable Legal Entities | Deferred revenue | ||
Condensed Financial Statements, Captions [Line Items] | ||
Contract Liabilities | 215 | 206 |
Senior MVW Notes | Total Eliminations | ||
Condensed Financial Statements, Captions [Line Items] | ||
Cash and cash equivalents | 0 | 0 |
Restricted cash | 0 | 0 |
Accounts receivable, net | (4) | 0 |
Vacation ownership notes receivable, net | 0 | 0 |
Inventory | 0 | 0 |
Property and equipment | 0 | 0 |
Goodwill | 0 | 0 |
Intangibles, net | 0 | 0 |
Due from parent | (1,957) | (1,834) |
Investments in subsidiaries | (4,369) | (4,649) |
Other | (68) | (75) |
TOTAL ASSETS | (6,398) | (6,558) |
Accounts payable | 8 | 0 |
Accrued liabilities | (32) | (24) |
Payroll and benefits liability | 0 | 0 |
Deferred compensation liability | 0 | 0 |
Securitized debt, net | 0 | 0 |
Debt, net | 0 | 0 |
Due to subsidiary | (1,957) | (1,834) |
Other | 0 | 0 |
Deferred taxes | 0 | 4 |
MVW shareholders' equity | (4,413) | (4,700) |
Noncontrolling interests | 0 | 0 |
TOTAL LIABILITIES AND EQUITY | (6,398) | (6,558) |
Senior MVW Notes | Total Eliminations | Advance deposits | ||
Condensed Financial Statements, Captions [Line Items] | ||
Contract Liabilities | 0 | 0 |
Senior MVW Notes | Total Eliminations | Deferred revenue | ||
Condensed Financial Statements, Captions [Line Items] | ||
Contract Liabilities | (4) | (4) |
Senior MVW Notes | Guarantors | Reportable Legal Entities | ||
Condensed Financial Statements, Captions [Line Items] | ||
Cash and cash equivalents | 29 | 39 |
Restricted cash | 54 | 122 |
Accounts receivable, net | 131 | 169 |
Vacation ownership notes receivable, net | 196 | 183 |
Inventory | 489 | 475 |
Property and equipment | 272 | 308 |
Goodwill | 0 | 0 |
Intangibles, net | 1,034 | 1,065 |
Due from parent | 0 | 0 |
Investments in subsidiaries | 0 | 0 |
Other | 359 | 251 |
TOTAL ASSETS | 2,564 | 2,612 |
Accounts payable | 74 | 165 |
Accrued liabilities | 177 | 121 |
Payroll and benefits liability | 76 | 84 |
Deferred compensation liability | 15 | 13 |
Securitized debt, net | 0 | 0 |
Debt, net | 149 | 179 |
Due to subsidiary | 0 | 0 |
Other | 38 | 1 |
Deferred taxes | 181 | 157 |
MVW shareholders' equity | 1,529 | 1,617 |
Noncontrolling interests | (4) | (3) |
TOTAL LIABILITIES AND EQUITY | 2,564 | 2,612 |
Senior MVW Notes | Guarantors | Reportable Legal Entities | Advance deposits | ||
Condensed Financial Statements, Captions [Line Items] | ||
Contract Liabilities | 90 | 89 |
Senior MVW Notes | Guarantors | Reportable Legal Entities | Deferred revenue | ||
Condensed Financial Statements, Captions [Line Items] | ||
Contract Liabilities | 239 | 189 |
Senior MVW Notes | Non-Guarantor Subsidiaries | Reportable Legal Entities | ||
Condensed Financial Statements, Captions [Line Items] | ||
Cash and cash equivalents | 106 | 127 |
Restricted cash | 263 | 242 |
Accounts receivable, net | 105 | 104 |
Vacation ownership notes receivable, net | 1,794 | 1,735 |
Inventory | 95 | 176 |
Property and equipment | 290 | 203 |
Goodwill | 0 | 0 |
Intangibles, net | 41 | 42 |
Due from parent | 0 | 0 |
Investments in subsidiaries | 0 | 0 |
Other | 79 | 36 |
TOTAL ASSETS | 2,773 | 2,665 |
Accounts payable | 26 | 25 |
Accrued liabilities | 189 | 150 |
Payroll and benefits liability | 16 | 16 |
Deferred compensation liability | 1 | 1 |
Securitized debt, net | 1,792 | 1,714 |
Debt, net | 0 | 0 |
Due to subsidiary | 0 | 0 |
Other | 2 | 3 |
Deferred taxes | 24 | 24 |
MVW shareholders' equity | 576 | 579 |
Noncontrolling interests | 10 | 8 |
TOTAL LIABILITIES AND EQUITY | 2,773 | 2,665 |
Senior MVW Notes | Non-Guarantor Subsidiaries | Reportable Legal Entities | Advance deposits | ||
