0001524358-19-000008 | 10-K | XBRL Viewer | Marriott Vacations Worldwide Corp

VACATION OWNERSHIP NOTES RECEIVABLE

REVENUE

We account for revenue in accordance with ASC 606, which we adopted on January 1, 2018, using the retrospective method. See Footnote 2 “Summary of Significant Accounting Policies” for additional information and Footnote 21 “Adoption Impact of New Revenue Standard” for further discussion of the adoption and the impact on our previously reported historical results.

Sources of Revenue by Segment

The following tables detail the sources of revenue by segment for each of the last three fiscal years.



	2018
($ in millions)	Vacation Ownership		Exchange & Third-Party Management		Corporate and Other			Total
Sale of vacation ownership products	$	990	$	—	$	—		$	990

Ancillary revenues	160		1		—			161
Management fee revenues	114		30		(4		)	140
Other services revenues	85		78		35			198
Management and exchange	359		109		31			499

Rental	352		18		1			371

Cost reimbursements	920		33		(28		)	925
Revenue from contracts with customers	2,621		160		4			2,785

Financing	182		1		—			183
Total Revenues	$	2,803	$	161	$	4		$	2,968



	2017
($ in millions)	Vacation Ownership		Exchange & Third-Party Management		Corporate and Other		Total
Sale of vacation ownership products	$	757	$	—	$	—	$	757

Ancillary revenues	118		—		—		118
Management fee revenues	89		—		—		89
Other services revenues	72		—		—		72
Management and exchange	279		—		—		279

Rental	262		—		—		262

Cost reimbursements	750		—		—		750
Revenue from contracts with customers	2,048		—		—		2,048

Financing	135		—		—		135
Total Revenues	$	2,183	$	—	$	—	$	2,183



	2016
($ in millions)	Vacation Ownership		Exchange & Third-Party Management		Corporate and Other		Total
Sale of vacation ownership products	$	623	$	—	$	—	$	623

Ancillary revenues	124		—		—		124
Management fee revenues	84		—		—		84
Other services revenues	70		—		—		70
Management and exchange	278		—		—		278

Rental	252		—		—		252

Cost reimbursements	720		—		—		720
Revenue from contracts with customers	1,873		—		—		1,873

Financing	127		—		—		127
Total Revenues	$	2,000	$	—	$	—	$	2,000

Timing of Revenue from Contracts with Customers by Segment

The following tables detail the timing of revenue from contracts with customers by segment for each of the last three fiscal years.



	2018
($ in millions)	Vacation Ownership		Exchange & Third-Party Management		Corporate and Other		Total
Services transferred over time	$	1,467	$	95	$	4	$	1,566
Goods or services transferred at a point in time	1,154		65		—		1,219
Revenue from contracts with customers	$	2,621	$	160	$	4	$	2,785



	2017
($ in millions)	Vacation Ownership		Exchange & Third-Party Management		Corporate and Other		Total
Services transferred over time	$	1,149	$	—	$	—	$	1,149
Goods or services transferred at a point in time	899		—		—		899
Revenue from contracts with customers	$	2,048	$	—	$	—	$	2,048



	2016
($ in millions)	Vacation Ownership		Exchange & Third-Party Management		Corporate and Other		Total
Services transferred over time	$	1,104	$	—	$	—	$	1,104
Goods or services transferred at a point in time	769		—		—		769
Revenue from contracts with customers	$	1,873	$	—	$	—	$	1,873

Receivables, Contract Assets & Contract Liabilities

The following table shows the composition of our receivables and contract liabilities. We had no contract assets at either December 31, 2018 or December 31, 2017.



($ in millions)	At December 31, 2018		At December 31, 2017
Receivables
Accounts receivable	$	68	$	73
Vacation ownership notes receivable, net	2,039		1,115
	$	2,107	$	1,188

Contract Liabilities
Advance deposits	$	113	$	84
Deferred revenue	319		69
	$	432	$	153

Revenue recognized during the year ended December 31, 2018 that was included in our contract liabilities balance at December 31, 2017 was $117 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 December 31, 2018, 90 percent of this amount is expected to be recognized as revenue over the next two years.

INCOME TAXES

12 Months Ended

Dec. 31, 2018

Income Tax Disclosure [Abstract]

INCOME TAXES

Tax Reform

On December 22, 2017, the Tax Cuts and Jobs Act (the “Tax Act”) was signed into law effective January 1, 2018. The Tax Act significantly revised the U.S. tax code by, in part, but not limited to: reducing the U.S. corporate maximum tax rate from 35 percent to 21 percent, imposing a mandatory one-time transition tax on certain un-repatriated earnings of foreign subsidiaries, modifying executive compensation deduction limitations and repealing the deduction for domestic production activities. Under ASC Topic 740, “Income Taxes,” we must generally recognize the effects of tax law changes in the period in which the new legislation is enacted.

During December 2017, the Securities and Exchange Commission staff issued Staff Accounting Bulletin (“SAB”) No. 118 (“SAB 118”) to address the application of GAAP in situations when a registrant does not have all the necessary information available, prepared, or analyzed (including computations) in reasonable detail to complete the accounting for certain income tax effects of the Tax Act. In accordance with SAB 118, our deferred tax assets and liabilities were remeasured using the new corporate tax rate of 21 percent, rather than the previous rate of 35 percent, resulting in a $65 million decrease in our income tax expense for the year ended December 31, 2017 and a corresponding $65 million decrease in our net deferred tax

liability as of December 31, 2017. In 2018, we recored an additional $1 million of income tax expense related to the effects of the Tax Act, primarily due to final Internal Revenue Service guidance issued during the year regarding executive compensation. As of December 31, 2018, all adjustments related to the Tax Act have been finalized.

The one-time transition tax on certain un-repatriated earnings of foreign subsidiaries is based on total post-1986 earnings and profits that we previously deferred from U.S. income taxes. We completed our analysis of the transition tax and determined that, due to deficits in foreign earnings and profits, there was no one-time transition impact. We recognized a $3 million deferred tax liability for tax consequences of a portion of foreign unremitted earnings that are not permanently reinvested. Our present intention is to indefinitely reinvest the residual historic undistributed accumulated earnings associated with certain foreign subsidiaries and as such, we have not provided for deferred taxes on outside basis differences in our investments in these foreign subsidiaries.

The Tax Act added a new provision for a tax on Global Intangible Low-Taxed Income (“GILTI”). As of December 31, 2018, we finalized our policy and have elected to use the period cost method for GILTI provisions and therefore have not recorded deferred taxes for basis differences expected to reverse in future periods.

Income Tax Provision

The components of our earnings before income taxes for the last three years consisted of:



($ in millions)	2018			2017		2016
United States	$	108		$	232	$	195
Non-U.S. jurisdictions	(5		)	8		3
	$	103		$	240	$	198

In 2018 and 2017, our tax benefit included an excess tax benefit of $2 million and $6 million, respectively, related to the vesting or exercise of employee share-based awards. In 2016, our tax provision did not reflect an excess tax benefit of $1 million related to the vesting and exercise of share-based awards, as this period was before our adoption of ASU 2016-09. In our statements of cash flows, we presented excess tax benefits as financing cash flows before our adoption of ASU 2016-09.

Our provision for income taxes for the last three years consisted of:



($ in millions)		2018			2017			2016
Current	– U.S. Federal	$	17		$	(49	)	$	(35	)
	– U.S. State	(1		)	(7		)	(5		)
	– Non-U.S.	(10		)	(7		)	(5		)
		6			(63		)	(45		)

Deferred	– U.S. Federal	(46		)	44			(30		)
	– U.S. State	(9		)	(1		)	(2		)
	– Non-U.S.	(2		)	15			1
		(57		)	58			(31		)
		$	(51	)	$	(5	)	$	(76	)

The deferred tax assets and related valuation allowances in these Financial Statements have been determined on a separate return basis. The assessment of the valuation allowances requires considerable judgment on the part of management with respect to benefits that could be realized from future taxable income, as well as other positive and negative factors. Valuation allowances are recorded against the deferred tax assets of certain foreign operations for which historical losses, restructuring and impairment charges have been incurred. The change in the valuation allowances established were $9 million in 2018, ($4) million in 2017 and $2 million in 2016. In addition to the $9 million increase for 2018, valuation allowances totaling $53 million were recorded as part of the ILG Acquisition.

We conduct business in countries that grant “holidays” from income taxes for ten to thirty year periods. These holidays expire through 2034.

Our income tax returns are subject to examination by relevant tax authorities. Certain of our returns are being audited in various jurisdictions for years 2012 through 2017. Although we do not anticipate that a significant impact to our unrecognized tax benefit balance will occur during the next fiscal year, the amount of our liability for unrecognized tax benefits could change as a result of audits in these jurisdictions.

Deferred Income Taxes

Deferred income tax balances reflect the effects of temporary differences between the carrying amounts of assets and liabilities and their tax bases, as well as from net operating loss and tax credit carry-forwards. We state those balances at the enacted tax rates we expect will be in effect when we actually pay or recover taxes. Deferred income tax assets represent amounts available to reduce income taxes we will pay on taxable income in future years. We evaluate our ability to realize these future tax deductions and credits by assessing whether we expect to have sufficient future taxable income from all sources, including reversal of taxable temporary differences, forecasted operating earnings and available tax planning strategies, to utilize these future deductions and credits. We establish a valuation allowance when we no longer consider it more likely than not that a deferred tax asset will be realized.

The following table presents our deferred tax assets and liabilities, and the tax effect of each type of temporary difference and carry-forward that gave rise to a significant portion of our deferred tax assets and liabilities at December 31, 2018 and December 31, 2017:



($ in millions)	At Year-End 2018			At Year-End 2017
Deferred Tax Assets
Inventory	$	145		$	38
Reserves	84			26
Deferred revenue	22			1
Property and equipment	54			12
Long lived intangible assets	—			24
Net operating loss and capital loss carryforwards	59			39
Tax credits	24			40
Other, net	21			17
Deferred tax assets	409			197
Less valuation allowance	(106		)	(44		)
Net deferred tax assets	303			153

Deferred Tax Liabilities
Long lived intangible assets	(234		)	—
Deferred sales of vacation ownership interests	(377		)	(230		)
Deferred tax liabilities	(611		)	(230		)

Total net deferred tax liabilities	$	(308	)	$	(77	)

At December 31, 2018, we had approximately $48 million of foreign net operating loss carryforwards (excluding valuation allowances) some of which begin expiring in 2019; however, a significant portion of these have indefinite carryforward periods. We have $1 million of federal net operating loss carryforwards and $2 million of state net operating loss carryforwards, of which less than $1 million will expire within the next five years. We also have a capital loss carryforward of approximately $10 million, which expires at the end of 2019, and is offset by a full valuation allowance. We also have a federal alternative minimum tax credit carryforward of $14 million, which we expect will be fully utilized in 2019, U.S. federal foreign tax credit carryforwards of $4 million, $5 million of state tax credit carryforwards and less than $1 million of non-U.S. tax credit carryforwards.

Reconciliation of U.S. Federal Statutory Income Tax Rate to Actual Income Tax Rate

The following table reconciles the U.S. statutory income tax rate to our effective income tax rate:



	2018	2017	2016
U.S. statutory income tax rate	21.00%	35.00%	35.00%
U.S. state income taxes, net of U.S. federal tax benefit	4.23	2.50	2.47
Permanent differences⁽¹⁾	2.78	(0.58)	1.16
Transaction costs⁽²⁾	4.68	—	—
Impact related to the Tax Act	1.23	(27.12)	—
Impact of non-deductible executive compensation⁽³⁾	3.60	(2.54)	—
Foreign tax rate changes	(0.11)	(2.01)	0.05
Non-U.S. income (loss)⁽⁴⁾	3.90	(2.61)	0.08
Other items	(0.11)	(0.79)	(1.06)
Change in valuation allowance⁽⁵⁾	8.60	0.03	0.78
Effective rate	49.80%	1.88%	38.48%

_________________________


⁽¹⁾	Primarily due to non-deductible meal and entertainment expenses and new foreign tax provisions net of foreign tax credits, under provisions of the Tax Act.


⁽²⁾	Attributed to non-deductible transaction costs incurred as a result of the ILG Acquisition.


⁽³⁾	Increase attributable to non-deductible executive compensation under provisions of the Tax Act.


⁽⁴⁾	Attributed to the difference between U.S. and foreign income tax rates and other foreign adjustments.

⁽⁵⁾

In 2018 and 2016, primarily attributable to losses and future deductions in foreign jurisdictions for which a tax benefit has not been recognized through establishment of valuation allowances. The 2017 impact is the net impact of foreign losses not resulting in a benefit due to the establishment of valuation allowances, partially offset by the release of a portion of previously established foreign valuation allowances.

VACATION OWNERSHIP NOTES RECEIVABLE

12 Months Ended

Dec. 31, 2018

Receivables [Abstract]

The following table shows the composition of our vacation ownership notes receivable balances, net of reserves:



	December 31, 2018						December 31, 2017
($ in millions)	Originated		Acquired		Total		Originated		Acquired		Total
Securitized	$	1,070	$	557	$	1,627	$	814	$	—	$	814
Non-securitized
Eligible for securitization⁽¹⁾	85		22		107		142		—		142
Not eligible for securitization⁽¹⁾	233		72		305		159		—		159
Subtotal	318		94		412		301		—		301
	$	1,388	$	651	$	2,039	$	1,115	$	—	$	1,115

_________________________


⁽¹⁾	Refer to Footnote 7 “Financial Instruments” for discussion of eligibility of our vacation ownership notes receivable for securitization.

We reflect interest income associated with vacation ownership notes receivable in our Income Statements in the Financing revenues caption. The following table summarizes interest income associated with vacation ownership notes receivable:



($ in millions)	2018		2017		2016
Interest income associated with vacation ownership notes receivable — securitized	$	151	$	101	$	97
Interest income associated with vacation ownership notes receivable — non-securitized	24		27		23
Total interest income associated with vacation ownership notes receivable	$	175	$	128	$	120

Acquired Vacation Ownership Notes Receivable

As part of the ILG Acquisition, we acquired existing portfolios of vacation ownership notes receivable. These notes receivable are accounted for using the expected cash flow method of recognizing discount accretion based on the expected cash flows from the acquired vacation ownership notes receivable pursuant to ASC Topic 310-30, “Loans acquired with deteriorated credit quality” (“ASC 310-30”). At acquisition, we recorded these acquired vacation ownership notes receivable at a preliminary estimate of fair value, including a credit discount which is accreted as an adjustment to yield over the estimated life of the vacation ownership notes receivable.

The fair value of our acquired vacation ownership notes receivable as of the Acquisition Date was determined using a discounted cash flow method, which calculated a present value of expected future cash flows based on scheduled principal and interest payments over the term of the respective vacation ownership notes receivable, while considering anticipated defaults and early repayments based on historical experience. Consequently, the fair value of the acquired vacation ownership notes receivable recorded on our balance sheet as of the Acquisition Date included an estimate for future uncollectible amounts which became the historical cost basis for that portfolio going forward.

The table below presents a rollforward from the Acquisition Date of the accretable yield (interest income) expected to be earned related to our acquired vacation ownership notes receivable, as well as the amount of non-accretable difference at the end of the period. The non-accretable difference represents estimated contractually required payments in excess of estimated cash flows expected to be collected. The accretable yield represents the excess of estimated cash flows expected to be collected over the carrying amount of the acquired vacation ownership notes receivable.



($ in millions)	122 Days Ended December 31, 2018
Balance at Acquisition Date	$	—
Acquired accretable yield	233
Accretion	(32		)
Reclassification from non-accretable difference	(2		)
Balance at December 31, 2018	$	199

Non-accretable difference at December 31, 2018	$	68

The accretable yield is recognized into interest income over the estimated life of the acquired vacation ownership notes receivable using the level yield method. The accretable yield may change in future periods due to changes in the anticipated remaining life of the acquired vacation ownership notes receivable, which may alter the amount of future interest income expected to be collected, and changes in expected future principal and interest cash collections which impacts the non-accretable difference.

Our acquired vacation ownership notes receivable are remeasured at period end based on expected future cash flows which takes into consideration an estimated measure of anticipated defaults and early repayments. We consider historical Legacy-ILG vacation ownership notes receivable performance and the current economic environment in developing the expected future cash flows used in the re-measurement of our acquired vacation ownership notes receivable.

The following tables show future contractual principal payments, as well as interest rates for our acquired non-securitized and securitized vacation ownership notes receivable at December 31, 2018:



	Acquired Vacation Ownership Notes Receivable
($ in millions)	Non-Securitized		Securitized		Total
2019	$	9	$	57	$	66
2020	8		59		67
2021	9		61		70
2022	9		61		70
2023	9		60		69
Thereafter	50		259		309
Balance at December 31, 2018	$	94	$	557	$	651
Weighted average stated interest rate	13.4%		13.4%		13.4%
Range of stated interest rates	0.0% to 17.9%		6.0% to 17.9%		0.0% to 17.9%

Originated Vacation Ownership Notes Receivable

Originated vacation ownership notes receivable represent vacation ownership notes receivable originated by Legacy-ILG subsequent to the Acquisition Date and all Legacy-MVW vacation ownership notes receivable. The following table shows future principal payments, net of reserves, as well as interest rates for our originated non-securitized and securitized originated vacation ownership notes receivable at December 31, 2018:



	Originated Vacation Ownership Notes Receivable
($ in millions)	Non-Securitized		Securitized		Total
2019	$	52	$	104	$	156
2020	38		108		146
2021	32		112		144
2022	28		115		143
2023	25		116		141
Thereafter	143		515		658
Balance at December 31, 2018	$	318	$	1,070	$	1,388
Weighted average stated interest rate	11.8%		12.5%		12.4%
Range of stated interest rates	0.0% to 18.0%		5.2% to 17.5%		0.0% to 18.0%

For originated vacation ownership notes receivable, we record the difference between the vacation ownership note receivable and the variable consideration included in the transaction price for the sale of the related vacation ownership product as a reserve on our vacation ownership notes receivable. See Footnote 4 “Revenue” for further information.

The following table summarizes the activity related to our originated vacation ownership notes receivable reserve:



	Originated Vacation Ownership Notes Receivable
($ in millions)	Non-Securitized			Securitized			Total
Balance at December 31, 2015	$	59		$	49		$	108
Increase in vacation ownership notes receivable reserve	27			17			44
Securitizations	(28		)	28			—
Clean-up of Warehouse Credit Facility⁽¹⁾	10			(10		)	—
Write-offs	(40		)	—			(40		)
Defaulted vacation ownership notes receivable repurchase activity⁽²⁾	30			(30		)	—
Balance at December 31, 2016	58			54			112
Increase in vacation ownership notes receivable reserve	42			10			52
Securitizations	(29		)	29			—
Clean-up of Warehouse Credit Facility⁽¹⁾	4			(4		)	—
Write-offs	(45		)	—			(45		)
Defaulted vacation ownership notes receivable repurchase activity⁽²⁾	28			(28		)	—
Balance at December 31, 2017	58			61			119
Vacation ownership notes receivable reserve	57			7			64
Securitizations	(39		)	39			—
Clean-up call⁽¹⁾	1			(1		)	—
Write-offs	(43		)	—			(43		)
Defaulted vacation ownership notes receivable repurchase activity⁽²⁾	27			(27		)	—
Balance at December 31, 2018	$	61		$	79		$	140

_________________________


⁽¹⁾	Refers to our voluntary repurchase of previously securitized non-defaulted vacation ownership notes receivable to retire outstanding vacation ownership notes receivable securitizations in 2018 and from our Warehouse Credit Facility (as defined in Footnote 13 “Securitized Debt”) in 2017 and 2016.


⁽²⁾	Decrease in securitized vacation ownership notes receivable reserve and increase in non-securitized vacation ownership notes receivable reserve was attributable to the transfer of the reserve when we voluntarily repurchased defaulted securitized vacation ownership notes receivable.

Credit Quality of Vacation Ownership Notes Receivable

Legacy-MVW Vacation Ownership Notes Receivable

The following table shows our recorded investment in non-accrual Legacy-MVW vacation ownership notes receivable, which are vacation ownership notes receivable that are 90 days or more past due. As noted in Footnote 2 “Summary of Significant Accounting Policies” we recognize interest income on a cash basis for these vacation ownership notes receivable.



	Legacy-MVW Vacation Ownership Notes Receivable
($ in millions)	Non-Securitized		Securitized		Total
Investment in vacation ownership notes receivable on non-accrual status at year-end 2018	$	36	$	9	$	45
Investment in vacation ownership notes receivable on non-accrual status at year-end 2017	$	39	$	7	$	46
Average investment in vacation ownership notes receivable on non-accrual status during 2018	$	38	$	8	$	46

The following table shows the aging of the recorded investment in principal, before reserves, in Legacy-MVW vacation ownership notes receivable as of December 31, 2018:



	Legacy-MVW Vacation Ownership Notes Receivable
($ in millions)	Non-Securitized		Securitized		Total
31 – 90 days past due	$	7	$	26	$	33
91 – 150 days past due	3		9		12
Greater than 150 days past due	33		—		33
Total past due	43		35		78
Current	235		1,090		1,325
Total vacation ownership notes receivable	$	278	$	1,125	$	1,403

The following table shows the aging of the recorded investment in principal, before reserves, in Legacy-MVW vacation ownership notes receivable as of December 31, 2017:



	Legacy-MVW Vacation Ownership Notes Receivable
($ in millions)	Non-Securitized		Securitized		Total
31 – 90 days past due	$	7	$	19	$	26
91 – 150 days past due	5		7		12
Greater than 150 days past due	34		—		34
Total past due	46		26		72
Current	313		849		1,162
Total vacation ownership notes receivable	$	359	$	875	$	1,234

Legacy-ILG Vacation Ownership Notes Receivable

As noted in Footnote 2 “Summary of Significant Accounting Policies” we consider Legacy-ILG vacation ownership notes receivable to be in default upon reaching 120 days outstanding. We use the origination of the vacation ownership notes receivable by brand (Hyatt, Sheraton, Westin) and the FICO scores of the customer as the primary credit quality indicators for our Legacy-ILG vacation ownership notes receivable, as historical performance indicates that there is a relationship between the default behavior of borrowers and the brand associated with the vacation ownership interest they have acquired, supplemented by the FICO scores of the customers.

The following table shows the Legacy-ILG acquired vacation ownership notes receivable by brand and FICO score as of December 31, 2018:



	Acquired Vacation Ownership Notes Receivable
($ in millions)	700 +		600 - 699		< 600		No Score⁽¹⁾		Total
Westin	$	154	$	82	$	6	$	21	$	263
Sheraton	145		124		21		55		345
Hyatt	20		13		2		—		35
Other	4		1		—		3		8
	$	323	$	220	$	29	$	79	$	651

_________________________


⁽¹⁾	Vacation ownership notes receivable with no FICO score primarily relate to non-U.S. resident borrowers.

The following table shows the Legacy-ILG originated vacation ownership notes receivable by brand and FICO score as of December 31, 2018:



	Originated Vacation Ownership Notes Receivable
($ in millions)	700 +		600 - 699		< 600		No Score⁽¹⁾		Total
Westin	$	43	$	11	$	1	$	7	$	62
Sheraton	28		17		3		9		57
Hyatt	5		2		—		—		7
	$	76	$	30	$	4	$	16	$	126

_________________________


⁽¹⁾	Vacation ownership notes receivable with no FICO score primarily relate to non-U.S. resident borrowers.

The following table shows the aging of the recorded investment in principal, before reserves, in Legacy-ILG originated vacation ownership notes receivable as of December 31, 2018:



	Originated Vacation Ownership Notes Receivable
					Delinquent						Defaulted⁽¹⁾		Total Delinquent & Defaulted
($ in millions)	Receivables		Current		30 - 59 Days		60 - 89 Days		90 - 119 Days		> 120 Days		Total Delinquent & Defaulted
December 31, 2018	$	126	$	124	$	2	$	—	$	—	$	—	$	2

_________________________

⁽¹⁾

Vacation ownership notes receivable equal to or greater than 120 days are considered in default.

FINANCIAL INSTRUMENTS

12 Months Ended

Dec. 31, 2018

Investments, All Other Investments [Abstract]

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 receivable, Accounts payable, Advance deposits and Accrued liabilities, all of which had fair values approximating their carrying amounts due to the short maturities and liquidity of these instruments.



	December 31, 2018						December 31, 2017
($ in millions)	Carrying Amount			Fair Value			Carrying Amount			Fair Value
Originated vacation ownership notes receivable	$	1,388		$	1,413		$	1,115		$	1,276
Other assets	66			66			14			14
	$	1,454		$	1,479		$	1,129		$	1,290

Securitized debt, net	$	(1,694	)	$	(1,698	)	$	(835	)	$	(836	)
Exchange Notes, net	(88		)	(87		)	—			—
Senior Unsecured Notes, net	(741		)	(726		)	—			—
IAC Notes	(141		)	(140		)	—			—
Term Loan, net	(888		)	(887		)	—			—
Convertible notes, net	(199		)	(198		)	(192		)	(260		)
Non-interest bearing note payable, net	(30		)	(30		)	(61		)	(61		)
Other debt, net	(20		)	(20		)	—			—
Other liabilities	(6		)	(6		)	—			—
	$	(3,807	)	$	(3,792	)	$	(1,088	)	$	(1,157	)

Originated Vacation Ownership Notes Receivable



	December 31, 2018				December 31, 2017
($ in millions)	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Originated vacation ownership notes receivable
Securitized	$	1,070	$	1,093	$	814	$	955

Eligible for securitization	85		87		142		162
Not eligible for securitization	233		233		159		159
Non-securitized	318		320		301		321
	$	1,388	$	1,413	$	1,115	$	1,276

We estimate the fair value of our originated 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 originated 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 originated 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 originated vacation ownership notes receivable that have not been securitized that we believe will ultimately be securitized in the same manner as originated vacation ownership notes receivable that have been securitized. We value the remaining originated 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 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.

Other Assets

Other assets include $26 million of company owned insurance policies (the “COLI policies”), acquired on the lives of certain participants in the Marriott Vacations Worldwide Deferred Compensation Plan, that are held in a rabbi trust. The carrying value of the COLI policies is equal to their cash surrender value (Level 2 inputs). In addition, we have investments in marketable securities of $8 million which are marked to market as trading securities using quoted market prices (Level 1 inputs). We also have a $32 million note receivable related to a convertible secured loan facility for which fair value approximates carrying value as the terms and interest rate approximate market.

Non-Recourse Debt Associated with Securitized Vacation Ownership Notes Receivable

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.

Exchange Notes

We estimate the fair value of our Exchange Notes (as defined in Footnote 14 “Debt”) using indicative quotes from securities dealers 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 Exchange Notes could be retired or transferred. We concluded that this fair value measurement should be categorized within Level 3.

Senior Unsecured Notes

We estimate the fair value of our Senior Unsecured Notes (as defined in Footnote 14 “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 as such this fair value estimate is not necessarily indicative of the value at which the Senior Unsecured Notes could be retired or transferred. We concluded that this fair value measurement should be categorized within Level 2.

IAC Notes

We estimate the fair value of our IAC Notes (as defined in Footnote 14 “Debt”) using indicative quotes from securities dealers as of the last trading day for the quarter; however these notes have only a limited trading volume and as such this fair value estimate is not necessarily indicative of the value at which the IAC Notes could be retired or transferred. 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 14 “Debt”) approximates its gross carrying value as the contractual interest rate is variable plus an applicable margin. In addition, the Term Loan was priced and closed within the third quarter of 2018. We concluded that this fair value measurement should be categorized within Level 3.

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. The difference between the carrying value and the fair value is primarily attributed to the underlying conversion feature, and the spread between the conversion price and the market value of the shares underlying the Convertible Notes.

Non-Interest Bearing Note Payable

The carrying value of our non-interest bearing note payable issued in connection with the acquisition of vacation ownership units located on the Big Island of Hawaii approximates fair value, because the imputed interest rate used to discount this note payable is consistent with current market rates.

EARNINGS PER SHARE

12 Months Ended

Dec. 31, 2018

Earnings Per Share [Abstract]

EARNINGS PER SHARE

Basic earnings per common share is calculated by dividing net income attributable to common shareholders by the weighted average number of shares of common stock outstanding during the reporting period. Treasury stock is excluded from the weighted average number of shares of common stock outstanding. Diluted earnings per common share is calculated to give effect to all potentially dilutive common shares that were outstanding during the reporting period. The dilutive effect of outstanding equity-based compensation awards is reflected in diluted earnings per common share by application of the treasury stock method using average market prices during the period.

Our calculation of diluted earnings per share reflects our intent to settle conversions of the Convertible Notes through a combination settlement, which contemplates repayment in cash of the principal amount and repayment in shares of our common stock of any excess of the conversion value over the principal amount (the “conversion premium”). Therefore, we include only the shares that may be issued with respect to any conversion premium in total dilutive weighted average shares outstanding, which we calculate using the treasury stock method. As no conversion premium existed as of either December 31, 2018 or December 31, 2017, there was no dilutive impact from the Convertible Notes for either 2018 or 2017.

The shares issuable on exercise of the Warrants (as defined in Footnote 14 “Debt”) sold in connection with the issuance of the Convertible Notes will not impact the total dilutive weighted average shares outstanding unless and until the price of our common stock exceeds the strike price, which was subject to adjustment in the fourth quarter of 2018 to $176.15, as described in Footnote 14 “Debt.” If and when the price of our common stock exceeds the strike price of the Warrants, we will include the dilutive effect of the additional shares that may be issued upon exercise of the Warrants in total dilutive weighted average shares outstanding, which we calculate using the treasury stock method. The Convertible Note Hedges (as defined in Footnote 14 “Debt”) purchased in connection with the issuance of the Convertible Notes are considered to be anti-dilutive and will not impact our calculation of diluted earnings per share.

The table below illustrates the reconciliation of the earnings and number of shares used in our calculation of basic and diluted earnings per share.



Computation of Basic and Diluted Earnings Per Share Attributable to Common Shareholders
(in millions, except per share amounts)	2018⁽¹⁾		2017⁽¹⁾		2016⁽¹⁾
Net income attributable to common shareholders	$	55	$	235	$	122
Shares for basic earnings per share	33.3		27.1		27.9
Basic earnings per share	$	1.64	$	8.70	$	4.37

Net income attributable to common shareholders	$	55	$	235	$	122
Shares for basic earnings per share	33.3		27.1		27.9
Effect of dilutive shares outstanding
Employee stock options and SARs	0.4		0.4		0.3
Restricted stock units	0.3		0.2		0.2
Shares for diluted earnings per share	34.0		27.7		28.4
Diluted earnings per share	$	1.61	$	8.49	$	4.29

_________________________


⁽¹⁾	The computations of diluted earnings per share exclude approximately 165,000, 238,000 and 217,000 shares of common stock, the maximum number of shares issuable as of December 31, 2018, December 31, 2017 and

December 30, 2016, 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 respective reporting period.

In accordance with the applicable accounting guidance for calculating earnings per share, for the year ended December 31, 2018, we excluded from our calculation of diluted earnings per share 56,649 shares underlying SARs that may be settled in shares of common stock because the exercise price of $143.38 of such SARs was greater than the average market price for the applicable period.

For the year ended December 31, 2017, our calculation of diluted earnings per share included shares underlying SARs that may be settled in shares of common stock because the exercise price of such SARs were less than or equal to the average market price for the applicable period.

For the year ended December 30, 2016, we excluded from our calculation of diluted earnings per share 62,018 shares underlying SARs that may be settled in shares of common stock because the exercise price of $77.42 of such SARs was greater than the average market prices for the applicable period.

INVENTORY

12 Months Ended

Dec. 31, 2018

Inventory Disclosure [Abstract]

INVENTORY

The following table shows the composition of our inventory balances:



($ in millions)	At Year-End 2018		At Year End 2017
Finished goods⁽¹⁾	$	843	$	391
Work-in-progress	9		2
Real estate inventory	852		393
Operating supplies and retail inventory	11		5
	$	863	$	398

_________________________


⁽¹⁾	Represents completed inventory that is either registered for sale as vacation ownership interests, or unregistered and available for sale in its current form.

We value vacation ownership interests at the lower of cost or fair market value less costs to sell, in accordance with applicable accounting guidance, and we record operating supplies at the lower of cost (using the first-in, first-out method) or net realizable value.

In addition to the above, at December 31, 2018, we had $51 million of completed vacation ownership units which have been classified as a component of Property and equipment until the time at which they are legally registered for sale as vacation ownership products.

