Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2020 | Apr. 24, 2020 | |
Cover [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, 2020 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 84,987,241 | |
Entity Interactive Data Current | Yes | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Title of 12(b) Security | Common Stock, $0.01 par value per share | |
Trading Symbol | HGV | |
Security Exchange Name | NYSE | |
Entity Shell Company | false | |
Entity File Number | 001-37794 | |
Entity Tax Identification Number | 81-2545345 | |
Entity Address, Address Line One | 6355 MetroWest Boulevard | |
Entity Address, Address Line Two | Suite 180 | |
Entity Address, City or Town | Orlando | |
Entity Address, State or Province | FL | |
Entity Address, Postal Zip Code | 32835 | |
City Area Code | 407 | |
Local Phone Number | 613-3100 | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity Incorporation, State or Country Code | DE |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
ASSETS | ||
Cash and cash equivalents | $ 669 | $ 67 |
Restricted cash | 90 | 85 |
Accounts receivable, net of allowance for credit losses of $17 and $21 | 158 | 174 |
Timeshare financing receivables, net | 1,122 | 1,156 |
Inventory | 885 | 558 |
Property and equipment, net | 473 | 778 |
Operating lease right-of-use assets, net | 62 | 60 |
Investments in unconsolidated affiliates | 47 | 44 |
Intangible assets, net | 78 | 77 |
Other assets | 120 | 80 |
TOTAL ASSETS (variable interest entities - $694 and $748) | 3,704 | 3,079 |
Liabilities: | ||
Accounts payable, accrued expenses and other | 268 | 298 |
Advanced deposits | 117 | 115 |
Debt, net | 1,266 | 828 |
Non-recourse debt, net | 885 | 747 |
Operating lease liabilities | 77 | 76 |
Deferred revenues | 277 | 186 |
Deferred income tax liabilities | 251 | 259 |
Total liabilities (variable interest entities - $694 and $750) | 3,141 | 2,509 |
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, 2020 and December 31, 2019 | ||
Common stock, $0.01 par value; 3,000,000,000 authorized shares, 84,987,241 shares issued and outstanding as of March 31, 2020 and 85,535,501 shares issued and outstanding as of December 31, 2019 | 1 | 1 |
Additional paid-in capital | 172 | 179 |
Accumulated retained earnings | 390 | 390 |
Total equity | 563 | 570 |
TOTAL LIABILITIES AND EQUITY | $ 3,704 | $ 3,079 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Allowance for credit losses receivable | $ 17 | $ 21 |
Assets, variable interest entity | 3,704 | 3,079 |
Liabilities, variable interest entity | $ 3,141 | $ 2,509 |
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) | 84,987,241 | 85,535,501 |
Common Stock, shares outstanding (in shares) | 84,987,241 | 85,535,501 |
Variable Interest Entities | ||
Assets, variable interest entity | $ 694 | $ 748 |
Liabilities, variable interest entity | $ 694 | $ 750 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (UNAUDITED) - USD ($) | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | ||
Revenues | |||
Total revenues | $ 351,000,000 | $ 450,000,000 | |
Expenses | |||
General and administrative | 21,000,000 | 27,000,000 | |
Depreciation and amortization | 12,000,000 | 8,000,000 | |
Total operating expenses | 337,000,000 | 365,000,000 | |
Interest expense | (10,000,000) | (10,000,000) | |
Equity in earnings from unconsolidated affiliates | 3,000,000 | 1,000,000 | |
Other gain (loss), net | 2,000,000 | (1,000,000) | |
Income before income taxes | 9,000,000 | 75,000,000 | |
Income tax expense | (1,000,000) | (20,000,000) | |
Net income | [1] | $ 7,826,746 | $ 55,067,801 |
Earnings per share: | |||
Basic | $ 0.09 | $ 0.59 | |
Diluted | $ 0.09 | $ 0.58 | |
Sales of VOIs, Net | |||
Revenues | |||
Total revenues | $ 56,000,000 | $ 125,000,000 | |
Sales, Marketing, Brand and Other Fees | |||
Revenues | |||
Total revenues | 106,000,000 | 141,000,000 | |
Financing | |||
Revenues | |||
Total revenues | 44,000,000 | 41,000,000 | |
Expenses | |||
Expenses | 13,000,000 | 13,000,000 | |
Resort and Club Management | |||
Revenues | |||
Total revenues | 44,000,000 | 42,000,000 | |
Expenses | |||
Expenses | 12,000,000 | 11,000,000 | |
Rental and Ancillary Services | |||
Revenues | |||
Total revenues | 52,000,000 | 59,000,000 | |
Expenses | |||
Expenses | 37,000,000 | 35,000,000 | |
Cost Reimbursements | |||
Revenues | |||
Total revenues | 49,000,000 | 42,000,000 | |
Expenses | |||
Expenses | 49,000,000 | 42,000,000 | |
Cost of VOI Sales | |||
Expenses | |||
Expenses | 14,000,000 | 36,000,000 | |
Sales and Marketing | |||
Expenses | |||
Expenses | 157,000,000 | 170,000,000 | |
License Fee Expense | |||
Expenses | |||
Expenses | $ 22,000,000 | $ 23,000,000 | |
[1] | Net income for the three months ended March 31, 2020 and 2019 was $7,826,746 and $55,067,801, respectively. |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Cash Flows (UNAUDITED) - USD ($) | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | ||
Operating Activities | |||
Net income | [1] | $ 7,826,746 | $ 55,067,801 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 12,000,000 | 8,000,000 | |
Amortization of deferred financing costs, contract costs, and other | 4,000,000 | 4,000,000 | |
Provision for financing receivables losses | [2] | 37,000,000 | 14,000,000 |
Other (gain) loss, net | (2,000,000) | 1,000,000 | |
Share-based compensation | (2,000,000) | 5,000,000 | |
Deferred income tax (benefit) expense | (8,000,000) | 5,000,000 | |
Equity in earnings from unconsolidated affiliates | (3,000,000) | (1,000,000) | |
Net changes in assets and liabilities: | |||
Accounts receivable, net | 16,000,000 | 7,000,000 | |
Timeshare financing receivables, net | (3,000,000) | (5,000,000) | |
Inventory | (10,000,000) | (3,000,000) | |
Purchases and development of real estate for future conversion to inventory | (5,000,000) | (63,000,000) | |
Other assets | (42,000,000) | (33,000,000) | |
Accounts payable, accrued expenses and other | (42,000,000) | (27,000,000) | |
Advanced deposits | 2,000,000 | 5,000,000 | |
Deferred revenues | 91,000,000 | 41,000,000 | |
Other | 1,000,000 | ||
Net cash provided by operating activities | 53,000,000 | 14,000,000 | |
Investing Activities | |||
Capital expenditures for property and equipment | (3,000,000) | (6,000,000) | |
Software capitalization costs | (5,000,000) | (4,000,000) | |
Net cash used in investing activities | (8,000,000) | (10,000,000) | |
Financing Activities | |||
Issuance of debt | 495,000,000 | 195,000,000 | |
Issuance of non-recourse debt | 195,000,000 | ||
Repayment of debt | (57,000,000) | (23,000,000) | |
Repayment of non-recourse debt | (58,000,000) | (40,000,000) | |
Repurchase and retirement of common stock | (10,000,000) | (92,000,000) | |
Payment of withholding taxes on vesting of restricted stock units | (2,000,000) | (2,000,000) | |
Other financing activity | (1,000,000) | ||
Net cash provided by financing activities | 562,000,000 | 38,000,000 | |
Net increase in cash, cash equivalents and restricted cash | 607,000,000 | 42,000,000 | |
Cash, cash equivalents and restricted cash, beginning of period | 152,000,000 | 180,000,000 | |
Cash, cash equivalents and restricted cash, end of period | 759,000,000 | 222,000,000 | |
Supplemental disclosure of non-cash operating activities: | |||
Non-cash transfer from Inventory to Property and Equipment | [3] | $ 301,000,000 | |
Supplemental disclosure of non-cash financing activities: | |||
Issuance of other debt | $ 23,000,000 | ||
[1] | Net income for the three months ended March 31, 2020 and 2019 was $7,826,746 and $55,067,801, respectively. | ||
[2] | Includes incremental provision for financing receivables losses, net of activity related to the repurchase of defaulted and upgraded securitized timeshare financing receivables. | ||
[3] | See Note 8: Property and Equipment |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Stockholders' Equity (UNAUDITED) - USD ($) | Total | Common Stock | Additional Paid-in Capital | Accumulated Retained Earnings | |
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 | 94,000,000 | ||||
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 | 91,000,000 | ||||
Beginning balance, value at Dec. 31, 2019 | $ 570,000,000 | $ 1,000,000 | 179,000,000 | 390,000,000 | |
Beginning balance, shares at Dec. 31, 2019 | 85,535,501 | 85,000,000 | |||
Net income | $ 7,826,746 | [1] | $ 0 | 0 | 8,000,000 |
Activity related to share-based compensation | (5,000,000) | 0 | (5,000,000) | 0 | |
Repurchase and retirement of common stock | (10,000,000) | $ 0 | (2,000,000) | (8,000,000) | |
Repurchase and retirement of common stock, shares | (1,000,000) | ||||
Ending balance, value at Mar. 31, 2020 | $ 563,000,000 | $ 1,000,000 | $ 172,000,000 | $ 390,000,000 | |
Ending balance, shares at Mar. 31, 2020 | 84,987,241 | 84,000,000 | |||
[1] | Net income for the three months ended March 31, 2020 and 2019 was $7,826,746 and $55,067,801, respectively. |
Organization
Organization | 3 Months Ended |
Mar. 31, 2020 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Organization | Note 1: Organization Our Business Hilton Grand Vacations Inc. (âHilton Grand Vacations,â âwe,â âus,â âour,â âHGVâ or the âCompanyâ) 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 (âVOIsâ) for us and third parties; financing and servicing loans provided to consumers for their timeshare purchases; operating resorts; and managing our points-based Hilton Grand Vacations Club exchange program (collectively the âClubâ). As of March 31, 2020, we had 59 properties, comprised of 9,551 units, located in the United States (âU.S.â), Japan, the United Kingdom, Italy and Barbados. |
Basis of Presentation and Summa
Basis of Presentation and Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2020 | |
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 (âU.S. GAAPâ). 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 (âSECâ). 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, 2019, included in our Annual Report on Form 10-K filed with the SEC on March 2, 2020. 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 Accounts Receivable and Allowance for Credit Losses Accounts receivable primarily consists of trade receivables and is reported at the customersâ outstanding balances, less any allowance for credit losses. The expected credit losses are measured using an expected-loss model that reflects the risk of loss and considers the losses expected over the outstanding period of the receivable. Cloud Computing Arrangements We capitalize certain costs associated with cloud computing arrangements (âCCAsâ). These costs are included in Other assets Derivative Instruments We use derivative instruments as part of our overall strategy to manage our exposure to market risks primarily associated with fluctuations in interest rates and do not use derivatives for trading or speculative purposes. We record the derivative instrument at fair value either as an asset or liability. We assess the effectiveness of our hedging instruments quarterly and record changes in fair value in accumulated other comprehensive income (âAOCIâ) for the effective portion of the hedge and record the ineffectiveness of a hedge immediately in earnings in our condensed consolidated statements of operations. We release the derivativeâs gain or loss from AOCI to match the timing of the underlying hedged itemsâ effect on earnings. Recently Issued Accounting Pronouncements Adopted Accounting Standards On January 1, 2020, we adopted Accounting Standards Update (ASU) No. 2016-13, (âASU 2016-13â), Financial Instruments-Credit Losses Measurement of Credit Losses on Financial Instruments Revenue from Contracts with Customers On January 1, 2020, we adopted ASU 2018-15 (âASU 2018-15â), Customerâs Accounting Implementation Costs Incurred in a Cloud Computing Arrangement That is a Service Contract Accounting Standards Not Yet Adopted In December 2019, the FASB issued ASU 2019-12 (âASU 2019-12â), Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. In March 2020, the FASB issued ASU 2020-04 (âASU 2020-04â), Reference Rate Reform Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 3 Months Ended |
Mar. 31, 2020 | |
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) 2020 2019 Real Estate and Financing Segment Sales of VOIs, net $ 56 $ 125 Sales, marketing, brand and other fees 106 141 Interest income 38 36 Other financing revenue 6 5 Real estate and financing segment revenues $ 206 $ 307 Three Months Ended March 31, ($ in millions) 2020 2019 Resort Operations and Club Management Segment Club management $ 25 $ 26 Resort management 19 16 Rental 47 52 Ancillary services 5 7 Resort operations and club management segment revenues $ 96 $ 101 Contract Balances The following table provides information on our accounts receivable and contract assets from contracts with customers which are included in Accounts receivable, net March 31, December 31, ($ in millions) 2020 2019 Receivables $ 115 $ 129 Contract assets 1 â The following table presents the composition of our contract liabilities. March 31, December 31, ($ in millions) 2020 2019 Contract liabilities: Advanced deposits $ 117 $ 115 Deferred Sales of VOIs of projects under construction 131 84 Club activation fees, annual dues and other 130 86 Club Bonus Point incentive liability (1) 61 59 ( 1 ) Amounts related to the Club Bonus Point incentive liability are included in Accounts payable, accrued expenses and other Revenue earned for the three months ended March 31, 2020 that was included in the contract liabilities balance at December 31, 2019 was approximately $36 million. Our accounts receivables that relate to our contracts with customers includes amounts associated with our contractual right to consideration for completed performance obligations related primarily to our fee-for-service arrangements and homeownersâ associations (âHOAâ) management agreements 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. Refer to Note 6: Timeshare Financing Receivables Contract assets relate 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 annual 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 related to sales of VOIs of projects under construction, club activation fees and annual dues 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) customersâ advanced deposits on prepaid vacation packages and (iv) Club Bonus Points that may be redeemed in the future. The following table represents the deferred revenue, cost of VOI sales and direct selling costs from sales of VOIs related to projects under construction as of March 31, 2020: March 31, December 31, ($ in millions) 2020 2019 Sales of VOIs, net $ 131 $ 84 Cost of VOI sales (1) 40 27 Sales and marketing expense 19 12 (1) Includes anticipated Cost of VOI sales related to inventory associated with Sales of VOIs under construction that will be acquired under a just-in-time arrangement once construction is complete. We expect to recognize the revenue, costs of VOI sales and direct selling costs upon completion of the projects in 2021. The following table includes the remaining transaction price related to Advanced deposits, Club activation fees and Club Bonus Points as of March 31, 2020: ($ in millions) Remaining Transaction Price Recognition Period Recognition Method Advanced deposits $ 117 18 months Upon customer stays Club activation fees 71 7 years Straight-line basis over average inventory holding period Club Bonus Points 61 24 months Upon redemption |
Restricted Cash
Restricted Cash | 3 Months Ended |
Mar. 31, 2020 | |
Cash And Cash Equivalents [Abstract] | |
Restricted Cash | Note 4: Restricted Cash Restricted cash was as follows: March 31, December 31, ($ in millions) 2020 2019 Escrow deposits on VOI sales $ 59 $ 59 Reserves related to non-recourse debt 31 26 $ 90 $ 85 |
Accounts Receivable
Accounts Receivable | 3 Months Ended |
Mar. 31, 2020 | |
Receivables [Abstract] | |
Accounts Receivables | Note 5: Accounts Receivable The following table represents our accounts receivable, net of allowance for credit losses. Following the adoption of ASC 326 on January 1, 2020, accounts receivable within the scope of ASC 326 are measured at amortized cost. ($ in millions) March 31, 2020 Fee-for-service commissions (1) $ 63 Real estate and financing 15 Resort and club operations 28 Tax receivables 41 Other receivables (2) 11 Total $ 158 (1) (2) Our accounts receivable are all due within one year of origination. We use delinquency status and economic factors as credit quality indicators to monitor our receivables within the scope of ASC 326 and use these as a basis for how we develop our expected loss estimates. We sell VOIs on behalf of third-party developers using the Hilton Grand Vacations brand in exchange for sales, marketing and brand fees. We use historical losses and economic factors as a basis to develop our allowance for credit losses. Under these fee-for-service arrangements, we earn commission fees based on a percentage of total interval sales. Additionally, the terms include provisions requiring the reduction of fees earned for defaults and cancellations. The changes in our allowance for fee-for-service commissions were as follows: ($ in millions) March 31, 2020 Balance as of December 31, 2019 $ 19 Current period provision for expected credit losses 4 Write-offs charged against the allowance (8 ) Balance at March 31, 2020 $ 15 |
