Annual report pursuant to Section 13 and 15(d)

Revenue Recognition (Tables)

v3.22.4
Revenue Recognition (Tables)
 12 Months Ended
Dec. 31, 2022
Revenue from Contract with Customer [Abstract]  
Schedule of Disaggregation of Net Revenues Property management revenues, which are comprised of management fee revenue and reimbursable revenue, were (in millions) (a):
Year Ended December 31,
2022 2021 2020
Management fee revenue $ 413  $ 378  $ 343 
Reimbursable revenues 350  313  252 
Property management revenues $ 763  $ 691  $ 595 
(a)Reflects the impact of reclassifying the Extra Holidays business from the Travel and Membership segment to the Vacation Ownership segment.
The table below presents a disaggregation of the Company’s net revenues from contracts with customers by major services and products for each of the Company’s segments (in millions) (a):
Year Ended December 31,
2022 2021 2020
Vacation Ownership
Vacation ownership interest sales (b)
$ 1,484  $ 1,176  $ 505 
Property management fees and reimbursable revenues 763  691  595 
Consumer financing 406  404  467 
Fee-for-Service commissions 116  101  22 
Ancillary revenues 66  51  48 
Total Vacation Ownership 2,835  2,423  1,637 
Travel and Membership
Transaction revenues 519  503  292 
Subscription revenues 184  176  160 
Ancillary revenues 32  35  76 
Total Travel and Membership 735  714  528 
Corporate and other
Eliminations (3) (3) (5)
Total Corporate and other (3) (3) (5)
Net revenues $ 3,567  $ 3,134  $ 2,160 
(a)This table reflects the reclassification of the Extra Holidays business from the Travel and Membership segment into the Vacation Ownership segment for all periods presented. The Extra Holidays business revenue is included within Property management fees and reimbursable revenues.
(b)The Company increased its loan loss allowance by $205 million during 2020, due to an expected increase in net new defaults driven by higher unemployment associated with COVID-19, which is reflected as a reduction to Vacation ownership interest sales on the Consolidated Statements of Income/(Loss). During 2021, the Company analyzed the adequacy of this COVID-19 related allowance consistent with past methodology, resulting in the release of $91 million which is reflected as an increase in Vacation ownership interest sales on the Consolidated Statements of Income/(Loss).
Schedule of Contract Liabilities Contract liabilities consisted of (in millions):
As of December 31,
2022 2021
Deferred subscription revenue $ 164  $ 166 
Deferred VOI trial package revenue 101  85 
Deferred VOI incentive revenue 70  55 
Deferred exchange-related revenue (a)
53  61 
Deferred co-branded credit card programs revenue 9  12 
Deferred other revenue 3  3 
Total $ 400  $ 382 
(a)Includes contractual liabilities to accommodate members for cancellations initiated by the Company due to unexpected events. These amounts are included within Accrued expenses and other liabilities on the Consolidated Balance Sheets.
Contract with customer liability rollforward [Table Text Block] Changes in contract liabilities for the periods presented were as follows (in millions):
Year Ended December 31,
2022 2021 2020
Beginning balance $ 382  $ 448  $ 539 
Additions 273  247  223 
Revenue recognized (255) (313) (314)
Ending balance $ 400  $ 382  $ 448 
Schedule of Performance Obligations The following table summarizes the Company’s remaining performance obligations for the 12-month periods set forth below (in millions):
2023 2024 2025 Thereafter Total
Subscription revenue $ 95  $ 38  $ 16  $ 15  $ 164 
VOI trial package revenue 94  3  2  2  101 
VOI incentive revenue 70  —  —  —  70 
Exchange-related revenue 50  3  —  —  53 
Co-branded credit card programs revenue 3  3  3  —  9 
Other revenue 3  —  —  —  3 
Total $ 315  $ 47  $ 21  $ 17  $ 400