Condensed Financial Statements, Captions [Line Items] | ||
Contract Liabilities | 20 | 17 |
Senior MVW Notes | Non-Guarantor Subsidiaries | Reportable Legal Entities | Deferred revenue | ||
Condensed Financial Statements, Captions [Line Items] | ||
Contract Liabilities | 117 | 128 |
Senior MVW Notes | MORI | Issuers | Reportable Legal Entities | ||
Condensed Financial Statements, Captions [Line Items] | ||
Cash and cash equivalents | 44 | 62 |
Restricted cash | 20 | 19 |
Accounts receivable, net | 28 | 20 |
Vacation ownership notes receivable, net | 108 | 121 |
Inventory | 304 | 212 |
Property and equipment | 274 | 439 |
Goodwill | 0 | 0 |
Intangibles, net | 0 | 0 |
Due from parent | 1,957 | 1,834 |
Investments in subsidiaries | 21 | 93 |
Other | 53 | 53 |
TOTAL ASSETS | 2,809 | 2,853 |
Accounts payable | 44 | 13 |
Accrued liabilities | 71 | 96 |
Payroll and benefits liability | 77 | 96 |
Deferred compensation liability | 86 | 79 |
Securitized debt, net | 0 | 0 |
Debt, net | 1,805 | 1,726 |
Due to subsidiary | 0 | 0 |
Other | 22 | 6 |
Deferred taxes | 138 | 133 |
MVW shareholders' equity | 486 | 633 |
Noncontrolling interests | 0 | 0 |
TOTAL LIABILITIES AND EQUITY | 2,809 | 2,853 |
Senior MVW Notes | MORI | Issuers | Reportable Legal Entities | Advance deposits | ||
Condensed Financial Statements, Captions [Line Items] | ||
Contract Liabilities | 76 | 65 |
Senior MVW Notes | MORI | Issuers | Reportable Legal Entities | Deferred revenue | ||
Condensed Financial Statements, Captions [Line Items] | ||
Contract Liabilities | 4 | 6 |
Senior MVW Notes | ILG | Issuers | Reportable Legal Entities | ||
Condensed Financial Statements, Captions [Line Items] | ||
Cash and cash equivalents | 0 | 2 |
Restricted cash | 0 | 0 |
Accounts receivable, net | 0 | 0 |
Vacation ownership notes receivable, net | 0 | 0 |
Inventory | 0 | 0 |
Property and equipment | 1 | 1 |
Goodwill | 0 | 0 |
Intangibles, net | 0 | 0 |
Due from parent | 0 | 0 |
Investments in subsidiaries | 1,828 | 1,875 |
Other | 0 | 0 |
TOTAL ASSETS | 1,829 | 1,878 |
Accounts payable | 0 | 0 |
Accrued liabilities | 7 | 7 |
Payroll and benefits liability | 0 | 0 |
Deferred compensation liability | 0 | 0 |
Securitized debt, net | 0 | 0 |
Debt, net | 0 | 0 |
Due to subsidiary | 0 | 0 |
Other | 0 | 0 |
Deferred taxes | 0 | 0 |
MVW shareholders' equity | 1,822 | 1,871 |
Noncontrolling interests | 0 | 0 |
TOTAL LIABILITIES AND EQUITY | 1,829 | 1,878 |
Senior MVW Notes | ILG | Issuers | Reportable Legal Entities | Advance deposits | ||
Condensed Financial Statements, Captions [Line Items] | ||
Contract Liabilities | 0 | 0 |
Senior MVW Notes | ILG | Issuers | Reportable Legal Entities | Deferred revenue | ||
Condensed Financial Statements, Captions [Line Items] | ||
Contract Liabilities | $ 0 | $ 0 |
SUPPLEMENTAL GUARANTOR INFORM_4
SUPPLEMENTAL GUARANTOR INFORMATION - Income Statement (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Condensed Financial Statements, Captions [Line Items] | ||||
Revenues | $ 1,068 | $ 595 | $ 2,128 | $ 1,166 |
Expenses | (925) | (546) | (1,894) | (1,064) |
Gains (losses) and other income (expense), net | 2 | (7) | 10 | (6) |
Interest expense | (35) | (5) | (69) | (9) |
ILG acquisition-related costs | (36) | (19) | (62) | (20) |
Other | 0 | (1) | 0 | (3) |
Provision for income taxes | (25) | (6) | (40) | (17) |
Equity in Earnings (Losses) From Unconsolidated Subsidiary | 0 | 0 | 0 | 0 |
Equity In Net Income of Subsidiaries | 0 | 0 | 0 | 0 |
NET INCOME | 49 | 11 | 73 | 47 |
Net income attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Net income attributable to common shareholders | 49 | 11 | 73 | 47 |
