Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2019 | Apr. 26, 2019 | |
Document And Entity Information [Abstract] | ||
Entity Registrant Name | Hilton Grand Vacations Inc. | |
Entity Central Index Key | 0001674168 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Current Reporting Status | Yes | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 90,772,372 | |
Entity Emerging Growth Company | false | |
Entity Small Business | false |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 | |
ASSETS | |||
Cash and cash equivalents | $ 158 | $ 108 | |
Restricted cash | 64 | 72 | |
Accounts receivable, net of allowance for doubtful accounts of $12 and $14 | 146 | 153 | |
Timeshare financing receivables, net | 1,111 | 1,120 | |
Inventory | 529 | 527 | |
Property and equipment, net | 644 | 559 | |
Operating lease right of use assets, net | 66 | ||
Investments in unconsolidated affiliates | 40 | 38 | |
Intangible assets, net | 80 | 81 | |
Other assets | 123 | 95 | |
TOTAL ASSETS (variable interest entities - $608 and $647) | 2,961 | 2,753 | |
Liabilities: | |||
Accounts payable, accrued expenses and other | 286 | 324 | |
Advanced deposits | 106 | 101 | |
Debt, net | 800 | 604 | |
Non-recourse debt, net | 720 | 759 | |
Operating lease liabilities | [1] | 78 | |
Deferred revenues | 135 | 95 | |
Deferred income tax liabilities | 261 | 254 | |
Total liabilities (variable interest entities - $601 and $640) | 2,386 | 2,137 | |
Commitments and contingencies - see Note 19 | |||
Equity: | |||
Preferred stock, $0.01 par value; 300,000,000 authorized shares, none issued or outstanding as of March 31, 2019 and December 31, 2018 | 0 | 0 | |
Common stock, $0.01 par value; 3,000,000,000 authorized shares, 91,886,756 issued and outstanding as of March 31, 2019 and 94,558,086 issued and outstanding as of December 31, 2018 | 1 | 1 | |
Additional paid-in capital | 170 | 174 | |
Accumulated retained earnings | 404 | 441 | |
Total equity | 575 | 616 | |
TOTAL LIABILITIES AND EQUITY | $ 2,961 | $ 2,753 | |
[1] | Operating lease payments exclude $2 million |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Statement Of Financial Position [Abstract] | ||
Allowance for doubtful accounts receivable | $ 12 | $ 14 |
Assets, variable interest entity | 608 | 647 |
Liabilities, variable interest entity | $ 601 | $ 640 |
Preferred Stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred Stock, shares authorized | 300,000,000 | 300,000,000 |
Preferred Stock, shares issued | 0 | 0 |
Preferred Stock, shares outstanding | 0 | 0 |
Common Stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common Stock, shares authorized (in shares) | 3,000,000,000 | 3,000,000,000 |
Common Stock, shares issued (in shares) | 91,886,756 | 94,558,086 |
Common Stock, shares outstanding (in shares) | 91,886,756 | 94,558,086 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (UNAUDITED) - USD ($) | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | ||
Revenues | |||
Total revenues | $ 450,000,000 | $ 367,000,000 | |
Expenses | |||
General and administrative | 25,000,000 | 23,000,000 | |
Depreciation and amortization | 10,000,000 | 8,000,000 | |
Total operating expenses | 365,000,000 | 320,000,000 | |
Interest expense | (10,000,000) | (7,000,000) | |
Equity in earnings from unconsolidated affiliates | 1,000,000 | 1,000,000 | |
Other loss, net | (1,000,000) | (1,000,000) | |
Income before income taxes | 75,000,000 | 40,000,000 | |
Income tax expense | (20,000,000) | (10,000,000) | |
Net income | [1] | $ 55,067,801 | $ 30,170,029 |
Earnings per share: | |||
Basic | $ 0.59 | $ 0.31 | |
Diluted | $ 0.58 | $ 0.30 | |
Sales of VOIs, Net | |||
Revenues | |||
Total revenues | $ 125,000,000 | $ 78,000,000 | |
Sales, Marketing, Brand and Other Fees | |||
Revenues | |||
Total revenues | 141,000,000 | 125,000,000 | |
Financing | |||
Revenues | |||
Total revenues | 41,000,000 | 38,000,000 | |
Expenses | |||
Expenses | 13,000,000 | 11,000,000 | |
Resort and Club Management | |||
Revenues | |||
Total revenues | 42,000,000 | 39,000,000 | |
Expenses | |||
Expenses | 11,000,000 | 11,000,000 | |
Rental and Ancillary Services | |||
Revenues | |||
Total revenues | 59,000,000 | 51,000,000 | |
Expenses | |||
Expenses | 35,000,000 | 28,000,000 | |
Cost Reimbursements | |||
Revenues | |||
Total revenues | 42,000,000 | 36,000,000 | |
Expenses | |||
Expenses | 42,000,000 | 36,000,000 | |
Cost of VOI Sales | |||
Expenses | |||
Expenses | 36,000,000 | 19,000,000 | |
Sales and Marketing | |||
Expenses | |||
Expenses | 170,000,000 | 161,000,000 | |
License Fee Expense | |||
Expenses | |||
Expenses | $ 23,000,000 | $ 23,000,000 | |
[1] | Net income for the three months ended March 31, 2019 and 2018 was $55,067,801 and $30,170,029, respectively. |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Cash Flows (UNAUDITED) - USD ($) | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | ||
Operating Activities | |||
Net income | [1] | $ 55,067,801 | $ 30,170,029 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 10,000,000 | 8,000,000 | |
Amortization of deferred financing costs and other | 2,000,000 | 1,000,000 | |
Provision for financing receivables losses | 14,000,000 | 12,000,000 | |
Other loss, net | 1,000,000 | 1,000,000 | |
Share-based compensation | 5,000,000 | 3,000,000 | |
Deferred income tax expense (benefit) | 5,000,000 | (8,000,000) | |
Equity in earnings from unconsolidated affiliates | (1,000,000) | (1,000,000) | |
Distributions received from unconsolidated affiliates | 1,000,000 | ||
Net changes in assets and liabilities: | |||
Accounts receivable, net | 7,000,000 | (5,000,000) | |
Timeshare financing receivables, net | (5,000,000) | (15,000,000) | |
Inventory | (3,000,000) | (19,000,000) | |
Purchases and development of real estate for future conversion to inventory | (63,000,000) | ||
Other assets | (29,000,000) | (51,000,000) | |
Accounts payable, accrued expenses and other | (31,000,000) | (42,000,000) | |
Advanced deposits | 5,000,000 | 5,000,000 | |
Deferred revenues | 41,000,000 | 105,000,000 | |
Other | 1,000,000 | ||
Net cash provided by operating activities | 14,000,000 | 25,000,000 | |
Investing Activities | |||
Capital expenditures for property and equipment | (6,000,000) | (14,000,000) | |
Software capitalization costs | (4,000,000) | (4,000,000) | |
Return of investment from unconsolidated affiliates | 9,000,000 | ||
Investments in unconsolidated affiliates | (5,000,000) | ||
Net cash used in investing activities | (10,000,000) | (14,000,000) | |
Financing Activities | |||
Issuance of debt | 195,000,000 | ||
Repayment of debt | (23,000,000) | (3,000,000) | |
Repayment of non-recourse debt | (40,000,000) | (39,000,000) | |
Debt issuance costs | (2,000,000) | ||
Repurchase and retirement of common stock | (92,000,000) | (112,000,000) | |
Payment of withholding taxes on vesting of restricted stock units | (2,000,000) | (1,000,000) | |
Capital contribution | 3,000,000 | ||
Net cash provided by (used in) financing activities | 38,000,000 | (154,000,000) | |
Net increase (decrease) in cash, cash equivalents and restricted cash | 42,000,000 | (143,000,000) | |
Cash, cash equivalents and restricted cash, beginning of period | 180,000,000 | 297,000,000 | |
Cash, cash equivalents and restricted cash, end of period | 222,000,000 | 154,000,000 | |
Supplemental disclosure of non-cash operating activities: | |||
Cumulative effect of adoption of new accounting standard | $ 38,000,000 | ||
Supplemental disclosure of non-cash financing activities: | |||
Issuance of other debt | $ 23,000,000 | ||
[1] | Net income for the three months ended March 31, 2019 and 2018 was $55,067,801 and $30,170,029, respectively. |
Condensed Consolidated Statem_3
Condensed Consolidated Statement of Stockholders' Equity (UNAUDITED) - USD ($) | Total | Common Stock | Additional Paid-in Capital | Accumulated Retained Earnings | |
Beginning balance, value at Dec. 31, 2017 | $ 518,000,000 | $ 1,000,000 | $ 162,000,000 | $ 355,000,000 | |
Beginning balance, shares at Dec. 31, 2017 | 99,000,000 | ||||
Net income | 30,170,029 | [1] | $ 0 | 0 | 30,000,000 |
Activity related to share-based compensation | (1,000,000) | 0 | (1,000,000) | 0 | |
Repurchase and retirement of common stock | (112,000,000) | $ 0 | (3,000,000) | (109,000,000) | |
Repurchase and retirement of common stock, shares | (2,000,000) | ||||
Revenue recognition cumulative-effect adjustment | (38,000,000) | $ 0 | 0 | (38,000,000) | |
Capital contribution | 3,000,000 | 0 | 3,000,000 | 0 | |
Ending balance, value at Mar. 31, 2018 | 400,000,000 | $ 1,000,000 | 161,000,000 | 238,000,000 | |
Ending balance, shares at Mar. 31, 2018 | 97,000,000 | ||||
Beginning balance, value at Dec. 31, 2018 | $ 616,000,000 | $ 1,000,000 | 174,000,000 | 441,000,000 | |
Beginning balance, shares at Dec. 31, 2018 | 94,558,086 | 94,000,000 | |||
Net income | $ 55,067,801 | [1] | $ 0 | 0 | 55,000,000 |
Activity related to share-based compensation | 1,000,000 | 0 | 1,000,000 | 0 | |
Repurchase and retirement of common stock | (97,000,000) | $ 0 | (5,000,000) | (92,000,000) | |
Repurchase and retirement of common stock, shares | (3,000,000) | ||||
Ending balance, value at Mar. 31, 2019 | $ 575,000,000 | $ 1,000,000 | $ 170,000,000 | $ 404,000,000 | |
Ending balance, shares at Mar. 31, 2019 | 91,886,756 | 91,000,000 | |||
[1] | Net income for the three months ended March 31, 2019 and 2018 was $55,067,801 and $30,170,029, respectively. |
Organization
Organization | 3 Months Ended |
Mar. 31, 2019 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Organization | Note 1: Organization Our Business Hilton Grand Vacations Inc. (“Hilton Grand Vacations,” “we,” “us,” “our,” “HGV” or the “Company”) is a global timeshare company engaged in developing, marketing, selling and managing timeshare resorts primarily under the Hilton Grand Vacations brand. Our operations primarily consist of: selling vacation ownership intervals (“VOIs”) for us and third parties; operating resorts; financing and servicing loans provided to consumers for their timeshare purchases; and managing our points-based Hilton Grand Vacations Club exchange program (the “Club”). As of March 31, 2019, we had 56 properties, comprised of 8,966 units, located in the United States (“U.S.”), Japan and Europe. In connection with the completion of the spin-off in January 2017, we entered into agreements with Hilton Worldwide (“Hilton”) (who at the time was a related party) and other third parties, including licenses to use the Hilton Grand Vacations brand. The unaudited condensed consolidated financial statements reflect the effect of these agreements. For the three months ended March 31, 2019 and 2018, we incurred $56 million and $59 million, respectively, in costs relating to the agreements entered with Hilton. See Key Agreements Related to the Spin-Off Part I - Item 1. Business |
Basis of Presentation and Summa
Basis of Presentation and Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Summary of Significant Accounting Policies | Note 2: Basis of Presentation and Summary of Significant Accounting Policies Basis of Presentation The unaudited condensed consolidated financial statements presented herein include 100 percent of our assets, liabilities, revenues, expenses and cash flows as well as all entities in which we have a controlling financial interest. In our opinion, the accompanying unaudited condensed consolidated financial statements reflect all adjustments, including normal recurring items, considered necessary for a fair presentation of the interim periods. All material intercompany transactions and balances have been eliminated in consolidation. The unaudited condensed consolidated financial statements reflect our financial position, results of operations and cash flows as prepared in conformity with U.S. generally accepted accounting principles (“U.S. GAAP”). Certain information and footnote disclosures normally included in financial statements presented in accordance with U.S. GAAP have been omitted in accordance with the rules and regulations of the Securities and Exchange Commission (“SEC”). Although we believe the disclosures made are adequate to prevent information presented from being misleading, these financial statements should be read in conjunction with the consolidated financial statements and notes thereto as of and for the year ended December 31, 2018, included in our Annual Report on Form 10-K filed with the SEC on February 28, 2019. The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported and, accordingly, ultimate results could differ from those estimates. Interim results are not necessarily indicative of full year performance. Summary of Significant Accounting Policies Leases We lease sales centers, office space and equipment under operating leases. We determine if an arrangement is a lease at inception. Amounts related to operating leases are included in Operating lease right-of-use (“ROU”) assets, net Operating lease liabilities ROU assets and operating lease liabilities are recognized based on the present value of lease payments over the lease term as of the commencement date. Because most of our leases do not provide an explicit on implicit rate of return, we use our incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments on an individual lease basis. Our incremental borrowing rate for a lease is the rate of interest we would have to pay on a collateralized basis to borrow an amount equal to the lease payments for the asset under similar terms. We have lease agreements with lease and non-lease components. Our operating leases may require minimum rent payments, contingent rent payments based on a percentage of revenue or income or rental payments adjusted periodically for inflation, or rent payments equal to the greater of a minimum rent or contingent rent. Our leases do not contain any residual value guarantees or material restrictive covenants. Leases with a lease term of 12 months or less are not recorded on the balance sheet and lease expense is recognized on a straight-line basis over the lease term. We currently have no finance leases. We monitor events or changes in circumstances that change the timing or amount of future lease payments which results in the remeasurement of a lease liability, with a corresponding adjustment to the ROU asset. ROU assets for operating leases are periodically reviewed for impairment losses under ASC 360-10, Property, Plant, and Equipment Recently Issued Accounting Pronouncements Adopted Accounting Standards On January 1, 2018, we adopted Accounting Standards Update (ASU) No. 2016-02, Leases Targeted Improvements, . As permitted under the transition guidance in ASC 842, we have made an accounting policy election to adopt the following package of practical expedients: i. to not reassess whether expired or existing contracts are or contain leases; ii. to not reassess lease classification for expired or existing leases; iii. to not reassess any initial direct costs for any existing leases; iv. to not reassess the existence of a lease for existing or expired land easements that were not previously accounted for as leases; v. to record short-term lease payments (less than 12 months) in profit and loss on a straight-line basis over the lease term and variable lease payments in the period in which the obligation for those payments is incurred; and vi. to not prospectively, and upon adoption, separate lease and non-lease components. ROU assets represent our right to use an underlying asset for the lease term and operating lease liabilities represent our obligation to make lease payments arising from the lease. ASC 842 had no impact on our condensed consolidated statements of operations or on our condensed consolidated statements of cash flows. Upon adoption, we recognized ROU assets of $68 million and operating lease liabilities of $80 million for our real estate and equipment operating leases on the condensed consolidated balance sheets. Accounting Standards Not Yet Adopted In June 2016, the FASB issued ASU No. 2016-13, (“ASU 2016-13”), Financial Instruments-Credit Losses Measurement of Credit Losses on Financial Instruments |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 3 Months Ended |
Mar. 31, 2019 | |
Revenue From Contract With Customer [Abstract] | |
