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BUSINESS SEGMENTS
 9 Months Ended
Sep. 30, 2023
Segment Reporting [Abstract]  
BUSINESS SEGMENTS
16. 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 Vacation Club brands, as well as under Marriott Vacation Club Pulse, an extension of 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 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.
•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 an exchange network and membership programs, as well as provision of management services to other resorts and lodging properties. We provide these services through our Interval International and Aqua-Aston businesses. Exchange & Third-Party Management revenue generally is fee-based and derived from membership, exchange and rental transactions, property and owners’ association management, and other related products and services. VRI Americas was part of the Exchange & Third-Party Management segment through the date of sale in April 2022.
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 and amortization, 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.
Our CODM uses Adjusted Earnings before Interest Expense, Taxes, Depreciation and Amortization (“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 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 or loss attributable to common shareholders is presented below.
Revenues
Three Months EndedNine Months Ended
($ in millions)September 30, 2023September 30, 2022September 30, 2023September 30, 2022
Vacation Ownership$1,126 $1,182 $3,335 $3,229 
Exchange & Third-Party Management64 71 200 229 
Total segment revenues1,190 1,253 3,535 3,458 
Corporate and other(4)(1)(2)10 
$1,186 $1,252 $3,533 $3,468 
Adjusted EBITDA and Reconciliation to Net Income Attributable to Common Shareholders
Three Months EndedNine Months Ended
($ in millions)September 30, 2023September 30, 2022September 30, 2023September 30, 2022
Adjusted EBITDA Vacation Ownership$173 $299 $647 $772 
Adjusted EBITDA Exchange & Third-Party Management30 39 99 117 
Reconciling items:
Corporate and other(53)(54)(171)(162)
Interest expense, net(36)(34)(106)(91)
Tax provision(24)(59)(115)(134)
Depreciation and amortization(33)(33)(99)(98)
Share-based compensation expense(6)(10)(25)(30)
Certain items(9)(39)(11)(71)
Net income attributable to common shareholders$42 $109 $219 $303 
Assets
($ in millions)At September 30, 2023At December 31, 2022
Vacation Ownership$8,057 $8,037 
Exchange & Third-Party Management830 865 
Total segment assets8,887 8,902 
Corporate and other566 737 
$9,453 $9,639 
Revenues Excluding Cost Reimbursements
Three Months EndedNine Months Ended
($ in millions)September 30, 2023September 30, 2022September 30, 2023September 30, 2022
United States$622 $771 $2,038 $2,173 
All other countries121 110 332 284 
$743 $881 $2,370 $2,457