vac-20230503
0001524358false00015243582023-05-032023-05-03

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
_________________________
FORM 8-K
_________________________
Current Report
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) May 3, 2023
_________________________
Marriott Vacations Worldwide Corporation
(Exact name of registrant as specified in its charter)
 _________________________
Delaware 001-35219 45-2598330
(State or other jurisdiction (Commission (IRS Employer
of incorporation) File Number) Identification No.)
9002 San Marco CourtOrlando,FL32819
(Address of principal executive offices)(Zip Code)
Registrant’s telephone number, including area code (407) 206-6000
N/A
(Former name or former address, if changed since last report)
_________________________
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common Stock, $0.01 Par ValueVACNew York Stock Exchange
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company  
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.



Item 2.02 Results of Operations and Financial Condition
On May 3, 2023, Marriott Vacations Worldwide Corporation (the “Company,” “we” or “our”) issued a press release reporting financial results for the quarter ended March 31, 2023. A copy of the press release is attached as Exhibit 99.1 hereto and incorporated herein by reference.
As provided in General Instruction B.2 of Form 8-K, the information contained in Item 2.02 of this Current Report on Form 8-K shall not be deemed to be “filed” for purposes of Section 18 of the Exchange Act of 1934, as amended, nor shall any such information be deemed to be incorporated by reference in any filing under the Securities Act of 1933, as amended.
Item 9.01 Financial Statements and Exhibits.
(d) The following exhibits are being furnished herewith: 
Exhibit NumberDescription
Press release reporting financial results for the quarter ended March 31, 2023
101Cover Page Interactive Data File (embedded within the Inline XBRL document)
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 
MARRIOTT VACATIONS WORLDWIDE CORPORATION
(Registrant)
Dated: May 3, 2023By:/s/ Anthony E. Terry
Name:Anthony E. Terry
Title:Executive Vice President and Chief Financial Officer

1
Document
Exhibit 99.1
https://cdn.kscope.io/e7ffa6767c2b4c1b8a1564ea7545b355-newmvwlogo2023.jpg
Neal Goldner
Investor Relations
407-206-6149
neal.goldner@mvwc.com
Cameron Klaus
Global Communications
407-513-6066
cameron.klaus@mvwc.com
Marriott Vacations Worldwide (“MVW”) Reports
First Quarter 2023 Financial Results
ORLANDO, Fla. – May 3, 2023 – Marriott Vacations Worldwide Corporation (NYSE: VAC) (the “Company”) reported first quarter 2023 financial results.
First Quarter 2023 Highlights
Consolidated Vacation Ownership contract sales were $434 million, a 10% increase compared to the first quarter of 2022, and VPG was $4,358.
Net income attributable to common shareholders was $87 million compared to $58 million in the prior year, and fully diluted earnings per share increased 67% to $2.06.
Adjusted net income attributable to common shareholders was $109 million compared to $81 million in the prior year, and adjusted fully diluted earnings per share increased 49% to $2.54.
Adjusted EBITDA increased 8% compared to the prior year to $203 million.
The Company returned $134 million to shareholders, repurchasing 522,000 shares of its common stock for $80 million and paying two quarterly dividends totaling $54 million.
“We started the year on a strong note, growing contract sales by 10% in the first quarter and Adjusted EBITDA by 8%, illustrating the resilience of our leisure focused business model,” said John Geller, president and chief executive officer. “Consumers continue to prioritize travel, which we’re seeing in our occupancies, Abound by Marriott Vacations is generating excitement among our existing owners and first time buyers, and we are making investments in our business to support our long term growth.”
Vacation Ownership
Revenues excluding cost reimbursements increased 16% in the first quarter of 2023 compared to the prior year, reflecting growth in all lines of businesses.
Segment financial results attributable to common shareholders were $205 million in the first quarter of 2023 compared to $173 million in the prior year and Segment margin was 28%. Segment Adjusted EBITDA was $229 million compared to $199 million in the prior year, and Adjusted EBITDA margin remained strong at more than 31%.
Exchange & Third-Party Management
Revenues excluding cost reimbursements decreased 12% in the first quarter of 2023 compared to the prior year and decreased 2% excluding the sale of VRI Americas in April of 2022, primarily due to lower Getaways. Interval International active members decreased 2% compared to the prior year to 1.6 million but were in-line with the fourth quarter of 2022, and Average revenue per member decreased 5% year-over-year.


