Business Segments (Tables)

9 Months Ended

Sep. 30, 2017

Segment Reporting [Abstract]

Schedule of Segment Revenues Reconciled to Consolidated Amounts

The following table presents revenues for our reportable segments reconciled to consolidated amounts:

	Three Months Ended September 30,						Nine Months Ended September 30,
($ in millions)	2017			2016			2017			2016
Revenues:
Real estate sales and financing(1)	$	310		$	301		$	916		$	843
Resort operations and club management(2)		90			81			270			251
Total segment revenues		400			382			1,186			1,094
Cost reimbursements		34			33			102			94
Intersegment eliminations(1)(2)(3)		(8	)		(8	)		(24	)		(20	)
Total revenues	$	426		$	407		$	1,264		$	1,168

⁽¹⁾ Includes charges of $1 million and $2 million to the resort operations and club management segment for billing and collection services provided by the real estate sales and financing segment for the three and nine months ended September 30, 2016. There were no charges for thethree and nine months ended September 30, 2017.

⁽²⁾ Includes charges to the real estate sales and financing segment from the resort operations and club management segment for discounted stays at properties resulting from marketing packages. These charges totaled $7 million for each ofthe three months ended September 30, 2017 and 2016, and $23 million and $18 million for the nine months ended September 30, 2017 and 2016, respectively.

⁽³⁾ Includes charges to the real estate sales and financing segment from the resort operations and club management segment for the rental of model units to show prospective buyers. These charges totaled $1 million for each of the three and nine months ended September 30, 2017. There were charges of less than $1 million for each of the three and nine months ended September 30, 2016

Schedule of Adjusted EBITDA Reconciled to Net Income

The following table presents Adjusted EBITDA for our reportable segments reconciled to net income:

	Three Months Ended September 30,						Nine Months Ended September 30,
($ in millions)	2017			2016			2017			2016
Adjusted EBITDA:
Real estate sales and financing(1)	$	81		$	85		$	263		$	250
Resort operations and club management(1)		50			42			153			139
Segment Adjusted EBITDA		131			127			416			389
General and administrative		(23	)		(24	)		(75	)		(61	)
Depreciation and amortization		(7	)		(6	)		(21	)		(17	)
License fee expense		(22	)		(22	)		(65	)		(61	)
Other loss, net		—			—			—			(1	)
Gain on foreign currency transactions		1			1			1			2
Allocated Parent interest expense(2)		—			(7	)		—			(20	)
Interest expense		(7	)		—			(21	)		—
Income tax expense		(28	)		(33	)		(87	)		(98	)
Equity in earnings from unconsolidated affiliate(3)		1			—			1			—
Other adjustment items		(3	)		(1	)		(5	)		(3	)
Net income	$	43		$	35		$	144		$	130

⁽¹⁾ Includes intersegment eliminations. Refer to our table presenting revenues by reportable segment above for additional discussion.

⁽²⁾ This amount represents interest expense on an unconditional obligation to guarantee certain Hilton allocated debt balances which were released in November 2016.

⁽³⁾ This amount represents our 25 percent interest in BRE Ace LLC. See Note 7: Investment in Unconsolidated Affiliate for additional information.