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BUSINESS SEGMENTS
 12 Months Ended
Dec. 31, 2021
Segment Reporting [Abstract]  
BUSINESS SEGMENTS BUSINESS SEGMENTS
We define our reportable segments based on the way in which the chief operating decision maker (“CODM”), currently our chief executive officer, manages the operations of the Company for purposes of allocating resources and assessing performance. We operate in two operating and reportable business segments:
•Vacation Ownership includes a diverse portfolio of resorts that includes some of the world’s most iconic brands licensed under exclusive, long-term relationships. We are the exclusive worldwide developer, marketer, seller, and manager of vacation ownership and related products under the Marriott Vacation Club, Grand Residences by Marriott, Sheraton Vacation Club, Westin Vacation Club, and Hyatt Residence Club brands, as well as under Marriott Vacation Club Pulse, an extension to the Marriott Vacation Club brand. We are also the exclusive worldwide developer, marketer, and seller of vacation ownership and related products under The Ritz-Carlton Destination Club brand, we have the non-exclusive right to develop, market, and sell whole ownership residential products under The Ritz-Carlton Residences brand and have a license to use the St. Regis brand for specified fractional ownership resorts. In addition, as part of the Welk Acquisition, we acquired the short-term license to use the Welk brand in connection with the continued operations of the Welk business. We intend to rebrand all Welk resorts as Hyatt-branded resorts once all necessary approvals have been obtained.
Our Vacation Ownership segment generates most of its revenues from four primary sources: selling vacation ownership products; managing vacation ownership resorts, clubs, and owners’ associations; financing consumer purchases of vacation ownership products; and renting vacation ownership inventory.
•Exchange & Third-Party Management includes exchange networks and membership programs, as well as provision of management services to other resorts and lodging properties. We provide these services through a variety of brands including Interval International, Trading Places International, Vacation Resorts International, and Aqua-Aston. Exchange & Third-Party Management revenue generally is fee-based and derived from membership, exchange and rental transactions, owners’ association management, and other related products and services.
Our CODM evaluates the performance of our segments based primarily on the results of the segment without allocating corporate expenses or income taxes. We do not allocate corporate interest expense or indirect general and administrative expenses to our segments. We include interest income specific to segment activities within the appropriate segment. We allocate depreciation, other gains and losses, equity in earnings or losses from our joint ventures, and noncontrolling interest to each of our segments as appropriate. Corporate and other represents that portion of our results that are not allocable to our segments, including those relating to consolidated owners’ associations, as our CODM does not use this information to make operating segment resource allocations. Prior year segment information has been reclassified to conform to the current reportable segment presentation.
Our CODM uses Adjusted EBITDA to evaluate the profitability of our operating segments, and the components of net income or loss attributable to common shareholders excluded from Adjusted EBITDA are not separately evaluated. Adjusted EBITDA is defined as net income or loss attributable to common shareholders, before interest expense (excluding consumer financing interest expense associated with term loan securitization transactions), income taxes, depreciation and amortization, excluding share-based compensation expense and adjusted for certain items that affect the comparability of our operating performance. Our reconciliation of the aggregate amount of Adjusted EBITDA for our reportable segments to consolidated net income (loss) attributable to common shareholders is presented below.
Revenues
($ in millions)202120202019
Vacation Ownership$3,539 $2,530 $3,761 
Exchange & Third-Party Management320 309 454 
Total segment revenues3,859 2,839 4,215 
Corporate and other31 47 44 
$3,890 $2,886 $4,259 
Adjusted EBITDA and Reconciliation to Net Income or Loss Attributable to Common Shareholders
($ in millions)202120202019
Adjusted EBITDA Vacation Ownership$699 $229 $794 
Adjusted EBITDA Exchange & Third-Party Management144 119 183 
Reconciling items:
Corporate and other(186)(113)(219)
Interest expense(164)(150)(132)
Tax (provision) benefit(74)84 (83)
Depreciation and amortization(146)(123)(141)
Share-based compensation expense(51)(37)(37)
Certain items(173)(284)(227)
Net income (loss) attributable to common shareholders$49 $(275)$138 
Depreciation and Amortization
($ in millions)202120202019
Vacation Ownership$89 $79 $68 
Exchange & Third-Party Management48 32 47 
Total segment depreciation137 111 115 
Corporate and other9 12 26 
$146 $123 $141 
Assets
($ in millions)At December 31, 2021At December 31, 2020
Vacation Ownership$7,897 $6,859 
Exchange & Third-Party Management911 951 
Total segment assets8,808 7,810 
Corporate and other805 1,088 
$9,613 $8,898 
Capital Expenditures (including inventory)
($ in millions)202120202019
Vacation Ownership$296 $191 $266 
Exchange & Third-Party Management3 7 14 
Total segment capital expenditures299 198 280 
Corporate and other(2)4 13 
$297 $202 $293 
Geographic Information
We conduct business globally, and our operations outside the United States represented approximately 10%, 10%, and 11% of our revenues, excluding cost reimbursements, for 2021, 2020, and 2019, respectively.
Revenues (excluding cost reimbursements)
($ in millions)202120202019
United States$2,499 $1,664 $2,810 
All other countries263 180 341 
$2,762 $1,844 $3,151 
Fixed Assets
($ in millions)At December 31, 2021At December 31, 2020
United States$988 $640 
All other countries148 151 
$1,136 $791