|3 Months Ended|
Mar. 31, 2020
|Subsequent Events [Abstract]|
13. Subsequent Events
The COVID-19 pandemic has been, and continues to be, an unprecedented disruption in the U.S. economy generally and in the travel, hospitality and vacation ownership industries in particular. The impacts of the pandemic have included, among other things, government ordered travel restrictions and restrictions on business operations. Some of our Club and Club Associate Resorts were closed in accordance with government mandates and advisories. As a result, we temporarily closed all of our VOI sales centers, our retail marketing operations at Bass Pro Shops, Cabela’s stores and outlet malls and our Choice Hotels call transfer program. In connection with these closures and the impact on our operations, we took steps to mitigate our costs, including a reduction in workforce of over 970 positions and placed another 3,700 of our associates on temporary furlough and reduced work hours. We also suspended the payment of regular quarterly dividends, reduced our new inventory acquisition and development expenditures and drew down $60 million under our lines-of-credit and various receivable backed facilities. We will continue to monitor the course of the COVID-19 pandemic and plan to pursue the reopening of our resorts on May 16, 2020 and VOI sales centers and marketing operations beginning in June 2020 on a phased schedule subject to the restrictions of applicable government orders and the safety of our owners, guests and employees. Sustained adverseimpact on our revenues, net income or other operating results due to the COVID-19 pandemic could result in failures to comply with various loan covenants in our outstanding indebtedness. While there is no assurance that we will be successful, we will seek waivers from our lenders where necessary.
The entire disclosure for significant events or transactions that occurred after the balance sheet date through the date the financial statements were issued or the date the financial statements were available to be issued. Examples include: the sale of a capital stock issue, purchase of a business, settlement of litigation, catastrophic loss, significant foreign exchange rate changes, loans to insiders or affiliates, and transactions not in the ordinary course of business.
Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef