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Business Segments (Tables)
 12 Months Ended
Dec. 31, 2018
Segment Reporting [Abstract]  
Schedule of Segment Revenues Reconciled to Consolidated Amounts

We do not include equity in earnings (losses) from unconsolidated affiliate in our measures of segment revenues. The following table presents revenues for our reportable segments reconciled to consolidated amounts:

 

 

 

Year Ended December 31,

 

($ in millions)

 

2018

 

 

2017

 

 

2016

 

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

Real estate sales and financing(1)

 

$

1,462

 

 

$

1,239

 

 

$

1,143

 

Resort operations and club management(2)

 

 

422

 

 

 

367

 

 

 

339

 

Total segment revenues

 

 

1,884

 

 

 

1,606

 

 

 

1,482

 

Cost reimbursements

 

 

147

 

 

 

135

 

 

 

126

 

Intersegment eliminations(1)(2)(3)

 

 

(32

)

 

 

(30

)

 

 

(25

)

Total revenues

 

$

1,999

 

 

$

1,711

 

 

$

1,583

 

 

(1)

Includes charges to the resort operations and club management segment for billing and collection services provided by the real estate sales and financing segment. These charges totaled $2 million for the year ended December 31, 2016. There were no charges for the years ended December 31, 2018 and 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 $31 million, $29 million and $23 million for the years ended December 31, 2018, 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 the years ended December 31, 2018 and 2017. There were no charges for the year ended December 31, 2016.

Schedule of Adjusted EBITDA Reconciled to Net Income

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

 

 

 

Year Ended December 31,

 

($ in millions)

 

2018

 

 

2017

 

 

2016

 

Adjusted EBITDA:

 

 

 

 

 

 

 

 

 

 

 

 

Real estate sales and financing(1)

 

$

447

 

 

$

359

 

 

$

336

 

Resort operations and club management(1)

 

 

245

 

 

 

204

 

 

 

189

 

Segment Adjusted EBITDA

 

 

692

 

 

 

563

 

 

 

525

 

General and administrative

 

 

(117

)

 

 

(104

)

 

 

(92

)

Depreciation and amortization

 

 

(36

)

 

 

(29

)

 

 

(24

)

License fee expense

 

 

(98

)

 

 

(87

)

 

 

(80

)

Interest expense

 

 

(30

)

 

 

(27

)

 

 

(3

)

Allocated Parent interest expense(2)

 

 

—

 

 

 

—

 

 

 

(26

)

Other loss, net

 

 

(1

)

 

 

—

 

 

 

(1

)

Equity in earnings from unconsolidated affiliates(4)

 

 

—

 

 

 

1

 

 

 

—

 

Income tax benefit (expense)(3)

 

 

(105

)

 

 

16

 

 

 

(125

)

Other adjustment items

 

 

(7

)

 

 

(6

)

 

 

(6

)

Net income

 

$

298

 

 

$

327

 

 

$

168

 

 

(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)

On December 22, 2017, the United States enacted tax reform legislation, the Act, resulting in significant modifications to existing law which resulted in a reduction in income tax expense for the year ended December 31, 2017. See Note 17: Income Taxes for additional information.

(4)

This amount primarily represents our 25 percent interest in BRE Ace LLC and our 50 percent interest in 1776 Holdings, LLC. See Note 9: Investment in Unconsolidated Affiliates for additional information.
Schedule of Assets Reconciled to Consolidated Amounts

The following table presents total assets for our reportable segments, reconciled to consolidated amounts:

 

 

 

December 31,

 

($ in millions)

 

2018

 

 

2017

 

Real estate sales and financing

 

$

2,501

 

 

$

2,255

 

Resort operations and club management

 

 

172

 

 

 

78

 

Total segment assets

 

 

2,673

 

 

 

2,333

 

Corporate

 

 

80

 

 

 

51

 

Total assets

 

$

2,753

 

 

$

2,384

 

 
Schedule of Capital Expenditures for Property and Equipment Reconciled to Consolidated Amounts

The following table presents capital expenditures for property and equipment for our reportable segments, reconciled to consolidated amounts:

 

 

 

December 31,

 

($ in millions)

 

2018

 

 

2017

 

 

2016

 

Real estate sales and financing

 

$

36

 

 

$

28

 

 

$

19

 

Resort operations and club management

 

 

—

 

 

 

2

 

 

 

1

 

Total segment capital expenditures for property and equipment

 

 

36

 

 

 

30

 

 

 

20

 

Corporate

 

 

8

 

 

 

5

 

 

 

6

 

Total capital expenditures for property and equipment

 

$

44

 

 

$

35

 

 

$

26