0001524358-20-000044 | 10-Q | XBRL Viewer | Marriott Vacations Worldwide Corp

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Cover Page - shares	9 Months Ended
Cover Page - shares	Sep. 30, 2020	Nov. 03, 2020
Document And Entity Information [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2020
Document Transition Report	false
Entity File Number	001-35219
Entity Registrant Name	Marriott Vacations Worldwide Corp
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	45-2598330
Entity Address, Address Line One	6649 Westwood Blvd.
Entity Address, City or Town	Orlando
Entity Address, State or Province	FL
Entity Address, Postal Zip Code	32821
City Area Code	407
Local Phone Number	206-6000
Title of 12(b) Security	Common Stock, $0.01 Par Value
Trading Symbol	VAC
Security Exchange Name	NYSE
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding (in shares)		41,062,766
Document Fiscal Year Focus	2020
Amendment Flag	false
Document Fiscal Period Focus	Q3
Entity Central Index Key	0001524358
Current Fiscal Year End Date	--12-31

INTERIM CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
REVENUES
Revenue from contracts with customers	$ 585	$ 994	$ 1,933	$ 2,934
Financing	64	72	206	209
Total Revenues	649	1,066	2,139	3,143
EXPENSES
Marketing and sales	82	184	322	559
Financing	24	22	85	65
General and administrative	32	57	121	188
Depreciation and amortization	30	33	93	106
Litigation charges	2	3	4	5
Restructuring	20	0	20	0
Royalty fee	23	27	72	79
Impairment charges	2	73	98	99
TOTAL EXPENSES	673	996	2,254	2,839
(Losses) gains and other (expense) income, net	0	(5)	(42)	5
Interest expense	(37)	(31)	(112)	(100)
ILG acquisition-related costs	(11)	(32)	(44)	(94)
Other	0	1	(3)	1
(LOSS) INCOME BEFORE INCOME TAXES AND NONCONTROLLING INTERESTS	(72)	3	(316)	116
Benefit (provision) for income taxes	14	(10)	91	(50)
NET (LOSS) INCOME	(58)	(7)	(225)	66
Net income attributable to noncontrolling interests	(4)	(2)	(13)	(2)
NET (LOSS) INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS	$ (62)	$ (9)	$ (238)	$ 64
(LOSS) EARNINGS PER SHARE ATTRIBUTABLE TO COMMON SHAREHOLDERS
Basic (in usd per share)	$ (1.51)	$ (0.21)	$ (5.76)	$ 1.44
Diluted (in usd per share)	(1.51)	(0.21)	(5.76)	1.43
CASH DIVIDENDS DECLARED PER SHARE (in usd per share)	$ 0	$ 0.45	$ 0.54	$ 1.35
Vacation ownership products
REVENUES
Revenue from contracts with customers	$ 98	$ 341	$ 409	$ 975
EXPENSES
Expenses	27	89	110	258
Management and exchange
REVENUES
Revenue from contracts with customers	176	238	548	708
EXPENSES
Expenses	102	136	317	392
Rental
REVENUES
Revenue from contracts with customers	56	135	209	432
EXPENSES
Expenses	74	92	245	269
Cost reimbursements
REVENUES
Revenue from contracts with customers	255	280	767	819
EXPENSES
Cost reimbursements	$ 255	$ 280	$ 767	$ 819

INTERIM CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Statement of Comprehensive Income [Abstract]
Net (loss) income	$ (58)	$ (7)	$ (225)	$ 66
Other comprehensive income (loss):
Foreign currency translation adjustments	5	(4)	(9)	(5)
Derivative instrument adjustment, net of tax	3	(4)	(22)	(20)
OTHER COMPREHENSIVE GAIN (LOSS), NET OF TAX	8	(8)	(31)	(25)
Net income attributable to noncontrolling interests	(4)	(2)	(13)	(2)
Other comprehensive income attributable to noncontrolling interests	0	0	0	0
COMPREHENSIVE INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS	(4)	(2)	(13)	(2)
COMPREHENSIVE (LOSS) INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS	$ (54)	$ (17)	$ (269)	$ 39

INTERIM CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions	Sep. 30, 2020	Dec. 31, 2019
ASSETS
Cash and cash equivalents	$ 660	$ 287
Restricted cash (including $69 and $64 from VIEs, respectively)	368	414
Accounts receivable, net (including $12 and $13 from VIEs, respectively)	272	323
Vacation ownership notes receivable, net (including $1,650 and $1,750 from VIEs, respectively)	1,913	2,233
Inventory	761	859
Property and equipment, net	809	718
Goodwill	2,817	2,892
Intangibles, net	963	1,027
Other (including $45 and $39 from VIEs, respectively)	448	461
TOTAL ASSETS	9,011	9,214
LIABILITIES AND EQUITY
Accounts payable	143	286
Advance deposits	154	187
Accrued liabilities (including $2 and $2 from VIEs, respectively)	320	397
Deferred revenue	488	433
Payroll and benefits liability	185	186
Deferred compensation liability	117	110
Securitized debt, net (including $1,769 and $1,871 from VIEs, respectively)	1,751	1,871
Debt, net	2,680	2,216
Other	184	197
Deferred taxes	306	300
TOTAL LIABILITIES	6,328	6,183
Commitments and contingencies
Preferred stock — $0.01 par value; 2,000,000 shares authorized; none issued or outstanding	0	0
Common stock — $0.01 par value; 100,000,000 shares authorized; 75,250,627 and 75,020,272 shares issued, respectively	1	1
Treasury stock — at cost; 34,187,868 and 33,438,176 shares, respectively	(1,334)	(1,253)
Additional paid-in capital	3,749	3,738
Accumulated other comprehensive loss	(67)	(36)
Retained earnings	309	569
TOTAL MVW SHAREHOLDERS' EQUITY	2,658	3,019
Noncontrolling interests	25	12
TOTAL EQUITY	2,683	3,031
TOTAL LIABILITIES AND EQUITY	$ 9,011	$ 9,214

INTERIM CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions	Sep. 30, 2020	Dec. 31, 2019
Restricted Cash and Cash Equivalents	$ 368	$ 414
Accounts Receivable, including VIE, after allowance for credit loss	272	323
Financing Receivable, after Allowance for Credit Loss	1,913	2,233
Other Assets	448	461
Accrued Liabilities	320	397
Securitized Debt	$ 1,751	$ 1,871
Preferred stock, par value (in usd per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized (in shares)	2,000,000	2,000,000
Preferred stock, issued (in shares)	0	0
Preferred stock, outstanding (in shares)	0	0
Common stock, par (in usd per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	100,000,000	100,000,000
Common stock, shares issued (in shares)	75,250,627	75,020,272
Treasury stock, shares (in shares)	34,187,868	33,438,176
Variable interest entity
Restricted Cash and Cash Equivalents	$ 69	$ 64
Accounts Receivable, including VIE, after allowance for credit loss	12	13
Financing Receivable, after Allowance for Credit Loss	1,650	1,750
Other Assets	45	39
Accrued Liabilities	2	2
Securitized Debt	$ 1,769	$ 1,871

INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019
OPERATING ACTIVITIES
Net (loss) income	$ (225)	$ 66
Adjustments to reconcile net income to net cash, cash equivalents and restricted cash provided by operating activities:
Depreciation and amortization of intangibles	93	106
Amortization of debt discount and issuance costs	16	14
Vacation ownership notes receivable reserve	97	81
Share-based compensation	23	25
Impairment charges	98	99
Deferred income taxes	1	24
Net change in assets and liabilities:
Accounts receivable	24	16
Vacation ownership notes receivable originations	(265)	(681)
Vacation ownership notes receivable collections	487	462
Inventory	(4)	10
Purchase of vacation ownership units for future transfer to inventory	(61)	0
Other assets	57	11
Accounts payable, advance deposits and accrued liabilities	(231)	(122)
Deferred revenue	57	41
Payroll and benefit liabilities	0	(21)
Deferred compensation liability	8	13
Other liabilities	(11)	26
Other, net	(6)	10
Net cash, cash equivalents and restricted cash provided by operating activities	158	180
INVESTING ACTIVITIES
Capital expenditures for property and equipment (excluding inventory)	(36)	(32)
Proceeds from collection of notes receivable	0	38
Purchase of company owned life insurance	(3)	(5)
Dispositions, net	15	0
Net cash, cash equivalents and restricted cash (used in) provided by investing activities	(24)	1
FINANCING ACTIVITIES
Borrowings from securitization transactions	690	631
Repayment of debt related to securitization transactions	(793)	(673)
Proceeds from debt	1,166	495
Repayments of debt	(703)	(308)
Finance lease payment	(10)	(11)
Debt issuance costs	(14)	(11)
Repurchase of common stock	(82)	(342)
Payment of dividends	(45)	(61)
Payment of withholding taxes on vesting of restricted stock units	(14)	(11)
Other, net	0	1
Net cash, cash equivalents and restricted cash provided by (used in) financing activities	195	(290)
Effect of changes in exchange rates on cash, cash equivalents and restricted cash	(2)	0
Change in cash, cash equivalents and restricted cash	327	(109)
Cash, cash equivalents and restricted cash, beginning of period	701	614
Cash, cash equivalents and restricted cash, end of period	1,028	505
SUPPLEMENTAL DISCLOSURES
Non-cash transfer from property and equipment to inventory	0	71
Non-cash transfer from inventory to property and equipment	90	0
Non-cash issuance of treasury stock for employee stock purchase plan	1	2
Dividends payable	0	19
Interest paid, net of amounts capitalized	140	135
Income taxes paid, net of refunds	$ (48)	$ 47

INTERIM CONSOLIDATED STATEMENTS OF SHAREHOLDERS EQUITY - USD ($) $ in Millions	Total	Previously Reported	Revision of Prior Period, Accounting Standards Update, Adjustment	Common Stock	Common Stock Previously Reported	Treasury Stock	Treasury Stock Previously Reported	Additional Paid-In Capital	Additional Paid-In Capital Previously Reported	Accumulated Other Comprehensive Loss	Accumulated Other Comprehensive Loss Previously Reported	Retained Earnings	Retained Earnings Previously Reported	Retained Earnings Revision of Prior Period, Accounting Standards Update, Adjustment	Total MVW Shareholders' Equity	Total MVW Shareholders' Equity Previously Reported	Total MVW Shareholders' Equity Revision of Prior Period, Accounting Standards Update, Adjustment	Noncontrolling Interests	Noncontrolling Interests Previously Reported
Beginning balance (in shares) at Dec. 31, 2018				57,600,000
Beginning balance at Dec. 31, 2018	$ 3,458	$ 3,466	$ (8)	$ 1	$ 1	$ (790)	$ (790)	$ 3,721	$ 3,721	$ 6	$ 6	$ 515	$ 523	$ (8)	$ 3,453	$ 3,461	$ (8)	$ 5	$ 5
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net (loss) income	24											24			24
Foreign currency translation adjustments	1									1					1
Derivative instrument adjustment	(3)									(3)					(3)
Amounts related to share-based compensation (in shares)				200,000
Share-based compensation plans	(4)							(4)							(4)
Repurchase of common stock (in shares)				0
Repurchase of common stock	(106)					(106)									(106)
Dividends	(20)											(20)			(20)
Employee stock plan issuance	1					1		0							1
Ending balance (in shares) at Mar. 31, 2019				57,800,000
Ending balance at Mar. 31, 2019	3,351			$ 1		(895)		3,717		4		519			3,346			5
Beginning balance (in shares) at Dec. 31, 2018				57,600,000
Beginning balance at Dec. 31, 2018	3,458	$ 3,466	$ (8)	$ 1	$ 1	(790)	$ (790)	3,721	$ 3,721	6	$ 6	515	$ 523	$ (8)	3,453	$ 3,461	$ (8)	5	$ 5
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net (loss) income	66
Foreign currency translation adjustments	(5)
Derivative instrument adjustment	(20)
Ending balance (in shares) at Sep. 30, 2019				57,900,000
Ending balance at Sep. 30, 2019	3,122			$ 1		(1,130)		3,740		(19)		520			3,112			10
Beginning balance (in shares) at Mar. 31, 2019				57,800,000
Beginning balance at Mar. 31, 2019	3,351			$ 1		(895)		3,717		4		519			3,346			5
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net (loss) income	49											49			49
ILG Acquisition purchase accounting adjustment																		1
ILG Acquisition purchase accounting adjustment	1
Foreign currency translation adjustments	(2)									(2)					(2)
Derivative instrument adjustment	(13)									(13)					(13)
Share-based compensation plans	13							13							13
Repurchase of common stock	(109)					(109)									(109)
Dividends	(20)											(20)			(20)
Employee stock plan issuance (in shares)				100,000
Employee stock plan issuance	0					0		0							0
Ending balance (in shares) at Jun. 30, 2019				57,900,000
Ending balance at Jun. 30, 2019	3,270			$ 1		(1,004)		3,730		(11)		548			3,264			6
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net (loss) income	(7)											(9)			(9)			2
ILG Acquisition purchase accounting adjustment																		2
ILG Acquisition purchase accounting adjustment	2
Foreign currency translation adjustments	(4)									(4)					(4)
Derivative instrument adjustment	(4)									(4)					(4)
Share-based compensation plans	10							10							10
Repurchase of common stock	(127)					(127)									(127)
Dividends	(19)											(19)			(19)
Employee stock plan issuance	1					1		0							1
Ending balance (in shares) at Sep. 30, 2019				57,900,000
Ending balance at Sep. 30, 2019	$ 3,122			$ 1		(1,130)		3,740		(19)		520			3,112			10
Beginning balance (in shares) at Dec. 31, 2019	75,020,272			75,000,000.0
Beginning balance at Dec. 31, 2019	$ 3,031			$ 1		(1,253)		3,738		(36)		569			3,019			12
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net (loss) income	(105)											(106)			(106)			1
Foreign currency translation adjustments	(17)									(17)					(17)
Derivative instrument adjustment	(24)									(24)					(24)
Amounts related to share-based compensation (in shares)				200,000
Share-based compensation plans	(9)							(9)							(9)
Repurchase of common stock (in shares)				0
Repurchase of common stock	(82)					(82)									(82)
Dividends	(22)											(22)			(22)
Ending balance (in shares) at Mar. 31, 2020				75,200,000
Ending balance at Mar. 31, 2020	$ 2,772			$ 1		(1,335)		3,729		(77)		441			2,759			13
Beginning balance (in shares) at Dec. 31, 2019	75,020,272			75,000,000.0
Beginning balance at Dec. 31, 2019	$ 3,031			$ 1		$ (1,253)		3,738		(36)		569			3,019			12
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net (loss) income	(225)
Foreign currency translation adjustments	(9)
Derivative instrument adjustment	$ (22)
Repurchase of common stock (in shares)						769,935
Repurchase of common stock						$ (82)
Ending balance (in shares) at Sep. 30, 2020	75,250,627			75,300,000
Ending balance at Sep. 30, 2020	$ 2,683			$ 1		(1,334)		3,749		(67)		309			2,658			25
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Impact of adoption of ASU 2016-02	us-gaap:AccountingStandardsUpdate201602Member
Beginning balance (in shares) at Mar. 31, 2020				75,200,000
Beginning balance at Mar. 31, 2020	$ 2,772			$ 1		(1,335)		3,729		(77)		441			2,759			13
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net (loss) income	(62)											(70)			(70)			8
Foreign currency translation adjustments	3									3					3
Derivative instrument adjustment	(1)									(1)					(1)
Share-based compensation plans	7							7							7
Employee stock plan issuance	1					1		0							1
Ending balance (in shares) at Jun. 30, 2020				75,200,000
Ending balance at Jun. 30, 2020	2,720			$ 1		(1,334)		3,736		(75)		371			2,699			21
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net (loss) income	(58)											(62)			(62)			4
Foreign currency translation adjustments	5									5					5
Derivative instrument adjustment	3									3					3
Amounts related to share-based compensation (in shares)				100,000
Share-based compensation plans	$ 13							13							13
Ending balance (in shares) at Sep. 30, 2020	75,250,627			75,300,000
Ending balance at Sep. 30, 2020	$ 2,683			$ 1		$ (1,334)		$ 3,749		$ (67)		$ 309			$ 2,658			$ 25

BASIS OF PRESENTATION

9 Months Ended

Sep. 30, 2020

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Basis of presentation


1.			BASIS OF PRESENTATION

The Interim Consolidated Financial Statements present the results of operations, financial position and cash flows of Marriott Vacations Worldwide Corporation (referred to in this report as (i) “we,” “us,” “Marriott Vacations Worldwide,” “MVW” or “the Company,” which includes our consolidated subsidiaries except where the context of the reference is to a single corporate entity, or (ii) “MVWC,” which shall refer only to Marriott Vacations Worldwide Corporation, without its consolidated subsidiaries). In order to make this report easier to read, we refer throughout to (i) our Interim Consolidated Financial Statements as our “Financial Statements,” (ii) our Interim Consolidated Statements of Income as our “Income Statements,” (iii) our Interim Consolidated Balance Sheets as our “Balance Sheets,” and (iv) our Interim Consolidated Statements of Cash Flows as our “Cash Flows.” In addition, references throughout to numbered “Footnotes” refer to the numbered Notes in these Notes to Interim Consolidated Financial Statements, unless otherwise noted. Capitalized terms used and not specifically defined herein have the same meaning given those terms in our Annual Report on Form 10-K for the fiscal year ended December 31, 2019 (the “2019 Annual Report”). We use certain other terms that are defined within these Financial Statements.

The Financial Statements presented herein and discussed below include 100 percent of the assets, liabilities, revenues, expenses and cash flows of Marriott Vacations Worldwide, all entities in which Marriott Vacations Worldwide has a controlling voting interest (“subsidiaries”), and those variable interest entities (“VIEs”) for which Marriott Vacations Worldwide is the primary beneficiary in accordance with consolidation accounting guidance. References in these Financial Statements to net (loss) income attributable to common shareholders and MVW shareholders’ equity do not include noncontrolling interests, which represent the outside ownership of our consolidated non-wholly owned entities and are reported separately. Intercompany accounts and transactions between consolidated companies have been eliminated in consolidation.

These Financial Statements reflect our financial position, results of operations and cash flows as prepared in conformity with United States Generally Accepted Accounting Principles (“GAAP”). The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect amounts reported in the financial statements and accompanying notes. Such estimates include, but are not limited to, revenue recognition, cost of vacation ownership products, inventory valuation, goodwill and intangibles valuation, property and equipment valuation, accounting for acquired vacation ownership notes receivable, vacation ownership notes receivable reserves, income taxes and loss contingencies. The uncertainty created by the COVID-19 pandemic (defined below), and efforts to mitigate it, has made it more challenging to make these estimates. Accordingly, ultimate results could differ materially from our estimates.

In our opinion, our Financial Statements reflect all normal and recurring adjustments necessary to present fairly our financial position, the results of our operations and cash flows for the periods presented. Interim results may not be indicative of fiscal year performance because of, among other reasons, the impact of the COVID-19 pandemic (defined below) and seasonal and short-term variations. These Financial Statements have not been audited. We have condensed or omitted certain information and footnote disclosures normally included in financial statements presented in accordance with GAAP. Although we believe our footnote disclosures are adequate to make the information presented not misleading, the Financial Statements in this report should be read in conjunction with the consolidated financial statements and notes thereto in our 2019 Annual Report.

The accompanying Financial Statements also reflect our adoption of new accounting standards. See Footnote 2 “Significant Accounting Policies and Recent Accounting Standards” for additional information.

COVID-19 Pandemic Update

In March 2020, the World Health Organization declared the coronavirus (COVID-19) a global pandemic (the “COVID-19 pandemic”). National, federal, state, and local governments have since implemented various travel restrictions, border closings, restrictions on public gatherings, mandatory quarantines, shelter-in-place mandates and limitations on business operations. The speed with which the effects of the COVID-19 pandemic have changed the global economic landscape, outlook and, in particular, the travel and hospitality industries, has been swift and unexpected.

The results of operations during the first three quarters of 2020 include impacts related to the COVID-19 pandemic, which have been significantly adverse for our business, and the overall travel and hospitality industry in general. We began to see an adverse impact on occupancy in our Vacation Ownership business in mid-March 2020, which quickly accelerated later that month and continued into May 2020. While many of our resorts remained open for owner occupancy throughout April and May, most owners chose to postpone their arrival until a later date, which resulted in substantially lower than normal resort occupancy in the second and third quarters of 2020.

In response to quickly evolving travel restrictions and restrictions on business operations, we closed all of our sales centers in March 2020, and beginning March 25, 2020, we closed our resorts for rental guests with stays at our branded North America vacation ownership resorts. Further, due to low occupancy rates and based on various governmental mandates and advisories, we closed several of our resorts and reduced operations and amenities at our resorts that remained open. The closure of our sales centers and low occupancy levels led to a material decrease in contract sales and rental revenues from our vacation ownership business beginning in the second quarter.

Based on these events and the uncertainty they created, we immediately began to focus on our liquidity, including quickly and substantially enhancing our cash holdings. In late-March, we drew down the remainder of our $600 million Revolving Corporate Credit Facility (as defined in Footnote 13 “Debt”). We issued senior secured debt in May, which we used to repay amounts outstanding on our Revolving Corporate Credit Facility. As of September 30, 2020, we had $660 million in cash and cash equivalents on hand, and $597 million of availability on our Revolving Corporate Credit Facility.

In addition to accessing the capital markets, we believe we have made significant progress in bolstering our liquidity through cost reduction. These efforts include reducing capital expenditures; suspending hiring and salary increases; reducing executive and other associate salaries; implementing furloughs and reduced work weeks for most of our associates; and modifying vendor and supplier payment terms where possible.

In late-May, as many government restrictions were beginning to be relaxed, owner occupancy at our resorts began to grow and we began reopening resorts to rental guests. As of September 30, 2020, over 95 percent of our vacation ownership resorts were open to owners and rental guests. We reopened certain sales centers in June and continued to open additional sales centers in July. As of September 30, 2020, over 80 percent of our sales centers had re-opened. However, extended or further closures of our sales centers may be required if demand declines again or if we are again impacted by government regulations requiring resort closures or restricting travel.

In our Exchange & Third-Party Management business, the closures of certain affiliated resorts and managed properties had a significant adverse impact on our business in the second quarter of 2020, with a large number of resorts closed or not taking reservations at the beginning of the second quarter, but by the end of September, over 90 percent of those affiliated resorts and managed properties had reopened. The closure of affiliated resorts and managed properties led to a decrease in management and exchange revenues. Our Aqua-Aston business was also negatively impacted by travel restrictions that significantly impacted the majority of the properties in Hawaii. Further resort and property closures may be required if demand declines again or if we are again impacted by government regulations requiring resort closures or restricting travel. The COVID-19 pandemic continues to depress the demand for vacation rentals due to “stay-at-home” recommendations or requirements, quarantines, and the reluctance of consumers to travel.

During the second and third quarters of 2020, we continued the temporary adjustments implemented in the first quarter of 2020 to cancellation policies for near-term travel for customers who were unable or unwilling to travel due to the COVID-19 pandemic. We continue to monitor this unprecedented and rapidly evolving situation and are unable to predict its duration or severity.

As a result of the COVID-19 pandemic, in September 2020, a workforce reduction plan was approved, which is expected to impact approximately 3,000 associates. We expect that we will incur approximately $25 to $30 million in restructuring and related charges primarily related to employee severance and benefit costs. In connection with this plan,we have recorded the following on our Income Statement for both the three and nine months ended September 30, 2020:


($ in millions)	Vacation Ownership		Exchange & Third-Party Management		Corporate and Other		Total
Cost reimbursement revenues	$	5	$	2	$	—	$	7
Cost reimbursement expenses	$	(5)	$	(2)	$	—	$	(7)
Restructuring	$	(11)	$	(3)	$	(6)	$	(20)

Reclassifications

We have reclassified certain prior year amounts to conform to our current year presentation.

SIGNIFICANT ACCOUNTING POLICIES AND RECENT ACCOUNTING STANDARDS

9 Months Ended

Sep. 30, 2020

Accounting Policies [Abstract]

Significant accounting policies and recent accounting standards


2.			SIGNIFICANT ACCOUNTING POLICIES AND RECENT ACCOUNTING STANDARDS

New Accounting Standards

Accounting Standards Update 2016-13 – “Financial Instruments – Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments” (“ASU 2016-13”)

In the first quarter of 2020, we adopted ASU 2016-13, which replaces the incurred loss impairment methodology in current GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. The update is intended to provide financial statement users with more decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date. The current expected credit loss model provides that an initial estimate of expected credit losses over the contractual life of the financial instrument is reflected in the allowance for credit losses and any changes to that estimate are recognized as adjustments to the allowance. ASU 2016-13 did not have a material impact on our financial statements or disclosures upon adoption.

Vacation Ownership Notes Receivable

Our originated vacation ownership notes receivable are recorded net of a reserve that is calculated in accordance with ASC 606, so there was no material impact upon adoption of ASU 2016-13. Our acquired vacation ownership notes receivable have historically been accounted for using the expected cash flow method of recognizing discount accretion based on the expected cash flows of those instruments. Upon adoption of ASU 2016-13, we established a reserve for credit losses and a corresponding increase in the book value of the acquired vacation ownership notes receivable, resulting in no impact to the recorded balance. In addition, we recorded a noncredit discount of $2 million, which represents the difference between the amortized cost basis and the par value of our acquired vacation ownership notes receivable. The noncredit discount will be amortized to interest expense over the contractual life of the acquired vacation ownership notes receivable and is recorded as Financing expenses on our Income Statements. For additional information on our vacation ownership notes receivable, including information on the related reserves, see Footnote 6 “Vacation Ownership Notes Receivable.”

Accounts Receivable

Our Accounts receivable include amounts due from customers, principally credit card receivables, and amounts due from resort developers, members and managed properties. These amounts are typically due within one year and are presented net of an allowance for credit losses. Subsequent to our adoption of ASU 2016-13, we estimate expected credit losses for our accounts receivable by considering a number of factors, including previous loss history and the condition of the general economy, as well as any other significant events that may impact the collectibility of the specific accounts receivable. Accounts receivable also includes interest receivable on vacation ownership notes receivable. Write-offs of interest receivable are recorded as a reversal of previously recorded interest income. There was no material impact to our financial statements or disclosures as a result of our adoption of ASU 2016-13 for accounts receivable, and no material change in our allowance for credit losses during the first nine months of 2020.

Securities and Exchange Commission (“SEC”) Final Rule Release No. 33-10762, Financial Disclosures About Guarantors and Issuers of Guaranteed Securities and Affiliates Whose Securities Collateralize a Registrant’s Securities (“SEC Final Rule”)

In March 2020, the SEC issued the SEC Final Rule which simplifies the disclosure requirements related to registered securities under Rule 3-10 of Regulation S-X. The SEC Final Rule replaces the requirement for a parent entity to provide detailed disclosures regarding guarantors of registered debt offerings within the footnotes to the consolidated financial statements. Under the SEC Final Rule, a parent entity is required to present summarized financial information of the issuers’ and guarantors’ balance sheets and statements of operations on a consolidated basis. It also requires qualitative disclosures with respect to information about guarantors and the terms and conditions of guarantees. These disclosures may be provided outside the footnotes to a company’s consolidated financial statements. We early adopted the reporting requirements of the SEC Final Rule in the first quarter of 2020 and elected to provide these disclosures within Item 2: Management’s Discussion and Analysis of Financial Condition and Results of Operations of our Quarterly Report on Form 10-Q.

Future Adoption of Accounting Standards

Accounting Standards Update 2019-12 – “Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes” (“ASU 2019-12”)

In December 2019, the FASB issued ASU 2019-12, which amends and simplifies existing guidance in an effort to reduce the complexity of accounting for income taxes while maintaining or enhancing the helpfulness of information provided to financial statement users. This update is effective for fiscal years beginning after December 15, 2020, including interim

periods therein, with early adoption permitted. We expect to adopt ASU 2019-12 commencing in fiscal year 2021 and continue to evaluate the impact that adoption of this update will have on our financial statements and disclosures.

Accounting Standards Update 2020-04 – “Reference Rate Reform (Topic 848), Facilitation of the Effects of Reference Rate Reform on Financial Reporting” (“ASU 2020-04”)

In March 2020, the FASB issued ASU 2020-04, as amended, which provides optional expedients and exceptions to existing guidance on contract modifications and hedge accounting in an effort to ease the financial reporting burdens related to the expected market transition from the LIBOR and other interbank offered rates to alternative reference rates. This update can be adopted no later than December 1, 2022, with early adoption permitted. We expect to adopt ASU 2020-04 in fiscal year 2022 and continue to evaluate the impact that adoption of this update will have on our financial statements and disclosures.