PROPERTY AND EQUIPMENT

12 Months Ended

Dec. 31, 2018

Property, Plant and Equipment [Abstract]

PROPERTY AND EQUIPMENT

The following table details the composition of our property and equipment balances:



($ in millions)	At Year-End 2018			At Year-End 2017
Land and land improvements	$	466		$	390
Buildings and leasehold improvements	404			259
Furniture, fixtures and other equipment	88			54
Information technology	297			185
Construction in progress	32			23
	1,287			911
Accumulated depreciation	(336		)	(328		)
	$	951		$	583

CONTINGENCIES AND COMMITMENTS

12 Months Ended

Dec. 31, 2018

Commitments and Contingencies Disclosure [Abstract]

CONTINGENCIES AND COMMITMENTS

Commitments and Letters of Credit

As of December 31, 2018, 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 commitments under these contracts were $51 million, of which we expect $29 million, $12 million, $4 million, $3 million, $2 million and $1 million will be paid in 2019, 2020, 2021, 2022, 2023 and thereafter, respectively.


•	We have commitments of $6 million to subsidize operating costs of vacation ownership property owners’ associations, which we expect to pay in 2019.

•

We have a commitment to purchase an operating property located in New York, New York for $182 million, of which $7 million is attributed to a related capital lease arrangement and recorded in Debt. We expect to acquire the units in the property, in their current form, over time, and we expect to make payments for these units of $120 million and $62 million in 2020 and 2021, respectively. We currently manage this property, which we have rebranded as Marriott Vacation Club Pulse, New York City. See Footnote 17 “Variable Interest Entities,” for additional information on this transaction and our activities relating to the variable interest entity involved in this transaction.

•

We have a commitment to purchase 88 vacation ownership units located in Bali, Indonesia for use in our Vacation Ownership segment, contingent upon completion of construction to agreed-upon standards within specified timeframes. We expect to complete the acquisition in 2019 and to make the remaining payments with respect to these units when specific construction milestones are completed, as follows: $31 million in 2019 and $2 million in 2020.

•

During the first quarter of 2019, we amended a commitment to purchase an operating property located in San Francisco, California for $158 million, of which $9 million is attributed to a related capital lease arrangement and recorded in Debt. We expect to acquire the operating property over time and expect to make payments for the operating property as follows: $56 million in 2019, $55 million in 2020 and $47 million in 2021. We currently manage this unbranded property, and expect it to be branded as Marriott Vacation Club Pulse, San Francisco during 2019. See Footnote 17 “Variable Interest Entities” for additional information on this transaction and our activities relating to the variable interest entity involved in this transaction.

Surety bonds issued as of December 31, 2018 totaled $74 million, the majority of which were requested by federal, state or local governments in connection with our operations.

Additionally, as of December 31, 2018, we had $4 million of letters of credit outstanding under our $600 million revolving credit facility (the “Revolving Corporate Credit Facility”).

Guarantees

At December 31, 2018, our maximum exposure under guarantees was $40 million which primarily relates to certain of our rental management agreements within our Exchange & Third-Party Management segment. These agreements provide for owners to receive specified percentages or guaranteed amounts of the rental revenue generated under its 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 our vacation rental business either retains the balance (if any) as its fee or makes up the deficit.

Loss Contingencies

In April 2013, Krishna and Sherrie Narayan and other owners of 12 residential units (owners of two of which subsequently agreed to release their claims) at the resort formerly known as The Ritz-Carlton Club & Residences, Kapalua Bay (“Kapalua Bay”) filed an amended complaint in Circuit Court for Maui County, Hawaii against us, certain of our subsidiaries, Marriott International certain of its subsidiaries, and the joint venture in which we have an equity investment that developed and marketed vacation ownership and residential products at Kapalua Bay (the “Joint Venture”). In the original complaint, the plaintiffs alleged that defendants mismanaged funds of the residential owners’ association (the “Kapalua Bay Association”), created a conflict of interest by permitting their employees to serve on the Kapalua Bay Association’s board, and failed to disclose documents to which the plaintiffs were allegedly entitled. The amended complaint alleged breach of fiduciary duty, violations of the Hawaii Unfair and Deceptive Trade Practices Act and the Hawaii condominium statute, intentional misrepresentation and concealment, unjust enrichment and civil conspiracy. The relief sought in the amended complaint included injunctive relief, repayment of all sums paid to us and our subsidiaries and Marriott International and its subsidiaries, compensatory and punitive damages, and treble damages under the Hawaii Unfair and Deceptive Trade Practices Act. In

October 2018, the parties reached agreements to settle the claims of the plaintiffs and during the third quarter of 2018 we recorded an accrual of $16 million in conjunction with the settlements.

In June 2013, Earl C. and Patricia A. Charles, owners of a fractional interest at Kapalua Bay, together with owners of 38 other fractional interests (owners of two of which subsequently agreed to release their claims) at Kapalua Bay, filed an amended complaint in the Circuit Court of the Second Circuit for the State of Hawaii against us, certain of our subsidiaries, Marriott International, certain of its subsidiaries, the Joint Venture, and other entities that have equity investments in the Joint Venture. The plaintiffs alleged that the defendants failed to disclose the financial condition of the Joint Venture and the commitment of the defendants to the Joint Venture, and that defendants’ actions constituted fraud and violated the Hawaii Unfair and Deceptive Trade Practices Act, the Hawaii Condominium Property Act and the Hawaii Time Sharing Plans statute. The relief sought included compensatory and punitive damages, attorneys’ fees, pre-judgment interest, declaratory relief, rescission and treble damages under the Hawaii Unfair and Deceptive Trade Practices Act. The complaint was subsequently further amended to add owners of two additional fractional interests as plaintiffs. In February 2019, the parties reached a tentative agreement to settle the case and during the fourth quarter of 2018 we recorded an accrual of $12 million in conjunction with the settlement. The definitive terms of the settlement agreement are being finalized.

In May 2015, we and certain of our subsidiaries were named as defendants in an action filed in the Superior Court of San Francisco County, California, by William and Sharon Petrick and certain other present and former owners of fractional interests at the RCC San Francisco. The plaintiffs alleged that the affiliation of the RCC San Francisco with our points-based Marriott Vacation Club Destinations (“MVCD”) program, certain alleged sales practices, and other acts we and the other defendants allegedly took caused an actionable decrease in the value of their fractional interests. The relief sought included, among other things, compensatory and punitive damages, rescission, and pre- and post-judgment interest. In July 2018, the parties reached an agreement to settle the case and during the third quarter of 2018 we recorded an accrual of $11 million in connection with the settlement. In addition to various terms and conditions, the settlement calls for our repurchase of fractional interests owned by the plaintiffs.

In March 2017, RCHFU, L.L.C. and other owners of 232 fractional interests at The Ritz-Carlton Club, Aspen Highlands (“RCC Aspen Highlands”) served an amended complaint in an action pending in the U.S. District Court for the District of Colorado against us, certain of our subsidiaries, and other third party defendants. The amended complaint alleges that the plaintiffs’ fractional interests were devalued by the affiliation of the RCC Aspen Highlands and other Ritz-Carlton Clubs with our points-based MVCD program. The relief sought includes, among other things, unspecified damages, pre- and post-judgment interest, and attorneys’ fees. We filed a motion to dismiss the amended complaint, which the Court granted in part and denied in part in March 2018. In February 2018, plaintiffs filed a motion seeking to add a claim for punitive damages to their complaint, which the Court granted in May 2018. In January 2019, plaintiffs filed a motion seeking to further amend their complaint. That motion remains pending. We dispute the plaintiffs’ material allegations and continue to defend against the action vigorously. Given the inherent uncertainties of litigation, we cannot estimate a range of the potential liability, if any, at this time.

In May 2016, we, certain of our subsidiaries, and certain third parties were named as defendants in an action filed in the U.S. District Court for the Middle District of Florida by Anthony and Beth Lennen. The case is filed as a putative class action; the plaintiffs seek to represent a class consisting of themselves and all other purchasers of MVCD points, from inception of the MVCD program in June 2010 to the present, as well as all individuals who own or have owned weeks in any resorts for which weeks have been added to the MVCD program. Plaintiffs challenge the characterization of the beneficial interests in the MVCD trust that are sold to customers as real estate interests under Florida law. They also challenge the structure of the trust and associated operational aspects of the trust product. The relief sought includes, among other things, declaratory relief, an unwinding of the MVCD product, and punitive damages. In September 2016, we filed a motion to dismiss the complaint and a motion to stay the case pending referral of certain questions to Florida state regulators, and the Court granted the motion to dismiss and denied the motion to stay. The Court granted leave to plaintiffs to file an amended complaint, which plaintiffs filed in October 2017. In November 2017, we filed a motion to dismiss the amended complaint, which remains pending. In October 2018, plaintiffs filed a motion for class certification, which we opposed. The motion remains pending. We dispute the plaintiffs’ material allegations and continue to defend against the action vigorously. Given the early stages of the action and the inherent uncertainties of litigation, we cannot estimate a range of the potential liability, if any, at this time.

In December 2016, individuals and entities who own or owned 107 fractional interests at the Fifth and Fifty-Fifth Residence Club located within The St. Regis, New York (the “St. Regis NY Club”) filed an action against ILG, certain of its subsidiaries, Marriott International and certain of its subsidiaries including Starwood. The case is filed as a mass action in the U.S. District Court for the Southern District of New York. Plaintiffs principally challenge the sale of less than all interests offered in the fractional offering plan, the amendment of the plan to include additional units, and the rental of unsold fractional interests by the plan’s sponsor, claiming that the alleged acts breached the relevant agreements and harmed the value of plaintiffs’ fractional interests. The relief sought includes, among other things, compensatory damages, rescission, disgorgement, attorneys’ fees, and pre- and post-judgment interest. In April 2017, we filed a motion to dismiss the amended complaint, which

the Court granted in part and denied in part in September 2018. Thereafter, in October 2018 plaintiffs filed another amended complaint. We responded by filing a motion to dismiss, which remains pending. We dispute the material allegations and continue to defend against the action vigorously. Given the inherent uncertainties of litigation, we cannot estimate a range of the potential liability, if any, at this time.

In February 2017, the owners’ association for the St. Regis NY Club filed a separate suit against ILG and certain of its subsidiaries in the U.S. District Court for the Southern District of New York. In March 2017, before we were served with the initial complaint, plaintiff filed an amended complaint that added Marriott International and Starwood as defendants and added additional claims. Plaintiff filed a second amended complaint in July 2017. The complaint, as amended, asserts claims against the sponsor of the St. Regis NY Club (St. Regis Residence Club, New York, Inc.), the St. Regis NY Club manager (St. Regis New York Management, Inc.), and certain affiliated entities, as well as against Marriott International and Starwood, for alleged breach of fiduciary duties principally related to sale and rental practices, tortious interference with the management agreement, and alleged unjust enrichment, seeks certain declaratory relief in connection with the Starpoints conversion program and the exchange program at the St. Regis NY Club, and asserts claims based on alleged anticompetitive conduct by the defendants in connection with plaintiff’s renewal of the St. Regis NY Club management agreement. In addition to the declaratory relief sought, plaintiff seeks unspecified actual damages, punitive damages, and disgorgement of payments under the management and purchase agreements, as well as related agreements. In September 2017, we filed a motion to dismiss the second amended complaint, which the Court granted in part and denied in part in September 2018. In December 2018, the remaining claims were transferred to the U.S. District Court for the Middle District of Florida. On February 21, 2019, the owners’ association filed a complaint against the defendants in the state Supreme Court of New York, New York County, alleging claims for breach of fiduciary duty, unjust enrichment, tortious interference with contract and violation of the Donnelly Act (state antitrust law). The complaint seeks disgorgement of monies received by defendants as a result of the alleged wrongdoing, unspecified actual damages, punitive damages, and treble damages for the alleged Donnelly act violations. We dispute the plaintiff’s material allegations and continue to defend against the action vigorously. Given the inherent uncertainties of litigation, we cannot estimate a range of the potential liability, if any, at this time.

Other

In addition to the above, in 2018 we recorded an accrual of $5 million in connection with an action brought by owners of fractional interests at The Ritz-Carlton, Lake Tahoe, and $2 million related to vacation ownership projects in Europe.

During June 2018, we identified forged and fraudulently induced electronic payment disbursements we made to third parties in an aggregate amount of $10 million resulting from unauthorized third-party access to our email system. Upon detection, we immediately notified law enforcement authorities and relevant financial institutions and commenced a forensic investigation and have recovered $6 million as of December 31, 2018. We expect to recover a portion of the remaining $4 million through applicable insurance coverage. We recorded a loss of $4 million in the Gains and other income, net line of our Income Statement for 2018. Any additional recoveries will be recorded in our results in the future. We have concluded that this event did not involve access to any of our other systems. No other misappropriation of assets was identified during our investigation.

Insurance Recoveries

During September 2017, the Westin St. John Resort Villas, a Legacy-ILG property, sustained damage as a result of Hurricane Irma and remained closed until January 2019. As of December 31, 2018, the property insurance claim receivable related to this event and other 2017 storms was $11 million and is presented within Accounts receivable on our Balance Sheet. This balance is subject to change.

In September 2017, over 20 of our Legacy-MVW properties were impacted by Hurricane Irma and Hurricane Maria and, as a result, as of December 31, 2017, we accrued $1 million for the estimated property damage insurance deductibles and impairment of property and equipment, which was recorded in the Gains and other income, net line on the Income Statement for the year ended December 31, 2017. In 2018, we received $32 million of insurance proceeds related to the settlement of Legacy-MVW business interruption insurance claims arising from Hurricane Irma. These proceeds, and the related deductible of $3 million, were recorded net in the Gains and other income, net line on the Income Statement for the year ended December 31, 2018. Subsequent to the end of 2018, we recorded an additional $9 million of other income relating to the final settlement of these business interruption insurance claims.

During 2016, our Legacy-MVW properties in Hilton Head and Myrtle Beach, South Carolina were temporarily closed as a result of damage from Hurricane Matthew. In 2017, we received $9 million in net insurance proceeds related to the settlement of business interruption insurance claims arising from Hurricane Matthew. These proceeds were recorded in the Gains and other income, net line on the Income Statement for the year ended December 31, 2017.

LEASES

12 Months Ended

Dec. 31, 2018

Leases [Abstract]

LEASES

We have various land, corporate facilities, real estate and equipment operating leases. Our land leases consist of long-term leases for a golf course (term of 30 years) and for land underlying an operating hotel (term of 50 years). Corporate facilities leases are for office space, including our corporate headquarters in Orlando, Florida, and have lease terms that range from nine to 14 years. Other operating leases are primarily for office and retail space, as well as other various equipment supporting our operations, with varying terms and renewal option periods.

The following table presents our future minimum lease obligations under operating leases, including those leases that we assumed in the ILG Acquisition, for which we are the primary obligor as of December 31, 2018:



($ in millions)	Land Leases		Corporate Facilities Leases		Other Operating Leases		Total
2019	$	2	$	12	$	24	$	38
2020	2		12		19		33
2021	2		8		13		23
2022	2		5		10		17
2023	3		5		8		16
Thereafter	50		19		26		95
Total minimum lease payments	$	61	$	61	$	100	$	222

Certain of these leases provide for minimum rental payments and additional rental payments based on our operations of the leased property. The following table details the composition of rent expense associated with operating leases, net of sublease income, for the last three years:



($ in millions)	2018		2017		2016
Minimum rentals	$	16	$	9	$	8
Additional rentals	5		4		4
	$	21	$	13	$	12

SECURITIZED DEBT

12 Months Ended

Dec. 31, 2018

SECURITIZED DEBT

The following table provides detail on our debt associated with vacation ownership notes receivable securitizations, net of unamortized debt issuance costs:



($ in millions)		At December 31, 2018			At December 31, 2017
Vacation ownership notes receivable securitizations, gross⁽¹⁾		$	962		$	845
Unamortized debt issuance costs		(11		)	(10		)
		951			835
Legacy-ILG
	Vacation ownership notes receivable securitizations⁽²⁾	628			—

Warehouse Credit Facility, gross⁽³⁾		116			—
Unamortized debt issuance costs⁽⁴⁾		(1		)	—
		115			—

		$	1,694		$	835

_________________________


⁽¹⁾	Interest rates as of December 31, 2018 range from 2.2% to 6.3%, with a weighted average interest rate of 2.9%.


⁽²⁾	Interest rates as of December 31, 2018 range from 2.3% to 4.0%, with a weighted average interest rate of 2.9%.


⁽³⁾	The effective interest rate as of December 31, 2018 was 3.5%.


⁽⁴⁾	Excludes $1 million of unamortized debt issuance costs as of December 31, 2017, as no cash borrowings were outstanding at that time.

See Footnote 17 “Variable Interest Entities” for a discussion of the collateral for the non-recourse debt associated with the securitized vacation ownership notes receivable and our non-recourse warehouse credit facility (the “Warehouse Credit Facility”). The debt associated with our vacation ownership notes receivable securitizations and our Warehouse Credit Facility is non-recourse to us.

Vacation Ownership Notes Receivable Securitizations

During the second quarter of 2018, we completed the securitization of a pool of $436 million of vacation ownership notes receivable. In connection with the securitization, investors purchased in a private placement $423 million in vacation ownership loan backed notes from the MVW Owner Trust 2018-1 (the “2018-1 Trust”). Three classes of vacation ownership loan backed notes were issued by the 2018-1 Trust: $316 million of Class A Notes, $65 million of Class B Notes and $42 million of Class C Notes. The Class A Notes have an interest rate of 3.5 percent, the Class B Notes have an interest rate of 3.6 percent and Class C Notes have an interest rate of 3.9 percent, for an overall weighted average interest rate of 3.5 percent.

In August 2018, prior to the ILG Acquisition, Legacy-ILG completed a securitization of a pool of $293 million of vacation ownership notes receivable. Approximately $221 million of vacation ownership notes receivable were purchased prior to the ILG Acquisition by VSE 2018-A VOI Mortgage LLC (the “2018-A Trust”). During the fourth quarter of 2018, the 2018-A Trust purchased $59 million of the remaining vacation ownership notes receivable and $58 million was released from restricted cash. As of December 31, 2018, the 2018-A Trust held $13 million of the proceeds, all of which was released when the remaining vacation ownership notes receivable were purchased in January 2019. In connection with the securitization, investors purchased in a private placement $287 million in vacation ownership loan backed notes from the 2018-A Trust. Three classes of vacation ownership loan backed notes were issued by the 2018-A Trust: $209 million of Class A Notes, $49 million of Class B Notes and $29 million of Class C Notes. The Class A Notes have an interest rate of 3.6 percent, the Class B Notes have an interest rate of 3.7 percent and Class C Notes have an interest rate of 4.0 percent, for an overall weighted average interest rate of 3.63 percent.

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 2018, and as of December 31, 2018, no securitized vacation ownership notes receivable pools were out of compliance with their respective established parameters. As of December 31, 2018, we had 11 securitized vacation ownership notes receivable pools outstanding.

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 below due to prepayments by the vacation ownership notes receivable obligors. The following table shows scheduled future principal payments for our vacation ownership notes receivable securitizations as of December 31, 2018:



	Vacation Ownership Notes Receivable Securitizations				Warehouse Credit Facility		Total
($ in millions)	Legacy-MVW		Legacy-ILG		Warehouse Credit Facility		Total
Payments Year
2019	$	98	$	155	$	6	$	259
2020	102		110		7		219
2021	105		82		103		290
2022	107		65		—		172
2023	106		55		—		161
Thereafter	444		161		—		605
	$	962	$	628	$	116	$	1,706

Warehouse Credit Facility

The Warehouse Credit Facility, which has a borrowing capacity of $250 million, allows for the securitization of Legacy-MVW vacation ownership notes receivable on a revolving non-recourse basis, through March 13, 2020. If the Warehouse Credit Facility is not renewed prior to termination, any amounts outstanding thereunder would become due and payable 13 months after termination, at which time all principal and interest collected with respect to the vacation ownership notes receivable held in the Warehouse Credit Facility would be redirected to the lenders to pay down the outstanding debt under the facility. The advance rate for vacation ownership notes receivable securitized using the Warehouse Credit Facility varies based on the characteristics of the securitized vacation ownership notes receivable. We also pay unused facility and other fees under the Warehouse Credit Facility. We generally expect to securitize our vacation ownership notes receivable, including any vacation ownership notes receivable held in the Warehouse Credit Facility, in the ABS market once or twice per year.

During the fourth quarter of 2018, we securitized vacation ownership notes receivable under our Warehouse Credit Facility. The carrying amount of the vacation ownership notes receivable securitized was $137 million. The advance rate was 85 percent, which resulted in gross proceeds of $116 million. Net proceeds were $115 million due to the funding of reserve accounts in the amount of $1 million.

Subsequent to the end of 2018, we securitized vacation ownership notes receivable under our Warehouse Credit Facility. The carrying amount of the vacation ownership notes receivable securitized was $85 million. The advance rate was 85 percent, which resulted in gross proceeds of $73 million. Net proceeds were $72 million due to the funding of reserve accounts of less than $1 million.

DEBT

12 Months Ended

Dec. 31, 2018

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

DEBT

The following table provides detail on our debt balances, net of unamortized debt discount and issuance costs:



($ in millions)		At December 31, 2018			At December 31, 2017
Senior Notes
	Exchange Notes⁽¹⁾	$	89		$	—
	Unamortized debt issuance costs	(1		)	—
		88			—

	Senior Unsecured Notes⁽²⁾	750			—
	Unamortized debt issuance costs	(9		)	—
		741			—

	IAC Notes⁽³⁾	141			—

Corporate Credit Facility
	Term Loan	900			—
	Unamortized debt discount and issuance costs	(12		)	—
		888			—

Convertible notes, gross⁽⁴⁾		230			230
Unamortized debt discount and issuance costs		(31		)	(38		)
		199			192

Non-Interest bearing note payable		31			64
Unamortized debt discount⁽⁵⁾		(1		)	(3		)
		30			61

Capital leases		17			7

Other⁽⁶⁾		20			—

		$	2,124		$	260

_________________________


⁽¹⁾	Interest rate of 5.625%, maturing on April 15, 2023


⁽²⁾	Interest rate of 6.500%, maturing on September 15, 2026


⁽³⁾	Interest rate of 5.625%, maturing on April 15, 2023


⁽⁴⁾	Effective interest rate as of December 31, 2018 was 4.7%


⁽⁵⁾	Debt discount based on imputed interest rate of 6.0%


⁽⁶⁾	Non-recourse

The following table shows scheduled future principal payments for our debt as of December 31, 2018:



($ in millions)	Exchange Notes		Senior Unsecured Notes		IAC Notes		Term Loan		Convertible Notes		Non-Interest Bearing Note Payable		Capital Leases		Other		Total
Payments Year
2019	$	—	$	—	$	—	$	9	$	—	$	31	$	—	$	1	$	41
2020	—		—		—		9		—		—		17		2		28
2021	—		—		—		9		—		—		—		2		11
2022	—		—		—		9		230		—		—		2		241
2023	89		—		141		8		—		—		—		2		240
Thereafter	—		750		—		856		—		—		—		11		1,617
	$	89	$	750	$	141	$	900	$	230	$	31	$	17	$	20	$	2,178

IAC Notes and Exchange Notes

In connection with the ILG Acquisition, we assumed $350 million in aggregate principal amount of outstanding 5.625% Senior Unsecured Notes due 2023 (“IAC Notes”). The IAC Notes were issued under and are governed by the terms of an indenture, dated April 10, 2015, with HSBC Bank USA, National Association, as trustee.

During the third quarter of 2018, Marriott Ownership Resorts Inc. (“MORI”), a wholly owned subsidiary of MVW, offered to exchange any and all of the IAC Notes for 5.625% Senior Unsecured Notes due 2023 (“Exchange Notes”) and cash (collectively the “Exchange Offer”). On September 4, 2018, we settled the Exchange Offer and issued the Exchange Notes pursuant to an indenture dated September 4, 2018 with HSBC Bank USA, National Association, as trustee. We exchanged $88 million of the IAC Notes for $88 million of Exchange Notes, plus approximately $1 million in cash.

In addition, on September 14, 2018, we announced an offer to purchase any and all of the outstanding IAC Notes remaining after the settlement of the Exchange Offer for cash at a price equal to 101% of the principal amount of the IAC Notes validly tendered and not validly withdrawn, plus accrued and unpaid interest (the “Offer”). The Offer expired on October 15, 2018, at which time, $122 million in aggregate principal IAC Notes had been validly tendered. During the fourth quarter of 2018, the tendered IAC Notes were repurchased for $123 million using cash on hand, leaving $140 million in aggregate principal amounts of the IAC Notes remaining outstanding. We may redeem some or all of the outstanding IAC Notes prior to maturity under the terms provided in the indenture.

Senior Unsecured Notes due 2026

In the third quarter of 2018, we issued $750 million aggregate principal amount of 6.500% senior unsecured notes due 2026 (“Senior Unsecured Notes”) under an indenture dated August 23, 2018 with The Bank of New York Mellon Trust, as trustee. We received net proceeds of $742 million from the offering, after deducting the underwriting discount and estimated expenses. We used these proceeds, together with the borrowings under the Term Loan (defined below) primarily to finance the cash component of the consideration paid to ILG shareholders, certain fees and expenses we incurred in connection with the ILG Acquisition and working capital. We may redeem some or all of the Senior Unsecured Notes prior to maturity under the terms provided in the indenture.

Corporate Credit Facility

During the third quarter of 2018, we extinguished our $250 million revolving credit facility (the “Previous Revolving Corporate Credit Facility”) and entered into a new credit facility (“Corporate Credit Facility”), including a $900 million term loan facility (“Term Loan”), which matures on August 31, 2025, and a Revolving Corporate Credit Facility with a borrowing capacity of $600 million, including a letter of credit sub-facility of $75 million, that terminates on August 31, 2023. All outstanding cash borrowings under our Previous Revolving Corporate Credit Facility were repaid in full.

The Revolving Corporate Credit Facility will provide support for our business, including ongoing liquidity and letters of credit. The Term Loan bears interest at a floating rate plus an applicable margin that varies from 1.25 percent to 2.25 percent depending on the type of loan and our credit rating. Borrowings under the Revolving Corporate Credit Facility generally bear interest at a floating rate plus an applicable margin that varies from 0.50 percent to 2.75 percent depending on the type of loan and our credit rating. In addition, we pay a commitment fee on the unused availability under the Revolving Corporate Credit Facility at a rate that varies from 20 basis points per annum to 40 basis points per annum, also depending on our credit rating.

No cash borrowings were outstanding as of December 31, 2018 under our Revolving Corporate Credit Facility. Any amounts borrowed under that facility, as well as obligations with respect to letters of credit issued pursuant to that facility, are secured by a perfected first priority security interest in substantially all of the assets of the borrower under, and guarantors of, that facility (which include Marriott Vacations Worldwide and each of our direct and indirect, existing and future, domestic subsidiaries, excluding certain bankruptcy remote special purpose subsidiaries), in each case including inventory, subject to certain exceptions. As of December 31, 2018, we were in compliance with the applicable financial and operating covenants under the Corporate Credit Facility.

Subsequent to the end of 2018, we made borrowings totaling $85 million under our Revolving Corporate Credit Facility to facilitate the funding of our short-term working capital needs, of which $50 million has been repaid.

ILG Revolving Credit Facility

In connection with the ILG Acquisition, we acquired the outstanding balance on a revolving credit facility (the “ILG Revolving Credit Facility”). The ILG Revolving Credit Facility was extinguished and all amounts outstanding were repaid in full subsequent to the completion of the ILG Acquisition.

Convertible Notes

During the 2017 third quarter, we issued $230 million aggregate principal amount of Convertible Notes that bear interest at a rate of 1.50 percent, payable in cash semi-annually on March 15 and September 15 of each year beginning on March 15, 2018. The Convertible Notes mature on September 15, 2022, unless repurchased or converted in accordance with their terms prior to that date. On or after June 15, 2022, and until the close of business on the second scheduled trading day immediately preceding the maturity date, holders may convert their Convertible Notes at their option.

The Convertible Notes were convertible at an initial rate of 6.7482 shares of common stock per $1,000 principal amount of Convertible Notes (equivalent to an initial conversion price of approximately $148.19 per share of our common stock). The conversion rate is subject to adjustment for certain events as described in the indenture governing the notes and was subject to adjustment during the fourth quarter of 2018 to 6.7685 shares of common stock per $1,000 principal amount of Convertible Notes (equivalent to a conversion price of approximately $147.74 per share of our common stock) when we declared a quarterly dividend of $0.45 per share, which was greater than the quarterly dividend at the time of the issuance of the Convertible Notes. 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. It is our intent to settle conversions of the Convertible Notes through combination settlement, which contemplates repayment in cash of the principal amount and repayment in shares of our common stock of any excess of the conversion value over the principal amount.

Holders may convert their Convertible Notes prior to June 15, 2022 only under certain circumstances. We may not redeem the Convertible Notes prior to their maturity date. If we undergo a fundamental change, as described in the indenture, subject to certain conditions, holders may require us to repurchase for cash all or any portion of their Convertible Notes, at a repurchase price equal to 100 percent of the principal amount of the Convertible Notes to be repurchased, plus accrued and unpaid interest to, but excluding, the repurchase date. If certain fundamental changes referred to in the indenture as make-whole fundamental changes occur, the conversion rate applicable to the Convertible Notes may increase.

The Convertible Notes are our general senior unsecured obligations, ranking senior in right of payment to any future debt that is expressly subordinated in right of payment to the Convertible Notes and equally in right of payment with all of our existing and future liabilities that are not so subordinated. The Convertible Notes are effectively subordinated to all of our existing and future secured debt to the extent of the value of the assets securing such debt. The Convertible Notes are structurally subordinated to all of the existing and future liabilities and obligations of our subsidiaries. The Convertible Notes are not guaranteed by any of our subsidiaries.

There are no financial or operating covenants related to the Convertible Notes. The indenture contains customary events of default with respect to the Convertible Notes and provides that upon the occurrence and continuation of certain events of default, the trustee or the holders of at least 25 percent in aggregate principal amount of the Convertible Notes then outstanding, may declare all principal of, and accrued and any unpaid interest on, the Convertible Notes then outstanding to be immediately due and payable. In case of certain events of bankruptcy or insolvency involving the Company or certain of its subsidiaries, all of the principal of and accrued and unpaid interest on the Convertible Notes will automatically become immediately due and payable.

In accounting for the issuance of the Convertible Notes, we separated the Convertible Notes into liability and equity components, and allocated $197 million to the liability component and $33 million to the equity component. The resulting debt discount is amortized as interest expense. As of December 31, 2018, the remaining debt discount amortization period was 3.7 years.

The following table shows the net carrying value of the Convertible Notes:



($ in millions)	At December 31, 2018			At December 31, 2017
Liability component
Principal amount	$	230		$	230
Unamortized debt discount	(26		)	(32		)
Unamortized debt issuance costs	(5		)	(6		)
Net carrying amount of the liability component	$	199		$	192

Carrying amount of equity component, net of issuance costs	$	33		$	33

The following table shows interest expense information related to the Convertible Notes:



($ in millions)	2018		2017
Contractual interest expense	$	3	$	1
Amortization of debt discount	6		2
Amortization of debt issuance costs	1		—
	$	10	$	3

Convertible Note Hedges and Warrants

In connection with the offering of the Convertible Notes, we entered into privately-negotiated convertible note hedge transactions with respect to our common stock (“Convertible Note Hedges”), covering a total of approximately 1.55 million shares of our common stock. The Convertible Note Hedges have a strike price that initially corresponds to the initial conversion price of the Convertible Notes, are subject to anti-dilution provisions substantially similar to those of the Convertible Notes, are exercisable by us upon any conversion under the Convertible Notes, and expire when the Convertible Notes mature.

Concurrently with the entry into the Convertible Note Hedges, we separately entered into privately-negotiated warrant transactions (the “Warrants”), whereby we sold to the counterparties to the Convertible Note Hedges warrants to acquire, collectively, subject to anti-dilution adjustments, approximately 1.55 million shares of our common stock at an initial strike price of $176.68 per share, which was subject to adjustment during the fourth quarter of 2018 to $176.15 per share when we declared a quarterly dividend of $0.45 per share.

Taken together, the Convertible Note Hedges and the Warrants are generally expected to reduce the potential dilution to our common stock (or, in the event the conversion of the Convertible Notes is settled in cash, to reduce our cash payment obligation) in the event that at the time of conversion our stock price exceeds the conversion price under the Convertible Notes and to effectively increase the overall conversion price from $148.19 (or a conversion premium of 30 percent) to $176.68 per share (or a conversion premium of 55 percent). The Warrants will expire in ratable portions on a series of expiration dates commencing on December 15, 2022.

The Convertible Notes, the Convertible Note Hedges and the Warrants are transactions that are separate from each other. Holders of any such instrument have no rights with respect to the other instruments. As of December 31, 2018, no Convertible Note Hedges or Warrants have been exercised.

Non-Interest Bearing Note Payable

During the 2017 second quarter, we issued an unsecured non-interest bearing note payable in connection with the acquisition of vacation ownership units located on the Big Island of Hawaii. Per the terms of the note payable, the first payment of $33 million was paid during the second quarter of 2018 and the remaining balance of $31 million is due in the second quarter of 2019. See Footnote 3 “Acquisitions and Dispositions” for additional information regarding this transaction.

