View Filing Data

ACQUISITIONS AND DISPOSITIONS



3.	ACQUISITIONS AND DISPOSITIONS

Acquisitions

ILG Acquisition

On September 1, 2018, (the “Acquisition Date”), we completed the ILG Acquisition. ILG is a leading provider of professionally delivered vacation experiences with a portfolio of leisure businesses ranging from vacation exchange and rental services to vacation ownership, and is the exclusive global licensee for the Hyatt, Sheraton and Westin brands in vacation ownership. The combination of our brands created a leading global provider of upper-upscale vacation ownership, exchange networks and management services with access to world-class loyalty programs and an expanded portfolio of highly demanded vacation destinations.

Shareholders of ILG received 0.165 shares of our common stock and $14.75 in cash for each share of ILG common stock. The following table presents the fair value of each class of consideration transferred at the Acquisition Date, as adjusted at June 30, 2019.



(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	30
	$	4,215

Preliminary Fair Values of Assets Acquired and Liabilities Assumed

We accounted for the ILG Acquisition as a business combination, which required us to record the assets acquired and liabilities assumed at fair value as of the Acquisition Date. The amounts recorded for certain assets and liabilities are preliminary in nature and are subject to adjustment as additional information is obtained about the facts and circumstances that existed as of the Acquisition Date. We are continuing to evaluate the underlying inputs and assumptions used in our valuations. Accordingly, these preliminary estimates are subject to change during the measurement period, which is up to one year from the Acquisition Date, as permitted under GAAP. Any potential adjustments could be material in relation to the values presented in the table below.

The following table presents our preliminary estimates of the fair values of the assets that we acquired and the liabilities that we assumed on the Acquisition Date in connection with the business combination as previously reported at December 31, 2018 and as adjusted at June 30, 2019. During the second quarter of 2019, we refined our valuation models related to certain acquired property and equipment and our assumptions related to certain acquired management agreements, and recorded an indemnification asset and corresponding liability for tax matters that we believe will be indemnified. See Footnote 5, “Income Taxes” for further information.



($ in millions)	September 1, 2018 (as reported at December 31, 2018)			Adjustments			September 1, 2018 (as adjusted at June 30, 2019)
Vacation ownership notes receivable	$	753		$	—		$	753
Inventory	474			—			474
Property and equipment	374			(1		)	373
Intangible assets	1,166			(3		)	1,163
Other assets	620			42			662
Deferred revenue	(217		)	—			(217		)
Deferred taxes	(179		)	4			(175		)
Debt	(392		)	—			(392		)
Securitized debt from VIEs	(702		)	—			(702		)
Other liabilities	(511		)	(37		)	(548		)
Net assets acquired	1,386			5			1,391
Goodwill⁽¹⁾	2,828			(4		)	2,824
	$	4,214		$	1		$	4,215

_________________________


⁽¹⁾	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.

Vacation Ownership Notes Receivable

We acquired vacation ownership notes receivable, which consist of loans to customers who purchased vacation ownership products and chose to finance their purchase. These vacation ownership notes receivable are collateralized by the underlying vacation ownership interests (“VOIs”) and generally have terms ranging from five to 15 years. We provisionally estimated the fair value of the vacation ownership notes receivables using a discounted cash flow model, which calculated a present value of expected future cash flows over the term of the respective vacation ownership notes receivable (Level 2). We are continuing to evaluate the significant assumptions underlying the discounted cash flow model including default and prepayment assumptions, which could result in changes to our provisional estimate. See Footnote 6 “Vacation Ownership Notes Receivable” for additional information.

Inventory

We acquired inventory, which consisted of completed unsold VOIs and vacation ownership projects under construction. We provisionally estimated the value of acquired inventory using an income approach, which is primarily based on significant Level 3 assumptions, such as estimates of future income growth, capitalization rates, discount rates and capital expenditure needs of the relevant properties. We are continuing to assess the market assumptions and property conditions, which could result in changes to these provisional values.

Property and Equipment

We acquired property and equipment, which included four owned hotels, information technology, ancillary business assets, furniture and equipment and land held for future development. We provisionally estimated the value of the property and equipment using a combination of the income, cost, and market approaches, which are primarily based on significant Level 3 assumptions, such as estimates of future income growth, capitalization rates, discount rates and capital expenditure needs of the hotels. We are continuing to refine our estimate of the capital expenditure needs of one of the owned hotels, which could result in a change to the provisional value of that asset. We do not expect any other material changes to the provisional estimates.

Goodwill

We allocated the carrying amount of our preliminary estimate of goodwill to our Vacation Ownership and our Exchange & Third-Party Management reporting units. The following table details the carrying amount of our goodwill at June 30, 2019 and December 31, 2018, and reflects our preliminary estimate of goodwill added as a result of the ILG Acquisition. The assignment of goodwill to our reporting units may change during the measurement period as we have not yet finalized the fair value of the assets and liabilities assumed in the ILG Acquisition.



($ in millions)	Vacation Ownership Segment			Exchange & Third-Party Management Segment		Total Consolidated
Balance at December 31, 2018	$	2,448		$	380	$	2,828
Adjustments	(4		)	—		(4		)
Balance at June 30, 2019	$	2,444		$	380	$	2,824

Intangible Assets

The following table presents our preliminary estimates of the fair values of ILG’s identified intangible assets and their related estimated useful lives as of the Acquisition Date.



	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⁾	30		indefinite
Trade names and trademarks	82		indefinite
	$	1,163

_________________________

⁽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. These management contracts were entirely related to the VRI Europe business, which we disposed of in the fourth quarter of 2018.

We provisionally estimated the value of the trade names and trademarks using the relief-from-royalty method, which applies an estimated royalty rate to forecasted future cash flows, discounted to present value. We estimated the value of management contracts and member relationships using the multi-period excess earnings method, which is a variation of the income approach. This method estimates an intangible asset’s value based on the present value of the incremental after-tax cash flows attributable to the intangible asset. These valuation approaches utilize Level 3 inputs, and we continue to review the related contracts in addition to evaluating the inputs, including the discount rates and renewal and growth assumptions, which could result in changes to these provisional values.

Deferred Revenue

Deferred revenue primarily relates to membership fees, which are deferred and recognized over the terms of the applicable memberships, ranging from one to five years, on a straight-line basis. Additionally, deferred revenue includes maintenance fees collected from owners, in certain cases, which are earned by the relevant property owners’ association over the applicable period. We provisionally estimated the value of the deferred revenue utilizing Level 3 inputs based on a review of existing deferred revenue balances against legal performance obligations. While we continue to review the related contracts in addition to evaluating the inputs, we do not expect a material change to the provisional estimate.

Deferred Income Taxes

Deferred income taxes primarily relate to the fair value of assets and liabilities acquired, including vacation ownership notes receivable, inventory, property and equipment, intangible assets and debt. We provisionally estimated deferred income taxes based on statutory rates in the jurisdictions of the legal entities where the acquired assets and liabilities are recorded. We are continuing to assess the tax rates used, and we will update our estimate of deferred income taxes based on changes to our provisional valuations of the related assets and liabilities and refinement of the effective tax rates, which could result in changes to these provisional values.

Debt

We valued the IAC Notes (as defined in Footnote 14 “Debt”) using a quoted market price, which is considered a Level 2 input as it is observable in the market; 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. The carrying value of the outstanding balance on the revolving credit facility that was acquired (the “ILG Revolving Credit Facility”) approximated fair value, as the contractual interest rate was variable plus an applicable margin based credit rating (Level 3 input). The ILG Revolving Credit Facility was extinguished and all amounts due were repaid in full upon completion of the ILG Acquisition.

Securitized Debt from VIEs

We provisionally estimated the fair value of the securitized debt from VIEs using a discounted cash flow model. The significant assumptions in our analysis include default rates, prepayment rates, bond interest rates and other structural factors (Level 3 inputs). We are continuing to evaluate the significant assumptions underlying the discounted cash flow model including default and prepayment assumptions, which could result in changes to our provisional estimate.

Pro Forma Results of Operations

The following unaudited pro forma information presents the combined results of operations of Marriott Vacations Worldwide and ILG as if we had completed the ILG Acquisition on December 30, 2016, the last day of our 2016 fiscal year, but using our preliminary fair values of assets and liabilities as of the Acquisition Date. As required by GAAP, these unaudited pro forma results do not reflect any synergies from operating efficiencies. 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)	Six Months Ended June 30, 2018
Revenues	$	2,097
Net income	$	71
Net income attributable to common shareholders	$	68
EARNINGS PER SHARE ATTRIBUTABLE TO COMMON SHAREHOLDERS
Basic	$	1.45
Diluted	$	1.42

The unaudited pro forma results above include $27 million of ILG acquisition-related costs for the six months ended June 30, 2018.

ILG Results of Operations

The following table presents the results of Legacy-ILG operations included in our Income Statement for the three and six months ended June 30, 2019.



($ in millions)	Three Months Ended June 30, 2019		Six Months Ended June 30, 2019
Revenue	$	455	$	913
Net income attributable to common shareholders	$	34	$	66

Marco Island, Florida

During the first quarter of 2018, we acquired 20 completed vacation ownership units located at our resort in Marco Island, Florida for $24 million. We accounted for the transaction as an asset acquisition with all of the purchase price allocated to Inventory.

REVENUE

6 Months Ended

Jun. 30, 2019

REVENUE



4.	REVENUE

Sources of Revenue by Segment

The following tables detail the sources of revenue by segment for the time periods presented.



	Three Months Ended June 30, 2019
($ in millions)	Vacation Ownership		Exchange & Third-Party Management		Corporate and Other			Total
Sale of vacation ownership products	$	350	$	—	$	—		$	350

Ancillary revenues	66		1		—			67
Management fee revenues	38		11		(3		)	46
Other services revenues	30		63		33			126
Management and exchange	134		75		30			239

Rental	141		17		—			158

Cost reimbursements	258		22		(28		)	252
Revenue from contracts with customers	883		114		2			999

Financing	68		1		—			69
Total Revenues	$	951	$	115	$	2		$	1,068



	Three Months Ended June 30, 2018
($ in millions)	Vacation Ownership		Exchange & Third-Party Management		Corporate and Other		Total
Sale of vacation ownership products	$	205	$	—	$	—	$	205

Ancillary revenues	36		—		—		36
Management fee revenues	26		—		—		26
Other services revenues	16		—		—		16
Management and exchange	78		—		—		78

Rental	74		—		—		74

Cost reimbursements	202		—		—		202
Revenue from contracts with customers	559		—		—		559

Financing	36		—		—		36
Total Revenues	$	595	$	—	$	—	$	595



	Six Months Ended June 30, 2019
($ in millions)	Vacation Ownership		Exchange & Third-Party Management		Corporate and Other			Total
Sale of vacation ownership products	$	651	$	—	$	—		$	651

Ancillary revenues	123		2		—			125
Management fee revenues	75		26		(7		)	94
Other services revenues	61		129		69			259
Management and exchange	259		157		62			478

Rental	288		34		1			323

Cost reimbursements	549		46		(56		)	539
Revenue from contracts with customers	1,747		237		7			1,991

Financing	135		2		—			137
Total Revenues	$	1,882	$	239	$	7		$	2,128



	Six Months Ended June 30, 2018
($ in millions)	Vacation Ownership		Exchange & Third-Party Management		Corporate and Other		Total
Sale of vacation ownership products	$	380	$	—	$	—	$	380

Ancillary revenues	64		—		—		64
Management fee revenues	50		—		—		50
Other services revenues	34		—		—		34
Management and exchange	148		—		—		148

Rental	149		—		—		149

Cost reimbursements	418		—		—		418
Revenue from contracts with customers	1,095		—		—		1,095

Financing	71		—		—		71
Total Revenues	$	1,166	$	—	$	—	$	1,166

Timing of Revenue from Contracts with Customers by Segment

The following tables detail the timing of revenue from contracts with customers by segment for the time periods presented.



	Three Months Ended June 30, 2019
($ in millions)	Vacation Ownership		Exchange & Third-Party Management		Corporate and Other		Total
Services transferred over time	$	471	$	55	$	2	$	528
Goods or services transferred at a point in time	412		59		—		471
	$	883	$	114	$	2	$	999



	Three Months Ended June 30, 2018
($ in millions)	Vacation Ownership		Exchange & Third-Party Management		Corporate and Other		Total
Services transferred over time	$	315	$	—	$	—	$	315
Goods or services transferred at a point in time	244		—		—		244
	$	559	$	—	$	—	$	559



	Six Months Ended June 30, 2019
($ in millions)	Vacation Ownership		Exchange & Third-Party Management		Corporate and Other		Total
Services transferred over time	$	978	$	113	$	7	$	1,098
Goods or services transferred at a point in time	769		124		—		893
	$	1,747	$	237	$	7	$	1,991



	Six Months Ended June 30, 2018
($ in millions)	Vacation Ownership		Exchange & Third-Party Management		Corporate and Other		Total
Services transferred over time	$	643	$	—	$	—	$	643
Goods or services transferred at a point in time	452		—		—		452
	$	1,095	$	—	$	—	$	1,095

Sale of Vacation Ownership Products

Revenues were reduced during the second quarter and first half of 2019 by $4 million and $3 million, respectively, due to changes in our estimate of variable consideration for performance obligations that were satisfied in prior periods.

Receivables, Contract Assets & Contract Liabilities

The following table shows the composition of our receivables and contract liabilities. We had no contract assets at either June 30, 2019 or December 31, 2018.



($ in millions)	At June 30, 2019		At December 31, 2018
Receivables
Accounts receivable	$	127	$	164
Vacation ownership notes receivable, net	2,098		2,039
	$	2,225	$	2,203
Contract Liabilities
Advance deposits	$	186	$	171
Deferred revenue	356		319
	$	542	$	490

Revenue recognized during the second quarter and first half of 2019 that was included in our contract liabilities balance at December 31, 2018 was $51 million and $203 million, respectively.

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 June 30, 2019, over 90 percent of this amount is expected to be recognized as revenue over the next two years.

INCOME TAXES

6 Months Ended

Jun. 30, 2019

Income Tax Disclosure [Abstract]

INCOME TAXES



5.	INCOME TAXES

Our provision for income taxes is calculated using an estimated annual effective tax rate, based upon expected annual income, less losses in certain jurisdictions, permanent items, statutory rates and planned tax strategies in the various jurisdictions in which we operate. However, discrete items related to prior year tax items are treated separately.

Our interim effective tax rate was 32.97 percent and 38.08 percent for the three months ended June 30, 2019 and June 30, 2018, respectively. The decrease in effective tax rate is predominately attributable to a change in our projected mix of earnings in international jurisdictions with differing tax rates and jurisdictions where valuation allowances are recorded, primarily as a result of the ILG Acquisition.

Our interim effective tax rate was 35.55 percent and 27.05 percent for the six months ended June 30, 2019 and June 30, 2018, respectively. The increase in the effective tax rate is predominately attributable to the change in expected annual income primarily as a result of the ILG Acquisition, and discrete tax adjustments relating to share-based compensation.

We file income tax returns with U.S. federal and state and non-U.S. jurisdictions and are subject to audits in these jurisdictions. Certain of our returns are being audited in various jurisdictions for years 2012 through 2017. During the second quarter of 2019, we adjusted our preliminary purchase price allocation for the ILG Acquisition to record a $36 million reserve for Legacy-ILG tax matters prior to the ILG Acquisition. We expect that we will be indemnified for this amount pursuant to the Tax Matters Agreement dated May 11, 2016, among Starwood Hotels & Resorts Worldwide, Inc. (“Starwood”), Vistana Signature Experiences, Inc., and Interval Leisure Group, Inc., and as such, have recorded a corresponding indemnification asset. Our unrecognized tax benefit balance could change significantly during the next fiscal year as a result of audits in various jurisdictions and our total unrecognized tax benefit balance that, if recognized, would impact our effective tax rate, was $2 million at both June 30, 2019 and December 31, 2018.

VACATION OWNERSHIP NOTES RECEIVABLE

6 Months Ended

Jun. 30, 2019

VACATION OWNERSHIP NOTES RECEIVABLE



6.	VACATION OWNERSHIP NOTES RECEIVABLE

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



	June 30, 2019						December 31, 2018
($ in millions)	Originated		Acquired		Total		Originated		Acquired		Total
Securitized	$	1,209	$	472	$	1,681	$	1,070	$	557	$	1,627
Non-securitized
Eligible for securitization⁽¹⁾	83		11		94		85		22		107
Not eligible for securitization⁽¹⁾	261		62		323		233		72		305
Subtotal	344		73		417		318		94		412
	$	1,553	$	545	$	2,098	$	1,388	$	651	$	2,039

_________________________


⁽¹⁾	Refer to Footnote 7 “Financial Instruments” for a 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.



	Three Months Ended				Six Months Ended
($ in millions)	June 30, 2019		June 30, 2018		June 30, 2019		June 30, 2018
Interest income associated with vacation ownership notes receivable — securitized	$	59	$	27	$	118	$	53
Interest income associated with vacation ownership notes receivable — non-securitized	8		7		14		15
Total interest income associated with vacation ownership notes receivable	$	67	$	34	$	132	$	68

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 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 December 31, 2018 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)	Six Months Ended June 30, 2019
Accretable yield balance at December 31, 2018	$	199
Accretion	(43		)
Reclassification from non-accretable difference	(3		)
Accretable yield balance at June 30, 2019	$	153

Non-accretable difference at June 30, 2019	$	55

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 table shows future contractual principal payments, as well as interest rates for our non-securitized and securitized acquired vacation ownership notes receivable, at June 30, 2019.



	Acquired Vacation Ownership Notes Receivable
($ in millions)	Non-Securitized		Securitized		Total
2019, remaining	$	7	$	55	$	62
2020	7		53		60
2021	8		53		61
2022	8		53		61
2023	8		52		60
Thereafter	35		206		241
Balance at June 30, 2019	$	73	$	472	$	545
Weighted average stated interest rate	13.5%		13.4%		13.4%
Range of stated interest rates	0.0% to 17.9%		6.0% to 16.9%		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 June 30, 2019.



	Originated Vacation Ownership Notes Receivable
($ in millions)	Non-Securitized		Securitized		Total
2019, remaining	$	34	$	65	$	99
2020	45		114		159
2021	37		120		157
2022	32		125		157
2023	29		128		157
Thereafter	167		657		824
Balance at June 30, 2019	$	344	$	1,209	$	1,553
Weighted average stated interest rate	11.8%		12.6%		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.

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



	Originated Vacation Ownership Notes Receivable Reserve
($ in millions)	Non-Securitized			Securitized			Total
Balance at December 31, 2018	$	61		$	79		$	140
Increase in vacation ownership notes receivable reserve	38			8			46
Securitizations	(35		)	35			—
Clean-up call⁽¹⁾	18			(18		)	—
Write-offs	(23		)	—			(23		)
Defaulted vacation ownership notes receivable repurchase activity⁽²⁾	11			(11		)	—
Balance at June 30, 2019	$	70		$	93		$	163

_________________________


⁽¹⁾	Refers to our voluntary repurchase of previously securitized non-defaulted vacation ownership notes receivable to retire outstanding vacation ownership notes receivable from our Warehouse Credit Facility.


⁽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

Although we consider loans to owners to be past due if we do not receive payment within 30 days of the due date, we suspend accrual of interest only on those loans that are over 90 days past due. We consider loans over 150 days past due to be in default and fully reserve such amounts. We apply payments we receive for vacation ownership notes receivable on non-accrual status first to interest, then to principal and any remainder to fees. We resume accruing interest when vacation ownership notes receivable are less than 90 days past due. We do not accept payments for vacation ownership notes receivable during the foreclosure process unless the amount is sufficient to pay all past due principal, interest, fees and penalties owed and fully reinstate the note. We write off vacation ownership notes receivable against the reserve once we receive title to the vacation ownership products through the foreclosure or deed-in-lieu process or, in Asia Pacific or Europe, when revocation is complete. For both Legacy-MVW non-securitized and securitized vacation ownership notes receivable, we estimated average remaining default rates of 6.94 percent and 7.01 percent as of June 30, 2019 and December 31, 2018, respectively. A 0.5

percentage point increase in the estimated default rate would have resulted in an increase in our vacation ownership notes receivable reserve of $7 million as of both June 30, 2019 and December 31, 2018.

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.



	Legacy-MVW Vacation Ownership Notes Receivable
($ in millions)	Non-Securitized		Securitized		Total
Investment in vacation ownership notes receivable on non-accrual status at June 30, 2019	$	41	$	8	$	49
Investment in vacation ownership notes receivable on non-accrual status at December 31, 2018	$	36	$	9	$	45
Average investment in vacation ownership notes receivable on non-accrual status during the second quarter of 2019	$	39	$	10	$	49
Average investment in vacation ownership notes receivable on non-accrual status during the second quarter of 2018	$	39	$	8	$	47
Average investment in vacation ownership notes receivable on non-accrual status during the first half of 2019	$	38	$	9	$	47
Average investment in vacation ownership notes receivable on non-accrual status during the first half of 2018	$	39	$	7	$	46

The following table shows the aging of the recorded investment in principal, before reserves, in Legacy-MVW vacation ownership notes receivable as of June 30, 2019.



	Legacy-MVW Vacation Ownership Notes Receivable
($ in millions)	Non-Securitized		Securitized		Total
31 – 90 days past due	$	6	$	21	$	27
91 – 150 days past due	5		8		13
Greater than 150 days past due	36		—		36
Total past due	47		29		76
Current	223		1,160		1,383
Total vacation ownership notes receivable	$	270	$	1,189	$	1,459

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

Legacy-ILG Vacation Ownership Notes Receivable

On an ongoing basis, we monitor 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.

•

Non-performing — Our vacation ownership notes receivable are generally considered non-performing if interest or principal is more than 30 days past due. All non-performing vacation ownership notes receivable are placed on non-accrual status and we do not resume interest accrual until the vacation ownership notes receivable becomes contractually current. We apply payments we receive for vacation ownership notes receivable on non-performing status first to interest, then to principal, and any remainder to fees.

We consider 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 or 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 property they have acquired, supplemented by the FICO scores of the customers.

At June 30, 2019 and December 31, 2018, the weighted average FICO score within our consolidated Legacy-ILG vacation ownership notes receivable pools was 711 and 710, respectively, based upon the outstanding vacation ownership notes receivable balance at time of origination. The average estimated rate for all future defaults for our Legacy-ILG consolidated outstanding pool of vacation ownership notes receivable as of June 30, 2019 and December 31, 2018 was 12.41 percent and 12.37 percent, respectively. A 0.5 percentage point increase in the estimated default rate on the Legacy-ILG originated vacation ownership notes receivable would have resulted in an increase in the related vacation ownership notes receivable reserve of $2 million and $1 million as of June 30, 2019 and December 31, 2018, respectively.

The following table shows the Legacy-ILG acquired vacation ownership notes receivable by brand and FICO score as of June 30, 2019.



	Acquired Vacation Ownership Notes Receivable
($ in millions)	700 +		600 - 699		< 600		No Score⁽¹⁾		Total
Westin	$	127	$	70	$	5	$	17	$	219
Sheraton	120		104		19		45		288
Hyatt	17		12		2		—		31
Other	4		1		—		2		7
	$	268	$	187	$	26	$	64	$	545

_________________________


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

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 June 30, 2019.



	Originated Vacation Ownership Notes Receivable
($ in millions)	700 +		600 - 699		< 600		No Score⁽¹⁾		Total
Westin	$	80	$	27	$	2	$	14	$	123
Sheraton	58		36		6		21		121
Hyatt	9		4		1		—		14
	$	147	$	67	$	9	$	35	$	258

_________________________


⁽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 June 30, 2019 and 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
As of June 30, 2019	$	258	$	252	$	3	$	2	$	1	$	—	$	6

As of 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

6 Months Ended

Jun. 30, 2019

FINANCIAL INSTRUMENTS



7.	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. The table also excludes acquired vacation ownership notes receivable which are remeasured at each period end based on expected future cash flows. See Footnote 6 “Vacation Ownership Notes Receivable” for additional information on our acquired vacation ownership notes receivable.



	At June 30, 2019						At December 31, 2018
($ in millions)	Carrying Amount			Fair Value			Carrying Amount			Fair Value
Originated vacation ownership notes receivable	$	1,553		$	1,584		$	1,388		$	1,413
Other assets	41			41			66			66
Total financial assets	$	1,594		$	1,625		$	1,454		$	1,479

Securitized debt, net	$	(1,792	)	$	(1,820	)	$	(1,714	)	$	(1,718	)
Exchange Notes, net	(88		)	(89		)	(88		)	(87		)
Senior Unsecured Notes, net	(742		)	(807		)	(741		)	(726		)
IAC Notes	(141		)	(140		)	(141		)	(140		)
Term Loan, net	(884		)	(895		)	(888		)	(887		)
Revolving Corporate Credit Facility, net	(76		)	(76		)	—			—
Convertible notes, net	(203		)	(221		)	(199		)	(198		)
Non-interest bearing note payable, net	—			—			(30		)	(30		)
Total financial liabilities	$	(3,926	)	$	(4,048	)	$	(3,801	)	$	(3,786	)

Originated Vacation Ownership Notes Receivable



	At June 30, 2019				At December 31, 2018
($ in millions)	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Originated vacation ownership notes receivable
Securitized	$	1,209	$	1,238	$	1,070	$	1,093

Eligible for securitization	83		85		85		87
Not eligible for securitization	261		261		233		233
Non-securitized	344		346		318		320
	$	1,553	$	1,584	$	1,388	$	1,413

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 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 $34 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 $7 million that are marked to market as trading securities using quoted market prices (Level 1 inputs).

Securitized Debt

We generate cash flow estimates by modeling all bond tranches for our active vacation ownership notes receivable securitization transactions, with consideration for the collateral specific to each tranche. The key drivers in our analysis include default rates, prepayment rates, bond interest rates and other structural factors, which we use to estimate the projected cash flows. In order to estimate market credit spreads by rating, we obtain indicative credit spreads from investment banks that actively issue and facilitate the market for vacation ownership securities and determine an average credit spread by rating level of the different tranches. We then apply those estimated market spreads to swap rates in order to estimate an underlying discount rate for calculating the fair value of the active bonds payable. We concluded that this fair value measurement should be categorized within Level 3.

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 and 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 that the fair value of our Term Loan (as defined in Footnote 14 “Debt”) 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 Term Loan could be retired or transferred. We concluded that this fair value measurement should be categorized within Level 3.

Revolving Corporate Credit Facility

We estimate that the fair value of our Revolving Corporate Credit Facility (as defined in Footnote 11 “Contingencies and Commitments”) approximates its gross carrying value as the contractual interest rate is variable plus an applicable margin. We concluded that this fair value measurement should be categorized within Level 3.

Convertible Notes

We estimate the fair value of our Convertible 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 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.

EARNINGS PER SHARE

6 Months Ended

Jun. 30, 2019

EARNINGS PER SHARE



8.	EARNINGS PER SHARE

Basic earnings per common share attributable to common shareholders 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 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 common share applicable to common shareholders by application of the treasury stock method using average market prices during the period.

Our calculation of diluted earnings per share attributable to common shareholders 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 June 30, 2019 or June 30, 2018, there was no dilutive impact from the Convertible Notes for either the second quarter or first half of 2019 or 2018.

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 during the second quarter of 2019 to $175.79, 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 attributable to common shareholders.

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



	Three Months Ended				Six Months Ended
(in millions, except per share amounts)	June 30, 2019⁽¹⁾		June 30, 2018⁽¹⁾		June 30, 2019⁽¹⁾		June 30, 2018⁽¹⁾
Computation of Basic Earnings Per Share Attributable to Common Shareholders
Net income attributable to common shareholders	$	49	$	11	$	73	$	47
Shares for basic earnings per share	44.7		26.7		45.1		26.7
Basic earnings per share	$	1.11	$	0.40	$	1.62	$	1.75
Computation of Diluted Earnings Per Share Attributable to Common Shareholders
Net income attributable to common shareholders	$	49	$	11	$	73	$	47
Shares for basic earnings per share	44.7		26.7		45.1		26.7
Effect of dilutive shares outstanding
Employee stock options and SARs	0.3		0.4		0.3		0.4
Restricted stock units	0.2		0.2		0.2		0.2
Shares for diluted earnings per share	45.2		27.3		45.6		27.3
Diluted earnings per share	$	1.10	$	0.39	$	1.61	$	1.71

_______________________________

⁽¹⁾

The computations of diluted earnings per share attributable to common shareholders exclude approximately 452,000 and 307,000 shares of common stock, the maximum number of shares issuable as of June 30, 2019 and June 30, 2018, respectively, upon the vesting of certain performance-based awards because the performance conditions required to be met for the shares subject to such awards to vest were not achieved by the end of the reporting period.

In accordance with the applicable accounting guidance for calculating earnings per share, for the second quarter of 2019, we excluded from our calculation of diluted earnings per share 167,760 shares underlying stock appreciation rights (“SARs”) that may settle in shares of common stock because the exercise prices of such SARs, which ranged from $100.52 to $143.38, were greater than the average market price for the applicable period.

For the first half of 2019, we excluded from our calculation of diluted earnings per share 249,737 shares underlying SARs that may settle in shares of common stock because the exercise prices of such SARs, which ranged from $97.53 to $143.38, were greater than the average market price for the applicable period.

For the second quarter and first half of 2018, we excluded from our calculation of diluted earnings per share 56,649 shares underlying SARs that may settle 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.

INVENTORY

6 Months Ended

Jun. 30, 2019

INVENTORY



9.	INVENTORY

The following table shows the composition of our inventory balances:



($ in millions)	At June 30, 2019		At December 31, 2018
Finished goods⁽¹⁾	$	828	$	843
Work-in-progress	48		9
Real estate inventory	876		852
Other	12		11
	$	888	$	863

_________________________


⁽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 products 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. Product cost true-up activity relating to vacation ownership products increased carrying values of inventory by $4 million and less than $1 million during the first half of 2019 and the first half of 2018, respectively.

In addition to the above, at June 30, 2019, we had $48 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

6 Months Ended

Jun. 30, 2019

Commitments and Contingencies Disclosure [Abstract]

PROPERTY AND EQUIPMENT



10.	PROPERTY AND EQUIPMENT

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



($ in millions)	At June 30, 2019			At December 31, 2018
Land and land improvements	$	373		$	466
Buildings and leasehold improvements	403			404
Furniture, fixtures and other equipment	87			88
Information technology	311			297
Construction in progress	38			32
	1,212			1,287
Accumulated depreciation	(375		)	(336		)
	$	837		$	951

As a result of the ILG Acquisition, we are performing a comprehensive review of our property and equipment to determine the best strategic direction with respect to these assets for the combined company. These assets include undeveloped parcels, future phases of existing resorts, operating hotels and other non-core assets. A key focus of the comprehensive review is to evaluate opportunities to reduce holdings in markets where we have excess supply so that future inventory spend will be focused on markets that create incremental cost-effective sales locations in areas of high customer demand. The result of this review could have a material impact on the carrying value of certain assets, which, in turn, would result in non-cash impairments.

During the second quarter of 2019, we entered into a contract to sell land and land improvements associated with a future phase of an existing resort located in Orlando, Florida for $10 million, which was less than the carrying value of the land and land improvements. As a result, we recorded a non-cash impairment of $26 million in the first half of 2019. The impairment is primarily attributable to the fact that the book value of the assets to be sold exceeds the sales price because the book value includes allocations of common costs incurred when we built the infrastructure for the resort, including future phases.

CONTINGENCIES AND COMMITMENTS

6 Months Ended

Jun. 30, 2019

CONTINGENCIES AND COMMITMENTS



11.	CONTINGENCIES AND COMMITMENTS

Commitments and Letters of Credit

As of June 30, 2019, 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 $62 million, of which we expect $19 million, $19 million, $10 million, $7 million, $6 million and $1 million will be paid in the remainder of 2019, 2020, 2021, 2022, 2023 and thereafter, respectively.


•	We have commitments of $3 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 attributable to a related finance 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 was 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 2020 and to make the remaining payments with respect to these units when specific construction milestones are completed, as follows: $7 million in 2019, $23 million in 2020 and $2 million in 2021.

•

During the second 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 attributable to a related finance 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: $57 million in 2019, $55 million in 2020 and $46 million in 2021. We currently manage this property, which was rebranded 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. Subsequent to the end of the second quarter of 2019, we made a payment of $57 million relating to this commitment.

Surety bonds issued as of June 30, 2019 totaled $78 million, the majority of which were requested by federal, state or local governments in connection with our operations.

As of June 30, 2019, we had $4 million of letters of credit outstanding under our $600 million revolving credit facility (the “Revolving Corporate Credit Facility”). In addition, as of June 30, 2019, we had $4 million in letters of credit outstanding related to and in lieu of reserves required for several vacation ownership notes receivable securitization transactions outstanding. These letters of credit are not issued pursuant to, nor do they impact our borrowing capacity under, the Revolving Credit Facility.

We estimate the cash outflow associated with completing the phases of our existing portfolio of vacation ownership projects currently under development will be approximately $17 million, of which $3 million is included within liabilities on our Balance Sheet at June 30, 2019. This estimate is based on our current development plans, which remain subject to change, and we expect the phases currently under development will be completed by the end of 2019.

Guarantees

Certain of our rental management agreements in our Exchange & Third-Party Management segment provide for owners of properties we manage to receive specified percentages or guaranteed amounts of the rental revenue generated under our management. In these cases, the operating expenses for the rental operations are paid from the revenue generated by the rentals, the owners are then paid their contractual percentages or guaranteed amounts, and our vacation rental business either retains the balance (if any) as its fee or makes up the deficit. At June 30, 2019, our maximum exposure under these guarantees is $37 million, of which $8 million, $10 million, $9 million, $4 million, $2 million and $4 million relate to the remainder of 2019, 2020, 2021, 2022, 2023 and thereafter. In addition, our maximum exposure under other guarantees is $4 million.

Loss Contingencies

In March 2017, RCHFU, L.L.C. and other owners at The Ritz-Carlton Club, Aspen Highlands (“RCC Aspen Highlands”) filed a complaint in an action pending in the U.S. District Court for the District of Colorado against us and certain third parties, alleging that their fractional interests were devalued by the affiliation of the RCC Aspen Highlands and other Ritz-Carlton Clubs with our points-based Marriott Vacation Club Destinations (“MVCD”) program. The plaintiffs are seeking compensatory damages, disgorgement, fees and costs.

In May 2016, a purported class-action lawsuit was filed in the U.S. District Court for the Middle District of Florida by Anthony and Beth Lennen against us and certain third parties. The complaint challenges the characterization of the beneficial interests in the MVCD trust that are sold to customers as real estate interests under Florida law, the structure of the trust, and associated operational aspects of the trust. The plaintiffs are seeking declaratory relief, an unwinding of the MVCD product, and punitive damages.

In December 2016, Flora and Bruce Gillespie and other owners and former owners of 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 in the U.S. District Court for the Southern District of New York against ILG, certain of its subsidiaries, and certain third parties alleging that 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 breached the relevant agreements and harmed the value of plaintiffs’ fractional interests. The plaintiffs are seeking compensatory damages, rescission, disgorgement, fees and costs.

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, which was amended to add Marriott International and Starwood as additional defendants in March 2017. The lawsuit was subsequently transferred to the U.S. District Court for the Middle District of Florida. The operative complaint alleges that 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 Marriott International and Starwood, breached their fiduciary duties related to sale and rental practices, and further alleges tortious interference with the management agreement, unjust enrichment, and anticompetitive conduct. The amended complaint also alleges anticompetitive conduct in connection with the renewal of the St. Regis NY Club management agreement. The plaintiff is seeking declaratory relief in connection with the Starpoint conversion program and the exchange program at the St. Regis NY Club, unspecified damages, and disgorgement of payments under the management and purchase agreements.

In April 2019, a purported class-action lawsuit was filed by Alan and Marjorie Helman and others against us in the Superior Court of the Virgin Islands, Division of St. Thomas alleging that their fractional interests were devalued by the affiliation of The Ritz-Carlton Club, St. Thomas and other Ritz-Carlton Clubs with our MVCD program. The lawsuit was subsequently removed to the U.S. District Court for the District of the Virgin Islands. The plaintiffs are seeking unspecified damages, disgorgement of profits, fees and costs.

In May 2019, the G.A. Resort Condominium Association Inc., the owners’ association for the fractional owners at the Hyatt Residence Club Grand Aspen resort (“HRC Grand Aspen”) filed a lawsuit against us in the District Court for the County of Pitkin, Colorado relating to the transfer of ownership of developer-owned fractional interests at HRC Grand Aspen to the HPC Trust Club for sale and use as a part of the Hyatt Residence Club Portfolio Program. The lawsuit was subsequently removed to the U.S. District Court for the District of Colorado. The plaintiff is seeking termination of the management agreement with the owners’ association, the annulment of certain amendments to governing documents at HRC Grand Aspen, the removal of fractional interests at HRC Grand Aspen from the HPC Trust Club, unspecified damages, disgorgement of profits, fees and costs.

We believe we have meritorious defenses to the claims in each of the above matters and intend to vigorously defend each matter.

In the ordinary course of our business, various claims and lawsuits have been filed or are pending against us. A number of these lawsuits and claims may exist at any given time. We record and accrue for legal contingencies when we determine that it is probable that a liability has been incurred and the amount of the loss can be reasonably estimated. In making such determinations, we evaluate, among other things, the degree of probability of an unfavorable outcome and, when it is probable that a liability has been incurred, our ability to make a reasonable estimate of loss. We review these accruals each reporting period and make revisions based on changes in facts and circumstances.

We have not accrued for any of the pending matters described above and we cannot estimate a range of the potential liability associated with these pending matters, if any, at this time. We have accrued for other claims and lawsuits, but the amount accrued is not material in the aggregate. For matters not requiring accrual, we do not believe that the ultimate outcome of such matters, individually and in the aggregate, will materially harm our financial position, cash flows, or overall trends in results of operations based on information currently available. However, legal proceedings are inherently uncertain, and while we believe that our accruals are adequate and/or we have valid defenses to the claims asserted, unfavorable rulings could occur that could, individually or in the aggregate, have a material adverse effect on our business, financial condition, or operating results.

Other

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. During 2018, we recovered $6 million. During the second quarter of 2019, we received $3 million from our insurance company as final settlement of our claim, and the insurance company waived the requirement for us to reimburse the insurance company for any monies subsequently recovered. We recorded a gain of $3 million in the Gains (losses) and other income (expense), net line of our Income Statement for the second quarter and first half of 2019. 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 June 30, 2019, the property insurance claim receivable related to this event and other 2017 storms was $10 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 our 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 our Income Statement for the year ended December 31, 2018. During the first quarter of 2019, we recorded an additional $9 million of other income relating to the final settlement of these business interruption insurance claims, which was recorded in the Gains (losses) and other income (expense), net line on our Income Statement for the six months ended June 30, 2019.

LEASES

6 Months Ended

Jun. 30, 2019



12.	LEASES

We account for leases in accordance with ASC 842, which we adopted using the optional transition method in the period of adoption as of January 1, 2019, without retrospective application to comparative periods. See Footnote 2 “Significant Accounting Policies and Recent Accounting Standards” for additional information.

Operating leases include lease arrangements for various land, corporate facilities, real estate and equipment. 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 various equipment supporting our operations, with varying terms and renewal option periods.

Finance leases (analogous to capital leases under ASC 840) include lease arrangements for ancillary and operations space for which it is reasonably certain we will exercise the option to purchase the underlying assets in connection with the commitment to purchase the associated operating property. See Footnote 11 “Contingencies and Commitments” for additional information regarding these transactions. In addition, we also lease various equipment supporting our operations and classify these leases as finance leases in accordance with ASC 842. The depreciable life of these assets are limited to the expected lease term, unless there is a transfer of title or purchase option reasonably certain of exercise.

Right-of-use assets and lease liabilities are recognized based on the present value of lease payments over the lease term at commencement date. For purposes of calculating lease liabilities, lease terms may be deemed to include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Macro-economic conditions are the primary factor used to estimate whether an option to extend a lease term will be exercised or not. For existing leases that commenced prior to the adoption of ASC 842, we made an accounting policy election to use our incremental borrowing rate, considering the remaining lease term and remaining minimum rental payments during transition, in establishing our lease liabilities. For new leases entered into after the adoption of ASC 842, we will use an incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments. Certain of our lease agreements include variable rental payments that are based on a percentage of retail sales over contractual levels and others include rental payments adjusted periodically for inflation.

The following table presents the carrying values of our leases and the classification on our Balance Sheet as of June 30, 2019.



($ in millions)	Balance Sheet Classification	At June 30, 2019
Operating lease assets	Other assets	$	121
Finance lease assets	Property and equipment	22
		$	143

Operating lease liabilities	Accrued liabilities	$	134
Finance lease liabilities	Debt	22
		$	156

The following table presents the lease costs and the classification on our Income Statement for the three and six months ended June 30, 2019.



($ in millions)	Income Statement Classification	Three Months Ended June 30, 2019		Six Months Ended June 30, 2019
Operating lease cost	Marketing and sales expense General and administrative expense	$	9	$	17
Finance lease cost
Amortization of right-of-use assets	Depreciation and amortization	1		2
Interest on lease liabilities	Interest expense	1		1
Variable lease cost	Marketing and sales expense	1		2
		$	12	$	22

The following table presents the maturity of our operating and financing lease liabilities as of June 30, 2019.



($ in millions)	Operating Leases			Finance Leases⁽¹⁾			Total
2019, remaining	$	15		$	11		$	26
2020	29			10			39
2021	21			2			23
2022	18			—			18
2023	16			—			16
Thereafter	103			—			103
Total lease payments	202			23			225
Less: Imputed interest	(68		)	(1		)	(69		)
	$	134		$	22		$	156

_________________________


⁽¹⁾	Finance lease payments include $17 million related to residual value guarantees associated with purchase commitments for operating properties in San Francisco, California and New York, New York. See Footnote 11 “Contingencies and Commitments” for additional information regarding these transactions.

Lease Term and Discount Rate



	At June 30, 2019
Weighted-average remaining lease term (in years)
Operating leases	11.4 years
Finance leases	0.7 years
Weighted-average discount rate
Operating leases	6.1%
Finance leases	4.8%

Other Information



($ in millions)	Six Months Ended June 30, 2019
Cash paid for amounts included in measurement of lease liabilities
Operating cash flows for finance leases	$	—
Operating cash flows for operating leases	17
Financing cash flows for finance leases	2
	$	19



12.	LEASES

The following table presents the carrying values of our leases and the classification on our Balance Sheet as of June 30, 2019.



($ in millions)	Balance Sheet Classification	At June 30, 2019
Operating lease assets	Other assets	$	121
Finance lease assets	Property and equipment	22
		$	143

Operating lease liabilities	Accrued liabilities	$	134
Finance lease liabilities	Debt	22
		$	156

The following table presents the lease costs and the classification on our Income Statement for the three and six months ended June 30, 2019.



($ in millions)	Income Statement Classification	Three Months Ended June 30, 2019		Six Months Ended June 30, 2019
Operating lease cost	Marketing and sales expense General and administrative expense	$	9	$	17
Finance lease cost
Amortization of right-of-use assets	Depreciation and amortization	1		2
Interest on lease liabilities	Interest expense	1		1
Variable lease cost	Marketing and sales expense	1		2
		$	12	$	22

The following table presents the maturity of our operating and financing lease liabilities as of June 30, 2019.



($ in millions)	Operating Leases			Finance Leases⁽¹⁾			Total
2019, remaining	$	15		$	11		$	26
2020	29			10			39
2021	21			2			23
2022	18			—			18
2023	16			—			16
Thereafter	103			—			103
Total lease payments	202			23			225
Less: Imputed interest	(68		)	(1		)	(69		)
	$	134		$	22		$	156

_________________________


⁽¹⁾	Finance lease payments include $17 million related to residual value guarantees associated with purchase commitments for operating properties in San Francisco, California and New York, New York. See Footnote 11 “Contingencies and Commitments” for additional information regarding these transactions.

Lease Term and Discount Rate



	At June 30, 2019
Weighted-average remaining lease term (in years)
Operating leases	11.4 years
Finance leases	0.7 years
Weighted-average discount rate
Operating leases	6.1%
Finance leases	4.8%

Other Information



($ in millions)	Six Months Ended June 30, 2019
Cash paid for amounts included in measurement of lease liabilities
Operating cash flows for finance leases	$	—
Operating cash flows for operating leases	17
Financing cash flows for finance leases	2
	$	19

SECURITIZED DEBT

6 Months Ended

Jun. 30, 2019

SECURITIZED DEBT



13.	SECURITIZED DEBT

The following table provides detail on our securitized debt, net of unamortized debt issuance costs.



