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Business Segments (Tables)

12 Months Ended

Dec. 31, 2019

Schedule of Segment Operating Performance Reconciled to Consolidated Amounts

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

	Year Ended December 31,
($ in millions)	2019			2018			2017
Revenues:
Real estate sales and financing	$	1,252		$	1,462		$	1,239
Resort operations and club management⁽¹⁾		454			422			367
Total segment revenues		1,706			1,884			1,606
Cost reimbursements		168			147			135
Intersegment eliminations⁽¹⁾⁽²⁾		(36	)		(32	)		(30	)
Total revenues	$	1,838		$	1,999		$	1,711

⁽¹⁾

Includes charges to the real estate sales and financing segment from the resort operations and club management segment for fulfillment of discounted marketing package stays at resorts. These charges totaled $35 million, $31 million and $29 million for the years ended December 31, 2019, 2018 and 2017, respectively.

⁽²⁾

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 less than $2 million for the year ended December 31, 2019 and less than $1 million for each of the years ended December 31, 2018 and 2017, respectively

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)	2019			2018			2017
Adjusted EBITDA:
Real estate sales and financing⁽¹⁾	$	325		$	447		$	359
Resort operations and club management⁽¹⁾		265			245			204
Segment Adjusted EBITDA		590			692			563
General and administrative		(111	)		(117	)		(104	)
Depreciation and amortization		(51	)		(36	)		(29	)
License fee expense		(101	)		(98	)		(87	)
Other loss, net		(3	)		(1	)		—
Interest expense		(43	)		(30	)		(27	)
Income tax (expense) benefit ⁽²⁾		(57	)		(105	)		16
Equity in earnings from unconsolidated affiliates⁽³⁾		4			—			1
Other adjustment items		(12	)		(7	)		(6	)
Net income	$	216		$	298		$	327

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

⁽²⁾	On December 22, 2017, the United States enacted tax reform legislation, the TCJ 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.

₍₃₎	_{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)	2019		2018
Real estate sales and financing	$	2,753	$	2,501
Resort operations and club management		196		172
Total segment assets		2,949		2,673
Corporate		130		80
Total assets	$	3,079	$	2,753

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)	2019		2018		2017
Real estate sales and financing	$	19	$	36	$	28
Resort operations and club management		5		—		2
Total segment capital expenditures for property and equipment		24		36		30
Corporate		13		8		5
Total capital expenditures for property and equipment	$	37	$	44	$	35