Capital Leases

In 2018 we entered into a capital lease arrangement for ancillary and operations space in connection with the commitment to purchase an operating property located in San Diego, California. See Footnote 11 “Contingencies and Commitments” for additional information regarding this transaction.

In 2016 we entered into a capital lease arrangement for ancillary and operations space in connection with the commitment to purchase an operating property located in New York, New York. See Footnote 11 “Contingencies and Commitments” for additional information regarding this transaction.

Restrictions

Amounts borrowed under the Corporate Credit Facility, as well as obligations with respect to letters of credit issued pursuant to that 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 MVW and certain of our direct and indirect, existing and future, domestic subsidiaries, excluding certain bankruptcy remote special purpose subsidiaries), in each case including inventory, subject to certain exceptions. In addition, the IAC Notes are guaranteed by Marriott Vacations Worldwide Corporation, ILG and certain other subsidiaries for which 100% of the voting securities are owned directly or indirectly by ILG. See Footnote 22 “Supplemental Guarantor Information” for additional information. The Exchange Notes are guaranteed by Marriott Vacations Worldwide Corporation and its domestic subsidiaries that guarantee the Corporate Credit Facility.

SHAREHOLDERS' EQUITY

12 Months Ended

Dec. 31, 2018

Equity [Abstract]

SHAREHOLDERS' EQUITY

SHAREHOLDERS’ EQUITY

Marriott Vacations Worldwide has 100,000,000 authorized shares of common stock, par value of $0.01 per share. At December 31, 2018, there were 57,626,462 shares of Marriott Vacations Worldwide common stock issued, of which 45,992,731 shares were outstanding and 11,633,731 shares were held as treasury stock. At December 31, 2017, there were 36,861,843 shares of Marriott Vacations Worldwide common stock issued, of which 26,461,296 shares were outstanding and 10,400,547 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 December 31, 2018 or December 31, 2017.

Share Repurchase Program

The following table summarizes share repurchase activity under our current share repurchase program:



($ in millions, except per share amounts)	Number of Shares Repurchased	Cost of Shares Repurchased		Average Price Paid per Share
As of December 31, 2017	10,440,505	$	697	$	66.73
For the year ended December 31, 2018	1,247,269	96		77.16
As of December 31, 2018	11,687,774	$	793	$	67.85

On December 6, 2018, our Board of Directors authorized the extension of the duration of our existing share repurchase program to March 31, 2019, as well as the repurchase of up to 3.0 million additional shares of our common stock through December 31, 2019. As of December 31, 2018, our Board of Directors had authorized the repurchase of an aggregate of up to 14.9 million shares of our common stock under the share repurchase program since the initiation of the program in October 2013. Share repurchases may be made through open market purchases, privately negotiated transactions, block transactions, tender offers, accelerated share repurchase agreements or otherwise. The specific timing, amount and other terms of the repurchases will depend on market conditions, corporate and regulatory requirements and other factors. Acquired shares of our common stock are held as treasury shares carried at cost in our Financial Statements. In connection with the repurchase program, we are authorized to adopt one or more trading plans pursuant to the provisions of Rule 10b5-1 under the Securities Exchange Act of 1934, as amended.

As of December 31, 2018, 3.2 million shares remained available for repurchase under the authorization approved by our Board of Directors. The authorization for the share repurchase program may be suspended, terminated, increased or decreased by our Board of Directors at any time without prior notice.

Dividends

We declared cash dividends to holders of common stock during the year ended December 31, 2018 as follows:



Declaration Date	Shareholder Record Date	Distribution Date	Dividend per Share
February 16, 2018	March 1, 2018	March 15, 2018	$0.40
May 14, 2018	May 28, 2018	June 11, 2018	$0.40
September 6, 2018	September 20, 2018	October 4, 2018	$0.40
December 6, 2018	December 20, 2018	January 3, 2019	$0.45

Any future dividend payments will be subject to Board approval, and there can be no assurance that we will pay dividends in the future.

Noncontrolling Interests

Property Owners’ Associations

As part of the ILG Acquisition we established a noncontrolling interest in property owners’ associations that Legacy-ILG consolidates under the voting interest model, which represents the portion of the property owners’ associations related to individual or third-party VOI owners. As of December 31, 2018, this noncontrolling interest amounts to $8 million and is included on our Balance Sheet as a component of equity.

SHARE-BASED COMPENSATION

12 Months Ended

Dec. 31, 2018

SHARE-BASED COMPENSATION

We maintain the MVW Stock Plan for the benefit of our officers, directors and employees. Under the MVW Stock Plan, we award: (1) RSUs of our common stock, (2) SARs relating to our common stock and (3) stock options to purchase our common stock. A total of 6 million shares are authorized for issuance pursuant to grants under the MVW Stock Plan. As of December 31, 2018, 1 million shares were available for grants under the MVW Stock Plan.

As part of the ILG Acquisition, we assumed the Interval Leisure Group, Inc. 2013 Stock and Incentive Plan (the “ILG Stock Plan”) and equity based awards outstanding under the ILG Stock Plan. On the Acquisition Date, each outstanding ILG equity based award, whether vested or unvested, was converted into (1) an equity-based award with respect to MVW’s common stock on the same terms and conditions (including time-based vesting conditions, but excluding performance conditions, if applicable) applicable to the equity-based award under the ILG Stock Plan (“ILG RSUs”), and (2) a cash-based award on the same terms and conditions (including time-based vesting conditions, but excluding performance conditions, if applicable) applicable to the equity-based award under the ILG Stock Plan (“ILG Cash-Based Awards”). The number of shares of MVW common stock subject to each ILG RSU was determined by multiplying the number of shares of ILG common stock subject to the original ILG equity-based award (that each holder would have been eligible to receive based on deemed achievement of performance at target level immediately prior to the ILG Acquisition, if applicable) (“award number”) by 0.165, rounded up or down to the nearest whole share, as applicable. The amount of the cash-based award was determined by multiplying $14.75 by the award number. ILG equity-based awards were converted into 0.4 million MVW RSUs and $39 million of MVW Cash-Based Awards. The obligation for these cash-settled awards is classified as a liability on our Balance Sheet.

The converted awards (both MVW RSUs and MVW Cash-Based Awards) remain subject to graded vesting (i.e., portions of the award vest at different times during the vesting period) or to cliff vesting (i.e., all awards vest at the end of the vesting period), subject to a prorated adjustment for employees who are terminated under certain circumstances or who retire. The ILG RSUs had a weighted average fair value of $118.03 on the Acquisition Date. As of December 31, 2018, 1 million shares were available for grants under the ILG Stock Plan to Legacy-ILG employees.

The following table details our share-based compensation expense related to award grants to our officers, directors and employees:



($ in millions)	2018		2017		2016
Service-based RSUs	$	12	$	10	$	9
Performance-based RSUs	7		4		3
ILG Acquisition Converted RSUs⁽¹⁾	13		—		—
	32		14		12
SARs	3		2		2
Stock options	—		—		—
	$	35	$	16	$	14

_________________________


⁽¹⁾	Includes $6 million of share-based compensation expense related to the ILG Cash-Based Awards discussed above.

The following table details our deferred compensation costs related to unvested awards:



($ in millions)	At Year-End 2018⁽¹⁾		At Year-End 2017
Service-based RSUs	$	16	$	9
Performance-based RSUs	7		5
ILG Acquisition Converted RSUs	15		—
	38		14
SARs	1		1
Stock options	—		—
	$	39	$	15

_________________________


⁽¹⁾	As of December 31, 2018, the weighted average remaining term for RSU grants outstanding at year-end 2018 was one to two years and we expect that deferred compensation expense will be recognized over a weighted average period of one to three years.

Restricted Stock Units

We have issued RSUs that vest over time, which we refer to as service-based RSUs, and RSUs that vest based on performance with respect to established criteria, which we refer to as performance-based RSUs.

The following table shows the changes in our outstanding RSUs and the associated weighted average grant-date fair values:



	2018
	Service-based			Performance-based			Total
	Number of RSUs	Weighted Average Grant-Date Fair Value Per RSU		Number of RSUs	Weighted Average Grant-Date Fair Value Per RSU		Number of RSUs	Weighted Average Grant-Date Fair Value Per RSU
Outstanding at year-end 2017	471,007	$	59.49	311,512	$	72.89	782,519	$	64.83
Granted	188,622	$	112.93	71,902	$	138.68	260,524	$	120.04
Converted from ILG Acquisition	447,026	$	117.92	—	$	—	447,026	$	117.92
Distributed	(341,520)	$	97.86	(35,067)	$	75.20	(376,587)	$	95.75
Forfeited	(11,554)	$	91.00	(41,267)	$	74.96	(52,821)	$	78.47
Outstanding at year-end 2018	753,581	$	89.66	307,080	$	87.75	1,060,661	$	89.11

The weighted average grant-date fair value per RSU granted in 2017 and 2016 was $64.83 and $53.56, respectively. The fair value of the RSUs which vested in 2018 was $48 million, and included $24 million related to RSUs converted in the ILG Acquisition. The fair value of the RSUs which vested in 2017 and 2016 was $18 million and $13 million, respectively.

Stock Appreciation Rights

The following table shows the changes in our outstanding SARs and the associated weighted average exercise prices:



	2018
	Number of SARs	Weighted Average Exercise Price Per SAR
Outstanding at year-end 2017	658,453	$	47.63
Granted	56,649	143.38
Exercised	(17,924)	26.30
Forfeited or expired	—	—
Outstanding at year-end 2018⁽¹⁾⁽²⁾	697,178	$	55.96

_________________________


⁽¹⁾	As of December 31, 2018, outstanding SARs had a total intrinsic value of $17 million and a weighted average remaining term of 5 years.


⁽²⁾	As of December 31, 2018, 497,243 SARs with a weighted average exercise price of $39.43, an aggregate intrinsic value of $16 million and a weighted average remaining contractual term of 4 years were exercisable.

The weighted average grant-date fair value per SAR granted in 2018, 2017 and 2016 was $44.75, $27.63 and $16.12, respectively. The intrinsic value of SARs which vested in 2018, 2017 and 2016, was less than $1 million, $6 million and $1 million, respectively. The aggregate intrinsic value of SARs which were exercised in 2018, 2017 and 2016 was $2 million, $19 million and $6 million, respectively.

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 from our stock price. The average expected life was calculated using the simplified method, as we have insufficient historical information to provide a basis for estimate. 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 in 2018, 2017 and 2016:



	2018	2017	2016
Expected volatility	30.78%	30.41%	31.60%
Dividend yield	1.11%	1.44%	1.96%
Risk-free rate	2.68%	2.06%	1.41%
Expected term (in years)	6.25	6.25	6.25

Stock Options

We may grant non-qualified stock options to employees and non-employee directors at exercise prices or strike prices equal to the market price of our common stock on the date of grant.

There were no outstanding or exercisable stock options held by our employees at year-end 2018 or 2017, and no stock options were granted to our employees in 2018, 2017 or 2016. At December 31, 2018, approximately 5,000 stock options were outstanding and exercisable with a weighted average exercise price per option of $18.49 and a weighted average remaining life of approximately two years.

Employee Stock Purchase Plan

During 2015, the Board of Directors adopted, and our shareholders subsequently approved, the Marriott Vacations Worldwide Corporation Employee Stock Purchase Plan (the “ESPP”), which became effective during 2015. A total of 500,000 shares of common stock may be purchased under the ESPP. The ESPP allows eligible employees to purchase shares of our common stock at a price per share not less than 95% of the fair market value per share of common stock on the purchase date, up to a maximum threshold established by the plan administrator for the offering period.

Legacy-ILG Deferred Compensation Plan

Certain deferred share units (“DSUs”) of ILG common stock were outstanding on the Acquisition Date under the Interval Leisure Group, Inc. Deferred Compensation Plan for Non-Employee Directors. On the Acquisition Date, these DSUs were converted to equity-based awards with respect to MVW’s common stock and cash-based awards, resulting in 12,265 DSUs (“ILG DSUs”) and $1 million of cash-based awards. The ILG DSUs had a weighted average fair value of $114.31 on the Acquisition Date. The services associated with the ILG DSUs were completed as of the Acquisition Date, resulting in no deferred compensation costs. The total obligation for the ILG DSUs of $2 million as of December 31, 2018 is classified in Payroll and benefits liability on our Balance Sheet.

VARIABLE INTEREST ENTITIES

12 Months Ended

Dec. 31, 2018

Organization, Consolidation and Presentation of Financial Statements [Abstract]

VARIABLE INTEREST ENTITIES

Variable Interest Entities Related to Our Vacation Ownership Notes Receivable Securitizations

We periodically securitize, without recourse, through bankruptcy remote special purpose entities, notes receivable originated in connection with the sale of vacation ownership products. These vacation ownership notes receivable securitizations provide funding for us and transfer the economic risks and substantially all the benefits of the consumer loans we originate to third parties. In a vacation ownership notes receivable securitization, various classes of debt securities issued by a special purpose entity are generally collateralized by a single tranche of transferred assets, which consist of vacation ownership notes receivable. With each vacation ownership notes receivable securitization, we may retain a portion of the securities, subordinated tranches, interest-only strips, subordinated interests in accrued interest and fees on the securitized vacation ownership notes receivable or, in some cases, overcollateralization and cash reserve accounts.

We created these bankruptcy remote special purpose entities to serve as a mechanism for holding assets and related liabilities, and the entities have no equity investment at risk, making them variable interest entities. We continue to service the vacation ownership notes receivable, transfer all proceeds collected to these special purpose entities, and retain rights to receive benefits that are potentially significant to the entities. Accordingly, we concluded that we are the entities’ primary beneficiary and, therefore, consolidate them. There is no noncontrolling interest balance related to these entities and the creditors of these entities do not have general recourse to us.

As part of the ILG Acquisition, we acquired the variable interests in the entities associated with ILG’s outstanding vacation ownership notes receivable securitization transactions. As these vacation ownership notes receivable securitizations are similar in nature to the Legacy-MVW vacation ownership notes receivable securitizations they have been aggregated for disclosure purposes.

The following table shows consolidated assets, which are collateral for the obligations of these variable interest entities, and consolidated liabilities included on our Balance Sheet at December 31, 2018:



($ in millions)	Vacation Ownership Notes Receivable Securitizations		Warehouse Credit Facility		Total
Consolidated Assets
Vacation ownership notes receivable, net of reserves	$	1,501	$	126	$	1,627
Interest receivable	10		1		11
Restricted cash	66		3		69
Total	$	1,577	$	130	$	1,707
Consolidated Liabilities
Interest payable	$	2	$	—	$	2
Securitized debt	1,590		116		1,706
Total	$	1,592	$	116	$	1,708

The following table shows the interest income and expense recognized as a result of our involvement with these variable interest entities during 2018:



($ in millions)	Vacation Ownership Notes Receivable Securitizations		Warehouse Credit Facility		Total
Interest income	$	149	$	2	$	151
Interest expense to investors	$	34	$	2	$	36
Debt issuance cost amortization	$	4	$	1	$	5
Administrative expenses	$	1	$	—	$	1

The following table shows cash flows between us and the vacation ownership notes receivable securitization variable interest entities:



($ in millions)	2018			2017
Cash Inflows
Net proceeds from vacation ownership notes receivable securitizations	$	419		$	346
Principal receipts	322			229
Interest receipts	145			100
Reserve release⁽¹⁾	168			1
Total	1,054			676
Cash Outflows
Principal to investors	(329		)	(215		)
Voluntary repurchases of defaulted vacation ownership notes receivable, net of substitutions	(31		)	(28		)
Voluntary clean-up call	(22		)	—
Interest to investors	(31		)	(19		)
Funding of restricted cash⁽²⁾	(110		)	(2		)
Total	(523		)	(264		)
Net Cash Flows	$	531		$	412

_________________________

⁽¹⁾

Includes the release of $106 million related to the securitization transaction completed during the second quarter of 2018 and $58 million related to the Legacy-ILG securitization completed prior to the ILG Acquisition. The funds were released as the remaining vacation ownership notes receivable were purchased by 2018-1 Trust and the 2018-A Trust. Refer to Footnote 13 “Securitized Debt” for a discussion of the terms of the securitization transactions and the purchase of additional vacation ownership notes receivable subsequent to December 31, 2018.


⁽²⁾	Includes $106 million of the proceeds from the securitization transaction completed during the second quarter of 2018, which were released when the remaining vacation ownership notes receivable were purchased by the 2018-1 Trust during the third quarter of 2018.

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. We made voluntary repurchases of defaulted vacation ownership notes receivable, net of substitutions, of $31 million during 2018, $28 million during 2017 and $30 million during 2016. We also made voluntary repurchases, net of substitutions, of $39 million, $57 million and $144 million of other non-defaulted vacation ownership notes receivable during 2018, 2017 and 2016, respectively, to retire previous vacation ownership notes receivable securitizations. Our maximum exposure to 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 on the outstanding vacation ownership notes receivable), plus cash reserves and any residual interest in future cash flows from collateral.

The following table shows cash flows between us and the Warehouse Credit Facility variable interest entity:



($ in millions)	2018			2017
Cash Inflows
Proceeds from vacation ownership notes receivable securitizations	$	116		$	50
Principal receipts	1			2
Interest receipts	1			2
Total	118			54
Cash Outflows
Principal to investors	—			(1		)
Repayment of Warehouse Credit Facility	—			(49		)
Interest to investors	(1		)	(2		)
Funding of restricted cash	(1		)	—
Total	(2		)	(52		)
Net Cash Flows	$	116		$	2

Other Variable Interest Entities

We have a commitment to purchase an operating property located in San Francisco, California. Refer to Footnote 11 “Contingencies and Commitments” for additional information on the commitment. We are required to purchase the operating property from the third party developer unless the developer has sold the property to another party. The operating property is held by a variable interest entity for which we are not the primary beneficiary as we cannot prevent the variable interest entity from selling the operating property at a higher price. Accordingly, we have not consolidated the variable interest entity. As of December 31, 2018, our Balance Sheet reflected $10 million in Property and equipment related to a capital lease and leasehold improvements and $9 million in Debt related to the capital lease liability for ancillary and operations space we lease from the variable interest entity. In addition, a note receivable of less than $1 million is included in the Accounts receivable line. We believe that our maximum exposure to loss as a result of our involvement with this variable interest entity is $1 million as of December 31, 2018.

We have a commitment to purchase an operating property located in New York, New York, that we currently manage as Marriott Vacation Club Pulse, New York City. Refer to Footnote 11 “Contingencies and Commitments” for additional information on the commitment. We are required to purchase the completed property from the third party developer unless the developer has sold the property to another party. The property is held by a variable interest entity for which we are not the primary beneficiary as we cannot prevent the variable interest entity from selling the property at a higher price. Accordingly, we have not consolidated the variable interest entity. As of December 31, 2018, our Balance Sheet reflected $8 million in Property and equipment related to a capital lease and leasehold improvements and $7 million in Debt related to the capital lease liability for ancillary and operations space we lease from the variable interest entity. In addition, a note receivable of less than $1 million is included in the Accounts receivable line on the Balance Sheet as of December 31, 2018. We believe that our maximum exposure to loss as a result of our involvement with this variable interest entity is $1 million as of December 31, 2018.

Pursuant to a commitment to repurchase an operating property located in Marco Island, Florida that was previously sold to a third-party developer, we acquired 36 completed vacation ownership units during 2017, 20 completed vacation ownership units during the first quarter of 2018, and the remaining 92 completed vacation ownership units during the fourth quarter of 2018. See Footnote 2 “Acquisitions and Dispositions” for additional information on these transactions. The developer was a variable interest entity for which we were not the primary beneficiary as we could not prevent the variable interest entity from selling the property at a higher price. Accordingly, we did not consolidate the variable interest entity. As of December 31, 2018, our purchase commitment related to this operating property was fulfilled and, as such, we no longer retain a variable interest in the entity.

BUSINESS SEGMENTS

12 Months Ended

Dec. 31, 2018

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 reportable business segments:

•

Vacation Ownership, which as of December 31, 2018, had more than 100 resorts and over 660,000 owners and members of a diverse portfolio that includes seven vacation ownership brands licensed under exclusive, long-term relationships with Marriott International and Hyatt Hotels Corporation. 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, Westin, and Hyatt Residence Club brands, as well as under Marriott Vacation Club Pulse, an extension to the Marriott Vacation Club brand. We are also the exclusive worldwide developer, marketer and seller of vacation ownership and related products under The Ritz-Carlton Destination Club brand, we have the non-exclusive right to develop, market and sell whole ownership residential products under The Ritz-Carlton Residences brand, and we have a license to use the St. Regis brand for specified fractional ownership resorts.

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, which, as of December 31, 2018, includes exchange networks and membership programs comprised of more than 3,200 resorts in over 80 nations and nearly two million members, as well as management of over 180 other resorts and lodging properties. We provide these services through a variety of brands including Interval International, Trading Places International, Vacation Resorts International, VRI Europe, Aqua-Aston and Great Destinations. Exchange & Third-Party Management revenue generally is fee-based and derived from membership, exchange and rental transactions, property and 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, 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 property owners’ associations consolidated under the voting interest model, as our CODM does not use this information to make operating segment resource allocations. Prior year segment information has been reclassified to conform to the current reportable segment presentation.

Our CODM uses Adjusted EBITDA to evaluate the profitability of our operating segments, and the components of net income attributable to common shareholders excluded from Adjusted EBITDA are not separately evaluated. Adjusted EBITDA is defined as net income attributable to common shareholders, before interest expense (excluding consumer financing interest expense), income taxes, depreciation and amortization, excluding share-based compensation expense and adjusted for certain items that affect the comparability or our operating performance. Our reconciliation of the aggregate amount of Adjusted EBITDA for our reportable segments to consolidated net income attributable to common shareholders is presented below.

Revenues



($ in millions)	2018		2017		2016
Vacation Ownership	$	2,803	$	2,183	$	2,000
Exchange & Third-Party Management	161		—		—
Total segment revenues	2,964		2,183		2,000
Corporate and other	4		—		—
	$	2,968	$	2,183	$	2,000

Adjusted EBITDA and Reconciliation to Net Income Attributable to Common Shareholders



($ in millions)	2018			2017			2016
Adjusted EBITDA Vacation Ownership	$	511		$	383		$	326
Adjusted EBITDA Exchange & Third-Party Management	77			—			—
Reconciling items:
Corporate and other	(169		)	(89		)	(89		)
Interest expense	(54		)	(10		)	(9		)
Tax provision	(51		)	(5		)	(76		)
Depreciation and amortization	(62		)	(21		)	(21		)
Share-based compensation expense	(35		)	(16		)	(14		)
Certain items	(162		)	(7		)	5
Net income attributable to common shareholders	$	55		$	235		$	122

Depreciation and Amortization



($ in millions)	2018		2017		2016
Vacation Ownership	$	37	$	17	$	16
Exchange & Third-Party Management	16		—		—
Total segment depreciation	53		17		16
Corporate and other	9		4		5
	$	62	$	21	$	21

Assets



($ in millions)	2018		2017
Vacation Ownership	$	7,275	$	2,279
Exchange & Third-Party Management	1,182		—
Total segment assets	8,457		2,279
Corporate and other	561		566
	$	9,018	$	2,845

Capital Expenditures (including inventory)



($ in millions)	2018		2017		2016
Vacation Ownership	$	245	$	174	$	164
Exchange & Third-Party Management	5		—		—
Total segment capital expenditures	250		174		164
Corporate and other	2		7		9
	$	252	$	181	$	173

Geographic Information

We conduct business globally, and our operations outside the United States represented approximately 13 percent, 13 percent and 15 percent of our revenues, excluding cost reimbursements, for 2018, 2017 and 2016, respectively.

Revenues (excluding cost reimbursements)



($ in millions)	2018		2017		2016
United States	$	1,780	$	1,247	$	1,090
All other countries	263		186		190
	$	2,043	$	1,433	$	1,280

Fixed Assets



($ in millions)	2018		2017
United States	$	748	$	506
All other countries	203		77
	$	951	$	583

QUARTERLY RESULTS (UNAUDITED)

12 Months Ended

Dec. 31, 2018

Quarterly Financial Information Disclosure [Abstract]

QUARTERLY RESULTS (UNAUDITED)



	2018⁽¹⁾
($ in millions, except per share data)	First Quarter			Second Quarter			Third Quarter⁽²⁾			Fourth Quarter			Fiscal Year
Revenues	$	571		$	595		$	750		$	1,052		$	2,968
Expenses	$	(518	)	$	(546	)	$	(698	)	$	(939	)	$	(2,701	)
Net income (loss) attributable to common shareholders	$	36		$	11		$	(36	)	$	44		$	55
Earnings (loss) per share attributable to common shareholders
Basic	$	1.35		$	0.40		$	(1.08	)	$	0.92		$	1.64
Diluted	$	1.32		$	0.39		$	(1.08	)	$	0.91		$	1.61



	2017⁽¹⁾
($ in millions, except per share data)	First Quarter			Second Quarter			Third Quarter			Fourth Quarter			Fiscal Year
Revenues	$	528		$	563		$	530		$	562		$	2,183
Expenses	$	(483	)	$	(489	)	$	(472	)	$	(493	)	$	(1,937	)
Net income attributable to common shareholders	$	28		$	48		$	40		$	119		$	235
Earnings per share attributable to common shareholders
Basic	$	1.02		$	1.76		$	1.49		$	4.46		$	8.70
Diluted	$	1.00		$	1.72		$	1.45		$	4.35		$	8.49

_______________________


⁽¹⁾	The sum of the earnings per share attributable to common shareholders for the four quarters differs from annual earnings per share attributable to common shareholders due to the required method of computing the weighted average shares in interim periods.

⁽²⁾

The third quarter results were revised to correct an immaterial prior period error relating to $30 million of acquisition-related costs incurred by Legacy-ILG prior to the Acquisition Date, that we paid in connection with the completion of the ILG Acquisition. These costs were incorrectly expensed as “ILG acquisition-related costs” during the third quarter of 2018, and during the fourth quarter of 2018 were reclassified to Goodwill. The impact to net income (loss) attributable to common shareholders during the three and nine-months ended September 30, 2018 was $22 million. See Footnote 3 “Acquisitions and Dispositions” for additional information.

SUBSEQUENT EVENTS	12 Months Ended
SUBSEQUENT EVENTS	Dec. 31, 2018
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	SUBSEQUENT EVENTS Dividends On February 15, 2019, our Board of Directors declared a quarterly dividend of $0.45 per share to be paid on March 14, 2019 to shareholders of record as of February 28, 2019.

ADOPTION IMPACT OF NEW REVENUE STANDARD

12 Months Ended

Dec. 31, 2018

ADOPTION IMPACT OF NEW REVENUE STANDARD

As discussed in Footnote 2 "Summary of Significant Accounting Policies" the FASB issued ASU 2014-09 in 2014, which, as amended, created ASC 606. The core principle of ASC 606 is that an entity shall recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The standard also contains significant new disclosure requirements regarding the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. We adopted ASC 606 effective January 1, 2018, on a retrospective basis and restated our previously reported historical results as shown in the tables below. The cumulative impact of the adoption of the new Revenue Standard on our opening retained earnings as of January 3, 2015, the first day of our 2015 fiscal year, was $2 million.

Upon adoption of the new Revenue Standard, recognition of revenue from the sale of vacation ownership products that is deemed collectible is now deferred from the point in time at which the statutory rescission period expires to closing, when control of the vacation ownership product is transferred to the customer. In addition, we aligned our assessment of collectibility of the transaction price for sales of vacation ownership products with our credit granting policies. We elected the practical expedient to expense all marketing and sales costs as they are incurred. Our consolidated cost reimbursements revenues and cost reimbursements expenses increased significantly, as all costs reimbursed to us by property owners’ associations are now reported on a gross basis upon adoption of the new Revenue Standard. In conjunction with the adoption of the new Revenue Standard we reclassified certain revenues and expenses.

As part of the adoption of the new Revenue Standard, we elected the following practical expedients and accounting policies:


•	We expense all marketing and sales costs that we incur to sell vacation ownership products when incurred.


•	In determining the transaction price for contracts from customers, we exclude all taxes assessed by a governmental authority that are both imposed on and concurrent with a specific revenue-product transaction and collected by the entity from a customer (e.g., sales tax).


•	We do not disclose the amount of the transaction price allocated to the remaining performance obligations as of December 31, 2017 or provide an explanation of when we expect to recognize that amount as revenue.

The following tables present the impact of the adoption of the new Revenue Standard on our previously reported historical results for the periods presented.

2017 Income Statement Impact



	2017
($ in millions, except per share amounts)	As Reported			ASC 606 Adjustments			Conforming Reclassifications⁽¹⁾			As Adjusted
REVENUES
Sale of vacation ownership products	$	728		$	29		$	—		$	757
Resort management and other services	306			(27		)	(279		)	—
Management and exchange	—			—			279			279
Rental	323			(61		)	—			262
Financing	135			—			—			135
Cost reimbursements	460			290			—			750
TOTAL REVENUES	1,952			231			—			2,183
EXPENSES
Cost of vacation ownership products	178			16			—			194
Marketing and sales	409			(14		)	(7		)	388
Resort management and other services	172			(17		)	(155		)	—
Management and exchange	—			—			147			147
Rental	281			(58		)	(2		)	221
Financing	18			—			25			43
General and administrative	110			—			(4		)	106
Depreciation and amortization	—			—			21			21
Litigation settlement	4			—			—			4
Consumer financing interest	25			—			(25		)	—
Royalty fee	63			—			—			63
Cost reimbursements	460			290			—			750
TOTAL EXPENSES	1,720			217			—			1,937
Gains and other income, net	6			—			—			6
Interest expense	(10		)	—			—			(10		)
ILG acquisition costs	—			—			(1		)	(1		)
Other	(2		)	—			1			(1		)
INCOME BEFORE INCOME TAXES AND NONCONTROLLING INTERESTS	226			14			—			240
Benefit (provision) for income taxes	1			(6		)	—			(5		)
NET INCOME	227			8			—			235
Net income attributable to noncontrolling interests	—			—			—			—
NET INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS	$	227		$	8		$	—		$	235

EARNINGS PER SHARE ATTRIBUTABLE TO COMMON SHAREHOLDERS
Basic	$	8.38		$	0.32		$	—		$	8.70
Diluted	$	8.18		$	0.31		$	—		$	8.49

_________________________


⁽¹⁾	We have reclassified certain prior year amounts to conform to our current year presentation. See Footnote 1 "Basis of Presentation" for a description of the reclassifications.

2016 Income Statement Impact



	2016
($ in millions, except per share amounts)	As Reported			ASC 606 Adjustments			Conforming Reclassifications⁽¹⁾			As Adjusted
REVENUES
Sale of vacation ownership products	$	638		$	(15	)	$	—		$	623
Resort management and other services	300			(22		)	(278		)	—
Management and exchange	—			—			278			278
Rental	312			(60		)	—			252
Financing	126			1			—			127
Cost reimbursements	432			288			—			720
TOTAL REVENUES	1,808			192			—			2,000
EXPENSES
Cost of vacation ownership products	155			8			—			163
Marketing and sales	353			(13		)	(6		)	334
Resort management and other services	174			(17		)	(157		)	—
Management and exchange	—			—			149			149
Rental	261			(49		)	(2		)	210
Financing	19			—			24			43
General and administrative	105			—			(5		)	100
Depreciation and amortization	—			—			21			21
Litigation settlement	(1		)	—			—			(1		)
Consumer financing interest	24			—			(24		)	—
Royalty fee	61			—			—			61
Cost reimbursements	432			288			—			720
TOTAL EXPENSES	1,583			217			—			1,800
Gains and other income, net	11			—			—			11
Interest expense	(9		)	—			—			(9		)
Other	(4		)	—			—			(4		)
INCOME BEFORE INCOME TAXES AND NONCONTROLLING INTERESTS	223			(25		)	—			198
Provision for income taxes	(86		)	10			—			(76		)
NET INCOME	137			(15		)	—			122
Net income attributable to noncontrolling interests	—			—			—			—
NET INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS	$	137		$	(15	)	$	—		$	122

EARNINGS PER SHARE ATTRIBUTABLE TO COMMON SHAREHOLDERS
Basic	$	4.93		$	(0.56	)	$	—		$	4.37
Diluted	$	4.83		$	(0.54	)	$	—		$	4.29

_________________________


⁽¹⁾	We have reclassified certain prior year amounts to conform to our current year presentation. See Footnote 1 "Basis of Presentation" for a description of the reclassifications.

