QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |||||||||||||||||||
(Address of principal executive offices) | (Zip Code) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
☒ | Accelerated filer | ☐ | Non-accelerated filer | ☐ | Smaller reporting company | |||||||||||||||||||||||||||||||||||||||
Emerging growth company | ||||||||||||||||||||||||||||||||||||||||||||
Page | ||||||||
Part I. | ||||||||
Item 1. | ||||||||
Item 2. | ||||||||
Item 3. | ||||||||
Item 4. | ||||||||
Part II. | ||||||||
Item 1. | ||||||||
Item 1A. | ||||||||
Item 2. | ||||||||
Item 5. | ||||||||
Item 6. | ||||||||
Three Months Ended | |||||||||||
March 31, 2024 | March 31, 2023 | ||||||||||
REVENUES | |||||||||||
Sale of vacation ownership products | $ | $ | |||||||||
Management and exchange | |||||||||||
Rental | |||||||||||
Financing | |||||||||||
Cost reimbursements | |||||||||||
TOTAL REVENUES | |||||||||||
EXPENSES | |||||||||||
Cost of vacation ownership products | |||||||||||
Marketing and sales | |||||||||||
Management and exchange | |||||||||||
Rental | |||||||||||
Financing | |||||||||||
General and administrative | |||||||||||
Depreciation and amortization | |||||||||||
Litigation charges | |||||||||||
Restructuring | |||||||||||
Royalty fee | |||||||||||
Impairment | |||||||||||
Cost reimbursements | |||||||||||
TOTAL EXPENSES | |||||||||||
Gains and other income, net | |||||||||||
Interest expense, net | ( | ( | |||||||||
Transaction and integration costs | ( | ( | |||||||||
Other | ( | ||||||||||
INCOME BEFORE INCOME TAXES AND NONCONTROLLING INTERESTS | |||||||||||
Provision for income taxes | ( | ( | |||||||||
NET INCOME | |||||||||||
Net loss attributable to noncontrolling interests | |||||||||||
NET INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS | $ | $ | |||||||||
EARNINGS PER SHARE ATTRIBUTABLE TO COMMON STOCKHOLDERS | |||||||||||
Basic | $ | $ | |||||||||
Diluted | $ | $ | |||||||||
CASH DIVIDENDS DECLARED PER SHARE | $ | $ |
Three Months Ended | |||||||||||
March 31, 2024 | March 31, 2023 | ||||||||||
NET INCOME | $ | $ | |||||||||
Foreign currency translation adjustments | |||||||||||
Derivative instrument adjustment, net of tax | ( | ( | |||||||||
OTHER COMPREHENSIVE (LOSS) GAIN, NET OF TAX | ( | ||||||||||
Net loss attributable to noncontrolling interests | |||||||||||
COMPREHENSIVE LOSS ATTRIBUTABLE TO NONCONTROLLING INTERESTS | |||||||||||
COMPREHENSIVE INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS | $ | $ |
Unaudited | |||||||||||
March 31, 2024 | December 31, 2023 | ||||||||||
ASSETS | |||||||||||
Cash and cash equivalents | $ | $ | |||||||||
Restricted cash (including $ | |||||||||||
Accounts and contracts receivable, net (including $ | |||||||||||
Vacation ownership notes receivable, net (including $ | |||||||||||
Inventory | |||||||||||
Property and equipment, net | |||||||||||
Goodwill | |||||||||||
Intangibles, net | |||||||||||
Other (including $ | |||||||||||
TOTAL ASSETS | $ | $ | |||||||||
LIABILITIES AND EQUITY | |||||||||||
Accounts payable | $ | $ | |||||||||
Advance deposits | |||||||||||
Accrued liabilities (including $ | |||||||||||
Deferred revenue | |||||||||||
Payroll and benefits liability | |||||||||||
Deferred compensation liability | |||||||||||
Securitized debt, net (including $ | |||||||||||
Debt, net | |||||||||||
Other | |||||||||||
Deferred taxes | |||||||||||
TOTAL LIABILITIES | |||||||||||
Contingencies and Commitments (Note 10) | |||||||||||
Preferred stock — $ | |||||||||||
Common stock — $ | |||||||||||
Treasury stock — at cost; | ( | ( | |||||||||
Additional paid-in capital | |||||||||||
Accumulated other comprehensive income | |||||||||||
Retained earnings | |||||||||||
TOTAL MVW STOCKHOLDERS' EQUITY | |||||||||||
Noncontrolling interests | ( | ||||||||||
TOTAL EQUITY | |||||||||||
TOTAL LIABILITIES AND EQUITY | $ | $ | |||||||||
The abbreviation VIEs above means Variable Interest Entities. |
Three Months Ended | |||||||||||
March 31, 2024 | March 31, 2023 | ||||||||||
OPERATING ACTIVITIES | |||||||||||
Net income | $ | $ | |||||||||
Adjustments to reconcile net income to net cash, cash equivalents and restricted cash provided by operating activities: | |||||||||||
Depreciation and amortization of intangibles | |||||||||||
Amortization of debt discount and issuance costs | |||||||||||
Vacation ownership notes receivable reserve | |||||||||||
Share-based compensation | |||||||||||
Impairment charges | |||||||||||
Deferred income taxes | |||||||||||
Net change in assets and liabilities: | |||||||||||
Accounts and contracts receivable | ( | ( | |||||||||
Vacation ownership notes receivable originations | ( | ( | |||||||||
Vacation ownership notes receivable collections | |||||||||||
Inventory | |||||||||||
Other assets | ( | ( | |||||||||
Accounts payable, advance deposits and accrued liabilities | ( | ( | |||||||||
Deferred revenue | |||||||||||
Payroll and benefit liabilities | ( | ||||||||||
Deferred compensation liability | ( | ||||||||||
Other liabilities | ( | ||||||||||
Purchase of property for future transfer to inventory | ( | ||||||||||
Other, net | ( | ||||||||||
Net cash, cash equivalents and restricted cash provided by (used in) operating activities | ( | ||||||||||
INVESTING ACTIVITIES | |||||||||||
Capital expenditures for property and equipment (excluding inventory) | ( | ( | |||||||||
Purchase of company owned life insurance | ( | ||||||||||
Purchase and development of property for future sale | ( | ||||||||||
Net cash, cash equivalents and restricted cash used in investing activities | ( | ( |
Three Months Ended | |||||||||||
March 31, 2024 | March 31, 2023 | ||||||||||
FINANCING ACTIVITIES | |||||||||||
Borrowings from securitization transactions | |||||||||||
Repayment of debt related to securitization transactions | ( | ( | |||||||||
Proceeds from debt | |||||||||||
Repayments of debt | ( | ( | |||||||||
Finance lease incentive | |||||||||||
Finance lease payment | ( | ( | |||||||||
Payment of debt issuance costs | ( | ||||||||||
Repurchase of common stock | ( | ( | |||||||||
Payment of dividends | ( | ( | |||||||||
Payment of withholding taxes on vesting of restricted stock units | ( | ( | |||||||||
Net cash, cash equivalents and restricted cash provided by (used in) financing activities | ( | ||||||||||
Effect of changes in exchange rates on cash, cash equivalents and restricted cash | ( | ||||||||||
Change in cash, cash equivalents and restricted cash | ( | ( | |||||||||
Cash, cash equivalents and restricted cash, beginning of period | |||||||||||
Cash, cash equivalents and restricted cash, end of period | $ | $ | |||||||||
SUPPLEMENTAL DISCLOSURES | |||||||||||
Non-cash issuance of treasury stock for employee stock purchase plan | $ | $ | |||||||||
Non-cash transfer from inventory to property and equipment | |||||||||||
Non-cash transfer from property and equipment to inventory | |||||||||||
Non-cash transfer from property and equipment to other assets | |||||||||||
Right-of-use asset obtained in exchange for finance lease obligation | |||||||||||
Non-cash issuance of debt in connection with finance lease | |||||||||||
Interest paid, net of amounts capitalized | $ | $ | |||||||||
Income taxes paid, net of refunds |
Common Stock Issued | Common Stock | Treasury Stock | Additional Paid-In Capital | Accumulated Other Comprehensive Income (Loss) | Retained Earnings | Total MVW Stockholders' Equity | Noncontrolling Interests | Total Equity | |||||||||||||||||||||||||||||||||||||||||||||
BALANCE AT DECEMBER 31, 2023 | $ | $ | ( | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||
— | Net income (loss) | — | — | — | — | ( | |||||||||||||||||||||||||||||||||||||||||||||||
— | Foreign currency translation adjustments | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
— | Derivative instrument adjustment | — | — | — | ( | — | ( | — | ( | ||||||||||||||||||||||||||||||||||||||||||||
— | Share-based compensation plans | — | ( | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
— | Repurchase of common stock | — | ( | — | — | — | ( | — | ( | ||||||||||||||||||||||||||||||||||||||||||||
— | Dividends | — | — | — | — | ( | ( | — | ( | ||||||||||||||||||||||||||||||||||||||||||||
BALANCE AT MARCH 31, 2024 | $ | $ | ( | $ | $ | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||||||||||||||||||
Common Stock Issued | Common Stock | Treasury Stock | Additional Paid-In Capital | Accumulated Other Comprehensive Income (Loss) | Retained Earnings | Total MVW Stockholders' Equity | Noncontrolling Interests | Total Equity | |||||||||||||||||||||||||||||||||||||||||||||
BALANCE AT DECEMBER 31, 2022 | $ | $ | ( | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||
— | Net income | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
— | Foreign currency translation adjustments | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
— | Derivative instrument adjustment | — | — | — | ( | — | ( | — | ( | ||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation plans | — | ( | — | — | ( | — | ( | ||||||||||||||||||||||||||||||||||||||||||||||
— | Repurchase of common stock | — | ( | — | — | — | ( | — | ( | ||||||||||||||||||||||||||||||||||||||||||||
— | Dividends | — | — | — | — | ( | ( | — | ( | ||||||||||||||||||||||||||||||||||||||||||||
BALANCE AT MARCH 31, 2023 | $ | $ | ( | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||
1. | BASIS OF PRESENTATION |
2. | SIGNIFICANT ACCOUNTING POLICIES AND RECENT ACCOUNTING STANDARDS |
3. | ACQUISITIONS |
4. | REVENUE AND RECEIVABLES |
Three Months Ended March 31, 2024 | |||||||||||||||||||||||
($ in millions) | Vacation Ownership | Exchange & Third-Party Management | Corporate and Other | Total | |||||||||||||||||||
Sale of vacation ownership products | $ | $ | $ | $ | |||||||||||||||||||
Ancillary revenues | |||||||||||||||||||||||
Management fee revenues | ( | ||||||||||||||||||||||
Exchange and other services revenues | |||||||||||||||||||||||
Management and exchange | |||||||||||||||||||||||
Rental | |||||||||||||||||||||||
Cost reimbursements | ( | ||||||||||||||||||||||
Revenue from contracts with customers | |||||||||||||||||||||||
Financing | |||||||||||||||||||||||
Total Revenues | $ | $ | $ | $ |
Three Months Ended March 31, 2023 | |||||||||||||||||||||||
($ in millions) | Vacation Ownership | Exchange & Third-Party Management | Corporate and Other | Total | |||||||||||||||||||
Sale of vacation ownership products | $ | $ | $ | $ | |||||||||||||||||||
Ancillary revenues | |||||||||||||||||||||||
Management fee revenues | ( | ||||||||||||||||||||||
Exchange and other services revenues | |||||||||||||||||||||||
Management and exchange | |||||||||||||||||||||||
Rental | |||||||||||||||||||||||
Cost reimbursements | ( | ||||||||||||||||||||||
Revenue from contracts with customers | |||||||||||||||||||||||
Financing | |||||||||||||||||||||||
Total Revenues | $ | $ | $ | $ |
Three Months Ended March 31, 2024 | |||||||||||||||||||||||
($ in millions) | Vacation Ownership | Exchange & Third-Party Management | Corporate and Other | Total | |||||||||||||||||||
Services transferred over time | $ | $ | $ | $ | |||||||||||||||||||
Goods or services transferred at a point in time | |||||||||||||||||||||||
Revenue from contracts with customers | $ | $ | $ | $ |
Three Months Ended March 31, 2023 | |||||||||||||||||||||||
($ in millions) | Vacation Ownership | Exchange & Third-Party Management | Corporate and Other | Total | |||||||||||||||||||
Services transferred over time | $ | $ | $ | $ | |||||||||||||||||||
Goods or services transferred at a point in time | |||||||||||||||||||||||
Revenue from contracts with customers | $ | $ | $ | $ |
($ in millions) | At March 31, 2024 | At December 31, 2023 | |||||||||
Receivables from Contracts with Customers | |||||||||||
Accounts and contracts receivable, net | $ | $ | |||||||||
Vacation ownership notes receivable, net | |||||||||||
$ | $ | ||||||||||
Contract Liabilities | |||||||||||
Advance deposits | $ | $ | |||||||||
Deferred revenue | |||||||||||
$ | $ |
($ in millions) | At March 31, 2024 | At December 31, 2023 | |||||||||
Receivables from contracts with customers, net | $ | $ | |||||||||
Interest receivable | |||||||||||
Tax receivable | |||||||||||
Indemnification assets | |||||||||||
Employee tax credit receivable | |||||||||||
Other | |||||||||||
$ | $ |
5. | INCOME TAXES |
($ in millions) | Unrecognized Tax Benefits | ||||
Balance at December 31, 2023 | $ | ||||
Increases to tax positions related to a prior period | |||||
Decreases to tax positions related to a prior period | ( | ||||
Decreases as a result of a lapse of the applicable statute of limitation | ( | ||||
Balance at March 31, 2024 | $ |
6. | VACATION OWNERSHIP NOTES RECEIVABLE |
March 31, 2024 | December 31, 2023 | ||||||||||||||||||||||||||||||||||
($ in millions) | Originated | Acquired | Total | Originated | Acquired | Total | |||||||||||||||||||||||||||||
Securitized | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Eligible for securitization(1) | |||||||||||||||||||||||||||||||||||
Not eligible for securitization(1) | |||||||||||||||||||||||||||||||||||
Non-securitized | |||||||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
(1)Refer to Footnote 7 “Financial Instruments” for discussion of eligibility of our vacation ownership notes receivable for securitization. |
Three Months Ended | |||||||||||
($ in millions) | March 31, 2024 | March 31, 2023 | |||||||||
Interest income associated with securitized vacation ownership notes receivable | $ | $ | |||||||||
Interest income associated with non-securitized vacation ownership notes receivable | |||||||||||
Total interest income associated with vacation ownership notes receivable | $ | $ |
Acquired Vacation Ownership Notes Receivable | |||||||||||||||||
($ in millions) | Non-Securitized | Securitized | Total | ||||||||||||||
2024, remaining | $ | $ | $ | ||||||||||||||
2025 | |||||||||||||||||
2026 | |||||||||||||||||
2027 | |||||||||||||||||
2028 | |||||||||||||||||
Thereafter | |||||||||||||||||
Balance at March 31, 2024 | $ | $ | $ | ||||||||||||||
Weighted average stated interest rate | |||||||||||||||||
Range of stated interest rates |
Acquired Vacation Ownership Notes Receivable as of March 31, 2024 | |||||||||||||||||||||||||||||
($ in millions) | 700+ | 600 - 699 | < 600 | No Score | Total | ||||||||||||||||||||||||
Marriott Vacation Ownership | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Hyatt Vacation Ownership | |||||||||||||||||||||||||||||
$ | $ | $ | $ | $ |
Acquired Vacation Ownership Notes Receivable as of December 31, 2023 | |||||||||||||||||||||||||||||
($ in millions) | 700+ | 600 - 699 | < 600 | No Score | Total | ||||||||||||||||||||||||
Marriott Vacation Ownership | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Hyatt Vacation Ownership | |||||||||||||||||||||||||||||
$ | $ | $ | $ | $ |
Originated Vacation Ownership Notes Receivable | |||||||||||||||||
($ in millions) | Non-Securitized | Securitized | Total | ||||||||||||||
2024, remaining | $ | $ | $ | ||||||||||||||
2025 | |||||||||||||||||
2026 | |||||||||||||||||
2027 | |||||||||||||||||
2028 | |||||||||||||||||
Thereafter | |||||||||||||||||
Balance at March 31, 2024 | $ | $ | $ | ||||||||||||||
Weighted average stated interest rate | |||||||||||||||||
Range of stated interest rates |
Originated Vacation Ownership Notes Receivable Reserve | |||||||||||||||||
($ in millions) | Non-Securitized | Securitized | Total | ||||||||||||||
Balance at December 31, 2023 | $ | $ | $ | ||||||||||||||
Increase (decrease) in vacation ownership notes receivable reserve | ( | ||||||||||||||||
Securitizations | ( | ||||||||||||||||
Clean-up call | ( | ||||||||||||||||
Write-offs | ( | ( | |||||||||||||||
Defaulted vacation ownership notes receivable repurchase activity(1) | ( | ||||||||||||||||
Balance at March 31, 2024 | $ | $ | $ | ||||||||||||||
(1)Reflects the change attributable to the transfer of the reserve from the securitized vacation ownership notes receivable reserve to the non-securitized vacation ownership notes receivable reserve when we voluntarily repurchased securitized vacation ownership notes receivable. |
Originated Vacation Ownership Notes Receivable as of March 31, 2024 | |||||||||||||||||||||||||||||
($ in millions) | 700 + | 600 - 699 | < 600 | No Score | Total | ||||||||||||||||||||||||
Marriott Vacation Ownership | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Hyatt Vacation Ownership | |||||||||||||||||||||||||||||
$ | $ | $ | $ | $ |
Originated Vacation Ownership Notes Receivable as of December 31, 2023 | |||||||||||||||||||||||||||||
($ in millions) | 700 + | 600 - 699 | < 600 | No Score | Total | ||||||||||||||||||||||||
Marriott Vacation Ownership | $ | $ | $ | $ | |||||||||||||||||||||||||