Accounting Standards Update 2020-06 – “Debt — Debt With Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging — Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity” (“ASU 2020-06”)

In August 2020, the FASB issued ASU 2020-06, which amends and simplifies existing guidance in an effort to reduce the complexity of accounting for convertible instruments and to provide financial statement users with more meaningful information. ASU 2020-06 is effective for fiscal years beginning after December 15, 2021, including interim periods therein, with early adoption permitted. This update may be applied retrospectively or on a modified retrospective basis with the cumulative effect recognized as an adjustment to the opening balance of retained earnings on the date of adoption. Additionally, this update provides for a one-time irrevocable election by entities to apply the fair value option in accordance with ASC 825-10 for any liability-classified convertible securities, with the difference between the carrying amount and the fair value recorded as a cumulative-effect adjustment to opening retained earnings as of the beginning of the period of adoption. We are evaluating the impact that ASU 2020-06, including the timing of implementation, will have on our financial statements and disclosures.

ACQUISITIONS AND DISPOSITIONS

9 Months Ended

Sep. 30, 2020

Business Combinations [Abstract]

Acquisitions and dispositions


3.			ACQUISITIONS AND DISPOSITIONS

Acquisitions

New York, New York

During the first quarter of 2020, we acquired 57 completed vacation ownership units, as well as office and ancillary space, located at our Marriott Vacation Club Pulse, New York City property for $89 million, of which $22 million was a prepayment for future tranches of completed vacation ownership units and $20 million was paid in December 2019. We accounted for the transaction as an asset acquisition with the purchase price allocated to Other assets ($22 million) and Property and equipment ($67 million). See Footnote 11 “Contingencies and Commitments” for information on our remaining commitment to purchase future inventory and Footnote 16 “Variable Interest Entities” for additional information on this transaction and our activities relating to the VIE involved in this transaction.

San Francisco, California

During the first quarter of 2020, we acquired 34 completed vacation ownership units located at our Marriott Vacation Club Pulse, San Francisco property for $26 million, of which $5 million was a prepayment for future tranches of completed vacation ownership units. We accounted for the transaction as an asset acquisition with the purchase price allocated to Inventory ($18 million), Other assets ($5 million), and Property and equipment ($3 million). See Footnote 11 “Contingencies and Commitments” for information on our remaining commitment to purchase future inventory and Footnote 16 “Variable Interest Entities” for additional information on this transaction and our activities relating to the VIE involved in this transaction.

During the third quarter of 2019, we acquired 78 completed vacation ownership units and a sales gallery located at our Marriott Vacation Club Pulse, San Francisco property for $58 million. We accounted for the transaction as an asset acquisition with the purchase price allocated to Inventory ($48 million) and Property & equipment ($10 million).

Dispositions

During the third quarter of 2020, we recorded a loss of $5 million in the (Losses) gains and other (expense) income, net line on our Income Statement for the three and nine months ended September 30, 2020 relating to the redemption of our interest in a joint venture in our Exchange & Third-Party Management segment which was consolidated under the voting interest model. We received nominal cash proceeds and a note receivable which we measured at a fair value of $1 million using Level 3 inputs.

Additionally, during the third quarter of 2020, we disposed of excess Vacation Ownership segment land parcels in Orlando, Florida and Steamboat Springs, Colorado for combined proceeds of $15 million, as part of our strategic decision to reduce holdings in markets where we have excess supply. We recorded a combined net gain of $6 million in the (Losses) gains and other (expense) income, net line on our Income Statement for the three and nine months ended September 30, 2020 relating to these transactions.

REVENUE AND RECEIVABLES

9 Months Ended

Sep. 30, 2020

Revenue from Contract with Customer [Abstract]

Revenue and receivables


4.			REVENUE AND RECEIVABLES

Sources of Revenue by Segment

The following tables detail the sources of revenue by segment for the time periods presented.


	Three Months Ended September 30, 2020
($ in millions)	Vacation Ownership		Exchange & Third-Party Management		Corporate and Other		Total
Sale of vacation ownership products	$	98	$	—	$	—	$	98

Ancillary revenues	17		—		—		17
Management fee revenues	37		4		(5)		36
Exchange and other services revenues	28		45		50		123
Management and exchange	82		49		45		176

Rental	46		10		—		56

Cost reimbursements	281		12		(38)		255
Revenue from contracts with customers	507		71		7		585

Financing	64		—		—		64
Total Revenues	$	571	$	71	$	7	$	649


	Three Months Ended September 30, 2019
($ in millions)	Vacation Ownership		Exchange & Third-Party Management		Corporate and Other		Total
Sale of vacation ownership products	$	341	$	—	$	—	$	341

Ancillary revenues	57		1		—		58
Management fee revenues	35		12		(3)		44
Exchange and other services revenues	28		61		47		136
Management and exchange	120		74		44		238

Rental	122		14		(1)		135

Cost reimbursements	286		22		(28)		280
Revenue from contracts with customers	869		110		15		994

Financing	71		1		—		72
Total Revenues	$	940	$	111	$	15	$	1,066


	Nine Months Ended September 30, 2020
($ in millions)	Vacation Ownership		Exchange & Third-Party Management		Corporate and Other		Total
Sale of vacation ownership products	$	409	$	—	$	—	$	409

Ancillary revenues	69		1		—		70
Management fee revenues	113		14		(14)		113
Exchange and other services revenues	85		145		135		365
Management and exchange	267		160		121		548

Rental	180		29		—		209

Cost reimbursements	824		45		(102)		767
Revenue from contracts with customers	1,680		234		19		1,933

Financing	204		2		—		206
Total Revenues	$	1,884	$	236	$	19	$	2,139


	Nine Months Ended September 30, 2019
($ in millions)	Vacation Ownership		Exchange & Third-Party Management		Corporate and Other		Total
Sale of vacation ownership products	$	975	$	—	$	—	$	975

Ancillary revenues	171		3		—		174
Management fee revenues	108		37		(10)		135
Exchange and other services revenues	90		192		117		399
Management and exchange	369		232		107		708

Rental	384		48		—		432

Cost reimbursements	835		68		(84)		819
Revenue from contracts with customers	2,563		348		23		2,934

Financing	206		3		—		209
Total Revenues	$	2,769	$	351	$	23	$	3,143

Timing of Revenue from Contracts with Customers by Segment

The following tables detail the timing of revenue from contracts with customers by segment for the time periods presented.


	Three Months Ended September 30, 2020
($ in millions)	Vacation Ownership		Exchange & Third-Party Management		Corporate and Other		Total
Services transferred over time	$	394	$	35	$	7	$	436
Goods or services transferred at a point in time	113		36		—		149
Revenue from contracts with customers	$	507	$	71	$	7	$	585


	Three Months Ended September 30, 2019
($ in millions)	Vacation Ownership		Exchange & Third-Party Management		Corporate and Other		Total
Services transferred over time	$	469	$	54	$	15	$	538
Goods or services transferred at a point in time	400		56		—		456
Revenue from contracts with customers	$	869	$	110	$	15	$	994


	Nine Months Ended September 30, 2020
($ in millions)	Vacation Ownership		Exchange & Third-Party Management		Corporate and Other		Total
Services transferred over time	$	1,197	$	119	$	19	$	1,335
Goods or services transferred at a point in time	483		115		—		598
Revenue from contracts with customers	$	1,680	$	234	$	19	$	1,933


	Nine Months Ended September 30, 2019
($ in millions)	Vacation Ownership		Exchange & Third-Party Management		Corporate and Other		Total
Services transferred over time	$	1,405	$	165	$	23	$	1,593
Goods or services transferred at a point in time	1,158		183		—		1,341
Revenue from contracts with customers	$	2,563	$	348	$	23	$	2,934

Sale of Vacation Ownership Products

Revenues were reduced during the third quarter and first three quarters of 2020 by $3 million and $58 million, respectively, due to changes in our estimates of variable consideration for performance obligations that were satisfied in prior periods. See Footnote 6 “Vacation Ownership Notes Receivable” for information on increases to our vacation ownership notes receivable reserve attributable to the COVID-19 pandemic.

Receivables from Contracts with Customers, Contract Assets & Contract Liabilities

The following table shows the composition of our receivables from contracts with customers and contract liabilities. We had no contract assets at either September 30, 2020 or December 31, 2019.


($ in millions)	At September 30, 2020		At December 31, 2019
Receivables from Contracts with Customers
Accounts receivable	$	147	$	166
Vacation ownership notes receivable, net	1,913		2,233
	$	2,060	$	2,399
Contract Liabilities
Advance deposits	$	154	$	187
Deferred revenue	488		433
	$	642	$	620

Revenue recognized during the third quarter and first three quarters of 2020 that was included in our contract liabilities balance at December 31, 2019 was $69 million and $231 million, respectively.

Remaining Performance Obligations

Our remaining performance obligations represent the expected transaction price allocated to our contracts that we expect to recognize as revenue in future periods when we perform under the contracts. At September 30, 2020, approximately 80 percent of this amount is expected to be recognized as revenue over the next two years.

Accounts Receivable

Accounts receivable is comprised of amounts due from customers, primarily property owners’ associations, resort developers and members, credit card receivables, interest receivables, amounts due from taxing authorities, indemnification assets and other miscellaneous receivables. The following table shows the composition of our accounts receivable balances:


($ in millions)	At September 30, 2020		At December 31, 2019
Receivables from contracts with customers	$	147	$	166
Interest receivable	13		16
Tax receivable	76		82
Indemnification asset	15		38
Other	21		21
	$	272	$	323

- Definition

The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-URI http://asc.fasb.org/topic&trid=49130388

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 10
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130551-203045

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 13
-Subparagraph (b)(2)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130556-203045

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 9
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130550-203045

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (e)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (d)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 15
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130558-203045

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

+ Details

INCOME TAXES

9 Months Ended

Sep. 30, 2020

Income Tax Disclosure [Abstract]

Income taxes


5.			INCOME TAXES

Our provision for income taxes is calculated using an estimated annual effective tax rate, based upon expected annual income, less losses in certain jurisdictions, permanent items, statutory rates and planned tax strategies in the various jurisdictions in which we operate. However, discrete items related to prior year tax items are treated separately.

Our interim effective tax rate was 19.8 percent and 404.4 percent for the three months ended September 30, 2020 and September 30, 2019, respectively. The change in the effective tax rate is predominately attributable to a pre-tax loss and benefits from the CARES Act (as defined below).

Our interim effective tax rate was 28.7 percent and 43.2 percent for the nine months ended September 30, 2020 and September 30, 2019, respectively. The change in the effective tax rate is predominately attributable to a pre-tax loss, a release in uncertain tax benefits, and benefits from the CARES Act (as defined below).

We have considered the income tax accounting and disclosure implications of the relief provided by the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) enacted on March 27, 2020. As of September 30, 2020, we have evaluated the income tax provisions of the CARES Act and determined there to be a 4.4 percent benefit to the September 30, 2020 tax rate and a 3.9 percent benefit to the computation of the estimated effective tax rate for the year ended December 31, 2020. We will continue to evaluate the income tax provisions of the CARES Act and monitor the developments in the jurisdictions where we have significant operations for tax law changes that could have additional income tax accounting and disclosure implications.

Unrecognized Tax Benefits

The following table summarizes the activity related to our unrecognized tax benefits (excluding interest and penalties) during the nine months ended September 30, 2020.


($ in millions)	Unrecognized Tax Benefits
Balance at December 31, 2019	$	21
Increases related to tax positions taken during the current period	1
Decreases related to settlements with taxing authorities	(14)
Decreases related to tax positions taken during a prior period	(1)
Balance at September 30, 2020	$	7

The total unrecognized tax benefits related to uncertain income tax positions, which would affect the effective tax rate if recognized, was $7 million at September 30, 2020 and $21 million at December 31, 2019. The total amount of gross interest and penalties accrued was $18 million at September 30, 2020 and $41 million at December 31, 2019.

We anticipate $4 million of unrecognized tax benefits, including interest and penalties, to be indemnified pursuant to a Tax Matters Agreement dated May 11, 2016 by and among Starwood Hotels & Resorts Worldwide, Inc., Vistana Signature Experiences, Inc., and Interval Leisure Group, Inc., and consequently have recorded a corresponding indemnification asset. The unrecognized tax benefits, including accrued interest and penalties, are included in other liabilities on our Balance Sheet.

Our income tax returns are subject to examination by relevant tax authorities. Certain of our returns are being audited in various jurisdictions for tax years 2013 through 2018. The amount of the unrecognized tax benefit may increase or decrease within the next twelve months as a result of audits or audit settlements.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References + Details

VACATION OWNERSHIP NOTES RECEIVABLE

9 Months Ended

Sep. 30, 2020

Receivables [Abstract]

Vacation ownership notes receivable


6.			VACATION OWNERSHIP NOTES RECEIVABLE

The following table shows the composition of our vacation ownership notes receivable balances, net of reserves.


	September 30, 2020						December 31, 2019
($ in millions)	Originated		Acquired		Total		Originated		Acquired		Total
Securitized	$	1,348	$	302	$	1,650	$	1,378	$	372	$	1,750
Non-securitized
Eligible for securitization(1)	52		2		54		155		10		165
Not eligible for securitization(1)	176		33		209		261		57		318
Subtotal	228		35		263		416		67		483
	$	1,576	$	337	$	1,913	$	1,794	$	439	$	2,233

_________________________

(1)Refer to Footnote 7 “Financial Instruments” for a discussion of eligibility of our vacation ownership notes receivable for securitization.

We reflect interest income associated with vacation ownership notes receivable in our Income Statements in the Financing revenues caption. The following table summarizes interest income associated with vacation ownership notes receivable.


	Three Months Ended				Nine Months Ended
($ in millions)	September 30, 2020		September 30, 2019		September 30, 2020		September 30, 2019
Interest income associated with vacation ownership notes receivable — securitized	$	59	$	58	$	186	$	176
Interest income associated with vacation ownership notes receivable — non-securitized	4		11		13		25
Total interest income associated with vacation ownership notes receivable	$	63	$	69	$	199	$	201

COVID-19 Impact on Vacation Ownership Notes Receivable Reserves

We evaluated our vacation ownership notes receivable reserves in light of the COVID-19 pandemic, using the performance of our vacation ownership notes receivable in response to the 2008/2009 financial crisis as a reference point. Using this information, we increased our estimated default rates by approximately 50 percent for a 15-month period to align with the period over which we experienced increased defaults during the previous recessionary period. As a result, we increased our vacation ownership notes receivable reserves by $52 million in the first quarter of 2020. This was reflected as a $42 million reduction to Sale of vacation ownership products, a $10 million increase in Financing expenses, and a $15 million reduction in Cost of vacation ownership products on our Income Statement for the first three quarters of 2020.

Acquired Vacation Ownership Notes Receivable

As part of the ILG Acquisition, we acquired existing portfolios of vacation ownership notes receivable. At acquisition, we recorded these vacation ownership notes receivable at fair value. Upon adoption of ASU 2016-13 on January 1, 2020, we established a reserve for credit losses and a corresponding increase in the book value of the acquired vacation ownership notes receivable, resulting in no impact to the recorded balance. In addition, we established a noncredit discount of $2 million, which represents the difference between the amortized cost basis and the par value of our acquired vacation ownership notes receivable. The noncredit discount will be amortized to interest expense over the contractual life of the acquired vacation ownership notes receivable and is recorded as Financing expenses on our Income Statements.

The following table summarizes the activity related to our acquired vacation ownership notes receivable reserve.


	Acquired Vacation Ownership Notes Receivable Reserve
($ in millions)	Non-Securitized		Securitized		Total
Balance at December 31, 2019, as reported	$	—	$	—	$	—
Impact of adoption of ASU 2016-13	29		26		55
Opening Balance at January 1, 2020	29		26		55
Securitizations	(1)		1		—
Clean-up call	1		(1)		—
Write-offs	(16)		—		(16)
Recoveries	8		—		8
Increase in vacation ownership notes receivable reserve(1)	14		—		14
Balance at September 30, 2020	$	35	$	26	$	61

_________________________

(1)Increase in vacation ownership notes receivable reserve includes $10 million ($2 million non-securitized and $8 million securitized) attributable to the increased reserve as a result of the COVID-19 pandemic.

The following table shows future contractual principal payments, as well as interest rates, for our non-securitized and securitized acquired vacation ownership notes receivable at September 30, 2020.


	Acquired Vacation Ownership Notes Receivable
($ in millions)	Non-Securitized		Securitized		Total
2020, remaining	$	1	$	14	$	15
2021	4		41		45
2022	4		41		45
2023	4		40		44
2024	4		38		42
Thereafter	18		128		146
Balance at September 30, 2020	$	35	$	302	$	337
Weighted average stated interest rate	13.4%		13.5%		13.4%
Range of stated interest rates	3.0% to 17.9%		6.0% to 15.9%		3.0% to 17.9%

Originated Vacation Ownership Notes Receivable

Originated vacation ownership notes receivable represent vacation ownership notes receivable originated by Legacy-ILG subsequent to the Acquisition Date and all Legacy-MVW vacation ownership notes receivable. The following table shows future principal payments, net of reserves, as well as interest rates, for our originated non-securitized and securitized originated vacation ownership notes receivable at September 30, 2020.


	Originated Vacation Ownership Notes Receivable
($ in millions)	Non-Securitized		Securitized		Total
2020, remaining	$	10	$	34	$	44
2021	31		135		166
2022	26		138		164
2023	21		139		160
2024	19		148		167
Thereafter	121		754		875
Balance at September 30, 2020	$	228	$	1,348	$	1,576
Weighted average stated interest rate	12.3%		12.7%		12.6%
Range of stated interest rates	0.0% to 18.0%		0.0% to 17.5%		0.0% to 18.0%

For originated vacation ownership notes receivable, we record the difference between the vacation ownership note receivable and the variable consideration included in the transaction price for the sale of the related vacation ownership product as a reserve on our vacation ownership notes receivable.

The following table summarizes the activity related to our originated vacation ownership notes receivable reserve.


	Originated Vacation Ownership Notes Receivable Reserve
($ in millions)	Non-Securitized		Securitized		Total
Balance at December 31, 2019	$	90	$	114	$	204
Increase in vacation ownership notes receivable reserve(1)	49		48		97
Securitizations	(70)		70		—
Clean-up call	37		(37)		—
Write-offs	(27)		—		(27)
Defaulted vacation ownership notes receivable repurchase activity(2)	72		(72)		—
Balance at September 30, 2020	$	151	$	123	$	274

_________________________

(1)Increase in vacation ownership notes receivable reserve includes $42 million ($16 million non-securitized and $26 million securitized) attributable to the increased reserve as a result of the COVID-19 pandemic.

(2)Decrease in securitized vacation ownership notes receivable reserve and increase in non-securitized vacation ownership notes receivable reserve were attributable to the transfer of the reserve when we voluntarily repurchased defaulted securitized vacation ownership notes receivable.

Credit Quality of Vacation Ownership Notes Receivable

Legacy-MVW Vacation Ownership Notes Receivable

For both Legacy-MVW non-securitized and securitized vacation ownership notes receivable, we estimated average remaining default rates of 7.35 percent as of September 30, 2020, and 7.04 percent as of December 31, 2019. A 0.5 percentage point increase in the estimated default rate would have resulted in an increase in the related vacation ownership notes receivable reserve of $7 million as of September 30, 2020, and $8 million as of December 31, 2019.

The following table shows our recorded investment in non-accrual Legacy-MVW vacation ownership notes receivable, which are vacation ownership notes receivable that are 90 days or more past due.


	Legacy-MVW Vacation Ownership Notes Receivable
($ in millions)	Non-Securitized		Securitized		Total
Investment in vacation ownership notes receivable on non-accrual status at September 30, 2020	$	86	$	11	$	97
Investment in vacation ownership notes receivable on non-accrual status at December 31, 2019	$	43	$	11	$	54

The following table shows the aging of the recorded investment in principal, before reserves, in Legacy-MVW vacation ownership notes receivable as of September 30, 2020.


	Legacy-MVW Vacation Ownership Notes Receivable
($ in millions)	Non-Securitized		Securitized		Total
31 – 90 days past due	$	8	$	27	$	35
91 – 150 days past due	5		12		17
Greater than 150 days past due	80		—		80
Total past due	93		39		132
Current	167		1,122		1,289
Total vacation ownership notes receivable	$	260	$	1,161	$	1,421

The following table shows the aging of the recorded investment in principal, before reserves, in Legacy-MVW vacation ownership notes receivable as of December 31, 2019.


	Legacy-MVW Vacation Ownership Notes Receivable
($ in millions)	Non-Securitized		Securitized		Total
31 – 90 days past due	$	7	$	33	$	40
91 – 150 days past due	4		11		15
Greater than 150 days past due	39		—		39
Total past due	50		44		94
Current	222		1,254		1,476
Total vacation ownership notes receivable	$	272	$	1,298	$	1,570

The following table details the origination year of our Legacy-MVW vacation ownership notes receivable as of September 30, 2020.


	Legacy-MVW Vacation Ownership Notes Receivable
($ in millions)	Non-Securitized		Securitized		Total
Year of Origination
2020	$	84	$	90	$	174
2019	72		419		491
2018	40		278		318
2017	20		167		187
2016	10		78		88
2015 and Prior	34		129		163
	$	260	$	1,161	$	1,421

Legacy-ILG Vacation Ownership Notes Receivable

At September 30, 2020 and December 31, 2019, the weighted average FICO score within our consolidated Legacy-ILG vacation ownership notes receivable pools was 708 and 712, respectively, based upon the outstanding vacation ownership notes receivable balance at time of origination. The average estimated rate for all future defaults for our Legacy-ILG consolidated outstanding pool of vacation ownership notes receivable was 14.71 percent as of September 30, 2020 and 12.65 percent as of December 31, 2019. A 0.5 percentage point increase in the estimated default rate on the Legacy-ILG vacation ownership notes receivable would have resulted in an increase in the related vacation ownership notes receivable reserve of $3 million as of September 30, 2020, and $2 million as of December 31, 2019.

The following table shows our recorded investment in non-accrual Legacy-ILG vacation ownership notes receivable, which are vacation ownership notes receivable that are 90 days or more past due.


	Legacy-ILG Vacation Ownership Notes Receivable
($ in millions)	Non-Securitized		Securitized		Total
Investment in vacation ownership notes receivable on non-accrual status at September 30, 2020	$	96	$	12	$	108
Investment in vacation ownership notes receivable on non-accrual status at December 31, 2019	$	40	$	9	$	49

The following table shows the aging of the recorded investment in principal, before reserves, in Legacy-ILG vacation ownership notes receivable as of September 30, 2020.


	Legacy-ILG Vacation Ownership Notes Receivable
($ in millions)	Non-Securitized		Securitized		Total
31 – 90 days past due	$	7	$	22	$	29
91 – 120 days past due	3		7		10
Greater than 120 days past due	93		5		98
Total past due	103		34		137
Current	85		606		691
Total vacation ownership notes receivable	$	188	$	640	$	828

The following table shows the aging of the recorded investment in principal, before reserves, in Legacy-ILG vacation ownership notes receivable as of December 31, 2019.


	Legacy-ILG Vacation Ownership Notes Receivable
($ in millions)	Non-Securitized		Securitized		Total
31 – 90 days past due	$	11	$	18	$	29
91 – 120 days past due	3		6		9
Greater than 120 days past due	37		3		40
Total past due	51		27		78
Current	250		539		789
Total vacation ownership notes receivable	$	301	$	566	$	867

The following tables show the Legacy-ILG acquired vacation ownership notes receivable by brand and FICO score, before reserves. Vacation ownership notes receivable with no FICO score primarily relate to non-U.S. resident borrowers.


	Acquired Vacation Ownership Notes Receivable as of September 30, 2020
($ in millions)	700 +		600 - 699		< 600		No Score		Total
Westin	$	91	$	52	$	4	$	11	$	158
Sheraton	87		77		14		33		211
Hyatt	13		9		1		1		24
Other	2		1		—		2		5
	$	193	$	139	$	19	$	47	$	398


	Acquired Vacation Ownership Notes Receivable as of December 31, 2019
($ in millions)	700 +		600 - 699		< 600		No Score		Total
Westin	$	103	$	57	$	4	$	13	$	177
Sheraton	95		83		15		37		230
Hyatt	15		10		1		—		26
Other	3		1		—		2		6
	$	216	$	151	$	20	$	52	$	439

The following table details the origination year of our Legacy-ILG acquired vacation ownership notes receivable by brand and FICO score as of September 30, 2020. Vacation ownership notes receivable with no FICO score primarily relate to non-U.S. resident borrowers.


	Acquired Vacation Ownership Notes Receivable - Westin
($ in millions)	2020		2019		2018		2017		2016		2015 & Prior		Total
700 +	$	—	$	—	$	25	$	25	$	15	$	26	$	91
600 - 699	—		—		12		14		10		16		52
< 600	—		—		2		1		—		1		4
No Score	—		—		3		2		2		4		11
	$	—	$	—	$	42	$	42	$	27	$	47	$	158


	Acquired Vacation Ownership Notes Receivable - Sheraton
($ in millions)	2020		2019		2018		2017		2016		2015 & Prior		Total
700 +	$	—	$	—	$	25	$	24	$	15	$	23	$	87
600 - 699	—		—		20		20		13		24		77
< 600	—		—		8		3		1		2		14
No Score	—		—		9		9		6		9		33
	$	—	$	—	$	62	$	56	$	35	$	58	$	211


	Acquired Vacation Ownership Notes Receivable - Hyatt and Other
($ in millions)	2020		2019		2018		2017		2016		2015 & Prior		Total
700 +	$	—	$	—	$	3	$	3	$	3	$	6	$	15
600 - 699	—		—		2		2		2		4		10
< 600	—		—		—		—		—		1		1
No Score	—		—		—		—		—		3		3
	$	—	$	—	$	5	$	5	$	5	$	14	$	29

The following tables show the Legacy-ILG originated vacation ownership notes receivable by brand and FICO score, before reserves. Vacation ownership notes receivable with no FICO score primarily relate to non-U.S. resident borrowers.


	Originated Vacation Ownership Notes Receivable as of September 30, 2020
($ in millions)	700 +		600 - 699		< 600		No Score		Total
Westin	$	105	$	51	$	5	$	19	$	180
Sheraton	101		69		16		41		227
Hyatt	15		7		1		—		23
	$	221	$	127	$	22	$	60	$	430


	Originated Vacation Ownership Notes Receivable as of December 31, 2019
($ in millions)	700 +		600 - 699		< 600		No Score		Total
Westin	$	122	$	46	$	5	$	25	$	198
Sheraton	97		61		13		37		208
Hyatt	16		6		—		—		22
	$	235	$	113	$	18	$	62	$	428

The following tables detail the origination year of our Legacy-ILG originated vacation ownership notes receivable by brand and FICO score as of September 30, 2020. Vacation ownership notes receivable with no FICO score primarily relate to non-U.S. resident borrowers.


	Originated Vacation Ownership Notes Receivable - Westin
($ in millions)	2020		2019		2018		2017		2016		2015 & Prior		Total
700 +	$	24	$	66	$	15	$	—	$	—	$	—	$	105
600 - 699	10		33		8		—		—		—		51
< 600	2		3		—		—		—		—		5
No Score	6		11		2		—		—		—		19
	$	42	$	113	$	25	$	—	$	—	$	—	$	180


	Originated Vacation Ownership Notes Receivable - Sheraton
($ in millions)	2020		2019		2018		2017		2016		2015 & Prior		Total
700 +	$	23	$	61	$	17	$	—	$	—	$	—	$	101
600 - 699	15		42		12		—		—		—		69
< 600	4		10		2		—		—		—		16
No Score	9		26		6		—		—		—		41
	$	51	$	139	$	37	$	—	$	—	$	—	$	227


	Originated Vacation Ownership Notes Receivable - Hyatt
($ in millions)	2020		2019		2018		2017		2016		2015 & Prior		Total
700 +	$	3	$	10	$	2	$	—	$	—	$	—	$	15
600 - 699	1		4		2		—		—		—		7
< 600	1		—		—		—		—		—		1
No Score	—		—		—		—		—		—		—
	$	5	$	14	$	4	$	—	$	—	$	—	$	23

FINANCIAL INSTRUMENTS

9 Months Ended

Sep. 30, 2020

Investments, All Other Investments [Abstract]

Financial Instruments


7.			FINANCIAL INSTRUMENTS

The following table shows the carrying values and the estimated fair values of financial assets and liabilities that qualify as financial instruments, determined in accordance with the authoritative guidance for disclosures regarding the fair value of financial instruments. Considerable judgment is required in interpreting market data to develop estimates of fair value. The use of different market assumptions and/or estimation methodologies could have a material effect on the estimated fair value amounts. The table excludes Cash and cash equivalents, Restricted cash, Accounts receivable, Accounts payable, Advance deposits and Accrued liabilities, all of which had fair values approximating their carrying amounts due to the short maturities and liquidity of these instruments.


