v3.26.3
Segment Information
 9 Months Ended
Sep. 30, 2026
Segment Reporting [Abstract]  
Segment Information Segment Information
The Company has two reportable segments: Vacation Ownership and Travel and Membership. In identifying its reportable segments the Company analyzed the components of each segment, the nature of the segments’ products and services, and prescribed quantitative thresholds. Based on this analysis the Company aggregates two geographical operating segments within the Vacation Ownership reportable segment and two operating segments within the Travel and Membership reportable segment.
The Vacation Ownership segment develops, markets, and sells VOIs to individual consumers, provides consumer financing in connection with the sale of VOIs, and provides property management services at resorts. This segment is wholly comprised of the Vacation Ownership business line. The Travel and Membership segment operates a variety of travel businesses, including vacation exchange brands, travel technology platforms, travel memberships, and direct-to-consumer rentals. This segment is comprised of the Exchange and Travel Club business lines.
The financial results of these reportable segments are regularly reviewed by the Company’s Chief Executive Officer (“CEO”) to evaluate performance and allocate resources. Since the Company’s CEO makes key operating and resource allocation decisions, the CEO is considered the Company’s chief operating decision maker (“CODM”).
Adjusted EBITDA is the profitability measure utilized by the CODM to assess the performance of the reportable segments through comparisons to budgets, forecasts, prior periods, and trends. This analysis is used to make certain decisions regarding the allocation of capital and personnel to the segments.
Adjusted EBITDA is defined by the Company as net income from continuing operations before depreciation and amortization, interest expense (excluding consumer financing interest), early extinguishment of debt, interest income (excluding consumer financing revenues) and income taxes. Adjusted EBITDA also excludes stock-based compensation costs, separation and restructuring costs, legacy items, transaction and integration costs associated with mergers, acquisitions, and divestitures, asset impairments/recoveries and inventory write-downs associated with the Company’s resort optimization initiative, gains and losses on sale/disposition of business, and items that meet the conditions of unusual and/or infrequent. Legacy items include the resolution of and adjustments to certain contingent assets and liabilities related to acquisitions of continuing businesses and dispositions, including the separation of Wyndham Hotels & Resorts, Inc. (“Wyndham Hotels”) and ABG, and the sale of the vacation rentals businesses. Integration costs represent certain non-recurring costs directly incurred to integrate mergers and/or acquisitions into the existing business. The Company excludes these costs as they do not reflect recurring operating expenses. The Company believes that Adjusted EBITDA is a useful measure of performance for its segments which, when considered with GAAP measures, gives a more complete understanding of its operating performance. The Company’s presentation of Adjusted EBITDA may not be comparable to similarly-titled measures used by other companies.
The following tables present the Company’s segment information (in millions):
Three Months Ended September 30, 2026
Net revenuesVacation OwnershipTravel and MembershipTotal
Revenues from external customers$953 
(a)
$148 $1,101 
Intersegment revenues— 2 2 
953 150 1,103 
Reconciliation of revenues
Elimination of intersegment revenues(2)
Total consolidated revenues$1,101 
Less:
Property management expense191 — 
(b)
Marketing
146 
(c)
9 
Commissions131 — 
(b)
General and administrative (d)
67 22 
Sales administration61 — 
(b)
Consumer financing interest33 — 
(b)
Licensing fees32 — 
(b)
Cost of sales20 
(e)
43 
Developer obligations (f)
8 — 
(b)
Fee-for-Service expenses
5 — 
(b)
Contact center— 
(b)
16 
Resort services— 
(b)
7 
Other segment items (g)
9 2 
Reportable segment Adjusted EBITDA
$250 $51 $301 
Elimination of intersegment Adjusted EBITDA
1 
Other Adjusted EBITDA
(19)
Adjusted EBITDA$283 
Three Months Ended September 30, 2026
Reconciliation of Adjusted EBITDATotal
Adjusted EBITDA$283 
Interest expense (h)
(56)
Depreciation and amortization(35)
Acquisition and divestiture related deal costs(18)
Stock-based compensation(15)
Restructuring
(12)
Inventory write-downs and asset impairments (i)
(2)
Integration costs(1)
Interest income
5 
Other (j)
(3)
Income before income taxes146 
Provision for income taxes(38)
Net income attributable to Travel + Leisure Co. shareholders$108 
(a)Includes $148 million provision for loan losses, net.
(b)Expense category not regularly provided to the CODM for this segment.
(c)Excludes licensing fees which are reported within Marketing on the Condensed Consolidated Statements of Income, as it is separately disclosed.
(d)Excludes stock-based compensation and legacy items which are not included in the determination of Adjusted EBITDA.
(e)Represents Cost of vacation ownership interests on the Condensed Consolidated Statements of Income. Excludes $2 million of inventory write-downs and impairments which are not included in the determination of Adjusted EBITDA.