Timeshare Financing Receivables
Timeshare Financing Receivables | 3 Months Ended |
Mar. 31, 2020 | |
Receivables [Abstract] | |
Timeshare Financing Receivables | Note 6: Timeshare Financing Receivables Timeshare financing receivables were as follows: March 31, 2020 ($ in millions) Securitized and Pledged Unsecuritized (1) Total Timeshare financing receivables $ 703 $ 631 $ 1,334 Less: allowance for financing receivables losses (48 ) (164 ) (212 ) $ 655 $ 467 $ 1,122 December 31, 2019 ($ in millions) Securitized and Pledged Unsecuritized (1) Total Timeshare financing receivables $ 758 $ 582 $ 1,340 Less: allowance for financing receivables losses (54 ) (130 ) (184 ) $ 704 $ 452 $ 1,156 (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 securitization activities. As of March 31, 2020, the carrying value of our timeshare financing receivables securing the outstanding debt balance of our Timeshare Facility was $191 million. As of December 31, 2019, we had no timeshare receivables pledged to the Timeshare Facility. Our timeshare financing receivables as of March 31, 2020 mature as follows: ($ in millions) Securitized and Pledged Unsecuritized Total Year 2020 (remaining) $ 69 $ 43 $ 112 2021 92 50 142 2022 93 54 147 2023 93 59 152 2024 92 63 155 Thereafter 264 362 626 703 631 1,334 Less: allowance for financing receivables losses (48 ) (164 ) (212 ) $ 655 $ 467 $ 1,122 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 estimating expected defaults and determining our allowance for financing receivables loss es 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. As of March 31,2020, and December 31, 2019 we had $9 Our gross timeshare financing receivables balances by FICO score were as follows: March 31, December 31, ($ in millions) 2020 2019 FICO score 700+ $ 812 $ 818 600-699 291 292 <600 39 39 No score (1) 192 191 $ 1,334 $ 1,340 (1) Timeshare financing receivables without a FICO score are primarily related to foreign borrowers. The following table details the origination year of our gross timeshare financing receivables by FICO score as of March 31, 2020: ($ in millions) 2020 2019 2018 2017 2016 Prior Total FICO score 700+ $ 78 $ 266 $ 178 $ 115 $ 75 $ 100 $ 812 600-699 22 92 64 41 27 45 291 <600 3 12 8 5 4 7 39 No score (1) 19 62 39 21 15 36 192 $ 122 $ 432 $ 289 $ 182 $ 121 $ 188 $ 1,334 (1) 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, 2020 and December 31, 2019, we had ceased accruing interest on timeshare financing receivables with an aggregate principal balance of $84 million and $74 million, respectively. The following tables detail an aged analysis of our gross timeshare receivables balance: March 31, 2020 ($ in millions) Securitized and Pledged Unsecuritized Total Current $ 683 $ 540 $ 1,223 31 - 90 days past due 13 14 27 91 - 120 days past due 4 4 8 121 days and greater past due 3 73 76 $ 703 $ 631 $ 1,334 December 31, 2019 ($ in millions) Securitized and Pledged Unsecuritized Total Current $ 743 $ 502 $ 1,245 31 - 90 days past due 9 12 21 91 - 120 days past due 3 4 7 121 days and greater past due 3 64 67 $ 758 $ 582 $ 1,340 The changes in our allowance for financing receivables losses were as follows: March 31, 2020 ($ in millions) Securitized and Pledged Unsecuritized Total Balance as of December 31, 2019 $ 54 $ 130 $ 184 Write-offs â (9 ) (9 ) Provision for financing receivables losses (1) (6 ) 43 37 Balance as of March 31, 2020 $ 48 $ 164 $ 212 March 31, 2019 ($ in millions) Securitized and Pledged Unsecuritized Total Balance as of December 31, 2018 $ 43 $ 129 $ 172 Write-offs â (17 ) (17 ) Provision for financing receivables losses (1) (4 ) 18 14 Balance as of March 31, 2019 $ 39 $ 130 $ 169 (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, 2020 | |
Inventory Disclosure [Abstract] | |
Inventory | Note 7: Inventory Inventory was as follows: March 31, December 31, ($ in millions) 2020 2019 Completed unsold VOIs $ 241 $ 241 Construction in process 386 59 Land, infrastructure and other 258 258 $ 885 $ 558 During the three months ended March 31, 2020, we recorded non-cash operating activity transfers from Property and equipment to Inventory. See Note 8: Property and Equipment. Shown below are (i) costs of sales true-ups relating to VOI products and the related impacts to the carrying value of inventory and (ii) expenses incurred, recorded in Cost of VOI sales, related to granting credit to customers for their existing ownership when upgrading into fee-for service projects. Three Months Ended March 31, ($ in millions) 2020 2019 Cost of sales true-up (1) $ 4 $ 4 Cost of VOI sales related to fee-for-service upgrades 5 9 (1) Costs of sales true ups reduced costs of VOI sales and increased inventory in all periods presented. |
Property and Equipment
Property and Equipment | 3 Months Ended |
Mar. 31, 2020 | |
Property Plant And Equipment [Abstract] | |
Property and Equipment | Note 8: Property and Equipment Property and equipment was as follows: March 31, December 31, ($ in millions) 2020 2019 Land $ 104 $ 154 Building and leasehold improvements 245 286 Furniture and equipment 66 65 Construction in progress 172 383 587 888 Accumulated depreciation (114 ) (110 ) $ 473 $ 778 During the three months ended March 31, 2020, we recorded non-cash operating activity transfers of $301 million related to the registrations for timeshare units under construction from Property and equipment to Inventory. Non-cash transfers are reflected in our unaudited condensed consolidated statements of cash flows. |
Consolidated Variable Interest
Consolidated Variable Interest Entities | 3 Months Ended |
Mar. 31, 2020 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Consolidated Variable Interest Entities | Note 9: Consolidated Variable Interest Entities As of March 31, 2020 and December 31, 2019, we consolidated Our condensed consolidated balance sheets included the assets and liabilities of these entities, which primarily consisted of the following: March 31, December 31, ($ in millions) 2020 2019 Restricted cash $ 26 $ 26 Timeshare financing receivables, net 655 704 Non-recourse debt (1) 690 747 (1) Net of deferred financing costs. During the three months ended March 31, 2020 and 2019, 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, 2020 | |
Equity Method Investments And Joint Ventures [Abstract] | |
Investments in Unconsolidated Affiliates | Note As of March 31, 2020, we have 25 percent and 50 percent ownership interests in BRE Ace LLC and 1776 Holding LLC, respectively, that are deemed as VIEs. We do not consolidate BRE Ace LLC and 1776 Holding LLC because we are not the primary beneficiary. 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 $ million and $479 million as of March 31, 2020 and December 31, 2019, 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 $47 million and $44 million as of March 31, 2020 and December 31, 2019, respectively and (ii) receivables for commission and other fees earned under fee-for-service arrangements. See Note 17: Related Party Transactions for additional information. |
Debt & Non-recourse Debt
Debt & Non-recourse Debt | 3 Months Ended |
Mar. 31, 2020 | |
Debt Disclosure [Abstract] | |
Debt & Non-recourse Debt | Note 11: Debt & Non-recourse Debt Debt The following table details our outstanding debt balance and its associated interest rates: March 31, December 31, ($ in millions) 2020 2019 Debt (1) Senior secured credit facilities: Term loan with a rate of 2.709% $ 185 $ 187 Revolver with a weighted average rate of 2.597% 760 320 Senior notes with a rate of 6.125% 300 300 Other debt 27 27 1,272 834 Less: unamortized deferred financing costs and discount (2)(3) (6 ) (6 ) $ 1,266 $ 828 (1) As of the three months ended March 31, 2020 and year ended December 31, 2019, weighted-average interest rates were 3.537 percent and 4.571 percent, respectively. (2) Amount includes deferred financing costs related to our term loan and senior notes of $1 million and $5 million, respectively, as of March 31, 2020 and December 31, 2019. (3) Amount does not include deferred financing costs of $5 million as of March 31, 2020 and December 31, 2019, relating to our revolving facility included in Other Assets During the three months ended March 31, 2020, we borrowed $495 million and repaid $57 During the first quarter of 2020, we entered into a pay-fixed/receive-variable interest rate swap agreement on our senior secured credit facility with a notional amount of $62 million. The one-month LIBOR was effectively modified to a fixed rate of 0.62% through November 2023. For the three months ended March 31, 2020, we recorded less than $1 million in accumulated other comprehensive income related to the hedge. As of March 31, 2020 and December 31, 2019, we had $1 million of outstanding letters of credit under the revolving credit facility. We were in compliance with all applicable financial covenants as of March 31, 2020. Non-recourse Debt The following table details our outstanding non-recourse debt balance and its associated interest rates: March 31, December 31, ($ in millions) 2020 2019 Non-recourse debt (1) Timeshare Facility with an average rate of 1.861%, due 2022 $ 195 $ â Securitized Debt with an average rate of 1.810% 40 46 Securitized Debt with an average rate of 2.711% 136 149 Securitized Debt with an average rate of 3.602% 250 275 Securitized Debt with an average rate of 2.431% 271 285 892 755 Less: unamortized deferred financing costs (2) (7 ) (8 ) $ 885 $ 747 (1) As of three months ended March 31, 2020 and year ended December 31, 2019, weighted-average interest rates were 2.650 percent and 2.876 percent, respectively. (2) Amount relates to securitized debt only and does not include deferred financing costs of 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. 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 $31 million and $26 million as of March 31, 2020 and December 31, 2019, respectively, and were included in Restricted cash Debt Maturities The contractual maturities of our debt and non-recourse debt as of March 31, 2020 were as follows: ($ in millions) Debt Non-recourse Debt Total Year 2020 (remaining) $ 9 $ 174 $ 183 2021 11 161 172 2022 11 307 318 2023 918 112 1,030 2024 300 43 343 Thereafter 23 95 118 $ 1,272 $ 892 $ 2,164 |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2020 | |
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, 2020 Hierarchy Level ($ in millions) Carrying Amount Level 1 Level 3 Assets: Timeshare financing receivables, net (1) $ 1,122 $ â $ 1,377 Liabilities: Debt, net (2) 1,266 270 962 Non-recourse debt, net (2) 885 â 845 (1) Carrying amount net of allowance for financing receivables losses. (2) Carrying amount net of unamortized deferred financing costs and discount. December 31, 2019 Hierarchy Level ($ in millions) Carrying Amount Level 1 Level 3 Assets: Timeshare financing receivables, net (1) $ 1,156 $ â $ 1,446 Liabilities: Debt, net (2) 828 326 544 Non-recourse debt, net (2) 747 â 749 (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 or non-recurring basis as of March 31, 2020. |
Leases
Leases | 3 Months Ended |
Mar. 31, 2020 | |
Leases [Abstract] | |
Leases | Note 13: Leases We lease sales centers, office space and equipment under operating leases. Our leases expire at various dates from 2020 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. We recognize rent expense on leases with both contingent and non-contingent lease payment terms. Rent associated with non-contingent lease payments are recognized on a straight-line basis over the lease term. Rent expense for all operating leases for the three months ended March 31, 2020 and 2019 was $2 million and $6 million, respectively. This amount includes immaterial short-term leases and variable lease costs. Supplemental cash flow information related to operating leases was as follows: Three Months Ended March 31, ($ in millions) 2020 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 5 $ 5 Right-of-use assets obtained in exchange for new lease liabilities: Operating Leases 5 1 Supplemental balance sheet information related to operating leases was as follows: March 31, December 31, 2020 2019 Weighted-average remaining lease term of operating leases (in years) 5.9 6.1 Weighted-average discount rate of operating leases 5.24 % 5.34 % Future minimum lease payments under noncancelable operating leases, due in each of the next five years and thereafter as of March 31, 2020, are as follows: ($ in millions) Operating Leases Year 2020 (remaining) $ 14 2021 18 2022 13 2023 12 2024 11 Thereafter 22 Total future minimum lease payments $ 90 Less: imputed interest (13 ) Present value of lease liabilities $ 77 |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2020 | |
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 ordinary 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, 2020 and 2019 was approximately 11 percent and 27 percent, respectively. The decrease in the effective tax rate is primarily due to the tax benefit on our worldwide estimated ordinary loss being reduced by the incremental tax expense from the estimated ordinary income in our foreign jurisdictions, and the impact of estimated permanent differences between financial reporting and taxable income. We have considered the income tax accounting and disclosure implications of the relief provided by the Coronavirus Aid, Relief, and Economic Security (CARES) Act enacted on March 27, 2020. The effect of tax law changes is required to be recognized either in the interim period in which the legislation is enacted or reflected in the computation of the annual effective tax rate, depending on the nature of the change. As of March 31, 2020, we evaluated the income tax provisions of the CARES Act and have determined there to be no effect on either the March 31, 2020 tax rate or the computation of the estimated effective tax rate for the year. We will continue to evaluate the income tax provisions of the CARES Act and monitor the developments in the jurisdictions where we have significant operations for tax law changes that could have income tax accounting and disclosure implications. |
Share-Based Compensation
Share-Based Compensation | 3 Months Ended |
Mar. 31, 2020 | |
