vac-20221031
0001524358false00015243582022-10-312022-10-31

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
_________________________
FORM 8-K
_________________________
Current Report
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) October 31, 2022
_________________________
Marriott Vacations Worldwide Corporation
(Exact name of registrant as specified in its charter)
 _________________________
Delaware 001-35219 45-2598330
(State or other jurisdiction (Commission (IRS Employer
of incorporation) File Number) Identification No.)
9002 San Marco CourtOrlando,FL32819
(Address of principal executive offices)(Zip Code)
Registrant’s telephone number, including area code (407) 206-6000
N/A
(Former name or former address, if changed since last report)
_________________________
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common Stock, $0.01 Par ValueVACNew York Stock Exchange
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company  
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.



Item 2.02 Results of Operations and Financial Condition
On October 31, 2022, Marriott Vacations Worldwide Corporation (the “Company,” “we” or “our”) issued a press release reporting financial results for the quarter ended September 30, 2022. A copy of the press release is attached as Exhibit 99.1 hereto and incorporated herein by reference.
As provided in General Instruction B.2 of Form 8-K, the information contained in Item 2.02 of this Current Report on Form 8-K shall not be deemed to be “filed” for purposes of Section 18 of the Exchange Act of 1934, as amended, nor shall any such information be deemed to be incorporated by reference in any filing under the Securities Act of 1933, as amended.
Item 9.01 Financial Statements and Exhibits.
(d) The following exhibits are being furnished herewith: 
Exhibit NumberDescription
Press release reporting financial results for the quarter ended September 30, 2022
101Cover Page Interactive Data File (embedded within the Inline XBRL document)
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 
MARRIOTT VACATIONS WORLDWIDE CORPORATION
(Registrant)
Dated: October 31, 2022By:/s/ Anthony E. Terry
Name:Anthony E. Terry
Title:Executive Vice President and Chief Financial Officer

1
Document
Exhibit 99.1
https://cdn.kscope.io/75ec618199977fdcfd3b07d10bc4e720-mvwbannerforpressreleasea.jpg
Neal Goldner
Investor Relations
Marriott Vacations Worldwide Corporation
407.206.6149
Neal.Goldner@mvwc.com

Stephanie Grant
Global Communications
Marriott Vacations Worldwide Corporation
858.752.7444
Stephanie.Grant@mvwc.com
Marriott Vacations Worldwide (“MVW”) Reports Third Quarter 2022 Financial Results
ORLANDO, Fla. – October 31, 2022 – Marriott Vacations Worldwide Corporation (NYSE: VAC) (the “Company”) reported third quarter 2022 financial results.
In the third quarter of 2022, in connection with the unification of the Company’s Marriott-, Westin-, and Sheraton-branded vacation ownership products under the Abound by Marriott Vacations program, the Company aligned its contract terms for the sale of vacation ownership products, resulting in the prospective acceleration of revenue from the sale of Marriott-branded vacation ownership interests. In addition, the Company aligned its reserve methodology on vacation ownership notes receivable for these brands, resulting in a decrease in the reserve for the acquired notes offset by an increase in the reserve for the originated notes. Together, these changes are hereinafter referred to as the “Alignment.” As a result of the Alignment, the Company reported an additional $33 million of Net income attributable to common shareholders and an additional $44 million of Adjusted EBITDA during the quarter. The tables and financial schedules below illustrate the impact of the Alignment on the Company’s reported results.
Third Quarter 2022 Highlights:
Consolidated Vacation Ownership contract sales were $483 million, a 27% increase compared to the third quarter of 2021, and VPG increased 1% to $4,353.
Net income attributable to common shareholders was $109 million, or $2.53 fully diluted earnings per share; excluding the impact of the Alignment, net income attributable to common shareholders was $76 million, or $1.79 fully diluted earnings per share.
Adjusted net income attributable to common shareholders was $131 million, or $3.02 adjusted fully diluted earnings per share; excluding the impact of the Alignment, adjusted net income attributable to common shareholders was $98 million, or $2.28 adjusted fully diluted earnings per share.
Adjusted EBITDA was $284 million; excluding the impact of the Alignment, Adjusted EBITDA was $240 million, an increase of 17% compared to the prior year.
The Company repurchased nearly 1.7 million shares of its common stock for $216 million during the quarter at an average price per share of $129.
“Despite the challenging macroeconomic backdrop, we had a very strong third quarter, growing contract sales by 27% compared to the prior year driven by strong tour growth,” said Stephen P. Weisz, chief executive officer. “With continued growth in our business, we’ve returned more than $600 million in cash to shareholders this year through a combination of share repurchases and dividends.”


