BUSINESS SEGMENTS

12 Months Ended

Dec. 31, 2022

Segment Reporting [Abstract]

BUSINESS SEGMENTS

BUSINESS SEGMENTS

We discuss our operations in the following two operating segments, both of which meet the applicable accounting criteria for separate disclosure as a reportable business segment: (1) United States and Canada (“U.S. & Canada”) and (2) International.

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

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 table presents our revenues disaggregated by segment and major revenue stream for the last three fiscal years:

	2022						2021						2020
($ in millions)	U.S. & Canada		International		Total		U.S. & Canada		International		Total		U.S. & Canada		International		Total
Gross fee revenues	$	2,486	$	917	$	3,403	$	1,580	$	568	$	2,148	$	914	$	338	$	1,252
Contract investment amortization	(60)		(29)		(89)		(55)		(20)		(75)		(108)		(24)		(132)
Net fee revenues	2,426		888		3,314		1,525		548		2,073		806		314		1,120
Owned, leased, and other revenue	479		801		1,280		282		467		749		198		317		515
Cost reimbursement revenue	12,848		1,797		14,645		8,549		1,239		9,788		6,901		966		7,867
Total reportable segment revenue	$	15,753	$	3,486	$	19,239	$	10,356	$	2,254	$	12,610	$	7,905	$	1,597	$	9,502
Unallocated corporate and other					1,534						1,247						1,069
Total revenue					$	20,773					$	13,857					$	10,571

Revenues attributed to operations located outside the U.S. were $4,032 million in 2022, $2,615 million in 2021, and $1,910 million in 2020, including cost reimbursement revenue outside the U.S. of $2,231 million in 2022, $1,553 million in 2021, and $1,247 million in 2020.

Segment Profits and Losses

($ in millions)	2022		2021		2020
U.S. & Canada (1)	$	2,446	$	1,394	$	198
International (2)	794		258		(222)
Unallocated corporate and other	251		(80)		(24)
Interest expense, net of interest income	(377)		(392)		(418)
(Provision) benefit for income taxes	(756)		(81)		199
Net income (loss)	$	2,358	$	1,099	$	(267)

(1)    Includes cost reimbursements, net of $134 million in 2022, $51 million in 2021, and $(80) million in 2020.

(2)    Includes cost reimbursements, net of $49 million in 2022, $14 million in 2021, and $(55) million in 2020.

Segment profits (losses) attributed to operations located outside the U.S. were $898 million in 2022, $297 million in 2021, and $(198) million in 2020, including cost reimbursements, net (cost reimbursement revenue, net of reimbursed expenses) outside the U.S. of $67 million in 2022, $14 million in 2021, and $(62) million in 2020.

Depreciation, Amortization, and Other

($ in millions)	2022		2021		2020
U.S. & Canada	$	81	$	92	$	209
International	85		106		113
Unallocated corporate and other	27		22		24
	$	193	$	220	$	346

Capital Expenditures

($ in millions)	2022		2021		2020
U.S. & Canada	$	24	$	13	$	12
International	17		12		17
Unallocated corporate and other	291		158		106
	$	332	$	183	$	135