Marriott Vacations Worldwide Reports First Quarter 2023 Financial Results / 2
Segment financial results attributable to common shareholders were $28 million in the first quarter of 2023, Segment margin was 42% and Segment Adjusted EBITDA was $37 million. Excluding the VRI Americas business, Segment Adjusted EBITDA decreased $4 million compared to the prior year primarily due to lower Getaway and membership revenue and Adjusted EBITDA margin was 56%.
Corporate and Other
General and administrative costs increased $7 million in the first quarter of 2023 compared to the prior year primarily as a result of our Vacation Next program and new product development initiatives, partially offset by lower bonus expense.
Balance Sheet and Liquidity
The Company ended the quarter with approximately $1.0 billion in liquidity, including $306 million of cash and cash equivalents, $120 million of gross notes receivable that were eligible for securitization, and $549 million of available capacity under its revolving corporate credit facility.
At the end of the first quarter of 2023, the Company had $3.1 billion of corporate debt and $1.9 billion of non-recourse debt related to its securitized notes receivable.
On April 13, 2023, the Company completed its first timeshare receivable securitization of 2023, issuing $380 million of notes. The transaction was structured with a gross advance rate of 98% and a weighted average interest rate of 5.52%, including $11 million of Class D Notes retained by the Company.
Full Year 2023 Outlook
The Company is providing its full year 2023 outlook as reflected in the chart below. The Financial Schedules that follow reconcile the non-GAAP financial measures set forth below to the following full year 2023 expected GAAP results for the Company.
In the table below “*” denotes non-GAAP financial measures. Please see “Non-GAAP Financial Measures” for additional information about our reasons for providing these alternative financial measures and limitations on their use.
(in millions, except per share amounts)2023 Guidance
Contract sales$1,930to$2,000
Net income attributable to common shareholders$410to$445
Earnings per share - diluted$9.70to$10.49
Net cash, cash equivalents and restricted cash provided by operating activities$382to$397
Adjusted EBITDA*$950to$1,000
Adjusted earnings per share - diluted*$11.05to$11.85
Adjusted free cash flow*$600to$670
Non-GAAP Financial Information
Non-GAAP financial measures are reconciled and adjustments are shown and described in further detail in the Financial Schedules that follow. Please see “Non-GAAP Financial Measures” for additional information about our reasons for providing these alternative financial measures and limitations on their use. In addition to the foregoing non-GAAP financial measures, we present certain key metrics as performance measures which are further described in our most recent Annual Report on Form 10-K, and which may be updated in our periodic filings with the U.S. Securities and Exchange Commission.


Marriott Vacations Worldwide Reports First Quarter 2023 Financial Results / 3
First Quarter 2023 Financial Results Conference Call
The Company will hold a conference call on May 4, 2023 at 8:30 a.m. ET to discuss these financial results and provide an update on business conditions. Participants may access the call by dialing (877) 407-8289 or (201) 689-8341 for international callers. A live webcast of the call will also be available in the Investor Relations section of the Company's website at ir.mvwc.com. An audio replay of the conference call will be available for 30 days on the Company’s website.
About Marriott Vacations Worldwide Corporation
Marriott Vacations Worldwide Corporation is a leading global vacation company that offers vacation ownership, exchange, rental and resort and property management, along with related businesses, products, and services. The Company has over 120 vacation ownership resorts and approximately 700,000 owner families in a diverse portfolio that includes some of the most iconic vacation ownership brands. The Company also operates an exchange network and membership programs comprised of more than 3,200 affiliated resorts in over 90 countries and territories, and provides management services to other resorts and lodging properties. As a leader and innovator in the vacation industry, the Company upholds the highest standards of excellence in serving its customers, investors and associates while maintaining exclusive, long-term relationships with Marriott International, Inc. and an affiliate of Hyatt Hotels Corporation for the development, sales and marketing of vacation ownership products and services. For more information, please visit www.marriottvacationsworldwide.com.
Note on forward-looking statements
This press release and accompanying schedules contain “forward-looking statements” within the meaning of federal securities laws, including statements about expectations for future growth and projections for full year 2023. Forward-looking statements include all statements that are not historical facts and can be identified by the use of forward-looking terminology such as the words “believe,” “expect,” “plan,” “intend,” “anticipate,” “estimate,” “predict,” “potential,” “continue,” “may,” “might,” “should,” “could” or the negative of these terms or similar expressions. The Company cautions you that these statements are not guarantees of future performance and are subject to numerous and evolving risks and uncertainties that we may not be able to predict or assess, such as: the effects of the COVID-19 pandemic or future health crises, including their short and longer-term impacts on consumer confidence and demand for travel, and the pace of recovery following a future health crisis; variations in demand for vacation ownership and exchange products and services; worker absenteeism; price and wage inflation; global supply chain disruptions; volatility in the international and national economy and credit markets; impact of the current or a future banking crisis; the ongoing war between Russia and Ukraine and related sanctions and other measures; our ability to attract and retain our global workforce; competitive conditions; the availability of capital to finance growth; the impact of rising interest rates; political or social strife; difficulties associated with implementing new or maintaining existing technology; changes in privacy laws and other matters referred to under the heading “Risk Factors” in our most recent Annual Report on Form 10-K, and which may be updated in our future periodic filings with the U.S. Securities and Exchange Commission. All forward-looking statements in this press release are made as of the date of this press release and the Company undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise, except as required by law. There may be other risks and uncertainties that we cannot predict at this time or that we currently do not expect will have a material adverse effect on our financial position, results of operations or cash flows. Any such risks could cause our results to differ materially from those we express in forward-looking statements.
Financial Schedules Follow