	At September 30, 2020				At December 31, 2019
($ in millions)	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Vacation ownership notes receivable	$	1,913	$	1,951	$	2,233	$	2,264
Other assets	51		51		45		45
Total financial assets	$	1,964	$	2,002	$	2,278	$	2,309

Securitized debt, net	$	(1,751)	$	(1,811)	$	(1,871)	$	(1,924)
2025 Notes, net	(493)		(517)		—		—
2026 Notes, net	(743)		(767)		(742)		(824)
2028 Notes, net	(346)		(333)		(345)		(358)
Term Loan, net	(876)		(846)		(881)		(899)
Revolving Corporate Credit Facility, net	—		—		(27)		(27)
Convertible Notes, net	(213)		(227)		(207)		(247)
Total financial liabilities	$	(4,422)	$	(4,501)	$	(4,073)	$	(4,279)

Vacation Ownership Notes Receivable


	At September 30, 2020				At December 31, 2019
($ in millions)	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Vacation ownership notes receivable
Securitized	$	1,650	$	1,684	$	1,750	$	1,771

Eligible for securitization	54		58		165		175
Not eligible for securitization	209		209		318		318
Non-securitized	263		267		483		493
	$	1,913	$	1,951	$	2,233	$	2,264

We estimate the fair value of our vacation ownership notes receivable that have been securitized using a discounted cash flow model. We believe this is comparable to the model that an independent third party would use in the current market. Our model uses default rates, prepayment rates, coupon rates and loan terms for our securitized vacation ownership notes receivable portfolio as key drivers of risk and relative value to determine the fair value of the underlying vacation ownership notes receivable. We concluded that this fair value measurement should be categorized within Level 3.

Due to factors that impact the general marketability of our vacation ownership notes receivable that have not been securitized, as well as current market conditions, we bifurcate our non-securitized vacation ownership notes receivable at each balance sheet date into those eligible and not eligible for securitization using criteria applicable to current securitization transactions in the ABS market. Generally, vacation ownership notes receivable are considered not eligible for securitization if any of the following attributes are present: (1) payments are greater than 30 days past due; (2) the first payment has not been received; or (3) the collateral is located in Asia or Europe. In some cases, eligibility may also be determined based on the credit score of the borrower, the remaining term of the loans and other similar factors that may reflect investor demand in a securitization transaction or the cost to effectively securitize the vacation ownership notes receivable.

The table above shows the bifurcation of our vacation ownership notes receivable that have not been securitized into those eligible and not eligible for securitization based upon the aforementioned eligibility criteria. We estimate the fair value of the portion of our vacation ownership notes receivable that have not been securitized that we believe will ultimately be securitized in the same manner as vacation ownership notes receivable that have been securitized. We value the remaining vacation ownership notes receivable that have not been securitized at their carrying value, rather than using our pricing model. We believe that the carrying value of these particular vacation ownership notes receivable approximates fair value because the stated, or otherwise imputed, interest rates of these loans are consistent with current market rates and the reserve for these vacation ownership notes receivable appropriately accounts for risks in default rates, prepayment rates, discount rates and loan terms. We concluded that this fair value measurement should be categorized within Level 3.

Other Assets

Other assets include $45 million of company owned insurance policies (the “COLI policies”), acquired on the lives of certain participants in the Marriott Vacations Worldwide Deferred Compensation Plan, that are held in a rabbi trust. The carrying value of the COLI policies is equal to their cash surrender value (Level 2 inputs). In addition, we have investments in marketable securities of $6 million that are marked to market as trading securities using quoted market prices (Level 1 inputs).

Securitized Debt

We generate cash flow estimates by modeling all bond tranches for our active vacation ownership notes receivable securitization transactions, with consideration for the collateral specific to each tranche. The key drivers in our analysis include default rates, prepayment rates, bond interest rates and other structural factors, which we use to estimate the projected cash flows. In order to estimate market credit spreads by rating, we obtain indicative credit spreads from investment banks that actively issue and facilitate the market for vacation ownership securities and determine an average credit spread by rating level of the different tranches. We then apply those estimated market spreads to swap rates in order to estimate an underlying discount rate for calculating the fair value of the active bonds payable. We concluded that this fair value measurement should be categorized within Level 3.

2025 Notes, 2026 Notes and 2028 Notes

We estimate the fair value of our 2025 Notes, 2026 Notes and 2028 Notes (each as defined in Footnote 13 “Debt”) using quoted market prices as of the last trading day for the quarter; however these notes have only a limited trading history and volume, and as such this fair value estimate is not necessarily indicative of the value at which these notes could be retired or transferred. We concluded that this fair value measurement should be categorized within Level 2.

Term Loan

We estimate the fair value of our Term Loan (as defined in Footnote 13 “Debt”) using quotes from securities dealers as of the last trading day for the quarter; however these notes have only a limited trading history and volume, and as such this fair value estimate is not necessarily indicative of the value at which the Term Loan could be retired or transferred. We concluded that this fair value measurement should be categorized within Level 3.

Revolving Corporate Credit Facility

We estimate that the fair value of our Revolving Corporate Credit Facility (as defined in Footnote 13 “Debt”) approximates its gross carrying value as the contractual interest rate is variable plus an applicable margin. We concluded that this fair value measurement should be categorized within Level 3.

Convertible Notes

We estimate the fair value of our Convertible Notes (as defined in Footnote 13 “Debt”) using quoted market prices as of the last trading day for the quarter; however these notes have only a limited trading history and volume and as such this fair value estimate is not necessarily indicative of the value at which the Convertible Notes could be retired or transferred. We concluded that this fair value measurement should be categorized within Level 2. The difference between the carrying value and the fair value is primarily attributed to the underlying conversion feature and the spread between the conversion price and the market value of the shares underlying the Convertible Notes.

EARNINGS PER SHARE

9 Months Ended

Sep. 30, 2020

Earnings Per Share [Abstract]

Earnings per share


8.			EARNINGS PER SHARE

Basic (loss) earnings per common share attributable to common shareholders is calculated by dividing net (loss) income attributable to common shareholders by the weighted average number of shares of common stock outstanding during the reporting period. Treasury stock is excluded from the weighted average number of shares of common stock outstanding. Diluted earnings per common share attributable to common shareholders is calculated to give effect to all potentially dilutive common shares that were outstanding during the reporting period, except in periods when there is a loss because the inclusion of the potential common shares would have an anti-dilutive effect. The dilutive effect of outstanding equity-based compensation awards is reflected in diluted earnings per common share applicable to common shareholders by application of the treasury stock method using average market prices during the period.

Our calculation of diluted earnings per share attributable to common shareholders reflects our intent to settle conversions of the Convertible Notes through a combination settlement, which contemplates repayment in cash of the principal amount and repayment in shares of our common stock of any excess of the conversion value over the principal amount (the “conversion premium”). Therefore, we include only the shares that may be issued with respect to any conversion premium in total dilutive weighted average shares outstanding, which we calculate using the treasury stock method. As no conversion premium existed as of September 30, 2020 or September 30, 2019, there was no dilutive impact from the Convertible Notes for either the third quarter or first three quarters of 2020 or 2019.

The shares issuable on exercise of the Warrants (as defined in Footnote 13 “Debt”) sold in connection with the issuance of the Convertible Notes will not impact the total dilutive weighted average shares outstanding unless and until the price of our common stock exceeds the strike price. If and when the price of our common stock exceeds the strike price of the Warrants, we will include the dilutive effect of the additional shares that may be issued upon exercise of the Warrants in total dilutive weighted average shares outstanding, which we calculate using the treasury stock method. The Convertible Note Hedges (as defined in Footnote 13 “Debt”) purchased in connection with the issuance of the Convertible Notes are considered to be anti-dilutive and do not impact our calculation of diluted earnings per share attributable to common shareholders for any periods presented herein.

The table below illustrates the reconciliation of the earnings and number of shares used in our calculation of basic and diluted (loss) earnings per share attributable to common shareholders.


	Three Months Ended				Nine Months Ended
(in millions, except per share amounts)	September 30, 2020		September 30, 2019		September 30, 2020		September 30, 2019(1)
Computation of Basic (Loss) Earnings Per Share Attributable to Common Shareholders
Net (loss) income attributable to common shareholders	$	(62)	$	(9)	$	(238)	$	64
Shares for basic (loss) earnings per share	41.2		43.4		41.3		44.5
Basic (loss) earnings per share	$	(1.51)	$	(0.21)	$	(5.76)	$	1.44
Computation of Diluted (Loss) Earnings Per Share Attributable to Common Shareholders
Net (loss) income attributable to common shareholders	$	(62)	$	(9)	$	(238)	$	64
Shares for basic (loss) earnings per share	41.2		43.4		41.3		44.5
Effect of dilutive shares outstanding
Employee stock options and SARs	—		—		—		0.3
Restricted stock units	—		—		—		0.3
Shares for diluted (loss) earnings per share	41.2		43.4		41.3		45.1
Diluted (loss) earnings per share	$	(1.51)	$	(0.21)	$	(5.76)	$	1.43

_______________________________

(1)The computations of diluted earnings per share attributable to common shareholders exclude approximately 401,000 shares of common stock, the maximum number of shares issuable as of September 30, 2019, upon the vesting of certain performance-based awards, because the performance conditions required to be met for the shares subject to such awards to vest were not achieved by the end of the reporting period.

In accordance with the applicable accounting guidance for calculating earnings per share, for the first three quarters of 2019, we excluded from our calculation of diluted earnings per share 249,737 shares underlying stock appreciation rights (“SARs”) that may settle in shares of common stock because the exercise prices of such SARs, which ranged from $97.53 to $143.38, were greater than the average market price for the applicable period.

INVENTORY

9 Months Ended

Sep. 30, 2020

Inventory Disclosure [Abstract]

Inventory


9.			INVENTORY

The following table shows the composition of our inventory balances:


($ in millions)	At September 30, 2020		At December 31, 2019
Finished goods(1)	$	751	$	782
Work-in-progress	—		69
Real estate inventory	751		851
Other	10		8
	$	761	$	859

_________________________

(1)Represents completed inventory that is registered for sale as vacation ownership interests and inventory expected to be acquired pursuant to estimated future foreclosures.

We value vacation ownership products at the lower of cost or fair market value less costs to sell, in accordance with applicable accounting guidance, and we record operating supplies at the lower of cost (using the first-in, first-out method) or net realizable value. Product cost true-up activity relating to vacation ownership products increased carrying values of inventory by $4 million during the first three quarters of 2020 and by $2 million during the first three quarters of 2019. Additionally, during the third quarter and the first three quarters of 2020, we recorded $1 million and $6 million, respectively, of inventory impairments.

In addition to the above, at September 30, 2020, we had $173 million of completed vacation ownership units which are classified as a component of Property and equipment until the time at which they are legally registered for sale as vacation ownership products. We also have $42 million and $38 million of deposits on future purchases of inventory at September 30, 2020 and December 31, 2019, respectively, which are included in the Other assets line on our Balance Sheets.

GOODWILL AND INTANGIBLES

9 Months Ended

Sep. 30, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and intangibles


10.			GOODWILL AND INTANGIBLES

Goodwill

The following table details the carrying amount of our goodwill at September 30, 2020 and December 31, 2019, and reflects goodwill attributed to the ILG Acquisition.


($ in millions)	Vacation Ownership Segment		Exchange & Third-Party Management Segment		Total Consolidated
Balance at December 31, 2019	$	2,445	$	447	$	2,892
Impairment	—		(73)		(73)
Foreign exchange adjustments	—		(2)		(2)
Balance at March 31, 2020	2,445		372		2,817
Impairment	—		—		—
Foreign exchange adjustments	—		—		—
Balance at June 30, 2020	2,445		372		2,817
Impairment	—		—		—
Foreign exchange adjustments	—		—		—
Balance at September 30, 2020	$	2,445	$	372	$	2,817

Q1 2020

In connection with the preparation of our Financial Statements for the first quarter of 2020, we initially concluded that it was more likely than not that the fair value of both of our reporting units was below their respective carrying amounts. The factors that led to this conclusion were related to the COVID-19 pandemic and included: (i) the substantial decline in our stock price and market capitalization; (ii) the closure of substantially all of our Vacation Ownership reporting unit sales centers; (iii) the government stay-at-home orders in place in many of the jurisdictions in which we operate; (iv) our planned furloughs and reduced work schedule arrangements; (v) the impact of travel restrictions on the hospitality industry; and (vi) the macroeconomic fallout from the COVID-19 pandemic.

We utilized a combination of the income and market approaches to estimate the fair value of our reporting units (Level 3). We concluded that there was no impairment of the Vacation Ownership reporting unit as declines in expected future operating results were not substantial enough to cause the fair value of the reporting unit to be below its carrying amount. We recognized a non-cash impairment charge of $73 million in the Impairment line on our Income Statement during the first quarter of 2020 related to the Exchange & Third-Party Management reporting unit, which was primarily driven by the change in expected future operating results as a result of the impact of the COVID-19 pandemic.

Q2 2020 and Q3 2020

In connection with the preparation of our Financial Statements for the second and third quarters of 2020, we concluded that an interim quantitative impairment test was required for our Exchange & Third-Party Management reporting unit because of the impairment charge we recognized for this reporting unit in the first quarter of 2020. We utilized a combination of the income and market approaches to estimate the fair value of this reporting unit (Level 3) consistent with the methodology used in the first quarter of 2020. We concluded that there was no further impairment of the Exchange & Third-Party Management reporting unit as of the end of each of the second and third quarters of 2020 from the first quarter of 2020, as future expected operating results had improved slightly in comparison to the projections used in the first quarter, resulting in a fair value of the reporting unit in excess of its carrying amount. We performed a qualitative analysis of the impact of recent events, including business and industry specific considerations, on the fair value of our Vacation Ownership reporting unit as of the end of each of the second and third quarters of 2020 and determined that an interim quantitative impairment test was not required.

While the goodwill of our reporting units are not impaired as of the third quarter of 2020, we cannot assure you that goodwill will not be impaired in future periods. We will continue to monitor the operating results, cash flow forecasts and impact from changes in market conditions, as well as impacts of COVID-19 for these reporting units.

Indefinite-Lived Intangibles

The following table summarizes the activity related to our intangible assets, all of which are related to the Exchange & Third-Party Management segment.


($ in millions)	Trade Names and Trademarks
Balance at December 31, 2019	$	82
Impairment	(18)
Balance at March 31, 2020	64
Impairment	—
Balance at June 30, 2020	64
Impairment	—
Balance at September 30, 2020	$	64

In connection with the preparation of the Financial Statements for the first quarter of 2020, we concluded that it was more likely than not that the fair value of our indefinite lived intangibles was below their carrying amounts. The factors that led to this conclusion were related to the COVID-19 pandemic and included: (i) the government stay-at-home orders in place in many of the jurisdictions in which we operate; (ii) the impact of travel restrictions on the hospitality industry; and (iii) the macroeconomic fallout from the COVID-19 pandemic.

We used the relief of royalty method in calculating the fair value of the trade names and trademarks (Level 3). We recognized a non-cash impairment charge of $18 million in the Impairment line on our Income Statement during the first quarter of 2020, which was primarily attributed to the decline in estimated near-term revenues and related recovery of long-term revenues attributed to the impact of the COVID-19 pandemic.

CONTINGENCIES AND COMMITMENTS

9 Months Ended

Sep. 30, 2020

Commitments and Contingencies Disclosure [Abstract]

Contingencies and commitments


11.			CONTINGENCIES AND COMMITMENTS

Commitments and Letters of Credit

As of September 30, 2020, we had the following commitments outstanding:

•We have various contracts for the use of information technology hardware and software that we use in the normal course of business. Our aggregate commitments under these contracts were $83 million, of which we expect $16 million, $26 million, $19 million, $13 million, $6 million, and $3 million will be paid in the remainder of 2020, 2021, 2022, 2023, 2024, and thereafter, respectively.

•We have a remaining commitment to purchase an operating property that we manage, located in New York, New York for $97 million. We expect to acquire the remaining units in the property, in their current form, in two transactions during 2021. See Footnote 3 “Acquisitions and Dispositions” for information on the purchase that occurred during the first quarter of 2020 and Footnote 16 “Variable Interest Entities” for additional information on this transaction and our activities relating to the VIE involved in this transaction.

•We have a remaining commitment to purchase 88 vacation ownership units located in Bali, Indonesia for use in our Vacation Ownership segment, contingent upon completion of construction to agreed-upon standards. We expect to complete the acquisition in 2021 and to make the remaining payments with respect to these units when specific construction milestones are completed, as follows: $1 million in 2020, $21 million in 2021, and $2 million in 2022.

•We have a remaining commitment to purchase an operating property that we manage, located in San Francisco, California for $88 million. We expect to acquire the operating property over time and are committed to make payments for the operating property as follows: $32 million in 2021, $24 million in 2022, and $32 million in 2023. See Footnote 3 “Acquisitions and Dispositions” for information on the purchase that occurred during the first quarter of 2020 and Footnote 16 “Variable Interest Entities” for additional information on this transaction and our activities relating to the VIE involved in this transaction.

•During the first quarter of 2020, we assigned a commitment to purchase a property located in Waikiki, Hawaii to a third party. If we are unable to negotiate a capital efficient inventory arrangement, we are committed to purchase the property, in its then current form, for $98 million in 2021, unless it has been sold to another party. See Footnote 16 “Variable Interest Entities” for additional information on this transaction and our activities relating to the VIE involved in this transaction.

Surety bonds issued as of September 30, 2020 totaled $75 million, the majority of which were requested by federal, state, or local governments in connection with our operations.

As of September 30, 2020, we had $3 million of letters of credit outstanding under our Revolving Corporate Credit Facility (as defined in Footnote 13 “Debt”). In addition, as of September 30, 2020, we had $2 million in letters of credit outstanding related to and in lieu of reserves required for several vacation ownership notes receivable securitization transactions outstanding. These letters of credit are not issued pursuant to, nor do they impact our borrowing capacity under, the Revolving Corporate Credit Facility.

We estimate the cash outflow associated with completing the phases of our existing portfolio of vacation ownership projects currently under development will be approximately $4 million, of which $2 million is included within liabilities on our Balance Sheet at September 30, 2020. This estimate is based on our current development plans, which remain subject to change, and we expect the phases currently under development will be completed by the end of 2021.

Guarantees

Certain of our rental management agreements in our Exchange & Third-Party Management segment provide for owners of properties we manage to receive specified percentages or guaranteed amounts of the rental revenue generated under our management. In these cases, the operating expenses for the rental operations are paid from the revenue generated by the rentals, the owners are then paid their contractual percentages or guaranteed amounts, and our vacation rental business either retains the balance (if any) as its fee or makes up the deficit. At September 30, 2020, our maximum exposure under fixed dollar guarantees was $28 million, of which $3 million, $10 million, $6 million, $3 million, $2 million and $4 million relate to the remainder of 2020, 2021, 2022, 2023, 2024 and thereafter, respectively. Based on the impact of the COVID-19 pandemic on our rental operations, we declared the occurrence of a force majeure event under many of these agreements, generally effective as of April 1, 2020. As a result, owner distributions made under such agreements will be paid on a net operating income basis, rather than as guaranteed amounts, until such time as force majeure event conditions abate.

Loss Contingencies

In March 2017, RCHFU, L.L.C. and other owners at The Ritz-Carlton Club, Aspen Highlands (“RCC Aspen Highlands”) filed a complaint in an action pending in the U.S. District Court for the District of Colorado against us and certain third parties, alleging that their fractional interests were devalued by the affiliation of the RCC Aspen Highlands and other Ritz-Carlton Clubs with our points-based Marriott Vacation Club Destinations (“MVCD”) program. The plaintiffs are seeking compensatory damages, disgorgement, punitive damages, fees and costs. A trial is scheduled to begin in January 2021.

In May 2016, a purported class-action lawsuit was filed in the U.S. District Court for the Middle District of Florida by Anthony and Beth Lennen against us and certain third parties. The complaint challenged the characterization of the beneficial interests in the MVCD trust that are sold to customers as real estate interests under Florida law, the structure of the trust, and associated operational aspects of the trust. The plaintiffs sought declaratory relief, an unwinding of the MVCD product, and punitive damages. In August 2019, the District Court granted our motion for judgment on the pleadings and dismissed the case. The plaintiffs have appealed the ruling.

In December 2016, Flora and Bruce Gillespie and other owners and former owners of fractional interests at the Fifth and Fifty-Fifth Residence Club located within The St. Regis, New York (the “St. Regis NY Club”) filed an action in the U.S. District Court for the Southern District of New York against ILG, certain of its subsidiaries, and certain third parties alleging that the sale of less than all interests offered in the fractional offering plan, the amendment of the plan to include additional units, and the rental of unsold fractional interests by the plan’s sponsor breached the relevant agreements and harmed the value of plaintiffs’ fractional interests. The plaintiffs sought compensatory damages, rescission, disgorgement, fees and costs. In May 2020, the court granted our motion for summary judgment and dismissed the case. The plaintiffs appealed the ruling. The parties subsequently settled the matter for a waiver of our claim of attorney fees, and on October 13, 2020, the plaintiffs dismissed their appeal with prejudice.

In February 2019, the owners’ association for the St. Regis NY Club filed a lawsuit in the Supreme Court for the State of New York, New York County, Commercial Division against ILG and several of its subsidiaries and certain third parties. The operative complaint alleges that the defendants breached their fiduciary duties related to sale and rental practices, aided and abetted certain breaches of fiduciary duty, engaged in self-dealing as the sponsor and manager of the club, tortiously interfered with the management agreement, was unjustly enriched, and engaged in anticompetitive conduct. The plaintiff is seeking unspecified damages, punitive damages and disgorgement of payments under the management and purchase agreements.

In April 2019, a purported class-action lawsuit was filed by Alan and Marjorie Helman and others against us in the Superior Court of the Virgin Islands, Division of St. Thomas alleging that their fractional interests were devalued by the affiliation of The Ritz-Carlton Club, St. Thomas and other Ritz-Carlton Clubs with our MVCD program. The lawsuit was subsequently removed to the U.S. District Court for the District of the Virgin Islands. The plaintiffs are seeking unspecified damages, disgorgement of profits, fees and costs.

In May 2019, the G.A. Resort Condominium Association Inc., the owners’ association for the fractional owners at the Hyatt Residence Club Grand Aspen resort (“HRC Grand Aspen”) filed a lawsuit against us in the District Court for the County of Pitkin, Colorado relating to the transfer of ownership of developer-owned fractional interests at HRC Grand Aspen to the HPC Trust Club for sale and use as a part of the Hyatt Residence Club Portfolio Program. The lawsuit was subsequently removed to the U.S. District Court for the District of Colorado. The plaintiff is seeking termination of the management agreement with the owners’ association, the annulment of certain amendments to governing documents at HRC Grand Aspen, the removal of fractional interests at HRC Grand Aspen from the HPC Trust Club, unspecified damages, disgorgement of profits, fees and costs. In July 2020, the District Court granted our motion to dismiss claims against ILG and MVWC. Certain claims remain pending against other defendants, including certain of our subsidiaries. On September 14, 2020, the Magistrate Judge issued a report and recommendation that the District Court grant our motion to dismiss all the remaining claims against us.

We believe we have meritorious defenses to the claims in each of the above matters and intend to vigorously defend each matter.

In the ordinary course of our business, various claims and lawsuits have been filed or are pending against us. A number of these lawsuits and claims may exist at any given time. Additionally, the COVID-19 pandemic may give rise to various claims and lawsuits from owners, members and other parties. We record and accrue for legal contingencies when we determine that it is probable that a liability has been incurred and the amount of the loss can be reasonably estimated. In making such determinations, we evaluate, among other things, the degree of probability of an unfavorable outcome and, when it is probable that a liability has been incurred, our ability to make a reasonable estimate of loss. We review these accruals each reporting period and make revisions based on changes in facts and circumstances.

We have not accrued for any of the pending matters described above and we cannot estimate a range of the potential liability associated with these pending matters, if any, at this time. We have accrued for other claims and lawsuits, but the amount accrued is not material in the aggregate. For matters not requiring accrual, we do not believe that the ultimate outcome of such matters, individually and in the aggregate, will materially harm our financial position, cash flows, or overall trends in results of operations based on information currently available. However, legal proceedings are inherently uncertain, and while we believe that our accruals are adequate and/or we have valid defenses to the claims asserted, unfavorable rulings could occur that could, individually or in the aggregate, have a material adverse effect on our business, financial condition, or operating results.

Leases That Have Not Yet Commenced

During the first quarter of 2020, we entered into a finance lease arrangement for our new global headquarters in Orlando, Florida. The new office building is expected to be completed in 2023, at which time the lease term will commence and a right-of-use asset and corresponding liability will be recorded on our balance sheet. The initial lease term is approximately 16 years with total lease payments of $129 million for the aforementioned period. During the second quarter of 2020, in response to the COVID-19 pandemic and our ongoing evaluation of future space needs, we entered into a standstill arrangement with the developer/lessor. The agreement provides for a standstill on certain project spending for several months, extends certain deliverable dates pertaining to the development and lease, and grants MVW a limited termination option in exchange for reimbursement of certain developer soft costs. Subsequent to the end of the third quarter of 2020, we amended our standstill agreement with the developer/lessor to further extend certain deliverable dates pertaining to the development and lease agreements into 2021.

SECURITIZED DEBT

9 Months Ended

Sep. 30, 2020

Debt Disclosure [Abstract]

Securitized debt


12.			SECURITIZED DEBT

The following table provides detail on our securitized debt, net of unamortized debt discount and issuance costs.


($ in millions)	At September 30, 2020		At December 31, 2019
Vacation ownership notes receivable securitizations, gross(1)	$	1,769	$	1,850
Unamortized debt discount and issuance costs	(18)		(18)
	1,751		1,832

Warehouse Credit Facility, gross	—		21
Unamortized debt issuance costs(2)	—		(2)
	—		19

Other	—		20
	$	1,751	$	1,871

_________________________

(1)Interest rates as of September 30, 2020 range from 2.2% to 4.4%, with a weighted average interest rate of 2.7%

(2)Excludes $1 million of unamortized debt issuance costs as of September 30, 2020, as no cash borrowings were outstanding on the Warehouse Credit Facility at that time

All of our securitized debt is non-recourse to us. See Footnote 16 “Variable Interest Entities” for a discussion of the collateral for the non-recourse debt associated with our securitized debt.

The following table shows scheduled future principal payments for our securitized debt as of September 30, 2020.


	Vacation Ownership Notes Receivable Securitizations
($ in millions)
Payments Year
2020, remaining	$	46
2021	178
2022	184
2023	189
2024	191
Thereafter	981
	$	1,769

Vacation Ownership Notes Receivable Securitizations

Each of the securitized vacation ownership notes receivable transactions contains various triggers relating to the performance of the underlying vacation ownership notes receivable. If a pool of securitized vacation ownership notes receivable fails to perform within the pool’s established parameters (default or delinquency thresholds vary by transaction), transaction provisions effectively redirect the monthly excess spread we would otherwise receive from that pool (attributable to the interests we retained) to accelerate the principal payments to investors (taking into account the subordination of the different tranches to the extent there are multiple tranches) until the performance trigger is cured. During the third quarter and first three quarters of 2020, and as of September 30, 2020, no securitized vacation ownership notes receivable pools were out of compliance with their respective established parameters. As of September 30, 2020, we had 12 securitized vacation ownership notes receivable pools outstanding.

As the contractual terms of the underlying securitized vacation ownership notes receivable determine the maturities of the non-recourse debt associated with them, actual maturities may occur earlier than shown above due to prepayments by the vacation ownership notes receivable obligors.