Marriott Vacations Worldwide Reports Third Quarter 2022 Financial Results / 2
Third Quarter 2022 Results
The tables below illustrate the impact of the Alignment on the Company’s reported results. In the tables below “*” denotes non-GAAP financial measures and “NM” is not meaningful. Please see “Non-GAAP Financial Measures” for additional information about our reasons for providing these alternative financial measures and limitations on their use.
Consolidated
Three Months Ended September 30, 2022Three Months Ended September 30, 2021Change
As ReportedImpact of AlignmentAs Adjusted*As ReportedAs Adjusted*
($ in millions)RevenueReserveCombined$%$%
Net income attributable to common shareholders$109 $(29)$(4)$(33)$76 $10 $99 NM$66 NM
Adjusted net income attributable to common shareholders*$131 $(29)$(4)$(33)$98 $70 $61 87%$28 41%
Adjusted EBITDA*$284 $(39)$(5)$(44)$240 $205 $79 38%$35 17%
Vacation Ownership
Three Months Ended September 30, 2022Three Months Ended September 30, 2021Change
As ReportedImpact of AlignmentAs Adjusted*As ReportedAs Adjusted*
($ in millions)RevenueReserveCombined$%$%
Sale of vacation ownership products$444 $(46)$19 $(27)$417 $330 $114 34%$87 26%
Development profit$161 $(39)$14 $(25)$136 $93 $68 73%$43 47%
Financing profit$69 $— $(19)$(19)$50 $47 $22 47%$6%
Segment financial results attributable to common shareholders$270 $(29)$(4)$(33)$237 $185 $85 46%$52 29%
Segment margin33.5%30.6%28.6%4.9 pts2.0 pts
Segment Adjusted EBITDA*$299 $(39)$(5)$(44)$255 $215 $84 39%$40 19%
Segment Adjusted EBITDA margin*37.1%32.7%33.2%3.9 pts(0.5 pts)
Exchange & Third-Party Management
Revenues excluding cost reimbursements decreased 3% in the third quarter of 2022 compared to the prior year and increased 11% excluding the sale of VRI Americas in April of 2022. Interval International active members increased 21% to 1.6 million and Average revenue per member decreased 9% compared to the prior year as the new accounts Interval International added earlier this year continue to ramp up.
Segment financial results attributable to common shareholders were $29 million in the third quarter of 2022 and Segment margin was 44%. Segment Adjusted EBITDA increased $4 million to $39 million compared to the prior year, with Segment Adjusted EBITDA margin increasing 500 basis points compared to the third quarter of 2021 to 58%.
Corporate and Other
General and administrative costs increased $8 million in the third quarter of 2022 compared to the prior year primarily as a result of higher compensation and transformational initiative spending, including procurement and artificial intelligence capabilities.