MARRIOTT VACATIONS WORLDWIDE CORPORATION
FINANCIAL SCHEDULES
QUARTER 1, 2023
TABLE OF CONTENTS
 
Summary Financial Information and Adjusted EBITDA Summary
A-1
Interim Consolidated Statements of Income
A-2
Revenues and Profit by Segment
A-3
Consolidated Contract Sales to Adjusted Development Profit
A-5
Adjusted Net Income Attributable to Common Shareholders and Adjusted Earnings Per Share - Diluted
A-6
Adjusted EBITDA
A-7
Segment Adjusted EBITDA - Vacation Ownership and Exchange & Third-Party Management
A-8
Interim Consolidated Balance Sheets
A-9
Interim Consolidated Statements of Cash Flows
A-10
2023 Outlook
Adjusted Net Income Attributable to Common Shareholders, Adjusted Earnings Per
   Share - Diluted and Adjusted EBITDA
A-12
Adjusted Free Cash Flow
A-13
Quarterly Operating Metrics
A-14
Non-GAAP Financial Measures
A-15



A-1
MARRIOTT VACATIONS WORLDWIDE CORPORATION
(In millions, except VPG, tours, total active members, average revenue per member and per share amounts)
(Unaudited)
SUMMARY FINANCIAL INFORMATION
Three Months EndedChange %
March 31, 2023March 31, 2022
Key Measures
Total consolidated contract sales$434 $394 10%
VPG$4,358 $4,706 (7%)
Tours92,890 78,505 18%
Total active members (000's)(1)
1,568 1,606 (2%)
Average revenue per member(1)
$42.07 $44.33 (5%)
GAAP Measures
Revenues$1,169 $1,052 11%
Income before income taxes and noncontrolling interests$128 $90 43%
Net income attributable to common shareholders$87 $58 50%
Earnings per share - diluted$2.06 $1.23 67%
Non-GAAP Measures*
Adjusted EBITDA$203 $188 8%
Adjusted pretax income$130 $120 8%
Adjusted net income attributable to common shareholders $109 $81 35%
Adjusted earnings per share - diluted $2.54 $1.70 49%
(1) Includes members at the end of each period for the Interval International exchange network only.
* Denotes non-GAAP financial measures. Please see “Non-GAAP Financial Measures” for additional information about our reasons for providing these alternative financial measures and limitations on their use.

ADJUSTED EBITDA SUMMARY
Three Months EndedChange %
March 31, 2023March 31, 2022
Adjusted EBITDA*$203 $188 8%
Vacation Ownership Segment*$229 $199 15%
Exchange & Third-Party Management Segment*$37 $43 (13%)
* Denotes non-GAAP financial measures. Please see “Non-GAAP Financial Measures” for additional information about our reasons for providing these alternative financial measures and limitations on their use.


A-2
MARRIOTT VACATIONS WORLDWIDE CORPORATION
INTERIM CONSOLIDATED STATEMENTS OF INCOME
(In millions, except per share amounts)
(Unaudited)
Three Months Ended
March 31, 2023March 31, 2022
REVENUES
Sale of vacation ownership products$375 $310 
Management and exchange200 222 
Rental151 133 
Financing78 71 
Cost reimbursements365 316 
TOTAL REVENUES1,169 1,052 
EXPENSES
Cost of vacation ownership products58 60 
Marketing and sales210 182 
Management and exchange107 127 
Rental113 81 
Financing26 21 
General and administrative68 61 
Depreciation and amortization32 33 
Litigation charges
Royalty fee29 27 
Impairment— 
Cost reimbursements365 316 
TOTAL EXPENSES1,015 911 
Gains and other income, net21 
Interest expense, net(34)(27)
Transaction and integration costs(13)(28)
INCOME BEFORE INCOME TAXES AND NONCONTROLLING INTERESTS128 90 
Provision for income taxes(41)(32)
NET INCOME87 58 
Net income attributable to noncontrolling interests— — 
NET INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS$87 $58 
EARNINGS PER SHARE ATTRIBUTABLE TO COMMON SHAREHOLDERS
Basic$2.32 $1.36 
Diluted$2.06 $1.23 