During the third quarter of 2020, we completed the securitization of a pool of $383 million of vacation ownership notes receivable. In connection with the securitization, investors purchased in a private placement $375 million in vacation ownership loan backed notes from MVW 2020-1 LLC (the “2020-1 LLC”). Four classes of vacation ownership loan backed notes were issued by the 2020-1 LLC: $238 million of Class A Notes, $72 million of Class B Notes, $44 million of Class C Notes, and $21 million of Class D Notes. The Class A Notes have an interest rate of 1.74 percent, the Class B Notes have an interest rate of 2.73 percent, the Class C Notes have an interest rate of 4.21 percent, and the Class D Notes have an interest rate of 7.14 percent, for an overall weighted average interest rate of 2.53 percent. Of the $375 million in proceeds from the transaction, $300 million was used to repay all outstanding amounts previously drawn under the Warehouse Credit Facility, as defined below, $7 million was used to pay transaction expenses and fund required reserves, and the remainder will be used for general corporate purposes.

Warehouse Credit Facility

Our warehouse credit facility (the “Warehouse Credit Facility”) allows for the securitization of vacation ownership notes receivable on a revolving non-recourse basis through December 20, 2021. During the first quarter of 2020, we securitized vacation ownership notes receivable under our Warehouse Credit Facility. The carrying amount of the vacation ownership notes receivable securitized was $240 million. The average advance rate was 84 percent, which resulted in gross proceeds of $202 million. Net proceeds were $201 million due to the funding of reserve accounts of $1 million.

During the second quarter of 2020, we securitized vacation ownership notes receivable under our Warehouse Credit Facility. The carrying amount of the vacation ownership notes receivable securitized was $132 million. The average advance rate was 86 percent, which resulted in gross proceeds of $113 million. Net proceeds were $113 million due to the funding of reserve accounts of less than $1 million.

Additionally, during the second quarter of 2020, we amended our Warehouse Credit Facility to increase the borrowing capacity by $181 million, to $531 million. The revolving period for the existing $350 million remains the same and will terminate in December 2021, if not renewed or terminated earlier. As part of this amendment, the interest rate increased from primarily LIBOR plus 1.1% to primarily LIBOR plus 1.4%. During the third quarter of 2020, we terminated the additional $181 million capacity of the Warehouse Credit Facility.

DEBT

9 Months Ended

Sep. 30, 2020

Debt Disclosure [Abstract]

Debt


13.			DEBT

The following table provides detail on our debt balances, net of unamortized debt discount and issuance costs.


($ in millions)		At September 30, 2020		At December 31, 2019
Senior Secured Notes
	2025 Notes	$	500	$	—
	Unamortized debt discount and issuance costs	(7)		—
		493		—

Senior Unsecured Notes
	2026 Notes	750		750
	Unamortized debt discount and issuance costs	(7)		(8)
		743		742

	2028 Notes	350		350
	Unamortized debt discount and issuance costs	(4)		(5)
		346		345

Corporate Credit Facility
	Term Loan	887		893
	Unamortized debt discount and issuance costs	(11)		(12)
		876		881

	Revolving Corporate Credit Facility	—		30
	Unamortized debt issuance costs(1)	—		(3)
		—		27

Convertible Notes		230		230
Unamortized debt discount and issuance costs		(17)		(23)
		213		207

Finance leases		9		14
		$	2,680	$	2,216

_________________________

(1)Excludes $3 million of unamortized debt issuance costs as of September 30, 2020, as no cash borrowings were outstanding on the Revolving Corporate Credit Facility at that time

The following table shows scheduled future principal payments for our debt, excluding finance leases, as of September 30, 2020.


($ in millions)	2025 Notes		2026 Notes		2028 Notes		Term Loan		Convertible Notes		Total
Payments Year
2020, remaining	$	—	$	—	$	—	$	2	$	—	$	2
2021	—		—		—		9		—		9
2022	—		—		—		9		230		239
2023	—		—		—		9		—		9
2024	—		—		—		9		—		9
Thereafter	500		750		350		849		—		2,449
	$	500	$	750	$	350	$	887	$	230	$	2,717

Senior Secured Notes

In the second quarter of 2020, we issued $500 million aggregate principal amount of 6.125% Senior Secured Notes due September 15, 2025 (the “2025 Notes”). The 2025 Notes are pari passu with and secured by the same collateral as our Corporate Credit Facility. We pay interest on the 2025 Notes on May 15 and November 15 of each year, commencing on November 15, 2020. We received net proceeds of approximately $493 million from the offering of the 2025 Notes, after deducting offering expenses and the underwriting discount, which were used to repay all amounts outstanding at that time on the Revolving Corporate Credit Facility.

Senior Unsecured Notes

Our Senior Unsecured Notes include the following:

•$750 million aggregate principal amount of 6.500% Senior Unsecured Notes due 2026 issued in the third quarter of 2018 with a maturity date of September 15, 2026 (the “2026 Notes”); and

•$350 million aggregate principal amount of 4.750% Senior Unsecured Notes due 2028 issued in the fourth quarter of 2019 with a maturity date of January 15, 2028 (the “2028 Notes”).

Corporate Credit Facility

Our corporate credit facility (“Corporate Credit Facility”), which provides support for our business, including ongoing liquidity and letters of credit, includes a $900 million term loan facility (the “Term Loan”), which matures on August 31, 2025, and a revolving credit facility with a borrowing capacity of $600 million (the “Revolving Corporate Credit Facility”), including a letter of credit sub-facility of $75 million, that terminates on August 31, 2023.

The Term Loan bears interest at LIBOR plus 1.75 percent. Borrowings under the Revolving Corporate Credit Facility generally bear interest at a floating rate plus an applicable margin that varies from 0.50 percent to 2.75 percent depending on the type of loan and our credit rating. In addition, we pay a commitment fee on the unused availability under the Revolving Corporate Credit Facility at a rate that varies from 20 to 40 basis points per annum, also depending on our credit rating. As of September 30, 2020, we were in compliance with the applicable financial and operating covenants under the Corporate Credit Facility.

In May 2020, we entered into a waiver (the “Waiver”) to the agreement that governs the Corporate Credit Facility. The Waiver, among other things, suspends the requirement to comply with the leverage covenant in the Revolving Corporate Credit Facility for up to four quarters, commencing with the fiscal quarter ending June 30, 2020. We are required to maintain monthly minimum liquidity of at least $300 million until the later of March 31, 2021 or the end of the suspension period. In addition, for the duration of the period during which the waiver of the leverage covenant remains in effect, we are prohibited from making certain restricted payments, including share repurchases and dividends. If we are not in compliance with the leverage covenant at the end of the suspension period, we will seek to negotiate with our lenders to amend such covenant, as needed.

Prior to 2020, we entered into $250 million of interest rate swaps under which we pay a fixed rate of 2.9625 percent and receive a floating interest rate through September 2023 and $200 million of interest rate swaps under which we pay a fixed rate of 2.2480 percent and receive a floating interest rate through April 2024, in each case to hedge a portion of our interest rate risk on the Term Loan. We also entered into a $100 million interest rate collar with a cap strike rate of 2.5000 percent and a floor strike rate of 1.8810 percent through April 2024 to further hedge our interest rate risk on the Term Loan. Both the interest rate swaps and the interest rate collar have been designated and qualify as cash flow hedges of interest rate risk and recorded in Other liabilities on our Balance Sheet as of September 30, 2020 and December 31, 2019. We characterize payments we make in connection with these derivative instruments as interest expense and a reclassification of accumulated other comprehensive income for presentation purposes.

The following table reflects the activity in accumulated other comprehensive loss related to our derivative instruments:


($ in millions)	2020		2019
Derivative instrument adjustment balance, January 1	$	(21)	$	(6)
Other comprehensive loss before reclassifications	(24)		(3)
Reclassification to Income Statement	—		—
Net other comprehensive loss	(24)		(3)
Derivative instrument adjustment balance, March 31	(45)		(9)
Other comprehensive loss before reclassifications	(1)		(13)
Reclassification to Income Statement	—		—
Net other comprehensive loss	(1)		(13)
Derivative instrument adjustment balance, June 30	(46)		(22)
Other comprehensive gain (loss) before reclassifications	3		(4)
Reclassification to Income Statement	—		—
Net other comprehensive loss	3		(4)
Derivative instrument adjustment balance, September 30	$	(43)	$	(26)

Convertible Notes

During 2017, we issued $230 million of aggregate principal amount of convertible senior notes (the “Convertible Notes”) that bear interest at a rate of 1.50 percent, payable in cash semi-annually. The conversion rate is subject to adjustment for certain events as described in the indenture governing the notes. Upon conversion, we will pay or deliver, as the case may be, cash, shares of our common stock or a combination of cash and shares of our common stock, at our election. It is our intent to settle conversions of the Convertible Notes through combination settlement, which contemplates repayment in cash of the principal amount and repayment in shares of our common stock of any excess of the conversion value over the principal amount. As of September 30, 2020, the effective interest rate was 4.7% and the remaining discount amortization period was 2.0 years.

The following table shows the net carrying value of the Convertible Notes.


($ in millions)	At September 30, 2020		At December 31, 2019
Liability component
Principal amount	$	230	$	230
Unamortized debt discount	(15)		(20)
Unamortized debt issuance costs	(2)		(3)
Net carrying amount of the liability component	$	213	$	207

Carrying amount of equity component, net of issuance costs	$	33	$	33

The following table shows interest expense information related to the Convertible Notes.


	Three Months Ended				Nine Months Ended
($ in millions)	September 30, 2020		September 30, 2019		September 30, 2020		September 30, 2019
Contractual interest expense	$	1	$	1	$	3	$	2
Amortization of debt discount	1		2		5		5
Amortization of debt issuance costs	—		—		1		1
	$	2	$	3	$	9	$	8

Convertible Note Hedges and Warrants

In connection with the offering of the Convertible Notes, we concurrently entered into the following privately-negotiated separate transactions: convertible note hedge transactions with respect to our common stock (“Convertible Note Hedges”), initially covering a total of approximately 1.55 million shares of our common stock, and warrant transactions (“Warrants”), whereby we sold to the counterparties to the Convertible Note Hedges warrants to acquire approximately 1.55 million shares of our common stock at an initial strike price of $176.68 per share. As of September 30, 2020, no Convertible Note Hedges or Warrants have been exercised.

Security and Guarantees

Amounts borrowed under the Corporate Credit Facility and the 2025 Notes, as well as obligations with respect to letters of credit issued pursuant to the Corporate Credit Facility, are secured by a perfected first priority security interest in substantially all of the assets of the borrowers under, and guarantors of, that facility (which include MVWC and certain of our direct and indirect, existing and future, domestic subsidiaries, excluding certain bankruptcy remote special purpose subsidiaries), in each case including inventory, subject to certain exceptions. In addition, the Corporate Credit Facility, the 2025 Notes, the 2026 Notes and the 2028 Notes are guaranteed by MVWC and certain of our direct and indirect, existing and future, domestic subsidiaries, excluding bankruptcy remote special purpose subsidiaries.

SHAREHOLDERS' EQUITY

9 Months Ended

Sep. 30, 2020

Equity [Abstract]

Shareholders' equity


14.			SHAREHOLDERS’ EQUITY

Marriott Vacations Worldwide has 100,000,000 authorized shares of common stock, par value of $0.01 per share. At September 30, 2020, there were 75,250,627 shares of Marriott Vacations Worldwide common stock issued, of which 41,062,759 shares were outstanding and 34,187,868 shares were held as treasury stock. At December 31, 2019, there were 75,020,272 shares of Marriott Vacations Worldwide common stock issued, of which 41,582,096 shares were outstanding and 33,438,176 shares were held as treasury stock. Marriott Vacations Worldwide has 2,000,000 authorized shares of preferred stock, par value of $0.01 per share, none of which were issued or outstanding as of September 30, 2020 or December 31, 2019.

Share Repurchase Program

The following table summarizes share repurchase activity under our current share repurchase program:


($ in millions, except per share amounts)	Number of Shares Repurchased	Cost of Shares Repurchased		Average Price Paid per Share
As of December 31, 2019	16,418,950	$	1,258	$	76.60
For the first three quarters of 2020	769,935	82		106.60
As of September 30, 2020	17,188,885	$	1,340	$	77.95

On July 30, 2019, our Board of Directors authorized the extension of the duration of our existing share repurchase program to December 31, 2020, as well as the repurchase of up to 4.5 million additional shares of our common stock. As of September 30, 2020, our Board of Directors had authorized the repurchase of an aggregate of up to 19.4 million shares of our common stock under the share repurchase program since the initiation of the program in October 2013. Share repurchases may be made through open market purchases, privately negotiated transactions, block transactions, tender offers, accelerated share repurchase agreements or otherwise. The specific timing, amount and other terms of the repurchases will depend on market conditions, corporate and regulatory requirements and other factors. Acquired shares of our common stock are held as treasury shares carried at cost in our Financial Statements. In connection with the repurchase program, we are authorized to adopt one or more trading plans pursuant to the provisions of Rule 10b5-1 under the Securities Exchange Act of 1934, as amended.

As of September 30, 2020, 1.9 million shares remained available for repurchase under the authorization approved by our Board of Directors. The authorization for the share repurchase program may be suspended, terminated, increased or decreased by our Board of Directors at any time without prior notice. Due to the impact of the COVID-19 pandemic, we temporarily suspended repurchasing shares of our common stock. Any future share repurchases will be subject to the restrictions imposed under the Waiver.

Dividends

We declared cash dividends to holders of common stock during the first three quarters of 2020 as follows:

Declaration Date

Shareholder Record Date

Distribution Date

Dividend per Share

February 14, 2020

February 27, 2020

March 12, 2020

$0.54

Due to the impact of the COVID-19 pandemic, we temporarily suspended cash dividends. Any future dividend payments will be subject to both the restrictions imposed under the Waiver and Board approval, and there can be no assurance that we will pay dividends in the future.

Noncontrolling Interests

Property Owners’ Associations

We consolidate certain property owners’ associations under the voting interest model. Noncontrolling interests represents the portion of the property owners’ associations related to individual or third-party vacation ownership interest owners. Noncontrolling interests of $25 million and $12 million, as of September 30, 2020 and December 31, 2019, respectively, are included on our Balance Sheets as a component of equity.

SHARE-BASED COMPENSATION

9 Months Ended

Sep. 30, 2020

Share-based Payment Arrangement [Abstract]

Share-based compensation


15.			SHARE-BASED COMPENSATION

During the second quarter of 2020, our shareholders approved the Marriott Vacations Worldwide Corporation 2020 Equity Incentive Plan (the “MVW Equity Plan”), which supersedes both the Marriott Vacations Worldwide Corporation Stock and Cash Incentive Plan and the Interval Leisure Group, Inc. 2013 Stock and Incentive Plan (collectively, the “Prior Plans”). No new awards will be granted under the Prior Plans and all awards that were granted under the Prior Plans will remain outstanding and continue to be governed by the Prior Plans.

The MVW Equity Plan is maintained for the benefit of our officers, directors, and employees. Under the MVW Equity Plan, we are authorized to award: (1) restricted stock units (“RSUs”) of our common stock, (2) SARs relating to our common stock, and (3) stock options to purchase our common stock. A total of 1.8 million shares are authorized for issuance pursuant to grants under the MVW Equity Plan. As of September 30, 2020, approximately 1.8 million shares were available for grants under the MVW Equity Plan.

The following table details our share-based compensation expense related to award grants to our officers, directors, and employees:


	Three Months Ended				Nine Months Ended
($ in millions)	September 30, 2020		September 30, 2019		September 30, 2020		September 30, 2019
Service-based RSUs	$	5	$	4	$	16	$	13
Performance-based RSUs	4		3		3		6
ILG Acquisition Converted RSUs	1		2		2		8
	10		9		21		27
SARs	1		—		3		2
Stock options	—		—		—		—
	$	11	$	9	$	24	$	29

The following table details our deferred compensation costs related to unvested awards:


($ in millions)	At September 30, 2020		At December 31, 2019
Service-based RSUs	$	23	$	17
Performance-based RSUs	6		10
ILG Acquisition Converted RSUs	1		3
	30		30
SARs	2		1
Stock options	—		—
	$	32	$	31

Restricted Stock Units

We granted 268,652 service-based RSUs, which are subject to time-based vesting conditions, with a weighted average grant-date fair value of $90.11, to our employees and non-employee directors during the first three quarters of 2020. During the first three quarters of 2020, we also granted performance-based RSUs, which are subject to performance-based vesting conditions, to members of management. A maximum of 177,208 RSUs may be earned under the performance-based RSU awards granted during the first three quarters of 2020.

Stock Appreciation Rights

We granted 116,434 SARs, with a weighted average grant-date fair value of $29.63 and a weighted average exercise price of $96.82, to members of management during the first three quarters of 2020. We use the Black-Scholes model to estimate the fair value of the SARs granted. The expected stock price volatility was calculated based on the average of the historical and implied volatility of our stock price. The average expected life was calculated using the simplified method, as we have insufficient historical information to provide a basis for estimating average expected life. The risk-free interest rate was calculated based on U.S. Treasury zero-coupon issues with a remaining term equal to the expected life assumed at the date of grant. The dividend yield assumption listed below is based on the expectation of future payouts.

The following table outlines the assumptions used to estimate the fair value of grants during the first three quarters of 2020:


Expected volatility			38.81%
Dividend yield			2.13%
Risk-free rate			0.96%
Expected term (in years)			6.25

VARIABLE INTEREST ENTITIES

9 Months Ended

Sep. 30, 2020

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Variable interest entities


16.			VARIABLE INTEREST ENTITIES

Variable Interest Entities Related to Our Vacation Ownership Notes Receivable Securitizations

We periodically securitize, without recourse, through bankruptcy remote special purpose entities, notes receivable originated in connection with the sale of vacation ownership products. These vacation ownership notes receivable securitizations provide funding for us and transfer the economic risks and substantially all the benefits of the consumer loans we originate to third parties. In a vacation ownership notes receivable securitization, various classes of debt securities issued by a special purpose entity are generally collateralized by a single tranche of transferred assets, which consist of vacation ownership notes receivable. With each vacation ownership notes receivable securitization, we may retain a portion of the securities, subordinated tranches, interest-only strips, subordinated interests in accrued interest and fees on the securitized vacation ownership notes receivable or, in some cases, overcollateralization and cash reserve accounts.

We created these bankruptcy remote special purpose entities to serve as a mechanism for holding assets and related liabilities, and the entities have no equity investment at risk, making them VIEs. We continue to service the vacation ownership notes receivable, transfer all proceeds collected to these special purpose entities, and retain rights to receive benefits that are potentially significant to the entities. Accordingly, we concluded that we are the entities’ primary beneficiary and, therefore, consolidate them. There is no noncontrolling interest balance related to these entities and the creditors of these entities do not have general recourse to us.

As part of the ILG Acquisition, we acquired the variable interests in the entities associated with ILG’s outstanding vacation ownership notes receivable securitization transactions. As these vacation ownership notes receivable securitizations are similar in nature to the Legacy-MVW vacation ownership notes receivable securitizations, they have been aggregated for disclosure purposes.

The following table shows consolidated assets, which are collateral for the obligations of these VIEs, and consolidated liabilities included on our Balance Sheet at September 30, 2020:


($ in millions)	Vacation Ownership Notes Receivable Securitizations		Warehouse Credit Facility		Total
Consolidated Assets
Vacation ownership notes receivable, net of reserves	$	1,650	$	—	$	1,650
Interest receivable	12		—		12
Restricted cash	69		—		69
Total	$	1,731	$	—	$	1,731
Consolidated Liabilities
Interest payable	$	2	$	—	$	2
Securitized Debt	1,769		—		1,769
Total	$	1,771	$	—	$	1,771

The following table shows the interest income and expense recognized as a result of our involvement with these VIEs during the third quarter of 2020:


($ in millions)	Vacation Ownership Notes Receivable Securitizations		Warehouse Credit Facility		Total
Interest income	$	59	$	—	$	59
Interest expense to investors	$	14	$	1	$	15
Debt issuance cost amortization	$	1	$	1	$	2
Administrative expenses	$	1	$	—	$	1

The following table shows the interest income and expense recognized as a result of our involvement with these VIEs during the first three quarters of 2020:


($ in millions)	Vacation Ownership Notes Receivable Securitizations		Warehouse Credit Facility		Total
Interest income	$	168	$	18	$	186
Interest expense to investors	$	39	$	4	$	43
Debt issuance cost amortization	$	5	$	1	$	6
Administrative expenses	$	1	$	—	$	1

The following table shows cash flows between us and the vacation ownership notes receivable securitization VIEs:


	Nine Months Ended
($ in millions)	September 30, 2020		September 30, 2019
Cash Inflows
Net proceeds from vacation ownership notes receivable securitizations	$	371	$	445
Principal receipts	360		355
Interest receipts	166		156
Reserve release	16		107
Total	913		1,063
Cash Outflows
Principal to investors	(370)		(379)
Voluntary repurchases of defaulted vacation ownership notes receivable	(69)		(35)
Voluntary clean-up call	(18)		(19)
Interest to investors	(37)		(36)
Funding of restricted cash	(20)		(93)
Total	(514)		(562)
Net Cash Flows	$	399	$	501

Under the terms of our vacation ownership notes receivable securitizations, we have the right to substitute loans for, or repurchase, defaulted loans at our option, subject to certain limitations. Our maximum exposure to potential loss relating to the special purpose entities that purchase, sell and own these vacation ownership notes receivable is the overcollateralization amount (the difference between the loan collateral balance and the balance of the outstanding vacation ownership notes receivable), plus cash reserves and any residual interest in future cash flows from collateral.

The following table shows cash flows between us and the Warehouse Credit Facility VIE:


	Nine Months Ended
($ in millions)	September 30, 2020		September 30, 2019
Cash Inflows
Proceeds from vacation ownership notes receivable securitizations	$	315	$	181
Principal receipts	34		14
Interest receipts	17		13
Reserve release	2		1
Total	368		209
Cash Outflows
Principal to investors	(33)		(12)
Voluntary repurchases of defaulted vacation ownership notes receivable	(3)		—
Repayment of Warehouse Credit Facility	(300)		(228)
Interest to investors	(4)		(4)
Funding of restricted cash	(2)		(1)
Total	(342)		(245)
Net Cash Flows	$	26	$	(36)

Other Variable Interest Entities

We have a commitment to purchase an operating property located in San Francisco, California, that we currently manage as Marriott Vacation Club Pulse, San Francisco. Refer to Footnote 11 “Contingencies and Commitments” for additional information on the commitment. We are required to purchase the property from the third-party developer unless the developer has sold the property to another party. The property is held by a VIE for which we are not the primary beneficiary as we cannot prevent the VIE from selling the property at a higher price. Accordingly, we have not consolidated the VIE. As of September 30, 2020, our Balance Sheet reflected $2 million in Accounts Receivable, including a note receivable of less than $1 million, and $5 million in Other assets for a deposit related to the acquisition of a portion of this property. We believe that our maximum exposure to loss as a result of our involvement with this VIE is approximately $7 million as of September 30, 2020.

We have a commitment to purchase an operating property located in New York, New York, that we currently manage as Marriott Vacation Club Pulse, New York City. Refer to Footnote 11 “Contingencies and Commitments” for additional information on the commitment. We are required to purchase the completed property from the third-party developer unless the developer has sold the property to another party. The property is held by a VIE for which we are not the primary beneficiary as we cannot prevent the VIE from selling the property at a higher price. Accordingly, we have not consolidated the VIE. As of September 30, 2020, our Balance Sheet reflected $22 million in Other assets for a deposit related to the acquisition of a portion of this property, and a note receivable of less than $1 million that is included in the Accounts receivable line. We believe that our maximum exposure to loss as a result of our involvement with this VIE is approximately $23 million as of September 30, 2020.

We have a commitment to purchase a property located in Waikiki, Hawaii. Refer to Footnote 11 “Contingencies and Commitments” for additional information on the commitment. If we are unable to negotiate a capital efficient inventory arrangement, we are committed to purchase the property, in its then current form, unless it has been sold to another party. The property is held by a VIE for which we are not the primary beneficiary as we do not control the operations of the VIE. Accordingly, we have not consolidated the VIE. As of September 30, 2020, our Balance Sheet reflected $1 million in Accounts Receivable, including a note receivable of less than $1 million. We believe that our maximum exposure to loss as a result of our involvement with this VIE is less than $1 million as of September 30, 2020.

Deferred Compensation Plan

We consolidate the liabilities of the Marriott Vacations Worldwide Deferred Compensation Plan and the related assets, which consist of the COLI policies held in the rabbi trust. The rabbi trust is considered a VIE. We are considered the primary beneficiary of the rabbi trust because we direct the activities of the trust and are the beneficiary of the trust. At September 30, 2020, the value of the assets held in the rabbi trust was $45 million, which is included in the Other line within assets on our Balance Sheets.

BUSINESS SEGMENTS

9 Months Ended

Sep. 30, 2020

Segment Reporting [Abstract]

Business segments


17.			BUSINESS SEGMENTS

We define our reportable segments based on the way in which the chief operating decision maker (“CODM”), currently our chief executive officer, manages the operations of the Company for purposes of allocating resources and assessing performance. We operate in two operating and reportable business segments:

•Vacation Ownership includes a diverse portfolio of resorts that includes seven vacation ownership brands licensed under exclusive, long-term relationships with Marriott International and Hyatt Hotels Corporation. We are the exclusive worldwide developer, marketer, seller and manager of vacation ownership and related products under the Marriott Vacation Club, Grand Residences by Marriott, Sheraton Vacation Club, Westin Vacation Club and Hyatt Residence Club brands, as well as under Marriott Vacation Club Pulse, an extension to the Marriott Vacation Club brand. We are also the exclusive worldwide developer, marketer and seller of vacation ownership and related products under The Ritz-Carlton Destination Club brand, we have the non-exclusive right to develop, market and sell whole ownership residential products under The Ritz-Carlton Residences brand and we have a license to use the St. Regis brand for specified fractional ownership resorts.

Our Vacation Ownership segment generates most of its revenues from four primary sources: selling vacation ownership products; managing vacation ownership resorts, clubs and owners’ associations; financing consumer purchases of vacation ownership products; and renting vacation ownership inventory.

•Exchange & Third-Party Management includes exchange networks and membership programs, as well as management of resorts and lodging properties. We provide these services through a variety of brands including Interval International, Trading Places International, Vacation Resorts International, and Aqua-Aston. Exchange & Third-Party Management revenue generally is fee-based and derived from membership, exchange and rental transactions, property and association management, and other related products and services.

Our CODM evaluates the performance of our segments based primarily on the results of the segment without allocating corporate expenses or income taxes. We do not allocate corporate interest expense or indirect general and administrative expenses to our segments. We include interest income specific to segment activities within the appropriate segment. We allocate depreciation, other gains and losses, equity in earnings or losses from our joint ventures and noncontrolling interest to each of our segments as appropriate. Corporate and other represents that portion of our results that are not allocable to our segments, including those relating to property owners’ associations consolidated under the voting interest model, as our CODM does not use this information to make operating segment resource allocations. Prior year segment information has been reclassified to conform to the current reportable segment presentation.

Our CODM uses Adjusted EBITDA to evaluate the profitability of our operating segments, and the components of net income attributable to common shareholders excluded from Adjusted EBITDA are not separately evaluated. Adjusted EBITDA is defined as net income attributable to common shareholders, before interest expense (excluding consumer financing interest expense associated with term loan securitization transactions), income taxes, depreciation and amortization, excluding share-based compensation expense and adjusted for certain items that affect the comparability of our operating performance. Our reconciliation of the aggregate amount of Adjusted EBITDA for our reportable segments to consolidated net (loss) income attributable to common shareholders is presented below.

Revenues


	Three Months Ended				Nine Months Ended
($ in millions)	September 30, 2020		September 30, 2019		September 30, 2020		September 30, 2019
Vacation Ownership	$	571	$	940	$	1,884	$	2,769
Exchange & Third-Party Management	71		111		236		351
Total segment revenues	642		1,051		2,120		3,120
Corporate and other	7		15		19		23
	$	649	$	1,066	$	2,139	$	3,143

Adjusted EBITDA and Reconciliation to Net (Loss) Income Attributable to Common Shareholders


	Three Months Ended				Nine Months Ended
($ in millions)	September 30, 2020		September 30, 2019		September 30, 2020		September 30, 2019
Adjusted EBITDA Vacation Ownership	$	28	$	195	$	156	$	570
Adjusted EBITDA Exchange & Third-Party Management	31		45		91		145
Reconciling items:
Corporate and other	(24)		(50)		(84)		(164)
Interest expense	(37)		(31)		(112)		(100)
Tax benefit (provision)	14		(10)		91		(50)
Depreciation and amortization	(30)		(33)		(93)		(106)
Share-based compensation expense	(11)		(9)		(24)		(29)
Certain items	(33)		(116)		(263)		(202)
Net (loss) income attributable to common shareholders	$	(62)	$	(9)	$	(238)	$	64

Assets


($ in millions)	At September 30, 2020		At December 31, 2019
Vacation Ownership	$	6,936	$	7,345
Exchange & Third-Party Management	974		1,162
Total segment assets	7,910		8,507
Corporate and other	1,101		707
	$	9,011	$	9,214

We conduct business globally, and our operations outside the United States represented approximately 8 percent and 12 percent of our revenues, excluding cost reimbursements, for the three months ended September 30, 2020 and September 30, 2019, respectively, and 10 percent and 11 percent of our revenues, excluding cost reimbursements, for the nine months ended September 30, 2020 and September 30, 2019, respectively.