Hyatt Vacation Ownership | |||||||||||||||||||||||||||||
$ | $ | $ | $ | $ |
Originated Vacation Ownership Notes Receivable - Marriott Vacation Ownership | |||||||||||||||||||||||||||||||||||
($ in millions) | 2024 | 2023 | 2022 | 2021 | 2020 & Prior | Total | |||||||||||||||||||||||||||||
700 + | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
600 - 699 | |||||||||||||||||||||||||||||||||||
< 600 | |||||||||||||||||||||||||||||||||||
No Score | |||||||||||||||||||||||||||||||||||
$ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||
Gross write-offs | $ | $ | $ | $ | $ | $ |
Originated Vacation Ownership Notes Receivable - Hyatt Vacation Ownership | |||||||||||||||||||||||||||||||||||
($ in millions) | 2024 | 2023 | 2022 | 2021 | 2020 & Prior | Total | |||||||||||||||||||||||||||||
700 + | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
600 - 699 | |||||||||||||||||||||||||||||||||||
< 600 | |||||||||||||||||||||||||||||||||||
No Score | |||||||||||||||||||||||||||||||||||
$ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||
Gross write-offs | $ | $ | $ | $ | $ | $ |
Vacation Ownership Notes Receivable | |||||||||||||||||
($ in millions) | Non-Securitized | Securitized | Total | ||||||||||||||
Investment in vacation ownership notes receivable on non-accrual status at March 31, 2024 | $ | $ | $ | ||||||||||||||
Investment in vacation ownership notes receivable on non-accrual status at December 31, 2023 | $ | $ | $ |
As of March 31, 2024 | As of December 31, 2023 | ||||||||||||||||||||||||||||||||||
($ in millions) | Non-Securitized | Securitized | Total | Non-Securitized | Securitized | Total | |||||||||||||||||||||||||||||
31 – 90 days past due | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
91 – 120 days past due | |||||||||||||||||||||||||||||||||||
Greater than 120 days past due | |||||||||||||||||||||||||||||||||||
Total past due | |||||||||||||||||||||||||||||||||||
Current | |||||||||||||||||||||||||||||||||||
Total vacation ownership notes receivable | $ | $ | $ | $ | $ | $ |
7. | FINANCIAL INSTRUMENTS |
At March 31, 2024 | At December 31, 2023 | ||||||||||||||||||||||
($ in millions) | Carrying Amount | Fair Value | Carrying Amount | Fair Value | |||||||||||||||||||
Vacation ownership notes receivable, net | $ | $ | $ | $ | |||||||||||||||||||
Contracts receivable for financed VOI sales, net | |||||||||||||||||||||||
Other assets | |||||||||||||||||||||||
Total financial assets | $ | $ | $ | $ | |||||||||||||||||||
Securitized debt, net | $ | ( | $ | ( | $ | ( | $ | ( | |||||||||||||||
Term Loan, net | ( | ( | ( | ( | |||||||||||||||||||
Revolving Corporate Credit Facility, net | ( | ( | ( | ( | |||||||||||||||||||
2028 Notes, net | ( | ( | ( | ( | |||||||||||||||||||
2029 Notes, net | ( | ( | ( | ( | |||||||||||||||||||
2026 Convertible Notes, net | ( | ( | ( | ( | |||||||||||||||||||
2027 Convertible Notes, net | ( | ( | ( | ( | |||||||||||||||||||
Non-interest bearing note payable, net | ( | ( | |||||||||||||||||||||
Total financial liabilities | $ | ( | $ | ( | $ | ( | $ | ( |
At March 31, 2024 | At December 31, 2023 | ||||||||||||||||||||||
($ in millions) | Carrying Amount | Fair Value | Carrying Amount | Fair Value | |||||||||||||||||||
Securitized | $ | $ | $ | $ | |||||||||||||||||||
Eligible for securitization | |||||||||||||||||||||||
Not eligible for securitization | |||||||||||||||||||||||
Non-securitized | |||||||||||||||||||||||
Total | $ | $ | $ | $ |
8. | EARNINGS PER SHARE |
Three Months Ended | |||||||||||
(in millions, except per share amounts) | March 31, 2024 | March 31, 2023 | |||||||||
Net income attributable to common stockholders | $ | $ | |||||||||
Shares for basic earnings per share | |||||||||||
Basic earnings per share | $ | $ |
Three Months Ended | |||||||||||
(in millions, except per share amounts) | March 31, 2024 | March 31, 2023 | |||||||||
Net income attributable to common stockholders | $ | $ | |||||||||
Add back of interest expense related to convertible notes, net of tax | |||||||||||
Numerator used to calculate diluted earnings per share | $ | $ | |||||||||
Shares for basic earnings per share | |||||||||||
Effect of dilutive shares outstanding | |||||||||||
Employee SARs | |||||||||||
Restricted stock units | |||||||||||
2026 Convertible Notes ($ | |||||||||||
2027 Convertible Notes ($ | |||||||||||
Shares for diluted earnings per share | |||||||||||
Diluted earnings per share | $ | $ |
9. | INVENTORY |
($ in millions) | At March 31, 2024 | At December 31, 2023 | |||||||||
Finished goods(1) | $ | $ | |||||||||
Work-in-progress | |||||||||||
Real estate inventory | |||||||||||
Other | |||||||||||
$ | $ | ||||||||||
(1)Represents completed inventory that is registered for sale as VOIs and vacation ownership inventory expected to be reacquired pursuant to estimated future defaults on originated vacation ownership notes receivable. |
10. | CONTINGENCIES AND COMMITMENTS |
11. | SECURITIZED DEBT |
($ in millions) | At March 31, 2024 | At December 31, 2023 | ||||||||||||
Vacation ownership notes receivable securitizations, gross(1) | $ | $ | ||||||||||||
Unamortized debt discount and issuance costs | ( | ( | ||||||||||||
Warehouse Credit Facility, gross | ||||||||||||||
Unamortized debt issuance costs(2) | ( | |||||||||||||
$ | $ | |||||||||||||
(1)Interest rates as of March 31, 2024 range from | ||||||||||||||
(2)Excludes $ |
Vacation Ownership Notes Receivable Securitizations | |||||
($ in millions) | |||||
Payment Year | |||||
2024, remaining | $ | ||||
2025 | |||||
2026 | |||||
2027 | |||||
2028 | |||||
Thereafter | |||||
$ | |||||
12. | DEBT |
($ in millions) | At March 31, 2024 | At December 31, 2023 | ||||||||||||
Corporate Credit Facility | ||||||||||||||
Term Loan | $ | $ | ||||||||||||
Unamortized debt discount and issuance costs | ( | ( | ||||||||||||
Revolving Corporate Credit Facility(1) | ||||||||||||||
Unamortized debt issuance costs | ( | ( | ||||||||||||
Senior Unsecured Notes | ||||||||||||||
2028 Notes | ||||||||||||||
Unamortized debt discount and issuance costs | ( | ( | ||||||||||||
2029 Notes | ||||||||||||||
Unamortized debt discount and issuance costs | ( | ( | ||||||||||||
Convertible Notes | ||||||||||||||
2026 Convertible Notes | ||||||||||||||
Unamortized debt issuance costs | ( | ( | ||||||||||||
2027 Convertible Notes | ||||||||||||||
Unamortized debt issuance costs | ( | ( | ||||||||||||
Finance Leases | ||||||||||||||
Non-interest bearing note payable | ||||||||||||||
$ | $ | |||||||||||||
(1)Effective interest rate as of March 31, 2024 was | ||||||||||||||
Payments Year | |||||||||||||||||||||||||||||||||||||||||
($ in millions) | Remaining 2024 | 2025 | 2026 | 2027 | 2028 | Thereafter | Total | ||||||||||||||||||||||||||||||||||
Term Loan | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||
Revolving Corporate Credit Facility | |||||||||||||||||||||||||||||||||||||||||
2028 Notes | |||||||||||||||||||||||||||||||||||||||||
2029 Notes | |||||||||||||||||||||||||||||||||||||||||
2026 Convertible Notes | |||||||||||||||||||||||||||||||||||||||||
2027 Convertible Notes | |||||||||||||||||||||||||||||||||||||||||
$ | $ | $ | $ | $ | $ | $ |
($ in millions) | 2024 | 2023 | |||||||||
Derivative instrument adjustment balance, January 1 | $ | $ | |||||||||
Other comprehensive loss before reclassifications | ( | ( | |||||||||
Derivative instrument adjustment balance, March 31 | |||||||||||
Three Months Ended | |||||||||||
($ in millions) | March 31, 2024 | March 31, 2023 | |||||||||
Amortization of debt issuance costs | $ | $ |
Three Months Ended | |||||||||||
($ in millions) | March 31, 2024 | March 31, 2023 | |||||||||
Contractual interest expense | $ | $ | |||||||||
Amortization of debt issuance costs | |||||||||||
$ | $ |
13. | STOCKHOLDERS’ EQUITY |
($ in millions, except per share amounts) | Number of Shares Repurchased | Cost Basis of Shares Repurchased | Average Price Paid per Share | ||||||||||||||
As of December 31, 2023 | $ | $ | |||||||||||||||
For the first quarter of 2024 | $ | ||||||||||||||||
As of March 31, 2024 | $ | $ |
Declaration Date | Stockholder Record Date | Distribution Date | Dividend per Share | |||||||||||||||||
February 15, 2024 | February 29, 2024 | March 14, 2024 | $ | |||||||||||||||||
14. | SHARE-BASED COMPENSATION |
Three Months Ended | |||||||||||
($ in millions) | March 31, 2024 | March 31, 2023 | |||||||||
Service-based RSUs | $ | $ | |||||||||
Performance-based RSUs | |||||||||||
$ | $ |
($ in millions) | At March 31, 2024 | At December 31, 2023 | |||||||||
Service-based RSUs | $ | $ | |||||||||
Performance-based RSUs | |||||||||||
SARs | |||||||||||
$ | $ |
Expected volatility | |||||
Dividend yield | |||||
Risk-free rate | |||||
Expected term (in years) |
15. | VARIABLE INTEREST ENTITIES |
($ in millions) | Vacation Ownership Notes Receivable Securitizations | Warehouse Credit Facility | Total | ||||||||||||||
Consolidated Assets | |||||||||||||||||
Vacation ownership notes receivable, net of reserves | $ | $ | $ | ||||||||||||||
Interest receivable | |||||||||||||||||
Restricted cash | |||||||||||||||||
Total | $ | $ | $ | ||||||||||||||
Consolidated Liabilities | |||||||||||||||||
Interest payable | $ | $ | $ | ||||||||||||||
Securitized debt | |||||||||||||||||
Total | $ | $ | $ |
($ in millions) | Vacation Ownership Notes Receivable Securitizations | Warehouse Credit Facility | Total | ||||||||||||||
Interest income | $ | $ | $ | ||||||||||||||
Interest expense | $ | $ | $ | ||||||||||||||
Debt issuance cost amortization | $ | $ | $ | ||||||||||||||
Three Months Ended | |||||||||||
($ in millions) | March 31, 2024 | March 31, 2023 | |||||||||
Cash Inflows | |||||||||||
Net proceeds from vacation ownership notes receivable securitizations | $ | $ | |||||||||
Principal receipts | |||||||||||
Interest receipts | |||||||||||
Reserve release | |||||||||||
Total | |||||||||||
Cash Outflows | |||||||||||
Principal payments | ( | ( | |||||||||
Voluntary repurchases of defaulted vacation ownership notes receivable | ( | ( | |||||||||
Voluntary clean-up call | ( | ||||||||||
Interest payments | ( | ( | |||||||||
Funding of restricted cash | ( | ||||||||||
Total | ( | ( | |||||||||
Net Cash Flows | $ | $ |
Three Months Ended | |||||||||||
($ in millions) | March 31, 2024 | March 31, 2023 | |||||||||
Cash Inflows | |||||||||||
Proceeds from vacation ownership notes receivable securitizations | $ | $ | |||||||||
Principal receipts | |||||||||||
Interest receipts | |||||||||||
Reserve release | |||||||||||
Total | |||||||||||
Cash Outflows | |||||||||||
Principal payments | ( | ( | |||||||||
Voluntary repurchases of defaulted vacation ownership notes receivable | ( | ||||||||||
Repayment of Warehouse Credit Facility | ( | ||||||||||
Interest payments | ( | ( | |||||||||
Funding of restricted cash | ( | ( | |||||||||
Total | ( | ( | |||||||||
Net Cash Flows | $ | ( | $ |
16. | BUSINESS SEGMENTS |
Three Months Ended | |||||||||||
($ in millions) | March 31, 2024 | March 31, 2023 | |||||||||
Vacation Ownership | $ | $ | |||||||||
Exchange & Third-Party Management | |||||||||||
Total segment revenues | |||||||||||
Consolidated Property Owners’ Associations | |||||||||||
$ | $ |
Three Months Ended | |||||||||||
($ in millions) | March 31, 2024 | March 31, 2023 | |||||||||
Adjusted EBITDA Vacation Ownership | $ | $ | |||||||||
Adjusted EBITDA Exchange & Third-Party Management | |||||||||||
Reconciling items: | |||||||||||
Corporate and other | ( | ( | |||||||||
Interest expense, net | ( | ( | |||||||||
Tax provision | ( | ( | |||||||||
Depreciation and amortization | ( | ( | |||||||||
Share-based compensation expense | ( | ( | |||||||||
Certain items | ( | ( | |||||||||
Net income attributable to common stockholders | $ | $ |
($ in millions) | At March 31, 2024 | At December 31, 2023 | |||||||||
Vacation Ownership | $ | $ | |||||||||
Exchange & Third-Party Management | |||||||||||
Total segment assets | |||||||||||
Corporate and other | |||||||||||
$ | $ |
Three Months Ended | |||||||||||
($ in millions) | March 31, 2024 | March 31, 2023 | |||||||||
United States | $ | $ | |||||||||
All other countries | |||||||||||
$ | $ |
Three Months Ended | |||||||||||
($ in millions) | March 31, 2024 | March 31, 2023 | |||||||||
REVENUES | |||||||||||
Sale of vacation ownership products | $ | 352 | $ | 375 | |||||||
Management and exchange | 211 | 200 | |||||||||
Rental | 158 | 151 | |||||||||
Financing | 83 | 78 | |||||||||
Cost reimbursements | 391 | 365 | |||||||||
TOTAL REVENUES | 1,195 | 1,169 | |||||||||
EXPENSES | |||||||||||
Cost of vacation ownership products | 53 | 58 | |||||||||
Marketing and sales | 223 | 210 | |||||||||
Management and exchange | 116 | 107 | |||||||||
Rental | 107 | 113 | |||||||||
Financing | 34 | 26 | |||||||||
General and administrative | 63 | 68 | |||||||||
Depreciation and amortization | 38 | 32 | |||||||||
Litigation charges | 3 | 3 | |||||||||
Restructuring | 2 | — | |||||||||
Royalty fee | 28 | 29 | |||||||||
Impairment | — | 4 | |||||||||
Cost reimbursements | 391 | 365 | |||||||||
TOTAL EXPENSES | 1,058 | 1,015 | |||||||||
Gains and other income, net | — | 21 | |||||||||
Interest expense, net | (40) | (34) | |||||||||
Transaction and integration costs | (15) | (13) | |||||||||
Other | (1) | — | |||||||||
INCOME BEFORE INCOME TAXES AND NONCONTROLLING INTERESTS | 81 | 128 | |||||||||
Provision for income taxes | (35) | (41) | |||||||||
NET INCOME | 46 | 87 | |||||||||
Net loss attributable to noncontrolling interests | 1 | — | |||||||||
NET INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS | $ | 47 | $ | 87 |
Three Months Ended | |||||||||||||||||||||||
(Contract sales $ in millions) | March 31, 2024 | March 31, 2023 | Change | % Change | |||||||||||||||||||
Vacation Ownership | |||||||||||||||||||||||
Total contract sales | $ | 433 | $ | 444 | $ | (11) | (2%) | ||||||||||||||||
Consolidated contract sales | $ | 428 | $ | 434 | $ | (6) | (1%) | ||||||||||||||||
Joint venture contract sales | $ | 5 | $ | 10 | $ | (5) | (49%) | ||||||||||||||||
VPG | $ | 4,129 | $ | 4,358 | $ | (229) | (5%) | ||||||||||||||||
Exchange & Third-Party Management | |||||||||||||||||||||||
Total active members at end of period (000's) | 1,566 | 1,568 | (2) | —% | |||||||||||||||||||
Average revenue per member | $ | 41.74 | $ | 42.07 | $ | (0.33) | (1%) |
Three Months Ended | |||||||||||||||||||||||
($ in millions) | March 31, 2024 | March 31, 2023 | Change | % Change | |||||||||||||||||||
Vacation Ownership | $ | 1,130 | $ | 1,097 | $ | 33 | 3% | ||||||||||||||||
Exchange & Third-Party Management | 65 | 71 | (6) | (8%) | |||||||||||||||||||
Total Segment Revenues | 1,195 | 1,168 | 27 | 2% | |||||||||||||||||||
Consolidated Property Owners’ Associations | — | 1 | (1) | NM | |||||||||||||||||||
Total Revenues | $ | 1,195 | $ | 1,169 | $ | 26 | 2% |
Three Months Ended | Change | ||||||||||||||||||||||
($ in millions) | March 31, 2024 | March 31, 2023 | % Change | ||||||||||||||||||||
Net income attributable to common stockholders | $ | 47 | $ | 87 | $ | (40) | (46%) | ||||||||||||||||
Interest expense, net | 40 | 34 | 6 | 17% | |||||||||||||||||||
Provision for income taxes | 35 | 41 | (6) | (15%) | |||||||||||||||||||
Depreciation and amortization | 38 | 32 | 6 | 16% | |||||||||||||||||||
EBITDA | 160 | 194 | (34) | (18%) | |||||||||||||||||||
Share-based compensation expense | 7 | 7 | — | (13%) | |||||||||||||||||||
Certain items | 20 | 2 | 18 | NM | |||||||||||||||||||
Adjusted EBITDA | $ | 187 | $ | 203 | $ | (16) | (8%) | ||||||||||||||||
Adjusted EBITDA Margin | 23% | 25% | (2 pts) |
Three Months Ended | |||||||||||||||||||||||
($ in millions) | March 31, 2024 | March 31, 2023 | |||||||||||||||||||||
ILG integration | $ | — | $ | 9 | |||||||||||||||||||
Welk acquisition and integration | 15 | 4 | |||||||||||||||||||||
Transaction and integration costs | 15 | 13 | |||||||||||||||||||||
Purchase accounting adjustments | 1 | 2 | |||||||||||||||||||||
Litigation charges | 3 | 3 | |||||||||||||||||||||
Restructuring charges | 2 | — | |||||||||||||||||||||
Impairment charges | — | 4 | |||||||||||||||||||||
Early redemption of senior secured notes | — | 10 | |||||||||||||||||||||
Foreign currency translation | 2 | (2) | |||||||||||||||||||||
Insurance proceeds | — | (2) | |||||||||||||||||||||
Change in indemnification asset | (2) | (23) | |||||||||||||||||||||
Other | — | (4) | |||||||||||||||||||||
Gains and other income, net | — | (21) | |||||||||||||||||||||
Other | (1) | 1 | |||||||||||||||||||||
Total Certain items | $ | 20 | $ | 2 |
Three Months Ended | |||||||||||||||||||||||
($ in millions) | March 31, 2024 | March 31, 2023 | Change | % Change | |||||||||||||||||||
Vacation Ownership | $ | 213 | $ | 229 | $ | (16) | (7%) | ||||||||||||||||