($ in millions)	At June 30, 2019			At December 31, 2018
Vacation ownership notes receivable securitizations, gross⁽¹⁾	$	1,787		$	1,590
Unamortized debt discount and issuance costs	(15		)	(11		)
	1,772			1,579

Warehouse Credit Facility, gross	—			116
Unamortized debt issuance costs⁽²⁾	—			(1		)
	—			115

Other⁽³⁾	20			20
	$	1,792		$	1,714

_________________________


⁽¹⁾	Interest rates as of June 30, 2019 range from 2.2% to 6.3%, with a weighted average interest rate of 2.9%


⁽²⁾	Excludes $1 million of unamortized debt issuance costs as of June 30, 2019, as no cash borrowings were outstanding on the Warehouse Credit Facility at that time

(3)Non-recourse

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

On May 23, 2019, we completed the securitization of a pool of $459 million of vacation ownership notes receivable. Approximately $367 million of the vacation ownership notes receivable were purchased on May 23, 2019 by MVW 2019-1 LLC (the “2019-1 LLC”), and an additional $85 million of the vacation ownership notes receivable were purchased prior to June 30, 2019. As of June 30, 2019, the 2019-1 LLC held $6 million of the proceeds, which were released as the remaining vacation ownership notes receivable were purchased. On July 12, 2019, subsequent to the end of the second quarter of 2019, the 2019-1 LLC purchased the remaining $7 million of vacation ownership notes receivable and $6 million was released from restricted cash. In connection with the securitization, investors purchased in a private placement $450 million in vacation ownership loan backed notes from the 2019-1 LLC. Three classes of vacation ownership loan backed notes were issued by the 2019-1 LLC: $350 million of Class A Notes, $67 million of Class B Notes and $33 million of Class C Notes. The Class A Notes have an interest rate of 2.89 percent, the Class B Notes have an interest rate of 3.00 percent and the Class C Notes have an interest rate of 3.33 percent, for an overall weighted average interest rate of 2.94 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 the second quarter of 2019, and as of June 30, 2019, no securitized vacation ownership notes receivable pools were out of compliance with their respective established parameters. As of June 30, 2019, we had 12 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 securitized debt as of June 30, 2019.



	Vacation Ownership Notes Receivable Securitizations		Other		Total
($ in millions)	Vacation Ownership Notes Receivable Securitizations		Other		Total
Payments Year
2019, remaining	$	128	$	1	$	129
2020	225		2		227
2021	202		2		204
2022	191		3		194
2023	185		3		188
Thereafter	856		9		865
	$	1,787	$	20	$	1,807

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. During the first quarter of 2019, we securitized vacation ownership notes receivable under our Warehouse Credit Facility. The carrying amount of the vacation ownership notes receivable securitized was $146 million. The advance rate was 85 percent, which resulted in gross proceeds of $124 million. Net proceeds were $123 million due to the funding of reserve accounts of $1 million.

As of June 30, 2019, there were no cash borrowings outstanding under our Warehouse Credit Facility. All outstanding amounts were repaid with proceeds from our vacation ownership notes receivable securitization transaction during the second quarter of 2019.

DEBT

6 Months Ended

Jun. 30, 2019

DEBT



14.	DEBT

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



($ in millions)		At June 30, 2019			At December 31, 2018
Senior Notes
	Exchange Notes	$	89		$	89
	Unamortized debt issuance costs	(1		)	(1		)
		88			88

	Senior Unsecured Notes	750			750
	Unamortized debt issuance costs	(8		)	(9		)
		742			741

	IAC Notes	141			141

Corporate Credit Facility
	Term Loan	895			900
	Unamortized debt discount and issuance costs	(11		)	(12		)
		884			888

	Revolving Corporate Credit Facility	80			—
	Unamortized debt issuance costs⁽¹⁾	(4		)	—
		76			—

Convertible notes, gross		230			230
Unamortized debt discount and issuance costs		(27		)	(31		)
		203			199

Non-Interest bearing note payable		—			31
Unamortized debt discount		—			(1		)
		—			30

Finance leases		23			17
		$	2,157		$	2,104

_________________________


⁽¹⁾	Excludes $4 million of unamortized debt issuance costs as of December 31, 2018, as no cash borrowings were outstanding on the Revolving Corporate Credit Facility at that time.

The following table shows scheduled future principal payments for our debt, excluding finance leases, as of June 30, 2019.



	Payments Year
($ in millions)	Remaining 2019		2020		2021		2022		2023		Thereafter		Total
Exchange Notes	$	—	$	—	$	—	$	—	$	89	$	—	$	89
Senior Unsecured Notes	—		—		—		—		—		750		750
IAC Notes	—		—		—		—		141		—		141
Term Loan	4		9		9		9		9		855		895
Revolving Corporate Credit Facility	—		—		—		—		80		—		80
Convertible Notes	—		—		—		230		—		—		230
	$	4	$	9	$	9	$	239	$	319	$	1,605	$	2,185

Senior Notes

Our Senior Notes include the following: $750 million aggregate principal amount of 6.500% senior unsecured notes due 2026 issued in the third quarter of 2018 (the “Senior Unsecured Notes”); $350 million in aggregate principal amount of outstanding 5.625% Senior Unsecured Notes due 2023 assumed in connection with the ILG Acquisition (the “IAC Notes”); and 5.625% Senior Unsecured Notes due 2023 offered in exchange for the IAC Notes during the third quarter of 2018 (the “Exchange Notes”).

Corporate Credit Facility

Our corporate credit facility (“Corporate Credit Facility”), which provides support for our business, including ongoing liquidity and letters of credit, includes a $900 million term loan facility (the “Term Loan”) which matures on August 31, 2025, and a Revolving Corporate Credit Facility with a borrowing capacity of $600 million that terminates on August 31, 2023. The Term Loan bears interest at LIBOR plus 2.25 percent. 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 to 40 basis points per annum, also depending on our credit rating. The Revolving Corporate Credit Facility also includes a letter of credit sub-facility of $75 million. As of June 30, 2019, we were in compliance with the applicable financial and operating covenants under the Corporate Credit Facility.

We entered into $250 million of interest rate swaps under which we pay a fixed rate of 2.9625 percent and receive a floating interest rate through September 2023 and $200 million of interest rate swaps under which we pay a fixed rate of 2.2480 percent and receive a floating interest rate through April 2024, in each case to hedge a portion of our interest rate risk on the Term Loan. We also entered into a $100 million interest rate collar with a cap strike rate of 2.5000% and a floor strike rate of 1.8810% through April 2024 to further hedge our interest rate risk on the Term Loan. Both the interest rate swaps and the interest rate collar have been designated and qualify as cash flow hedges of interest rate risk and recorded in Other liabilities on our Balance Sheet as of June 30, 2019. We characterize payments we make in connection with these derivative instruments as interest expense and a reclassification of accumulated other comprehensive income for presentation purposes.

The following table reflects the activity in accumulated other comprehensive loss related to our derivative instruments during the first half of 2019:



($ in millions)	Derivative Instrument Adjustments
Balance at December 31, 2018	$	(6	)
Other comprehensive loss before reclassifications	(3		)
Reclassification to Income Statement	—
Net other comprehensive loss	(3		)
Balance at March 31, 2019	(9		)
Other comprehensive loss before reclassifications	(13		)
Reclassification to Income Statement	—
Net other comprehensive loss	(13		)
Balance at June 30, 2019	$	(22	)

Convertible Notes

Our $230 million of 1.50% Convertible Senior Notes due 2022 (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 second quarter of 2019 to 6.7825 shares of common stock per $1,000 principal amount of Convertible Notes (equivalent to a conversion price of approximately $147.44 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. As of June 30, 2019, the effective interest rate was 4.7% and the remaining discount amortization period was 3.2 years.

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



($ in millions)	At June 30, 2019			At December 31, 2018
Liability component
Principal amount	$	230		$	230
Unamortized debt discount	(23		)	(26		)
Unamortized debt issuance costs	(4		)	(5		)
Net carrying amount of the liability component	$	203		$	199

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

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



	Three Months Ended				Six Months Ended
($ in millions)	June 30, 2019		June 30, 2018		June 30, 2019		June 30, 2018
Contractual interest expense	$	—	$	1	$	1	$	2
Amortization of debt discount	1		2		3		3
Amortization of debt issuance costs	1		—		1		—
	$	2	$	3	$	5	$	5

Convertible Note Hedges and Warrants

In connection with the offering of the Convertible Notes, we concurrently entered into the following privately-negotiated separate transactions: 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, and warrant transactions (“Warrants”), whereby we sold to the counterparties to the Convertible Note Hedges warrants to acquire approximately 1.55 million shares of our common stock at an initial strike price of $176.68 per share. The strike price was subject to adjustment during the second quarter of 2019 to $175.79 per share when we declared a quarterly dividend of $0.45 per share. As of June 30, 2019, no Convertible Note Hedges or Warrants have been exercised.

Finance Leases

See Footnote 12 “Leases” for information on our finance leases accounted for under ASC 842.

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 MVWC 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. The IAC Notes are guaranteed by MVWC, ILG and certain other subsidiaries whose voting securities are wholly owned directly or indirectly by ILG. The Senior Unsecured Notes are guaranteed by MVWC and certain of its subsidiaries whose voting securities are wholly owned directly or indirectly by MVWC. The Exchange Notes are guaranteed by MVWC and its domestic subsidiaries that guarantee the Corporate Credit Facility. See Footnote 19 “Supplemental Guarantor Information” for additional information.

SHAREHOLDERS' EQUITY

6 Months Ended

Jun. 30, 2019

SHAREHOLDERS' EQUITY



15.	SHAREHOLDERS’ EQUITY

Marriott Vacations Worldwide has 100,000,000 authorized shares of common stock, par value of $0.01 per share. At June 30, 2019, there were 57,862,278 shares of Marriott Vacations Worldwide common stock issued, of which 43,882,669 shares were outstanding and 13,979,609 shares were held as treasury stock. 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. 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 June 30, 2019 or December 31, 2018.

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, 2018	11,687,774	$	793	$	67.85
For the first half of 2019	2,358,808	215		91.12
As of June 30, 2019	14,046,582	$	1,008	$	71.76

As of June 30, 2019, 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. Subsequent to the end of the second quarter of 2019, our Board of Directors authorized the extension of the duration of our existing share repurchase program to December 31, 2020, as well as the repurchase of up to 4.5 million additional shares of our common stock. 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 June 30, 2019, 0.6 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 first half of 2019 as follows:



Declaration Date	Shareholder Record Date	Distribution Date	Dividend per Share
February 15, 2019	February 28, 2019	March 14, 2019	$0.45
May 9, 2019	May 23, 2019	June 6, 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 June 30, 2019, this noncontrolling interest amounts to $10 million and is included on our Balance Sheet as a component of equity.

SHARE-BASED COMPENSATION

6 Months Ended

Jun. 30, 2019

Organization, Consolidation and Presentation of Financial Statements [Abstract]

SHARE-BASED COMPENSATION



16.	SHARE-BASED COMPENSATION

We maintain the Marriott Vacations Worldwide Corporation Stock and Cash Incentive Plan (the “MVW Stock Plan”) for the benefit of our officers, directors and employees. Under the MVW Stock Plan, we are authorized to award: (1) restricted stock units (“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 June 30, 2019, 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. As of June 30, 2019, 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:



	Three Months Ended				Six Months Ended
($ in millions)	June 30, 2019		June 30, 2018		June 30, 2019		June 30, 2018
Service-based RSUs	$	6	$	4	$	9	$	6
Performance-based RSUs	2		2		3		3
ILG Acquisition Converted RSUs	2		—		6		—
	10		6		18		9
SARs	1		—		2		1
Stock options	—		—		—		—
	$	11	$	6	$	20	$	10

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



($ in millions)	At June 30, 2019		At December 31, 2018
Service-based RSUs	$	25	$	16
Performance-based RSUs	16		7
ILG Acquisition Converted RSUs	7		15
	48		38
SARs	3		1
Stock options	—		—
	$	51	$	39

Restricted Stock Units

We granted 189,300 service-based RSUs, which are subject to time-based vesting conditions, with a weighted average grant-date fair value of $96.25, to our employees and non-employee directors during the first half of 2019. During the first half of 2019, we also granted performance-based RSUs, which are subject to performance-based vesting conditions, to members of management. A maximum of 287,876 RSUs may be earned under the performance-based RSU awards granted during the first half of 2019.

Stock Appreciation Rights

We granted 111,111 SARs, with a weighted average grant-date fair value of $28.89 and a weighted average exercise price of $100.52, to members of management during the first half of 2019. We use the Black-Scholes model to estimate the fair value of the SARs granted. The expected stock price volatility was calculated based on the average of the historical and implied volatility of our stock price. The average expected life was calculated using the simplified method, as we have insufficient historical information to provide a basis for estimating average expected life. The risk-free interest rate was calculated based on U.S. Treasury zero-coupon issues with a remaining term equal to the expected life assumed at the date of grant. The dividend yield assumption listed below is based on the expectation of future payouts.

The following table outlines the assumptions used to estimate the fair value of grants during the first half of 2019:



Expected volatility	31.10%
Dividend yield	1.76%
Risk-free rate	2.59%
Expected term (in years)	6.25

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 ILG DSUs and related cash-based awards were paid in full during the first quarter of 2019 and there is no remaining obligation as of June 30, 2019.

VARIABLE INTEREST ENTITIES

6 Months Ended

Jun. 30, 2019

VARIABLE INTEREST ENTITIES



17.	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 June 30, 2019:



($ in millions)	Vacation Ownership Notes Receivable Securitizations		Warehouse Credit Facility		Total
Consolidated Assets
Vacation ownership notes receivable, net of reserves	$	1,681	$	—	$	1,681
Interest receivable	12		—		12
Restricted cash⁽¹⁾	80		—		80
Total	$	1,773	$	—	$	1,773
Consolidated Liabilities
Interest payable	$	3	$	—	$	3
Debt	1,787		—		1,787
Total	$	1,790	$	—	$	1,790

_________________________

⁽¹⁾

Includes $6 million of the proceeds from the securitization transaction completed during the second quarter of 2019, which were released when the remaining vacation ownership notes receivable were purchased by the 2019-1 LLC subsequent to the end of the second quarter. Refer to Footnote 13 “Securitized Debt” for a discussion of the terms of this securitization transaction and the purchase of additional vacation ownership notes receivable by the 2019-1 LLC subsequent to June 30, 2019.

The following table shows the interest income and expense recognized as a result of our involvement with these variable interest entities during the second quarter of 2019:



($ in millions)	Vacation Ownership Notes Receivable Securitizations		Warehouse Credit Facility		Total
Interest income	$	55	$	4	$	59
Interest expense to investors	$	13	$	1	$	14
Debt issuance cost amortization	$	1	$	1	$	2
Administrative expenses	$	1	$	—	$	1

The following table shows the interest income and expense recognized as a result of our involvement with these variable interest entities during the first half of 2019:



($ in millions)	Vacation Ownership Notes Receivable Securitizations		Warehouse Credit Facility		Total
Interest income	$	107	$	11	$	118
Interest expense to investors	$	26	$	3	$	29
Debt issuance cost amortization	$	2	$	1	$	3
Administrative expenses	$	1	$	—	$	1

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



	Six Months Ended
($ in millions)	June 30, 2019			June 30, 2018
Cash Inflows
Net proceeds from vacation ownership notes receivable securitizations	$	445		$	419
Principal receipts	237			127
Interest receipts	101			52
Reserve release⁽¹⁾	99			1
Total	882			599
Cash Outflows
Principal to investors	(233		)	(117		)
Voluntary repurchases of defaulted vacation ownership notes receivable	(23		)	(15		)
Voluntary clean-up call	—			(22		)
Interest to investors	(22		)	(10		)
Funding of restricted cash^{(2) (3)}	(93		)	(110		)
Total	(371		)	(274		)
Net Cash Flows	$	511		$	325

_________________________

⁽¹⁾

Includes the release of $84 million related to the securitization transaction completed during the second quarter of 2019, which was released as the remaining vacation ownership notes receivable were purchased by the 2019-1 LLC. Refer to Footnote 13 “Securitized Debt” for a discussion of the terms of this securitization transaction and the purchase of additional vacation ownership notes receivable by the 2019-1 LLC subsequent to June 30, 2019.

⁽²⁾

Includes $90 million of the proceeds from the securitization transaction completed during the second quarter of 2019, of which $84 million was released during the second quarter of 2019, as a portion of the remaining vacation ownership notes receivable were purchased by the 2019-1 LLC. The remaining $6 million was released when the remaining vacation ownership notes receivable were purchased by the 2019-1 LLC subsequent to the end of the second quarter of 2019.


⁽³⁾	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. 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:



	Six Months Ended
($ in millions)	June 30, 2019			June 30, 2018
Cash Inflows
Proceeds from vacation ownership notes receivable securitizations	$	124		$	—
Principal receipts	12			—
Interest receipts	12			—
Reserve release	2			—
Total	150			—
Cash Outflows
Principal to investors	(12		)	—
Repayment of Warehouse Credit Facility	(228		)	—
Interest to investors	(4		)	(1		)
Funding of restricted cash	(1		)	—
Total	(245		)	(1		)
Net Cash Flows	$	(95	)	$	(1	)

Other Variable Interest Entities

We have a commitment to purchase an operating property located in San Francisco, California, that we currently manage as Marriott Vacation Club Pulse, San Francisco. 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 June 30, 2019, our Balance Sheet reflected $14 million in Property and equipment related to a finance lease and leasehold improvements, $1 million in Accrued liabilities and $9 million in Debt related to the finance 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 $5 million as of June 30, 2019.

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 June 30, 2019, our Balance Sheet reflected $8 million in Property and equipment related to a finance lease and leasehold improvements, $1 million in Accrued liabilities and $7 million in Debt related to the finance 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 June 30, 2019. We believe that our maximum exposure to loss as a result of our involvement with this variable interest entity is less than $1 million as of June 30, 2019.

Deferred Compensation Plan

We consolidate the liabilities of the Marriott Vacations Worldwide Deferred Compensation Plan and the related assets, which consist of the COLI policies held in the rabbi trust. The rabbi trust is considered a variable interest entity. We are considered the primary beneficiary of the rabbi trust because we direct the activities of the trust and are the beneficiary of the trust. At June 30, 2019, the value of the assets held in the rabbi trust was $34 million, which is included in the Other line within assets on our Balance Sheets.

BUSINESS SEGMENTS

6 Months Ended

Jun. 30, 2019

BUSINESS SEGMENTS



18.	BUSINESS SEGMENTS

We define our reportable segments based on the way in which the chief operating decision maker (“CODM”), currently our chief executive officer, manages the operations of the company for purposes of allocating resources and assessing performance. We operate in two operating and reportable business segments:

•

Vacation Ownership includes a diverse portfolio of resorts that includes 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 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, includes exchange networks and membership programs, as well as management of resorts and lodging properties. We provide these services through a variety of brands including Interval International, Trading Places International, Vacation Resorts International, 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



	Three Months Ended				Six Months Ended
($ in millions)	June 30, 2019		June 30, 2018		June 30, 2019		June 30, 2018
Vacation Ownership	$	951	$	595	$	1,882	$	1,166
Exchange & Third-Party Management	115		—		239		—
Total segment revenues	1,066		595		2,121		1,166
Corporate and other	2		—		7		—
	$	1,068	$	595	$	2,128	$	1,166

Adjusted EBITDA and Reconciliation to Net Income Attributable to Common Shareholders



	Three Months Ended						Six Months Ended
($ in millions)	June 30, 2019			June 30, 2018			June 30, 2019			June 30, 2018
Adjusted EBITDA Vacation Ownership	$	208		$	104		$	379		$	192
Adjusted EBITDA Exchange & Third-Party Management	58			—			124			—
Reconciling items:
Corporate and other	(71		)	(28		)	(142		)	(53		)
Interest expense	(35		)	(5		)	(69		)	(9		)
Tax provision	(25		)	(6		)	(40		)	(17		)
Depreciation and amortization	(36		)	(5		)	(73		)	(11		)
Share-based compensation expense	(11		)	(6		)	(20		)	(10		)
Certain items	(39		)	(43		)	(86		)	(45		)
Net income attributable to common shareholders	$	49		$	11		$	73		$	47

Assets



($ in millions)	At June 30, 2019		At December 31, 2018
Vacation Ownership	$	7,358	$	7,275
Exchange & Third-Party Management	1,124		1,182
Total segment assets	8,482		8,457
Corporate and other	541		561
	$	9,023	$	9,018

We conduct business globally, and our operations outside the United States represented approximately 13 percent and 12 percent of our revenues, excluding cost reimbursements, for the three months ended June 30, 2019 and June 30, 2018, respectively, and 14 percent and 12 percent of our revenues, excluding cost reimbursements, for the six months ended June 30, 2019 and June 30, 2018, respectively.

SUPPLEMENTAL GUARANTOR INFORMATION

6 Months Ended

Jun. 30, 2019

SUPPLEMENTAL GUARANTOR INFORMATION



19.	SUPPLEMENTAL GUARANTOR INFORMATION

IAC Notes

The IAC Notes are guaranteed by MVWC, ILG and certain other subsidiaries whose voting securities are wholly owned directly or indirectly by ILG (such subsidiaries collectively, the “IAC Notes Guarantors”). These guarantees are full and unconditional and joint and several. The guarantees of the IAC Notes Guarantors 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 IAC Notes Guarantors to pay dividends to us or make distributions, loans or advances to us.

The following tables present consolidating financial information as of June 30, 2019 and December 31, 2018, and for the three and six months ended June 30, 2019 and June 30, 2018 for MVWC and ILG on a stand-alone basis, the Issuer on a stand-alone basis, the IAC Notes Guarantors, the combined non-guarantor subsidiaries of MVW and MVW on a consolidated basis.

Condensed Consolidating Balance Sheet



	As of June 30, 2019
($ in millions)	MVWC		Interval Acquisition Corp.		IAC Notes Guarantors			Non-Guarantor Subsidiaries		Total Eliminations			MVW Consolidated
Cash and cash equivalents	$	—	$	1	$	27		$	151	$	—		$	179
Restricted cash	—		—		52			285		—			337
Accounts receivable, net	67		2		115			147		(4		)	327
Vacation ownership notes receivable, net	—		—		189			1,909		—			2,098
Inventory	—		—		449			439		—			888
Property and equipment	—		—		230			607		—			837
Goodwill	2,824		—		—			—		—			2,824
Intangibles, net	—		—		1,034			41		—			1,075
Due from parent	—		—		—			1,957		(1,957		)	—
Investments in subsidiaries	2,520		1,942		1,828			—		(6,290		)	—
Other	35		27		245			219		(68		)	458
Total assets	$	5,446	$	1,972	$	4,169		$	5,755	$	(8,319	)	$	9,023

Accounts payable	$	12	$	—	$	40		$	105	$	7		$	164
Advance deposits	—		—		81			105		—			186
Accrued liabilities	5		—		170			274		(32		)	417
Deferred revenue	—		—		145			215		(4		)	356
Payroll and benefits liability	3		—		67			102		—			172
Deferred compensation liability	—		—		7			95		—			102
Securitized debt, net	—		—		—			1,792		—			1,792
Debt, net	203		141		1			1,812		—			2,157
Due to subsidiary	1,957		—		—			—		(1,957		)	—
Other	2		—		38			24		—			64
Deferred taxes	—		—		179			164		—			343
MVW shareholders' equity	3,264		1,831		3,445			1,057		(6,333		)	3,264
Noncontrolling interests	—		—		(4		)	10		—			6
Total liabilities and equity	$	5,446	$	1,972	$	4,169		$	5,755	$	(8,319	)	$	9,023



	As of December 31, 2018⁽¹⁾
($ in millions)	MVWC		Interval Acquisition Corp.		IAC Notes Guarantors			Non-Guarantor Subsidiaries		Total Eliminations			MVW Consolidated
Cash and cash equivalents	$	1	$	11	$	28		$	191	$	—		$	231
Restricted cash	—		—		83			300		—			383
Accounts receivable, net	31		2		107			184		—			324
Vacation ownership notes receivable, net	—		—		176			1,863		—			2,039
Inventory	—		—		440			423		—			863
Property and equipment	—		—		272			679		—			951
Goodwill	2,828		—		—			—		—			2,828
Intangibles, net	—		—		1,065			42		—			1,107
Due from parent	—		—		—			1,834		(1,834		)	—
Investments in subsidiaries	2,681		1,975		1,875			—		(6,531		)	—
Other	27		28		140			172		(75		)	292
Total assets	$	5,568	$	2,016	$	4,186		$	5,688	$	(8,440	)	$	9,018

Accounts payable	$	50	$	—	$	72		$	131	$	—		$	253
Advance deposits	—		—		81			90		—			171
Accrued liabilities	7		—		79			295		(24		)	357
Deferred revenue	—		—		117			206		(4		)	319
Payroll and benefits liability	15		—		77			119		—			211
Deferred compensation liability	—		—		7			86		—			93
Securitized debt, net	—		—		—			1,714		—			1,714
Debt, net	199		141		1			1,763		—			2,104
Due to subsidiary	1,834		—		—			—		(1,834		)	—
Other	2		—		1			9		—			12
Deferred taxes	—		—		155			159		4			318
MVW shareholders' equity	3,461		1,875		3,599			1,108		(6,582		)	3,461
Noncontrolling interests	—		—		(3		)	8		—			5
Total liabilities and equity	$	5,568	$	2,016	$	4,186		$	5,688	$	(8,440	)	$	9,018

_________________________


⁽¹⁾	Amounts have been revised to correct certain immaterial prior period errors as reported in the 2018 Annual Report and have been reclassified to conform to the current year presentation.

Condensed Consolidating Statement of Income



	Three Months Ended June 30, 2019
($ in millions)	MVWC			Interval Acquisition Corp.			IAC Notes Guarantors			Non-Guarantor Subsidiaries			Total Eliminations			MVW Consolidated
Revenues	$	—		$	—		$	398		$	671		$	(1	)	$	1,068
Expenses	(6		)	—			(346		)	(574		)	1			(925		)
Gains (losses) and other income (expense), net	—			—			2			—			—			2
Interest expense	(2		)	(2		)	(3		)	(28		)	—			(35		)
ILG acquisition-related costs	—			—			(14		)	(22		)	—			(36		)
Other	—			—			—			—			—			—
Equity in earnings from unconsolidated entities	—			—			—			—			—			—
Equity in net income of subsidiaries	54			28			27			—			(109		)	—
Provision for income taxes	3			1			(12		)	(16		)	(1		)	(25		)
Net income	49			27			52			31			(110		)	49
Net income attributable to noncontrolling interests	—			—			—			—			—			—
Net income attributable to common shareholders	$	49		$	27		$	52		$	31		$	(110	)	$	49



	Three Months Ended June 30, 2018
($ in millions)	MVWC			Interval Acquisition Corp.		IAC Notes Guarantors		Non-Guarantor Subsidiaries			Total Eliminations			MVW Consolidated
Revenues	$	—		$	—	$	—	$	595		$	—		$	595
Expenses	(2		)	—		—		(544		)	—			(546		)
Gains (losses) and other income (expense), net	—			—		—		(7		)	—			(7		)
Interest expense	(3		)	—		—		(2		)	—			(5		)
ILG acquisition-related costs	—			—		—		(19		)	—			(19		)
Other	—			—		—		(1		)	—			(1		)
Provision for income taxes	1			—		—		(7		)	—			(6		)
Equity in earnings from unconsolidated entities	—			—		—		—			—			—
Equity in net income of subsidiaries	15			—		—		—			(15		)	—
Net income	11			—		—		15			(15		)	11
Net income attributable to noncontrolling interests	—			—		—		—			—			—
Net income attributable to common shareholders	$	11		$	—	$	—	$	15		$	(15	)	$	11



	Six Months Ended June 30, 2019
($ in millions)	MVWC			Interval Acquisition Corp.			IAC Notes Guarantors			Non-Guarantor Subsidiaries			Total Eliminations			MVW Consolidated
Revenues	$	—		$	—		$	797		$	1,340		$	(9	)	$	2,128
Expenses	(9		)	—			(715		)	(1,179		)	9			(1,894		)
Gains (losses) and other income (expense), net	—			—			—			10			—			10
Interest expense	(5		)	(3		)	(3		)	(58		)	—			(69		)
ILG acquisition-related costs	—			—			(14		)	(48		)	—			(62		)
Other	—			—			—			—			—			—
Provision for income taxes	4			1			(22		)	(23		)	—			(40		)
Equity in earnings from unconsolidated entities	—			—			—			—			—			—
Equity in net income of subsidiaries	83			64			62			—			(209		)	—
Net income	73			62			105			42			(209		)	73
Net income attributable to noncontrolling interests	—			—			—			—			—			—
Net income attributable to common shareholders	$	73		$	62		$	105		$	42		$	(209	)	$	73



	Six Months Ended June 30, 2018
($ in millions)	MVWC			Interval Acquisition Corp.		IAC Notes Guarantors		Non-Guarantor Subsidiaries			Total Eliminations			MVW Consolidated
Revenues	$	—		$	—	$	—	$	1,166		$	—		$	1,166
Expenses	(4		)	—		—		(1,060		)	—			(1,064		)
Gains (losses) and other income (expense), net	—			—		—		(6		)	—			(6		)
Interest expense	(5		)	—		—		(4		)	—			(9		)
ILG acquisition-related costs	—			—		—		(20		)	—			(20		)
Other	—			—		—		(3		)	—			(3		)
Provision for income taxes	2			—		—		(19		)	—			(17		)
Equity in earnings from unconsolidated entities	—			—		—		—			—			—
Equity in net income of subsidiaries	54			—		—		—			(54		)	—
Net income	47			—		—		54			(54		)	47
Net income attributable to noncontrolling interests	—			—		—		—			—			—
Net income attributable to common shareholders	$	47		$	—	$	—	$	54		$	(54	)	$	47

Condensed Consolidating Statement of Cash Flows



	Six Months Ended June 30, 2019
($ in millions)	MVWC			Interval Acquisition Corp.			IAC Notes Guarantors			Non-Guarantor Subsidiaries			Total Eliminations			MVW Consolidated
Net cash, cash equivalents and restricted cash provided by (used in) operating activities	$	(71	)	$	(2	)	$	106		$	315		$	(292	)	$	56
Net cash, cash equivalents and restricted cash (used in) provided by investing activities	(4		)	—			22			(3		)	—			15
Net cash, cash equivalents and restricted cash (used in) provided by financing activities	74			(8		)	(160		)	(368		)	292			(170		)
Effect of changes in exchange rates on cash, cash equivalents and restricted cash	—			—			—			1			—			1
Cash, cash equivalents and restricted cash, beginning of period	1			11			111			491			—			614
Cash, cash equivalents and restricted cash, end of period	$	—		$	1		$	79		$	436		$	—		$	516



	Six Months Ended June 30, 2018
($ in millions)	MVWC			Interval Acquisition Corp.		IAC Notes Guarantors		Non-Guarantor Subsidiaries			Total Eliminations			MVW Consolidated
Net cash, cash equivalents and restricted cash provided by (used in) operating activities	$	(45	)	$	—	$	—	$	101		$	2		$	58
Net cash, cash equivalents and restricted cash (used in) provided by investing activities	(12		)	—		—		(7		)	—			(19		)
Net cash, cash equivalents and restricted cash (used in) provided by financing activities	57			—		—		132			(2		)	187
Effect of changes in exchange rates on cash, cash equivalents and restricted cash	—			—		—		1			—			1
Cash, cash equivalents and restricted cash, beginning of period	—			—		—		491			—			491
Cash, cash equivalents and restricted cash, end of period	$	—		$	—	$	—	$	718		$	—		$	718

Senior Unsecured Notes and Exchange Notes

The Senior Unsecured Notes and Exchanges Notes (collectively referred to as the “Senior MVW Notes”) are guaranteed by MVWC, Marriott Ownership Resorts, Inc. (“MORI”), ILG and certain other subsidiaries whose voting securities are wholly owned directly or indirectly by MORI or ILG (such subsidiaries collectively, the “Senior Notes Guarantors”). These guarantees are full and unconditional and joint and several. The guarantees of the Senior Notes Guarantors are subject to release in limited circumstances only upon the occurrence of certain customary conditions.

The following tables present consolidating financial information as of June 30, 2019 and December 31, 2018, and for the three and six months ended June 30, 2019 and June 30, 2018 for MVWC on a stand-alone basis, each of MORI and ILG on a stand-alone basis (collectively, the “Issuers” and each individually, an “Issuer”), the Senior Notes Guarantors, the combined non-guarantor subsidiaries of MVW and MVW on a consolidated basis.

Condensed Consolidating Balance Sheet



	As of June 30, 2019
	MVWC		Issuers				Senior Notes Guarantors			Non-Guarantor Subsidiaries		Total Eliminations			MVW Consolidated
($ in millions)	MVWC		MORI		ILG		Senior Notes Guarantors			Non-Guarantor Subsidiaries		Total Eliminations			MVW Consolidated
Cash and cash equivalents	$	—	$	44	$	—	$	29		$	106	$	—		$	179
Restricted cash	—		20		—		54			263		—			337
Accounts receivable, net	67		28		—		131			105		(4		)	327
Vacation ownership notes receivable, net	—		108		—		196			1,794		—			2,098
Inventory	—		304		—		489			95		—			888
Property and equipment	—		274		1		272			290		—			837
Goodwill	2,824		—		—		—			—		—			2,824
Intangibles, net	—		—		—		1,034			41		—			1,075
Due from parent	—		1,957		—		—			—		(1,957		)	—
Investments in subsidiaries	2,520		21		1,828		—			—		(4,369		)	—
Other	35		53		—		359			79		(68		)	458
Total assets	$	5,446	$	2,809	$	1,829	$	2,564		$	2,773	$	(6,398	)	$	9,023

Accounts payable	$	12	$	44	$	—	$	74		$	26	$	8		$	164
Advance deposits	—		76		—		90			20		—			186
Accrued liabilities	5		71		7		177			189		(32		)	417
Deferred revenue	—		4		—		239			117		(4		)	356
Payroll and benefits liability	3		77		—		76			16		—			172
Deferred compensation liability	—		86		—		15			1		—			102
Securitized debt, net	—		—		—		—			1,792		—			1,792
Debt, net	203		1,805		—		149			—		—			2,157
Due to subsidiary	1,957		—		—		—			—		(1,957		)	—
Other	2		22		—		38			2		—			64
Deferred taxes	—		138		—		181			24		—			343
MVW shareholders' equity	3,264		486		1,822		1,529			576		(4,413		)	3,264
Noncontrolling interests	—		—		—		(4		)	10		—			6
Total liabilities and equity	$	5,446	$	2,809	$	1,829	$	2,564		$	2,773	$	(6,398	)	$	9,023



	As of December 31, 2018⁽¹⁾
	MVWC		Issuers				Senior Notes Guarantors			Non-Guarantor Subsidiaries		Total Eliminations			MVW Consolidated
($ in millions)	MVWC		MORI		ILG		Senior Notes Guarantors			Non-Guarantor Subsidiaries		Total Eliminations			MVW Consolidated
Cash and cash equivalents	$	1	$	62	$	2	$	39		$	127	$	—		$	231
Restricted cash	—		19		—		122			242		—			383
Accounts receivable, net	31		20		—		169			104		—			324
Vacation ownership notes receivable, net	—		121		—		183			1,735		—			2,039
Inventory	—		212		—		475			176		—			863
Property and equipment	—		439		1		308			203		—			951
Goodwill	2,828		—		—		—			—		—			2,828
Intangibles, net	—		—		—		1,065			42		—			1,107
Due from parent	—		1,834		—		—			—		(1,834		)	—
Investments in subsidiaries	2,681		93		1,875		—			—		(4,649		)	—
Other	27		53		—		251			36		(75		)	292
Total assets	$	5,568	$	2,853	$	1,878	$	2,612		$	2,665	$	(6,558	)	$	9,018

Accounts payable	$	50	$	13	$	—	$	165		$	25	$	—		$	253
Advance deposits	—		65		—		89			17		—			171
Accrued liabilities	7		96		7		121			150		(24		)	357
Deferred revenue	—		6		—		189			128		(4		)	319
Payroll and benefits liability	15		96		—		84			16		—			211
Deferred compensation liability	—		79		—		13			1		—			93
Securitized debt, net	—		—		—		—			1,714		—			1,714
Debt, net	199		1,726		—		179			—		—			2,104
Due to subsidiary	1,834		—		—		—			—		(1,834		)	—
Other	2		6		—		1			3		—			12
Deferred taxes	—		133		—		157			24		4			318
MVW shareholders' equity	3,461		633		1,871		1,617			579		(4,700		)	3,461
Noncontrolling interests	—		—		—		(3		)	8		—			5
Total liabilities and equity	$	5,568	$	2,853	$	1,878	$	2,612		$	2,665	$	(6,558	)	$	9,018

_________________________


⁽¹⁾	Amounts have been revised to correct certain immaterial prior period errors as reported in the 2018 Annual Report and have been reclassified to conform to the current year presentation.

Condensed Consolidating Statement of Income



	Three Months Ended June 30, 2019
	MVWC			Issuers					Senior Notes Guarantors			Non-Guarantor Subsidiaries			Total Eliminations			MVW Consolidated
($ in millions)	MVWC			MORI			ILG		Senior Notes Guarantors			Non-Guarantor Subsidiaries			Total Eliminations			MVW Consolidated
Revenues	$	—		$	191		$	—	$	695		$	183		$	(1	)	$	1,068
Expenses	(6		)	(200		)	—		(583		)	(137		)	1			(925		)
Gains (losses) and other income (expense), net	—			2			—		—			—			—			2
Interest expense	(2		)	(24		)	—		(5		)	(4		)	—			(35		)
ILG acquisition-related costs	—			(22		)	—		(14		)	—			—			(36		)
Other	—			—			—		—			—			—			—
Provision for income taxes	3			16			—		(35		)	(9		)	—			(25		)
Equity in earnings from unconsolidated entities	—			—			—		—			—			—			—
Equity in net income of subsidiaries	54			62			27		—			—			(143		)	—
Net income	49			25			27		58			33			(143		)	49
Net income attributable to noncontrolling interests	—			—			—		—			—			—			—
Net income attributable to common shareholders	$	49		$	25		$	27	$	58		$	33		$	(143	)	$	49



	Three Months Ended June 30, 2018
	MVWC			Issuers					Senior Notes Guarantors			Non-Guarantor Subsidiaries			Total Eliminations			MVW Consolidated
($ in millions)	MVWC			MORI			ILG		Senior Notes Guarantors			Non-Guarantor Subsidiaries			Total Eliminations			MVW Consolidated
Revenues	$	—		$	194		$	—	$	286		$	115		$	—		$	595
Expenses	(2		)	(189		)	—		(257		)	(98		)	—			(546		)
Gains (losses) and other income (expense), net	—			(7		)	—		—			—			—			(7		)
Interest expense	(3		)	(1		)	—		(1		)	—			—			(5		)
ILG acquisition-related costs	—			(19		)	—		—			—			—			(19		)
Other	—			(1		)	—		—			—			—			(1		)
Provision for income taxes	1			7			—		(12		)	(2		)	—			(6		)
Equity in earnings from unconsolidated entities	—			—			—		—			—			—			—
Equity in net income of subsidiaries	15			16			—		—			—			(31		)	—
Net income	11			—			—		16			15			(31		)	11
Net income attributable to noncontrolling interests	—			—			—		—			—			—			—
Net income attributable to common shareholders	$	11		$	—		$	—	$	16		$	15		$	(31	)	$	11



	Six Months Ended June 30, 2019
	MVWC			Issuers					Senior Notes Guarantors			Non-Guarantor Subsidiaries			Total Eliminations			MVW Consolidated
($ in millions)	MVWC			MORI			ILG		Senior Notes Guarantors			Non-Guarantor Subsidiaries			Total Eliminations			MVW Consolidated
Revenues	$	—		$	350		$	—	$	1,406		$	381		$	(9	)	$	2,128
Expenses	(9		)	(392		)	—		(1,214		)	(288		)	9			(1,894		)
Gains (losses) and other income (expense), net	—			11			—		(1		)	—			—			10
Interest expense	(5		)	(54		)	—		(6		)	(4		)	—			(69		)
ILG acquisition-related costs	—			(48		)	—		(14		)	—			—			(62		)
Other	—			—			—		—			—			—			—
Provision for income taxes	4			40			—		(70		)	(14		)	—			(40		)
Equity in earnings from unconsolidated entities	—			—			—		—			—			—			—
Equity in net income of subsidiaries	83			115			62		—			—			(260		)	—
Net income	73			22			62		101			75			(260		)	73
Net income attributable to noncontrolling interests	—			—			—		—			—			—			—
Net income attributable to common shareholders	$	73		$	22		$	62	$	101		$	75		$	(260	)	$	73



	Six Months Ended June 30, 2018
	MVWC			Issuers					Senior Notes Guarantors			Non-Guarantor Subsidiaries			Total Eliminations			MVW Consolidated
($ in millions)	MVWC			MORI			ILG		Senior Notes Guarantors			Non-Guarantor Subsidiaries			Total Eliminations			MVW Consolidated
Revenues	$	—		$	363		$	—	$	585		$	218		$	—		$	1,166
Expenses	(4		)	(362		)	—		(510		)	(188		)	—			(1,064		)
Gains (losses) and other income (expense), net	—			(6		)	—		—			—			—			(6		)
Interest expense	(5		)	(2		)	—		(2		)	—			—			(9		)
ILG acquisition-related costs	—			(20		)	—		—			—			—			(20		)
Other	—			(3		)	—		—			—			—			(3		)
Provision for income taxes	2			11			—		(27		)	(3		)	—			(17		)
Equity in earnings from unconsolidated entities	—			—			—		—			—			—			—
Equity in net income of subsidiaries	54			46			—		—			—			(100		)	—
Net income	47			27			—		46			27			(100		)	47
Net income attributable to noncontrolling interests	—			—			—		—			—			—			—
Net income attributable to common shareholders	$	47		$	27		$	—	$	46		$	27		$	(100	)	$	47

Condensed Consolidating Statement of Cash Flows



	Six Months Ended June 30, 2019
	MVWC			Issuers						Senior Notes Guarantors			Non-Guarantor Subsidiaries			Total Eliminations			MVW Consolidated
($ in millions)	MVWC			MORI			ILG			Senior Notes Guarantors			Non-Guarantor Subsidiaries			Total Eliminations			MVW Consolidated
Net cash, cash equivalents and restricted cash provided by (used in) operating activities	$	(71	)	$	(31	)	$	—		$	151		$	19		$	(12	)	$	56
Net cash, cash equivalents and restricted cash (used in) provided by investing activities	(4		)	(14		)	—			26			7			—			15
Net cash, cash equivalents and restricted cash (used in) provided by financing activities	74			28			(2		)	(255		)	(27		)	12			(170		)
Effect of changes in exchange rates on cash, cash equivalents and restricted cash	—			—			—			—			1			—			1
Cash, cash equivalents and restricted cash, beginning of period	1			81			2			161			369			—			614
Cash, cash equivalents and restricted cash, end of period	$	—		$	64		$	—		$	83		$	369		$	—		$	516



	Six Months Ended June 30, 2018
	MVWC			Issuers					Senior Notes Guarantors			Non-Guarantor Subsidiaries			Total Eliminations			MVW Consolidated
($ in millions)	MVWC			MORI			ILG		Senior Notes Guarantors			Non-Guarantor Subsidiaries			Total Eliminations			MVW Consolidated
Net cash, cash equivalents and restricted cash provided by (used in) operating activities	$	(45	)	$	111		$	—	$	(2	)	$	(8	)	$	2		$	58
Net cash, cash equivalents and restricted cash (used in) provided by investing activities	(12		)	(4		)	—		—			(3		)	—			(19		)
Net cash, cash equivalents and restricted cash (used in) provided by financing activities	57			49			—		(22		)	105			(2		)	187
Effect of changes in exchange rates on cash, cash equivalents and restricted cash	—			—			—		—			1			—			1
Cash, cash equivalents and restricted cash, beginning of period	—			377			—		30			84			—			491
Cash, cash equivalents and restricted cash, end of period	$	—		$	533		$	—	$	6		$	179		$	—		$	718

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	6 Months Ended
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	Jun. 30, 2019
Accounting Policies [Abstract]
Derivative Instruments	We record derivatives at fair value. The designation of a derivative instrument as a hedge and its ability to meet the hedge accounting criteria determine how we reflect the change in fair value of the derivative instrument in our Financial Statements. A derivative qualifies for hedge accounting if we expect it to be highly effective in offsetting the underlying hedged exposure and we fulfill the hedge documentation requirements. We may designate a hedge as a cash flow hedge, fair value hedge, or a net investment in non-U.S. operations hedge based on the exposure we are hedging. For the effective portion of qualifying hedges, we record changes in fair value in other comprehensive income. We assess the effectiveness of our hedging instruments quarterly, recognize current period hedge ineffectiveness immediately in earnings, and discontinue hedge accounting for any hedge that we no longer consider to be highly effective. We recognize changes in fair value for derivatives not designated as hedges or those not qualifying for hedge accounting in current period earnings. We are exposed to market risk from changes in interest rates, currency exchange rates and debt prices. We manage our exposure to these risks by monitoring available financing alternatives, through pricing policies that may take into account currency exchange rates, and by entering into derivative arrangements. As a matter of policy, we only enter into transactions that we believe will be highly effective at offsetting the underlying risk, and we do not use derivatives for trading or speculative purposes.
New Accounting Pronouncements	New Accounting Standards Accounting Standards Update 2017-12 – “Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities” (“ASU 2017-12”) In August 2017, the FASB issued ASU 2017-12, which amends and simplifies existing guidance in order to allow companies to better portray the economic effects of risk management activities in the financial statements and enhance the transparency and understandability of the results of hedging activities. ASU 2017-12 eliminates the requirement to separately measure and report hedge ineffectiveness and generally requires the entire change in the fair value of a hedging instrument to be presented in the same income statement line as the hedged item. The guidance also eases certain documentation and assessment requirements. This update is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years, with early adoption permitted. The adoption of ASU 2017-12 in the first quarter of 2019 did not have a material impact on our Financial Statements or disclosures. We record derivatives at fair value. The designation of a derivative instrument as a hedge and its ability to meet the hedge accounting criteria determine how we reflect the change in fair value of the derivative instrument in our Financial Statements. A derivative qualifies for hedge accounting if we expect it to be highly effective in offsetting the underlying hedged exposure and we fulfill the hedge documentation requirements. We may designate a hedge as a cash flow hedge, fair value hedge, or a net investment in non-U.S. operations hedge based on the exposure we are hedging. For the effective portion of qualifying hedges, we record changes in fair value in other comprehensive income. We assess the effectiveness of our hedging instruments quarterly, recognize current period hedge ineffectiveness immediately in earnings, and discontinue hedge accounting for any hedge that we no longer consider to be highly effective. We recognize changes in fair value for derivatives not designated as hedges or those not qualifying for hedge accounting in current period earnings. We are exposed to market risk from changes in interest rates, currency exchange rates and debt prices. We manage our exposure to these risks by monitoring available financing alternatives, through pricing policies that may take into account currency exchange rates, and by entering into derivative arrangements. As a matter of policy, we only enter into transactions that we believe will be highly effective at offsetting the underlying risk, and we do not use derivatives for trading or speculative purposes. Accounting Standards Update 2016-02 – “Leases (Topic 842)” (“ASU 2016-02”) In February 2016, the FASB issued ASU 2016-02 to increase transparency and comparability of information regarding an entity’s leasing activities by providing additional information to users of financial statements, which as amended, created Accounting Standards Codification 842, Leases (“ASC 842”). ASU 2016-02 requires a lessee to recognize most leases on its balance sheet by recording a liability for its lease obligation and an asset for its right to use the underlying asset as of the lease commencement date and recognizing expenses on the income statement in a similar manner to the current guidance in Accounting Standards Codification 840, Leases (“ASC 840”). Lessor accounting remains largely unchanged, other than certain targeted improvements intended to align lessor accounting with the lessee accounting model and with the updated revenue recognition guidance. Upon adoption of ASU 2016-02, as amended, leases will be classified as either finance or operating, with classification affecting the geography of expense recognition in the income statement. Additionally, enhanced quantitative and qualitative disclosures regarding leases are required. ASU 2016-02 is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years, with early adoption permitted. As permitted by the amended guidance, we elected to retain the original lease classification and historical accounting for existing or expired contracts of lessees and lessors so that we will not be required to reassess whether such contracts contain leases, the lease classification of any such leases or the initial direct costs of any such leases. We will continue to report comparative periods presented in the financial statements in the period of adoption under GAAP in effect as of such comparative period, resulting in a balance sheet presentation that is not comparable to the prior period in the first year of adoption. Additionally, with respect to our real estate leases, we elected an accounting policy by class of underlying asset to combine lease and non-lease components. We also elected to apply an exemption for short-term leases whereby leases with an initial term of a year or less are not recorded on the balance sheet. We did not utilize the practical expedient which allows the use of hindsight by lessees and lessors in determining the lease term and in assessing impairment of their right-of-use assets. We adopted ASU 2016-02, as amended, during the first quarter of 2019 using the transition method which allows the application of the standard at the adoption date, January 1, 2019. Upon adoption, we recognized a lease obligation of $165 million and a right-of-use asset of $155 million, as well as, a cumulative-effect adjustment of $8 million to the opening balance of retained earnings for our operating and finance leases, primarily related to leases of real estate and other assets. The adoption of ASU 2016-02 did not have a material effect on our Income Statement or Cash Flows for the six months ended June 30, 2019. See Footnote 12 “Leases” for further discussion of the adoption and the impact on our Financial Statements.
Future Adoption of New Accounting Standards	Future Adoption of Accounting Standards Accounting Standards Update 2017-04 – “Intangibles – Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment” (“ASU 2017-04”) In January 2017, the FASB issued ASU 2017-04, which simplifies the subsequent measurement of goodwill by eliminating the second step from the goodwill impairment test. ASU 2017-04 requires an entity to perform its annual or interim goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount, and to recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value, not to exceed the total amount of goodwill allocated to that reporting unit. ASU 2017-04 is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years, and is applied on a prospective basis. Early adoption is permitted for interim or annual impairment tests performed after January 1, 2017. We expect to adopt ASU 2017-04 when required and will follow this guidance during our annual impairment testing to be performed during the fourth quarter of 2019, or earlier upon the occurrence of certain events or substantive changes in circumstances. We do not expect the adoption of ASU 2017-04 to have a material effect on our financial statements or disclosures. Accounting Standards Update 2016-13 – “Financial Instruments – Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments” (“ASU 2016-13”) In June 2016, the FASB issued ASU 2016-13, which replaces the incurred loss impairment methodology in current GAAP with a methodology that reflects expected credit losses. The update is intended to provide financial statement users with more decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date. This update is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years, with early adoption permitted for fiscal years beginning after December 15, 2018. We expect to adopt ASU 2016-13 commencing in fiscal year 2020 and are continuing to evaluate the impact that adoption of this update will have on our financial statements and disclosures.

