Quarterly report pursuant to Section 13 or 15(d)

Revenue Recognition

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Revenue Recognition
 9 Months Ended
Sep. 30, 2022
Revenue from Contract with Customer [Abstract]  
Revenue Recognition
3. REVENUE RECOGNITION
Deferred Revenues
Deferred revenues, or contract liabilities, generally represent payments or consideration received in advance for goods or services that the Company has not yet provided to the customer. Deferred revenues as of September 30, 2022 and December 31, 2021 are as follows:
September 30, 2022 December 31, 2021
Deferred initial franchise fee revenues
 $ 141  $ 145 
Deferred loyalty program revenues
 86  76 
Deferred other revenues
 18  14 
Total
 $ 245  $ 235 

Deferred initial franchise fees represent payments received in advance from prospective franchisees upon the signing of a franchise agreement and are generally recognized to revenue within 13 years. Deferred loyalty revenues represent the portion of
loyalty program fees charged to franchisees, net of redemption costs, that have been deferred and will be recognized over time based upon loyalty point redemption patterns.
Performance Obligations
A performance obligation is a promise in a contract to transfer a distinct good or service to a customer. The consideration received from a customer is allocated to each distinct performance obligation and recognized as revenue when, or as, each performance obligation is satisfied. The following table summarizes the Company’s remaining performance obligations for the twelve-month periods set forth below:
10/1/2022 - 9/30/2023 10/1/2023 - 9/30/2024 10/1/2024 - 9/30/2025

Thereafter

Total
Initial franchise fee revenues
 $ 16  $ 8  $ 7  $ 110  $ 141 
Loyalty program revenues
 54  21  9  2  86 
Other revenues
 12  1  1  4  18 
Total
 $ 82  $ 30  $ 17  $ 116  $ 245 
Disaggregation of Net Revenues
The table below presents a disaggregation of the Company’s net revenues from contracts with customers by major services and products for each of the Company’s segments:
Three Months Ended September 30, Nine Months Ended September 30,
2022 2021 2022 2021
Hotel Franchising
Royalties and franchise fees
 $ 148  $ 137  $ 381  $ 327 
Marketing, reservation and loyalty
 159  149  416  353 
License and other fees
 28  20  74  60 
Other
 32  31  103  89 
Total Hotel Franchising
 367  337  974  829 
Hotel Management
Royalties and franchise fees
 4  7  13  17 
Owned hotel revenues
 —  23  42  57 
Management fees
 3  9  12  25 
Cost reimbursements
 32  86  119  242 
Other
 1  1  4  3 
Total Hotel Management
 40  126  190  344 
Net revenues
 $ 407  $ 463  $ 1,164  $ 1,173 
Capitalized Contract Costs
The Company incurs certain direct and incremental sales commissions costs in order to obtain hotel franchise and management contracts. Such costs are capitalized and subsequently amortized, beginning upon hotel opening, over the first non-cancellable period of the agreement. In the event an agreement is terminated prior to the end of the first non-cancellable period, any unamortized cost is immediately expensed. In addition, the Company also capitalizes costs associated with the sale and installation of property management systems to its franchisees, which are amortized over the remaining non-cancellable period of the franchise agreement. As of September 30, 2022 and December 31, 2021, capitalized contract costs were $32 million and $33 million, respectively, of which $4 million and $5 million, respectively, was included in other current assets and $28 million for both periods, was included in other non-current assets on its Condensed Consolidated Balance Sheets.