Revenue from Contracts with Customers | Note 3: Revenue from Contracts with Customers Disaggregation of Revenue The following tables show our disaggregated revenues by segment from contracts with customers. We operate our business in the following two segments: (i) Real estate sales and financing Resort operations and club management Business Segments Three Months Ended March 31, ($ in millions) 2019 2018 Real Estate and Financing Segment Sales of VOIs, net $ 125 $ 78 Sales, marketing, brand and other fees 141 125 Interest income 36 34 Other financing revenue 5 4 Real estate and financing segment revenues $ 307 $ 241 Three Months Ended March 31, ($ in millions) 2019 2018 Resort Operations and Club Management Segment Club management $ 26 $ 23 Resort management 16 16 Rental (1) 52 53 Ancillary services 7 6 Resort operations and club management segment revenues $ 101 $ 98 (1) : Business Segments Contract Balances The following table provides information on our accounts receivable and contract asset from contracts with customers which are included in Accounts receivable, net ($ in millions) March 31, 2019 December 31, 2018 Receivables $ 122 $ 122 Contract asset 2 — The following table presents the composition of our contract liabilities. ($ in millions) March 31, 2019 December 31, 2018 Contract liabilities: Advanced deposits $ 106 $ 101 Deferred revenues (1) 116 72 Club Bonus Point incentive liability (2) 57 56 (1) (2) Amounts related to the Club Bonus Point incentive liability are included in Accounts payable, accrued expenses and other Revenue earned during the three months ended March 31, 2019 that was included in the contract liabilities balance at December 31, 2018 was approximately $39 million. Accounts receivable for the three months ended March 31, 2019 include amounts associated with our contractual right to consideration for completed performance obligations related primarily to our fee-for-service arrangements and are settled when the related cash is received. Accounts receivable are recorded when the right to consideration becomes unconditional and is only contingent on the passage of time. For the three months ended March 31, 2019 , there were no associated impairment losses. Refer to Note 5: Timeshare Financing Receivables for information on balances and changes in balances during the period related to our t imeshare financing receivables. Contract asset relates to incentive fees that can be earned for meeting certain target on sales of VOIs at properties under our fee-for-service arrangements; however, our right to consideration is conditional upon completing the requirements of the incentive fee period. Contract liabilities include payments received or due in advance of satisfying our performance obligations. Such contract liabilities include advance deposits received on prepaid vacation packages for future stays at our resorts, deferred revenues and the liability for Club Bonus Points awarded to our customers for purchase of VOIs at our properties or properties under our fee-for-service arrangements that may be redeemed in the future. Transaction Price Allocated to Remaining Performance Obligations Transaction price allocated to remaining performance obligations represents contract revenue that has not yet been recognized. Our contracts with remaining performance obligations primarily include (i) sales of VOIs under construction, (ii) Club activation fees paid at closing of a VOI purchase, (iii) customers’ advanced deposits on prepaid vacation packages and (iv) Club Bonus Points that may be redeemed in the future. As of March 31, 2019 and December 31, 2018, we had no remaining performance obligations on sales of VOIs under construction. The following table includes the remaining transaction price related to Advanced deposits, Club activation fees and Club Bonus Points as of March 31, 2019: ($ in millions) Remaining Transaction Price Recognition Period Recognition Method Advanced deposits $ 106 18 months Upon customer stays Club activation fees 64 7 years Straight-line basis over average inventory holding period Club Bonus Points 57 24 months Upon redemption |
Restricted Cash
Restricted Cash | 3 Months Ended |
Mar. 31, 2019 | |
Cash And Cash Equivalents [Abstract] | |
Restricted Cash | Note 4: Restricted Cash Restricted cash was as follows: March 31, December 31, ($ in millions) 2019 2018 Escrow deposits on VOI sales $ 38 $ 45 Reserves related to non-recourse debt (1) 26 27 $ 64 $ 72 (1) See Note 11: Debt & Non-recourse Debt |
Timeshare Financing Receivables
Timeshare Financing Receivables | 3 Months Ended |
Mar. 31, 2019 | |
Receivables [Abstract] | |
Timeshare Financing Receivables | Note 5: Timeshare Financing Receivables Timeshare financing receivables were as follows: March 31, 2019 ($ in millions) Securitized and Pledged Unsecuritized (1) Total Timeshare financing receivables $ 618 $ 662 $ 1,280 Less: allowance for financing receivables losses (39 ) (130 ) (169 ) $ 579 $ 532 $ 1,111 December 31, 2018 ($ in millions) Securitized and Pledged Unsecuritized (1) Total Timeshare financing receivables $ 660 $ 632 $ 1,292 Less: allowance for financing receivables losses (43 ) (129 ) (172 ) $ 617 $ 503 $ 1,120 (1) Includes amounts used as collateral to secure a non-recourse revolving timeshare receivable credit facility ("Timeshare Facility") as well as amounts held as future collateral for upcoming securitization activities. As of March 31, 2019 and December 31, 2018, we had $183 million and $190 million, respectively, of gross timeshare financing receivables securing the outstanding debt balance of our Timeshare Facility. We recognize interest income on our timeshare financing receivables as earned. We record an estimate of variable consideration for estimated defaults as a reduction of revenue from VOI sales at the time revenue is recognized on a VOI sale. Our timeshare financing receivables as of March 31, 2019 mature as follows: ($ in millions) Securitized and Pledged Unsecuritized Total Year 2019 (remaining) $ 63 $ 48 $ 111 2020 84 55 139 2021 83 61 144 2022 80 66 146 2023 78 70 148 Thereafter 230 362 592 618 662 1,280 Less: allowance for financing receivables losses (39 ) (130 ) (169 ) $ 579 $ 532 $ 1,111 We evaluate this portfolio collectively for purposes of estimating variable consideration, since we hold a large group of homogeneous timeshare financing receivables which are individually immaterial. We monitor the credit quality of our receivables on an ongoing basis. There are no significant concentrations of credit risk with any individual counterparty or groups of counterparties. We use a technique referred to as static pool analysis as the basis for determining our allowance for financing receivables losses on our timeshare financing receivables. For static pool analysis, we use certain key dimensions to stratify our portfolio, including FICO scores, equity percentage at the time of sale and certain other factors. The adequacy of the related allowance is determined by management through analysis of several factors, such as current economic conditions and industry trends, as well as the specific risk characteristics of the portfolio including assumed default rates, aging and historical write-offs of these receivables. The allowance is maintained at a level deemed adequate by management based on a periodic analysis of the mortgage portfolio. We recognize interest income on our timeshare financing receivables as earned. The interest rate charged on the notes correlates to the risk profile of the customer at the time of purchase and the percentage of the purchase that is financed, among other factors. As of March 31, 2019, our timeshare financing receivables had interest rates ranging from 5.25 percent to 20.50 percent, a weighted-average interest rate of 12.31 percent, a weighted-average remaining term of 7.7 years and maturities through 2031. Our gross timeshare financing receivables balances by FICO score were as follows: March 31, December 31, ($ in millions) 2019 2018 FICO score 700+ $ 837 $ 843 600-699 232 237 <600 27 27 No score (1) 184 185 $ 1,280 $ 1,292 (1) Timeshare financing receivables without a FICO score are primarily related to foreign borrowers. We apply payments we receive for timeshare financing receivables , including those in non-accrual status, to amounts due in the following order: servicing fees; interest; principal; and late charges. Once a receivable is 91 days past due, we cease accruing interest and reverse the accrued interest recognized up to that point. We resume interest accrual for receivables for which we had previously ceased accruing interest once the receivable is less than 91 days past due. We fully reserve for a timeshare financing receivable in the month following the date that the receivable i s 121 days past due and, subsequently, we write off the uncollectible balance against the reserve once the foreclosure process is complete and we receive the deed for the foreclosed unit. As of March 31, 2019 and December 31, 2018, we had ceased accruing interest on timeshare financing receivables with an aggregate principal balance of $68 million and $69 million, respectively. The following tables detail an aged analysis of our gross timeshare financing receivables balance: March 31, 2019 ($ in millions) Securitized and Pledged Unsecuritized Total Current $ 604 $ 587 $ 1,191 31 - 90 days past due 9 12 21 91 - 120 days past due 3 4 7 121 days and greater past due 2 59 61 $ 618 $ 662 $ 1,280 December 31, 2018 ($ in millions) Securitized and Pledged Unsecuritized Total Current $ 648 $ 556 $ 1,204 31 - 90 days past due 8 11 19 91 - 120 days past due 3 3 6 121 days and greater past due 1 62 63 $ 660 $ 632 $ 1,292 The changes in our allowance for financing receivables losses were as follows: March 31, 2019 ($ in millions) Securitized and Pledged Unsecuritized Total Balance as of December 31, 2018 $ 43 $ 129 $ 172 Write-offs — (17 ) (17 ) Provision for financing receivables losses (1) (4 ) 18 14 Balance as of March 31, 2019 $ 39 $ 130 $ 169 March 31, 2018 ($ in millions) Securitized and Pledged Unsecuritized Total Balance as of December 31, 2017 $ 27 $ 114 $ 141 Write-offs — (9 ) (9 ) Provision for financing receivables losses (1) (5 ) 17 12 Balance as of March 31, 2018 $ 22 $ 122 $ 144 (1) Includes incremental provision for financing receivables losses, net of activity related to the repurchase of defaulted and upgraded securitized timeshare financing receivables. |
Inventory
Inventory | 3 Months Ended |
Mar. 31, 2019 | |
Inventory Disclosure [Abstract] | |
Inventory | Note 6: Inventory Inventory was as follows: March 31, December 31, ($ in millions) 2019 2018 Completed unsold VOIs $ 241 $ 243 Construction in process 12 9 Land, infrastructure and other 276 275 $ 529 $ 527 We benefited from $4 million in costs of sales true-ups relating to VOI products for the three months ended March 31, 2019, which resulted in a $4 million increase to the carrying value of inventory as of March 31, 2019. Shown below are expenses incurred, recorded in Cost of VOI sales Three Months Ended March 31, ($ in millions) 2019 2018 Cost of VOI sales related to fee-for-service upgrades $ 9 $ 6 |
Property and Equipment
Property and Equipment | 3 Months Ended |
Mar. 31, 2019 | |
Property Plant And Equipment [Abstract] | |
Property and Equipment | Note 7: Property and Equipment Property and equipment were as follows: March 31, December 31, ($ in millions) 2019 2018 Land 351 268 Building and leasehold improvements 297 295 Furniture and equipment 62 54 Construction in progress 23 25 733 642 Accumulated depreciation (89 ) (83 ) $ 644 $ 559 In January 2019, we acquired land in Maui, Hawaii for future development into timeshare inventory. |
Consolidated Variable Interest
Consolidated Variable Interest Entities | 3 Months Ended |
Mar. 31, 2019 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Consolidated Variable Interest Entities | Note 8: Consolidated Variable Interest Entities As of March 31, 2019 and December 31, 2018, we consolidated four variable interest entities (“VIEs”) that issued Securitized Debt, backed by pledged assets consisting primarily of a pool of timeshare financing receivables, which is without recourse to us. We are the primary beneficiaries of these VIEs as we have the power to direct the activities that most significantly affect their economic performance. We are also the servicer of these timeshare financing receivables and we are required to replace or repurchase timeshare financing receivables that are in default at their outstanding principal amounts. Additionally, we have the obligation to absorb their losses and the right to receive benefits that could be significant to them. Only the assets of our VIEs are available to settle the obligations of the respective entities. Our condensed consolidated balance sheets included the assets and liabilities of these entities, which primarily consisted of the following: March 31, December 31, ($ in millions) 2019 2018 Restricted cash $ 22 $ 23 Timeshare financing receivables, net 580 617 Non-recourse debt (1) 599 639 (1) Net of deferred financing costs. During the three months ended March 31, 2019 and 2018, we did not provide any financial or other support to any VIEs that we were not previously contractually required to provide, nor do we intend to provide such support in the future. |
Investments in Unconsolidated A
Investments in Unconsolidated Affiliates | 3 Months Ended |
Mar. 31, 2019 | |
Equity Method Investments And Joint Ventures [Abstract] | |
Investments in Unconsolidated Affiliates | Note As of March 31, 2019, we have 25 percent and 50 percent ownership interests in BRE Ace LLC and 1776 Holdings LLC, respectively, and that deemed as VIEs. We do not consolidate 1776 Holdings LLC and BRE Ace LLC because we are not the primary beneficiaries. Our investment interests in and equity earned from both VIEs are included in the consolidated balance sheets as Investments in unconsolidated affiliates Equity in earnings from unconsolidated affiliates We held investments in our two unconsolidated affiliates with aggregated debt balances of $487 million and $490 million as of March 31, 2019 and December 31, 2018, respectively. The debt is secured by their assets and is without recourse to us. Our maximum exposure to loss as a result of our investment interests in the two unconsolidated affiliates is primarily limited to (i) the carrying amount of the investments which totals $40 million and $38 million as of March 31, 2019 and December 31, 2018, respectively and (ii) receivables for commission and other fees earned under a fee-for-service arrangement. See Note 17: Related Party Transactions for additional information. |
Other Assets
Other Assets | 3 Months Ended |
Mar. 31, 2019 | |
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract] | |
Other Assets | Note 10: Other Assets Other assets were as follows: March 31, December 31, ($ in millions) 2019 2018 Inventory deposits $ 46 $ 46 Prepaid expenses 48 18 Other 29 31 $ 123 $ 95 |
Debt & Non-recourse Debt
Debt & Non-recourse Debt | 3 Months Ended |
Mar. 31, 2019 | |
Debt Disclosure [Abstract] | |
Debt & Non-recourse Debt | Note 11: Debt & Non-recourse Debt Debt The following table details our outstanding debt balance and its associated interest rates: March 31, December 31, ($ in millions) 2019 2018 Debt (1) Senior secured credit facilities: Term loan with an average rate of 3.995%, due 2023 $ 195 $ 197 Revolver with an average rate of 3.995%, due 2023 290 115 Senior notes with a rate of 6.125%, due 2024 300 300 Other debt 23 — 808 612 Less: unamortized deferred financing costs and discount (2)(3) (8 ) (8 ) $ 800 $ 604 (1) For the three months ended March 31, 2019 and year ended December 31, 2018, weighted-average interest rates were 4.891 percent and 5.170 percent, respectively. (2) Amount includes deferred financing costs related to our term loan and senior notes of $2 million and $6 million, respectively, as of March 31, 2019 and as of December 31, 2018 (3) Amount does not include deferred financing costs of $6 million as of March 31, 2019 and December 31, 2018, relating to our revolving facility included in Other Assets During the three months ended March 31, 2019, we borrowed $195 million and repaid $20 million under the revolving credit facility (“Revolver”) with an interest rate based on one month LIBOR plus 1.50 percent. As of March 31, 2019 and December 31, 201 8 , we had $ 1 million of outstanding letter of credit under the revolving credit facility. We were in compliance with all applicable financial covenants as of March 31, 2019 . Non-recourse Debt The following table details our outstanding non-recourse debt balance and its associated interest rates: March 31, December 31, ($ in millions) 2019 2018 Non-recourse debt (1) Timeshare Facility with an average rate of 3.688%, due 2021 $ 120 $ 120 Securitized Debt with a rate of 2.280%, due 2026 29 33 Securitized Debt with an average rate of 1.810%, due 2026 66 74 Securitized Debt with an average rate of 2.711%, due 2028 191 206 Securitized Debt with an average rate of 3.602%, due 2032 320 333 726 766 Less: unamortized deferred financing costs (2) (6 ) (7 ) $ 720 $ 759 (1) For the three months ended March 31, 2019 and year ended December 31, 2018, weighted-average interest rates were 3.166 percent and 3.126 percent, respectively. (2) Amount relates to Securitized Debt only and does not include deferred financing costs of $2 million and $3 million as of March 31, 2019 and December 31, 2018, respectively, relating to our Timeshare Facility which are included in Other Assets The Timeshare Facility is a non-recourse obligation with a borrowing capacity of $450 million and is payable solely from the pool of timeshare financing receivables pledged as collateral and related assets. The commitment on the Timeshare Facility terminates on March 2020. We are required to deposit payments received from customers on the timeshare financing receivables securing the Timeshare Facility and Securitized Debt into depository accounts maintained by third parties. On a monthly basis, the depository accounts are utilized to make required principal, interest and other payments due under the respective loan agreements. The balances in the depository accounts were $26 million and $27 million as of March 31, 2019 and December 31, 2018, respectively, and were included in Restricted cash Debt Maturities The contractual maturities of our debt and non-recourse debt as of March 31, 2019 were as follows: ($ in millions) Debt Non-recourse Debt Total Year 2019 (remaining) $ 8 $ 150 $ 158 2020 10 166 176 2021 10 207 217 2022 10 64 74 2023 447 77 524 Thereafter 323 62 385 $ 808 $ 726 $ 1,534 |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Note 12: Fair Value Measurements The carrying amounts and estimated fair values of our financial assets and liabilities were as follows: March 31, 2019 Hierarchy Level ($ in millions) Carrying Amount Level 1 Level 3 Assets: Timeshare financing receivables, net (1) $ 1,111 $ — $ 1,348 Liabilities: Debt, net (2) 800 313 512 Non-recourse debt, net (2) 720 — 711 (1) Carrying amount net of allowance for financing receivables losses. (2) Carrying amount net of unamortized deferred financing costs and discount. December 31, 2018 Hierarchy Level ($ in millions) Carrying Amount Level 1 Level 3 Assets: Timeshare financing receivables, net (1) $ 1,120 $ — $ 1,339 Liabilities: Debt, net (2) 604 302 309 Non-recourse debt, net (2) 759 — 753 (1) Carrying amount net of allowance for financing receivables losses. (2) Carrying amount net of unamortized deferred financing costs and discount. Our estimates of the fair values were determined using available market information and appropriate valuation methods. Considerable judgment is necessary to interpret market data and develop the estimated fair values. The table above excludes cash and cash equivalents, restricted cash, accounts receivable, accounts payable, advance deposits and accrued liabilities, all of which had fair values approximating their carrying amounts due to the short maturities and liquidity of these instruments. The estimated fair values of our timeshare financing receivables were determined using a discounted cash flow model. Our model incorporates default rates, coupon rates, credit quality and borrowing terms respective to the portfolio based on current market assumptions for similar types of arrangements. The estimated fair values of our Level 1 debt was based on prices in active debt markets. The estimated fair value of our Level 3 debt and non-recourse debt were as follows: • Debt - based on indicative quotes obtained for similar issuances and projected future cash flows discounted at risk-adjusted rates. • Non-recourse debt - based on projected future cash flows discounted at risk-adjusted rates. We do not have any assets or liabilities measured at fair value on a recurring basis as of March 31, 2019. |
