Travel+Leisure Timeshare Market Dynamics and Financial Overview
APPENDIX: NON-GAAP RECONCILIATION
Non-GAAP Measure: Reconciliation of Net Income to Adjusted Net Income to Adjusted EBITDA
($ in millions except per share data)
Reconciliation of Net income
to Adjusted EBITDA
Net income attributable to Travel + Leisure Co. shareholders
Gain on disposal of discontinued business, net of income taxes
Net income from continuing operations
Three Months Ended
September 30,
2023
$ 110
EPS
Twelve Months Ended
December 31,
2022
$ 1.49
$ 357
(1)
$ 110
$ 1.49
$ 356
Restructuring (1)
23
14
9
EPS
$ 4.24
$ 4.23
Amortization of acquired intangibles (2)
Legacy Items
Asset impairments, net
Loss on equity investment
COVID-19 related costs
Fair value change in contingent consideration
1
11
52
(10)
Taxes (3)
(1)
(8)
Adjusted net income
$ 113
$ 1.54
$ 380
$ 4.52
Income taxes on adjusted net income
Interest expense
40
138
64
195
Depreciation
25
110
Stock-based compensation expense
(4)
9
42
Interest income
Adjusted EBITDA
(3)
(6)
$ 248
$ 859
Diluted shares outstanding
73.6
84.2
TRAVEL+
LEISURE
Note: Amounts may not calculate due to rounding.
(1) Includes $3 million of stock-based compensation expenses for the twelve months ended December 31, 2022 associated with the 2022 restructuring.
(2) Amortization of acquisition-related intangible assets is excluded from Adjusted net income and Adjusted EBITDA.
(3) Represents the tax effects on the adjustments. We determine the tax effects of the non-GAAP adjustments based on the nature of the underlying adjustment and the relevant tax jurisdictions.
The tax effect of the non-GAAP adjustments was calculated based on an evaluation of the statutory tax treatment and the applicable statutory tax rate in the relevant jurisdictions.
(4) All stock-based compensation is excluded from adjusted EBITDA.
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