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ACQUISITIONS AND DISPOSITIONS (Tables)
 12 Months Ended
Dec. 31, 2021
Business Combination and Asset Acquisition [Abstract]  
Consideration transferred The following table presents the fair value of each type of consideration transferred in the Welk Acquisition at December 31, 2021.
(in millions, except per share amounts)
Equivalent shares of Marriott Vacations Worldwide common stock issued1.4 
Marriott Vacations Worldwide common stock price per share as of Welk Acquisition Date$174.18 
Fair value of Marriott Vacations Worldwide common stock issued248 
Cash consideration to Welk, net of cash and restricted cash acquired of $48 million
157 
Total consideration transferred, net of cash and restricted cash acquired$405 
Schedule of recognized identified assets acquired and liabilities assumed
($ in millions)April 1, 2021
(as previously reported)		AdjustmentsApril 1, 2021
(as adjusted)
Vacation ownership notes receivable, net(1)
$254 $1 $255 
Inventory(2)
136 (25)111 
Property and equipment111 (28)83 
Intangible assets(3)
100 2 102 
Other assets19 — 19 
Deferred taxes(45)13 (32)
Debt(189)— (189)
Securitized debt(184)— (184)
Other liabilities(66)(27)(93)
Net assets acquired136 (64)72 
Goodwill(4)
269 64 333 
$405 $— $405 
_________________________
(1)Vacation ownership notes receivable, net has been determined to constitute purchased credit deteriorated assets under the provisions of ASC Topic 326, “Financial Instruments - Credit Losses,” due to the impact of the COVID-19 pandemic on the Welk business and the vacation ownership industry as a whole, and has been accounted for as such. We valued the vacation ownership notes receivable using an income approach, which includes the following significant Level 3 assumptions: default rates, prepayment rates, discount rate and fair value of collateral retained upon customer default.
($ in millions)
Vacation ownership notes receivable$287 
Allowance for credit losses(32)
Vacation ownership notes receivable, net$255 
(2)Inventory consists of completed unsold VOIs. We valued inventory using an income approach, which includes significant Level 3 assumptions, such as estimates of future income growth, marketing and sales costs and discount rates.
(3)Intangible assets consist of management contracts with an estimated 20 year useful life. We valued management contracts using the multi-period excess earnings method, which is a variation of the income approach. This method estimates an intangible asset’s value based on the present value of the incremental after-tax cash flows attributable to the intangible asset. This valuation approach utilizes the following Level 3 inputs: future income growth, future cost estimates and discount rate.
(4)Goodwill is calculated as total consideration transferred, net of cash acquired, less identified net assets acquired. It represents the value that we expect to obtain from growth opportunities from our combined operations and is not deductible for tax purposes.
Business acquisition, pro forma information Accordingly, these unaudited pro forma results are presented for informational purposes only and are not necessarily indicative of what the actual results of operations of the combined company would have been if the Welk Acquisition had occurred at the beginning of the period presented, nor are they indicative of future results of operations.
There were no Welk acquisition-related costs included in the unaudited pro forma results below for 2021, and $19 million included for 2020.
($ in millions, except per share data)20212020
Revenues$3,894 $3,011 
Net income (loss)$67 $(272)
Net income (loss) attributable to common shareholders$66 $(291)
EARNINGS (LOSS) PER SHARE ATTRIBUTABLE TO COMMON SHAREHOLDERS
Basic$1.56 $(7.04)
Diluted$1.53 $(7.04)
Welk Results of Operations
The following table presents the results of Welk operations included in our Income Statement for 2021.
($ in millions)2021
Revenue$146 
Net income$17