Segment Reporting

6 Months Ended

Jun. 30, 2020

Segment Reporting [Abstract]

Segment Reporting

12. Segment Reporting

Operating segments are defined as components of an enterprise about which separate financial information is available that is regularly reviewed by the chief operating decision maker in assessing performance and deciding how to allocate resources. Reportable segments consist of one or more operating segments with similar economic characteristics, products and services, production processes, type of customer, distribution system or regulatory environment.

We report our results of operations through two reportable segments: (i) Sales of VOIs and financing; and (ii) Resort operations and club management.

Our Sales of VOIs and financing segment includes our marketing and sales activities related to the VOIs that we own, our VOIs we acquire under just-in-time and secondary market inventory arrangements, our sales of VOIs through fee-for-service arrangements with third-party developers, our consumer financing activities in connection with sales of VOIs that we own, and our title services operations through a wholly-owned subsidiary.

Our Resort operations and club management segment includes our provision of management services activities for our Vacation Club and for a majority of the HOAs of the resorts within our Vacation Club. In connection with those services, we also provide club reservation services, services to owners and billing and collections services to our Vacation Club and certain HOAs. Additionally, we generate revenue within our resort operations and club management segment from our Traveler Plus

program, food and beverage and other retail operations, our rental services activities, and management of construction activities for certain of our fee-based developer clients.

The information provided for segment reporting is obtained from internal reports utilized by management. The presentation and allocation of results of operations may not reflect the actual economic costs of the segments as standalone businesses. Due to the nature of our business, assets are not allocated to a particular segment, and therefore management does not evaluate the balance sheet by segment. If a different basis of allocation were utilized, the relative contributions of the segments might differ but the relative trends in the segments’ operating results would, in management’s view, likely not be materially impacted.

The table below sets forth our segment information for the three months ended June 30, 2020 (in thousands):

Revenue:	Sales of ‎VOIs and ‎financing		Resort ‎operations ‎and club ‎management		Corporate ‎and other		Elimination		‎Total
Sales of VOIs	$	9,054	$	—	$	—	$	—	$	9,054
Fee-based sales commission revenue		1,135		—		—		—		1,135
Other fee-based services revenue		1,349		25,064		—		—		26,413
Cost reimbursements		—		11,850		—		—		11,850
Mortgage servicing revenue		1,510		—		—		(1,510)		—
Interest income		19,061		—		1,047		—		20,108
Other income, net		—		—		273		—		273
Total revenue		32,109		36,914		1,320		(1,510)		68,833
Costs and expenses:
Cost of VOIs sold		1,038		—		—		—		1,038
Net carrying cost of VOI inventory		10,913		—		—		(10,913)		—
Cost of other fee-based services		719		6,903		—		10,913		18,535
Cost reimbursements		—		11,850		—		—		11,850
Selling, general and administrative expenses		32,329		—		9,115		(564)		40,880
Mortgage servicing expense		946		—		—		(946)		—
Interest expense		4,171		—		4,369		—		8,540
Total costs and expenses		50,116		18,753		13,484		(1,510)		80,843
(Loss) Income before non-controlling interest ‎  and (benefit) provision for income taxes	$	(18,007)	$	18,161	$	(12,164)	$	—	$	(12,010)
Add: Depreciation and amortization		1,483		190
Add: Severance		1,206		99
Segment Adjusted EBITDA (1)	$	(15,318)	$	18,450

(1)See Management’s Discussion and Analysis of Financial Condition and Results of Operations for information regarding Adjusted EBITDA, including how we define Adjusted EBITDA and a reconciliation of Adjusted EBITDA to net income.

‎

The table below sets forth our segment information for the three months ended June 30, 2019 (in thousands):

Revenue:	Sales of ‎VOIs and ‎financing		Resort ‎operations ‎and club ‎management		Corporate ‎and other		Elimination		‎Total
Sales of VOIs	$	68,302	$	—	$	—	$	—	$	68,302
Fee-based sales commission revenue		55,343		—		—		—		55,343
Other fee-based services revenue		3,040		27,663		—		—		30,703
Cost reimbursements		—		14,007		—		—		14,007
Mortgage servicing revenue		1,544		—		—		(1,544)		—
Interest income		19,925		—		1,950		—		21,875
Other income, net		—		—		1,993		—		1,993
Total revenue		148,154		41,670		3,943		(1,544)		192,223
Costs and expenses:
Cost of VOIs sold		10,572		—		—		—		10,572
Net carrying cost of VOI inventory		5,288		—		—		(5,288)		—
Cost of other fee-based services		1,099		12,662		—		5,288		19,049
Cost reimbursements		—		14,007		—		—		14,007
Selling, general and administrative expenses		130,284		—		18,629		(370)		148,543
Mortgage servicing expense		1,174		—		—		(1,174)		—
Interest expense		5,070		—		4,991		—		10,061
Total costs and expenses		153,487		26,669		23,620		(1,544)		202,232
(Loss) Income before non-controlling interest   and (benefit) provision for income taxes	$	(5,333)	$	15,001	$	(19,677)	$	—	$	(10,009)
Add: Depreciation and amortization		1,534		364
Add: Bass Pro Settlement		39,121		—
Segment Adjusted EBITDA (1)	$	35,322	$	15,365