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 2: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
-Topic 280
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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Reference 6: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

SIGNIFICANT ACCOUNTING POLICIES AND RECENT ACCOUNTING STANDARDS (Policies)	9 Months Ended
	Sep. 30, 2020
Accounting Policies [Abstract]
New accounting pronouncements	New Accounting Standards Accounting Standards Update 2016-13 – “Financial Instruments – Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments” (“ASU 2016-13”) In the first quarter of 2020, we adopted ASU 2016-13, which replaces the incurred loss impairment methodology in current GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. The update is intended to provide financial statement users with more decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date. The current expected credit loss model provides that an initial estimate of expected credit losses over the contractual life of the financial instrument is reflected in the allowance for credit losses and any changes to that estimate are recognized as adjustments to the allowance. ASU 2016-13 did not have a material impact on our financial statements or disclosures upon adoption. Vacation Ownership Notes Receivable Our originated vacation ownership notes receivable are recorded net of a reserve that is calculated in accordance with ASC 606, so there was no material impact upon adoption of ASU 2016-13. Our acquired vacation ownership notes receivable have historically been accounted for using the expected cash flow method of recognizing discount accretion based on the expected cash flows of those instruments. Upon adoption of ASU 2016-13, we established a reserve for credit losses and a corresponding increase in the book value of the acquired vacation ownership notes receivable, resulting in no impact to the recorded balance. In addition, we recorded a noncredit discount of $2 million, which represents the difference between the amortized cost basis and the par value of our acquired vacation ownership notes receivable. The noncredit discount will be amortized to interest expense over the contractual life of the acquired vacation ownership notes receivable and is recorded as Financing expenses on our Income Statements. For additional information on our vacation ownership notes receivable, including information on the related reserves, see Footnote 6 “Vacation Ownership Notes Receivable.” Accounts Receivable Our Accounts receivable include amounts due from customers, principally credit card receivables, and amounts due from resort developers, members and managed properties. These amounts are typically due within one year and are presented net of an allowance for credit losses. Subsequent to our adoption of ASU 2016-13, we estimate expected credit losses for our accounts receivable by considering a number of factors, including previous loss history and the condition of the general economy, as well as any other significant events that may impact the collectibility of the specific accounts receivable. Accounts receivable also includes interest receivable on vacation ownership notes receivable. Write-offs of interest receivable are recorded as a reversal of previously recorded interest income. There was no material impact to our financial statements or disclosures as a result of our adoption of ASU 2016-13 for accounts receivable, and no material change in our allowance for credit losses during the first nine months of 2020. Securities and Exchange Commission (“SEC”) Final Rule Release No. 33-10762, Financial Disclosures About Guarantors and Issuers of Guaranteed Securities and Affiliates Whose Securities Collateralize a Registrant’s Securities (“SEC Final Rule”) In March 2020, the SEC issued the SEC Final Rule which simplifies the disclosure requirements related to registered securities under Rule 3-10 of Regulation S-X. The SEC Final Rule replaces the requirement for a parent entity to provide detailed disclosures regarding guarantors of registered debt offerings within the footnotes to the consolidated financial statements. Under the SEC Final Rule, a parent entity is required to present summarized financial information of the issuers’ and guarantors’ balance sheets and statements of operations on a consolidated basis. It also requires qualitative disclosures with respect to information about guarantors and the terms and conditions of guarantees. These disclosures may be provided outside the footnotes to a company’s consolidated financial statements. We early adopted the reporting requirements of the SEC Final Rule in the first quarter of 2020 and elected to provide these disclosures within Item 2: Management’s Discussion and Analysis of Financial Condition and Results of Operations of our Quarterly Report on Form 10-Q.
Future adoption of new accounting standards	Future Adoption of Accounting Standards Accounting Standards Update 2019-12 – “Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes” (“ASU 2019-12”) In December 2019, the FASB issued ASU 2019-12, which amends and simplifies existing guidance in an effort to reduce the complexity of accounting for income taxes while maintaining or enhancing the helpfulness of information provided to financial statement users. This update is effective for fiscal years beginning after December 15, 2020, including interim periods therein, with early adoption permitted. We expect to adopt ASU 2019-12 commencing in fiscal year 2021 and continue to evaluate the impact that adoption of this update will have on our financial statements and disclosures. Accounting Standards Update 2020-04 – “Reference Rate Reform (Topic 848), Facilitation of the Effects of Reference Rate Reform on Financial Reporting” (“ASU 2020-04”) In March 2020, the FASB issued ASU 2020-04, as amended, which provides optional expedients and exceptions to existing guidance on contract modifications and hedge accounting in an effort to ease the financial reporting burdens related to the expected market transition from the LIBOR and other interbank offered rates to alternative reference rates. This update can be adopted no later than December 1, 2022, with early adoption permitted. We expect to adopt ASU 2020-04 in fiscal year 2022 and continue to evaluate the impact that adoption of this update will have on our financial statements and disclosures. Accounting Standards Update 2020-06 – “Debt — Debt With Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging — Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity” (“ASU 2020-06”) In August 2020, the FASB issued ASU 2020-06, which amends and simplifies existing guidance in an effort to reduce the complexity of accounting for convertible instruments and to provide financial statement users with more meaningful information. ASU 2020-06 is effective for fiscal years beginning after December 15, 2021, including interim periods therein, with early adoption permitted. This update may be applied retrospectively or on a modified retrospective basis with the cumulative effect recognized as an adjustment to the opening balance of retained earnings on the date of adoption. Additionally, this update provides for a one-time irrevocable election by entities to apply the fair value option in accordance with ASC 825-10 for any liability-classified convertible securities, with the difference between the carrying amount and the fair value recorded as a cumulative-effect adjustment to opening retained earnings as of the beginning of the period of adoption. We are evaluating the impact that ASU 2020-06, including the timing of implementation, will have on our financial statements and disclosures.

BASIS OF PRESENTATION (Tables)

9 Months Ended

Sep. 30, 2020

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Restructuring and Related Costs

In connection with this plan,we have recorded the following on our Income Statement for both the three and nine months ended September 30, 2020:


($ in millions)	Vacation Ownership		Exchange & Third-Party Management		Corporate and Other		Total
Cost reimbursement revenues	$	5	$	2	$	—	$	7
Cost reimbursement expenses	$	(5)	$	(2)	$	—	$	(7)
Restructuring	$	(11)	$	(3)	$	(6)	$	(20)

REVENUE AND RECEIVABLES (Tables)

9 Months Ended

Sep. 30, 2020

Revenue from Contract with Customer [Abstract]

Disaggregation of revenue

The following tables detail the sources of revenue by segment for the time periods presented.


	Three Months Ended September 30, 2020
($ in millions)	Vacation Ownership		Exchange & Third-Party Management		Corporate and Other		Total
Sale of vacation ownership products	$	98	$	—	$	—	$	98

Ancillary revenues	17		—		—		17
Management fee revenues	37		4		(5)		36
Exchange and other services revenues	28		45		50		123
Management and exchange	82		49		45		176

Rental	46		10		—		56

Cost reimbursements	281		12		(38)		255
Revenue from contracts with customers	507		71		7		585

Financing	64		—		—		64
Total Revenues	$	571	$	71	$	7	$	649


	Three Months Ended September 30, 2019
($ in millions)	Vacation Ownership		Exchange & Third-Party Management		Corporate and Other		Total
Sale of vacation ownership products	$	341	$	—	$	—	$	341

Ancillary revenues	57		1		—		58
Management fee revenues	35		12		(3)		44
Exchange and other services revenues	28		61		47		136
Management and exchange	120		74		44		238

Rental	122		14		(1)		135

Cost reimbursements	286		22		(28)		280
Revenue from contracts with customers	869		110		15		994

Financing	71		1		—		72
Total Revenues	$	940	$	111	$	15	$	1,066


	Nine Months Ended September 30, 2020
($ in millions)	Vacation Ownership		Exchange & Third-Party Management		Corporate and Other		Total
Sale of vacation ownership products	$	409	$	—	$	—	$	409

Ancillary revenues	69		1		—		70
Management fee revenues	113		14		(14)		113
Exchange and other services revenues	85		145		135		365
Management and exchange	267		160		121		548

Rental	180		29		—		209

Cost reimbursements	824		45		(102)		767
Revenue from contracts with customers	1,680		234		19		1,933

Financing	204		2		—		206
Total Revenues	$	1,884	$	236	$	19	$	2,139


	Nine Months Ended September 30, 2019
($ in millions)	Vacation Ownership		Exchange & Third-Party Management		Corporate and Other		Total
Sale of vacation ownership products	$	975	$	—	$	—	$	975

Ancillary revenues	171		3		—		174
Management fee revenues	108		37		(10)		135
Exchange and other services revenues	90		192		117		399
Management and exchange	369		232		107		708

Rental	384		48		—		432

Cost reimbursements	835		68		(84)		819
Revenue from contracts with customers	2,563		348		23		2,934

Financing	206		3		—		209
Total Revenues	$	2,769	$	351	$	23	$	3,143

Revenue, Remaining Performance Obligation

The following tables detail the timing of revenue from contracts with customers by segment for the time periods presented.


	Three Months Ended September 30, 2020
($ in millions)	Vacation Ownership		Exchange & Third-Party Management		Corporate and Other		Total
Services transferred over time	$	394	$	35	$	7	$	436
Goods or services transferred at a point in time	113		36		—		149
Revenue from contracts with customers	$	507	$	71	$	7	$	585


	Three Months Ended September 30, 2019
($ in millions)	Vacation Ownership		Exchange & Third-Party Management		Corporate and Other		Total
Services transferred over time	$	469	$	54	$	15	$	538
Goods or services transferred at a point in time	400		56		—		456
Revenue from contracts with customers	$	869	$	110	$	15	$	994


	Nine Months Ended September 30, 2020
($ in millions)	Vacation Ownership		Exchange & Third-Party Management		Corporate and Other		Total
Services transferred over time	$	1,197	$	119	$	19	$	1,335
Goods or services transferred at a point in time	483		115		—		598
Revenue from contracts with customers	$	1,680	$	234	$	19	$	1,933


	Nine Months Ended September 30, 2019
($ in millions)	Vacation Ownership		Exchange & Third-Party Management		Corporate and Other		Total
Services transferred over time	$	1,405	$	165	$	23	$	1,593
Goods or services transferred at a point in time	1,158		183		—		1,341
Revenue from contracts with customers	$	2,563	$	348	$	23	$	2,934

Contract with customer, asset and liability

The following table shows the composition of our receivables from contracts with customers and contract liabilities. We had no contract assets at either September 30, 2020 or December 31, 2019.


($ in millions)	At September 30, 2020		At December 31, 2019
Receivables from Contracts with Customers
Accounts receivable	$	147	$	166
Vacation ownership notes receivable, net	1,913		2,233
	$	2,060	$	2,399
Contract Liabilities
Advance deposits	$	154	$	187
Deferred revenue	488		433
	$	642	$	620

Accounts and nontrade receivable

The following table shows the composition of our accounts receivable balances:


($ in millions)	At September 30, 2020		At December 31, 2019
Receivables from contracts with customers	$	147	$	166
Interest receivable	13		16
Tax receivable	76		82
Indemnification asset	15		38
Other	21		21
	$	272	$	323

INCOME TAXES (Tables)

9 Months Ended

Sep. 30, 2020

Income Tax Disclosure [Abstract]

Schedule of unrecognized tax benefits

The following table summarizes the activity related to our unrecognized tax benefits (excluding interest and penalties) during the nine months ended September 30, 2020.


($ in millions)	Unrecognized Tax Benefits
Balance at December 31, 2019	$	21
Increases related to tax positions taken during the current period	1
Decreases related to settlements with taxing authorities	(14)
Decreases related to tax positions taken during a prior period	(1)
Balance at September 30, 2020	$	7

VACATION OWNERSHIP NOTES RECEIVABLE (Tables)

9 Months Ended

Sep. 30, 2020

Accounts, Notes, Loans and Financing Receivable [Line Items]

Composition of vacation ownership notes receivable balances, net of reserves

The following table shows the composition of our vacation ownership notes receivable balances, net of reserves.


	September 30, 2020						December 31, 2019
($ in millions)	Originated		Acquired		Total		Originated		Acquired		Total
Securitized	$	1,348	$	302	$	1,650	$	1,378	$	372	$	1,750
Non-securitized
Eligible for securitization(1)	52		2		54		155		10		165
Not eligible for securitization(1)	176		33		209		261		57		318
Subtotal	228		35		263		416		67		483
	$	1,576	$	337	$	1,913	$	1,794	$	439	$	2,233

_________________________

(1)Refer to Footnote 7 “Financial Instruments” for a discussion of eligibility of our vacation ownership notes receivable for securitization.

Interest income associated with vacation ownership notes receivable

The following table summarizes interest income associated with vacation ownership notes receivable.


	Three Months Ended				Nine Months Ended
($ in millions)	September 30, 2020		September 30, 2019		September 30, 2020		September 30, 2019
Interest income associated with vacation ownership notes receivable — securitized	$	59	$	58	$	186	$	176
Interest income associated with vacation ownership notes receivable — non-securitized	4		11		13		25
Total interest income associated with vacation ownership notes receivable	$	63	$	69	$	199	$	201

Future principal payments, net of reserves, and interest rates of vacation ownership notes receivable

The following table shows future contractual principal payments, as well as interest rates, for our non-securitized and securitized acquired vacation ownership notes receivable at September 30, 2020.


	Acquired Vacation Ownership Notes Receivable
($ in millions)	Non-Securitized		Securitized		Total
2020, remaining	$	1	$	14	$	15
2021	4		41		45
2022	4		41		45
2023	4		40		44
2024	4		38		42
Thereafter	18		128		146
Balance at September 30, 2020	$	35	$	302	$	337
Weighted average stated interest rate	13.4%		13.5%		13.4%
Range of stated interest rates	3.0% to 17.9%		6.0% to 15.9%		3.0% to 17.9%

The following table shows future principal payments, net of reserves, as well as interest rates, for our originated non-securitized and securitized originated vacation ownership notes receivable at September 30, 2020.


	Originated Vacation Ownership Notes Receivable
($ in millions)	Non-Securitized		Securitized		Total
2020, remaining	$	10	$	34	$	44
2021	31		135		166
2022	26		138		164
2023	21		139		160
2024	19		148		167
Thereafter	121		754		875
Balance at September 30, 2020	$	228	$	1,348	$	1,576
Weighted average stated interest rate	12.3%		12.7%		12.6%
Range of stated interest rates	0.0% to 18.0%		0.0% to 17.5%		0.0% to 18.0%

Financing receivable, nonaccrual

The following table shows our recorded investment in non-accrual Legacy-MVW vacation ownership notes receivable, which are vacation ownership notes receivable that are 90 days or more past due.


	Legacy-MVW Vacation Ownership Notes Receivable
($ in millions)	Non-Securitized		Securitized		Total
Investment in vacation ownership notes receivable on non-accrual status at September 30, 2020	$	86	$	11	$	97
Investment in vacation ownership notes receivable on non-accrual status at December 31, 2019	$	43	$	11	$	54

The following table shows our recorded investment in non-accrual Legacy-ILG vacation ownership notes receivable, which are vacation ownership notes receivable that are 90 days or more past due.


	Legacy-ILG Vacation Ownership Notes Receivable
($ in millions)	Non-Securitized		Securitized		Total
Investment in vacation ownership notes receivable on non-accrual status at September 30, 2020	$	96	$	12	$	108
Investment in vacation ownership notes receivable on non-accrual status at December 31, 2019	$	40	$	9	$	49

Aging of recorded investment in principal, before reserves, in vacation ownership notes receivable

The following table shows the aging of the recorded investment in principal, before reserves, in Legacy-MVW vacation ownership notes receivable as of September 30, 2020.


	Legacy-MVW Vacation Ownership Notes Receivable
($ in millions)	Non-Securitized		Securitized		Total
31 – 90 days past due	$	8	$	27	$	35
91 – 150 days past due	5		12		17
Greater than 150 days past due	80		—		80
Total past due	93		39		132
Current	167		1,122		1,289
Total vacation ownership notes receivable	$	260	$	1,161	$	1,421

The following table shows the aging of the recorded investment in principal, before reserves, in Legacy-MVW vacation ownership notes receivable as of December 31, 2019.


	Legacy-MVW Vacation Ownership Notes Receivable
($ in millions)	Non-Securitized		Securitized		Total
31 – 90 days past due	$	7	$	33	$	40
91 – 150 days past due	4		11		15
Greater than 150 days past due	39		—		39
Total past due	50		44		94
Current	222		1,254		1,476
Total vacation ownership notes receivable	$	272	$	1,298	$	1,570

The following table shows the aging of the recorded investment in principal, before reserves, in Legacy-ILG vacation ownership notes receivable as of September 30, 2020.


	Legacy-ILG Vacation Ownership Notes Receivable
($ in millions)	Non-Securitized		Securitized		Total
31 – 90 days past due	$	7	$	22	$	29
91 – 120 days past due	3		7		10
Greater than 120 days past due	93		5		98
Total past due	103		34		137
Current	85		606		691
Total vacation ownership notes receivable	$	188	$	640	$	828

The following table shows the aging of the recorded investment in principal, before reserves, in Legacy-ILG vacation ownership notes receivable as of December 31, 2019.


	Legacy-ILG Vacation Ownership Notes Receivable
($ in millions)	Non-Securitized		Securitized		Total
31 – 90 days past due	$	11	$	18	$	29
91 – 120 days past due	3		6		9
Greater than 120 days past due	37		3		40
Total past due	51		27		78
Current	250		539		789
Total vacation ownership notes receivable	$	301	$	566	$	867

Schedule of financing receivable

The following table details the origination year of our Legacy-MVW vacation ownership notes receivable as of September 30, 2020.


	Legacy-MVW Vacation Ownership Notes Receivable
($ in millions)	Non-Securitized		Securitized		Total
Year of Origination
2020	$	84	$	90	$	174
2019	72		419		491
2018	40		278		318
2017	20		167		187
2016	10		78		88
2015 and Prior	34		129		163
	$	260	$	1,161	$	1,421

Financing receivable credit quality indicators


	Acquired Vacation Ownership Notes Receivable as of September 30, 2020
($ in millions)	700 +		600 - 699		< 600		No Score		Total
Westin	$	91	$	52	$	4	$	11	$	158
Sheraton	87		77		14		33		211
Hyatt	13		9		1		1		24
Other	2		1		—		2		5
	$	193	$	139	$	19	$	47	$	398


	Acquired Vacation Ownership Notes Receivable as of December 31, 2019
($ in millions)	700 +		600 - 699		< 600		No Score		Total
Westin	$	103	$	57	$	4	$	13	$	177
Sheraton	95		83		15		37		230
Hyatt	15		10		1		—		26
Other	3		1		—		2		6
	$	216	$	151	$	20	$	52	$	439


	Acquired Vacation Ownership Notes Receivable - Westin
($ in millions)	2020		2019		2018		2017		2016		2015 & Prior		Total
700 +	$	—	$	—	$	25	$	25	$	15	$	26	$	91
600 - 699	—		—		12		14		10		16		52
< 600	—		—		2		1		—		1		4
No Score	—		—		3		2		2		4		11
	$	—	$	—	$	42	$	42	$	27	$	47	$	158


	Acquired Vacation Ownership Notes Receivable - Sheraton
($ in millions)	2020		2019		2018		2017		2016		2015 & Prior		Total
700 +	$	—	$	—	$	25	$	24	$	15	$	23	$	87
600 - 699	—		—		20		20		13		24		77
< 600	—		—		8		3		1		2		14
No Score	—		—		9		9		6		9		33
	$	—	$	—	$	62	$	56	$	35	$	58	$	211


	Acquired Vacation Ownership Notes Receivable - Hyatt and Other
($ in millions)	2020		2019		2018		2017		2016		2015 & Prior		Total
700 +	$	—	$	—	$	3	$	3	$	3	$	6	$	15
600 - 699	—		—		2		2		2		4		10
< 600	—		—		—		—		—		1		1
No Score	—		—		—		—		—		3		3
	$	—	$	—	$	5	$	5	$	5	$	14	$	29


	Originated Vacation Ownership Notes Receivable as of September 30, 2020
($ in millions)	700 +		600 - 699		< 600		No Score		Total
Westin	$	105	$	51	$	5	$	19	$	180
Sheraton	101		69		16		41		227
Hyatt	15		7		1		—		23
	$	221	$	127	$	22	$	60	$	430


	Originated Vacation Ownership Notes Receivable as of December 31, 2019
($ in millions)	700 +		600 - 699		< 600		No Score		Total
Westin	$	122	$	46	$	5	$	25	$	198
Sheraton	97		61		13		37		208
Hyatt	16		6		—		—		22
	$	235	$	113	$	18	$	62	$	428


	Originated Vacation Ownership Notes Receivable - Westin
($ in millions)	2020		2019		2018		2017		2016		2015 & Prior		Total
700 +	$	24	$	66	$	15	$	—	$	—	$	—	$	105
600 - 699	10		33		8		—		—		—		51
< 600	2		3		—		—		—		—		5
No Score	6		11		2		—		—		—		19
	$	42	$	113	$	25	$	—	$	—	$	—	$	180


	Originated Vacation Ownership Notes Receivable - Sheraton
($ in millions)	2020		2019		2018		2017		2016		2015 & Prior		Total
700 +	$	23	$	61	$	17	$	—	$	—	$	—	$	101
600 - 699	15		42		12		—		—		—		69
< 600	4		10		2		—		—		—		16
No Score	9		26		6		—		—		—		41
	$	51	$	139	$	37	$	—	$	—	$	—	$	227


	Originated Vacation Ownership Notes Receivable - Hyatt
($ in millions)	2020		2019		2018		2017		2016		2015 & Prior		Total
700 +	$	3	$	10	$	2	$	—	$	—	$	—	$	15
600 - 699	1		4		2		—		—		—		7
< 600	1		—		—		—		—		—		1
No Score	—		—		—		—		—		—		—
	$	5	$	14	$	4	$	—	$	—	$	—	$	23

Acquired

Accounts, Notes, Loans and Financing Receivable [Line Items]

Notes receivable reserves

The following table summarizes the activity related to our acquired vacation ownership notes receivable reserve.


	Acquired Vacation Ownership Notes Receivable Reserve
($ in millions)	Non-Securitized		Securitized		Total
Balance at December 31, 2019, as reported	$	—	$	—	$	—
Impact of adoption of ASU 2016-13	29		26		55
Opening Balance at January 1, 2020	29		26		55
Securitizations	(1)		1		—
Clean-up call	1		(1)		—
Write-offs	(16)		—		(16)
Recoveries	8		—		8
Increase in vacation ownership notes receivable reserve(1)	14		—		14
Balance at September 30, 2020	$	35	$	26	$	61

_________________________

Originated

Accounts, Notes, Loans and Financing Receivable [Line Items]

Notes receivable reserves

The following table summarizes the activity related to our originated vacation ownership notes receivable reserve.


	Originated Vacation Ownership Notes Receivable Reserve
($ in millions)	Non-Securitized		Securitized		Total
Balance at December 31, 2019	$	90	$	114	$	204
Increase in vacation ownership notes receivable reserve(1)	49		48		97
Securitizations	(70)		70		—
Clean-up call	37		(37)		—
Write-offs	(27)		—		(27)
Defaulted vacation ownership notes receivable repurchase activity(2)	72		(72)		—
Balance at September 30, 2020	$	151	$	123	$	274

_________________________

FINANCIAL INSTRUMENTS (Tables)

9 Months Ended

Sep. 30, 2020

Investments, All Other Investments [Abstract]

Carrying values and estimated fair values of financial assets and liabilities


	At September 30, 2020				At December 31, 2019
($ in millions)	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Vacation ownership notes receivable	$	1,913	$	1,951	$	2,233	$	2,264
Other assets	51		51		45		45
Total financial assets	$	1,964	$	2,002	$	2,278	$	2,309

Securitized debt, net	$	(1,751)	$	(1,811)	$	(1,871)	$	(1,924)
2025 Notes, net	(493)		(517)		—		—
2026 Notes, net	(743)		(767)		(742)		(824)
2028 Notes, net	(346)		(333)		(345)		(358)
Term Loan, net	(876)		(846)		(881)		(899)
Revolving Corporate Credit Facility, net	—		—		(27)		(27)
Convertible Notes, net	(213)		(227)		(207)		(247)
Total financial liabilities	$	(4,422)	$	(4,501)	$	(4,073)	$	(4,279)

Vacation Ownership Notes Receivable


	At September 30, 2020				At December 31, 2019
($ in millions)	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Vacation ownership notes receivable
Securitized	$	1,650	$	1,684	$	1,750	$	1,771

Eligible for securitization	54		58		165		175
Not eligible for securitization	209		209		318		318
Non-securitized	263		267		483		493
	$	1,913	$	1,951	$	2,233	$	2,264

EARNINGS PER SHARE (Tables)

9 Months Ended

Sep. 30, 2020

Earnings Per Share [Abstract]

Reconciliation of earnings and number of shares used in calculation of basic and diluted earnings per share

The table below illustrates the reconciliation of the earnings and number of shares used in our calculation of basic and diluted (loss) earnings per share attributable to common shareholders.


	Three Months Ended				Nine Months Ended
(in millions, except per share amounts)	September 30, 2020		September 30, 2019		September 30, 2020		September 30, 2019(1)
Computation of Basic (Loss) Earnings Per Share Attributable to Common Shareholders
Net (loss) income attributable to common shareholders	$	(62)	$	(9)	$	(238)	$	64
Shares for basic (loss) earnings per share	41.2		43.4		41.3		44.5
Basic (loss) earnings per share	$	(1.51)	$	(0.21)	$	(5.76)	$	1.44
Computation of Diluted (Loss) Earnings Per Share Attributable to Common Shareholders
Net (loss) income attributable to common shareholders	$	(62)	$	(9)	$	(238)	$	64
Shares for basic (loss) earnings per share	41.2		43.4		41.3		44.5
Effect of dilutive shares outstanding
Employee stock options and SARs	—		—		—		0.3
Restricted stock units	—		—		—		0.3
Shares for diluted (loss) earnings per share	41.2		43.4		41.3		45.1
Diluted (loss) earnings per share	$	(1.51)	$	(0.21)	$	(5.76)	$	1.43

_______________________________

INVENTORY (Tables)

9 Months Ended

Sep. 30, 2020

Inventory Disclosure [Abstract]

Composition of inventory

The following table shows the composition of our inventory balances:


($ in millions)	At September 30, 2020		At December 31, 2019
Finished goods(1)	$	751	$	782
Work-in-progress	—		69
Real estate inventory	751		851
Other	10		8
	$	761	$	859

_________________________

(1)Represents completed inventory that is registered for sale as vacation ownership interests and inventory expected to be acquired pursuant to estimated future foreclosures.

GOODWILL AND INTANGIBLES (Tables)

9 Months Ended

Sep. 30, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of goodwill

The following table details the carrying amount of our goodwill at September 30, 2020 and December 31, 2019, and reflects goodwill attributed to the ILG Acquisition.


($ in millions)	Vacation Ownership Segment		Exchange & Third-Party Management Segment		Total Consolidated
Balance at December 31, 2019	$	2,445	$	447	$	2,892
Impairment	—		(73)		(73)
Foreign exchange adjustments	—		(2)		(2)
Balance at March 31, 2020	2,445		372		2,817
Impairment	—		—		—
Foreign exchange adjustments	—		—		—
Balance at June 30, 2020	2,445		372		2,817
Impairment	—		—		—
Foreign exchange adjustments	—		—		—
Balance at September 30, 2020	$	2,445	$	372	$	2,817

Schedule of indefinite-lived intangible assets

The following table summarizes the activity related to our intangible assets, all of which are related to the Exchange & Third-Party Management segment.