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 (âService RSUsâ), service and performance-based restricted stock units (âPerformance RSUsâ) and nonqualified stock options (âOptionsâ) to certain employees and directors. For the three months ended March, 31, 2020, we recognized a credit to share-based compensation expense of $2 million due to the reversal of $8 million of expense recognized in prior years related to our Performance RSUs which are not expected to achieve certain performance targets. See Performance Shares Service RSUs During the three months ended March 31, 2020, we issued 609,311 Service RSUs with a grant date fair value of $25.80, which generally vest in equal annual installments over three years from the date of grant. Options During the three months ended March 31, 2020 , The weighted-average grant date fair value of these options was $9.14, which was determined using the Black-Scholes-Merton option-pricing model with the following assumptions: Expected volatility 35.4 % Dividend yield â % Risk-free rate 1.0 % Expected term (in years) 6.0 As of March 31, 2020, we had 1,122,415 Options outstanding that were exercisable. Performance Shares During the three months ended March 31, 2020, we issued 172,620 Performance RSUs with a grant date fair value of $25.80. The Performance RSUs are settled at the end of a three-year COVID-19 and Subsequent Events E mployee Stock Purchase Plan In March 2017, the Board of Directors adopted the Hilton Grand Vacations Inc. Employee Stock Purchase Plan (the âESPPâ), which became effective during 2017. In connection with the Plan, we issued 2.5 million shares of common stock which may be purchased under the ESPP. The ESPP allows eligible employees to purchase shares of our common stock at a price per share not less than 95% of the fair market value per share of common stock on the purchase date, up to a maximum threshold established by the plan administrator for the offering period. During the three months ended March 31, 2020 and 2019, we recognized less than $1 million of compensation expense related to this plan. |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 31, 2020 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Note 16: Earnings Per Share The following table presents the calculation of our basic and diluted earnings per share (âEPSâ). The weighted- average shares outstanding used to compute basic EPS and diluted EPS for the three months ended March 31, 2020 was 85,519,151 and 86,044,525, respectively, and for the three months ended March 31, 2019 was 94,092,147 and 94,597,630, respectively. Three Months Ended March 31, ($ and shares outstanding in millions, except per share amounts) 2020 2019 Basic EPS: Numerator: Net Income (1) $ 8 $ 55 Denominator: Weighted average shares outstanding 86 94 Basic EPS $ 0.09 $ 0.59 Diluted EPS: Numerator: Net Income (1) $ 8 $ 55 Denominator: Weighted average shares outstanding 86 95 Diluted EPS $ 0.09 $ 0.58 (1) Net income for the three months ended March 31, 2020 and 2019 was $7,826,746 and $55,067,801, respectively. The dilutive effect of outstanding share-based compensation awards is reflected in diluted earnings per common share by application of the treasury stock method using average market prices during the period. For the three months ended March 31, 2020 and 2019, we excluded |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Mar. 31, 2020 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Note 17: Related Party Transactions BRE Ace LLC and 1776 Holding, LLC We hold a 25 percent ownership interest in BRE Ace LLC, a VIE, which owns a timeshare resort property and related operations, commonly known as âElara, by Hilton Grand Vacations.â We hold a 50 percent ownership interest in 1776 Holding, LLC, a VIE, which will construct a timeshare resort property, known as âLiberty Place Charleston, by Hilton Club.â We record Equity in earnings (losses) from our unconsolidated affiliates in our condensed consolidated statements of operations. See Note 10: Investments in Unconsolidated Affiliates Three Months Ended March 31, ($ in millions) 2020 2019 Equity in earnings from unconsolidated affiliates $ 3 $ 1 Commissions and other fees 23 36 We also have $23 million and $25 million of outstanding receivables related to the fee-for-service agreements as of March 31, 2020 and December 31, 2019, respectively. |
Business Segments
Business Segments | 3 Months Ended |
Mar. 31, 2020 | |
Segment Reporting [Abstract] | |
Business Segments | Note 18: Business Segments We operate our business through the following two segments: ⢠Real estate sales and financing â ⢠Resort operations and club management â The performance of our operating segments is evaluated primarily based on adjusted earnings before interest expense (excluding non-recourse debt), taxes, depreciation and amortization (âEBITDAâ). We define Adjusted EBITDA as EBITDA which has been further adjusted to exclude certain items, including, but not limited to, gains, losses and expenses in connection with: (i) asset dispositions; (ii) foreign currency transactions; (iii) debt restructurings/retirements; (iv) non-cash impairment losses; (v) reorganization costs, including severance and relocation costs; (vi) share-based and other compensation expenses; (vii) costs related to the spin-off; and (viii) other items. We do not include equity in earnings (losses) from unconsolidated affiliates in our measures of segment operating performance. The following table present revenues for our reportable segments reconciled to consolidated amounts: Three Months Ended March 31, ($ in millions) 2020 2019 Revenues: Real estate sales and financing $ 206 $ 307 Resort operations and club management (1)(2) 104 110 Total segment revenues 310 417 Cost reimbursements 49 42 Intersegment eliminations (1)(2) (8 ) (9 ) Total revenues $ 351 $ 450 (1) Includes charges to the real estate sales and financing segment from the resort operations and club management segment for fulfillment of discounted marketing package stays at resorts. These charges totaled $8 million and $9 million for the three months ended March 31, 2020 and 2019, respectively. (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 $1 million for the three months ended March 31, 2020 and 2019. The following table presents Segment Adjusted EBITDA for our reportable segments reconciled to net income: Three Months Ended March 31, ($ in millions) 2020 2019 Adjusted EBITDA: Real estate sales and financing (1) $ 15 $ 80 Resort operations and club management (1) 55 65 Segment Adjusted EBITDA 70 145 General and administrative (21 ) (27 ) Depreciation and amortization (12 ) (8 ) License fee expense (22 ) (23 ) Other gain (loss), net 2 (1 ) Interest expense (10 ) (10 ) Income tax expense (1 ) (20 ) Equity in earnings from unconsolidated affiliates 3 1 Other adjustment items (2) (1 ) (2 ) Net income $ 8 $ 55 (1) (2) For the three months ended March 31, 2020 and 2019, this amount includes costs associated with restructuring, one-time charges and other non-cash items. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2020 | |
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 or other real estate at a future date to be marketed and sold under our Hilton Grand Vacations brand. As of March 31, 2020, we were committed to purchase approximately $473 million of inventory and land over a period of 11 years and $26 million of other commitments under the normal course of business. Additionally, we have committed to develop additional vacation ownership units at an existing resort in Japan. The actual 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, 2020, we did not make any purchases under our commitments. During the three months ended March 31, 2019, we purchased $9 million as required under our commitments. As of March 31, 2020, our remaining obligation pursuant to these arrangements were expected to be incurred as follows: ($ in millions) 2020 (remaining) 2021 2022 2023 2024 Thereafter Total Inventory purchase obligations $ 26 $ 225 $ 110 $ 58 $ 40 $ 14 $ 473 Other commitments (1) 14 11 1 â â â 26 Total $ 40 $ 236 $ 111 $ 58 $ 40 $ 14 $ 499 (1) 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 that possible losses derived from an unfavorable outcome that is reasonably possible or remote is not reasonably estimable. While the actual results of claims and litigation cannot be predicted with certainty, we expect that the resolution of all pending or threatened claims and litigation as of March 31, 2020, will not materially affect our unaudited condensed consolidated financial statements. |
Condensed Consolidating Guarant
Condensed Consolidating Guarantor Financial Information | 3 Months Ended |
Mar. 31, 2020 | |
Organization Consolidation And Presentation Of Financial Statements [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, 2020 and December 31, 2019 and for the three months ended March 31, 2020 and 2019 for the Parent, Subsidiary Issuers, Guarantors and Non-Guarantors. March 31, 2020 ($ in millions) Parent Issuers Guarantors Non- Guarantors Eliminations Total ASSETS Cash and cash equivalents $ 4 $ â $ 617 $ 48 $ â $ 669 Restricted cash â â 59 31 â 90 Accounts receivable, net â â 168 34 (44 ) 158 Timeshare financing receivables, net â â 276 846 â 1,122 Inventory â â 803 82 â 885 Property and equipment, net â â 462 11 â 473 Operating lease right-of-use assets, net â â 60 2 â 62 Investments in unconsolidated affiliates â â 47 â â 47 Intangible assets, net â â 78 â â 78 Other assets â 5 103 12 â 120 Investments in subsidiaries 559 1,793 146 â (2,498 ) â TOTAL ASSETS $ 563 $ 1,798 $ 2,819 $ 1,066 $ (2,542 ) $ 3,704 LIABILITIES AND EQUITY Accounts payable, accrued expenses and other $ â $ â $ 278 $ 34 $ (44 ) $ 268 Advanced deposits â â 117 â â 117 Debt, net â 1,239 27 â â 1,266 Non-recourse debt, net â â â 885 â 885 Operating lease liabilities â â 76 1 â 77 Deferred revenues â â 277 â â 277 Deferred income tax liabilities â â 251 â â 251 Total equity 563 559 1,793 146 (2,498 ) 563 TOTAL LIABILITIES AND EQUITY $ 563 $ 1,798 $ 2,819 $ 1,066 $ (2,542 ) $ 3,704 December 31, 2019 ($ in millions) Parent Issuers Guarantors Non- Guarantors Eliminations Total ASSETS Cash and cash equivalents $ 2 $ â $ 33 $ 32 $ â $ 67 Restricted cash â â 59 26 â 85 Accounts receivable, net â â 192 52 (70 ) 174 Timeshare financing receivables, net â â 449 707 â 1,156 Inventory â â 524 34 â 558 Property and equipment, net â â 718 60 â 778 Operating lease right-of-use assets, net â â 58 2 â 60 Investments in unconsolidated affiliate â â 44 â â 44 Intangible assets, net â â 77 â â 77 Other assets â 5 64 11 â 80 Investments in subsidiaries 568 1,364 136 â (2,068 ) â TOTAL ASSETS $ 570 $ 1,369 $ 2,354 $ 924 $ (2,138 ) $ 3,079 LIABILITIES AND EQUITY Accounts payable, accrued expenses and other $ â $ â $ 329 $ 39 $ (70 ) $ 298 Advanced deposits â â 115 â â 115 Debt, net â 801 27 â â 828 Non-recourse debt, net â â â 747 â 747 Operating lease liabilities â â 74 2 â 76 Deferred revenues â â 186 â â 186 Deferred income tax liabilities â â 259 â â 259 Total equity 570 568 1,364 136 (2,068 ) 570 TOTAL LIABILITIES AND EQUITY $ 570 $ 1,369 $ 2,354 $ 924 $ (2,138 ) $ 3,079 For the Three Months Ended March 31, 2020 ($ in millions) Parent Issuers Guarantors Non- Guarantors Eliminations Total Revenues Sales of VOIs, net $ â $ â $ 32 $ 24 $ â $ 56 Sales, marketing, brand and other fees â â 120 3 (17 ) 106 Financing â â 20 26 (2 ) 44 Resort and club management â â 44 â â 44 Rental and ancillary services â â 51 1 â 52 Cost reimbursements â â 48 1 â 49 Total revenues â â 315 55 (19 ) 351 Expenses Cost of VOI sales â â 9 5 â 14 Sales and marketing â â 157 17 (17 ) 157 Financing â â 5 10 (2 ) 13 Resort and club management â â 12 â â 12 Rental and ancillary services â â 35 2 â 37 General and administrative â â 21 â â 21 Depreciation and amortization â â 12 â â 12 License fee expense â â 22 â â 22 Cost reimbursements â â 48 1 â 49 Total operating expenses â â 321 35 (19 ) 337 Interest expense â (10 ) â â â (10 ) Dividends from subsidiary 12 12 â â (24 ) â Equity in earnings from unconsolidated affiliates â â 3 â â 3 Other gain, net â â 2 â â 2 Income before income taxes 12 2 (1 ) 20 (24 ) 9 Income tax expense â â (1 ) â â (1 ) Income before equity in earnings from subsidiaries 12 2 (2 ) 20 (24 ) 8 Equity in earnings from subsidiaries (4 ) 18 20 â (34 ) â Net income $ 8 $ 20 $ 18 $ 20 $ (58 ) $ 8 For the Three Months Ended March 31, 2019 ($ in millions) Parent Issuers Guarantors Non- Guarantors Eliminations Total Revenues Sales of VOIs, net $ â $ â $ 107 $ 18 $ â $ 125 Sales, marketing, brand and other fees â â 151 1 (11 ) 141 Financing â â 18 25 (2 ) 41 Resort and club management â â 42 â â 42 Rental and ancillary services â â 58 1 â 59 Cost reimbursements â â 41 1 â 42 Total revenues â â 417 46 (13 ) 450 Expenses Cost of VOI sales â â 33 3 â 36 Sales and marketing â â 170 11 (11 ) 170 Financing â â 4 11 (2 ) 13 Resort and club management â â 11 â â 11 Rental and ancillary services â â 34 1 â 35 General and administrative â â 27 â â 27 Depreciation and amortization â â 8 â â 8 License fee expense â â 22 1 â 23 Cost reimbursements â â 41 1 â 42 Total operating expenses â â 350 28 (13 ) 365 Interest expense â (10 ) â â â (10 ) Dividends from subsidiary 125 125 â â (250 ) â Equity in earnings from unconsolidated affiliates â â 1 â â 1 Other loss, net â â (1 ) â â (1 ) Income (loss) before income taxes 125 115 67 18 (250 ) 75 Income tax expense â â (20 ) â â (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 â (13 ) â Net income $ 55 $ 180 $ 65 $ 18 $ (263 ) $ 55 For the Three Months Ended March 31, 2020 ($ in millions) Parent Issuers Guarantors Non- Guarantors Eliminations Total Operating Activities Net cash provided by (used in) operating activities $ 8 $ 20 $ 186 $ (104 ) $ (57 ) $ 53 Investing Activities Capital expenditures for property and equipment â â (1 ) (2 ) â (3 ) Software capitalization costs â â (5 ) â â (5 ) Investments in unconsolidated affiliates â â â â â â Dividends from subsidiary 12 12 â â (24 ) â Net cash provided by (used in) investing activities 12 12 (6 ) (2 ) (24 ) (8 ) Financing Activities Issuance of debt â 495 â â â 495 Issuance of non-recourse debt â â â 195 â 195 Repayment of debt â (57 ) â â â (57 ) Repayment of non-recourse debt â â â (58 ) â (58 ) Repurchase and retirement of common stock (10 ) â â â â (10 ) Payment of withholding taxes on vesting of restricted stock units (2 ) â â â â (2 ) Other financing activity â â (1 ) â â (1 ) Intercompany transfers (6 ) (470 ) 405 (10 ) 81 â Net cash (used in) provided by financing activities (18 ) (32 ) 404 127 81 562 Net increase in cash, cash equivalents and restricted cash 2 â 584 21 â 607 Cash, cash equivalents and restricted cash, beginning of period 2 â 92 58 â 152 Cash, cash equivalents and restricted cash, end of period $ 4 $ â $ 676 $ 79 $ â $ 759 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 $ â $ 140 $ (2 ) $ 66 $ (190 ) $ 14 Investing Activities Capital expenditures for property and equipment â â (5 ) (1 ) â (6 ) Software capitalization costs â â (4 ) â â (4 ) Dividends from subsidiary 100 100 â â (200 ) â Net cash used in investing activities 100 100 (9 ) (1 ) (200 ) (10 ) Financing Activities Issuance of debt â 195 â â â 195 Repayment of debt â (23 ) â â â (23 ) Repayment of non-recourse debt â â â (40 ) â (40 ) Repurchase and retirement of common stock â (92 ) â â â (92 ) Payment of withholding taxes on vesting of restricted stock units â (2 ) â â â (2 ) Intercompany transfers (91 ) (318 ) 37 (18 ) 390 â Net cash (used in) provided by financing activities (91 ) (240 ) 37 (58 ) 390 38 Net increase in cash, cash equivalents and restricted cash 9 â 26 7 â 42 Cash, cash equivalents and restricted cash, beginning of period 4 â 134 42 â 180 Cash, cash equivalents and restricted cash, end of period $ 13 $ â $ 160 $ 49 $ â $ 222 |
COVID-19 and Subsequent Events
COVID-19 and Subsequent Events | 3 Months Ended |
Mar. 31, 2020 | |
Unusual Or Infrequent Items And Subsequent Events [Abstract] | |
COVID-19 and Subsequent Events | Note 21: COVID-19 and Subsequent Events The novel coronavirus (âCOVID-19â) pandemic has significantly impacted the hospitality industry due to travel restrictions and stay-at-home directives that have resulted in cancellations and significantly reduced travel around the world. As a result of the reduction in travel, we have closed substantially all of our resorts and sales centers for an indeterminate duration. In response to the impact of COVID-19, we have taken actions to ensure the continuity of our business and operations, including furloughing approximately 67 percent of our employees, implementing salary reductions for the remaining active employees, eliminating all discretionary spending, and reducing our planned investment in new inventory by approximately $200 million. In addition, we drew down on the availability under our credit facility as a precautionary measure to ensure liquidity for a sustained period. As we are not able to estimate the dates that the suspensions of resort and sales operations will be lifted, we may need to take additional actions to ensure the continuity of our business. Any sustained material adverse impact on our revenues, net income and other operating results due to COVID-19 could cause our financial covenants under our debt obligations to be adversely affected. If we are unable to comply with or obtain potential modifications to such covenants prior to any breaches, we may trigger events of defaults under these arrangements. We are currently in negotiations with our lenders to amend such covenants as needed and believe we will be able to reach an agreement in advance of any such default. ⢠On April 16, we announced that we had adopted a shareholder rights plan. ⢠On April 22, we entered into Amendment No. 14 to our Timeshare Facility, which amended certain key definitions related to delinquency level calculations of underlying timeshare loans that are used as collateral for borrowings under our Timeshare Facility. Additionally, it provides us with the added flexibility to manage any potential increase in the rate of delinquency that may result from the impact of the COVID-19 pandemic. All other terms and borrowing capacity remained unchanged. ⢠In April 2020, we furloughed approximately 6,100 out of our 9,100 employees |
Basis of Presentation and Sum_2
Basis of Presentation and Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2020 | |
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 (âU.S. GAAPâ). 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 (âSECâ). 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, 2019, included in our Annual Report on Form 10-K filed with the SEC on March 2, 2020. 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. |