Exchange & Third-Party Management | 32 | 37 | (5) | (14%) | |||||||||||||||||||
Segment adjusted EBITDA | 245 | 266 | (21) | (8%) | |||||||||||||||||||
General and administrative | (63) | (68) | 5 | 8% | |||||||||||||||||||
Other | 5 | 5 | — | (13%) | |||||||||||||||||||
Adjusted EBITDA | $ | 187 | $ | 203 | $ | (16) | (8%) |
Three Months Ended | |||||||||||||||||||||||
($ in millions) | March 31, 2024 | March 31, 2023 | Change | % Change | |||||||||||||||||||
Segment financial results | $ | 182 | $ | 205 | $ | (23) | (11%) | ||||||||||||||||
Depreciation and amortization | 25 | 23 | 2 | 11% | |||||||||||||||||||
Share-based compensation expense | 2 | 1 | 1 | 8% | |||||||||||||||||||
Certain items | 4 | — | 4 | NM | |||||||||||||||||||
Segment adjusted EBITDA | $ | 213 | $ | 229 | $ | (16) | (7%) |
Three Months Ended | |||||||||||||||||||||||
($ in millions) | March 31, 2024 | March 31, 2023 | |||||||||||||||||||||
Purchase accounting adjustments | $ | 1 | $ | 2 | |||||||||||||||||||
Litigation charges | 3 | 3 | |||||||||||||||||||||
Impairment charges | — | 4 | |||||||||||||||||||||
Insurance proceeds | — | (2) | |||||||||||||||||||||
Change in indemnification asset | — | (3) | |||||||||||||||||||||
Other | — | (4) | |||||||||||||||||||||
Gains and other income, net | — | (9) | |||||||||||||||||||||
Total Certain items | $ | 4 | $ | — |
Three Months Ended | |||||||||||||||||||||||
($ in millions) | March 31, 2024 | March 31, 2023 | Change | % Change | |||||||||||||||||||
Segment financial results | $ | 25 | $ | 28 | $ | (3) | (13%) | ||||||||||||||||
Depreciation and amortization | 7 | 8 | (1) | (14%) | |||||||||||||||||||
Share-based compensation expense | — | 1 | (1) | (11%) | |||||||||||||||||||
Segment adjusted EBITDA | $ | 32 | $ | 37 | $ | (5) | (14%) |
Three Months Ended | |||||||||||
($ in millions) | March 31, 2024 | March 31, 2023 | |||||||||
REVENUES | |||||||||||
Sale of vacation ownership products | $ | 352 | $ | 375 | |||||||
Resort management and other services | 148 | 135 | |||||||||
Rental | 147 | 141 | |||||||||
Financing | 83 | 78 | |||||||||
Cost reimbursements | 400 | 368 | |||||||||
TOTAL REVENUES | 1,130 | 1,097 | |||||||||
EXPENSES | |||||||||||
Cost of vacation ownership products | 53 | 58 | |||||||||
Marketing and sales | 223 | 210 | |||||||||
Resort management and other services | 71 | 64 | |||||||||
Rental | 110 | 116 | |||||||||
Financing | 34 | 26 | |||||||||
Depreciation and amortization | 25 | 23 | |||||||||
Litigation charges | 3 | 3 | |||||||||
Royalty fee | 28 | 29 | |||||||||
Impairment | — | 4 | |||||||||
Cost reimbursements | 400 | 368 | |||||||||
TOTAL EXPENSES | 947 | 901 | |||||||||
Gains and other income, net | — | 9 | |||||||||
Other | (1) | — | |||||||||
SEGMENT FINANCIAL RESULTS BEFORE NONCONTROLLING INTERESTS | 182 | 205 | |||||||||
Net loss attributable to noncontrolling interests | — | — | |||||||||
SEGMENT FINANCIAL RESULTS ATTRIBUTABLE TO COMMON STOCKHOLDERS | $ | 182 | $ | 205 |
Three Months Ended | |||||||||||||||||||||||||||||||||||
($ in millions) | March 31, 2024 | % of Consolidated Contract Sales, Net of Resales | March 31, 2023 | % of Consolidated Contract Sales, Net of Resales | Change | % Change | |||||||||||||||||||||||||||||
Consolidated contract sales | $ | 428 | $ | 434 | $ | (6) | (1%) | ||||||||||||||||||||||||||||
Joint venture contract sales | 5 | 10 | (5) | (49%) | |||||||||||||||||||||||||||||||
Total contract sales | 433 | 444 | (11) | (2%) | |||||||||||||||||||||||||||||||
Less: Resales contract sales | (12) | (11) | (1) | ||||||||||||||||||||||||||||||||
Less: Joint venture contract sales | (5) | (10) | 5 | ||||||||||||||||||||||||||||||||
Consolidated contract sales, net of resales | 416 | 423 | (7) | (2%) | |||||||||||||||||||||||||||||||
Plus: | |||||||||||||||||||||||||||||||||||
Settlement revenue | 8 | 2% | 8 | 2% | — | ||||||||||||||||||||||||||||||
Resales revenue | 5 | 1% | 6 | 1% | (1) | ||||||||||||||||||||||||||||||
Revenue recognition adjustments: | |||||||||||||||||||||||||||||||||||
Reportability | (9) | (2%) | — | —% | (9) | ||||||||||||||||||||||||||||||
Sales reserve | (46) | (11%) | (38) | (9%) | (8) | ||||||||||||||||||||||||||||||
Other(1) | (22) | (6%) | (24) | (6%) | 2 | ||||||||||||||||||||||||||||||
Sale of vacation ownership products | $ | 352 | 84% | $ | 375 | 88% | $ | (23) | (6%) | ||||||||||||||||||||||||||
Financing propensity | 53.4% | 54.2% | (0.8 pts) | ||||||||||||||||||||||||||||||||
Average FICO Score (2) | 737 | 738 |
Three Months Ended | Change | % Change | |||||||||||||||||||||||||||||||||
($ in millions) | March 31, 2024 | % of Revenue | March 31, 2023 | % of Revenue | |||||||||||||||||||||||||||||||
Sale of vacation ownership products | $ | 352 | $ | 375 | $ | (23) | (6%) | ||||||||||||||||||||||||||||
Cost of vacation ownership products | (53) | (15%) | (58) | (16%) | 5 | 9% | |||||||||||||||||||||||||||||
Marketing and sales | (223) | (63%) | (210) | (56%) | (13) | (6%) | |||||||||||||||||||||||||||||
Development profit | $ | 76 | $ | 107 | $ | (31) | (29%) | ||||||||||||||||||||||||||||
Development profit margin | 21.5% | 28.5% | (7.0 pts) | ||||||||||||||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||||
($ in millions) | March 31, 2024 | March 31, 2023 | Change | % Change | |||||||||||||||||||
Management fee revenues | $ | 52 | $ | 45 | $ | 7 | 15% | ||||||||||||||||
Ancillary revenues | 65 | 61 | 4 | 7% | |||||||||||||||||||
Other management and exchange revenues | 31 | 29 | 2 | 7% | |||||||||||||||||||
Resort management and other services revenues | 148 | 135 | 13 | 10% | |||||||||||||||||||
Resort management and other services expenses | (71) | (64) | (7) | (11%) | |||||||||||||||||||
Resort management and other services profit | $ | 77 | $ | 71 | $ | 6 | 8% | ||||||||||||||||
Resort management and other services profit margin | 51.8% | 52.7% | (0.9 pts) | ||||||||||||||||||||
Resort occupancy (1) | 90.2% | 88.9% | 1.3 pts | ||||||||||||||||||||
(1)Resort occupancy represents all transient, previews, and owner keys divided by total keys available, net of keys out of service. |
Three Months Ended | |||||||||||||||||||||||
($ in millions) | March 31, 2024 | March 31, 2023 | Change | % Change | |||||||||||||||||||
Rental revenues | $ | 147 | $ | 141 | $ | 6 | 4% | ||||||||||||||||
Rental expenses | (110) | (116) | 6 | 5% | |||||||||||||||||||
Rental profit | $ | 37 | $ | 25 | $ | 12 | 47% | ||||||||||||||||
Rental profit margin | 25.3% | 17.9% | 7.4 pts |
Three Months Ended | |||||||||||||||||||||||
March 31, 2024 | March 31, 2023 | Change | % Change | ||||||||||||||||||||
Transient keys rented(1) | 542,970 | 547,540 | (4,570) | (1%) | |||||||||||||||||||
Average transient rate | $ | 286 | $ | 287 | $ | (1) | —% | ||||||||||||||||
Rental occupancy(2) | 72.7% | 70.4% | 2.3 pts |
Three Months Ended | |||||||||||||||||||||||
($ in millions) | March 31, 2024 | March 31, 2023 | Change | % Change | |||||||||||||||||||
Financing revenues | $ | 83 | $ | 78 | $ | 5 | 6% | ||||||||||||||||
Financing expenses | (9) | (10) | 1 | 11% | |||||||||||||||||||
Consumer financing interest expense | (25) | (16) | (9) | (50%) | |||||||||||||||||||
Financing profit | $ | 49 | $ | 52 | $ | (3) | (4%) | ||||||||||||||||
Financing profit margin | 59.5% | 65.7% | (6.2 pts) | ||||||||||||||||||||
Financing propensity | 53.4% | 54.2% | (0.8 pts) |
Three Months Ended | |||||||||||||||||||||||
($ in millions) | March 31, 2024 | March 31, 2023 | Change | % Change | |||||||||||||||||||
Royalty fee | $ | 28 | $ | 29 | $ | (1) | (4%) |
Three Months Ended | |||||||||||||||||||||||
($ in millions) | March 31, 2024 | March 31, 2023 | Change | % Change | |||||||||||||||||||
Gains and other income, net | $ | — | $ | 9 | $ | (9) | NM |
Three Months Ended | |||||||||||||||||||||||
($ in millions) | March 31, 2024 | March 31, 2023 | Change | % Change | |||||||||||||||||||
Litigation charges | $ | 3 | $ | 3 | $ | — | 2% |
Three Months Ended | |||||||||||
($ in millions) | March 31, 2024 | March 31, 2023 | |||||||||
REVENUES | |||||||||||
Management and exchange | $ | 52 | $ | 56 | |||||||
Rental | 11 | 10 | |||||||||
Cost reimbursements | 2 | 5 | |||||||||
TOTAL REVENUES | 65 | 71 | |||||||||
EXPENSES | |||||||||||
Management and exchange | 31 | 30 | |||||||||
Depreciation and amortization | 7 | 8 | |||||||||
Cost reimbursements | 2 | 5 | |||||||||
TOTAL EXPENSES | 40 | 43 | |||||||||
SEGMENT FINANCIAL RESULTS ATTRIBUTABLE TO COMMON STOCKHOLDERS | $ | 25 | $ | 28 |
Three Months Ended | |||||||||||||||||||||||
($ in millions) | March 31, 2024 | March 31, 2023 | Change | % Change | |||||||||||||||||||
Management and exchange revenue | $ | 52 | $ | 56 | $ | (4) | (9%) | ||||||||||||||||
Management and exchange expense | (31) | (30) | (1) | (3%) | |||||||||||||||||||
Management and exchange profit | $ | 21 | $ | 26 | $ | (5) | (21%) | ||||||||||||||||
Management and exchange profit margin | 40.6% | 47.1% | (6.5 pts) |
Three Months Ended | |||||||||||||||||||||||
($ in millions) | March 31, 2024 | March 31, 2023 | Change | % Change | |||||||||||||||||||
Rental revenues | $ | 11 | $ | 10 | $ | 1 | 7% |
Three Months Ended | |||||||||||
($ in millions) | March 31, 2024 | March 31, 2023 | |||||||||
REVENUES | |||||||||||
Resort management and other services | $ | 11 | $ | 9 | |||||||
Cost reimbursements | (11) | (8) | |||||||||
TOTAL REVENUES | — | 1 | |||||||||
EXPENSES | |||||||||||
Resort management and other services | 14 | 13 | |||||||||
Rental | (3) | (3) | |||||||||
General and administrative | 63 | 68 | |||||||||
Depreciation and amortization | 6 | 1 | |||||||||
Restructuring | 2 | — | |||||||||
Cost reimbursements | (11) | (8) | |||||||||
TOTAL EXPENSES | 71 | 71 | |||||||||
Gains and other income, net | — | 12 | |||||||||
Interest expense, net | (40) | (34) | |||||||||
Transaction and integration costs | (15) | (13) | |||||||||
FINANCIAL RESULTS BEFORE INCOME TAXES AND NONCONTROLLING INTERESTS | (126) | (105) | |||||||||
Provision for income taxes | (35) | (41) | |||||||||
Net loss attributable to noncontrolling interests | 1 | — | |||||||||
FINANCIAL RESULTS ATTRIBUTABLE TO COMMON STOCKHOLDERS | $ | (160) | $ | (146) |
Three Months Ended | |||||||||||
($ in millions) | March 31, 2024 | March 31, 2023 | |||||||||
REVENUES | |||||||||||
Resort management and other services | $ | 11 | $ | 9 | |||||||
Cost reimbursements | (11) | (8) | |||||||||
TOTAL REVENUES | — | 1 | |||||||||
EXPENSES | |||||||||||
Resort management and other services | 14 | 13 | |||||||||
Rental | (3) | (3) | |||||||||
Cost reimbursements | (11) | (8) | |||||||||
TOTAL EXPENSES | — | 2 | |||||||||
FINANCIAL RESULTS BEFORE INCOME TAXES AND NONCONTROLLING INTERESTS | — | (1) | |||||||||
Net loss attributable to noncontrolling interests | 1 | — | |||||||||
FINANCIAL RESULTS ATTRIBUTABLE TO COMMON STOCKHOLDERS | $ | 1 | $ | (1) |
Three Months Ended | |||||||||||||||||||||||
($ in millions) | March 31, 2024 | March 31, 2023 | Change | % Change | |||||||||||||||||||
General and administrative | $ | 63 | $ | 68 | $ | (5) | (8%) |
Three Months Ended | |||||||||||||||||||||||
($ in millions) | March 31, 2024 | March 31, 2023 | Change | % Change | |||||||||||||||||||
Gains and other income, net | $ | — | $ | 12 | $ | (12) | (101%) |
Three Months Ended | |||||||||||||||||||||||
($ in millions) | March 31, 2024 | March 31, 2023 | Change | % Change | |||||||||||||||||||
Interest expense, net | $ | (40) | $ | (34) | $ | (6) | (17%) |
Three Months Ended | |||||||||||||||||||||||
($ in millions) | March 31, 2024 | March 31, 2023 | Change | % Change | |||||||||||||||||||
Provision for income taxes | $ | (35) | $ | (41) | $ | 6 | 15% |
Three Months Ended | |||||||||||
($ in millions) | March 31, 2024 | March 31, 2023 | |||||||||
Inventory spending | $ | (25) | $ | (22) | |||||||
Purchase of property for future transfer to inventory | — | (8) | |||||||||
Inventory costs | 42 | 46 | |||||||||
Inventory spending less than cost of sales | $ | 17 | $ | 16 |
Three Months Ended | |||||||||||
($ in millions) | March 31, 2024 | March 31, 2023 | |||||||||
Vacation ownership notes receivable collections — non-securitized | $ | 9 | $ | 48 | |||||||
Vacation ownership notes receivable collections — securitized | 151 | 113 | |||||||||
Vacation ownership notes receivable originations | (200) | (225) | |||||||||
Vacation ownership notes receivable collections less than originations | $ | (40) | $ | (64) |
($ in millions, except per share amounts) | Number of Shares Repurchased | Cost Basis of Shares Repurchased | Average Price Paid per Share | ||||||||||||||
As of December 31, 2023 | 25,141,073 | $ | 2,405 | $ | 95.65 | ||||||||||||
For the first quarter of 2024 | 279,577 | 24 | 87.37 | ||||||||||||||
As of March 31, 2024 | 25,420,650 | $ | 2,429 | $ | 95.56 |
Declaration Date | Stockholder Record Date | Distribution Date | Dividend per Share | |||||||||||||||||
December 7, 2023 | December 21, 2023 | January 4, 2024 | $0.76 | |||||||||||||||||
February 15, 2024 | February 29, 2024 | March 14, 2024 | $0.76 | |||||||||||||||||
Payments Due by Period | ||||||||||||||||||||||||||||||||||||||||||||
($ in millions) | Total | Remainder of 2024 | 2025 | 2026 | 2027 | 2028 | Thereafter | |||||||||||||||||||||||||||||||||||||
Debt(1)(2) | $ | 3,281 | $ | 87 | $ | 883 | $ | 635 | $ | 793 | $ | 373 | $ | 510 | ||||||||||||||||||||||||||||||
Securitized debt(1)(3) | 2,850 | 218 | 287 | 282 | 277 | 267 | 1,519 | |||||||||||||||||||||||||||||||||||||
Purchase obligations(4) | 446 | 128 | 148 | 122 | 26 | 17 | 5 | |||||||||||||||||||||||||||||||||||||
Operating lease obligations(5) | 125 | 18 | 23 | 21 | 14 | 10 | 39 | |||||||||||||||||||||||||||||||||||||
Finance lease obligations(5) | 543 | 13 | 17 | 14 | 12 | 13 | 474 | |||||||||||||||||||||||||||||||||||||
Other long-term obligations | 28 | 23 | 3 | 1 | 1 | — | — | |||||||||||||||||||||||||||||||||||||
$ | 7,273 | $ | 487 | $ | 1,361 | $ | 1,075 | $ | 1,123 | $ | 680 | $ | 2,547 |
Three Months Ended March 31, 2024 | |||||||||||||||||||||||||||||||||||
Issuers | Senior Notes Guarantors | Non-Guarantor Subsidiaries | Total Eliminations | MVW Consolidated | |||||||||||||||||||||||||||||||
($ in millions) | MVWC | MORI | |||||||||||||||||||||||||||||||||
Revenues | $ | — | $ | 302 | $ | 625 | $ | 279 | $ | (11) | $ | 1,195 | |||||||||||||||||||||||
Expenses | (12) | (333) | (576) | (204) | 11 | (1,114) | |||||||||||||||||||||||||||||
Benefit from (provision for) income taxes | — | 8 | (1) | (42) | — | (35) | |||||||||||||||||||||||||||||
Equity in net income (loss) of subsidiaries | 59 | 120 | — | — | (179) | — | |||||||||||||||||||||||||||||
Net income (loss) | 47 | 97 | 48 | 33 | (179) | 46 | |||||||||||||||||||||||||||||
Net loss attributable to noncontrolling interests | — | — | — | 1 | — | 1 | |||||||||||||||||||||||||||||
Net income (loss) attributable to common stockholders | $ | 47 | $ | 97 | $ | 48 | $ | 34 | $ | (179) | $ | 47 |
As of March 31, 2024 | |||||||||||||||||||||||||||||||||||
Issuers | Senior Notes Guarantors | Non-Guarantor Subsidiaries | Total Eliminations | MVW Consolidated | |||||||||||||||||||||||||||||||
($ in millions) | MVWC | MORI | |||||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | — | $ | 22 | $ | 85 | $ | 130 | $ | — | $ | 237 | |||||||||||||||||||||||
Restricted cash | — | 25 | 87 | 201 | — | 313 | |||||||||||||||||||||||||||||
Accounts and contracts receivable, net | 31 | 160 | 113 | 122 | (4) | 422 | |||||||||||||||||||||||||||||
Vacation ownership notes receivable, net | — | 123 | 161 | 2,052 | — | 2,336 | |||||||||||||||||||||||||||||
Inventory | — | 226 | 298 | 113 | — | 637 | |||||||||||||||||||||||||||||
Property and equipment, net | — | 329 | 719 | 251 | — | 1,299 | |||||||||||||||||||||||||||||
Goodwill | — | — | 3,117 | — | — | 3,117 | |||||||||||||||||||||||||||||
Intangibles, net | — | — | 807 | 32 | — | 839 | |||||||||||||||||||||||||||||
Investments in subsidiaries | 3,390 | 3,853 | — | — | (7,243) | — | |||||||||||||||||||||||||||||
Other | 128 | 139 | 342 | 186 | (128) | 667 | |||||||||||||||||||||||||||||
Total assets | $ | 3,549 | $ | 4,877 | $ | 5,729 | $ | 3,087 | $ | (7,375) | $ | 9,867 | |||||||||||||||||||||||
Accounts payable | $ | 27 | $ | 38 | $ | 91 | $ | 65 | $ | — | $ | 221 | |||||||||||||||||||||||
Advance deposits | — | 72 | 88 | 16 | — | 176 | |||||||||||||||||||||||||||||
Accrued liabilities | 10 | 112 | 149 | 113 | — | 384 | |||||||||||||||||||||||||||||
Deferred revenue | — | 9 | 228 | 270 | (25) | 482 | |||||||||||||||||||||||||||||
Payroll and benefits liability | — | 111 | 73 | 25 | — | 209 | |||||||||||||||||||||||||||||
Deferred compensation liability | — | 128 | 41 | 4 | — | 173 | |||||||||||||||||||||||||||||
Securitized debt, net | — | — | — | 2,205 | (27) | 2,178 | |||||||||||||||||||||||||||||
