Segment Reporting

9 Months Ended

Sep. 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 third-party 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 September 30, 2020 (in thousands):

Revenue:	Sales of ‎VOIs and ‎financing		Resort ‎operations ‎and club ‎management		Corporate ‎and other		Elimination		‎Total
Sales of VOIs	$	59,265	$	—	$	—	$	—	$	59,265
Fee-based sales commission revenue		22,119		—		—		—		22,119
Other fee-based services revenue		1,281		26,550		—		—		27,831
Cost reimbursements		—		15,684		—		—		15,684
Mortgage servicing revenue		1,403		—		—		(1,403)		—
Interest income		19,049		—		623		—		19,672
Total revenue		103,117		42,234		623		(1,403)		144,571
Costs and expenses:
Cost of VOIs sold		3,597		—		—		—		3,597
Net carrying cost of VOI inventory		8,580		—		—		(8,580)		—
Cost of other fee-based services		800		11,481		—		8,580		20,861
Cost reimbursements		—		15,684		—		—		15,684
Selling, general and administrative expenses		59,502		—		20,254		(406)		79,350
Mortgage servicing expense		997		—		—		(997)		—
Interest expense		3,910		—		3,409		—		7,319
Other expense, net		—		—		365		—		365
Total costs and expenses		77,386		27,165		24,028		(1,403)		127,176
(Loss) Income before non-controlling interest ‎  and (benefit) provision for income taxes	$	25,731	$	15,069	$	(23,405)	$	—	$	17,395
Add: Depreciation and amortization		1,405		208
Add: Severance		208		114
Segment Adjusted EBITDA (1)	$	27,344	$	15,391

(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 September 30, 2019 (in thousands):

Revenue:	Sales of ‎VOIs and ‎financing		Resort ‎operations ‎and club ‎management		Corporate ‎and other		Elimination		‎Total
Sales of VOIs	$	66,318	$	—	$	—	$	—	$	66,318
Fee-based sales commission revenue		60,478		—		—		—		60,478
Other fee-based services revenue		4,289		29,455		—		—		33,744
Cost reimbursements		—		17,883		—		—		17,883
Mortgage servicing revenue		1,588		—		—		(1,588)		—
Interest income		20,043		—		2,038		—		22,081
Other income, net		537		—		1,609		—		2,146
Total revenue		153,253		47,338		3,647		(1,588)		202,650
Costs and expenses:
Cost of VOIs sold		3,121		—		—		—		3,121
Net carrying cost of VOI inventory		5,878		—		—		(5,878)		—
Cost of other fee-based services		2,442		14,552		—		5,878		22,872
Cost reimbursements		—		17,883		—		—		17,883
Selling, general and administrative expenses		95,672		—		22,388		(27)		118,033
Mortgage servicing expense		1,561		—		—		(1,561)		—
Interest expense		5,062		—		5,326		—		10,388
Total costs and expenses		113,736		32,435		27,714		(1,588)		172,297
(Loss) Income before non-controlling interest   and (benefit) provision for income taxes	$	39,517	$	14,903	$	(24,067)	$	—	$	30,353
Add: Depreciation and amortization		1,507		321
Add: Severance		594		238
Segment Adjusted EBITDA (1)	$	41,618	$	15,462

(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 nine months ended September 30, 2020 (in thousands):

Revenue:	Sales of ‎VOIs and ‎financing		Resort ‎operations ‎and club ‎management		Corporate ‎and other		Elimination		‎Total
Sales of VOIs	$	113,447	$	—	$	—	$	—	$	113,447
Fee-based sales commission revenue		64,619		—		—		—		64,619
Other fee-based services revenue		5,353		78,205		—		—		83,558
Cost reimbursements		—		46,654		—		—		46,654
Mortgage servicing revenue		4,508		—		—		(4,508)		—
Interest income		58,258		—		3,388		—		61,646
Other income, net		—		—		41		—		41
Total revenue		246,185		124,859		3,429		(4,508)		369,965
Costs and expenses:
Cost of VOIs sold		8,734		—		—		—		8,734
Net carrying cost of VOI inventory		27,407		—		—		(27,407)		—
Cost of other fee-based services		2,989		30,711		—		27,407		61,107
Cost reimbursements		—		46,654		—		—		46,654
Selling, general and administrative expenses		174,969		—		48,603		(1,145)		222,427
Mortgage servicing expense		3,363		—		—		(3,363)		—
Interest expense		12,745		—		11,932		—		24,677
Total costs and expenses		230,207		77,365		60,535		(4,508)		363,599
(Loss) Income before non-controlling interest ‎  and (benefit) provision for income taxes	$	15,978	$	47,494	$	(57,106)	$	—	$	6,366
Add: Depreciation and amortization		4,447		588
Add: Severance		3,977		1,347
Segment Adjusted EBITDA (1)	$	24,402	$	49,429

(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 nine months ended September 30, 2019 (in thousands):

Revenue:	Sales of ‎VOIs and ‎financing		Resort ‎operations ‎and club ‎management		Corporate ‎and other		Elimination		‎Total
Sales of VOIs	$	186,351	$	—	$	—	$	—	$	186,351
Fee-based sales commission revenue		161,033		—		—		—		161,033
Other fee-based services revenue		10,092		83,923		—		—		94,015
Cost reimbursements		—		48,933		—		—		48,933
Mortgage servicing revenue		4,621		—		—		(4,621)		—
Interest income		59,985		—		5,979		—		65,964
Other income, net		537		—		3,691		—		4,228
Total revenue		422,619		132,856		9,670		(4,621)		560,524
Costs and expenses:
Cost of VOIs sold		17,541		—		—		—		17,541
Net carrying cost of VOI inventory		18,853		—		—		(18,853)		—
Cost of other fee-based services		4,832		40,228		—		18,853		63,913
Cost reimbursements		—		48,933		—		—		48,933
Selling, general and administrative expenses		299,028		—		59,145		(507)		357,666
Mortgage servicing expense		4,114		—		—		(4,114)		—
Interest expense		15,391		—		14,564		—		29,955
Total costs and expenses		359,759		89,161		73,709		(4,621)		518,008
Income (loss) before non-controlling interest ‎  and provision (benefit) for income taxes	$	62,860	$	43,695	$	(64,039)	$	—	$	42,516
Add: Depreciation and amortization		4,577		1,050
Add: Severance		594		238
Add: Bass Pro Settlement		39,121		—
Segment Adjusted EBITDA (1)	$	107,152	$	44,983

(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.