ACQUISITIONS AND DISPOSITIONS (Tables)

6 Months Ended

Jun. 30, 2019

Consideration Transferred

The following table presents the fair value of each class of consideration transferred at the Acquisition Date, as adjusted at June 30, 2019.



(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	30
	$	4,215

Schedule of Recognized Identified Assets Acquired and Liabilities Assumed



($ in millions)	September 1, 2018 (as reported at December 31, 2018)			Adjustments			September 1, 2018 (as adjusted at June 30, 2019)
Vacation ownership notes receivable	$	753		$	—		$	753
Inventory	474			—			474
Property and equipment	374			(1		)	373
Intangible assets	1,166			(3		)	1,163
Other assets	620			42			662
Deferred revenue	(217		)	—			(217		)
Deferred taxes	(179		)	4			(175		)
Debt	(392		)	—			(392		)
Securitized debt from VIEs	(702		)	—			(702		)
Other liabilities	(511		)	(37		)	(548		)
Net assets acquired	1,386			5			1,391
Goodwill⁽¹⁾	2,828			(4		)	2,824
	$	4,214		$	1		$	4,215

_________________________


⁽¹⁾	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.

Schedule of Goodwill

The following table details the carrying amount of our goodwill at June 30, 2019 and December 31, 2018, and reflects our preliminary estimate of goodwill added as a result of the ILG Acquisition. The assignment of goodwill to our reporting units may change during the measurement period as we have not yet finalized the fair value of the assets and liabilities assumed in the ILG Acquisition.



($ in millions)	Vacation Ownership Segment			Exchange & Third-Party Management Segment		Total Consolidated
Balance at December 31, 2018	$	2,448		$	380	$	2,828
Adjustments	(4		)	—		(4		)
Balance at June 30, 2019	$	2,444		$	380	$	2,824

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 ILG’s identified intangible assets and their related estimated useful lives as of the Acquisition Date.



	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⁾	30		indefinite
Trade names and trademarks	82		indefinite
	$	1,163

_________________________

⁽¹⁾

Business Acquisition, Pro Forma Information

The following table presents the results of Legacy-ILG operations included in our Income Statement for the three and six months ended June 30, 2019.



($ in millions)	Three Months Ended June 30, 2019		Six Months Ended June 30, 2019
Revenue	$	455	$	913
Net income attributable to common shareholders	$	34	$	66



($ in millions, except per share data)	Six Months Ended June 30, 2018
Revenues	$	2,097
Net income	$	71
Net income attributable to common shareholders	$	68
EARNINGS PER SHARE ATTRIBUTABLE TO COMMON SHAREHOLDERS
Basic	$	1.45
Diluted	$	1.42

REVENUE (Tables)

6 Months Ended

Jun. 30, 2019

Disaggregation of Revenue

The following tables detail the sources of revenue by segment for the time periods presented.



	Three Months Ended June 30, 2019
($ in millions)	Vacation Ownership		Exchange & Third-Party Management		Corporate and Other			Total
Sale of vacation ownership products	$	350	$	—	$	—		$	350

Ancillary revenues	66		1		—			67
Management fee revenues	38		11		(3		)	46
Other services revenues	30		63		33			126
Management and exchange	134		75		30			239

Rental	141		17		—			158

Cost reimbursements	258		22		(28		)	252
Revenue from contracts with customers	883		114		2			999

Financing	68		1		—			69
Total Revenues	$	951	$	115	$	2		$	1,068



	Three Months Ended June 30, 2018
($ in millions)	Vacation Ownership		Exchange & Third-Party Management		Corporate and Other		Total
Sale of vacation ownership products	$	205	$	—	$	—	$	205

Ancillary revenues	36		—		—		36
Management fee revenues	26		—		—		26
Other services revenues	16		—		—		16
Management and exchange	78		—		—		78

Rental	74		—		—		74

Cost reimbursements	202		—		—		202
Revenue from contracts with customers	559		—		—		559

Financing	36		—		—		36
Total Revenues	$	595	$	—	$	—	$	595



	Six Months Ended June 30, 2019
($ in millions)	Vacation Ownership		Exchange & Third-Party Management		Corporate and Other			Total
Sale of vacation ownership products	$	651	$	—	$	—		$	651

Ancillary revenues	123		2		—			125
Management fee revenues	75		26		(7		)	94
Other services revenues	61		129		69			259
Management and exchange	259		157		62			478

Rental	288		34		1			323

Cost reimbursements	549		46		(56		)	539
Revenue from contracts with customers	1,747		237		7			1,991

Financing	135		2		—			137
Total Revenues	$	1,882	$	239	$	7		$	2,128



	Six Months Ended June 30, 2018
($ in millions)	Vacation Ownership		Exchange & Third-Party Management		Corporate and Other		Total
Sale of vacation ownership products	$	380	$	—	$	—	$	380

Ancillary revenues	64		—		—		64
Management fee revenues	50		—		—		50
Other services revenues	34		—		—		34
Management and exchange	148		—		—		148

Rental	149		—		—		149

Cost reimbursements	418		—		—		418
Revenue from contracts with customers	1,095		—		—		1,095

Financing	71		—		—		71
Total Revenues	$	1,166	$	—	$	—	$	1,166

The following tables detail the timing of revenue from contracts with customers by segment for the time periods presented.



	Three Months Ended June 30, 2019
($ in millions)	Vacation Ownership		Exchange & Third-Party Management		Corporate and Other		Total
Services transferred over time	$	471	$	55	$	2	$	528
Goods or services transferred at a point in time	412		59		—		471
	$	883	$	114	$	2	$	999



	Three Months Ended June 30, 2018
($ in millions)	Vacation Ownership		Exchange & Third-Party Management		Corporate and Other		Total
Services transferred over time	$	315	$	—	$	—	$	315
Goods or services transferred at a point in time	244		—		—		244
	$	559	$	—	$	—	$	559



	Six Months Ended June 30, 2019
($ in millions)	Vacation Ownership		Exchange & Third-Party Management		Corporate and Other		Total
Services transferred over time	$	978	$	113	$	7	$	1,098
Goods or services transferred at a point in time	769		124		—		893
	$	1,747	$	237	$	7	$	1,991



	Six Months Ended June 30, 2018
($ in millions)	Vacation Ownership		Exchange & Third-Party Management		Corporate and Other		Total
Services transferred over time	$	643	$	—	$	—	$	643
Goods or services transferred at a point in time	452		—		—		452
	$	1,095	$	—	$	—	$	1,095

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 June 30, 2019 or December 31, 2018.



($ in millions)	At June 30, 2019		At December 31, 2018
Receivables
Accounts receivable	$	127	$	164
Vacation ownership notes receivable, net	2,098		2,039
	$	2,225	$	2,203
Contract Liabilities
Advance deposits	$	186	$	171
Deferred revenue	356		319
	$	542	$	490

VACATION OWNERSHIP NOTES RECEIVABLE (Tables)

6 Months Ended

Jun. 30, 2019

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.



	June 30, 2019						December 31, 2018
($ in millions)	Originated		Acquired		Total		Originated		Acquired		Total
Securitized	$	1,209	$	472	$	1,681	$	1,070	$	557	$	1,627
Non-securitized
Eligible for securitization⁽¹⁾	83		11		94		85		22		107
Not eligible for securitization⁽¹⁾	261		62		323		233		72		305
Subtotal	344		73		417		318		94		412
	$	1,553	$	545	$	2,098	$	1,388	$	651	$	2,039

_________________________

⁽¹⁾

Refer to Footnote 7 “Financial Instruments” for a 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.



	Three Months Ended				Six Months Ended
($ in millions)	June 30, 2019		June 30, 2018		June 30, 2019		June 30, 2018
Interest income associated with vacation ownership notes receivable — securitized	$	59	$	27	$	118	$	53
Interest income associated with vacation ownership notes receivable — non-securitized	8		7		14		15
Total interest income associated with vacation ownership notes receivable	$	67	$	34	$	132	$	68

Schedule Of Accretable Yield



($ in millions)	Six Months Ended June 30, 2019
Accretable yield balance at December 31, 2018	$	199
Accretion	(43		)
Reclassification from non-accretable difference	(3		)
Accretable yield balance at June 30, 2019	$	153

Non-accretable difference at June 30, 2019	$	55

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

The following table shows future contractual principal payments, as well as interest rates for our non-securitized and securitized acquired vacation ownership notes receivable, at June 30, 2019.



	Acquired Vacation Ownership Notes Receivable
($ in millions)	Non-Securitized		Securitized		Total
2019, remaining	$	7	$	55	$	62
2020	7		53		60
2021	8		53		61
2022	8		53		61
2023	8		52		60
Thereafter	35		206		241
Balance at June 30, 2019	$	73	$	472	$	545
Weighted average stated interest rate	13.5%		13.4%		13.4%
Range of stated interest rates	0.0% to 17.9%		6.0% to 16.9%		0.0% to 17.9%

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 June 30, 2019.



	Originated Vacation Ownership Notes Receivable
($ in millions)	Non-Securitized		Securitized		Total
2019, remaining	$	34	$	65	$	99
2020	45		114		159
2021	37		120		157
2022	32		125		157
2023	29		128		157
Thereafter	167		657		824
Balance at June 30, 2019	$	344	$	1,209	$	1,553
Weighted average stated interest rate	11.8%		12.6%		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 Reserve
($ in millions)	Non-Securitized			Securitized			Total
Balance at December 31, 2018	$	61		$	79		$	140
Increase in vacation ownership notes receivable reserve	38			8			46
Securitizations	(35		)	35			—
Clean-up call⁽¹⁾	18			(18		)	—
Write-offs	(23		)	—			(23		)
Defaulted vacation ownership notes receivable repurchase activity⁽²⁾	11			(11		)	—
Balance at June 30, 2019	$	70		$	93		$	163

_________________________


⁽¹⁾	Refers to our voluntary repurchase of previously securitized non-defaulted vacation ownership notes receivable to retire outstanding vacation ownership notes receivable from our Warehouse Credit Facility.

⁽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

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.



	Legacy-MVW Vacation Ownership Notes Receivable
($ in millions)	Non-Securitized		Securitized		Total
Investment in vacation ownership notes receivable on non-accrual status at June 30, 2019	$	41	$	8	$	49
Investment in vacation ownership notes receivable on non-accrual status at December 31, 2018	$	36	$	9	$	45
Average investment in vacation ownership notes receivable on non-accrual status during the second quarter of 2019	$	39	$	10	$	49
Average investment in vacation ownership notes receivable on non-accrual status during the second quarter of 2018	$	39	$	8	$	47
Average investment in vacation ownership notes receivable on non-accrual status during the first half of 2019	$	38	$	9	$	47
Average investment in vacation ownership notes receivable on non-accrual status during the first half of 2018	$	39	$	7	$	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 June 30, 2019.



	Legacy-MVW Vacation Ownership Notes Receivable
($ in millions)	Non-Securitized		Securitized		Total
31 – 90 days past due	$	6	$	21	$	27
91 – 150 days past due	5		8		13
Greater than 150 days past due	36		—		36
Total past due	47		29		76
Current	223		1,160		1,383
Total vacation ownership notes receivable	$	270	$	1,189	$	1,459

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-ILG originated vacation ownership notes receivable as of June 30, 2019 and 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
As of June 30, 2019	$	258	$	252	$	3	$	2	$	1	$	—	$	6

As of 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 June 30, 2019.



	Acquired Vacation Ownership Notes Receivable
($ in millions)	700 +		600 - 699		< 600		No Score⁽¹⁾		Total
Westin	$	127	$	70	$	5	$	17	$	219
Sheraton	120		104		19		45		288
Hyatt	17		12		2		—		31
Other	4		1		—		2		7
	$	268	$	187	$	26	$	64	$	545

_________________________


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

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 June 30, 2019.



	Originated Vacation Ownership Notes Receivable
($ in millions)	700 +		600 - 699		< 600		No Score⁽¹⁾		Total
Westin	$	80	$	27	$	2	$	14	$	123
Sheraton	58		36		6		21		121
Hyatt	9		4		1		—		14
	$	147	$	67	$	9	$	35	$	258

_________________________


⁽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)

6 Months Ended

Jun. 30, 2019

Carrying Values and Estimated Fair Values of Financial Assets and Liabilities



	At June 30, 2019						At December 31, 2018
($ in millions)	Carrying Amount			Fair Value			Carrying Amount			Fair Value
Originated vacation ownership notes receivable	$	1,553		$	1,584		$	1,388		$	1,413
Other assets	41			41			66			66
Total financial assets	$	1,594		$	1,625		$	1,454		$	1,479

Securitized debt, net	$	(1,792	)	$	(1,820	)	$	(1,714	)	$	(1,718	)
Exchange Notes, net	(88		)	(89		)	(88		)	(87		)
Senior Unsecured Notes, net	(742		)	(807		)	(741		)	(726		)
IAC Notes	(141		)	(140		)	(141		)	(140		)
Term Loan, net	(884		)	(895		)	(888		)	(887		)
Revolving Corporate Credit Facility, net	(76		)	(76		)	—			—
Convertible notes, net	(203		)	(221		)	(199		)	(198		)
Non-interest bearing note payable, net	—			—			(30		)	(30		)
Total financial liabilities	$	(3,926	)	$	(4,048	)	$	(3,801	)	$	(3,786	)

Originated Vacation Ownership Notes Receivable



	At June 30, 2019				At December 31, 2018
($ in millions)	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Originated vacation ownership notes receivable
Securitized	$	1,209	$	1,238	$	1,070	$	1,093

Eligible for securitization	83		85		85		87
Not eligible for securitization	261		261		233		233
Non-securitized	344		346		318		320
	$	1,553	$	1,584	$	1,388	$	1,413

EARNINGS PER SHARE (Tables)

6 Months Ended

Jun. 30, 2019

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 attributable to common shareholders.



	Three Months Ended				Six Months Ended
(in millions, except per share amounts)	June 30, 2019⁽¹⁾		June 30, 2018⁽¹⁾		June 30, 2019⁽¹⁾		June 30, 2018⁽¹⁾
Computation of Basic Earnings Per Share Attributable to Common Shareholders
Net income attributable to common shareholders	$	49	$	11	$	73	$	47
Shares for basic earnings per share	44.7		26.7		45.1		26.7
Basic earnings per share	$	1.11	$	0.40	$	1.62	$	1.75
Computation of Diluted Earnings Per Share Attributable to Common Shareholders
Net income attributable to common shareholders	$	49	$	11	$	73	$	47
Shares for basic earnings per share	44.7		26.7		45.1		26.7
Effect of dilutive shares outstanding
Employee stock options and SARs	0.3		0.4		0.3		0.4
Restricted stock units	0.2		0.2		0.2		0.2
Shares for diluted earnings per share	45.2		27.3		45.6		27.3
Diluted earnings per share	$	1.10	$	0.39	$	1.61	$	1.71

_______________________________

⁽¹⁾

INVENTORY (Tables)

6 Months Ended

Jun. 30, 2019

Composition of Inventory

The following table shows the composition of our inventory balances:



($ in millions)	At June 30, 2019		At December 31, 2018
Finished goods⁽¹⁾	$	828	$	843
Work-in-progress	48		9
Real estate inventory	876		852
Other	12		11
	$	888	$	863

_________________________

⁽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)

6 Months Ended

Jun. 30, 2019

Composition of Property and Equipment

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



($ in millions)	At June 30, 2019			At December 31, 2018
Land and land improvements	$	373		$	466
Buildings and leasehold improvements	403			404
Furniture, fixtures and other equipment	87			88
Information technology	311			297
Construction in progress	38			32
	1,212			1,287
Accumulated depreciation	(375		)	(336		)
	$	837		$	951

LEASES (Tables)

6 Months Ended

Jun. 30, 2019

Components of Lease Expense

The following table presents the carrying values of our leases and the classification on our Balance Sheet as of June 30, 2019.



($ in millions)	Balance Sheet Classification	At June 30, 2019
Operating lease assets	Other assets	$	121
Finance lease assets	Property and equipment	22
		$	143

Operating lease liabilities	Accrued liabilities	$	134
Finance lease liabilities	Debt	22
		$	156

The following table presents the lease costs and the classification on our Income Statement for the three and six months ended June 30, 2019.



($ in millions)	Income Statement Classification	Three Months Ended June 30, 2019		Six Months Ended June 30, 2019
Operating lease cost	Marketing and sales expense General and administrative expense	$	9	$	17
Finance lease cost
Amortization of right-of-use assets	Depreciation and amortization	1		2
Interest on lease liabilities	Interest expense	1		1
Variable lease cost	Marketing and sales expense	1		2
		$	12	$	22

Lease Term and Discount Rate



	At June 30, 2019
Weighted-average remaining lease term (in years)
Operating leases	11.4 years
Finance leases	0.7 years
Weighted-average discount rate
Operating leases	6.1%
Finance leases	4.8%

Other Information



($ in millions)	Six Months Ended June 30, 2019
Cash paid for amounts included in measurement of lease liabilities
Operating cash flows for finance leases	$	—
Operating cash flows for operating leases	17
Financing cash flows for finance leases	2
	$	19

Maturities of Operating Lease Liabilities

The following table presents the maturity of our operating and financing lease liabilities as of June 30, 2019.



($ in millions)	Operating Leases			Finance Leases⁽¹⁾			Total
2019, remaining	$	15		$	11		$	26
2020	29			10			39
2021	21			2			23
2022	18			—			18
2023	16			—			16
Thereafter	103			—			103
Total lease payments	202			23			225
Less: Imputed interest	(68		)	(1		)	(69		)
	$	134		$	22		$	156

_________________________

⁽¹⁾

Finance lease payments include $17 million related to residual value guarantees associated with purchase commitments for operating properties in San Francisco, California and New York, New York. See Footnote 11 “Contingencies and Commitments” for additional information regarding these transactions.

Maturities of Financing Lease Liabilities

The following table presents the maturity of our operating and financing lease liabilities as of June 30, 2019.



($ in millions)	Operating Leases			Finance Leases⁽¹⁾			Total
2019, remaining	$	15		$	11		$	26
2020	29			10			39
2021	21			2			23
2022	18			—			18
2023	16			—			16
Thereafter	103			—			103
Total lease payments	202			23			225
Less: Imputed interest	(68		)	(1		)	(69		)
	$	134		$	22		$	156

_________________________

⁽¹⁾

SECURITIZED DEBT (Tables)

6 Months Ended

Jun. 30, 2019

Schedule of Securitized Vacation Ownership Debt

The following table provides detail on our securitized debt, net of unamortized debt issuance costs.



($ in millions)	At June 30, 2019			At December 31, 2018
Vacation ownership notes receivable securitizations, gross⁽¹⁾	$	1,787		$	1,590
Unamortized debt discount and issuance costs	(15		)	(11		)
	1,772			1,579

Warehouse Credit Facility, gross	—			116
Unamortized debt issuance costs⁽²⁾	—			(1		)
	—			115

Other⁽³⁾	20			20
	$	1,792		$	1,714

_________________________


⁽¹⁾	Interest rates as of June 30, 2019 range from 2.2% to 6.3%, with a weighted average interest rate of 2.9%


⁽²⁾	Excludes $1 million of unamortized debt issuance costs as of June 30, 2019, as no cash borrowings were outstanding on the Warehouse Credit Facility at that time

(3)Non-recourse

The following table shows scheduled future principal payments for our securitized debt as of June 30, 2019.



	Vacation Ownership Notes Receivable Securitizations		Other		Total
($ in millions)	Vacation Ownership Notes Receivable Securitizations		Other		Total
Payments Year
2019, remaining	$	128	$	1	$	129
2020	225		2		227
2021	202		2		204
2022	191		3		194
2023	185		3		188
Thereafter	856		9		865
	$	1,787	$	20	$	1,807

The following table shows scheduled future principal payments for our debt, excluding finance leases, as of June 30, 2019.



	Payments Year
($ in millions)	Remaining 2019		2020		2021		2022		2023		Thereafter		Total
Exchange Notes	$	—	$	—	$	—	$	—	$	89	$	—	$	89
Senior Unsecured Notes	—		—		—		—		—		750		750
IAC Notes	—		—		—		—		141		—		141
Term Loan	4		9		9		9		9		855		895
Revolving Corporate Credit Facility	—		—		—		—		80		—		80
Convertible Notes	—		—		—		230		—		—		230
	$	4	$	9	$	9	$	239	$	319	$	1,605	$	2,185

DEBT (Tables)

6 Months Ended

Jun. 30, 2019

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 June 30, 2019			At December 31, 2018
Senior Notes
	Exchange Notes	$	89		$	89
	Unamortized debt issuance costs	(1		)	(1		)
		88			88

	Senior Unsecured Notes	750			750
	Unamortized debt issuance costs	(8		)	(9		)
		742			741

	IAC Notes	141			141

Corporate Credit Facility
	Term Loan	895			900
	Unamortized debt discount and issuance costs	(11		)	(12		)
		884			888

	Revolving Corporate Credit Facility	80			—
	Unamortized debt issuance costs⁽¹⁾	(4		)	—
		76			—

Convertible notes, gross		230			230
Unamortized debt discount and issuance costs		(27		)	(31		)
		203			199

Non-Interest bearing note payable		—			31
Unamortized debt discount		—			(1		)
		—			30

Finance leases		23			17
		$	2,157		$	2,104

_________________________


⁽¹⁾	Excludes $4 million of unamortized debt issuance costs as of December 31, 2018, as no cash borrowings were outstanding on the Revolving Corporate Credit Facility at that time.

Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss)

The following table shows scheduled future principal payments for our securitized debt as of June 30, 2019.



	Vacation Ownership Notes Receivable Securitizations		Other		Total
($ in millions)	Vacation Ownership Notes Receivable Securitizations		Other		Total
Payments Year
2019, remaining	$	128	$	1	$	129
2020	225		2		227
2021	202		2		204
2022	191		3		194
2023	185		3		188
Thereafter	856		9		865
	$	1,787	$	20	$	1,807

The following table shows scheduled future principal payments for our debt, excluding finance leases, as of June 30, 2019.



	Payments Year
($ in millions)	Remaining 2019		2020		2021		2022		2023		Thereafter		Total
Exchange Notes	$	—	$	—	$	—	$	—	$	89	$	—	$	89
Senior Unsecured Notes	—		—		—		—		—		750		750
IAC Notes	—		—		—		—		141		—		141
Term Loan	4		9		9		9		9		855		895
Revolving Corporate Credit Facility	—		—		—		—		80		—		80
Convertible Notes	—		—		—		230		—		—		230
	$	4	$	9	$	9	$	239	$	319	$	1,605	$	2,185

The following table reflects the activity in accumulated other comprehensive loss related to our derivative instruments during the first half of 2019:



($ in millions)	Derivative Instrument Adjustments
Balance at December 31, 2018	$	(6	)
Other comprehensive loss before reclassifications	(3		)
Reclassification to Income Statement	—
Net other comprehensive loss	(3		)
Balance at March 31, 2019	(9		)
Other comprehensive loss before reclassifications	(13		)
Reclassification to Income Statement	—
Net other comprehensive loss	(13		)
Balance at June 30, 2019	$	(22	)

Convertible Debt

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



($ in millions)	At June 30, 2019			At December 31, 2018
Liability component
Principal amount	$	230		$	230
Unamortized debt discount	(23		)	(26		)
Unamortized debt issuance costs	(4		)	(5		)
Net carrying amount of the liability component	$	203		$	199

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

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



	Three Months Ended				Six Months Ended
($ in millions)	June 30, 2019		June 30, 2018		June 30, 2019		June 30, 2018
Contractual interest expense	$	—	$	1	$	1	$	2
Amortization of debt discount	1		2		3		3
Amortization of debt issuance costs	1		—		1		—
	$	2	$	3	$	5	$	5

SHAREHOLDERS' EQUITY (Tables)

6 Months Ended

Jun. 30, 2019

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, 2018	11,687,774	$	793	$	67.85
For the first half of 2019	2,358,808	215		91.12
As of June 30, 2019	14,046,582	$	1,008	$	71.76

Cash Dividend Declared

We declared cash dividends to holders of common stock during the first half of 2019 as follows:



Declaration Date	Shareholder Record Date	Distribution Date	Dividend per Share
February 15, 2019	February 28, 2019	March 14, 2019	$0.45
May 9, 2019	May 23, 2019	June 6, 2019	$0.45

SHARE-BASED COMPENSATION (Tables)

6 Months Ended

Jun. 30, 2019

Schedule of Compensation Cost for Share-based Payment Arrangements, Allocation of Share-based Compensation Costs by Plan

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



	Three Months Ended				Six Months Ended
($ in millions)	June 30, 2019		June 30, 2018		June 30, 2019		June 30, 2018
Service-based RSUs	$	6	$	4	$	9	$	6
Performance-based RSUs	2		2		3		3
ILG Acquisition Converted RSUs	2		—		6		—
	10		6		18		9
SARs	1		—		2		1
Stock options	—		—		—		—
	$	11	$	6	$	20	$	10

Schedule of Unrecognized Compensation Cost, Nonvested Awards

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



($ in millions)	At June 30, 2019		At December 31, 2018
Service-based RSUs	$	25	$	16
Performance-based RSUs	16		7
ILG Acquisition Converted RSUs	7		15
	48		38
SARs	3		1
Stock options	—		—
	$	51	$	39

Assumptions Used to Estimate Fair Value of Grants

The following table outlines the assumptions used to estimate the fair value of grants during the first half of 2019:



Expected volatility	31.10%
Dividend yield	1.76%
Risk-free rate	2.59%
Expected term (in years)	6.25

VARIABLE INTEREST ENTITIES (Tables)

6 Months Ended

Jun. 30, 2019

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Classifications of Consolidated VIE Assets and Liabilities



($ in millions)	Vacation Ownership Notes Receivable Securitizations		Warehouse Credit Facility		Total
Consolidated Assets
Vacation ownership notes receivable, net of reserves	$	1,681	$	—	$	1,681
Interest receivable	12		—		12
Restricted cash⁽¹⁾	80		—		80
Total	$	1,773	$	—	$	1,773
Consolidated Liabilities
Interest payable	$	3	$	—	$	3
Debt	1,787		—		1,787
Total	$	1,790	$	—	$	1,790

_________________________

⁽¹⁾

Interest Income and Expense Recognized as a Result of Our Involvement with Variable Interest Entities

The following table shows the interest income and expense recognized as a result of our involvement with these variable interest entities during the second quarter of 2019:



($ in millions)	Vacation Ownership Notes Receivable Securitizations		Warehouse Credit Facility		Total
Interest income	$	55	$	4	$	59
Interest expense to investors	$	13	$	1	$	14
Debt issuance cost amortization	$	1	$	1	$	2
Administrative expenses	$	1	$	—	$	1

The following table shows the interest income and expense recognized as a result of our involvement with these variable interest entities during the first half of 2019:



($ in millions)	Vacation Ownership Notes Receivable Securitizations		Warehouse Credit Facility		Total
Interest income	$	107	$	11	$	118
Interest expense to investors	$	26	$	3	$	29
Debt issuance cost amortization	$	2	$	1	$	3
Administrative expenses	$	1	$	—	$	1

Cash Flows Between Company and Variable Interest Entities

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



	Six Months Ended
($ in millions)	June 30, 2019			June 30, 2018
Cash Inflows
Proceeds from vacation ownership notes receivable securitizations	$	124		$	—
Principal receipts	12			—
Interest receipts	12			—
Reserve release	2			—
Total	150			—
Cash Outflows
Principal to investors	(12		)	—
Repayment of Warehouse Credit Facility	(228		)	—
Interest to investors	(4		)	(1		)
Funding of restricted cash	(1		)	—
Total	(245		)	(1		)
Net Cash Flows	$	(95	)	$	(1	)

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



	Six Months Ended
($ in millions)	June 30, 2019			June 30, 2018
Cash Inflows
Net proceeds from vacation ownership notes receivable securitizations	$	445		$	419
Principal receipts	237			127
Interest receipts	101			52
Reserve release⁽¹⁾	99			1
Total	882			599
Cash Outflows
Principal to investors	(233		)	(117		)
Voluntary repurchases of defaulted vacation ownership notes receivable	(23		)	(15		)
Voluntary clean-up call	—			(22		)
Interest to investors	(22		)	(10		)
Funding of restricted cash^{(2) (3)}	(93		)	(110		)
Total	(371		)	(274		)
Net Cash Flows	$	511		$	325

_________________________

⁽¹⁾

⁽²⁾

⁽³⁾

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.

- Definition

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)

6 Months Ended

Jun. 30, 2019

Adjusted EBITDA Reconciling Items from Segments

Revenues



	Three Months Ended				Six Months Ended
($ in millions)	June 30, 2019		June 30, 2018		June 30, 2019		June 30, 2018
Vacation Ownership	$	951	$	595	$	1,882	$	1,166
Exchange & Third-Party Management	115		—		239		—
Total segment revenues	1,066		595		2,121		1,166
Corporate and other	2		—		7		—
	$	1,068	$	595	$	2,128	$	1,166

Adjusted EBITDA and Reconciliation to Net Income Attributable to Common Shareholders



	Three Months Ended						Six Months Ended
($ in millions)	June 30, 2019			June 30, 2018			June 30, 2019			June 30, 2018
Adjusted EBITDA Vacation Ownership	$	208		$	104		$	379		$	192
Adjusted EBITDA Exchange & Third-Party Management	58			—			124			—
Reconciling items:
Corporate and other	(71		)	(28		)	(142		)	(53		)
Interest expense	(35		)	(5		)	(69		)	(9		)
Tax provision	(25		)	(6		)	(40		)	(17		)
Depreciation and amortization	(36		)	(5		)	(73		)	(11		)
Share-based compensation expense	(11		)	(6		)	(20		)	(10		)
Certain items	(39		)	(43		)	(86		)	(45		)
Net income attributable to common shareholders	$	49		$	11		$	73		$	47

Reconciliation of Assets from Segments

Assets



($ in millions)	At June 30, 2019		At December 31, 2018
Vacation Ownership	$	7,358	$	7,275
Exchange & Third-Party Management	1,124		1,182
Total segment assets	8,482		8,457
Corporate and other	541		561
	$	9,023	$	9,018

SUPPLEMENTAL GUARANTOR INFORMATION (Tables)

6 Months Ended

Jun. 30, 2019

Jun. 30, 2018

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Balance Sheet

Condensed Consolidating Balance Sheet



	As of June 30, 2019
	MVWC		Issuers				Senior Notes Guarantors			Non-Guarantor Subsidiaries		Total Eliminations			MVW Consolidated
($ in millions)	MVWC		MORI		ILG		Senior Notes Guarantors			Non-Guarantor Subsidiaries		Total Eliminations			MVW Consolidated
Cash and cash equivalents	$	—	$	44	$	—	$	29		$	106	$	—		$	179
Restricted cash	—		20		—		54			263		—			337
Accounts receivable, net	67		28		—		131			105		(4		)	327
Vacation ownership notes receivable, net	—		108		—		196			1,794		—			2,098
Inventory	—		304		—		489			95		—			888
Property and equipment	—		274		1		272			290		—			837
Goodwill	2,824		—		—		—			—		—			2,824
Intangibles, net	—		—		—		1,034			41		—			1,075
Due from parent	—		1,957		—		—			—		(1,957		)	—
Investments in subsidiaries	2,520		21		1,828		—			—		(4,369		)	—
Other	35		53		—		359			79		(68		)	458
Total assets	$	5,446	$	2,809	$	1,829	$	2,564		$	2,773	$	(6,398	)	$	9,023

Accounts payable	$	12	$	44	$	—	$	74		$	26	$	8		$	164
Advance deposits	—		76		—		90			20		—			186
Accrued liabilities	5		71		7		177			189		(32		)	417
Deferred revenue	—		4		—		239			117		(4		)	356
Payroll and benefits liability	3		77		—		76			16		—			172
Deferred compensation liability	—		86		—		15			1		—			102
Securitized debt, net	—		—		—		—			1,792		—			1,792
Debt, net	203		1,805		—		149			—		—			2,157
Due to subsidiary	1,957		—		—		—			—		(1,957		)	—
Other	2		22		—		38			2		—			64
Deferred taxes	—		138		—		181			24		—			343
MVW shareholders' equity	3,264		486		1,822		1,529			576		(4,413		)	3,264
Noncontrolling interests	—		—		—		(4		)	10		—			6
Total liabilities and equity	$	5,446	$	2,809	$	1,829	$	2,564		$	2,773	$	(6,398	)	$	9,023



	As of December 31, 2018⁽¹⁾
	MVWC		Issuers				Senior Notes Guarantors			Non-Guarantor Subsidiaries		Total Eliminations			MVW Consolidated
($ in millions)	MVWC		MORI		ILG		Senior Notes Guarantors			Non-Guarantor Subsidiaries		Total Eliminations			MVW Consolidated
Cash and cash equivalents	$	1	$	62	$	2	$	39		$	127	$	—		$	231
Restricted cash	—		19		—		122			242		—			383
Accounts receivable, net	31		20		—		169			104		—			324
Vacation ownership notes receivable, net	—		121		—		183			1,735		—			2,039
Inventory	—		212		—		475			176		—			863
Property and equipment	—		439		1		308			203		—			951
Goodwill	2,828		—		—		—			—		—			2,828
Intangibles, net	—		—		—		1,065			42		—			1,107
Due from parent	—		1,834		—		—			—		(1,834		)	—
Investments in subsidiaries	2,681		93		1,875		—			—		(4,649		)	—
Other	27		53		—		251			36		(75		)	292
Total assets	$	5,568	$	2,853	$	1,878	$	2,612		$	2,665	$	(6,558	)	$	9,018

Accounts payable	$	50	$	13	$	—	$	165		$	25	$	—		$	253
Advance deposits	—		65		—		89			17		—			171
Accrued liabilities	7		96		7		121			150		(24		)	357
Deferred revenue	—		6		—		189			128		(4		)	319
Payroll and benefits liability	15		96		—		84			16		—			211
Deferred compensation liability	—		79		—		13			1		—			93
Securitized debt, net	—		—		—		—			1,714		—			1,714
Debt, net	199		1,726		—		179			—		—			2,104
Due to subsidiary	1,834		—		—		—			—		(1,834		)	—
Other	2		6		—		1			3		—			12
Deferred taxes	—		133		—		157			24		4			318
MVW shareholders' equity	3,461		633		1,871		1,617			579		(4,700		)	3,461
Noncontrolling interests	—		—		—		(3		)	8		—			5
Total liabilities and equity	$	5,568	$	2,853	$	1,878	$	2,612		$	2,665	$	(6,558	)	$	9,018

_________________________


⁽¹⁾	Amounts have been revised to correct certain immaterial prior period errors as reported in the 2018 Annual Report and have been reclassified to conform to the current year presentation.