Accounts Receivable and Allowance for Credit Losses | Accounts Receivable and Allowance for Credit Losses Accounts receivable primarily consists of trade receivables and is reported at the customersâ outstanding balances, less any allowance for credit losses. The expected credit losses are measured using an expected-loss model that reflects the risk of loss and considers the losses expected over the outstanding period of the receivable. |
Cloud Computing Arrangements | Cloud Computing Arrangements We capitalize certain costs associated with cloud computing arrangements (âCCAsâ). These costs are included in Other assets |
Derivative Instruments | Derivative Instruments We use derivative instruments as part of our overall strategy to manage our exposure to market risks primarily associated with fluctuations in interest rates and do not use derivatives for trading or speculative purposes. We record the derivative instrument at fair value either as an asset or liability. We assess the effectiveness of our hedging instruments quarterly and record changes in fair value in accumulated other comprehensive income (âAOCIâ) for the effective portion of the hedge and record the ineffectiveness of a hedge immediately in earnings in our condensed consolidated statements of operations. We release the derivativeâs gain or loss from AOCI to match the timing of the underlying hedged itemsâ effect on earnings. |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements Adopted Accounting Standards On January 1, 2020, we adopted Accounting Standards Update (ASU) No. 2016-13, (âASU 2016-13â), Financial Instruments-Credit Losses Measurement of Credit Losses on Financial Instruments Revenue from Contracts with Customers On January 1, 2020, we adopted ASU 2018-15 (âASU 2018-15â), Customerâs Accounting Implementation Costs Incurred in a Cloud Computing Arrangement That is a Service Contract Accounting Standards Not Yet Adopted In December 2019, the FASB issued ASU 2019-12 (âASU 2019-12â), Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. In March 2020, the FASB issued ASU 2020-04 (âASU 2020-04â), Reference Rate Reform Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
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) 2020 2019 Real Estate and Financing Segment Sales of VOIs, net $ 56 $ 125 Sales, marketing, brand and other fees 106 141 Interest income 38 36 Other financing revenue 6 5 Real estate and financing segment revenues $ 206 $ 307 Three Months Ended March 31, ($ in millions) 2020 2019 Resort Operations and Club Management Segment Club management $ 25 $ 26 Resort management 19 16 Rental 47 52 Ancillary services 5 7 Resort operations and club management segment revenues $ 96 $ 101 |
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 assets from contracts with customers which are included in Accounts receivable, net March 31, December 31, ($ in millions) 2020 2019 Receivables $ 115 $ 129 Contract assets 1 â The following table presents the composition of our contract liabilities. March 31, December 31, ($ in millions) 2020 2019 Contract liabilities: Advanced deposits $ 117 $ 115 Deferred Sales of VOIs of projects under construction 131 84 Club activation fees, annual dues and other 130 86 Club Bonus Point incentive liability (1) 61 59 ( 1 ) Amounts related to the Club Bonus Point incentive liability are included in Accounts payable, accrued expenses and other |
Schedule of Deferred Revenue Cost of Sales and Direct Selling Costs from Sales of Project Under Construction [Table Text Block] | The following table represents the deferred revenue, cost of VOI sales and direct selling costs from sales of VOIs related to projects under construction as of March 31, 2020: March 31, December 31, ($ in millions) 2020 2019 Sales of VOIs, net $ 131 $ 84 Cost of VOI sales (1) 40 27 Sales and marketing expense 19 12 (1) Includes anticipated Cost of VOI sales related to inventory associated with Sales of VOIs under construction that will be acquired under a just-in-time arrangement once construction is complete. |
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, 2020: ($ in millions) Remaining Transaction Price Recognition Period Recognition Method Advanced deposits $ 117 18 months Upon customer stays Club activation fees 71 7 years Straight-line basis over average inventory holding period Club Bonus Points 61 24 months Upon redemption |
Restricted Cash (Tables)
Restricted Cash (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Cash And Cash Equivalents [Abstract] | |
Schedule of Restricted Cash | Restricted cash was as follows: March 31, December 31, ($ in millions) 2020 2019 Escrow deposits on VOI sales $ 59 $ 59 Reserves related to non-recourse debt 31 26 $ 90 $ 85 |
Accounts Receivable (Tables)
Accounts Receivable (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Receivables [Abstract] | |
Summary of Accounts Receivable, Net of Allowance for Credit Losses | The following table represents our accounts receivable, net of allowance for credit losses. Following the adoption of ASC 326 on January 1, 2020, accounts receivable within the scope of ASC 326 are measured at amortized cost. ($ in millions) March 31, 2020 Fee-for-service commissions (1) $ 63 Real estate and financing 15 Resort and club operations 28 Tax receivables 41 Other receivables (2) 11 Total $ 158 (1) (2) |
Changes in Allowance for Fee-for-Service Commissions | The changes in our allowance for fee-for-service commissions were as follows: ($ in millions) March 31, 2020 Balance as of December 31, 2019 $ 19 Current period provision for expected credit losses 4 Write-offs charged against the allowance (8 ) Balance at March 31, 2020 $ 15 |
Timeshare Financing Receivabl_2
Timeshare Financing Receivables (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Receivables [Abstract] | |
Schedule of financing receivables | Timeshare financing receivables were as follows: March 31, 2020 ($ in millions) Securitized and Pledged Unsecuritized (1) Total Timeshare financing receivables $ 703 $ 631 $ 1,334 Less: allowance for financing receivables losses (48 ) (164 ) (212 ) $ 655 $ 467 $ 1,122 December 31, 2019 ($ in millions) Securitized and Pledged Unsecuritized (1) Total Timeshare financing receivables $ 758 $ 582 $ 1,340 Less: allowance for financing receivables losses (54 ) (130 ) (184 ) $ 704 $ 452 $ 1,156 (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 securitization activities. |
Schedule of future payments due from financing receivables | Our timeshare financing receivables as of March 31, 2020 mature as follows: ($ in millions) Securitized and Pledged Unsecuritized Total Year 2020 (remaining) $ 69 $ 43 $ 112 2021 92 50 142 2022 93 54 147 2023 93 59 152 2024 92 63 155 Thereafter 264 362 626 703 631 1,334 Less: allowance for financing receivables losses (48 ) (164 ) (212 ) $ 655 $ 467 $ 1,122 |
Schedule of financing receivables by FICO score | Our gross timeshare financing receivables balances by FICO score were as follows: March 31, December 31, ($ in millions) 2020 2019 FICO score 700+ $ 812 $ 818 600-699 291 292 <600 39 39 No score (1) 192 191 $ 1,334 $ 1,340 (1) Timeshare financing receivables without a FICO score are primarily related to foreign borrowers. |
Details the origination year of gross timeshare financing receivables by FICO score | The following table details the origination year of our gross timeshare financing receivables by FICO score as of March 31, 2020: ($ in millions) 2020 2019 2018 2017 2016 Prior Total FICO score 700+ $ 78 $ 266 $ 178 $ 115 $ 75 $ 100 $ 812 600-699 22 92 64 41 27 45 291 <600 3 12 8 5 4 7 39 No score (1) 19 62 39 21 15 36 192 $ 122 $ 432 $ 289 $ 182 $ 121 $ 188 $ 1,334 (1) |
Schedule of past due financing receivables | The following tables detail an aged analysis of our gross timeshare receivables balance: March 31, 2020 ($ in millions) Securitized and Pledged Unsecuritized Total Current $ 683 $ 540 $ 1,223 31 - 90 days past due 13 14 27 91 - 120 days past due 4 4 8 121 days and greater past due 3 73 76 $ 703 $ 631 $ 1,334 December 31, 2019 ($ in millions) Securitized and Pledged Unsecuritized Total Current $ 743 $ 502 $ 1,245 31 - 90 days past due 9 12 21 91 - 120 days past due 3 4 7 121 days and greater past due 3 64 67 $ 758 $ 582 $ 1,340 |
Schedule of Change in Allowance For Financing Receivables Losses | The changes in our allowance for financing receivables losses were as follows: March 31, 2020 ($ in millions) Securitized and Pledged Unsecuritized Total Balance as of December 31, 2019 $ 54 $ 130 $ 184 Write-offs â (9 ) (9 ) Provision for financing receivables losses (1) (6 ) 43 37 Balance as of March 31, 2020 $ 48 $ 164 $ 212 March 31, 2019 ($ in millions) Securitized and Pledged Unsecuritized Total Balance as of December 31, 2018 $ 43 $ 129 $ 172 Write-offs â (17 ) (17 ) Provision for financing receivables losses (1) (4 ) 18 14 Balance as of March 31, 2019 $ 39 $ 130 $ 169 (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, 2020 | |
Inventory Disclosure [Abstract] | |
Schedule Of Inventory | Inventory was as follows: March 31, December 31, ($ in millions) 2020 2019 Completed unsold VOIs $ 241 $ 241 Construction in process 386 59 Land, infrastructure and other 258 258 $ 885 $ 558 |
Schedule of expense incurred when customers upgrade existing ownership to fee-for-service project | Three Months Ended March 31, ($ in millions) 2020 2019 Cost of sales true-up (1) $ 4 $ 4 Cost of VOI sales related to fee-for-service upgrades 5 9 (1) Costs of sales true ups reduced costs of VOI sales and increased inventory in all periods presented. |
Property and Equipment (Tables)
Property and Equipment (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Property Plant And Equipment [Abstract] | |
Schedule of Property and Equipment and Related Depreciation Expenses | Property and equipment was as follows: March 31, December 31, ($ in millions) 2020 2019 Land $ 104 $ 154 Building and leasehold improvements 245 286 Furniture and equipment 66 65 Construction in progress 172 383 587 888 Accumulated depreciation (114 ) (110 ) $ 473 $ 778 |
Consolidated Variable Interes_2
Consolidated Variable Interest Entities (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
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) 2020 2019 Restricted cash $ 26 $ 26 Timeshare financing receivables, net 655 704 Non-recourse debt (1) 690 747 (1) Net of deferred financing costs. |
Debt & Non-recourse Debt (Table
Debt & Non-recourse Debt (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
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) 2020 2019 Debt (1) Senior secured credit facilities: Term loan with a rate of 2.709% $ 185 $ 187 Revolver with a weighted average rate of 2.597% 760 320 Senior notes with a rate of 6.125% 300 300 Other debt 27 27 1,272 834 Less: unamortized deferred financing costs and discount (2)(3) (6 ) (6 ) $ 1,266 $ 828 (1) As of the three months ended March 31, 2020 and year ended December 31, 2019, weighted-average interest rates were 3.537 percent and 4.571 percent, respectively. (2) Amount includes deferred financing costs related to our term loan and senior notes of $1 million and $5 million, respectively, as of March 31, 2020 and December 31, 2019. (3) Amount does not include deferred financing costs of $5 million as of March 31, 2020 and December 31, 2019, relating to our revolving facility included in Other Assets The following table details our outstanding non-recourse debt balance and its associated interest rates: March 31, December 31, ($ in millions) 2020 2019 Non-recourse debt (1) Timeshare Facility with an average rate of 1.861%, due 2022 $ 195 $ â Securitized Debt with an average rate of 1.810% 40 46 Securitized Debt with an average rate of 2.711% 136 149 Securitized Debt with an average rate of 3.602% 250 275 Securitized Debt with an average rate of 2.431% 271 285 892 755 Less: unamortized deferred financing costs (2) (7 ) (8 ) $ 885 $ 747 (1) As of three months ended March 31, 2020 and year ended December 31, 2019, weighted-average interest rates were 2.650 percent and 2.876 percent, respectively. (2) Amount relates to securitized debt only and does not include deferred financing costs of Other Assets |
Schedule of Contractual Maturities of Debt | The contractual maturities of our debt and non-recourse debt as of March 31, 2020 were as follows: ($ in millions) Debt Non-recourse Debt Total Year 2020 (remaining) $ 9 $ 174 $ 183 2021 11 161 172 2022 11 307 318 2023 918 112 1,030 2024 300 43 343 Thereafter 23 95 118 $ 1,272 $ 892 $ 2,164 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
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, 2020 Hierarchy Level ($ in millions) Carrying Amount Level 1 Level 3 Assets: Timeshare financing receivables, net (1) $ 1,122 $ â $ 1,377 Liabilities: Debt, net (2) 1,266 270 962 Non-recourse debt, net (2) 885 â 845 (1) Carrying amount net of allowance for financing receivables losses. (2) Carrying amount net of unamortized deferred financing costs and discount. December 31, 2019 Hierarchy Level ($ in millions) Carrying Amount Level 1 Level 3 Assets: Timeshare financing receivables, net (1) $ 1,156 $ â $ 1,446 Liabilities: Debt, net (2) 828 326 544 Non-recourse debt, net (2) 747 â 749 (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, 2020 | |
Leases [Abstract] | |
Schedule Of Supplemental Cash Flow Information Related To Operating Leases | Supplemental cash flow information related to operating leases was as follows: Three Months Ended March 31, ($ in millions) 2020 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 5 $ 5 Right-of-use assets obtained in exchange for new lease liabilities: Operating Leases 5 1 |
Schedule Of Supplemental Balance Sheet Information Related To Operating Leases | Supplemental balance sheet information related to operating leases was as follows: March 31, December 31, 2020 2019 Weighted-average remaining lease term of operating leases (in years) 5.9 6.1 Weighted-average discount rate of operating leases 5.24 % 5.34 % |
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, 2020, are as follows: ($ in millions) Operating Leases Year 2020 (remaining) $ 14 2021 18 2022 13 2023 12 2024 11 Thereafter 22 Total future minimum lease payments $ 90 Less: imputed interest (13 ) Present value of lease liabilities $ 77 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
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 $9.14, which was determined using the Black-Scholes-Merton option-pricing model with the following assumptions: Expected volatility 35.4 % Dividend yield â % Risk-free rate 1.0 % Expected term (in years) 6.0 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The following table presents the calculation of our basic and diluted earnings per share (âEPSâ). The weighted- average shares outstanding used to compute basic EPS and diluted EPS for the three months ended March 31, 2020 was 85,519,151 and 86,044,525, respectively, and for the three months ended March 31, 2019 was 94,092,147 and 94,597,630, respectively. Three Months Ended March 31, ($ and shares outstanding in millions, except per share amounts) 2020 2019 Basic EPS: Numerator: Net Income (1) $ 8 $ 55 Denominator: Weighted average shares outstanding 86 94 Basic EPS $ 0.09 $ 0.59 Diluted EPS: Numerator: Net Income (1) $ 8 $ 55 Denominator: Weighted average shares outstanding 86 95 Diluted EPS $ 0.09 $ 0.58 (1) Net income for the three months ended March 31, 2020 and 2019 was $7,826,746 and $55,067,801, respectively. |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Related Party Transactions [Abstract] | |
Summary of Amounts Included in Condensed Consolidated Statements of Operations Related to Fee for Service Arrangement | These amounts are summarized in the following table and are included in our condensed consolidated statements of operations as of the date they became related parties. Three Months Ended March 31, ($ in millions) 2020 2019 Equity in earnings from unconsolidated affiliates $ 3 $ 1 Commissions and other fees 23 36 |
Business Segments (Tables)
Business Segments (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Segment Reporting [Abstract] | |
Schedule of Segment Operating Performance Reconciled to Consolidated Amounts | We do not include equity in earnings (losses) from unconsolidated affiliates in our measures of segment operating performance. The following table present revenues for our reportable segments reconciled to consolidated amounts: Three Months Ended March 31, ($ in millions) 2020 2019 Revenues: Real estate sales and financing $ 206 $ 307 Resort operations and club management (1)(2) 104 110 Total segment revenues 310 417 Cost reimbursements 49 42 Intersegment eliminations (1)(2) (8 ) (9 ) Total revenues $ 351 $ 450 (1) Includes charges to the real estate sales and financing segment from the resort operations and club management segment for fulfillment of discounted marketing package stays at resorts. These charges totaled $8 million and $9 million for the three months ended March 31, 2020 and 2019, respectively. (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 $1 million for the three months ended March 31, 2020 and 2019. |