2017 Balance Sheet Impact



	As of December 31, 2017
($ in millions)	As Reported			ASC 606 Adjustments			Conforming Reclassifications⁽¹⁾			As Adjusted
ASSETS
Cash and cash equivalents	$	409		$	—		$	—		$	409
Restricted cash	82			—			—			82
Accounts receivable, net	154			(62		)	—			92
Vacation ownership notes receivable, net	1,120			(5		)	—			1,115
Inventory	716			12			(330		)	398
Property and equipment	253			—			330			583
Other	172			(6		)	—			166
TOTAL ASSETS	$	2,906		$	(61	)	$	—		$	2,845
LIABILITIES AND EQUITY
Accounts payable	$	145		$	—		$	—		$	145
Advance deposits	63			21			—			84
Accrued liabilities	168			(48		)	—			120
Deferred revenue	98			(29		)	—			69
Payroll and benefits liability	112			—			—			112
Deferred compensation liability	75			—			—			75
Securitized debt	—			—			835			835
Debt, net	1,095			—			(835		)	260
Other	14			—			—			14
Deferred taxes	91			(1		)	—			90
TOTAL LIABILITIES	1,861			(57		)	—			1,804

Preferred stock	—			—			—			—
Common stock	—			—			—			—
Treasury stock	(694		)	—			—			(694		)
Additional paid-in capital	1,189			—			—			1,189
Accumulated other comprehensive income	17			—			—			17
Retained earnings	533			(4		)	—			529
TOTAL EQUITY	1,045			(4		)	—			1,041
TOTAL LIABILITIES AND EQUITY	$	2,906		$	(61	)	$	—		$	2,845

_________________________


⁽¹⁾	We have reclassified certain prior year amounts to conform to our current year presentation. See Footnote 1 "Basis of Presentation" for a description of the reclassifications.

2017 Cash Flow Impact - Operating Activities



	2017
($ in millions)	As Reported			Adjustments			As Adjusted
OPERATING ACTIVITIES
Net income	$	227		$	8		$	235
Adjustments to reconcile net income to net cash and restricted cash provided by operating activities:
Depreciation and amortization of intangibles	21			—			21
Amortization of debt discount and issuance costs	10			—			10
Vacation ownership notes receivable reserve	50			2			52
Share-based compensation	16			—			16
Loss on disposal of property and equipment, net	2			—			2
Deferred income taxes	(66		)	5			(61		)
Net change in assets and liabilities:
Accounts receivable	5			(14		)	(9		)
Vacation ownership notes receivable originations	(467		)	1			(466		)
Vacation ownership notes receivable collections	270			—			270
Inventory	42			3			45
Purchase of vacation ownership units for future transfer to inventory	(34		)	—			(34		)
Other assets	(21		)	—			(21		)
Accounts payable, advance deposits and accrued liabilities	51			(12		)	39
Deferred revenue	2			7			9
Payroll and benefit liabilities	16			—			16
Deferred compensation liability	12			—			12
Other, net	6			—			6
Net cash and restricted cash provided by operating activities	$	142		$	—		$	142

2016 Cash Flow Impact - Operating Activities



	2016
($ in millions)	As Reported			Adjustments			As Adjusted
OPERATING ACTIVITIES
Net income	$	137		$	(15	)	$	122
Adjustments to reconcile net income to net cash and restricted cash provided by operating activities:
Depreciation and amortization of intangibles	21			—			21
Amortization of debt discount and issuance costs	6			—			6
Vacation ownership notes receivable reserve	48			(3		)	45
Share-based compensation	14			—			14
Gain on disposal of property and equipment, net	(11		)	—			(11		)
Deferred income taxes	39			(9		)	30
Net change in assets and liabilities:
Accounts receivable	(29		)	29			—
Vacation ownership notes receivable originations	(357		)	—			(357		)
Vacation ownership notes receivable collections	254			—			254
Inventory	5			(6		)	(1		)
Other assets	11			1			12
Accounts payable, advance deposits and accrued liabilities	(19		)	5			(14		)
Deferred revenue	17			(2		)	15
Payroll and benefit liabilities	(7		)	—			(7		)
Deferred compensation liability	12			—			12
Other liabilities	—			1			1
Other, net	—			(1		)	(1		)
Net cash and restricted cash provided by operating activities	$	141		$	—		$	141

SUPPLEMENTAL GUARANTOR INFORMATION

12 Months Ended

Dec. 31, 2018

Guarantees and Product Warranties [Abstract]

SUPPLEMENTAL GUARANTOR INFORMATION

The IAC Notes are guaranteed by Marriott Vacations Worldwide Corporation, ILG and certain other subsidiaries for which 100% of the voting securities are owned directly or indirectly by ILG (collectively, the “Guarantor Subsidiaries”). These guarantees are full and unconditional and joint and several. The guarantees of the Guarantor Subsidiaries are subject to release in limited circumstances only upon the occurrence of certain customary conditions. The indenture governing the IAC Notes contains covenants that, among other things, limit the ability of Interval Acquisition Corp. (the “Issuer”) and the Guarantor Subsidiaries to pay dividends to us or make distributions, loans or advances to us.

The following tables present consolidating financial information as of December 31, 2018 and for the 122 days ended December 31, 2018 for MVW and ILG on a stand-alone basis, the Issuer on a stand-alone basis, the combined Guarantor Subsidiaries of MVW (collectively, the “Guarantor Subsidiaries”), the combined non-guarantor subsidiaries of MVW (collectively, the “Non-Guarantor Subsidiaries”) and MVW on a consolidated basis.

Condensed Consolidating Balance Sheet



	As of December 31, 2018
($ in millions)	MVW			ILG			Interval Acquisition Corp.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Total Eliminations			MVW Consolidated
Cash and cash equivalents	$	—		$	2		$	11		$	26		$	192		$	—		$	231
Restricted cash	—			—			—			83			300			—			383
Accounts receivable, net	29			—			2			101			194			(2		)	324
Vacation ownership notes receivable, net	—			—			—			176			1,863			—			2,039
Inventory	—			—			—			440			423			—			863
Property and equipment	—			1			—			273			677			—			951
Goodwill	2,828			—			—			—			—			—			2,828
Intangibles, net	—			—			—			1,066			41			—			1,107
Investments in subsidiaries	123			1,446			1,588			(269		)	1,748			(4,636		)	—
Other	(2		)	(7		)	2			126			211			(38		)	292
Total assets	$	2,978		$	1,442		$	1,603		$	2,022		$	5,649		$	(4,676	)	$	9,018

Accounts payable	$	39		$	—		$	—		$	64		$	142		$	—		$	245
Advance deposits	—			—			—			25			88			—			113
Accrued liabilities	13			8			(24		)	135			291			—			423
Deferred revenue	—			—			—			110			209			—			319
Payroll and benefits liability	16			—			—			76			119			—			211
Deferred compensation liability	—			—			—			7			86			—			93
Securitized debt, net	—			—			—			—			1,694			—			1,694
Debt, net	—			—			142			—			1,982			—			2,124
Other	—			—			—			1			11			—			12
Deferred taxes	38			(60		)	87			142			111			—			318
Intercompany liabilities (receivables) / equity	—			(1,272		)	(335		)	(98		)	(2,530		)	4,163			(72		)
MVW shareholders' equity	2,872			2,766			1,733			1,563			3,438			(8,839		)	3,533
Noncontrolling interests	—			—			—			(3		)	8			—			5
Total liabilities and equity	$	2,978		$	1,442		$	1,603		$	2,022		$	5,649		$	(4,676	)	$	9,018

Condensed Consolidating Statement of Income



	122 Days Ended December 31, 2018
($ in millions)	MVW			ILG		Interval Acquisition Corp.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Total Eliminations			MVW Consolidated
Revenues	$	(3	)	$	—	$	—		$	488		$	1,035		$	(7	)	$	1,513
Expenses	(14		)	—		(1		)	(495		)	(888		)	7			(1,391		)
Interest expense	(3		)	—		(2		)	1			(50		)	—			(54		)
ILG acquisition-related costs	(11		)	—		—			—			(47		)	—			(58		)
Equity in earnings from unconsolidated entities	—			—		—			(1		)	—			—			(1		)
Equity in net income of subsidiaries	65			5		9			—			—			(79		)	—
Income tax benefit	(11		)	—		(1		)	2			21			—			11
Net income (loss)	23			5		5			(5		)	71			(79		)	20
Net loss (income) attributable to noncontrolling interests	—			—		—			1			2			—			3
Net income (loss) attributable to common shareholders	$	23		$	5	$	5		$	(4	)	$	73		$	(79	)	$	23

Condensed Consolidating Statement of Cash Flows



	122 Days Ended December 31, 2018
($ in millions)	MVW			ILG		Interval Acquisition Corp.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Total Eliminations			MVW Consolidated
Net cash, cash equivalents and restricted cash provided by (used in) operating activities	$	120		$	—	$	(2	)	$	17		$	(57	)	$	—		$	78
Net cash, cash equivalents and restricted cash (used in) provided by investing activities	(1		)	2		125			115			(1,586		)	(123		)	(1,468		)
Net cash, cash equivalents and restricted cash (used in) provided by financing activities	(119		)	—		(113		)	(23		)	(221		)	123			(353		)
Cash, cash equivalents and restricted cash, beginning of period	—			—		—			—			2,357			—			2,357
Cash, cash equivalents and restricted cash, end of period	$	—		$	2	$	10		$	109		$	493		$	—		$	614

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)

12 Months Ended

Dec. 31, 2018

Accounting Policies [Abstract]

Our Business

Principles of Consolidation and Basis of Presentation



Fiscal Year	Fiscal Year-End Date	Number of Days
2018	December 31, 2018	365
2017	December 31, 2017	366
2016	December 30, 2016	364

Revenue Recognition

Sale of Vacation Ownership Products

Management and Exchange Revenues and Cost Reimbursements Revenues

Ancillary Revenues

Management Fee Revenues and Cost Reimbursements Revenues

Other Services Revenues

Financing Revenues

Financing revenues include transaction-based fees we charge to owners and other third parties for services. We recognize fee revenues when services have been rendered.

Rental Revenues

Arrangements with Multiple Performance Obligations

Receivables, Contract Assets & Contract Liabilities

Costs Incurred to Sell Vacation Ownership Products

Costs Incurred to Sell Vacation Ownership ProductsWe charge marketing and sales costs we incur to sell vacation ownership products to expense when incurred.

Earnings Per Common Share

Earnings Per Share Attributable to Common ShareholdersBasic earnings per share attributable to common shareholders is calculated by dividing the earnings available to common shareholders by the weighted average number of common shares outstanding for the period. Diluted earnings per share attributable to common shareholders is calculated to give effect to all potentially dilutive common shares that were outstanding during the reporting period. The dilutive effect of outstanding equity-based compensation awards is reflected in diluted earnings per share attributable to common shareholders by application of the treasury stock method.

Business Combinations


•	The expected use of the asset.


•	The expected useful life of another asset or a group of assets to which the useful life of the intangible asset may relate.


•	Any legal, regulatory, or contractual provisions that may limit the useful life.


•	Our own historical experience in renewing or extending similar arrangements, consistent with our intended use of the asset, regardless of whether those arrangements have explicit renewal or extension provisions.


•	The effects of obsolescence, demand, competition, and other economic factors.


•	The level of maintenance expenditures required to obtain the expected future cash flows from the asset.

Unanticipated events and circumstances may occur which could affect the accuracy or validity of our assumptions, estimates or actual results.

Capitalization of Costs

Capitalization of CostsWe capitalize costs clearly associated with the acquisition of real estate when a transaction is accounted for as an asset acquisition under ASC Topic 805, “Business Combinations” (“ASC 805”). Alternatively, when acquired real estate constitutes a business under ASC 805, transaction costs are expensed as incurred. We capitalize interest and certain salaries and related costs incurred in connection with the following: (1) development and construction of sales centers; (2) internally developed software; and (3) development and construction projects for our real estate inventory. We capitalize costs clearly associated with the development and construction of a real estate project when it is probable that we will acquire a property. We capitalize salary and related costs only to the extent they directly relate to the project. We capitalize interest expense, taxes and insurance costs when activities that are necessary to get the property ready for its intended use are underway. We cease capitalization of costs during prolonged gaps in development when substantially all activities are suspended or when projects are considered substantially complete. Capitalized salaries and related costs totaled $6 million in each of 2018, 2017 and 2016.

Variable Interest Entities

Variable Interest EntitiesWe consolidate entities under our control, including variable interest entities (“VIEs”) where we are deemed to be the primary beneficiary. In accordance with the applicable accounting guidance for the consolidation of VIEs, we analyze our variable interests, including loans, guarantees and equity investments, to determine if an entity in which we have a variable interest is a variable interest entity. Our analysis includes both quantitative and qualitative reviews. We base our quantitative analysis on the forecasted cash flows of the entity, and our qualitative analysis on our review of the design of the entity, its organizational structure including decision-making ability, and relevant financial agreements. We also use our qualitative analyses to determine if we must consolidate a variable interest entity because we are its primary beneficiary.

Fair Value Measurements


•	Level 1 inputs are unadjusted quoted prices in active markets for identical assets or liabilities that we have the ability to access at the measurement date.

•

Level 3 includes unobservable inputs that reflect our assumptions about what factors market participants would use in pricing the asset or liability. We develop these inputs based on the best information available, including our own data.

Cash and Cash Equivalents

Cash and Cash EquivalentsWe consider all highly liquid investments with an initial purchase maturity of three months or less at the date of purchase to be cash equivalents.

Restricted Cash

Restricted CashRestricted cash primarily consists of cash restricted for use by consolidated property owners’ associations which is designated for resort operations and other specific uses, such as reserves, cash held in a reserve account related to vacation ownership notes receivable securitizations, cash collected for maintenance fees to be remitted to property owners’ associations, and deposits received and held in escrow, primarily associated with the sale of vacation ownership products.

Accounts Receivable

Accounts ReceivableAccounts receivable are stated at amounts due from customers, principally resort developers, members and managed properties, net of an allowance for doubtful accounts. Accounts receivable outstanding longer than the contractual payment terms are considered past due. We determine our allowance for accounts receivables by considering a number of factors, including the length of time accounts receivable are past due, previous loss history, our judgment as to the specific customer’s current ability to pay its obligation and the condition of the general economy. Our policy for determining our allowance for doubtful accounts consists of both general and specific reserves. The general reserve methodology is distinct for each business based on its historical collection experience and past practice. Predominantly, receivables greater than 120 days past due are applied a general reserve factor, while receivables 180 days or more past due are fully reserved. The determination of when to apply a specific reserve requires judgment and is directly related to the particular customer collection issue identified, such as known liquidity constraints, insolvency concerns or litigation. We write off accounts receivable when they become uncollectible once we have exhausted all means of collection.

Loan Loss Reserves

Legacy-MVW Vacation Ownership Notes Receivable

For additional information on our Legacy-MVW vacation ownership notes receivable, including information on the related reserves, see Footnote No. 6 “Vacation Ownership Notes Receivable.”

Legacy-ILG Vacation Ownership Notes Receivable

On an ongoing basis, we monitor the credit quality of our Legacy-ILG vacation ownership notes receivable portfolio based on payment activity as follows:


•	Current — The vacation ownership note receivable is in good standing as payments and reporting are current per the terms contractually stipulated in the agreement.


•	Delinquent — We consider a vacation ownership note receivable to be delinquent based on the contractual terms of each individual financing agreement.

•

For additional information on our Legacy-ILG vacation ownership notes receivable, including information on the related reserves, see Footnote No. 6 “Vacation Ownership Notes Receivable.”

Inventory

Property and Equipment

Valuation of Property and Equipment

Valuation of Property and EquipmentWe test long-lived asset groups for recoverability when changes in circumstances indicate the carrying value may not be recoverable, for example, when there are material adverse changes in projected revenues or expenses, significant underperformance relative to historical or projected operating results, or significant negative industry or economic trends. We evaluate recoverability of an asset group by comparing its carrying value to the future net undiscounted cash flows that we expect will be generated by the asset group. If the comparison indicates that the carrying value of an asset group is not recoverable, we recognize an impairment loss for the excess of carrying value over the estimated fair value. When we recognize an impairment loss for assets to be held and used, we depreciate the adjusted carrying amount of those assets over their remaining useful life.

Goodwill

We have had no goodwill impairment charges in the year ended December 31, 2018.

Convertible Senior Notes

Convertible Senior NotesIn accounting for the 1.50% Convertible Senior Notes due 2022 (the “Convertible Notes”), we separated them into liability and equity components. The carrying amount of the liability component was calculated by measuring the fair value of a similar liability that does not have an associated convertible feature. The carrying amount of the equity component representing the conversion option was determined by deducting the fair value of the liability component from the par value of the Convertible Notes. The excess of the principal amount of the liability over its carrying amount is amortized to interest expense over the term of the Convertible Notes using the effective interest method. The equity component is not remeasured as long as it continues to meet the conditions for equity classification. In accounting for the issuance costs related to the Convertible Notes, we allocated the total amount incurred to the liability and equity components based on their relative values. Issuance costs attributable to the liability component are amortized to interest expense over the term of the Convertible Notes, and issuance costs attributable to the equity component are included along with the equity component in additional paid-in capital within stockholders’ equity. See Footnote 13 “Debt” for more information.

Loss Contingencies

Loss ContingenciesWe are subject to various legal proceedings and claims in the normal course of business, the outcomes of which are subject to significant uncertainty. We record an accrual for loss 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 the loss. We review these accruals each reporting period and make revisions based on changes in facts and circumstances.

Defined Contribution Plan

Defined Contribution PlanWe administer and maintain a defined contribution plan for the benefit of all employees meeting certain eligibility requirements who elect to participate in the plan. Contributions are determined based on a specified percentage of salary deferrals by participating employees. We recognized compensation expense (net of cost reimbursements from property owners’ associations) for our participating employees totaling $11 million in 2018, $10 million in 2017 and $8 million in 2016.

Deferred Compensation Plan

Also, see Footnote 16 “Share-Based Compensation” for information on the Legacy-ILG Deferred Compensation Plan.

Share-Based Compensation Costs

Non-U.S. Operations

Non-U.S. OperationsThe U.S. dollar is the functional currency of our consolidated entities operating in the United States. The functional currency for our consolidated entities operating outside of the United States is generally the currency of the economic environment in which the entity primarily generates and expends cash. For consolidated entities whose functional currency is not the U.S. dollar, we translate their financial statements into U.S. dollars. We translate assets and liabilities at the exchange rate in effect as of the financial statement date and translate Income Statement accounts using the weighted average exchange rate for the period. We include translation adjustments from currency exchange and the effect of exchange rate changes on intercompany transactions of a long-term investment nature as a separate component of equity. We report gains and losses from currency exchange rate changes related to intercompany receivables and payables that are not of a long-term investment nature, as well as gains and losses from non-U.S. currency transactions, currently in operating costs and expenses.

Income Taxes

For information about income taxes and deferred tax assets and liabilities, see Footnote 5 “Income Taxes.”

New Accounting Standards

Accounting Standards Update 2018-05 – “Income Taxes (Topic 740): Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 118” (“ASU 2018-05”)

Accounting Standards Update 2018-15 – “Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract” (“ASU 2018-15”)

Accounting Standards Update 2016-01 – “Financial Instruments – Overall (Subtopic 825-10)” (“ASU 2016-01”)

Accounting Standards Update 2016-16 – “Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory” (“ASU 2016-16”)

Accounting Standards Update 2014-09 – “Revenue from Contracts with Customers (Topic 606)” (“ASU 2014-09”), as Amended

Future Adoption of Accounting Standards

Accounting Standards Update 2017-12 – “Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities” (“ASU 2017-12”)

Accounting Standards Update 2016-13 – “Financial Instruments – Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments” (“ASU 2016-13”)

Accounting Standards Update 2016-02 – “Leases (Topic 842)” (“ASU 2016-02”)

BASIS OF PRESENTATION (Tables)

12 Months Ended

Dec. 31, 2018

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Each Reference to Particular Year in These Financial Statements Means Fiscal Year Ended on Date Shown



Fiscal Year	Fiscal Year-End Date	Number of Days
2018	December 31, 2018	365
2017	December 31, 2017	366
2016	December 30, 2016	364

ACQUISITIONS AND DISPOSITIONS (Tables)

12 Months Ended

Dec. 31, 2018

Business Combinations [Abstract]

Consideration Transferred

The following table presents the fair value of each class of consideration transferred at the Acquisition Date.



(in millions, except per share amounts)
Equivalent shares of Marriott Vacations Worldwide common stock issued in exchange for ILG outstanding shares	20.5
Marriott Vacations Worldwide common stock price per share as of Acquisition Date	$	119.00
Fair value of Marriott Vacations Worldwide common stock issued in exchange for ILG outstanding shares	2,441
Cash consideration to ILG shareholders, net of cash acquired of $154 million	1,680
Fair value of ILG equity-based awards attributed to pre-combination service	64
Total consideration transferred, net of cash acquired	4,185
Noncontrolling interests	29
	$	4,214

Schedule of Recognized Identified Assets Acquired and Liabilities Assumed



($ in millions)	September 1, 2018 (as previously reported)			Adjustments ⁽¹⁾			September 1, 2018 (as adjusted)
Vacation ownership notes receivable	$	736		$	17		$	753
Inventory	494			(20		)	474
Property and equipment	384			(10		)	374
Intangible assets	1,223			(57		)	1,166
Other assets	581			39			620
Deferred revenue	(217		)	—			(217		)
Deferred taxes	(174		)	(5		)	(179		)
Debt	(392		)	—			(392		)
Securitized debt from VIEs	(696		)	(6		)	(702		)
Other liabilities	(476		)	(35		)	(511		)
Net assets acquired	1,463			(77		)	1,386
Goodwill⁽²⁾	2,747			81			2,828
	$	4,210		$	4		$	4,214

_________________________

⁽¹⁾

⁽²⁾

Goodwill is calculated as total consideration transferred, net of cash acquired, less identified net assets acquired and it primarily represents the value that we expect to obtain from synergies and growth opportunities from our combined operations.

Goodwill Acquired as Part of Business Combination



($ in millions)	Vacation Ownership Segment		Exchange & Third-Party Management Segment		Total Consolidated
Year-End 2018 Balance
Goodwill	$	2,448	$	380	$	2,828

Finite-Lived and Indefinite-Lived Intangible Assets Acquired as Part of Business Combination

The following table presents our preliminary estimates of the fair values of the identified intangible assets acquired in the ILG Acquisition and their related estimated useful lives.



	Estimated Fair Value ($ in millions)		Estimated Useful Life (in years)
Member relationships	$	695	15 to 20
Management contracts	356		15 to 25
Management contracts⁽¹⁾	33		indefinite
Trade names and trademarks	82		indefinite
	$	1,166

_________________________

⁽¹⁾

The indefinite-lived management contracts, by their terms, continue for the foreseeable horizon. There are no legal, regulatory, contractual, competitive, economic or other factors which limit the period of time over which these resort management contracts are expected to contribute future cash flows.

Business Acquisition, Pro Forma Information

Accordingly, these unaudited pro forma results are presented for informational purposes only and are not necessarily indicative of what the actual results of operations of the combined company would have been if the ILG Acquisition had occurred at the beginning of the period presented, nor are they indicative of future results of operations.



($ in millions, except per share data)	2018		2017
Revenues	$	4,216	$	3,927
Net income	$	192	$	191
Net income attributable to common stockholders	$	193	$	189
EARNINGS PER SHARE ATTRIBUTABLE TO COMMON SHAREHOLDERS
Basic	$	4.10	$	3.96
Diluted	$	4.00	$	3.88

The following table presents the results of Legacy-ILG operations included in our Income Statement from the Acquisition Date through the end of 2018.



($ in millions)	September 1, 2018 to December 31, 2018
Revenue	$	568
Net loss	$	(5	)

REVENUE (Tables)

12 Months Ended

Dec. 31, 2018

Disaggregation of Revenue

Sources of Revenue by Segment

The following tables detail the sources of revenue by segment for each of the last three fiscal years.



	2018
($ in millions)	Vacation Ownership		Exchange & Third-Party Management		Corporate and Other			Total
Sale of vacation ownership products	$	990	$	—	$	—		$	990

Ancillary revenues	160		1		—			161
Management fee revenues	114		30		(4		)	140
Other services revenues	85		78		35			198
Management and exchange	359		109		31			499

Rental	352		18		1			371

Cost reimbursements	920		33		(28		)	925
Revenue from contracts with customers	2,621		160		4			2,785

Financing	182		1		—			183
Total Revenues	$	2,803	$	161	$	4		$	2,968



	2017
($ in millions)	Vacation Ownership		Exchange & Third-Party Management		Corporate and Other		Total
Sale of vacation ownership products	$	757	$	—	$	—	$	757

Ancillary revenues	118		—		—		118
Management fee revenues	89		—		—		89
Other services revenues	72		—		—		72
Management and exchange	279		—		—		279

Rental	262		—		—		262

Cost reimbursements	750		—		—		750
Revenue from contracts with customers	2,048		—		—		2,048

Financing	135		—		—		135
Total Revenues	$	2,183	$	—	$	—	$	2,183



	2016
($ in millions)	Vacation Ownership		Exchange & Third-Party Management		Corporate and Other		Total
Sale of vacation ownership products	$	623	$	—	$	—	$	623

Ancillary revenues	124		—		—		124
Management fee revenues	84		—		—		84
Other services revenues	70		—		—		70
Management and exchange	278		—		—		278

Rental	252		—		—		252

Cost reimbursements	720		—		—		720
Revenue from contracts with customers	1,873		—		—		1,873

Financing	127		—		—		127
Total Revenues	$	2,000	$	—	$	—	$	2,000

Revenue, Remaining Performance Obligation

Timing of Revenue from Contracts with Customers by Segment

The following tables detail the timing of revenue from contracts with customers by segment for each of the last three fiscal years.



	2018
($ in millions)	Vacation Ownership		Exchange & Third-Party Management		Corporate and Other		Total
Services transferred over time	$	1,467	$	95	$	4	$	1,566
Goods or services transferred at a point in time	1,154		65		—		1,219
Revenue from contracts with customers	$	2,621	$	160	$	4	$	2,785



	2017
($ in millions)	Vacation Ownership		Exchange & Third-Party Management		Corporate and Other		Total
Services transferred over time	$	1,149	$	—	$	—	$	1,149
Goods or services transferred at a point in time	899		—		—		899
Revenue from contracts with customers	$	2,048	$	—	$	—	$	2,048



	2016
($ in millions)	Vacation Ownership		Exchange & Third-Party Management		Corporate and Other		Total
Services transferred over time	$	1,104	$	—	$	—	$	1,104
Goods or services transferred at a point in time	769		—		—		769
Revenue from contracts with customers	$	1,873	$	—	$	—	$	1,873

Contract with Customer, Asset and Liability

The following table shows the composition of our receivables and contract liabilities. We had no contract assets at either December 31, 2018 or December 31, 2017.



($ in millions)	At December 31, 2018		At December 31, 2017
Receivables
Accounts receivable	$	68	$	73
Vacation ownership notes receivable, net	2,039		1,115
	$	2,107	$	1,188

Contract Liabilities
Advance deposits	$	113	$	84
Deferred revenue	319		69
	$	432	$	153

INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2018

Income Tax Disclosure [Abstract]

Income (Loss) Before Provision for Income Taxes by Geographic Region

The components of our earnings before income taxes for the last three years consisted of:



($ in millions)	2018			2017		2016
United States	$	108		$	232	$	195
Non-U.S. jurisdictions	(5		)	8		3
	$	103		$	240	$	198

Provision for Income Taxes

Our provision for income taxes for the last three years consisted of:



($ in millions)		2018			2017			2016
Current	– U.S. Federal	$	17		$	(49	)	$	(35	)
	– U.S. State	(1		)	(7		)	(5		)
	– Non-U.S.	(10		)	(7		)	(5		)
		6			(63		)	(45		)

Deferred	– U.S. Federal	(46		)	44			(30		)
	– U.S. State	(9		)	(1		)	(2		)
	– Non-U.S.	(2		)	15			1
		(57		)	58			(31		)
		$	(51	)	$	(5	)	$	(76	)

Deferred Tax Assets and Liabilities



($ in millions)	At Year-End 2018			At Year-End 2017
Deferred Tax Assets
Inventory	$	145		$	38
Reserves	84			26
Deferred revenue	22			1
Property and equipment	54			12
Long lived intangible assets	—			24
Net operating loss and capital loss carryforwards	59			39
Tax credits	24			40
Other, net	21			17
Deferred tax assets	409			197
Less valuation allowance	(106		)	(44		)
Net deferred tax assets	303			153

Deferred Tax Liabilities
Long lived intangible assets	(234		)	—
Deferred sales of vacation ownership interests	(377		)	(230		)
Deferred tax liabilities	(611		)	(230		)

Total net deferred tax liabilities	$	(308	)	$	(77	)

Reconciliation of US Statutory Income Tax Rate to Effective Tax Rate

The following table reconciles the U.S. statutory income tax rate to our effective income tax rate:



	2018	2017	2016
U.S. statutory income tax rate	21.00%	35.00%	35.00%
U.S. state income taxes, net of U.S. federal tax benefit	4.23	2.50	2.47
Permanent differences⁽¹⁾	2.78	(0.58)	1.16
Transaction costs⁽²⁾	4.68	—	—
Impact related to the Tax Act	1.23	(27.12)	—
Impact of non-deductible executive compensation⁽³⁾	3.60	(2.54)	—
Foreign tax rate changes	(0.11)	(2.01)	0.05
Non-U.S. income (loss)⁽⁴⁾	3.90	(2.61)	0.08
Other items	(0.11)	(0.79)	(1.06)
Change in valuation allowance⁽⁵⁾	8.60	0.03	0.78
Effective rate	49.80%	1.88%	38.48%

_________________________


⁽¹⁾	Primarily due to non-deductible meal and entertainment expenses and new foreign tax provisions net of foreign tax credits, under provisions of the Tax Act.


⁽²⁾	Attributed to non-deductible transaction costs incurred as a result of the ILG Acquisition.


⁽³⁾	Increase attributable to non-deductible executive compensation under provisions of the Tax Act.


⁽⁴⁾	Attributed to the difference between U.S. and foreign income tax rates and other foreign adjustments.

⁽⁵⁾

VACATION OWNERSHIP NOTES RECEIVABLE (Tables)

12 Months Ended

Dec. 31, 2018

Receivables [Abstract]

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:



	December 31, 2018						December 31, 2017
($ in millions)	Originated		Acquired		Total		Originated		Acquired		Total
Securitized	$	1,070	$	557	$	1,627	$	814	$	—	$	814
Non-securitized
Eligible for securitization⁽¹⁾	85		22		107		142		—		142
Not eligible for securitization⁽¹⁾	233		72		305		159		—		159
Subtotal	318		94		412		301		—		301
	$	1,388	$	651	$	2,039	$	1,115	$	—	$	1,115

_________________________

⁽¹⁾

Refer to Footnote 7 “Financial Instruments” for discussion of eligibility of our vacation ownership notes receivable for securitization.

Interest Income Associated with Vacation Ownership Notes Receivable

The following table summarizes interest income associated with vacation ownership notes receivable:



($ in millions)	2018		2017		2016
Interest income associated with vacation ownership notes receivable — securitized	$	151	$	101	$	97
Interest income associated with vacation ownership notes receivable — non-securitized	24		27		23
Total interest income associated with vacation ownership notes receivable	$	175	$	128	$	120

Schedule Of Accretable Yield



($ in millions)	122 Days Ended December 31, 2018
Balance at Acquisition Date	$	—
Acquired accretable yield	233
Accretion	(32		)
Reclassification from non-accretable difference	(2		)
Balance at December 31, 2018	$	199

Non-accretable difference at December 31, 2018	$	68

Future Principal Payments, Net of Reserves, and Interest Rates of Vacation Ownership Notes Receivable

The following tables show future contractual principal payments, as well as interest rates for our acquired non-securitized and securitized vacation ownership notes receivable at December 31, 2018:



	Acquired Vacation Ownership Notes Receivable
($ in millions)	Non-Securitized		Securitized		Total
2019	$	9	$	57	$	66
2020	8		59		67
2021	9		61		70
2022	9		61		70
2023	9		60		69
Thereafter	50		259		309
Balance at December 31, 2018	$	94	$	557	$	651
Weighted average stated interest rate	13.4%		13.4%		13.4%
Range of stated interest rates	0.0% to 17.9%		6.0% to 17.9%		0.0% to 17.9%

Originated Vacation Ownership Notes Receivable



	Originated Vacation Ownership Notes Receivable
($ in millions)	Non-Securitized		Securitized		Total
2019	$	52	$	104	$	156
2020	38		108		146
2021	32		112		144
2022	28		115		143
2023	25		116		141
Thereafter	143		515		658
Balance at December 31, 2018	$	318	$	1,070	$	1,388
Weighted average stated interest rate	11.8%		12.5%		12.4%
Range of stated interest rates	0.0% to 18.0%		5.2% to 17.5%		0.0% to 18.0%

Notes Receivable Reserves

The following table summarizes the activity related to our originated vacation ownership notes receivable reserve:



	Originated Vacation Ownership Notes Receivable
($ in millions)	Non-Securitized			Securitized			Total
Balance at December 31, 2015	$	59		$	49		$	108
Increase in vacation ownership notes receivable reserve	27			17			44
Securitizations	(28		)	28			—
Clean-up of Warehouse Credit Facility⁽¹⁾	10			(10		)	—
Write-offs	(40		)	—			(40		)
Defaulted vacation ownership notes receivable repurchase activity⁽²⁾	30			(30		)	—
Balance at December 31, 2016	58			54			112
Increase in vacation ownership notes receivable reserve	42			10			52
Securitizations	(29		)	29			—
Clean-up of Warehouse Credit Facility⁽¹⁾	4			(4		)	—
Write-offs	(45		)	—			(45		)
Defaulted vacation ownership notes receivable repurchase activity⁽²⁾	28			(28		)	—
Balance at December 31, 2017	58			61			119
Vacation ownership notes receivable reserve	57			7			64
Securitizations	(39		)	39			—
Clean-up call⁽¹⁾	1			(1		)	—
Write-offs	(43		)	—			(43		)
Defaulted vacation ownership notes receivable repurchase activity⁽²⁾	27			(27		)	—
Balance at December 31, 2018	$	61		$	79		$	140

_________________________


⁽¹⁾	Refers to our voluntary repurchase of previously securitized non-defaulted vacation ownership notes receivable to retire outstanding vacation ownership notes receivable securitizations in 2018 and from our Warehouse Credit Facility (as defined in Footnote 13 “Securitized Debt”) in 2017 and 2016.