Reportable Legal Entities | MVWC | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
Expenses | (6) | (2) | (9) | (4) |
Gains (losses) and other income (expense), net | 0 | 0 | 0 | 0 |
Interest expense | (2) | (3) | (5) | (5) |
ILG acquisition-related costs | 0 | 0 | 0 | 0 |
Other | 0 | 0 | 0 | 0 |
Provision for income taxes | 3 | 1 | 4 | 2 |
Equity in Earnings (Losses) From Unconsolidated Subsidiary | 0 | 0 | 0 | 0 |
Equity In Net Income of Subsidiaries | 54 | 15 | 83 | 54 |
NET INCOME | 49 | 11 | 73 | 47 |
Net income attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Net income attributable to common shareholders | 49 | 11 | 73 | 47 |
Senior MVW Notes | Reportable Legal Entities | Guarantors | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Revenues | 695 | 286 | 1,406 | 585 |
Expenses | (583) | (257) | (1,214) | (510) |
Gains (losses) and other income (expense), net | 0 | 0 | (1) | 0 |
Interest expense | (5) | (1) | (6) | (2) |
ILG acquisition-related costs | (14) | 0 | (14) | 0 |
Other | 0 | 0 | 0 | 0 |
Provision for income taxes | (35) | (12) | (70) | (27) |
Equity in Earnings (Losses) From Unconsolidated Subsidiary | 0 | 0 | 0 | 0 |
Equity In Net Income of Subsidiaries | 0 | 0 | 0 | 0 |
NET INCOME | 58 | 16 | 101 | 46 |
Net income attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Net income attributable to common shareholders | 58 | 16 | 101 | 46 |
Senior MVW Notes | Reportable Legal Entities | Non-Guarantor Subsidiaries | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Revenues | 183 | 115 | 381 | 218 |
Expenses | (137) | (98) | (288) | (188) |
Gains (losses) and other income (expense), net | 0 | 0 | 0 | 0 |
Interest expense | (4) | 0 | (4) | 0 |
ILG acquisition-related costs | 0 | 0 | 0 | 0 |
Other | 0 | 0 | 0 | 0 |
Provision for income taxes | (9) | (2) | (14) | (3) |
Equity in Earnings (Losses) From Unconsolidated Subsidiary | 0 | 0 | 0 | 0 |
Equity In Net Income of Subsidiaries | 0 | 0 | 0 | 0 |
NET INCOME | 33 | 15 | 75 | 27 |
Net income attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Net income attributable to common shareholders | 33 | 15 | 75 | 27 |
Senior MVW Notes | Total Eliminations | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Revenues | (1) | 0 | (9) | 0 |
Expenses | 1 | 0 | 9 | 0 |
Gains (losses) and other income (expense), net | 0 | 0 | 0 | 0 |
Interest expense | 0 | 0 | 0 | 0 |
ILG acquisition-related costs | 0 | 0 | 0 | 0 |
Other | 0 | 0 | 0 | 0 |
Provision for income taxes | 0 | 0 | 0 | 0 |
Equity in Earnings (Losses) From Unconsolidated Subsidiary | 0 | 0 | 0 | 0 |
Equity In Net Income of Subsidiaries | (143) | (31) | (260) | (100) |
NET INCOME | (143) | (31) | (260) | (100) |
Net income attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Net income attributable to common shareholders | (143) | (31) | (260) | (100) |
Senior MVW Notes | MORI | Reportable Legal Entities | Interval Acquisition Corp. | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Revenues | 191 | 194 | 350 | 363 |
Expenses | (200) | (189) | (392) | (362) |
Gains (losses) and other income (expense), net | 2 | (7) | 11 | (6) |
Interest expense | (24) | (1) | (54) | (2) |
ILG acquisition-related costs | (22) | (19) | (48) | (20) |
Other | 0 | (1) | 0 | (3) |
Provision for income taxes | 16 | 7 | 40 | 11 |
Equity in Earnings (Losses) From Unconsolidated Subsidiary | 0 | 0 | 0 | 0 |
Equity In Net Income of Subsidiaries | 62 | 16 | 115 | 46 |
NET INCOME | 25 | 0 | 22 | 27 |
Net income attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Net income attributable to common shareholders | 25 | 0 | 22 | 27 |