Debt, net | 1,133 | 1,801 | 176 | 1 | — | 3,111 | |||||||||||||||||||||||||||||
Other | — | 1 | 209 | 17 | — | 227 | |||||||||||||||||||||||||||||
Deferred taxes | — | 128 | 244 | 36 | (80) | 328 | |||||||||||||||||||||||||||||
MVW stockholders' equity | 2,379 | 2,477 | 4,430 | 336 | (7,243) | 2,379 | |||||||||||||||||||||||||||||
Noncontrolling interests | — | — | — | (1) | — | (1) | |||||||||||||||||||||||||||||
Total liabilities and equity | $ | 3,549 | $ | 4,877 | $ | 5,729 | $ | 3,087 | $ | (7,375) | $ | 9,867 |
As of December 31, 2023 | |||||||||||||||||||||||||||||||||||
Issuers | Senior Notes Guarantors | Non-Guarantor Subsidiaries | Total Eliminations | MVW Consolidated | |||||||||||||||||||||||||||||||
($ in millions) | MVWC | MORI | |||||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | — | $ | 20 | $ | 96 | $ | 132 | $ | — | $ | 248 | |||||||||||||||||||||||
Restricted cash | — | 25 | 153 | 148 | — | 326 | |||||||||||||||||||||||||||||
Accounts and contracts receivable, net | 30 | 106 | 142 | 120 | (13) | 385 | |||||||||||||||||||||||||||||
Vacation ownership notes receivable, net | — | 121 | 176 | 2,046 | — | 2,343 | |||||||||||||||||||||||||||||
Inventory | — | 186 | 336 | 112 | — | 634 | |||||||||||||||||||||||||||||
Property and equipment, net | — | 265 | 736 | 259 | — | 1,260 | |||||||||||||||||||||||||||||
Goodwill | — | — | 3,117 | — | — | 3,117 | |||||||||||||||||||||||||||||
Intangibles, net | — | — | 822 | 32 | — | 854 | |||||||||||||||||||||||||||||
Investments in subsidiaries | 3,421 | 3,943 | — | — | (7,364) | — | |||||||||||||||||||||||||||||
Other | 122 | 126 | 279 | 118 | (132) | 513 | |||||||||||||||||||||||||||||
Total assets | $ | 3,573 | $ | 4,792 | $ | 5,857 | $ | 2,967 | $ | (7,509) | $ | 9,680 | |||||||||||||||||||||||
Accounts payable | $ | 55 | $ | 30 | $ | 196 | $ | 81 | $ | — | $ | 362 | |||||||||||||||||||||||
Advance deposits | — | 65 | 83 | 16 | — | 164 | |||||||||||||||||||||||||||||
Accrued liabilities | 5 | 95 | 137 | 113 | (7) | 343 | |||||||||||||||||||||||||||||
Deferred revenue | — | 7 | 169 | 213 | (7) | 382 | |||||||||||||||||||||||||||||
Payroll and benefits liability | — | 91 | 86 | 28 | — | 205 | |||||||||||||||||||||||||||||
Deferred compensation liability | — | 126 | 39 | 3 | — | 168 | |||||||||||||||||||||||||||||
Securitized debt, net | — | — | — | 2,121 | (25) | 2,096 | |||||||||||||||||||||||||||||
Debt, net | 1,131 | 1,736 | 177 | 5 | — | 3,049 | |||||||||||||||||||||||||||||
Other | — | 2 | 229 | 18 | — | 249 | |||||||||||||||||||||||||||||
Deferred taxes | — | 124 | 242 | 19 | (105) | 280 | |||||||||||||||||||||||||||||
MVW stockholders' equity | 2,382 | 2,516 | 4,499 | 350 | (7,365) | 2,382 | |||||||||||||||||||||||||||||
Total liabilities and equity | $ | 3,573 | $ | 4,792 | $ | 5,857 | $ | 2,967 | $ | (7,509) | $ | 9,680 |
($ in millions) | Average Interest Rate | Maturities by Period | |||||||||||||||||||||||||||||||||||||||||||||||||||
Remainder of 2024 | 2025 | 2026 | 2027 | 2028 | Thereafter | Total Carrying Value | Total Fair Value | ||||||||||||||||||||||||||||||||||||||||||||||
Assets – Maturities represent expected principal receipts; fair values represent assets | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Vacation ownership notes receivable — non-securitized | 12.0% | $ | 55 | $ | 51 | $ | 46 | $ | 43 | $ | 35 | $ | 192 | $ | 422 | $ | 424 | ||||||||||||||||||||||||||||||||||||
Vacation ownership notes receivable — securitized | 13.4% | $ | 126 | $ | 173 | $ | 179 | $ | 181 | $ | 181 | $ | 1,074 | $ | 1,914 | $ | 1,995 | ||||||||||||||||||||||||||||||||||||
Contracts receivable for financed VOI sales, net | 12.9% | $ | 3 | $ | 4 | $ | 4 | $ | 4 | $ | 4 | $ | 29 | $ | 48 | $ | 48 | ||||||||||||||||||||||||||||||||||||
Liabilities – Maturities represent expected principal payments; fair values represent liabilities | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Securitized debt | 4.7% | $ | (143) | $ | (194) | $ | (201) | $ | (204) | $ | (202) | $ | (1,261) | $ | (2,205) | $ | (2,167) | ||||||||||||||||||||||||||||||||||||
Term Loan(1) | 7.2% | $ | — | $ | (784) | $ | — | $ | — | $ | — | $ | — | $ | (784) | $ | (781) | ||||||||||||||||||||||||||||||||||||
Revolving Corporate Credit Facility | 7.2% | $ | — | $ | — | $ | — | $ | (160) | $ | — | $ | — | $ | (160) | $ | (160) | ||||||||||||||||||||||||||||||||||||
Senior notes | |||||||||||||||||||||||||||||||||||||||||||||||||||||
2028 Notes | 4.8% | $ | — | $ | — | $ | — | $ | — | $ | (350) | $ | — | $ | (350) | $ | (329) | ||||||||||||||||||||||||||||||||||||
2029 Notes | 4.5% | $ | — | $ | — | $ | — | $ | — | $ | — | $ | (500) | $ | (500) | $ | (457) | ||||||||||||||||||||||||||||||||||||
2026 Convertible Notes | —% | $ | — | $ | — | $ | (575) | $ | — | $ | — | $ | — | $ | (575) | $ | (543) | ||||||||||||||||||||||||||||||||||||
2027 Convertible Notes | 3.3% | $ | — | $ | — | $ | — | $ | (575) | $ | — | $ | — | $ | (575) | $ | (540) | ||||||||||||||||||||||||||||||||||||
Period | Total Number of Shares Purchased | Average Price Paid per Share(2) | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs(1) | Maximum Dollar Amount of Shares That May Yet Be Purchased Under the Plans or Programs(1)(2) | |||||||||||||||||||
January 1, 2024 – January 31, 2024 | 137,000 | $ | 85.29 | 137,000 | $ | 426,910,101 | |||||||||||||||||
February 1, 2024 – February 29, 2024 | 106,577 | $ | 86.04 | 106,577 | $ | 417,740,157 | |||||||||||||||||
March 1, 2024 – March 31, 2024 | 36,000 | $ | 95.46 | 36,000 | $ | 414,303,514 | |||||||||||||||||
Total | 279,577 | $ | 86.88 | 279,577 | $ | 414,303,514 |
Exhibit Number | Description | Filed Herewith | Incorporation By Reference From | |||||||||||||||||||||||||||||
Form | Exhibit | Date Filed | ||||||||||||||||||||||||||||||
3.1 | 8-K | 3.2 | 5/15/2023 | |||||||||||||||||||||||||||||
3.2 | 10-Q | 3.3 | 8/4/2023 | |||||||||||||||||||||||||||||
4.1 | 10 | 4.1 | 10/14/2011 | |||||||||||||||||||||||||||||
4.2 | 8-K | 4.1 | 10/1/2019 | |||||||||||||||||||||||||||||
4.3 | 10-K | 4.12 | 3/2/2020 | |||||||||||||||||||||||||||||
4.4 | 10-K | 4.13 | 3/2/2020 | |||||||||||||||||||||||||||||
4.5 | 8-K | 4.2 | 10/1/2019 | |||||||||||||||||||||||||||||
4.6 | 8-K | 4.3 | 10/1/2019 | |||||||||||||||||||||||||||||
4.7 | 8-K | 4.1 | 2/3/2021 | |||||||||||||||||||||||||||||
4.8 | 8-K | 4.1 | 2/3/2021 | |||||||||||||||||||||||||||||
4.9 | 8-K | 4.1 | 6/22/2021 | |||||||||||||||||||||||||||||
4.10 | 8-K | 4.2 | 6/22/2021 | |||||||||||||||||||||||||||||
4.11 | 8-K | 4.1 | 12/8/2022 | |||||||||||||||||||||||||||||
4.12 | 8-K | 4.2 | 12/8/2022 | |||||||||||||||||||||||||||||
4.13 | 10-K | 4.16 | 3/2/2020 | |||||||||||||||||||||||||||||
10.1 | 10-K | 10.25 | 02/27/2024 |
Exhibit Number | Description | Filed Herewith | Incorporation By Reference From | |||||||||||||||||||||||||||||
Form | Exhibit | Date Filed | ||||||||||||||||||||||||||||||
10.2 | Incremental Facility Amendment and Amendment No. 3, dated as of April 1, 2024, by and among Marriott Vacations Worldwide Corporation, Marriott Ownership Resorts, Inc., as borrower, the subsidiary guarantors party thereto, JPMorgan Chase Bank, N.A., as administrative agent and collateral agent, and the lenders party thereto | 8-K | 10.1 | 04/2/2024 | ||||||||||||||||||||||||||||
10.3 | X | |||||||||||||||||||||||||||||||
10.4 | X | |||||||||||||||||||||||||||||||
10.5 | X | |||||||||||||||||||||||||||||||
22.1 | 10-K | 22.1 | 02/27/2024 | |||||||||||||||||||||||||||||
31.1 | X | |||||||||||||||||||||||||||||||
31.2 | X | |||||||||||||||||||||||||||||||
32.1 | Furnished | |||||||||||||||||||||||||||||||
32.2 | Furnished | |||||||||||||||||||||||||||||||
101 | The following financial statements from the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2024, formatted in Inline XBRL: (i) Interim Consolidated Statements of Income, (ii) Interim Consolidated Statements of Comprehensive Income, (iii) Interim Consolidated Balance Sheets, (iv) Interim Consolidated Statements of Cash Flows, (v) Interim Consolidated Statements of Stockholders’ Equity, and (vi) Notes to Interim Consolidated Financial Statements | |||||||||||||||||||||||||||||||
104 | The cover page from the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2024, formatted in Inline XBRL and contained in Exhibit 101 |
* | Schedules have been omitted pursuant to Item 601(b)(2) of Regulation S-K. The Company agrees to furnish supplemental copies to the SEC of any omitted schedule upon request by the SEC. | |||||||||||||||||||||||||||||||
** | Management contract or compensatory plan or arrangement. |
MARRIOTT VACATIONS WORLDWIDE CORPORATION | |||||||||||
Date: | May 7, 2024 | /s/ John E. Geller, Jr. | |||||||||
John E. Geller, Jr. | |||||||||||
President and Chief Executive Officer | |||||||||||
/s/ Jason P. Marino | |||||||||||
Jason P. Marino | |||||||||||
Executive Vice President and Chief Financial Officer |
MARRIOTT VACATIONS WORLDWIDE CORPORATION | EMPLOYEE | |||||||
<<PARTICIPANT NAME>> | ||||||||
Chief Human Resources Officer | Signed Electronically | |||||||
MARRIOTT VACATIONS WORLDWIDE CORPORATION | EMPLOYEE | |||||||
<<PARTICIPANT NAME>> | ||||||||
Chief Human Resources Officer | Signed Electronically | |||||||
MARRIOTT VACATIONS WORLDWIDE CORPORATION | EMPLOYEE | |||||||
<<PARTICIPANT NAME>> | ||||||||
Chief Human Resources Officer | Signed Electronically | |||||||
Performance Level | Adjusted EBITDA | Adjusted ROIC | RSUs Earned (% of target) | ||||||||
Maximum | |||||||||||
Target | |||||||||||
Below Target | |||||||||||
Threshold |
/s/ John E. Geller, Jr. | |||||
John E. Geller, Jr. | |||||
President and Chief Executive Officer | |||||
(Principal Executive Officer) |
/s/ Jason P. Marino | |||||
Jason P. Marino | |||||
Executive Vice President and Chief Financial Officer | |||||
(Principal Financial Officer) |
/s/ John E. Geller, Jr. | |||||
John E. Geller, Jr. | |||||
President and Chief Executive Officer | |||||
(Principal Executive Officer) |
/s/ Jason P. Marino | |||||
Jason P. Marino | |||||
Executive Vice President and Chief Financial Officer | |||||
(Principal Financial Officer) |
INTERIM CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Statement of Comprehensive Income [Abstract] | ||
NET INCOME | $ 46 | $ 87 |
Other comprehensive income (loss): | ||
Foreign currency translation adjustments | 1 | 6 |
Derivative instrument adjustment, net of tax | (2) | (3) |
OTHER COMPREHENSIVE (LOSS) GAIN, NET OF TAX | (1) | 3 |
Net loss attributable to noncontrolling interests | 1 | 0 |
COMPREHENSIVE LOSS ATTRIBUTABLE TO NONCONTROLLING INTERESTS | 1 | 0 |
COMPREHENSIVE INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS | $ 46 | $ 90 |
INTERIM CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions |
Mar. 31, 2024 |
Dec. 31, 2023 |
---|---|---|
Restricted cash | $ 313 | $ 326 |
Accounts receivable, net | 422 | 385 |
Vacation ownership notes receivable, net | 2,336 | 2,343 |
Other assets | 667 | 513 |
Accrued liabilities | 384 | 343 |
Secured debt, net | $ 2,178 | $ 2,096 |
Preferred stock, par value (in usd per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 2,000,000 | 2,000,000 |
Preferred stock, issued (in shares) | 0 | 0 |
Preferred stock, outstanding (in shares) | 0 | 0 |
Common stock, par (in usd per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 100,000,000 | 100,000,000 |
Common stock, shares issued (in shares) | 75,847,526 | 75,807,882 |
Treasury stock, shares (in shares) | 40,683,846 | 40,488,576 |
Variable interest entity | ||
Restricted cash | $ 128 | $ 79 |
Accounts receivable, net | 15 | 15 |
Vacation ownership notes receivable, net | 1,914 | 1,912 |
Other assets | 110 | 99 |
Accrued liabilities | 4 | 4 |
Secured debt, net | $ 2,205 | $ 2,121 |
BASIS OF PRESENTATION |
3 Months Ended | ||||||||||||
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Mar. 31, 2024 | |||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||
BASIS OF PRESENTATION |
The Interim Consolidated Financial Statements present the results of operations, financial position and cash flows of Marriott Vacations Worldwide Corporation (referred to in this report as (i) “we,” “us,” “Marriott Vacations Worldwide,” “MVW,” or the “Company,” which includes our consolidated subsidiaries except where the context of the reference is to a single corporate entity, or (ii) “MVWC,” which shall refer only to Marriott Vacations Worldwide Corporation, without its consolidated subsidiaries). In order to make this report easier to read, we refer throughout to (i) our Interim Consolidated Financial Statements as our “Financial Statements,” (ii) our Interim Consolidated Statements of Income as our “Income Statements,” (iii) our Interim Consolidated Balance Sheets as our “Balance Sheets,” and (iv) our Interim Consolidated Statements of Cash Flows as our “Cash Flows.” In addition, references throughout to numbered “Footnotes” refer to the numbered Notes in the Interim Condensed Notes to Consolidated Financial Statements, unless otherwise noted. Capitalized terms used and not specifically defined herein have the same meanings given those terms in our Annual Report on Form 10-K for the fiscal year ended December 31, 2023 (the “2023 Annual Report”). We also use certain other terms that are defined within these Financial Statements. The Financial Statements presented herein and discussed below include 100% of the assets, liabilities, revenues, expenses, and cash flows of Marriott Vacations Worldwide, all entities in which Marriott Vacations Worldwide has a controlling voting interest (“subsidiaries”), and variable interest entities (“VIEs”) for which Marriott Vacations Worldwide is the primary beneficiary in accordance with consolidation accounting guidance. References in these Financial Statements to net income attributable to common stockholders and MVW stockholders’ equity do not include noncontrolling interests, which represent the outside ownership of our consolidated non-wholly owned entities and are reported separately. Intercompany accounts and transactions between consolidated entities have been eliminated in consolidation. These Financial Statements reflect our financial position, results of operations, and cash flows as prepared in conformity with United States Generally Accepted Accounting Principles (“GAAP”). The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect amounts reported in the financial statements and accompanying notes. Such estimates include, but are not limited to, revenue recognition, cost of vacation ownership products, inventory valuation, goodwill and intangibles valuation, accounting for acquired vacation ownership notes receivable, vacation ownership notes receivable reserves, income taxes, and loss contingencies. The uncertainties in the broader macroeconomic environment, including inflation outpacing wage growth, continuing high interest rates, mixed economic indicators and increased global insecurity, have made it more challenging to make these estimates. Actual results could differ from our estimates, and such differences may be material. In our opinion, our Financial Statements reflect all normal and recurring adjustments necessary to present fairly our financial position, the results of our operations, and cash flows for the periods presented. Interim results may not be indicative of fiscal year performance because of, among other reasons, general macroeconomic conditions, including inflationary pressures and seasonal and short-term variations. These Financial Statements have not been audited. We have condensed or omitted certain information and footnote disclosures normally included in financial statements presented in accordance with GAAP. Although we believe our footnote disclosures are adequate to make the information presented not misleading, the Financial Statements in this report should be read in conjunction with the consolidated financial statements and notes thereto in our 2023 Annual Report. We refer to the business and brands that we acquired in the acquisition of ILG, LLC, formerly known as ILG, Inc. (“ILG”), in 2018 (the “ILG Acquisition”) as “Legacy-ILG.” We refer to the business we conducted prior to the ILG Acquisition and the associated brands as “Legacy-MVW.” We refer to the business and brand that we acquired in the acquisition of Welk Hospitality Group, Inc. (“Welk”) in 2021 (the “Welk Acquisition”) as “Legacy-Welk.” During 2023, we rebranded all Legacy-Welk resorts as Hyatt Vacation Club resorts. Additionally, we use the term “Marriott Vacation Ownership” to refer to our Marriott-, Sheraton-, and Westin-brands and the term “Hyatt Vacation Ownership” to refer to our Hyatt-brands. We have reclassified certain prior year amounts to conform with our current year presentation.
