Transactions With Former Parent |
3 Months Ended | ||||||
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Mar. 31, 2021 | |||||||
| Related Party Transactions [Abstract] | |||||||
| Transactions With Former Parent |
The Company has a number of arrangements with 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.
The Company recorded revenues from former Parent in the amount of $16 million and $17 million for a license, development and non-competition agreement and $2 million and $3 million for activities associated with the Wyndham Rewards program for the three months ended March 31, 2021 and 2020, respectively. The Company also recorded revenues from a former affiliate for license fees of $2 million and $1 million for the three months ended March 31, 2021 and 2020, respectively. Such fees are recorded within license and other fees on the Condensed 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 shareholders, the Company entered into certain guarantee commitments with 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 former Parent is responsible for the remaining two-thirds. The amount of liabilities assumed by the Company in connection with the spin-off was $18 million as of March 31, 2021 and December 31, 2020, which were included within other non-current liabilities on its Condensed Consolidated Balance Sheets. The Company also had a $3 million liability due to former Parent which was included within accrued expenses and other current liabilities on its Condensed Consolidated Balance Sheets as of March 31, 2021 and December 31, 2020. In addition, the Company had $2 million and $4 million of receivables due from former Parent as of March 31, 2021 and December 31, 2020, respectively, which were included within current assets on its Condensed Consolidated Balance Sheets.
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