(f)Represents maintenance fees incurred by the Company for unsold VOIs, net of monetization.
(g)Includes expenses for VOI travel packages, VOI incentives, and professional fees reported within Operating expenses, and other non-operating income/expense items included in the determination of Adjusted EBITDA such as dividend income and asset sales.
(h)Includes $1 million of debt extinguishment costs related to the Acquisitions.
(i)Includes $2 million of inventory write-downs and impairments related to the Company’s resort optimization initiative included in Cost of vacation ownership interests on the Condensed Consolidated Statements of Income.
(j)Includes $2 million of resort closure and employee related costs associated with the resort optimization initiative included within Operating expense on the Condensed Consolidated Statements of Income.
Three Months Ended September 30, 2025
Net revenuesVacation OwnershipTravel and MembershipTotal
Revenues from external customers$876 
(a)
$167 $1,043 
Intersegment revenues— 2 2 
876 169 1,045 
Reconciliation of revenues
Other revenues (b)
1 
Elimination of intersegment revenues(2)
Total consolidated revenues$1,044 
Less:
Property management expense170 — 
(c)
Marketing
124 
(d)
10 
Commissions116 — 
(c)
General and administrative (e)
62 23 
Sales administration58 — 
(c)
Consumer financing interest33 — 
(c)
Licensing fees28 — 
(c)
Developer obligations (f)
24 — 
(c)
Fee-for-Service expenses
14 — 
(c)
Cost of sales7 
(g)
52 
Contact center— 
(c)
18 
Resort services— 
(c)
7 
Other segment items (h)
9 1 
Reportable segment Adjusted EBITDA
$231 $58 $289 
Other Adjusted EBITDA
(23)
Adjusted EBITDA$266 
Three Months Ended September 30, 2025
Reconciliation of Adjusted EBITDATotal
Adjusted EBITDA$266 
Interest expense(60)
Depreciation and amortization(31)
Stock-based compensation(12)
Asset impairments, net (i)
(7)
Interest income
3 
Other (j)
(1)
Income before income taxes158 
Provision for income taxes(47)
Net income attributable to Travel + Leisure Co. shareholders$111 
(a)Includes $146 million provision for loan losses, net.
(b)Represents revenue recognized at the Company's Corporate and other segment for managing an insurance program on behalf of homeowners associations.
(c)Expense category not regularly provided to the CODM for this segment.
(d)Excludes licensing fees which are reported within Marketing on the Condensed Consolidated Statements of Income, as it is separately disclosed.
(e)Excludes stock-based compensation and legacy items which are not included in the determination of Adjusted EBITDA.
(f)Represents maintenance fees incurred by the Company for unsold VOIs, net of monetization.
(g)Represents Cost of vacation ownership interests on the Condensed Consolidated Statements of Income. Excludes $6 million of inventory impairments for the three months ended September 30, 2025, which are not included in the determination of adjusted EBITDA.
(h)Includes expenses for VOI travel packages, VOI incentives, and professional fees reported within Operating expenses, and other non-operating income/expense items included in the determination of Adjusted EBITDA such as dividend income.
(i)Includes $6 million of inventory impairments for the three months ended September 30, 2025, included in Cost of vacation ownership interests on the Condensed Consolidated Statements of Income.
(j)Represents adjustments for other items that meet the conditions of unusual and/or infrequent.
Nine Months Ended September 30, 2026
Net revenuesVacation OwnershipTravel and MembershipTotal
Revenues from external customers$2,658 
(a)
$466 $3,124 
Intersegment revenues— 5 5 
2,658 471 3,129 
Reconciliation of revenues
Other revenues (b)
1 
Elimination of intersegment revenues(5)
Total consolidated revenues$3,125 
Less:
Property management expense543 — 
(c)
Marketing388 
(d)
27 
Commissions352 — 
(c)
General and administrative (e)
195 67 
Sales administration177 — 
(c)
Consumer financing interest99 — 
(c)
Licensing fees86 — 
(c)
Cost of sales59 
(f)
140 
Developer obligations (g)
27 — 
(c)
Fee-for-Service expenses19 — 
(c)
Contact center— 
(c)
51 
Resort services— 
(c)
22 
Other segment items (h)
25 4 
Reportable segment Adjusted EBITDA$688 $160 $848 
Elimination of intersegment Adjusted EBITDA
1 
Other Adjusted EBITDA
(72)
Adjusted EBITDA$777 
Nine Months Ended September 30, 2026
Reconciliation of Adjusted EBITDATotal
Adjusted EBITDA$777 
Interest expense (i)
(171)
Depreciation and amortization(99)
Stock-based compensation(44)
Inventory write-downs and asset impairments (j)
(27)
Acquisition and divestiture related deal costs(19)
Restructuring(10)
Integration costs(1)
Legacy items5 
Interest income
9 
Other (k)
(11)
Income before income taxes409 
Provision for income taxes(113)
Net income attributable to Travel + Leisure Co. shareholders$296 
(a)Includes $389 million provision for loan losses, net.