($ in millions)	Trade Names and Trademarks
Balance at December 31, 2019	$	82
Impairment	(18)
Balance at March 31, 2020	64
Impairment	—
Balance at June 30, 2020	64
Impairment	—
Balance at September 30, 2020	$	64

SECURITIZED DEBT (Tables)

9 Months Ended

Sep. 30, 2020

Debt Disclosure [Abstract]

Schedule of securitized vacation ownership debt

The following table provides detail on our securitized debt, net of unamortized debt discount and issuance costs.


($ in millions)	At September 30, 2020		At December 31, 2019
Vacation ownership notes receivable securitizations, gross(1)	$	1,769	$	1,850
Unamortized debt discount and issuance costs	(18)		(18)
	1,751		1,832

Warehouse Credit Facility, gross	—		21
Unamortized debt issuance costs(2)	—		(2)
	—		19

Other	—		20
	$	1,751	$	1,871

_________________________

(1)Interest rates as of September 30, 2020 range from 2.2% to 4.4%, with a weighted average interest rate of 2.7%

(2)Excludes $1 million of unamortized debt issuance costs as of September 30, 2020, as no cash borrowings were outstanding on the Warehouse Credit Facility at that time

Scheduled future principal payments for debt

The following table shows scheduled future principal payments for our securitized debt as of September 30, 2020.


	Vacation Ownership Notes Receivable Securitizations
($ in millions)
Payments Year
2020, remaining	$	46
2021	178
2022	184
2023	189
2024	191
Thereafter	981
	$	1,769

The following table shows scheduled future principal payments for our debt, excluding finance leases, as of September 30, 2020.


($ in millions)	2025 Notes		2026 Notes		2028 Notes		Term Loan		Convertible Notes		Total
Payments Year
2020, remaining	$	—	$	—	$	—	$	2	$	—	$	2
2021	—		—		—		9		—		9
2022	—		—		—		9		230		239
2023	—		—		—		9		—		9
2024	—		—		—		9		—		9
Thereafter	500		750		350		849		—		2,449
	$	500	$	750	$	350	$	887	$	230	$	2,717

DEBT (Tables)

9 Months Ended

Sep. 30, 2020

Debt Disclosure [Abstract]

Debt balances, net of unamortized debt issuance costs

The following table provides detail on our debt balances, net of unamortized debt discount and issuance costs.


($ in millions)		At September 30, 2020		At December 31, 2019
Senior Secured Notes
	2025 Notes	$	500	$	—
	Unamortized debt discount and issuance costs	(7)		—
		493		—

Senior Unsecured Notes
	2026 Notes	750		750
	Unamortized debt discount and issuance costs	(7)		(8)
		743		742

	2028 Notes	350		350
	Unamortized debt discount and issuance costs	(4)		(5)
		346		345

Corporate Credit Facility
	Term Loan	887		893
	Unamortized debt discount and issuance costs	(11)		(12)
		876		881

	Revolving Corporate Credit Facility	—		30
	Unamortized debt issuance costs(1)	—		(3)
		—		27

Convertible Notes		230		230
Unamortized debt discount and issuance costs		(17)		(23)
		213		207

Finance leases		9		14
		$	2,680	$	2,216

_________________________

(1)Excludes $3 million of unamortized debt issuance costs as of September 30, 2020, as no cash borrowings were outstanding on the Revolving Corporate Credit Facility at that time

Scheduled future principal payments for debt

The following table shows scheduled future principal payments for our securitized debt as of September 30, 2020.


	Vacation Ownership Notes Receivable Securitizations
($ in millions)
Payments Year
2020, remaining	$	46
2021	178
2022	184
2023	189
2024	191
Thereafter	981
	$	1,769

The following table shows scheduled future principal payments for our debt, excluding finance leases, as of September 30, 2020.


($ in millions)	2025 Notes		2026 Notes		2028 Notes		Term Loan		Convertible Notes		Total
Payments Year
2020, remaining	$	—	$	—	$	—	$	2	$	—	$	2
2021	—		—		—		9		—		9
2022	—		—		—		9		230		239
2023	—		—		—		9		—		9
2024	—		—		—		9		—		9
Thereafter	500		750		350		849		—		2,449
	$	500	$	750	$	350	$	887	$	230	$	2,717

Schedule of cash flow hedges included in accumulated other comprehensive income (loss)

The following table reflects the activity in accumulated other comprehensive loss related to our derivative instruments:


($ in millions)	2020		2019
Derivative instrument adjustment balance, January 1	$	(21)	$	(6)
Other comprehensive loss before reclassifications	(24)		(3)
Reclassification to Income Statement	—		—
Net other comprehensive loss	(24)		(3)
Derivative instrument adjustment balance, March 31	(45)		(9)
Other comprehensive loss before reclassifications	(1)		(13)
Reclassification to Income Statement	—		—
Net other comprehensive loss	(1)		(13)
Derivative instrument adjustment balance, June 30	(46)		(22)
Other comprehensive gain (loss) before reclassifications	3		(4)
Reclassification to Income Statement	—		—
Net other comprehensive loss	3		(4)
Derivative instrument adjustment balance, September 30	$	(43)	$	(26)

Convertible debt

The following table shows the net carrying value of the Convertible Notes.


($ in millions)	At September 30, 2020		At December 31, 2019
Liability component
Principal amount	$	230	$	230
Unamortized debt discount	(15)		(20)
Unamortized debt issuance costs	(2)		(3)
Net carrying amount of the liability component	$	213	$	207

Carrying amount of equity component, net of issuance costs	$	33	$	33

The following table shows interest expense information related to the Convertible Notes.


	Three Months Ended				Nine Months Ended
($ in millions)	September 30, 2020		September 30, 2019		September 30, 2020		September 30, 2019
Contractual interest expense	$	1	$	1	$	3	$	2
Amortization of debt discount	1		2		5		5
Amortization of debt issuance costs	—		—		1		1
	$	2	$	3	$	9	$	8

SHAREHOLDERS' EQUITY (Tables)

9 Months Ended

Sep. 30, 2020

Equity [Abstract]

Stock repurchase activity under current stock repurchase program

The following table summarizes share repurchase activity under our current share repurchase program:


($ in millions, except per share amounts)	Number of Shares Repurchased	Cost of Shares Repurchased		Average Price Paid per Share
As of December 31, 2019	16,418,950	$	1,258	$	76.60
For the first three quarters of 2020	769,935	82		106.60
As of September 30, 2020	17,188,885	$	1,340	$	77.95

Cash dividend declared

We declared cash dividends to holders of common stock during the first three quarters of 2020 as follows:

Declaration Date

Shareholder Record Date

Distribution Date

Dividend per Share

February 14, 2020

February 27, 2020

March 12, 2020

$0.54

SHARE-BASED COMPENSATION (Tables)

9 Months Ended

Sep. 30, 2020

Share-based Payment Arrangement [Abstract]

Schedule of compensation cost for share-based payment arrangements, allocation of share-based compensation costs by plan

The following table details our share-based compensation expense related to award grants to our officers, directors, and employees:


	Three Months Ended				Nine Months Ended
($ in millions)	September 30, 2020		September 30, 2019		September 30, 2020		September 30, 2019
Service-based RSUs	$	5	$	4	$	16	$	13
Performance-based RSUs	4		3		3		6
ILG Acquisition Converted RSUs	1		2		2		8
	10		9		21		27
SARs	1		—		3		2
Stock options	—		—		—		—
	$	11	$	9	$	24	$	29

Schedule of unrecognized compensation cost, nonvested awards

The following table details our deferred compensation costs related to unvested awards:


($ in millions)	At September 30, 2020		At December 31, 2019
Service-based RSUs	$	23	$	17
Performance-based RSUs	6		10
ILG Acquisition Converted RSUs	1		3
	30		30
SARs	2		1
Stock options	—		—
	$	32	$	31

Assumptions used to estimate fair value of grants

The following table outlines the assumptions used to estimate the fair value of grants during the first three quarters of 2020:


Expected volatility			38.81%
Dividend yield			2.13%
Risk-free rate			0.96%
Expected term (in years)			6.25

VARIABLE INTEREST ENTITIES (Tables)

9 Months Ended

Sep. 30, 2020

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Classifications of consolidated vie assets and liabilities

The following table shows consolidated assets, which are collateral for the obligations of these VIEs, and consolidated liabilities included on our Balance Sheet at September 30, 2020:


($ in millions)	Vacation Ownership Notes Receivable Securitizations		Warehouse Credit Facility		Total
Consolidated Assets
Vacation ownership notes receivable, net of reserves	$	1,650	$	—	$	1,650
Interest receivable	12		—		12
Restricted cash	69		—		69
Total	$	1,731	$	—	$	1,731
Consolidated Liabilities
Interest payable	$	2	$	—	$	2
Securitized Debt	1,769		—		1,769
Total	$	1,771	$	—	$	1,771

Interest income and expense recognized as a result of our involvement with variable interest entities

The following table shows the interest income and expense recognized as a result of our involvement with these VIEs during the third quarter of 2020:


($ in millions)	Vacation Ownership Notes Receivable Securitizations		Warehouse Credit Facility		Total
Interest income	$	59	$	—	$	59
Interest expense to investors	$	14	$	1	$	15
Debt issuance cost amortization	$	1	$	1	$	2
Administrative expenses	$	1	$	—	$	1

The following table shows the interest income and expense recognized as a result of our involvement with these VIEs during the first three quarters of 2020:


($ in millions)	Vacation Ownership Notes Receivable Securitizations		Warehouse Credit Facility		Total
Interest income	$	168	$	18	$	186
Interest expense to investors	$	39	$	4	$	43
Debt issuance cost amortization	$	5	$	1	$	6
Administrative expenses	$	1	$	—	$	1

Cash flows between company and variable interest entities

The following table shows cash flows between us and the vacation ownership notes receivable securitization VIEs:


	Nine Months Ended
($ in millions)	September 30, 2020		September 30, 2019
Cash Inflows
Net proceeds from vacation ownership notes receivable securitizations	$	371	$	445
Principal receipts	360		355
Interest receipts	166		156
Reserve release	16		107
Total	913		1,063
Cash Outflows
Principal to investors	(370)		(379)
Voluntary repurchases of defaulted vacation ownership notes receivable	(69)		(35)
Voluntary clean-up call	(18)		(19)
Interest to investors	(37)		(36)
Funding of restricted cash	(20)		(93)
Total	(514)		(562)
Net Cash Flows	$	399	$	501

The following table shows cash flows between us and the Warehouse Credit Facility VIE:


	Nine Months Ended
($ in millions)	September 30, 2020		September 30, 2019
Cash Inflows
Proceeds from vacation ownership notes receivable securitizations	$	315	$	181
Principal receipts	34		14
Interest receipts	17		13
Reserve release	2		1
Total	368		209
Cash Outflows
Principal to investors	(33)		(12)
Voluntary repurchases of defaulted vacation ownership notes receivable	(3)		—
Repayment of Warehouse Credit Facility	(300)		(228)
Interest to investors	(4)		(4)
Funding of restricted cash	(2)		(1)
Total	(342)		(245)
Net Cash Flows	$	26	$	(36)

- Definition

Tabular disclosure of the significant judgments and assumptions made in determining whether a variable interest (as defined) held by the entity requires the variable interest entity (VIE) (as defined) to be consolidated and (or) disclose information about its involvement with the VIE, individually or in aggregate (as applicable); the nature of restrictions, if any, on the consolidated VIE's assets and on the settlement of its liabilities reported by an entity in its statement of financial position, including the carrying amounts of such assets and liabilities; the nature of, and changes in, the risks associated with involvement in the VIE; how involvement with the VIE affects the entity's financial position, financial performance, and cash flows; the lack of recourse if creditors (or beneficial interest holders) of the consolidated VIE have no recourse to the general credit of the primary beneficiary (if applicable); the terms of arrangements, giving consideration to both explicit arrangements and implicit variable interests, if any, that could require the entity to provide financial support to the VIE, including events or circumstances that could expose the entity to a loss; the methodology used by the entity for determining whether or not it is the primary beneficiary of the variable interest entity; the significant factors considered and judgments made in determining that the power to direct the activities of a VIE that most significantly impact the VIE's economic performance are shared (as defined); the carrying amounts and classification of assets and liabilities of the VIE included in the statement of financial position; the entity's maximum exposure to loss, if any, as a result of its involvement with the VIE, including how the maximum exposure is determined and significant sources of the entity's exposure to the VIE; a comparison of the carrying amounts of the assets and liabilities and the entity's maximum exposure to loss; information about any liquidity arrangements, guarantees, and (or) other commitments by third parties that may affect the fair value or risk of the entity's variable interest in the VIE; whether or not the entity has provided financial support or other support (explicitly or implicitly) to the VIE that it was not previously contractually required to provide or whether the entity intends to provide that support, including the type and amount of the support and the primary reasons for providing the support; and supplemental information the entity determines necessary to provide.

+ References + Details

BUSINESS SEGMENTS (Tables)

9 Months Ended

Sep. 30, 2020

Segment Reporting [Abstract]

Revenues


	Three Months Ended				Nine Months Ended
($ in millions)	September 30, 2020		September 30, 2019		September 30, 2020		September 30, 2019
Vacation Ownership	$	571	$	940	$	1,884	$	2,769
Exchange & Third-Party Management	71		111		236		351
Total segment revenues	642		1,051		2,120		3,120
Corporate and other	7		15		19		23
	$	649	$	1,066	$	2,139	$	3,143

Adjusted EBITDA reconciling items from segments

Adjusted EBITDA and Reconciliation to Net (Loss) Income Attributable to Common Shareholders


	Three Months Ended				Nine Months Ended
($ in millions)	September 30, 2020		September 30, 2019		September 30, 2020		September 30, 2019
Adjusted EBITDA Vacation Ownership	$	28	$	195	$	156	$	570
Adjusted EBITDA Exchange & Third-Party Management	31		45		91		145
Reconciling items:
Corporate and other	(24)		(50)		(84)		(164)
Interest expense	(37)		(31)		(112)		(100)
Tax benefit (provision)	14		(10)		91		(50)
Depreciation and amortization	(30)		(33)		(93)		(106)
Share-based compensation expense	(11)		(9)		(24)		(29)
Certain items	(33)		(116)		(263)		(202)
Net (loss) income attributable to common shareholders	$	(62)	$	(9)	$	(238)	$	64

Reconciliation of assets from segments

Assets


($ in millions)	At September 30, 2020		At December 31, 2019
Vacation Ownership	$	6,936	$	7,345
Exchange & Third-Party Management	974		1,162
Total segment assets	7,910		8,507
Corporate and other	1,101		707
	$	9,011	$	9,214

BASIS OF PRESENTATION - Additional Details (Details)	9 Months Ended
BASIS OF PRESENTATION - Additional Details (Details)	Sep. 30, 2020 USD ($) employee	Dec. 31, 2019 USD ($)
Debt Instrument [Line Items]
Percent of the assets, liabilities, revenues, expenses and cash flows discussed	100.00%
Cash and cash equivalents	$ 660,000,000	$ 287,000,000
Workforce Reduction Plan
Debt Instrument [Line Items]
Restructuring, workforce reduction \| employee	3,000
Maximum \| Workforce Reduction Plan
Debt Instrument [Line Items]
Restructuring reserve	$ 30,000,000
Minimum \| Workforce Reduction Plan
Debt Instrument [Line Items]
Restructuring reserve	$ 25,000,000
Exchange & Third-Party Management
Debt Instrument [Line Items]
Resorts open, percent	90.00%
Vacation Ownership
Debt Instrument [Line Items]
Resorts open, percent	95.00%
Sales centers open, percent	80.00%
Corporate credit facility \| Revolving corporate credit facility, net
Debt Instrument [Line Items]
Credit facility	$ 600,000,000
Corporate credit facility \| Revolving Corporate Credit Facility, net
Debt Instrument [Line Items]
Current borrowing capacity	$ 597,000,000

BASIS OF PRESENTATION - Restructuring (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Segment Reporting Information [Line Items]
Revenue from contracts with customers	$ 585	$ 994	$ 1,933	$ 2,934
Restructuring	(20)	0	(20)	0
Workforce Reduction Plan
Segment Reporting Information [Line Items]
Restructuring	(20)
Cost reimbursements
Segment Reporting Information [Line Items]
Revenue from contracts with customers	255	280	767	819
Cost reimbursements	(255)	(280)	(767)	(819)
Cost reimbursements \| Workforce Reduction Plan
Segment Reporting Information [Line Items]
Revenue from contracts with customers	7
Cost reimbursements	(7)
Vacation Ownership
Segment Reporting Information [Line Items]
Revenue from contracts with customers	507	869	1,680	2,563
Exchange & Third-Party Management
Segment Reporting Information [Line Items]
Revenue from contracts with customers	71	110	234	348
Operating segments \| Vacation Ownership \| Workforce Reduction Plan
Segment Reporting Information [Line Items]
Restructuring	(11)
Operating segments \| Vacation Ownership \| Cost reimbursements \| Workforce Reduction Plan
Segment Reporting Information [Line Items]
Revenue from contracts with customers	5
Cost reimbursements	(5)
Operating segments \| Exchange & Third-Party Management \| Workforce Reduction Plan
Segment Reporting Information [Line Items]
Restructuring	(3)
Operating segments \| Exchange & Third-Party Management \| Cost reimbursements \| Workforce Reduction Plan
Segment Reporting Information [Line Items]
Revenue from contracts with customers	2
Cost reimbursements	(2)
Corporate and Other
Segment Reporting Information [Line Items]
Revenue from contracts with customers	7	$ 15	$ 19	$ 23
Corporate and Other \| Workforce Reduction Plan
Segment Reporting Information [Line Items]
Restructuring	(6)
Corporate and Other \| Cost reimbursements \| Workforce Reduction Plan
Segment Reporting Information [Line Items]
Revenue from contracts with customers	0
Cost reimbursements	$ 0

SIGNIFICANT ACCOUNTING POLICIES AND RECENT ACCOUNTING STANDARDS (Details) $ in Millions	Jan. 01, 2020 USD ($)
Accounting Policies [Abstract]
Allowance, purchased with credit deterioration, increase	$ 2

ACQUISITIONS AND DISPOSITIONS - Additional Information (Details) $ in Millions	1 Months Ended	3 Months Ended			9 Months Ended
	Dec. 31, 2019 USD ($)	Sep. 30, 2020 USD ($)	Mar. 31, 2020 USD ($) vacation_ownership_unit	Sep. 30, 2019 USD ($) vacation_ownership_unit	Sep. 30, 2020 USD ($)	Sep. 30, 2019 USD ($) vacation_ownership_unit
Business Acquisition [Line Items]
Purchase of vacation ownership units					$ 61	$ 0
(Losses) gains and other (expense) income, net		$ 0		$ (5)	(42)	5
Dispositions, net					15	$ 0
Note receivable (less than)		1			$ 1
Joint Venture
Business Acquisition [Line Items]
(Losses) gains and other (expense) income, net		(5)
Land
Business Acquisition [Line Items]
(Losses) gains and other (expense) income, net		6
Dispositions, net		$ 15
New York City, New York
Business Acquisition [Line Items]
Number of vacation ownership units acquired \| vacation_ownership_unit			57
Asset acquisition, consideration transferred			$ 89
Purchase of vacation ownership units	$ 20		22
Asset acquisition, recognized identifiable assets acquired, inventory			22
Asset acquisition, recognized identifiable assets acquired, property and equipment			$ 67
San Francisco, California
Business Acquisition [Line Items]
Number of vacation ownership units acquired \| vacation_ownership_unit			34	78		78
Asset acquisition, consideration transferred			$ 26	$ 58
Purchase of vacation ownership units			5
Asset acquisition, recognized identifiable assets acquired, inventory			18	48		$ 48
Asset acquisition, recognized identifiable assets acquired, other assets			5
Asset acquisition, recognized identifiable assets acquired, property and equipment			$ 3	$ 10		$ 10

REVENUE AND RECEIVABLES (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
REVENUE AND RECEIVABLES (Details) - USD ($) $ in Millions	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Cost reimbursements		$ 280		$ 819
Revenue from contracts with customers	$ 585	994	$ 1,933	2,934
Financing	64	72	206	209
Revenues	649	1,066	2,139	3,143
Vacation Ownership
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Cost reimbursements		286		835
Revenue from contracts with customers	507	869	1,680	2,563
Financing	64	71	204	206
Revenues	571	940	1,884	2,769
Exchange & Third-Party Management
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Cost reimbursements		22		68
Revenue from contracts with customers	71	110	234	348
Financing	0	1	2	3
Revenues	71	111	236	351
Vacation ownership products
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Revenue from contracts with customers	98	341	409	975
Vacation ownership products \| Vacation Ownership
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Revenue from contracts with customers	98	341	409	975
Vacation ownership products \| Exchange & Third-Party Management
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Revenue from contracts with customers	0	0	0	0
Ancillary revenues
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Revenue from contracts with customers	17	58	70	174
Ancillary revenues \| Vacation Ownership
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Revenue from contracts with customers	17	57	69	171
Ancillary revenues \| Exchange & Third-Party Management
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Revenue from contracts with customers	0	1	1	3
Management fee revenues
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Revenue from contracts with customers	36	44	113	135
Management fee revenues \| Vacation Ownership
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Revenue from contracts with customers	37	35	113	108
Management fee revenues \| Exchange & Third-Party Management
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Revenue from contracts with customers	4	12	14	37
Exchange and other services revenues
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Revenue from contracts with customers	123	136	365	399
Exchange and other services revenues \| Vacation Ownership
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Revenue from contracts with customers	28	28	85	90
Exchange and other services revenues \| Exchange & Third-Party Management
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Revenue from contracts with customers	45	61	145	192
Management and exchange
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Revenue from contracts with customers	176	238	548	708
Management and exchange \| Vacation Ownership
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Revenue from contracts with customers	82	120	267	369
Management and exchange \| Exchange & Third-Party Management
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Revenue from contracts with customers	49	74	160	232
Rental
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Revenue from contracts with customers	56	135	209	432
Rental \| Vacation Ownership
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Revenue from contracts with customers	46	122	180	384
Rental \| Exchange & Third-Party Management
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Revenue from contracts with customers	10	14	29	48
Cost reimbursements
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Cost reimbursements	255		767
Revenue from contracts with customers	255	280	767	819
Cost reimbursements \| Vacation Ownership
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Cost reimbursements	281		824
Cost reimbursements \| Exchange & Third-Party Management
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Cost reimbursements	12		45
Corporate and Other
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Cost reimbursements		(28)		(84)
Revenue from contracts with customers	7	15	19	23
Financing	0	0	0	0
Revenues	7	15	19	23
Corporate and Other \| Vacation ownership products
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Revenue from contracts with customers	0	0	0	0
Corporate and Other \| Ancillary revenues
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Revenue from contracts with customers	0	0	0	0
Corporate and Other \| Management fee revenues
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Revenue from contracts with customers	(5)	(3)	(14)	(10)
Corporate and Other \| Exchange and other services revenues
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Revenue from contracts with customers	50	47	135	117
Corporate and Other \| Management and exchange
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Revenue from contracts with customers	45	44	121	107
Corporate and Other \| Rental
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Revenue from contracts with customers	0	$ (1)	0	$ 0
Corporate and Other \| Cost reimbursements
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Cost reimbursements	$ (38)		$ (102)

REVENUE AND RECEIVABLES - Timing of Revenue from Contracts with Customers (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Revenue from contracts with customers	$ 585	$ 994	$ 1,933	$ 2,934
Vacation Ownership
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Revenue from contracts with customers	507	869	1,680	2,563
Exchange & Third-Party Management
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Revenue from contracts with customers	71	110	234	348
Services transferred over time
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Revenue from contracts with customers	436	538	1,335	1,593
Services transferred over time \| Vacation Ownership
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Revenue from contracts with customers	394	469	1,197	1,405
Services transferred over time \| Exchange & Third-Party Management
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Revenue from contracts with customers	35	54	119	165
Goods or services transferred at a point in time
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Revenue from contracts with customers	149	456	598	1,341
Goods or services transferred at a point in time \| Vacation Ownership
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Revenue from contracts with customers	113	400	483	1,158
Goods or services transferred at a point in time \| Exchange & Third-Party Management
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Revenue from contracts with customers	36	56	115	183
Corporate and Other
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Revenue from contracts with customers	7	15	19	23
Corporate and Other \| Services transferred over time
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Revenue from contracts with customers	7	15	19	23
Corporate and Other \| Goods or services transferred at a point in time
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Revenue from contracts with customers	$ 0	$ 0	$ 0	$ 0

- Definition

Amount, excluding tax collected from customer, of revenue from satisfaction of performance obligation by transferring promised good or service to customer. Tax collected from customer is tax assessed by governmental authority that is both imposed on and concurrent with specific revenue-producing transaction, including, but not limited to, sales, use, value added and excise.