Marriott Vacations Worldwide Reports Third Quarter 2022 Financial Results / 3
Balance Sheet and Liquidity
The Company ended the quarter with approximately $1.0 billion in liquidity, including $294 million of cash and cash equivalents, $142 million of gross notes receivable that were eligible for securitization, and $519 million of available capacity under its revolving corporate credit facility.
At the end of the third quarter of 2022, the Company had $2.7 billion of corporate debt and $1.8 billion of non-recourse debt related to its securitized notes receivable.
Full Year 2022 Outlook (in millions, except per share amounts)
The Financial Schedules that follow reconcile the non-GAAP financial measures set forth below to the following full year 2022 expected GAAP results for the Company.
The Company is providing updated guidance, which includes the impact of the Alignment as reflected in the chart below, for the full year 2022. In the table below “*” denotes non-GAAP financial measures. Please see “Non-GAAP Financial Measures” for additional information about our reasons for providing these alternative financial measures and limitations on their use.
(in millions, except per share amounts)2022 GuidanceImpact of Alignment
Income before income taxes attributable to common shareholders$564to$579$50
Net income attributable to common shareholders$390to$400$37
Earnings per share - diluted$8.76to$8.98$0.82
Net cash, cash equivalents and restricted cash provided by operating activities$575to$590$—
Contract sales$1,820to$1,860$—
Adjusted EBITDA*$950to$975$50
Adjusted pretax net income*$660to$685$50
Adjusted net income attributable to common shareholders*$455to$475$37
Adjusted earnings per share - diluted*$10.20to$10.64$0.82
Adjusted free cash flow*$670to$730$—
Non-GAAP Financial Information
Non-GAAP financial measures are reconciled and adjustments are shown and described in further detail in the Financial Schedules that follow. Please see “Non-GAAP Financial Measures” for additional information about our reasons for providing these alternative financial measures and limitations on their use. In addition to the foregoing non-GAAP financial measures, we present certain key metrics as performance measures which are further described in our most recent Annual Report on Form 10-K, and which may be updated in our periodic filings with the U.S. Securities and Exchange Commission.
Third Quarter 2022 Financial Results Conference Call
The Company will hold a conference call on November 1, 2022 at 8:30 a.m. ET to discuss these financial results and provide an update on business conditions. Participants may access the call by dialing (877) 407-8289 or (201) 689-8341 for international callers. A live webcast of the call will also be available in the Investor Relations section of the Company's website at ir.mvwc.com. An audio replay of the conference call will be available for 30 days on the Company’s website.


Marriott Vacations Worldwide Reports Third Quarter 2022 Financial Results / 4
About Marriott Vacations Worldwide Corporation
Marriott Vacations Worldwide Corporation is a leading global vacation company that offers vacation ownership, exchange, rental and resort and property management, along with related businesses, products and services. The Company has over 120 vacation ownership resorts and approximately 700,000 owner families in a diverse portfolio that includes some of the most iconic vacation ownership brands. The Company also operates exchange networks and membership programs comprised of nearly 3,200 affiliated resorts in over 90 countries and territories, and provides management services to other resorts and lodging properties. As a leader and innovator in the vacation industry, the Company upholds the highest standards of excellence in serving its customers, investors and associates while maintaining exclusive, long-term relationships with Marriott International, Inc. and Hyatt Hotels Corporation for the development, sales and marketing of vacation ownership products and services. For more information, please visit www.marriottvacationsworldwide.com.
Note on forward-looking statements
This press release and accompanying schedules contain “forward-looking statements” within the meaning of federal securities laws, including statements about expectations for future growth and projections for full year 2022. Forward-looking statements include all statements that are not historical facts and can be identified by the use of forward-looking terminology such as the words “believe,” “expect,” “plan,” “intend,” “anticipate,” “estimate,” “predict,” “potential,” “continue,” “may,” “might,” “should,” “could” or the negative of these terms or similar expressions. The Company cautions you that these statements are not guarantees of future performance and are subject to numerous and evolving risks and uncertainties that we may not be able to predict or assess, such as: the continuing effects of the COVID-19 pandemic or future health crises, including quarantines or other government-imposed travel or health-related restrictions; the length and severity of the COVID-19 pandemic or future health crises, including short and longer-term impacts on consumer confidence and demand for travel, and the pace of recovery following the COVID-19 pandemic or future health crises or as effective treatments or vaccines against variants of the COVID-19 virus or future health crises become widely available; variations in demand for vacation ownership and exchange products and services; worker absenteeism; price inflation; global supply chain disruptions; volatility in the international and national economy and credit markets, including as a result of the COVID-19 pandemic and the ongoing conflict between Russia and Ukraine and related sanctions and other measures; our ability to attract and retain our global workforce; competitive conditions; the availability of capital to finance growth; the effects of steps we have taken and may continue to take to reduce operating costs and/or enhance health and cleanliness protocols at our resorts due to the COVID-19 pandemic; political or social strife; and other matters referred to under the heading “Risk Factors” in our most recent Annual Report on Form 10-K, and which may be updated in our periodic filings with the U.S. Securities and Exchange Commission. All forward-looking statements in this press release are made as of the date of this press release and the Company undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise, except as required by law. There may be other risks and uncertainties that we cannot predict at this time or that we currently do not expect will have a material adverse effect on our financial position, results of operations or cash flows. Any such risks could cause our results to differ materially from those we express in forward-looking statements.
Financial Schedules Follow



