SEGMENT INFORMATION (Tables)

3 Months Ended

Mar. 31, 2017

SEGMENT INFORMATION

Schedule of information on reportable segments and reconciliation to consolidated operating income

Information on reportable segments and reconciliation to consolidated operating income is as follows (in millions):

	Three Months Ended
	March 31,
	2017		2016
Vacation Ownership:
Resort operations revenue	$	58	$	5
Management fee revenue		30		21
Sales of vacation ownership products, net		110		9
Consumer financing revenue		21		2
Cost reimbursement revenue		62		15
Total revenue		281		52
Cost of service and membership related		13		8
Cost of sales of vacation ownership products		27		6
Cost of rental and ancillary services		52		2
Cost of consumer financing		6		—
Cost reimbursements		62		15
Total cost of sales		160		31
Royalty fee expense		10		1
Selling and marketing expense		59		3
General and administrative expense		24		14
Amortization expense of intangibles		2		1
Depreciation expense		10		—
Segment operating income	$	16	$	2

	Three Months Ended
	March 31,
	2017		2016
Exchange and Rental:
Transaction revenue	$	59	$	58
Membership fee revenue		35		30
Ancillary member revenue		2		2
Total member revenue		96		90
Club rental revenue		30		3
Other revenue		5		6
Rental management revenue		14		13
Cost reimbursement revenue		26		22
Total Exchange and Rental revenue		171		134
Cost of service and membership related sales		19		16
Cost of sales of rental and ancillary services		26		12
Cost reimbursements		26		22
Total cost of sales		71		50
Royalty fee expense		—		1
Selling and marketing expense		14		14
General and administrative expense		30		24
Amortization expense of intangibles		3		2
Depreciation expense		5		5
Segment operating income	$	48	$	38

	Three Months Ended
	March 31,
	2017		2016
Consolidated:
Revenue	$	452	$	186
Cost of sales		231		81
Operating expenses		157		65
Operating income	$	64	$	40

Schedule of financial information by reportable segment

Selected financial information by reporting segment is presented below (in millions).

	March 31,		December 31,
	2017		2016
Total Assets:
Vacation Ownership	$	2,286	$	2,220
Exchange and Rental		1,118		1,084
Total	$	3,404	$	3,304

Schedule of geographic information on revenue, based on sourcing, and long-lived assets, based on physical location

Geographic information on revenue, based on sourcing, and long‑lived assets, based on physical location, is presented in the table below (in millions).

	Three Months Ended
	March 31,
	2017		2016
Revenue:
United States	$	380	$	156
Europe		16		17
All other countries(1)		56		13
Total	$	452	$	186

(1) Includes countries within the following continents: Africa, Asia, Australia, North America and South America.

	March 31,		December 31,
	2017		2016
Long-lived assets (excluding goodwill and intangible assets):
United States	$	479	$	469
Mexico		122		107
Europe		3		4
Total	$	604	$	580