(b)Represents revenue recognized at the Company's Corporate and other segment for managing an insurance program on behalf of homeowners associations.
(c)Expense category not regularly provided to the CODM for this segment.
(d)Excludes licensing fees which are reported within Marketing on the Condensed Consolidated Statements of Income, as it is separately disclosed.
(e)Excludes stock-based compensation and legacy items which are not included in the determination of Adjusted EBITDA.
(f)Represents Cost of vacation ownership interests on the Condensed Consolidated Statements of Income. Excludes $27 million of inventory impairments for the nine months ended September 30, 2026, which are not included in the determination of Adjusted EBITDA.
(g)Represents maintenance fees incurred by the Company for unsold VOIs, net of monetization.
(h)Includes expenses for VOI travel packages, VOI incentives, and professional fees reported within Operating expenses, and other non-operating income/expense items included in the determination of Adjusted EBITDA such as dividend income and asset sales.
(i)Includes $2 million of debt modification costs associated with the refinancing of the $650 million 6.625% secured notes which were due July 2026 and $1 million of debt extinguishment costs related to the Acquisitions.
(j)Includes $27 million of inventory impairments and write-downs related to the Company’s resort optimization initiative for the nine months ended September 30, 2026, included in Cost of vacation ownership interests on the Condensed Consolidated Statements of Income.
(k)Includes $10 million of resort closure and employee related costs associated with the resort optimization initiative included within Operating expense on the Condensed Consolidated Statements of Income and $1 million for other items that meet the conditions of unusual and/or infrequent.
Nine Months Ended September 30, 2025
Net revenuesVacation OwnershipTravel and MembershipTotal
Revenues from external customers$2,486 
(a)
$508 $2,994 
Intersegment revenues— 6 6 
2,486 514 3,000 
Reconciliation of revenues
Other revenues (b)
2 
Elimination of intersegment revenues(6)
Total consolidated revenues$2,996 
Less:
Property management expense511 — 
(c)
Marketing331 
(d)
31 
Commissions317 — 
(c)
General and administrative (e)
178 69 
Sales administration163 — 
(c)
Consumer financing interest101 — 
(c)
Developer obligations (f)
84 — 
(c)
Licensing fees76 — 
(c)
Cost of sales52 
(g)
152 
Fee-for-Service expenses40 — 
(c)
Contact center— 
(c)
54 
Resort services— 
(c)
23 
Other segment items (h)
25 4 
Reportable segment Adjusted EBITDA$608 $181 $789 
Other Adjusted EBITDA
(71)
Adjusted EBITDA$718 
Nine Months Ended September 30, 2025
Reconciliation of Adjusted EBITDATotal
Adjusted EBITDA$718 
Interest expense(175)
Depreciation and amortization(92)
Stock-based compensation(38)
Asset impairments, net (i)
(8)
Interest income
6 
Other (j)
(1)
Income before income taxes410 
Provision for income taxes(119)
Net income attributable to Travel + Leisure Co. shareholders$291 
(a)Includes $365 million provision for loan losses, net.
(b)Represents revenue recognized at the Company's Corporate and other segment for managing an insurance program on behalf of homeowners associations.
(c)Expense category not regularly provided to the CODM for this segment.
(d)Excludes licensing fees which are reported within Marketing on the Condensed Consolidated Statements of Income, as it is separately disclosed.
(e)Excludes stock-based compensation and legacy items which are not included in the determination of Adjusted EBITDA.
(f)Represents maintenance fees incurred by the Company for unsold VOIs, net of monetization.
(g)Represents Cost of vacation ownership interests on the Condensed Consolidated Statements of Income. Excludes $6 million of inventory impairments for the nine months ended September 30, 2025, which are not included in the determination of Adjusted EBITDA.
(h)Includes expenses for VOI travel packages, VOI incentives, and professional fees reported within Operating expenses, and other non-operating income/expense items included in the determination of Adjusted EBITDA such as dividend income and asset sales.
(i)Includes $6 million of inventory impairments for the nine months ended September 30, 2025, included in Cost of vacation ownership interests on the Condensed Consolidated Statements of Income.
(j)Represents adjustments for other items that meet the conditions of unusual and/or infrequent.
Nine Months Ended
September 30,
Capital Expenditures20262025
Vacation Ownership$38 $39 
Travel and Membership15 13 
Total reportable segments53 52 
Corporate and other10 33 
Total Company$63 $85 
Segment Assets (a)
September 30,
2026		December 31, 2025
Vacation Ownership$5,521 $5,022 
Travel and Membership1,316 1,334 
Total reportable segments6,837 6,356 
Corporate and other464 404 
Total Company$7,301 $6,760 
(a)Excludes investment in consolidated subsidiaries.