Quarterly report pursuant to Section 13 or 15(d)

Revenue Recognition (Tables)

v3.21.2
Revenue Recognition (Tables)
6 Months Ended
Jun. 30, 2021
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):
Three Months Ended Six Months Ended
June 30, June 30,
2021
2020 (a)
2021
2020 (a)
Management fee revenues $ 91  $ 73  $ 179  $ 166 
Reimbursable revenues 70  49  139  126 
Property management revenues $ 161  $ 122  $ 318  $ 292 
(a)Reflects the impact of reclassifying the Extra Holidays business line from the Vacation Ownership segment to Travel and Membership.
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):
Three Months Ended Six Months Ended
June 30, June 30,
2021 2020 2021 2020
Vacation Ownership
Vacation ownership interest sales (b)
$ 294  $ (13) $ 466  $ 77 
Property management fees and reimbursable revenues 161  122  318  292 
Consumer financing 102  119  201  246 
Fee-for-Service commissions 29  —  41 
Ancillary revenues 13  10  22  23 
Total Vacation Ownership 599  238  1,048  641 
Travel and Membership
Transaction revenues 153  44  285  140 
Subscription revenues 43  33  84  77 
Ancillary revenues 29  18  48 
Total Travel and Membership 204  106  387  265 
Corporate and other
Eliminations (6) (1) (10) (5)
Total Corporate and other (6) (1) (10) (5)
Net revenues $ 797  $ 343  $ 1,425  $ 901 
(a)This table reflects the reclassification of Extra Holidays from the Vacation Ownership segment into the Travel and Membership segment for all periods presented. Extra Holidays revenue is included within Transaction revenues.
(b)The Company recorded a COVID-19 related provision for loan losses of $225 million in the first quarter of 2020, due to an expected increase in defaults driven by higher unemployment associated with COVID-19, which is reflected as a reduction to Vacation ownership interest sales on the Condensed Consolidated Statements of Income/(Loss) during the six months ended June 30, 2020. During the second quarter of 2021, the Company analyzed the adequacy of this COVID-19 related provision consistent with past methodology, resulting in a $26 million reversal which is reflected as an increase in Vacation ownership interest sales on the Condensed Consolidated Statements of Income/(Loss) during the three and six months ended June 30, 2021.
Schedule of Contract Liabilities Contract liabilities as of June 30, 2021 and December 31, 2020, were as follows (in millions):
June 30,
2021
December 31, 2020
Deferred subscription revenue $ 178  $ 176 
Deferred VOI trial package revenue 101  115 
Deferred exchange-related revenue (a)
63  59 
Deferred VOI incentive revenue 61  74 
Deferred co-branded credit card programs revenue 13  16 
Deferred other revenue
Total $ 419  $ 448 
(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 Condensed Consolidated Balance Sheets.
Contract with customer liability rollforward Changes in contract liabilities for the six months ended June 30, 2021 and 2020, follow (in millions):
2021 2020
Beginning balance $ 448  $ 539 
Additions 145  145 
Revenue recognized (174) (149)
Ending balance $ 419  $ 535 
Schedule of Performance Obligations
The following table summarizes the Company’s remaining performance obligations for the 12-month periods set forth below (in millions):
7/1/2021 - 6/30/2022 7/1/2022 - 6/30/2023 7/1/2023 - 6/30/2024 Thereafter Total
Subscription revenue $ 106  $ 37  $ 18  $ 17  $ 178 
VOI trial package revenue 101  —  —  —  101 
Exchange-related revenue 59  —  63 
VOI incentive revenue 61  —  —  —  61 
Co-branded credit card programs revenue 13 
Other revenue —  —  — 
Total $ 333  $ 43  $ 22  $ 21  $ 419