Business Segments

3 Months Ended

Mar. 31, 2023

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) U.S. & Canada and (2) International.

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. We assign gains and losses, equity in earnings or losses, and direct general, administrative, and other expenses 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, 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 2023 first quarter and 2022 first quarter:

	Three Months Ended March 31, 2023						Three Months Ended March 31, 2022
(in millions)	U.S. & Canada		International		Total		U.S. & Canada		International		Total
Gross fee revenues	$	672	$	291	$	963	$	489	$	177	$	666
Contract investment amortization	(16)		(5)		(21)		(14)		(10)		(24)
Net fee revenues	656		286		942		475		167		642
Owned, leased, and other revenue	117		214		331		92		153		245
Cost reimbursement revenue	3,505		508		4,013		2,704		355		3,059
Total reportable segment revenue	$	4,278	$	1,008	$	5,286	$	3,271	$	675	$	3,946
Unallocated corporate and other					329						253
Total revenue					$	5,615					$	4,199

Segment Profits

	Three Months Ended
(in millions)	March 31, 2023		March 31, 2022
U.S. & Canada	$	657	$	454
International	252		131
Unallocated corporate and other	46		(21)
Interest expense, net of interest income	(111)		(88)
Provision for income taxes	(87)		(99)
Net income	$	757	$	377