A-3
MARRIOTT VACATIONS WORLDWIDE CORPORATION
REVENUES AND PROFIT BY SEGMENT
for the three months ended March 31, 2023
(In millions)
(Unaudited)
Reportable SegmentCorporate and OtherTotal
Vacation OwnershipExchange & Third-Party Management
REVENUES
Sales of vacation ownership products$375 $— $— $375 
Management and exchange(1)
Ancillary revenues61 — 62 
Management fee revenues45 (1)52 
Exchange and other services revenues29 47 10 86 
Management and exchange135 56 200 
Rental141 10 — 151 
Financing78 — — 78 
Cost reimbursements(1)
368 (8)365 
TOTAL REVENUES$1,097 $71 $$1,169 
PROFIT
Development$107 $— $— $107 
Management and exchange(1)
71 26 (4)93 
Rental(1)
25 10 38 
Financing52 — — 52 
TOTAL PROFIT255 36 (1)290 
OTHER
General and administrative— — (68)(68)
Depreciation and amortization(23)(8)(1)(32)
Litigation charges(3)— — (3)
Royalty fee(29)— — (29)
Impairment(4)— — (4)
Gains and other income, net— 12 21 
Interest expense, net— — (34)(34)
Transaction and integration costs— — (13)(13)
INCOME (LOSS) BEFORE INCOME TAXES AND NONCONTROLLING INTERESTS205 28 (105)128 
Provision for income taxes— — (41)(41)
NET INCOME (LOSS)205 28 (146)87 
Net income attributable to noncontrolling interests(1)
— — — — 
NET INCOME (LOSS) ATTRIBUTABLE TO COMMON SHAREHOLDERS$205 $28 $(146)$87 
SEGMENT MARGIN(2)
28%42%
(1) Amounts included in Corporate and other represent the impact of the consolidation of certain owners’ associations under the relevant accounting guidance, and represent the portion attributable to individual or third-party vacation ownership interest owners.
(2) Segment margin represents the applicable segment’s net income or loss attributable to common shareholders divided by the applicable segment’s total revenues less cost reimbursement revenues.


A-4
MARRIOTT VACATIONS WORLDWIDE CORPORATION
REVENUES AND PROFIT BY SEGMENT
for the three months ended March 31, 2022
(In millions)
(Unaudited)
Reportable SegmentCorporate and OtherTotal
Vacation OwnershipExchange & Third-Party Management
REVENUES
Sales of vacation ownership products$310 $— $— $310 
Management and exchange(1)
Ancillary revenues54 — 55 
Management fee revenues42 10 (3)49 
Exchange and other services revenues30 53 35 118 
Management and exchange126 64 32 222 
Rental122 11 — 133 
Financing71 — — 71 
Cost reimbursements(1)
327 (20)316 
TOTAL REVENUES$956 $84 $12 $1,052 
PROFIT
Development$68 $— $— $68 
Management and exchange(1)
72 31 (8)95 
Rental(1)
32 11 52 
Financing50 — — 50 
TOTAL PROFIT222 42 265 
OTHER
General and administrative— — (61)(61)
Depreciation and amortization(22)(9)(2)(33)
Litigation charges(3)— — (3)
Royalty fee(27)— — (27)
Gains and other income, net— 
Interest expense, net— — (27)(27)
Transaction and integration costs— — (28)(28)
INCOME (LOSS) BEFORE INCOME TAXES AND NONCONTROLLING INTERESTS173 33 (116)90 
Provision for income taxes— — (32)(32)
NET INCOME (LOSS)173 33 (148)58 
Net income attributable to noncontrolling interests(1)
— — — — 
NET INCOME (LOSS) ATTRIBUTABLE TO COMMON SHAREHOLDERS$173 $33 $(148)$58 
SEGMENT MARGIN(2)
27%45%
(1) Amounts included in Corporate and other represent the impact of the consolidation of certain owners’ associations under the relevant accounting guidance, and represent the portion attributable to individual or third-party vacation ownership interest owners.
(2) Segment margin represents the applicable segment’s net income or loss attributable to common shareholders divided by the applicable segment’s total revenues less cost reimbursement revenues.