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SIGNIFICANT ACCOUNTING POLICIES AND RECENT ACCOUNTING STANDARDS |
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Accounting Policies [Abstract] | |||||||||||||
SIGNIFICANT ACCOUNTING POLICIES AND RECENT ACCOUNTING STANDARDS |
Future Adoption of Accounting Standards Accounting Standards Update 2023-07 – “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures” (“ASU 2023-07”) In November 2023, the FASB issued ASU 2023-07, which updates reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses and information used to assess segment performance. This update is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted. This update will be applied retrospectively for all prior periods presented in the financial statements. We will begin providing the enhanced disclosures required by this standard with our Annual Report on Form 10-K for the year ending December 31, 2024. Accounting Standards Update 2023-09 – “Income Taxes (Topic 740): Improvements to Income Tax Disclosures” (“ASU 2023-09”) In December 2023, the FASB issued ASU 2023-09, which is intended to enhance the transparency and decision usefulness of income tax disclosures. ASU 2023-09 primarily enhances and expands both the annual income tax rate reconciliation disclosure and the annual income taxes paid disclosure. This update is effective for fiscal years beginning after December 15, 2024 and may be adopted on a prospective or retrospective basis, with early adoption permitted. We will begin providing the enhanced disclosures required by this standard with our Annual Report on Form 10-K for the year ending December 31, 2025.
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ACQUISITIONS |
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Business Combination and Asset Acquisition [Abstract] | |||||||||||||
ACQUISITIONS |
Savannah, Georgia During the third quarter of 2023, we acquired a property in Savannah, Georgia for $19 million. We plan to convert the property into a 73-unit vacation ownership property. The transaction was accounted for as an asset acquisition and was recorded in Property and equipment, net. Charleston, South Carolina During the first quarter of 2023, we acquired a parcel of land and an adjacent retail space in Charleston, South Carolina for $17 million. We plan to develop the parcel of land into a 50-unit vacation ownership property and use a portion of the retail space to operate a sales center. The transaction was accounted for as an asset acquisition and was recorded in Property and equipment, net.
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REVENUE AND RECEIVABLES |
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Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
REVENUE AND RECEIVABLES |
Sources of Revenue by Segment
Timing of Revenue from Contracts with Customers by Segment The following tables detail the timing of revenue from contracts with customers by segment for the time periods presented.
Sale of Vacation Ownership Products Revenues were reduced during the first quarter of 2024 by $4 million due to changes in our estimates of variable consideration for performance obligations that were satisfied in prior periods. Receivables from Contracts with Customers, Contract Assets, & Contract Liabilities The following table shows the composition of our receivables from contracts with customers and contract liabilities. We had no contract assets at either March 31, 2024 or December 31, 2023.
Revenue recognized during the first quarter of 2024 that was included in our contract liabilities balance at December 31, 2023 was $121 million. Remaining Performance Obligations Our remaining performance obligations represent the expected transaction price allocated to our contracts that we expect to recognize as revenue in future periods when we perform under the contracts. At March 31, 2024, approximately 93% of this amount is expected to be recognized as revenue over the next two years. Accounts and Contracts Receivable Accounts and contracts receivable is composed of amounts due from customers, primarily owners’ associations, resort developers, owners and members, credit card receivables, interest receivables, amounts due from taxing authorities, indemnification assets, and other miscellaneous receivables. The following table shows the composition of our accounts and contracts receivable balances:
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INCOME TAXES |
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INCOME TAXES |
Our provision for income taxes is calculated using an estimated annual effective tax rate (“AETR”), based upon expected annual income less losses in certain jurisdictions, non-deductible expenses under federal and local tax laws, statutory rates and planned tax strategies in the various jurisdictions in which we operate. Certain items that do not relate directly to ordinary income are excluded from the AETR and included in the period in which they occur. Our effective tax rate was 43.0% and 32.3% for the three months ended March 31, 2024 and March 31, 2023, respectively. The effective tax rate for the three months ended March 31, 2024 differed from the blended statutory tax rate for the same period due to income tax adjustments for discrete items, including $11 million primarily related to a $20 million increase to remove the permanent reinvestment assertion for certain non-U.S. entities offset by a $9 million decrease for the expiration of statutes of limitation on certain unrecognized tax benefits. The effective tax rate for the three months ended March 31, 2023 differed from the blended statutory tax rate for the same period due to income tax adjustments for discrete items, including $9 million primarily related to an increase in uncertain tax benefits of $20 million for new unrecognized tax benefits in a foreign jurisdiction, offset by decreases in stock compensation of $7 million and $4 million related to prior year true-up adjustments. Unrecognized Tax Benefits The following table summarizes the activity related to our unrecognized tax benefits (excluding interest and penalties) during the three months ended March 31, 2024.
The total amount of gross interest and penalties accrued related to unrecognized tax benefits was $41 million at March 31, 2024 and $48 million at December 31, 2023, a decrease of $7 million, which is predominantly attributable to the expiration of statutes of limitation, partially offset by additional interest and penalties related to non-U.S. uncertain tax positions. At March 31, 2024, unrecognized tax benefits (including interest and penalties) of $26 million, net of indemnification, would impact the effective tax rate if recognized. We anticipate $38 million of unrecognized tax benefits, including interest and penalties, to be indemnified pursuant to a Tax Matters Agreement dated May 11, 2016 by and among Starwood Hotels & Resorts Worldwide, Inc., Vistana Signature Experiences, Inc., and Interval Leisure Group, Inc., and consequently have recorded a corresponding indemnification asset. The unrecognized tax benefits, including accrued interest and penalties, are included in Other liabilities on our Balance Sheet. Our income tax returns are subject to examination by relevant tax authorities. Certain of our returns are being audited in various jurisdictions for tax years 2007 through 2020. The amount of the unrecognized tax benefits may increase or decrease within the next twelve months as a result of audits or audit settlements.
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VACATION OWNERSHIP NOTES RECEIVABLE |
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VACATION OWNERSHIP NOTES RECEIVABLE |
The following table shows the composition of our vacation ownership notes receivable balances, net of reserves.
We reflect interest income associated with vacation ownership notes receivable on our Income Statements in the Financing revenues caption. The following table summarizes interest income associated with vacation ownership notes receivable.
Credit Quality Indicators - Vacation Ownership Notes Receivable We use the origination of vacation ownership notes receivable and the FICO scores of the customer by brand as the primary credit quality indicators, as historical performance indicates that there is a relationship between the default behavior of borrowers by FICO score and the brand associated with the vacation ownership interest (“VOI”) they have acquired. The estimates of the variable consideration for originated vacation ownership notes receivable and the reserve for credit losses on the acquired vacation ownership notes receivable are based on default rates that are an output of our static pool analyses and estimates regarding future defaults. The weighted average FICO score within our consolidated vacation ownership notes receivable pool was 724 and 723, at March 31, 2024 and December 31, 2023, respectively, based upon the FICO score of the borrower at the time of origination. Acquired Vacation Ownership Notes Receivable Acquired vacation ownership notes receivable represent vacation ownership notes receivable acquired as part of the ILG Acquisition and the Welk Acquisition. The following table shows future contractual principal payments, net of a $14 million reserve, and interest rates for our acquired vacation ownership notes receivable at March 31, 2024.
The following tables show the acquired vacation ownership notes receivable, before reserves, by brand and borrower FICO score at origination.
Originated Vacation Ownership Notes Receivable Originated vacation ownership notes receivable represent vacation ownership notes receivable originated by Legacy-ILG and Legacy-Welk subsequent to each respective acquisition date, and all Legacy-MVW vacation ownership notes receivable. The following table shows future principal payments, net of reserves, and interest rates for our originated vacation ownership notes receivable at March 31, 2024.
The following table summarizes the activity related to our originated vacation ownership notes receivable reserve.
The following tables show originated vacation ownership notes receivable, before reserves, by brand and borrower FICO score at origination.
The following tables detail the origination year of our originated vacation ownership notes receivable, before reserves, by brand and borrower FICO score at origination as of March 31, 2024, and gross write-offs by brand for the first quarter of 2024.
Vacation Ownership Notes Receivable on Non-Accrual Status For both non-securitized and securitized vacation ownership notes receivable, we estimated the average remaining default rates of 12.62% as of March 31, 2024 and 13.00% as of December 31, 2023. A 0.5 percentage point increase in the estimated default rate would have resulted in an increase in the related vacation ownership notes receivable reserve of $13 million as of both March 31, 2024 and December 31, 2023. The following table shows our recorded investment in non-accrual vacation ownership notes receivable, which are vacation ownership notes receivable that are 90 days or more past due.
The following table shows the aging of the recorded investment in principal, before reserves, in vacation ownership notes receivable as of March 31, 2024 and December 31, 2023.
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FINANCIAL INSTRUMENTS |
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FINANCIAL INSTRUMENTS |
The following table shows the carrying values and the estimated fair values of financial assets and liabilities that qualify as financial instruments, determined in accordance with the authoritative guidance for disclosures regarding the fair value of financial instruments. Considerable judgment is required in interpreting market data to develop estimates of fair value. The use of different market assumptions and/or estimation methodologies could have a material effect on the estimated fair value amounts. The table excludes Cash and cash equivalents, Restricted cash, Accounts and contracts receivable (excluding contracts receivable for financed VOI sales, net), deposits included in Other assets, Accounts payable, Advance deposits, Accrued liabilities, and derivative instruments, all of which had fair values approximating their carrying amounts due to the short maturities and liquidity of these instruments.
Vacation Ownership Notes Receivable
We estimate the fair value of our vacation ownership notes receivable that have been securitized using a discounted cash flow model. We believe this is comparable to the model that an independent third party would use in the current market. Our model uses default rates, prepayment rates, coupon rates, and loan terms for our securitized vacation ownership notes receivable portfolio as key drivers of risk and relative value to determine the fair value of the underlying vacation ownership notes receivable. We concluded that this fair value measurement should be categorized within Level 3. Due to factors that impact the general marketability of our vacation ownership notes receivable that have not been securitized, as well as current market conditions, we bifurcate our non-securitized vacation ownership notes receivable at each balance sheet date into those eligible and not eligible for securitization using criteria applicable to current securitization transactions in the asset-backed securities (“ABS”) market. Generally, vacation ownership notes receivable are considered not eligible for securitization if any of the following attributes are present: (1) payments are greater than 30 days past due; (2) the first payment has not been received; or (3) the collateral is located in Asia or Europe. In some cases, eligibility may also be determined based on the credit score of the borrower, the remaining term of the loans and other similar factors that may reflect investor demand in a securitization transaction or the cost to effectively securitize the vacation ownership notes receivable. The table above shows the bifurcation of our vacation ownership notes receivable that have not been securitized into those eligible and not eligible for securitization based upon the aforementioned eligibility criteria. We estimate the fair value of the portion of our vacation ownership notes receivable that have not been securitized that we believe will ultimately be securitized in the same manner as vacation ownership notes receivable that have been securitized. We value the remaining vacation ownership notes receivable that have not been securitized at their carrying value, rather than using our pricing model. We believe that the carrying value of these particular vacation ownership notes receivable approximates fair value because the stated, or otherwise imputed, interest rates of these loans are generally consistent with current market rates and the reserve for these vacation ownership notes receivable appropriately accounts for risks in default rates, prepayment rates, discount rates, and loan terms. We concluded that this fair value measurement should be categorized within Level 3. Contracts Receivable for Financed VOI Sales At the time at which we recognize revenue for Marriott-branded VOI sales, we temporarily record a contract receivable for financed VOI sales, until the time at which we originate a vacation ownership note receivable, which occurs at closing. We believe that the carrying value of the contracts receivable for financed VOI sales approximates fair value because the stated, or otherwise imputed, interest rates of these receivables are generally consistent with current market rates and the reserve for these contracts receivable for financed VOI sales appropriately accounts for risks in default rates. We concluded that this fair value measurement should be categorized within Level 3. Other Assets Other assets include $110 million and $99 million of company owned insurance policies (the “COLI policies”) acquired on the lives of certain participants in the Marriott Vacations Worldwide Deferred Compensation Plan (the “Deferred Compensation Plan”) at March 31, 2024 and December 31, 2023, respectively, that are held in a rabbi trust. The carrying value of the COLI policies is equal to their cash surrender value (Level 2 inputs). Securitized Debt We generate cash flow estimates by modeling all bond tranches for our active vacation ownership notes receivable securitization transactions, with consideration for the collateral specific to each tranche. The key drivers in our analysis include default rates, prepayment rates, bond interest rates, and other structural factors, which we use to estimate the projected cash flows. In order to estimate market credit spreads by rating, we obtain indicative credit spreads from investment banks that actively issue and facilitate the market for vacation ownership securities and determine an average credit spread by rating level of the different tranches. We then apply those estimated market spreads to swap rates in order to estimate an underlying discount rate for calculating the fair value of the active bonds payable. We concluded that this fair value measurement should be categorized within Level 3. Term Loan We estimate the fair value of our Term Loan (as defined in Footnote 12 “Debt”) using quotes from securities dealers as of the last trading day for the quarter; however, this loan has only a limited trading history and volume, and as such, this fair value estimate is not necessarily indicative of the value at which the Term Loan could be retired or transferred. We concluded that this fair value measurement should be categorized within Level 3. Revolving Corporate Credit Facility We estimate that the gross carrying value of our Revolving Corporate Credit Facility (as defined in Footnote 12 “Debt”) approximates fair value as the contractual interest rate is variable plus an applicable margin. We concluded that this fair value measurement should be categorized within Level 3. Senior Notes We estimate the fair value of our 2028 Notes and 2029 Notes (each as defined in Footnote 12 “Debt”) using quoted market prices as of the last trading day for the quarter; however these notes have only a limited trading history and volume, and as such, this fair value estimate is not necessarily indicative of the value at which these notes could be retired or transferred. We concluded that this fair value measurement should be categorized within Level 2. Convertible Notes We estimate the fair value of our convertible notes using quoted market prices as of the last trading day for the quarter; however, these notes have only a limited trading history and volume, and as such, this fair value estimate is not necessarily indicative of the value at which the convertible notes could be retired or transferred. We concluded that this fair value measurement should be categorized within Level 2.
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EARNINGS PER SHARE |
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EARNINGS PER SHARE |
Basic earnings per common share attributable to common stockholders is calculated by dividing net income attributable to common stockholders by the weighted average number of shares of common stock outstanding during the reporting period. Diluted earnings per common share attributable to common stockholders reflects the assumed conversion of all dilutive securities, calculated using the treasury stock method. The table below illustrates the reconciliation of the earnings and number of shares used in our calculation of basic earnings per share attributable to common stockholders.
The table below illustrates the reconciliation of the earnings and number of shares used in our calculation of diluted earnings per share attributable to common stockholders.
The computations of diluted earnings per share attributable to common stockholders in the table above exclude approximately 396,000 and 239,000 shares of common stock, the maximum number of shares issuable as of March 31, 2024 and March 31, 2023, respectively, upon the vesting of certain performance-based awards, because the performance conditions required to be met for the shares subject to such awards to vest were not achieved by the end of the reporting period. In accordance with the applicable accounting guidance for calculating earnings per share, for the first quarter of 2024, we excluded from our calculation of diluted earnings per share 645,524 shares underlying stock appreciation rights (“SARs”) that may settle in shares of common stock because the exercise prices of such SARs, which ranged from $93.73 to $173.88, were greater than the average market price of our common stock for the applicable period. For the first quarter of 2023, we excluded from our calculation of diluted earnings per share 237,249 shares underlying SARs that may settle in shares of common stock because the exercise prices of such SARs, which ranged from $153.10 to $173.88, were greater than the average market price of our common stock for the applicable period.
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INVENTORY |
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INVENTORY |
The following table shows the composition of our inventory balances:
Product cost true-up activity relating to vacation ownership products increased carrying values of inventory by $5 million during the first quarter of 2024 and $11 million during the first quarter of 2023. In addition to the above, at March 31, 2024 and December 31, 2023, we had $349 million and $370 million, respectively, of completed vacation ownership units which are classified as a component of Property and equipment, net until the time at which they are available and legally registered for sale as vacation ownership products. We also had deposits on future purchases of inventory of $9 million at March 31, 2024, of which $5 million was included in Other assets and $4 million was included in Accounts and contracts receivable, net on our Balance Sheet, and $3 million at December 31, 2023, which was included in Other assets on our Balance Sheet.
