Annual report [Section 13 and 15(d), not S-K Item 405]

Transactions With Former Parent

v3.25.4
Transactions With Former Parent
 12 Months Ended
Dec. 31, 2023
Related Party Transactions [Abstract]  
Transactions With Former Parent
17. TRANSACTIONS WITH FORMER PARENT
The Company has a number of arrangements with its former Parent for services provided between both parties as described below.
License Agreement and Other Agreements with Former Parent
In connection with the Company’s spin-off, the Company and former Parent entered into long-term exclusive license agreements to retain former Parents’ affiliations with one of the hospitality industry’s top-rated loyalty programs, Wyndham Rewards, as well as to continue to collaborate on inventory-sharing and customer cross-sell initiatives.
In connection with the Company’s license, development and non-competition agreement, the Company recorded license fees from former Parent in the amounts of $101 million, $94 million and $90 million during 2025, 2024 and 2023, respectively. Further, the Company recorded revenues of $17 million, $19 million and $15 million during 2025, 2024 and 2023, respectively, for activities associated with the Wyndham Rewards program. The Company also recorded license fees from a former affiliate of $8 million, $6 million and $7 million during 2025, 2024 and 2023, respectively. Such fees are recorded within license and other fees on the Consolidated Statements of Income.
Transfer of Former Parent Liabilities and Issuances of Guarantees to Former Parent and Affiliates
Upon the distribution of the Company’s common stock to former Parent stockholders, the Company entered into certain guarantee commitments with its former Parent. These guarantee arrangements relate to certain former Parent contingent tax and other corporate liabilities. The Company assumed and is responsible for one-third of such contingent liabilities while its former Parent is responsible for the remaining two-thirds. The amount of liabilities assumed by the Company in connection with the spin-off was $1 million and $8 million as of December 31, 2025 and 2024, respectively, which were included within accrued expenses and other current liabilities on its Consolidated Balance Sheets. In addition, the Company had immaterial receivables due from former Parent as of December 31, 2025 and 2024 which were included within current assets on its Consolidated Balance Sheets.