A-5
MARRIOTT VACATIONS WORLDWIDE CORPORATION
CONSOLIDATED CONTRACT SALES TO ADJUSTED DEVELOPMENT PROFIT
(In millions)
(Unaudited)

Three Months Ended
March 31, 2023March 31, 2022
Consolidated contract sales$434 $394 
Less resales contract sales(11)(9)
Consolidated contract sales, net of resales423 385 
Plus:
Settlement revenue
Resales revenue
Revenue recognition adjustments:
Reportability— (33)
Sales reserve(38)(29)
Other(1)
(24)(24)
Sale of vacation ownership products375 310 
Less:
Cost of vacation ownership products(58)(60)
Marketing and sales(210)(182)
Development profit107 68 
Revenue recognition reportability adjustment— 24 
Purchase accounting adjustments
Adjusted development profit*$109 $96 
Development profit margin28.5%21.8%
Adjusted development profit margin*29.2%28.3%
(1) Adjustment for sales incentives that will not be recognized as Sale of vacation ownership products revenue and other adjustments to Sale of vacation ownership products revenue.
* Denotes non-GAAP financial measures. Please see “Non-GAAP Financial Measures” for additional information about our reasons for providing these alternative financial measures and limitations on their use.







A-6
MARRIOTT VACATIONS WORLDWIDE CORPORATION
ADJUSTED NET INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS AND
ADJUSTED EARNINGS PER SHARE - DILUTED
(In millions, except per share amounts)
(Unaudited)
 Three Months Ended
March 31, 2023March 31, 2022
Net income attributable to common shareholders$87 $58 
Provision for income taxes41 32 
Income before income taxes attributable to common shareholders128 90 
Certain items:
ILG integration25 
Welk acquisition and integration
Transaction and integration costs13 28 
Early redemption of senior secured notes10 — 
Foreign currency translation(2)(1)
Insurance proceeds(2)(3)
Change in indemnification asset(23)— 
Other(4)— 
Gains and other income, net(21)(4)
Purchase accounting adjustments
Litigation charges
Impairment— 
Other— 
Adjusted pretax income*130 120 
Provision for income taxes(21)(39)
Adjusted net income attributable to common shareholders*$109 $81 
Diluted shares44.447.9
Adjusted earnings per share - Diluted*$2.54 $1.70 
* Denotes non-GAAP financial measures. Please see “Non-GAAP Financial Measures” for additional information about our reasons for providing these alternative financial measures and limitations on their use.


A-7
MARRIOTT VACATIONS WORLDWIDE CORPORATION
ADJUSTED EBITDA
(In millions)
(Unaudited)
Three Months Ended
March 31, 2023March 31, 2022
NET INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS$87 $58 
Interest expense, net34 27 
Provision for income taxes41 32 
Depreciation and amortization32 33 
Share-based compensation
Certain items:
ILG integration25 
Welk acquisition and integration
Transaction and integration costs13 28 
Early redemption of senior secured notes10 — 
Foreign currency translation(2)(1)
Insurance proceeds(2)(3)
Change in indemnification asset(23)— 
Other(4)— 
Gains and other income, net(21)(4)
Purchase accounting adjustments
Litigation charges
Impairment— 
Other— 
ADJUSTED EBITDA*$203 $188 
ADJUSTED EBITDA MARGIN*25%25%
* Denotes non-GAAP financial measures. Please see “Non-GAAP Financial Measures” for additional information about our reasons for providing these alternative financial measures and limitations on their use.


A-8
MARRIOTT VACATIONS WORLDWIDE CORPORATION
(In millions)
(Unaudited)
VACATION OWNERSHIP SEGMENT ADJUSTED EBITDA
Three Months Ended
March 31, 2023March 31, 2022
SEGMENT FINANCIAL RESULTS ATTRIBUTABLE TO COMMON SHAREHOLDERS$205 $173 
Depreciation and amortization23 22 
Share-based compensation
Certain items:
Insurance proceeds(2)(3)
Change in indemnification asset(3)— 
Other(4)— 
Gains and other income, net(9)(3)
Purchase accounting adjustments
Litigation charges
Impairment— 
SEGMENT ADJUSTED EBITDA*$229 $199 
SEGMENT ADJUSTED EBITDA MARGIN*31%32%

EXCHANGE & THIRD-PARTY MANAGEMENT SEGMENT ADJUSTED EBITDA
Three Months Ended
March 31, 2023March 31, 2022
SEGMENT FINANCIAL RESULTS ATTRIBUTABLE TO COMMON SHAREHOLDERS$28 $33 
Depreciation and amortization
Share-based compensation
SEGMENT ADJUSTED EBITDA*$37 $43 
SEGMENT ADJUSTED EBITDA MARGIN*56%57%
* Denotes non-GAAP financial measures. Please see “Non-GAAP Financial Measures” for additional information about our reasons for providing these alternative financial measures and limitations on their use.