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CONTINGENCIES AND COMMITMENTS |
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Commitments and Contingencies Disclosure [Abstract] | |||||||||||||
CONTINGENCIES AND COMMITMENTS |
Commitments and Letters of Credit As of March 31, 2024, we had the following commitments outstanding: •We have various contracts for the use of information technology hardware and software that we use in the normal course of business. Our aggregate commitment under these contracts was $81 million, of which we expect $29 million, $26 million, $16 million, $6 million, $4 million and less than $1 million will be paid in the remainder of 2024, 2025, 2026, 2027, 2028, and thereafter, respectively. •We have remaining commitments of $36 million to purchase vacation ownership units located in Bali, Indonesia in two separate transactions, contingent upon completion of construction to agreed-upon standards within specified timeframes, for use in our Vacation Ownership segment. We expect to complete the acquisition of 32 vacation ownership units in 2025 pursuant to one of the commitments, and to make remaining payments with respect to these units when specific construction milestones are completed as follows: $4 million in the remainder of 2024, $10 million in 2025, and $1 million in 2026. We expect to complete the acquisition of 26 vacation ownership units in 2026 pursuant to the other commitment, and to make remaining payments with respect to these units when specific construction milestones are completed as follows: $4 million in the remainder of 2024, $2 million in 2025, $14 million in 2026, and $1 million in 2027. •We have a remaining commitment of $37 million to purchase 60 vacation ownership units located in Khao Lak, Thailand, contingent upon completion of construction to agreed-upon standards within specified timeframes, for use in our Vacation Ownership segment. We expect to complete the acquisition of these vacation ownership units in 2026. We expect to make remaining payments when specific construction milestones are completed as follows: $4 million in 2025, $31 million in 2026 and $2 million in 2027. •We have a commitment to acquire real estate in Waikiki, Hawaii for use in our Vacation Ownership segment via our involvement with a VIE. Refer to Footnote 15 “Variable Interest Entities” for additional information and our activities relating to the VIE involved in this transaction. As of March 31, 2024, we had $33 million of letters of credit outstanding under our Revolving Corporate Credit Facility (as defined in Footnote 12 “Debt”), of which $32 million were related to and in lieu of reserves required for our most recent outstanding securitization transactions completed during the first quarter of 2024 and the fourth quarter of 2023. In addition, as of March 31, 2024, we had $1 million in letters of credit outstanding that were not issued pursuant to, nor do they impact our borrowing capacity under, the Revolving Corporate Credit Facility. Surety bonds issued as of March 31, 2024 totaled $122 million, the majority of which were requested by federal, state or local governments in connection with our operations. Guarantees Certain of our rental management agreements in our Exchange & Third-Party Management segment provide for owners of properties we manage to receive specified percentages of rental revenue or guaranteed amounts generated under our management. In these cases, the operating expenses for the rental operations are paid from the revenue generated by the rentals, the owners are then paid their contractual percentages or guaranteed amounts, and we either retain the balance of the rental revenue (if any) as our fee or we make up the deficit if the owners have not received their guaranteed amounts. At March 31, 2024, our maximum exposure under fixed dollar guarantees was $4 million, of which $1 million, $1 million, $1 million, $1 million, and less than $1 million relate to the remainder of 2024, 2025, 2026, 2027, and 2028, respectively. We have a commitment to an owners’ association that we manage to pay for any shortfall between the actual expenses incurred by the owners’ association and the income received by the owners’ association, in lieu of our payment of maintenance fees for unsold inventory. The agreement will terminate on the earlier of: 1) sale of 95% of the total ownership interests in the owners’ association; or 2) written notification of termination by either party. At March 31, 2024, our expected commitment for the remainder of 2024 is $9 million, which will ultimately be recorded as a component of rental expense on our income statement. Loss Contingencies In February 2019, the owners’ association for the St. Regis Residence Club, New York filed a lawsuit in the Supreme Court for the State of New York, New York County, Commercial Division against ILG and several of its subsidiaries and certain third parties. The operative complaint alleges that the defendants breached their fiduciary duties related to sale and rental practices, aided and abetted certain breaches of fiduciary duty, engaged in self-dealing as the sponsor and manager of the club, tortiously interfered with the management agreement, were unjustly enriched, and engaged in anticompetitive conduct. The plaintiff is seeking unspecified damages, punitive damages and disgorgement of payments under the management and purchase agreements. In February 2022, the Court granted our motion to dismiss the complaint and dismissed with prejudice all claims except one (such claim, the “Remaining Claim”), with respect to which the plaintiff was granted leave to amend its complaint. The plaintiff filed an amended complaint with respect to the Remaining Claim and appealed the dismissal of the other claims. In June 2023, the appellate court upheld the dismissal of those claims. Plaintiff filed a motion for reconsideration of that appellate ruling, and in October 2023, the appellate court denied that motion. In November 2022, the Court granted our motion to dismiss the amended complaint with respect to the Remaining Claim and again granted plaintiff leave to amend its complaint. The plaintiff filed an amended complaint with respect to the Remaining Claim and again appealed the dismissal of the other claims. In January 2024, the appellate court upheld the dismissal of the other claims. In September 2023, the Court granted our motion to dismiss the amended complaint with respect to the Remaining Claim and denied plaintiff permission to file any additional amended complaints. Plaintiff has appealed that dismissal. As of March 31, 2024, the appeal remains pending. We believe we have meritorious defenses to the claims in this matter and intend to vigorously defend against them. In the ordinary course of our business, various claims and lawsuits have been filed or are pending against us. A number of these lawsuits and claims may exist at any given time. Additionally, the COVID-19 pandemic may give rise to various claims and lawsuits from owners, members and other parties. We record and accrue for legal contingencies when we determine that it is probable that a liability has been incurred and the amount of the loss can be reasonably estimated. In making such determinations, we evaluate, among other things, the degree of probability of an unfavorable outcome and, when it is probable that a liability has been incurred, our ability to make a reasonable estimate of loss. We review these accruals each reporting period and make revisions based on changes in facts and circumstances. We have not accrued for the pending matter described above and we cannot estimate a range of the potential liability associated with this pending matter, if any, at this time. We have accrued for other claims and lawsuits, but the amount accrued is not material individually or in the aggregate. For matters not requiring accrual, we do not believe that the ultimate outcome of such matters, individually or in the aggregate, will materially harm our financial position, cash flows, or overall trends in results of operations based on information currently available. However, legal proceedings are inherently uncertain, and while we believe that our accruals, where required, are adequate and/or we have valid defenses to the claims asserted, unfavorable rulings could occur that could, individually or in the aggregate, have a material adverse effect on our business, financial condition, or operating results.
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SECURITIZED DEBT |
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SECURITIZED DEBT |
The following table provides detail on our securitized debt, net of unamortized debt discount and issuance costs.
All of our securitized debt is non-recourse. See Footnote 15 “Variable Interest Entities” for a discussion of the collateral for the non-recourse debt associated with our securitized debt. The following table shows anticipated future principal payments for our securitized debt as of March 31, 2024.
Vacation Ownership Notes Receivable Securitizations Each of the securitized vacation ownership notes receivable transactions contains various triggers relating to the performance of the underlying vacation ownership notes receivable. If a pool of securitized vacation ownership notes receivable fails to perform within the pool’s established parameters (default or delinquency thresholds vary by transaction), transaction provisions effectively redirect the monthly excess spread we would otherwise receive from that pool (attributable to the interests we retained) to accelerate the principal payments to investors (taking into account the subordination of the different tranches to the extent there are multiple tranches) until the performance trigger is cured. During the first quarter of 2024, and as of March 31, 2024, we had 14 securitized vacation ownership notes receivable pools outstanding, none of which were out of compliance with their respective established parameters. As the contractual terms of the underlying securitized vacation ownership notes receivable determine the maturities of the non-recourse debt associated with them, actual maturities may occur earlier than shown above due to prepayments by the vacation ownership notes receivable obligors. During the first quarter of 2024, we securitized a pool of $439 million of vacation ownership notes receivable. In connection with the securitization, $430 million in vacation ownership loan backed notes were issued by MVW 2024-1 LLC (the “2024-1 LLC”) in a private placement. Three classes of vacation ownership loan backed notes were issued by the 2024-1 LLC: $284 million of Class A Notes, $89 million of Class B Notes, and $57 million of Class C Notes. The Class A Notes have an interest rate of 5.32%, the Class B Notes have an interest rate of 5.51%, and the Class C Notes have an interest rate of 6.20%, for an overall weighted average interest rate of 5.48%. Proceeds from the transaction, net of fees and a reserve, were used to repay the outstanding obligations on our warehouse credit facility (the “Warehouse Credit Facility”) and for other general corporate purposes.
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DEBT |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
DEBT |
The following table provides detail on our debt balances, net of unamortized debt discount and issuance costs.
The following table shows scheduled principal payments for our debt, excluding finance leases, as of March 31, 2024.
Corporate Credit Facility Our corporate credit facility (“Corporate Credit Facility”), which provides support for our business, including ongoing liquidity and letters of credit, includes a $900 million term loan facility (the “Term Loan”), which, as of March 31, 2024, was scheduled to mature on August 31, 2025, and a revolving credit facility with a borrowing capacity of $750 million (the “Revolving Corporate Credit Facility”), which includes a letter of credit sub-facility of $75 million, that terminates on March 31, 2027. Subsequent to the end of the first quarter of 2024, we entered into an amendment to the Corporate Credit Facility (the “Amendment”), which, among other things, provides for a new $800 million term loan facility scheduled to mature on April 1, 2031 (the “New Term Loan”). The proceeds of the New Term Loan were used to refinance in full the Term Loan, which was scheduled to mature on August 31, 2025. The interest rate applicable to the New Term Loan is the Secured Overnight Financing Rate (“SOFR”) plus 2.25%. There were no changes to the borrowing capacity or the termination date of the Revolving Corporate Credit Facility or its letter of credit sub-facility. As of March 31, 2024, we have $200 million of interest rate swaps, under which we may pay a fixed rate of 2.17% and receive a floating interest rate through April 2024, and a $100 million interest rate collar with a cap strike price of 2.43% through April 2024, in each case, that we entered into prior to 2023 to hedge a portion of our interest rate risk on the Term Loan. Both the interest rate swap and the interest rate collar have been designated and qualify as cash flow hedges of interest rate risk and are recorded in Other assets on our Balance Sheets as of March 31, 2024 and December 31, 2023. We characterize payments we make or receive in connection with these derivative instruments as interest expense and a reclassification of accumulated other comprehensive income or loss for presentation purposes. The following table reflects the activity in accumulated other comprehensive income or loss related to our derivative instruments during the first quarter of 2024 and 2023. There were no reclassifications to the Income Statement for any of the periods presented below.
Senior Notes Our senior notes include: •$350 million aggregate principal amount of 4.750% Senior Unsecured Notes due 2028 issued in the fourth quarter of 2019 with a maturity date of January 15, 2028 (the “2028 Notes”). •$500 million aggregate principal amount of 4.500% Senior Unsecured Notes due 2029 issued in the second quarter of 2021 with a maturity date of June 15, 2029 (the “2029 Notes”). Convertible Notes 2026 Convertible Notes During 2021, we issued $575 million aggregate principal amount of convertible senior notes (the “2026 Convertible Notes”) that bear interest at a rate of 0.00%. The 2026 Convertible Notes mature on January 15, 2026, unless earlier repurchased or converted in accordance with their terms prior to that date. The conversion rate of the 2026 Convertible Notes is subject to adjustment for certain events as described in the indenture governing the notes, and was subject to adjustment as of March 31, 2024 to 6.2076 shares of common stock per $1,000 principal amount of 2026 Convertible Notes (equivalent to a conversion price of $161.09 per share of our common stock), as a result of the dividends we declared since issuance of the 2026 Convertible Notes that were greater than the quarterly dividend we paid when the 2026 Convertible Notes were issued. Upon conversion, we will pay or deliver, as the case may be, cash, shares of our common stock, or a combination of cash and shares of our common stock, at our election. As of March 31, 2024, the effective interest rate was 0.55%. The following table shows interest expense information related to the 2026 Convertible Notes.
2026 Convertible Note Hedges and Warrants In connection with the offering of the 2026 Convertible Notes, we concurrently entered into the following privately-negotiated separate transactions: convertible note hedge transactions with respect to our common stock (the “2026 Convertible Note Hedges”), covering a total of 3.6 million shares of our common stock, and warrant transactions (the “2026 Warrants”), whereby we sold to the counterparties to the 2026 Convertible Note Hedges warrants to acquire 3.6 million shares of our common stock, in each case, as of March 31, 2024. The strike prices of the 2026 Convertible Note Hedges and the 2026 Warrants were subject to adjustment to $161.09 and $201.36, respectively, as of March 31, 2024, and no 2026 Convertible Note Hedges or 2026 Warrants have been exercised. 2027 Convertible Notes During 2022, we issued $575 million aggregate principal amount of convertible senior notes (the “2027 Convertible Notes”) that bear interest at a rate of 3.25%. The 2027 Convertible Notes mature on December 15, 2027, unless earlier repurchased or converted in accordance with their terms prior to that date. The conversion rate of the 2027 Convertible Notes is subject to adjustment for certain events as described in the indenture governing the notes, and was subject to adjustment as of March 31, 2024 to 5.2776 shares of common stock per $1,000 principal amount of 2027 Convertible Notes (equivalent to a conversion price of $189.48 per share of our common stock), as a result of the dividends we declared since issuance of the 2027 Convertible Notes that were greater than the quarterly dividend we paid when the 2027 Convertible notes were issued. Upon conversion, we will pay or deliver, as the case may be, cash, shares of our common stock, or a combination of cash and shares of our common stock, at our election. As of March 31, 2024, the effective interest rate was 3.88%. The following table shows interest expense information related to the 2027 Convertible Notes.
2027 Convertible Note Hedges and Warrants In connection with the offering of the 2027 Convertible Notes, we concurrently entered into the following privately-negotiated separate transactions: convertible note hedge transactions with respect to our common stock (the “2027 Convertible Note Hedges”), covering a total of 3.0 million shares of our common stock, and warrant transactions (the “2027 Warrants”), whereby we sold to the counterparties to the 2027 Convertible Note Hedges warrants to acquire 3.0 million shares of our common stock, in each case, as of March 31, 2024. The strike prices of the 2027 Convertible Note Hedges and the 2027 Warrants were subject to adjustment to $189.48 and $286.01, respectively, as of March 31, 2024, and no 2027 Convertible Note Hedges or 2027 Warrants have been exercised. Security and Guarantees Amounts borrowed under the Corporate Credit Facility, as well as obligations with respect to letters of credit issued pursuant to the Corporate Credit Facility, are secured by a perfected first priority security interest in substantially all of the assets of the borrowers under, and guarantors of, that facility (which include MVWC and certain of our direct and indirect, existing and future, domestic subsidiaries, excluding certain bankruptcy remote special purpose subsidiaries), subject to certain exceptions. In addition, the Corporate Credit Facility, the 2026 Convertible Notes, the 2027 Convertible Notes, the 2028 Notes, and the 2029 Notes are guaranteed by MVWC and certain of our direct and indirect, existing and future, domestic subsidiaries, excluding bankruptcy remote special purpose subsidiaries.
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SHAREHOLDERS' EQUITY |
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SHAREHOLDERS’ EQUITY |
Marriott Vacations Worldwide has 100,000,000 authorized shares of common stock, par value of $0.01 per share. At March 31, 2024, there were 75,847,526 shares of Marriott Vacations Worldwide common stock issued, of which 35,163,680 shares were outstanding and 40,683,846 shares were held as treasury stock. At December 31, 2023, there were 75,807,882 shares of Marriott Vacations Worldwide common stock issued, of which 35,319,306 shares were outstanding and 40,488,576 shares were held as treasury stock. Marriott Vacations Worldwide has 2,000,000 authorized shares of preferred stock, par value of $0.01 per share, none of which were issued or outstanding as of March 31, 2024 or December 31, 2023. Share Repurchase Program From time to time, with the approval of our Board of Directors, we may undertake programs to purchase shares of our common stock (each, a “Share Repurchase Program”). As of March 31, 2024, approximately $414 million remained available for share repurchases under the current Share Repurchase Program. Share repurchases may be made through open market purchases, privately negotiated transactions, block transactions, tender offers, or otherwise. The specific timing, amount and other terms of the repurchases will depend on market conditions, corporate and regulatory requirements, contractual restrictions, and other factors. In connection with the current Share Repurchase Program, we are authorized to adopt one or more plans pursuant to the provisions of Rule 10b5-1 under the Securities Exchange Act of 1934, as amended. The authorization for the current Share Repurchase Program may be suspended, terminated, increased or decreased by our Board of Directors at any time without prior notice. Acquired shares of our common stock are currently held as treasury shares and carried at cost in our Financial Statements. The following table summarizes share repurchase activity under our Share Repurchase Program:
Dividends We declared cash dividends to holders of common stock during the first quarter of 2024 as follows. Any future dividend payments will be subject to the restrictions imposed under the agreements covering our debt and approval of our Board of Directors. There can be no assurance that we will pay dividends in the future.
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SHARE-BASED COMPENSATION |
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SHARE-BASED COMPENSATION |
We maintain the Marriott Vacations Worldwide Corporation 2020 Equity Incentive Plan (the “MVW Equity Plan”) for the benefit of our officers, directors, and employees. Under the MVW Equity Plan, we are authorized to award: (1) restricted stock and restricted stock units (“RSUs”) of our common stock, (2) stock appreciation rights (“SARs”) relating to our common stock, and (3) stock options to purchase our common stock. A total of 1.8 million shares are authorized for issuance pursuant to grants under the MVW Equity Plan. As of March 31, 2024, less than 1 million shares were available for grants under the MVW Equity Plan. The following table details our share-based compensation expense related to award grants to our officers, directors, and employees:
The following table details our deferred compensation costs related to unvested awards:
Restricted Stock Units We granted 380,924 service-based RSUs, which are subject to time-based vesting conditions, with a weighted average grant-date fair value of $87.00, to our employees and non-employee directors during the first quarter of 2024. During the first quarter of 2024, we also granted performance-based RSUs, which are subject to performance-based vesting conditions, to members of management. A maximum of 204,020 RSUs may be earned under the performance-based RSU awards granted during the first quarter of 2024. Stock Appreciation Rights We granted 86,759 SARs, with a weighted average grant-date fair value of $34.58 and a weighted average exercise price of $93.73, to members of management during the first quarter of 2024. We use the Black-Scholes model to estimate the fair value of the SARs granted. The expected stock price volatility was calculated based on the average of the historical and implied volatility of our stock price. The average expected life was calculated using the simplified method, as we have insufficient historical information to provide a basis for estimating average expected life. The risk-free interest rate was calculated based on U.S. Treasury zero-coupon issues with a remaining term equal to the expected life assumed at the date of grant. The dividend yield assumption listed below is based on the expectation of future payouts. The following table outlines the assumptions used to estimate the fair value of grants during the first quarter of 2024:
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VARIABLE INTEREST ENTITIES |
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Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
VARIABLE INTEREST ENTITIES |
Variable Interest Entities Related to Our Vacation Ownership Notes Receivable Securitizations The following table shows consolidated assets, which are collateral for the obligations of the VIEs related to our vacation ownership notes receivable securitizations, and consolidated liabilities included on our Balance Sheet at March 31, 2024:
The following table shows the interest income and expense recognized as a result of our involvement with these VIEs during the first quarter of 2024:
The following table shows cash flows between us and the vacation ownership notes receivable securitization VIEs:
The following table shows cash flows between us and the Warehouse Credit Facility VIE:
Under the terms of our vacation ownership notes receivable securitizations, we have the right to substitute loans for, or repurchase, defaulted loans at our option, subject to certain limitations. Our maximum exposure to potential loss relating to the special purpose entities that purchase, sell, and own these vacation ownership notes receivable is the overcollateralization amount (the difference between the loan collateral balance and the balance of the outstanding vacation ownership notes receivable), plus cash reserves and any residual interest in future cash flows from collateral. Other Variable Interest Entities We have a commitment to purchase a property located in Waikiki, Hawaii. The property is held by a VIE for which we are not the primary beneficiary. We do not control the decisions that most significantly impact the economic performance of the entity during construction. Further, our purchase commitment is generally contingent upon the property being redeveloped to our brand standards. Accordingly, we have not consolidated the VIE. We expect to acquire the property over time and as of March 31, 2024, we expect to make remaining payments for the property as follows: $65 million in the remainder of 2024, $82 million in 2025, and $41 million in 2026. As of March 31, 2024, our Balance Sheet reflected $1 million in Accounts and contracts receivable, net, including a note receivable of less than $1 million, $8 million in Property and equipment, net, $1 million in Accrued liabilities and $1 million in the Other line within liabilities on our Balance Sheets. We believe that our maximum exposure to loss as a result of our involvement with this VIE is approximately $10 million as of March 31, 2024. During the first quarter of 2024, we fulfilled our outstanding commitment to purchase retail space for $48 million and incurred $1 million of cost related to the fit-out of this space. We have an agreement to sell the retail space to a third party, at cost, upon completion of construction, which we expect to occur in the second half of 2024. Deferred Compensation Plan We consolidate the liabilities of the Deferred Compensation Plan and the related assets, which consist of the COLI policies held in a rabbi trust. The rabbi trust is considered a VIE. We are the primary beneficiary of the rabbi trust because we direct the activities of the trust and are the beneficiary of the trust. At March 31, 2024 and December 31, 2023, the value of the assets held in the rabbi trust was $110 million and $99 million, respectively, and was included in the Other line within assets on our Balance Sheets.