Condensed Consolidating Balance Sheet



	As of June 30, 2019
($ in millions)	MVWC		Interval Acquisition Corp.		IAC Notes Guarantors			Non-Guarantor Subsidiaries		Total Eliminations			MVW Consolidated
Cash and cash equivalents	$	—	$	1	$	27		$	151	$	—		$	179
Restricted cash	—		—		52			285		—			337
Accounts receivable, net	67		2		115			147		(4		)	327
Vacation ownership notes receivable, net	—		—		189			1,909		—			2,098
Inventory	—		—		449			439		—			888
Property and equipment	—		—		230			607		—			837
Goodwill	2,824		—		—			—		—			2,824
Intangibles, net	—		—		1,034			41		—			1,075
Due from parent	—		—		—			1,957		(1,957		)	—
Investments in subsidiaries	2,520		1,942		1,828			—		(6,290		)	—
Other	35		27		245			219		(68		)	458
Total assets	$	5,446	$	1,972	$	4,169		$	5,755	$	(8,319	)	$	9,023

Accounts payable	$	12	$	—	$	40		$	105	$	7		$	164
Advance deposits	—		—		81			105		—			186
Accrued liabilities	5		—		170			274		(32		)	417
Deferred revenue	—		—		145			215		(4		)	356
Payroll and benefits liability	3		—		67			102		—			172
Deferred compensation liability	—		—		7			95		—			102
Securitized debt, net	—		—		—			1,792		—			1,792
Debt, net	203		141		1			1,812		—			2,157
Due to subsidiary	1,957		—		—			—		(1,957		)	—
Other	2		—		38			24		—			64
Deferred taxes	—		—		179			164		—			343
MVW shareholders' equity	3,264		1,831		3,445			1,057		(6,333		)	3,264
Noncontrolling interests	—		—		(4		)	10		—			6
Total liabilities and equity	$	5,446	$	1,972	$	4,169		$	5,755	$	(8,319	)	$	9,023



	As of December 31, 2018⁽¹⁾
($ in millions)	MVWC		Interval Acquisition Corp.		IAC Notes Guarantors			Non-Guarantor Subsidiaries		Total Eliminations			MVW Consolidated
Cash and cash equivalents	$	1	$	11	$	28		$	191	$	—		$	231
Restricted cash	—		—		83			300		—			383
Accounts receivable, net	31		2		107			184		—			324
Vacation ownership notes receivable, net	—		—		176			1,863		—			2,039
Inventory	—		—		440			423		—			863
Property and equipment	—		—		272			679		—			951
Goodwill	2,828		—		—			—		—			2,828
Intangibles, net	—		—		1,065			42		—			1,107
Due from parent	—		—		—			1,834		(1,834		)	—
Investments in subsidiaries	2,681		1,975		1,875			—		(6,531		)	—
Other	27		28		140			172		(75		)	292
Total assets	$	5,568	$	2,016	$	4,186		$	5,688	$	(8,440	)	$	9,018

Accounts payable	$	50	$	—	$	72		$	131	$	—		$	253
Advance deposits	—		—		81			90		—			171
Accrued liabilities	7		—		79			295		(24		)	357
Deferred revenue	—		—		117			206		(4		)	319
Payroll and benefits liability	15		—		77			119		—			211
Deferred compensation liability	—		—		7			86		—			93
Securitized debt, net	—		—		—			1,714		—			1,714
Debt, net	199		141		1			1,763		—			2,104
Due to subsidiary	1,834		—		—			—		(1,834		)	—
Other	2		—		1			9		—			12
Deferred taxes	—		—		155			159		4			318
MVW shareholders' equity	3,461		1,875		3,599			1,108		(6,582		)	3,461
Noncontrolling interests	—		—		(3		)	8		—			5
Total liabilities and equity	$	5,568	$	2,016	$	4,186		$	5,688	$	(8,440	)	$	9,018

Income Statement

Condensed Consolidating Statement of Income



	Three Months Ended June 30, 2019
($ in millions)	MVWC			Interval Acquisition Corp.			IAC Notes Guarantors			Non-Guarantor Subsidiaries			Total Eliminations			MVW Consolidated
Revenues	$	—		$	—		$	398		$	671		$	(1	)	$	1,068
Expenses	(6		)	—			(346		)	(574		)	1			(925		)
Gains (losses) and other income (expense), net	—			—			2			—			—			2
Interest expense	(2		)	(2		)	(3		)	(28		)	—			(35		)
ILG acquisition-related costs	—			—			(14		)	(22		)	—			(36		)
Other	—			—			—			—			—			—
Equity in earnings from unconsolidated entities	—			—			—			—			—			—
Equity in net income of subsidiaries	54			28			27			—			(109		)	—
Provision for income taxes	3			1			(12		)	(16		)	(1		)	(25		)
Net income	49			27			52			31			(110		)	49
Net income attributable to noncontrolling interests	—			—			—			—			—			—
Net income attributable to common shareholders	$	49		$	27		$	52		$	31		$	(110	)	$	49



	Three Months Ended June 30, 2018
($ in millions)	MVWC			Interval Acquisition Corp.		IAC Notes Guarantors		Non-Guarantor Subsidiaries			Total Eliminations			MVW Consolidated
Revenues	$	—		$	—	$	—	$	595		$	—		$	595
Expenses	(2		)	—		—		(544		)	—			(546		)
Gains (losses) and other income (expense), net	—			—		—		(7		)	—			(7		)
Interest expense	(3		)	—		—		(2		)	—			(5		)
ILG acquisition-related costs	—			—		—		(19		)	—			(19		)
Other	—			—		—		(1		)	—			(1		)
Provision for income taxes	1			—		—		(7		)	—			(6		)
Equity in earnings from unconsolidated entities	—			—		—		—			—			—
Equity in net income of subsidiaries	15			—		—		—			(15		)	—
Net income	11			—		—		15			(15		)	11
Net income attributable to noncontrolling interests	—			—		—		—			—			—
Net income attributable to common shareholders	$	11		$	—	$	—	$	15		$	(15	)	$	11



	Six Months Ended June 30, 2019
($ in millions)	MVWC			Interval Acquisition Corp.			IAC Notes Guarantors			Non-Guarantor Subsidiaries			Total Eliminations			MVW Consolidated
Revenues	$	—		$	—		$	797		$	1,340		$	(9	)	$	2,128
Expenses	(9		)	—			(715		)	(1,179		)	9			(1,894		)
Gains (losses) and other income (expense), net	—			—			—			10			—			10
Interest expense	(5		)	(3		)	(3		)	(58		)	—			(69		)
ILG acquisition-related costs	—			—			(14		)	(48		)	—			(62		)
Other	—			—			—			—			—			—
Provision for income taxes	4			1			(22		)	(23		)	—			(40		)
Equity in earnings from unconsolidated entities	—			—			—			—			—			—
Equity in net income of subsidiaries	83			64			62			—			(209		)	—
Net income	73			62			105			42			(209		)	73
Net income attributable to noncontrolling interests	—			—			—			—			—			—
Net income attributable to common shareholders	$	73		$	62		$	105		$	42		$	(209	)	$	73



	Six Months Ended June 30, 2018
($ in millions)	MVWC			Interval Acquisition Corp.		IAC Notes Guarantors		Non-Guarantor Subsidiaries			Total Eliminations			MVW Consolidated
Revenues	$	—		$	—	$	—	$	1,166		$	—		$	1,166
Expenses	(4		)	—		—		(1,060		)	—			(1,064		)
Gains (losses) and other income (expense), net	—			—		—		(6		)	—			(6		)
Interest expense	(5		)	—		—		(4		)	—			(9		)
ILG acquisition-related costs	—			—		—		(20		)	—			(20		)
Other	—			—		—		(3		)	—			(3		)
Provision for income taxes	2			—		—		(19		)	—			(17		)
Equity in earnings from unconsolidated entities	—			—		—		—			—			—
Equity in net income of subsidiaries	54			—		—		—			(54		)	—
Net income	47			—		—		54			(54		)	47
Net income attributable to noncontrolling interests	—			—		—		—			—			—
Net income attributable to common shareholders	$	47		$	—	$	—	$	54		$	(54	)	$	47

Condensed Consolidating Statement of Income



	Three Months Ended June 30, 2019
	MVWC			Issuers					Senior Notes Guarantors			Non-Guarantor Subsidiaries			Total Eliminations			MVW Consolidated
($ in millions)	MVWC			MORI			ILG		Senior Notes Guarantors			Non-Guarantor Subsidiaries			Total Eliminations			MVW Consolidated
Revenues	$	—		$	191		$	—	$	695		$	183		$	(1	)	$	1,068
Expenses	(6		)	(200		)	—		(583		)	(137		)	1			(925		)
Gains (losses) and other income (expense), net	—			2			—		—			—			—			2
Interest expense	(2		)	(24		)	—		(5		)	(4		)	—			(35		)
ILG acquisition-related costs	—			(22		)	—		(14		)	—			—			(36		)
Other	—			—			—		—			—			—			—
Provision for income taxes	3			16			—		(35		)	(9		)	—			(25		)
Equity in earnings from unconsolidated entities	—			—			—		—			—			—			—
Equity in net income of subsidiaries	54			62			27		—			—			(143		)	—
Net income	49			25			27		58			33			(143		)	49
Net income attributable to noncontrolling interests	—			—			—		—			—			—			—
Net income attributable to common shareholders	$	49		$	25		$	27	$	58		$	33		$	(143	)	$	49



	Three Months Ended June 30, 2018
	MVWC			Issuers					Senior Notes Guarantors			Non-Guarantor Subsidiaries			Total Eliminations			MVW Consolidated
($ in millions)	MVWC			MORI			ILG		Senior Notes Guarantors			Non-Guarantor Subsidiaries			Total Eliminations			MVW Consolidated
Revenues	$	—		$	194		$	—	$	286		$	115		$	—		$	595
Expenses	(2		)	(189		)	—		(257		)	(98		)	—			(546		)
Gains (losses) and other income (expense), net	—			(7		)	—		—			—			—			(7		)
Interest expense	(3		)	(1		)	—		(1		)	—			—			(5		)
ILG acquisition-related costs	—			(19		)	—		—			—			—			(19		)
Other	—			(1		)	—		—			—			—			(1		)
Provision for income taxes	1			7			—		(12		)	(2		)	—			(6		)
Equity in earnings from unconsolidated entities	—			—			—		—			—			—			—
Equity in net income of subsidiaries	15			16			—		—			—			(31		)	—
Net income	11			—			—		16			15			(31		)	11
Net income attributable to noncontrolling interests	—			—			—		—			—			—			—
Net income attributable to common shareholders	$	11		$	—		$	—	$	16		$	15		$	(31	)	$	11



	Six Months Ended June 30, 2019
	MVWC			Issuers					Senior Notes Guarantors			Non-Guarantor Subsidiaries			Total Eliminations			MVW Consolidated
($ in millions)	MVWC			MORI			ILG		Senior Notes Guarantors			Non-Guarantor Subsidiaries			Total Eliminations			MVW Consolidated
Revenues	$	—		$	350		$	—	$	1,406		$	381		$	(9	)	$	2,128
Expenses	(9		)	(392		)	—		(1,214		)	(288		)	9			(1,894		)
Gains (losses) and other income (expense), net	—			11			—		(1		)	—			—			10
Interest expense	(5		)	(54		)	—		(6		)	(4		)	—			(69		)
ILG acquisition-related costs	—			(48		)	—		(14		)	—			—			(62		)
Other	—			—			—		—			—			—			—
Provision for income taxes	4			40			—		(70		)	(14		)	—			(40		)
Equity in earnings from unconsolidated entities	—			—			—		—			—			—			—
Equity in net income of subsidiaries	83			115			62		—			—			(260		)	—
Net income	73			22			62		101			75			(260		)	73
Net income attributable to noncontrolling interests	—			—			—		—			—			—			—
Net income attributable to common shareholders	$	73		$	22		$	62	$	101		$	75		$	(260	)	$	73



	Six Months Ended June 30, 2018
	MVWC			Issuers					Senior Notes Guarantors			Non-Guarantor Subsidiaries			Total Eliminations			MVW Consolidated
($ in millions)	MVWC			MORI			ILG		Senior Notes Guarantors			Non-Guarantor Subsidiaries			Total Eliminations			MVW Consolidated
Revenues	$	—		$	363		$	—	$	585		$	218		$	—		$	1,166
Expenses	(4		)	(362		)	—		(510		)	(188		)	—			(1,064		)
Gains (losses) and other income (expense), net	—			(6		)	—		—			—			—			(6		)
Interest expense	(5		)	(2		)	—		(2		)	—			—			(9		)
ILG acquisition-related costs	—			(20		)	—		—			—			—			(20		)
Other	—			(3		)	—		—			—			—			(3		)
Provision for income taxes	2			11			—		(27		)	(3		)	—			(17		)
Equity in earnings from unconsolidated entities	—			—			—		—			—			—			—
Equity in net income of subsidiaries	54			46			—		—			—			(100		)	—
Net income	47			27			—		46			27			(100		)	47
Net income attributable to noncontrolling interests	—			—			—		—			—			—			—
Net income attributable to common shareholders	$	47		$	27		$	—	$	46		$	27		$	(100	)	$	47

Cash Flow

Condensed Consolidating Statement of Cash Flows



	Six Months Ended June 30, 2019
	MVWC			Issuers						Senior Notes Guarantors			Non-Guarantor Subsidiaries			Total Eliminations			MVW Consolidated
($ in millions)	MVWC			MORI			ILG			Senior Notes Guarantors			Non-Guarantor Subsidiaries			Total Eliminations			MVW Consolidated
Net cash, cash equivalents and restricted cash provided by (used in) operating activities	$	(71	)	$	(31	)	$	—		$	151		$	19		$	(12	)	$	56
Net cash, cash equivalents and restricted cash (used in) provided by investing activities	(4		)	(14		)	—			26			7			—			15
Net cash, cash equivalents and restricted cash (used in) provided by financing activities	74			28			(2		)	(255		)	(27		)	12			(170		)
Effect of changes in exchange rates on cash, cash equivalents and restricted cash	—			—			—			—			1			—			1
Cash, cash equivalents and restricted cash, beginning of period	1			81			2			161			369			—			614
Cash, cash equivalents and restricted cash, end of period	$	—		$	64		$	—		$	83		$	369		$	—		$	516



	Six Months Ended June 30, 2018
	MVWC			Issuers					Senior Notes Guarantors			Non-Guarantor Subsidiaries			Total Eliminations			MVW Consolidated
($ in millions)	MVWC			MORI			ILG		Senior Notes Guarantors			Non-Guarantor Subsidiaries			Total Eliminations			MVW Consolidated
Net cash, cash equivalents and restricted cash provided by (used in) operating activities	$	(45	)	$	111		$	—	$	(2	)	$	(8	)	$	2		$	58
Net cash, cash equivalents and restricted cash (used in) provided by investing activities	(12		)	(4		)	—		—			(3		)	—			(19		)
Net cash, cash equivalents and restricted cash (used in) provided by financing activities	57			49			—		(22		)	105			(2		)	187
Effect of changes in exchange rates on cash, cash equivalents and restricted cash	—			—			—		—			1			—			1
Cash, cash equivalents and restricted cash, beginning of period	—			377			—		30			84			—			491
Cash, cash equivalents and restricted cash, end of period	$	—		$	533		$	—	$	6		$	179		$	—		$	718

Condensed Consolidating Statement of Cash Flows



	Six Months Ended June 30, 2019
($ in millions)	MVWC			Interval Acquisition Corp.			IAC Notes Guarantors			Non-Guarantor Subsidiaries			Total Eliminations			MVW Consolidated
Net cash, cash equivalents and restricted cash provided by (used in) operating activities	$	(71	)	$	(2	)	$	106		$	315		$	(292	)	$	56
Net cash, cash equivalents and restricted cash (used in) provided by investing activities	(4		)	—			22			(3		)	—			15
Net cash, cash equivalents and restricted cash (used in) provided by financing activities	74			(8		)	(160		)	(368		)	292			(170		)
Effect of changes in exchange rates on cash, cash equivalents and restricted cash	—			—			—			1			—			1
Cash, cash equivalents and restricted cash, beginning of period	1			11			111			491			—			614
Cash, cash equivalents and restricted cash, end of period	$	—		$	1		$	79		$	436		$	—		$	516



	Six Months Ended June 30, 2018
($ in millions)	MVWC			Interval Acquisition Corp.		IAC Notes Guarantors		Non-Guarantor Subsidiaries			Total Eliminations			MVW Consolidated
Net cash, cash equivalents and restricted cash provided by (used in) operating activities	$	(45	)	$	—	$	—	$	101		$	2		$	58
Net cash, cash equivalents and restricted cash (used in) provided by investing activities	(12		)	—		—		(7		)	—			(19		)
Net cash, cash equivalents and restricted cash (used in) provided by financing activities	57			—		—		132			(2		)	187
Effect of changes in exchange rates on cash, cash equivalents and restricted cash	—			—		—		1			—			1
Cash, cash equivalents and restricted cash, beginning of period	—			—		—		491			—			491
Cash, cash equivalents and restricted cash, end of period	$	—		$	—	$	—	$	718		$	—		$	718

BASIS OF PRESENTATION - (Details) - USD ($) $ in Millions	Jun. 30, 2019	Dec. 31, 2018
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Accounts payable	$ (164)	$ (253)
Advance deposits	(542)	(490)
Accrued liabilities	417	357
Debt, net	2,157	2,104
Securitized debt, net	1,792	1,714
Restatement Adjustment
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Accounts payable		(8)
Accrued liabilities		(66)
Debt, net		20
Advance deposits
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Advance deposits	$ (186)	(171)
Advance deposits \| Restatement Adjustment
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Advance deposits		(58)
Other \| Restatement Adjustment
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Securitized debt, net		$ (20)

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($) $ in Millions	Jun. 30, 2019	Jan. 01, 2019
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Present value of lease liabilities	$ 156
Operating lease assets	$ 143
Accounting Standards Update 2016-02
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Impact of adoption of ASU 2016-02		$ 8
Present value of lease liabilities		165
Operating lease assets		155
Accounting Standards Update 2016-02 \| Retained Earnings
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Impact of adoption of ASU 2016-02		$ 8

ACQUISITIONS AND DISPOSITIONS - Consideration Transferred (Details) - ILG - USD ($) $ / shares in Units, shares in Millions, $ in Millions	Jun. 30, 2019	Aug. 31, 2018	Sep. 01, 2018
Business Acquisition [Line Items]
Equivalent shares of Marriott Vacations Worldwide common stock issued in exchange for ILG outstanding shares (in shares)	20.5
Marriott Vacations Worldwide common stock price as of Acquisition Date (in dollars per share)	$ 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	30
Total shareholder equity	$ 4,215		$ 4,215
Cash acquired from acquisition		$ 154

ACQUISITIONS AND DISPOSITIONS - Preliminary Fair Values of Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Millions		6 Months Ended
	Sep. 01, 2018	Jun. 30, 2019	Dec. 31, 2018
September 1, 2018 (as reported at December 31, 2018)
Goodwill		$ 2,824	$ 2,828
Adjustments
Adjustments		(4)
September 1, 2018 (as adjusted at June 30, 2019)
Goodwill		2,824	$ 2,828
ILG
September 1, 2018 (as reported at December 31, 2018)
Vacation ownership notes receivable	$ 753
Inventory	474
Property and equipment	373
Intangible assets	1,163
Other assets	662
Deferred revenue	(217)
Deferred taxes	(175)
Debt	(392)
Securitized debt from VIEs	(702)
Other liabilities	(548)
Net assets acquired	1,391
Goodwill	2,824
Assets acquired	4,215	4,215
Adjustments
Vacation ownership notes receivable	0
Inventory	0
Property and equipment	(1)
Intangible assets	(3)
Other assets	42
Deferred revenue	0
Deferred taxes	4
Debt	0
Securitized debt from VIEs	0
Other liabilities	(37)
Net assets acquired	5
Adjustments	(4)
Assets acquired	1
September 1, 2018 (as adjusted at June 30, 2019)
Vacation ownership notes receivable	753
Inventory	474
Property and equipment	373
Intangible assets	1,163
Other assets	662
Deferred revenue	(217)
Deferred taxes	(175)
Debt	(392)
Securitized debt from VIEs	(702)
Other liabilities	(548)
Net assets acquired	1,391
Goodwill	2,824
Assets acquired	4,215	$ 4,215
Previously Reported [Member] \| ILG
September 1, 2018 (as reported at December 31, 2018)
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
Goodwill	2,828
Assets acquired	4,214
September 1, 2018 (as adjusted at June 30, 2019)
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
Goodwill	2,828
Assets acquired	$ 4,214

ACQUISITIONS AND DISPOSITIONS - Additional Information (Details) $ / shares in Units, $ in Millions		3 Months Ended	6 Months Ended
	Sep. 01, 2018 Property $ / shares	Mar. 31, 2018 USD ($) vacation_ownership_unit	Jun. 30, 2019 USD ($) $ / shares	Jun. 30, 2018 USD ($)	Dec. 31, 2018 USD ($)
Business Acquisition [Line Items]
Number of hotels acquired \| Property	4
Goodwill			$ 2,824		$ 2,828
Business combinations, pro forma, acquisition-related costs				$ 27
Vacation Ownership
Business Acquisition [Line Items]
Goodwill			2,444		2,448
Exchange & Third-Party Management
Business Acquisition [Line Items]
Goodwill			$ 380		$ 380
Marco Island Florida
Business Acquisition [Line Items]
Number of vacation ownership units acquired \| vacation_ownership_unit		20
Payments to acquire real estate		$ 24
ILG
Business Acquisition [Line Items]
Business combination, share conversion ratio	0.165
Business combination, share price (in usd per share) \| $ / shares			$ 119.00
ILG \| Minimum
Business Acquisition [Line Items]
Vacation ownership product, financing term			5 years
ILG \| Maximum
Business Acquisition [Line Items]
Vacation ownership product, financing term			15 years
ILG \| ILG
Business Acquisition [Line Items]
Business combination, share price (in usd per share) \| $ / shares	$ 14.75

ACQUISITIONS AND DISPOSITIONS - Goodwill (Details) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2019	Dec. 31, 2018
Business Acquisition [Line Items]
Goodwill	$ 2,824	$ 2,828
Adjustments	(4)
Exchange & Third-Party Management
Business Acquisition [Line Items]
Goodwill	380	380
Adjustments	0
Vacation Ownership
Business Acquisition [Line Items]
Goodwill	2,444	$ 2,448
Adjustments	$ (4)

ACQUISITIONS AND DISPOSITIONS - Intangible Assets (Details) - ILG $ in Millions	Sep. 01, 2018 USD ($)
Business Acquisition [Line Items]
Intangible assets	$ 1,163
Management contracts
Business Acquisition [Line Items]
Estimated Fair Value	30
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 - Deferred Revenue Narrative (Details)	Jun. 30, 2019
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-07-01
Business Acquisition [Line Items]
Expected timing of satisfaction, period	2 years
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-04-01 \| Minimum \| Sale of vacation ownership products
Business Acquisition [Line Items]
Expected timing of satisfaction, period	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-04-01 \| Maximum \| Sale of vacation ownership products
Business Acquisition [Line Items]
Expected timing of satisfaction, period	5 years

ACQUISITIONS AND DISPOSITIONS - Pro Forma Results of Operations (Details) - ILG $ / shares in Units, $ in Millions	6 Months Ended
	Jun. 30, 2018 USD ($) $ / shares
Business Acquisition [Line Items]
Revenues	$ 2,097
Net income	71
Net income attributable to common shareholders	$ 68
EARNINGS PER SHARE ATTRIBUTABLE TO COMMON SHAREHOLDERS
Basic (in usd per share) \| $ / shares	$ 1.45
Diluted (in usd per share) \| $ / shares	$ 1.42

ACQUISITIONS AND DISPOSITIONS - ILG Results of Operations (Details) - USD ($) $ in Millions	3 Months Ended	6 Months Ended
	Jun. 30, 2019	Jun. 30, 2019
Business Acquisition [Line Items]
Net income attributable to common shareholders	$ 34	$ 66
ILG
Business Acquisition [Line Items]
Revenue	$ 455	$ 913

REVENUE - Additional Information (Details) - USD ($)	3 Months Ended	6 Months Ended
REVENUE - Additional Information (Details) - USD ($)	Jun. 30, 2019	Jun. 30, 2019	Dec. 31, 2018
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Performance obligation satisfied in previous period	$ (4,000,000)	$ (3,000,000)
Contract with customer, contract assets	0	0	$ 0
Contract with customer, liability, revenue recognized	$ 51,000,000	$ 203,000,000

REVENUE - Revenue with Customers (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Revenue from contracts with customers	$ 999	$ 559	$ 1,991	$ 1,095
Cost reimbursements	252	202	539	418
Financing	69	36	137	71
TOTAL REVENUES	1,068	595	2,128	1,166
Vacation Ownership
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Revenue from contracts with customers	883	559	1,747	1,095
Cost reimbursements	258	202	549	418
Financing	68	36	135	71
TOTAL REVENUES	951	595	1,882	1,166
Exchange & Third-Party Management
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Revenue from contracts with customers	114	0	237	0
Cost reimbursements	22	0	46	0
Financing	1	0	2	0
TOTAL REVENUES	115	0	239	0
Sale of vacation ownership products
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Revenue from contracts with customers	350	205	651	380
Sale of vacation ownership products \| Vacation Ownership
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Revenue from contracts with customers	350	205	651	380
Sale of vacation ownership products \| Exchange & Third-Party Management
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Revenue from contracts with customers	0	0	0	0
Ancillary revenues
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Revenue from contracts with customers	67	36	125	64
Ancillary revenues \| Vacation Ownership
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Revenue from contracts with customers	66	36	123	64
Ancillary revenues \| Exchange & Third-Party Management
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Revenue from contracts with customers	1	0	2	0
Management fee revenues
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Revenue from contracts with customers	46	26	94	50
Management fee revenues \| Vacation Ownership
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Revenue from contracts with customers	38	26	75	50
Management fee revenues \| Exchange & Third-Party Management
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Revenue from contracts with customers	11	0	26	0
Other services revenues
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Revenue from contracts with customers	126	16	259	34
Other services revenues \| Vacation Ownership
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Revenue from contracts with customers	30	16	61	34
Other services revenues \| Exchange & Third-Party Management
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Revenue from contracts with customers	63	0	129	0
Resort management and other services
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Revenue from contracts with customers	239	78	478	148
Resort management and other services \| Vacation Ownership
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Revenue from contracts with customers	134	78	259	148
Resort management and other services \| Exchange & Third-Party Management
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Revenue from contracts with customers	75	0	157	0
Rental
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Revenue from contracts with customers	158	74	323	149
Rental \| Vacation Ownership
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Revenue from contracts with customers	141	74	288	149
Rental \| Exchange & Third-Party Management
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Revenue from contracts with customers	17	0	34	0
Corporate and other
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Revenue from contracts with customers	2	0	7	0
Cost reimbursements	(28)	0	(56)	0
Financing	0	0	0	0
TOTAL REVENUES	2	0	7	0
Corporate and other \| Sale of vacation ownership products
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Revenue from contracts with customers	0	0	0	0
Corporate and other \| Ancillary revenues
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Revenue from contracts with customers	0	0	0	0
Corporate and other \| Management fee revenues
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Revenue from contracts with customers	(3)	0	(7)	0
Corporate and other \| Other services revenues
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Revenue from contracts with customers	33	0	69	0
Corporate and other \| Resort management and other services
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Revenue from contracts with customers	30	0	62	0
Corporate and other \| Rental
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Revenue from contracts with customers	$ 0	$ 0	$ 1	$ 0

REVENUE - Timing of Revenue from Contracts with Customers (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Revenue from contracts with customers	$ 999	$ 559	$ 1,991	$ 1,095
Vacation Ownership
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Revenue from contracts with customers	883	559	1,747	1,095
Exchange & Third-Party Management
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Revenue from contracts with customers	114	0	237	0
Services transferred over time
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Revenue from contracts with customers	528	315	1,098	643
Services transferred over time \| Vacation Ownership
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Revenue from contracts with customers	471	315	978	643
Services transferred over time \| Exchange & Third-Party Management
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Revenue from contracts with customers	55	0	113	0
Goods or services transferred at a point in time
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Revenue from contracts with customers	471	244	893	452
Goods or services transferred at a point in time \| Vacation Ownership
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Revenue from contracts with customers	412	244	769	452
Goods or services transferred at a point in time \| Exchange & Third-Party Management
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Revenue from contracts with customers	59	0	124	0
Corporate and other
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Revenue from contracts with customers	2	0	7	0
Corporate and other \| Services transferred over time
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Revenue from contracts with customers	2	0	7	0
Corporate and other \| Goods or services transferred at a point in time
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Revenue from contracts with customers	$ 0	$ 0	$ 0	$ 0

REVENUE - Contracts with Customers, Assets and Liabilities (Details) - USD ($) $ in Millions	Jun. 30, 2019	Dec. 31, 2018
Receivables
Accounts receivable	$ 127	$ 164
Vacation ownership notes receivable, net	2,098	2,039
Receivables	2,225	2,203
Contract Liabilities
Contract Liabilities	542	490
Advance deposits
Contract Liabilities
Contract Liabilities	186	171
Deferred revenue
Contract Liabilities
Contract Liabilities	$ 356	$ 319

REVENUE - Remaining Performance Obligation Narrative (Details) - Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-07-01	Jun. 30, 2019
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 (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
INCOME TAXES (Details) - USD ($) $ in Millions	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018	Dec. 31, 2018
Income Tax Contingency [Line Items]
Effective income tax rate, percent	32.97%	38.08%	35.55%	27.05%
Unrecognized tax benefits that, if recognized, would impact the effective tax rate	$ 2		$ 2		$ 2
Indemnified Tax Liability
Income Tax Contingency [Line Items]
Change in unrecognized tax benefits is reasonably possible	$ (36)

VACATION OWNERSHIP NOTES RECEIVABLE - Composition of Vacation Ownership Notes Receivable Balances, Net of Reserves (Details) - USD ($) $ in Millions	Jun. 30, 2019	Dec. 31, 2018
Accounts, Notes, Loans and Financing Receivable [Line Items]
Vacation ownership notes receivable, net	$ 2,098	$ 2,039
Securitized
Accounts, Notes, Loans and Financing Receivable [Line Items]
Vacation ownership notes receivable, net	1,681	1,627
Eligible for securitization
Accounts, Notes, Loans and Financing Receivable [Line Items]
Vacation ownership notes receivable, net	94	107
Not eligible for securitization
Accounts, Notes, Loans and Financing Receivable [Line Items]
Vacation ownership notes receivable, net	323	305
Non-Securitized
Accounts, Notes, Loans and Financing Receivable [Line Items]
Vacation ownership notes receivable, net	417	412
Originated
Accounts, Notes, Loans and Financing Receivable [Line Items]
Vacation ownership notes receivable, net	1,553	1,388
Originated \| Securitized
Accounts, Notes, Loans and Financing Receivable [Line Items]
Vacation ownership notes receivable, net	1,209	1,070
Originated \| Eligible for securitization
Accounts, Notes, Loans and Financing Receivable [Line Items]
Vacation ownership notes receivable, net	83	85
Originated \| Not eligible for securitization
Accounts, Notes, Loans and Financing Receivable [Line Items]
Vacation ownership notes receivable, net	261	233
Originated \| Non-Securitized
Accounts, Notes, Loans and Financing Receivable [Line Items]
Vacation ownership notes receivable, net	344	318
Acquired
Accounts, Notes, Loans and Financing Receivable [Line Items]
Vacation ownership notes receivable, net	545	651
Acquired \| Securitized
Accounts, Notes, Loans and Financing Receivable [Line Items]
Vacation ownership notes receivable, net	472	557
Acquired \| Eligible for securitization
Accounts, Notes, Loans and Financing Receivable [Line Items]
Vacation ownership notes receivable, net	11	22
Acquired \| Not eligible for securitization
Accounts, Notes, Loans and Financing Receivable [Line Items]
Vacation ownership notes receivable, net	62	72
Acquired \| Non-Securitized
Accounts, Notes, Loans and Financing Receivable [Line Items]
Vacation ownership notes receivable, net	$ 73	$ 94

VACATION OWNERSHIP NOTES RECEIVABLE - Interest Income Associated With Vacation Ownership Notes Receivable (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Accounts, Notes, Loans and Financing Receivable [Line Items]
Interest income	$ 67	$ 34	$ 132	$ 68
Securitized
Accounts, Notes, Loans and Financing Receivable [Line Items]
Interest income	59	27	118	53
Non-Securitized
Accounts, Notes, Loans and Financing Receivable [Line Items]
Interest income	$ 8	$ 7	$ 14	$ 15

VACATION OWNERSHIP NOTES RECEIVABLE - Additional Information (Details) $ in Millions	6 Months Ended
	Jun. 30, 2019 USD ($) credit_score	Dec. 31, 2018 USD ($) credit_score
Accounts, Notes, Loans and Financing Receivable [Line Items]
Vacation ownership notes receivable, net	$ 2,098	$ 2,039
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
Notes receivable estimated average remaining default rates	6.94%	7.01%
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	$ 7
Weighted average FICO score within originated loan pool \| credit_score	711	710
Average estimated rate of default for all outstanding loans	12.41%	12.37%
Acquired
Accounts, Notes, Loans and Financing Receivable [Line Items]
Vacation ownership notes receivable, net	$ 545	$ 651
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	$ 2	$ 1

VACATION OWNERSHIP NOTES RECEIVABLE - Accretable Yield (Details) - Acquired $ in Millions	6 Months Ended
	Jun. 30, 2019 USD ($)
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield Movement Schedule [Roll Forward]
Balance at Acquisition Date	$ 199
Accretion of acquired vacation ownership notes receivable	(43)
Reclassification from non-accretable difference	(3)
Balance at September 30, 2018	153
Non-accretable difference at September 30, 2018	$ 55

VACATION OWNERSHIP NOTES RECEIVABLE - Future Principal Payments, Net of Reserves, and Interest Rates of Vacation Ownership Notes Receivable (Details) $ in Millions	Jun. 30, 2019 USD ($)
Acquired
Future Minimum Payments Receivable [Line Items]
2019, remaining	$ 62
2020	60
2021	61
2022	61
2023	60
Thereafter	241
Total Vacation ownership notes receivable, net of reserve	545
Acquired \| Non-Securitized Vacation Ownership Notes Receivable
Future Minimum Payments Receivable [Line Items]
2019, remaining	7
2020	7
2021	8
2022	8
2023	8
Thereafter	35
Total Vacation ownership notes receivable, net of reserve	73
Acquired \| Securitized Vacation Ownership Notes Receivable
Future Minimum Payments Receivable [Line Items]
2019, remaining	55
2020	53
2021	53
2022	53
2023	52
Thereafter	206
Total Vacation ownership notes receivable, net of reserve	$ 472
Acquired \| Weighted Average
Future Minimum Payments Receivable [Line Items]
Interest rates	13.40%
Acquired \| Weighted Average \| Non-Securitized Vacation Ownership Notes Receivable
Future Minimum Payments Receivable [Line Items]
Interest rates	13.50%
Acquired \| Weighted Average \| Securitized Vacation Ownership Notes Receivable
Future Minimum Payments Receivable [Line Items]
Interest rates	13.40%
Acquired \| Minimum
Future Minimum Payments Receivable [Line Items]
Interest rates	0.00%
Acquired \| Minimum \| Non-Securitized Vacation Ownership Notes Receivable
Future Minimum Payments Receivable [Line Items]
Interest rates	0.00%
Acquired \| Minimum \| Securitized Vacation Ownership Notes Receivable
Future Minimum Payments Receivable [Line Items]
Interest rates	6.00%
Acquired \| Maximum
Future Minimum Payments Receivable [Line Items]
Interest rates	17.90%
Acquired \| Maximum \| Non-Securitized Vacation Ownership Notes Receivable
Future Minimum Payments Receivable [Line Items]
Interest rates	17.90%
Acquired \| Maximum \| Securitized Vacation Ownership Notes Receivable
Future Minimum Payments Receivable [Line Items]
Interest rates	16.90%
Originated
Future Minimum Payments Receivable [Line Items]
2019, remaining	$ 99
2020	159
2021	157
2022	157
2023	157
Thereafter	824
Total Vacation ownership notes receivable, net of reserve	1,553
Originated \| Non-Securitized Vacation Ownership Notes Receivable
Future Minimum Payments Receivable [Line Items]
2019, remaining	34
2020	45
2021	37
2022	32
2023	29
Thereafter	167
Total Vacation ownership notes receivable, net of reserve	344
Originated \| Securitized Vacation Ownership Notes Receivable
Future Minimum Payments Receivable [Line Items]
2019, remaining	65
2020	114
2021	120
2022	125
2023	128
Thereafter	657
Total Vacation ownership notes receivable, net of reserve	$ 1,209
Originated \| Weighted Average
Future Minimum Payments Receivable [Line Items]
Interest rates	12.40%
Originated \| Weighted Average \| Non-Securitized Vacation Ownership Notes Receivable
Future Minimum Payments Receivable [Line Items]
Interest rates	11.80%
Originated \| Weighted Average \| Securitized Vacation Ownership Notes Receivable
Future Minimum Payments Receivable [Line Items]
Interest rates	12.60%
Originated \| Minimum
Future Minimum Payments Receivable [Line Items]
Interest rates	0.00%
Originated \| Minimum \| Non-Securitized Vacation Ownership Notes Receivable
Future Minimum Payments Receivable [Line Items]
Interest rates	0.00%
Originated \| Minimum \| Securitized Vacation Ownership Notes Receivable
Future Minimum Payments Receivable [Line Items]
Interest rates	5.20%
Originated \| Maximum
Future Minimum Payments Receivable [Line Items]
Interest rates	18.00%
Originated \| Maximum \| Non-Securitized Vacation Ownership Notes Receivable
Future Minimum Payments Receivable [Line Items]
Interest rates	18.00%
Originated \| Maximum \| Securitized Vacation Ownership Notes Receivable
Future Minimum Payments Receivable [Line Items]
Interest rates	17.50%

VACATION OWNERSHIP NOTES RECEIVABLE - Notes Receivable Reserves (Details) $ in Millions	6 Months Ended
	Jun. 30, 2019 USD ($)
Time Sharing Transactions, Allowance for Uncollectible Accounts [Roll Forward]
Beginning balance	$ 140
Increase in vacation ownership notes receivable reserve	46
Securitizations	0
Clean-up call	0
Write-offs	(23)
Defaulted vacation ownership notes receivable repurchase activity	0
Ending balance	163
Non-Securitized Vacation Ownership Notes Receivable
Time Sharing Transactions, Allowance for Uncollectible Accounts [Roll Forward]
Beginning balance	61
Increase in vacation ownership notes receivable reserve	38
Securitizations	(35)
Clean-up call	18
Write-offs	(23)
Defaulted vacation ownership notes receivable repurchase activity	11
Ending balance	70
Securitized Vacation Ownership Notes Receivable
Time Sharing Transactions, Allowance for Uncollectible Accounts [Roll Forward]
Beginning balance	79
Increase in vacation ownership notes receivable reserve	8
Securitizations	35
Clean-up call	(18)
Write-offs	0
Defaulted vacation ownership notes receivable repurchase activity	(11)
Ending balance	$ 93

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	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018	Dec. 31, 2018
Financing Receivable, Past Due [Line Items]
Investment in notes receivable on non-accrual status	$ 49		$ 49		$ 45
Average investment in notes receivable on non-accrual status	49	$ 47	47	$ 46
Non-Securitized Vacation Ownership Notes Receivable
Financing Receivable, Past Due [Line Items]
Investment in notes receivable on non-accrual status	41		41		36
Average investment in notes receivable on non-accrual status	39	39	38	39
Securitized Vacation Ownership Notes Receivable
Financing Receivable, Past Due [Line Items]
Investment in notes receivable on non-accrual status	8		8		$ 9
Average investment in notes receivable on non-accrual status	$ 10	$ 8	$ 9	$ 7

VACATION OWNERSHIP NOTES RECEIVABLE - Aging of Recorded Investment in Principal, Vacation Ownership Notes Receivable (Details) - Legacy-MVW - USD ($) $ in Millions	Jun. 30, 2019	Dec. 31, 2018
Financing Receivable, Past Due [Line Items]
Total past due	$ 76	$ 78
Current	1,383	1,325
Total vacation ownership notes receivable	1,459	1,403
Non-Securitized Vacation Ownership Notes Receivable
Financing Receivable, Past Due [Line Items]
Total past due	47	43
Current	223	235
Total vacation ownership notes receivable	270	278
Securitized Vacation Ownership Notes Receivable
Financing Receivable, Past Due [Line Items]
Total past due	29	35
Current	1,160	1,090
Total vacation ownership notes receivable	1,189	1,125
31 – 90 days past due
Financing Receivable, Past Due [Line Items]
Total past due	27	33
31 – 90 days past due \| Non-Securitized Vacation Ownership Notes Receivable
Financing Receivable, Past Due [Line Items]
Total past due	6	7
31 – 90 days past due \| Securitized Vacation Ownership Notes Receivable
Financing Receivable, Past Due [Line Items]
Total past due	21	26
91 – 150 days past due
Financing Receivable, Past Due [Line Items]
Total past due	13	12
91 – 150 days past due \| Non-Securitized Vacation Ownership Notes Receivable
Financing Receivable, Past Due [Line Items]
Total past due	5	3
91 – 150 days past due \| Securitized Vacation Ownership Notes Receivable
Financing Receivable, Past Due [Line Items]
Total past due	8	9
Greater than 150 days past due
Financing Receivable, Past Due [Line Items]
Total past due	36	33
Greater than 150 days past due \| Non-Securitized Vacation Ownership Notes Receivable
Financing Receivable, Past Due [Line Items]
Total past due	36	33
Greater than 150 days past due \| Securitized Vacation Ownership Notes Receivable
Financing Receivable, Past Due [Line Items]
Total past due	$ 0	$ 0

VACATION OWNERSHIP NOTES RECEIVABLE - Legacy-ILG Vacation Ownership Notes Receivable (Details) - Legacy-ILG - Originated - ILG - USD ($) $ in Millions	Jun. 30, 2019	Dec. 31, 2018
Accounts, Notes, Loans and Financing Receivable [Line Items]
Receivables	$ 258	$ 126
Current	252	124
Delinquent & Defaulted	6	2
30-59 Days
Accounts, Notes, Loans and Financing Receivable [Line Items]
Delinquent & Defaulted	3	2
60-89 Days
Accounts, Notes, Loans and Financing Receivable [Line Items]
Delinquent & Defaulted	2	0
90-119 Days
Accounts, Notes, Loans and Financing Receivable [Line Items]
Delinquent & Defaulted	1	0
Greater than 120 Days
Accounts, Notes, Loans and Financing Receivable [Line Items]
Delinquent & Defaulted	$ 0	$ 0

FINANCIAL INSTRUMENTS - Carrying Values and Estimated Fair Values (Details) - USD ($) $ in Millions	Jun. 30, 2019	Dec. 31, 2018
Carrying Amount
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Originated vacation ownership notes receivable	$ 1,553	$ 1,388
Other assets	41	66
Total financial assets	1,594	1,454
Total financial liabilities	(3,926)	(3,801)
Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Originated vacation ownership notes receivable	1,584	1,413
Other assets	41	66
Total financial assets	1,625	1,479
Total financial liabilities	(4,048)	(3,786)
Securitized \| Carrying Amount
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Originated vacation ownership notes receivable	1,209	1,070
Securitized \| Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Originated vacation ownership notes receivable	1,238	1,093
Non-Securitized \| Carrying Amount
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Originated vacation ownership notes receivable	344	318
Non-Securitized \| Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Originated vacation ownership notes receivable	346	320
Debt \| Carrying Amount
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Debt instrument, fair value	(1,792)	(1,714)
Debt \| Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Debt instrument, fair value	(1,820)	(1,718)
Exchange Notes, net \| Carrying Amount
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Debt instrument, fair value	(88)	(88)
Exchange Notes, net \| Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Debt instrument, fair value	(89)	(87)
Senior Unsecured Notes \| Carrying Amount
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Debt instrument, fair value	(742)	(741)
Senior Unsecured Notes \| Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Debt instrument, fair value	(807)	(726)
IAC Notes \| Carrying Amount
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Debt instrument, fair value	(141)	(141)
IAC Notes \| Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Debt instrument, fair value	(140)	(140)
Convertible Notes \| Carrying Amount
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Convertible notes, net	(203)	(199)
Convertible Notes \| Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Convertible notes, net	(221)	(198)
Non-Interest Bearing Note Payable \| Non-interest bearing note payable, net \| Carrying Amount
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Non-interest bearing note payable, net	0	(30)
Non-Interest Bearing Note Payable \| Non-interest bearing note payable, net \| Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Non-interest bearing note payable, net	0	(30)
Originated \| Carrying Amount
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Originated vacation ownership notes receivable	1,553	1,388
Originated \| Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Originated vacation ownership notes receivable	1,584	1,413
Corporate Credit Facility \| Term Loan \| Carrying Amount
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Debt instrument, fair value	(884)	(888)
Corporate Credit Facility \| Term Loan \| Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Debt instrument, fair value	(895)	(887)
Corporate Credit Facility \| Revolving Corporate Credit Facility, net \| Carrying Amount
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Debt instrument, fair value	(76)	0
Corporate Credit Facility \| Revolving Corporate Credit Facility, net \| Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Debt instrument, fair value	$ (76)	$ 0

FINANCIAL INSTRUMENTS - Carrying Values and Estimated Fair Values - Non-securitized Notes Receivable (Details) - USD ($) $ in Millions	Jun. 30, 2019	Dec. 31, 2018
Carrying Amount
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Originated vacation ownership notes receivable	$ 1,553	$ 1,388
Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Originated vacation ownership notes receivable	1,584	1,413
Securitized Vacation Ownership Notes Receivable \| Carrying Amount
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Originated vacation ownership notes receivable	1,209	1,070
Securitized Vacation Ownership Notes Receivable \| Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Originated vacation ownership notes receivable	1,238	1,093
Non-Securitized Vacation Ownership Notes Receivable \| Carrying Amount
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Originated vacation ownership notes receivable	344	318
Non-Securitized Vacation Ownership Notes Receivable \| Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Originated vacation ownership notes receivable	346	320
Non-Securitized Vacation Ownership Notes Receivable \| Eligible for securitization \| Carrying Amount
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Originated vacation ownership notes receivable	83	85
Non-Securitized Vacation Ownership Notes Receivable \| Eligible for securitization \| Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Originated vacation ownership notes receivable	85	87
Non-Securitized Vacation Ownership Notes Receivable \| Not eligible for securitization \| Carrying Amount
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Originated vacation ownership notes receivable	261	233
Non-Securitized Vacation Ownership Notes Receivable \| Not eligible for securitization \| Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Originated vacation ownership notes receivable	261	233
Originated \| Carrying Amount
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Originated vacation ownership notes receivable	1,553	1,388
Originated \| Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Originated vacation ownership notes receivable	$ 1,584	$ 1,413

FINANCIAL INSTRUMENTS - Narrative (Details) $ in Millions	Jun. 30, 2019 USD ($)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable securities	$ 7
Variable Interest Entity
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash surrender value of life insurance	$ 34

EARNINGS PER SHARE - Additional Information (Details) - $ / shares	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018	Dec. 31, 2018
SARs
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Shares excluded from the calculation of diluted earnings per share (in shares)	167,760	56,649	249,737	56,649
Exercise Price Securities, Excluded From Computation Of Earnings Per Share		$ 143.38		$ 143.38
Private Warrants
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Exercise price of warrants (in usd per share)	$ 175.79		$ 175.79		$ 176.68
Minimum \| SARs
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Exercise Price Securities, Excluded From Computation Of Earnings Per Share	100.52		97.53
Maximum \| SARs
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Exercise Price Securities, Excluded From Computation Of Earnings Per Share	$ 143.38		$ 143.38

EARNINGS PER SHARE - Reconciliation of Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Net income attributable to common shareholders	$ 49	$ 11	$ 73	$ 47
Shares for basic (loss) earnings per share (in shares)	44,700	26,700	45,100	26,700
Basic (loss) earnings per share (in usd per share)	$ 1.11	$ 0.40	$ 1.62	$ 1.75
Employee stock options and SARs (in shares)	300	400	300	400
Restricted stock units (in shares)	200	200	200	200
Shares for diluted earnings per share (in shares)	45,200	27,300	45,600	27,300
Diluted (loss) earnings per share (in usd per share)	$ 1.10	$ 0.39	$ 1.61	$ 1.71
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)			452	307

INVENTORY - Composition of Inventory (Details) - USD ($) $ in Millions	Jun. 30, 2019	Dec. 31, 2018
Inventory Disclosure [Abstract]
Finished goods	$ 828	$ 843
Work-in-progress	48	9
Real estate inventory	876	852
Other	12	11
Inventory	$ 888	$ 863

INVENTORY - Additional Information (Details) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
Inventory Disclosure [Abstract]
Real estate inventory, increase (decrease) true up (less than)	$ 4	$ 1
Amount of completed vacation ownership units classified as property and equipment	$ 48

