Business Segments

3 Months Ended

Mar. 31, 2020

Segment Reporting [Abstract]

Business Segments

BUSINESS SEGMENTS

Beginning in the 2020 first quarter, we modified our segment structure due to a change in the way management evaluates results and allocates resources within the Company, resulting in the following operating segments: North America; Asia Pacific; Europe, Middle East and Africa (“EMEA”); and Caribbean and Latin America (“CALA”). Our CALA operating segment does not meet the applicable accounting criteria for separate disclosure as a reportable business segment. We revised the prior period amounts shown in the tables below to conform to our current presentation.

We evaluate the performance of our operating segments using “segment profits” which is based largely on the results of the segment without allocating corporate expenses, income taxes, indirect general, administrative, and other expenses, or merger-related costs and recoveries/charges. We assign gains and losses, equity in earnings or losses from our joint ventures, and direct general, administrative, and other expenses to each of our segments. “Unallocated corporate and other” includes a portion of our revenues, including license fees we receive from our credit card programs, fees from vacation ownership licensing agreements, revenues and expenses for our Loyalty Program, general, administrative, and other expenses, merger-related costs and recoveries/charges, equity in earnings or losses, and other gains or losses that we do not allocate to our segments as well as results of our CALA operating segment.

Our President and Chief Executive Officer, who is our chief operating decision maker, monitors assets for the consolidated company but does not use assets by operating segment when assessing performance or making operating segment resource allocations.

Segment Revenues

The following tables present our revenues disaggregated by segment and major revenue stream for the 2020 first quarter and 2019 first quarter:

	Three Months Ended March 31, 2020
($ in millions)	North America			Asia Pacific			EMEA			Total
Gross fee revenues	$	406		$	32		$	46		$	484
Contract investment amortization	(19		)	(1		)	(4		)	(24		)
Net fee revenues	387			31			42			460
Owned, leased, and other revenue	102			31			91			224
Cost reimbursement revenue	3,331			107			211			3,649
Total reportable segment revenue	$	3,820		$	169		$	344		$	4,333
Unallocated corporate and other										348
Total revenue										$	4,681

	Three Months Ended March 31, 2019
($ in millions)	North America			Asia Pacific		EMEA			Total
Gross fee revenues	$	528		$	118	$	84		$	730
Contract investment amortization	(11		)	—		(2		)	(13		)
Net fee revenues	517			118		82			717
Owned, leased, and other revenue	178			41		122			341
Cost reimbursement revenue	3,379			111		214			3,704
Total reportable segment revenue	$	4,074		$	270	$	418		$	4,762
Unallocated corporate and other									250
Total revenue									$	5,012

Segment Profits and Losses

	Three Months Ended
($ in millions)	March 31, 2020			March 31, 2019
North America	$	158		$	491
Asia Pacific	(10		)	103
EMEA	(37		)	57
Unallocated corporate and other	(5		)	(128		)
Interest expense, net of interest income	(87		)	(91		)
Income taxes	12			(57		)
Net Income	$	31		$	375