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BUSINESS SEGMENTS |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
BUSINESS SEGMENTS |
We define our reportable segments based on the way in which the chief operating decision maker (“CODM”), currently our chief executive officer, manages the operations of the Company for purposes of allocating resources and assessing performance. We operate in two operating and reportable business segments: •Vacation Ownership includes a diverse portfolio of resorts that includes some of the world’s most iconic brands licensed under exclusive, long-term relationships. We are the exclusive worldwide developer, marketer, seller and manager of vacation ownership and related products under the Marriott Vacation Club, Grand Residences by Marriott, Sheraton Vacation Club, Westin Vacation Club, and Hyatt Vacation Club brands. We are also the exclusive worldwide developer, marketer and seller of vacation ownership and related products under The Ritz-Carlton Club brand, and we have the non-exclusive right to develop, market and sell whole ownership residential products under The Ritz-Carlton Residences brand. We also have a license to use the St. Regis brand for specified fractional ownership products. Our Vacation Ownership segment generates most of its revenues from four primary sources: selling vacation ownership products; managing vacation ownership resorts, clubs, and owners’ associations; financing consumer purchases of vacation ownership products; and renting vacation ownership inventory. •Exchange & Third-Party Management includes an exchange network and membership programs, as well as provision of management services to other resorts and lodging properties. We provide these services through our Interval International and Aqua-Aston businesses. Exchange & Third-Party Management revenue generally is fee-based and derived from membership, exchange, and rental transactions, property and owners’ association management, and other related products and services. Our CODM evaluates the performance of our segments based primarily on the results of the segment without allocating corporate expenses or income taxes. We do not allocate corporate interest expense or indirect general and administrative expenses to our segments. We include interest income specific to segment activities within the appropriate segment. We allocate depreciation and amortization, other gains and losses, equity in earnings or losses from our joint ventures, and noncontrolling interest to each of our segments as appropriate. Corporate and other represents that portion of our results that are not allocable to our segments, including those relating to consolidated owners’ associations, as our CODM does not use this information to make operating segment resource allocations. Our CODM uses Adjusted Earnings before Interest Expense, Taxes, Depreciation and Amortization (“Adjusted EBITDA”) to evaluate the profitability of our operating segments, and the components of net income attributable to common stockholders excluded from Adjusted EBITDA are not separately evaluated. Adjusted EBITDA is defined as net income attributable to common stockholders, before interest expense (excluding consumer financing interest expense associated with term securitization transactions), income taxes, depreciation and amortization, excluding share-based compensation expense and adjusted for certain items that affect the comparability of our operating performance. Our reconciliation of the aggregate amount of Adjusted EBITDA for our reportable segments to consolidated net income attributable to common stockholders is presented below. Revenues
Adjusted EBITDA and Reconciliation to Net Income Attributable to Common Stockholders
Assets
Revenues Excluding Cost Reimbursements
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Pay vs Performance Disclosure - USD ($) $ in Millions |
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Mar. 31, 2024 |
Mar. 31, 2023 |
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Pay vs Performance Disclosure | ||
Net Income (Loss) | $ 47 | $ 87 |
Insider Trading Arrangements |
3 Months Ended |
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Mar. 31, 2024 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
SIGNIFICANT ACCOUNTING POLICIES AND RECENT ACCOUNTING STANDARDS (Policies) |
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Mar. 31, 2024 | |
Accounting Policies [Abstract] | |
Nature of Operations | The Interim Consolidated Financial Statements present the results of operations, financial position and cash flows of Marriott Vacations Worldwide Corporation (referred to in this report as (i) “we,” “us,” “Marriott Vacations Worldwide,” “MVW,” or the “Company,” which includes our consolidated subsidiaries except where the context of the reference is to a single corporate entity, or (ii) “MVWC,” which shall refer only to Marriott Vacations Worldwide Corporation, without its consolidated subsidiaries). In order to make this report easier to read, we refer throughout to (i) our Interim Consolidated Financial Statements as our “Financial Statements,” (ii) our Interim Consolidated Statements of Income as our “Income Statements,” (iii) our Interim Consolidated Balance Sheets as our “Balance Sheets,” and (iv) our Interim Consolidated Statements of Cash Flows as our “Cash Flows.” In addition, references throughout to numbered “Footnotes” refer to the numbered Notes in the Interim Condensed Notes to Consolidated Financial Statements, unless otherwise noted. Capitalized terms used and not specifically defined herein have the same meanings given those terms in our Annual Report on Form 10-K for the fiscal year ended December 31, 2023 (the “2023 Annual Report”). We also use certain other terms that are defined within these Financial Statements.
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Principles of Consolidation | The Financial Statements presented herein and discussed below include 100% of the assets, liabilities, revenues, expenses, and cash flows of Marriott Vacations Worldwide, all entities in which Marriott Vacations Worldwide has a controlling voting interest (“subsidiaries”), and variable interest entities (“VIEs”) for which Marriott Vacations Worldwide is the primary beneficiary in accordance with consolidation accounting guidance. References in these Financial Statements to net income attributable to common stockholders and MVW stockholders’ equity do not include noncontrolling interests, which represent the outside ownership of our consolidated non-wholly owned entities and are reported separately. Intercompany accounts and transactions between consolidated entities have been eliminated in consolidation. These Financial Statements reflect our financial position, results of operations, and cash flows as prepared in conformity with United States Generally Accepted Accounting Principles (“GAAP”). The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect amounts reported in the financial statements and accompanying notes. Such estimates include, but are not limited to, revenue recognition, cost of vacation ownership products, inventory valuation, goodwill and intangibles valuation, accounting for acquired vacation ownership notes receivable, vacation ownership notes receivable reserves, income taxes, and loss contingencies. The uncertainties in the broader macroeconomic environment, including inflation outpacing wage growth, continuing high interest rates, mixed economic indicators and increased global insecurity, have made it more challenging to make these estimates. Actual results could differ from our estimates, and such differences may be material. In our opinion, our Financial Statements reflect all normal and recurring adjustments necessary to present fairly our financial position, the results of our operations, and cash flows for the periods presented. Interim results may not be indicative of fiscal year performance because of, among other reasons, general macroeconomic conditions, including inflationary pressures and seasonal and short-term variations. These Financial Statements have not been audited. We have condensed or omitted certain information and footnote disclosures normally included in financial statements presented in accordance with GAAP. Although we believe our footnote disclosures are adequate to make the information presented not misleading, the Financial Statements in this report should be read in conjunction with the consolidated financial statements and notes thereto in our 2023 Annual Report. We refer to the business and brands that we acquired in the acquisition of ILG, LLC, formerly known as ILG, Inc. (“ILG”), in 2018 (the “ILG Acquisition”) as “Legacy-ILG.” We refer to the business we conducted prior to the ILG Acquisition and the associated brands as “Legacy-MVW.” We refer to the business and brand that we acquired in the acquisition of Welk Hospitality Group, Inc. (“Welk”) in 2021 (the “Welk Acquisition”) as “Legacy-Welk.” During 2023, we rebranded all Legacy-Welk resorts as Hyatt Vacation Club resorts. Additionally, we use the term “Marriott Vacation Ownership” to refer to our Marriott-, Sheraton-, and Westin-brands and the term “Hyatt Vacation Ownership” to refer to our Hyatt-brands. We have reclassified certain prior year amounts to conform with our current year presentation.
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Basis of Presentation | The Financial Statements presented herein and discussed below include 100% of the assets, liabilities, revenues, expenses, and cash flows of Marriott Vacations Worldwide, all entities in which Marriott Vacations Worldwide has a controlling voting interest (“subsidiaries”), and variable interest entities (“VIEs”) for which Marriott Vacations Worldwide is the primary beneficiary in accordance with consolidation accounting guidance. References in these Financial Statements to net income attributable to common stockholders and MVW stockholders’ equity do not include noncontrolling interests, which represent the outside ownership of our consolidated non-wholly owned entities and are reported separately. Intercompany accounts and transactions between consolidated entities have been eliminated in consolidation. These Financial Statements reflect our financial position, results of operations, and cash flows as prepared in conformity with United States Generally Accepted Accounting Principles (“GAAP”). The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect amounts reported in the financial statements and accompanying notes. Such estimates include, but are not limited to, revenue recognition, cost of vacation ownership products, inventory valuation, goodwill and intangibles valuation, accounting for acquired vacation ownership notes receivable, vacation ownership notes receivable reserves, income taxes, and loss contingencies. The uncertainties in the broader macroeconomic environment, including inflation outpacing wage growth, continuing high interest rates, mixed economic indicators and increased global insecurity, have made it more challenging to make these estimates. Actual results could differ from our estimates, and such differences may be material. In our opinion, our Financial Statements reflect all normal and recurring adjustments necessary to present fairly our financial position, the results of our operations, and cash flows for the periods presented. Interim results may not be indicative of fiscal year performance because of, among other reasons, general macroeconomic conditions, including inflationary pressures and seasonal and short-term variations. These Financial Statements have not been audited. We have condensed or omitted certain information and footnote disclosures normally included in financial statements presented in accordance with GAAP. Although we believe our footnote disclosures are adequate to make the information presented not misleading, the Financial Statements in this report should be read in conjunction with the consolidated financial statements and notes thereto in our 2023 Annual Report. We refer to the business and brands that we acquired in the acquisition of ILG, LLC, formerly known as ILG, Inc. (“ILG”), in 2018 (the “ILG Acquisition”) as “Legacy-ILG.” We refer to the business we conducted prior to the ILG Acquisition and the associated brands as “Legacy-MVW.” We refer to the business and brand that we acquired in the acquisition of Welk Hospitality Group, Inc. (“Welk”) in 2021 (the “Welk Acquisition”) as “Legacy-Welk.” During 2023, we rebranded all Legacy-Welk resorts as Hyatt Vacation Club resorts. Additionally, we use the term “Marriott Vacation Ownership” to refer to our Marriott-, Sheraton-, and Westin-brands and the term “Hyatt Vacation Ownership” to refer to our Hyatt-brands. We have reclassified certain prior year amounts to conform with our current year presentation.
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Future Adoption of Accounting Standards | Future Adoption of Accounting Standards Accounting Standards Update 2023-07 – “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures” (“ASU 2023-07”) In November 2023, the FASB issued ASU 2023-07, which updates reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses and information used to assess segment performance. This update is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted. This update will be applied retrospectively for all prior periods presented in the financial statements. We will begin providing the enhanced disclosures required by this standard with our Annual Report on Form 10-K for the year ending December 31, 2024. Accounting Standards Update 2023-09 – “Income Taxes (Topic 740): Improvements to Income Tax Disclosures” (“ASU 2023-09”) In December 2023, the FASB issued ASU 2023-09, which is intended to enhance the transparency and decision usefulness of income tax disclosures. ASU 2023-09 primarily enhances and expands both the annual income tax rate reconciliation disclosure and the annual income taxes paid disclosure. This update is effective for fiscal years beginning after December 15, 2024 and may be adopted on a prospective or retrospective basis, with early adoption permitted. We will begin providing the enhanced disclosures required by this standard with our Annual Report on Form 10-K for the year ending December 31, 2025.
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REVENUE AND RECEIVABLES (Tables) |
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disaggregation of revenue |
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Revenue remaining performance obligation | The following tables detail the timing of revenue from contracts with customers by segment for the time periods presented.
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Contract with customer, asset and liability | The following table shows the composition of our receivables from contracts with customers and contract liabilities. We had no contract assets at either March 31, 2024 or December 31, 2023.
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Accounts and nontrade receivable | The following table shows the composition of our accounts and contracts receivable balances:
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INCOME TAXES (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||
Schedule of unrecognized tax benefits | The following table summarizes the activity related to our unrecognized tax benefits (excluding interest and penalties) during the three months ended March 31, 2024.
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VACATION OWNERSHIP NOTES RECEIVABLE (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Composition of vacation ownership notes receivable balances, net of reserves | The following table shows the composition of our vacation ownership notes receivable balances, net of reserves.
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Interest income associated with vacation ownership notes receivable | The following table summarizes interest income associated with vacation ownership notes receivable.
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Financing receivable, nonaccrual | The following table shows our recorded investment in non-accrual vacation ownership notes receivable, which are vacation ownership notes receivable that are 90 days or more past due.
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Aging of recorded investment in principal, before reserves, in vacation ownership notes receivable | The following table shows the aging of the recorded investment in principal, before reserves, in vacation ownership notes receivable as of March 31, 2024 and December 31, 2023.
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Acquired | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Future principal payments, net of reserves, and interest rates of vacation ownership notes receivable | The following table shows future contractual principal payments, net of a $14 million reserve, and interest rates for our acquired vacation ownership notes receivable at March 31, 2024.
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Financing receivable credit quality indicators | The following tables show the acquired vacation ownership notes receivable, before reserves, by brand and borrower FICO score at origination.
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Originated | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Future principal payments, net of reserves, and interest rates of vacation ownership notes receivable | The following table shows future principal payments, net of reserves, and interest rates for our originated vacation ownership notes receivable at March 31, 2024.
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Notes receivable reserves | The following table summarizes the activity related to our originated vacation ownership notes receivable reserve.
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Financing receivable credit quality indicators | The following tables show originated vacation ownership notes receivable, before reserves, by brand and borrower FICO score at origination.
The following tables detail the origination year of our originated vacation ownership notes receivable, before reserves, by brand and borrower FICO score at origination as of March 31, 2024, and gross write-offs by brand for the first quarter of 2024.
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FINANCIAL INSTRUMENTS (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments, All Other Investments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Carrying values and estimated fair values of financial assets and liabilities | The following table shows the carrying values and the estimated fair values of financial assets and liabilities that qualify as financial instruments, determined in accordance with the authoritative guidance for disclosures regarding the fair value of financial instruments. Considerable judgment is required in interpreting market data to develop estimates of fair value. The use of different market assumptions and/or estimation methodologies could have a material effect on the estimated fair value amounts. The table excludes Cash and cash equivalents, Restricted cash, Accounts and contracts receivable (excluding contracts receivable for financed VOI sales, net), deposits included in Other assets, Accounts payable, Advance deposits, Accrued liabilities, and derivative instruments, all of which had fair values approximating their carrying amounts due to the short maturities and liquidity of these instruments.
Vacation Ownership Notes Receivable
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EARNINGS PER SHARE (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reconciliation of earnings or loss and number of shares used in calculation of basic and diluted earnings or loss per share | The table below illustrates the reconciliation of the earnings and number of shares used in our calculation of basic earnings per share attributable to common stockholders.
The table below illustrates the reconciliation of the earnings and number of shares used in our calculation of diluted earnings per share attributable to common stockholders.
The computations of diluted earnings per share attributable to common stockholders in the table above exclude approximately 396,000 and 239,000 shares of common stock, the maximum number of shares issuable as of March 31, 2024 and March 31, 2023, respectively, upon the vesting of certain performance-based awards, because the performance conditions required to be met for the shares subject to such awards to vest were not achieved by the end of the reporting period.
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INVENTORY (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Composition of inventory | The following table shows the composition of our inventory balances:
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SECURITIZED DEBT (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of securitized vacation ownership debt | The following table provides detail on our securitized debt, net of unamortized debt discount and issuance costs.
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Scheduled future principal payments for debt | The following table shows anticipated future principal payments for our securitized debt as of March 31, 2024.
The following table shows scheduled principal payments for our debt, excluding finance leases, as of March 31, 2024.
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DEBT (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt balances, net of unamortized debt issuance costs | The following table provides detail on our debt balances, net of unamortized debt discount and issuance costs.
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Scheduled future principal payments for debt | The following table shows anticipated future principal payments for our securitized debt as of March 31, 2024.
The following table shows scheduled principal payments for our debt, excluding finance leases, as of March 31, 2024.
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Schedule of cash flow hedges included in accumulated other comprehensive income (loss) | The following table reflects the activity in accumulated other comprehensive income or loss related to our derivative instruments during the first quarter of 2024 and 2023. There were no reclassifications to the Income Statement for any of the periods presented below.
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Convertible debt | The following table shows interest expense information related to the 2026 Convertible Notes.
The following table shows interest expense information related to the 2027 Convertible Notes.
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SHAREHOLDERS' EQUITY (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock repurchase activity under current stock repurchase program | The following table summarizes share repurchase activity under our Share Repurchase Program:
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Cash dividend declared | We declared cash dividends to holders of common stock during the first quarter of 2024 as follows. Any future dividend payments will be subject to the restrictions imposed under the agreements covering our debt and approval of our Board of Directors. There can be no assurance that we will pay dividends in the future.