A-9
MARRIOTT VACATIONS WORLDWIDE CORPORATION
INTERIM CONSOLIDATED BALANCE SHEETS
(In millions, except share and per share data)
Unaudited
March 31, 2023December 31, 2022
ASSETS
Cash and cash equivalents$306 $524 
Restricted cash (including $85 and $85 from VIEs, respectively)
268 330 
Accounts receivable, net (including $13 and $13 from VIEs, respectively)
289 292 
Vacation ownership notes receivable, net (including $1,793 and $1,792 from VIEs, respectively)
2,220 2,198 
Inventory672 660 
Property and equipment, net1,215 1,139 
Goodwill3,117 3,117 
Intangibles, net898 911 
Other (including $80 and $76 from VIEs, respectively)
617 468 
TOTAL ASSETS$9,602 $9,639 
LIABILITIES AND EQUITY
Accounts payable$222 $356 
Advance deposits178 158 
Accrued liabilities (including $3 and $5 from VIEs, respectively)
334 369 
Deferred revenue448 344 
Payroll and benefits liability206 251 
Deferred compensation liability147 139 
Securitized debt, net (including $1,957 and $1,982 from VIEs, respectively)
1,936 1,938 
Debt, net3,129 3,088 
Other183 167 
Deferred taxes339 331 
TOTAL LIABILITIES7,122 7,141 
Preferred stock — $0.01 par value; 2,000,000 shares authorized; none issued or outstanding
— — 
Common stock — $0.01 par value; 100,000,000 shares authorized; 75,805,974 and 75,744,524 shares issued, respectively
Treasury stock — at cost; 38,731,521 and 38,263,442 shares, respectively
(2,132)(2,054)
Additional paid-in capital3,937 3,941 
Accumulated other comprehensive income18 15 
Retained earnings654 593 
TOTAL MVW SHAREHOLDERS' EQUITY2,478 2,496 
Noncontrolling interests
TOTAL EQUITY2,480 2,498 
TOTAL LIABILITIES AND EQUITY$9,602 $9,639 
The abbreviation VIEs above means Variable Interest Entities.


A-10
MARRIOTT VACATIONS WORLDWIDE CORPORATION
INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS
(In millions)
(Unaudited)
Three Months Ended
March 31, 2023March 31, 2022
OPERATING ACTIVITIES
Net income$87 $58 
Adjustments to reconcile net income to net cash, cash equivalents and restricted cash (used in) provided by operating activities:
Depreciation and amortization of intangibles32 33 
Amortization of debt discount and issuance costs
Vacation ownership notes receivable reserve38 29 
Share-based compensation
Impairment charges— 
Deferred income taxes18 
Net change in assets and liabilities:
Accounts and contracts receivable(6)45 
Vacation ownership notes receivable originations(225)(205)
Vacation ownership notes receivable collections161 188 
Inventory16 28 
Other assets(146)(134)
Accounts payable, advance deposits and accrued liabilities(101)12 
Deferred revenue101 54 
Payroll and benefit liabilities(45)13 
Deferred compensation liability(7)
Other liabilities16 (3)
Purchase of vacation ownership units for future transfer to inventory— (12)
Other, net(5)(1)
Net cash, cash equivalents and restricted cash (used in) provided by operating activities(50)129 
INVESTING ACTIVITIES
Capital expenditures for property and equipment (excluding inventory)(37)(9)
Purchase of company owned life insurance— (4)
Other, net— 
Net cash, cash equivalents and restricted cash used in investing activities(37)(10)
Continued


A-11
MARRIOTT VACATIONS WORLDWIDE CORPORATION
INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS (CONTINUED)
(In millions)
(Unaudited)
Three Months Ended
March 31, 2023March 31, 2022
FINANCING ACTIVITIES
Borrowings from securitization transactions171 102 
Repayment of debt related to securitization transactions(174)(178)
Proceeds from debt405 30 
Repayments of debt(461)(30)
Finance lease incentive10 — 
Finance lease payment(2)(2)
Payment of debt issuance costs— (4)
Repurchase of common stock(80)(119)
Payment of dividends(54)(49)
Payment of withholding taxes on vesting of restricted stock units(9)(22)
Net cash, cash equivalents and restricted cash used in financing activities(194)(272)
Effect of changes in exchange rates on cash, cash equivalents and restricted cash— 
Change in cash, cash equivalents and restricted cash(280)(153)
Cash, cash equivalents and restricted cash, beginning of period854 803 
Cash, cash equivalents and restricted cash, end of period$574 $650 