(1)See Management’s Discussion and Analysis of Financial Condition and Results of Operations for information regarding Adjusted EBITDA, including how we define Adjusted EBITDA and a reconciliation of Adjusted EBITDA to net income. 

‎

The table below sets forth our segment information for the six months ended June 30, 2020 (in thousands):

Revenue:	Sales of ‎VOIs and ‎financing		Resort ‎operations ‎and club ‎management		Corporate ‎and other		Elimination		‎Total
Sales of VOIs	$	54,182	$	—	$	—	$	—	$	54,182
Fee-based sales commission revenue		42,500		—		—		—		42,500
Other fee-based services revenue		4,072		51,655		—		—		55,727
Cost reimbursements		—		30,970		—		—		30,970
Mortgage servicing revenue		3,105		—		—		(3,105)		—
Interest income		39,209		—		2,765		—		41,974
Other income, net		—		—		406		—		406
Total revenue		143,068		82,625		3,171		(3,105)		225,759
Costs and expenses:
Cost of VOIs sold		5,137		—		—		—		5,137
Net carrying cost of VOI inventory		18,827		—		—		(18,827)		—
Cost of other fee-based services		2,189		19,230		—		18,827		40,246
Cost reimbursements		—		30,970		—		—		30,970
Selling, general and administrative expenses		115,467		—		28,349		(739)		143,077
Mortgage servicing expense		2,366		—		—		(2,366)		—
Interest expense		8,835		—		8,523		—		17,358
Total costs and expenses		152,821		50,200		36,872		(3,105)		236,788
(Loss) Income before non-controlling interest ‎  and (benefit) provision for income taxes	$	(9,753)	$	32,425	$	(33,701)	$	—	$	(11,029)
Add: Depreciation and amortization		3,042		380
Add: Severance		3,769		1,233
Segment Adjusted EBITDA (1)	$	(2,942)	$	34,038

(1)See Management’s Discussion and Analysis of Financial Condition and Results of Operations for information regarding Adjusted EBITDA, including how we define Adjusted EBITDA and a reconciliation of Adjusted EBITDA to net income. 

‎

The table below sets forth our segment information for the six months ended June 30, 2019 (in thousands):

Revenue:	Sales of ‎VOIs and ‎financing		Resort ‎operations ‎and club ‎management		Corporate ‎and other		Elimination		‎Total
Sales of VOIs	$	120,033	$	—	$	—	$	—	$	120,033
Fee-based sales commission revenue		100,555		—		—		—		100,555
Other fee-based services revenue		5,768		54,503		—		—		60,271
Cost reimbursements		—		31,051		—		—		31,051
Mortgage servicing revenue		3,034		—		—		(3,034)		—
Interest income		39,942		—		3,941		—		43,883
Other income, net		—		—		2,082		—		2,082
Total revenue		269,332		85,554		6,023		(3,034)		357,875
Costs and expenses:
Cost of VOIs sold		14,420		—		—		—		14,420
Net carrying cost of VOI inventory		12,976		—		—		(12,976)		—
Cost of other fee-based services		2,309		25,757		—		12,976		41,042
Cost reimbursements		—		31,051		—		—		31,051
Selling, general and administrative expenses		203,355		—		36,757		(480)		239,632
Mortgage servicing expense		2,554		—		—		(2,554)		—
Interest expense		10,332		—		9,235		—		19,567
Total costs and expenses		245,946		56,808		45,992		(3,034)		345,712
Income (loss) before non-controlling interest ‎  and provision (benefit) for income taxes	$	23,386	$	28,746	$	(39,969)	$	—	$	12,163
Add: Depreciation and amortization		3,070		730
Add: Bass Pro Settlement		39,121		—
Segment Adjusted EBITDA (1)	$	65,577	$	29,476

(1)See Management’s Discussion and Analysis of Financial Condition and Results of Operations for information regarding Adjusted EBITDA, including how we define Adjusted EBITDA and a reconciliation of Adjusted EBITDA to net income.