Travel + Leisure(US:TNL)2025-02-19 16:43Share Repurchase and Stockholder Equity - The Board has authorized a total of $7.0 billion for the Share Repurchase Program, with the latest increase of $500 million in May 2024[185]. - The company repurchased common stock totaling $235 million in 2024, compared to $307 million in 2023, showing a reduction of about 23.4%[331]. - The company has $441 million remaining in its share repurchase program as of December 31, 2024, with a total authorization of $7.0 billion[388]. - The company’s total stockholders' equity decreased from $4,279 million in 2023 to $4,328 million in 2024, representing a decline of approximately 1.2%[331]. Financial Performance - Net revenues for 2024 reached $3,864 million, an increase of 3% from $3,750 million in 2023[322]. - Operating income for 2024 was $733 million, reflecting a slight increase from $720 million in 2023[322]. - Net income attributable to shareholders was $411 million in 2024, compared to $396 million in 2023, marking a 3.8% increase[324]. - Basic earnings per share from continuing operations increased to $5.39 in 2024, compared to $5.24 in 2023[322]. - Basic earnings per share for 2024 were $5.87, an increase from $5.31 in 2023, reflecting improved profitability[387]. Debt and Liabilities - As of December 31, 2024, the company reported a total liabilities figure of $7,615 million, down from $7,655 million in 2023[327]. - The company’s total liabilities increased from $7,196 million in 2023 to $7,433 million in 2024, marking an increase of approximately 3.3%[331]. - Total debt increased to $3,468 million as of December 31, 2024, up from $3,575 million in 2023, with term notes at $1,746 million[437]. - The Company had $2.39 billion of outstanding secured notes issued prior to December 31, 2023, with interest payable semi-annually[455]. Cash and Cash Equivalents - Cash and cash equivalents decreased to $167 million in 2024 from $282 million in 2023[327]. - The total balance of cash and cash equivalents as of December 31, 2024, was $67.1 million, down from $71.4 million in 2023, indicating a decrease of about 4.3%[331]. Revenue Recognition and Management - The Company recognizes revenues from membership dues on a straight-line basis over the membership period[375]. - The Company recognizes deferred tax assets and liabilities based on temporary differences using currently enacted tax rates[354]. - The Company recorded capitalized interest of $1 million in 2024, less than $1 million in 2023, and $1 million in 2022[352]. Market Risks and Hedging - The company does not engage in trading or speculative activities in the derivatives markets, focusing instead on managing interest rate and foreign currency risks[300]. - The fair value of outstanding foreign exchange hedging instruments was $72 million as of December 31, 2024, with a 10% change in foreign currency exchange rates potentially impacting fair value by approximately $6 million[302]. - The company anticipates that SOFR and asset-backed commercial paper rates will remain primary market risk exposures going forward[302]. Acquisitions and Investments - The acquisition of Accor Vacation Club for $50 million on March 1, 2024, expands the company's portfolio and enhances its presence in the Asia Pacific region[391]. - The Company acquired Playbook365 for $13 million, consisting of $6 million in cash and contingent consideration valued at $7 million, potentially increasing to $24 million based on performance metrics[393]. - The Company acquired the Travel + Leisure brand for $100 million, with payments structured over several years, aimed at expanding travel services and membership offerings[397]. - The acquisition of Alliance Reservations Network was completed for $102 million, enhancing the Company's travel booking technology solutions[398]. Tax and Compliance - The income tax provision for 2024 was $135 million, with a pre-tax income of $513 million from domestic and foreign operations[409]. - The effective income tax rate for 2024 was 26.4%, differing from the federal statutory rate due to various factors including state taxes and foreign operations[412]. - The unrecognized tax benefits as of December 31, 2024, amounted to $22 million, unchanged from 2023, with a gross amount of $17 million that could affect the effective tax rate if recognized[413]. Vacation Ownership and Sales - Vacation ownership interest sales increased to $1,721 million in 2024, up 8.8% from $1,582 million in 2023[322]. - Vacation Ownership segment revenues reached $3,171 million in 2024, up from $3,041 million in 2023, driven by a 9% increase in vacation ownership interest sales to $1,721 million[386]. - The company’s vacation ownership contract receivables (VOCRs) increased to $3.233 billion in 2024 from $3.101 billion in 2023, with net VOCR originations of $1.53 billion in 2024[418][420]. Credit Risk Management - The provision for loan losses was $432 million in 2024, up from $348 million in 2023, indicating a focus on managing credit risk[329]. - The allowance for loan losses on VOCRs rose to $614 million in 2024 from $574 million in 2023, reflecting a provision for loan losses of $432 million in 2024[421]. - The company’s vacation ownership contract receivables are assessed using a static pool analysis to project future expected losses, indicating a proactive approach to managing credit risk[347]. Operational Metrics - Total property management fees and reimbursable revenues reached $845 million in 2024, compared to $814 million in 2023 and $763 million in 2022[374]. - The Company completed its annual goodwill impairment test and determined that no impairment exists as of October 1, 2024[361]. - The Company performed annual goodwill impairment tests and found no impairments, with total goodwill increasing to $966 million as of December 31, 2024[405].