Senior MVW Notes | ILG | Reportable Legal Entities | Interval Acquisition Corp. | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
Expenses | 0 | 0 | 0 | 0 |
Gains (losses) and other income (expense), net | 0 | 0 | 0 | 0 |
Interest expense | 0 | 0 | 0 | 0 |
ILG acquisition-related costs | 0 | 0 | 0 | 0 |
Other | 0 | 0 | 0 | 0 |
Provision for income taxes | 0 | 0 | 0 | 0 |
Equity in Earnings (Losses) From Unconsolidated Subsidiary | 0 | 0 | 0 | 0 |
Equity In Net Income of Subsidiaries | 27 | 0 | 62 | 0 |
NET INCOME | 27 | 0 | 62 | 0 |
Net income attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Net income attributable to common shareholders | 27 | 0 | 62 | 0 |
IAC Notes | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Revenues | 1,068 | 595 | 2,128 | 1,166 |
Expenses | (925) | (546) | (1,894) | (1,064) |
Gains (losses) and other income (expense), net | 2 | (7) | 10 | (6) |
Interest expense | (35) | (5) | (69) | (9) |
ILG acquisition-related costs | (36) | (19) | (62) | (20) |
Other | 0 | (1) | 0 | (3) |
Provision for income taxes | 0 | (6) | (40) | (17) |
Equity in Earnings (Losses) From Unconsolidated Subsidiary | 0 | 0 | 0 | 0 |
Equity In Net Income of Subsidiaries | (25) | 0 | 0 | 0 |
NET INCOME | 49 | 11 | 73 | 47 |
Net income attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Net income attributable to common shareholders | 49 | 11 | 73 | 47 |
IAC Notes | Reportable Legal Entities | MVWC | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
Expenses | (6) | (2) | (9) | (4) |
Gains (losses) and other income (expense), net | 0 | 0 | 0 | 0 |
Interest expense | (2) | (3) | (5) | (5) |
ILG acquisition-related costs | 0 | 0 | 0 | 0 |
Other | 0 | 0 | 0 | 0 |
Provision for income taxes | 0 | 1 | 4 | 2 |
Equity in Earnings (Losses) From Unconsolidated Subsidiary | 54 | 0 | 0 | 0 |
Equity In Net Income of Subsidiaries | 3 | 15 | 83 | 54 |
NET INCOME | 49 | 11 | 73 | 47 |
Net income attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Net income attributable to common shareholders | 49 | 11 | 73 | 47 |
IAC Notes | Reportable Legal Entities | Interval Acquisition Corp. | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
Expenses | 0 | 0 | 0 | 0 |
Gains (losses) and other income (expense), net | 0 | 0 | 0 | 0 |
Interest expense | (2) | 0 | (3) | 0 |
ILG acquisition-related costs | 0 | 0 | 0 | 0 |
Other | 0 | 0 | 0 | 0 |
Provision for income taxes | 0 | 0 | 1 | 0 |
Equity in Earnings (Losses) From Unconsolidated Subsidiary | 28 | 0 | 0 | 0 |
Equity In Net Income of Subsidiaries | 1 | 0 | 64 | 0 |
NET INCOME | 27 | 0 | 62 | 0 |
Net income attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Net income attributable to common shareholders | 27 | 0 | 62 | 0 |
IAC Notes | Reportable Legal Entities | Guarantors | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Revenues | 398 | 0 | 797 | 0 |
Expenses | (346) | 0 | (715) | 0 |
Gains (losses) and other income (expense), net | 2 | 0 | 0 | 0 |
Interest expense | (3) | 0 | (3) | 0 |
ILG acquisition-related costs | (14) | 0 | (14) | 0 |
Other | 0 | 0 | 0 | 0 |
Provision for income taxes | 0 | 0 | (22) | 0 |
Equity in Earnings (Losses) From Unconsolidated Subsidiary | 27 | 0 | 0 | 0 |
Equity In Net Income of Subsidiaries | (12) | 0 | 62 | 0 |
NET INCOME | 52 | 0 | 105 | 0 |
Net income attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Net income attributable to common shareholders | 52 | 0 | 105 | 0 |
IAC Notes | Reportable Legal Entities | Non-Guarantor Subsidiaries | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Revenues | 671 | 595 | 1,340 | 1,166 |
