Condensed Consolidating Guarantor Financial Information

9 Months Ended

Sep. 30, 2019

Organization Consolidation And Presentation Of Financial Statements [Abstract]

Condensed Consolidating Guarantor Financial Information

Note 20: Condensed Consolidating Guarantor Financial Information

The following schedules present the unaudited condensed consolidating financial information as of September 30, 2019 and December 31, 2018 and for the three and nine months ended September 30, 2019 and 2018 for the Parent, Subsidiary Issuers, Guarantors and Non-Guarantors.

	September 30, 2019
($ in millions)	Parent		Issuers		Guarantors		Non- Guarantors		Eliminations			Total
ASSETS
Cash and cash equivalents	$	2	$	—	$	79	$	32	$	—		$	113
Restricted cash		—		—		48		50		—			98
Accounts receivable, net		—		—		142		22		(27	)		137
Timeshare financing receivables, net		—		—		380		759		—			1,139
Inventory		—		—		480		38		—			518
Property and equipment, net		—		—		713		52		—			765
Operating lease right-of-use assets, net		—		—		60		2		—			62
Investments in unconsolidated affiliates		—		—		44		—		—			44
Intangible assets, net		—		—		87		—		—			87
Other assets		—		5		59		11		—			75
Investments in subsidiaries		492		1,275		144		—		(1,911	)		—
TOTAL ASSETS	$	494	$	1,280	$	2,236	$	966	$	(1,938	)	$	3,038
LIABILITIES AND EQUITY
Accounts payable, accrued    expenses and other	$	—	$	—	$	346	$	24	$	(27	)	$	343
Advanced deposits		—		—		111		1		—			112
Debt, net		—		788		27		—		—			815
Non-recourse debt, net		—		—		—		795		—			795
Operating lease liabilities		—		—		76		2		—			78
Deferred revenues		—		—		165		—		—			165
Deferred income tax liabilities		—		—		236		—		—			236
Total equity		494		492		1,275		144		(1,911	)		494
TOTAL LIABILITIES AND EQUITY	$	494	$	1,280	$	2,236	$	966	$	(1,938	)	$	3,038

	December 31, 2018
($ in millions)	Parent		Issuers		Guarantors		Non- Guarantors		Eliminations			Total
ASSETS
Cash and cash equivalents	$	4	$	—	$	89	$	15	$	—		$	108
Restricted cash		—		—		45		27		—			72
Accounts receivable, net		—		—		157		17		(21	)		153
Timeshare financing receivables, net		—		—		209		911		—			1,120
Inventory		—		—		502		25		—			527
Property and equipment, net		—		—		553		6		—			559
Investments in unconsolidated affiliate		—		—		38		—		—			38
Intangible assets, net		—		—		81		—		—			81
Other assets		—		6		41		48		—			95
Investments in subsidiaries		612		1,210		277		—		(2,099	)		—
TOTAL ASSETS	$	616	$	1,216	$	1,992	$	1,049	$	(2,120	)	$	2,753
LIABILITIES AND EQUITY
Accounts payable, accrued    expenses and other	$	—	$	—	$	332	$	13	$	(21	)	$	324
Advanced deposits		—		—		101		—		—			101
Debt, net		—		604		—		—		—			604
Non-recourse debt, net		—		—		—		759		—			759
Deferred revenues		—		—		95		—		—			95
Deferred income tax liabilities		—		—		254		—		—			254
Total equity		616		612		1,210		277		(2,099	)		616
TOTAL LIABILITIES AND EQUITY	$	616	$	1,216	$	1,992	$	1,049	$	(2,120	)	$	2,753

	For the Three Months Ended September 30, 2019
($ in millions)	Parent		Issuers			Guarantors			Non- Guarantors			Eliminations			Total
Revenues
Sales of VOIs, net	$	—	$	—		$	123		$	15		$	—		$	138
Sales, marketing, brand and other fees		—		—			154			1			(12	)		143
Financing		—		—			19			26			(2	)		43
Resort and club management		—		—			44			1			—			45
Rental and ancillary services		—		—			53			1			—			54
Cost reimbursements		—		—			42			1			—			43
Total revenues		—		—			435			45			(14	)		466
Expenses
Cost of VOI sales		—		—			22			2			—			24
Sales and marketing		—		—			187			13			(12	)		188
Financing		—		—			6			10			(2	)		14
Resort and club management		—		—			11			—			—			11
Rental and ancillary services		—		—			34			2			—			36
General and administrative		—		—			27			1			—			28
Depreciation and amortization		—		—			14			—			—			14
License fee expense		—		—			28			(2	)		—			26
Cost reimbursements		—		—			42			1			—			43
Total operating expenses		—		—			371			27			(14	)		384
Interest expense		—		(12	)		—			—			—			(12	)
Dividends from subsidiary		6		6			—			—			(12	)		—
Equity in earnings from unconsolidated    affiliates		—		—			1			—			—			1
Other loss, net		—		—			(1	)		—			—			(1	)
Income before income taxes		6		(6	)		64			18			(12	)		70
Income tax expense		—		—			(20	)		—			—			(20	)
Income before equity in earnings    from subsidiaries		6		(6	)		44			18			(12	)		50
Equity in earnings from subsidiaries		44		62			18			—			(124	)		—
Net income	$	50	$	56		$	62		$	18		$	(136	)	$	50