Leases
Leases | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
Leases | Note 13. Leases Operating Leases We lease sales centers, office space and equipment under operating leases. Our leases expire at various dates from 2019 through 2030, with varying renewal and termination options. Our lease terms include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Rent expense for lease payments is recognized on a straight-line basis over the lease term. Rental expense for all operating leases was $6 million for the three months ended March 31, 2019. This amount includes immaterial short-term leases and variable lease costs. Rent expense for all operating leases for the year ended December 31, 2018 was as follows: ($ in millions) Minimum rentals $ 21 Contingent rentals 3 $ 24 Supplemental information related to operating leases for the three months ending March 31, 2019: (in millions) Cash paid for amounts included in the measurement of operating lease liabilities: Operating cash flows from operating leases $ 5 Right-of-use assets obtained in exchange for new operating lease liabilities 1 Weighted-average remaining lease term of operating leases 6.5 years Weighted-average discount rate of operating leases 5.26 % Future minimum lease payments under noncancelable operating leases, due in each of the next five years and thereafter as of March 31, 2019, are as follows: ($ in millions) Operating Leases (1) Year 2019 (remaining) $ 13 2020 17 2021 14 2022 10 2023 10 Thereafter 30 Total future minimum lease payments $ 94 Less: imputed interest (16 ) Present value of lease liabilities $ 78 (1) Operating lease payments exclude $2 million Future minimum lease payments under noncancelable operating leases, due in each of the next five years and thereafter as of December 31, 2018, are as follows: ($ in millions) Operating Leases Year 2019 $ 16 2020 15 2021 14 2022 10 2023 10 Thereafter 29 Total future minimum lease payments $ 94 |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 14: Income Taxes At the end of each quarter, we estimate the effective tax rate expected to be applied for the full year. The effective tax rate is determined by the level and composition of pre-tax income or loss, which is subject to federal, foreign and state and local income taxes. The effective tax rate for the three months ended March 31, 2019 and 2018 |
Share-Based Compensation
Share-Based Compensation | 3 Months Ended |
Mar. 31, 2019 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Share-Based Compensation | Note 15: Share-Based Compensation Stock Plan We issue service-based restricted stock units (“Service RSUs”), service and performance-based restricted stock units (“Performance RSUs”) and nonqualified stock options (“Options”) to certain employees and directors. We recognized share-based compensation expense of $5 million and $3 million during the three months ended March 31, 2019 and 2018, respectively. As of March 31, 2019, unrecognized compensation costs for unvested awards were approximately $46 million, which is expected to be recognized over a weighted average period of 2.1 years. As of March 31, 2019, there were 8,746,301 shares of common stock available for future issuance. Service RSUs During the three months ended March 31, 2019, we issued 475,647 Service RSUs with a weighted-average grant date fair value of $33.25, which generally vest in equal annual installments over three years from the date of grant. Options During the three months ended March 31, 2019 , The weighted-average grant date fair value of these options was $12.29, which was determined using the Black-Scholes-Merton option-pricing model with the following assumptions: Expected volatility 33.1 % Dividend yield — % Risk-free rate 2.6 % Expected term (in years) 6.0 As of March 31, 2019, we had 646,496 Options outstanding that were exercisable. Performance Shares During the three months ended March 31, 2019, we issued 133,660 Performance RSUs with a weighted-average grant date fair value of $33.32. The Performance RSUs are settled at the end of a three-year performance period, with 70 percent of the Performance RSUs subject to achievement based on the Company’s adjusted earnings before interest expense, taxes and depreciation and amortization further adjusted for net impacts and recognitions of revenues and expenses related to sales of VOIs of projects under construction. The remaining 30 percent of the Performance RSUs are subject to the achievement of certain contract sales targets. We determined that the performance conditions for these awards are probable of achievement and, as of March 31, 2019, we recognized compensation expense based on the number of Performance RSUs we expect to vest. |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 31, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Note 16: Earnings Per Share The following table presents the calculation of our basic and diluted earnings per share (“EPS”). The weighted- average shares outstanding used to compute basic EPS and diluted EPS for the three months ended March 31, 2019 is 94,092,147 and 94,597,630, respectively, and for the three months ended March 31, 2018 is 98,620,957 and 99,487,013, respectively. Three Months Ended March 31, ($ and shares outstanding in millions, except per share amounts) 2019 2018 Basic EPS: Numerator: Net Income (1) $ 55 $ 30 Denominator: Weighted average shares outstanding 94 99 Basic EPS $ 0.59 $ 0.31 Diluted EPS: Numerator: Net Income (1) $ 55 $ 30 Denominator: Weighted average shares outstanding 95 99 Diluted EPS $ 0.58 $ 0.30 (1) Net income for the three months ended March 31, 2019 and 2018 was $55,067,801 and $30,170,029, respectively. The dilutive effect of outstanding share-based compensation awards is reflected in diluted earnings per common share by application of the treasury stock method using average market prices during the period. For the three months ended March 31, 2019 and 2018, we excluded |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Mar. 31, 2019 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Note 17: Related Party Transactions BRE Ace LLC In July 2017, we acquired a 25 percent ownership interest in BRE Ace LLC, a VIE, which owns a timeshare resort property and related operations, commonly known as “Elara, by Hilton Grand Vacations.” During each of the three months ended March 31, 2019 and 2018, we recorded $1 million in Equity in earnings from unconsolidated affiliates Three Months Ended March 31, ($ in millions) 2019 2018 Commission and other fees $ 36 $ 32 Also related to the fee-for-service agreement, as of March 31, 2019, we have outstanding receivables of $32 million. 1776 Holding, LLC In March 2018, we entered into an agreement with SCG 1776, LLC to form 1776 Holding, LLC. In conjunction with this agreement we contributed $5 million in cash for a 50 percent ownership interest in 1776 Holding LLC. For the three months ended March 31, 2019, we recorded less than $1 million in loss included in the condensed consolidated statements of operations as Equity in earnings from unconsolidated affiliates. Investments in Unconsolidated Affiliates HNA Tourism Group Co., Ltd (“HNA”) On March 13, 2018, HNA entered into an underwriting agreement with several underwriters to sell 22,250,000 shares of our common stock. In connection with the underwriting offer, we elected to purchase 2,500,000 shares at a price of approximately $44.75 per share. The transactions were completed on March 19, 2018 and HNA ceased to be a related party. |
Business Segments
Business Segments | 3 Months Ended |
Mar. 31, 2019 | |
Segment Reporting [Abstract] | |
Business Segments | Note 18: Business Segments We operate our business through the following two segments: • Real estate sales and financing – • Resort operations and club management – The performance of our operating segments is evaluated primarily based on adjusted earnings before interest expense (excluding non-recourse debt), taxes, depreciation and amortization (“EBITDA”). We define Adjusted EBITDA as EBITDA which has been further adjusted to exclude certain items, including, but not limited to, gains, losses and expenses in connection with: (i) asset dispositions; (ii) foreign currency transactions; (iii) debt restructurings/retirements; (iv) non-cash impairment losses; (v) reorganization costs, including severance and relocation costs; (vi) share-based and other compensation expenses; (vii) costs related to the spin-off; and (viii) other items. We do not include equity in earnings (losses) from unconsolidated affiliates in our measures of segment revenues. Three Months Ended March 31, ($ in millions) 2019 2018 Revenues: Real estate sales and financing $ 307 $ 241 Resort operations and club management (1)(2) 110 98 Total segment revenues 417 339 Cost reimbursements 42 36 Intersegment eliminations (1)(2) (9 ) (8 ) Total revenues $ 450 $ 367 (1) Includes charges to the real estate sales and financing segment from the resort operations and club management segment for discounted stays at properties resulting from marketing packages. These charges totaled $9 million and $8 million for the three months ended March 31, 2019 and 2018. (2) Includes charges to the real estate sales and financing segment from the resort operations and club management segment for the rental of model units to show prospective buyers. These charges totaled less than $1 million for each of the three months ended March 31, 2019 and 2018. The following table presents Adjusted EBITDA for our reportable segments reconciled to net income: Three Months Ended March 31, ($ in millions) 2019 2018 Adjusted EBITDA: Real estate sales and financing (1) $ 80 $ 44 Resort operations and club management (1) 65 59 Segment Adjusted EBITDA 145 103 General and administrative (25 ) (23 ) Depreciation and amortization (10 ) (8 ) License fee expense (23 ) (23 ) Other loss, net (1 ) (1 ) Interest expense (10 ) (7 ) Income tax expense (20 ) (10 ) Equity in earnings from unconsolidated affiliates 1 1 Other adjustment items (2 ) (2 ) Net income $ 55 $ 30 (1) Includes intersegment eliminations. Refer to our table presenting revenues by reportable segment above for additional discussion. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2019 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 19: Commitments and Contingencies We have entered into certain arrangements with developers whereby we have committed to purchase vacation ownership units at a future date to be marketed and sold under our Hilton Grand Vacations brand. As of March 31, 2019, we were committed to purchase approximately $527 million of inventory and land over a period of twelve years. The ultimate amount and timing of the acquisitions is subject to change pursuant to the terms of the respective arrangements, which could also allow for cancellation in certain circumstances. During the three months ended March 31, 2019 and 2018, we purchased $9 million and $4 million, respectively, of VOI inventory as required under our commitments. As of March 31, 2019, our remaining obligation pursuant to these arrangements was expected to be incurred as follows: ($ in millions) Purchase Obligations Year 2019 (remaining) $ 119 2020 162 2021 84 2022 56 2023 52 Thereafter 54 Total $ 527 We are involved in litigation arising from the normal course of business, some of which includes claims for substantial sums. Management has evaluated these legal matters and we believe an unfavorable outcome is either reasonably possible or remote and/or for which possible losses are not reasonably estimable. While the ultimate results of claims and litigation cannot be predicted with certainty, we expect that the ultimate resolution of all pending or threatened claims and litigation as of March 31, 2019, will not have a material effect on our unaudited condensed consolidated financial statements. |
Condensed Consolidating Guarant
Condensed Consolidating Guarantor Financial Information | 3 Months Ended |
Mar. 31, 2019 | |
Condensed Consolidating Guarantor Financial Information [Abstract] | |
Condensed Consolidating Guarantor Financial Information | Note 20: Condensed Consolidating Guarantor Financial Information The following schedules present the unaudited condensed consolidating financial information as of March 31, 2019 and December 31, 2018 and for the three months ended March 31, 2019 and 2018 for the Parent, Subsidiary Issuers, Guarantors and Non-Guarantors. March 31, 2019 ($ in millions) Parent Issuers Guarantors Non- Guarantors Eliminations Total ASSETS Cash and cash equivalents $ 13 $ — $ 122 $ 23 $ — $ 158 Restricted cash — — 38 26 — 64 Accounts receivable, net 25 25 146 18 (68 ) 146 Timeshare financing receivables, net — — 255 856 — 1,111 Inventory — — 497 32 — 529 Property and equipment, net — — 637 7 — 644 Operating lease right of use assets, net 66 — — 66 Investments in unconsolidated affiliates — — 40 — — 40 Intangible assets, net — — 80 — — 80 Other assets — 6 69 48 — 123 Investments in subsidiaries 543 1,314 276 — (2,133 ) — TOTAL ASSETS $ 581 $ 1,345 $ 2,226 $ 1,010 $ (2,201 ) $ 2,961 LIABILITIES AND EQUITY Accounts payable, accrued expenses and other $ 6 $ 25 $ 310 $ 13 $ (68 ) $ 286 Advanced deposits — — 106 — 106 Debt, net — 777 23 — 800 Non-recourse debt, net — — — 720 720 Operating lease liabilities — — 78 — 78 Deferred revenues — — 135 — 135 Deferred income tax liabilities — — 260 1 261 Total equity 575 543 1,314 276 (2,133 ) 575 TOTAL LIABILITIES AND EQUITY $ 581 $ 1,345 $ 2,226 $ 1,010 $ (2,201 ) $ 2,961 December 31, 2018 ($ in millions) Parent Issuers Guarantors Non- Guarantors Eliminations Total ASSETS Cash and cash equivalents $ 4 $ — $ 89 $ 15 $ — $ 108 Restricted cash — — 45 27 — 72 Accounts receivable, net — — 157 17 (21 ) 153 Timeshare financing receivables, net — — 209 911 — 1,120 Inventory — — 502 25 — 527 Property and equipment, net — — 553 6 — 559 Investments in unconsolidated affiliate — — 38 — — 38 Intangible assets, net — — 81 — — 81 Other assets — 6 41 48 — 95 Investments in subsidiaries 612 1,210 277 — (2,099 ) — TOTAL ASSETS $ 616 $ 1,216 $ 1,992 $ 1,049 $ (2,120 ) $ 2,753 LIABILITIES AND EQUITY Accounts payable, accrued expenses and other $ — $ — $ 332 $ 13 $ (21 ) $ 324 Advanced deposits — — 101 — — 101 Debt, net — 604 — — — 604 Non-recourse debt, net — — — 759 — 759 Deferred revenues — — 95 — — 95 Deferred income tax liabilities — — 254 — — 254 Total equity 616 612 1,210 277 (2,099 ) 616 TOTAL LIABILITIES AND EQUITY $ 616 $ 1,216 $ 1,992 $ 1,049 $ (2,120 ) $ 2,753 For the Three Months Ended March 31, 2019 ($ in millions) Parent Issuers Guarantors Non- Guarantors Eliminations Total Revenues Sales of VOIs, net $ — $ — $ 107 $ 18 $ — $ 125 Sales, marketing, license and other fees — — 151 1 (11 ) 141 Financing — — 18 25 (2 ) 41 Resort and club management — — 42 — — 42 Rental and ancillary service — — 58 1 — 59 Cost reimbursements — — 41 1 — 42 Total revenues — — 417 46 (13 ) 450 Expenses Cost of VOI sales — — 33 3 — 36 Sales and marketing — — 170 11 (11 ) 170 Financing — — 4 11 (2 ) 13 Resort and club management — — 11 — — 11 Rental and ancillary services — — 34 1 — 35 General and administrative — — 25 — — 25 Depreciation and amortization — — 10 — — 10 License fee expense — — 22 1 — 23 Cost reimbursements — — 41 1 — 42 Total operating expenses — — 350 28 (13 ) 365 Interest expense — (10 ) — — — (10 ) Dividends from subsidiary 125 125 — — (250 ) — Equity in earnings from unconsolidated affiliates — — 1 — — 1 Other loss, net — — (1 ) — — (1 ) Income (loss) before income taxes 125 115 67 18 (250 ) 75 Income tax expense — — (20 ) — — (20 ) Income (loss) before equity in earnings (loss) from subsidiaries 125 115 47 18 (250 ) 55 Equity in (loss) earnings from subsidiaries (70 ) 65 18 — (13 ) — Net income $ 55 $ 180 $ 65 $ 18 $ (263 ) $ 55 For the Three Months Ended March 31, 2018 ($ in millions) Parent Issuers Guarantors Non- Guarantors Eliminations Total Revenues Sales of VOIs, net $ — $ — $ 77 $ 1 $ — $ 78 Sales, marketing, license and other fees — — 126 1 (2 ) 125 Financing — — 20 19 (1 ) 38 Resort and club management — — 39 — — 39 Rental and ancillary service — — 50 1 — 51 Cost reimbursements — — 35 1 — 36 Total revenues — — 347 23 (3 ) 367 Expenses Cost of VOI sales — — 19 — — 19 Sales and marketing — — 161 2 (2 ) 161 Financing — — 5 7 (1 ) 11 Resort and club management — — 11 — — 11 Rental and ancillary services — — 27 1 — 28 General and administrative — — 23 — — 23 Depreciation and amortization — — 8 — — 8 License fee expense — — 23 — — 23 Cost reimbursements — — 35 1 — 36 Total operating expenses — — 312 11 (3 ) 320 Interest expense — (7 ) — — — (7 ) Equity in earnings from unconsolidated affiliates — — 1 — — 1 Other loss, net — — (1 ) — — (1 ) Income (loss) before income taxes — (7 ) 35 12 — 40 Income tax expense — — (10 ) — — (10 ) Income (loss) before equity in earnings (loss) from subsidiaries — (7 ) 25 12 — 30 Equity in earnings from subsidiaries 30 37 12 — (79 ) — Net income $ 30 $ 30 $ 37 $ 12 $ (79 ) $ 30 For the Three Months Ended March 31, 2019 ($ in millions) Parent Issuers Guarantors Non- Guarantors Eliminations Total Operating Activities Net cash provided by (used in) operating activities $ — $ 140 $ (2 ) $ 66 $ (190 ) $ 14 Investing Activities Capital expenditures for property and equipment — — (5 ) (1 ) — (6 ) Software capitalization costs — — (4 ) — — (4 ) Dividends from subsidiary 100 100 — — (200 ) — Net cash used in investing activities 100 100 (9 ) (1 ) (200 ) (10 ) Financing Activities Issuance of debt — 195 — — — 195 Repayment of debt — (23 ) — — — (23 ) Repayment of non-recourse debt — — — (40 ) — (40 ) Repurchase and retirement of common stock — (92 ) — — — (92 ) Payment of withholding taxes on vesting of restricted stock units — (2 ) — — — (2 ) Intercompany transfers (91 ) (318 ) 37 (18 ) 390 — Net cash provided by (used in) financing activities (91 ) (240 ) 37 (58 ) 390 38 Net increase in cash, cash equivalents and restricted cash 9 — 26 7 — 42 Cash, cash equivalents and restricted cash, beginning of period 4 — 134 42 — 180 Cash, cash equivalents and restricted cash, end of period $ 13 $ — $ 160 $ 49 $ — $ 222 For the Three Months Ended March 31, 2018 ($ in millions) Parent Issuers Guarantors Non- Guarantors Eliminations Total Operating Activities Net cash provided by (used in) operating activities $ — $ (8 ) $ 103 $ (67 ) $ (3 ) $ 25 Investing Activities Capital expenditures for property and equipment — — (12 ) (2 ) — (14 ) Software capitalization costs — — (4 ) — — (4 ) Return on investment from unconsolidated affiliates — — 9 — — 9 Investment in unconsolidated affiliates — — (5 ) — — (5 ) Net cash used in investing activities — — (12 ) (2 ) — (14 ) Financing Activities Repayment of debt — (3 ) — — — (3 ) Repayment of non-recourse debt — — — (39 ) — (39 ) Debt issuance costs — — — (2 ) — (2 ) Repurchase and retirement of common stock — (112 ) — — — (112 ) Payment of withholding taxes on vesting of restricted stock units — (1 ) — — — (1 ) Capital contribution — 3 — — — 3 Intercompany transfers — 121 (231 ) 107 3 — Net cash provided by (used in) financing activities — 8 (231 ) 66 3 (154 ) Net decrease in cash, cash equivalents and restricted cash — — (140 ) (3 ) — (143 ) Cash, cash equivalents and restricted cash, beginning of period — — 259 38 — 297 Cash, cash equivalents and restricted cash, end of period $ — $ — $ 119 $ 35 $ — $ 154 |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 21: Subsequent Events In April 2019, we executed the following transactions: • we repurchased 925,199 shares of our common stock for $30 million; • we borrowed and repaid $100 million and $70 million, respectively, under our Revolver; and • we amended our Timeshare Facility, extending the end of the commitment period from March 2020 to April 2021 while maintaining our borrowing capacity. |
Basis of Presentation and Sum_2
Basis of Presentation and Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The unaudited condensed consolidated financial statements presented herein include 100 percent of our assets, liabilities, revenues, expenses and cash flows as well as all entities in which we have a controlling financial interest. In our opinion, the accompanying unaudited condensed consolidated financial statements reflect all adjustments, including normal recurring items, considered necessary for a fair presentation of the interim periods. All material intercompany transactions and balances have been eliminated in consolidation. The unaudited condensed consolidated financial statements reflect our financial position, results of operations and cash flows as prepared in conformity with U.S. generally accepted accounting principles (“U.S. GAAP”). Certain information and footnote disclosures normally included in financial statements presented in accordance with U.S. GAAP have been omitted in accordance with the rules and regulations of the Securities and Exchange Commission (“SEC”). Although we believe the disclosures made are adequate to prevent information presented from being misleading, these financial statements should be read in conjunction with the consolidated financial statements and notes thereto as of and for the year ended December 31, 2018, included in our Annual Report on Form 10-K filed with the SEC on February 28, 2019. The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported and, accordingly, ultimate results could differ from those estimates. Interim results are not necessarily indicative of full year performance. |
Recently Issued Accounting Pronouncements | Summary of Significant Accounting Policies Leases We lease sales centers, office space and equipment under operating leases. We determine if an arrangement is a lease at inception. Amounts related to operating leases are included in Operating lease right-of-use (“ROU”) assets, net Operating lease liabilities ROU assets and operating lease liabilities are recognized based on the present value of lease payments over the lease term as of the commencement date. Because most of our leases do not provide an explicit on implicit rate of return, we use our incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments on an individual lease basis. Our incremental borrowing rate for a lease is the rate of interest we would have to pay on a collateralized basis to borrow an amount equal to the lease payments for the asset under similar terms. We have lease agreements with lease and non-lease components. Our operating leases may require minimum rent payments, contingent rent payments based on a percentage of revenue or income or rental payments adjusted periodically for inflation, or rent payments equal to the greater of a minimum rent or contingent rent. Our leases do not contain any residual value guarantees or material restrictive covenants. Leases with a lease term of 12 months or less are not recorded on the balance sheet and lease expense is recognized on a straight-line basis over the lease term. We currently have no finance leases. We monitor events or changes in circumstances that change the timing or amount of future lease payments which results in the remeasurement of a lease liability, with a corresponding adjustment to the ROU asset. ROU assets for operating leases are periodically reviewed for impairment losses under ASC 360-10, Property, Plant, and Equipment Recently Issued Accounting Pronouncements Adopted Accounting Standards On January 1, 2018, we adopted Accounting Standards Update (ASU) No. 2016-02, Leases Targeted Improvements, . As permitted under the transition guidance in ASC 842, we have made an accounting policy election to adopt the following package of practical expedients: i. to not reassess whether expired or existing contracts are or contain leases; ii. to not reassess lease classification for expired or existing leases; iii. to not reassess any initial direct costs for any existing leases; iv. to not reassess the existence of a lease for existing or expired land easements that were not previously accounted for as leases; v. to record short-term lease payments (less than 12 months) in profit and loss on a straight-line basis over the lease term and variable lease payments in the period in which the obligation for those payments is incurred; and vi. to not prospectively, and upon adoption, separate lease and non-lease components. ROU assets represent our right to use an underlying asset for the lease term and operating lease liabilities represent our obligation to make lease payments arising from the lease. ASC 842 had no impact on our condensed consolidated statements of operations or on our condensed consolidated statements of cash flows. Upon adoption, we recognized ROU assets of $68 million and operating lease liabilities of $80 million for our real estate and equipment operating leases on the condensed consolidated balance sheets. Accounting Standards Not Yet Adopted Financial Instruments-Credit Losses Measurement of Credit Losses on Financial Instruments |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Revenue From Contract With Customer [Abstract] | |
Schedule of Disaggregated Revenues by Segment from Contracts with Customers | The following tables show our disaggregated revenues by segment from contracts with customers. We operate our business in the following two segments: (i) Real estate sales and financing Resort operations and club management Business Segments Three Months Ended March 31, ($ in millions) 2019 2018 Real Estate and Financing Segment Sales of VOIs, net $ 125 $ 78 Sales, marketing, brand and other fees 141 125 Interest income 36 34 Other financing revenue 5 4 Real estate and financing segment revenues $ 307 $ 241 Three Months Ended March 31, ($ in millions) 2019 2018 Resort Operations and Club Management Segment Club management $ 26 $ 23 Resort management 16 16 Rental (1) 52 53 Ancillary services 7 6 Resort operations and club management segment revenues $ 101 $ 98 (1) : Business Segments |
Schedule of Accounts Receivable and Contract Asset from Contracts with Customers and Composition of Contract Liabilities | The following table provides information on our accounts receivable and contract asset from contracts with customers which are included in Accounts receivable, net ($ in millions) March 31, 2019 December 31, 2018 Receivables $ 122 $ 122 Contract asset 2 — The following table presents the composition of our contract liabilities. ($ in millions) March 31, 2019 December 31, 2018 Contract liabilities: Advanced deposits $ 106 $ 101 Deferred revenues (1) 116 72 Club Bonus Point incentive liability (2) 57 56 (1) (2) Amounts related to the Club Bonus Point incentive liability are included in Accounts payable, accrued expenses and other |
Schedule of Remaining Transaction Price Related to Advanced Deposits Club Activation Fees and Club Bonus Points | The following table includes the remaining transaction price related to Advanced deposits, Club activation fees and Club Bonus Points as of March 31, 2019: ($ in millions) Remaining Transaction Price Recognition Period Recognition Method Advanced deposits $ 106 18 months Upon customer stays Club activation fees 64 7 years Straight-line basis over average inventory holding period Club Bonus Points 57 24 months Upon redemption |
Restricted Cash (Tables)
Restricted Cash (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Cash And Cash Equivalents [Abstract] | |
Schedule of Restricted Cash | Restricted cash was as follows: March 31, December 31, ($ in millions) 2019 2018 Escrow deposits on VOI sales $ 38 $ 45 Reserves related to non-recourse debt (1) 26 27 $ 64 $ 72 (1) See Note 11: Debt & Non-recourse Debt |
Timeshare Financing Receivabl_2
Timeshare Financing Receivables (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Receivables [Abstract] | |
Schedule of financing receivables | Timeshare financing receivables were as follows: March 31, 2019 ($ in millions) Securitized and Pledged Unsecuritized (1) Total Timeshare financing receivables $ 618 $ 662 $ 1,280 Less: allowance for financing receivables losses (39 ) (130 ) (169 ) $ 579 $ 532 $ 1,111 December 31, 2018 ($ in millions) Securitized and Pledged Unsecuritized (1) Total Timeshare financing receivables $ 660 $ 632 $ 1,292 Less: allowance for financing receivables losses (43 ) (129 ) (172 ) $ 617 $ 503 $ 1,120 (1) Includes amounts used as collateral to secure a non-recourse revolving timeshare receivable credit facility ("Timeshare Facility") as well as amounts held as future collateral for upcoming securitization activities. |
Schedule of future payments due from financing receivables | Our timeshare financing receivables as of March 31, 2019 mature as follows: ($ in millions) Securitized and Pledged Unsecuritized Total Year 2019 (remaining) $ 63 $ 48 $ 111 2020 84 55 139 2021 83 61 144 2022 80 66 146 2023 78 70 148 Thereafter 230 362 592 618 662 1,280 Less: allowance for financing receivables losses (39 ) (130 ) (169 ) $ 579 $ 532 $ 1,111 |
Schedule of financing receivables by FICO score | We recognize interest income on our timeshare financing receivables as earned. The interest rate charged on the notes correlates to the risk profile of the customer at the time of purchase and the percentage of the purchase that is financed, among other factors. As of March 31, 2019, our timeshare financing receivables had interest rates ranging from 5.25 percent to 20.50 percent, a weighted-average interest rate of 12.31 percent, a weighted-average remaining term of 7.7 years and maturities through 2031. Our gross timeshare financing receivables balances by FICO score were as follows: March 31, December 31, ($ in millions) 2019 2018 FICO score 700+ $ 837 $ 843 600-699 232 237 <600 27 27 No score (1) 184 185 $ 1,280 $ 1,292 (1) Timeshare financing receivables without a FICO score are primarily related to foreign borrowers. |
Schedule of past due financing receivables | The following tables detail an aged analysis of our gross timeshare financing receivables balance: March 31, 2019 ($ in millions) Securitized and Pledged Unsecuritized Total Current $ 604 $ 587 $ 1,191 31 - 90 days past due 9 12 21 91 - 120 days past due 3 4 7 121 days and greater past due 2 59 61 $ 618 $ 662 $ 1,280 December 31, 2018 ($ in millions) Securitized and Pledged Unsecuritized Total Current $ 648 $ 556 $ 1,204 31 - 90 days past due 8 11 19 91 - 120 days past due 3 3 6 121 days and greater past due 1 62 63 $ 660 $ 632 $ 1,292 |
Schedule of Change in Allowance For Financing Receivables Losses | The changes in our allowance for financing receivables losses were as follows: March 31, 2019 ($ in millions) Securitized and Pledged Unsecuritized Total Balance as of December 31, 2018 $ 43 $ 129 $ 172 Write-offs — (17 ) (17 ) Provision for financing receivables losses (1) (4 ) 18 14 Balance as of March 31, 2019 $ 39 $ 130 $ 169 March 31, 2018 ($ in millions) Securitized and Pledged Unsecuritized Total Balance as of December 31, 2017 $ 27 $ 114 $ 141 Write-offs — (9 ) (9 ) Provision for financing receivables losses (1) (5 ) 17 12 Balance as of March 31, 2018 $ 22 $ 122 $ 144 (1) Includes incremental provision for financing receivables losses, net of activity related to the repurchase of defaulted and upgraded securitized timeshare financing receivables. |
Inventory (Tables)
Inventory (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Inventory Disclosure [Abstract] | |
Schedule of inventory, current | Inventory was as follows: March 31, December 31, ($ in millions) 2019 2018 Completed unsold VOIs $ 241 $ 243 Construction in process 12 9 Land, infrastructure and other 276 275 $ 529 $ 527 |
Schedule of inventory, noncurrent | Inventory was as follows: March 31, December 31, ($ in millions) 2019 2018 Completed unsold VOIs $ 241 $ 243 Construction in process 12 9 Land, infrastructure and other 276 275 $ 529 $ 527 |
Schedule of expense incurred when customers upgrade existing ownership to fee-for-service project | Shown below are expenses incurred, recorded in Cost of VOI sales Three Months Ended March 31, ($ in millions) 2019 2018 Cost of VOI sales related to fee-for-service upgrades $ 9 $ 6 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Property Plant And Equipment [Abstract] | |
Schedule of Property and Equipment | Property and equipment were as follows: March 31, December 31, ($ in millions) 2019 2018 Land 351 268 Building and leasehold improvements 297 295 Furniture and equipment 62 54 Construction in progress 23 25 733 642 Accumulated depreciation (89 ) (83 ) $ 644 $ 559 |
Consolidated Variable Interes_2
Consolidated Variable Interest Entities (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Schedule of Consolidated Variable Interest Entities | Our condensed consolidated balance sheets included the assets and liabilities of these entities, which primarily consisted of the following: March 31, December 31, ($ in millions) 2019 2018 Restricted cash $ 22 $ 23 Timeshare financing receivables, net 580 617 Non-recourse debt (1) 599 639 (1) Net of deferred financing costs. |