Expenses | (574) | (544) | (1,179) | (1,060) |
Gains (losses) and other income (expense), net | 0 | (7) | 10 | (6) |
Interest expense | (28) | (2) | (58) | (4) |
ILG acquisition-related costs | (22) | (19) | (48) | (20) |
Other | 0 | (1) | 0 | (3) |
Provision for income taxes | 0 | (7) | (23) | (19) |
Equity in Earnings (Losses) From Unconsolidated Subsidiary | 0 | 0 | 0 | 0 |
Equity In Net Income of Subsidiaries | (16) | 0 | 0 | 0 |
NET INCOME | 31 | 15 | 42 | 54 |
Net income attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Net income attributable to common shareholders | 31 | 15 | 42 | 54 |
IAC Notes | Total Eliminations | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Revenues | (1) | 0 | (9) | 0 |
Expenses | 1 | 0 | 9 | 0 |
Gains (losses) and other income (expense), net | 0 | 0 | 0 | 0 |
Interest expense | 0 | 0 | 0 | 0 |
ILG acquisition-related costs | 0 | 0 | 0 | 0 |
Other | 0 | 0 | 0 | 0 |
Provision for income taxes | 0 | 0 | 0 | 0 |
Equity in Earnings (Losses) From Unconsolidated Subsidiary | (109) | 0 | 0 | 0 |
Equity In Net Income of Subsidiaries | (1) | (15) | (209) | (54) |
NET INCOME | (110) | (15) | (209) | (54) |
Net income attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Net income attributable to common shareholders | $ (110) | $ (15) | $ (209) | $ (54) |
SUPPLEMENTAL GUARANTOR INFORM_5
SUPPLEMENTAL GUARANTOR INFORMATION - Cash Flow (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Condensed Financial Statements, Captions [Line Items] | ||
Net cash, cash equivalents and restricted cash provided by (used in) operating activities | $ 56 | $ 58 |
Net cash, cash equivalents and restricted cash (used in) provided by investing activities | 15 | (19) |
Net cash, cash equivalents and restricted cash (used in) provided by financing activities | (170) | 187 |
Effect of changes in exchange rates on cash, cash equivalents and restricted cash | 1 | 1 |
Cash, cash equivalents and restricted cash, beginning of period | 614 | 491 |
Cash, cash equivalents and restricted cash, end of period | 516 | 718 |
Total Eliminations | ||
Condensed Financial Statements, Captions [Line Items] | ||
Net cash, cash equivalents and restricted cash provided by (used in) operating activities | (12) | 2 |
Net cash, cash equivalents and restricted cash (used in) provided by investing activities | 0 | 0 |
Net cash, cash equivalents and restricted cash (used in) provided by financing activities | 12 | (2) |
Effect of changes in exchange rates on cash, cash equivalents and restricted cash | 0 | 0 |
Cash, cash equivalents and restricted cash, beginning of period | 0 | 0 |
Cash, cash equivalents and restricted cash, end of period | 0 | 0 |
MVWC | Reportable Legal Entities | ||
Condensed Financial Statements, Captions [Line Items] | ||
Net cash, cash equivalents and restricted cash provided by (used in) operating activities | (71) | (45) |
Net cash, cash equivalents and restricted cash (used in) provided by investing activities | (4) | (12) |
Net cash, cash equivalents and restricted cash (used in) provided by financing activities | 74 | 57 |
Effect of changes in exchange rates on cash, cash equivalents and restricted cash | 0 | 0 |
Cash, cash equivalents and restricted cash, beginning of period | 1 | 0 |
Cash, cash equivalents and restricted cash, end of period | 0 | 0 |
Guarantors | Reportable Legal Entities | ||
Condensed Financial Statements, Captions [Line Items] | ||
Net cash, cash equivalents and restricted cash provided by (used in) operating activities | 151 | (2) |
Net cash, cash equivalents and restricted cash (used in) provided by investing activities | 26 | 0 |