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MARRIOTT VACATIONS WORLDWIDE CORPORATION
(In millions, except per share amounts)
2023 ADJUSTED NET INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS AND
ADJUSTED EARNINGS PER SHARE - DILUTED OUTLOOK
Fiscal Year 2023
(Low)
Fiscal Year 2023
(High)
Net income attributable to common shareholders$410 $445 
Provision for income taxes175 190 
Income before income taxes attributable to common shareholders585 635 
Certain items(1)
58 58 
Adjusted pretax income*643 693 
Provision for income taxes(173)(188)
Adjusted net income attributable to common shareholders*$470 $505 
Earnings per share - Diluted(2)
$9.70 $10.49 
Adjusted earnings per share - Diluted(2)*
$11.05 $11.85 
Diluted shares(2)
44.2 44.2 


2023 ADJUSTED EBITDA OUTLOOK
Fiscal Year 2023
(Low)
Fiscal Year 2023
(High)
Net income attributable to common shareholders$410 $445 
Interest expense140 140 
Provision for income taxes175 190 
Depreciation and amortization130 130 
Share-based compensation37 37 
Certain items(1)
58 58 
Adjusted EBITDA*$950 $1,000 
(1) Certain items adjustment includes $50 million of anticipated transaction and integration costs, $20 million of anticipated purchase accounting adjustments, $5 million of anticipated litigation charges, $4 million of impairments, partially offset by $21 million of gains and other income, net.
(2) We expect 6.5 million shares to be included in diluted shares related to our convertible notes and an add back of $18 million for interest expense to the numerator of the diluted earnings per share calculation.
* Denotes non-GAAP financial measures. Please see “Non-GAAP Financial Measures” for additional information about our reasons for providing these alternative financial measures and limitations on their use.


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MARRIOTT VACATIONS WORLDWIDE CORPORATION
2023 ADJUSTED FREE CASH FLOW OUTLOOK
(In millions)
Fiscal Year 2023 (Low)Fiscal Year 2023 (High)
Net cash, cash equivalents and restricted cash provided by operating activities$382 $397 
Capital expenditures for property and equipment (excluding inventory)(90)(100)
Borrowings from securitizations, net of repayments130 195 
Securitized debt issuance costs(12)(12)
Free cash flow*410 480 
Adjustments:
Net change in borrowings available from the securitization of eligible vacation ownership notes receivable(1)
120 120 
Certain items(2)
85 85 
Change in restricted cash(15)(15)
Adjusted free cash flow*$600 $670 

(1) Represents the net change in borrowings available from the securitization of eligible vacation ownership notes receivable between the 2022 and 2023 year ends.
(2) Certain items adjustment consists primarily of the after-tax impact of anticipated transaction and integration costs.
* Denotes non-GAAP financial measures. Please see “Non-GAAP Financial Measures” for additional information about our reasons for providing these alternative financial measures and limitations on their use.


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MARRIOTT VACATIONS WORLDWIDE CORPORATION
QUARTERLY OPERATING METRICS
(Contract sales in millions)
YearQuarter EndedFull Year
March 31June 30September 30December 31
Vacation Ownership
Consolidated contract sales
2023$434 
2022$394 $506 $483 $454 $1,837 
2021$226 $362 $380 $406 $1,374 
VPG
2023$4,358 
2022$4,706 $4,613 $4,353 $4,088 $4,421 
2021$4,644 $4,304 $4,300 $4,305 $4,356 
Tours
202392,890 
202278,505 102,857 104,000 105,231 390,593 
202145,871 79,900 84,098 89,495 299,364 
Exchange & Third-Party Management
Total active members (000's)(1)
20231,568 
20221,606 1,596 1,591 1,566 1,566 
20211,479 1,321 1,313 1,296 1,296 
Average revenue per member(1)
2023$42.07 
2022$44.33 $38.79 $38.91 $35.60 $157.97 
2021$47.13 $46.36 $42.95 $42.93 $179.48 
(1) Includes members at the end of each period for the Interval International exchange network only.