Other Assets (Tables)
Other Assets (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract] | |
Schedule of Other Assets | Other assets were as follows: March 31, December 31, ($ in millions) 2019 2018 Inventory deposits $ 46 $ 46 Prepaid expenses 48 18 Other 29 31 $ 123 $ 95 |
Debt & Non-recourse Debt (Table
Debt & Non-recourse Debt (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Outstanding Borrowings | The following table details our outstanding debt balance and its associated interest rates: March 31, December 31, ($ in millions) 2019 2018 Debt (1) Senior secured credit facilities: Term loan with an average rate of 3.995%, due 2023 $ 195 $ 197 Revolver with an average rate of 3.995%, due 2023 290 115 Senior notes with a rate of 6.125%, due 2024 300 300 Other debt 23 — 808 612 Less: unamortized deferred financing costs and discount (2)(3) (8 ) (8 ) $ 800 $ 604 (1) For the three months ended March 31, 2019 and year ended December 31, 2018, weighted-average interest rates were 4.891 percent and 5.170 percent, respectively. (2) Amount includes deferred financing costs related to our term loan and senior notes of $2 million and $6 million, respectively, as of March 31, 2019 and as of December 31, 2018 (3) Amount does not include deferred financing costs of $6 million as of March 31, 2019 and December 31, 2018, relating to our revolving facility included in Other Assets The following table details our outstanding non-recourse debt balance and its associated interest rates: March 31, December 31, ($ in millions) 2019 2018 Non-recourse debt (1) Timeshare Facility with an average rate of 3.688%, due 2021 $ 120 $ 120 Securitized Debt with a rate of 2.280%, due 2026 29 33 Securitized Debt with an average rate of 1.810%, due 2026 66 74 Securitized Debt with an average rate of 2.711%, due 2028 191 206 Securitized Debt with an average rate of 3.602%, due 2032 320 333 726 766 Less: unamortized deferred financing costs (2) (6 ) (7 ) $ 720 $ 759 (1) For the three months ended March 31, 2019 and year ended December 31, 2018, weighted-average interest rates were 3.166 percent and 3.126 percent, respectively. (2) Amount relates to Securitized Debt only and does not include deferred financing costs of $2 million and $3 million as of March 31, 2019 and December 31, 2018, respectively, relating to our Timeshare Facility which are included in Other Assets |
Schedule of Contractual Maturities of Debt | The contractual maturities of our debt and non-recourse debt as of March 31, 2019 were as follows: ($ in millions) Debt Non-recourse Debt Total Year 2019 (remaining) $ 8 $ 150 $ 158 2020 10 166 176 2021 10 207 217 2022 10 64 74 2023 447 77 524 Thereafter 323 62 385 $ 808 $ 726 $ 1,534 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Schedule of Carrying and Estimated Fair Value Amounts | The carrying amounts and estimated fair values of our financial assets and liabilities were as follows: March 31, 2019 Hierarchy Level ($ in millions) Carrying Amount Level 1 Level 3 Assets: Timeshare financing receivables, net (1) $ 1,111 $ — $ 1,348 Liabilities: Debt, net (2) 800 313 512 Non-recourse debt, net (2) 720 — 711 (1) Carrying amount net of allowance for financing receivables losses. (2) Carrying amount net of unamortized deferred financing costs and discount. December 31, 2018 Hierarchy Level ($ in millions) Carrying Amount Level 1 Level 3 Assets: Timeshare financing receivables, net (1) $ 1,120 $ — $ 1,339 Liabilities: Debt, net (2) 604 302 309 Non-recourse debt, net (2) 759 — 753 (1) Carrying amount net of allowance for financing receivables losses. (2) Carrying amount net of unamortized deferred financing costs and discount. |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
Schedule of Rent Expense | ($ in millions) Minimum rentals $ 21 Contingent rentals 3 $ 24 |
Schedule of Supplemental Information Related to Operating Leases | Supplemental information related to operating leases for the three months ending March 31, 2019: (in millions) Cash paid for amounts included in the measurement of operating lease liabilities: Operating cash flows from operating leases $ 5 Right-of-use assets obtained in exchange for new operating lease liabilities 1 Weighted-average remaining lease term of operating leases 6.5 years Weighted-average discount rate of operating leases 5.26 % |
Future Minimum Lease Payments Under Non-Cancelable Operating Leases | Future minimum lease payments under noncancelable operating leases, due in each of the next five years and thereafter as of March 31, 2019, are as follows: ($ in millions) Operating Leases (1) Year 2019 (remaining) $ 13 2020 17 2021 14 2022 10 2023 10 Thereafter 30 Total future minimum lease payments $ 94 Less: imputed interest (16 ) Present value of lease liabilities $ 78 (1) Operating lease payments exclude $2 million Future minimum lease payments under noncancelable operating leases, due in each of the next five years and thereafter as of December 31, 2018, are as follows: ($ in millions) Operating Leases Year 2019 $ 16 2020 15 2021 14 2022 10 2023 10 Thereafter 29 Total future minimum lease payments $ 94 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Schedule of Stock Option Valuation Assumptions | The weighted-average grant date fair value of these options was $12.29, which was determined using the Black-Scholes-Merton option-pricing model with the following assumptions: Expected volatility 33.1 % Dividend yield — % Risk-free rate 2.6 % Expected term (in years) 6.0 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The following table presents the calculation of our basic and diluted earnings per share (“EPS”). The weighted- average shares outstanding used to compute basic EPS and diluted EPS for the three months ended March 31, 2019 is 94,092,147 and 94,597,630, respectively, and for the three months ended March 31, 2018 is 98,620,957 and 99,487,013, respectively. Three Months Ended March 31, ($ and shares outstanding in millions, except per share amounts) 2019 2018 Basic EPS: Numerator: Net Income (1) $ 55 $ 30 Denominator: Weighted average shares outstanding 94 99 Basic EPS $ 0.59 $ 0.31 Diluted EPS: Numerator: Net Income (1) $ 55 $ 30 Denominator: Weighted average shares outstanding 95 99 Diluted EPS $ 0.58 $ 0.30 (1) Net income for the three months ended March 31, 2019 and 2018 was $55,067,801 and $30,170,029, respectively. |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
BRE Ace LLC | |
Related Party Transaction [Line Items] | |
Summary of Amounts Included in Condensed Consolidated Statements of Operations Related to Fee for Service Arrangement | These amounts are summarized in the following table and included in our condensed consolidated statements of operations as of the date they became a related party. Three Months Ended March 31, ($ in millions) 2019 2018 Commission and other fees $ 36 $ 32 |
Business Segments (Tables)
Business Segments (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Segment Reporting [Abstract] | |
Schedule of Segment Revenues Reconciled to Consolidated Amounts | We do not include equity in earnings (losses) from unconsolidated affiliates in our measures of segment revenues. Three Months Ended March 31, ($ in millions) 2019 2018 Revenues: Real estate sales and financing $ 307 $ 241 Resort operations and club management (1)(2) 110 98 Total segment revenues 417 339 Cost reimbursements 42 36 Intersegment eliminations (1)(2) (9 ) (8 ) Total revenues $ 450 $ 367 (1) Includes charges to the real estate sales and financing segment from the resort operations and club management segment for discounted stays at properties resulting from marketing packages. These charges totaled $9 million and $8 million for the three months ended March 31, 2019 and 2018. (2) Includes charges to the real estate sales and financing segment from the resort operations and club management segment for the rental of model units to show prospective buyers. These charges totaled less than $1 million for each of the three months ended March 31, 2019 and 2018. |
Schedule of Adjusted EBITDA Reconciled to Net Income | The following table presents Adjusted EBITDA for our reportable segments reconciled to net income: Three Months Ended March 31, ($ in millions) 2019 2018 Adjusted EBITDA: Real estate sales and financing (1) $ 80 $ 44 Resort operations and club management (1) 65 59 Segment Adjusted EBITDA 145 103 General and administrative (25 ) (23 ) Depreciation and amortization (10 ) (8 ) License fee expense (23 ) (23 ) Other loss, net (1 ) (1 ) Interest expense (10 ) (7 ) Income tax expense (20 ) (10 ) Equity in earnings from unconsolidated affiliates 1 1 Other adjustment items (2 ) (2 ) Net income $ 55 $ 30 (1) Includes intersegment eliminations. Refer to our table presenting revenues by reportable segment above for additional discussion. |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Commitments And Contingencies Disclosure [Abstract] | |
Schedule of Remaining Purchase Obligations | As of March 31, 2019, our remaining obligation pursuant to these arrangements was expected to be incurred as follows: ($ in millions) Purchase Obligations Year 2019 (remaining) $ 119 2020 162 2021 84 2022 56 2023 52 Thereafter 54 Total $ 527 |
Condensed Consolidating Guara_2
Condensed Consolidating Guarantor Financial Information (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Condensed Consolidating Guarantor Financial Information [Abstract] | |
Schedule of Unaudited Condensed Consolidating Guarantor Balance Sheets | The following schedules present the unaudited condensed consolidating financial information as of March 31, 2019 and December 31, 2018 and for the three months ended March 31, 2019 and 2018 for the Parent, Subsidiary Issuers, Guarantors and Non-Guarantors. March 31, 2019 ($ in millions) Parent Issuers Guarantors Non- Guarantors Eliminations Total ASSETS Cash and cash equivalents $ 13 $ — $ 122 $ 23 $ — $ 158 Restricted cash — — 38 26 — 64 Accounts receivable, net 25 25 146 18 (68 ) 146 Timeshare financing receivables, net — — 255 856 — 1,111 Inventory — — 497 32 — 529 Property and equipment, net — — 637 7 — 644 Operating lease right of use assets, net 66 — — 66 Investments in unconsolidated affiliates — — 40 — — 40 Intangible assets, net — — 80 — — 80 Other assets — 6 69 48 — 123 Investments in subsidiaries 543 1,314 276 — (2,133 ) — TOTAL ASSETS $ 581 $ 1,345 $ 2,226 $ 1,010 $ (2,201 ) $ 2,961 LIABILITIES AND EQUITY Accounts payable, accrued expenses and other $ 6 $ 25 $ 310 $ 13 $ (68 ) $ 286 Advanced deposits — — 106 — 106 Debt, net — 777 23 — 800 Non-recourse debt, net — — — 720 720 Operating lease liabilities — — 78 — 78 Deferred revenues — — 135 — 135 Deferred income tax liabilities — — 260 1 261 Total equity 575 543 1,314 276 (2,133 ) 575 TOTAL LIABILITIES AND EQUITY $ 581 $ 1,345 $ 2,226 $ 1,010 $ (2,201 ) $ 2,961 December 31, 2018 ($ in millions) Parent Issuers Guarantors Non- Guarantors Eliminations Total ASSETS Cash and cash equivalents $ 4 $ — $ 89 $ 15 $ — $ 108 Restricted cash — — 45 27 — 72 Accounts receivable, net — — 157 17 (21 ) 153 Timeshare financing receivables, net — — 209 911 — 1,120 Inventory — — 502 25 — 527 Property and equipment, net — — 553 6 — 559 Investments in unconsolidated affiliate — — 38 — — 38 Intangible assets, net — — 81 — — 81 Other assets — 6 41 48 — 95 Investments in subsidiaries 612 1,210 277 — (2,099 ) — TOTAL ASSETS $ 616 $ 1,216 $ 1,992 $ 1,049 $ (2,120 ) $ 2,753 LIABILITIES AND EQUITY Accounts payable, accrued expenses and other $ — $ — $ 332 $ 13 $ (21 ) $ 324 Advanced deposits — — 101 — — 101 Debt, net — 604 — — — 604 Non-recourse debt, net — — — 759 — 759 Deferred revenues — — 95 — — 95 Deferred income tax liabilities — — 254 — — 254 Total equity 616 612 1,210 277 (2,099 ) 616 TOTAL LIABILITIES AND EQUITY $ 616 $ 1,216 $ 1,992 $ 1,049 $ (2,120 ) $ 2,753 |
Schedule of Unaudited Condensed Consolidating Guarantor Statements of Operations | For the Three Months Ended March 31, 2019 ($ in millions) Parent Issuers Guarantors Non- Guarantors Eliminations Total Revenues Sales of VOIs, net $ — $ — $ 107 $ 18 $ — $ 125 Sales, marketing, license and other fees — — 151 1 (11 ) 141 Financing — — 18 25 (2 ) 41 Resort and club management — — 42 — — 42 Rental and ancillary service — — 58 1 — 59 Cost reimbursements — — 41 1 — 42 Total revenues — — 417 46 (13 ) 450 Expenses Cost of VOI sales — — 33 3 — 36 Sales and marketing — — 170 11 (11 ) 170 Financing — — 4 11 (2 ) 13 Resort and club management — — 11 — — 11 Rental and ancillary services — — 34 1 — 35 General and administrative — — 25 — — 25 Depreciation and amortization — — 10 — — 10 License fee expense — — 22 1 — 23 Cost reimbursements — — 41 1 — 42 Total operating expenses — — 350 28 (13 ) 365 Interest expense — (10 ) — — — (10 ) Dividends from subsidiary 125 125 — — (250 ) — Equity in earnings from unconsolidated affiliates — — 1 — — 1 Other loss, net — — (1 ) — — (1 ) Income (loss) before income taxes 125 115 67 18 (250 ) 75 Income tax expense — — (20 ) — — (20 ) Income (loss) before equity in earnings (loss) from subsidiaries 125 115 47 18 (250 ) 55 Equity in (loss) earnings from subsidiaries (70 ) 65 18 — (13 ) — Net income $ 55 $ 180 $ 65 $ 18 $ (263 ) $ 55 For the Three Months Ended March 31, 2018 ($ in millions) Parent Issuers Guarantors Non- Guarantors Eliminations Total Revenues Sales of VOIs, net $ — $ — $ 77 $ 1 $ — $ 78 Sales, marketing, license and other fees — — 126 1 (2 ) 125 Financing — — 20 19 (1 ) 38 Resort and club management — — 39 — — 39 Rental and ancillary service — — 50 1 — 51 Cost reimbursements — — 35 1 — 36 Total revenues — — 347 23 (3 ) 367 Expenses Cost of VOI sales — — 19 — — 19 Sales and marketing — — 161 2 (2 ) 161 Financing — — 5 7 (1 ) 11 Resort and club management — — 11 — — 11 Rental and ancillary services — — 27 1 — 28 General and administrative — — 23 — — 23 Depreciation and amortization — — 8 — — 8 License fee expense — — 23 — — 23 Cost reimbursements — — 35 1 — 36 Total operating expenses — — 312 11 (3 ) 320 Interest expense — (7 ) — — — (7 ) Equity in earnings from unconsolidated affiliates — — 1 — — 1 Other loss, net — — (1 ) — — (1 ) Income (loss) before income taxes — (7 ) 35 12 — 40 Income tax expense — — (10 ) — — (10 ) Income (loss) before equity in earnings (loss) from subsidiaries — (7 ) 25 12 — 30 Equity in earnings from subsidiaries 30 37 12 — (79 ) — Net income $ 30 $ 30 $ 37 $ 12 $ (79 ) $ 30 |
Schedule of Unaudited Condensed Consolidating Guarantor Statements of Cash Flows | For the Three Months Ended March 31, 2019 ($ in millions) Parent Issuers Guarantors Non- Guarantors Eliminations Total Operating Activities Net cash provided by (used in) operating activities $ — $ 140 $ (2 ) $ 66 $ (190 ) $ 14 Investing Activities Capital expenditures for property and equipment — — (5 ) (1 ) — (6 ) Software capitalization costs — — (4 ) — — (4 ) Dividends from subsidiary 100 100 — — (200 ) — Net cash used in investing activities 100 100 (9 ) (1 ) (200 ) (10 ) Financing Activities Issuance of debt — 195 — — — 195 Repayment of debt — (23 ) — — — (23 ) Repayment of non-recourse debt — — — (40 ) — (40 ) Repurchase and retirement of common stock — (92 ) — — — (92 ) Payment of withholding taxes on vesting of restricted stock units — (2 ) — — — (2 ) Intercompany transfers (91 ) (318 ) 37 (18 ) 390 — Net cash provided by (used in) financing activities (91 ) (240 ) 37 (58 ) 390 38 Net increase in cash, cash equivalents and restricted cash 9 — 26 7 — 42 Cash, cash equivalents and restricted cash, beginning of period 4 — 134 42 — 180 Cash, cash equivalents and restricted cash, end of period $ 13 $ — $ 160 $ 49 $ — $ 222 For the Three Months Ended March 31, 2018 ($ in millions) Parent Issuers Guarantors Non- Guarantors Eliminations Total Operating Activities Net cash provided by (used in) operating activities $ — $ (8 ) $ 103 $ (67 ) $ (3 ) $ 25 Investing Activities Capital expenditures for property and equipment — — (12 ) (2 ) — (14 ) Software capitalization costs — — (4 ) — — (4 ) Return on investment from unconsolidated affiliates — — 9 — — 9 Investment in unconsolidated affiliates — — (5 ) — — (5 ) Net cash used in investing activities — — (12 ) (2 ) — (14 ) Financing Activities Repayment of debt — (3 ) — — — (3 ) Repayment of non-recourse debt — — — (39 ) — (39 ) Debt issuance costs — — — (2 ) — (2 ) Repurchase and retirement of common stock — (112 ) — — — (112 ) Payment of withholding taxes on vesting of restricted stock units — (1 ) — — — (1 ) Capital contribution — 3 — — — 3 Intercompany transfers — 121 (231 ) 107 3 — Net cash provided by (used in) financing activities — 8 (231 ) 66 3 (154 ) Net decrease in cash, cash equivalents and restricted cash — — (140 ) (3 ) — (143 ) Cash, cash equivalents and restricted cash, beginning of period — — 259 38 — 297 Cash, cash equivalents and restricted cash, end of period $ — $ — $ 119 $ 35 $ — $ 154 |
Organization - Additional Infor
Organization - Additional Information (Details) $ in Millions | 3 Months Ended | |
Mar. 31, 2019USD ($)propertyunit | Mar. 31, 2018USD ($) | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | ||
Number of timeshare properties | property | 56 | |
Number of units in timeshare properties | unit | 8,966 | |
Costs related to agreements with related parties | $ | $ 56 | $ 59 |
Basis of Presentation and Sum_3
Basis of Presentation and Summary of Significant Accounting Policies - Additional Information (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Jan. 01, 2019 | |
