Quarterly report pursuant to Section 13 or 15(d)

Segment Information

v3.21.2
Segment Information
6 Months Ended
Jun. 30, 2021
Segment Reporting [Abstract]  
Segment Information Segment Information The Company has two reportable segments: Vacation Ownership (formerly Wyndham Vacation Clubs) and Travel and Membership (formerly Panorama or Vacation Exchange). In connection with the Travel + Leisure brand acquisition the Company updated the names and composition of its reportable segments to better align with how the segments are managed. The Vacation Ownership segment develops, markets and sells VOIs to individual consumers, provides consumer financing in connection with the sale of VOIs, and provides property management services at resorts. The Travel and Membership segment operates a variety of travel businesses, including three vacation exchange brands, a home exchange network, travel technology platforms, travel memberships, and direct-to-consumer rentals. With the formation of Travel + Leisure Group the Company decided that the operations of its Extra Holidays business, which focuses on direct to consumer bookings, better aligns with the operations of this new business line and therefore transitioned the management of the Extra Holidays business to the Travel and Membership segment. As such, the Company reclassified the results of its Extra Holidays business, which was previously reported within the Vacation Ownership segment, into the Travel and Membership segment. This change is reflected in all periods reported. The reportable segments presented below represent the Company’s operating segments for which discrete financial information is available and which are utilized on a regular basis by its chief operating decision maker to assess performance and to allocate resources. In identifying its reportable segments, the Company also considers the nature of services provided by its operating segments. Management uses net revenues and Adjusted EBITDA to assess the performance of the reportable segments. Adjusted EBITDA is defined by the Company as Net income/(loss) from continuing operations before Depreciation and amortization, Interest expense (excluding Consumer financing interest), early extinguishment of debt, Interest income (excluding Consumer financing revenues) and income taxes. Adjusted EBITDA also excludes stock-based compensation costs, separation and restructuring costs, legacy items, transaction costs for acquisitions and divestitures, impairments, gains and losses on sale/disposition of business, and items that meet the conditions of unusual and/or infrequent. Legacy items include the resolution of and adjustments to certain contingent liabilities related to acquisitions of continuing businesses and dispositions, including the separation of Wyndham Hotels and Cendant, and the sale of the vacation rentals businesses. The Company believes that Adjusted EBITDA is a useful measure of performance for its segments which, when considered with GAAP measures, the Company believes gives a more complete understanding of its operating performance. The Company’s presentation of Adjusted EBITDA may not be comparable to similarly-titled measures used by other companies.
The following tables present the Company’s segment information (in millions):
Three Months Ended Six Months Ended
June 30, June 30,
Net revenues 2021 2020 2021 2020
Vacation Ownership $ 599  $ 238  $ 1,048  $ 641 
Travel and Membership 204  106  387  265 
Total reportable segments 803  344  1,435  906 
Corporate and other (a)
(6) (1) (10) (5)
Total Company $ 797  $ 343  $ 1,425  $ 901 
Three Months Ended Six Months Ended
June 30, June 30,
Reconciliation of Net income/(loss) to Adjusted EBITDA 2021 2020 2021 2020
Net income/(loss) attributable to Travel + Leisure shareholders $ 72  $ (164) $ 100  $ (298)
Loss on disposal of discontinued business, net of income taxes —  — 
Provision/(benefit) for income taxes 31  11  37  (33)
Depreciation and amortization 31  31  63  62 
Interest expense 47  46  100  87 
Interest (income) (1) (2) (1) (4)
Stock-based compensation 16 
Legacy items
COVID-19 related costs (b)
26  38 
Asset impairments (c)
—  38  —  48 
Restructuring —  23  (1) 25 
Exchange inventory write-off —  —  —  38 
Adjusted EBITDA $ 193  $ 16  $ 322  $ (28)
Three Months Ended Six Months Ended
June 30, June 30,
Adjusted EBITDA 2021 2020 2021 2020
Vacation Ownership $ 133  $ (12) $ 200  $ (87)
Travel and Membership 75  35  150  79 
Total reportable segments 208  23  350  (8)
Corporate and other (a)
(15) (7) (28) (20)
Total Company $ 193  $ 16  $ 322  $ (28)
(a)Includes the elimination of transactions between segments.
(b)Reflects severance and other employee costs associated with layoffs due to the COVID-19 workforce reduction offset in part by employee retention credits received in connection with the U.S. CARES Act, ARPA, and similar international programs for wages paid to certain employees despite having operations suspended. This amount does not include costs associated with idle pay.
(c)Includes $5 million of bad debt expense related to a note receivable for the three and six months ended June 30, 2020, included in Operating expenses on the Condensed Consolidated Statements of Income/(Loss).

Segment Assets (a)
June 30,
2021
December 31, 2020
Vacation Ownership $ 4,782  $ 5,000 
Travel and Membership 1,472  1,372 
Total reportable segments 6,254  6,372 
Corporate and other 385  1,241 
Total Company $ 6,639  $ 7,613 
(a)Excludes investment in consolidated subsidiaries.