PROPERTY AND EQUIPMENT (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
PROPERTY AND EQUIPMENT (Details) - USD ($) $ in Millions	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018	Dec. 31, 2018
Property, Plant and Equipment [Abstract]
Land and land improvements	$ 373		$ 373		$ 466
Buildings and leasehold improvements	403		403		404
Furniture, fixtures and other equipment	87		87		88
Information technology	311		311		297
Construction in progress	38		38		32
Property, plant and equipment, gross	1,212		1,212		1,287
Accumulated depreciation	(375)		(375)		(336)
Property, plant and equipment, net	837		837		$ 951
Property, plant and equipment to be sold	10
Impairment	$ 0	$ 0	$ 26	$ 0

CONTINGENCIES AND COMMITMENTS (Details)	1 Months Ended		3 Months Ended			6 Months Ended		12 Months Ended
CONTINGENCIES AND COMMITMENTS (Details)	Aug. 02, 2019 USD ($)	Jun. 30, 2018 USD ($)	Jun. 30, 2019 USD ($) vacation_ownership_unit	Mar. 31, 2019 USD ($)	Jun. 30, 2018 USD ($)	Jun. 30, 2019 USD ($) vacation_ownership_unit	Jun. 30, 2018 USD ($)	Dec. 31, 2018 USD ($)	Dec. 31, 2017 USD ($)	Sep. 30, 2017 Property
Commitments and Contingencies Disclosure [Line Items]
Commitments to subsidize associations			$ 3,000,000			$ 3,000,000
Finance leases, future minimum payments due			23,000,000			23,000,000
Surety bonds issued			78,000,000			78,000,000
Vacation ownership projects currently under development			17,000,000			17,000,000
Time share, accrued costs			(3,000,000)			(3,000,000)
Estimate of possible loss		$ 10,000,000
Recovery of funds								$ (6,000,000)
Litigation charges			1,000,000		$ 16,000,000	2,000,000	$ 16,000,000
Settled Litigation
Commitments and Contingencies Disclosure [Line Items]
Proceeds from legal settlements			3,000,000
Litigation charges			3,000,000			3,000,000
Revolving corporate credit facility, net
Commitments and Contingencies Disclosure [Line Items]
Letters of credit outstanding			4,000,000			4,000,000
Letter of Credit
Commitments and Contingencies Disclosure [Line Items]
Letters of credit outstanding			4,000,000			4,000,000
Revolving corporate credit facility, net \| Corporate Credit Facility
Commitments and Contingencies Disclosure [Line Items]
Credit facility			600,000,000			600,000,000
New York City, New York
Commitments and Contingencies Disclosure [Line Items]
Purchase commitment			182,000,000			182,000,000
Purchase commitment obligation due, 2020			120,000,000			120,000,000
Purchase commitment obligation due, 2021			62,000,000			62,000,000
Bali Indonesia Resort Two
Commitments and Contingencies Disclosure [Line Items]
Purchase commitment obligation due, 2019			7,000,000			7,000,000
Purchase commitment obligation due, 2020			23,000,000			23,000,000
Purchase commitment obligation due, 2021			$ 2,000,000			$ 2,000,000
Number of vacation ownership units expected to be acquired \| vacation_ownership_unit			88			88
San Francisco, California
Commitments and Contingencies Disclosure [Line Items]
Purchase commitment			$ 158,000,000			$ 158,000,000
Purchase commitment obligation due, 2019			57,000,000			57,000,000
Purchase commitment obligation due, 2020			55,000,000			55,000,000
Purchase commitment obligation due, 2021			46,000,000			46,000,000
Finance leases, future minimum payments due			9,000,000			9,000,000
Facility And Other Operating Leases \| New York City, New York
Commitments and Contingencies Disclosure [Line Items]
Finance leases, future minimum payments due			7,000,000			7,000,000
Information technology hardware and software
Commitments and Contingencies Disclosure [Line Items]
Purchase commitment			62,000,000			62,000,000
Purchase commitment obligation due, 2019			19,000,000			19,000,000
Purchase commitment obligation due, 2020			19,000,000			19,000,000
Purchase commitment obligation due, 2021			10,000,000			10,000,000
Purchase commitment obligation due, 2022			7,000,000			7,000,000
Purchase commitment obligation due, 2023			6,000,000			6,000,000
Purchase commitment obligation due, thereafter			1,000,000			1,000,000
Insurance Claim, Hurricane Irma
Commitments and Contingencies Disclosure [Line Items]
Insurance receivable			10,000,000			10,000,000
Hurricane
Commitments and Contingencies Disclosure [Line Items]
Number of other resorts and lodging properties (more than) \| Property										20
Gains, property damage									$ 1,000,000
Gain on business interruption insurance recovery				$ 9,000,000				32,000,000
Business interruption insurance recovery, deductible								$ (3,000,000)
Subsequent Event \| San Francisco, California
Commitments and Contingencies Disclosure [Line Items]
Capital expenditures for property and equipment	$ 57,000,000
Exchange & Third-Party Management
Commitments and Contingencies Disclosure [Line Items]
Guarantor obligations, maximum exposure			37,000,000			37,000,000
Guarantor obligations, maximum exposure. due remainder of fiscal year			8,000,000			8,000,000
Guarantor obligations, maximum exposure, due in second year			10,000,000			10,000,000
Guarantor obligations, maximum exposure, due in third year			9,000,000			9,000,000
Guarantor obligations, maximum exposure, due in fourth year			4,000,000			4,000,000
Guarantor obligations, maximum exposure, due in five year			2,000,000			2,000,000
Guarantor obligations, maximum exposure, due after fifth year			4,000,000			4,000,000
Other Guarantees
Commitments and Contingencies Disclosure [Line Items]
Guarantor obligations, maximum exposure			$ 4,000,000			$ 4,000,000

LEASES - Additional Information (Details)	Jun. 30, 2019
Land Lease \| Minimum
Lessee, Lease, Description [Line Items]
Initial term of most leases (up to)	30 years
Land Lease \| Maximum
Lessee, Lease, Description [Line Items]
Initial term of most leases (up to)	50 years
Facilities \| Minimum
Lessee, Lease, Description [Line Items]
Initial term of most leases (up to)	9 years
Facilities \| Maximum
Lessee, Lease, Description [Line Items]
Initial term of most leases (up to)	14 years

LEASES - Carrying Values of Leases (Details) $ in Millions	Jun. 30, 2019 USD ($)
Leases [Abstract]
Operating lease assets	$ 121
Finance lease assets	22
Total lease assets	143
Present value of lease liabilities	134
Finance lease liabilities	22
Present value of lease liabilities	$ 156

LEASES - Lease Costs (Details) - USD ($) $ in Millions	3 Months Ended	6 Months Ended
LEASES - Lease Costs (Details) - USD ($) $ in Millions	Jun. 30, 2019	Jun. 30, 2019
Leases [Abstract]
Operating lease cost	$ 9	$ 17
Amortization of right-of-use assets	1	2
Interest on lease liabilities	1	1
Variable lease cost	1	2
Total lease cost	$ 12	$ 22

LEASES - Maturities of Operating and Financing Lease Liabilities (Details) $ in Millions	Jun. 30, 2019 USD ($)
Operating Leases
2019, remaining	$ 15
2020	29
2021	21
2022	18
2023	16
Thereafter	103
Total lease payments	202
Less: Imputed interest	(68)
Present value of lease liabilities	134
Finance Leases
2019, remaining	11
2020	10
2021	2
2022	0
2023	0
Thereafter	0
Total lease payments	23
Less: Imputed interest	(1)
Present value of lease liabilities	22
Total
2019, remaining	26
2020	39
2021	23
2022	18
2023	16
Thereafter	103
Total lease payments	225
Less: Imputed interest	(69)
Present value of lease liabilities	156
New York City and San Fransisco
Finance Leases
Total lease payments	$ 17

LEASES - Lease Term and Discount Rate (Details)	Jun. 30, 2019
Weighted-average remaining lease term (in years)
Operating leases	11 years 4 months 24 days
Finance leases	10 months 24 days
Weighted-average discount rate
Operating leases	6.10%
Finance leases	4.80%

LEASES - Other Information (Details) $ in Millions	6 Months Ended
LEASES - Other Information (Details) $ in Millions	Jun. 30, 2019 USD ($)
Leases [Abstract]
Operating cash flows for finance leases	$ 0
Operating cash flows for operating leases	17
Financing cash flows for finance leases	2
Total	$ 19

SECURITIZED DEBT - Vacation Ownership Notes Receivable Securitizations (Details) - USD ($)	Jun. 30, 2019	Dec. 31, 2018
Debt Instrument [Line Items]
Securitized debt, net	$ 1,792,000,000	$ 1,714,000,000
Secured Debt, Net	1,792,000,000	1,714,000,000
Debt \| Warehouse Credit Facility
Debt Instrument [Line Items]
Unamortized debt issuance costs	1,000,000
Debt \| Other
Debt Instrument [Line Items]
Secured Debt, Net	20,000,000	20,000,000
Variable Interest Entity
Debt Instrument [Line Items]
Securitized debt, net	1,787,000,000	1,706,000,000
Variable Interest Entity \| Debt
Debt Instrument [Line Items]
Securitized debt, net	1,787,000,000	1,590,000,000
Unamortized debt discount and issuance costs	(15,000,000)	(11,000,000)
Secured Debt, Net	$ 1,772,000,000	1,579,000,000
Debt, weighted average interest rate	2.90%
Variable Interest Entity \| Debt \| Minimum
Debt Instrument [Line Items]
Debt, stated interest rate	2.20%
Variable Interest Entity \| Debt \| Maximum
Debt Instrument [Line Items]
Debt, stated interest rate	6.30%
Variable Interest Entity \| Debt \| Warehouse Credit Facility
Debt Instrument [Line Items]
Securitized debt, net	$ 0	116,000,000
Unamortized debt issuance costs	0	1,000,000
Secured Debt, Net	$ 0	$ 115,000,000

SECURITIZED DEBT - Narrative (Details)			1 Months Ended	3 Months Ended
SECURITIZED DEBT - Narrative (Details)	Jul. 12, 2019 USD ($)	May 23, 2019 USD ($)	Jun. 30, 2019 USD ($) Loan	Jun. 30, 2019 USD ($) Loan	Mar. 31, 2019 USD ($)	Dec. 31, 2018 USD ($)
Debt Instrument [Line Items]
Values of vacation ownership notes receivable that were purchased by trust during the period		$ (459,000,000)	$ (85,000,000)
Restricted cash			$ 337,000,000	$ 337,000,000		$ 383,000,000
Number of notes receivable pools under performance triggers \| Loan				0
Number of notes receivable pools out of compliance \| Loan			0	0
Number of notes receivable pools outstanding \| Loan			12	12
Securitized debt, net			$ 1,792,000,000	$ 1,792,000,000		1,714,000,000
Warehouse Credit Facility
Debt Instrument [Line Items]
Proceeds from vacation ownership notes receivable securitizations					$ 124,000,000
Values of vacation ownership notes receivable that were securitized during the period					$ 146,000,000
Advance rate for securitization					85.00%
Cash flows between transferee and transferor proceeds					$ 123,000,000
Cash flows between transferee and transfer or funding of restricted cash					$ (1,000,000)
Warehouse Credit Facility
Debt Instrument [Line Items]
Credit facility			250,000,000	250,000,000
Variable Interest Entity, Not Primary Beneficiary \| MVW 2019-1 LLC
Debt Instrument [Line Items]
Values of vacation ownership notes receivable that were purchased by trust during the period		(367,000,000)
Variable Interest Entity
Debt Instrument [Line Items]
Restricted cash			80,000,000	80,000,000		69,000,000
Securitized debt, net			$ 1,787,000,000	1,787,000,000		1,706,000,000
Variable Interest Entity \| MVW 2019-1 LLC
Debt Instrument [Line Items]
Cash flows between transferee and transfer or funding of restricted cash				$ 84,000,000
Secured Debt [Member] \| MVW 2019-1 LLC
Debt Instrument [Line Items]
Proceeds from vacation ownership notes receivable securitizations		$ 450,000,000
Debt, stated interest rate			2.94%	2.94%
Secured Debt [Member] \| MVW 2019-1 LLC \| Class A Notes
Debt Instrument [Line Items]
Principal amount			$ 350,000,000	$ 350,000,000
Debt, stated interest rate			2.89%	2.89%
Secured Debt [Member] \| MVW 2019-1 LLC \| Class B Notes
Debt Instrument [Line Items]
Principal amount			$ 67,000,000	$ 67,000,000
Debt, stated interest rate			3.00%	3.00%
Secured Debt [Member] \| MVW 2019-1 LLC \| Class C Notes
Debt Instrument [Line Items]
Principal amount			$ 33,000,000	$ 33,000,000
Debt, stated interest rate			3.33%	3.33%
Secured Debt [Member] \| Variable Interest Entity
Debt Instrument [Line Items]
Securitized debt, net			$ 1,787,000,000	$ 1,787,000,000		1,590,000,000
Secured Debt [Member] \| Variable Interest Entity \| Warehouse Credit Facility
Debt Instrument [Line Items]
Securitized debt, net			0	0		$ 116,000,000
Subsequent Event \| MVW 2019-1 LLC
Debt Instrument [Line Items]
Values of vacation ownership notes receivable that were purchased by trust during the period	$ (7,000,000)
Decrease in restricted cash	$ (6,000,000)
Restricted cash \| Variable Interest Entity \| MVW 2019-1 LLC
Debt Instrument [Line Items]
Restricted cash			$ 6,000,000	$ 6,000,000

SECURITIZED DEBT - Future Payments Vacation Ownership Notes Receivable Securitizations (Details) $ in Millions	Jun. 30, 2019 USD ($)
Debt Instrument [Line Items]
2020	$ 9
2021	9
2022	239
2023	319
Thereafter	1,605
Debt
Debt Instrument [Line Items]
2019, remaining	129
2020	227
2021	204
2022	194
2023	188
Thereafter	865
Net carrying amount of the liability component	1,807
Debt \| Other
Debt Instrument [Line Items]
2019, remaining	1
2020	2
2021	2
2022	3
2023	3
Thereafter	9
Net carrying amount of the liability component	20
Debt \| Variable Interest Entity
Debt Instrument [Line Items]
2019, remaining	128
2020	225
2021	202
2022	191
2023	185
Thereafter	856
Net carrying amount of the liability component	$ 1,787

DEBT - Debt Balances, Net of Unamortized Debt Issuance Costs (Details) - USD ($)	Jun. 30, 2019	Dec. 31, 2018
Debt Instrument [Line Items]
Debt, gross	$ 2,185,000,000
Net carrying amount of the liability component	2,157,000,000	$ 2,104,000,000
Finance lease liabilities	22,000,000
Carrying Amount
Debt Instrument [Line Items]
Net carrying amount of the liability component	2,157,000,000	2,104,000,000
Finance lease liabilities	23,000,000	17,000,000
Exchange Notes, net \| Senior Notes
Debt Instrument [Line Items]
Debt, gross	89,000,000
Exchange Notes, net \| Senior Notes \| Carrying Amount
Debt Instrument [Line Items]
Debt, gross	89,000,000	89,000,000
Unamortized debt issuance costs	(1,000,000)	(1,000,000)
Net carrying amount of the liability component	88,000,000	88,000,000
Senior Unsecured Notes \| Senior Notes
Debt Instrument [Line Items]
Debt, gross	750,000,000
Senior Unsecured Notes \| Senior Notes \| Carrying Amount
Debt Instrument [Line Items]
Debt, gross	750,000,000	750,000,000
Unamortized debt issuance costs	(8,000,000)	(9,000,000)
Net carrying amount of the liability component	742,000,000	741,000,000
IAC Notes
Debt Instrument [Line Items]
Net carrying amount of the liability component		2,104,000,000
IAC Notes \| Senior Notes
Debt Instrument [Line Items]
Debt, gross	141,000,000
IAC Notes \| Senior Notes \| Carrying Amount
Debt Instrument [Line Items]
Debt, gross	141,000,000	141,000,000
Revolving Corporate Credit Facility, net
Debt Instrument [Line Items]
Debt, gross	80,000,000
Convertible Notes \| Convertible Debt
Debt Instrument [Line Items]
Debt, gross	230,000,000	230,000,000
Unamortized debt issuance costs	(4,000,000)	(5,000,000)
Unamortized discount	(23,000,000)	(26,000,000)
Net carrying amount of the liability component	203,000,000	199,000,000
Convertible Notes \| Convertible Debt \| Carrying Amount
Debt Instrument [Line Items]
Debt, gross	230,000,000	230,000,000
Unamortized debt discount and issuance costs	(27,000,000)	(31,000,000)
Net carrying amount of the liability component	203,000,000	199,000,000
Non-Interest Bearing Note Payable \| Non-interest bearing note payable, net \| Carrying Amount
Debt Instrument [Line Items]
Debt, gross	0	31,000,000
Unamortized discount	0	(1,000,000)
Net carrying amount of the liability component	0	30,000,000
Corporate Credit Facility \| Term Loan
Debt Instrument [Line Items]
Debt, gross	895,000,000	900,000,000
Unamortized debt discount and issuance costs	(11,000,000)	(12,000,000)
Net carrying amount of the liability component	884,000,000	888,000,000
Corporate Credit Facility \| Revolving Corporate Credit Facility, net
Debt Instrument [Line Items]
Debt, gross	80,000,000	0
Unamortized debt issuance costs	(4,000,000)	0
Net carrying amount of the liability component	$ 76,000,000	0
Debt issuance costs		4,000,000
Credit facility, amount outstanding		$ 0

DEBT - Scheduled Future Principal Payments for Debt (Details) - USD ($) $ in Millions	Jun. 30, 2019	Dec. 31, 2018
Long Term Debt Maturities Repayments Of Principal [Line Items]
2019, remaining	$ 4
2020	9
2021	9
2022	239
2023	319
Thereafter	1,605
Total principal payments	2,185
Revolving Corporate Credit Facility, net
Long Term Debt Maturities Repayments Of Principal [Line Items]
2019, remaining	0
2020	0
2021	0
2022	0
2023	80
Thereafter	0
Total principal payments	80
Senior Notes \| Exchange Notes, net
Long Term Debt Maturities Repayments Of Principal [Line Items]
2019, remaining	0
2020	0
2021	0
2022	0
2023	89
Thereafter	0
Total principal payments	89
Senior Notes \| Senior Unsecured Notes
Long Term Debt Maturities Repayments Of Principal [Line Items]
2019, remaining	0
2020	0
2021	0
2022	0
2023	0
Thereafter	750
Total principal payments	750
Senior Notes \| IAC Notes
Long Term Debt Maturities Repayments Of Principal [Line Items]
2019, remaining	0
2020	0
2021	0
2022	0
2023	141
Thereafter	0
Total principal payments	141
Convertible Debt \| Convertible Notes
Long Term Debt Maturities Repayments Of Principal [Line Items]
2019, remaining	0
2020	0
2021	0
2022	230
2023	0
Thereafter	0
Total principal payments	230	$ 230
Corporate Credit Facility \| Term Loan
Long Term Debt Maturities Repayments Of Principal [Line Items]
2019, remaining	4
2020	9
2021	9
2022	9
2023	9
Thereafter	855
Total principal payments	895	900
Corporate Credit Facility \| Revolving Corporate Credit Facility, net
Long Term Debt Maturities Repayments Of Principal [Line Items]
Total principal payments	$ 80	$ 0

DEBT - Additional Information (Details)				3 Months Ended			6 Months Ended
DEBT - Additional Information (Details)	Jun. 30, 2019 USD ($) $ / shares shares	May 09, 2019 $ / shares	Feb. 15, 2019 $ / shares	Jun. 30, 2019 USD ($) $ / shares shares	Mar. 31, 2019	Jun. 30, 2018 $ / shares	Jun. 30, 2019 USD ($) $ / shares shares	Jun. 30, 2018 $ / shares	Dec. 31, 2018 $ / shares	Mar. 31, 2018 shares
Debt Disclosure [Line Items]
Reclassification to Income Statement (less than)				$ 1,000,000
Dividend per share (in usd per share) \| $ / shares		$ 0.45	$ 0.45	$ 0.45		$ 0.40	$ 0.90	$ 0.80
Debt instrument, convertible, remaining discount amortization period	3 years 2 months 12 days
IAC Notes \| Senior Notes
Debt Disclosure [Line Items]
Principal amount	$ 350,000,000			$ 350,000,000			$ 350,000,000
Debt, stated interest rate	5.625%			5.625%			5.625%
Exchange Notes, net \| Senior Notes
Debt Disclosure [Line Items]
Debt, stated interest rate	5.625%			5.625%			5.625%
Senior Unsecured Notes \| Senior Notes
Debt Disclosure [Line Items]
Principal amount	$ 750,000,000			$ 750,000,000			$ 750,000,000
Debt, stated interest rate	6.50%			6.50%			6.50%
Convertible Notes \| Convertible Debt
Debt Disclosure [Line Items]
Principal amount	$ 230,000,000			$ 230,000,000			$ 230,000,000
Debt, stated interest rate	1.50%			1.50%			1.50%
Conversion ratio				0.0000067825	0.0000067482
Debt instrument, convertible, conversion price (in usd per share) \| $ / shares	$ 147.44			$ 147.44			$ 147.44		$ 148.19
Interest rate, effective percentage	4.70%			4.70%			4.70%
Term Loan \| Corporate Credit Facility
Debt Disclosure [Line Items]
Credit facility	$ 900,000,000			$ 900,000,000			$ 900,000,000
Revolving corporate credit facility, net \| Corporate Credit Facility
Debt Disclosure [Line Items]
Credit facility	600,000,000			600,000,000			600,000,000
Revolving corporate credit facility, net \| Letter of Credit \| Corporate Credit Facility
Debt Disclosure [Line Items]
Credit facility	$ 75,000,000			$ 75,000,000			$ 75,000,000
Convertible Note Hedges
Debt Disclosure [Line Items]
Option indexed to issuer's equity, indexed shares (in shares) \| shares										1,550,000
Convertible note hedges exercised (in shares) \| shares	0			0			0
Private Warrants
Debt Disclosure [Line Items]
Number of securities called by warrants (in shares) \| shares										1,550,000
Number of warrants exercised (in shares) \| shares	0			0			0
Exercise price of warrants (in usd per share) \| $ / shares	$ 175.79			$ 175.79			$ 175.79		$ 176.68
Minimum \| Revolving corporate credit facility, net \| Corporate Credit Facility
Debt Disclosure [Line Items]
Basis spread on variable rate							0.50%
Commitment fee percentage							0.20%
Maximum \| Revolving corporate credit facility, net \| Corporate Credit Facility
Debt Disclosure [Line Items]
Basis spread on variable rate							2.75%
Commitment fee percentage							0.40%
London Interbank Offered Rate (LIBOR) \| Term Loan \| Corporate Credit Facility
Debt Disclosure [Line Items]
Basis spread on variable rate							2.25%
Interest Rate Swap, September 2023
Debt Disclosure [Line Items]
Derivative, notional amount	$ 250,000,000			$ 250,000,000			$ 250,000,000
Derivative, fixed interest rate	2.9625%			2.9625%			2.9625%
Interest Rate Swap, April 2024
Debt Disclosure [Line Items]
Derivative, notional amount	$ 200,000,000			$ 200,000,000			$ 200,000,000
Derivative, fixed interest rate	2.248%			2.248%			2.248%
Interest Rate Contract
Debt Disclosure [Line Items]
Derivative, notional amount	$ 100,000,000			$ 100,000,000			$ 100,000,000
Cap strike rate	2.50%			2.50%			2.50%
Floor strike rate	1.881%			1.881%			1.881%

DEBT - Net Carrying Value Of The Convertible Notes (Details) - USD ($) $ in Millions	Jun. 30, 2019	Dec. 31, 2018
Debt Instrument [Line Items]
Principal amount	$ 2,185
Net carrying amount of the liability component	2,157	$ 2,104
Convertible Debt \| Convertible Notes
Debt Instrument [Line Items]
Principal amount	230	230
Unamortized debt discount	(23)	(26)
Unamortized debt issuance costs	(4)	(5)
Net carrying amount of the liability component	203	199
Carrying amount of equity component, net of issuance costs	$ 33	$ 33

DEBT - Interest Expense Related To The Convertible Notes (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Debt Instrument [Line Items]
Interest Expense, Debt	$ 35	$ 5	$ 69	$ 9
Convertible Debt \| Convertible Notes
Debt Instrument [Line Items]
Contractual interest expense	0	1	1	2
Amortization of debt discount	1	2	3	3
Amortization of debt issuance costs	1	0	1	0
Interest Expense, Debt	$ 2	$ 3	$ 5	$ 5

DEBT - Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions	3 Months Ended
	Jun. 30, 2019	Mar. 31, 2019
Derivative Instrument Adjustments
Beginning balance		$ 3,461
Ending balance	$ 3,264
Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent
Derivative Instrument Adjustments
Beginning balance	(9)	(6)
Other comprehensive loss before reclassifications	(13)	(3)
Reclassification to Income Statement	0	0
Net other comprehensive loss	(13)	(3)
Ending balance	$ (22)	$ (9)

SHAREHOLDERS' EQUITY - Additional Information (Details) - USD ($) $ / shares in Units, $ in Millions	Aug. 01, 2019	Jun. 30, 2019	Mar. 31, 2019	Jan. 01, 2019	Dec. 31, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017
Stockholders Equity Note [Line Items]
Common stock, shares authorized (in shares)		100,000,000			100,000,000
Common stock, par (in dollars per share)		$ 0.01			$ 0.01
Common stock, shares issued (in shares)		57,862,278	57,800,000	57,600,000	57,626,462	37,000,000.0	37,000,000.0	36,900,000
Common stock, shares outstanding (in shares)		43,882,669			45,992,731
Treasury stock, shares (in shares)		13,979,609			11,633,731
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 common stock authorized to be repurchased (in shares)		14,900,000
Shares remained available for repurchase under the program (in shares)		600,000
Noncontrolling interests		$ 6			$ 5
Property Owners Associations
Stockholders Equity Note [Line Items]
Noncontrolling interests		$ 10
Subsequent Event
Stockholders Equity Note [Line Items]
Number of additional shares authorized to be repurchased (in shares)	4,500,000

SHAREHOLDERS' EQUITY - Summary of Stock Repurchase Activity (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended			6 Months Ended
	Jun. 30, 2019	Mar. 31, 2019	Mar. 31, 2018	Jun. 30, 2019
Stock Repurchase [Roll Forward]
Number of Shares Repurchased (in shares)		11,633,731		11,633,731
Repurchase of common stock (in shares)	0	0	0
Cost of Shares Repurchased	$ 109	$ 106	$ 2
Number of Shares Repurchased (in shares)	13,979,609			13,979,609
Treasury Stock
Stock Repurchase [Roll Forward]
Number of Shares Repurchased (in shares)		11,687,774		11,687,774
Cost of Shares Repurchased		$ 793		$ 793
Average Price Paid per Share (in usd per share)		$ 67.85		$ 67.85
Repurchase of common stock (in shares)				2,358,808
Cost of Shares Repurchased	$ 109	$ 106	$ 2	$ 215
Average Price Paid per Share (in usd per share)				$ 91.12
Number of Shares Repurchased (in shares)	14,046,582			14,046,582
Cost of Shares Repurchased	$ 1,008			$ 1,008
Average Price Paid per Share (in usd per share)	$ 71.76			$ 71.76

SHAREHOLDERS' EQUITY - Cash Dividend Declared (Details) - $ / shares			3 Months Ended		6 Months Ended
	May 09, 2019	Feb. 15, 2019	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Equity [Abstract]
Dividend per share (in usd per share)	$ 0.45	$ 0.45	$ 0.45	$ 0.40	$ 0.90	$ 0.80

SHARE-BASED COMPENSATION - Additional Information (Details)		3 Months Ended		6 Months Ended
	Sep. 01, 2018 USD ($) $ / shares shares	Jun. 30, 2019 USD ($) $ / shares shares	Jun. 30, 2018 USD ($)	Jun. 30, 2019 USD ($) $ / shares shares	Jun. 30, 2018 USD ($)	Dec. 31, 2018 USD ($)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense		$ 11,000,000	$ 6,000,000	$ 20,000,000	$ 10,000,000
Payroll and benefits liability		$ 172,000,000		$ 172,000,000		$ 211,000,000
Stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares authorized for issuance under the plan (in shares) \| shares		6,000,000		6,000,000
Shares available for grants under the plan (in shares) \| shares		1,000,000		1,000,000
Share-based compensation expense		$ 0	0	$ 0	0
Restricted stock units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense		10,000,000	6,000,000	$ 18,000,000	9,000,000
Restricted stock units \| Employees and Non Employee Directors
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock awards, grants in period (in shares) \| shares				189,300
Stock awards granted, weighted average (in usd per share) grant date fair value \| $ / shares				$ 96.25
Performance-based RSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Maximum amount of RSU subject to vesting (in shares) \| shares				287,876
Share-based compensation expense		2,000,000	2,000,000	$ 3,000,000	3,000,000
SARs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock awards, grants in period (in shares) \| shares				111,111
Stock awards granted, weighted average (in usd per share) grant date fair value \| $ / shares				$ 28.89
Stock awards granted, weighted average (in usd per share) exercise date fair value \| $ / shares				$ 100.52
Share-based compensation expense		$ 1,000,000	$ 0	$ 2,000,000	$ 1,000,000
ILG
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		$ 119.00
Legacy-ILG
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Payroll and benefits liability		$ 0		$ 0
Legacy-ILG \| Restricted stock units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares available for grants under the plan (in shares) \| shares		1,000,000		1,000,000
Legacy-ILG \| Deferred Share Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted average grant date fair value (in usd per share) \| $ / shares	$ 114.31
Equity instruments other than options (in shares) \| shares	12,265
Legacy-ILG \| Cash-Based Award
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense	$ 1,000,000
ILG \| ILG
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	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense	$ 11	$ 6	$ 20	$ 10
Service-based RSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense	6	4	9	6
Performance-based RSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense	2	2	3	3
ILG Acquisition Converted RSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense	2	0	6	0
Restricted stock units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense	10	6	18	9
SARs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense	1	0	2	1
Stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense	$ 0	$ 0	$ 0	$ 0

SHARE-BASED COMPENSATION - Deferred Compensation Costs (Details) - USD ($) $ in Millions	Jun. 30, 2019	Dec. 31, 2018
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Deferred compensation costs related to unvested awards	$ 51	$ 39
Service-based RSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Deferred compensation costs related to unvested awards	25	16
Performance-based RSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Deferred compensation costs related to unvested awards	16	7
ILG Acquisition Converted RSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Deferred compensation costs related to unvested awards	7	15
Restricted stock units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Deferred compensation costs related to unvested awards	48	38
SARs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Deferred compensation costs related to unvested awards	3	1
Stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Deferred compensation costs related to unvested awards	$ 0	$ 0

SHARE-BASED COMPENSATION - Assumptions Used to Estimate Fair Value of Grants (Details)	6 Months Ended
	Jun. 30, 2019
Share-based Payment Arrangement [Abstract]
Expected volatility	31.10%
Dividend yield	1.76%
Risk-free rate	2.59%
Expected term (in years)	6 years 3 months

VARIABLE INTEREST ENTITIES - Classifications of Consolidated VIE Assets and Liabilities (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018	Dec. 31, 2018
Variable Interest Entity [Line Items]
VIE Assets	$ 1,773		$ 1,773
VIE Liabilities	1,790		1,790
Restricted cash	337		337		$ 383
ILG acquisition-related costs	(36)	$ (19)	(62)	$ (20)
Debt
Variable Interest Entity [Line Items]
VIE Liabilities	1,787		1,787
Vacation ownership notes receivable, net of reserves
Variable Interest Entity [Line Items]
VIE Assets	1,681		1,681
Interest receivable
Variable Interest Entity [Line Items]
VIE Assets	12		12
Restricted cash
Variable Interest Entity [Line Items]
VIE Assets	80		80
Interest payable
Variable Interest Entity [Line Items]
VIE Liabilities	3		3
Vacation Ownership Notes Receivable Securitizations
Variable Interest Entity [Line Items]
VIE Assets	1,773		1,773
VIE Liabilities	1,790		1,790
Vacation Ownership Notes Receivable Securitizations \| Debt
Variable Interest Entity [Line Items]
VIE Liabilities	1,787		1,787
Vacation Ownership Notes Receivable Securitizations \| Vacation ownership notes receivable, net of reserves
Variable Interest Entity [Line Items]
VIE Assets	1,681		1,681
Vacation Ownership Notes Receivable Securitizations \| Interest receivable
Variable Interest Entity [Line Items]
VIE Assets	12		12
Vacation Ownership Notes Receivable Securitizations \| Restricted cash
Variable Interest Entity [Line Items]
VIE Assets	80		80
Vacation Ownership Notes Receivable Securitizations \| Interest payable
Variable Interest Entity [Line Items]
VIE Liabilities	3		3
Warehouse Credit Facility
Variable Interest Entity [Line Items]
VIE Assets	0		0
VIE Liabilities	0		0
Warehouse Credit Facility \| Debt
Variable Interest Entity [Line Items]
VIE Liabilities	0		0
Warehouse Credit Facility \| Vacation ownership notes receivable, net of reserves
Variable Interest Entity [Line Items]
VIE Assets	0		0
Warehouse Credit Facility \| Interest receivable
Variable Interest Entity [Line Items]
VIE Assets	0		0
Warehouse Credit Facility \| Restricted cash
Variable Interest Entity [Line Items]
VIE Assets	0		0
Warehouse Credit Facility \| Interest payable
Variable Interest Entity [Line Items]
VIE Liabilities	0		0
Variable Interest Entity
Variable Interest Entity [Line Items]
Restricted cash	80		80		$ 69
MVW 2019-1 LLC \| Variable Interest Entity \| Restricted cash
Variable Interest Entity [Line Items]
Restricted cash	$ 6		$ 6

VARIABLE INTEREST ENTITIES - Interest Income and Expense Recognized as a Result of Our Involvement with Variable Interest Entities (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Variable Interest Entity [Line Items]
Interest income	$ 67	$ 34	$ 132	$ 68
Administrative expenses	79	$ 33	157	$ 61
Variable Interest Entity
Variable Interest Entity [Line Items]
Interest income	59		118
Interest expense to investors	14		29
Debt issuance cost amortization	2		3
Administrative expenses	1		1
Variable Interest Entity \| Vacation Ownership Notes Receivable Securitizations
Variable Interest Entity [Line Items]
Interest income	55		107
Interest expense to investors	13		26
Debt issuance cost amortization	1		2
Administrative expenses	1		1
Variable Interest Entity \| Warehouse Credit Facility
Variable Interest Entity [Line Items]
Interest income	4		11
Interest expense to investors	1		3
Debt issuance cost amortization	1		1
Administrative expenses	$ 0		$ 0

VARIABLE INTEREST ENTITIES - Cash Flows Between Company and Variable Interest Entities (Details) - USD ($) $ in Millions		3 Months Ended		6 Months Ended
	Jul. 12, 2019	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Vacation Ownership Notes Receivable Securitizations
Cash Inflows
Net proceeds from vacation ownership notes receivable securitizations				$ 445	$ 419
Principal receipts				237	127
Interest receipts				101	52
Reserve release				99	1
Total				882	599
Cash Outflows
Principal to investors				(233)	(117)
Voluntary repurchases of defaulted vacation ownership notes receivable				(23)	(15)
Voluntary clean-up call				0	(22)
Interest to investors				(22)	(10)
Funding of restricted cash				(93)	(110)
Total				(371)	(274)
Net Cash Flows				511	325
Warehouse Credit Facility
Cash Inflows
Net proceeds from vacation ownership notes receivable securitizations				124	0
Principal receipts				12	0
Interest receipts				12	0
Reserve release				2	0
Total				150	0
Cash Outflows
Principal to investors				(12)	0
Repayment of Warehouse Credit Facility				(228)	0
Interest to investors				(4)	(1)
Funding of restricted cash				(1)	0
Total				(245)	(1)
Net Cash Flows				$ (95)	$ (1)
2018-01 Trust
Cash Outflows
Funding of restricted cash			$ 106
Variable Interest Entity \| MVW 2019-1 LLC
Cash Inflows
Reserve release		$ 90
Cash Outflows
Funding of restricted cash		$ 84
Subsequent Event \| MVW 2019-1 LLC
Cash Outflows
Decrease in restricted cash	$ 6

VARIABLE INTEREST ENTITIES - Additional Information (Details) - USD ($) $ in Millions	Jun. 30, 2019	Dec. 31, 2018
Variable Interest Entity [Line Items]
Finance lease assets	$ 22
Accrued liabilities	417	$ 357
Finance lease liabilities	22
Variable Interest Entity, Not Primary Beneficiary \| San Francisco, California
Variable Interest Entity [Line Items]
Finance lease assets	14
Accrued liabilities	1
Finance lease liabilities	9
Note receivable (less than)	1
Maximum loss (less than)	5
Variable Interest Entity, Not Primary Beneficiary \| New York City, New York
Variable Interest Entity [Line Items]
Finance lease assets	8
Accrued liabilities	1
Finance lease liabilities	7
Note receivable (less than)	1
Maximum loss (less than)	1
Variable Interest Entity
Variable Interest Entity [Line Items]
Accrued liabilities	3	$ 2
Cash surrender value of life insurance	$ 34

BUSINESS SEGMENTS - Additional Information (Details)	3 Months Ended		6 Months Ended
BUSINESS SEGMENTS - Additional Information (Details)	Jun. 30, 2019 brand	Jun. 30, 2018	Jun. 30, 2019 brand Segment	Jun. 30, 2018
Segment Reporting Information [Line Items]
Number of reportable business segments \| Segment			2
Vacation Ownership
Segment Reporting Information [Line Items]
Number of vacation ownership brands \| brand	7		7
Geographic Concentration Risk \| Sales Revenue, Net \| Non-US
Segment Reporting Information [Line Items]
Concentration risk, percentage	13.00%	12.00%	14.00%	12.00%

BUSINESS SEGMENTS - Revenues (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Segment Reporting, Asset Reconciling Item [Line Items]
Revenues	$ 1,068	$ 595	$ 2,128	$ 1,166
Vacation Ownership
Segment Reporting, Asset Reconciling Item [Line Items]
Revenues	951	595	1,882	1,166
Exchange & Third-Party Management
Segment Reporting, Asset Reconciling Item [Line Items]
Revenues	115	0	239	0
Operating Segments
Segment Reporting, Asset Reconciling Item [Line Items]
Revenues	1,066	595	2,121	1,166
Operating Segments \| Vacation Ownership
Segment Reporting, Asset Reconciling Item [Line Items]
Revenues	951	595	1,882	1,166
Operating Segments \| Exchange & Third-Party Management
Segment Reporting, Asset Reconciling Item [Line Items]
Revenues	115	0	239	0
Corporate and other
Segment Reporting, Asset Reconciling Item [Line Items]
Revenues	$ 2	$ 0	$ 7	$ 0

BUSINESS SEGMENTS - Adjusted EBITDA (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Segment Reporting Information [Line Items]
Corporate and other	$ (71)	$ (28)	$ (142)	$ (53)
Interest expense	(35)	(5)	(69)	(9)
Provision for income taxes	(25)	(6)	(40)	(17)
Depreciation and amortization	(36)	(5)	(73)	(11)
Share-based compensation expense	(11)	(6)	(20)	(10)
Certain items	(39)	(43)	(86)	(45)
Net income attributable to common shareholders	49	11	73	47
Vacation Ownership
Segment Reporting Information [Line Items]
Adjusted Earnings Before Income Taxes Depreciation And Amortization	208	104	379	192
Exchange & Third-Party Management
Segment Reporting Information [Line Items]
Adjusted Earnings Before Income Taxes Depreciation And Amortization	$ 58	$ 0	$ 124	$ 0

BUSINESS SEGMENTS - Assets (Details) - USD ($) $ in Millions	Jun. 30, 2019	Dec. 31, 2018
Segment Reporting Information [Line Items]
Total Assets	$ 9,023	$ 9,018
Operating Segments
Segment Reporting Information [Line Items]
Total Assets	8,482	8,457
Operating Segments \| Vacation Ownership
Segment Reporting Information [Line Items]
Total Assets	7,358	7,275
Operating Segments \| Exchange & Third-Party Management
Segment Reporting Information [Line Items]
Total Assets	1,124	1,182
Corporate and other
Segment Reporting Information [Line Items]
Total Assets	$ 541	$ 561