Schedule of Adjusted EBITDA Reconciled to Net Income | The following table presents Segment Adjusted EBITDA for our reportable segments reconciled to net income: Three Months Ended March 31, ($ in millions) 2020 2019 Adjusted EBITDA: Real estate sales and financing (1) $ 15 $ 80 Resort operations and club management (1) 55 65 Segment Adjusted EBITDA 70 145 General and administrative (21 ) (27 ) Depreciation and amortization (12 ) (8 ) License fee expense (22 ) (23 ) Other gain (loss), net 2 (1 ) Interest expense (10 ) (10 ) Income tax expense (1 ) (20 ) Equity in earnings from unconsolidated affiliates 3 1 Other adjustment items (2) (1 ) (2 ) Net income $ 8 $ 55 (1) (2) For the three months ended March 31, 2020 and 2019, this amount includes costs associated with restructuring, one-time charges and other non-cash items. |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Commitments And Contingencies Disclosure [Abstract] | |
Schedule of Remaining Purchase Obligations | As of March 31, 2020, our remaining obligation pursuant to these arrangements were expected to be incurred as follows: ($ in millions) 2020 (remaining) 2021 2022 2023 2024 Thereafter Total Inventory purchase obligations $ 26 $ 225 $ 110 $ 58 $ 40 $ 14 $ 473 Other commitments (1) 14 11 1 â â â 26 Total $ 40 $ 236 $ 111 $ 58 $ 40 $ 14 $ 499 (1) |
Condensed Consolidating Guara_2
Condensed Consolidating Guarantor Financial Information (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
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, 2020 and December 31, 2019 and for the three months ended March 31, 2020 and 2019 for the Parent, Subsidiary Issuers, Guarantors and Non-Guarantors. March 31, 2020 ($ in millions) Parent Issuers Guarantors Non- Guarantors Eliminations Total ASSETS Cash and cash equivalents $ 4 $ â $ 617 $ 48 $ â $ 669 Restricted cash â â 59 31 â 90 Accounts receivable, net â â 168 34 (44 ) 158 Timeshare financing receivables, net â â 276 846 â 1,122 Inventory â â 803 82 â 885 Property and equipment, net â â 462 11 â 473 Operating lease right-of-use assets, net â â 60 2 â 62 Investments in unconsolidated affiliates â â 47 â â 47 Intangible assets, net â â 78 â â 78 Other assets â 5 103 12 â 120 Investments in subsidiaries 559 1,793 146 â (2,498 ) â TOTAL ASSETS $ 563 $ 1,798 $ 2,819 $ 1,066 $ (2,542 ) $ 3,704 LIABILITIES AND EQUITY Accounts payable, accrued expenses and other $ â $ â $ 278 $ 34 $ (44 ) $ 268 Advanced deposits â â 117 â â 117 Debt, net â 1,239 27 â â 1,266 Non-recourse debt, net â â â 885 â 885 Operating lease liabilities â â 76 1 â 77 Deferred revenues â â 277 â â 277 Deferred income tax liabilities â â 251 â â 251 Total equity 563 559 1,793 146 (2,498 ) 563 TOTAL LIABILITIES AND EQUITY $ 563 $ 1,798 $ 2,819 $ 1,066 $ (2,542 ) $ 3,704 December 31, 2019 ($ in millions) Parent Issuers Guarantors Non- Guarantors Eliminations Total ASSETS Cash and cash equivalents $ 2 $ â $ 33 $ 32 $ â $ 67 Restricted cash â â 59 26 â 85 Accounts receivable, net â â 192 52 (70 ) 174 Timeshare financing receivables, net â â 449 707 â 1,156 Inventory â â 524 34 â 558 Property and equipment, net â â 718 60 â 778 Operating lease right-of-use assets, net â â 58 2 â 60 Investments in unconsolidated affiliate â â 44 â â 44 Intangible assets, net â â 77 â â 77 Other assets â 5 64 11 â 80 Investments in subsidiaries 568 1,364 136 â (2,068 ) â TOTAL ASSETS $ 570 $ 1,369 $ 2,354 $ 924 $ (2,138 ) $ 3,079 LIABILITIES AND EQUITY Accounts payable, accrued expenses and other $ â $ â $ 329 $ 39 $ (70 ) $ 298 Advanced deposits â â 115 â â 115 Debt, net â 801 27 â â 828 Non-recourse debt, net â â â 747 â 747 Operating lease liabilities â â 74 2 â 76 Deferred revenues â â 186 â â 186 Deferred income tax liabilities â â 259 â â 259 Total equity 570 568 1,364 136 (2,068 ) 570 TOTAL LIABILITIES AND EQUITY $ 570 $ 1,369 $ 2,354 $ 924 $ (2,138 ) $ 3,079 |
Schedule of Unaudited Condensed Consolidating Guarantor Statements of Operations | For the Three Months Ended March 31, 2020 ($ in millions) Parent Issuers Guarantors Non- Guarantors Eliminations Total Revenues Sales of VOIs, net $ â $ â $ 32 $ 24 $ â $ 56 Sales, marketing, brand and other fees â â 120 3 (17 ) 106 Financing â â 20 26 (2 ) 44 Resort and club management â â 44 â â 44 Rental and ancillary services â â 51 1 â 52 Cost reimbursements â â 48 1 â 49 Total revenues â â 315 55 (19 ) 351 Expenses Cost of VOI sales â â 9 5 â 14 Sales and marketing â â 157 17 (17 ) 157 Financing â â 5 10 (2 ) 13 Resort and club management â â 12 â â 12 Rental and ancillary services â â 35 2 â 37 General and administrative â â 21 â â 21 Depreciation and amortization â â 12 â â 12 License fee expense â â 22 â â 22 Cost reimbursements â â 48 1 â 49 Total operating expenses â â 321 35 (19 ) 337 Interest expense â (10 ) â â â (10 ) Dividends from subsidiary 12 12 â â (24 ) â Equity in earnings from unconsolidated affiliates â â 3 â â 3 Other gain, net â â 2 â â 2 Income before income taxes 12 2 (1 ) 20 (24 ) 9 Income tax expense â â (1 ) â â (1 ) Income before equity in earnings from subsidiaries 12 2 (2 ) 20 (24 ) 8 Equity in earnings from subsidiaries (4 ) 18 20 â (34 ) â Net income $ 8 $ 20 $ 18 $ 20 $ (58 ) $ 8 For the Three Months Ended March 31, 2019 ($ in millions) Parent Issuers Guarantors Non- Guarantors Eliminations Total Revenues Sales of VOIs, net $ â $ â $ 107 $ 18 $ â $ 125 Sales, marketing, brand and other fees â â 151 1 (11 ) 141 Financing â â 18 25 (2 ) 41 Resort and club management â â 42 â â 42 Rental and ancillary services â â 58 1 â 59 Cost reimbursements â â 41 1 â 42 Total revenues â â 417 46 (13 ) 450 Expenses Cost of VOI sales â â 33 3 â 36 Sales and marketing â â 170 11 (11 ) 170 Financing â â 4 11 (2 ) 13 Resort and club management â â 11 â â 11 Rental and ancillary services â â 34 1 â 35 General and administrative â â 27 â â 27 Depreciation and amortization â â 8 â â 8 License fee expense â â 22 1 â 23 Cost reimbursements â â 41 1 â 42 Total operating expenses â â 350 28 (13 ) 365 Interest expense â (10 ) â â â (10 ) Dividends from subsidiary 125 125 â â (250 ) â Equity in earnings from unconsolidated affiliates â â 1 â â 1 Other loss, net â â (1 ) â â (1 ) Income (loss) before income taxes 125 115 67 18 (250 ) 75 Income tax expense â â (20 ) â â (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 â (13 ) â Net income $ 55 $ 180 $ 65 $ 18 $ (263 ) $ 55 |
Schedule of Unaudited Condensed Consolidating Guarantor Statements of Cash Flows | For the Three Months Ended March 31, 2020 ($ in millions) Parent Issuers Guarantors Non- Guarantors Eliminations Total Operating Activities Net cash provided by (used in) operating activities $ 8 $ 20 $ 186 $ (104 ) $ (57 ) $ 53 Investing Activities Capital expenditures for property and equipment â â (1 ) (2 ) â (3 ) Software capitalization costs â â (5 ) â â (5 ) Investments in unconsolidated affiliates â â â â â â Dividends from subsidiary 12 12 â â (24 ) â Net cash provided by (used in) investing activities 12 12 (6 ) (2 ) (24 ) (8 ) Financing Activities Issuance of debt â 495 â â â 495 Issuance of non-recourse debt â â â 195 â 195 Repayment of debt â (57 ) â â â (57 ) Repayment of non-recourse debt â â â (58 ) â (58 ) Repurchase and retirement of common stock (10 ) â â â â (10 ) Payment of withholding taxes on vesting of restricted stock units (2 ) â â â â (2 ) Other financing activity â â (1 ) â â (1 ) Intercompany transfers (6 ) (470 ) 405 (10 ) 81 â Net cash (used in) provided by financing activities (18 ) (32 ) 404 127 81 562 Net increase in cash, cash equivalents and restricted cash 2 â 584 21 â 607 Cash, cash equivalents and restricted cash, beginning of period 2 â 92 58 â 152 Cash, cash equivalents and restricted cash, end of period $ 4 $ â $ 676 $ 79 $ â $ 759 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 $ â $ 140 $ (2 ) $ 66 $ (190 ) $ 14 Investing Activities Capital expenditures for property and equipment â â (5 ) (1 ) â (6 ) Software capitalization costs â â (4 ) â â (4 ) Dividends from subsidiary 100 100 â â (200 ) â Net cash used in investing activities 100 100 (9 ) (1 ) (200 ) (10 ) Financing Activities Issuance of debt â 195 â â â 195 Repayment of debt â (23 ) â â â (23 ) Repayment of non-recourse debt â â â (40 ) â (40 ) Repurchase and retirement of common stock â (92 ) â â â (92 ) Payment of withholding taxes on vesting of restricted stock units â (2 ) â â â (2 ) Intercompany transfers (91 ) (318 ) 37 (18 ) 390 â Net cash (used in) provided by financing activities (91 ) (240 ) 37 (58 ) 390 38 Net increase in cash, cash equivalents and restricted cash 9 â 26 7 â 42 Cash, cash equivalents and restricted cash, beginning of period 4 â 134 42 â 180 Cash, cash equivalents and restricted cash, end of period $ 13 $ â $ 160 $ 49 $ â $ 222 |
Organization - Additional Infor
Organization - Additional Information (Details) | Mar. 31, 2020propertyunit |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Number of timeshare properties | property | 59 |
Number of units in timeshare properties | unit | 9,551 |
Basis of Presentation and Sum_3
Basis of Presentation and Summary of Significant Accounting Policies - Additional Information (Details) - Cloud Computing Arrangements | 3 Months Ended |
Mar. 31, 2020 | |
Minimum | |
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | |
Estimated useful life | 3 years |
Maximum | |
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | |
Estimated useful life | 5 years |
Revenue from Contracts with C_3
Revenue from Contracts with Customers - Additional Information (Details) | 3 Months Ended |
Mar. 31, 2020USD ($)segment | |
Revenue From Contract With Customer [Abstract] | |
Number of operating segments | segment | 2 |
Revenue earned that was included in the contract liabilities balance | $ | $ 36,000,000 |
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, 2020 | Mar. 31, 2019 | |
Disaggregation Of Revenue [Line Items] | ||
Total revenues | $ 351 | $ 450 |
Sales of VOIs, Net | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenues | 56 | 125 |
Sales, Marketing, Brand and Other Fees | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenues | 106 | 141 |
Real Estate and Financing Segment | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenues | 206 | 307 |
Real Estate and Financing Segment | Sales of VOIs, Net | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenues | 56 | 125 |
Real Estate and Financing Segment | Sales, Marketing, Brand and Other Fees | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenues | 106 | 141 |
Real Estate and Financing Segment | Interest Income | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenues | 38 | 36 |
Real Estate and Financing Segment | Other Financing Revenue | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenues | 6 | 5 |
Resort Operations and Club Management Segment | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenues | 96 | 101 |
Resort Operations and Club Management Segment | Club Management | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenues | 25 | 26 |
Resort Operations and Club Management Segment | Resort Management | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenues | 19 | 16 |
Resort Operations and Club Management Segment | Rental | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenues | 47 | 52 |
Resort Operations and Club Management Segment | Ancillary Services | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenues | $ 5 | $ 7 |
Revenue from Contracts with C_5
Revenue from Contracts with Customers - Schedule of Accounts Receivable and Contract Asset from Contracts with Customers (Details) - Accounts Receivable - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Revenue Initial Application Period Cumulative Effect Transition [Line Items] | ||
Receivables | $ 115 | $ 129 |
Contract assets | $ 1 |
Revenue from Contracts with C_6
Revenue from Contracts with Customers - Composition of Contract Liabilities (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 | |
Revenue Initial Application Period Cumulative Effect Transition [Line Items] | |||
Contract liabilities | $ 277 | $ 186 | |
Topic 606 | Advanced deposits | |||
Revenue Initial Application Period Cumulative Effect Transition [Line Items] | |||
Contract liabilities | 117 | 115 | |
Topic 606 | Deferred Sales of VOIs of projects under construction | |||
Revenue Initial Application Period Cumulative Effect Transition [Line Items] | |||
Contract liabilities | 131 | 84 | |
Topic 606 | Club activation fees, annual dues and other | |||
Revenue Initial Application Period Cumulative Effect Transition [Line Items] | |||
Contract liabilities | 130 | 86 | |
Topic 606 | Club Bonus Point incentive liability | |||
Revenue Initial Application Period Cumulative Effect Transition [Line Items] | |||
Contract liabilities | [1] | $ 61 | $ 59 |
[1] | 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 - Schedule of Deferred Revenue, Cost of VOI Sales and Direct Selling Costs from Sales of VOIs Related to Project Under Construction (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2020 | Dec. 31, 2019 | ||
Revenue Initial Application Period Cumulative Effect Transition [Line Items] | |||
Sales of VOIs, net | $ 277 | $ 186 | |
Sales of VOIs | |||
Revenue Initial Application Period Cumulative Effect Transition [Line Items] | |||
Sales of VOIs, net | 131 | 84 | |
Cost of VOI sales | [1] | 40 | 27 |
Sales and marketing expense | $ 19 | $ 12 | |
[1] | Includes anticipated Cost of VOI sales related to inventory associated with Sales of VOIs under construction that will be acquired under a just-in-time arrangement once construction is complete. |
Revenue from Contracts with C_8
Revenue from Contracts with Customers - Remaining Transaction Price (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2020USD ($) | |
Advanced deposits | |
Revenue Initial Application Period Cumulative Effect Transition [Line Items] | |
Remaining Transaction Price | $ 117 |
Recognition Period | 18 months |
Recognition Method | Upon customer stays |
Club Activation Fees | |
Revenue Initial Application Period Cumulative Effect Transition [Line Items] | |
Remaining Transaction Price | $ 71 |
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 | $ 61 |
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, 2020 | Dec. 31, 2019 |
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Restricted cash | $ 90 | $ 85 |
Escrow deposits on VOI sales | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Restricted cash | 59 | 59 |
Reserves related to non-recourse debt | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Restricted cash | $ 31 | $ 26 |
Accounts Receivable - Summary o
Accounts Receivable - Summary of Accounts Receivable, Net of Allowance for Credit Losses (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Accounts Notes And Loans Receivable [Line Items] | ||
Accounts receivable, net of allowances | $ 158 | $ 174 |
Fee-for-Service Commission | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Accounts receivable, net of allowances | 63 | |
Real Estate and Financing | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Accounts receivable, net of allowances | 15 | |
Resort and Club Operations | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Accounts receivable, net of allowances | 28 | |
Tax Receivables | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Accounts receivable, net of allowances | 41 | |
Other Receivables | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Accounts receivable, net of allowances | $ 11 |
Accounts Receivable - Changes i
Accounts Receivable - Changes in Allowance for Fee-for-Service Commissions (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2020USD ($) | |
Accounts Notes And Loans Receivable [Line Items] | |
Balance as of December 31, 2019 | $ 21 |
Balance at March 31, 2020 | 17 |
Fee-for-Service Commission | |
Accounts Notes And Loans Receivable [Line Items] | |
Balance as of December 31, 2019 | 19 |
Current period provision for expected credit losses | 4 |
Write-offs charged against the allowance | (8) |
Balance at March 31, 2020 | $ 15 |
Timeshare Financing Receivabl_3
Timeshare Financing Receivables - Schedule of Timeshare Financing Receivables (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | |||
Accounts Notes And Loans Receivable [Line Items] | |||||||
Timeshare financing receivables | $ 1,334 | $ 1,340 | |||||
Less: allowance for financing receivables losses | (212) | (184) | $ (169) | $ (172) | |||