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | |||
Operating lease right of use assets | $ 66 | ||
Operating lease liabilities | [1] | $ 78 | |
ASU 2016-02 | |||
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | |||
Operating lease right of use assets | $ 68 | ||
Operating lease liabilities | $ 80 | ||
[1] | Operating lease payments exclude $2 million |
Revenue from Contracts with C_3
Revenue from Contracts with Customers - Additional Information (Details) | 3 Months Ended | |
Mar. 31, 2019USD ($)segment | Dec. 31, 2018USD ($) | |
Revenue Initial Application Period Cumulative Effect Transition [Line Items] | ||
Number of operating segments | segment | 2 | |
Sales of VOIs | ||
Revenue Initial Application Period Cumulative Effect Transition [Line Items] | ||
Remaining performance obligations | $ 0 | $ 0 |
Topic 606 | ||
Revenue Initial Application Period Cumulative Effect Transition [Line Items] | ||
Revenue earned that was included in the contract liabilities balance | 39,000,000 | |
Topic 606 | Accounts Receivables | ||
Revenue Initial Application Period Cumulative Effect Transition [Line Items] | ||
Impairment losses | $ 0 |
Revenue from Contracts with C_4
Revenue from Contracts with Customers - Schedule of Disaggregated Revenues by Segment from Contracts with Customers (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | ||
Disaggregation Of Revenue [Line Items] | |||
Total revenues | $ 450 | $ 367 | |
Sales of VOIs, Net | |||
Disaggregation Of Revenue [Line Items] | |||
Total revenues | 125 | 78 | |
Sales, Marketing, Brand and Other Fees | |||
Disaggregation Of Revenue [Line Items] | |||
Total revenues | 141 | 125 | |
Real Estate and Financing Segment | |||
Disaggregation Of Revenue [Line Items] | |||
Total revenues | 307 | 241 | |
Real Estate and Financing Segment | Sales of VOIs, Net | |||
Disaggregation Of Revenue [Line Items] | |||
Total revenues | 125 | 78 | |
Real Estate and Financing Segment | Sales, Marketing, Brand and Other Fees | |||
Disaggregation Of Revenue [Line Items] | |||
Total revenues | 141 | 125 | |
Real Estate and Financing Segment | Interest Income | |||
Disaggregation Of Revenue [Line Items] | |||
Total revenues | 36 | 34 | |
Real Estate and Financing Segment | Other Financing Revenue | |||
Disaggregation Of Revenue [Line Items] | |||
Total revenues | 5 | 4 | |
Resort Operations and Club Management Segment | |||
Disaggregation Of Revenue [Line Items] | |||
Total revenues | 101 | 98 | |
Resort Operations and Club Management Segment | Club Management | |||
Disaggregation Of Revenue [Line Items] | |||
Total revenues | 26 | 23 | |
Resort Operations and Club Management Segment | Resort Management | |||
Disaggregation Of Revenue [Line Items] | |||
Total revenues | 16 | 16 | |
Resort Operations and Club Management Segment | Rental | |||
Disaggregation Of Revenue [Line Items] | |||
Total revenues | [1] | 52 | 53 |
Resort Operations and Club Management Segment | Ancillary Services | |||
Disaggregation Of Revenue [Line Items] | |||
Total revenues | $ 7 | $ 6 | |
[1] |
Revenue from Contracts with C_5
Revenue from Contracts with Customers - Schedule of Accounts Receivable and Contract Asset from Contracts with Customers (Details) - Accounts Receivables - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Revenue Initial Application Period Cumulative Effect Transition [Line Items] | ||
Receivables | $ 122 | $ 122 |
Contract asset | $ 2 |
Revenue from Contracts with C_6
Revenue from Contracts with Customers - Composition of Contract Liabilities (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 | |
Revenue Initial Application Period Cumulative Effect Transition [Line Items] | |||
Contract liabilities | $ 135 | $ 95 | |
Topic 606 | Advanced deposits | |||
Revenue Initial Application Period Cumulative Effect Transition [Line Items] | |||
Contract liabilities | 106 | 101 | |
Topic 606 | Deferred revenues | |||
Revenue Initial Application Period Cumulative Effect Transition [Line Items] | |||
Contract liabilities | [1] | 116 | 72 |
Topic 606 | Club Bonus Point incentive liability | |||
Revenue Initial Application Period Cumulative Effect Transition [Line Items] | |||
Contract liabilities | [2] | $ 57 | $ 56 |
[1] | The deferred revenues balance is primarily comprised of (i) Club activation fees that are paid at the closing of a VOI purchase, which grants access to our points-based Club and (ii) annual dues for Club membership renewals | ||
[2] | Amounts related to the Club Bonus Point incentive liability are included in Accounts payable, accrued expenses and other |
Revenue from Contracts with C_7
Revenue from Contracts with Customers - Remaining Transaction Price (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Advanced deposits | |
Revenue Initial Application Period Cumulative Effect Transition [Line Items] | |
Remaining Transaction Price | $ 106 |
Recognition Period | 18 months |
Recognition Method | Upon customer stays |
Club Activation Fees | |
Revenue Initial Application Period Cumulative Effect Transition [Line Items] | |
Remaining Transaction Price | $ 64 |
Recognition Period | 7 years |
Recognition Method | Straight-line basis over average inventory holding period |
Club Bonus Points | |
Revenue Initial Application Period Cumulative Effect Transition [Line Items] | |
Remaining Transaction Price | $ 57 |
Recognition Period | 24 months |
Recognition Method | Upon redemption |
Restricted Cash - Schedule of R
Restricted Cash - Schedule of Restricted Cash (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Restricted cash | $ 64 | $ 72 |
Escrow deposits on VOI sales | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Restricted cash | 38 | 45 |
Reserves related to non-recourse debt | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Restricted cash | $ 26 | $ 27 |
Timeshare Financing Receivabl_3
Timeshare Financing Receivables - Schedule of Timeshare Financing Receivables (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2018 | Dec. 31, 2017 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Timeshare financing receivables | $ 1,280 | $ 1,292 | ||
Less: allowance for financing receivables losses | (169) | (172) | $ (144) | $ (141) |
Timeshare financing receivables, net | 1,111 | 1,120 | ||
Securitized and Pledged | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Timeshare financing receivables | 618 | 660 | ||
Less: allowance for financing receivables losses | (39) | (43) | (22) | (27) |
Timeshare financing receivables, net | 579 | 617 | ||
Unsecuritized | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Timeshare financing receivables | 662 | 632 | ||
Less: allowance for financing receivables losses | (130) | (129) | $ (122) | $ (114) |
Timeshare financing receivables, net | $ 532 | $ 503 |
Timeshare Financing Receivabl_4
Timeshare Financing Receivables - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Dec. 31, 2018 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivable, weighted average interest rate (as a percent) | 12.31% | |
Financing receivable, weighted average remaining term (in years) | 7 years 8 months 12 days | |
Financing receivable weighted average maturities year | 2031 | |
Timeshare financing receivable not accruing interest | $ 68 | $ 69 |
Minimum | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivable, stated interest rate (as a percent) | 5.25% | |
Maximum | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivable, stated interest rate (as a percent) | 20.50% | |
Non-recourse Debt | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Gross timeshare receivables securing the Timeshare Facility | $ 183 | $ 190 |
Timeshare Financing Receivabl_5
Timeshare Financing Receivables - Maturities of Financing Receivables (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2018 | Dec. 31, 2017 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
2019 (remaining) | $ 111 | |||
2020 | 139 | |||
2021 | 144 | |||
2022 | 146 | |||
2023 | 148 | |||
Thereafter | 592 | |||
Timeshare financing receivable maturities, gross | 1,280 | |||
Less: allowance for financing receivables losses | (169) | $ (172) | $ (144) | $ (141) |
Timeshare financing receivable maturities, net | 1,111 | |||
Securitized and Pledged | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
2019 (remaining) | 63 | |||
2020 | 84 | |||
2021 | 83 | |||
2022 | 80 | |||
2023 | 78 | |||
Thereafter | 230 | |||
Timeshare financing receivable maturities, gross | 618 | |||
Less: allowance for financing receivables losses | (39) | (43) | (22) | (27) |
Timeshare financing receivable maturities, net | 579 | |||
Unsecuritized | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
2019 (remaining) | 48 | |||
2020 | 55 | |||
2021 | 61 | |||
2022 | 66 | |||
2023 | 70 | |||
Thereafter | 362 | |||
Timeshare financing receivable maturities, gross | 662 | |||
Less: allowance for financing receivables losses | (130) | $ (129) | $ (122) | $ (114) |
Timeshare financing receivable maturities, net | $ 532 |
Timeshare Financing Receivabl_6
Timeshare Financing Receivables - Financing Receivable by FICO Score (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Financing Receivable, Recorded Investment [Line Items] | ||
Timeshare financing receivables | $ 1,280 | $ 1,292 |
More than 700 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Timeshare financing receivables | 837 | 843 |
600-699 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Timeshare financing receivables | 232 | 237 |
Less than 600 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Timeshare financing receivables | 27 | 27 |
No score | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Timeshare financing receivables | $ 184 | $ 185 |
Timeshare Financing Receivabl_7
Timeshare Financing Receivables - Past Due Financing Receivables (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | $ 1,191 | $ 1,204 |
Financing receivable, past due | 1,280 | 1,292 |
Securitized and Pledged | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 604 | 648 |
Financing receivable, past due | 618 | 660 |
Unsecuritized | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 587 | 556 |
Financing receivable, past due | 662 | 632 |
31 - 90 days past due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivable, past due | 21 | 19 |
31 - 90 days past due | Securitized and Pledged | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivable, past due | 9 | 8 |
31 - 90 days past due | Unsecuritized | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivable, past due | 12 | 11 |
91 - 120 days past due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivable, past due | 7 | 6 |
91 - 120 days past due | Securitized and Pledged | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivable, past due | 3 | 3 |
91 - 120 days past due | Unsecuritized | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivable, past due | 4 | 3 |
121 days and greater past due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivable, past due | 61 | 63 |
121 days and greater past due | Securitized and Pledged | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivable, past due | 2 | 1 |
121 days and greater past due | Unsecuritized | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivable, past due | $ 59 | $ 62 |
Timeshare Financing Receivabl_8
Timeshare Financing Receivables - Schedule of Change in Allowance For Financing Receivables Losses (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||
Allowance for loan loss, beginning balance | $ 172 | $ 141 |
Write-offs | (17) | (9) |
Provision for financing receivables losses | 14 | 12 |
Allowance for loan loss, ending balance | 169 | 144 |
Securitized and Pledged | ||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||
Allowance for loan loss, beginning balance | 43 | 27 |
Write-offs | 0 | 0 |
Provision for financing receivables losses | (4) | (5) |
Allowance for loan loss, ending balance | 39 | 22 |
Unsecuritized | ||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||
Allowance for loan loss, beginning balance | 129 | 114 |
Write-offs | (17) | (9) |
Provision for financing receivables losses | 18 | 17 |
Allowance for loan loss, ending balance | $ 130 | $ 122 |
Inventory - Schedule of Invento
Inventory - Schedule of Inventory, Noncurrent (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Inventory Disclosure [Abstract] | ||
Completed unsold VOIs | $ 241 | $ 243 |
Construction in process | 12 | 9 |
Land, infrastructure and other | 276 | 275 |
Inventory | $ 529 | $ 527 |
Inventory - Additional informat
Inventory - Additional information (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Inventory [Line Items] | ||
Increase (decrease) in inventories due to the true up of cost of sale (less than for the $1 million) | $ 3 | $ 19 |
Time Share | ||
Inventory [Line Items] | ||
Cost of VOI sales (less than for the $1 million) | 4 | |
Increase (decrease) in inventories due to the true up of cost of sale (less than for the $1 million) | $ 4 |
Inventory - Schedule of Expense
Inventory - Schedule of Expenses Incurred, Recorded in Cost of VOI Sales (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Inventory Disclosure [Abstract] | ||
Cost of VOI sales related to fee-for-service upgrades | $ 9 | $ 6 |
Property and Equipment - Schedu
Property and Equipment - Schedule of Property and Equipment (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | $ 733 | $ 642 |
Accumulated depreciation | (89) | (83) |
Property and equipment, net | 644 | 559 |
Land | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 351 | 268 |
Building and Leasehold Improvements | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 297 | 295 |
Furniture and Equipment | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 62 | 54 |
Construction in Progress | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | $ 23 | $ 25 |
Consolidated Variable Interes_3
Consolidated Variable Interest Entities - Additional Information (Details) | 3 Months Ended | ||
Mar. 31, 2019USD ($)entity | Mar. 31, 2018USD ($) | Dec. 31, 2018entity | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |||
Number of VIEs consolidated | entity | 4 | 4 | |
Financial or other support to any VIEs | $ | $ 0 | $ 0 |
Consolidated Variable Interes_4
Consolidated Variable Interest Entities - Schedule of Consolidated Variable Interest Entities (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Variable Interest Entity [Line Items] | ||
Assets, variable interest entity | $ 608 | $ 647 |
Liabilities, variable interest entity | 601 | 640 |
Variable Interest Entity, Primary Beneficiary | Restricted cash | ||
Variable Interest Entity [Line Items] | ||
Assets, variable interest entity | 22 | 23 |
Variable Interest Entity, Primary Beneficiary | Timeshare financing receivables, net | ||
Variable Interest Entity [Line Items] | ||
Assets, variable interest entity | 580 | 617 |
Variable Interest Entity, Primary Beneficiary | Non-recourse debt | ||
Variable Interest Entity [Line Items] | ||
Liabilities, variable interest entity | $ 599 | $ 639 |
Investments in Unconsolidated_2
Investments in Unconsolidated Affiliates - Additional Information (Details) $ in Millions | Mar. 31, 2018Affiliate | Mar. 31, 2019USD ($) | Dec. 31, 2018USD ($) |
Schedule Of Investments [Line Items] | |||
Number of unconsolidated affiliates | Affiliate | 2 | ||
Debt | $ 800 | $ 604 | |
Investments in unconsolidated affiliates | $ 40 | 38 | |
BRE Ace LLC | |||
Schedule Of Investments [Line Items] | |||
Equity method investment, ownership percentage | 25.00% | ||
1776 Holding, LLC | |||
Schedule Of Investments [Line Items] | |||
Equity method investment, ownership percentage | 50.00% | ||
BRE Ace LLC and 1776 Holding, LLC | |||
Schedule Of Investments [Line Items] | |||
Debt | $ 487 | $ 490 |
Other Assets - Schedule of Othe
Other Assets - Schedule of Other Assets (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract] | ||
Inventory deposits | $ 46 | $ 46 |
Prepaid expenses | 48 | 18 |
Other | 29 | 31 |
Other Assets | $ 123 | $ 95 |
Debt & Non-recourse Debt - Sche
Debt & Non-recourse Debt - Schedule of Outstanding Borrowings (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Debt Instrument [Line Items] | ||
Long-term debt, gross | $ 808 | $ 612 |
Less: unamortized deferred financing costs and discount | (8) | (8) |
Long-term debt | 800 | 604 |
Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Less: unamortized deferred financing costs and discount | (6) | (6) |
Revolver with an average rate of 3.995%, due 2023 | Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | 290 | 115 |
Line of Credit | Term loans with an average rate of 3.995%, due 2023 | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | 195 | 197 |
Less: unamortized deferred financing costs and discount | (2) | |
Line of Credit | Senior notes with a rate of 6.125%, due 2024 | ||
Debt Instrument [Line Items] | ||
Less: unamortized deferred financing costs and discount | (6) | |
Senior Notes | Senior notes with a rate of 6.125%, due 2024 | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | 300 | 300 |
Other Debt | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | 23 | 0 |
Non-recourse Debt | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | 726 | 766 |
Less: unamortized deferred financing costs and discount | (6) | (7) |
Long-term debt | 720 | 759 |
Non-recourse Debt | Timeshare Facility with an average rate of 3.688%, due 2021 | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | 120 | 120 |