⁽²⁾

Decrease in securitized vacation ownership notes receivable reserve and increase in non-securitized vacation ownership notes receivable reserve was attributable to the transfer of the reserve when we voluntarily repurchased defaulted securitized vacation ownership notes receivable.

Recorded Investment in Non-accrual Notes Receivable that are 90 Days or More Past Due



	Legacy-MVW Vacation Ownership Notes Receivable
($ in millions)	Non-Securitized		Securitized		Total
Investment in vacation ownership notes receivable on non-accrual status at year-end 2018	$	36	$	9	$	45
Investment in vacation ownership notes receivable on non-accrual status at year-end 2017	$	39	$	7	$	46
Average investment in vacation ownership notes receivable on non-accrual status during 2018	$	38	$	8	$	46

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 Legacy-MVW vacation ownership notes receivable as of December 31, 2018:



	Legacy-MVW Vacation Ownership Notes Receivable
($ in millions)	Non-Securitized		Securitized		Total
31 – 90 days past due	$	7	$	26	$	33
91 – 150 days past due	3		9		12
Greater than 150 days past due	33		—		33
Total past due	43		35		78
Current	235		1,090		1,325
Total vacation ownership notes receivable	$	278	$	1,125	$	1,403

The following table shows the aging of the recorded investment in principal, before reserves, in Legacy-MVW vacation ownership notes receivable as of December 31, 2017:



	Legacy-MVW Vacation Ownership Notes Receivable
($ in millions)	Non-Securitized		Securitized		Total
31 – 90 days past due	$	7	$	19	$	26
91 – 150 days past due	5		7		12
Greater than 150 days past due	34		—		34
Total past due	46		26		72
Current	313		849		1,162
Total vacation ownership notes receivable	$	359	$	875	$	1,234

The following table shows the aging of the recorded investment in principal, before reserves, in Legacy-ILG originated vacation ownership notes receivable as of December 31, 2018:



	Originated Vacation Ownership Notes Receivable
					Delinquent						Defaulted⁽¹⁾		Total Delinquent & Defaulted
($ in millions)	Receivables		Current		30 - 59 Days		60 - 89 Days		90 - 119 Days		> 120 Days		Total Delinquent & Defaulted
December 31, 2018	$	126	$	124	$	2	$	—	$	—	$	—	$	2

_________________________

⁽¹⁾

Vacation ownership notes receivable equal to or greater than 120 days are considered in default.

Financing Receivable Credit Quality Indicators

The following table shows the Legacy-ILG acquired vacation ownership notes receivable by brand and FICO score as of December 31, 2018:



	Acquired Vacation Ownership Notes Receivable
($ in millions)	700 +		600 - 699		< 600		No Score⁽¹⁾		Total
Westin	$	154	$	82	$	6	$	21	$	263
Sheraton	145		124		21		55		345
Hyatt	20		13		2		—		35
Other	4		1		—		3		8
	$	323	$	220	$	29	$	79	$	651

_________________________


⁽¹⁾	Vacation ownership notes receivable with no FICO score primarily relate to non-U.S. resident borrowers.

The following table shows the Legacy-ILG originated vacation ownership notes receivable by brand and FICO score as of December 31, 2018:



	Originated Vacation Ownership Notes Receivable
($ in millions)	700 +		600 - 699		< 600		No Score⁽¹⁾		Total
Westin	$	43	$	11	$	1	$	7	$	62
Sheraton	28		17		3		9		57
Hyatt	5		2		—		—		7
	$	76	$	30	$	4	$	16	$	126

_________________________

⁽¹⁾

Vacation ownership notes receivable with no FICO score primarily relate to non-U.S. resident borrowers.

FINANCIAL INSTRUMENTS (Tables)

12 Months Ended

Dec. 31, 2018

Investments, All Other Investments [Abstract]

Carrying Values and Estimated Fair Values of Financial Assets and Liabilities



	December 31, 2018						December 31, 2017
($ in millions)	Carrying Amount			Fair Value			Carrying Amount			Fair Value
Originated vacation ownership notes receivable	$	1,388		$	1,413		$	1,115		$	1,276
Other assets	66			66			14			14
	$	1,454		$	1,479		$	1,129		$	1,290

Securitized debt, net	$	(1,694	)	$	(1,698	)	$	(835	)	$	(836	)
Exchange Notes, net	(88		)	(87		)	—			—
Senior Unsecured Notes, net	(741		)	(726		)	—			—
IAC Notes	(141		)	(140		)	—			—
Term Loan, net	(888		)	(887		)	—			—
Convertible notes, net	(199		)	(198		)	(192		)	(260		)
Non-interest bearing note payable, net	(30		)	(30		)	(61		)	(61		)
Other debt, net	(20		)	(20		)	—			—
Other liabilities	(6		)	(6		)	—			—
	$	(3,807	)	$	(3,792	)	$	(1,088	)	$	(1,157	)

Originated Vacation Ownership Notes Receivable



	December 31, 2018				December 31, 2017
($ in millions)	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Originated vacation ownership notes receivable
Securitized	$	1,070	$	1,093	$	814	$	955

Eligible for securitization	85		87		142		162
Not eligible for securitization	233		233		159		159
Non-securitized	318		320		301		321
	$	1,388	$	1,413	$	1,115	$	1,276

EARNINGS PER SHARE (Tables)

12 Months Ended

Dec. 31, 2018

Earnings Per Share [Abstract]

Reconciliation of Earnings and Number of Shares Used in Calculation of Basic and Diluted Earnings Per Share

The table below illustrates the reconciliation of the earnings and number of shares used in our calculation of basic and diluted earnings per share.



Computation of Basic and Diluted Earnings Per Share Attributable to Common Shareholders
(in millions, except per share amounts)	2018⁽¹⁾		2017⁽¹⁾		2016⁽¹⁾
Net income attributable to common shareholders	$	55	$	235	$	122
Shares for basic earnings per share	33.3		27.1		27.9
Basic earnings per share	$	1.64	$	8.70	$	4.37

Net income attributable to common shareholders	$	55	$	235	$	122
Shares for basic earnings per share	33.3		27.1		27.9
Effect of dilutive shares outstanding
Employee stock options and SARs	0.4		0.4		0.3
Restricted stock units	0.3		0.2		0.2
Shares for diluted earnings per share	34.0		27.7		28.4
Diluted earnings per share	$	1.61	$	8.49	$	4.29

_________________________


⁽¹⁾	The computations of diluted earnings per share exclude approximately 165,000, 238,000 and 217,000 shares of common stock, the maximum number of shares issuable as of December 31, 2018, December 31, 2017 and

INVENTORY (Tables)

12 Months Ended

Dec. 31, 2018

Inventory Disclosure [Abstract]

Composition of Inventory

The following table shows the composition of our inventory balances:



($ in millions)	At Year-End 2018		At Year End 2017
Finished goods⁽¹⁾	$	843	$	391
Work-in-progress	9		2
Real estate inventory	852		393
Operating supplies and retail inventory	11		5
	$	863	$	398

_________________________

⁽¹⁾

Represents completed inventory that is either registered for sale as vacation ownership interests, or unregistered and available for sale in its current form.

PROPERTY AND EQUIPMENT (Tables)

12 Months Ended

Dec. 31, 2018

Property, Plant and Equipment [Abstract]

Composition of Property and Equipment

The following table details the composition of our property and equipment balances:



($ in millions)	At Year-End 2018			At Year-End 2017
Land and land improvements	$	466		$	390
Buildings and leasehold improvements	404			259
Furniture, fixtures and other equipment	88			54
Information technology	297			185
Construction in progress	32			23
	1,287			911
Accumulated depreciation	(336		)	(328		)
	$	951		$	583

LEASES (Tables)

12 Months Ended

Dec. 31, 2018

Leases [Abstract]

Summary of Future Obligations Under Operating Leases



($ in millions)	Land Leases		Corporate Facilities Leases		Other Operating Leases		Total
2019	$	2	$	12	$	24	$	38
2020	2		12		19		33
2021	2		8		13		23
2022	2		5		10		17
2023	3		5		8		16
Thereafter	50		19		26		95
Total minimum lease payments	$	61	$	61	$	100	$	222

Composition of Rental Expense Associated with Operating Leases

The following table details the composition of rent expense associated with operating leases, net of sublease income, for the last three years:



($ in millions)	2018		2017		2016
Minimum rentals	$	16	$	9	$	8
Additional rentals	5		4		4
	$	21	$	13	$	12

SECURITIZED DEBT (Tables)

12 Months Ended

Dec. 31, 2018

Schedule of Securitized Vacation Ownership Debt

The following table provides detail on our debt associated with vacation ownership notes receivable securitizations, net of unamortized debt issuance costs:



($ in millions)		At December 31, 2018			At December 31, 2017
Vacation ownership notes receivable securitizations, gross⁽¹⁾		$	962		$	845
Unamortized debt issuance costs		(11		)	(10		)
		951			835
Legacy-ILG
	Vacation ownership notes receivable securitizations⁽²⁾	628			—

Warehouse Credit Facility, gross⁽³⁾		116			—
Unamortized debt issuance costs⁽⁴⁾		(1		)	—
		115			—

		$	1,694		$	835

_________________________


⁽¹⁾	Interest rates as of December 31, 2018 range from 2.2% to 6.3%, with a weighted average interest rate of 2.9%.


⁽²⁾	Interest rates as of December 31, 2018 range from 2.3% to 4.0%, with a weighted average interest rate of 2.9%.


⁽³⁾	The effective interest rate as of December 31, 2018 was 3.5%.

⁽⁴⁾

Excludes $1 million of unamortized debt issuance costs as of December 31, 2017, as no cash borrowings were outstanding at that time.

Scheduled Future Principal Payments for Debt

The following table shows scheduled future principal payments for our vacation ownership notes receivable securitizations as of December 31, 2018:



	Vacation Ownership Notes Receivable Securitizations				Warehouse Credit Facility		Total
($ in millions)	Legacy-MVW		Legacy-ILG		Warehouse Credit Facility		Total
Payments Year
2019	$	98	$	155	$	6	$	259
2020	102		110		7		219
2021	105		82		103		290
2022	107		65		—		172
2023	106		55		—		161
Thereafter	444		161		—		605
	$	962	$	628	$	116	$	1,706

The following table shows scheduled future principal payments for our debt as of December 31, 2018:



($ in millions)	Exchange Notes		Senior Unsecured Notes		IAC Notes		Term Loan		Convertible Notes		Non-Interest Bearing Note Payable		Capital Leases		Other		Total
Payments Year
2019	$	—	$	—	$	—	$	9	$	—	$	31	$	—	$	1	$	41
2020	—		—		—		9		—		—		17		2		28
2021	—		—		—		9		—		—		—		2		11
2022	—		—		—		9		230		—		—		2		241
2023	89		—		141		8		—		—		—		2		240
Thereafter	—		750		—		856		—		—		—		11		1,617
	$	89	$	750	$	141	$	900	$	230	$	31	$	17	$	20	$	2,178

DEBT (Tables)

12 Months Ended

Dec. 31, 2018

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:



($ in millions)		At December 31, 2018			At December 31, 2017
Senior Notes
	Exchange Notes⁽¹⁾	$	89		$	—
	Unamortized debt issuance costs	(1		)	—
		88			—

	Senior Unsecured Notes⁽²⁾	750			—
	Unamortized debt issuance costs	(9		)	—
		741			—

	IAC Notes⁽³⁾	141			—

Corporate Credit Facility
	Term Loan	900			—
	Unamortized debt discount and issuance costs	(12		)	—
		888			—

Convertible notes, gross⁽⁴⁾		230			230
Unamortized debt discount and issuance costs		(31		)	(38		)
		199			192

Non-Interest bearing note payable		31			64
Unamortized debt discount⁽⁵⁾		(1		)	(3		)
		30			61

Capital leases		17			7

Other⁽⁶⁾		20			—

		$	2,124		$	260

_________________________


⁽¹⁾	Interest rate of 5.625%, maturing on April 15, 2023


⁽²⁾	Interest rate of 6.500%, maturing on September 15, 2026


⁽³⁾	Interest rate of 5.625%, maturing on April 15, 2023


⁽⁴⁾	Effective interest rate as of December 31, 2018 was 4.7%


⁽⁵⁾	Debt discount based on imputed interest rate of 6.0%

⁽⁶⁾

Non-recourse

Scheduled Future Principal Payments for Debt

The following table shows scheduled future principal payments for our vacation ownership notes receivable securitizations as of December 31, 2018:



	Vacation Ownership Notes Receivable Securitizations				Warehouse Credit Facility		Total
($ in millions)	Legacy-MVW		Legacy-ILG		Warehouse Credit Facility		Total
Payments Year
2019	$	98	$	155	$	6	$	259
2020	102		110		7		219
2021	105		82		103		290
2022	107		65		—		172
2023	106		55		—		161
Thereafter	444		161		—		605
	$	962	$	628	$	116	$	1,706

The following table shows scheduled future principal payments for our debt as of December 31, 2018:



($ in millions)	Exchange Notes		Senior Unsecured Notes		IAC Notes		Term Loan		Convertible Notes		Non-Interest Bearing Note Payable		Capital Leases		Other		Total
Payments Year
2019	$	—	$	—	$	—	$	9	$	—	$	31	$	—	$	1	$	41
2020	—		—		—		9		—		—		17		2		28
2021	—		—		—		9		—		—		—		2		11
2022	—		—		—		9		230		—		—		2		241
2023	89		—		141		8		—		—		—		2		240
Thereafter	—		750		—		856		—		—		—		11		1,617
	$	89	$	750	$	141	$	900	$	230	$	31	$	17	$	20	$	2,178

Convertible Debt

The following table shows the net carrying value of the Convertible Notes:



($ in millions)	At December 31, 2018			At December 31, 2017
Liability component
Principal amount	$	230		$	230
Unamortized debt discount	(26		)	(32		)
Unamortized debt issuance costs	(5		)	(6		)
Net carrying amount of the liability component	$	199		$	192

Carrying amount of equity component, net of issuance costs	$	33		$	33

The following table shows interest expense information related to the Convertible Notes:



($ in millions)	2018		2017
Contractual interest expense	$	3	$	1
Amortization of debt discount	6		2
Amortization of debt issuance costs	1		—
	$	10	$	3

SHAREHOLDERS' EQUITY (Tables)

12 Months Ended

Dec. 31, 2018

Equity [Abstract]

Stock Repurchase Activity under Current Stock Repurchase Program

The following table summarizes share repurchase activity under our current share repurchase program:



($ in millions, except per share amounts)	Number of Shares Repurchased	Cost of Shares Repurchased		Average Price Paid per Share
As of December 31, 2017	10,440,505	$	697	$	66.73
For the year ended December 31, 2018	1,247,269	96		77.16
As of December 31, 2018	11,687,774	$	793	$	67.85

Cash Dividend Declared

We declared cash dividends to holders of common stock during the year ended December 31, 2018 as follows:



Declaration Date	Shareholder Record Date	Distribution Date	Dividend per Share
February 16, 2018	March 1, 2018	March 15, 2018	$0.40
May 14, 2018	May 28, 2018	June 11, 2018	$0.40
September 6, 2018	September 20, 2018	October 4, 2018	$0.40
December 6, 2018	December 20, 2018	January 3, 2019	$0.45

SHARE-BASED COMPENSATION (Tables)

12 Months Ended

Dec. 31, 2018

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Schedule of Compensation Cost for Share-based Payment

The following table details our share-based compensation expense related to award grants to our officers, directors and employees:



($ in millions)	2018		2017		2016
Service-based RSUs	$	12	$	10	$	9
Performance-based RSUs	7		4		3
ILG Acquisition Converted RSUs⁽¹⁾	13		—		—
	32		14		12
SARs	3		2		2
Stock options	—		—		—
	$	35	$	16	$	14

_________________________

⁽¹⁾

Includes $6 million of share-based compensation expense related to the ILG Cash-Based Awards discussed above.

Schedule of Unrecognized Compensation Cost

The following table details our deferred compensation costs related to unvested awards:



($ in millions)	At Year-End 2018⁽¹⁾		At Year-End 2017
Service-based RSUs	$	16	$	9
Performance-based RSUs	7		5
ILG Acquisition Converted RSUs	15		—
	38		14
SARs	1		1
Stock options	—		—
	$	39	$	15

_________________________

⁽¹⁾

As of December 31, 2018, the weighted average remaining term for RSU grants outstanding at year-end 2018 was one to two years and we expect that deferred compensation expense will be recognized over a weighted average period of one to three years.

Additional Information on Outstanding RSUs Issued to Employees

The following table shows the changes in our outstanding RSUs and the associated weighted average grant-date fair values:



	2018
	Service-based			Performance-based			Total
	Number of RSUs	Weighted Average Grant-Date Fair Value Per RSU		Number of RSUs	Weighted Average Grant-Date Fair Value Per RSU		Number of RSUs	Weighted Average Grant-Date Fair Value Per RSU
Outstanding at year-end 2017	471,007	$	59.49	311,512	$	72.89	782,519	$	64.83
Granted	188,622	$	112.93	71,902	$	138.68	260,524	$	120.04
Converted from ILG Acquisition	447,026	$	117.92	—	$	—	447,026	$	117.92
Distributed	(341,520)	$	97.86	(35,067)	$	75.20	(376,587)	$	95.75
Forfeited	(11,554)	$	91.00	(41,267)	$	74.96	(52,821)	$	78.47
Outstanding at year-end 2018	753,581	$	89.66	307,080	$	87.75	1,060,661	$	89.11

Changes in Outstanding Marriott Vacations Worldwide SARs Issued to Both Marriott International and Marriott Vacations Worldwide Employees and Non-employee Directors

The following table shows the changes in our outstanding SARs and the associated weighted average exercise prices:



	2018
	Number of SARs	Weighted Average Exercise Price Per SAR
Outstanding at year-end 2017	658,453	$	47.63
Granted	56,649	143.38
Exercised	(17,924)	26.30
Forfeited or expired	—	—
Outstanding at year-end 2018⁽¹⁾⁽²⁾	697,178	$	55.96

_________________________


⁽¹⁾	As of December 31, 2018, outstanding SARs had a total intrinsic value of $17 million and a weighted average remaining term of 5 years.

⁽²⁾

As of December 31, 2018, 497,243 SARs with a weighted average exercise price of $39.43, an aggregate intrinsic value of $16 million and a weighted average remaining contractual term of 4 years were exercisable.

Assumptions Used to Estimate Fair Value of Grants

The following table outlines the assumptions used to estimate the fair value of grants in 2018, 2017 and 2016:



	2018	2017	2016
Expected volatility	30.78%	30.41%	31.60%
Dividend yield	1.11%	1.44%	1.96%
Risk-free rate	2.68%	2.06%	1.41%
Expected term (in years)	6.25	6.25	6.25

VARIABLE INTEREST ENTITIES (Tables)

12 Months Ended

Dec. 31, 2018

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Classifications of Consolidated Variable Interest Entities



($ in millions)	Vacation Ownership Notes Receivable Securitizations		Warehouse Credit Facility		Total
Consolidated Assets
Vacation ownership notes receivable, net of reserves	$	1,501	$	126	$	1,627
Interest receivable	10		1		11
Restricted cash	66		3		69
Total	$	1,577	$	130	$	1,707
Consolidated Liabilities
Interest payable	$	2	$	—	$	2
Securitized debt	1,590		116		1,706
Total	$	1,592	$	116	$	1,708

Interest Income and Interest Expense

The following table shows the interest income and expense recognized as a result of our involvement with these variable interest entities during 2018:



($ in millions)	Vacation Ownership Notes Receivable Securitizations		Warehouse Credit Facility		Total
Interest income	$	149	$	2	$	151
Interest expense to investors	$	34	$	2	$	36
Debt issuance cost amortization	$	4	$	1	$	5
Administrative expenses	$	1	$	—	$	1

Cash Flows Between Company and Variable Interest Entities

The following table shows cash flows between us and the vacation ownership notes receivable securitization variable interest entities:



($ in millions)	2018			2017
Cash Inflows
Net proceeds from vacation ownership notes receivable securitizations	$	419		$	346
Principal receipts	322			229
Interest receipts	145			100
Reserve release⁽¹⁾	168			1
Total	1,054			676
Cash Outflows
Principal to investors	(329		)	(215		)
Voluntary repurchases of defaulted vacation ownership notes receivable, net of substitutions	(31		)	(28		)
Voluntary clean-up call	(22		)	—
Interest to investors	(31		)	(19		)
Funding of restricted cash⁽²⁾	(110		)	(2		)
Total	(523		)	(264		)
Net Cash Flows	$	531		$	412

_________________________

⁽¹⁾


⁽²⁾	Includes $106 million of the proceeds from the securitization transaction completed during the second quarter of 2018, which were released when the remaining vacation ownership notes receivable were purchased by the 2018-1 Trust during the third quarter of 2018.

The following table shows cash flows between us and the Warehouse Credit Facility variable interest entity:



($ in millions)	2018			2017
Cash Inflows
Proceeds from vacation ownership notes receivable securitizations	$	116		$	50
Principal receipts	1			2
Interest receipts	1			2
Total	118			54
Cash Outflows
Principal to investors	—			(1		)
Repayment of Warehouse Credit Facility	—			(49		)
Interest to investors	(1		)	(2		)
Funding of restricted cash	(1		)	—
Total	(2		)	(52		)
Net Cash Flows	$	116		$	2

Adjusted EBITDA, Net Income, Depreciation and Amortization

Tabular disclosure of the significant judgments and assumptions made in determining whether a variable interest (as defined) held by the entity requires the variable interest entity (VIE) (as defined) to be consolidated and (or) disclose information about its involvement with the VIE, individually or in aggregate (as applicable); the nature of restrictions, if any, on the consolidated VIE's assets and on the settlement of its liabilities reported by an entity in its statement of financial position, including the carrying amounts of such assets and liabilities; the nature of, and changes in, the risks associated with involvement in the VIE; how involvement with the VIE affects the entity's financial position, financial performance, and cash flows; the lack of recourse if creditors (or beneficial interest holders) of the consolidated VIE have no recourse to the general credit of the primary beneficiary (if applicable); the terms of arrangements, giving consideration to both explicit arrangements and implicit variable interests, if any, that could require the entity to provide financial support to the VIE, including events or circumstances that could expose the entity to a loss; the methodology used by the entity for determining whether or not it is the primary beneficiary of the variable interest entity; the significant factors considered and judgments made in determining that the power to direct the activities of a VIE that most significantly impact the VIE's economic performance are shared (as defined); the carrying amounts and classification of assets and liabilities of the VIE included in the statement of financial position; the entity's maximum exposure to loss, if any, as a result of its involvement with the VIE, including how the maximum exposure is determined and significant sources of the entity's exposure to the VIE; a comparison of the carrying amounts of the assets and liabilities and the entity's maximum exposure to loss; information about any liquidity arrangements, guarantees, and (or) other commitments by third parties that may affect the fair value or risk of the entity's variable interest in the VIE; whether or not the entity has provided financial support or other support (explicitly or implicitly) to the VIE that it was not previously contractually required to provide or whether the entity intends to provide that support, including the type and amount of the support and the primary reasons for providing the support; and supplemental information the entity determines necessary to provide.

+ References + Details

BUSINESS SEGMENTS (Tables)

12 Months Ended

Dec. 31, 2018

Segment Reporting [Abstract]

Revenues



($ in millions)	2018		2017		2016
Vacation Ownership	$	2,803	$	2,183	$	2,000
Exchange & Third-Party Management	161		—		—
Total segment revenues	2,964		2,183		2,000
Corporate and other	4		—		—
	$	2,968	$	2,183	$	2,000

Adjusted EBITDA and Reconciliation to Net Income Attributable to Common Shareholders



($ in millions)	2018			2017			2016
Adjusted EBITDA Vacation Ownership	$	511		$	383		$	326
Adjusted EBITDA Exchange & Third-Party Management	77			—			—
Reconciling items:
Corporate and other	(169		)	(89		)	(89		)
Interest expense	(54		)	(10		)	(9		)
Tax provision	(51		)	(5		)	(76		)
Depreciation and amortization	(62		)	(21		)	(21		)
Share-based compensation expense	(35		)	(16		)	(14		)
Certain items	(162		)	(7		)	5
Net income attributable to common shareholders	$	55		$	235		$	122

Depreciation and Amortization



($ in millions)	2018		2017		2016
Vacation Ownership	$	37	$	17	$	16
Exchange & Third-Party Management	16		—		—
Total segment depreciation	53		17		16
Corporate and other	9		4		5
	$	62	$	21	$	21

Assets



($ in millions)	2018		2017
Vacation Ownership	$	7,275	$	2,279
Exchange & Third-Party Management	1,182		—
Total segment assets	8,457		2,279
Corporate and other	561		566
	$	9,018	$	2,845

Capital Expenditures (including inventory)



($ in millions)	2018		2017		2016
Vacation Ownership	$	245	$	174	$	164
Exchange & Third-Party Management	5		—		—
Total segment capital expenditures	250		174		164
Corporate and other	2		7		9
	$	252	$	181	$	173

Revenue by Geographic Areas

Revenues (excluding cost reimbursements)



($ in millions)	2018		2017		2016
United States	$	1,780	$	1,247	$	1,090
All other countries	263		186		190
	$	2,043	$	1,433	$	1,280

Fixed Assets by Geographic Areas

Fixed Assets



($ in millions)	2018		2017
United States	$	748	$	506
All other countries	203		77
	$	951	$	583

QUARTERLY RESULTS (UNAUDITED) (Tables)

12 Months Ended

Dec. 31, 2018

Quarterly Financial Information Disclosure [Abstract]

Schedule of Quarterly Financial Information



	2018⁽¹⁾
($ in millions, except per share data)	First Quarter			Second Quarter			Third Quarter⁽²⁾			Fourth Quarter			Fiscal Year
Revenues	$	571		$	595		$	750		$	1,052		$	2,968
Expenses	$	(518	)	$	(546	)	$	(698	)	$	(939	)	$	(2,701	)
Net income (loss) attributable to common shareholders	$	36		$	11		$	(36	)	$	44		$	55
Earnings (loss) per share attributable to common shareholders
Basic	$	1.35		$	0.40		$	(1.08	)	$	0.92		$	1.64
Diluted	$	1.32		$	0.39		$	(1.08	)	$	0.91		$	1.61



	2017⁽¹⁾
($ in millions, except per share data)	First Quarter			Second Quarter			Third Quarter			Fourth Quarter			Fiscal Year
Revenues	$	528		$	563		$	530		$	562		$	2,183
Expenses	$	(483	)	$	(489	)	$	(472	)	$	(493	)	$	(1,937	)
Net income attributable to common shareholders	$	28		$	48		$	40		$	119		$	235
Earnings per share attributable to common shareholders
Basic	$	1.02		$	1.76		$	1.49		$	4.46		$	8.70
Diluted	$	1.00		$	1.72		$	1.45		$	4.35		$	8.49

_______________________


⁽¹⁾	The sum of the earnings per share attributable to common shareholders for the four quarters differs from annual earnings per share attributable to common shareholders due to the required method of computing the weighted average shares in interim periods.

⁽²⁾

ADOPTION IMPACT OF NEW REVENUE STANDARD (Tables)

12 Months Ended

Dec. 31, 2018

Schedule of New Accounting Pronouncement

The following tables present the impact of the adoption of the new Revenue Standard on our previously reported historical results for the periods presented.

2017 Income Statement Impact



	2017
($ in millions, except per share amounts)	As Reported			ASC 606 Adjustments			Conforming Reclassifications⁽¹⁾			As Adjusted
REVENUES
Sale of vacation ownership products	$	728		$	29		$	—		$	757
Resort management and other services	306			(27		)	(279		)	—
Management and exchange	—			—			279			279
Rental	323			(61		)	—			262
Financing	135			—			—			135
Cost reimbursements	460			290			—			750
TOTAL REVENUES	1,952			231			—			2,183
EXPENSES
Cost of vacation ownership products	178			16			—			194
Marketing and sales	409			(14		)	(7		)	388
Resort management and other services	172			(17		)	(155		)	—
Management and exchange	—			—			147			147
Rental	281			(58		)	(2		)	221
Financing	18			—			25			43
General and administrative	110			—			(4		)	106
Depreciation and amortization	—			—			21			21
Litigation settlement	4			—			—			4
Consumer financing interest	25			—			(25		)	—
Royalty fee	63			—			—			63
Cost reimbursements	460			290			—			750
TOTAL EXPENSES	1,720			217			—			1,937
Gains and other income, net	6			—			—			6
Interest expense	(10		)	—			—			(10		)
ILG acquisition costs	—			—			(1		)	(1		)
Other	(2		)	—			1			(1		)
INCOME BEFORE INCOME TAXES AND NONCONTROLLING INTERESTS	226			14			—			240
Benefit (provision) for income taxes	1			(6		)	—			(5		)
NET INCOME	227			8			—			235
Net income attributable to noncontrolling interests	—			—			—			—
NET INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS	$	227		$	8		$	—		$	235

EARNINGS PER SHARE ATTRIBUTABLE TO COMMON SHAREHOLDERS
Basic	$	8.38		$	0.32		$	—		$	8.70
Diluted	$	8.18		$	0.31		$	—		$	8.49

_________________________


⁽¹⁾	We have reclassified certain prior year amounts to conform to our current year presentation. See Footnote 1 "Basis of Presentation" for a description of the reclassifications.

2016 Income Statement Impact



	2016
($ in millions, except per share amounts)	As Reported			ASC 606 Adjustments			Conforming Reclassifications⁽¹⁾			As Adjusted
REVENUES
Sale of vacation ownership products	$	638		$	(15	)	$	—		$	623
Resort management and other services	300			(22		)	(278		)	—
Management and exchange	—			—			278			278
Rental	312			(60		)	—			252
Financing	126			1			—			127
Cost reimbursements	432			288			—			720
TOTAL REVENUES	1,808			192			—			2,000
EXPENSES
Cost of vacation ownership products	155			8			—			163
Marketing and sales	353			(13		)	(6		)	334
Resort management and other services	174			(17		)	(157		)	—
Management and exchange	—			—			149			149
Rental	261			(49		)	(2		)	210
Financing	19			—			24			43
General and administrative	105			—			(5		)	100
Depreciation and amortization	—			—			21			21
Litigation settlement	(1		)	—			—			(1		)
Consumer financing interest	24			—			(24		)	—
Royalty fee	61			—			—			61
Cost reimbursements	432			288			—			720
TOTAL EXPENSES	1,583			217			—			1,800
Gains and other income, net	11			—			—			11
Interest expense	(9		)	—			—			(9		)
Other	(4		)	—			—			(4		)
INCOME BEFORE INCOME TAXES AND NONCONTROLLING INTERESTS	223			(25		)	—			198
Provision for income taxes	(86		)	10			—			(76		)
NET INCOME	137			(15		)	—			122
Net income attributable to noncontrolling interests	—			—			—			—
NET INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS	$	137		$	(15	)	$	—		$	122

EARNINGS PER SHARE ATTRIBUTABLE TO COMMON SHAREHOLDERS
Basic	$	4.93		$	(0.56	)	$	—		$	4.37
Diluted	$	4.83		$	(0.54	)	$	—		$	4.29

_________________________


⁽¹⁾	We have reclassified certain prior year amounts to conform to our current year presentation. See Footnote 1 "Basis of Presentation" for a description of the reclassifications.