SUPPLEMENTAL GUARANTOR INFORMATION - Balance Sheet (Details) - USD ($) $ in Millions	Jun. 30, 2019	Dec. 31, 2018
Condensed Financial Statements, Captions [Line Items]
Cash and cash equivalents	$ 179	$ 231
Restricted cash	337	383
Accounts receivable, net	327	324
Vacation ownership notes receivable, net	2,098	2,039
Inventory	888	863
Property and equipment	837	951
Goodwill	2,824	2,828
Intangibles, net	1,075	1,107
Due from parent	0	0
Investments in subsidiaries	0	0
Other	458	292
TOTAL ASSETS	9,023	9,018
Accounts payable	164	253
Contract Liabilities	542	490
Accrued liabilities	417	357
Payroll and benefits liability	172	211
Deferred compensation liability	102	93
Securitized debt, net	1,792	1,714
Debt, net	2,157	2,104
Due to subsidiary	0	0
Other	64	12
Deferred taxes	343	318
MVW shareholders' equity	3,264	3,461
Noncontrolling interests	6	5
TOTAL LIABILITIES AND EQUITY	9,023	9,018
Advance deposits
Condensed Financial Statements, Captions [Line Items]
Contract Liabilities	186	171
Deferred revenue
Condensed Financial Statements, Captions [Line Items]
Contract Liabilities	356	319
MVWC \| Reportable Legal Entities
Condensed Financial Statements, Captions [Line Items]
Cash and cash equivalents	0	1
Restricted cash	0	0
Accounts receivable, net	67	31
Vacation ownership notes receivable, net	0	0
Inventory	0	0
Property and equipment	0	0
Goodwill	2,824	2,828
Intangibles, net	0	0
Due from parent	0	0
Investments in subsidiaries	2,520	2,681
Other	35	27
TOTAL ASSETS	5,446	5,568
Accounts payable	12	50
Accrued liabilities	5	7
Payroll and benefits liability	3	15
Deferred compensation liability	0	0
Securitized debt, net	0	0
Debt, net	203	199
Due to subsidiary	1,957	1,834
Other	2	2
Deferred taxes	0	0
MVW shareholders' equity	3,264	3,461
Noncontrolling interests	0	0
TOTAL LIABILITIES AND EQUITY	5,446	5,568
MVWC \| Reportable Legal Entities \| Advance deposits
Condensed Financial Statements, Captions [Line Items]
Contract Liabilities	0	0
MVWC \| Reportable Legal Entities \| Deferred revenue
Condensed Financial Statements, Captions [Line Items]
Contract Liabilities	0	0
IAC Notes
Condensed Financial Statements, Captions [Line Items]
Accounts payable		253
Accrued liabilities		357
Payroll and benefits liability		211
Deferred compensation liability		93
Securitized debt, net		1,714
Debt, net		2,104
Other		12
Deferred taxes		318
MVW shareholders' equity		3,461
Noncontrolling interests		5
TOTAL LIABILITIES AND EQUITY		9,018
IAC Notes \| Advance deposits
Condensed Financial Statements, Captions [Line Items]
Contract Liabilities		171
IAC Notes \| Deferred revenue
Condensed Financial Statements, Captions [Line Items]
Contract Liabilities		319
IAC Notes \| Total Eliminations
Condensed Financial Statements, Captions [Line Items]
Cash and cash equivalents	0	0
Restricted cash	0	0
Accounts receivable, net	(4)	0
Vacation ownership notes receivable, net	0	0
Inventory	0	0
Property and equipment	0	0
Goodwill	0	0
Intangibles, net	0	0
Due from parent	(1,957)	(1,834)
Investments in subsidiaries	(6,290)	(6,531)
Other	(68)	(75)
TOTAL ASSETS	(8,319)	(8,440)
Accounts payable	7	0
Accrued liabilities	(32)	(24)
Payroll and benefits liability	0	0
Deferred compensation liability	0	0
Securitized debt, net	0	0
Debt, net	0	0
Due to subsidiary	(1,957)	(1,834)
Other	0	0
Deferred taxes	0	4
MVW shareholders' equity	(6,333)	(6,582)
Noncontrolling interests	0	0
TOTAL LIABILITIES AND EQUITY	(8,319)	(8,440)
IAC Notes \| Total Eliminations \| Advance deposits
Condensed Financial Statements, Captions [Line Items]
Contract Liabilities	0	0
IAC Notes \| Total Eliminations \| Deferred revenue
Condensed Financial Statements, Captions [Line Items]
Contract Liabilities	(4)	(4)
IAC Notes \| MVWC \| Reportable Legal Entities
Condensed Financial Statements, Captions [Line Items]
Accounts payable		50
Accrued liabilities		7
Payroll and benefits liability		15
Deferred compensation liability		0
Securitized debt, net		0
Debt, net		199
Other		2
Deferred taxes		0
MVW shareholders' equity		3,461
Noncontrolling interests		0
TOTAL LIABILITIES AND EQUITY		5,568
IAC Notes \| MVWC \| Reportable Legal Entities \| Advance deposits
Condensed Financial Statements, Captions [Line Items]
Contract Liabilities		0
IAC Notes \| MVWC \| Reportable Legal Entities \| Deferred revenue
Condensed Financial Statements, Captions [Line Items]
Contract Liabilities		0
IAC Notes \| Issuers \| Reportable Legal Entities
Condensed Financial Statements, Captions [Line Items]
Cash and cash equivalents	1	11
Restricted cash	0	0
Accounts receivable, net	2	2
Vacation ownership notes receivable, net	0	0
Inventory	0	0
Property and equipment	0	0
Goodwill	0	0
Intangibles, net	0	0
Due from parent	0	0
Investments in subsidiaries	1,942	1,975
Other	27	28
TOTAL ASSETS	1,972	2,016
Accounts payable	0	0
Accrued liabilities	0	0
Payroll and benefits liability	0	0
Deferred compensation liability	0	0
Securitized debt, net	0	0
Debt, net	141	141
Due to subsidiary	0	0
Other	0	0
Deferred taxes	0	0
MVW shareholders' equity	1,831	1,875
Noncontrolling interests	0	0
TOTAL LIABILITIES AND EQUITY	1,972	2,016
IAC Notes \| Issuers \| Reportable Legal Entities \| Advance deposits
Condensed Financial Statements, Captions [Line Items]
Contract Liabilities	0	0
IAC Notes \| Issuers \| Reportable Legal Entities \| Deferred revenue
Condensed Financial Statements, Captions [Line Items]
Contract Liabilities	0	0
IAC Notes \| Guarantors \| Reportable Legal Entities
Condensed Financial Statements, Captions [Line Items]
Cash and cash equivalents	27	28
Restricted cash	52	83
Accounts receivable, net	115	107
Vacation ownership notes receivable, net	189	176
Inventory	449	440
Property and equipment	230	272
Goodwill	0	0
Intangibles, net	1,034	1,065
Due from parent	0	0
Investments in subsidiaries	1,828	1,875
Other	245	140
TOTAL ASSETS	4,169	4,186
Accounts payable	40	72
Accrued liabilities	170	79
Payroll and benefits liability	67	77
Deferred compensation liability	7	7
Securitized debt, net	0	0
Debt, net	1	1
Due to subsidiary	0	0
Other	38	1
Deferred taxes	179	155
MVW shareholders' equity	3,445	3,599
Noncontrolling interests	(4)	(3)
TOTAL LIABILITIES AND EQUITY	4,169	4,186
IAC Notes \| Guarantors \| Reportable Legal Entities \| Advance deposits
Condensed Financial Statements, Captions [Line Items]
Contract Liabilities	81	81
IAC Notes \| Guarantors \| Reportable Legal Entities \| Deferred revenue
Condensed Financial Statements, Captions [Line Items]
Contract Liabilities	145	117
IAC Notes \| Non-Guarantor Subsidiaries \| Reportable Legal Entities
Condensed Financial Statements, Captions [Line Items]
Cash and cash equivalents	151	191
Restricted cash	285	300
Accounts receivable, net	147	184
Vacation ownership notes receivable, net	1,909	1,863
Inventory	439	423
Property and equipment	607	679
Goodwill	0	0
Intangibles, net	41	42
Due from parent	1,957	1,834
Investments in subsidiaries	0	0
Other	219	172
TOTAL ASSETS	5,755	5,688
Accounts payable	105	131
Accrued liabilities	274	295
Payroll and benefits liability	102	119
Deferred compensation liability	95	86
Securitized debt, net	1,792	1,714
Debt, net	1,812	1,763
Due to subsidiary	0	0
Other	24	9
Deferred taxes	164	159
MVW shareholders' equity	1,057	1,108
Noncontrolling interests	10	8
TOTAL LIABILITIES AND EQUITY	5,755	5,688
IAC Notes \| Non-Guarantor Subsidiaries \| Reportable Legal Entities \| Advance deposits
Condensed Financial Statements, Captions [Line Items]
Contract Liabilities	105	90
IAC Notes \| Non-Guarantor Subsidiaries \| Reportable Legal Entities \| Deferred revenue
Condensed Financial Statements, Captions [Line Items]
Contract Liabilities	215	206
Senior MVW Notes \| Total Eliminations
Condensed Financial Statements, Captions [Line Items]
Cash and cash equivalents	0	0
Restricted cash	0	0
Accounts receivable, net	(4)	0
Vacation ownership notes receivable, net	0	0
Inventory	0	0
Property and equipment	0	0
Goodwill	0	0
Intangibles, net	0	0
Due from parent	(1,957)	(1,834)
Investments in subsidiaries	(4,369)	(4,649)
Other	(68)	(75)
TOTAL ASSETS	(6,398)	(6,558)
Accounts payable	8	0
Accrued liabilities	(32)	(24)
Payroll and benefits liability	0	0
Deferred compensation liability	0	0
Securitized debt, net	0	0
Debt, net	0	0
Due to subsidiary	(1,957)	(1,834)
Other	0	0
Deferred taxes	0	4
MVW shareholders' equity	(4,413)	(4,700)
Noncontrolling interests	0	0
TOTAL LIABILITIES AND EQUITY	(6,398)	(6,558)
Senior MVW Notes \| Total Eliminations \| Advance deposits
Condensed Financial Statements, Captions [Line Items]
Contract Liabilities	0	0
Senior MVW Notes \| Total Eliminations \| Deferred revenue
Condensed Financial Statements, Captions [Line Items]
Contract Liabilities	(4)	(4)
Senior MVW Notes \| Guarantors \| Reportable Legal Entities
Condensed Financial Statements, Captions [Line Items]
Cash and cash equivalents	29	39
Restricted cash	54	122
Accounts receivable, net	131	169
Vacation ownership notes receivable, net	196	183
Inventory	489	475
Property and equipment	272	308
Goodwill	0	0
Intangibles, net	1,034	1,065
Due from parent	0	0
Investments in subsidiaries	0	0
Other	359	251
TOTAL ASSETS	2,564	2,612
Accounts payable	74	165
Accrued liabilities	177	121
Payroll and benefits liability	76	84
Deferred compensation liability	15	13
Securitized debt, net	0	0
Debt, net	149	179
Due to subsidiary	0	0
Other	38	1
Deferred taxes	181	157
MVW shareholders' equity	1,529	1,617
Noncontrolling interests	(4)	(3)
TOTAL LIABILITIES AND EQUITY	2,564	2,612
Senior MVW Notes \| Guarantors \| Reportable Legal Entities \| Advance deposits
Condensed Financial Statements, Captions [Line Items]
Contract Liabilities	90	89
Senior MVW Notes \| Guarantors \| Reportable Legal Entities \| Deferred revenue
Condensed Financial Statements, Captions [Line Items]
Contract Liabilities	239	189
Senior MVW Notes \| Non-Guarantor Subsidiaries \| Reportable Legal Entities
Condensed Financial Statements, Captions [Line Items]
Cash and cash equivalents	106	127
Restricted cash	263	242
Accounts receivable, net	105	104
Vacation ownership notes receivable, net	1,794	1,735
Inventory	95	176
Property and equipment	290	203
Goodwill	0	0
Intangibles, net	41	42
Due from parent	0	0
Investments in subsidiaries	0	0
Other	79	36
TOTAL ASSETS	2,773	2,665
Accounts payable	26	25
Accrued liabilities	189	150
Payroll and benefits liability	16	16
Deferred compensation liability	1	1
Securitized debt, net	1,792	1,714
Debt, net	0	0
Due to subsidiary	0	0
Other	2	3
Deferred taxes	24	24
MVW shareholders' equity	576	579
Noncontrolling interests	10	8
TOTAL LIABILITIES AND EQUITY	2,773	2,665
Senior MVW Notes \| Non-Guarantor Subsidiaries \| Reportable Legal Entities \| Advance deposits
Condensed Financial Statements, Captions [Line Items]
Contract Liabilities	20	17
Senior MVW Notes \| Non-Guarantor Subsidiaries \| Reportable Legal Entities \| Deferred revenue
Condensed Financial Statements, Captions [Line Items]
Contract Liabilities	117	128
Senior MVW Notes \| MORI \| Issuers \| Reportable Legal Entities
Condensed Financial Statements, Captions [Line Items]
Cash and cash equivalents	44	62
Restricted cash	20	19
Accounts receivable, net	28	20
Vacation ownership notes receivable, net	108	121
Inventory	304	212
Property and equipment	274	439
Goodwill	0	0
Intangibles, net	0	0
Due from parent	1,957	1,834
Investments in subsidiaries	21	93
Other	53	53
TOTAL ASSETS	2,809	2,853
Accounts payable	44	13
Accrued liabilities	71	96
Payroll and benefits liability	77	96
Deferred compensation liability	86	79
Securitized debt, net	0	0
Debt, net	1,805	1,726
Due to subsidiary	0	0
Other	22	6
Deferred taxes	138	133
MVW shareholders' equity	486	633
Noncontrolling interests	0	0
TOTAL LIABILITIES AND EQUITY	2,809	2,853
Senior MVW Notes \| MORI \| Issuers \| Reportable Legal Entities \| Advance deposits
Condensed Financial Statements, Captions [Line Items]
Contract Liabilities	76	65
Senior MVW Notes \| MORI \| Issuers \| Reportable Legal Entities \| Deferred revenue
Condensed Financial Statements, Captions [Line Items]
Contract Liabilities	4	6
Senior MVW Notes \| ILG \| Issuers \| Reportable Legal Entities
Condensed Financial Statements, Captions [Line Items]
Cash and cash equivalents	0	2
Restricted cash	0	0
Accounts receivable, net	0	0
Vacation ownership notes receivable, net	0	0
Inventory	0	0
Property and equipment	1	1
Goodwill	0	0
Intangibles, net	0	0
Due from parent	0	0
Investments in subsidiaries	1,828	1,875
Other	0	0
TOTAL ASSETS	1,829	1,878
Accounts payable	0	0
Accrued liabilities	7	7
Payroll and benefits liability	0	0
Deferred compensation liability	0	0
Securitized debt, net	0	0
Debt, net	0	0
Due to subsidiary	0	0
Other	0	0
Deferred taxes	0	0
MVW shareholders' equity	1,822	1,871
Noncontrolling interests	0	0
TOTAL LIABILITIES AND EQUITY	1,829	1,878
Senior MVW Notes \| ILG \| Issuers \| Reportable Legal Entities \| Advance deposits
Condensed Financial Statements, Captions [Line Items]
Contract Liabilities	0	0
Senior MVW Notes \| ILG \| Issuers \| Reportable Legal Entities \| Deferred revenue
Condensed Financial Statements, Captions [Line Items]
Contract Liabilities	$ 0	$ 0

SUPPLEMENTAL GUARANTOR INFORMATION - Income Statement (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Condensed Financial Statements, Captions [Line Items]
Revenues	$ 1,068	$ 595	$ 2,128	$ 1,166
Expenses	(925)	(546)	(1,894)	(1,064)
Gains (losses) and other income (expense), net	2	(7)	10	(6)
Interest expense	(35)	(5)	(69)	(9)
ILG acquisition-related costs	(36)	(19)	(62)	(20)
Other	0	(1)	0	(3)
Provision for income taxes	(25)	(6)	(40)	(17)
Equity in Earnings (Losses) From Unconsolidated Subsidiary	0	0	0	0
Equity In Net Income of Subsidiaries	0	0	0	0
NET INCOME	49	11	73	47
Net income attributable to noncontrolling interests	0	0	0	0
Net income attributable to common shareholders	49	11	73	47
Reportable Legal Entities \| MVWC
Condensed Financial Statements, Captions [Line Items]
Revenues	0	0	0	0
Expenses	(6)	(2)	(9)	(4)
Gains (losses) and other income (expense), net	0	0	0	0
Interest expense	(2)	(3)	(5)	(5)
ILG acquisition-related costs	0	0	0	0
Other	0	0	0	0
Provision for income taxes	3	1	4	2
Equity in Earnings (Losses) From Unconsolidated Subsidiary	0	0	0	0
Equity In Net Income of Subsidiaries	54	15	83	54
NET INCOME	49	11	73	47
Net income attributable to noncontrolling interests	0	0	0	0
Net income attributable to common shareholders	49	11	73	47
Senior MVW Notes \| Reportable Legal Entities \| Guarantors
Condensed Financial Statements, Captions [Line Items]
Revenues	695	286	1,406	585
Expenses	(583)	(257)	(1,214)	(510)
Gains (losses) and other income (expense), net	0	0	(1)	0
Interest expense	(5)	(1)	(6)	(2)
ILG acquisition-related costs	(14)	0	(14)	0
Other	0	0	0	0
Provision for income taxes	(35)	(12)	(70)	(27)
Equity in Earnings (Losses) From Unconsolidated Subsidiary	0	0	0	0
Equity In Net Income of Subsidiaries	0	0	0	0
NET INCOME	58	16	101	46
Net income attributable to noncontrolling interests	0	0	0	0
Net income attributable to common shareholders	58	16	101	46
Senior MVW Notes \| Reportable Legal Entities \| Non-Guarantor Subsidiaries
Condensed Financial Statements, Captions [Line Items]
Revenues	183	115	381	218
Expenses	(137)	(98)	(288)	(188)
Gains (losses) and other income (expense), net	0	0	0	0
Interest expense	(4)	0	(4)	0
ILG acquisition-related costs	0	0	0	0
Other	0	0	0	0
Provision for income taxes	(9)	(2)	(14)	(3)
Equity in Earnings (Losses) From Unconsolidated Subsidiary	0	0	0	0
Equity In Net Income of Subsidiaries	0	0	0	0
NET INCOME	33	15	75	27
Net income attributable to noncontrolling interests	0	0	0	0
Net income attributable to common shareholders	33	15	75	27
Senior MVW Notes \| Total Eliminations
Condensed Financial Statements, Captions [Line Items]
Revenues	(1)	0	(9)	0
Expenses	1	0	9	0
Gains (losses) and other income (expense), net	0	0	0	0
Interest expense	0	0	0	0
ILG acquisition-related costs	0	0	0	0
Other	0	0	0	0
Provision for income taxes	0	0	0	0
Equity in Earnings (Losses) From Unconsolidated Subsidiary	0	0	0	0
Equity In Net Income of Subsidiaries	(143)	(31)	(260)	(100)
NET INCOME	(143)	(31)	(260)	(100)
Net income attributable to noncontrolling interests	0	0	0	0
Net income attributable to common shareholders	(143)	(31)	(260)	(100)
Senior MVW Notes \| MORI \| Reportable Legal Entities \| Interval Acquisition Corp.
Condensed Financial Statements, Captions [Line Items]
Revenues	191	194	350	363
Expenses	(200)	(189)	(392)	(362)
Gains (losses) and other income (expense), net	2	(7)	11	(6)
Interest expense	(24)	(1)	(54)	(2)
ILG acquisition-related costs	(22)	(19)	(48)	(20)
Other	0	(1)	0	(3)
Provision for income taxes	16	7	40	11
Equity in Earnings (Losses) From Unconsolidated Subsidiary	0	0	0	0
Equity In Net Income of Subsidiaries	62	16	115	46
NET INCOME	25	0	22	27
Net income attributable to noncontrolling interests	0	0	0	0
Net income attributable to common shareholders	25	0	22	27
Senior MVW Notes \| ILG \| Reportable Legal Entities \| Interval Acquisition Corp.
Condensed Financial Statements, Captions [Line Items]
Revenues	0	0	0	0
Expenses	0	0	0	0
Gains (losses) and other income (expense), net	0	0	0	0
Interest expense	0	0	0	0
ILG acquisition-related costs	0	0	0	0
Other	0	0	0	0
Provision for income taxes	0	0	0	0
Equity in Earnings (Losses) From Unconsolidated Subsidiary	0	0	0	0
Equity In Net Income of Subsidiaries	27	0	62	0
NET INCOME	27	0	62	0
Net income attributable to noncontrolling interests	0	0	0	0
Net income attributable to common shareholders	27	0	62	0
IAC Notes
Condensed Financial Statements, Captions [Line Items]
Revenues	1,068	595	2,128	1,166
Expenses	(925)	(546)	(1,894)	(1,064)
Gains (losses) and other income (expense), net	2	(7)	10	(6)
Interest expense	(35)	(5)	(69)	(9)
ILG acquisition-related costs	(36)	(19)	(62)	(20)
Other	0	(1)	0	(3)
Provision for income taxes	0	(6)	(40)	(17)
Equity in Earnings (Losses) From Unconsolidated Subsidiary	0	0	0	0
Equity In Net Income of Subsidiaries	(25)	0	0	0
NET INCOME	49	11	73	47
Net income attributable to noncontrolling interests	0	0	0	0
Net income attributable to common shareholders	49	11	73	47
IAC Notes \| Reportable Legal Entities \| MVWC
Condensed Financial Statements, Captions [Line Items]
Revenues	0	0	0	0
Expenses	(6)	(2)	(9)	(4)
Gains (losses) and other income (expense), net	0	0	0	0
Interest expense	(2)	(3)	(5)	(5)
ILG acquisition-related costs	0	0	0	0
Other	0	0	0	0
Provision for income taxes	0	1	4	2
Equity in Earnings (Losses) From Unconsolidated Subsidiary	54	0	0	0
Equity In Net Income of Subsidiaries	3	15	83	54
NET INCOME	49	11	73	47
Net income attributable to noncontrolling interests	0	0	0	0
Net income attributable to common shareholders	49	11	73	47
IAC Notes \| Reportable Legal Entities \| Interval Acquisition Corp.
Condensed Financial Statements, Captions [Line Items]
Revenues	0	0	0	0
Expenses	0	0	0	0
Gains (losses) and other income (expense), net	0	0	0	0
Interest expense	(2)	0	(3)	0
ILG acquisition-related costs	0	0	0	0
Other	0	0	0	0
Provision for income taxes	0	0	1	0
Equity in Earnings (Losses) From Unconsolidated Subsidiary	28	0	0	0
Equity In Net Income of Subsidiaries	1	0	64	0
NET INCOME	27	0	62	0
Net income attributable to noncontrolling interests	0	0	0	0
Net income attributable to common shareholders	27	0	62	0
IAC Notes \| Reportable Legal Entities \| Guarantors
Condensed Financial Statements, Captions [Line Items]
Revenues	398	0	797	0
Expenses	(346)	0	(715)	0
Gains (losses) and other income (expense), net	2	0	0	0
Interest expense	(3)	0	(3)	0
ILG acquisition-related costs	(14)	0	(14)	0
Other	0	0	0	0
Provision for income taxes	0	0	(22)	0
Equity in Earnings (Losses) From Unconsolidated Subsidiary	27	0	0	0
Equity In Net Income of Subsidiaries	(12)	0	62	0
NET INCOME	52	0	105	0
Net income attributable to noncontrolling interests	0	0	0	0
Net income attributable to common shareholders	52	0	105	0
IAC Notes \| Reportable Legal Entities \| Non-Guarantor Subsidiaries
Condensed Financial Statements, Captions [Line Items]
Revenues	671	595	1,340	1,166
Expenses	(574)	(544)	(1,179)	(1,060)
Gains (losses) and other income (expense), net	0	(7)	10	(6)
Interest expense	(28)	(2)	(58)	(4)
ILG acquisition-related costs	(22)	(19)	(48)	(20)
Other	0	(1)	0	(3)
Provision for income taxes	0	(7)	(23)	(19)
Equity in Earnings (Losses) From Unconsolidated Subsidiary	0	0	0	0
Equity In Net Income of Subsidiaries	(16)	0	0	0
NET INCOME	31	15	42	54
Net income attributable to noncontrolling interests	0	0	0	0
Net income attributable to common shareholders	31	15	42	54
IAC Notes \| Total Eliminations
Condensed Financial Statements, Captions [Line Items]
Revenues	(1)	0	(9)	0
Expenses	1	0	9	0
Gains (losses) and other income (expense), net	0	0	0	0
Interest expense	0	0	0	0
ILG acquisition-related costs	0	0	0	0
Other	0	0	0	0
Provision for income taxes	0	0	0	0
Equity in Earnings (Losses) From Unconsolidated Subsidiary	(109)	0	0	0
Equity In Net Income of Subsidiaries	(1)	(15)	(209)	(54)
NET INCOME	(110)	(15)	(209)	(54)
Net income attributable to noncontrolling interests	0	0	0	0
Net income attributable to common shareholders	$ (110)	$ (15)	$ (209)	$ (54)

SUPPLEMENTAL GUARANTOR INFORMATION - Cash Flow (Details) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
Condensed Financial Statements, Captions [Line Items]
Net cash, cash equivalents and restricted cash provided by (used in) operating activities	$ 56	$ 58
Net cash, cash equivalents and restricted cash (used in) provided by investing activities	15	(19)
Net cash, cash equivalents and restricted cash (used in) provided by financing activities	(170)	187
Effect of changes in exchange rates on cash, cash equivalents and restricted cash	1	1
Cash, cash equivalents and restricted cash, beginning of period	614	491
Cash, cash equivalents and restricted cash, end of period	516	718
Total Eliminations
Condensed Financial Statements, Captions [Line Items]
Net cash, cash equivalents and restricted cash provided by (used in) operating activities	(12)	2
Net cash, cash equivalents and restricted cash (used in) provided by investing activities	0	0
Net cash, cash equivalents and restricted cash (used in) provided by financing activities	12	(2)
Effect of changes in exchange rates on cash, cash equivalents and restricted cash	0	0
Cash, cash equivalents and restricted cash, beginning of period	0	0
Cash, cash equivalents and restricted cash, end of period	0	0
MVWC \| Reportable Legal Entities
Condensed Financial Statements, Captions [Line Items]
Net cash, cash equivalents and restricted cash provided by (used in) operating activities	(71)	(45)
Net cash, cash equivalents and restricted cash (used in) provided by investing activities	(4)	(12)
Net cash, cash equivalents and restricted cash (used in) provided by financing activities	74	57
Effect of changes in exchange rates on cash, cash equivalents and restricted cash	0	0
Cash, cash equivalents and restricted cash, beginning of period	1	0
Cash, cash equivalents and restricted cash, end of period	0	0
Guarantors \| Reportable Legal Entities
Condensed Financial Statements, Captions [Line Items]
Net cash, cash equivalents and restricted cash provided by (used in) operating activities	151	(2)
Net cash, cash equivalents and restricted cash (used in) provided by investing activities	26	0
Net cash, cash equivalents and restricted cash (used in) provided by financing activities	(255)	(22)
Effect of changes in exchange rates on cash, cash equivalents and restricted cash	0	0
Cash, cash equivalents and restricted cash, beginning of period	161	30
Cash, cash equivalents and restricted cash, end of period	83	6
Non-Guarantor Subsidiaries \| Reportable Legal Entities
Condensed Financial Statements, Captions [Line Items]
Net cash, cash equivalents and restricted cash provided by (used in) operating activities	19	(8)
Net cash, cash equivalents and restricted cash (used in) provided by investing activities	7	(3)
Net cash, cash equivalents and restricted cash (used in) provided by financing activities	(27)	105
Effect of changes in exchange rates on cash, cash equivalents and restricted cash	1	1
Cash, cash equivalents and restricted cash, beginning of period	369	84
Cash, cash equivalents and restricted cash, end of period	369	179
MORI \| Interval Acquisition Corp. \| Reportable Legal Entities
Condensed Financial Statements, Captions [Line Items]
Net cash, cash equivalents and restricted cash provided by (used in) operating activities	(31)	111
Net cash, cash equivalents and restricted cash (used in) provided by investing activities	(14)	(4)
Net cash, cash equivalents and restricted cash (used in) provided by financing activities	28	49
Effect of changes in exchange rates on cash, cash equivalents and restricted cash	0	0
Cash, cash equivalents and restricted cash, beginning of period	81	377
Cash, cash equivalents and restricted cash, end of period	64	533
ILG \| Interval Acquisition Corp. \| Reportable Legal Entities
Condensed Financial Statements, Captions [Line Items]
Net cash, cash equivalents and restricted cash provided by (used in) operating activities	0	0
Net cash, cash equivalents and restricted cash (used in) provided by investing activities	0	0
Net cash, cash equivalents and restricted cash (used in) provided by financing activities	(2)	0
Effect of changes in exchange rates on cash, cash equivalents and restricted cash	0	0
Cash, cash equivalents and restricted cash, beginning of period	2	0
Cash, cash equivalents and restricted cash, end of period	0	0
IAC Notes
Condensed Financial Statements, Captions [Line Items]
Net cash, cash equivalents and restricted cash provided by (used in) operating activities	56	58
Net cash, cash equivalents and restricted cash (used in) provided by investing activities	15	(19)
Net cash, cash equivalents and restricted cash (used in) provided by financing activities	(170)	187
Effect of changes in exchange rates on cash, cash equivalents and restricted cash	1	1
Cash, cash equivalents and restricted cash, beginning of period	614	491
Cash, cash equivalents and restricted cash, end of period	516	718
IAC Notes \| Total Eliminations
Condensed Financial Statements, Captions [Line Items]
Net cash, cash equivalents and restricted cash provided by (used in) operating activities	(292)	2
Net cash, cash equivalents and restricted cash (used in) provided by investing activities	0	0
Net cash, cash equivalents and restricted cash (used in) provided by financing activities	292	(2)
Effect of changes in exchange rates on cash, cash equivalents and restricted cash	0	0
Cash, cash equivalents and restricted cash, beginning of period	0	0
Cash, cash equivalents and restricted cash, end of period	0	0
IAC Notes \| MVWC \| Reportable Legal Entities
Condensed Financial Statements, Captions [Line Items]
Net cash, cash equivalents and restricted cash provided by (used in) operating activities	(71)	(45)
Net cash, cash equivalents and restricted cash (used in) provided by investing activities	(4)	(12)
Net cash, cash equivalents and restricted cash (used in) provided by financing activities	74	57
Effect of changes in exchange rates on cash, cash equivalents and restricted cash	0	0
Cash, cash equivalents and restricted cash, beginning of period	1	0
Cash, cash equivalents and restricted cash, end of period	0	0
IAC Notes \| Interval Acquisition Corp. \| Reportable Legal Entities
Condensed Financial Statements, Captions [Line Items]
Net cash, cash equivalents and restricted cash provided by (used in) operating activities	(2)	0
Net cash, cash equivalents and restricted cash (used in) provided by investing activities	0	0
Net cash, cash equivalents and restricted cash (used in) provided by financing activities	(8)	0
Effect of changes in exchange rates on cash, cash equivalents and restricted cash	0	0
Cash, cash equivalents and restricted cash, beginning of period	11	0
Cash, cash equivalents and restricted cash, end of period	1	0
IAC Notes \| Guarantors \| Reportable Legal Entities
Condensed Financial Statements, Captions [Line Items]
Net cash, cash equivalents and restricted cash provided by (used in) operating activities	106	0
Net cash, cash equivalents and restricted cash (used in) provided by investing activities	22	0
Net cash, cash equivalents and restricted cash (used in) provided by financing activities	(160)	0
Effect of changes in exchange rates on cash, cash equivalents and restricted cash	0	0
Cash, cash equivalents and restricted cash, beginning of period	111	0
Cash, cash equivalents and restricted cash, end of period	79	0
IAC Notes \| Non-Guarantor Subsidiaries \| Reportable Legal Entities
Condensed Financial Statements, Captions [Line Items]
Net cash, cash equivalents and restricted cash provided by (used in) operating activities	315	101
Net cash, cash equivalents and restricted cash (used in) provided by investing activities	(3)	(7)
Net cash, cash equivalents and restricted cash (used in) provided by financing activities	(368)	132
Effect of changes in exchange rates on cash, cash equivalents and restricted cash	1	1
Cash, cash equivalents and restricted cash, beginning of period	491	491
Cash, cash equivalents and restricted cash, end of period	$ 436	$ 718

Label	Element	Value
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance	us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1	$ 3,458,000,000
Additional Paid-in Capital [Member]
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance	us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1	3,721,000,000
Treasury Stock [Member]
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance	us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1	(790,000,000)
Parent [Member]
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance	us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1	3,453,000,000
Retained Earnings [Member]
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance	us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1	515,000,000
Noncontrolling Interest [Member]
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance	us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1	5,000,000
Common Stock [Member]
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance	us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1	1,000,000
AOCI Attributable to Parent [Member]
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance	us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1	6,000,000
Accounting Standards Update 2016-02 [Member] \| Parent [Member]
Cumulative Effect of New Accounting Principle in Period of Adoption	us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption	$ (8,000,000)

Cover Page - shares	6 Months Ended
Cover Page - shares	Jun. 30, 2019	Jul. 26, 2019
Document And Entity Information [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Jun. 30, 2019
Entity File Number	001-35219
Entity Registrant Name	Marriott Vacations Worldwide Corp
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	45-2598330
Entity Address, Address Line One	6649 Westwood Blvd.
Entity Address, City or Town	Orlando
Entity Address, State or Province	FL
Entity Address, Postal Zip Code	32821
City Area Code	407
Local Phone Number	206-6000
Title of 12(b) Security	Common Stock, $0.01 Par Value
Trading Symbol	VAC
Security Exchange Name	NYSE
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding (in shares)		43,527,329
Entity Central Index Key	0001524358
Amendment Flag	false
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q2
Current Fiscal Year End Date	--12-31

INTERIM CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
REVENUES
Revenue from contracts with customers	$ 999	$ 559	$ 1,991	$ 1,095
Financing	69	36	137	71
Cost reimbursements	252	202	539	418
TOTAL REVENUES	1,068	595	2,128	1,166
EXPENSES
Marketing and sales	193	106	381	211
Rental	25	10	47	21
General and administrative	79	33	157	61
Depreciation and amortization	36	5	73	11
Litigation charges	1	16	2	16
Royalty fee	26	16	52	31
Impairment	0	0	26	0
Impairment			26	0
Cost reimbursements	252	202	539	418
TOTAL EXPENSES	925	546	1,894	1,064
Gains (losses) and other income (expense), net	2	(7)	10	(6)
Interest expense	(35)	(5)	(69)	(9)
ILG acquisition-related costs	(36)	(19)	(62)	(20)
Other	0	(1)	0	(3)
INCOME BEFORE INCOME TAXES AND NONCONTROLLING INTERESTS	74	17	113	64
Provision for income taxes	(25)	(6)	(40)	(17)
NET INCOME	49	11	73	47
Net income attributable to noncontrolling interests	0	0	0	0
NET INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS	$ 49	$ 11	$ 73	$ 47
EARNINGS PER SHARE ATTRIBUTABLE TO COMMON SHAREHOLDERS
Basic (in usd per share)	$ 1.11	$ 0.40	$ 1.62	$ 1.75
Diluted (in usd per share)	1.10	0.39	1.61	1.71
CASH DIVIDENDS DECLARED PER SHARE (in usd per share)	$ 0.45	$ 0.40	$ 0.90	$ 0.80
Sale of vacation ownership products
REVENUES
Revenue from contracts with customers	$ 350	$ 205	$ 651	$ 380
EXPENSES
Expenses	91	57	171	103
Resort management and other services
REVENUES
Revenue from contracts with customers	239	78	478	148
EXPENSES
Expenses	118	39	234	75
Rental
REVENUES
Revenue from contracts with customers	158	74	323	149
EXPENSES
Expenses	$ 104	$ 62	$ 212	$ 117

INTERIM CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Statement of Comprehensive Income [Abstract]
NET INCOME	$ 49	$ 11	$ 73	$ 47
Other comprehensive income (loss):
Foreign currency translation adjustments	(2)	(7)	(1)	(1)
Derivative instrument adjustment, net of tax	(13)	0	(16)	0
OTHER COMPREHENSIVE LOSS, NET OF TAX	(15)	(7)	(17)	(1)
Net income attributable to noncontrolling interests	0	0	0	0
Other comprehensive income attributable to noncontrolling interests	0	0	0	0
COMPREHENSIVE INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS	0	0	0	0
COMPREHENSIVE INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS	$ 34	$ 4	$ 56	$ 46

INTERIM CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions	Jun. 30, 2019	Dec. 31, 2018
ASSETS
Cash and cash equivalents	$ 179	$ 231
Restricted cash (including $80 and $69 from VIEs, respectively)	337	383
Accounts receivable, net (including $12 and $11 from VIEs, respectively)	327	324
Vacation ownership notes receivable, net (including $1,681 and $1,627 from VIEs, respectively)	2,098	2,039
Inventory	888	863
Property and equipment	837	951
Goodwill	2,824	2,828
Intangibles, net	1,075	1,107
Other (including $34 and $26 from VIEs, respectively)	458	292
TOTAL ASSETS	9,023	9,018
LIABILITIES AND EQUITY
Accounts payable	164	253
Contract Liabilities	542	490
Accrued liabilities (including $3 and $2 from VIEs, respectively)	417	357
Payroll and benefits liability	172	211
Deferred compensation liability	102	93
Securitized debt, net (including $1,787 and $1,706 from VIEs, respectively)	1,792	1,714
Debt, net	2,157	2,104
Other	64	12
Deferred taxes	343	318
TOTAL LIABILITIES	5,753	5,552
Contingencies and Commitments (Note 11)
Preferred stock — $0.01 par value; 2,000,000 shares authorized; none issued or outstanding	0	0
Common stock — $0.01 par value; 100,000,000 shares authorized; 57,862,278 and 57,626,462 shares issued, respectively	1	1
Treasury stock — at cost; 13,979,609 and 11,633,731 shares, respectively	(1,004)	(790)
Additional paid-in capital	3,730	3,721
Accumulated other comprehensive (loss) income	(11)	6
Retained earnings	548	523
TOTAL MVW SHAREHOLDERS' EQUITY	3,264	3,461
Noncontrolling interests	6	5
TOTAL EQUITY	3,270	3,466
TOTAL LIABILITIES AND EQUITY	9,023	9,018
Advance deposits
LIABILITIES AND EQUITY
Contract Liabilities	186	171
Deferred revenue
LIABILITIES AND EQUITY
Contract Liabilities	$ 356	$ 319

INTERIM CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions	Jun. 30, 2019	Dec. 31, 2018
Restricted cash	$ 337	$ 383
Accounts receivable, net	327	324
Vacation ownership notes receivable, net	2,098	2,039
Other	458	292
Accrued liabilities	417	357
Securitized debt, net	1,792	1,714
Other	$ 64	$ 12
Preferred stock, par value (in usd per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized (in shares)	2,000,000	2,000,000
Preferred stock, issued (in shares)	0	0
Preferred stock, outstanding (in shares)	0	0
Common stock, Par (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	100,000,000	100,000,000
Common stock, shares issued (in shares)	57,862,278	57,626,462
Treasury stock, shares (in shares)	13,979,609	11,633,731
Variable Interest Entity
Restricted cash	$ 80	$ 69
Accounts receivable, net	12	11
Vacation ownership notes receivable, net	1,681	1,627
Other	34	26
Accrued liabilities	3	2
Securitized debt, net	$ 1,787	$ 1,706

INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
OPERATING ACTIVITIES
NET INCOME	$ 73	$ 47
Adjustments to reconcile net income to net cash, cash equivalents and restricted cash provided by operating activities:
Depreciation and amortization of intangibles	73	11
Amortization of debt discount and issuance costs	9	8
Vacation ownership notes receivable reserve	51	24
Share-based compensation	17	10
Impairment charges	26	0
Deferred income taxes	20	12
Net change in assets and liabilities, net of the effects of acquisition:
Accounts receivable	(18)	24
Vacation ownership notes receivable originations	(423)	(233)
Vacation ownership notes receivable collections	309	155
Inventory	76	37
Other assets	(30)	12
Accounts payable, advance deposits and accrued liabilities	(129)	(59)
Deferred revenue	37	29
Payroll and benefit liabilities	(39)	(27)
Deferred compensation liability	9	8
Other, net	(5)	0
Net cash, cash equivalents and restricted cash provided by operating activities	56	58
INVESTING ACTIVITIES
Capital expenditures for property and equipment (excluding inventory)	(19)	(7)
Proceeds from collection of notes receivable	38	0
Purchase of company owned life insurance	(4)	(12)
Net cash, cash equivalents and restricted cash provided by (used in) investing activities	15	(19)
FINANCING ACTIVITIES
Borrowings from securitization transactions	574	423
Repayment of debt related to securitization transactions	(496)	(154)
Proceeds from debt	310	0
Repayments of debt	(266)	(33)
Debt issuance costs	(6)	(7)
Repurchase of common stock	(215)	(2)
Payment of dividends	(61)	(32)
Payment of withholding taxes on vesting of restricted stock units	(10)	(8)
Net cash, cash equivalents and restricted cash (used in) provided by financing activities	(170)	187
Effect of changes in exchange rates on cash, cash equivalents and restricted cash	1	1
Change in cash, cash equivalents and restricted cash	(98)	227
Cash, cash equivalents and restricted cash, beginning of period	614	491
Cash, cash equivalents and restricted cash, end of period	516	718
SUPPLEMENTAL DISCLOSURES
Non-cash transfer from property and equipment to inventory	64	0
Interest paid, net of amounts capitalized	81	12
Income taxes paid, net of refunds	$ 60	$ 13

INTERIM CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY - USD ($) $ in Millions	Total	Common Stock	Treasury Stock	Additional Paid-In Capital	Accumulated Other Comprehensive Income	Retained Earnings	Total MVW Shareholders' Equity	Noncontrolling Interests
Balance (in shares) at Dec. 31, 2017	36,900,000
Balance at Dec. 31, 2017	$ 1,041	$ 0	$ (694)	$ 1,189	$ 17	$ 529	$ 1,041	$ 0
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	36					36	36
Foreign currency translation adjustments	$ 6				6		6
Amounts related to share-based compensation (in shares)	100,000
Share-based compensation plans	$ (5)			(5)			(5)
Repurchase of common stock (in shares)	0
Repurchase of common stock	$ (2)		(2)				(2)
Dividends	$ (10)					(10)	(10)
Balance (in shares) at Mar. 31, 2018	37,000,000.0
Balance at Mar. 31, 2018	$ 1,066	0	(696)	1,184	23	555	1,066	0
Balance (in shares) at Dec. 31, 2017	36,900,000
Balance at Dec. 31, 2017	$ 1,041	0	(694)	1,189	17	529	1,041	0
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Foreign currency translation adjustments	(1)
Derivative instrument adjustment	$ 0
Balance (in shares) at Jun. 30, 2018	37,000,000.0
Balance at Jun. 30, 2018	$ 1,066	0	(696)	1,191	16	555	1,066	0
Balance (in shares) at Mar. 31, 2018	37,000,000.0
Balance at Mar. 31, 2018	$ 1,066	0	(696)	1,184	23	555	1,066	0
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	11					11	11
Foreign currency translation adjustments	(7)				(7)		(7)
Derivative instrument adjustment	$ 0
Amounts related to share-based compensation (in shares)	0
Share-based compensation plans	$ 7			7			7
Dividends	$ (11)					(11)	(11)
Balance (in shares) at Jun. 30, 2018	37,000,000.0
Balance at Jun. 30, 2018	$ 1,066	0	(696)	1,191	16	555	1,066	0
Balance (in shares) at Dec. 31, 2018	57,626,462
Balance at Dec. 31, 2018	$ 3,466	1	(790)	3,721	6	523	3,461	5
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	24					24	24
Foreign currency translation adjustments	1				1		1
Derivative instrument adjustment	$ (3)				(3)		(3)
Amounts related to share-based compensation (in shares)	200,000
Share-based compensation plans	$ (4)			(4)			(4)
Repurchase of common stock (in shares)	0
Repurchase of common stock	$ (106)		(106)				(106)
Dividends	$ (20)					(20)	(20)
Employee stock plan issuance (in shares)	0
Employee stock plan issuance	$ 1		1				1
Balance (in shares) at Mar. 31, 2019	57,800,000
Balance at Mar. 31, 2019	$ 3,351	1	(895)	3,717	4	519	3,346	5
Balance (in shares) at Dec. 31, 2018	57,626,462
Balance at Dec. 31, 2018	$ 3,466	1	$ (790)	3,721	6	523	3,461	5
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Foreign currency translation adjustments	(1)
Derivative instrument adjustment	$ (16)
Repurchase of common stock (in shares)			2,358,808
Repurchase of common stock			$ (215)
Balance (in shares) at Jun. 30, 2019	57,862,278
Balance at Jun. 30, 2019	$ 3,270	1	(1,004)	3,730	(11)	548	3,264	6
Balance (in shares) at Mar. 31, 2019	57,800,000
Balance at Mar. 31, 2019	$ 3,351	1	(895)	3,717	4	519	3,346	5
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	49					49	49
ILG Acquisition purchase accounting adjustment	1							1
Foreign currency translation adjustments	(2)				(2)		(2)
Derivative instrument adjustment	$ (13)				(13)		(13)
Amounts related to share-based compensation (in shares)	0
Share-based compensation plans	$ 13			13			13
Repurchase of common stock (in shares)	0
Repurchase of common stock	$ (109)		(109)				(109)
Dividends	$ (20)					(20)	(20)
Employee stock plan issuance (in shares)	100,000
Employee stock plan issuance	$ 0		0				0
Balance (in shares) at Jun. 30, 2019	57,862,278
Balance at Jun. 30, 2019	$ 3,270	$ 1	$ (1,004)	$ 3,730	$ (11)	$ 548	$ 3,264	$ 6

BASIS OF PRESENTATION

6 Months Ended

Jun. 30, 2019

BASIS OF PRESENTATION



1.	BASIS OF PRESENTATION

Reclassifications

We have reclassified the following prior year amounts to conform to the current year presentation:


•	Reclassified Resort management and other services revenue to Management and exchange revenue;


•	Reclassified Resort management and other services expense to Management and exchange expense;


•	Consolidated Consumer financing interest expense into Financing expense;


•	Reclassified depreciation expense from Marketing and sales expense, Management and exchange expense, Rental expense, and General and administrative expense to Depreciation and amortization expense;


•	Reclassified $8 million from Accrued liabilities to Accounts payable;


•	Reclassified $58 million from Accrued liabilities to Advance deposits; and


•	Reclassified $20 million of other debt from Debt, net to Securitized debt, net.

Acquisition of ILG

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

6 Months Ended

Jun. 30, 2019

Accounting Policies [Abstract]

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES



2.	SIGNIFICANT ACCOUNTING POLICIES AND RECENT ACCOUNTING STANDARDS

New 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 2016-02 – “Leases (Topic 842)” (“ASU 2016-02”)

Future Adoption of Accounting Standards

Accounting Standards Update 2017-04 – “Intangibles – Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment” (“ASU 2017-04”)

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

ACQUISITIONS AND DISPOSITIONS

6 Months Ended

Jun. 30, 2019

ACQUISITIONS AND DISPOSITIONS



3.	ACQUISITIONS AND DISPOSITIONS

Acquisitions

ILG Acquisition



(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	30
	$	4,215

Preliminary Fair Values of Assets Acquired and Liabilities Assumed



($ in millions)	September 1, 2018 (as reported at December 31, 2018)			Adjustments			September 1, 2018 (as adjusted at June 30, 2019)
Vacation ownership notes receivable	$	753		$	—		$	753
Inventory	474			—			474
Property and equipment	374			(1		)	373
Intangible assets	1,166			(3		)	1,163
Other assets	620			42			662
Deferred revenue	(217		)	—			(217		)
Deferred taxes	(179		)	4			(175		)
Debt	(392		)	—			(392		)
Securitized debt from VIEs	(702		)	—			(702		)
Other liabilities	(511		)	(37		)	(548		)
Net assets acquired	1,386			5			1,391
Goodwill⁽¹⁾	2,828			(4		)	2,824
	$	4,214		$	1		$	4,215

_________________________


⁽¹⁾	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.

Vacation Ownership Notes Receivable

Inventory

Property and Equipment

Goodwill



($ in millions)	Vacation Ownership Segment			Exchange & Third-Party Management Segment		Total Consolidated
Balance at December 31, 2018	$	2,448		$	380	$	2,828
Adjustments	(4		)	—		(4		)
Balance at June 30, 2019	$	2,444		$	380	$	2,824

Intangible Assets

The following table presents our preliminary estimates of the fair values of ILG’s identified intangible assets and their related estimated useful lives as of the Acquisition Date.



	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⁾	30		indefinite
Trade names and trademarks	82		indefinite
	$	1,163

_________________________

⁽¹⁾

Deferred Revenue

Deferred Income Taxes

Debt

Securitized Debt from VIEs

Pro Forma Results of Operations



($ in millions, except per share data)	Six Months Ended June 30, 2018
Revenues	$	2,097
Net income	$	71
Net income attributable to common shareholders	$	68
EARNINGS PER SHARE ATTRIBUTABLE TO COMMON SHAREHOLDERS
Basic	$	1.45
Diluted	$	1.42

The unaudited pro forma results above include $27 million of ILG acquisition-related costs for the six months ended June 30, 2018.