Timeshare financing receivables, net | 1,122 | 1,156 | |||||
Securitized and Pledged | |||||||
Accounts Notes And Loans Receivable [Line Items] | |||||||
Timeshare financing receivables | 703 | 758 | |||||
Less: allowance for financing receivables losses | (48) | (54) | (39) | (43) | |||
Timeshare financing receivables, net | 655 | 704 | |||||
Unsecuritized | |||||||
Accounts Notes And Loans Receivable [Line Items] | |||||||
Timeshare financing receivables | [1] | 631 | 582 | ||||
Less: allowance for financing receivables losses | (164) | [1] | (130) | [1] | $ (130) | $ (129) | |
Timeshare financing receivables, net | [1] | $ 467 | $ 452 | ||||
[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 securitization activities. |
Timeshare Financing Receivabl_4
Timeshare Financing Receivables - Narrative (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2020 | Dec. 31, 2019 | |
Accounts Notes And Loans Receivable [Line Items] | ||
Decrease in Variable Consideration | $ 37,000,000 | |
Reduction in Revenue due to COVID-19 Pandemic | $ 23,000,000 | |
Financing receivable, weighted average interest rate (as a percent) | 12.52% | |
Financing receivable, weighted average remaining term (in years) | 7 years 10 months 24 days | |
Financing receivable weighted average maturities year | 2035 | |
interest receivable outstanding | $ 9,000,000 | $ 9,000,000 |
Timeshare financing receivable not accruing interest | $ 84,000,000 | 74,000,000 |
Minimum | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Financing receivable, stated interest rate (as a percent) | 3.90% | |
Maximum | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Financing receivable, stated interest rate (as a percent) | 20.50% | |
Non-recourse Debt | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Gross timeshare receivables securing the Timeshare Facility | $ 191,000,000 | $ 0 |
Timeshare Financing Receivabl_5
Timeshare Financing Receivables - Maturities of Financing Receivables (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | ||
Accounts Notes And Loans Receivable [Line Items] | ||||||
2020 (remaining) | $ 112 | |||||
2021 | 142 | |||||
2022 | 147 | |||||
2023 | 152 | |||||
2024 | 155 | |||||
Thereafter | 626 | |||||
Timeshare financing receivable maturities, gross | 1,334 | |||||
Less: allowance for financing receivables losses | (212) | $ (184) | $ (169) | $ (172) | ||
Timeshare financing receivable maturities, net | 1,122 | |||||
Securitized and Pledged | ||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||
2020 (remaining) | 69 | |||||
2021 | 92 | |||||
2022 | 93 | |||||
2023 | 93 | |||||
2024 | 92 | |||||
Thereafter | 264 | |||||
Timeshare financing receivable maturities, gross | 703 | |||||
Less: allowance for financing receivables losses | (48) | (54) | (39) | (43) | ||
Timeshare financing receivable maturities, net | 655 | |||||
Unsecuritized | ||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||
2020 (remaining) | 43 | |||||
2021 | 50 | |||||
2022 | 54 | |||||
2023 | 59 | |||||
2024 | 63 | |||||
Thereafter | 362 | |||||
Timeshare financing receivable maturities, gross | 631 | |||||
Less: allowance for financing receivables losses | (164) | [1] | $ (130) | [1] | $ (130) | $ (129) |
Timeshare financing receivable maturities, net | $ 467 | |||||
[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 securitization activities. |
Timeshare Financing Receivabl_6
Timeshare Financing Receivables - Financing Receivable by FICO Score (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 | |
Financing Receivable, Recorded Investment [Line Items] | |||
Timeshare financing receivables | $ 1,334 | $ 1,340 | |
More than 700 | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Timeshare financing receivables | 812 | 818 | |
600-699 | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Timeshare financing receivables | 291 | 292 | |
Less than 600 | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Timeshare financing receivables | 39 | 39 | |
No score | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Timeshare financing receivables | [1] | $ 192 | $ 191 |
[1] | Timeshare financing receivables without a FICO score are primarily related to foreign borrowers. |
Timeshare Financing Receivabl_7
Timeshare Financing Receivables - Details the Origination Year of Gross Timeshare Financing Receivables by FICO Score (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Timeshare financing receivables | $ 1,334 | $ 1,340 | |
More than 700 | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Timeshare financing receivables | 812 | 818 | |
600-699 | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Timeshare financing receivables | 291 | 292 | |
Less than 600 | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Timeshare financing receivables | 39 | 39 | |
No score | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Timeshare financing receivables | [1] | 192 | $ 191 |
Year Of Origination 2020 | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Timeshare financing receivables | 122 | ||
Year Of Origination 2020 | More than 700 | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Timeshare financing receivables | 78 | ||
Year Of Origination 2020 | 600-699 | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Timeshare financing receivables | 22 | ||
Year Of Origination 2020 | Less than 600 | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Timeshare financing receivables | 3 | ||
Year Of Origination 2020 | No score | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Timeshare financing receivables | [1] | 19 | |
Year Of Origination 2016 | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Timeshare financing receivables | 121 | ||
Year Of Origination 2016 | More than 700 | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Timeshare financing receivables | 75 | ||
Year Of Origination 2016 | 600-699 | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Timeshare financing receivables | 27 | ||
Year Of Origination 2016 | Less than 600 | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Timeshare financing receivables | 4 | ||
Year Of Origination 2016 | No score | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Timeshare financing receivables | [1] | 15 | |
Year Of Origination 2019 | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Timeshare financing receivables | 432 | ||
Year Of Origination 2019 | More than 700 | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Timeshare financing receivables | 266 | ||
Year Of Origination 2019 | 600-699 | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Timeshare financing receivables | 92 | ||
Year Of Origination 2019 | Less than 600 | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Timeshare financing receivables | 12 | ||
Year Of Origination 2019 | No score | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Timeshare financing receivables | [1] | 62 | |
Year Of Origination Prior | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Timeshare financing receivables | 188 | ||
Year Of Origination Prior | More than 700 | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Timeshare financing receivables | 100 | ||
Year Of Origination Prior | 600-699 | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Timeshare financing receivables | 45 | ||
Year Of Origination Prior | Less than 600 | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Timeshare financing receivables | 7 | ||
Year Of Origination Prior | No score | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Timeshare financing receivables | [1] | 36 | |
Year Of Origination 2018 | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Timeshare financing receivables | 289 | ||
Year Of Origination 2018 | More than 700 | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Timeshare financing receivables | 178 | ||
Year Of Origination 2018 | 600-699 | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Timeshare financing receivables | 64 | ||
Year Of Origination 2018 | Less than 600 | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Timeshare financing receivables | 8 | ||
Year Of Origination 2018 | No score | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Timeshare financing receivables | [1] | 39 | |
Year Of Origination 2017 | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Timeshare financing receivables | 182 | ||
Year Of Origination 2017 | More than 700 | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Timeshare financing receivables | 115 | ||
Year Of Origination 2017 | 600-699 | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Timeshare financing receivables | 41 | ||
Year Of Origination 2017 | Less than 600 | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Timeshare financing receivables | 5 | ||
Year Of Origination 2017 | No score | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Timeshare financing receivables | [1] | $ 21 | |
[1] | Timeshare financing receivables without a FICO score are primarily related to foreign borrowers. |
Timeshare Financing Receivabl_8
Timeshare Financing Receivables - Past Due Financing Receivables (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | $ 1,223 | $ 1,245 |
Financing receivable, past due and current | 1,334 | 1,340 |
31 - 90 days past due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivable, past due | 27 | 21 |
91 - 120 days past due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivable, past due | 8 | 7 |
121 days and greater past due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivable, past due | 76 | 67 |
Securitized and Pledged | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 683 | 743 |
Financing receivable, past due and current | 703 | 758 |
Securitized and Pledged | 31 - 90 days past due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivable, past due | 13 | 9 |
Securitized and Pledged | 91 - 120 days past due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivable, past due | 4 | 3 |
Securitized and Pledged | 121 days and greater past due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivable, past due | 3 | 3 |
Unsecuritized | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 540 | 502 |
Financing receivable, past due and current | 631 | 582 |
Unsecuritized | 31 - 90 days past due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivable, past due | 14 | 12 |
Unsecuritized | 91 - 120 days past due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivable, past due | 4 | 4 |
Unsecuritized | 121 days and greater past due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivable, past due | $ 73 | $ 64 |
Timeshare Financing Receivabl_9
Timeshare Financing Receivables - Schedule of Change in Allowance For Financing Receivables Losses (Details) - USD ($) $ in Millions | 3 Months Ended | |||
Mar. 31, 2020 | Mar. 31, 2019 | |||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||
Allowance for loan loss, beginning balance | $ 184 | $ 172 | ||
Write-offs | (9) | (17) | ||
Provision for financing receivables losses | [1] | 37 | 14 | |
Allowance for loan loss, ending balance | 212 | 169 | ||
Securitized and Pledged | ||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||
Allowance for loan loss, beginning balance | 54 | 43 | ||
Provision for financing receivables losses | [1] | (6) | (4) | |
Allowance for loan loss, ending balance | 48 | 39 | ||
Unsecuritized | ||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||
Allowance for loan loss, beginning balance | 130 | [2] | 129 | |
Write-offs | (9) | (17) | ||
Provision for financing receivables losses | [1] | 43 | 18 | |
Allowance for loan loss, ending balance | $ 164 | [2] | $ 130 | |
[1] | Includes incremental provision for financing receivables losses, net of activity related to the repurchase of defaulted and upgraded securitized timeshare financing receivables. | |||
[2] | 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 securitization activities. |
Inventory - Schedule of Invento
Inventory - Schedule of Inventory, Noncurrent (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Inventory Disclosure [Abstract] | ||
Completed unsold VOIs | $ 241 | $ 241 |
Construction in process | 386 | 59 |
Land, infrastructure and other | 258 | 258 |
Inventory | $ 885 | $ 558 |
Inventory - Schedule of Expense
Inventory - Schedule of Expenses Incurred, Recorded in Cost of VOI Sales (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | ||
Sales true-up | |||
Inventory [Line Items] | |||
Expenses | [1] | $ 4 | $ 4 |
Fee For Service Upgrades | |||
Inventory [Line Items] | |||
Expenses | $ 5 | $ 9 | |
[1] | Costs of sales true ups reduced costs of VOI sales and increased inventory in all periods presented. |
Property and Equipment - Schedu
Property and Equipment - Schedule of Property and Equipment (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | $ 587 | $ 888 |
Accumulated depreciation | (114) | (110) |
Property and equipment, net | 473 | 778 |
Land | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 104 | 154 |
Building and Leasehold Improvements | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 245 | 286 |
Furniture and Equipment | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 66 | 65 |
Construction in Progress | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | $ 172 | $ 383 |
Property and Equipment - Additi
Property and Equipment - Additional Information (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2020USD ($) | |
Property Plant And Equipment Gross [Abstract] | |
Timeshare units transfer from property and equipment to inventory | $ 301 |
Consolidated Variable Interes_3
Consolidated Variable Interest Entities - Additional Information (Details) | 3 Months Ended | ||
Mar. 31, 2020USD ($)entity | Mar. 31, 2019USD ($) | Dec. 31, 2019entity | |
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, 2020 | Dec. 31, 2019 | |
Variable Interest Entity [Line Items] | |||
Assets, variable interest entity | $ 3,704 | $ 3,079 | |
Liabilities, variable interest entity | 3,141 | 2,509 | |
Variable Interest Entities | |||
Variable Interest Entity [Line Items] | |||
Assets, variable interest entity | 694 | 748 | |
Liabilities, variable interest entity | 694 | 750 | |
Variable Interest Entities | Restricted cash | |||
Variable Interest Entity [Line Items] | |||
Assets, variable interest entity | 26 | 26 | |
Variable Interest Entities | Timeshare financing receivables, net | |||
Variable Interest Entity [Line Items] | |||
Assets, variable interest entity | 655 | 704 | |
Variable Interest Entities | Non-recourse debt | |||
Variable Interest Entity [Line Items] | |||
Liabilities, variable interest entity | [1] | $ 690 | $ 747 |
[1] | Net of deferred financing costs |
Investments in Unconsolidated_2
Investments in Unconsolidated Affiliates - Additional Information (Details) $ in Millions | 3 Months Ended | |
Mar. 31, 2020USD ($)Affiliate | Dec. 31, 2019USD ($) | |
Schedule Of Investments [Line Items] | ||
Number of unconsolidated affiliates | Affiliate | 2 | |
Debt | $ 1,266 | $ 828 |
Investments in unconsolidated affiliates | $ 47 | 44 |
BRE Ace LLC | ||
Schedule Of Investments [Line Items] | ||
Equity method investment, ownership percentage | 25.00% | |
1776 Holdings 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 | $ 477 | $ 479 |
Debt & Non-recourse Debt - Sche
Debt & Non-recourse Debt - Schedule of Outstanding Borrowings (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 | |
Debt Instrument [Line Items] | |||
Long-term debt, gross | [1] | $ 1,272 | $ 834 |
Less: unamortized deferred financing costs and discount | [2],[3] | (6) | (6) |
Long-term debt | 1,266 | 828 | |
Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Less: unamortized deferred financing costs and discount | (5) | (5) | |
Revolver with a weighted average rate of 2.597%, due 2023 | Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Long-term debt, gross | 760 | 320 | |
Line of Credit | Term loan with a rate of 2.709%, due 2023 | |||
Debt Instrument [Line Items] | |||
Long-term debt, gross | 185 | 187 | |
Less: unamortized deferred financing costs and discount | (1) | (1) | |
Senior Notes | Senior notes with a rate of 6.125%, due 2024 | |||
Debt Instrument [Line Items] | |||
Long-term debt, gross | [1] | 300 | 300 |
Less: unamortized deferred financing costs and discount | (5) | (5) | |
Other Debt | |||
Debt Instrument [Line Items] | |||
Long-term debt, gross | [1] | 27 | 27 |
Non-recourse Debt | |||
Debt Instrument [Line Items] | |||
Long-term debt, gross | [4] | 892 | 755 |
Less: unamortized deferred financing costs and discount | [5] | (7) | (8) |
Long-term debt | 885 | 747 | |
Non-recourse Debt | Timeshare Facility with an average rate of 3.164%, due 2022 | |||
Debt Instrument [Line Items] | |||
Long-term debt, gross | [4] | 195 | 0 |