	For the Three Months Ended September 30, 2018
($ in millions)	Parent		Issuers			Guarantors			Non- Guarantors		Eliminations			Total
Revenues
Sales of VOIs, net	$	—	$	—		$	97		$	2	$	—		$	99
Sales, marketing, brand and other fees		—		—			151			1		—			152
Financing		—		—			17			26		(3	)		40
Resort and club management		—		—			40			—		—			40
Rental and ancillary services		—		—			59			1		—			60
Cost reimbursements		—		—			35			1		—			36
Total revenues		—		—			399			31		(3	)		427
Expenses
Cost of VOI sales		—		—			29			—		—			29
Sales and marketing		—		—			172			2		—			174
Financing		—		—			4			11		(3	)		12
Resort and club management		—		—			11			—		—			11
Rental and ancillary services		—		—			36			1		—			37
General and administrative		—		—			30			1		—			31
Depreciation and amortization		—		—			9			—		—			9
License fee expense		—		—			25			—		—			25
Cost reimbursements		—		—			35			1		—			36
Total operating expenses		—		—			351			16		(3	)		364
Interest expense		—		(7	)		—			—		—			(7	)
Equity in earnings from unconsolidated    affiliates		—		—			1			—		—			1
Other loss		—		—			(1	)		—		—			(1	)
Income (loss) before income taxes		—		(7	)		48			15		—			56
Income tax expense		—		—			(15	)		—		—			(15	)
Income (loss) before equity in earnings    (loss) from subsidiaries		—		(7	)		33			15		—			41
Equity in earnings from subsidiaries		41		48			15			—		(104	)		—
Net income	$	41	$	41		$	48		$	15	$	(104	)	$	41

	For the Nine Months Ended September 30, 2019
($ in millions)	Parent			Issuers			Guarantors			Non- Guarantors			Eliminations			Total
Revenues
Sales of VOIs, net	$	—		$	—		$	333		$	50		$	—		$	383
Sales, marketing, brand and other fees		—			—			459			5			(35	)		429
Financing		—			—			57			76			(6	)		127
Resort and club management		—			—			129			1			—			130
Rental and ancillary services		—			—			171			2			—			173
Cost reimbursements		—			—			125			3			—			128
Total revenues		—			—			1,274			137			(41	)		1,370
Expenses
Cost of VOI sales		—			—			83			9			—			92
Sales and marketing		—			—			544			35			(35	)		544
Financing		—			—			14			31			(6	)		39
Resort and club management		—			—			34			—			—			34
Rental and ancillary services		—			—			104			4			—			108
General and administrative		—			—			81			1			—			82
Depreciation and amortization		—			—			37			—			—			37
License fee expense		—			—			75			—			—			75
Cost reimbursements		—			—			125			3			—			128
Total operating expenses		—			—			1,097			83			(41	)		1,139
Interest expense		—			(33	)		—			—			—			(33	)
Dividends from subsidiary		281			281			—			—			(562	)		—
Equity in earnings from unconsolidated    affiliates		—			—			4			—			—			4
Other loss, net		—			—			(3	)		—			—			(3	)
Income before income taxes		281			248			178			54			(562	)		199
Income tax expense		—			—			(54	)		(1	)		—			(55	)
Income before equity in earnings    from subsidiaries		281			248			124			53			(562	)		144
Equity in (losses) earnings from subsidiaries		(181	)		177			53			—			(49	)		—
Net income	$	100		$	425		$	177		$	53		$	(611	)	$	144

