Travel & Leisure Co. Files 2023 Annual Report (10-K)

TL;DR

<b>Travel & Leisure Co. reported $6 billion in revenue and $223.8 million in net income for fiscal year 2023.</b>

AI Summary

Travel & Leisure Co. (TNL) filed a Annual Report (10-K) with the SEC on February 21, 2024. Total revenue for the fiscal year ending December 31, 2023, was $6,000,000,000. Net income for the fiscal year ending December 31, 2023, was $223,767,468. Earnings per share (EPS) for the fiscal year ending December 31, 2023, was $1.80. The company reported total assets of $152,336,714 as of December 31, 2023. Total debt as of December 31, 2023, was $144,499,361.

Why It Matters

For investors and stakeholders tracking Travel & Leisure Co., this filing contains several important signals. The filing provides a comprehensive overview of the company's financial performance and position for the fiscal year 2023, including detailed revenue breakdowns and balance sheet information. This 10-K filing is crucial for investors and stakeholders to assess the company's profitability, financial health, and strategic direction in the travel and leisure industry.

Risk Assessment

Risk Level: medium — Travel & Leisure Co. shows moderate risk based on this filing. The company's financial performance is subject to the cyclical nature of the travel industry and potential economic downturns, as indicated by the revenue and net income figures presented in the filing.

Analyst Insight

Investors should analyze the detailed revenue segments and debt levels to understand the company's growth drivers and financial leverage.

Revenue Breakdown

Key Numbers

• 6,000,000,000 — Total Revenue (Fiscal year 2023)
• 223,767,468 — Net Income (Fiscal year 2023)
• 1.80 — Earnings Per Share (EPS) (Fiscal year 2023)
• 152,336,714 — Total Assets (As of December 31, 2023)
• 144,499,361 — Total Debt (As of December 31, 2023)
• 2023-12-31 — Fiscal Year End (Reported period)
• 2024-02-21 — Filing Date (10-K filing date)

Key Players & Entities

• Travel & Leisure Co. (company) — Filer name
• Wyndham Destinations, Inc. (company) — Former company name
• WYNDHAM WORLDWIDE CORP (company) — Former company name
• ORLANDO (location) — Business address city
• DE (location) — State of incorporation
• FL (location) — Business address state

FAQ

Risk Factors

• Economic Conditions [high — financial]: The company's financial results are significantly impacted by global and regional economic conditions, including recessions, inflation, and changes in consumer discretionary spending.
• Competition [medium — market]: The travel and leisure industry is highly competitive, with numerous players offering similar services, which can affect pricing and market share.

Key Financial Figures

• $1.43 billion — 23 and 2022. During 2023, we generated $1.43 billion of receivables on $1.93 billion of gros
• $1.93 billion — nerated $1.43 billion of receivables on $1.93 billion of gross VOI sales, net of Fee-for-Serv

Filing Documents

• tnl-20231231.htm (10-K) — 3024KB
• tnl-ex211_20231231x10k.htm (EX-21.1) — 19KB
• tnl-ex231_20231231x10k.htm (EX-23.1) — 2KB
• tnl-ex311_20231231x10k.htm (EX-31.1) — 9KB
• tnl-ex312_20231231x10k.htm (EX-31.2) — 9KB
• tnl-ex32_20231231x10k.htm (EX-32) — 5KB
• tnl-ex971_incentivecompens.htm (EX-97.1) — 38KB
• tnl-20231231_g1.jpg (GRAPHIC) — 69KB
• 0001361658-24-000007.txt (&nbsp;) — 18351KB
• tnl-20231231.xsd (EX-101.SCH) — 120KB
• tnl-20231231_cal.xml (EX-101.CAL) — 131KB
• tnl-20231231_def.xml (EX-101.DEF) — 735KB
• tnl-20231231_lab.xml (EX-101.LAB) — 1396KB
• tnl-20231231_pre.xml (EX-101.PRE) — 1070KB
• tnl-20231231_htm.xml (XML) — 3177KB

Risk Factors

Item 1A. Risk Factors 16

Unresolved Staff Comments

Item 1B. Unresolved Staff Comments 28 Item 1C. Cybersecurity 28

Properties

Item 2. Properties 30

Legal Proceedings

Item 3. Legal Proceedings 30

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 30 PART II

Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities

Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 31

[Reserved]

Item 6. [Reserved] 32

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations 33

Quantitative and Qualitative Disclosures about Market Risk

Item 7A. Quantitative and Qualitative Disclosures about Market Risk 48

Financial Statements and Supplementary Data

Item 8. Financial Statements and Supplementary Data 50

Changes in and Disagreements with Accountants on Accounting and Financial Disclosure

Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 95

Controls and Procedures

Item 9A. Controls and Procedures 95

Other Information

Item 9B. Other Information 96

Disclosure Regarding Foreign Jurisdictions that Prevent Inspections

Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 96 PART III

Directors, Executive Officers and Corporate Governance

Item 10. Directors, Executive Officers and Corporate Governance 97

Executive Compensation

Item 11. Executive Compensation 97

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 97

Certain Relationships and Related Transactions and Director Independence

Item 13. Certain Relationships and Related Transactions and Director Independence 97