ILG Results of Operations

The following table presents the results of Legacy-ILG operations included in our Income Statement for the three and six months ended June 30, 2019.



($ in millions)	Three Months Ended June 30, 2019		Six Months Ended June 30, 2019
Revenue	$	455	$	913
Net income attributable to common shareholders	$	34	$	66

Marco Island, Florida

REVENUE

6 Months Ended

Jun. 30, 2019

REVENUE



4.	REVENUE

Sources of Revenue by Segment

The following tables detail the sources of revenue by segment for the time periods presented.



	Three Months Ended June 30, 2019
($ in millions)	Vacation Ownership		Exchange & Third-Party Management		Corporate and Other			Total
Sale of vacation ownership products	$	350	$	—	$	—		$	350

Ancillary revenues	66		1		—			67
Management fee revenues	38		11		(3		)	46
Other services revenues	30		63		33			126
Management and exchange	134		75		30			239

Rental	141		17		—			158

Cost reimbursements	258		22		(28		)	252
Revenue from contracts with customers	883		114		2			999

Financing	68		1		—			69
Total Revenues	$	951	$	115	$	2		$	1,068



	Three Months Ended June 30, 2018
($ in millions)	Vacation Ownership		Exchange & Third-Party Management		Corporate and Other		Total
Sale of vacation ownership products	$	205	$	—	$	—	$	205

Ancillary revenues	36		—		—		36
Management fee revenues	26		—		—		26
Other services revenues	16		—		—		16
Management and exchange	78		—		—		78

Rental	74		—		—		74

Cost reimbursements	202		—		—		202
Revenue from contracts with customers	559		—		—		559

Financing	36		—		—		36
Total Revenues	$	595	$	—	$	—	$	595



	Six Months Ended June 30, 2019
($ in millions)	Vacation Ownership		Exchange & Third-Party Management		Corporate and Other			Total
Sale of vacation ownership products	$	651	$	—	$	—		$	651

Ancillary revenues	123		2		—			125
Management fee revenues	75		26		(7		)	94
Other services revenues	61		129		69			259
Management and exchange	259		157		62			478

Rental	288		34		1			323

Cost reimbursements	549		46		(56		)	539
Revenue from contracts with customers	1,747		237		7			1,991

Financing	135		2		—			137
Total Revenues	$	1,882	$	239	$	7		$	2,128



	Six Months Ended June 30, 2018
($ in millions)	Vacation Ownership		Exchange & Third-Party Management		Corporate and Other		Total
Sale of vacation ownership products	$	380	$	—	$	—	$	380

Ancillary revenues	64		—		—		64
Management fee revenues	50		—		—		50
Other services revenues	34		—		—		34
Management and exchange	148		—		—		148

Rental	149		—		—		149

Cost reimbursements	418		—		—		418
Revenue from contracts with customers	1,095		—		—		1,095

Financing	71		—		—		71
Total Revenues	$	1,166	$	—	$	—	$	1,166

Timing of Revenue from Contracts with Customers by Segment

The following tables detail the timing of revenue from contracts with customers by segment for the time periods presented.



	Three Months Ended June 30, 2019
($ in millions)	Vacation Ownership		Exchange & Third-Party Management		Corporate and Other		Total
Services transferred over time	$	471	$	55	$	2	$	528
Goods or services transferred at a point in time	412		59		—		471
	$	883	$	114	$	2	$	999



	Three Months Ended June 30, 2018
($ in millions)	Vacation Ownership		Exchange & Third-Party Management		Corporate and Other		Total
Services transferred over time	$	315	$	—	$	—	$	315
Goods or services transferred at a point in time	244		—		—		244
	$	559	$	—	$	—	$	559



	Six Months Ended June 30, 2019
($ in millions)	Vacation Ownership		Exchange & Third-Party Management		Corporate and Other		Total
Services transferred over time	$	978	$	113	$	7	$	1,098
Goods or services transferred at a point in time	769		124		—		893
	$	1,747	$	237	$	7	$	1,991



	Six Months Ended June 30, 2018
($ in millions)	Vacation Ownership		Exchange & Third-Party Management		Corporate and Other		Total
Services transferred over time	$	643	$	—	$	—	$	643
Goods or services transferred at a point in time	452		—		—		452
	$	1,095	$	—	$	—	$	1,095

Sale of Vacation Ownership Products

Receivables, Contract Assets & Contract Liabilities

The following table shows the composition of our receivables and contract liabilities. We had no contract assets at either June 30, 2019 or December 31, 2018.



($ in millions)	At June 30, 2019		At December 31, 2018
Receivables
Accounts receivable	$	127	$	164
Vacation ownership notes receivable, net	2,098		2,039
	$	2,225	$	2,203
Contract Liabilities
Advance deposits	$	186	$	171
Deferred revenue	356		319
	$	542	$	490

Revenue recognized during the second quarter and first half of 2019 that was included in our contract liabilities balance at December 31, 2018 was $51 million and $203 million, respectively.

Remaining Performance Obligations

INCOME TAXES

6 Months Ended

Jun. 30, 2019

Income Tax Disclosure [Abstract]

INCOME TAXES



5.	INCOME TAXES

VACATION OWNERSHIP NOTES RECEIVABLE

6 Months Ended

Jun. 30, 2019

VACATION OWNERSHIP NOTES RECEIVABLE



6.	VACATION OWNERSHIP NOTES RECEIVABLE

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



	June 30, 2019						December 31, 2018
($ in millions)	Originated		Acquired		Total		Originated		Acquired		Total
Securitized	$	1,209	$	472	$	1,681	$	1,070	$	557	$	1,627
Non-securitized
Eligible for securitization⁽¹⁾	83		11		94		85		22		107
Not eligible for securitization⁽¹⁾	261		62		323		233		72		305
Subtotal	344		73		417		318		94		412
	$	1,553	$	545	$	2,098	$	1,388	$	651	$	2,039

_________________________


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



	Three Months Ended				Six Months Ended
($ in millions)	June 30, 2019		June 30, 2018		June 30, 2019		June 30, 2018
Interest income associated with vacation ownership notes receivable — securitized	$	59	$	27	$	118	$	53
Interest income associated with vacation ownership notes receivable — non-securitized	8		7		14		15
Total interest income associated with vacation ownership notes receivable	$	67	$	34	$	132	$	68

Acquired Vacation Ownership Notes Receivable



($ in millions)	Six Months Ended June 30, 2019
Accretable yield balance at December 31, 2018	$	199
Accretion	(43		)
Reclassification from non-accretable difference	(3		)
Accretable yield balance at June 30, 2019	$	153

Non-accretable difference at June 30, 2019	$	55

The following table shows future contractual principal payments, as well as interest rates for our non-securitized and securitized acquired vacation ownership notes receivable, at June 30, 2019.



	Acquired Vacation Ownership Notes Receivable
($ in millions)	Non-Securitized		Securitized		Total
2019, remaining	$	7	$	55	$	62
2020	7		53		60
2021	8		53		61
2022	8		53		61
2023	8		52		60
Thereafter	35		206		241
Balance at June 30, 2019	$	73	$	472	$	545
Weighted average stated interest rate	13.5%		13.4%		13.4%
Range of stated interest rates	0.0% to 17.9%		6.0% to 16.9%		0.0% to 17.9%

Originated Vacation Ownership Notes Receivable



	Originated Vacation Ownership Notes Receivable
($ in millions)	Non-Securitized		Securitized		Total
2019, remaining	$	34	$	65	$	99
2020	45		114		159
2021	37		120		157
2022	32		125		157
2023	29		128		157
Thereafter	167		657		824
Balance at June 30, 2019	$	344	$	1,209	$	1,553
Weighted average stated interest rate	11.8%		12.6%		12.4%
Range of stated interest rates	0.0% to 18.0%		5.2% to 17.5%		0.0% to 18.0%

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



	Originated Vacation Ownership Notes Receivable Reserve
($ in millions)	Non-Securitized			Securitized			Total
Balance at December 31, 2018	$	61		$	79		$	140
Increase in vacation ownership notes receivable reserve	38			8			46
Securitizations	(35		)	35			—
Clean-up call⁽¹⁾	18			(18		)	—
Write-offs	(23		)	—			(23		)
Defaulted vacation ownership notes receivable repurchase activity⁽²⁾	11			(11		)	—
Balance at June 30, 2019	$	70		$	93		$	163

_________________________


⁽¹⁾	Refers to our voluntary repurchase of previously securitized non-defaulted vacation ownership notes receivable to retire outstanding vacation ownership notes receivable from our Warehouse Credit Facility.


⁽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.



	Legacy-MVW Vacation Ownership Notes Receivable
($ in millions)	Non-Securitized		Securitized		Total
Investment in vacation ownership notes receivable on non-accrual status at June 30, 2019	$	41	$	8	$	49
Investment in vacation ownership notes receivable on non-accrual status at December 31, 2018	$	36	$	9	$	45
Average investment in vacation ownership notes receivable on non-accrual status during the second quarter of 2019	$	39	$	10	$	49
Average investment in vacation ownership notes receivable on non-accrual status during the second quarter of 2018	$	39	$	8	$	47
Average investment in vacation ownership notes receivable on non-accrual status during the first half of 2019	$	38	$	9	$	47
Average investment in vacation ownership notes receivable on non-accrual status during the first half of 2018	$	39	$	7	$	46

The following table shows the aging of the recorded investment in principal, before reserves, in Legacy-MVW vacation ownership notes receivable as of June 30, 2019.



	Legacy-MVW Vacation Ownership Notes Receivable
($ in millions)	Non-Securitized		Securitized		Total
31 – 90 days past due	$	6	$	21	$	27
91 – 150 days past due	5		8		13
Greater than 150 days past due	36		—		36
Total past due	47		29		76
Current	223		1,160		1,383
Total vacation ownership notes receivable	$	270	$	1,189	$	1,459

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

Legacy-ILG Vacation Ownership Notes Receivable

On an ongoing basis, we monitor 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.

•

The following table shows the Legacy-ILG acquired vacation ownership notes receivable by brand and FICO score as of June 30, 2019.



	Acquired Vacation Ownership Notes Receivable
($ in millions)	700 +		600 - 699		< 600		No Score⁽¹⁾		Total
Westin	$	127	$	70	$	5	$	17	$	219
Sheraton	120		104		19		45		288
Hyatt	17		12		2		—		31
Other	4		1		—		2		7
	$	268	$	187	$	26	$	64	$	545

_________________________


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

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 June 30, 2019.



	Originated Vacation Ownership Notes Receivable
($ in millions)	700 +		600 - 699		< 600		No Score⁽¹⁾		Total
Westin	$	80	$	27	$	2	$	14	$	123
Sheraton	58		36		6		21		121
Hyatt	9		4		1		—		14
	$	147	$	67	$	9	$	35	$	258

_________________________


⁽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 June 30, 2019 and 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
As of June 30, 2019	$	258	$	252	$	3	$	2	$	1	$	—	$	6

As of 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

6 Months Ended

Jun. 30, 2019

FINANCIAL INSTRUMENTS



7.	FINANCIAL INSTRUMENTS



	At June 30, 2019						At December 31, 2018
($ in millions)	Carrying Amount			Fair Value			Carrying Amount			Fair Value
Originated vacation ownership notes receivable	$	1,553		$	1,584		$	1,388		$	1,413
Other assets	41			41			66			66
Total financial assets	$	1,594		$	1,625		$	1,454		$	1,479

Securitized debt, net	$	(1,792	)	$	(1,820	)	$	(1,714	)	$	(1,718	)
Exchange Notes, net	(88		)	(89		)	(88		)	(87		)
Senior Unsecured Notes, net	(742		)	(807		)	(741		)	(726		)
IAC Notes	(141		)	(140		)	(141		)	(140		)
Term Loan, net	(884		)	(895		)	(888		)	(887		)
Revolving Corporate Credit Facility, net	(76		)	(76		)	—			—
Convertible notes, net	(203		)	(221		)	(199		)	(198		)
Non-interest bearing note payable, net	—			—			(30		)	(30		)
Total financial liabilities	$	(3,926	)	$	(4,048	)	$	(3,801	)	$	(3,786	)

Originated Vacation Ownership Notes Receivable



	At June 30, 2019				At December 31, 2018
($ in millions)	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Originated vacation ownership notes receivable
Securitized	$	1,209	$	1,238	$	1,070	$	1,093

Eligible for securitization	83		85		85		87
Not eligible for securitization	261		261		233		233
Non-securitized	344		346		318		320
	$	1,553	$	1,584	$	1,388	$	1,413

Other Assets

Securitized Debt

Exchange Notes

Senior Unsecured Notes

IAC Notes

Term Loan

Revolving Corporate Credit Facility

Convertible Notes

EARNINGS PER SHARE

6 Months Ended

Jun. 30, 2019

EARNINGS PER SHARE



8.	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 attributable to common shareholders.



	Three Months Ended				Six Months Ended
(in millions, except per share amounts)	June 30, 2019⁽¹⁾		June 30, 2018⁽¹⁾		June 30, 2019⁽¹⁾		June 30, 2018⁽¹⁾
Computation of Basic Earnings Per Share Attributable to Common Shareholders
Net income attributable to common shareholders	$	49	$	11	$	73	$	47
Shares for basic earnings per share	44.7		26.7		45.1		26.7
Basic earnings per share	$	1.11	$	0.40	$	1.62	$	1.75
Computation of Diluted Earnings Per Share Attributable to Common Shareholders
Net income attributable to common shareholders	$	49	$	11	$	73	$	47
Shares for basic earnings per share	44.7		26.7		45.1		26.7
Effect of dilutive shares outstanding
Employee stock options and SARs	0.3		0.4		0.3		0.4
Restricted stock units	0.2		0.2		0.2		0.2
Shares for diluted earnings per share	45.2		27.3		45.6		27.3
Diluted earnings per share	$	1.10	$	0.39	$	1.61	$	1.71

_______________________________

⁽¹⁾

INVENTORY

6 Months Ended

Jun. 30, 2019

INVENTORY



9.	INVENTORY

The following table shows the composition of our inventory balances:



($ in millions)	At June 30, 2019		At December 31, 2018
Finished goods⁽¹⁾	$	828	$	843
Work-in-progress	48		9
Real estate inventory	876		852
Other	12		11
	$	888	$	863

_________________________


⁽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

6 Months Ended

Jun. 30, 2019

Commitments and Contingencies Disclosure [Abstract]

PROPERTY AND EQUIPMENT



10.	PROPERTY AND EQUIPMENT

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



($ in millions)	At June 30, 2019			At December 31, 2018
Land and land improvements	$	373		$	466
Buildings and leasehold improvements	403			404
Furniture, fixtures and other equipment	87			88
Information technology	311			297
Construction in progress	38			32
	1,212			1,287
Accumulated depreciation	(375		)	(336		)
	$	837		$	951

CONTINGENCIES AND COMMITMENTS

6 Months Ended

Jun. 30, 2019

CONTINGENCIES AND COMMITMENTS



11.	CONTINGENCIES AND COMMITMENTS

Commitments and Letters of Credit

As of June 30, 2019, 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 $62 million, of which we expect $19 million, $19 million, $10 million, $7 million, $6 million and $1 million will be paid in the remainder of 2019, 2020, 2021, 2022, 2023 and thereafter, respectively.


•	We have commitments of $3 million to subsidize operating costs of vacation ownership property owners’ associations, which we expect to pay in 2019.

•

Surety bonds issued as of June 30, 2019 totaled $78 million, the majority of which were requested by federal, state or local governments in connection with our operations.

Guarantees

Loss Contingencies

We believe we have meritorious defenses to the claims in each of the above matters and intend to vigorously defend each matter.

Other

Insurance Recoveries

LEASES

6 Months Ended

Jun. 30, 2019



12.	LEASES

The following table presents the carrying values of our leases and the classification on our Balance Sheet as of June 30, 2019.



($ in millions)	Balance Sheet Classification	At June 30, 2019
Operating lease assets	Other assets	$	121
Finance lease assets	Property and equipment	22
		$	143

Operating lease liabilities	Accrued liabilities	$	134
Finance lease liabilities	Debt	22
		$	156

The following table presents the lease costs and the classification on our Income Statement for the three and six months ended June 30, 2019.



($ in millions)	Income Statement Classification	Three Months Ended June 30, 2019		Six Months Ended June 30, 2019
Operating lease cost	Marketing and sales expense General and administrative expense	$	9	$	17
Finance lease cost
Amortization of right-of-use assets	Depreciation and amortization	1		2
Interest on lease liabilities	Interest expense	1		1
Variable lease cost	Marketing and sales expense	1		2
		$	12	$	22

The following table presents the maturity of our operating and financing lease liabilities as of June 30, 2019.



($ in millions)	Operating Leases			Finance Leases⁽¹⁾			Total
2019, remaining	$	15		$	11		$	26
2020	29			10			39
2021	21			2			23
2022	18			—			18
2023	16			—			16
Thereafter	103			—			103
Total lease payments	202			23			225
Less: Imputed interest	(68		)	(1		)	(69		)
	$	134		$	22		$	156

_________________________


⁽¹⁾	Finance lease payments include $17 million related to residual value guarantees associated with purchase commitments for operating properties in San Francisco, California and New York, New York. See Footnote 11 “Contingencies and Commitments” for additional information regarding these transactions.

Lease Term and Discount Rate



	At June 30, 2019
Weighted-average remaining lease term (in years)
Operating leases	11.4 years
Finance leases	0.7 years
Weighted-average discount rate
Operating leases	6.1%
Finance leases	4.8%

Other Information



($ in millions)	Six Months Ended June 30, 2019
Cash paid for amounts included in measurement of lease liabilities
Operating cash flows for finance leases	$	—
Operating cash flows for operating leases	17
Financing cash flows for finance leases	2
	$	19



12.	LEASES

The following table presents the carrying values of our leases and the classification on our Balance Sheet as of June 30, 2019.



($ in millions)	Balance Sheet Classification	At June 30, 2019
Operating lease assets	Other assets	$	121
Finance lease assets	Property and equipment	22
		$	143

Operating lease liabilities	Accrued liabilities	$	134
Finance lease liabilities	Debt	22
		$	156

The following table presents the lease costs and the classification on our Income Statement for the three and six months ended June 30, 2019.



($ in millions)	Income Statement Classification	Three Months Ended June 30, 2019		Six Months Ended June 30, 2019
Operating lease cost	Marketing and sales expense General and administrative expense	$	9	$	17
Finance lease cost
Amortization of right-of-use assets	Depreciation and amortization	1		2
Interest on lease liabilities	Interest expense	1		1
Variable lease cost	Marketing and sales expense	1		2
		$	12	$	22

The following table presents the maturity of our operating and financing lease liabilities as of June 30, 2019.



($ in millions)	Operating Leases			Finance Leases⁽¹⁾			Total
2019, remaining	$	15		$	11		$	26
2020	29			10			39
2021	21			2			23
2022	18			—			18
2023	16			—			16
Thereafter	103			—			103
Total lease payments	202			23			225
Less: Imputed interest	(68		)	(1		)	(69		)
	$	134		$	22		$	156

_________________________


⁽¹⁾	Finance lease payments include $17 million related to residual value guarantees associated with purchase commitments for operating properties in San Francisco, California and New York, New York. See Footnote 11 “Contingencies and Commitments” for additional information regarding these transactions.

Lease Term and Discount Rate



	At June 30, 2019
Weighted-average remaining lease term (in years)
Operating leases	11.4 years
Finance leases	0.7 years
Weighted-average discount rate
Operating leases	6.1%
Finance leases	4.8%

Other Information



($ in millions)	Six Months Ended June 30, 2019
Cash paid for amounts included in measurement of lease liabilities
Operating cash flows for finance leases	$	—
Operating cash flows for operating leases	17
Financing cash flows for finance leases	2
	$	19

SECURITIZED DEBT

6 Months Ended

Jun. 30, 2019

SECURITIZED DEBT



13.	SECURITIZED DEBT

The following table provides detail on our securitized debt, net of unamortized debt issuance costs.



($ in millions)	At June 30, 2019			At December 31, 2018
Vacation ownership notes receivable securitizations, gross⁽¹⁾	$	1,787		$	1,590
Unamortized debt discount and issuance costs	(15		)	(11		)
	1,772			1,579

Warehouse Credit Facility, gross	—			116
Unamortized debt issuance costs⁽²⁾	—			(1		)
	—			115

Other⁽³⁾	20			20
	$	1,792		$	1,714

_________________________


⁽¹⁾	Interest rates as of June 30, 2019 range from 2.2% to 6.3%, with a weighted average interest rate of 2.9%


⁽²⁾	Excludes $1 million of unamortized debt issuance costs as of June 30, 2019, as no cash borrowings were outstanding on the Warehouse Credit Facility at that time

(3)Non-recourse

Vacation Ownership Notes Receivable Securitizations

The following table shows scheduled future principal payments for our securitized debt as of June 30, 2019.



	Vacation Ownership Notes Receivable Securitizations		Other		Total
($ in millions)	Vacation Ownership Notes Receivable Securitizations		Other		Total
Payments Year
2019, remaining	$	128	$	1	$	129
2020	225		2		227
2021	202		2		204
2022	191		3		194
2023	185		3		188
Thereafter	856		9		865
	$	1,787	$	20	$	1,807

Warehouse Credit Facility

DEBT

6 Months Ended

Jun. 30, 2019

DEBT



14.	DEBT

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



($ in millions)		At June 30, 2019			At December 31, 2018
Senior Notes
	Exchange Notes	$	89		$	89
	Unamortized debt issuance costs	(1		)	(1		)
		88			88

	Senior Unsecured Notes	750			750
	Unamortized debt issuance costs	(8		)	(9		)
		742			741

	IAC Notes	141			141

Corporate Credit Facility
	Term Loan	895			900
	Unamortized debt discount and issuance costs	(11		)	(12		)
		884			888

	Revolving Corporate Credit Facility	80			—
	Unamortized debt issuance costs⁽¹⁾	(4		)	—
		76			—

Convertible notes, gross		230			230
Unamortized debt discount and issuance costs		(27		)	(31		)
		203			199

Non-Interest bearing note payable		—			31
Unamortized debt discount		—			(1		)
		—			30

Finance leases		23			17
		$	2,157		$	2,104

_________________________


⁽¹⁾	Excludes $4 million of unamortized debt issuance costs as of December 31, 2018, as no cash borrowings were outstanding on the Revolving Corporate Credit Facility at that time.

The following table shows scheduled future principal payments for our debt, excluding finance leases, as of June 30, 2019.



	Payments Year
($ in millions)	Remaining 2019		2020		2021		2022		2023		Thereafter		Total
Exchange Notes	$	—	$	—	$	—	$	—	$	89	$	—	$	89
Senior Unsecured Notes	—		—		—		—		—		750		750
IAC Notes	—		—		—		—		141		—		141
Term Loan	4		9		9		9		9		855		895
Revolving Corporate Credit Facility	—		—		—		—		80		—		80
Convertible Notes	—		—		—		230		—		—		230
	$	4	$	9	$	9	$	239	$	319	$	1,605	$	2,185

Senior Notes

Corporate Credit Facility

The following table reflects the activity in accumulated other comprehensive loss related to our derivative instruments during the first half of 2019:



($ in millions)	Derivative Instrument Adjustments
Balance at December 31, 2018	$	(6	)
Other comprehensive loss before reclassifications	(3		)
Reclassification to Income Statement	—
Net other comprehensive loss	(3		)
Balance at March 31, 2019	(9		)
Other comprehensive loss before reclassifications	(13		)
Reclassification to Income Statement	—
Net other comprehensive loss	(13		)
Balance at June 30, 2019	$	(22	)

Convertible Notes

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



($ in millions)	At June 30, 2019			At December 31, 2018
Liability component
Principal amount	$	230		$	230
Unamortized debt discount	(23		)	(26		)
Unamortized debt issuance costs	(4		)	(5		)
Net carrying amount of the liability component	$	203		$	199

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

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



	Three Months Ended				Six Months Ended
($ in millions)	June 30, 2019		June 30, 2018		June 30, 2019		June 30, 2018
Contractual interest expense	$	—	$	1	$	1	$	2
Amortization of debt discount	1		2		3		3
Amortization of debt issuance costs	1		—		1		—
	$	2	$	3	$	5	$	5

Convertible Note Hedges and Warrants

Finance Leases

See Footnote 12 “Leases” for information on our finance leases accounted for under ASC 842.

Restrictions

SHAREHOLDERS' EQUITY

6 Months Ended

Jun. 30, 2019

SHAREHOLDERS' EQUITY



15.	SHAREHOLDERS’ EQUITY

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, 2018	11,687,774	$	793	$	67.85
For the first half of 2019	2,358,808	215		91.12
As of June 30, 2019	14,046,582	$	1,008	$	71.76

Dividends

We declared cash dividends to holders of common stock during the first half of 2019 as follows:



Declaration Date	Shareholder Record Date	Distribution Date	Dividend per Share
February 15, 2019	February 28, 2019	March 14, 2019	$0.45
May 9, 2019	May 23, 2019	June 6, 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

SHARE-BASED COMPENSATION

6 Months Ended

Jun. 30, 2019

Organization, Consolidation and Presentation of Financial Statements [Abstract]

SHARE-BASED COMPENSATION



16.	SHARE-BASED COMPENSATION

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



	Three Months Ended				Six Months Ended
($ in millions)	June 30, 2019		June 30, 2018		June 30, 2019		June 30, 2018
Service-based RSUs	$	6	$	4	$	9	$	6
Performance-based RSUs	2		2		3		3
ILG Acquisition Converted RSUs	2		—		6		—
	10		6		18		9
SARs	1		—		2		1
Stock options	—		—		—		—
	$	11	$	6	$	20	$	10

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



($ in millions)	At June 30, 2019		At December 31, 2018
Service-based RSUs	$	25	$	16
Performance-based RSUs	16		7
ILG Acquisition Converted RSUs	7		15
	48		38
SARs	3		1
Stock options	—		—
	$	51	$	39

Restricted Stock Units

Stock Appreciation Rights

The following table outlines the assumptions used to estimate the fair value of grants during the first half of 2019:



Expected volatility	31.10%
Dividend yield	1.76%
Risk-free rate	2.59%
Expected term (in years)	6.25

Legacy-ILG Deferred Compensation Plan

VARIABLE INTEREST ENTITIES

6 Months Ended

Jun. 30, 2019

VARIABLE INTEREST ENTITIES



17.	VARIABLE INTEREST ENTITIES

Variable Interest Entities Related to Our Vacation Ownership Notes Receivable Securitizations



($ in millions)	Vacation Ownership Notes Receivable Securitizations		Warehouse Credit Facility		Total
Consolidated Assets
Vacation ownership notes receivable, net of reserves	$	1,681	$	—	$	1,681
Interest receivable	12		—		12
Restricted cash⁽¹⁾	80		—		80
Total	$	1,773	$	—	$	1,773
Consolidated Liabilities
Interest payable	$	3	$	—	$	3
Debt	1,787		—		1,787
Total	$	1,790	$	—	$	1,790

_________________________

⁽¹⁾

The following table shows the interest income and expense recognized as a result of our involvement with these variable interest entities during the second quarter of 2019:



($ in millions)	Vacation Ownership Notes Receivable Securitizations		Warehouse Credit Facility		Total
Interest income	$	55	$	4	$	59
Interest expense to investors	$	13	$	1	$	14
Debt issuance cost amortization	$	1	$	1	$	2
Administrative expenses	$	1	$	—	$	1

The following table shows the interest income and expense recognized as a result of our involvement with these variable interest entities during the first half of 2019:



($ in millions)	Vacation Ownership Notes Receivable Securitizations		Warehouse Credit Facility		Total
Interest income	$	107	$	11	$	118
Interest expense to investors	$	26	$	3	$	29
Debt issuance cost amortization	$	2	$	1	$	3
Administrative expenses	$	1	$	—	$	1

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



	Six Months Ended
($ in millions)	June 30, 2019			June 30, 2018
Cash Inflows
Net proceeds from vacation ownership notes receivable securitizations	$	445		$	419
Principal receipts	237			127
Interest receipts	101			52
Reserve release⁽¹⁾	99			1
Total	882			599
Cash Outflows
Principal to investors	(233		)	(117		)
Voluntary repurchases of defaulted vacation ownership notes receivable	(23		)	(15		)
Voluntary clean-up call	—			(22		)
Interest to investors	(22		)	(10		)
Funding of restricted cash^{(2) (3)}	(93		)	(110		)
Total	(371		)	(274		)
Net Cash Flows	$	511		$	325

_________________________

⁽¹⁾

⁽²⁾


⁽³⁾	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:



	Six Months Ended
($ in millions)	June 30, 2019			June 30, 2018
Cash Inflows
Proceeds from vacation ownership notes receivable securitizations	$	124		$	—
Principal receipts	12			—
Interest receipts	12			—
Reserve release	2			—
Total	150			—
Cash Outflows
Principal to investors	(12		)	—
Repayment of Warehouse Credit Facility	(228		)	—
Interest to investors	(4		)	(1		)
Funding of restricted cash	(1		)	—
Total	(245		)	(1		)
Net Cash Flows	$	(95	)	$	(1	)

Other Variable Interest Entities

Deferred Compensation Plan

BUSINESS SEGMENTS

6 Months Ended

Jun. 30, 2019

BUSINESS SEGMENTS



18.	BUSINESS SEGMENTS

•

Revenues



	Three Months Ended				Six Months Ended
($ in millions)	June 30, 2019		June 30, 2018		June 30, 2019		June 30, 2018
Vacation Ownership	$	951	$	595	$	1,882	$	1,166
Exchange & Third-Party Management	115		—		239		—
Total segment revenues	1,066		595		2,121		1,166
Corporate and other	2		—		7		—
	$	1,068	$	595	$	2,128	$	1,166

Adjusted EBITDA and Reconciliation to Net Income Attributable to Common Shareholders



	Three Months Ended						Six Months Ended
($ in millions)	June 30, 2019			June 30, 2018			June 30, 2019			June 30, 2018
Adjusted EBITDA Vacation Ownership	$	208		$	104		$	379		$	192
Adjusted EBITDA Exchange & Third-Party Management	58			—			124			—
Reconciling items:
Corporate and other	(71		)	(28		)	(142		)	(53		)
Interest expense	(35		)	(5		)	(69		)	(9		)
Tax provision	(25		)	(6		)	(40		)	(17		)
Depreciation and amortization	(36		)	(5		)	(73		)	(11		)
Share-based compensation expense	(11		)	(6		)	(20		)	(10		)
Certain items	(39		)	(43		)	(86		)	(45		)
Net income attributable to common shareholders	$	49		$	11		$	73		$	47

Assets



($ in millions)	At June 30, 2019		At December 31, 2018
Vacation Ownership	$	7,358	$	7,275
Exchange & Third-Party Management	1,124		1,182
Total segment assets	8,482		8,457
Corporate and other	541		561
	$	9,023	$	9,018

SUPPLEMENTAL GUARANTOR INFORMATION

6 Months Ended

Jun. 30, 2019

SUPPLEMENTAL GUARANTOR INFORMATION



19.	SUPPLEMENTAL GUARANTOR INFORMATION

IAC Notes

Condensed Consolidating Balance Sheet



	As of June 30, 2019
($ in millions)	MVWC		Interval Acquisition Corp.		IAC Notes Guarantors			Non-Guarantor Subsidiaries		Total Eliminations			MVW Consolidated
Cash and cash equivalents	$	—	$	1	$	27		$	151	$	—		$	179
Restricted cash	—		—		52			285		—			337
Accounts receivable, net	67		2		115			147		(4		)	327
Vacation ownership notes receivable, net	—		—		189			1,909		—			2,098
Inventory	—		—		449			439		—			888
Property and equipment	—		—		230			607		—			837
Goodwill	2,824		—		—			—		—			2,824
Intangibles, net	—		—		1,034			41		—			1,075
Due from parent	—		—		—			1,957		(1,957		)	—
Investments in subsidiaries	2,520		1,942		1,828			—		(6,290		)	—
Other	35		27		245			219		(68		)	458
Total assets	$	5,446	$	1,972	$	4,169		$	5,755	$	(8,319	)	$	9,023

Accounts payable	$	12	$	—	$	40		$	105	$	7		$	164
Advance deposits	—		—		81			105		—			186
Accrued liabilities	5		—		170			274		(32		)	417
Deferred revenue	—		—		145			215		(4		)	356
Payroll and benefits liability	3		—		67			102		—			172
Deferred compensation liability	—		—		7			95		—			102
Securitized debt, net	—		—		—			1,792		—			1,792
Debt, net	203		141		1			1,812		—			2,157
Due to subsidiary	1,957		—		—			—		(1,957		)	—
Other	2		—		38			24		—			64
Deferred taxes	—		—		179			164		—			343
MVW shareholders' equity	3,264		1,831		3,445			1,057		(6,333		)	3,264
Noncontrolling interests	—		—		(4		)	10		—			6
Total liabilities and equity	$	5,446	$	1,972	$	4,169		$	5,755	$	(8,319	)	$	9,023



	As of December 31, 2018⁽¹⁾
($ in millions)	MVWC		Interval Acquisition Corp.		IAC Notes Guarantors			Non-Guarantor Subsidiaries		Total Eliminations			MVW Consolidated
Cash and cash equivalents	$	1	$	11	$	28		$	191	$	—		$	231
Restricted cash	—		—		83			300		—			383
Accounts receivable, net	31		2		107			184		—			324
Vacation ownership notes receivable, net	—		—		176			1,863		—			2,039
Inventory	—		—		440			423		—			863
Property and equipment	—		—		272			679		—			951
Goodwill	2,828		—		—			—		—			2,828
Intangibles, net	—		—		1,065			42		—			1,107
Due from parent	—		—		—			1,834		(1,834		)	—
Investments in subsidiaries	2,681		1,975		1,875			—		(6,531		)	—
Other	27		28		140			172		(75		)	292
Total assets	$	5,568	$	2,016	$	4,186		$	5,688	$	(8,440	)	$	9,018

Accounts payable	$	50	$	—	$	72		$	131	$	—		$	253
Advance deposits	—		—		81			90		—			171
Accrued liabilities	7		—		79			295		(24		)	357
Deferred revenue	—		—		117			206		(4		)	319
Payroll and benefits liability	15		—		77			119		—			211
Deferred compensation liability	—		—		7			86		—			93
Securitized debt, net	—		—		—			1,714		—			1,714
Debt, net	199		141		1			1,763		—			2,104
Due to subsidiary	1,834		—		—			—		(1,834		)	—
Other	2		—		1			9		—			12
Deferred taxes	—		—		155			159		4			318
MVW shareholders' equity	3,461		1,875		3,599			1,108		(6,582		)	3,461
Noncontrolling interests	—		—		(3		)	8		—			5
Total liabilities and equity	$	5,568	$	2,016	$	4,186		$	5,688	$	(8,440	)	$	9,018

_________________________


⁽¹⁾	Amounts have been revised to correct certain immaterial prior period errors as reported in the 2018 Annual Report and have been reclassified to conform to the current year presentation.

Condensed Consolidating Statement of Income



	Three Months Ended June 30, 2019
($ in millions)	MVWC			Interval Acquisition Corp.			IAC Notes Guarantors			Non-Guarantor Subsidiaries			Total Eliminations			MVW Consolidated
Revenues	$	—		$	—		$	398		$	671		$	(1	)	$	1,068
Expenses	(6		)	—			(346		)	(574		)	1			(925		)
Gains (losses) and other income (expense), net	—			—			2			—			—			2
Interest expense	(2		)	(2		)	(3		)	(28		)	—			(35		)
ILG acquisition-related costs	—			—			(14		)	(22		)	—			(36		)
Other	—			—			—			—			—			—
Equity in earnings from unconsolidated entities	—			—			—			—			—			—
Equity in net income of subsidiaries	54			28			27			—			(109		)	—
Provision for income taxes	3			1			(12		)	(16		)	(1		)	(25		)
Net income	49			27			52			31			(110		)	49
Net income attributable to noncontrolling interests	—			—			—			—			—			—
Net income attributable to common shareholders	$	49		$	27		$	52		$	31		$	(110	)	$	49



	Three Months Ended June 30, 2018
($ in millions)	MVWC			Interval Acquisition Corp.		IAC Notes Guarantors		Non-Guarantor Subsidiaries			Total Eliminations			MVW Consolidated
Revenues	$	—		$	—	$	—	$	595		$	—		$	595
Expenses	(2		)	—		—		(544		)	—			(546		)
Gains (losses) and other income (expense), net	—			—		—		(7		)	—			(7		)
Interest expense	(3		)	—		—		(2		)	—			(5		)
ILG acquisition-related costs	—			—		—		(19		)	—			(19		)
Other	—			—		—		(1		)	—			(1		)
Provision for income taxes	1			—		—		(7		)	—			(6		)
Equity in earnings from unconsolidated entities	—			—		—		—			—			—
Equity in net income of subsidiaries	15			—		—		—			(15		)	—
Net income	11			—		—		15			(15		)	11
Net income attributable to noncontrolling interests	—			—		—		—			—			—
Net income attributable to common shareholders	$	11		$	—	$	—	$	15		$	(15	)	$	11



	Six Months Ended June 30, 2019
($ in millions)	MVWC			Interval Acquisition Corp.			IAC Notes Guarantors			Non-Guarantor Subsidiaries			Total Eliminations			MVW Consolidated
Revenues	$	—		$	—		$	797		$	1,340		$	(9	)	$	2,128
Expenses	(9		)	—			(715		)	(1,179		)	9			(1,894		)
Gains (losses) and other income (expense), net	—			—			—			10			—			10
Interest expense	(5		)	(3		)	(3		)	(58		)	—			(69		)
ILG acquisition-related costs	—			—			(14		)	(48		)	—			(62		)
Other	—			—			—			—			—			—
Provision for income taxes	4			1			(22		)	(23		)	—			(40		)
Equity in earnings from unconsolidated entities	—			—			—			—			—			—
Equity in net income of subsidiaries	83			64			62			—			(209		)	—
Net income	73			62			105			42			(209		)	73
Net income attributable to noncontrolling interests	—			—			—			—			—			—
Net income attributable to common shareholders	$	73		$	62		$	105		$	42		$	(209	)	$	73



	Six Months Ended June 30, 2018
($ in millions)	MVWC			Interval Acquisition Corp.		IAC Notes Guarantors		Non-Guarantor Subsidiaries			Total Eliminations			MVW Consolidated
Revenues	$	—		$	—	$	—	$	1,166		$	—		$	1,166
Expenses	(4		)	—		—		(1,060		)	—			(1,064		)
Gains (losses) and other income (expense), net	—			—		—		(6		)	—			(6		)
Interest expense	(5		)	—		—		(4		)	—			(9		)
ILG acquisition-related costs	—			—		—		(20		)	—			(20		)
Other	—			—		—		(3		)	—			(3		)
Provision for income taxes	2			—		—		(19		)	—			(17		)
Equity in earnings from unconsolidated entities	—			—		—		—			—			—
Equity in net income of subsidiaries	54			—		—		—			(54		)	—
Net income	47			—		—		54			(54		)	47
Net income attributable to noncontrolling interests	—			—		—		—			—			—
Net income attributable to common shareholders	$	47		$	—	$	—	$	54		$	(54	)	$	47

Condensed Consolidating Statement of Cash Flows



	Six Months Ended June 30, 2019
($ in millions)	MVWC			Interval Acquisition Corp.			IAC Notes Guarantors			Non-Guarantor Subsidiaries			Total Eliminations			MVW Consolidated
Net cash, cash equivalents and restricted cash provided by (used in) operating activities	$	(71	)	$	(2	)	$	106		$	315		$	(292	)	$	56
Net cash, cash equivalents and restricted cash (used in) provided by investing activities	(4		)	—			22			(3		)	—			15
Net cash, cash equivalents and restricted cash (used in) provided by financing activities	74			(8		)	(160		)	(368		)	292			(170		)
Effect of changes in exchange rates on cash, cash equivalents and restricted cash	—			—			—			1			—			1
Cash, cash equivalents and restricted cash, beginning of period	1			11			111			491			—			614
Cash, cash equivalents and restricted cash, end of period	$	—		$	1		$	79		$	436		$	—		$	516



	Six Months Ended June 30, 2018
($ in millions)	MVWC			Interval Acquisition Corp.		IAC Notes Guarantors		Non-Guarantor Subsidiaries			Total Eliminations			MVW Consolidated
Net cash, cash equivalents and restricted cash provided by (used in) operating activities	$	(45	)	$	—	$	—	$	101		$	2		$	58
Net cash, cash equivalents and restricted cash (used in) provided by investing activities	(12		)	—		—		(7		)	—			(19		)
Net cash, cash equivalents and restricted cash (used in) provided by financing activities	57			—		—		132			(2		)	187
Effect of changes in exchange rates on cash, cash equivalents and restricted cash	—			—		—		1			—			1
Cash, cash equivalents and restricted cash, beginning of period	—			—		—		491			—			491
Cash, cash equivalents and restricted cash, end of period	$	—		$	—	$	—	$	718		$	—		$	718

Senior Unsecured Notes and Exchange Notes

The following tables present consolidating financial information as of June 30, 2019 and December 31, 2018, and for the three and six months ended June 30, 2019 and June 30, 2018 for MVWC on a stand-alone basis, each of MORI and ILG on a stand-alone basis (collectively, the “Issuers” and each individually, an “Issuer”), the Senior Notes Guarantors, the combined non-guarantor subsidiaries of MVW and MVW on a consolidated basis.

Condensed Consolidating Balance Sheet



	As of June 30, 2019
	MVWC		Issuers				Senior Notes Guarantors			Non-Guarantor Subsidiaries		Total Eliminations			MVW Consolidated
($ in millions)	MVWC		MORI		ILG		Senior Notes Guarantors			Non-Guarantor Subsidiaries		Total Eliminations			MVW Consolidated
Cash and cash equivalents	$	—	$	44	$	—	$	29		$	106	$	—		$	179
Restricted cash	—		20		—		54			263		—			337
Accounts receivable, net	67		28		—		131			105		(4		)	327
Vacation ownership notes receivable, net	—		108		—		196			1,794		—			2,098
Inventory	—		304		—		489			95		—			888
Property and equipment	—		274		1		272			290		—			837
Goodwill	2,824		—		—		—			—		—			2,824
Intangibles, net	—		—		—		1,034			41		—			1,075
Due from parent	—		1,957		—		—			—		(1,957		)	—
Investments in subsidiaries	2,520		21		1,828		—			—		(4,369		)	—
Other	35		53		—		359			79		(68		)	458
Total assets	$	5,446	$	2,809	$	1,829	$	2,564		$	2,773	$	(6,398	)	$	9,023

Accounts payable	$	12	$	44	$	—	$	74		$	26	$	8		$	164
Advance deposits	—		76		—		90			20		—			186
Accrued liabilities	5		71		7		177			189		(32		)	417
Deferred revenue	—		4		—		239			117		(4		)	356
Payroll and benefits liability	3		77		—		76			16		—			172
Deferred compensation liability	—		86		—		15			1		—			102
Securitized debt, net	—		—		—		—			1,792		—			1,792
Debt, net	203		1,805		—		149			—		—			2,157
Due to subsidiary	1,957		—		—		—			—		(1,957		)	—
Other	2		22		—		38			2		—			64
Deferred taxes	—		138		—		181			24		—			343
MVW shareholders' equity	3,264		486		1,822		1,529			576		(4,413		)	3,264
Noncontrolling interests	—		—		—		(4		)	10		—			6
Total liabilities and equity	$	5,446	$	2,809	$	1,829	$	2,564		$	2,773	$	(6,398	)	$	9,023



	As of December 31, 2018⁽¹⁾
	MVWC		Issuers				Senior Notes Guarantors			Non-Guarantor Subsidiaries		Total Eliminations			MVW Consolidated
($ in millions)	MVWC		MORI		ILG		Senior Notes Guarantors			Non-Guarantor Subsidiaries		Total Eliminations			MVW Consolidated
Cash and cash equivalents	$	1	$	62	$	2	$	39		$	127	$	—		$	231
Restricted cash	—		19		—		122			242		—			383
Accounts receivable, net	31		20		—		169			104		—			324
Vacation ownership notes receivable, net	—		121		—		183			1,735		—			2,039
Inventory	—		212		—		475			176		—			863
Property and equipment	—		439		1		308			203		—			951
Goodwill	2,828		—		—		—			—		—			2,828
Intangibles, net	—		—		—		1,065			42		—			1,107
Due from parent	—		1,834		—		—			—		(1,834		)	—
Investments in subsidiaries	2,681		93		1,875		—			—		(4,649		)	—
Other	27		53		—		251			36		(75		)	292
Total assets	$	5,568	$	2,853	$	1,878	$	2,612		$	2,665	$	(6,558	)	$	9,018

Accounts payable	$	50	$	13	$	—	$	165		$	25	$	—		$	253
Advance deposits	—		65		—		89			17		—			171
Accrued liabilities	7		96		7		121			150		(24		)	357
Deferred revenue	—		6		—		189			128		(4		)	319
Payroll and benefits liability	15		96		—		84			16		—			211
Deferred compensation liability	—		79		—		13			1		—			93
Securitized debt, net	—		—		—		—			1,714		—			1,714
Debt, net	199		1,726		—		179			—		—			2,104
Due to subsidiary	1,834		—		—		—			—		(1,834		)	—
Other	2		6		—		1			3		—			12
Deferred taxes	—		133		—		157			24		4			318
MVW shareholders' equity	3,461		633		1,871		1,617			579		(4,700		)	3,461
Noncontrolling interests	—		—		—		(3		)	8		—			5
Total liabilities and equity	$	5,568	$	2,853	$	1,878	$	2,612		$	2,665	$	(6,558	)	$	9,018

_________________________


⁽¹⁾	Amounts have been revised to correct certain immaterial prior period errors as reported in the 2018 Annual Report and have been reclassified to conform to the current year presentation.