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SHARE-BASED COMPENSATION (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-Based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of compensation cost for share-based payment arrangements, allocation of share-based compensation costs by plan | The following table details our share-based compensation expense related to award grants to our officers, directors, and employees:
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Schedule of unrecognized compensation cost, unvested awards | The following table details our deferred compensation costs related to unvested awards:
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Assumptions used to estimate fair value of grants | The following table outlines the assumptions used to estimate the fair value of grants during the first quarter of 2024:
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VARIABLE INTEREST ENTITIES (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Classifications of consolidated vie assets and liabilities | The following table shows consolidated assets, which are collateral for the obligations of the VIEs related to our vacation ownership notes receivable securitizations, and consolidated liabilities included on our Balance Sheet at March 31, 2024:
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Interest income and expense recognized as a result of our involvement with variable interest entities | The following table shows the interest income and expense recognized as a result of our involvement with these VIEs during the first quarter of 2024:
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Cash flows between company and variable interest entities | The following table shows cash flows between us and the vacation ownership notes receivable securitization VIEs:
The following table shows cash flows between us and the Warehouse Credit Facility VIE:
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BUSINESS SEGMENTS (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenues | Revenues
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Adjusted EBITDA, net (loss) income, depreciation and amortization | Adjusted EBITDA and Reconciliation to Net Income Attributable to Common Stockholders
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Assets | Assets
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Revenue from external customers by geographic areas | Revenues Excluding Cost Reimbursements
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BASIS OF PRESENTATION (Details) |
3 Months Ended |
---|---|
Mar. 31, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Percent of the assets, liabilities, revenues, expenses and cash flows discussed | 100.00% |
ACQUISITIONS (Details) $ in Millions |
3 Months Ended | |
---|---|---|
Sep. 30, 2023
USD ($)
vacation_ownership_unit
|
Mar. 31, 2023
USD ($)
vacation_ownership_unit
|
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Savannah, Georgia | ||
Asset Acquisition [Line Items] | ||
Asset acquisition, consideration transferred | $ | $ 19 | |
Number of vacation units to be developed | vacation_ownership_unit | 73 | |
Charleston, South Carolina | ||
Asset Acquisition [Line Items] | ||
Asset acquisition, consideration transferred | $ | $ 17 | |
Number of vacation units to be developed | vacation_ownership_unit | 50 |
REVENUE AND RECEIVABLES - Additional Information (Details) - USD ($) |
3 Months Ended | |
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Mar. 31, 2024 |
Dec. 31, 2023 |
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Revenue from Contract with Customer [Abstract] | ||
Performance obligation satisfied in previous period | $ (4,000,000) | |
Contract with customer, contract assets | 0 | $ 0 |
Contract with customer, liability, revenue recognized | $ 121,000,000 |
REVENUE AND RECEIVABLES - Contracts with Customers, Assets and Liabilities (Details) - USD ($) $ in Millions |
Mar. 31, 2024 |
Dec. 31, 2023 |
---|---|---|
Receivables from Contracts with Customers | ||
Accounts and contracts receivable, net | $ 272 | $ 259 |
Vacation ownership notes receivable, net | 2,336 | 2,343 |
Receivables from Contracts with Customers | 2,608 | 2,602 |
Contract Liabilities | ||
Advance deposits | 176 | 164 |
Deferred revenue | 482 | 382 |
Contract Liabilities | $ 658 | $ 546 |
REVENUE AND RECEIVABLES - Remaining Performance Obligation Additional Information (Details) - Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-04-01 |
Mar. 31, 2024 |
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Disaggregation of Revenue [Line Items] | |
Revenue remaining performance obligation expected timing (percentage) | 93.00% |
Expected timing of satisfaction (in years) | 2 years |
REVENUE AND RECEIVABLES - Accounts and Contracts Receivable (Details) - USD ($) $ in Millions |
Mar. 31, 2024 |
Dec. 31, 2023 |
---|---|---|
Revenue from Contract with Customer [Abstract] | ||
Receivables from contracts with customers, net | $ 272 | $ 259 |
Interest receivable | 18 | 18 |
Tax receivable | 63 | 44 |
Indemnification assets | 42 | 40 |
Employee tax credit receivable | 10 | 11 |
Other | 17 | 13 |
Accounts receivable, including VIE, after allowance for credit loss | $ 422 | $ 385 |
INCOME TAXES - Additional Information (Details) - USD ($) $ in Millions |
3 Months Ended | ||
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Mar. 31, 2024 |
Mar. 31, 2023 |
Dec. 31, 2023 |
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Income Tax Contingency [Line Items] | |||
Effective income tax rate, percent | 43.00% | 32.30% | |
Tax adjustments for discrete items | $ 11 | $ 9 | |
Increase to remove the permanent reinvestment assertion for certain non-U.S. entities | 20 | ||
Decrease for the expiration of statute of limitations on certain unrecognized tax benefits | 9 | ||
Increase new unrecognized tax benefits in a foreign jurisdiction | 20 | ||
Decreases in stock compensation | 7 | ||
Decrease for prior year true-up adjustments | $ 4 | ||
Income tax penalties and interest accrued, decrease | 7 | ||
Unrecognized tax benefits, income tax penalties and interest accrued | 41 | $ 48 | |
Unrecognized tax benefits that would impact effective tax rate | 26 | ||
Indemnified tax liability | |||
Income Tax Contingency [Line Items] | |||
Unrecognized tax benefits, income tax penalties and interest accrued | $ 38 |
INCOME TAXES - Unrecognized Tax Benefits (Details) $ in Millions |
3 Months Ended |
---|---|
Mar. 31, 2024
USD ($)
| |
Unrecognized Tax Benefits | |
Unrecognized tax benefit at beginning of balance | $ 106 |
Increases to tax positions related to a prior period | 2 |
Decreases to tax positions related to a prior period | (7) |
Decreases as a result of a lapse of the applicable statute of limitation | (6) |
Unrecognized tax benefit at end of balance | $ 95 |
VACATION OWNERSHIP NOTES RECEIVABLE - Interest Income Associated With Vacation Ownership Notes Receivable (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Interest income | $ 81 | $ 76 |
Interest income associated with securitized vacation ownership notes receivable | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Interest income | 71 | 67 |
Interest income associated with non-securitized vacation ownership notes receivable | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Interest income | $ 10 | $ 9 |
VACATION OWNERSHIP NOTES RECEIVABLE - Additional Information (Details) $ in Millions |
Mar. 31, 2024
USD ($)
|
Dec. 31, 2023
USD ($)
|
---|---|---|
Receivables [Abstract] | ||
Weighted average FICO score within originated loan pool | 724 | 723 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Average estimated rate of default for all outstanding loans | 12.62% | 13.00% |
Estimated default rate increases that would have resulted an increase in allowance for credit losses | 0.50% | |
Financing receivable, allowance for credit losses, that would have been increased | $ 13 | $ 13 |
Acquired | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Time sharing transactions reserve | $ 14 |
VACATION OWNERSHIP NOTES RECEIVABLE - Recorded Investment in Non-accrual Notes Receivable that are Ninety Days or More Past Due (Details) - USD ($) $ in Millions |
Mar. 31, 2024 |
Dec. 31, 2023 |
---|---|---|
Financing Receivable, Past Due [Line Items] | ||
Investment in notes receivable on non-accrual status | $ 180 | $ 168 |
Non-securitized | ||
Financing Receivable, Past Due [Line Items] | ||
Investment in notes receivable on non-accrual status | 153 | 141 |
Securitized | ||
Financing Receivable, Past Due [Line Items] | ||
Investment in notes receivable on non-accrual status | $ 27 | $ 27 |
FINANCIAL INSTRUMENTS - Additional Information (Details) - USD ($) $ in Millions |
Mar. 31, 2024 |
Dec. 31, 2023 |
---|---|---|
Variable interest entity | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash surrender value of life insurance | $ 110 | $ 99 |
EARNINGS PER SHARE - Narrative (Details) - SARs - $ / shares |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Antidilutive Securities Excluded from Computation of Earnings Per Share | ||
Shares excluded from the calculation of diluted earnings per share (in shares) | 645,524 | 237,249 |
Minimum | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share | ||
Exercise price securities, excluded from computation of earnings per share (in usd per share) | $ 93.73 | $ 153.10 |
Maximum | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share | ||
Exercise price securities, excluded from computation of earnings per share (in usd per share) | $ 173.88 | $ 173.88 |
INVENTORY - Composition of Inventory (Details) - USD ($) $ in Millions |
Mar. 31, 2024 |
Dec. 31, 2023 |
---|---|---|
Inventory Disclosure [Abstract] | ||
Finished goods | $ 625 | $ 624 |
Work-in-progress | 2 | 0 |
Real estate inventory | 627 | 624 |
Other | 10 | 10 |
Inventory | $ 637 | $ 634 |
INVENTORY - Additional Information (Details) - USD ($) $ in Millions |
3 Months Ended | ||
---|---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
Dec. 31, 2023 |
|
Inventory Disclosure [Abstract] | |||
Real estate inventory, increase true up | $ 5 | $ 11 | |
Amount of completed vacation ownership units classified as property and equipment | 349 | $ 370 | |
Inventory [Line Items] | |||
Inventory deposits | 9 | $ 3 | |
Other Assets | |||
Inventory [Line Items] | |||
Inventory deposits | 5 | ||
Accounts Receivable | |||
Inventory [Line Items] | |||
Inventory deposits | $ 4 |
SECURITIZED DEBT - Future Payments Vacation Ownership Notes Receivable Securitizations (Details) $ in Millions |
Mar. 31, 2024
USD ($)
|
---|---|
Debt Instrument [Line Items] | |
2024, remaining | $ 0 |
2025 | 784 |
2026 | 575 |
2027 | 735 |
2028 | 350 |
Thereafter | 500 |
Long-term debt | 2,944 |
Variable interest entity | Vacation Ownership Notes Receivable Securitizations | Secured Debt | |
Debt Instrument [Line Items] | |
2024, remaining | 143 |
2025 | 194 |
2026 | 201 |
2027 | 204 |
2028 | 202 |
Thereafter | 1,261 |
Long-term debt | $ 2,205 |
DEBT - Accumulated Other Comprehensive Loss (Details) - USD ($) |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | $ 2,382,000,000 | |
Ending balance | 2,379,000,000 | |
Accumulated Gain (Loss), Net, Cash Flow Hedge, Parent | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Reclassification to Income Statement | 0 | $ 0 |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | 3,000,000 | 13,000,000 |
Other comprehensive loss before reclassifications | (2,000,000) | (3,000,000) |
Ending balance | $ 1,000,000 | $ 10,000,000 |
DEBT - Senior Notes (Details) - Senior notes |
Mar. 31, 2024
USD ($)
|
---|---|
2028 Notes | |
Debt Instrument [Line Items] | |
Principal amount | $ 350,000,000 |
Debt, stated interest rate | 4.75% |
2029 Notes | |
Debt Instrument [Line Items] | |
Principal amount | $ 500,000,000 |
Debt, stated interest rate | 4.50% |
DEBT - 2026 Convertible Notes (Details) |
3 Months Ended | |||
---|---|---|---|---|
Mar. 31, 2024
USD ($)
$ / shares
|
Mar. 31, 2023
USD ($)
|
Dec. 31, 2022
USD ($)
|
Dec. 31, 2021
USD ($)
|
|
2026 Convertible Notes | ||||
Debt Instrument [Line Items] | ||||
Interest rate, effective percentage | 0.55% | |||
2026 Convertible Notes | Convertible notes | ||||
Debt Instrument [Line Items] | ||||
Principal amount | $ 575,000,000 | |||
Debt, stated interest rate | 0.00% | |||
Conversion ratio | 0.0062076 | |||
Debt instrument, convertible, conversion price (in usd per share) | $ / shares | $ 161.09 | |||
Amortization of debt issuance costs | $ 1,000,000 | $ 1,000,000 | ||
2027 Convertible Notes | ||||
Debt Instrument [Line Items] | ||||
Interest rate, effective percentage | 3.88% | |||
2027 Convertible Notes | Convertible notes | ||||
Debt Instrument [Line Items] | ||||
Principal amount | $ 575,000,000 | |||
Debt, stated interest rate | 3.25% | |||
Conversion ratio | 0.0052776 | |||
Debt instrument, convertible, conversion price (in usd per share) | $ / shares | $ 189.48 | |||
Amortization of debt issuance costs | $ 1,000,000 | $ 1,000,000 |
DEBT - 2026 Convertible Note Hedges and Warrants (Details) - 2026 Convertible Notes |
3 Months Ended |
---|---|
Mar. 31, 2024
$ / shares
shares
| |
2026 Convertible Note Hedges | |
Debt Instrument [Line Items] | |
Option indexed to issuer's equity, indexed shares (in shares) | 3,600,000 |
Strike price (in usd per share) | $ / shares | $ 161.09 |
Convertible note hedges exercised (in shares) | 0 |
2026 Warrants | |
Debt Instrument [Line Items] | |
Number of securities called by warrants (in shares) | 3,600,000 |
Strike price (in usd per share) | $ / shares | $ 201.36 |
Number of warrants exercised (in shares) | 0 |
DEBT - 2027 Convertible Notes (Details) - 2027 Convertible Notes |
3 Months Ended | |
---|---|---|
Mar. 31, 2024
$ / shares
|
Dec. 31, 2022
USD ($)
|
|
Debt Instrument [Line Items] | ||
Interest rate, effective percentage | 3.88% | |
Convertible notes | ||
Debt Instrument [Line Items] | ||
Principal amount | $ | $ 575,000,000 | |
Debt, stated interest rate | 3.25% | |
Conversion ratio | 0.0052776 | |
Debt instrument, convertible, conversion price (in usd per share) | $ / shares | $ 189.48 |
DEBT - Interest Expense Related To The Convertible Notes (Details) - Convertible notes - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Debt Instrument [Line Items] | ||
Interest expense | $ 5 | $ 4 |
2027 Convertible Notes | ||
Debt Instrument [Line Items] | ||
Contractual interest expense | 4 | 4 |
Amortization of debt issuance costs | 1 | 1 |
Interest expense | $ 5 | $ 5 |
DEBT - 2027 Convertible Note Hedges and Warrants (Details) - 2027 Convertible Notes |
3 Months Ended |
---|---|
Mar. 31, 2024
$ / shares
shares
| |
2027 Warrants | |
Debt Instrument [Line Items] | |
Option indexed to issuer's equity, indexed shares (in shares) | 3,000,000 |
Number of securities called by warrants (in shares) | 3,000,000 |
Strike price (in usd per share) | $ / shares | $ 286.01 |
Number of warrants exercised (in shares) | 0 |
2027 Convertible Note Hedges | |
Debt Instrument [Line Items] | |
Strike price (in usd per share) | $ / shares | $ 189.48 |
Convertible note hedges exercised (in shares) | 0 |
SHAREHOLDERS' EQUITY - Additional Information (Details) - USD ($) $ / shares in Units, $ in Millions |
Mar. 31, 2024 |
Dec. 31, 2023 |
---|---|---|
Equity [Abstract] | ||
Common stock, shares authorized (in shares) | 100,000,000 | 100,000,000 |
Common stock, par (in usd per share) | $ 0.01 | $ 0.01 |
Common stock, shares issued (in shares) | 75,847,526 | 75,807,882 |
Common stock, shares outstanding (in shares) | 35,163,680 | 35,319,306 |
Treasury stock, shares (in shares) | 40,683,846 | 40,488,576 |
Preferred stock, shares authorized (in shares) | 2,000,000 | 2,000,000 |
Preferred stock, par value (in usd per share) | $ 0.01 | $ 0.01 |
Preferred stock, issued (in shares) | 0 | 0 |
Preferred stock, outstanding (in shares) | 0 | 0 |
Stock repurchase program, remaining authorized repurchase amount | $ 414 |
SHAREHOLDERS' EQUITY - Cash Dividend Declared (Details) - $ / shares |
3 Months Ended | ||
---|---|---|---|
Feb. 15, 2024 |
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Equity [Abstract] | |||
Dividend per share (in usd per share) | $ 0.76 | $ 0.76 | $ 0.72 |
SHARE-BASED COMPENSATION - Share-based Compensation Expense (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based compensation expense | $ 7 | $ 7 |
Service-based RSUs | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based compensation expense | 6 | 6 |
Performance-based RSUs | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based compensation expense | $ 1 | $ 1 |
SHARE-BASED COMPENSATION - Assumptions Used to Estimate Fair Value of Grants (Details) |
3 Months Ended |
---|---|
Mar. 31, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
Expected volatility | 45.78% |
Dividend yield | 3.21% |
Risk-free rate | 4.23% |
Expected term (in years) | 6 years 3 months |
VARIABLE INTEREST ENTITIES - Interest Income and Expense Recognized as a Result of Our Involvement with Variable Interest Entities (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Variable Interest Entity [Line Items] | ||
Interest income | $ 81 | $ 76 |
Variable interest entity | ||
Variable Interest Entity [Line Items] | ||
Interest income | 71 | |
Interest expense | 25 | |
Debt issuance cost amortization | 3 | |
Variable interest entity | Vacation Ownership Notes Receivable Securitizations | ||
Variable Interest Entity [Line Items] | ||
Interest income | 66 | |
Interest expense | 22 | |
Debt issuance cost amortization | 3 | |
Variable interest entity | Warehouse Credit Facility | ||
Variable Interest Entity [Line Items] | ||
Interest income | 5 | |
Interest expense | 3 | |
Debt issuance cost amortization | $ 0 |
VARIABLE INTEREST ENTITIES - Additional Information (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Dec. 31, 2023 |
|
Variable Interest Entity [Line Items] | ||
Purchase commitment obligation due, remainder of 2024 | $ 65 | |
Purchase commitment obligation due, 2025 | 82 | |
Purchase commitment obligation due, 2026 | 41 | |
Interest receivable | 422 | $ 385 |
Accrued liabilities | 384 | 343 |
Purchase of retail space | 48 | |
Cost related to the fit-out of retail space | 1 | |
Other | 227 | 249 |
Variable interest entity | ||
Variable Interest Entity [Line Items] | ||
Interest receivable | 15 | 15 |
Accrued liabilities | 4 | 4 |
Cash surrender value of life insurance | 110 | $ 99 |
Waikiki Hawaii | Variable Interest Entity, Not Primary Beneficiary | ||
Variable Interest Entity [Line Items] | ||
Interest receivable | 1 | |
Note receivable | 1 | |
Property, plant and equipment, gross | 8 | |
Accrued liabilities | 1 | |
Maximum loss | 10 | |
Other | $ 1 |
BUSINESS SEGMENTS - Additional Information (Details) |
3 Months Ended |
---|---|
Mar. 31, 2024
source
segment
| |
Segment Reporting Information [Line Items] | |
Number of operating business segments | 2 |
Number of reportable business segments | 2 |
Vacation Ownership | |
Segment Reporting Information [Line Items] | |
Number of primary sources | source | 4 |
BUSINESS SEGMENTS - Revenues (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Revenues | $ 1,195 | $ 1,169 |
Revenues excluding reimbursed costs | 804 | 804 |
United States | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Revenues excluding reimbursed costs | 699 | 700 |
All other countries | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Revenues excluding reimbursed costs | 105 | 104 |
Operating segments | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Revenues | 1,195 | 1,168 |
Operating segments | Vacation Ownership | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Revenues | 1,130 | 1,097 |
Operating segments | Exchange & Third-Party Management | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Revenues | 65 | 71 |
Consolidated Property Owners’ Associations | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Revenues | $ 0 | $ 1 |
BUSINESS SEGMENTS - Reconciliation of Adjusted EBITDA to Net Income (Loss) (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Segment Reporting Information [Line Items] | ||
Corporate and other | $ (58) | $ (63) |
Interest expense, net | (40) | (34) |
Tax provision | (35) | (41) |
Depreciation and amortization | (38) | (32) |
Share-based compensation expense | (7) | (7) |
Certain items | (20) | (2) |
NET INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS | 47 | 87 |
Vacation Ownership | ||
Segment Reporting Information [Line Items] | ||
Adjusted earnings before income taxes depreciation and amortization | 213 | 229 |
Exchange & Third-Party Management | ||
Segment Reporting Information [Line Items] | ||
Adjusted earnings before income taxes depreciation and amortization | $ 32 | $ 37 |
BUSINESS SEGMENTS - Assets (Details) - USD ($) $ in Millions |
Mar. 31, 2024 |
Dec. 31, 2023 |
---|---|---|
Segment Reporting Information [Line Items] | ||
Consolidated Assets | $ 9,867 | $ 9,680 |
Operating segments | ||
Segment Reporting Information [Line Items] | ||
Consolidated Assets | 9,129 | 8,980 |
Operating segments | Vacation Ownership | ||
Segment Reporting Information [Line Items] | ||
Consolidated Assets | 8,327 | 8,167 |
Operating segments | Exchange & Third-Party Management | ||
Segment Reporting Information [Line Items] | ||
Consolidated Assets | 802 | 813 |
Corporate and Other | ||
Segment Reporting Information [Line Items] | ||
Consolidated Assets | $ 738 | $ 700 |
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