2017 Balance Sheet Impact



	As of December 31, 2017
($ in millions)	As Reported			ASC 606 Adjustments			Conforming Reclassifications⁽¹⁾			As Adjusted
ASSETS
Cash and cash equivalents	$	409		$	—		$	—		$	409
Restricted cash	82			—			—			82
Accounts receivable, net	154			(62		)	—			92
Vacation ownership notes receivable, net	1,120			(5		)	—			1,115
Inventory	716			12			(330		)	398
Property and equipment	253			—			330			583
Other	172			(6		)	—			166
TOTAL ASSETS	$	2,906		$	(61	)	$	—		$	2,845
LIABILITIES AND EQUITY
Accounts payable	$	145		$	—		$	—		$	145
Advance deposits	63			21			—			84
Accrued liabilities	168			(48		)	—			120
Deferred revenue	98			(29		)	—			69
Payroll and benefits liability	112			—			—			112
Deferred compensation liability	75			—			—			75
Securitized debt	—			—			835			835
Debt, net	1,095			—			(835		)	260
Other	14			—			—			14
Deferred taxes	91			(1		)	—			90
TOTAL LIABILITIES	1,861			(57		)	—			1,804

Preferred stock	—			—			—			—
Common stock	—			—			—			—
Treasury stock	(694		)	—			—			(694		)
Additional paid-in capital	1,189			—			—			1,189
Accumulated other comprehensive income	17			—			—			17
Retained earnings	533			(4		)	—			529
TOTAL EQUITY	1,045			(4		)	—			1,041
TOTAL LIABILITIES AND EQUITY	$	2,906		$	(61	)	$	—		$	2,845

_________________________


⁽¹⁾	We have reclassified certain prior year amounts to conform to our current year presentation. See Footnote 1 "Basis of Presentation" for a description of the reclassifications.

2017 Cash Flow Impact - Operating Activities



	2017
($ in millions)	As Reported			Adjustments			As Adjusted
OPERATING ACTIVITIES
Net income	$	227		$	8		$	235
Adjustments to reconcile net income to net cash and restricted cash provided by operating activities:
Depreciation and amortization of intangibles	21			—			21
Amortization of debt discount and issuance costs	10			—			10
Vacation ownership notes receivable reserve	50			2			52
Share-based compensation	16			—			16
Loss on disposal of property and equipment, net	2			—			2
Deferred income taxes	(66		)	5			(61		)
Net change in assets and liabilities:
Accounts receivable	5			(14		)	(9		)
Vacation ownership notes receivable originations	(467		)	1			(466		)
Vacation ownership notes receivable collections	270			—			270
Inventory	42			3			45
Purchase of vacation ownership units for future transfer to inventory	(34		)	—			(34		)
Other assets	(21		)	—			(21		)
Accounts payable, advance deposits and accrued liabilities	51			(12		)	39
Deferred revenue	2			7			9
Payroll and benefit liabilities	16			—			16
Deferred compensation liability	12			—			12
Other, net	6			—			6
Net cash and restricted cash provided by operating activities	$	142		$	—		$	142

2016 Cash Flow Impact - Operating Activities



	2016
($ in millions)	As Reported			Adjustments			As Adjusted
OPERATING ACTIVITIES
Net income	$	137		$	(15	)	$	122
Adjustments to reconcile net income to net cash and restricted cash provided by operating activities:
Depreciation and amortization of intangibles	21			—			21
Amortization of debt discount and issuance costs	6			—			6
Vacation ownership notes receivable reserve	48			(3		)	45
Share-based compensation	14			—			14
Gain on disposal of property and equipment, net	(11		)	—			(11		)
Deferred income taxes	39			(9		)	30
Net change in assets and liabilities:
Accounts receivable	(29		)	29			—
Vacation ownership notes receivable originations	(357		)	—			(357		)
Vacation ownership notes receivable collections	254			—			254
Inventory	5			(6		)	(1		)
Other assets	11			1			12
Accounts payable, advance deposits and accrued liabilities	(19		)	5			(14		)
Deferred revenue	17			(2		)	15
Payroll and benefit liabilities	(7		)	—			(7		)
Deferred compensation liability	12			—			12
Other liabilities	—			1			1
Other, net	—			(1		)	(1		)
Net cash and restricted cash provided by operating activities	$	141		$	—		$	141

SUPPLEMENTAL GUARANTOR INFORMATION (Tables)

12 Months Ended

Dec. 31, 2018

Guarantees and Product Warranties [Abstract]

Balance Sheet

Condensed Consolidating Balance Sheet



	As of December 31, 2018
($ in millions)	MVW			ILG			Interval Acquisition Corp.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Total Eliminations			MVW Consolidated
Cash and cash equivalents	$	—		$	2		$	11		$	26		$	192		$	—		$	231
Restricted cash	—			—			—			83			300			—			383
Accounts receivable, net	29			—			2			101			194			(2		)	324
Vacation ownership notes receivable, net	—			—			—			176			1,863			—			2,039
Inventory	—			—			—			440			423			—			863
Property and equipment	—			1			—			273			677			—			951
Goodwill	2,828			—			—			—			—			—			2,828
Intangibles, net	—			—			—			1,066			41			—			1,107
Investments in subsidiaries	123			1,446			1,588			(269		)	1,748			(4,636		)	—
Other	(2		)	(7		)	2			126			211			(38		)	292
Total assets	$	2,978		$	1,442		$	1,603		$	2,022		$	5,649		$	(4,676	)	$	9,018

Accounts payable	$	39		$	—		$	—		$	64		$	142		$	—		$	245
Advance deposits	—			—			—			25			88			—			113
Accrued liabilities	13			8			(24		)	135			291			—			423
Deferred revenue	—			—			—			110			209			—			319
Payroll and benefits liability	16			—			—			76			119			—			211
Deferred compensation liability	—			—			—			7			86			—			93
Securitized debt, net	—			—			—			—			1,694			—			1,694
Debt, net	—			—			142			—			1,982			—			2,124
Other	—			—			—			1			11			—			12
Deferred taxes	38			(60		)	87			142			111			—			318
Intercompany liabilities (receivables) / equity	—			(1,272		)	(335		)	(98		)	(2,530		)	4,163			(72		)
MVW shareholders' equity	2,872			2,766			1,733			1,563			3,438			(8,839		)	3,533
Noncontrolling interests	—			—			—			(3		)	8			—			5
Total liabilities and equity	$	2,978		$	1,442		$	1,603		$	2,022		$	5,649		$	(4,676	)	$	9,018

Income Statement

Condensed Consolidating Statement of Income



	122 Days Ended December 31, 2018
($ in millions)	MVW			ILG		Interval Acquisition Corp.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Total Eliminations			MVW Consolidated
Revenues	$	(3	)	$	—	$	—		$	488		$	1,035		$	(7	)	$	1,513
Expenses	(14		)	—		(1		)	(495		)	(888		)	7			(1,391		)
Interest expense	(3		)	—		(2		)	1			(50		)	—			(54		)
ILG acquisition-related costs	(11		)	—		—			—			(47		)	—			(58		)
Equity in earnings from unconsolidated entities	—			—		—			(1		)	—			—			(1		)
Equity in net income of subsidiaries	65			5		9			—			—			(79		)	—
Income tax benefit	(11		)	—		(1		)	2			21			—			11
Net income (loss)	23			5		5			(5		)	71			(79		)	20
Net loss (income) attributable to noncontrolling interests	—			—		—			1			2			—			3
Net income (loss) attributable to common shareholders	$	23		$	5	$	5		$	(4	)	$	73		$	(79	)	$	23

Cash Flow

Condensed Consolidating Statement of Cash Flows



	122 Days Ended December 31, 2018
($ in millions)	MVW			ILG		Interval Acquisition Corp.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Total Eliminations			MVW Consolidated
Net cash, cash equivalents and restricted cash provided by (used in) operating activities	$	120		$	—	$	(2	)	$	17		$	(57	)	$	—		$	78
Net cash, cash equivalents and restricted cash (used in) provided by investing activities	(1		)	2		125			115			(1,586		)	(123		)	(1,468		)
Net cash, cash equivalents and restricted cash (used in) provided by financing activities	(119		)	—		(113		)	(23		)	(221		)	123			(353		)
Cash, cash equivalents and restricted cash, beginning of period	—			—		—			—			2,357			—			2,357
Cash, cash equivalents and restricted cash, end of period	$	—		$	2	$	10		$	109		$	493		$	—		$	614

BASIS OF PRESENTATION (Details) - USD ($) $ in Millions	12 Months Ended
BASIS OF PRESENTATION (Details) - USD ($) $ in Millions	Dec. 31, 2018	Dec. 31, 2017	Dec. 30, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Percent of the assets, liabilities, revenues, expenses and cash flows discussed		100.00%
Fiscal period duration	365 days	366 days	364 days
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Inventory	$ 863	$ 398
Property and equipment	951	583
Securitized debt, net	1,694	835
Securitized debt net	$ 2,124	260
Conforming Reclassifications
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Inventory		(330)
Property and equipment		330
Securitized debt, net		835
Securitized debt net		$ (835)

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Revenue Recognition (Details) $ in Millions	12 Months Ended
	Dec. 31, 2018 USD ($)
Revenue from External Customer [Line Items]
Increase (decrease) in revenue due to change in estimate of variable consideration for performance obligations	$ (4)
Minimum
Revenue from External Customer [Line Items]
Number of days for payments to commence under financing contracts after closing	30 days
Maximum
Revenue from External Customer [Line Items]
Number of days for payments to commence under financing contracts after closing	60 days

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Inventory and Capitalized Costs (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 30, 2016
Accounting Policies [Abstract]
Increase in carrying value of inventories	$ 6	$ 1	$ 15
Capitalized salaries and related costs	$ 6	$ 6	$ 6

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Defined Contribution Plan and Deferred Compensation Plan (Details) - USD ($)	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 30, 2016
Accounting Policies [Abstract]
Defined contribution plan, cost	$ 11,000,000	$ 10,000,000	$ 8,000,000
EDC \| Marriott International
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Annual rate of return	3.90%	4.00%
Additional discretionary contributions	$ 0	$ 0	$ 0
Deferred Compensation Plan \| Stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Annual rate of return	3.50%	3.50%
Minimum required fixed rate of return (at least)		25.00%

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Property and Equipment (Details)	12 Months Ended
	Dec. 31, 2018
Minimum
Property, Plant and Equipment [Line Items]
Estimated useful lives of the assets	3 years
Maximum
Property, Plant and Equipment [Line Items]
Estimated useful lives of the assets	40 years

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Cash and Cash Equivalents, Restricted Cash (Details)	12 Months Ended
	Dec. 31, 2018
Maximum
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Highly liquid investments maturity period	3 months

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Accounts Receivable (Details)	12 Months Ended
	Dec. 31, 2018
Financing Receivable, Impaired [Line Items]
Threshold period past due for general reserve factor of trade accounts receivable	120 days
Threshold period past due for write-off of trade accounts receivable	180 days

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Loan Loss Reserves and Costs Incurred to Sell Vacation Ownership Products (Details) $ in Millions	12 Months Ended
	Dec. 31, 2018 USD ($) credit_score	Dec. 31, 2017 USD ($)
Legacy MVW
Condensed Balance Sheet Statements, Captions [Line Items]
Period in which loan considered past due	30 days
Period in which loan suspend accrual of interest	90 days
Period in which loan considered default loan	150 days
Average Estimated Rate Of Default For All Outstanding Loans	7.01%	7.16%
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	$ 7	$ 6
Legacy ILG
Condensed Balance Sheet Statements, Captions [Line Items]
Average Estimated Rate Of Default For All Outstanding Loans	12.37%
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	$ 1
Weighted average FICO score within originated loan pool \| credit_score	710

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Derivative Instruments (Details)	Dec. 31, 2018 USD ($)
Warehouse Credit Facility
Debt Instrument [Line Items]
Line of credit facility, maximum borrowing capacity	$ 250,000,000

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Share-Based Compensation Costs (Details)	12 Months Ended
	Dec. 31, 2018
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock awards, vesting period	4 years
Performance-based RSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock awards, vesting period	3 years
Employees and Non Employee Directors \| SARs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock awards, vesting period	4 years
Stock awards, expiration from grant date	10 years

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Convertible Senior Notes (Details)	Sep. 30, 2017
Convertible Notes \| Convertible Notes
Debt Instrument [Line Items]
Debt, stated interest rate	1.50%

ACQUISITIONS AND DISPOSITIONS - Additional Information (Details) $ / shares in Units, $ in Millions, $ in Millions		3 Months Ended							12 Months Ended
	Sep. 01, 2018 USD ($) $ / shares	Dec. 31, 2018 USD ($) vacation_ownership_unit	Mar. 31, 2018 USD ($) vacation_ownership_unit	Sep. 30, 2017 USD ($) vacation_ownership_unit	Jun. 30, 2017 USD ($) vacation_ownership_unit	Jun. 17, 2016 USD ($) room	Jun. 17, 2016 AUD ($) room	Mar. 25, 2016 USD ($)	Dec. 31, 2018 USD ($) vacation_ownership_unit Property	Dec. 31, 2017 USD ($)	Dec. 31, 2017 AUD ($)	Dec. 30, 2016 USD ($)
Business Acquisition [Line Items]
Number of hotels acquired \| Property									4
Business combinations, pro forma, acquisition-related costs									$ 28	$ 197
Number of vacation ownership units acquired \| vacation_ownership_unit		92							92
Purchase of vacation ownership units for future transfer to inventory									$ 0	34		$ 0
Non-cash issuance of debt in connection with acquisition of vacation ownership units									0	64		0
Disposition of subsidiary shares to noncontrolling interest holder									51
Disposition of subsidiary shares to noncontrolling interest holder									$ 40	0		0
San Francisco, California
Business Acquisition [Line Items]
Number of units disposed of (in rooms) \| room						19	19
Cash proceeds from disposal						$ 20
Gain on sale of property												$ 11
Marco Island, Florida
Business Acquisition [Line Items]
Number of vacation ownership units acquired \| vacation_ownership_unit			20		36
Payments to acquire real estate		$ 83	$ 24
Purchase of vacation ownership units for future transfer to inventory					$ 34
Bali, Indonesia Resort One
Business Acquisition [Line Items]
Number of vacation ownership units acquired \| vacation_ownership_unit				51
Asset acquisition, consideration transferred				$ 24
Asset acquisition, recognized identifiable assets acquired, inventory				22
Asset acquisition, recognized identifiable assets acquired, property and equipment				$ 2
Big Island Of Hawaii
Business Acquisition [Line Items]
Number of vacation ownership units acquired \| vacation_ownership_unit					112
Payments to acquire real estate					$ 27
Noncash transaction, value of consideration					1
Non-cash issuance of debt in connection with acquisition of vacation ownership units					$ 64
Miami, Florida
Business Acquisition [Line Items]
Consideration transferred, net of cash acquired								$ 24
Cash payments to acquire business								$ 24
Surfers Paradise, Australia
Business Acquisition [Line Items]
Cash proceeds from disposal						51	$ 71
Gain on sale of property										$ 1	$ 1
Maximum \| Surfers Paradise, Australia
Business Acquisition [Line Items]
Guarantee of net operating income						$ 2	$ 3
ILG, Inc
Business Acquisition [Line Items]
Business combination, share conversion ratio	0.165
Business combination, share price (in usd per share) \| $ / shares	$ 119.00
Consideration transferred, net of cash acquired	$ 4,185
ILG, Inc \| Minimum
Business Acquisition [Line Items]
Vacation ownership product, financing term									5 years
ILG, Inc \| Maximum
Business Acquisition [Line Items]
Vacation ownership product, financing term									15 years
ILG, Inc \| ILG, Inc
Business Acquisition [Line Items]
Business combination, share price (in usd per share) \| $ / shares	$ 14.75
VRI Europe Limited
Business Acquisition [Line Items]
Percentage of voting interests acquired	75.50%
Disposition of subsidiary shares to noncontrolling interest holder		63
Receivable VRI Europe		6							$ 6
Notes receivable		17							$ 17
Disposition of subsidiary shares to noncontrolling interest holder		$ 40

ACQUISITIONS AND DISPOSITIONS - Deferred Revenue Narrative (Details) - Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-01-01	Dec. 31, 2018
Business Acquisition [Line Items]
Expected timing of satisfaction, period	2 years
Minimum \| Sale of vacation ownership products
Business Acquisition [Line Items]
Expected timing of satisfaction, period	1 year
Maximum \| Sale of vacation ownership products
Business Acquisition [Line Items]
Expected timing of satisfaction, period	5 years

ACQUISITIONS AND DISPOSITIONS - Consideration Transferred (Details) - ILG, Inc $ / shares in Units, shares in Millions, $ in Millions	Sep. 01, 2018 USD ($) $ / shares shares
Business Acquisition [Line Items]
Equivalent shares of Marriott Vacations Worldwide common stock issued in exchange for ILG outstanding shares (in shares) \| shares	20.5
Marriott Vacations Worldwide common stock price as of Acquisition Date (in dollars per share) \| $ / shares	$ 119.00
Fair value of Marriott Vacations Worldwide common stock issued in exchange for ILG outstanding shares	$ 2,441
Cash consideration to ILG shareholders, net of cash acquired of $154 million	1,680
Fair value of ILG equity-based awards attributed to pre-combination service	64
Total consideration transferred, net of cash acquired	4,185
Noncontrolling interests	29
Total shareholder equity	4,214
Cash acquired from acquisition	$ 154

ACQUISITIONS AND DISPOSITIONS - Preliminary Fair Values of Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Millions	Sep. 01, 2018	Dec. 31, 2018	Dec. 31, 2017
As adjusted
Goodwill		$ 2,828	$ 0
ILG, Inc
As previously reported
Vacation ownership notes receivable	$ 753
Inventory	474
Property and equipment	374
Intangible assets	1,166
Other assets	620
Deferred revenue	(217)
Deferred taxes	(179)
Debt	(392)
Securitized debt from VIEs	(702)
Other liabilities	(511)
Net assets acquired	1,386
Assets acquired	4,214
Adjustments
Vacation ownership notes receivable	17
Inventory	(20)
Property and equipment	(10)
Intangible assets	(57)
Other assets	39
Deferred revenue	0
Deferred taxes	(5)
Debt	0
Securitized debt from VIEs	(6)
Other liabilities	(35)
Net assets acquired	(77)
Goodwill	81
Assets acquired	4
As adjusted
Vacation ownership notes receivable	753
Inventory	474
Property and equipment	374
Intangible assets	1,166
Other assets	620
Deferred revenue	(217)
Deferred taxes	(179)
Debt	(392)
Securitized debt from VIEs	(702)
Other liabilities	(511)
Goodwill	2,828
Previously Reported \| ILG, Inc
As previously reported
Vacation ownership notes receivable	736
Inventory	494
Property and equipment	384
Intangible assets	1,223
Other assets	581
Deferred revenue	(217)
Deferred taxes	(174)
Debt	(392)
Securitized debt from VIEs	(696)
Other liabilities	(476)
Net assets acquired	1,463
Assets acquired	4,210
As adjusted
Vacation ownership notes receivable	736
Inventory	494
Property and equipment	384
Intangible assets	1,223
Other assets	581
Deferred revenue	(217)
Deferred taxes	(174)
Debt	(392)
Securitized debt from VIEs	(696)
Other liabilities	(476)
Goodwill	2,747
Goodwill Adjustment \| ILG, Inc
Adjustments
Goodwill	$ 30

ACQUISITIONS AND DISPOSITIONS ACQUISITIONS AND DISPOSITIONS - Goodwill (Details) $ in Millions	Dec. 31, 2018 USD ($)
Business Acquisition [Line Items]
Goodwill	$ 2,828
Vacation Ownership
Business Acquisition [Line Items]
Goodwill	2,448
Exchange & Third-Party Management
Business Acquisition [Line Items]
Goodwill	$ 380

ACQUISITIONS AND DISPOSITIONS - Intangible Assets (Details) - ILG, Inc $ in Millions	Sep. 01, 2018 USD ($)
Business Acquisition [Line Items]
Intangible assets	$ 1,166
Management contracts
Business Acquisition [Line Items]
Estimated Fair Value	33
Trade names and trademarks
Business Acquisition [Line Items]
Estimated Fair Value	82
Member relationships
Business Acquisition [Line Items]
Estimated Fair Value	$ 695
Member relationships \| Minimum
Business Acquisition [Line Items]
Estimated Useful Life	15 years
Member relationships \| Maximum
Business Acquisition [Line Items]
Estimated Useful Life	20 years
Management contracts
Business Acquisition [Line Items]
Estimated Fair Value	$ 356
Management contracts \| Minimum
Business Acquisition [Line Items]
Estimated Useful Life	15 years
Management contracts \| Maximum
Business Acquisition [Line Items]
Estimated Useful Life	25 years

ACQUISITIONS AND DISPOSITIONS - Pro Forma Results of Operations (Details) - ILG, Inc - USD ($) $ / shares in Units, $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Business Acquisition [Line Items]
Revenues	$ 4,216	$ 3,927
Net income	192	191
Net income attributable to common stockholders	$ 193	$ 189
EARNINGS PER SHARE ATTRIBUTABLE TO COMMON SHAREHOLDERS
Basic (in usd per share)	$ 4.10	$ 3.96
Diluted (in usd per share)	$ 4.00	$ 3.88

ACQUISITIONS AND DISPOSITIONS - ILG Results of Operations (Details) - ILG, Inc $ in Millions	4 Months Ended
	Dec. 31, 2018 USD ($)
Business Acquisition [Line Items]
Revenue	$ 568
Net loss	$ (5)

REVENUE - Additional Information (Details) - USD ($)	12 Months Ended
REVENUE - Additional Information (Details) - USD ($)	Dec. 31, 2018	Dec. 31, 2017
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Contract with customer, performance obligation, decrease in revenue	$ (4,000,000)
Contract with customer, contract assets	0	$ 0
Contract with customer, liability, revenue recognized	$ 117,000,000
Minimum
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Number of days for payments to commence under financing contracts after closing	30 days
Maximum
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Number of days for payments to commence under financing contracts after closing	60 days

REVENUE - Revenue with Customers (Details) - USD ($) $ in Millions	3 Months Ended								4 Months Ended	12 Months Ended
	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2018	Dec. 31, 2018	Dec. 31, 2017	Dec. 30, 2016
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Revenues										$ 2,785	$ 2,048	$ 1,873
Cost reimbursements										925	750	720
Financing										183	135	127
TOTAL REVENUES	$ 1,052	$ 750	$ 595	$ 571	$ 562	$ 530	$ 563	$ 528	$ 1,513	2,968	2,183	2,000
Vacation Ownership
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Revenues										2,621	2,048	1,873
Cost reimbursements										920	750	720
Financing										182	135	127
TOTAL REVENUES										2,803	2,183	2,000
Exchange & Third-Party Management
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Revenues										160	0	0
Cost reimbursements										33	0	0
Financing										1	0	0
TOTAL REVENUES										161	0	0
Sale of vacation ownership products
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Revenues										990	757	623
Sale of vacation ownership products \| Vacation Ownership
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Revenues										990	757	623
Sale of vacation ownership products \| Exchange & Third-Party Management
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Revenues										0	0	0
Ancillary revenues
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Revenues										161	118	124
Ancillary revenues \| Vacation Ownership
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Revenues										160	118	124
Ancillary revenues \| Exchange & Third-Party Management
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Revenues										1	0	0
Management fee revenues
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Revenues										140	89	84
Management fee revenues \| Vacation Ownership
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Revenues										114	89	84
Management fee revenues \| Exchange & Third-Party Management
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Revenues										30	0	0
Other services revenues
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Revenues										198	72	70
Other services revenues \| Vacation Ownership
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Revenues										85	72	70
Other services revenues \| Exchange & Third-Party Management
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Revenues										78	0	0
Management and exchange
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Revenues										499	279	278
Management and exchange \| Vacation Ownership
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Revenues										359	279	278
Management and exchange \| Exchange & Third-Party Management
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Revenues										109	0	0
Rental
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Revenues										371	262	252
Rental \| Vacation Ownership
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Revenues										352	262	252
Rental \| Exchange & Third-Party Management
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Revenues										18	0	0
Corporate and other
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Revenues										4	0	0
Cost reimbursements										(28)	0	0
Financing										0	0	0
TOTAL REVENUES										4	0	0
Corporate and other \| Sale of vacation ownership products
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Revenues										0	0	0
Corporate and other \| Ancillary revenues
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Revenues										0	0	0
Corporate and other \| Management fee revenues
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Revenues										(4)	0	0
Corporate and other \| Other services revenues
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Revenues										35	0	0
Corporate and other \| Management and exchange
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Revenues										31	0	0
Corporate and other \| Rental
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Revenues										$ 1	$ 0	$ 0

REVENUE - Timing of Revenue from Contracts with Customers (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 30, 2016
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Revenues	$ 2,785	$ 2,048	$ 1,873
Vacation Ownership
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Revenues	2,621	2,048	1,873
Exchange & Third-Party Management
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Revenues	160	0	0
Services transferred over time
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Revenues	1,566	1,149	1,104
Services transferred over time \| Vacation Ownership
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Revenues	1,467	1,149	1,104
Services transferred over time \| Exchange & Third-Party Management
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Revenues	95	0	0
Goods or services transferred at a point in time
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Revenues	1,219	899	769
Goods or services transferred at a point in time \| Vacation Ownership
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Revenues	1,154	899	769
Goods or services transferred at a point in time \| Exchange & Third-Party Management
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Revenues	65	0	0
Corporate and other
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Revenues	4	0	0
Corporate and other \| Services transferred over time
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Revenues	4	0	0
Corporate and other \| Goods or services transferred at a point in time
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Revenues	$ 0	$ 0	$ 0

REVENUE - Contracts with Customers, Assets and Liabilities (Details) - USD ($) $ in Millions	Dec. 31, 2018	Dec. 31, 2017
Receivables
Accounts receivable	$ 68	$ 73
Vacation ownership notes receivable, net	2,039	1,115
Receivables	2,107	1,188
Contract Liabilities
Contract Liabilities	432	153
Advance deposits
Contract Liabilities
Contract Liabilities	113	84
Deferred revenue
Contract Liabilities
Contract Liabilities	$ 319	$ 69

REVENUE - Remaining performance obligation narrative (Details) - Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-01-01	Dec. 31, 2018
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Revenue remaining performance obligation expected timing percentage	90.00%
Expected timing of satisfaction, period	2 years

INCOME TAXES - Additional Information (Details) - USD ($)	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 30, 2016
Income Taxes [Line Items]
Decrease in income tax expense		$ 65,000,000
Decrease net deferred tax liability		65,000,000
Change In tax rate deferred tax liability provisional income tax expense	$ 1,000,000
Share-based compensation, excess tax benefit	2,000,000	6,000,000
Change in valuation allowance	9,000,000	(4,000,000)	$ 2,000,000
Deferred tax liabilities, undistributed foreign earnings	3,000,000
Net operating loss carry forwards, subject to expiration	1,000,000
Net operating loss carry-forwards	59,000,000	39,000,000
Tax Credit Carryforwards, AMT	14,000,000
Tax credit carryforward	24,000,000	$ 40,000,000
Foreign
Income Taxes [Line Items]
Net operating loss carry-forwards	48,000,000
Tax credit carryforward	1,000,000
Federal
Income Taxes [Line Items]
Net operating loss carry-forwards	1,000,000
Tax credit carryforward	4,000,000
State
Income Taxes [Line Items]
Net operating loss carry-forwards	2,000,000
Tax credit carryforward	5,000,000
State \| Capital Loss Carryforward
Income Taxes [Line Items]
Tax credit carryforward	$ 10,000,000
Minimum
Income Taxes [Line Items]
Income tax holiday period	10 years
Maximum
Income Taxes [Line Items]
Income tax holiday period	30 years
Previous Accounting Guidance
Income Taxes [Line Items]
Share-based compensation, excess tax benefit			$ 1,000,000
ILG, Inc
Income Taxes [Line Items]
Change in valuation allowance	$ 53,000,000

INCOME TAXES - Provision Taxes by Geographic Region (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 30, 2016
Income Tax Disclosure [Abstract]
United States	$ 108	$ 232	$ 195
Non-U.S. jurisdictions	(5)	8	3
INCOME BEFORE INCOME TAXES	$ 103	$ 240	$ 198

INCOME TAXES - Provision for Income Taxes (Details) - USD ($) $ in Millions	4 Months Ended	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2018	Dec. 31, 2017	Dec. 30, 2016
Current:
– U.S. Federal		$ 17	$ (49)	$ (35)
– U.S. State		(1)	(7)	(5)
– Non-U.S.		(10)	(7)	(5)
Current Income Tax Expense (Benefit)		6	(63)	(45)
Deferred:
– U.S. Federal		(46)	44	(30)
– U.S. State		(9)	(1)	(2)
– Non-U.S.		(2)	15	1
Deferred income taxes		(57)	58	(31)
Provision for income taxes	$ (11)	$ (51)	$ (5)	$ (76)

INCOME TAXES - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Millions	Dec. 31, 2018	Dec. 31, 2017
Deferred Tax Assets
Inventory	$ 145	$ 38
Reserves	84	26
Deferred revenue	22	1
Property and equipment	54	12
Long lived intangible assets	0	24
Net operating loss carry-forwards	59	39
Tax credits	24	40
Other, net	21	17
Deferred tax assets	409	197
Less valuation allowance	(106)	(44)
Net deferred tax assets	303	153
Deferred Tax Liabilities
Property and equipment	(234)	0
Deferred sales of vacation ownership interests	(377)	(230)
Deferred tax liabilities	(611)	(230)
Total net deferred tax liabilities	$ (308)	$ (77)

INCOME TAXES - Reconciliation of US Statutory Income Tax Rate to Effective Tax Rate (Details)	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 30, 2016
Income Tax Disclosure [Abstract]
U.S. statutory income tax rate	21.00%	35.00%	35.00%
U.S. state income taxes, net of U.S. federal tax benefit	4.23%	2.50%	2.47%
Permanent differences	2.78%	(0.58%)	1.16%
Transaction costs	4.68%	0.00%	0.00%
Impact related to the Tax Act	1.23%	(27.12%)	0.00%
Impact of non-deductible executive compensation(3)	3.60%	(2.54%)	0.00%
Foreign tax rate changes	(0.11%)	(2.01%)	0.05%
Non-U.S. income (loss)	3.90%	(2.61%)	0.08%
Other items	(0.11%)	(0.79%)	(1.06%)
Change in valuation allowance	8.60%	0.03%	0.78%
Effective rate	49.80%	1.88%	38.48%

VACATION OWNERSHIP NOTES RECEIVABLE - Composition of Vacation Ownership Notes Receivable Balances, Net of Reserves (Details) - USD ($) $ in Millions	Dec. 31, 2018	Dec. 31, 2017
Accounts, Notes, Loans and Financing Receivable [Line Items]
Vacation ownership notes receivable, net	$ 2,039	$ 1,115
Securitized
Accounts, Notes, Loans and Financing Receivable [Line Items]
Vacation ownership notes receivable, net	1,627	814
Eligible for securitization
Accounts, Notes, Loans and Financing Receivable [Line Items]
Vacation ownership notes receivable, net	107	142
Not eligible for securitization
Accounts, Notes, Loans and Financing Receivable [Line Items]
Vacation ownership notes receivable, net	305	159
Non-Securitized
Accounts, Notes, Loans and Financing Receivable [Line Items]
Vacation ownership notes receivable, net	412	301
Originated
Accounts, Notes, Loans and Financing Receivable [Line Items]
Vacation ownership notes receivable, net	1,388	1,115
Originated \| Securitized
Accounts, Notes, Loans and Financing Receivable [Line Items]
Vacation ownership notes receivable, net	1,070	814
Originated \| Eligible for securitization
Accounts, Notes, Loans and Financing Receivable [Line Items]
Vacation ownership notes receivable, net	85	142
Originated \| Not eligible for securitization
Accounts, Notes, Loans and Financing Receivable [Line Items]
Vacation ownership notes receivable, net	233	159
Originated \| Non-Securitized
Accounts, Notes, Loans and Financing Receivable [Line Items]
Vacation ownership notes receivable, net	318	301
Acquired
Accounts, Notes, Loans and Financing Receivable [Line Items]
Vacation ownership notes receivable, net	651	0
Acquired \| Securitized
Accounts, Notes, Loans and Financing Receivable [Line Items]
Vacation ownership notes receivable, net	557	0
Acquired \| Eligible for securitization
Accounts, Notes, Loans and Financing Receivable [Line Items]
Vacation ownership notes receivable, net	22	0
Acquired \| Not eligible for securitization
Accounts, Notes, Loans and Financing Receivable [Line Items]
Vacation ownership notes receivable, net	72	0
Acquired \| Non-Securitized
Accounts, Notes, Loans and Financing Receivable [Line Items]
Vacation ownership notes receivable, net	$ 94	$ 0

VACATION OWNERSHIP NOTES RECEIVABLE - Interest Income Associated With Vacation Ownership Notes Receivable (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 30, 2016
Accounts, Notes, Loans and Financing Receivable [Line Items]
Interest income	$ 175	$ 128	$ 120
Securitized
Accounts, Notes, Loans and Financing Receivable [Line Items]
Interest income	151	101	97
Non-Securitized
Accounts, Notes, Loans and Financing Receivable [Line Items]
Interest income	$ 24	$ 27	$ 23