Less: unamortized deferred financing costs and discount | (2) | (3) |
Non-recourse Debt | Securitized Debt with a rate of 2.280%, due 2026 | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | 29 | 33 |
Non-recourse Debt | Securitized Debt with an average rate of 3.602%, due 2032 | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | 320 | 333 |
Non-recourse Debt | Securitized Debt with an average rate of 1.810%, due 2026 | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | 66 | 74 |
Non-recourse Debt | Securitized Debt with an average rate of 2.711%, due 2028 | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | $ 191 | $ 206 |
Debt & Non-recourse Debt - Sc_2
Debt & Non-recourse Debt - Schedule of Outstanding Borrowings (Parenthetical) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Mar. 31, 2019 | Dec. 31, 2018 | |
Debt Instrument [Line Items] | ||
Debt instrument, average interest rate | 4.891% | 5.17% |
Less: unamortized deferred financing costs and discount | $ (8) | $ (8) |
Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Less: unamortized deferred financing costs and discount | $ (6) | $ (6) |
Revolving Credit Facility | Revolver with an average rate of 3.995%, due 2023 | ||
Debt Instrument [Line Items] | ||
Debt instrument, average interest rate | 3.995% | 3.995% |
Debt instrument, maturity year | 2023 | 2023 |
Line of Credit | Term loans with an average rate of 3.995%, due 2023 | ||
Debt Instrument [Line Items] | ||
Debt instrument, average interest rate | 3.995% | 3.995% |
Debt instrument, maturity year | 2023 | 2023 |
Less: unamortized deferred financing costs and discount | $ (2) | |
Line of Credit | Senior notes with a rate of 6.125%, due 2024 | ||
Debt Instrument [Line Items] | ||
Less: unamortized deferred financing costs and discount | $ (6) | |
Senior Notes | Senior notes with a rate of 6.125%, due 2024 | ||
Debt Instrument [Line Items] | ||
Debt instrument, maturity year | 2024 | 2024 |
Debt instrument, stated interest rate | 6.125% | 6.125% |
Non-recourse Debt | ||
Debt Instrument [Line Items] | ||
Debt instrument, average interest rate | 3.166% | 3.126% |
Less: unamortized deferred financing costs and discount | $ (6) | $ (7) |
Non-recourse Debt | Timeshare Facility with an average rate of 3.688%, due 2021 | ||
Debt Instrument [Line Items] | ||
Debt instrument, maturity year | 2021 | 2021 |
Debt instrument, stated interest rate | 3.688% | 3.688% |
Less: unamortized deferred financing costs and discount | $ (2) | $ (3) |
Non-recourse Debt | Securitized Debt with a rate of 2.280%, due 2026 | ||
Debt Instrument [Line Items] | ||
Debt instrument, average interest rate | 2.28% | 2.28% |
Debt instrument, maturity year | 2026 | 2026 |
Non-recourse Debt | Securitized Debt with an average rate of 1.810%, due 2026 | ||
Debt Instrument [Line Items] | ||
Debt instrument, average interest rate | 1.81% | 1.81% |
Debt instrument, maturity year | 2026 | 2026 |
Non-recourse Debt | Securitized Debt with an average rate of 2.711%, due 2028 | ||
Debt Instrument [Line Items] | ||
Debt instrument, average interest rate | 2.711% | 2.711% |
Debt instrument, maturity year | 2028 | 2028 |
Non-recourse Debt | Securitized Debt with an average rate of 3.602%, due 2032 | ||
Debt Instrument [Line Items] | ||
Debt instrument, average interest rate | 3.602% | 3.602% |
Debt instrument, maturity year | 2032 | 2032 |
Debt & Non-recourse Debt - Addi
Debt & Non-recourse Debt - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Dec. 31, 2018 | |
Debt Instrument [Line Items] | ||
Restricted cash | $ 64 | $ 72 |
Reserves related to non-recourse debt | ||
Debt Instrument [Line Items] | ||
Restricted cash | 26 | 27 |
Timeshare Facility | ||
Debt Instrument [Line Items] | ||
Term loan outstanding | $ 450 | |
Debt instrument commitment termination date | 2020-03 | |
Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Debt instrument borrowed amount | $ 195 | |
Debt instrument repaid amount | $ 20 | |
Interest rate on revolving credit facility description | one month LIBOR | |
Letters of credit outstanding, amount | $ 1 | $ 1 |
Revolving Credit Facility | LIBOR | ||
Debt Instrument [Line Items] | ||
Interest rate on revolving credit facility | 1.50% |
Debt & Non-recourse Debt - Sc_3
Debt & Non-recourse Debt - Schedule of Contractual Maturities of Debt (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Debt Instrument [Line Items] | ||
2019 (remaining) | $ 8 | |
2020 | 10 | |
2021 | 10 | |
2022 | 10 | |
2023 | 447 | |
Thereafter | 323 | |
Long-term debt | 808 | $ 612 |
Non-recourse Debt | ||
Debt Instrument [Line Items] | ||
2019 (remaining) | 150 | |
2020 | 166 | |
2021 | 207 | |
2022 | 64 | |
2023 | 77 | |
Thereafter | 62 | |
Long-term debt | 726 | $ 766 |
Debt and Non-recourse Debt | ||
Debt Instrument [Line Items] | ||
2019 (remaining) | 158 | |
2020 | 176 | |
2021 | 217 | |
2022 | 74 | |
2023 | 524 | |
Thereafter | 385 | |
Long-term debt | $ 1,534 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Carrying and Estimated Fair Value Amounts (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Carrying Amount | ||
Assets: | ||
Timeshare financing receivables, net | $ 1,111 | $ 1,120 |
Liabilities: | ||
Debt, net | 800 | 604 |
Non-recourse debt, net | 720 | 759 |
Level 1 | ||
Assets: | ||
Timeshare financing receivables, net | 0 | 0 |
Liabilities: | ||
Debt, net | 313 | 302 |
Non-recourse debt, net | 0 | 0 |
Level 3 | ||
Assets: | ||
Timeshare financing receivables, net | 1,348 | 1,339 |
Liabilities: | ||
Debt, net | 512 | 309 |
Non-recourse debt, net | $ 711 | $ 753 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Details) - Fair Value, Measurements, Recurring | Mar. 31, 2019USD ($) |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | |
Assets measured at fair value on recurring basis | $ 0 |
Liabilities measured at fair value on recurring basis | $ 0 |
Leases - Additional Information
Leases - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Mar. 31, 2019 | Dec. 31, 2018 | |
Leases [Abstract] | ||
Leases starting expiration date | 2019 | |
Leases ending expiration date | 2030 | |
Operating leases, rent expense | $ 6 | $ 24 |
Operating leases legally binding minimum lease payments, signed but not yet commenced | $ 2 |
Leases - Schedule of Rent Expen
Leases - Schedule of Rent Expense (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Mar. 31, 2019 | Dec. 31, 2018 | |
Schedule Of Rent Expense [Abstract] | ||
Minimum rentals | $ 21 | |
Contingent rentals | 3 | |
Rent expense | $ 6 | $ 24 |
Leases - Schedule of Supplement
Leases - Schedule of Supplemental Information Related to Operating Leases (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Cash paid for amounts included in the measurement of operating lease liabilities: | |
Operating cash flows from operating leases | $ 5 |
Right-of-use assets obtained in exchange for new operating lease liabilities | $ 1 |
Weighted-average remaining lease term of operating leases | 6 years 6 months |
Weighted-average discount rate of operating leases | 5.26% |
Leases - Future Minimum Lease P
Leases - Future Minimum Lease Payments Under Non-Cancelable Operating Leases (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 | ||
Leases [Abstract] | ||||
2019 | $ 16 | |||
2019 (remaining) | [1] | $ 13 | ||
2020 | 17 | [1] | 15 | |
2021 | 14 | [1] | 14 | |
2022 | 10 | [1] | 10 | |
2023 | 10 | [1] | 10 | |
Thereafter | 30 | [1] | 29 | |
Total future minimum lease payments | 94 | [1] | $ 94 | |
Less: imputed interest | [1] | (16) | ||
Present value of lease liabilities | [1] | $ 78 | ||
[1] | Operating lease payments exclude $2 million |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Income Tax Disclosure [Abstract] | ||
Effective income tax rate (as a percent) | 27.00% | 25.00% |
Share-Based Compensation - Addi
Share-Based Compensation - Additional Information (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Allocated share-based compensation expense | $ 5 | $ 3 |
Unrecognized compensation costs for unvested awards | $ 46 | |
Unrecognized compensation costs, weighted average period for recognition | 2 years 1 month 6 days | |
Shares of common stock available for future issuance | 8,746,301 | |
Service Restricted Stock Units (RSUs) | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Shares issued (in shares) | 475,647 | |
Grant date fair value (in dollars per share) | $ 33.25 | |
Service Restricted Stock Units (RSUs) | Minimum | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Award vesting period | 3 years | |
Stock Options | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Shares issued (in shares) | 544,209 | |
Exercise price (in dollars per share) | $ 33.32 | |
Grant date fair value (in dollars per share) | $ 12.29 | |
Stock options exercisable (in shares) | 646,496 | |
Stock Options | Minimum | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Award vesting period | 3 years | |
Performance RSUs | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Shares issued (in shares) | 133,660 | |
Grant date fair value (in dollars per share) | $ 33.32 | |
Award vesting period | 3 years | |
Performance RSUs | Tranche One | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Award vesting percentage | 70.00% | |
Performance RSUs | VOI sale | Tranche Two | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Award vesting percentage | 30.00% |
Share-Based Compensation - Opti
Share-Based Compensation - Options Assumptions (Details) - Stock Options | 3 Months Ended |
Mar. 31, 2019 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Expected volatility | 33.10% |
Dividend yield | 0.00% |
Risk-free rate | 2.60% |
Expected term (in years) | 6 years |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Details) - shares | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Weighted average shares outstanding, Basic | 94,092,147 | 98,620,957 |
Weighted average shares outstanding, diluted | 94,597,630 | 99,487,013 |
Stock Compensation Plan | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of EPS | 948,248 | 136,675 |
Earnings Per Share - Schedule o
Earnings Per Share - Schedule of Earnings Per Share, Basic and Diluted (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | ||
Numerator: | |||
Net income | [1] | $ 55,067,801 | $ 30,170,029 |
Denominator: | |||
Weighted average shares outstanding, Basic | 94,092,147 | 98,620,957 | |
Basic EPS | $ 0.59 | $ 0.31 | |
Denominator: | |||
Weighted average shares outstanding, diluted | 94,597,630 | 99,487,013 | |
Diluted EPS | $ 0.58 | $ 0.30 | |
[1] | Net income for the three months ended March 31, 2019 and 2018 was $55,067,801 and $30,170,029, respectively. |
Earnings Per Share - Schedule_2
Earnings Per Share - Schedule of Earnings Per Share, Basic and Diluted (Parenthetical) (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | ||
Earnings Per Share [Abstract] | |||
Net income | [1] | $ 55,067,801 | $ 30,170,029 |
[1] | Net income for the three months ended March 31, 2019 and 2018 was $55,067,801 and $30,170,029, respectively. |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Details) - USD ($) $ / shares in Units, $ in Millions | Mar. 23, 2018 | Mar. 13, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | Jul. 31, 2017 |
Related Party Transaction [Line Items] | |||||
Equity in earnings (loss) from unconsolidated affiliates | $ 1 | $ 1 | |||
Due from related parties | 32 | ||||
Underwriting Agreement | |||||
Related Party Transaction [Line Items] | |||||
Stock purchased, shares | 2,500,000 | ||||
Sale of stock completion date | Mar. 19, 2018 | ||||
Underwriting Agreement | Common Stock | |||||
Related Party Transaction [Line Items] | |||||
Sale of stock (in shares) | 22,250,000 | ||||
Stock price per share | $ 44.75 | ||||
BRE Ace LLC | |||||
Related Party Transaction [Line Items] | |||||
Equity in earnings (loss) from unconsolidated affiliates | 1 | $ 1 | |||
Equity method investment, ownership percentage | 25.00% | ||||
1776 Holding, LLC | |||||
Related Party Transaction [Line Items] | |||||
Equity method investment, ownership percentage | 50.00% | ||||
Cash contributed to an equity method investment | $ 5 | ||||
1776 Holding, LLC | Maximum | |||||
Related Party Transaction [Line Items] | |||||
Equity in earnings (loss) from unconsolidated affiliates | $ (1) |
Related Party Transactions - Su
Related Party Transactions - Summary of Amounts Included in Condensed Consolidated Statements of Operations Related to Fee for Service Arrangement (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
BRE Ace LLC | ||
Related Party Transaction [Line Items] | ||
Commission and other fees | $ 36 | $ 32 |
Business Segments - Additional
Business Segments - Additional Information (Details) | 3 Months Ended |
Mar. 31, 2019segment | |
Segment Reporting [Abstract] | |
Number of operating segments | 2 |
Business Segments - Schedule of
Business Segments - Schedule of Segment Revenues Reconciled to Consolidated Amounts (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Total revenues | $ 450 | $ 367 |
Real Estate and Financing Segment | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Total revenues | 307 | 241 |
Resort Operations and Club Management Segment | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Total revenues | 101 | 98 |
Operating segments | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Total revenues | 417 | 339 |
Operating segments | Real Estate and Financing Segment | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Total revenues | 307 | 241 |
Operating segments | Resort Operations and Club Management Segment | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Total revenues | 110 | 98 |
Segment Reconciling Items | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Total revenues | 42 | 36 |
Intersegment eliminations | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Total revenues | $ (9) | $ (8) |
Business Segments - Schedule _2
Business Segments - Schedule of Segment Revenues Reconciled to Consolidated Amounts (Parenthetical) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Total revenues | $ 450 | $ 367 |
Intersegment eliminations | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Total revenues | (9) | (8) |
Intersegment eliminations | Maximum | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Rental expense for model units | 1 | 1 |
Intersegment eliminations | Promotional Allowances | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Total revenues | $ (9) | $ (8) |
Business Segments - Schedule _3
Business Segments - Schedule of Adjusted EBITDA Reconciled to Net Income (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
General and administrative | $ (25,000,000) | $ (23,000,000) | |
Depreciation and amortization | (10,000,000) | (8,000,000) | |
Other loss, net | (1,000,000) | (1,000,000) | |
Interest expense | (10,000,000) | (7,000,000) | |
Income tax expense | (20,000,000) | (10,000,000) | |
Equity in earnings from unconsolidated affiliates | 1,000,000 | 1,000,000 | |
Net income | [1] | 55,067,801 | 30,170,029 |
Operating segments | |||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
Segment Adjusted EBITDA | 145,000,000 | 103,000,000 | |
Operating segments | Real Estate and Financing Segment | |||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
Segment Adjusted EBITDA | 80,000,000 | 44,000,000 | |
Operating segments | Resort Operations and Club Management Segment | |||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
Segment Adjusted EBITDA | 65,000,000 | 59,000,000 | |
Segment Reconciling Items | |||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
General and administrative | (25,000,000) | (23,000,000) | |
Depreciation and amortization | (10,000,000) | (8,000,000) | |
License fee expense | (23,000,000) | (23,000,000) | |
Other loss, net | (1,000,000) | (1,000,000) | |
Interest expense | (10,000,000) | (7,000,000) | |
Income tax expense | (20,000,000) | (10,000,000) | |
Equity in earnings from unconsolidated affiliates | 1,000,000 | 1,000,000 | |
Other adjustment items | $ (2,000,000) | $ (2,000,000) | |
[1] | Net income for the three months ended March 31, 2019 and 2018 was $55,067,801 and $30,170,029, respectively. |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Long-term Purchase Commitment [Line Items] | ||
Reasonably estimable of possible losses | $ 0 | |
Inventories | ||
Long-term Purchase Commitment [Line Items] | ||
Purchase commitment | $ 527,000,000 | |
Purchase commitment, period (in years) | 12 years | |
Purchase commitment, purchases made | $ 9,000,000 | $ 4,000,000 |
Commitments and Contingencies_2
Commitments and Contingencies - Schedule of Remaining Purchase Obligations (Details) - Inventories $ in Millions | Mar. 31, 2019USD ($) |
Long-term Purchase Commitment [Line Items] | |
2019 (remaining) | $ 119 |
2020 | 162 |
2021 | 84 |
2022 | 56 |
2023 | 52 |
Thereafter | 54 |
Total | $ 527 |
Condensed Consolidating Guara_3
Condensed Consolidating Guarantor Financial Information - Balance Sheet (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | |
ASSETS | |||||
Cash and cash equivalents | $ 158 | $ 108 | |||
Restricted cash | 64 | 72 | |||
Accounts receivable, net | 146 | 153 | |||
Timeshare financing receivables, net | 1,111 | 1,120 | |||
Inventory | 529 | 527 | |||
Property and equipment, net | 644 | 559 | |||
Operating lease right of use assets, net | 66 | ||||
Investments in unconsolidated affiliates | 40 | 38 | |||
Intangible assets, net | 80 | 81 | |||
Other assets | 123 | 95 | |||
Investments in subsidiaries | 0 | 0 | |||
TOTAL ASSETS (variable interest entities - $608 and $647) | 2,961 | 2,753 | |||