Less: unamortized deferred financing costs and discount | (2) | (3) | |
Non-recourse Debt | Securitized Debt with an average rate of 1.810%, due 2026 | |||
Debt Instrument [Line Items] | |||
Long-term debt, gross | 40 | 46 | |
Non-recourse Debt | Securitized Debt with an average rate of 2.711%, due 2028 | |||
Debt Instrument [Line Items] | |||
Long-term debt, gross | 136 | 149 | |
Non-recourse Debt | Securitized Debt with an average rate of 3.602%, due 2032 | |||
Debt Instrument [Line Items] | |||
Long-term debt, gross | 250 | 275 | |
Non-recourse Debt | Securitized Debt with an average rate of 2.431%, due 2033 | |||
Debt Instrument [Line Items] | |||
Long-term debt, gross | $ 271 | $ 285 | |
[1] | As of the three months ended March 31, 2020 and year ended December 31, 2019, weighted-average interest rates were 3.537 percent and 4.571 percent, respectively. | ||
[2] | Amount does not include deferred financing costs of $5 million as of March 31, 2020 and December 31, 2019, relating to our revolving facility included in Other Assets | ||
[3] | Amount includes deferred financing costs related to our term loan and senior notes of $1 million and $5 million, respectively, as of March 31, 2020 and December 31, 2019. | ||
[4] | As of three months ended March 31, 2020 and year ended December 31, 2019, weighted-average interest rates were 2.650 percent and 2.876 percent, respectively. | ||
[5] | Amount relates to securitized debt only and does not include deferred financing costs of Other Assets |
Debt & Non-recourse Debt - Sc_2
Debt & Non-recourse Debt - Schedule of Outstanding Borrowings (Parenthetical) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2020 | Dec. 31, 2019 | ||
Debt Instrument [Line Items] | |||
Debt instrument, average interest rate | 3.537% | 4.571% | |
Less: unamortized deferred financing costs and discount | [1],[2] | $ (6) | $ (6) |
Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Less: unamortized deferred financing costs and discount | $ (5) | $ (5) | |
Revolving Credit Facility | Revolver with a weighted average rate of 2.597%, due 2023 | |||
Debt Instrument [Line Items] | |||
Debt instrument, average interest rate | 2.597% | 2.597% | |
Debt instrument, maturity year | 2023 | 2023 | |
Line of Credit | Term loan with a rate of 2.709%, due 2023 | |||
Debt Instrument [Line Items] | |||
Debt instrument, average interest rate | 2.709% | 2.709% | |
Debt instrument, maturity year | 2023 | 2023 | |
Less: unamortized deferred financing costs and discount | $ (1) | $ (1) | |
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% | |
Less: unamortized deferred financing costs and discount | $ (5) | $ (5) | |
Non-recourse Debt | |||
Debt Instrument [Line Items] | |||
Debt instrument, average interest rate | 2.65% | 2.876% | |
Less: unamortized deferred financing costs and discount | [3] | $ (7) | $ (8) |
Non-recourse Debt | Timeshare Facility with an average rate of 3.164%, due 2022 | |||
Debt Instrument [Line Items] | |||
Debt instrument, average interest rate | 1.861% | 1.861% | |
Debt instrument, maturity year | 2022 | 2022 | |
Less: unamortized deferred financing costs and discount | $ (2) | $ (3) | |
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 | |
Non-recourse Debt | Securitized Debt with an average rate of 2.431%, due 2033 | |||
Debt Instrument [Line Items] | |||
Debt instrument, average interest rate | 2.431% | 2.431% | |
Debt instrument, maturity year | 2033 | 2033 | |
[1] | Amount does not include deferred financing costs of $5 million as of March 31, 2020 and December 31, 2019, relating to our revolving facility included in Other Assets | ||
[2] | Amount includes deferred financing costs related to our term loan and senior notes of $1 million and $5 million, respectively, as of March 31, 2020 and December 31, 2019. | ||
[3] | Amount relates to securitized debt only and does not include deferred financing costs of Other Assets |
Debt & Non-recourse Debt - Addi
Debt & Non-recourse Debt - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Dec. 31, 2019 | |
Debt Instrument [Line Items] | ||
Accumulated other comprehensive Income loss related to hedege | $ 1 | |
Restricted cash | 90 | $ 85 |
Reserves related to non-recourse debt | ||
Debt Instrument [Line Items] | ||
Restricted cash | 31 | 26 |
Restricted cash and cash equivalents depository accounts | 31 | |
Timeshare Facility | ||
Debt Instrument [Line Items] | ||
Term loan outstanding | $ 450 | |
Senior Secured Credit Facilities | ||
Debt Instrument [Line Items] | ||
Fixed interest rate | 0.62% | |
Senior Secured Credit Facilities | Interest Rate Swap Agreement | ||
Debt Instrument [Line Items] | ||
Notional amount | $ 62 | |
Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Interest rate on revolving credit facility description | one month LIBOR | |
Revolving Credit Facility | LIBOR | ||
Debt Instrument [Line Items] | ||
Interest rate on revolving credit facility | 1.75% | |
Revolving Credit Facility | Senior Secured Credit Facilities | ||
Debt Instrument [Line Items] | ||
Debt instrument borrowed amount | $ 495 | |
Debt instrument repaid amount | 57 | |
Letters of credit outstanding, amount | $ 1 | $ 1 |
Debt & Non-recourse Debt - Sc_3
Debt & Non-recourse Debt - Schedule of Contractual Maturities of Debt (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 | |
Debt Instrument [Line Items] | |||
2020 (remaining) | $ 9 | ||
2021 | 11 | ||
2022 | 11 | ||
2023 | 918 | ||
2024 | 300 | ||
Thereafter | 23 | ||
Long-term debt | [1] | 1,272 | $ 834 |
Non-recourse Debt | |||
Debt Instrument [Line Items] | |||
2020 (remaining) | 174 | ||
2021 | 161 | ||
2022 | 307 | ||
2023 | 112 | ||
2024 | 43 | ||
Thereafter | 95 | ||
Long-term debt | [2] | 892 | $ 755 |
Debt and Non-recourse Debt | |||
Debt Instrument [Line Items] | |||
2020 (remaining) | 183 | ||
2021 | 172 | ||
2022 | 318 | ||
2023 | 1,030 | ||
2024 | 343 | ||
Thereafter | 118 | ||
Long-term debt | $ 2,164 | ||
[1] | As of the three months ended March 31, 2020 and year ended December 31, 2019, weighted-average interest rates were 3.537 percent and 4.571 percent, respectively. | ||
[2] | As of three months ended March 31, 2020 and year ended December 31, 2019, weighted-average interest rates were 2.650 percent and 2.876 percent, respectively. |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Carrying and Estimated Fair Value Amounts (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 | |
Carrying Amount | |||
Assets: | |||
Timeshare financing receivables, net | [1] | $ 1,122 | $ 1,156 |
Liabilities: | |||
Debt, net | [2] | 1,266 | 828 |
Non-recourse debt, net | [2] | 885 | 747 |
Level 1 | |||
Assets: | |||
Timeshare financing receivables, net | [1] | 0 | 0 |
Liabilities: | |||
Debt, net | [2] | 270 | 326 |
Non-recourse debt, net | [2] | 0 | 0 |
Level 3 | |||
Assets: | |||
Timeshare financing receivables, net | [1] | 1,377 | 1,446 |
Liabilities: | |||
Debt, net | [2] | 962 | 544 |
Non-recourse debt, net | [2] | $ 845 | $ 749 |
[1] | Carrying amount net of allowance for financing receivables losses. | ||
[2] | Carrying amount net of unamortized deferred financing costs and discount. |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Details) - Fair Value, Recurring | Mar. 31, 2020USD ($) |
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 | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Leases [Abstract] | ||
Leases starting expiration date | 2020 | |
Leases ending expiration date | 2030 | |
Rent expense | $ 2 | $ 6 |
Leases - Schedule of Supplement
Leases - Schedule of Supplemental Cash Flow Information Related to Operating Leases (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Cash paid for amounts included in the measurement of lease liabilities: | ||
Operating cash flows from operating leases | $ 5 | $ 5 |
Right-of-use assets obtained in exchange for new lease liabilities: | ||
Operating Leases | $ 5 | $ 1 |
Leases - Schedule of Suppleme_2
Leases - Schedule of Supplemental Balance Sheet Information Related to Operating Leases (Details) | Mar. 31, 2020 | Mar. 31, 2019 |
Leases [Abstract] | ||
Weighted-average remaining lease term of operating leases (in years) | 5 years 10 months 24 days | 6 years 1 month 6 days |
Weighted-average discount rate of operating leases | 5.24% | 5.34% |
Leases - Future Minimum Lease P
Leases - Future Minimum Lease Payments Under Non-Cancelable Operating Leases (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Leases [Abstract] | ||
2020 | $ 14 | |
2021 | 18 | |
2022 | 13 | |
2023 | 12 | |
2024 | 11 | |
Thereafter | 22 | |
Total future minimum lease payments | 90 | |
Less: imputed interest | (13) | |
Operating lease liabilities | $ 77 | $ 76 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Income Tax Disclosure [Abstract] | ||
Effective income tax rate (as a percent) | 11.00% | 27.00% |
Share-Based Compensation - Addi
Share-Based Compensation - Additional Information (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Allocated share-based compensation expense | $ 5 | |
Unrecognized compensation costs for unvested awards | $ 32 | |
Unrecognized compensation costs, weighted average period for recognition | 1 year 10 months 24 days | |
Shares of common stock available for future issuance | 5,192,801 | |
2017 Employees Stock Purchase Plan | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Maximum shares of common stock issued under ESPP | 2.5 | |
Minimum | 2017 Employees Stock Purchase Plan | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Percentage of fair market value per share of common stock | 95.00% | |
Maximum | 2017 Employees Stock Purchase Plan | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Compensation expense related to ESPP | $ 1 | $ 1 |
Performance Shares | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Allocated share-based compensation expense | 2 | |
Reversal of share based compensation expense | $ 8 | |
Service Restricted Stock Units (RSUs) | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Shares issued (in shares) | 609,311 | |
Grant date fair value (in dollars per share) | $ 25.80 | |
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) | 566,401 | |
Exercise price (in dollars per share) | $ 25.80 | |
Grant date fair value (in dollars per share) | $ 9.14 | |
Stock options exercisable (in shares) | 1,122,415 | |
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) | 172,620 | |
Grant date fair value (in dollars per share) | $ 25.80 | |
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, 2020 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Expected volatility | 35.40% |
Dividend yield | 0.00% |
Risk-free rate | 1.00% |
Expected term (in years) | 6 years |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Details) - shares | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Weighted average shares outstanding, Basic | 85,519,151 | 94,092,147 |
Weighted average shares outstanding, diluted | 86,044,525 | 94,597,630 |
Stock Compensation Plan | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of EPS | 1,754,656 | 948,248 |
Earnings Per Share - Schedule o
Earnings Per Share - Schedule of Earnings Per Share, Basic and Diluted (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | ||
Numerator: | |||
Net income | [1] | $ 7,826,746 | $ 55,067,801 |
Denominator: | |||
Weighted average shares outstanding, Basic | 85,519,151 | 94,092,147 | |
Basic EPS | $ 0.09 | $ 0.59 | |
Denominator: | |||
Weighted average shares outstanding, diluted | 86,044,525 | 94,597,630 | |
Diluted EPS | $ 0.09 | $ 0.58 | |
[1] | Net income for the three months ended March 31, 2020 and 2019 was $7,826,746 and $55,067,801, respectively. |
Earnings Per Share - Schedule_2
Earnings Per Share - Schedule of Earnings Per Share, Basic and Diluted (Parenthetical) (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | ||
Earnings Per Share [Abstract] | |||
Net income | [1] | $ 7,826,746 | $ 55,067,801 |
[1] | Net income for the three months ended March 31, 2020 and 2019 was $7,826,746 and $55,067,801, respectively. |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Related Party Transaction [Line Items] | ||
Due from related parties | $ 23 | $ 25 |
BRE Ace LLC | ||
Related Party Transaction [Line Items] | ||
Equity method investment, ownership percentage | 25.00% | |
1776 Holdings LLC | ||
Related Party Transaction [Line Items] | ||
Equity method investment, ownership percentage | 50.00% |
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, 2020 | Mar. 31, 2019 | |
Related Party Transaction [Line Items] | ||
Equity in earnings from unconsolidated affiliates | $ 3 | $ 1 |
BRE Ace LLC | ||
Related Party Transaction [Line Items] | ||
Equity in earnings from unconsolidated affiliates | 3 | 1 |
Commissions and other fees | $ 23 | $ 36 |
Business Segments - Additional
Business Segments - Additional Information (Details) | 3 Months Ended |
Mar. 31, 2020segment | |
Segment Reporting [Abstract] | |
Number of operating segments | 2 |
Business Segments - Schedule of
Business Segments - Schedule of Segment Operating Performance Reconciled to Consolidated Amounts (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Total revenues | $ 351 | $ 450 | |
Real Estate and Financing Segment | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Total revenues | 206 | 307 | |
Resort Operations and Club Management Segment | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Total revenues | 96 | 101 | |
Operating segments | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Total revenues | 310 | 417 | |
Operating segments | Real Estate and Financing Segment | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Total revenues | 206 | 307 | |
Operating segments | Resort Operations and Club Management Segment | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Total revenues | [1],[2] | 104 | 110 |
Segment Reconciling Items | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Total revenues | 49 | 42 | |
Intersegment eliminations | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Total revenues | [1],[2] | $ (8) | $ (9) |
[1] | Includes charges to the real estate sales and financing segment from the resort operations and club management segment for fulfillment of discounted marketing package stays at resorts. These charges totaled $8 million and $9 million for the three months ended March 31, 2020 and 2019, respectively. | ||
[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 $1Â million for the three months ended March 31, 2020 and 2019. |
Business Segments - Schedule _2
Business Segments - Schedule of Segment Operating Performance Reconciled to Consolidated Amounts (Parenthetical) (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Total revenues | $ 351 | $ 450 | |
Intersegment eliminations | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Total revenues | [1],[2] | (8) | (9) |
Intersegment eliminations | Maximum | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Rental expense for model units | 1 | 1 | |
Intersegment eliminations | Billing and Collection Services | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Total revenues | $ (8) | $ (9) | |
[1] | Includes charges to the real estate sales and financing segment from the resort operations and club management segment for fulfillment of discounted marketing package stays at resorts. These charges totaled $8 million and $9 million for the three months ended March 31, 2020 and 2019, respectively. | ||
[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 $1Â million for the three months ended March 31, 2020 and 2019. |
Business Segments - Schedule _3
Business Segments - Schedule of Adjusted EBITDA Reconciled to Net Income (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
General and administrative | $ (21,000,000) | $ (27,000,000) | |
Depreciation and amortization | (12,000,000) | (8,000,000) | |
Other gain (loss), net | 2,000,000 | (1,000,000) | |
Interest expense | (10,000,000) | (10,000,000) | |
Income tax expense | (1,000,000) | (20,000,000) | |
Equity in earnings from unconsolidated affiliates | 3,000,000 | 1,000,000 | |
Net income | [1] | 7,826,746 | 55,067,801 |
Operating segments | |||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
Segment Adjusted EBITDA | 70,000,000 | 145,000,000 | |
Operating segments | Real Estate and Financing Segment | |||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
Segment Adjusted EBITDA | [2] | 15,000,000 | 80,000,000 |
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 | [2] | 55,000,000 | 65,000,000 |
Segment Reconciling Items | |||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
General and administrative | (21,000,000) | (27,000,000) | |
Depreciation and amortization | (12,000,000) | (8,000,000) | |
License fee expense | (22,000,000) | (23,000,000) | |
Other gain (loss), net | 2,000,000 | (1,000,000) | |
Interest expense | (10,000,000) | (10,000,000) | |