VACATION OWNERSHIP NOTES RECEIVABLE - Accretable Yield (Details) - Acquired $ in Millions	4 Months Ended
	Dec. 31, 2018 USD ($)
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield Movement Schedule [Roll Forward]
Balance at Acquisition Date	$ 0
Acquired accretable yield	233
Accretion of acquired vacation ownership notes receivable	(32)
Reclassification from non-accretable difference	(2)
Balance at end of period	199
Non-accretable difference	$ 68

VACATION OWNERSHIP NOTES RECEIVABLE - Future Principal Payments, Net of Reserves, and Interest Rates of Vacation Ownership Notes Receivable (Details) $ in Millions	Dec. 31, 2018 USD ($)
Acquired
Future Minimum Payments Receivable [Line Items]
2019	$ 66
2020	67
2021	70
2022	70
2023	69
Thereafter	309
Total Vacation ownership notes receivable, net of reserve	$ 651
Acquired \| Weighted Average
Future Minimum Payments Receivable [Line Items]
Interest rates	13.40%
Acquired \| Minimum
Future Minimum Payments Receivable [Line Items]
Interest rates	0.00%
Acquired \| Maximum
Future Minimum Payments Receivable [Line Items]
Interest rates	17.90%
Acquired \| Non-Securitized
Future Minimum Payments Receivable [Line Items]
2019	$ 9
2020	8
2021	9
2022	9
2023	9
Thereafter	50
Total Vacation ownership notes receivable, net of reserve	$ 94
Acquired \| Non-Securitized \| Weighted Average
Future Minimum Payments Receivable [Line Items]
Interest rates	13.40%
Acquired \| Non-Securitized \| Minimum
Future Minimum Payments Receivable [Line Items]
Interest rates	0.00%
Acquired \| Non-Securitized \| Maximum
Future Minimum Payments Receivable [Line Items]
Interest rates	17.90%
Acquired \| Securitized
Future Minimum Payments Receivable [Line Items]
2019	$ 57
2020	59
2021	61
2022	61
2023	60
Thereafter	259
Total Vacation ownership notes receivable, net of reserve	$ 557
Acquired \| Securitized \| Weighted Average
Future Minimum Payments Receivable [Line Items]
Interest rates	13.40%
Acquired \| Securitized \| Minimum
Future Minimum Payments Receivable [Line Items]
Interest rates	6.00%
Acquired \| Securitized \| Maximum
Future Minimum Payments Receivable [Line Items]
Interest rates	17.90%
Originated
Future Minimum Payments Receivable [Line Items]
2019	$ 156
2020	146
2021	144
2022	143
2023	141
Thereafter	658
Total Vacation ownership notes receivable, net of reserve	$ 1,388
Originated \| Weighted Average
Future Minimum Payments Receivable [Line Items]
Interest rates	12.40%
Originated \| Minimum
Future Minimum Payments Receivable [Line Items]
Interest rates	0.00%
Originated \| Maximum
Future Minimum Payments Receivable [Line Items]
Interest rates	18.00%
Originated \| Non-Securitized
Future Minimum Payments Receivable [Line Items]
2019	$ 52
2020	38
2021	32
2022	28
2023	25
Thereafter	143
Total Vacation ownership notes receivable, net of reserve	$ 318
Originated \| Non-Securitized \| Weighted Average
Future Minimum Payments Receivable [Line Items]
Interest rates	11.80%
Originated \| Non-Securitized \| Minimum
Future Minimum Payments Receivable [Line Items]
Interest rates	0.00%
Originated \| Non-Securitized \| Maximum
Future Minimum Payments Receivable [Line Items]
Interest rates	18.00%
Originated \| Securitized
Future Minimum Payments Receivable [Line Items]
2019	$ 104
2020	108
2021	112
2022	115
2023	116
Thereafter	515
Total Vacation ownership notes receivable, net of reserve	$ 1,070
Originated \| Securitized \| Weighted Average
Future Minimum Payments Receivable [Line Items]
Interest rates	12.50%
Originated \| Securitized \| Minimum
Future Minimum Payments Receivable [Line Items]
Interest rates	5.20%
Originated \| Securitized \| Maximum
Future Minimum Payments Receivable [Line Items]
Interest rates	17.50%

VACATION OWNERSHIP NOTES RECEIVABLE - Notes Receivable Reserves (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 30, 2016
Time Sharing Transactions, Allowance for Uncollectible Accounts [Roll Forward]
Beginning balance	$ 119	$ 112	$ 108
Increase in vacation ownership notes receivable reserve	64	52	44
Securitizations	0	0	0
Clean-up call	0	0	0
Write-offs	(43)	(45)	(40)
Defaulted vacation ownership notes receivable repurchase activity	0	0	0
Ending balance	140	119	112
Non-Securitized
Time Sharing Transactions, Allowance for Uncollectible Accounts [Roll Forward]
Beginning balance	58	58	59
Increase in vacation ownership notes receivable reserve	57	42	27
Securitizations	(39)	(29)	(28)
Clean-up call	1	4	10
Write-offs	(43)	(45)	(40)
Defaulted vacation ownership notes receivable repurchase activity	27	28	30
Ending balance	61	58	58
Securitized
Time Sharing Transactions, Allowance for Uncollectible Accounts [Roll Forward]
Beginning balance	61	54	49
Increase in vacation ownership notes receivable reserve	7	10	17
Securitizations	39	29	28
Clean-up call	(1)	(4)	(10)
Write-offs	0	0	0
Defaulted vacation ownership notes receivable repurchase activity	(27)	(28)	(30)
Ending balance	$ 79	$ 61	$ 54

VACATION OWNERSHIP NOTES RECEIVABLE - Recorded Investment in Non-accrual Notes Receivable that are Ninety Days or More Past Due (Details) - Legacy MVW - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Financing Receivable, Recorded Investment, Past Due [Line Items]
Investment in notes receivable on non-accrual status	$ 45	$ 46
Average investment in notes receivable on non-accrual status	46
Non-Securitized
Financing Receivable, Recorded Investment, Past Due [Line Items]
Investment in notes receivable on non-accrual status	36	39
Average investment in notes receivable on non-accrual status	38
Securitized
Financing Receivable, Recorded Investment, Past Due [Line Items]
Investment in notes receivable on non-accrual status	9	$ 7
Average investment in notes receivable on non-accrual status	$ 8

VACATION OWNERSHIP NOTES RECEIVABLE - Aging of Recorded Investment in Principal, Vacation Ownership Notes Receivable (Details) - Legacy MVW - USD ($) $ in Millions	Dec. 31, 2018	Dec. 31, 2017
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	$ 78	$ 72
Current	1,325	1,162
Total vacation ownership notes receivable	1,403	1,234
Non-Securitized
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	43	46
Current	235	313
Total vacation ownership notes receivable	278	359
Securitized
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	35	26
Current	1,090	849
Total vacation ownership notes receivable	1,125	875
31 – 90 days past due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	33	26
31 – 90 days past due \| Non-Securitized
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	7	7
31 – 90 days past due \| Securitized
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	26	19
91 – 150 days past due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	12	12
91 – 150 days past due \| Non-Securitized
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	3	5
91 – 150 days past due \| Securitized
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	9	7
Greater than 150 days past due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	33	34
Greater than 150 days past due \| Non-Securitized
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	33	34
Greater than 150 days past due \| Securitized
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	$ 0	$ 0

VACATION OWNERSHIP NOTES RECEIVABLE - Legacy-ILG Vacation Ownership Notes Receivable (Details) - Legacy ILG - Originated - ILG $ in Millions	Dec. 31, 2018 USD ($)
Accounts, Notes, Loans and Financing Receivable [Line Items]
Receivables	$ 126
Current	124
Delinquent & Defaulted	2
30-59 Days
Accounts, Notes, Loans and Financing Receivable [Line Items]
Delinquent & Defaulted	2
60-89 Days
Accounts, Notes, Loans and Financing Receivable [Line Items]
Delinquent & Defaulted	0
90-119 Days
Accounts, Notes, Loans and Financing Receivable [Line Items]
Delinquent & Defaulted	0
Greater than 120 Days
Accounts, Notes, Loans and Financing Receivable [Line Items]
Delinquent & Defaulted	$ 0

FINANCIAL INSTRUMENTS - Financial Assets and Liabilities (Details) - USD ($) $ in Millions	Dec. 31, 2018	Dec. 31, 2017
Carrying Amount
Total financial assets
Originated vacation ownership notes receivable	$ 1,388	$ 1,115
Other assets	66	14
Total financial assets	1,454	1,129
Total financial liabilities
Other liabilities	(6)	0
Total financial liabilities	(3,807)	(1,088)
Carrying Amount \| Securitized debt
Total financial liabilities
Debt instrument	(1,694)	(835)
Carrying Amount \| Other
Total financial liabilities
Debt instrument	(20)	0
Carrying Amount \| Exchange Notes
Total financial liabilities
Debt instrument	(88)	0
Carrying Amount \| Senior Unsecured Notes
Total financial liabilities
Debt instrument	(741)	0
Carrying Amount \| IAC Notes
Total financial liabilities
Debt instrument	(141)	0
Carrying Amount \| Convertible Notes
Total financial liabilities
Convertible notes, net	(199)	(192)
Carrying Amount \| Non-Interest Bearing Note Payable \| Non-Interest Bearing Note Payable
Total financial liabilities
Non-interest bearing note payable, net	(30)	(61)
Fair Value
Total financial assets
Originated vacation ownership notes receivable	1,413	1,276
Other assets	66	14
Total financial assets	1,479	1,290
Total financial liabilities
Other liabilities	(6)	0
Total financial liabilities	(3,792)	(1,157)
Fair Value \| Securitized debt
Total financial liabilities
Debt instrument	(1,698)	(836)
Fair Value \| Other
Total financial liabilities
Debt instrument	(20)	0
Fair Value \| Exchange Notes
Total financial liabilities
Debt instrument	(87)	0
Fair Value \| Senior Unsecured Notes
Total financial liabilities
Debt instrument	(726)	0
Fair Value \| IAC Notes
Total financial liabilities
Debt instrument	(140)	0
Fair Value \| Convertible Notes
Total financial liabilities
Convertible notes, net	(198)	(260)
Fair Value \| Non-Interest Bearing Note Payable \| Non-Interest Bearing Note Payable
Total financial liabilities
Non-interest bearing note payable, net	(30)	(61)
Corporate Credit Facility \| Carrying Amount \| Term Loan
Total financial liabilities
Debt instrument	(888)	0
Corporate Credit Facility \| Fair Value \| Term Loan
Total financial liabilities
Debt instrument	(887)	0
Originated \| Carrying Amount
Total financial assets
Originated vacation ownership notes receivable	1,388	1,115
Originated \| Fair Value
Total financial assets
Originated vacation ownership notes receivable	$ 1,413	$ 1,276

FINANCIAL INSTRUMENTS - Non-securitized Notes Receivable (Details) - USD ($) $ in Millions	Dec. 31, 2018	Dec. 31, 2017
Carrying Amount
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Originated vacation ownership notes receivable	$ 1,388	$ 1,115
Carrying Amount \| Securitized
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Originated vacation ownership notes receivable	1,070	814
Carrying Amount \| Non-Securitized
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Originated vacation ownership notes receivable	318	301
Carrying Amount \| Non-Securitized \| Eligible for securitization
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Originated vacation ownership notes receivable	85	142
Carrying Amount \| Non-Securitized \| Not eligible for securitization
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Originated vacation ownership notes receivable	233	159
Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Originated vacation ownership notes receivable	1,413	1,276
Fair Value \| Securitized
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Originated vacation ownership notes receivable	1,093	955
Fair Value \| Non-Securitized
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Originated vacation ownership notes receivable	320	321
Fair Value \| Non-Securitized \| Eligible for securitization
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Originated vacation ownership notes receivable	87	162
Fair Value \| Non-Securitized \| Not eligible for securitization
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Originated vacation ownership notes receivable	$ 233	$ 159

FINANCIAL INSTRUMENTS - Additional Information (Details) $ in Millions	Dec. 31, 2018 USD ($)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable securities	$ 8
Note receivable from noncontrolling interest	32
Variable Interest Entity
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash surrender value of life insurance	$ 26

EARNINGS PER SHARE - Additional Information (Details) - $ / shares	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 30, 2016	Sep. 30, 2017
Performance Shares
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Shares excluded from the calculation of diluted earnings per share (in shares)	165,000	238,000	217,000
SARs
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Shares excluded from the calculation of diluted earnings per share (in shares)	56,649		62,018
Stock options and SARs not included in the calculation of diluted earning per share because exercise prices exceeded market prices, exercise prices (in usd per share)	$ 143.38		$ 77.42
Private Warrants
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Exercise price of warrants (in usd per share)	$ 176.15			$ 176.68

EARNINGS PER SHARE - Reconciliation of Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	3 Months Ended								4 Months Ended	12 Months Ended
	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2018	Dec. 31, 2018	Dec. 31, 2017	Dec. 30, 2016
Computation of Basic Earnings Per Share Attributable to Common Shareholders
Net income	$ 44	$ (36)	$ 11	$ 36	$ 119	$ 40	$ 48	$ 28	$ 23	$ 55	$ 235	$ 122
Shares for basic earnings per share (in shares)										33.3	27.1	27.9
Basic earnings per share (in usd per share)	$ 0.92	$ (1.08)	$ 0.40	$ 1.35	$ 4.46	$ 1.49	$ 1.76	$ 1.02		$ 1.64	$ 8.70	$ 4.37
Computation of Diluted Earnings Per Share
Net income	$ 44	$ (36)	$ 11	$ 36	$ 119	$ 40	$ 48	$ 28	$ 23	$ 55	$ 235	$ 122
Shares for basic earnings per share (in shares)										33.3	27.1	27.9
Effect of dilutive shares outstanding
Employee stock options and SARs (in shares)										0.4	0.4	0.3
Restricted stock units (in shares)										0.3	0.2	0.2
Shares for diluted earnings per share (in shares)										34.0	27.7	28.4
Diluted earnings per share (in usd per share)	$ 0.91	$ (1.08)	$ 0.39	$ 1.32	$ 4.35	$ 1.45	$ 1.72	$ 1.00		$ 1.61	$ 8.49	$ 4.29

INVENTORY (Details) - USD ($) $ in Millions	Dec. 31, 2018	Dec. 31, 2017
Inventory Disclosure [Abstract]
Finished goods	$ 843	$ 391
Work-in-progress	9	2
Real estate inventory	852	393
Operating supplies and retail inventory	11	5
Inventory	863	$ 398
Amount of completed vacation ownership units classified as property and equipment	$ 51

PROPERTY AND EQUIPMENT (Details) - USD ($) $ in Millions	Dec. 31, 2018	Dec. 31, 2017
Property, Plant and Equipment [Abstract]
Land and land improvements	$ 466	$ 390
Buildings and leasehold improvements	404	259
Furniture, fixtures and other equipment	88	54
Information technology	297	185
Construction in progress	32	23
Property, plant and equipment, gross	1,287	911
Accumulated depreciation	(336)	(328)
Property, plant and equipment, net	$ 951	$ 583

CONTINGENCIES AND COMMITMENTS (Details) $ in Millions		1 Months Ended					2 Months Ended	3 Months Ended		12 Months Ended
CONTINGENCIES AND COMMITMENTS (Details) $ in Millions	Jul. 01, 2013 Plaintiff	Feb. 28, 2019 USD ($)	Jun. 30, 2018 USD ($)	Mar. 31, 2017 Plaintiff	Jun. 30, 2013 Plaintiff	Apr. 30, 2013 Plaintiff	Feb. 28, 2019 USD ($)	Sep. 30, 2018 USD ($)	Jun. 30, 2018 USD ($)	Dec. 31, 2018 USD ($) vacation_ownership_unit	Dec. 31, 2017 USD ($)	Dec. 30, 2016 USD ($) Plaintiff	Sep. 30, 2017 Property
Commitments and Contingencies Disclosure [Line Items]
Commitments to subsidize operating costs										$ 6
Surety bonds issued										74
Maximum exposure										40
Litigation settlement										46	$ 4	$ (1)
Fraudulently induced electronic payments			$ 10
Recorded fraudulently induced electronic payment disbursements										6
Gain (loss) and other income										21	6	$ 11
Kapalua Bay Settlement
Commitments and Contingencies Disclosure [Line Items]
Number of plaintiffs in lawsuits \| Plaintiff	2				38	12
Loss contingency, number of plaintiffs, released claims \| Plaintiff					2	2
Litigation settlement								$ 16
Ritz Carlton Club Aspen Highlands
Commitments and Contingencies Disclosure [Line Items]
Number of plaintiffs in lawsuits \| Plaintiff				232
Fifth and Fifty-Fifth Residence Club
Commitments and Contingencies Disclosure [Line Items]
Number of plaintiffs in lawsuits \| Plaintiff												107
Corporate Credit Facility
Commitments and Contingencies Disclosure [Line Items]
Letters of credit outstanding										4
Information technology hardware and software
Commitments and Contingencies Disclosure [Line Items]
Contractual commitments future minimum payments due										51
Commitment to purchase due in 2019										29
Commitment to purchase due in 2020										12
Commitment to purchase due in 2021										4
Commitment to purchase due in 2022										3
Commitment to purchase due in 2023										2
Commitment to purchase due thereafter										1
Insurance Claim, Hurricane Irma
Commitments and Contingencies Disclosure [Line Items]
Loss contingency receivable										11
New York City
Commitments and Contingencies Disclosure [Line Items]
Contractual commitments future minimum payments due										182
Commitment to purchase due in 2020										120
Commitment to purchase due in 2021										62
Minimum lease payments										7
Bali, Indonesia Resort
Commitments and Contingencies Disclosure [Line Items]
Commitment to purchase due in 2019										31
Commitment to purchase due in 2020										$ 2
Fiscal Year 2019 \| Bali, Indonesia Resort
Commitments and Contingencies Disclosure [Line Items]
Expected number of ownership units to be acquired \| vacation_ownership_unit										88
Hurricane
Commitments and Contingencies Disclosure [Line Items]
Number of properties \| Property													20
Nonoperating income (expense)											1
Gain on business interruption insurance recovery										$ 32	$ 9
Deductible										(3)
Agreements In Principle To Settle
Commitments and Contingencies Disclosure [Line Items]
Litigation settlement									$ 2
Agreements In Principle To Settle \| William and Sharon Petrick Case
Commitments and Contingencies Disclosure [Line Items]
Litigation settlement								$ 11
Agreements In Principle To Settle \| The Ritz-Carlton, Lake Tahoe
Commitments and Contingencies Disclosure [Line Items]
Litigation settlement									$ 5
Fraudulently Induced Electronic Payment Disbursements
Commitments and Contingencies Disclosure [Line Items]
Gain (loss) and other income										$ (4)
Subsequent Event \| San Francisco, California
Commitments and Contingencies Disclosure [Line Items]
Contractual commitments future minimum payments due		$ 158					$ 158
Commitment to purchase due in 2019		56					56
Commitment to purchase due in 2020		55					55
Commitment to purchase due in 2021		47					47
Minimum lease payments		9					9
Subsequent Event \| Hurricane
Commitments and Contingencies Disclosure [Line Items]
Gain on business interruption insurance recovery							$ 9
Subsequent Event \| Agreements In Principle To Settle \| Kapalua Bay Settlement
Commitments and Contingencies Disclosure [Line Items]
Litigation settlement		$ 12

LEASES - Additional Information (Details)	12 Months Ended
LEASES - Additional Information (Details)	Dec. 31, 2018
Minimum \| Land Lease
Operating Leased Assets [Line Items]
Lease term	30 years
Minimum \| Corporate Facilities Leases
Operating Leased Assets [Line Items]
Lease term	9 years
Maximum \| Land Lease
Operating Leased Assets [Line Items]
Lease term	50 years
Maximum \| Corporate Facilities Leases
Operating Leased Assets [Line Items]
Lease term	14 years

LEASES - Summary of Future Obligations Under Operating Leases (Details) $ in Millions	Dec. 31, 2018 USD ($)
Operating Leases
2019	$ 38
2020	33
2021	23
2022	17
2023	16
Thereafter	95
Total minimum lease payments	222
Land Lease
Operating Leases
2019	2
2020	2
2021	2
2022	2
2023	3
Thereafter	50
Total minimum lease payments	61
Corporate Facilities Leases
Operating Leases
2019	12
2020	12
2021	8
2022	5
2023	5
Thereafter	19
Total minimum lease payments	61
Other Operating Leases
Operating Leases
2019	24
2020	19
2021	13
2022	10
2023	8
Thereafter	26
Total minimum lease payments	$ 100

LEASES - Composition of Rental Expense Associated with Operating Leases (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 30, 2016
Commitments and Contingencies Disclosure [Abstract]
Minimum rentals	$ 16	$ 9	$ 8
Additional rentals	5	4	4
Rent expense with operating leases, net of sublease income	$ 21	$ 13	$ 12

The increases or decreases in lease payments that result from changes occurring after the inception of the lease in the factors (other than the passage of time) on which lease payments are based, except that any escalation of minimum lease payments relating to increases in construction or acquisition cost of the leased property or for increases in some measure of cost or value during the construction or preconstruction period, are excluded from contingent rentals. Contingent rentals also may include amounts for which the triggering events have not yet occurred or the specified targets for which have not yet been achieved (such as sales based percentage rent), but which events are considered probable of occurring or which specified targets are considered probable of being achieved.

+ References + Details

SECURITIZED DEBT - Vacation Ownership Notes Receivable Securitizations (Details) - USD ($) $ in Millions	Dec. 31, 2018	Dec. 31, 2017
Debt Instrument [Line Items]
Securitized debt, gross	$ 1,694	$ 835
Variable Interest Entity
Debt Instrument [Line Items]
Securitized debt, gross	1,706	845
Secured Debt, Net	1,694	835
Variable Interest Entity \| Warehouse Credit Facility
Debt Instrument [Line Items]
Unamortized debt issuance costs		(1)
Variable Interest Entity \| Securitized debt
Debt Instrument [Line Items]
Securitized debt, gross	962	845
Unamortized debt issuance costs	(11)	(10)
Secured Debt, Net	$ 951	835
Debt, weighted average interest rate	2.90%
Variable Interest Entity \| Securitized debt \| Minimum
Debt Instrument [Line Items]
Debt, stated interest rate	2.20%
Variable Interest Entity \| Securitized debt \| Maximum
Debt Instrument [Line Items]
Debt, stated interest rate	6.30%
Variable Interest Entity \| Securitized debt \| Warehouse Credit Facility
Debt Instrument [Line Items]
Securitized debt, gross	$ 116	0
Unamortized debt issuance costs	(1)	0
Secured Debt, Net	$ 115	0
Interest rate, effective percentage	3.50%
Variable Interest Entity \| Securitized debt \| Legacy ILG
Debt Instrument [Line Items]
Securitized debt, gross	$ 628	$ 0
Debt, weighted average interest rate	2.90%
Variable Interest Entity \| Securitized debt \| Legacy ILG \| Minimum
Debt Instrument [Line Items]
Debt, stated interest rate	2.30%
Variable Interest Entity \| Securitized debt \| Legacy ILG \| Maximum
Debt Instrument [Line Items]
Debt, stated interest rate	4.00%

SECURITIZED DEBT - Narrative (Details)	1 Months Ended	2 Months Ended	3 Months Ended		12 Months Ended
SECURITIZED DEBT - Narrative (Details)	Aug. 31, 2018 USD ($)	Mar. 01, 2019 USD ($)	Dec. 31, 2018 USD ($) Loan	Jun. 30, 2018 USD ($)	Dec. 31, 2018 USD ($) Loan	Dec. 31, 2017 USD ($)
Debt Instrument [Line Items]
Restricted cash			$ 383,000,000		$ 383,000,000	$ 82,000,000
Number of notes receivable pools under performance triggers \| Loan					0
Number of consolidated note receivable pools outstanding \| Loan			11		11
Warehouse Credit Facility
Debt Instrument [Line Items]
Net proceeds from vacation ownership notes receivable securitizations			$ 116,000,000
Values of vacation ownership notes receivable that were securitized during the period			137,000,000
Cash flows between transferee and transferor proceeds			$ 115,000,000
Advance rate for securitization			85.00%
Funding of restricted cash			$ (1,000,000)
Warehouse Credit Facility
Debt Instrument [Line Items]
Revolving credit facility amount			250,000,000		$ 250,000,000
Period of time that amounts outstanding are due upon termination of facility					13 months
Subsequent Event \| Warehouse Credit Facility
Debt Instrument [Line Items]
Net proceeds from vacation ownership notes receivable securitizations		$ 73,000,000
Values of vacation ownership notes receivable that were securitized during the period		85,000,000
Cash flows between transferee and transferor proceeds		$ 72,000,000
Advance rate for securitization		85.00%
Funding of restricted cash		$ (1,000,000)
Mvw Holding
Debt Instrument [Line Items]
Values of vacation ownership notes receivable that were securitized during the period				$ 436,000,000
Mvw Holding \| Securitized debt
Debt Instrument [Line Items]
Debt, weighted average interest rate				3.50%
Net proceeds from vacation ownership notes receivable securitizations				$ 423,000,000
Mvw Holding \| Securitized debt \| Class A Notes
Debt Instrument [Line Items]
Principal amount				$ 316,000,000
Debt, stated interest rate				3.50%
Mvw Holding \| Securitized debt \| Class B Notes
Debt Instrument [Line Items]
Principal amount				$ 65,000,000
Debt, stated interest rate				3.60%
Mvw Holding \| Securitized debt \| Class C Notes
Debt Instrument [Line Items]
Principal amount				$ 42,000,000
Debt, stated interest rate				3.90%
Legacy ILG \| 2018-A Trust
Debt Instrument [Line Items]
Values of vacation ownership notes receivable that were securitized during the period	$ 293,000,000		59,000,000
Decrease in restricted cash			$ 58,000,000
Legacy ILG \| 2018-A Trust \| Securitized debt
Debt Instrument [Line Items]
Values of vacation ownership notes receivable that were securitized during the period	221,000,000
Debt, weighted average interest rate			3.63%		3.63%
Net proceeds from vacation ownership notes receivable securitizations	$ 287,000,000
Legacy ILG \| 2018-A Trust \| Securitized debt \| Class A Notes
Debt Instrument [Line Items]
Principal amount			$ 209,000,000		$ 209,000,000
Debt, stated interest rate			3.60%		3.60%
Legacy ILG \| 2018-A Trust \| Securitized debt \| Class B Notes
Debt Instrument [Line Items]
Principal amount			$ 49,000,000		$ 49,000,000
Debt, stated interest rate			3.70%		3.70%
Legacy ILG \| 2018-A Trust \| Securitized debt \| Class C Notes
Debt Instrument [Line Items]
Principal amount			$ 29,000,000		$ 29,000,000
Debt, stated interest rate			4.00%		4.00%
Legacy ILG \| 2018-A Trust \| Variable Interest Entity, Not Primary Beneficiary
Debt Instrument [Line Items]
Restricted cash			$ 13,000,000		$ 13,000,000

SECURITIZED DEBT - Future Payments Vacation Ownership Notes Receivable Securitizations (Details) $ in Millions	Dec. 31, 2018 USD ($)
Debt Instrument [Line Items]
2019	$ 41
2020	28
2021	11
2022	241
2023	240
Thereafter	1,617
Securitized debt
Debt Instrument [Line Items]
2019	259
2020	219
2021	290
2022	172
2023	161
Thereafter	605
Long-term debt	1,706
Securitized debt \| Warehouse Credit Facility
Debt Instrument [Line Items]
2019	6
2020	7
2021	103
2022	0
2023	0
Thereafter	0
Long-term debt	116
Variable Interest Entity \| Securitized debt \| Legacy MVW
Debt Instrument [Line Items]
2019	98
2020	102
2021	105
2022	107
2023	106
Thereafter	444
Long-term debt	962
Variable Interest Entity \| Securitized debt \| Legacy ILG
Debt Instrument [Line Items]
2019	155
2020	110
2021	82
2022	65
2023	55
Thereafter	161
Long-term debt	$ 628

DEBT - Debt Balances, Net of Unamortized Debt Issuance Costs (Details) - USD ($)	Dec. 31, 2018	Nov. 07, 2018	Sep. 30, 2018	Sep. 04, 2018	Aug. 31, 2018	Dec. 31, 2017	Sep. 30, 2017
Debt Instrument [Line Items]
IAC Notes	$ 2,178,000,000
Debt, net	2,124,000,000					$ 260,000,000
Capital lease obligations	17,000,000					7,000,000
Other
Debt Instrument [Line Items]
IAC Notes	20,000,000					0
Exchange Notes \| Senior Notes
Debt Instrument [Line Items]
IAC Notes	89,000,000					0
Unamortized debt issuance costs	(1,000,000)					0
Debt, net	$ 88,000,000					0
Debt, stated interest rate	5.625%
Principal amount				$ 88,000,000
Senior Unsecured Notes \| Senior Notes
Debt Instrument [Line Items]
IAC Notes	$ 750,000,000					0
Unamortized debt issuance costs	(9,000,000)					0
Debt, net	741,000,000					0
Debt, stated interest rate			6.50%
Principal amount			$ 750,000,000
IAC Notes \| Senior Notes
Debt Instrument [Line Items]
IAC Notes	$ 141,000,000					0
Debt, stated interest rate	5.625%
Principal amount		$ 140,000,000		$ 88,000,000	$ 350,000,000
Term Loan \| Corporate Credit Facility
Debt Instrument [Line Items]
IAC Notes	$ 900,000,000					0
Unamortized debt discount and issuance costs	(12,000,000)					0
Debt, net	888,000,000					0
Convertible Notes \| Convertible Notes
Debt Instrument [Line Items]
IAC Notes	230,000,000					230,000,000
Unamortized debt issuance costs	(5,000,000)					(6,000,000)
Unamortized debt discount and issuance costs	(31,000,000)					(38,000,000)
Unamortized debt discount	(26,000,000)					(32,000,000)
Debt, net	199,000,000					$ 192,000,000
Debt, stated interest rate							1.50%
Principal amount							$ 230,000,000
Interest rate, effective percentage						4.70%
Non-Interest Bearing Note Payable \| Non-Interest Bearing Note Payable
Debt Instrument [Line Items]
IAC Notes	31,000,000					$ 64,000,000
Unamortized debt discount	(1,000,000)					(3,000,000)
Debt, net	$ 30,000,000					$ 61,000,000
Interest rate, effective percentage						6.00%

DEBT - Scheduled Future Principal Payments for Debt (Details) - USD ($) $ in Millions	Dec. 31, 2018	Dec. 31, 2017
Debt Principal Payments Year
2019	$ 41
2020	28
2021	11
2022	241
2023	240
Thereafter	1,617
Total	2,178
Other
Debt Principal Payments Year
2019	1
2020	2
2021	2
2022	2
2023	2
Thereafter	11
Total	20
Corporate Credit Facility \| Term Loan
Debt Principal Payments Year
2019	9
2020	9
2021	9
2022	9
2023	8
Thereafter	856
Total	900	$ 0
Senior Notes \| Exchange Notes
Debt Principal Payments Year
2019	0
2020	0
2021	0
2022	0
2023	89
Thereafter	0
Total	89	0
Senior Notes \| Senior Unsecured Notes
Debt Principal Payments Year
2019	0
2020	0
2021	0
2022	0
2023	0
Thereafter	750
Total	750	0
Senior Notes \| IAC Notes
Debt Principal Payments Year
2019	0
2020	0
2021	0
2022	0
2023	141
Thereafter	0
Total	141	0
Convertible Notes \| Convertible Notes
Debt Principal Payments Year
2019	0
2020	0
2021	0
2022	230
2023	0
Thereafter	0
Total	230	230
Non-Interest Bearing Note Payable \| Non-Interest Bearing Note Payable
Debt Principal Payments Year
2019	31
2020	0
2021	0
2022	0
2023	0
Thereafter	0
Total	31	$ 64
Capital Leases
Debt Principal Payments Year
2019	0
2020	17
2021	0
2022	0
2023	0
Thereafter	0
Total	$ 17

