Quarterly report pursuant to Section 13 or 15(d)

Revenue Recognition (Tables)

v3.21.2
Revenue Recognition (Tables)
9 Months Ended
Sep. 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)(a):
Three Months Ended Nine Months Ended
September 30, September 30,
2021 2020 2021 2020
Management fee revenues $ 89  $ 83  $ 268  $ 249 
Reimbursable revenues 82  63  221  189 
Property management revenues $ 171  $ 146  $ 489  $ 438 
(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 Nine Months Ended
September 30, September 30,
2021 2020 2021 2020
Vacation Ownership
Vacation ownership interest sales (b)
$ 344  $ 196  $ 810  $ 273 
Property management fees and reimbursable revenues 171  146  489  438 
Consumer financing 103  115  304  360 
Fee-for-Service commissions 28  69  10 
Ancillary revenues 14  12  36  35 
Total Vacation Ownership 660  475  1,708  1,116 
Travel and Membership
Transaction revenues 133  86  418  227 
Subscription revenues 43  43  127  120 
Ancillary revenues 16  28  64 
Total Travel and Membership 185  145  573  411 
Corporate and other
Eliminations (6) (6) (17) (12)
Total Corporate and other (6) (6) (17) (12)
Net revenues $ 839  $ 614  $ 2,264  $ 1,515 
(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 nine months ended September 30, 2020. During 2021, the Company analyzed the adequacy of this COVID-19 related allowance consistent with past methodology, resulting in a $21 million and $47 million release which is reflected as an increase in Vacation ownership interest sales on the Condensed Consolidated Statements of Income/(Loss) during the three and nine months ended September 30, 2021.
Schedule of Contract Liabilities
Contract liabilities as of September 30, 2021 and December 31, 2020, were as follows (in millions):
September 30,
2021
December 31, 2020
Deferred subscription revenue $ 170  $ 176 
Deferred VOI trial package revenue 88  115 
Deferred exchange-related revenue (a)
64  59 
Deferred VOI incentive revenue 57  74 
Deferred co-branded credit card programs revenue 13  16 
Deferred other revenue
Total $ 394  $ 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 nine months ended September 30, 2021 and 2020, follow (in millions):
2021 2020
Beginning balance $ 448  $ 539 
Additions 199  180 
Revenue recognized (253) (235)
Ending balance $ 394  $ 484 
Schedule of Performance Obligations
The following table summarizes the Company’s remaining performance obligations for the 12-month periods set forth below (in millions):
10/1/2021 - 9/30/2022 10/1/2022 - 9/30/2023 10/1/2023 - 9/30/2024 Thereafter Total
Subscription revenue $ 100  $ 37  $ 17  $ 16  $ 170 
VOI trial package revenue 88  —  —  —  88 
Exchange-related revenue 60  —  64 
VOI incentive revenue 57  —  —  —  57 
Co-branded credit card programs revenue 13 
Other revenue —  —  — 
Total $ 310  $ 43  $ 21  $ 20  $ 394