BUSINESS SEGMENTS

3 Months Ended

Mar. 31, 2024

Segment Reporting [Abstract]

BUSINESS SEGMENTS

BUSINESS SEGMENTS

Beginning in the 2024 first quarter, we modified our segment structure as a result of a change in the way our chief operating decision maker (“CODM”) evaluates performance and allocates resources within the Company, resulting in the following four reportable business segments: (1) U.S. & Canada, (2) Europe, Middle East & Africa (“EMEA”), (3) Greater China, and (4) Asia Pacific excluding China (“APEC”). Our Caribbean & Latin America (“CALA”) operating segment does not meet the applicable accounting criteria for separate disclosure as a reportable business segment, and as such, we include its results in “Unallocated corporate and other.” 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 charges and other expenses. 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, as well as results of our CALA operating segment.

Our CODM 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 2024 first quarter and 2023 first quarter:

	Three Months Ended March 31, 2024
(in millions)	U.S. & Canada		EMEA		Greater China		APEC		Total
Gross fee revenues	$	682	$	118	$	65	$	87	$	952
Contract investment amortization	(17)		(3)		—		(1)		(21)
Net fee revenues	665		115		65		86		931
Owned, leased, and other revenue	108		118		7		32		265
Cost reimbursement revenue	3,717		278		76		116		4,187
Total reportable segment revenue	$	4,490	$	511	$	148	$	234	$	5,383
Unallocated corporate and other									594
Total revenues									$	5,977

	Three Months Ended March 31, 2023
(in millions)	U.S. & Canada		EMEA		Greater China		APEC		Total
Gross fee revenues	$	672	$	105	$	57	$	67	$	901
Contract investment amortization	(16)		(3)		—		(1)		(20)
Net fee revenues	656		102		57		66		881
Owned, leased, and other revenue	117		113		4		30		264
Cost reimbursement revenue	3,505		256		70		97		3,928
Total reportable segment revenue	$	4,278	$	471	$	131	$	193	$	5,073
Unallocated corporate and other									542
Total revenues									$	5,615

Segment Profits

	Three Months Ended
(in millions)	March 31, 2024		March 31, 2023
U.S. & Canada	$	625	$	657
EMEA	81		78
Greater China	51		46
APEC	72		56
Unallocated corporate and other	51		118
Interest expense, net of interest income	(153)		(111)
Provision for income taxes	(163)		(87)
Net income	$	564	$	757