DEBT - Additional Information (Details)							1 Months Ended		2 Months Ended	3 Months Ended				9 Months Ended	12 Months Ended
DEBT - Additional Information (Details)	Feb. 15, 2019 $ / shares	Dec. 06, 2018 $ / shares	Sep. 06, 2018 $ / shares	Sep. 04, 2018 USD ($)	May 14, 2018 $ / shares	Feb. 16, 2018 $ / shares	Nov. 07, 2018 USD ($)	Oct. 15, 2018 USD ($)	Mar. 01, 2019 USD ($)	Dec. 31, 2018 USD ($) $ / shares shares	Sep. 30, 2018 USD ($)	Jun. 30, 2018 USD ($)	Sep. 30, 2017 USD ($) $ / shares	Sep. 30, 2017 USD ($) $ / shares	Dec. 31, 2018 USD ($) $ / shares shares	Dec. 31, 2017 USD ($) $ / shares	Dec. 30, 2016 USD ($) $ / shares	Aug. 31, 2018 USD ($)	Sep. 25, 2017 USD ($)	Sep. 21, 2017 shares	Sep. 20, 2017 shares
Debt Disclosure [Line Items]
Debt issuance costs															$ 34,000,000	$ 15,000,000	$ 4,000,000
Repayments of debt															$ 215,000,000	$ 88,000,000	$ 85,000,000
Cash dividends declared per share of common stock (in usd per share) \| $ / shares			$ 0.40		$ 0.40	$ 0.40									$ 1.65	$ 1.45	$ 1.25
IAC Notes										$ 2,178,000,000					$ 2,178,000,000
Senior Notes \| Exchange Notes
Debt Disclosure [Line Items]
Debt instrument face amount				$ 88,000,000
Debt, stated interest rate										5.625%					5.625%
Debt issuance costs				1,000,000
IAC Notes										$ 89,000,000					$ 89,000,000	$ 0
Senior Notes \| IAC Notes
Debt Disclosure [Line Items]
Debt instrument face amount				$ 88,000,000			$ 140,000,000											$ 350,000,000
Debt, stated interest rate										5.625%					5.625%
Redemption price								101.00%
Debt instrument, repurchased face amount								$ 122,000,000
Repayments of debt							$ 123,000,000
IAC Notes										$ 141,000,000					$ 141,000,000	0
Senior Notes \| Senior Unsecured Notes
Debt Disclosure [Line Items]
Debt instrument face amount											$ 750,000,000
Debt, stated interest rate											6.50%
Proceeds from issuance of senior debt											$ 742,000,000
IAC Notes										$ 750,000,000					$ 750,000,000	0
Convertible Notes \| Convertible Notes
Debt Disclosure [Line Items]
Debt instrument face amount													$ 230,000,000	$ 230,000,000
Debt, stated interest rate													1.50%	1.50%
Redemption price													100.00%
Conversion ratio										0.0000067685			0.0000067482
Conversion price (in usd per share) \| $ / shares										$ 147.74			$ 148.19	$ 148.19	$ 147.74
Cash dividends declared per share of common stock (in usd per share) \| $ / shares		$ 0.45
Percentage of debt held by individual owner														25.00%
Long-term debt																			$ 197,000,000
Equity component, net of issuance costs										$ 33,000,000					$ 33,000,000	33,000,000			$ 33,000,000
Convertible debt, remaining discount amortization period															3 years 8 months 12 days
Percentage above common stock price to conversion price of convertible debt when instrument is eligible for conversion													30.00%	30.00%
IAC Notes										230,000,000					$ 230,000,000	230,000,000
Non-Interest Bearing Note Payable \| Non-Interest Bearing Note Payable
Debt Disclosure [Line Items]
IAC Notes										31,000,000					$ 31,000,000	64,000,000
Corporate Credit Facility \| Minimum
Debt Disclosure [Line Items]
Commitment fee percentage															0.20%
Corporate Credit Facility \| Maximum
Debt Disclosure [Line Items]
Commitment fee percentage															0.40%
Corporate Credit Facility \| Previous Revolving Corporate Credit Facility
Debt Disclosure [Line Items]
Line of credit facility, maximum borrowing capacity											250,000,000
Corporate Credit Facility \| Term Loan
Debt Disclosure [Line Items]
Line of credit facility, maximum borrowing capacity											900,000,000
IAC Notes										900,000,000					$ 900,000,000	$ 0
Corporate Credit Facility \| Revolving Corporate Credit Facility
Debt Disclosure [Line Items]
Line of credit facility, maximum borrowing capacity										600,000,000					600,000,000
Line of credit										$ 0					$ 0
Corporate Credit Facility \| Revolving Corporate Credit Facility \| Letter of Credit
Debt Disclosure [Line Items]
Line of credit facility, maximum borrowing capacity											$ 75,000,000
Floating Rate \| Corporate Credit Facility \| Term Loan \| Minimum
Debt Disclosure [Line Items]
Debt instrument, percentage points added to the reference rate															1.25%
Floating Rate \| Corporate Credit Facility \| Term Loan \| Maximum
Debt Disclosure [Line Items]
Debt instrument, percentage points added to the reference rate															2.25%
Floating Rate \| Corporate Credit Facility \| Revolving Corporate Credit Facility \| Minimum
Debt Disclosure [Line Items]
Debt instrument, percentage points added to the reference rate															0.50%
Floating Rate \| Corporate Credit Facility \| Revolving Corporate Credit Facility \| Maximum
Debt Disclosure [Line Items]
Debt instrument, percentage points added to the reference rate															2.75%
Convertible Note Hedges
Debt Disclosure [Line Items]
Indexed shares (in shares) \| shares																				1,550,000
Convertible note hedges exercised (in shares) \| shares										0					0
Private Warrants
Debt Disclosure [Line Items]
Warrants exercised \| shares										0					0
Number of securities called by warrants (in shares) \| shares																					1,550,000
Exercise price of warrants (in usd per share) \| $ / shares										$ 176.15			$ 176.68	$ 176.68	$ 176.15
Conversion Premium, Stock Price Exceeds The Conversion Price \| Convertible Notes \| Convertible Notes
Debt Disclosure [Line Items]
Effective percentage above common stock price to conversion price of convertible debt, as effected by convertible note hedge and warrant transactions													55.00%	55.00%
Big Island Of Hawaii \| Non-Interest Bearing Note Payable \| Non-Interest Bearing Note Payable
Debt Disclosure [Line Items]
Repayments of notes payable												$ 33,000,000
IAC Notes										$ 31,000,000					$ 31,000,000
Subsequent Event
Debt Disclosure [Line Items]
Cash dividends declared per share of common stock (in usd per share) \| $ / shares	$ 0.45
Subsequent Event \| Corporate Credit Facility \| Revolving Corporate Credit Facility
Debt Disclosure [Line Items]
Repayments of debt									$ 50,000,000
Line of credit									$ 85,000,000

DEBT - Net Carrying Value Of The Convertible Notes (Details) - USD ($) $ / shares in Units, $ in Millions	Dec. 31, 2018	Dec. 31, 2017	Sep. 30, 2017	Sep. 25, 2017
Debt Instrument [Line Items]
Principal amount	$ 2,178
Debt, net	$ 2,124	$ 260
Convertible Notes \| Convertible Notes
Debt Instrument [Line Items]
Conversion price (in usd per share)	$ 147.74		$ 148.19
Principal amount	$ 230	230
Unamortized debt discount	(26)	(32)
Unamortized debt issuance costs	(5)	(6)
Debt, net	199	192
Equity component, net of issuance costs	$ 33	$ 33		$ 33

DEBT - Interest Expense Related To The Convertible Notes (Details) - USD ($) $ in Millions	4 Months Ended	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2018	Dec. 31, 2017	Dec. 30, 2016
Debt Instrument [Line Items]
Interest Expense, Debt	$ 54	$ 54	$ 10	$ 9
Convertible Notes \| Convertible Notes
Debt Instrument [Line Items]
Contractual interest expense		3	1
Amortization of debt discount		6	2
Debt issuance cost amortization		1	0
Interest Expense, Debt		$ 10	$ 3

SHAREHOLDERS' EQUITY - Additional Information (Details) - USD ($) $ / shares in Units, $ in Millions	Dec. 31, 2018	Dec. 06, 2018	Dec. 31, 2017
Business Acquisition [Line Items]
Common stock, shares authorized (in shares)	100,000,000		100,000,000
Common stock, par value (in usd per share)	$ 0.01		$ 0.01
Common stock, shares issued (in shares)	57,626,462		36,861,843
Common stock, shares outstanding	45,992,731		26,461,296
Treasury stock, shares (in shares)	11,633,731		10,400,547
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
Share repurchase program, number of additional common stock authorized to be repurchased (in shares)		3,000,000.0
Share repurchase program, number of additional common stock authorized to be repurchased (in shares)	14,900,000
Stock repurchase program, remaining authorized repurchase amount (in shares)	3,200,000
Noncontrolling interest	$ 5		$ 0
Property Owners Associations
Business Acquisition [Line Items]
Noncontrolling interest	$ 8

SHAREHOLDERS' EQUITY - Summary of Stock Repurchase Activity (Details) - USD ($) $ / shares in Units, $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 30, 2016
Stock Repurchase Program [Roll Forward]
Number of Shares Repurchased, Beginning of period (in shares)	10,400,547
Cost of Shares Repurchased, for the year	$ 96	$ 88	$ 178
Number of Shares Repurchased, End of period (in shares)	11,633,731	10,400,547
Treasury Stock
Stock Repurchase Program [Roll Forward]
Number of Shares Repurchased, Beginning of period (in shares)	10,440,505
Cost of Shares Repurchased, Beginning of period	$ 697
Average Price Paid per Share, Beginning of period (in usd per share)	$ 66.73
Number of Shares Repurchased, for the year (in shares)	1,247,269
Cost of Shares Repurchased, for the year	$ 96	$ 88	$ 178
Average Price Paid per Share, for the year (in usd per share)	$ 77.16
Number of Shares Repurchased, End of period (in shares)	11,687,774	10,440,505
Cost of Shares Repurchased, End of period	$ 793	$ 697
Average Price Paid per Share, End of period (in usd per share)	$ 67.85	$ 66.73

SHAREHOLDERS' EQUITY - Cash Dividend Declared (Detail) - $ / shares				12 Months Ended
	Sep. 06, 2018	May 14, 2018	Feb. 16, 2018	Dec. 31, 2018	Dec. 31, 2017	Dec. 30, 2016
Equity [Abstract]
Dividends declared per share of common stock (in usd per share)	$ 0.40	$ 0.40	$ 0.40	$ 1.65	$ 1.45	$ 1.25

SHARE-BASED COMPENSATION - Additional Information (Details) $ / shares in Units, $ in Millions		12 Months Ended
	Sep. 01, 2018 USD ($) $ / shares shares	Dec. 31, 2018 USD ($) $ / shares shares	Dec. 31, 2017 USD ($) $ / shares shares	Dec. 30, 2016 USD ($) $ / shares shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock options outstanding (in shares)		5,000
Stock options exercisable (in shares)		0
Outstanding (in usd per share) \| $ / shares		$ 18.49
Share-based compensation expense \| $		$ 35	$ 16	$ 14
Payroll and benefits liability \| $		$ 211	$ 112
Stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares authorized (in shares)		6,000,000
Number of shares available for grant		1,000,000
Stock options outstanding (in shares)		0	0
Stock options exercisable (in shares)		0	0
Grants in period (in shares)		0	0	0
Share-based compensation expense \| $		$ 0	$ 0	$ 0
Restricted stock units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted average grant date fair value (in usd per share) \| $ / shares		$ 120.04
Aggregate intrinsic value, vested (less than) \| $		$ 48	$ 18	13
Outstanding awards (in shares)		1,060,661	782,519
Share-based compensation expense \| $		$ 32	$ 14	$ 12
Nonvested awards (in usd per share) \| $ / shares		$ 89.11	$ 64.83
SARs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted average grant date fair value (in usd per share) \| $ / shares		$ 44.75	$ 27.63	$ 16.12
Aggregate intrinsic value, vested (less than) \| $		$ 1	$ 6	$ 1
Aggregate intrinsic value, exercised \| $		$ 2	$ 19	6
Outstanding awards (in shares)		697,178	658,453
Share-based compensation expense \| $		$ 3	$ 2	$ 2
Employee Stock Purchase Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares authorized (in shares)		500,000
Percentage of fair market value of common stock (not less than)		95.00%
Employees and Non Employee Directors \| Restricted stock units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted average grant date fair value (in usd per share) \| $ / shares			$ 64.83	$ 53.56
ILG, Inc
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Business combination, share conversion ratio	0.165
Business combination, share price (in usd per share) \| $ / shares	$ 119.00
ILG, Inc \| Restricted stock units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Aggregate intrinsic value, vested (less than) \| $		$ 24
Legacy ILG
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Payroll and benefits liability \| $		$ 2
Legacy ILG \| Restricted stock units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares available for grant		1,000,000
Outstanding awards (in shares)	400,000
Share-based compensation expense \| $	$ 39
Legacy ILG \| Deferred Share Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Outstanding awards (in shares)	12,265
Nonvested awards (in usd per share) \| $ / shares	$ 114.31
Legacy ILG \| Cash-Based Award
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense \| $	$ 1
ILG, Inc \| Restricted stock units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Nonvested awards (in usd per share) \| $ / shares	$ 118.03
ILG, Inc \| ILG, Inc
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Business combination, share price (in usd per share) \| $ / shares	$ 14.75

SHARE-BASED COMPENSATION - Share-based Compensation Expense (Details) - USD ($) $ in Millions		12 Months Ended
	Sep. 01, 2018	Dec. 31, 2018	Dec. 31, 2017	Dec. 30, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense		$ 35	$ 16	$ 14
Service-based RSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense		12	10	9
Performance-based RSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense		7	4	3
Restricted stock units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense		32	14	12
ILG Acquisition Converted Restricted Stock Unit RSUs [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense		13	0	0
SARs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense		3	2	2
Stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense		0	$ 0	$ 0
Legacy ILG \| Cash-Based Award
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense	$ 1
Legacy ILG \| Restricted stock units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense	$ 39
Cash-Based Award \| ILG Acquisition Converted Restricted Stock Unit RSUs [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense		$ 6

SHARE-BASED COMPENSATION - Deferred Compensation Costs (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Deferred compensation costs related to unvested awards	$ 39	$ 15
Service-based RSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Deferred compensation costs related to unvested awards	16	9
Performance-based RSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Deferred compensation costs related to unvested awards	7	5
ILG Acquisition Converted Restricted Stock Unit RSUs [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Deferred compensation costs related to unvested awards	15	0
Restricted stock units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Deferred compensation costs related to unvested awards	38	14
SARs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Deferred compensation costs related to unvested awards	$ 1	1
Outstanding, weighted average remaining contractual terms	4 years
Stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Deferred compensation costs related to unvested awards	$ 0	$ 0
Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Outstanding, weighted average remaining contractual terms	1 year
Deferred compensation expense weighted average expected recognition period	1 year
Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Outstanding, weighted average remaining contractual terms	2 years
Deferred compensation expense weighted average expected recognition period	3 years

SHARE-BASED COMPENSATION - Changes in Marriott Vacations Worldwide RSUs Issued to Marriott International and Marriott Vacations Worldwide Employees (Details)	12 Months Ended
	Dec. 31, 2018 $ / shares shares
Service-based RSUs
Number of Awards
Outstanding at beginning of year (in shares) \| shares	471,007
Stock awards, grants in period (in shares) \| shares	188,622
Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Converted In ILG Acquisition Other Than Options Grants In Period Weighted Average Grant Date Fair Value \| $ / shares	$ 117.92
Stock awards, distributed in period (in shares) \| shares	(341,520)
Stock awards, forfeited in period (in shares) \| shares	(11,554)
Outstanding at year-end (in shares) \| shares	753,581
Weighted Average Grant-Date Fair Value Per Share
Outstanding at beginning of year (in usd per share) \| $ / shares	$ 59.49
Granted (in usd per share) \| $ / shares	112.93
Distributed (in usd per share) \| $ / shares	97.86
Forfeited (in usd per share) \| $ / shares	91.00
Outstanding at year-end (in usd per share) \| $ / shares	$ 89.66
Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Converted In ILG Acquisition Other Than Options Grants In Period \| shares	447,026
Performance-based RSUs
Number of Awards
Outstanding at beginning of year (in shares) \| shares	311,512
Stock awards, grants in period (in shares) \| shares	71,902
Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Converted In ILG Acquisition Other Than Options Grants In Period Weighted Average Grant Date Fair Value \| $ / shares	$ 0
Stock awards, distributed in period (in shares) \| shares	(35,067)
Stock awards, forfeited in period (in shares) \| shares	(41,267)
Outstanding at year-end (in shares) \| shares	307,080
Weighted Average Grant-Date Fair Value Per Share
Outstanding at beginning of year (in usd per share) \| $ / shares	$ 72.89
Granted (in usd per share) \| $ / shares	138.68
Distributed (in usd per share) \| $ / shares	75.20
Forfeited (in usd per share) \| $ / shares	74.96
Outstanding at year-end (in usd per share) \| $ / shares	$ 87.75
Restricted stock units
Number of Awards
Outstanding at beginning of year (in shares) \| shares	782,519
Stock awards, grants in period (in shares) \| shares	260,524
Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Converted In ILG Acquisition Other Than Options Grants In Period Weighted Average Grant Date Fair Value \| $ / shares	$ 117.92
Stock awards, distributed in period (in shares) \| shares	(376,587)
Stock awards, forfeited in period (in shares) \| shares	(52,821)
Outstanding at year-end (in shares) \| shares	1,060,661
Weighted Average Grant-Date Fair Value Per Share
Outstanding at beginning of year (in usd per share) \| $ / shares	$ 64.83
Granted (in usd per share) \| $ / shares	120.04
Distributed (in usd per share) \| $ / shares	95.75
Forfeited (in usd per share) \| $ / shares	78.47
Outstanding at year-end (in usd per share) \| $ / shares	$ 89.11
Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Converted In ILG Acquisition Other Than Options Grants In Period \| shares	447,026
ILG, Inc \| Performance-based RSUs
Weighted Average Grant-Date Fair Value Per Share
Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Converted In ILG Acquisition Other Than Options Grants In Period \| shares	0

SHARE-BASED COMPENSATION - Changes in Outstanding Marriott Vacations Worldwide SARs Issued to Both Marriott International and Marriott Vacations Worldwide Employees and Directors (Details) - SARs $ / shares in Units, $ in Millions	12 Months Ended
	Dec. 31, 2018 USD ($) $ / shares shares
Number of SARs
Outstanding at beginning of year (in shares) \| shares	658,453
Granted in period (in shares) \| shares	56,649
Exercised (in shares) \| shares	(17,924)
Forfeited (in shares) \| shares	0
Outstanding at year-end (in shares) \| shares	697,178
Weighted Average Exercise Price Per SAR
Outstanding at beginning of year (in usd per share) \| $ / shares	$ 47.63
Granted (in usd per share) \| $ / shares	143.38
Exercised (in usd per share) \| $ / shares	26.30
Forfeited (in usd per share) \| $ / shares	0
Outstanding at year-end (in usd per share) \| $ / shares	$ 55.96
Intrinsic value, outstanding \| $	$ 17
Outstanding, weighted average remaining contractual life	5 years
Exercisable (in shares) \| shares	497,243
Exercisable, weighted average value (in usd per share) \| $ / shares	$ 39.43
Aggregate intrinsic value, exercisable \| $	$ 16
Outstanding, weighted average remaining contractual terms	4 years

SHARE-BASED COMPENSATION - Assumptions Used to Estimate Fair Value of Grants (Detail)	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 30, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Expected volatility	30.78%	30.41%	31.60%
Dividend yield	1.11%	1.44%	1.96%
Risk-free rate	2.68%	2.06%	1.41%
Expected term (in years)	6 years 3 months	6 years 3 months	6 years 3 months

VARIABLE INTEREST ENTITIES - Classifications of Consolidated VIE Assets and Liabilities (Details) - Variable Interest Entity $ in Millions	Dec. 31, 2018 USD ($)
Variable Interest Entity [Line Items]
VIE Assets	$ 1,707
VIE Liabilities	1,708
Securitized debt
Variable Interest Entity [Line Items]
VIE Liabilities	1,706
Vacation ownership notes receivable, net of reserves
Variable Interest Entity [Line Items]
VIE Assets	1,627
Interest receivable
Variable Interest Entity [Line Items]
VIE Assets	11
Restricted cash
Variable Interest Entity [Line Items]
VIE Assets	69
Interest payable
Variable Interest Entity [Line Items]
VIE Liabilities	2
Vacation Ownership Notes Receivable Securitizations
Variable Interest Entity [Line Items]
VIE Assets	1,577
VIE Liabilities	1,592
Vacation Ownership Notes Receivable Securitizations \| Securitized debt
Variable Interest Entity [Line Items]
VIE Liabilities	1,590
Vacation Ownership Notes Receivable Securitizations \| Vacation ownership notes receivable, net of reserves
Variable Interest Entity [Line Items]
VIE Assets	1,501
Vacation Ownership Notes Receivable Securitizations \| Interest receivable
Variable Interest Entity [Line Items]
VIE Assets	10
Vacation Ownership Notes Receivable Securitizations \| Restricted cash
Variable Interest Entity [Line Items]
VIE Assets	66
Vacation Ownership Notes Receivable Securitizations \| Interest payable
Variable Interest Entity [Line Items]
VIE Liabilities	2
Warehouse Credit Facility
Variable Interest Entity [Line Items]
VIE Assets	130
VIE Liabilities	116
Warehouse Credit Facility \| Securitized debt
Variable Interest Entity [Line Items]
VIE Liabilities	116
Warehouse Credit Facility \| Vacation ownership notes receivable, net of reserves
Variable Interest Entity [Line Items]
VIE Assets	126
Warehouse Credit Facility \| Interest receivable
Variable Interest Entity [Line Items]
VIE Assets	1
Warehouse Credit Facility \| Restricted cash
Variable Interest Entity [Line Items]
VIE Assets	3
Warehouse Credit Facility \| Interest payable
Variable Interest Entity [Line Items]
VIE Liabilities	$ 0

VARIABLE INTEREST ENTITIES - Interest Income and Expense Recognized as a Result of Our Involvement with Variable Interest Entities (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 30, 2016
Variable Interest Entity [Line Items]
Interest income	$ 175	$ 128	$ 120
Administrative expenses	198	$ 106	$ 100
Variable Interest Entity
Variable Interest Entity [Line Items]
Interest income	151
Interest expense to investors	36
Debt issuance cost amortization	5
Administrative expenses	1
Variable Interest Entity \| Vacation Ownership Notes Receivable Securitizations
Variable Interest Entity [Line Items]
Interest income	149
Interest expense to investors	34
Debt issuance cost amortization	4
Administrative expenses	1
Variable Interest Entity \| Warehouse Credit Facility
Variable Interest Entity [Line Items]
Interest income	2
Interest expense to investors	2
Debt issuance cost amortization	1
Administrative expenses	$ 0

VARIABLE INTEREST ENTITIES - Cash Flows Between Company and Variable Interest Entities (Details) - USD ($) $ in Millions	3 Months Ended		12 Months Ended
	Sep. 30, 2018	Jun. 30, 2018	Dec. 31, 2018	Dec. 31, 2017	Dec. 30, 2016
2018-01 Trust
Cash Outflows
Increase in Restricted Cash	$ 106
2018-01 Trust \| Legacy MVW
Cash Outflows
Decrease in restricted cash		$ 106
Vacation Ownership Notes Receivable Securitizations
Cash Inflows
Net proceeds from vacation ownership notes receivable securitizations			$ 419	$ 346
Principal receipts			322	229
Interest receipts			145	100
Reserve release			168	1
Total			1,054	676
Cash Outflows
Principal to investors			(329)	(215)
Voluntary repurchases of defaulted vacation ownership notes receivable, net of substitutions			(31)	(28)	$ (30)
Voluntary clean-up call			(22)	0
Interest to investors			(31)	(19)
Funding of restricted cash			(110)	(2)
Total			(523)	(264)
Net Cash Flows			531	412
Warehouse Credit Facility
Cash Inflows
Net proceeds from vacation ownership notes receivable securitizations			116	50
Principal receipts			1	2
Interest receipts			1	2
Total			118	54
Cash Outflows
Principal to investors			0	(1)
Repayment of Warehouse Credit Facility			0	(49)
Interest to investors			(1)	(2)
Funding of restricted cash			(1)	0
Total			(2)	(52)
Net Cash Flows			$ 116	$ 2

VARIABLE INTEREST ENTITIES - Additional Information (Details) $ in Millions	12 Months Ended
	Dec. 31, 2018 USD ($) vacation_ownership_unit	Dec. 31, 2017 USD ($)	Dec. 30, 2016 USD ($)	Mar. 31, 2018 vacation_ownership_unit	Jun. 30, 2017 vacation_ownership_unit
Variable Interest Entity [Line Items]
Debt, net	$ 17	$ 7
Property and equipment	$ 951	583
Number of vacation ownership units acquired \| vacation_ownership_unit	92
San Francisco, California \| Variable Interest Entity, Not Primary Beneficiary
Variable Interest Entity [Line Items]
Debt, net	$ 9
Notes receivable (less than)	1
Maximum loss exposure, amount (less than)	1
Property and equipment	10
New York City \| Variable Interest Entity, Not Primary Beneficiary
Variable Interest Entity [Line Items]
Debt, net	7
Notes receivable (less than)	1
Maximum loss exposure, amount (less than)	1
Property and equipment	8
Marco Island, Florida
Variable Interest Entity [Line Items]
Number of vacation ownership units acquired \| vacation_ownership_unit				20	36
Vacation Ownership Notes Receivable Securitizations
Variable Interest Entity [Line Items]
Voluntary repurchase of defaulted notes receivable	31	28	$ 30
Voluntary repurchase of other non-defaulted notes receivable	$ 39	$ 57	$ 144

BUSINESS SEGMENTS - Additional Information (Details) owner_member in Thousands	12 Months Ended
	Dec. 31, 2018 Property resort owner_member nation Segment	Dec. 31, 2017	Dec. 30, 2016
Segment Reporting Disclosure [Line Items]
Number of business segments \| Segment	2
Geographic Concentration Risk \| Revenue \| All other countries
Segment Reporting Disclosure [Line Items]
Concentration risk	13.00%	13.00%	15.00%
Vacation Ownership
Segment Reporting Disclosure [Line Items]
Number of resorts \| resort	100
Number of owners and/or members \| owner_member	660
Exchange & Third-Party Management
Segment Reporting Disclosure [Line Items]
Number of resorts \| resort	3,200
Number of countries in which entity operates \| nation	80
Number of owners and/or members \| owner_member	2,000
Number of properties \| Property	180

BUSINESS SEGMENTS - Revenues (Details) - USD ($) $ in Millions	3 Months Ended								4 Months Ended	12 Months Ended
	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2018	Dec. 31, 2018	Dec. 31, 2017	Dec. 30, 2016
Segment Reporting, Revenue Reconciling Item [Line Items]
TOTAL REVENUES	$ 1,052	$ 750	$ 595	$ 571	$ 562	$ 530	$ 563	$ 528	$ 1,513	$ 2,968	$ 2,183	$ 2,000
Revenues excluding cost reimbursement										2,043	1,433	1,280
United States
Segment Reporting, Revenue Reconciling Item [Line Items]
Revenues excluding cost reimbursement										1,780	1,247	1,090
All other countries
Segment Reporting, Revenue Reconciling Item [Line Items]
Revenues excluding cost reimbursement										263	186	190
Vacation Ownership
Segment Reporting, Revenue Reconciling Item [Line Items]
TOTAL REVENUES										2,803	2,183	2,000
Exchange & Third-Party Management
Segment Reporting, Revenue Reconciling Item [Line Items]
TOTAL REVENUES										161	0	0
Operating Segments
Segment Reporting, Revenue Reconciling Item [Line Items]
TOTAL REVENUES										2,964	2,183	2,000
Operating Segments \| Vacation Ownership
Segment Reporting, Revenue Reconciling Item [Line Items]
TOTAL REVENUES										2,803	2,183	2,000
Operating Segments \| Exchange & Third-Party Management
Segment Reporting, Revenue Reconciling Item [Line Items]
TOTAL REVENUES										161	0	0
Corporate and other
Segment Reporting, Revenue Reconciling Item [Line Items]
TOTAL REVENUES										$ 4	$ 0	$ 0

BUSINESS SEGMENTS - Reconciliation of Adjusted EBITDA to Net Income (Details) - USD ($) $ in Millions	3 Months Ended								4 Months Ended	12 Months Ended
	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2018	Dec. 31, 2018	Dec. 31, 2017	Dec. 30, 2016
Segment Reporting Information [Line Items]
Corporate and other										$ (169)	$ (89)	$ (89)
Interest expense									$ (54)	(54)	(10)	(9)
Tax provision									(11)	(51)	(5)	(76)
Depreciation and amortization										(62)	(21)	(21)
Non-cash share-based compensation expense										(35)	(16)	(14)
Certain items										(162)	(7)	5
Net (loss) income attributable to common shareholders	$ 44	$ (36)	$ 11	$ 36	$ 119	$ 40	$ 48	$ 28	$ 23	55	235	122
Vacation Ownership
Segment Reporting Information [Line Items]
Adjusted EBITDA										511	383	326
Exchange & Third-Party Management
Segment Reporting Information [Line Items]
Adjusted EBITDA										$ 77	$ 0	$ 0

BUSINESS SEGMENTS - Depreciation and Amortization (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 30, 2016
Reconciliation of Depreciation by Segment [Line Items]
Depreciation and amortization	$ 62	$ 21	$ 21
Operating Segments
Reconciliation of Depreciation by Segment [Line Items]
Depreciation and amortization	53	17	16
Operating Segments \| Vacation Ownership
Reconciliation of Depreciation by Segment [Line Items]
Depreciation and amortization	37	17	16
Operating Segments \| Exchange & Third-Party Management
Reconciliation of Depreciation by Segment [Line Items]
Depreciation and amortization	16	0	0
Corporate and other
Reconciliation of Depreciation by Segment [Line Items]
Depreciation and amortization	$ 9	$ 4	$ 5

BUSINESS SEGMENTS - Assets (Details) - USD ($) $ in Millions	Dec. 31, 2018	Dec. 31, 2017
Segment Reporting Information [Line Items]
Total Assets	$ 9,018	$ 2,845
Property and equipment	951	583
United States
Segment Reporting Information [Line Items]
Property and equipment	748	506
All other countries
Segment Reporting Information [Line Items]
Property and equipment	203	77
Operating Segments
Segment Reporting Information [Line Items]
Total Assets	8,457	2,279
Operating Segments \| Vacation Ownership
Segment Reporting Information [Line Items]
Total Assets	7,275	2,279
Operating Segments \| Exchange & Third-Party Management
Segment Reporting Information [Line Items]
Total Assets	1,182	0
Corporate and other
Segment Reporting Information [Line Items]
Total Assets	$ 561	$ 566

BUSINESS SEGMENTS - Capital Expenditures (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 30, 2016
Segment Reporting, Other Significant Reconciling Item [Line Items]
Capital Expenditures	$ 252	$ 181	$ 173
Operating Segments
Segment Reporting, Other Significant Reconciling Item [Line Items]
Capital Expenditures	250	174	164
Operating Segments \| Vacation Ownership
Segment Reporting, Other Significant Reconciling Item [Line Items]
Capital Expenditures	245	174	164
Operating Segments \| Exchange & Third-Party Management
Segment Reporting, Other Significant Reconciling Item [Line Items]
Capital Expenditures	5	0	0
Corporate and other
Segment Reporting, Other Significant Reconciling Item [Line Items]
Capital Expenditures	$ 2	$ 7	$ 9

QUARTERLY RESULTS (UNAUDITED) (Details) - USD ($) $ / shares in Units, $ in Millions		3 Months Ended								4 Months Ended	9 Months Ended	12 Months Ended
	Sep. 01, 2018	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2018	Sep. 30, 2018	Dec. 31, 2018	Dec. 31, 2017	Dec. 30, 2016
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items]
Revenues		$ 1,052	$ 750	$ 595	$ 571	$ 562	$ 530	$ 563	$ 528	$ 1,513		$ 2,968	$ 2,183	$ 2,000
Expenses		(939)	(698)	(546)	(518)	(493)	(472)	(489)	(483)	1,391		(2,701)	(1,937)	(1,800)
Net income		$ 44	$ (36)	$ 11	$ 36	$ 119	$ 40	$ 48	$ 28	$ 23		$ 55	$ 235	$ 122
Basic earnings per share (in usd per share)		$ 0.92	$ (1.08)	$ 0.40	$ 1.35	$ 4.46	$ 1.49	$ 1.76	$ 1.02			$ 1.64	$ 8.70	$ 4.37
Diluted earnings per share (in usd per share)		$ 0.91	$ (1.08)	$ 0.39	$ 1.32	$ 4.35	$ 1.45	$ 1.72	$ 1.00			$ 1.61	$ 8.49	$ 4.29
ILG, Inc
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items]
Goodwill	$ 81
Goodwill Adjustment \| ILG, Inc
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items]
Net income			$ 22								$ 22
Goodwill	$ 30

The amount of net income (loss) for the period per each share of common stock or unit outstanding during the reporting period.

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The amount of net income (loss) for the period available to each share of common stock or common unit outstanding during the reporting period and to each share or unit that would have been outstanding assuming the issuance of common shares or units for all dilutive potential common shares or units outstanding during the reporting period.

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