What did The Standardx's 'Distribution' segment include prior to the UVC Transaction?

According to The Standardx's 2025 Franchise Disclosure Document, the Distribution segment's earnings were derived from distribution and destination management services through ALG Vacations and Mr & Mrs Smith. Prior to the UVC Transaction, the Distribution segment also included earnings from a paid membership program. This program offered benefits exclusively at certain all-inclusive resorts primarily located in Latin America and the Caribbean.

The UVC Transaction, which occurred during the three months ended March 31, 2024, involved The Standardx selling 80% of the entity that owned the Unlimited Vacation Club paid membership program business to an unrelated third party for $80 million. Following this transaction, The Standardx deconsolidated the entity and accounted for its remaining 20% ownership as an equity method investment in an unconsolidated hospitality venture.

As a result of the UVC Transaction, The Standardx received $41 million in proceeds, net of $39 million of cash disposed, recorded a $20 million equity method investment, and recorded $86 million of guarantee liabilities. Despite the sale, The Standardx continues to manage the Unlimited Vacation Club business under a long-term management agreement and license and royalty agreement. The operating results of the Unlimited Vacation Club business before the UVC Transaction were reported within The Standardx's distribution segment.