v3.24.3
BUSINESS SEGMENTS
 9 Months Ended
Sep. 30, 2024
Segment Reporting [Abstract]  
BUSINESS SEGMENTS BUSINESS SEGMENTS
Beginning in the 2024 first quarter, we modified our segment structure as a result of a change in the way our chief operating decision maker (“CODM”) evaluates performance and allocates resources within the Company, resulting in the following four reportable business segments: (1) U.S. & Canada, (2) Europe, Middle East & Africa (“EMEA”), (3) Greater China, and (4) Asia Pacific excluding China (“APEC”). Our Caribbean & Latin America (“CALA”) operating segment does not meet the applicable accounting criteria for separate disclosure as a reportable business segment, and as such, we include its results in “Unallocated corporate and other.” We revised the prior period amounts shown in the tables below to conform to our current presentation.
We evaluate the performance of our operating segments using “segment profits,” which is based largely on the results of the segment without allocating corporate expenses, income taxes, indirect general, administrative, and other expenses, or certain restructuring and merger-related charges. We assign gains and losses, equity in earnings or losses, and direct general, administrative, and other expenses to each of our segments. “Unallocated corporate and other” includes a portion of our revenues (such as fees we receive from our credit card programs and vacation ownership licensing agreements), revenues and expenses for our Loyalty Program, general, administrative, and other expenses, certain restructuring and merger-related charges, equity in earnings or losses, and other gains or losses that we do not allocate to our segments, as well as results of our CALA operating segment.
Our CODM monitors assets for the consolidated Company but does not use assets by operating segment when assessing performance or making operating segment resource allocations.
Segment Revenues
The following tables present our revenues disaggregated by segment and major revenue stream for the 2024 third quarter, 2023 third quarter, 2024 first three quarters, and 2023 first three quarters:
Three Months Ended September 30, 2024
(in millions)U.S. & Canada
EMEA
Greater China
APEC
Total
Gross fee revenues$747 $153 $62 $82 $1,044 
Contract investment amortization(19)(3)— (2)(24)
Net fee revenues728 150 62 80 1,020 
Owned, leased, and other revenue95 169 5 30 299 
Cost reimbursement revenue3,773 316 75 120 4,284 
Total reportable segment revenue$4,596 $635 $142 $230 $5,603 
Unallocated corporate and other
652 
Total revenues
$6,255 
Three Months Ended September 30, 2023
(in millions)U.S. & CanadaEMEAGreater ChinaAPECTotal
Gross fee revenues$690 $143 $71 $69 $973 
Contract investment amortization(16)(4)— (1)(21)
Net fee revenues674 139 71 68 952 
Owned, leased, and other revenue94 155 6 28 283 
Cost reimbursement revenue3,565 309 83 103 4,060 
Total reportable segment revenue$4,333 $603 $160 $199 $5,295 
Unallocated corporate and other
633 
Total revenues
$5,928 
Nine Months Ended September 30, 2024
(in millions)U.S. & CanadaEMEAGreater ChinaAPECTotal
Gross fee revenues$2,227 $425 $186 $243 $3,081 
Contract investment amortization(57)(10)— (4)(71)
Net fee revenues2,170 415 186 239 3,010 
Owned, leased, and other revenue314 444 18 98 874 
Cost reimbursement revenue11,367 916 226 359 12,868 
Total reportable segment revenue$13,851 $1,775 $430 $696 $16,752 
Unallocated corporate and other
1,919 
Total revenues
$18,671 
Nine Months Ended September 30, 2023
(in millions)U.S. & CanadaEMEAGreater ChinaAPECTotal
Gross fee revenues$2,113 $381 $196 $199 $2,889 
Contract investment amortization(49)(10)— (3)(62)
Net fee revenues2,064 371 196 196 2,827 
Owned, leased, and other revenue327 419 15 95 856 
Cost reimbursement revenue10,722 872 234 300 12,128 
Total reportable segment revenue$13,113 $1,662 $445 $591 $15,811 
Unallocated corporate and other
1,807 
Total revenues
$17,618 
Segment Profits
Three Months EndedNine Months Ended
(in millions)September 30, 2024September 30, 2023September 30, 2024September 30, 2023
U.S. & Canada$617 $707 $2,029 $2,120 
EMEA152 144 386 354 
Greater China46 60 144 165 
APEC66 58 200 171 
Unallocated corporate and other
73 159 279 378 
Interest expense, net of interest income(168)(139)(485)(391)
Provision for income taxes(202)(237)(633)(562)
Net income$584 $752 $1,920 $2,235