Condensed Consolidating Statement of Income



	Three Months Ended June 30, 2019
	MVWC			Issuers					Senior Notes Guarantors			Non-Guarantor Subsidiaries			Total Eliminations			MVW Consolidated
($ in millions)	MVWC			MORI			ILG		Senior Notes Guarantors			Non-Guarantor Subsidiaries			Total Eliminations			MVW Consolidated
Revenues	$	—		$	191		$	—	$	695		$	183		$	(1	)	$	1,068
Expenses	(6		)	(200		)	—		(583		)	(137		)	1			(925		)
Gains (losses) and other income (expense), net	—			2			—		—			—			—			2
Interest expense	(2		)	(24		)	—		(5		)	(4		)	—			(35		)
ILG acquisition-related costs	—			(22		)	—		(14		)	—			—			(36		)
Other	—			—			—		—			—			—			—
Provision for income taxes	3			16			—		(35		)	(9		)	—			(25		)
Equity in earnings from unconsolidated entities	—			—			—		—			—			—			—
Equity in net income of subsidiaries	54			62			27		—			—			(143		)	—
Net income	49			25			27		58			33			(143		)	49
Net income attributable to noncontrolling interests	—			—			—		—			—			—			—
Net income attributable to common shareholders	$	49		$	25		$	27	$	58		$	33		$	(143	)	$	49



	Three Months Ended June 30, 2018
	MVWC			Issuers					Senior Notes Guarantors			Non-Guarantor Subsidiaries			Total Eliminations			MVW Consolidated
($ in millions)	MVWC			MORI			ILG		Senior Notes Guarantors			Non-Guarantor Subsidiaries			Total Eliminations			MVW Consolidated
Revenues	$	—		$	194		$	—	$	286		$	115		$	—		$	595
Expenses	(2		)	(189		)	—		(257		)	(98		)	—			(546		)
Gains (losses) and other income (expense), net	—			(7		)	—		—			—			—			(7		)
Interest expense	(3		)	(1		)	—		(1		)	—			—			(5		)
ILG acquisition-related costs	—			(19		)	—		—			—			—			(19		)
Other	—			(1		)	—		—			—			—			(1		)
Provision for income taxes	1			7			—		(12		)	(2		)	—			(6		)
Equity in earnings from unconsolidated entities	—			—			—		—			—			—			—
Equity in net income of subsidiaries	15			16			—		—			—			(31		)	—
Net income	11			—			—		16			15			(31		)	11
Net income attributable to noncontrolling interests	—			—			—		—			—			—			—
Net income attributable to common shareholders	$	11		$	—		$	—	$	16		$	15		$	(31	)	$	11



	Six Months Ended June 30, 2019
	MVWC			Issuers					Senior Notes Guarantors			Non-Guarantor Subsidiaries			Total Eliminations			MVW Consolidated
($ in millions)	MVWC			MORI			ILG		Senior Notes Guarantors			Non-Guarantor Subsidiaries			Total Eliminations			MVW Consolidated
Revenues	$	—		$	350		$	—	$	1,406		$	381		$	(9	)	$	2,128
Expenses	(9		)	(392		)	—		(1,214		)	(288		)	9			(1,894		)
Gains (losses) and other income (expense), net	—			11			—		(1		)	—			—			10
Interest expense	(5		)	(54		)	—		(6		)	(4		)	—			(69		)
ILG acquisition-related costs	—			(48		)	—		(14		)	—			—			(62		)
Other	—			—			—		—			—			—			—
Provision for income taxes	4			40			—		(70		)	(14		)	—			(40		)
Equity in earnings from unconsolidated entities	—			—			—		—			—			—			—
Equity in net income of subsidiaries	83			115			62		—			—			(260		)	—
Net income	73			22			62		101			75			(260		)	73
Net income attributable to noncontrolling interests	—			—			—		—			—			—			—
Net income attributable to common shareholders	$	73		$	22		$	62	$	101		$	75		$	(260	)	$	73



	Six Months Ended June 30, 2018
	MVWC			Issuers					Senior Notes Guarantors			Non-Guarantor Subsidiaries			Total Eliminations			MVW Consolidated
($ in millions)	MVWC			MORI			ILG		Senior Notes Guarantors			Non-Guarantor Subsidiaries			Total Eliminations			MVW Consolidated
Revenues	$	—		$	363		$	—	$	585		$	218		$	—		$	1,166
Expenses	(4		)	(362		)	—		(510		)	(188		)	—			(1,064		)
Gains (losses) and other income (expense), net	—			(6		)	—		—			—			—			(6		)
Interest expense	(5		)	(2		)	—		(2		)	—			—			(9		)
ILG acquisition-related costs	—			(20		)	—		—			—			—			(20		)
Other	—			(3		)	—		—			—			—			(3		)
Provision for income taxes	2			11			—		(27		)	(3		)	—			(17		)
Equity in earnings from unconsolidated entities	—			—			—		—			—			—			—
Equity in net income of subsidiaries	54			46			—		—			—			(100		)	—
Net income	47			27			—		46			27			(100		)	47
Net income attributable to noncontrolling interests	—			—			—		—			—			—			—
Net income attributable to common shareholders	$	47		$	27		$	—	$	46		$	27		$	(100	)	$	47

Condensed Consolidating Statement of Cash Flows



	Six Months Ended June 30, 2019
	MVWC			Issuers						Senior Notes Guarantors			Non-Guarantor Subsidiaries			Total Eliminations			MVW Consolidated
($ in millions)	MVWC			MORI			ILG			Senior Notes Guarantors			Non-Guarantor Subsidiaries			Total Eliminations			MVW Consolidated
Net cash, cash equivalents and restricted cash provided by (used in) operating activities	$	(71	)	$	(31	)	$	—		$	151		$	19		$	(12	)	$	56
Net cash, cash equivalents and restricted cash (used in) provided by investing activities	(4		)	(14		)	—			26			7			—			15
Net cash, cash equivalents and restricted cash (used in) provided by financing activities	74			28			(2		)	(255		)	(27		)	12			(170		)
Effect of changes in exchange rates on cash, cash equivalents and restricted cash	—			—			—			—			1			—			1
Cash, cash equivalents and restricted cash, beginning of period	1			81			2			161			369			—			614
Cash, cash equivalents and restricted cash, end of period	$	—		$	64		$	—		$	83		$	369		$	—		$	516



	Six Months Ended June 30, 2018
	MVWC			Issuers					Senior Notes Guarantors			Non-Guarantor Subsidiaries			Total Eliminations			MVW Consolidated
($ in millions)	MVWC			MORI			ILG		Senior Notes Guarantors			Non-Guarantor Subsidiaries			Total Eliminations			MVW Consolidated
Net cash, cash equivalents and restricted cash provided by (used in) operating activities	$	(45	)	$	111		$	—	$	(2	)	$	(8	)	$	2		$	58
Net cash, cash equivalents and restricted cash (used in) provided by investing activities	(12		)	(4		)	—		—			(3		)	—			(19		)
Net cash, cash equivalents and restricted cash (used in) provided by financing activities	57			49			—		(22		)	105			(2		)	187
Effect of changes in exchange rates on cash, cash equivalents and restricted cash	—			—			—		—			1			—			1
Cash, cash equivalents and restricted cash, beginning of period	—			377			—		30			84			—			491
Cash, cash equivalents and restricted cash, end of period	$	—		$	533		$	—	$	6		$	179		$	—		$	718

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	6 Months Ended
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	Jun. 30, 2019
Accounting Policies [Abstract]
Derivative Instruments	We record derivatives at fair value. The designation of a derivative instrument as a hedge and its ability to meet the hedge accounting criteria determine how we reflect the change in fair value of the derivative instrument in our Financial Statements. A derivative qualifies for hedge accounting if we expect it to be highly effective in offsetting the underlying hedged exposure and we fulfill the hedge documentation requirements. We may designate a hedge as a cash flow hedge, fair value hedge, or a net investment in non-U.S. operations hedge based on the exposure we are hedging. For the effective portion of qualifying hedges, we record changes in fair value in other comprehensive income. We assess the effectiveness of our hedging instruments quarterly, recognize current period hedge ineffectiveness immediately in earnings, and discontinue hedge accounting for any hedge that we no longer consider to be highly effective. We recognize changes in fair value for derivatives not designated as hedges or those not qualifying for hedge accounting in current period earnings. We are exposed to market risk from changes in interest rates, currency exchange rates and debt prices. We manage our exposure to these risks by monitoring available financing alternatives, through pricing policies that may take into account currency exchange rates, and by entering into derivative arrangements. As a matter of policy, we only enter into transactions that we believe will be highly effective at offsetting the underlying risk, and we do not use derivatives for trading or speculative purposes.
New Accounting Pronouncements	New Accounting Standards Accounting Standards Update 2017-12 – “Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities” (“ASU 2017-12”) In August 2017, the FASB issued ASU 2017-12, which amends and simplifies existing guidance in order to allow companies to better portray the economic effects of risk management activities in the financial statements and enhance the transparency and understandability of the results of hedging activities. ASU 2017-12 eliminates the requirement to separately measure and report hedge ineffectiveness and generally requires the entire change in the fair value of a hedging instrument to be presented in the same income statement line as the hedged item. The guidance also eases certain documentation and assessment requirements. This update is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years, with early adoption permitted. The adoption of ASU 2017-12 in the first quarter of 2019 did not have a material impact on our Financial Statements or disclosures. We record derivatives at fair value. The designation of a derivative instrument as a hedge and its ability to meet the hedge accounting criteria determine how we reflect the change in fair value of the derivative instrument in our Financial Statements. A derivative qualifies for hedge accounting if we expect it to be highly effective in offsetting the underlying hedged exposure and we fulfill the hedge documentation requirements. We may designate a hedge as a cash flow hedge, fair value hedge, or a net investment in non-U.S. operations hedge based on the exposure we are hedging. For the effective portion of qualifying hedges, we record changes in fair value in other comprehensive income. We assess the effectiveness of our hedging instruments quarterly, recognize current period hedge ineffectiveness immediately in earnings, and discontinue hedge accounting for any hedge that we no longer consider to be highly effective. We recognize changes in fair value for derivatives not designated as hedges or those not qualifying for hedge accounting in current period earnings. We are exposed to market risk from changes in interest rates, currency exchange rates and debt prices. We manage our exposure to these risks by monitoring available financing alternatives, through pricing policies that may take into account currency exchange rates, and by entering into derivative arrangements. As a matter of policy, we only enter into transactions that we believe will be highly effective at offsetting the underlying risk, and we do not use derivatives for trading or speculative purposes. Accounting Standards Update 2016-02 – “Leases (Topic 842)” (“ASU 2016-02”) In February 2016, the FASB issued ASU 2016-02 to increase transparency and comparability of information regarding an entity’s leasing activities by providing additional information to users of financial statements, which as amended, created Accounting Standards Codification 842, Leases (“ASC 842”). ASU 2016-02 requires a lessee to recognize most leases on its balance sheet by recording a liability for its lease obligation and an asset for its right to use the underlying asset as of the lease commencement date and recognizing expenses on the income statement in a similar manner to the current guidance in Accounting Standards Codification 840, Leases (“ASC 840”). Lessor accounting remains largely unchanged, other than certain targeted improvements intended to align lessor accounting with the lessee accounting model and with the updated revenue recognition guidance. Upon adoption of ASU 2016-02, as amended, leases will be classified as either finance or operating, with classification affecting the geography of expense recognition in the income statement. Additionally, enhanced quantitative and qualitative disclosures regarding leases are required. ASU 2016-02 is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years, with early adoption permitted. As permitted by the amended guidance, we elected to retain the original lease classification and historical accounting for existing or expired contracts of lessees and lessors so that we will not be required to reassess whether such contracts contain leases, the lease classification of any such leases or the initial direct costs of any such leases. We will continue to report comparative periods presented in the financial statements in the period of adoption under GAAP in effect as of such comparative period, resulting in a balance sheet presentation that is not comparable to the prior period in the first year of adoption. Additionally, with respect to our real estate leases, we elected an accounting policy by class of underlying asset to combine lease and non-lease components. We also elected to apply an exemption for short-term leases whereby leases with an initial term of a year or less are not recorded on the balance sheet. We did not utilize the practical expedient which allows the use of hindsight by lessees and lessors in determining the lease term and in assessing impairment of their right-of-use assets. We adopted ASU 2016-02, as amended, during the first quarter of 2019 using the transition method which allows the application of the standard at the adoption date, January 1, 2019. Upon adoption, we recognized a lease obligation of $165 million and a right-of-use asset of $155 million, as well as, a cumulative-effect adjustment of $8 million to the opening balance of retained earnings for our operating and finance leases, primarily related to leases of real estate and other assets. The adoption of ASU 2016-02 did not have a material effect on our Income Statement or Cash Flows for the six months ended June 30, 2019. See Footnote 12 “Leases” for further discussion of the adoption and the impact on our Financial Statements.
Future Adoption of New Accounting Standards	Future Adoption of Accounting Standards Accounting Standards Update 2017-04 – “Intangibles – Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment” (“ASU 2017-04”) In January 2017, the FASB issued ASU 2017-04, which simplifies the subsequent measurement of goodwill by eliminating the second step from the goodwill impairment test. ASU 2017-04 requires an entity to perform its annual or interim goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount, and to recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value, not to exceed the total amount of goodwill allocated to that reporting unit. ASU 2017-04 is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years, and is applied on a prospective basis. Early adoption is permitted for interim or annual impairment tests performed after January 1, 2017. We expect to adopt ASU 2017-04 when required and will follow this guidance during our annual impairment testing to be performed during the fourth quarter of 2019, or earlier upon the occurrence of certain events or substantive changes in circumstances. We do not expect the adoption of ASU 2017-04 to have a material effect on our financial statements or disclosures. Accounting Standards Update 2016-13 – “Financial Instruments – Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments” (“ASU 2016-13”) In June 2016, the FASB issued ASU 2016-13, which replaces the incurred loss impairment methodology in current GAAP with a methodology that reflects expected credit losses. The update is intended to provide financial statement users with more decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date. This update is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years, with early adoption permitted for fiscal years beginning after December 15, 2018. We expect to adopt ASU 2016-13 commencing in fiscal year 2020 and are continuing to evaluate the impact that adoption of this update will have on our financial statements and disclosures.

ACQUISITIONS AND DISPOSITIONS (Tables)

6 Months Ended

Jun. 30, 2019

Consideration Transferred

The following table presents the fair value of each class of consideration transferred at the Acquisition Date, as adjusted at June 30, 2019.



(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	30
	$	4,215

Schedule of Recognized Identified Assets Acquired and Liabilities Assumed



($ in millions)	September 1, 2018 (as reported at December 31, 2018)			Adjustments			September 1, 2018 (as adjusted at June 30, 2019)
Vacation ownership notes receivable	$	753		$	—		$	753
Inventory	474			—			474
Property and equipment	374			(1		)	373
Intangible assets	1,166			(3		)	1,163
Other assets	620			42			662
Deferred revenue	(217		)	—			(217		)
Deferred taxes	(179		)	4			(175		)
Debt	(392		)	—			(392		)
Securitized debt from VIEs	(702		)	—			(702		)
Other liabilities	(511		)	(37		)	(548		)
Net assets acquired	1,386			5			1,391
Goodwill⁽¹⁾	2,828			(4		)	2,824
	$	4,214		$	1		$	4,215

_________________________


⁽¹⁾	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.

Schedule of Goodwill



($ in millions)	Vacation Ownership Segment			Exchange & Third-Party Management Segment		Total Consolidated
Balance at December 31, 2018	$	2,448		$	380	$	2,828
Adjustments	(4		)	—		(4		)
Balance at June 30, 2019	$	2,444		$	380	$	2,824

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 ILG’s identified intangible assets and their related estimated useful lives as of the Acquisition Date.



	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⁾	30		indefinite
Trade names and trademarks	82		indefinite
	$	1,163

_________________________

⁽¹⁾

Business Acquisition, Pro Forma Information

The following table presents the results of Legacy-ILG operations included in our Income Statement for the three and six months ended June 30, 2019.



($ in millions)	Three Months Ended June 30, 2019		Six Months Ended June 30, 2019
Revenue	$	455	$	913
Net income attributable to common shareholders	$	34	$	66



($ in millions, except per share data)	Six Months Ended June 30, 2018
Revenues	$	2,097
Net income	$	71
Net income attributable to common shareholders	$	68
EARNINGS PER SHARE ATTRIBUTABLE TO COMMON SHAREHOLDERS
Basic	$	1.45
Diluted	$	1.42

REVENUE (Tables)

6 Months Ended

Jun. 30, 2019

Disaggregation of Revenue

The following tables detail the sources of revenue by segment for the time periods presented.



	Three Months Ended June 30, 2019
($ in millions)	Vacation Ownership		Exchange & Third-Party Management		Corporate and Other			Total
Sale of vacation ownership products	$	350	$	—	$	—		$	350

Ancillary revenues	66		1		—			67
Management fee revenues	38		11		(3		)	46
Other services revenues	30		63		33			126
Management and exchange	134		75		30			239

Rental	141		17		—			158

Cost reimbursements	258		22		(28		)	252
Revenue from contracts with customers	883		114		2			999

Financing	68		1		—			69
Total Revenues	$	951	$	115	$	2		$	1,068



	Three Months Ended June 30, 2018
($ in millions)	Vacation Ownership		Exchange & Third-Party Management		Corporate and Other		Total
Sale of vacation ownership products	$	205	$	—	$	—	$	205

Ancillary revenues	36		—		—		36
Management fee revenues	26		—		—		26
Other services revenues	16		—		—		16
Management and exchange	78		—		—		78

Rental	74		—		—		74

Cost reimbursements	202		—		—		202
Revenue from contracts with customers	559		—		—		559

Financing	36		—		—		36
Total Revenues	$	595	$	—	$	—	$	595



	Six Months Ended June 30, 2019
($ in millions)	Vacation Ownership		Exchange & Third-Party Management		Corporate and Other			Total
Sale of vacation ownership products	$	651	$	—	$	—		$	651

Ancillary revenues	123		2		—			125
Management fee revenues	75		26		(7		)	94
Other services revenues	61		129		69			259
Management and exchange	259		157		62			478

Rental	288		34		1			323

Cost reimbursements	549		46		(56		)	539
Revenue from contracts with customers	1,747		237		7			1,991

Financing	135		2		—			137
Total Revenues	$	1,882	$	239	$	7		$	2,128



	Six Months Ended June 30, 2018
($ in millions)	Vacation Ownership		Exchange & Third-Party Management		Corporate and Other		Total
Sale of vacation ownership products	$	380	$	—	$	—	$	380

Ancillary revenues	64		—		—		64
Management fee revenues	50		—		—		50
Other services revenues	34		—		—		34
Management and exchange	148		—		—		148

Rental	149		—		—		149

Cost reimbursements	418		—		—		418
Revenue from contracts with customers	1,095		—		—		1,095

Financing	71		—		—		71
Total Revenues	$	1,166	$	—	$	—	$	1,166

The following tables detail the timing of revenue from contracts with customers by segment for the time periods presented.



	Three Months Ended June 30, 2019
($ in millions)	Vacation Ownership		Exchange & Third-Party Management		Corporate and Other		Total
Services transferred over time	$	471	$	55	$	2	$	528
Goods or services transferred at a point in time	412		59		—		471
	$	883	$	114	$	2	$	999



	Three Months Ended June 30, 2018
($ in millions)	Vacation Ownership		Exchange & Third-Party Management		Corporate and Other		Total
Services transferred over time	$	315	$	—	$	—	$	315
Goods or services transferred at a point in time	244		—		—		244
	$	559	$	—	$	—	$	559



	Six Months Ended June 30, 2019
($ in millions)	Vacation Ownership		Exchange & Third-Party Management		Corporate and Other		Total
Services transferred over time	$	978	$	113	$	7	$	1,098
Goods or services transferred at a point in time	769		124		—		893
	$	1,747	$	237	$	7	$	1,991



	Six Months Ended June 30, 2018
($ in millions)	Vacation Ownership		Exchange & Third-Party Management		Corporate and Other		Total
Services transferred over time	$	643	$	—	$	—	$	643
Goods or services transferred at a point in time	452		—		—		452
	$	1,095	$	—	$	—	$	1,095

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 June 30, 2019 or December 31, 2018.



($ in millions)	At June 30, 2019		At December 31, 2018
Receivables
Accounts receivable	$	127	$	164
Vacation ownership notes receivable, net	2,098		2,039
	$	2,225	$	2,203
Contract Liabilities
Advance deposits	$	186	$	171
Deferred revenue	356		319
	$	542	$	490

VACATION OWNERSHIP NOTES RECEIVABLE (Tables)

6 Months Ended

Jun. 30, 2019

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.



	June 30, 2019						December 31, 2018
($ in millions)	Originated		Acquired		Total		Originated		Acquired		Total
Securitized	$	1,209	$	472	$	1,681	$	1,070	$	557	$	1,627
Non-securitized
Eligible for securitization⁽¹⁾	83		11		94		85		22		107
Not eligible for securitization⁽¹⁾	261		62		323		233		72		305
Subtotal	344		73		417		318		94		412
	$	1,553	$	545	$	2,098	$	1,388	$	651	$	2,039

_________________________

⁽¹⁾

Refer to Footnote 7 “Financial Instruments” for a 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.



	Three Months Ended				Six Months Ended
($ in millions)	June 30, 2019		June 30, 2018		June 30, 2019		June 30, 2018
Interest income associated with vacation ownership notes receivable — securitized	$	59	$	27	$	118	$	53
Interest income associated with vacation ownership notes receivable — non-securitized	8		7		14		15
Total interest income associated with vacation ownership notes receivable	$	67	$	34	$	132	$	68

Schedule Of Accretable Yield



($ in millions)	Six Months Ended June 30, 2019
Accretable yield balance at December 31, 2018	$	199
Accretion	(43		)
Reclassification from non-accretable difference	(3		)
Accretable yield balance at June 30, 2019	$	153

Non-accretable difference at June 30, 2019	$	55

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

The following table shows future contractual principal payments, as well as interest rates for our non-securitized and securitized acquired vacation ownership notes receivable, at June 30, 2019.



	Acquired Vacation Ownership Notes Receivable
($ in millions)	Non-Securitized		Securitized		Total
2019, remaining	$	7	$	55	$	62
2020	7		53		60
2021	8		53		61
2022	8		53		61
2023	8		52		60
Thereafter	35		206		241
Balance at June 30, 2019	$	73	$	472	$	545
Weighted average stated interest rate	13.5%		13.4%		13.4%
Range of stated interest rates	0.0% to 17.9%		6.0% to 16.9%		0.0% to 17.9%



	Originated Vacation Ownership Notes Receivable
($ in millions)	Non-Securitized		Securitized		Total
2019, remaining	$	34	$	65	$	99
2020	45		114		159
2021	37		120		157
2022	32		125		157
2023	29		128		157
Thereafter	167		657		824
Balance at June 30, 2019	$	344	$	1,209	$	1,553
Weighted average stated interest rate	11.8%		12.6%		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 Reserve
($ in millions)	Non-Securitized			Securitized			Total
Balance at December 31, 2018	$	61		$	79		$	140
Increase in vacation ownership notes receivable reserve	38			8			46
Securitizations	(35		)	35			—
Clean-up call⁽¹⁾	18			(18		)	—
Write-offs	(23		)	—			(23		)
Defaulted vacation ownership notes receivable repurchase activity⁽²⁾	11			(11		)	—
Balance at June 30, 2019	$	70		$	93		$	163

_________________________


⁽¹⁾	Refers to our voluntary repurchase of previously securitized non-defaulted vacation ownership notes receivable to retire outstanding vacation ownership notes receivable from our Warehouse Credit Facility.

⁽²⁾

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

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.



	Legacy-MVW Vacation Ownership Notes Receivable
($ in millions)	Non-Securitized		Securitized		Total
Investment in vacation ownership notes receivable on non-accrual status at June 30, 2019	$	41	$	8	$	49
Investment in vacation ownership notes receivable on non-accrual status at December 31, 2018	$	36	$	9	$	45
Average investment in vacation ownership notes receivable on non-accrual status during the second quarter of 2019	$	39	$	10	$	49
Average investment in vacation ownership notes receivable on non-accrual status during the second quarter of 2018	$	39	$	8	$	47
Average investment in vacation ownership notes receivable on non-accrual status during the first half of 2019	$	38	$	9	$	47
Average investment in vacation ownership notes receivable on non-accrual status during the first half of 2018	$	39	$	7	$	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 June 30, 2019.



	Legacy-MVW Vacation Ownership Notes Receivable
($ in millions)	Non-Securitized		Securitized		Total
31 – 90 days past due	$	6	$	21	$	27
91 – 150 days past due	5		8		13
Greater than 150 days past due	36		—		36
Total past due	47		29		76
Current	223		1,160		1,383
Total vacation ownership notes receivable	$	270	$	1,189	$	1,459

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-ILG originated vacation ownership notes receivable as of June 30, 2019 and 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
As of June 30, 2019	$	258	$	252	$	3	$	2	$	1	$	—	$	6

As of 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 June 30, 2019.



	Acquired Vacation Ownership Notes Receivable
($ in millions)	700 +		600 - 699		< 600		No Score⁽¹⁾		Total
Westin	$	127	$	70	$	5	$	17	$	219
Sheraton	120		104		19		45		288
Hyatt	17		12		2		—		31
Other	4		1		—		2		7
	$	268	$	187	$	26	$	64	$	545

_________________________


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

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 June 30, 2019.



	Originated Vacation Ownership Notes Receivable
($ in millions)	700 +		600 - 699		< 600		No Score⁽¹⁾		Total
Westin	$	80	$	27	$	2	$	14	$	123
Sheraton	58		36		6		21		121
Hyatt	9		4		1		—		14
	$	147	$	67	$	9	$	35	$	258

_________________________


⁽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)

6 Months Ended

Jun. 30, 2019

Carrying Values and Estimated Fair Values of Financial Assets and Liabilities



	At June 30, 2019						At December 31, 2018
($ in millions)	Carrying Amount			Fair Value			Carrying Amount			Fair Value
Originated vacation ownership notes receivable	$	1,553		$	1,584		$	1,388		$	1,413
Other assets	41			41			66			66
Total financial assets	$	1,594		$	1,625		$	1,454		$	1,479

Securitized debt, net	$	(1,792	)	$	(1,820	)	$	(1,714	)	$	(1,718	)
Exchange Notes, net	(88		)	(89		)	(88		)	(87		)
Senior Unsecured Notes, net	(742		)	(807		)	(741		)	(726		)
IAC Notes	(141		)	(140		)	(141		)	(140		)
Term Loan, net	(884		)	(895		)	(888		)	(887		)
Revolving Corporate Credit Facility, net	(76		)	(76		)	—			—
Convertible notes, net	(203		)	(221		)	(199		)	(198		)
Non-interest bearing note payable, net	—			—			(30		)	(30		)
Total financial liabilities	$	(3,926	)	$	(4,048	)	$	(3,801	)	$	(3,786	)

Originated Vacation Ownership Notes Receivable



	At June 30, 2019				At December 31, 2018
($ in millions)	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Originated vacation ownership notes receivable
Securitized	$	1,209	$	1,238	$	1,070	$	1,093

Eligible for securitization	83		85		85		87
Not eligible for securitization	261		261		233		233
Non-securitized	344		346		318		320
	$	1,553	$	1,584	$	1,388	$	1,413

EARNINGS PER SHARE (Tables)

6 Months Ended

Jun. 30, 2019

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 attributable to common shareholders.



	Three Months Ended				Six Months Ended
(in millions, except per share amounts)	June 30, 2019⁽¹⁾		June 30, 2018⁽¹⁾		June 30, 2019⁽¹⁾		June 30, 2018⁽¹⁾
Computation of Basic Earnings Per Share Attributable to Common Shareholders
Net income attributable to common shareholders	$	49	$	11	$	73	$	47
Shares for basic earnings per share	44.7		26.7		45.1		26.7
Basic earnings per share	$	1.11	$	0.40	$	1.62	$	1.75
Computation of Diluted Earnings Per Share Attributable to Common Shareholders
Net income attributable to common shareholders	$	49	$	11	$	73	$	47
Shares for basic earnings per share	44.7		26.7		45.1		26.7
Effect of dilutive shares outstanding
Employee stock options and SARs	0.3		0.4		0.3		0.4
Restricted stock units	0.2		0.2		0.2		0.2
Shares for diluted earnings per share	45.2		27.3		45.6		27.3
Diluted earnings per share	$	1.10	$	0.39	$	1.61	$	1.71

_______________________________

⁽¹⁾

INVENTORY (Tables)

6 Months Ended

Jun. 30, 2019

Composition of Inventory

The following table shows the composition of our inventory balances:



($ in millions)	At June 30, 2019		At December 31, 2018
Finished goods⁽¹⁾	$	828	$	843
Work-in-progress	48		9
Real estate inventory	876		852
Other	12		11
	$	888	$	863

_________________________

⁽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)

6 Months Ended

Jun. 30, 2019

Composition of Property and Equipment

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



($ in millions)	At June 30, 2019			At December 31, 2018
Land and land improvements	$	373		$	466
Buildings and leasehold improvements	403			404
Furniture, fixtures and other equipment	87			88
Information technology	311			297
Construction in progress	38			32
	1,212			1,287
Accumulated depreciation	(375		)	(336		)
	$	837		$	951

LEASES (Tables)

6 Months Ended

Jun. 30, 2019

Components of Lease Expense

The following table presents the carrying values of our leases and the classification on our Balance Sheet as of June 30, 2019.



($ in millions)	Balance Sheet Classification	At June 30, 2019
Operating lease assets	Other assets	$	121
Finance lease assets	Property and equipment	22
		$	143

Operating lease liabilities	Accrued liabilities	$	134
Finance lease liabilities	Debt	22
		$	156

The following table presents the lease costs and the classification on our Income Statement for the three and six months ended June 30, 2019.



($ in millions)	Income Statement Classification	Three Months Ended June 30, 2019		Six Months Ended June 30, 2019
Operating lease cost	Marketing and sales expense General and administrative expense	$	9	$	17
Finance lease cost
Amortization of right-of-use assets	Depreciation and amortization	1		2
Interest on lease liabilities	Interest expense	1		1
Variable lease cost	Marketing and sales expense	1		2
		$	12	$	22

Lease Term and Discount Rate



	At June 30, 2019
Weighted-average remaining lease term (in years)
Operating leases	11.4 years
Finance leases	0.7 years
Weighted-average discount rate
Operating leases	6.1%
Finance leases	4.8%

Other Information



($ in millions)	Six Months Ended June 30, 2019
Cash paid for amounts included in measurement of lease liabilities
Operating cash flows for finance leases	$	—
Operating cash flows for operating leases	17
Financing cash flows for finance leases	2
	$	19

Maturities of Operating Lease Liabilities

The following table presents the maturity of our operating and financing lease liabilities as of June 30, 2019.



($ in millions)	Operating Leases			Finance Leases⁽¹⁾			Total
2019, remaining	$	15		$	11		$	26
2020	29			10			39
2021	21			2			23
2022	18			—			18
2023	16			—			16
Thereafter	103			—			103
Total lease payments	202			23			225
Less: Imputed interest	(68		)	(1		)	(69		)
	$	134		$	22		$	156

_________________________

⁽¹⁾

Maturities of Financing Lease Liabilities

The following table presents the maturity of our operating and financing lease liabilities as of June 30, 2019.



($ in millions)	Operating Leases			Finance Leases⁽¹⁾			Total
2019, remaining	$	15		$	11		$	26
2020	29			10			39
2021	21			2			23
2022	18			—			18
2023	16			—			16
Thereafter	103			—			103
Total lease payments	202			23			225
Less: Imputed interest	(68		)	(1		)	(69		)
	$	134		$	22		$	156

_________________________

⁽¹⁾

SECURITIZED DEBT (Tables)

6 Months Ended

Jun. 30, 2019

Schedule of Securitized Vacation Ownership Debt

The following table provides detail on our securitized debt, net of unamortized debt issuance costs.



($ in millions)	At June 30, 2019			At December 31, 2018
Vacation ownership notes receivable securitizations, gross⁽¹⁾	$	1,787		$	1,590
Unamortized debt discount and issuance costs	(15		)	(11		)
	1,772			1,579

Warehouse Credit Facility, gross	—			116
Unamortized debt issuance costs⁽²⁾	—			(1		)
	—			115

Other⁽³⁾	20			20
	$	1,792		$	1,714

_________________________


⁽¹⁾	Interest rates as of June 30, 2019 range from 2.2% to 6.3%, with a weighted average interest rate of 2.9%


⁽²⁾	Excludes $1 million of unamortized debt issuance costs as of June 30, 2019, as no cash borrowings were outstanding on the Warehouse Credit Facility at that time

(3)Non-recourse

The following table shows scheduled future principal payments for our securitized debt as of June 30, 2019.



	Vacation Ownership Notes Receivable Securitizations		Other		Total
($ in millions)	Vacation Ownership Notes Receivable Securitizations		Other		Total
Payments Year
2019, remaining	$	128	$	1	$	129
2020	225		2		227
2021	202		2		204
2022	191		3		194
2023	185		3		188
Thereafter	856		9		865
	$	1,787	$	20	$	1,807

The following table shows scheduled future principal payments for our debt, excluding finance leases, as of June 30, 2019.



	Payments Year
($ in millions)	Remaining 2019		2020		2021		2022		2023		Thereafter		Total
Exchange Notes	$	—	$	—	$	—	$	—	$	89	$	—	$	89
Senior Unsecured Notes	—		—		—		—		—		750		750
IAC Notes	—		—		—		—		141		—		141
Term Loan	4		9		9		9		9		855		895
Revolving Corporate Credit Facility	—		—		—		—		80		—		80
Convertible Notes	—		—		—		230		—		—		230
	$	4	$	9	$	9	$	239	$	319	$	1,605	$	2,185

DEBT (Tables)

6 Months Ended

Jun. 30, 2019

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 June 30, 2019			At December 31, 2018
Senior Notes
	Exchange Notes	$	89		$	89
	Unamortized debt issuance costs	(1		)	(1		)
		88			88

	Senior Unsecured Notes	750			750
	Unamortized debt issuance costs	(8		)	(9		)
		742			741

	IAC Notes	141			141

Corporate Credit Facility
	Term Loan	895			900
	Unamortized debt discount and issuance costs	(11		)	(12		)
		884			888

	Revolving Corporate Credit Facility	80			—
	Unamortized debt issuance costs⁽¹⁾	(4		)	—
		76			—

Convertible notes, gross		230			230
Unamortized debt discount and issuance costs		(27		)	(31		)
		203			199

Non-Interest bearing note payable		—			31
Unamortized debt discount		—			(1		)
		—			30

Finance leases		23			17
		$	2,157		$	2,104

_________________________


⁽¹⁾	Excludes $4 million of unamortized debt issuance costs as of December 31, 2018, as no cash borrowings were outstanding on the Revolving Corporate Credit Facility at that time.

Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss)

The following table shows scheduled future principal payments for our securitized debt as of June 30, 2019.



	Vacation Ownership Notes Receivable Securitizations		Other		Total
($ in millions)	Vacation Ownership Notes Receivable Securitizations		Other		Total
Payments Year
2019, remaining	$	128	$	1	$	129
2020	225		2		227
2021	202		2		204
2022	191		3		194
2023	185		3		188
Thereafter	856		9		865
	$	1,787	$	20	$	1,807

The following table shows scheduled future principal payments for our debt, excluding finance leases, as of June 30, 2019.



	Payments Year
($ in millions)	Remaining 2019		2020		2021		2022		2023		Thereafter		Total
Exchange Notes	$	—	$	—	$	—	$	—	$	89	$	—	$	89
Senior Unsecured Notes	—		—		—		—		—		750		750
IAC Notes	—		—		—		—		141		—		141
Term Loan	4		9		9		9		9		855		895
Revolving Corporate Credit Facility	—		—		—		—		80		—		80
Convertible Notes	—		—		—		230		—		—		230
	$	4	$	9	$	9	$	239	$	319	$	1,605	$	2,185

The following table reflects the activity in accumulated other comprehensive loss related to our derivative instruments during the first half of 2019:



($ in millions)	Derivative Instrument Adjustments
Balance at December 31, 2018	$	(6	)
Other comprehensive loss before reclassifications	(3		)
Reclassification to Income Statement	—
Net other comprehensive loss	(3		)
Balance at March 31, 2019	(9		)
Other comprehensive loss before reclassifications	(13		)
Reclassification to Income Statement	—
Net other comprehensive loss	(13		)
Balance at June 30, 2019	$	(22	)

Convertible Debt

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



($ in millions)	At June 30, 2019			At December 31, 2018
Liability component
Principal amount	$	230		$	230
Unamortized debt discount	(23		)	(26		)
Unamortized debt issuance costs	(4		)	(5		)
Net carrying amount of the liability component	$	203		$	199

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

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



	Three Months Ended				Six Months Ended
($ in millions)	June 30, 2019		June 30, 2018		June 30, 2019		June 30, 2018
Contractual interest expense	$	—	$	1	$	1	$	2
Amortization of debt discount	1		2		3		3
Amortization of debt issuance costs	1		—		1		—
	$	2	$	3	$	5	$	5

SHAREHOLDERS' EQUITY (Tables)

6 Months Ended

Jun. 30, 2019

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, 2018	11,687,774	$	793	$	67.85
For the first half of 2019	2,358,808	215		91.12
As of June 30, 2019	14,046,582	$	1,008	$	71.76

Cash Dividend Declared

We declared cash dividends to holders of common stock during the first half of 2019 as follows:



Declaration Date	Shareholder Record Date	Distribution Date	Dividend per Share
February 15, 2019	February 28, 2019	March 14, 2019	$0.45
May 9, 2019	May 23, 2019	June 6, 2019	$0.45

SHARE-BASED COMPENSATION (Tables)

6 Months Ended

Jun. 30, 2019

Schedule of Compensation Cost for Share-based Payment Arrangements, Allocation of Share-based Compensation Costs by Plan

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



	Three Months Ended				Six Months Ended
($ in millions)	June 30, 2019		June 30, 2018		June 30, 2019		June 30, 2018
Service-based RSUs	$	6	$	4	$	9	$	6
Performance-based RSUs	2		2		3		3
ILG Acquisition Converted RSUs	2		—		6		—
	10		6		18		9
SARs	1		—		2		1
Stock options	—		—		—		—
	$	11	$	6	$	20	$	10

Schedule of Unrecognized Compensation Cost, Nonvested Awards

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



($ in millions)	At June 30, 2019		At December 31, 2018
Service-based RSUs	$	25	$	16
Performance-based RSUs	16		7
ILG Acquisition Converted RSUs	7		15
	48		38
SARs	3		1
Stock options	—		—
	$	51	$	39

Assumptions Used to Estimate Fair Value of Grants

The following table outlines the assumptions used to estimate the fair value of grants during the first half of 2019:



Expected volatility	31.10%
Dividend yield	1.76%
Risk-free rate	2.59%
Expected term (in years)	6.25

VARIABLE INTEREST ENTITIES (Tables)

6 Months Ended

Jun. 30, 2019

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Classifications of Consolidated VIE Assets and Liabilities



($ in millions)	Vacation Ownership Notes Receivable Securitizations		Warehouse Credit Facility		Total
Consolidated Assets
Vacation ownership notes receivable, net of reserves	$	1,681	$	—	$	1,681
Interest receivable	12		—		12
Restricted cash⁽¹⁾	80		—		80
Total	$	1,773	$	—	$	1,773
Consolidated Liabilities
Interest payable	$	3	$	—	$	3
Debt	1,787		—		1,787
Total	$	1,790	$	—	$	1,790

_________________________

⁽¹⁾

Interest Income and Expense Recognized as a Result of Our Involvement with Variable Interest Entities

The following table shows the interest income and expense recognized as a result of our involvement with these variable interest entities during the second quarter of 2019:



($ in millions)	Vacation Ownership Notes Receivable Securitizations		Warehouse Credit Facility		Total
Interest income	$	55	$	4	$	59
Interest expense to investors	$	13	$	1	$	14
Debt issuance cost amortization	$	1	$	1	$	2
Administrative expenses	$	1	$	—	$	1

The following table shows the interest income and expense recognized as a result of our involvement with these variable interest entities during the first half of 2019:



($ in millions)	Vacation Ownership Notes Receivable Securitizations		Warehouse Credit Facility		Total
Interest income	$	107	$	11	$	118
Interest expense to investors	$	26	$	3	$	29
Debt issuance cost amortization	$	2	$	1	$	3
Administrative expenses	$	1	$	—	$	1

Cash Flows Between Company and Variable Interest Entities

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



	Six Months Ended
($ in millions)	June 30, 2019			June 30, 2018
Cash Inflows
Proceeds from vacation ownership notes receivable securitizations	$	124		$	—
Principal receipts	12			—
Interest receipts	12			—
Reserve release	2			—
Total	150			—
Cash Outflows
Principal to investors	(12		)	—
Repayment of Warehouse Credit Facility	(228		)	—
Interest to investors	(4		)	(1		)
Funding of restricted cash	(1		)	—
Total	(245		)	(1		)
Net Cash Flows	$	(95	)	$	(1	)

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



	Six Months Ended
($ in millions)	June 30, 2019			June 30, 2018
Cash Inflows
Net proceeds from vacation ownership notes receivable securitizations	$	445		$	419
Principal receipts	237			127
Interest receipts	101			52
Reserve release⁽¹⁾	99			1
Total	882			599
Cash Outflows
Principal to investors	(233		)	(117		)
Voluntary repurchases of defaulted vacation ownership notes receivable	(23		)	(15		)
Voluntary clean-up call	—			(22		)
Interest to investors	(22		)	(10		)
Funding of restricted cash^{(2) (3)}	(93		)	(110		)
Total	(371		)	(274		)
Net Cash Flows	$	511		$	325

_________________________

⁽¹⁾

⁽²⁾

⁽³⁾

- Definition

+ References + Details

BUSINESS SEGMENTS (Tables)

6 Months Ended

Jun. 30, 2019

Adjusted EBITDA Reconciling Items from Segments

Revenues



	Three Months Ended				Six Months Ended
($ in millions)	June 30, 2019		June 30, 2018		June 30, 2019		June 30, 2018
Vacation Ownership	$	951	$	595	$	1,882	$	1,166
Exchange & Third-Party Management	115		—		239		—
Total segment revenues	1,066		595		2,121		1,166
Corporate and other	2		—		7		—
	$	1,068	$	595	$	2,128	$	1,166

Adjusted EBITDA and Reconciliation to Net Income Attributable to Common Shareholders



	Three Months Ended						Six Months Ended
($ in millions)	June 30, 2019			June 30, 2018			June 30, 2019			June 30, 2018
Adjusted EBITDA Vacation Ownership	$	208		$	104		$	379		$	192
Adjusted EBITDA Exchange & Third-Party Management	58			—			124			—
Reconciling items:
Corporate and other	(71		)	(28		)	(142		)	(53		)
Interest expense	(35		)	(5		)	(69		)	(9		)
Tax provision	(25		)	(6		)	(40		)	(17		)
Depreciation and amortization	(36		)	(5		)	(73		)	(11		)
Share-based compensation expense	(11		)	(6		)	(20		)	(10		)
Certain items	(39		)	(43		)	(86		)	(45		)
Net income attributable to common shareholders	$	49		$	11		$	73		$	47

Reconciliation of Assets from Segments

Assets



($ in millions)	At June 30, 2019		At December 31, 2018
Vacation Ownership	$	7,358	$	7,275
Exchange & Third-Party Management	1,124		1,182
Total segment assets	8,482		8,457
Corporate and other	541		561
	$	9,023	$	9,018

SUPPLEMENTAL GUARANTOR INFORMATION (Tables)

6 Months Ended

Jun. 30, 2019

Jun. 30, 2018