+ References

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+ Details

REVENUE AND RECEIVABLES - Additional Information (Details) - USD ($)	3 Months Ended	9 Months Ended
	Sep. 30, 2020	Sep. 30, 2020	Dec. 31, 2019
Revenue from Contract with Customer [Abstract]
Performance obligation satisfied in previous period	$ (3,000,000)	$ (58,000,000)
Contract with customer, contract assets	0	0	$ 0
Contract with customer, liability, revenue recognized	$ 69,000,000	$ 231,000,000

REVENUE AND RECEIVABLES - Contracts with Customers, Assets and Liabilities (Details) - USD ($) $ in Millions	Sep. 30, 2020	Dec. 31, 2019
Receivables from Contracts with Customers
Accounts receivable	$ 147	$ 166
Financing Receivable, after Allowance for Credit Loss	1,913	2,233
Receivables from Contracts with Customers	2,060	2,399
Contract Liabilities
Advance deposits	154	187
Deferred revenue	488	433
Contract Liabilities	$ 642	$ 620

REVENUE AND RECEIVABLES - Remaining Performance Obligation Additional Information (Details) - Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-07-01	Sep. 30, 2020
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Revenue remaining performance obligation expected timing (percentage)	80.00%
Expected timing of satisfaction (in years)	2 years

REVENUE AND RECEIVABLES - Accounts Receivable (Details) - USD ($) $ in Millions	Sep. 30, 2020	Dec. 31, 2019
Revenue from Contract with Customer [Abstract]
Receivables from contracts with customers	$ 147	$ 166
Interest receivable	13	16
Tax receivable	76	82
Indemnification asset	15	38
Other	21	21
Accounts Receivable, including VIE, after allowance for credit loss	$ 272	$ 323

INCOME TAXES - Additional Information (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2020	Dec. 31, 2019
Income Tax Contingency [Line Items]
Effective income tax rate, percent	19.80%	404.40%	28.70%	43.20%
Unrecognized tax benefits that would impact effective tax rate	$ 7		$ 7			$ 21
Penalties and interest accrued	18		$ 18			$ 41
Effective income tax rate reconciliation, CARES act, percent			4.40%
Forecast
Income Tax Contingency [Line Items]
Effective income tax rate reconciliation, CARES act, percent					3.90%
Indemnified tax liability
Income Tax Contingency [Line Items]
Penalties and interest accrued	$ 4		$ 4

INCOME TAXES - Unrecognized Tax Benefits (Details) $ in Millions	9 Months Ended
	Sep. 30, 2020 USD ($)
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward]
Unrecognized Tax Benefits, Beginning Balance	$ 21
Increases related to tax positions taken during the current period	1
Decreases related to settlements with taxing authorities	(14)
Decreases related to tax positions taken during a prior period	(1)
Ending balance	$ 7

VACATION OWNERSHIP NOTES RECEIVABLE - Composition of Vacation Ownership Notes Receivable Balances, Net of Reserves (Details) - USD ($) $ in Millions	Sep. 30, 2020	Dec. 31, 2019
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable, after Allowance for Credit Loss	$ 1,913	$ 2,233
Securitized
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable, after Allowance for Credit Loss	1,650	1,750
Eligible for securitization
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable, after Allowance for Credit Loss	54	165
Not eligible for securitization
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable, after Allowance for Credit Loss	209	318
Non-Securitized
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable, after Allowance for Credit Loss	263	483
Originated
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable, after Allowance for Credit Loss	1,576	1,794
Originated \| Securitized
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable, after Allowance for Credit Loss	1,348	1,378
Originated \| Eligible for securitization
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable, after Allowance for Credit Loss	52	155
Originated \| Not eligible for securitization
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable, after Allowance for Credit Loss	176	261
Originated \| Non-Securitized
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable, after Allowance for Credit Loss	228	416
Acquired
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable, after Allowance for Credit Loss	337	439
Acquired \| Securitized
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable, after Allowance for Credit Loss	302	372
Acquired \| Eligible for securitization
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable, after Allowance for Credit Loss	2	10
Acquired \| Not eligible for securitization
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable, after Allowance for Credit Loss	33	57
Acquired \| Non-Securitized
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable, after Allowance for Credit Loss	$ 35	$ 67

VACATION OWNERSHIP NOTES RECEIVABLE - Interest Income Associated With Vacation Ownership Notes Receivable (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Accounts, Notes, Loans and Financing Receivable [Line Items]
Interest income	$ 63	$ 69	$ 199	$ 201
Securitized
Accounts, Notes, Loans and Financing Receivable [Line Items]
Interest income	59	58	186	176
Non-Securitized
Accounts, Notes, Loans and Financing Receivable [Line Items]
Interest income	$ 4	$ 11	$ 13	$ 25

VACATION OWNERSHIP NOTES RECEIVABLE - Notes Receivable Reserves (Details) $ in Millions	9 Months Ended
	Sep. 30, 2020 USD ($)
Time Sharing Transactions, Allowance for Uncollectible Accounts [Roll Forward]
Impact of adoption of ASU 2016-02	us-gaap:AccountingStandardsUpdate201602Member
Originated
Time Sharing Transactions, Allowance for Uncollectible Accounts [Roll Forward]
Beginning balance	$ 204
Increase in vacation ownership notes receivable reserve	97
Securitizations	0
Clean-up call	0
Write-offs	(27)
Financing Receivable, Allowance for Credit Losses, Repurchase Activity	0
Ending balance	274
Acquired
Time Sharing Transactions, Allowance for Uncollectible Accounts [Roll Forward]
Beginning balance	55
Increase in vacation ownership notes receivable reserve	14
Securitizations	0
Clean-up call	0
Write-offs	(16)
Recoveries	8
Ending balance	61
Acquired \| Previously Reported
Time Sharing Transactions, Allowance for Uncollectible Accounts [Roll Forward]
Beginning balance	0
Acquired \| Revision of Prior Period, Accounting Standards Update, Adjustment
Time Sharing Transactions, Allowance for Uncollectible Accounts [Roll Forward]
Beginning balance	55
Non-Securitized \| Originated
Time Sharing Transactions, Allowance for Uncollectible Accounts [Roll Forward]
Beginning balance	90
Increase in vacation ownership notes receivable reserve	49
Securitizations	(70)
Clean-up call	37
Write-offs	(27)
Financing Receivable, Allowance for Credit Losses, Repurchase Activity	72
Ending balance	151
Non-Securitized \| Acquired
Time Sharing Transactions, Allowance for Uncollectible Accounts [Roll Forward]
Beginning balance	29
Increase in vacation ownership notes receivable reserve	14
Securitizations	(1)
Clean-up call	1
Write-offs	(16)
Recoveries	8
Ending balance	35
Non-Securitized \| Acquired \| Previously Reported
Time Sharing Transactions, Allowance for Uncollectible Accounts [Roll Forward]
Beginning balance	0
Non-Securitized \| Acquired \| Revision of Prior Period, Accounting Standards Update, Adjustment
Time Sharing Transactions, Allowance for Uncollectible Accounts [Roll Forward]
Beginning balance	29
Securitized Vacation Ownership Notes Receivable \| Originated
Time Sharing Transactions, Allowance for Uncollectible Accounts [Roll Forward]
Beginning balance	114
Increase in vacation ownership notes receivable reserve	48
Securitizations	70
Clean-up call	(37)
Write-offs	0
Financing Receivable, Allowance for Credit Losses, Repurchase Activity	(72)
Ending balance	123
Securitized Vacation Ownership Notes Receivable \| Acquired
Time Sharing Transactions, Allowance for Uncollectible Accounts [Roll Forward]
Beginning balance	26
Increase in vacation ownership notes receivable reserve	0
Securitizations	1
Clean-up call	(1)
Write-offs	0
Recoveries	0
Ending balance	26
Securitized Vacation Ownership Notes Receivable \| Acquired \| Previously Reported
Time Sharing Transactions, Allowance for Uncollectible Accounts [Roll Forward]
Beginning balance	0
Securitized Vacation Ownership Notes Receivable \| Acquired \| Revision of Prior Period, Accounting Standards Update, Adjustment
Time Sharing Transactions, Allowance for Uncollectible Accounts [Roll Forward]
Beginning balance	26
COVID-19 pandemic \| Originated
Time Sharing Transactions, Allowance for Uncollectible Accounts [Roll Forward]
Increase in vacation ownership notes receivable reserve	42
COVID-19 pandemic \| Acquired
Time Sharing Transactions, Allowance for Uncollectible Accounts [Roll Forward]
Increase in vacation ownership notes receivable reserve	10
COVID-19 pandemic \| Non-Securitized \| Originated
Time Sharing Transactions, Allowance for Uncollectible Accounts [Roll Forward]
Increase in vacation ownership notes receivable reserve	16
COVID-19 pandemic \| Non-Securitized \| Acquired
Time Sharing Transactions, Allowance for Uncollectible Accounts [Roll Forward]
Increase in vacation ownership notes receivable reserve	2
COVID-19 pandemic \| Securitized Vacation Ownership Notes Receivable \| Originated
Time Sharing Transactions, Allowance for Uncollectible Accounts [Roll Forward]
Increase in vacation ownership notes receivable reserve	26
COVID-19 pandemic \| Securitized Vacation Ownership Notes Receivable \| Acquired
Time Sharing Transactions, Allowance for Uncollectible Accounts [Roll Forward]
Increase in vacation ownership notes receivable reserve	$ 8

VACATION OWNERSHIP NOTES RECEIVABLE - Future Principal Payments, Net of Reserves, and Interest Rates of Vacation Ownership Notes Receivable (Details) $ in Millions	Sep. 30, 2020 USD ($)
Acquired
Future Minimum Payments Receivable [Line Items]
2020	$ 15
2021	45
2022	45
2023	44
2024	42
Thereafter	146
Total Vacation ownership notes receivable, net of reserve	337
Acquired \| Non-Securitized
Future Minimum Payments Receivable [Line Items]
2020	1
2021	4
2022	4
2023	4
2024	4
Thereafter	18
Total Vacation ownership notes receivable, net of reserve	35
Acquired \| Securitized Vacation Ownership Notes Receivable
Future Minimum Payments Receivable [Line Items]
2020	14
2021	41
2022	41
2023	40
2024	38
Thereafter	128
Total Vacation ownership notes receivable, net of reserve	$ 302
Acquired \| Weighted Average
Future Minimum Payments Receivable [Line Items]
Time-sharing Transactions, Stated Interest Rate for Notes Receivable	13.40%
Acquired \| Weighted Average \| Non-Securitized
Future Minimum Payments Receivable [Line Items]
Time-sharing Transactions, Stated Interest Rate for Notes Receivable	13.40%
Acquired \| Weighted Average \| Securitized Vacation Ownership Notes Receivable
Future Minimum Payments Receivable [Line Items]
Time-sharing Transactions, Stated Interest Rate for Notes Receivable	13.50%
Acquired \| Minimum
Future Minimum Payments Receivable [Line Items]
Time-sharing Transactions, Stated Interest Rate for Notes Receivable	3.00%
Acquired \| Minimum \| Non-Securitized
Future Minimum Payments Receivable [Line Items]
Time-sharing Transactions, Stated Interest Rate for Notes Receivable	3.00%
Acquired \| Minimum \| Securitized Vacation Ownership Notes Receivable
Future Minimum Payments Receivable [Line Items]
Time-sharing Transactions, Stated Interest Rate for Notes Receivable	6.00%
Acquired \| Maximum
Future Minimum Payments Receivable [Line Items]
Time-sharing Transactions, Stated Interest Rate for Notes Receivable	17.90%
Acquired \| Maximum \| Non-Securitized
Future Minimum Payments Receivable [Line Items]
Time-sharing Transactions, Stated Interest Rate for Notes Receivable	17.90%
Acquired \| Maximum \| Securitized Vacation Ownership Notes Receivable
Future Minimum Payments Receivable [Line Items]
Time-sharing Transactions, Stated Interest Rate for Notes Receivable	15.90%
Originated
Future Minimum Payments Receivable [Line Items]
2020	$ 44
2021	166
2022	164
2023	160
2024	167
Thereafter	875
Total Vacation ownership notes receivable, net of reserve	1,576
Originated \| Non-Securitized
Future Minimum Payments Receivable [Line Items]
2020	10
2021	31
2022	26
2023	21
2024	19
Thereafter	121
Total Vacation ownership notes receivable, net of reserve	228
Originated \| Securitized Vacation Ownership Notes Receivable
Future Minimum Payments Receivable [Line Items]
2020	34
2021	135
2022	138
2023	139
2024	148
Thereafter	754
Total Vacation ownership notes receivable, net of reserve	$ 1,348
Originated \| Weighted Average
Future Minimum Payments Receivable [Line Items]
Time-sharing Transactions, Stated Interest Rate for Notes Receivable	12.60%
Originated \| Weighted Average \| Non-Securitized
Future Minimum Payments Receivable [Line Items]
Time-sharing Transactions, Stated Interest Rate for Notes Receivable	12.30%
Originated \| Weighted Average \| Securitized Vacation Ownership Notes Receivable
Future Minimum Payments Receivable [Line Items]
Time-sharing Transactions, Stated Interest Rate for Notes Receivable	12.70%
Originated \| Minimum
Future Minimum Payments Receivable [Line Items]
Time-sharing Transactions, Stated Interest Rate for Notes Receivable	0.00%
Originated \| Minimum \| Non-Securitized
Future Minimum Payments Receivable [Line Items]
Time-sharing Transactions, Stated Interest Rate for Notes Receivable	0.00%
Originated \| Minimum \| Securitized Vacation Ownership Notes Receivable
Future Minimum Payments Receivable [Line Items]
Time-sharing Transactions, Stated Interest Rate for Notes Receivable	0.00%
Originated \| Maximum
Future Minimum Payments Receivable [Line Items]
Time-sharing Transactions, Stated Interest Rate for Notes Receivable	18.00%
Originated \| Maximum \| Non-Securitized
Future Minimum Payments Receivable [Line Items]
Time-sharing Transactions, Stated Interest Rate for Notes Receivable	18.00%
Originated \| Maximum \| Securitized Vacation Ownership Notes Receivable
Future Minimum Payments Receivable [Line Items]
Time-sharing Transactions, Stated Interest Rate for Notes Receivable	17.50%

VACATION OWNERSHIP NOTES RECEIVABLE - Additional Information (Details) $ in Millions		3 Months Ended		9 Months Ended
	Jan. 01, 2020 USD ($)	Sep. 30, 2020 USD ($) credit_score	Sep. 30, 2019 USD ($)	Sep. 30, 2020 USD ($) credit_score	Sep. 30, 2019 USD ($)	Dec. 31, 2019 USD ($) credit_score
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for credit loss, percentage increase		50.00%		50.00%
Allowance for credit loss, percentage increase, period				15 months
Allowance, purchased with credit deterioration, increase	$ 2
Notes receivable estimated average remaining default rates		7.35%		7.35%		7.04%
Estimated default rate increases that would have resulted an increase in allowance for credit losses		0.50%		0.50%
Financing receivable, allowance for credit losses, that would have been increased		$ 7		$ 7		$ 8
Average estimated rate of default for all outstanding loans		14.71%		14.71%		12.65%
Weighted average FICO score within originated loan pool \| credit_score		708		708		712
Originated
Accounts, Notes, Loans and Financing Receivable [Line Items]
Increase in vacation ownership notes receivable reserve				$ (97)
Acquired
Accounts, Notes, Loans and Financing Receivable [Line Items]
Increase in vacation ownership notes receivable reserve				$ (14)
Estimated default rate increases that would have resulted an increase in allowance for credit losses		0.50%		0.50%
Financing receivable, allowance for credit losses, that would have been increased		$ 3		$ 3		$ 2
COVID-19 pandemic
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for credit loss, period increase		52
COVID-19 pandemic \| Originated
Accounts, Notes, Loans and Financing Receivable [Line Items]
Increase in vacation ownership notes receivable reserve				(42)
COVID-19 pandemic \| Acquired
Accounts, Notes, Loans and Financing Receivable [Line Items]
Increase in vacation ownership notes receivable reserve				(10)
Vacation ownership products
Accounts, Notes, Loans and Financing Receivable [Line Items]
Expenses		$ (27)	$ (89)	(110)	$ (258)
Vacation ownership products \| COVID-19 pandemic
Accounts, Notes, Loans and Financing Receivable [Line Items]
Expenses				$ 15

VACATION OWNERSHIP NOTES RECEIVABLE - Recorded Investment in Non-accrual Notes Receivable that are Ninety Days or More Past Due (Details) - USD ($) $ in Millions	Sep. 30, 2020	Dec. 31, 2019
Legacy-MVW
Financing Receivable, Past Due [Line Items]
Investment in notes receivable on non-accrual status	$ 97	$ 54
Legacy-MVW \| Non-Securitized
Financing Receivable, Past Due [Line Items]
Investment in notes receivable on non-accrual status	86	43
Legacy-MVW \| Securitized
Financing Receivable, Past Due [Line Items]
Investment in notes receivable on non-accrual status	11	11
Legacy-ILG
Financing Receivable, Past Due [Line Items]
Investment in notes receivable on non-accrual status	108	49
Legacy-ILG \| Non-Securitized
Financing Receivable, Past Due [Line Items]
Investment in notes receivable on non-accrual status	96	40
Legacy-ILG \| Securitized
Financing Receivable, Past Due [Line Items]
Investment in notes receivable on non-accrual status	$ 12	$ 9

VACATION OWNERSHIP NOTES RECEIVABLE - Aging of Recorded Investment in Principal, Vacation Ownership Notes Receivable (Details) - Legacy-MVW - USD ($) $ in Millions	Sep. 30, 2020	Dec. 31, 2019
Financing Receivable, Past Due [Line Items]
Total past due	$ 132	$ 94
Current	1,289	1,476
Total vacation ownership notes receivable	1,421	1,570
Non-Securitized
Financing Receivable, Past Due [Line Items]
Total past due	93	50
Current	167	222
Total vacation ownership notes receivable	260	272
Securitized
Financing Receivable, Past Due [Line Items]
Total past due	39	44
Current	1,122	1,254
Total vacation ownership notes receivable	1,161	1,298
31 – 90 days past due
Financing Receivable, Past Due [Line Items]
Total past due	35	40
31 – 90 days past due \| Non-Securitized
Financing Receivable, Past Due [Line Items]
Total past due	8	7
31 – 90 days past due \| Securitized
Financing Receivable, Past Due [Line Items]
Total past due	27	33
91 – 150 days past due
Financing Receivable, Past Due [Line Items]
Total past due	17	15
91 – 150 days past due \| Non-Securitized
Financing Receivable, Past Due [Line Items]
Total past due	5	4
91 – 150 days past due \| Securitized
Financing Receivable, Past Due [Line Items]
Total past due	12	11
Greater than 150 days past due
Financing Receivable, Past Due [Line Items]
Total past due	80	39
Greater than 150 days past due \| Non-Securitized
Financing Receivable, Past Due [Line Items]
Total past due	80	39
Greater than 150 days past due \| Securitized
Financing Receivable, Past Due [Line Items]
Total past due	$ 0	$ 0

VACATION OWNERSHIP NOTES RECEIVABLE - Financing Receivable Year of Originated (Details) - Legacy-MVW - USD ($) $ in Millions	Sep. 30, 2020	Dec. 31, 2019
Accounts, Notes, Loans and Financing Receivable [Line Items]
2020	$ 174
2019	491
2018	318
2017	187
2016	88
2015 and Prior	163
Total vacation ownership notes receivable	1,421	$ 1,570
Non-Securitized
Accounts, Notes, Loans and Financing Receivable [Line Items]
2020	84
2019	72
2018	40
2017	20
2016	10
2015 and Prior	34
Total vacation ownership notes receivable	260	272
Securitized
Accounts, Notes, Loans and Financing Receivable [Line Items]
2020	90
2019	419
2018	278
2017	167
2016	78
2015 and Prior	129
Total vacation ownership notes receivable	$ 1,161	$ 1,298

VACATION OWNERSHIP NOTES RECEIVABLE - Legacy-ILG Vacation Ownership Notes Receivable (Details) - Legacy-ILG - USD ($) $ in Millions	Sep. 30, 2020	Dec. 31, 2019
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total past due	$ 137	$ 78
Current	691	789
Total vacation ownership notes receivable	828	867
Non-Securitized
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total past due	103	51
Current	85	250
Total vacation ownership notes receivable	188	301
Securitized
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total past due	34	27
Current	606	539
Total vacation ownership notes receivable	640	566
31 – 90 days past due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total past due	29	29
31 – 90 days past due \| Non-Securitized
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total past due	7	11
31 – 90 days past due \| Securitized
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total past due	22	18
91 – 150 days past due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total past due	10	9
91 – 150 days past due \| Non-Securitized
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total past due	3	3
91 – 150 days past due \| Securitized
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total past due	7	6
Greater than 120 days past due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total past due	98	40
Greater than 120 days past due \| Non-Securitized
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total past due	93	37
Greater than 120 days past due \| Securitized
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total past due	5	3
Originated
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total vacation ownership notes receivable	$ 430	$ 428

FINANCIAL INSTRUMENTS - Carrying Values and Estimated Fair Values (Details) - USD ($) $ in Millions	Sep. 30, 2020	Dec. 31, 2019
Carrying Amount
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Vacation ownership notes receivable	$ 1,913	$ 2,233
Other assets	51	45
Total financial assets	1,964	2,278
Total financial liabilities	(4,422)	(4,073)
Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Vacation ownership notes receivable	1,951	2,264
Other assets	51	45
Total financial assets	2,002	2,309
Total financial liabilities	(4,501)	(4,279)
Debt \| Carrying Amount
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Debt instrument, fair value	(1,751)	(1,871)
Debt \| Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Debt instrument, fair value	(1,811)	(1,924)
2025 Notes \| Senior notes \| Carrying Amount
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Debt instrument, fair value	(493)	0
2025 Notes \| Senior notes \| Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Debt instrument, fair value	(517)	0
2026 Notes \| Senior notes \| Carrying Amount
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Debt instrument, fair value	(743)	(742)
2026 Notes \| Senior notes \| Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Debt instrument, fair value	(767)	(824)
2028 Notes \| Senior notes \| Carrying Amount
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Debt instrument, fair value	(346)	(345)
2028 Notes \| Senior notes \| Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Debt instrument, fair value	(333)	(358)
Convertible Notes, net \| Carrying Amount
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Convertible Notes, net	(213)	(207)
Convertible Notes, net \| Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Convertible Notes, net	(227)	(247)
Originated \| Carrying Amount
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Vacation ownership notes receivable	1,913	2,233
Originated \| Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Vacation ownership notes receivable	1,951	2,264
Corporate credit facility \| Term Loan \| Carrying Amount
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Debt instrument, fair value	(876)	(881)
Corporate credit facility \| Term Loan \| Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Debt instrument, fair value	(846)	(899)
Corporate credit facility \| Revolving Corporate Credit Facility, net \| Carrying Amount
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Debt instrument, fair value	0	(27)
Corporate credit facility \| Revolving Corporate Credit Facility, net \| Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Debt instrument, fair value	$ 0	$ (27)

FINANCIAL INSTRUMENTS - Carrying Values and Estimated Fair Values - Non-securitized Notes Receivable (Details) - USD ($) $ in Millions	Sep. 30, 2020	Dec. 31, 2019
Carrying Amount
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Vacation ownership notes receivable	$ 1,913	$ 2,233
Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Vacation ownership notes receivable	1,951	2,264
Securitized Vacation Ownership Notes Receivable \| Carrying Amount
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Vacation ownership notes receivable	1,650	1,750
Securitized Vacation Ownership Notes Receivable \| Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Vacation ownership notes receivable	1,684	1,771
Non-Securitized \| Carrying Amount
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Vacation ownership notes receivable	263	483
Non-Securitized \| Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Vacation ownership notes receivable	267	493
Non-Securitized \| Eligible for securitization \| Carrying Amount
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Vacation ownership notes receivable	54	165
Non-Securitized \| Eligible for securitization \| Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Vacation ownership notes receivable	58	175
Non-Securitized \| Not eligible for securitization \| Carrying Amount
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Vacation ownership notes receivable	209	318
Non-Securitized \| Not eligible for securitization \| Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Vacation ownership notes receivable	$ 209	$ 318

FINANCIAL INSTRUMENTS - Additional Information (Details) $ in Millions	Sep. 30, 2020 USD ($)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable securities	$ 6
Variable interest entity
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash surrender value of life insurance	$ 45

EARNINGS PER SHARE - Additional Information (Details) - SARs	9 Months Ended
	Sep. 30, 2019 $ / shares shares
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Shares excluded from the calculation of diluted earnings per share (in shares) \| shares	249,737
Minimum
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Exercise price securities, excluded from computation of earnings per share (in usd per share)	$ 97.53
Maximum
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Exercise price securities, excluded from computation of earnings per share (in usd per share)	$ 143.38

EARNINGS PER SHARE - Reconciliation of Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Net (loss) income attributable to common shareholders	$ (62)	$ (9)	$ (238)	$ 64
Shares for basic (loss) earnings per share (in shares)	41,200	43,400	41,300	44,500
Basic (loss) earnings per share (in usd per share)	$ (1.51)	$ (0.21)	$ (5.76)	$ 1.44
Employee stock options and SARs (in shares)	0	0	0	300
Restricted stock units (in shares)	0	0	0	300
Shares for diluted earnings per share (in shares)	41,200	43,400	41,300	45,100
Diluted (loss) earnings per share (in usd per share)	$ (1.51)	$ (0.21)	$ (5.76)	$ 1.43
Performance shares
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Shares excluded from the calculation of diluted earnings per share (in shares)		401

INVENTORY - Composition of Inventory (Details) - USD ($) $ in Millions	Sep. 30, 2020	Dec. 31, 2019
Inventory Disclosure [Abstract]
Finished goods	$ 751	$ 782
Work-in-progress	0	69
Real estate inventory	751	851
Other	10	8
Inventory	$ 761	$ 859

INVENTORY - Additional Information (Details) - USD ($) $ in Millions	3 Months Ended	9 Months Ended
	Sep. 30, 2020	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2019
Inventory Disclosure [Abstract]
Real estate inventory, increase (decrease) true up (less than)		$ 4	$ 2
Inventory impairment	$ (1)	(6)
Amount of completed vacation ownership units classified as property and equipment	173	173
Deposits on future purchases of inventory	$ 42	$ 42		$ 38

GOODWILL AND INTANGIBLES - Goodwill (Details) - USD ($)	3 Months Ended			9 Months Ended
GOODWILL AND INTANGIBLES - Goodwill (Details) - USD ($)	Sep. 30, 2020	Jun. 30, 2020	Mar. 31, 2020	Sep. 30, 2020
Goodwill [Roll Forward]
Beginning Balance	$ 2,817,000,000	$ 2,817,000,000	$ 2,892,000,000	$ 2,892,000,000
Impairment	0	0	(73,000,000)
Foreign exchange adjustments	0	0	(2,000,000)
Ending Balance	2,817,000,000	2,817,000,000	2,817,000,000	2,817,000,000
Vacation Ownership
Goodwill [Roll Forward]
Beginning Balance	2,445,000,000	2,445,000,000	2,445,000,000	2,445,000,000
Impairment	0	0	0	0
Foreign exchange adjustments	0	0	0
Ending Balance	2,445,000,000	2,445,000,000	2,445,000,000	2,445,000,000
Exchange & Third-Party Management
Goodwill [Roll Forward]
Beginning Balance	372,000,000	372,000,000	447,000,000	447,000,000
Impairment	0	0	(73,000,000)
Foreign exchange adjustments	0	0	(2,000,000)
Ending Balance	$ 372,000,000	$ 372,000,000	$ 372,000,000	$ 372,000,000

GOODWILL AND INTANGIBLES - Indefinite-Lived Intangibles (Details) - Trade names and trademarks - USD ($) $ in Millions	3 Months Ended
	Sep. 30, 2020	Jun. 30, 2020	Mar. 31, 2020
Indefinite-lived Intangible Assets [Line Items]
Beginning Balance	$ 64	$ 64	$ 82
Impairment	0	0	18
Ending Balance	$ 64	$ 64	$ 64

GOODWILL AND INTANGIBLES - Additional Information (Details) - USD ($) $ in Millions	3 Months Ended
	Sep. 30, 2020	Jun. 30, 2020	Mar. 31, 2020
Goodwill [Line Items]
Impairment	$ 0	$ 0	$ 73
Exchange & Third-Party Management
Goodwill [Line Items]
Impairment	0	0	73
Trade names and trademarks
Goodwill [Line Items]
Impairment charge	$ 0	$ 0	$ (18)

CONTINGENCIES AND COMMITMENTS (Details) $ in Millions	Sep. 30, 2020 USD ($) vacation_ownership_unit
Commitments and Contingencies Disclosure [Line Items]
Purchase commitment obligation due, thereafter	$ 3
Surety bonds issued	75
Vacation ownership projects currently under development	4
Time share, accrued costs	$ (2)
Lease not yet commenced, term of contract	16 years
Lease not yet commenced, right-of-use asset	$ 129
Revolving corporate credit facility, net
Commitments and Contingencies Disclosure [Line Items]
Letters of credit outstanding	3
Letter of credit
Commitments and Contingencies Disclosure [Line Items]
Letters of credit outstanding	2
New York City, New York
Commitments and Contingencies Disclosure [Line Items]
Purchase commitment	97
Bali Indonesia Resort Two
Commitments and Contingencies Disclosure [Line Items]
Purchase commitment obligation due, 2020	1
Purchase commitment obligation due, 2021	21
Purchase commitment obligation due, 2022	$ 2
Number of vacation ownership units expected to be acquired \| vacation_ownership_unit	88
San Francisco, California
Commitments and Contingencies Disclosure [Line Items]
Purchase commitment	$ 88
Purchase commitment obligation due, 2021	32
Purchase commitment obligation due, 2022	24
Purchase commitment obligation due, 2023	32
Waikiki Hawaii
Commitments and Contingencies Disclosure [Line Items]
Purchase commitment obligation due, 2021	98
Information technology hardware and software
Commitments and Contingencies Disclosure [Line Items]
Purchase commitment	83
Purchase commitment obligation due, 2020	16
Purchase commitment obligation due, 2021	26
Purchase commitment obligation due, 2022	19
Purchase commitment obligation due, 2023	13
Purchase commitment obligation due, 2024	6
Exchange & Third-Party Management
Commitments and Contingencies Disclosure [Line Items]
Guarantor obligations, maximum exposure	28
Guarantor obligations, maximum exposure. due remainder of fiscal year	3
Guarantor obligations, maximum exposure, due in second year	10
Guarantor obligations, maximum exposure, due in third year	6
Guarantor obligations, maximum exposure, due in fourth year	3
Guarantor obligations, maximum exposure, due in five year	2
Guarantor obligations, maximum exposure, due after fifth year	$ 4

SECURITIZED DEBT - Vacation Ownership Notes Receivable Securitizations (Details) - USD ($)	Sep. 30, 2020	Jun. 30, 2020	Dec. 31, 2019
Debt Instrument [Line Items]
Securitized Debt	$ 1,751,000,000		$ 1,871,000,000
Secured debt, net	1,751,000,000		1,871,000,000
Debt, stated interest rate		6.125%
2020, remaining	2,000,000
2021	9,000,000
2022	239,000,000
2023	9,000,000
2024	9,000,000
Thereafter	2,449,000,000
Debt \| Warehouse Credit Facility \| Variable interest entity
Debt Instrument [Line Items]
Securitized Debt	0		21,000,000
Unamortized debt issuance costs	(1,000,000)		(2,000,000)
Secured debt, net	0		19,000,000
Debt \| Other
Debt Instrument [Line Items]
Secured debt, net	0		20,000,000
Variable interest entity
Debt Instrument [Line Items]
Securitized Debt	1,769,000,000		1,871,000,000
Variable interest entity \| Debt
Debt Instrument [Line Items]
Securitized Debt	$ 1,769,000,000
Debt, weighted average interest rate	2.70%
Variable interest entity \| Debt \| Minimum
Debt Instrument [Line Items]
Debt, stated interest rate	2.20%
Variable interest entity \| Debt \| Maximum
Debt Instrument [Line Items]
Debt, stated interest rate	4.40%
Vacation Ownership Notes Receivable Securitizations \| Debt \| Variable interest entity
Debt Instrument [Line Items]
Securitized Debt	$ 1,769,000,000		1,850,000,000
Unamortized debt discount and issuance costs	(18,000,000)		(18,000,000)
Secured debt, net	1,751,000,000		$ 1,832,000,000
Vacation Ownership Notes Receivable Securitizations \| Variable interest entity \| Debt
Debt Instrument [Line Items]
Securitized Debt	1,769,000,000
2020, remaining	46,000,000
2021	178,000,000
2022	184,000,000
2023	189,000,000
2024	191,000,000
Thereafter	981,000,000
Long-term debt	$ 1,769,000,000