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MARRIOTT VACATIONS WORLDWIDE CORPORATION
NON-GAAP FINANCIAL MEASURES
In our press release and schedules, and on the related conference call, we report certain financial measures that are not prescribed by GAAP. We discuss our reasons for reporting these non-GAAP financial measures below, and the financial schedules included herein reconcile the most directly comparable GAAP financial measure to each non-GAAP financial measure that we report (identified by an asterisk (“*”) on the preceding pages). Although we evaluate and present these non-GAAP financial measures for the reasons described below, please be aware that these non-GAAP financial measures have limitations and should not be considered in isolation or as a substitute for revenues, net income or loss attributable to common shareholders, earnings or loss per share or any other comparable operating measure prescribed by GAAP. In addition, other companies in our industry may calculate these non-GAAP financial measures differently than we do or may not calculate them at all, limiting their usefulness as comparative measures.
Certain Items Excluded from Non-GAAP Financial Measures
We evaluate non-GAAP financial measures, including those identified by an asterisk (“*”) on the preceding pages, that exclude certain items as further described in the financial schedules included herein, and believe these measures provide useful information to investors because these non-GAAP financial measures allow for period-over-period comparisons of our on-going core operations before the impact of these items. These non-GAAP financial measures also facilitate the comparison of results from our on-going core operations before these items with results from other companies.
Adjusted Development Profit and Adjusted Development Profit Margin
We evaluate Adjusted development profit (Adjusted sale of vacation ownership products, net of expenses) and Adjusted development profit margin as indicators of operating performance. Adjusted development profit margin is calculated by dividing Adjusted development profit by revenues from the Sale of vacation ownership products. Adjusted development profit and Adjusted development profit margin adjust Sale of vacation ownership products revenues for the impact of revenue reportability, include corresponding adjustments to Cost of vacation ownership products associated with the change in revenues from the Sale of vacation ownership products, and may include adjustments for certain items as necessary. We evaluate Adjusted development profit and Adjusted development profit margin and believe they provide useful information to investors because they allow for period-over-period comparisons of our on-going core operations before the impact of revenue reportability and certain items to our Development profit and Development profit margin.
Earnings Before Interest Expense, Taxes, Depreciation and Amortization (“EBITDA”) and Adjusted EBITDA
EBITDA, a financial measure that is not prescribed by GAAP, is defined as earnings, or net income or loss attributable to common shareholders, before interest expense, net (excluding consumer financing interest expense associated with term securitization transactions), income taxes, depreciation and amortization. Adjusted EBITDA reflects additional adjustments for certain items and excludes share-based compensation expense to address considerable variability among companies in recording compensation expense because companies use share-based payment awards differently, both in the type and quantity of awards granted. For purposes of our EBITDA and Adjusted EBITDA calculations, we do not adjust for consumer financing interest expense associated with term securitization transactions because we consider it to be an operating expense of our business. We consider Adjusted EBITDA to be an indicator of operating performance, which we use to measure our ability to service debt, fund capital expenditures, expand our business, and return cash to shareholders. We also use Adjusted EBITDA, as do analysts, lenders, investors and others, because this measure excludes certain items that can vary widely across different industries or among companies within the same industry. For example, interest expense can be dependent on a company’s capital structure, debt levels and credit ratings. Accordingly, the impact of interest expense on earnings can vary significantly among companies. The tax positions of companies can also vary because of their differing abilities to take advantage of tax benefits and because of the tax policies of the jurisdictions in which they operate. As a result, effective tax rates and provisions for income taxes can vary considerably among companies. EBITDA and Adjusted EBITDA also exclude depreciation and amortization because companies utilize productive assets of different ages and use different methods of both acquiring and depreciating productive assets. These differences can result in considerable variability in the relative costs of productive assets and the depreciation and amortization expense among companies. We believe Adjusted EBITDA is useful as an indicator of operating performance because it allows for period-over-period comparisons of our on-going core operations before the


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impact of the excluded items. Adjusted EBITDA also facilitates comparison by us, analysts, investors, and others, of results from our on-going core operations before the impact of these items with results from other companies.
Adjusted EBITDA Margin and Segment Adjusted EBITDA Margin
We evaluate Adjusted EBITDA margin and Segment Adjusted EBITDA margin as indicators of operating performance. Adjusted EBITDA margin represents Adjusted EBITDA divided by the Company’s total revenues less cost reimbursement revenues. Segment Adjusted EBITDA margin represents Segment Adjusted EBITDA divided by the applicable segment’s total revenues less cost reimbursement revenues. We evaluate Adjusted EBITDA margin and Segment Adjusted EBITDA margin and believe it provides useful information to investors because it allows for period-over-period comparisons of our on-going core operations.
Free Cash Flow and Adjusted Free Cash Flow
We evaluate Free Cash Flow and Adjusted Free Cash Flow as liquidity measures that provide useful information to management and investors about the amount of cash provided by operating activities after capital expenditures for property and equipment and the borrowing and repayment activity related to our term securitizations, which cash can be used for, among other purposes, strategic opportunities, including acquisitions and strengthening the balance sheet. Adjusted Free Cash Flow, which reflects additional adjustments to Free Cash Flow for the impact of transaction and integration charges, impact of borrowings available from the securitization of eligible vacation ownership notes receivable, and changes in restricted cash, allows for period-over-period comparisons of the cash generated by our business before the impact of these items. Analysis of Free Cash Flow and Adjusted Free Cash Flow also facilitates management’s comparison of our results with our competitors’ results.