Net cash, cash equivalents and restricted cash (used in) provided by financing activities | (255) | (22) |
Effect of changes in exchange rates on cash, cash equivalents and restricted cash | 0 | 0 |
Cash, cash equivalents and restricted cash, beginning of period | 161 | 30 |
Cash, cash equivalents and restricted cash, end of period | 83 | 6 |
Non-Guarantor Subsidiaries | Reportable Legal Entities | ||
Condensed Financial Statements, Captions [Line Items] | ||
Net cash, cash equivalents and restricted cash provided by (used in) operating activities | 19 | (8) |
Net cash, cash equivalents and restricted cash (used in) provided by investing activities | 7 | (3) |
Net cash, cash equivalents and restricted cash (used in) provided by financing activities | (27) | 105 |
Effect of changes in exchange rates on cash, cash equivalents and restricted cash | 1 | 1 |
Cash, cash equivalents and restricted cash, beginning of period | 369 | 84 |
Cash, cash equivalents and restricted cash, end of period | 369 | 179 |
MORI | Interval Acquisition Corp. | Reportable Legal Entities | ||
Condensed Financial Statements, Captions [Line Items] | ||
Net cash, cash equivalents and restricted cash provided by (used in) operating activities | (31) | 111 |
Net cash, cash equivalents and restricted cash (used in) provided by investing activities | (14) | (4) |
Net cash, cash equivalents and restricted cash (used in) provided by financing activities | 28 | 49 |
Effect of changes in exchange rates on cash, cash equivalents and restricted cash | 0 | 0 |
Cash, cash equivalents and restricted cash, beginning of period | 81 | 377 |
Cash, cash equivalents and restricted cash, end of period | 64 | 533 |
ILG | Interval Acquisition Corp. | Reportable Legal Entities | ||
Condensed Financial Statements, Captions [Line Items] | ||
Net cash, cash equivalents and restricted cash provided by (used in) operating activities | 0 | 0 |
Net cash, cash equivalents and restricted cash (used in) provided by investing activities | 0 | 0 |
Net cash, cash equivalents and restricted cash (used in) provided by financing activities | (2) | 0 |
Effect of changes in exchange rates on cash, cash equivalents and restricted cash | 0 | 0 |
Cash, cash equivalents and restricted cash, beginning of period | 2 | 0 |
Cash, cash equivalents and restricted cash, end of period | 0 | 0 |
IAC Notes | ||
Condensed Financial Statements, Captions [Line Items] | ||
Net cash, cash equivalents and restricted cash provided by (used in) operating activities | 56 | 58 |
Net cash, cash equivalents and restricted cash (used in) provided by investing activities | 15 | (19) |
Net cash, cash equivalents and restricted cash (used in) provided by financing activities | (170) | 187 |
Effect of changes in exchange rates on cash, cash equivalents and restricted cash | 1 | 1 |
Cash, cash equivalents and restricted cash, beginning of period | 614 | 491 |
Cash, cash equivalents and restricted cash, end of period | 516 | 718 |
IAC Notes | Total Eliminations | ||
Condensed Financial Statements, Captions [Line Items] | ||
Net cash, cash equivalents and restricted cash provided by (used in) operating activities | (292) | 2 |
Net cash, cash equivalents and restricted cash (used in) provided by investing activities | 0 | 0 |
Net cash, cash equivalents and restricted cash (used in) provided by financing activities | 292 | (2) |
Effect of changes in exchange rates on cash, cash equivalents and restricted cash | 0 | 0 |
Cash, cash equivalents and restricted cash, beginning of period | 0 | 0 |
Cash, cash equivalents and restricted cash, end of period | 0 | 0 |
