SEGMENT INFORMATION (Tables)

6 Months Ended

Jun. 30, 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				Six Months Ended
	June 30,				June 30,
	2017		2016		2017		2016
Vacation Ownership:
Resort operations revenue	$	52	$	30	$	109	$	35
Management fee and other revenue		34		27		66		48
Sales of vacation ownership products, net		123		49		233		58
Consumer financing revenue		22		11		43		13
Cost reimbursement revenue		63		40		125		55
Total revenue		294		157		576		209
Cost of service and membership related		14		11		26		20
Cost of sales of vacation ownership products		29		19		56		25
Cost of rental and ancillary services		57		23		108		25
Cost of consumer financing		7		3		14		3
Cost reimbursements		63		40		125		55
Total cost of sales		170		96		329		128
Royalty fee expense		10		5		20		6
Selling and marketing expense		66		27		124		30
General and administrative expense		27		22		53		36
Amortization expense of intangibles		2		2		4		3
Depreciation expense		10		5		20		5
Segment operating income	$	9	$	—	$	26	$	1

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2017		2016		2017		2016
Exchange and Rental:
Transaction revenue	$	49	$	50	$	108	$	108
Membership fee revenue		35		34		70		64
Ancillary member revenue		2		1		4		3
Total member revenue		86		85		182		175
Club rental revenue		27		15		57		18
Other revenue		6		6		11		12
Rental management revenue		11		10		25		23
Cost reimbursement revenue		26		24		51		46
Total Exchange and Rental revenue		156		140		326		274
Cost of service and membership related sales		18		16		38		32
Cost of sales of rental and ancillary services		21		19		48		31
Cost reimbursements		26		24		51		46
Total cost of sales		65		59		137		109
Royalty fee expense		1		—		1		1
Selling and marketing expense		14		15		28		29
General and administrative expense		31		32		59		56
Amortization expense of intangibles		3		3		6		5
Depreciation expense		5		4		10		9
Segment operating income	$	37	$	27	$	85	$	65

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2017		2016		2017		2016
Consolidated:
Revenue	$	450	$	297	$	902	$	483
Cost of sales		235		155		466		237
Operating expenses		169		115		325		180
Operating income	$	46	$	27	$	111	$	66

Schedule of financial information by reportable segment

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

	June 30,		December 31,
	2017		2016
Total Assets:
Vacation Ownership	$	2,359	$	2,220
Exchange and Rental		1,079		1,084
Total	$	3,438	$	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				Six Months Ended
	June 30,				June 30,
	2017		2016		2017		2016
Revenue:
United States	$	375	$	250	$	755	$	406
Europe		16		17		32		34
All other countries(1)		59		30		115		43
Total	$	450	$	297	$	902	$	483

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

	June 30,		December 31,
	2017		2016
Long-lived assets (excluding goodwill and intangible assets):
United States	$	469	$	469
Mexico		124		107
Europe		4		4
Total	$	597	$	580