SECURITIZED DEBT - Additional Information (Details)	3 Months Ended			9 Months Ended
SECURITIZED DEBT - Additional Information (Details)	Sep. 30, 2020 USD ($) Loan	Jun. 30, 2020 USD ($)	Mar. 31, 2020 USD ($)	Sep. 30, 2020 USD ($) Loan	Sep. 30, 2019 USD ($)
Debt Instrument [Line Items]
Number of notes receivable pools under performance triggers \| Loan	0			0
Number of notes receivable pools outstanding \| Loan	12			12
Values of Vacation Ownership Notes Receivable that Were Purchased By Trust During the Period	$ 383,000,000
Debt, stated interest rate		6.125%
Repayments of debt				$ (793,000,000)	$ (673,000,000)
Payments of Debt Issuance Costs	$ 7,000,000			$ 14,000,000	$ 11,000,000
Number of notes receivable pools out of compliance \| Loan	0			0
Warehouse Credit Facility
Debt Instrument [Line Items]
Proceeds from vacation ownership notes receivable securitizations			$ 202,000,000
Values of vacation ownership notes receivable that were securitized during the period			$ 240,000,000
Advance rate for securitization			84.00%
Cash flows between transferee and transferor proceeds			$ 201,000,000
Cash flows between transferee and transfer or funding of restricted cash (less than for third quarter of 2019)			$ (1,000,000)
Warehouse Credit Facility
Debt Instrument [Line Items]
Proceeds from vacation ownership notes receivable securitizations		$ 113,000,000
Repayments of debt	$ (300,000,000)
Credit facility	350,000,000	531,000,000		$ 350,000,000
Values of vacation ownership notes receivable that were securitized during the period		$ 132,000,000
Advance rate for securitization		86.00%
Cash flows between transferee and transferor proceeds		$ 113,000,000
Cash flows between transferee and transfer or funding of restricted cash (less than for third quarter of 2019)		(1,000,000)
Line of credit facility, increase in maximum borrowing capacity		$ 181,000,000
Secured Debt \| MVW-2020-1 LLC
Debt Instrument [Line Items]
Proceeds from vacation ownership notes receivable securitizations	$ 375,000,000
Debt, stated interest rate	2.53%			2.53%
Secured Debt \| Class A notes \| MVW-2020-1 LLC
Debt Instrument [Line Items]
Proceeds from vacation ownership notes receivable securitizations	$ 238,000,000
Debt, stated interest rate	1.74%			1.74%
Secured Debt \| Class B notes \| MVW-2020-1 LLC
Debt Instrument [Line Items]
Proceeds from vacation ownership notes receivable securitizations	$ 72,000,000
Debt, stated interest rate	2.73%			2.73%
Secured Debt \| Class C notes \| MVW-2020-1 LLC
Debt Instrument [Line Items]
Proceeds from vacation ownership notes receivable securitizations	$ 44,000,000
Debt, stated interest rate	4.21%			4.21%
Secured Debt \| Class D notes \| MVW-2020-1 LLC
Debt Instrument [Line Items]
Proceeds from vacation ownership notes receivable securitizations	$ 21,000,000
Debt, stated interest rate	7.14%			7.14%
London Interbank Offered Rate (LIBOR) \| Warehouse Credit Facility
Debt Instrument [Line Items]
Basis spread on variable rate	1.40%	1.10%

SECURITIZED DEBT - Future Payments Vacation Ownership Notes Receivable Securitizations (Details) $ in Millions	Sep. 30, 2020 USD ($)
Debt Instrument [Line Items]
2020, remaining	$ 2
2022	239
2023	9
2024	9
Thereafter	2,449
Variable interest entity \| Debt \| Vacation Ownership Notes Receivable Securitizations
Debt Instrument [Line Items]
2020, remaining	46
2022	184
2023	189
2024	191
Thereafter	981
Long-term debt	$ 1,769

DEBT - Debt Balances, Net of Unamortized Debt Issuance Costs (Details) - USD ($)	Sep. 30, 2020	Dec. 31, 2019
Carrying Amount
Debt Instrument [Line Items]
Net carrying amount of the liability component	$ 2,680,000,000	$ 2,216,000,000
Finance leases	9,000,000	14,000,000
Debt, gross	2,717,000,000
Net carrying amount of the liability component	2,680,000,000	2,216,000,000
2025 Notes \| Senior notes
Debt Instrument [Line Items]
Debt, gross	500,000,000	0
Unamortized debt discount and issuance costs	(7,000,000)	0
Net carrying amount of the liability component	493,000,000	0
2026 Notes \| Senior notes
Debt Instrument [Line Items]
Debt, gross	750,000,000	750,000,000
Unamortized debt discount and issuance costs	(7,000,000)	(8,000,000)
Net carrying amount of the liability component	743,000,000	742,000,000
2028 Notes \| Senior notes
Debt Instrument [Line Items]
Debt, gross	350,000,000	350,000,000
Unamortized debt discount and issuance costs	(4,000,000)	(5,000,000)
Net carrying amount of the liability component	346,000,000	345,000,000
Convertible Notes, net \| Convertible notes \| Carrying Amount
Debt Instrument [Line Items]
Debt, gross	230,000,000	230,000,000
Unamortized debt discount and issuance costs	(17,000,000)	(23,000,000)
Net carrying amount of the liability component	213,000,000	207,000,000
Convertible Notes, net \| Convertible notes
Debt Instrument [Line Items]
Debt, gross	230,000,000	230,000,000
Unamortized debt issuance costs	(2,000,000)	(3,000,000)
Net carrying amount of the liability component	213,000,000	207,000,000
Corporate credit facility \| Term Loan
Debt Instrument [Line Items]
Debt, gross	887,000,000	893,000,000
Unamortized debt discount and issuance costs	(11,000,000)	(12,000,000)
Net carrying amount of the liability component	876,000,000	881,000,000
Corporate credit facility \| Revolving Corporate Credit Facility
Debt Instrument [Line Items]
Debt, gross	0	30,000,000
Unamortized debt issuance costs	(3,000,000)	(3,000,000)
Net carrying amount of the liability component	$ 0	$ 27,000,000

DEBT - Scheduled Future Principal Payments for Debt (Details) - USD ($) $ in Millions	Sep. 30, 2020	Dec. 31, 2019
Long Term Debt Maturities Repayments Of Principal [Line Items]
2020, remaining	$ 2
2021	9
2022	239
2023	9
2024	9
Thereafter	2,449
Principal amount	2,717
Senior notes \| 2025 Notes
Long Term Debt Maturities Repayments Of Principal [Line Items]
2020, remaining	0
2021	0
2022	0
2023	0
2024	0
Thereafter	500
Principal amount	500	$ 0
Senior notes \| 2026 Notes
Long Term Debt Maturities Repayments Of Principal [Line Items]
2020, remaining	0
2021	0
2022	0
2023	0
2024	0
Thereafter	750
Principal amount	750	750
Senior notes \| 2028 Notes
Long Term Debt Maturities Repayments Of Principal [Line Items]
2020, remaining	0
2021	0
2022	0
2023	0
2024	0
Thereafter	350
Principal amount	350	350
Convertible notes \| Convertible Notes, net
Long Term Debt Maturities Repayments Of Principal [Line Items]
2020, remaining	0
2021	0
2022	230
2023	0
2024	0
Thereafter	0
Principal amount	230	230
Corporate credit facility \| Term Loan
Long Term Debt Maturities Repayments Of Principal [Line Items]
2020, remaining	2
2021	9
2022	9
2023	9
2024	9
Thereafter	849
Principal amount	887	893
Corporate credit facility \| Revolving Corporate Credit Facility, net
Long Term Debt Maturities Repayments Of Principal [Line Items]
Principal amount	$ 0	$ 30

DEBT - Additional Information (Details) - USD ($)				9 Months Ended
DEBT - Additional Information (Details) - USD ($)	Sep. 30, 2020	Jun. 30, 2020	May 22, 2020	Sep. 30, 2020	Dec. 31, 2019	Oct. 01, 2019	Dec. 31, 2017
Debt Disclosure [Line Items]
Debt, stated interest rate		6.125%
Proceeds from issuance debt		$ 493,000,000
Principal amount	$ 2,717,000,000			$ 2,717,000,000
Debt instrument, convertible, remaining discount amortization period	2 years
Senior Secured Notes \| Senior notes
Debt Disclosure [Line Items]
Principal amount		$ 500,000,000
Senior Unsecured Notes \| Senior notes
Debt Disclosure [Line Items]
Principal amount	$ 750,000,000			$ 750,000,000
Debt, stated interest rate	6.50%			6.50%
2028 Notes \| Senior notes
Debt Disclosure [Line Items]
Principal amount						$ 350,000,000
Debt, stated interest rate						4.75%
Principal amount	$ 350,000,000			$ 350,000,000	$ 350,000,000
Revolving Corporate Credit Facility, net \| Corporate credit facility
Debt Disclosure [Line Items]
Principal amount	0			0	30,000,000
Convertible Notes, net \| Convertible notes
Debt Disclosure [Line Items]
Principal amount							$ 230,000,000
Debt, stated interest rate							1.50%
Principal amount	$ 230,000,000			$ 230,000,000	230,000,000
Interest rate, effective percentage	4.70%			4.70%
Term Loan \| Corporate credit facility
Debt Disclosure [Line Items]
Credit facility	$ 900,000,000			$ 900,000,000
Principal amount	887,000,000			887,000,000	$ 893,000,000
Revolving corporate credit facility, net \| Corporate credit facility
Debt Disclosure [Line Items]
Credit facility	600,000,000			600,000,000
Debt Instrument, Covenant, Liquidity Threshold			$ 300,000,000
Revolving corporate credit facility, net \| Letter of credit \| Corporate credit facility
Debt Disclosure [Line Items]
Credit facility	$ 75,000,000			$ 75,000,000
Convertible Note Hedges
Debt Disclosure [Line Items]
Option indexed to issuer's equity, indexed shares (in shares)							1,550,000
Convertible note hedges exercised (in shares)	0			0
Private Warrants
Debt Disclosure [Line Items]
Number of securities called by warrants (in shares)							1,550,000
Number of warrants exercised (in shares)	0			0
Exercise price of warrants (in usd per share)							$ 176.68
Minimum \| Revolving corporate credit facility, net \| Corporate credit facility
Debt Disclosure [Line Items]
Basis spread on variable rate				0.50%
Commitment fee percentage				0.20%
Maximum \| Revolving corporate credit facility, net \| Corporate credit facility
Debt Disclosure [Line Items]
Basis spread on variable rate				2.75%
Commitment fee percentage				0.40%
London Interbank Offered Rate (LIBOR) \| Term Loan \| Corporate credit facility
Debt Disclosure [Line Items]
Basis spread on variable rate				1.75%
Interest Rate Swap, September 2023
Debt Disclosure [Line Items]
Notional amount	$ 250,000,000			$ 250,000,000
Derivative, fixed interest rate	2.9625%			2.9625%
Interest Rate Swap, April 2024
Debt Disclosure [Line Items]
Notional amount	$ 200,000,000			$ 200,000,000
Derivative, fixed interest rate	2.248%			2.248%
Interest Rate Contract
Debt Disclosure [Line Items]
Notional amount	$ 100,000,000			$ 100,000,000
Cap strike rate	2.50%			2.50%
Floor strike rate	1.881%			1.881%

DEBT - Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions	3 Months Ended
	Sep. 30, 2020	Jun. 30, 2020	Mar. 31, 2020	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance			$ 3,019
Ending balance	$ 2,658
Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	(46)	$ (45)	(21)	$ (22)	$ (9)	$ (6)
Other comprehensive loss before reclassifications	3	(1)	(24)	(4)	(13)	(3)
Reclassification to Income Statement	0	0	0	0	0	0
Net other comprehensive loss	3	(1)	(24)	(4)	(13)	(3)
Ending balance	$ (43)	$ (46)	$ (45)	$ (26)	$ (22)	$ (9)

- Definition

Total of all stockholders' equity (deficit) items, net of receivables from officers, directors, owners, and affiliates of the entity which are attributable to the parent. The amount of the economic entity's stockholders' equity attributable to the parent excludes the amount of stockholders' equity which is allocable to that ownership interest in subsidiary equity which is not attributable to the parent (noncontrolling interest, minority interest). This excludes temporary equity and is sometimes called permanent equity.

+ References + Details

DEBT - Net Carrying Value Of The Convertible Notes (Details) - USD ($) $ in Millions	Sep. 30, 2020	Dec. 31, 2019
Debt Instrument [Line Items]
Principal amount	$ 2,717
Net carrying amount of the liability component	2,680	$ 2,216
Convertible notes \| Convertible Notes, net
Debt Instrument [Line Items]
Principal amount	230	230
Unamortized debt discount	(15)	(20)
Unamortized debt issuance costs	(2)	(3)
Net carrying amount of the liability component	213	207
Carrying amount of equity component, net of issuance costs	$ 33	$ 33

DEBT - Interest Expense Related To The Convertible Notes (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Debt Instrument [Line Items]
Interest expense, debt	$ 37	$ 31	$ 112	$ 100
Convertible notes \| Convertible Notes, net
Debt Instrument [Line Items]
Contractual interest expense	1	1	3	2
Amortization of debt discount	1	2	5	5
Amortization of debt issuance costs	0	0	1	1
Interest expense, debt	$ 2	$ 3	$ 9	$ 8

SHAREHOLDERS' EQUITY - Additional Information (Details) - USD ($) $ / shares in Units, $ in Millions	Sep. 30, 2020	Dec. 31, 2019	Jul. 30, 2019
Stockholders Equity Note [Line Items]
Common stock, shares authorized (in shares)	100,000,000	100,000,000
Common stock, par (in usd per share)	$ 0.01	$ 0.01
Common stock, shares issued (in shares)	75,250,627	75,020,272
Common stock, shares outstanding (in shares)	41,062,759	41,582,096
Treasury stock, shares (in shares)	34,187,868	33,438,176
Preferred stock, shares authorized (in shares)	2,000,000	2,000,000
Preferred stock, par value (in usd per share)	$ 0.01	$ 0.01
Preferred stock, issued (in shares)	0	0
Number of additional shares authorized to be repurchased (in shares)			4,500,000
Share repurchase program, number of common stock authorized to be repurchased (in shares)	19,400,000
Shares remained available for repurchase under the program (in shares)	1,900,000
Noncontrolling interests	$ 25	$ 12
Property owners associations
Stockholders Equity Note [Line Items]
Noncontrolling interests	$ 25	$ 12

SHAREHOLDERS' EQUITY - Summary of Stock Repurchase Activity (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended				9 Months Ended
	Mar. 31, 2020	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Sep. 30, 2020
Stock Repurchase [Roll Forward]
Number of shares repurchased (in shares)	33,438,176				33,438,176
Cost of Shares Repurchased	$ 82	$ 127	$ 109	$ 106
Number of shares repurchased (in shares)					34,187,868
Treasury Stock
Stock Repurchase [Roll Forward]
Number of shares repurchased (in shares)	16,418,950				16,418,950
Cost of Shares Repurchased	$ 1,258				$ 1,258
Average price paid per share (in usd per share)	$ 76.60				$ 76.60
Repurchase of common stock (in shares)					769,935
Cost of Shares Repurchased	$ 82	$ 127	$ 109	$ 106	$ 82
Average price paid per share (in usd per share)					$ 106.60
Number of shares repurchased (in shares)					17,188,885
Cost of Shares Repurchased					$ 1,340
Average price paid per share (in usd per share)					$ 77.95

SHAREHOLDERS' EQUITY - Cash Dividend Declared (Details) - $ / shares		3 Months Ended		9 Months Ended
	Feb. 14, 2020	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Equity [Abstract]
Dividend per share (in usd per share)	$ 0.54	$ 0	$ 0.45	$ 0.54	$ 1.35

SHARE-BASED COMPENSATION - Additional Information (Details)	9 Months Ended
	Sep. 30, 2020 $ / shares shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares authorized for issuance under the plan (in shares)	1,800,000
Shares available for grants under the plan (in shares) (less than)	1,800,000
Restricted stock units \| Employees and non employee directors
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock awards, grants in period (in shares)	268,652
Stock awards granted, weighted average (in usd per share) grant date fair value \| $ / shares	$ 90.11
Performance-based RSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Maximum amount of RSU subject to vesting (in shares)	177,208
SARs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock awards, grants in period (in shares)	116,434
Stock awards granted, weighted average (in usd per share) grant date fair value \| $ / shares	$ 29.63
Stock awards granted, weighted average (in usd per share) exercise date fair value \| $ / shares	$ 96.82

SHARE-BASED COMPENSATION - Share-based Compensation Expense (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense	$ 11	$ 9	$ 24	$ 29
Service-based RSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense	5	4	16	13
Performance-based RSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense	4	3	3	6
ILG Acquisition Converted RSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense	1	2	2	8
Restricted stock units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense	10	9	21	27
SARs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense	1	0	3	2
Stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense	$ 0	$ 0	$ 0	$ 0

SHARE-BASED COMPENSATION - Deferred Compensation Costs (Details) - USD ($) $ in Millions	Sep. 30, 2020	Dec. 31, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Deferred compensation costs related to unvested awards	$ 32	$ 31
Service-based RSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Deferred compensation costs related to unvested awards	23	17
Performance-based RSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Deferred compensation costs related to unvested awards	6	10
ILG Acquisition Converted RSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Deferred compensation costs related to unvested awards	1	3
Restricted stock units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Deferred compensation costs related to unvested awards	30	30
SARs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Deferred compensation costs related to unvested awards	2	1
Stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Deferred compensation costs related to unvested awards	$ 0	$ 0

SHARE-BASED COMPENSATION - Assumptions Used to Estimate Fair Value of Grants (Details)	9 Months Ended
	Sep. 30, 2020
Share-based Payment Arrangement [Abstract]
Expected volatility	38.81%
Dividend yield	2.13%
Risk-free rate	0.96%
Expected term (in years)	6 years 3 months

VARIABLE INTEREST ENTITIES - Classifications of Consolidated VIE Assets and Liabilities (Details) - USD ($) $ in Millions	Sep. 30, 2020	Dec. 31, 2019
Variable Interest Entity [Line Items]
Financing Receivable, after Allowance for Credit Loss	$ 1,913	$ 2,233
Interest receivable	13	16
Restricted Cash and Cash Equivalents	368	414
TOTAL ASSETS	9,011	9,214
Securitized Debt	1,751	1,871
TOTAL LIABILITIES	6,328	6,183
Variable interest entity
Variable Interest Entity [Line Items]
Financing Receivable, after Allowance for Credit Loss	1,650	1,750
Restricted Cash and Cash Equivalents	69	64
TOTAL ASSETS	1,731
Securitized Debt	1,769	$ 1,871
TOTAL LIABILITIES	1,771
Variable interest entity \| Debt
Variable Interest Entity [Line Items]
Securitized Debt	1,769
Variable interest entity \| Vacation ownership notes receivable, net of reserves
Variable Interest Entity [Line Items]
Financing Receivable, after Allowance for Credit Loss	1,650
Variable interest entity \| Interest receivable
Variable Interest Entity [Line Items]
Interest receivable	12
Variable interest entity \| Restricted cash
Variable Interest Entity [Line Items]
Restricted Cash and Cash Equivalents	69
Variable interest entity \| Interest payable
Variable Interest Entity [Line Items]
Interest payable	2
Variable interest entity \| Vacation Ownership Notes Receivable Securitizations
Variable Interest Entity [Line Items]
TOTAL ASSETS	1,731
TOTAL LIABILITIES	1,771
Variable interest entity \| Vacation Ownership Notes Receivable Securitizations \| Debt
Variable Interest Entity [Line Items]
Securitized Debt	1,769
Variable interest entity \| Vacation Ownership Notes Receivable Securitizations \| Vacation ownership notes receivable, net of reserves
Variable Interest Entity [Line Items]
Financing Receivable, after Allowance for Credit Loss	1,650
Variable interest entity \| Vacation Ownership Notes Receivable Securitizations \| Interest receivable
Variable Interest Entity [Line Items]
Interest receivable	12
Variable interest entity \| Vacation Ownership Notes Receivable Securitizations \| Restricted cash
Variable Interest Entity [Line Items]
Restricted Cash and Cash Equivalents	69
Variable interest entity \| Vacation Ownership Notes Receivable Securitizations \| Interest payable
Variable Interest Entity [Line Items]
Interest payable	2
Variable interest entity \| Warehouse Credit Facility
Variable Interest Entity [Line Items]
TOTAL ASSETS	0
TOTAL LIABILITIES	0
Variable interest entity \| Warehouse Credit Facility \| Debt
Variable Interest Entity [Line Items]
Securitized Debt	0
Variable interest entity \| Warehouse Credit Facility \| Vacation ownership notes receivable, net of reserves
Variable Interest Entity [Line Items]
Financing Receivable, after Allowance for Credit Loss	0
Variable interest entity \| Warehouse Credit Facility \| Interest receivable
Variable Interest Entity [Line Items]
Interest receivable	0
Variable interest entity \| Warehouse Credit Facility \| Restricted cash
Variable Interest Entity [Line Items]
Restricted Cash and Cash Equivalents	0
Variable interest entity \| Warehouse Credit Facility \| Interest payable
Variable Interest Entity [Line Items]
Interest payable	$ 0

VARIABLE INTEREST ENTITIES - Interest Income and Expense Recognized as a Result of Our Involvement with Variable Interest Entities (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Variable Interest Entity [Line Items]
Interest income	$ 63	$ 69	$ 199	$ 201
General and Administrative Expense	32	$ 57	121	$ 188
Variable interest entity
Variable Interest Entity [Line Items]
Interest income	59		186
Interest expense to investors	15		43
Debt issuance cost amortization	2		6
General and Administrative Expense	1		1
Variable interest entity \| Vacation Ownership Notes Receivable Securitizations
Variable Interest Entity [Line Items]
Interest income	59		168
Interest expense to investors	14		39
Debt issuance cost amortization	1		5
General and Administrative Expense	1		1
Variable interest entity \| Warehouse Credit Facility
Variable Interest Entity [Line Items]
Interest income	0		18
Interest expense to investors	1		4
Debt issuance cost amortization	1		1
General and Administrative Expense	$ 0		$ 0

VARIABLE INTEREST ENTITIES - Cash Flows Between Company and Variable Interest Entities (Details) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019
Vacation Ownership Notes Receivable Securitizations
Cash Inflows
Net proceeds from vacation ownership notes receivable securitizations	$ 371	$ 445
Principal receipts	360	355
Interest receipts	166	156
Reserve release	16	107
Total	913	1,063
Cash Outflows
Principal to investors	(370)	(379)
Voluntary repurchases of defaulted vacation ownership notes receivable	(69)	(35)
Cash Flows Between Transferor and Transferee, Payment to Purchaser	(18)	(19)
Interest to investors	(37)	(36)
Funding of restricted cash	(20)	(93)
Total	(514)	(562)
Net Cash Flows	399	501
Warehouse Credit Facility
Cash Inflows
Net proceeds from vacation ownership notes receivable securitizations	315	181
Principal receipts	34	14
Interest receipts	17	13
Reserve release	2	1
Total	368	209
Cash Outflows
Principal to investors	(33)	(12)
Voluntary repurchases of defaulted vacation ownership notes receivable	(3)	0
Repayment of Warehouse Credit Facility	(300)	(228)
Interest to investors	(4)	(4)
Funding of restricted cash	(2)	(1)
Total	(342)	(245)
Net Cash Flows	$ 26	$ (36)

VARIABLE INTEREST ENTITIES - Additional Information (Details) - USD ($) $ in Millions	Sep. 30, 2020	Dec. 31, 2019
Variable Interest Entity [Line Items]
Accounts Receivable, including VIE, after allowance for credit loss	$ 272	$ 323
Property and equipment, net	809	$ 718
Note receivable (less than)	1
Variable interest entity
Variable Interest Entity [Line Items]
Cash surrender value of life insurance	45
San Francisco, California \| Variable interest entity
Variable Interest Entity [Line Items]
Accounts Receivable, including VIE, after allowance for credit loss	2
Inventory	5
Note receivable (less than)	1
Maximum loss (less than for New York)	7
New York City, New York \| Variable interest entity
Variable Interest Entity [Line Items]
Property and equipment, net	22
New York City, New York \| Variable Interest Entity, Not Primary Beneficiary
Variable Interest Entity [Line Items]
Note receivable (less than)	1
Maximum loss (less than for New York)	23
Waikiki Hawaii \| Variable Interest Entity, Not Primary Beneficiary
Variable Interest Entity [Line Items]
Accounts Receivable, including VIE, after allowance for credit loss	1
Note receivable (less than)	1
Maximum loss (less than for New York)	$ 1

BUSINESS SEGMENTS - Additional Information (Details)	3 Months Ended		9 Months Ended
BUSINESS SEGMENTS - Additional Information (Details)	Sep. 30, 2020 brand	Sep. 30, 2019	Sep. 30, 2020 Segment brand	Sep. 30, 2019
Segment Reporting Information [Line Items]
Number of reportable business segments \| Segment			2
Vacation Ownership
Segment Reporting Information [Line Items]
Number of vacation ownership brands \| brand	7		7
Geographic concentration risk \| Sales revenue, net \| Non-US
Segment Reporting Information [Line Items]
Concentration risk, percentage	8.00%	12.00%	10.00%	11.00%

BUSINESS SEGMENTS - Revenues (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Segment Reporting, Asset Reconciling Item [Line Items]
Revenues	$ 649	$ 1,066	$ 2,139	$ 3,143
Vacation Ownership
Segment Reporting, Asset Reconciling Item [Line Items]
Revenues	571	940	1,884	2,769
Exchange & Third-Party Management
Segment Reporting, Asset Reconciling Item [Line Items]
Revenues	71	111	236	351
Operating segments
Segment Reporting, Asset Reconciling Item [Line Items]
Revenues	642	1,051	2,120	3,120
Operating segments \| Vacation Ownership
Segment Reporting, Asset Reconciling Item [Line Items]
Revenues	571	940	1,884	2,769
Operating segments \| Exchange & Third-Party Management
Segment Reporting, Asset Reconciling Item [Line Items]
Revenues	71	111	236	351
Corporate and Other
Segment Reporting, Asset Reconciling Item [Line Items]
Revenues	$ 7	$ 15	$ 19	$ 23

- Definition

Amount of revenue recognized from goods sold, services rendered, insurance premiums, or other activities that constitute an earning process. Includes, but is not limited to, investment and interest income before deduction of interest expense when recognized as a component of revenue, and sales and trading gain (loss).

+ References

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+ Details

BUSINESS SEGMENTS - Adjusted EBITDA (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Segment Reporting Information [Line Items]
Corporate and other	$ (24)	$ (50)	$ (84)	$ (164)
Interest expense	(37)	(31)	(112)	(100)
Tax benefit (provision)	14	(10)	91	(50)
Depreciation and amortization	(30)	(33)	(93)	(106)
Share-based compensation expense	(11)	(9)	(24)	(29)
Certain items	(33)	(116)	(263)	(202)
NET (LOSS) INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS	(62)	(9)	(238)	64
Vacation Ownership
Segment Reporting Information [Line Items]
Adjusted earnings before income taxes depreciation and amortization	28	195	156	570
Exchange & Third-Party Management
Segment Reporting Information [Line Items]
Adjusted earnings before income taxes depreciation and amortization	$ 31	$ 45	$ 91	$ 145

BUSINESS SEGMENTS - Assets (Details) - USD ($) $ in Millions	Sep. 30, 2020	Dec. 31, 2019
Segment Reporting Information [Line Items]
Total assets	$ 9,011	$ 9,214
Operating segments
Segment Reporting Information [Line Items]
Total assets	7,910	8,507
Operating segments \| Vacation Ownership
Segment Reporting Information [Line Items]
Total assets	6,936	7,345
Operating segments \| Exchange & Third-Party Management
Segment Reporting Information [Line Items]
Total assets	974	1,162
Corporate and Other
Segment Reporting Information [Line Items]
Total assets	$ 1,101	$ 707

- Definition

Sum of the carrying amounts as of the balance sheet date of all assets that are recognized. Assets are probable future economic benefits obtained or controlled by an entity as a result of past transactions or events.

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