IAC Notes | MVWC | Reportable Legal Entities | ||
Condensed Financial Statements, Captions [Line Items] | ||
Net cash, cash equivalents and restricted cash provided by (used in) operating activities | (71) | (45) |
Net cash, cash equivalents and restricted cash (used in) provided by investing activities | (4) | (12) |
Net cash, cash equivalents and restricted cash (used in) provided by financing activities | 74 | 57 |
Effect of changes in exchange rates on cash, cash equivalents and restricted cash | 0 | 0 |
Cash, cash equivalents and restricted cash, beginning of period | 1 | 0 |
Cash, cash equivalents and restricted cash, end of period | 0 | 0 |
IAC Notes | Interval Acquisition Corp. | Reportable Legal Entities | ||
Condensed Financial Statements, Captions [Line Items] | ||
Net cash, cash equivalents and restricted cash provided by (used in) operating activities | (2) | 0 |
Net cash, cash equivalents and restricted cash (used in) provided by investing activities | 0 | 0 |
Net cash, cash equivalents and restricted cash (used in) provided by financing activities | (8) | 0 |
Effect of changes in exchange rates on cash, cash equivalents and restricted cash | 0 | 0 |
Cash, cash equivalents and restricted cash, beginning of period | 11 | 0 |
Cash, cash equivalents and restricted cash, end of period | 1 | 0 |
IAC Notes | Guarantors | Reportable Legal Entities | ||
Condensed Financial Statements, Captions [Line Items] | ||
Net cash, cash equivalents and restricted cash provided by (used in) operating activities | 106 | 0 |
Net cash, cash equivalents and restricted cash (used in) provided by investing activities | 22 | 0 |
Net cash, cash equivalents and restricted cash (used in) provided by financing activities | (160) | 0 |
Effect of changes in exchange rates on cash, cash equivalents and restricted cash | 0 | 0 |
Cash, cash equivalents and restricted cash, beginning of period | 111 | 0 |
Cash, cash equivalents and restricted cash, end of period | 79 | 0 |
IAC Notes | Non-Guarantor Subsidiaries | Reportable Legal Entities | ||
Condensed Financial Statements, Captions [Line Items] | ||
Net cash, cash equivalents and restricted cash provided by (used in) operating activities | 315 | 101 |
Net cash, cash equivalents and restricted cash (used in) provided by investing activities | (3) | (7) |
Net cash, cash equivalents and restricted cash (used in) provided by financing activities | (368) | 132 |
Effect of changes in exchange rates on cash, cash equivalents and restricted cash | 1 | 1 |
Cash, cash equivalents and restricted cash, beginning of period | 491 | 491 |
Cash, cash equivalents and restricted cash, end of period | $ 436 | $ 718 |
Uncategorized Items - a2019q210
Label | Element | Value |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 | $ 3,458,000,000 |
Treasury Stock [Member] | ||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 | (790,000,000) |
Noncontrolling Interest [Member] | ||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 | 5,000,000 |
Parent [Member] | ||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 | 3,453,000,000 |
AOCI Attributable to Parent [Member] | ||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 | 6,000,000 |
Retained Earnings [Member] | ||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 | 515,000,000 |
Common Stock [Member] | ||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 | 1,000,000 |
Additional Paid-in Capital [Member] | ||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 | 3,721,000,000 |
Accounting Standards Update 2016-02 [Member] | Parent [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ (8,000,000) |