Segment Reporting

3 Months Ended

Mar. 31, 2021

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 March 31, 2021 (in thousands):

	Sales of ‎VOIs and ‎financing		Resort ‎operations ‎and club ‎management		Corporate ‎and other		Elimination		‎Total
Revenue:
Sales of VOIs	$	55,931	$	—	$	—	$	—	$	55,931
Fee-based sales commission revenue		25,718		—		—		—		25,718
Other fee-based services revenue		2,274		26,623		—		—		28,897
Cost reimbursements		—		16,608		—		—		16,608
Mortgage servicing revenue		1,311		—		—		(1,311)		—
Interest income		19,128		—		77		—		19,205
Other income, net		—		—		—		—		—
Total revenue		104,362		43,231		77		(1,311)		146,359
Costs and expenses:
Cost of VOIs sold		5,169		—		—		—		5,169
Net carrying cost of VOI inventory		7,780		—		—		(7,780)		—
Cost of other fee-based services		719		8,586		—		7,780		17,085
Cost reimbursements		—		16,608		—		—		16,608
Selling, general and administrative expenses		65,654		—		24,655		(157)		90,152
Mortgage servicing expense		1,154		—		—		(1,154)		—
Interest expense		4,163		—		3,753		—		7,916
Other expense, net		—		—		214		—		214
Total costs and expenses		84,639		25,194		28,622		(1,311)		137,144
Income (loss) before non-controlling
interest and provision for income taxes	$	19,723	$	18,037	$	(28,545)	$	—	$	9,215
Add: Depreciation and amortization		1,405		196
Segment Adjusted EBITDA (1)	$	21,128	$	18,233

(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 March 31, 2020 (in thousands):

Revenue:	Sales of ‎VOIs and ‎financing		Resort ‎operations ‎and club ‎management		Corporate ‎and other		Elimination		‎Total
Sales of VOIs	$	45,128	$	—	$	—	$	—	$	45,128
Fee-based sales commission revenue		41,365		—		—		—		41,365
Other fee-based services revenue		2,723		26,591		—		—		29,314
Cost reimbursements		—		19,120		—		—		19,120
Mortgage servicing revenue		1,595		—		—		(1,595)		—
Interest income		20,148		—		1,718		—		21,866
Other income, net		—		—		133		—		133
Total revenue		110,959		45,711		1,851		(1,595)		156,926
Costs and expenses:
Cost of VOIs sold		4,099		—		—		—		4,099
Net carrying cost of VOI inventory		7,914		—		—		(7,914)		—
Cost of other fee-based services		1,470		12,327		—		7,914		21,711
Cost reimbursements		—		19,120		—		—		19,120
Selling, general and administrative expenses		83,138		—		19,234		(175)		102,197
Mortgage servicing expense		1,420		—		—		(1,420)		—
Interest expense		4,664		—		4,154		—		8,818
Total costs and expenses		102,705		31,447		23,388		(1,595)		155,945
Income (loss) before non-controlling
interest and provision for income taxes	$	8,254	$	14,264	$	(21,537)	$	—	$	981
Add: Depreciation and amortization		1,559		190
Add: Severence		2,563		1,134
Segment Adjusted EBITDA (1)	$	12,376	$	15,588

(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.