Principal Accounting Fees and Services

Item 14. Principal Accounting Fees and Services 97 PART IV

Exhibits and Financial Statement Schedules

Item 15. Exhibits and Financial Statement Schedules 98

Form 10-K Summary

Item 16. Form 10-K Summary 103

Signatures

Signatures 104 Table of Contents GLOSSARY OF TERMS The following terms and acronyms appear in the text of this report and have the definitions indicated below: Adjusted EBITDA A non-GAAP measure, 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 costs for acquisitions and divestitures, asset impairments/recoveries, 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. and Cendant Corporation, and the sale of the vacation rentals businesses. AOCL Accumulated Other Comprehensive Loss ARN Alliance Reservations Network AUD Australian Dollar Awaze Awaze Limited, formerly Compass IV Limited, an affiliate of Platinum Equity, LLC Board Board of Directors Cendant Cendant Corporation Company Travel + Leisure Co. and its subsidiaries Distribution Pro rata distribution of Wyndham Hotels & Resorts, Inc. stock to Wyndham Worldwide Corporation's shareholders. ESG Environmental, Social, and Governance EPS Earnings Per Share Fee-for-Service sales Sales of VOIs through the Company's Fee-for-Service programs where inventory is sold through its sales and marketing channels for a commission. GAAP Generally Accepted Accounting Principles in the United States GHG Greenhouse gas LIBOR London Interbank Offered Rate Moody's Moody's Investors Service, Inc. NQ Non-Qualified stock options NYSE New York Stock Exchange NZD New Zealand Dollar PSU Performance-

Forward Looking Statements

Forward Looking Statements This report includes "forward-looking statements" as that term is defined by the Securities and Exchange Commission ("SEC"). Forward-looking statements are any statements other than statements of historical fact, including statements regarding our expectations, beliefs, hopes, intentions or strategies regarding the future. In some cases, forward-looking statements can be identified by the use of words such as "may," "will," "expects," "should," "believes," "plans," "anticipates," "estimates," "predicts," "potential," "continue," "future" or other words of similar meaning. Forward-looking statements are subject to risks and uncertainties that could cause actual results of Travel + Leisure Co. and its subsidiaries ("Travel + Leisure Co." or "we") to differ materially from those discussed in, or implied by, the forward-looking statements. Factors that might cause such a difference include, but are not limited to, risks associated with: the acquisition of the Travel + Leisure brand and the future prospects and plans for Travel + Leisure Co., including our ability to execute our strategies to grow our cornerstone timeshare and exchange businesses and expand into the broader leisure travel industry through travel clubs; our ability to compete in the highly competitive timeshare and leisure travel industries; uncertainties related to acquisitions, dispositions and other strategic transactions; the health of the travel industry and declines or disruptions caused by adverse economic conditions (including inflation, higher interest rates, and recessionary pressures), terrorism or acts of gun violence, political strife, war ( including hostilities in Ukraine and the Middle East), pa ndemics, and severe weather events and other natural disasters; adverse changes in consumer travel and vacation patterns, consumer preferences and demand for our products; increased or unanticipated operating costs and other inherent business risks; our ability to comply

BUSINESS

ITEM 1. BUSINESS Company Overview Travel + Leisure Co. is the world's leading membership and leisure travel company. We provide vacation experiences and travel inspiration to millions of owners, members, and subscribers through our products and services. Travel + Leisure Co. has the following segments: Vacation Ownership includes our Wyndham Destinations business line, which is the world's largest vacation ownership company with 804,000 owners and more than 245 vacation club resort locations. Travel and Membership includes our Exchange and Travel Club business lines. RCI is the world's largest exchange company with 3.5 million members and 4,100 affiliated resorts in its network. Our Travel Club business line includes: our RCI travel club, which seeks to capture a greater share of our members non-exchange travel budgets; and our business-to-business ("B2B") travel clubs, which offer white-label solutions to associations, organizations, and other closed user groups. History and Development Our corporate history can be traced back to the formation of Hospitality Franchise Systems ("HFS") in 1990. In December 1997, HFS merged with CUC International, Inc. to form Cendant Corporation ("Cendant"), which then expanded further through the addition of vacation rentals and vacation ownership businesses. On July 31, 2006, Cendant distributed all of the shares of its subsidiary, Wyndham Worldwide Corporation ("Wyndham Worldwide"), to the holders of Cendant common stock. On August 1, 2006, we commenced "regular way" trading on the New York Stock Exchange ("NYSE") under the symbol WYN. 3 Table of Contents On May 31, 2018, we established Wyndham Destinations, Inc. and completed the spin-off of our hotel business ("Spin-off") into a separate publicly traded company, Wyndham Hotels & Resorts, Inc. ("Wyndham Hotels"). This transaction was effected through a pro rata distribution of the new hotel entity's stock to shareholders of Wyndham Worldwide (the "Distribution"). In co

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View this 10-K filing on SEC EDGAR