Income tax expense | (1,000,000) | (20,000,000) | |
Equity in earnings from unconsolidated affiliates | 3,000,000 | 1,000,000 | |
Other adjustment items | [3] | $ (1,000,000) | $ (2,000,000) |
[1] | Net income for the three months ended March 31, 2020 and 2019 was $7,826,746 and $55,067,801, respectively. | ||
[2] | Includes intersegment transactions. Refer to our table presenting revenues by reportable segment above for additional discussion. | ||
[3] | For the three months ended March 31, 2020 and 2019, this amount includes costs associated with restructuring, one-time charges and other non-cash items. |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Long-term Purchase Commitment [Line Items] | ||
Reasonably estimable of possible losses | $ 0 | |
Inventories | ||
Long-term Purchase Commitment [Line Items] | ||
Purchase commitment | $ 473,000,000 | |
Purchase commitment, period (in years) | 11 years | |
Vacation ownership intervals commitment | $ 0 | $ 9,000,000 |
Other Commitments | ||
Long-term Purchase Commitment [Line Items] | ||
Purchase commitment | $ 26,000,000 |
Commitments and Contingencies_2
Commitments and Contingencies - Schedule of Remaining Purchase Obligations (Details) $ in Millions | Mar. 31, 2020USD ($) | |
Long-term Purchase Commitment [Line Items] | ||
2020 (remaining) | $ 40 | |
2021 | 236 | |
2022 | 111 | |
2023 | 58 | |
2024 | 40 | |
Thereafter | 14 | |
Total | 499 | |
Inventory Purchase Obligations | ||
Long-term Purchase Commitment [Line Items] | ||
2020 (remaining) | 26 | |
2021 | 225 | |
2022 | 110 | |
2023 | 58 | |
2024 | 40 | |
Thereafter | 14 | |
Total | 473 | |
Other Commitments | ||
Long-term Purchase Commitment [Line Items] | ||
2020 (remaining) | 14 | [1] |
2021 | 11 | [1] |
2022 | 1 | [1] |
2023 | 0 | [1] |
2024 | 0 | [1] |
Thereafter | 0 | [1] |
Total | $ 26 | [1] |
[1] | Primarily relates to commitments related to information technology and brand licensing under the normal course of business. |
Condensed Consolidating Guara_3
Condensed Consolidating Guarantor Financial Information - Balance Sheet (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2019 | Dec. 31, 2018 |
ASSETS | ||||
Cash and cash equivalents | $ 669 | $ 67 | ||
Restricted cash | 90 | 85 | ||
Accounts receivable, net | 158 | 174 | ||
Timeshare financing receivables, net | 1,122 | 1,156 | ||
Inventory | 885 | 558 | ||
Property and equipment, net | 473 | 778 | ||
Operating lease right-of-use assets, net | 62 | 60 | ||
Investments in unconsolidated affiliates | 47 | 44 | ||
Intangible assets, net | 78 | 77 | ||
Other assets | 120 | 80 | ||
TOTAL ASSETS (variable interest entities - $694 and $748) | 3,704 | 3,079 | ||
LIABILITIES AND EQUITY | ||||
Accounts payable, accrued expenses and other | 268 | 298 | ||
Advanced deposits | 117 | 115 | ||
Debt, net | 1,266 | 828 | ||
Non-recourse debt, net | 885 | 747 | ||
Operating lease liabilities | 77 | 76 | ||
Deferred revenues | 277 | 186 | ||
Deferred income tax liabilities | 251 | 259 | ||
Total equity | 563 | 570 | $ 575 | $ 616 |
TOTAL LIABILITIES AND EQUITY | 3,704 | 3,079 | ||
Parent | ||||
ASSETS | ||||
Cash and cash equivalents | 4 | 2 | ||
Investments in subsidiaries | 559 | 568 | ||
TOTAL ASSETS (variable interest entities - $694 and $748) | 563 | 570 | ||
LIABILITIES AND EQUITY | ||||
Total equity | 563 | 570 | ||
TOTAL LIABILITIES AND EQUITY | 563 | 570 | ||
Issuers | ||||
ASSETS | ||||
Other assets | 5 | 5 | ||
Investments in subsidiaries | 1,793 | 1,364 | ||
TOTAL ASSETS (variable interest entities - $694 and $748) | 1,798 | 1,369 | ||
LIABILITIES AND EQUITY | ||||
Debt, net | 1,239 | 801 | ||
Total equity | 559 | 568 | ||
TOTAL LIABILITIES AND EQUITY | 1,798 | 1,369 | ||
Guarantors | ||||
ASSETS | ||||
Cash and cash equivalents | 617 | 33 | ||
Restricted cash | 59 | 59 | ||
Accounts receivable, net | 168 | 192 | ||
Timeshare financing receivables, net | 276 | 449 | ||
Inventory | 803 | 524 | ||
Property and equipment, net | 462 | 718 | ||
Operating lease right-of-use assets, net | 60 | 58 | ||
Investments in unconsolidated affiliates | 47 | 44 | ||
Intangible assets, net | 78 | 77 | ||
Other assets | 103 | 64 | ||
Investments in subsidiaries | 146 | 136 | ||
TOTAL ASSETS (variable interest entities - $694 and $748) | 2,819 | 2,354 | ||
LIABILITIES AND EQUITY | ||||
Accounts payable, accrued expenses and other | 278 | 329 | ||
Advanced deposits | 117 | 115 | ||
Debt, net | 27 | 27 | ||
Operating lease liabilities | 76 | 74 | ||
Deferred revenues | 277 | 186 | ||
Deferred income tax liabilities | 251 | 259 | ||
Total equity | 1,793 | 1,364 | ||
TOTAL LIABILITIES AND EQUITY | 2,819 | 2,354 | ||
Non-Guarantors | ||||
ASSETS | ||||
Cash and cash equivalents | 48 | 32 | ||
Restricted cash | 31 | 26 | ||
Accounts receivable, net | 34 | 52 | ||
Timeshare financing receivables, net | 846 | 707 | ||
Inventory | 82 | 34 | ||
Property and equipment, net | 11 | 60 | ||
Operating lease right-of-use assets, net | 2 | 2 | ||
Other assets | 12 | 11 | ||
TOTAL ASSETS (variable interest entities - $694 and $748) | 1,066 | 924 | ||
LIABILITIES AND EQUITY | ||||
Accounts payable, accrued expenses and other | 34 | 39 | ||
Non-recourse debt, net | 885 | 747 | ||
Operating lease liabilities | 1 | 2 | ||
Total equity | 146 | 136 | ||
TOTAL LIABILITIES AND EQUITY | 1,066 | 924 | ||
Eliminations | ||||
ASSETS | ||||
Accounts receivable, net | (44) | (70) | ||
Investments in subsidiaries | (2,498) | (2,068) | ||
TOTAL ASSETS (variable interest entities - $694 and $748) | (2,542) | (2,138) | ||
LIABILITIES AND EQUITY | ||||
Accounts payable, accrued expenses and other | (44) | (70) | ||
Total equity | (2,498) | (2,068) | ||
TOTAL LIABILITIES AND EQUITY | $ (2,542) | $ (2,138) |
Condensed Consolidating Guara_4
Condensed Consolidating Guarantor Financial Information - Statements of Operations (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | ||
Revenues | |||
Total revenues | $ 351,000,000 | $ 450,000,000 | |
Expenses | |||
General and administrative | 21,000,000 | 27,000,000 | |
Depreciation and amortization | 12,000,000 | 8,000,000 | |
Total operating expenses | 337,000,000 | 365,000,000 | |
Interest expense | (10,000,000) | (10,000,000) | |
Equity in earnings from unconsolidated affiliates | 3,000,000 | 1,000,000 | |
Other gain (loss), net | 2,000,000 | (1,000,000) | |
Income before income taxes | 9,000,000 | 75,000,000 | |
Income tax expense | (1,000,000) | (20,000,000) | |
Income before equity in earnings from subsidiaries | 8,000,000 | 55,000,000 | |
Net income | [1] | 7,826,746 | 55,067,801 |
Eliminations | |||
Revenues | |||
Total revenues | (19,000,000) | (13,000,000) | |
Expenses | |||
Total operating expenses | (19,000,000) | (13,000,000) | |
Dividends from subsidiary | (24,000,000) | (250,000,000) | |
Income before income taxes | (24,000,000) | (250,000,000) | |
Income before equity in earnings from subsidiaries | (24,000,000) | (250,000,000) | |
Equity in earnings from subsidiaries | (34,000,000) | (13,000,000) | |
Net income | (58,000,000) | (263,000,000) | |
Sales of VOIs, Net | |||
Revenues | |||
Total revenues | 56,000,000 | 125,000,000 | |
Sales, Marketing, Brand and Other Fees | |||
Revenues | |||
Total revenues | 106,000,000 | 141,000,000 | |
Sales, Marketing, Brand and Other Fees | Eliminations | |||
Revenues | |||
Total revenues | (17,000,000) | (11,000,000) | |
Financing | |||
Revenues | |||
Total revenues | 44,000,000 | 41,000,000 | |
Expenses | |||
Expenses | 13,000,000 | 13,000,000 | |
Financing | Eliminations | |||
Revenues | |||
Total revenues | (2,000,000) | (2,000,000) | |
Expenses | |||
Expenses | (2,000,000) | (2,000,000) | |
Resort and Club Management | |||
Revenues | |||
Total revenues | 44,000,000 | 42,000,000 | |
Expenses | |||
Expenses | 12,000,000 | 11,000,000 | |
Rental and Ancillary Services | |||
Revenues | |||
Total revenues | 52,000,000 | 59,000,000 | |
Expenses | |||
Expenses | 37,000,000 | 35,000,000 | |
Cost Reimbursements | |||
Revenues | |||
Total revenues | 49,000,000 | 42,000,000 | |
Expenses | |||
Expenses | 49,000,000 | 42,000,000 | |
Cost of VOI Sales | |||
Expenses | |||
Expenses | 14,000,000 | 36,000,000 | |
Sales and Marketing | |||
Expenses | |||
Expenses | 157,000,000 | 170,000,000 | |
Sales and Marketing | Eliminations | |||
Expenses | |||
Expenses | (17,000,000) | (11,000,000) | |
License Fee Expense | |||
Expenses | |||
Expenses | 22,000,000 | 23,000,000 | |
Parent | |||
Expenses | |||
Dividends from subsidiary | 12,000,000 | 125,000,000 | |
Income before income taxes | 12,000,000 | 125,000,000 | |
Income before equity in earnings from subsidiaries | 12,000,000 | 125,000,000 | |
Equity in earnings from subsidiaries | (4,000,000) | (70,000,000) | |
Net income | 8,000,000 | 55,000,000 | |
Issuers | |||
Expenses | |||
Interest expense | (10,000,000) | (10,000,000) | |
Dividends from subsidiary | 12,000,000 | 125,000,000 | |
Income before income taxes | 2,000,000 | 115,000,000 | |
Income before equity in earnings from subsidiaries | 2,000,000 | 115,000,000 | |
Equity in earnings from subsidiaries | 18,000,000 | 65,000,000 | |
Net income | 20,000,000 | 180,000,000 | |
Guarantors | |||
Revenues | |||
Total revenues | 315,000,000 | 417,000,000 | |
Expenses | |||
General and administrative | 21,000,000 | 27,000,000 | |
Depreciation and amortization | 12,000,000 | 8,000,000 | |
Total operating expenses | 321,000,000 | 350,000,000 | |
Equity in earnings from unconsolidated affiliates | 3,000,000 | 1,000,000 | |
Other gain (loss), net | 2,000,000 | (1,000,000) | |
Income before income taxes | (1,000,000) | 67,000,000 | |
Income tax expense | (1,000,000) | (20,000,000) | |
Income before equity in earnings from subsidiaries | (2,000,000) | 47,000,000 | |
Equity in earnings from subsidiaries | 20,000,000 | 18,000,000 | |
Net income | 18,000,000 | 65,000,000 | |
Guarantors | Sales of VOIs, Net | |||
Revenues | |||
Total revenues | 32,000,000 | 107,000,000 | |
Guarantors | Sales, Marketing, Brand and Other Fees | |||
Revenues | |||
Total revenues | 120,000,000 | 151,000,000 | |
Guarantors | Financing | |||
Revenues | |||
Total revenues | 20,000,000 | 18,000,000 | |
Expenses | |||
Expenses | 5,000,000 | 4,000,000 | |
Guarantors | Resort and Club Management | |||
Revenues | |||
Total revenues | 44,000,000 | 42,000,000 | |
Expenses | |||
Expenses | 12,000,000 | 11,000,000 | |
Guarantors | Rental and Ancillary Services | |||
Revenues | |||
Total revenues | 51,000,000 | 58,000,000 | |
Expenses | |||
Expenses | 35,000,000 | 34,000,000 | |
Guarantors | Cost Reimbursements | |||
Revenues | |||
Total revenues | 48,000,000 | 41,000,000 | |
Expenses | |||
Expenses | 48,000,000 | 41,000,000 | |
Guarantors | Cost of VOI Sales | |||
Expenses | |||
Expenses | 9,000,000 | 33,000,000 | |
Guarantors | Sales and Marketing | |||
Expenses | |||
Expenses | 157,000,000 | 170,000,000 | |
Guarantors | License Fee Expense | |||
Expenses | |||
Expenses | 22,000,000 | 22,000,000 | |
Non-Guarantors | |||
Revenues | |||
Total revenues | 55,000,000 | 46,000,000 | |
Expenses | |||
Total operating expenses | 35,000,000 | 28,000,000 | |
Income before income taxes | 20,000,000 | 18,000,000 | |
Income before equity in earnings from subsidiaries | 20,000,000 | 18,000,000 | |
Net income | 20,000,000 | 18,000,000 | |
Non-Guarantors | Sales of VOIs, Net | |||
Revenues | |||
Total revenues | 24,000,000 | 18,000,000 | |
Non-Guarantors | Sales, Marketing, Brand and Other Fees | |||
Revenues | |||
Total revenues | 3,000,000 | 1,000,000 | |
Non-Guarantors | Financing | |||
Revenues | |||
Total revenues | 26,000,000 | 25,000,000 | |
Expenses | |||
Expenses | 10,000,000 | 11,000,000 | |
Non-Guarantors | Rental and Ancillary Services | |||
Revenues | |||
Total revenues | 1,000,000 | 1,000,000 | |
Expenses | |||
Expenses | 2,000,000 | 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 | 5,000,000 | 3,000,000 | |
Non-Guarantors | Sales and Marketing | |||
Expenses | |||
Expenses | $ 17,000,000 | 11,000,000 | |
Non-Guarantors | License Fee Expense | |||
Expenses | |||
Expenses | $ 1,000,000 | ||
[1] | Net income for the three months ended March 31, 2020 and 2019 was $7,826,746 and $55,067,801, respectively. |
Condensed Consolidating Guara_5
Condensed Consolidating Guarantor Financial Information - Statements of Cash Flows (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Operating Activities | ||
Net cash provided by (used in) operating activities | $ 53 | $ 14 |
Investing Activities | ||
Capital expenditures for property and equipment | (3) | (6) |
Software capitalization costs | (5) | (4) |
Net cash used in investing activities | (8) | (10) |
Financing Activities | ||
Issuance of debt | 495 | 195 |
Issuance of non-recourse debt | 195 | |
Repayment of debt | (57) | (23) |
Repayment of non-recourse debt | (58) | (40) |
Repurchase and retirement of common stock | (10) | (92) |
Payment of withholding taxes on vesting of restricted stock units | (2) | (2) |
Other financing activity | (1) | |
Net cash provided by financing activities | 562 | 38 |
Net increase in cash, cash equivalents and restricted cash | 607 | 42 |
Cash, cash equivalents and restricted cash, beginning of period | 152 | 180 |
Cash, cash equivalents and restricted cash, end of period | 759 | 222 |
Eliminations | ||
Operating Activities | ||
Net cash provided by (used in) operating activities | (57) | (190) |
Investing Activities | ||
Dividends from subsidiary | (24) | (200) |
Net cash used in investing activities | (24) | (200) |
Financing Activities | ||
Intercompany transfers | 81 | 390 |
Net cash provided by financing activities | 81 | 390 |
Cash, cash equivalents and restricted cash, beginning of period | 0 | 0 |
Cash, cash equivalents and restricted cash, end of period | 0 | 0 |
Parent | ||
Operating Activities | ||
Net cash provided by (used in) operating activities | 8 | |
Investing Activities | ||
Dividends from subsidiary | 12 | 100 |
Net cash used in investing activities | 12 | 100 |
Financing Activities | ||
Repurchase and retirement of common stock | (10) | |
Payment of withholding taxes on vesting of restricted stock units | (2) | |
Intercompany transfers | (6) | (91) |
Net cash provided by financing activities | (18) | (91) |
Net increase in cash, cash equivalents and restricted cash | 2 | 9 |
Cash, cash equivalents and restricted cash, beginning of period | 2 | 4 |
Cash, cash equivalents and restricted cash, end of period | 4 | 13 |
Issuers | ||
Operating Activities | ||
Net cash provided by (used in) operating activities | 20 | 140 |
Investing Activities | ||
Dividends from subsidiary | 12 | 100 |
Net cash used in investing activities | 12 | 100 |
Financing Activities | ||
Issuance of debt | 495 | 195 |
Repayment of debt | (57) | (23) |
Repurchase and retirement of common stock | (92) | |
Payment of withholding taxes on vesting of restricted stock units | (2) | |
Intercompany transfers | (470) | (318) |
Net cash provided by financing activities | (32) | (240) |
Cash, cash equivalents and restricted cash, beginning of period | 0 | |
Cash, cash equivalents and restricted cash, end of period | 0 | |
Guarantors | ||
Operating Activities | ||
Net cash provided by (used in) operating activities | 186 | (2) |
Investing Activities | ||
Capital expenditures for property and equipment | (1) | (5) |
Software capitalization costs | (5) | (4) |
Net cash used in investing activities | (6) | (9) |
Financing Activities | ||
Other financing activity | (1) | |
Intercompany transfers | 405 | 37 |
Net cash provided by financing activities | 404 | 37 |
Net increase in cash, cash equivalents and restricted cash | 584 | 26 |
Cash, cash equivalents and restricted cash, beginning of period | 92 | 134 |
Cash, cash equivalents and restricted cash, end of period | 676 | 160 |
Non-Guarantors | ||
Operating Activities | ||
Net cash provided by (used in) operating activities | (104) | 66 |
Investing Activities | ||
Capital expenditures for property and equipment | (2) | (1) |
Net cash used in investing activities | (2) | (1) |
Financing Activities | ||
Issuance of non-recourse debt | 195 | |
Repayment of non-recourse debt | (58) | (40) |
Intercompany transfers | (10) | (18) |
Net cash provided by financing activities | 127 | (58) |
Net increase in cash, cash equivalents and restricted cash | 21 | 7 |
Cash, cash equivalents and restricted cash, beginning of period | 58 | 42 |
Cash, cash equivalents and restricted cash, end of period | $ 79 | $ 49 |
COVID-19 and Subsequent Events
COVID-19 and Subsequent Events - Narrative (Details) - Subsequent Event $ in Millions | 1 Months Ended |
Apr. 30, 2020USD ($)Employee | |
Subsequent Event [Line Items] | |
Percentage of employees furloughed | 67.00% |
Reduction in planned investment in inventory | $ | $ 200 |
Number of employees furloughed | 6,100 |
Number of employees | 9,100 |