LIABILITIES AND EQUITY | |||||
Accounts payable, accrued expenses and other | 286 | 324 | |||
Advanced deposits | 106 | 101 | |||
Debt, net | 800 | 604 | |||
Non-recourse debt, net | 720 | 759 | |||
Operating lease liabilities | [1] | 78 | |||
Deferred revenues | 135 | 95 | |||
Deferred income tax liabilities | 261 | 254 | |||
Total equity | 575 | 616 | $ 400 | $ 518 | |
TOTAL LIABILITIES AND EQUITY | 2,961 | 2,753 | |||
Parent | |||||
ASSETS | |||||
Cash and cash equivalents | 13 | 4 | |||
Restricted cash | 0 | 0 | |||
Accounts receivable, net | 25 | 0 | |||
Timeshare financing receivables, net | 0 | 0 | |||
Inventory | 0 | 0 | |||
Property and equipment, net | 0 | 0 | |||
Operating lease right of use assets, net | 0 | ||||
Investments in unconsolidated affiliates | 0 | 0 | |||
Intangible assets, net | 0 | 0 | |||
Other assets | 0 | 0 | |||
Investments in subsidiaries | 543 | 612 | |||
TOTAL ASSETS (variable interest entities - $608 and $647) | 581 | 616 | |||
LIABILITIES AND EQUITY | |||||
Accounts payable, accrued expenses and other | 6 | 0 | |||
Advanced deposits | 0 | 0 | |||
Debt, net | 0 | 0 | |||
Non-recourse debt, net | 0 | 0 | |||
Operating lease liabilities | 0 | ||||
Deferred revenues | 0 | 0 | |||
Deferred income tax liabilities | 0 | 0 | |||
Total equity | 575 | 616 | |||
TOTAL LIABILITIES AND EQUITY | 581 | 616 | |||
Issuers | |||||
ASSETS | |||||
Cash and cash equivalents | 0 | 0 | |||
Restricted cash | 0 | 0 | |||
Accounts receivable, net | 25 | 0 | |||
Timeshare financing receivables, net | 0 | 0 | |||
Inventory | 0 | 0 | |||
Property and equipment, net | 0 | 0 | |||
Operating lease right of use assets, net | 0 | ||||
Investments in unconsolidated affiliates | 0 | 0 | |||
Intangible assets, net | 0 | 0 | |||
Other assets | 6 | 6 | |||
Investments in subsidiaries | 1,314 | 1,210 | |||
TOTAL ASSETS (variable interest entities - $608 and $647) | 1,345 | 1,216 | |||
LIABILITIES AND EQUITY | |||||
Accounts payable, accrued expenses and other | 25 | 0 | |||
Advanced deposits | 0 | 0 | |||
Debt, net | 777 | 604 | |||
Non-recourse debt, net | 0 | 0 | |||
Operating lease liabilities | 0 | ||||
Deferred revenues | 0 | 0 | |||
Deferred income tax liabilities | 0 | 0 | |||
Total equity | 543 | 612 | |||
TOTAL LIABILITIES AND EQUITY | 1,345 | 1,216 | |||
Guarantors | |||||
ASSETS | |||||
Cash and cash equivalents | 122 | 89 | |||
Restricted cash | 38 | 45 | |||
Accounts receivable, net | 146 | 157 | |||
Timeshare financing receivables, net | 255 | 209 | |||
Inventory | 497 | 502 | |||
Property and equipment, net | 637 | 553 | |||
Operating lease right of use assets, net | 66 | ||||
Investments in unconsolidated affiliates | 40 | 38 | |||
Intangible assets, net | 80 | 81 | |||
Other assets | 69 | 41 | |||
Investments in subsidiaries | 276 | 277 | |||
TOTAL ASSETS (variable interest entities - $608 and $647) | 2,226 | 1,992 | |||
LIABILITIES AND EQUITY | |||||
Accounts payable, accrued expenses and other | 310 | 332 | |||
Advanced deposits | 106 | 101 | |||
Debt, net | 23 | 0 | |||
Non-recourse debt, net | 0 | 0 | |||
Operating lease liabilities | 78 | ||||
Deferred revenues | 135 | 95 | |||
Deferred income tax liabilities | 260 | 254 | |||
Total equity | 1,314 | 1,210 | |||
TOTAL LIABILITIES AND EQUITY | 2,226 | 1,992 | |||
Non-Guarantors | |||||
ASSETS | |||||
Cash and cash equivalents | 23 | 15 | |||
Restricted cash | 26 | 27 | |||
Accounts receivable, net | 18 | 17 | |||
Timeshare financing receivables, net | 856 | 911 | |||
Inventory | 32 | 25 | |||
Property and equipment, net | 7 | 6 | |||
Operating lease right of use assets, net | 0 | ||||
Investments in unconsolidated affiliates | 0 | 0 | |||
Intangible assets, net | 0 | 0 | |||
Other assets | 48 | 48 | |||
Investments in subsidiaries | 0 | 0 | |||
TOTAL ASSETS (variable interest entities - $608 and $647) | 1,010 | 1,049 | |||
LIABILITIES AND EQUITY | |||||
Accounts payable, accrued expenses and other | 13 | 13 | |||
Advanced deposits | 0 | 0 | |||
Debt, net | 0 | 0 | |||
Non-recourse debt, net | 720 | 759 | |||
Operating lease liabilities | 0 | ||||
Deferred revenues | 0 | 0 | |||
Deferred income tax liabilities | 1 | 0 | |||
Total equity | 276 | 277 | |||
TOTAL LIABILITIES AND EQUITY | 1,010 | 1,049 | |||
Eliminations | |||||
ASSETS | |||||
Cash and cash equivalents | 0 | 0 | |||
Restricted cash | 0 | 0 | |||
Accounts receivable, net | (68) | (21) | |||
Timeshare financing receivables, net | 0 | 0 | |||
Inventory | 0 | 0 | |||
Property and equipment, net | 0 | 0 | |||
Operating lease right of use assets, net | 0 | ||||
Investments in unconsolidated affiliates | 0 | 0 | |||
Intangible assets, net | 0 | 0 | |||
Other assets | 0 | 0 | |||
Investments in subsidiaries | (2,133) | (2,099) | |||
TOTAL ASSETS (variable interest entities - $608 and $647) | (2,201) | (2,120) | |||
LIABILITIES AND EQUITY | |||||
Accounts payable, accrued expenses and other | (68) | (21) | |||
Advanced deposits | 0 | 0 | |||
Debt, net | 0 | 0 | |||
Non-recourse debt, net | 0 | 0 | |||
Operating lease liabilities | 0 | ||||
Deferred revenues | 0 | 0 | |||
Deferred income tax liabilities | 0 | 0 | |||
Total equity | (2,133) | (2,099) | |||
TOTAL LIABILITIES AND EQUITY | $ (2,201) | $ (2,120) | |||
[1] | Operating lease payments exclude $2 million |
Condensed Consolidating Guara_4
Condensed Consolidating Guarantor Financial Information - Statements of Operations (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | ||
Revenues | |||
Total revenues | $ 450,000,000 | $ 367,000,000 | |
Expenses | |||
General and administrative | 25,000,000 | 23,000,000 | |
Depreciation and amortization | 10,000,000 | 8,000,000 | |
Total operating expenses | 365,000,000 | 320,000,000 | |
Interest expense | (10,000,000) | (7,000,000) | |
Equity in earnings from unconsolidated affiliates | 1,000,000 | 1,000,000 | |
Other loss, net | (1,000,000) | (1,000,000) | |
Income before income taxes | 75,000,000 | 40,000,000 | |
Income tax expense | (20,000,000) | (10,000,000) | |
Income (loss) before equity in earnings (loss) from subsidiaries | 55,000,000 | 30,000,000 | |
Net income | [1] | 55,067,801 | 30,170,029 |
Eliminations | |||
Revenues | |||
Total revenues | (13,000,000) | (3,000,000) | |
Expenses | |||
Total operating expenses | (13,000,000) | (3,000,000) | |
Dividends from subsidiary | (250,000,000) | ||
Income before income taxes | (250,000,000) | ||
Income (loss) before equity in earnings (loss) from subsidiaries | (250,000,000) | ||
Equity in (loss) earnings from subsidiaries | (13,000,000) | (79,000,000) | |
Net income | (263,000,000) | (79,000,000) | |
Sales of VOIs, Net | |||
Revenues | |||
Total revenues | 125,000,000 | 78,000,000 | |
Sales, marketing, license and other fees | |||
Revenues | |||
Total revenues | 141,000,000 | 125,000,000 | |
Sales, marketing, license and other fees | Eliminations | |||
Revenues | |||
Total revenues | (11,000,000) | (2,000,000) | |
Financing | |||
Revenues | |||
Total revenues | 41,000,000 | 38,000,000 | |
Expenses | |||
Expenses | 13,000,000 | 11,000,000 | |
Financing | Eliminations | |||
Revenues | |||
Total revenues | (2,000,000) | (1,000,000) | |
Expenses | |||
Expenses | (2,000,000) | (1,000,000) | |
Resort and Club Management | |||
Revenues | |||
Total revenues | 42,000,000 | 39,000,000 | |
Expenses | |||
Expenses | 11,000,000 | 11,000,000 | |
Rental and Ancillary Services | |||
Revenues | |||
Total revenues | 59,000,000 | 51,000,000 | |
Expenses | |||
Expenses | 35,000,000 | 28,000,000 | |
Cost Reimbursements | |||
Revenues | |||
Total revenues | 42,000,000 | 36,000,000 | |
Expenses | |||
Expenses | 42,000,000 | 36,000,000 | |
Cost of VOI Sales | |||
Expenses | |||
Expenses | 36,000,000 | 19,000,000 | |
Sales and Marketing | |||
Expenses | |||
Expenses | 170,000,000 | 161,000,000 | |
Sales and Marketing | Eliminations | |||
Expenses | |||
Expenses | (11,000,000) | (2,000,000) | |
License Fee Expense | |||
Expenses | |||
Expenses | 23,000,000 | 23,000,000 | |
Parent | |||
Expenses | |||
Dividends from subsidiary | 125,000,000 | ||
Income before income taxes | 125,000,000 | ||
Income (loss) before equity in earnings (loss) from subsidiaries | 125,000,000 | ||
Equity in (loss) earnings from subsidiaries | (70,000,000) | 30,000,000 | |
Net income | 55,000,000 | 30,000,000 | |
Issuers | |||
Expenses | |||
Interest expense | (10,000,000) | (7,000,000) | |
Dividends from subsidiary | 125,000,000 | ||
Income before income taxes | 115,000,000 | (7,000,000) | |
Income (loss) before equity in earnings (loss) from subsidiaries | 115,000,000 | (7,000,000) | |
Equity in (loss) earnings from subsidiaries | 65,000,000 | 37,000,000 | |
Net income | 180,000,000 | 30,000,000 | |
Guarantors | |||
Revenues | |||
Total revenues | 417,000,000 | 347,000,000 | |
Expenses | |||
General and administrative | 25,000,000 | 23,000,000 | |
Depreciation and amortization | 10,000,000 | 8,000,000 | |
Total operating expenses | 350,000,000 | 312,000,000 | |
Equity in earnings from unconsolidated affiliates | 1,000,000 | 1,000,000 | |
Other loss, net | (1,000,000) | (1,000,000) | |
Income before income taxes | 67,000,000 | 35,000,000 | |
Income tax expense | (20,000,000) | (10,000,000) | |
Income (loss) before equity in earnings (loss) from subsidiaries | 47,000,000 | 25,000,000 | |
Equity in (loss) earnings from subsidiaries | 18,000,000 | 12,000,000 | |
Net income | 65,000,000 | 37,000,000 | |
Guarantors | Sales of VOIs, Net | |||
Revenues | |||
Total revenues | 107,000,000 | 77,000,000 | |
Guarantors | Sales, marketing, license and other fees | |||
Revenues | |||
Total revenues | 151,000,000 | 126,000,000 | |
Guarantors | Financing | |||
Revenues | |||
Total revenues | 18,000,000 | 20,000,000 | |
Expenses | |||
Expenses | 4,000,000 | 5,000,000 | |
Guarantors | Resort and Club Management | |||
Revenues | |||
Total revenues | 42,000,000 | 39,000,000 | |
Expenses | |||
Expenses | 11,000,000 | 11,000,000 | |
Guarantors | Rental and Ancillary Services | |||
Revenues | |||
Total revenues | 58,000,000 | 50,000,000 | |
Expenses | |||
Expenses | 34,000,000 | 27,000,000 | |
Guarantors | Cost Reimbursements | |||
Revenues | |||
Total revenues | 41,000,000 | 35,000,000 | |
Expenses | |||
Expenses | 41,000,000 | 35,000,000 | |
Guarantors | Cost of VOI Sales | |||
Expenses | |||
Expenses | 33,000,000 | 19,000,000 | |
Guarantors | Sales and Marketing | |||
Expenses | |||
Expenses | 170,000,000 | 161,000,000 | |
Guarantors | License Fee Expense | |||
Expenses | |||
Expenses | 22,000,000 | 23,000,000 | |
Non-Guarantors | |||
Revenues | |||
Total revenues | 46,000,000 | 23,000,000 | |
Expenses | |||
Total operating expenses | 28,000,000 | 11,000,000 | |
Income before income taxes | 18,000,000 | 12,000,000 | |
Income (loss) before equity in earnings (loss) from subsidiaries | 18,000,000 | 12,000,000 | |
Net income | 18,000,000 | 12,000,000 | |
Non-Guarantors | Sales of VOIs, Net | |||
Revenues | |||
Total revenues | 18,000,000 | 1,000,000 | |
Non-Guarantors | Sales, marketing, license and other fees | |||
Revenues | |||
Total revenues | 1,000,000 | 1,000,000 | |
Non-Guarantors | Financing | |||
Revenues | |||
Total revenues | 25,000,000 | 19,000,000 | |
Expenses | |||
Expenses | 11,000,000 | 7,000,000 | |
Non-Guarantors | Rental and Ancillary Services | |||
Revenues | |||
Total revenues | 1,000,000 | 1,000,000 | |
Expenses | |||
Expenses | 1,000,000 | 1,000,000 | |
Non-Guarantors | Cost Reimbursements | |||
Revenues | |||
Total revenues | 1,000,000 | 1,000,000 | |
Expenses | |||
Expenses | 1,000,000 | 1,000,000 | |
Non-Guarantors | Cost of VOI Sales | |||
Expenses | |||
Expenses | 3,000,000 | ||
Non-Guarantors | Sales and Marketing | |||
Expenses | |||
Expenses | 11,000,000 | $ 2,000,000 | |
Non-Guarantors | License Fee Expense | |||
Expenses | |||
Expenses | $ 1,000,000 | ||
[1] | Net income for the three months ended March 31, 2019 and 2018 was $55,067,801 and $30,170,029, respectively. |
Condensed Consolidating Guara_5
Condensed Consolidating Guarantor Financial Information - Statements of Cash Flows (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Operating Activities | ||
Net cash provided by (used in) operating activities | $ 14 | |
Net cash provided by (used in) operating activities | 14 | $ 25 |
Investing Activities | ||
Capital expenditures for property and equipment | (6) | (14) |
Software capitalization costs | (4) | (4) |
Net cash used in investing activities | (10) | (14) |
Return on investment from unconsolidated affiliates | 9 | |
Investment in unconsolidated affiliates | (5) | |
Financing Activities | ||
Issuance of debt | 195 | |
Repayment of debt | (23) | (3) |
Repayment of non-recourse debt | (40) | (39) |
Repurchase and retirement of common stock | (92) | (112) |
Payment of withholding taxes on vesting of restricted stock units | (2) | (1) |
Net cash provided by (used in) financing activities | 38 | (154) |
Debt issuance costs | (2) | |
Capital contribution | 3 | |
Net increase in cash, cash equivalents and restricted cash | 42 | |
Cash, cash equivalents and restricted cash, beginning of period | 180 | 297 |
Cash, cash equivalents and restricted cash, end of period | 222 | 154 |
Net cash provided by (used in) financing activities | (154) | |
Net increase (decrease) in cash, cash equivalents and restricted cash | 42 | (143) |
Eliminations | ||
Operating Activities | ||
Net cash provided by (used in) operating activities | (190) | |
Net cash provided by (used in) operating activities | (3) | |
Investing Activities | ||
Dividends from subsidiary | (200) | |
Net cash used in investing activities | (200) | |
Financing Activities | ||
Intercompany transfers | 390 | 3 |
Net cash provided by (used in) financing activities | 390 | |
Net cash provided by (used in) financing activities | 3 | |
Parent | ||
Investing Activities | ||
Dividends from subsidiary | 100 | |
Net cash used in investing activities | 100 | |
Financing Activities | ||
Intercompany transfers | (91) | |
Net cash provided by (used in) financing activities | (91) | |
Net increase in cash, cash equivalents and restricted cash | 9 | |
Cash, cash equivalents and restricted cash, beginning of period | 4 | |
Cash, cash equivalents and restricted cash, end of period | 13 | |
Issuers | ||
Operating Activities | ||
Net cash provided by (used in) operating activities | 140 | |
Net cash provided by (used in) operating activities | (8) | |
Investing Activities | ||
Dividends from subsidiary | 100 | |
Net cash used in investing activities | 100 | |
Financing Activities | ||
Issuance of debt | 195 | |
Repayment of debt | (23) | (3) |
Repurchase and retirement of common stock | (92) | (112) |
Payment of withholding taxes on vesting of restricted stock units | (2) | (1) |
Intercompany transfers | (318) | 121 |
Net cash provided by (used in) financing activities | (240) | |
Capital contribution | 3 | |
Net cash provided by (used in) financing activities | 8 | |
Guarantors | ||
Operating Activities | ||
Net cash provided by (used in) operating activities | (2) | |
Net cash provided by (used in) operating activities | 103 | |
Investing Activities | ||
Capital expenditures for property and equipment | (5) | (12) |
Software capitalization costs | (4) | (4) |
Net cash used in investing activities | (9) | (12) |
Return on investment from unconsolidated affiliates | 9 | |
Investment in unconsolidated affiliates | (5) | |
Financing Activities | ||
Intercompany transfers | 37 | (231) |
Net cash provided by (used in) financing activities | 37 | |
Net increase in cash, cash equivalents and restricted cash | 26 | |
Cash, cash equivalents and restricted cash, beginning of period | 134 | 259 |
Cash, cash equivalents and restricted cash, end of period | 160 | 119 |
Net cash provided by (used in) financing activities | (231) | |
Net increase (decrease) in cash, cash equivalents and restricted cash | (140) | |
Non-Guarantors | ||
Operating Activities | ||
Net cash provided by (used in) operating activities | 66 | |
Net cash provided by (used in) operating activities | (67) | |
Investing Activities | ||
Capital expenditures for property and equipment | (1) | (2) |
Net cash used in investing activities | (1) | (2) |
Financing Activities | ||
Repayment of non-recourse debt | (40) | (39) |
Intercompany transfers | (18) | 107 |
Net cash provided by (used in) financing activities | (58) | |
Debt issuance costs | (2) | |
Net increase in cash, cash equivalents and restricted cash | 7 | |
Cash, cash equivalents and restricted cash, beginning of period | 42 | 38 |
Cash, cash equivalents and restricted cash, end of period | $ 49 | 35 |
Net cash provided by (used in) financing activities | 66 | |
Net increase (decrease) in cash, cash equivalents and restricted cash | $ (3) |
Subsequent Events - Additional
Subsequent Events - Additional Information (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended |
Apr. 30, 2019 | Mar. 31, 2019 | |
Revolving Credit Facility | ||
Subsequent Event [Line Items] | ||
Debt instrument borrowed amount | $ 195 | |
Debt instrument repaid amount | $ 20 | |
Timeshare Facility | ||
Subsequent Event [Line Items] | ||
Debt instrument commitment termination date | 2020-03 | |
Subsequent Event | ||
Subsequent Event [Line Items] | ||
Number of shares repurchased | 925,199 | |
Average price per share | $ 30 | |
Subsequent Event | Revolving Credit Facility | ||
Subsequent Event [Line Items] | ||
Debt instrument borrowed amount | 100 | |
Debt instrument repaid amount | $ 70 | |
Subsequent Event | Timeshare Facility | ||
Subsequent Event [Line Items] | ||
Debt instrument commitment termination date | 2021-04 |