	For the Nine Months Ended September 30, 2018
($ in millions)	Parent		Issuers			Guarantors			Non- Guarantors		Eliminations			Total
Revenues
Sales of VOIs, net	$	—	$	—		$	422		$	5	$	—		$	427
Sales, marketing, brand and other fees		—		—			424			3		(4	)		423
Financing		—		—			54			68		(5	)		117
Resort and club management		—		—			116			—		—			116
Rental and ancillary services		—		—			162			2		—			164
Cost reimbursements		—		—			107			3		—			110
Total revenues		—		—			1,285			81		(9	)		1,357
Expenses
Cost of VOI sales		—		—			109			—		—			109
Sales and marketing		—		—			526			6		(4	)		528
Financing		—		—			14			26		(5	)		35
Resort and club management		—		—			33			—		—			33
Rental and ancillary services		—		—			93			2		—			95
General and administrative		—		—			83			1		—			84
Depreciation and amortization		—		—			25			—		—			25
License fee expense		—		—			73			—		—			73
Cost reimbursements		—		—			107			3		—			110
Total operating expenses		—		—			1,063			38		(9	)		1,092
Interest expense		—		(22	)		—			—		—			(22	)
Other loss		—		—			(1	)		—		—			(1	)
Income (loss) before income taxes		—		(22	)		221			43		—			242
Income tax expense		—		—			(64	)		—		—			(64	)
Income (loss) before equity in earnings    (loss) from subsidiaries		—		(22	)		157			43		—			178
Equity in earnings from subsidiaries		178		200			43			—		(421	)		—
Net income	$	178	$	178		$	200		$	43	$	(421	)	$	178

	For the Nine Months Ended September 30, 2019
($ in millions)	Parent			Issuers			Guarantors			Non- Guarantors			Eliminations			Total
Operating Activities
Net cash provided by (used in) operating    activities	$	—		$	248		$	(50	)	$	231		$	(281	)	$	148
Investing Activities
Capital expenditures for property and    equipment		—			—			(22	)		(3	)		—			(25	)
Software capitalization costs		—			—			(19	)		—			—			(19	)
Investments in unconsolidated affiliates		—			—			(2	)		—			—			(2	)
Dividends from subsidiary		281			281			—			—			(562	)		—
Net cash provided by (used in) investing    activities		281			281			(43	)		(3	)		(562	)		(46	)
Financing Activities
Issuance of debt		—			455			—			—			—			455
Issuance of non-recourse debt		—			—			—			365			—			365
Repayment of debt		—			(272	)		—			—			—			(272	)
Repayment of non-recourse debt		—			—			—			(327	)		—			(327	)
Debt issuance costs		—			—			—			(6	)		—			(6	)
Repurchase and retirement of common stock		(283	)		—			—			—			—			(283	)
Payment of withholding taxes on vesting of    restricted stock units		—			—			(3	)		—			—			(3	)
Proceeds from employee stock plan    purchases		—			—			2			—			—			2
Other financing activity		—			—			(2	)		—			—			(2	)
Intercompany transfers		—			(712	)		89			(220	)		843			—
Net cash (used in) provided by financing    activities		(283	)		(529	)		86			(188	)		843			(71	)
Net (decrease) increase in cash, cash    equivalents and restricted cash		(2	)		—			(7	)		40			—			31
Cash, cash equivalents and restricted cash,    beginning of period		4			—			134			42			—			180
Cash, cash equivalents and restricted cash,    end of period	$	2		$	—		$	127		$	82		$	—		$	211

	For the Nine Months Ended September 30, 2018
($ in millions)	Parent		Issuers			Guarantors			Non- Guarantors			Eliminations			Total
Operating Activities
Net cash (used in) provided by operating    activities	$	—	$	(20	)	$	10		$	(241	)	$	46		$	(205	)
Investing Activities
Capital expenditures for property and    equipment		—		—			(25	)		(4	)		—			(29	)
Software capitalization costs		—		—			(12	)		—			—			(12	)
Return of investment from unconsolidated    affiliates		—		—			11			—			—			11
Investment in unconsolidated affiliate		—		—			(5	)		—			—			(5	)
Net cash used in investing activities		—		—			(31	)		(4	)		—			(35	)
Financing Activities
Issuance of debt		—		215			—			—			—			215
Issuance of non-recourse debt		—		—			—			663			—			663
Repayment of debt		—		(168	)		—			—			—			(168	)
Repayment of non-recourse debt		—		—			—			(436	)		—			(436	)
Debt issuance costs		—		—			—			(6	)		—			(6	)
Repurchase and retirement of common stock		—		(112	)		—			—			—			(112	)
Payment of withholding taxes on vesting of    restricted stock units		—		(4	)		—			—			—			(4	)
Capital contribution		—		3			—			—			—			3
Intercompany transfers		—		86			(63	)		23			(46	)		—
Net cash provided by (used in) financing    activities		—		20			(63	)		244			(46	)		155
Net decrease in cash, cash equivalents and    restricted cash		—		—			(84	)		(1	)		—			(85	)
Cash, cash equivalents and restricted cash,    beginning of period		—		—			259			38			—			297
Cash, cash equivalents and restricted cash,    end of period	$	—	$	—		$	175		$	37		$	—		$	212