MARRIOTT VACATIONS WORLDWIDE CORPORATION
FINANCIAL SCHEDULES
QUARTER 3, 2022
TABLE OF CONTENTS
 
Summary Financial Information
A-1
Adjusted EBITDA by Segment
A-2
Consolidated Statements of Income
A-3
Revenues and Profit by Segment
A-5
Adjusted Net Income Attributable to Common Shareholders and Adjusted Earnings Per Share - Diluted
A-9
Adjusted EBITDA
A-10
Consolidated Contract Sales to Adjusted Development Profit
A-11
Vacation Ownership and Exchange & Third-Party Management Segment Adjusted EBITDA
A-13
Consolidated Balance Sheets
A-14
Consolidated Statements of Cash Flows
A-15
2022 Outlook
Adjusted Net Income Attributable to Common Shareholders, Adjusted Earnings Per Share - Diluted
and Adjusted EBITDA
A-17
Adjusted Free Cash Flow
A-18
Quarterly Operating Metrics
A-19
Non-GAAP Financial Measures
A-20



A-1
MARRIOTT VACATIONS WORLDWIDE CORPORATION
SUMMARY FINANCIAL INFORMATION
(In millions, except VPG, tours, total active members, average revenue per member and per share amounts)
(Unaudited)

Three Months EndedChange %Nine Months EndedChange %
September 30, 2022September 30, 2021September 30, 2022September 30, 2021
Key Measures
Total consolidated contract sales$483 $380 27%$1,383 $968 43%
VPG$4,353 $4,300 1%$4,544 $4,377 4%
Tours104,000 84,098 24%285,362 209,869 36%
Total active members (000's)(1)
1,591 1,313 21%1,591 1,313 21%
Average revenue per member(1)
$38.91 $42.95 (9%)$122.30 $136.57 (10%)
GAAP Measures
Revenues$1,252 $1,052 19%$3,468 $2,790 24%
Income before income taxes and noncontrolling interests$169 $58 NM$437 $57 NM
Net income (loss) attributable to common shareholders$109 $10 NM$303 $(12)NM
Earnings (loss) per share - diluted$2.53 $0.23 NM$6.68 $(0.28)NM
Non-GAAP Measures*
Adjusted EBITDA$284 $205 38%$727 $438 66%
Adjusted pretax income$207 $118 74%$508 $165 NM
Adjusted net income attributable to common shareholders $131 $70 87%$343 $87 NM
Adjusted earnings per share - diluted $3.02 $1.60 89%$7.53 $2.01 NM
Financial Measures, Excluding the Impact of Alignment*
Revenues$1,225 $1,052 16%$3,441 $2,790 23%
Income before income taxes and noncontrolling interests$125 $58 NM$393 $57 NM
Net income (loss) attributable to common shareholders$76 $10 NM$270 $(12)NM
Earnings (loss) per share - diluted$1.79 $0.23 NM$5.99 $(0.28)NM
Adjusted EBITDA$240 $205 17%$683 $438 56%
Adjusted pretax income$163 $118 38%$464 $165 NM
Adjusted net income attributable to common shareholders$98 $70 41%$310 $87 NM
Adjusted earnings per share - diluted$2.28 $1.60 43%$6.83 $2.01 NM
(1) Includes members at the end of each period for the Interval International exchange network only.
* Denotes non-GAAP financial measures. Please see “Non-GAAP Financial Measures” for additional information about our reasons for providing these alternative financial measures and limitations on their use.
NM = Not meaningful.




A-2
MARRIOTT VACATIONS WORLDWIDE CORPORATION
ADJUSTED EBITDA BY SEGMENT
(In millions)
(Unaudited)
Three Months Ended September 30, 2022Three
Months Ended September 30, 2021
Change
As ReportedImpact of AlignmentAs Adjusted*As ReportedAs Adjusted*
RevenueReserveCombined
Vacation Ownership$299 $(39)$(5)$(44)$255 $215 39%19%
Exchange & Third-Party Management39 — — — 39 35 7%7%
Segment Adjusted EBITDA*338 (39)(5)(44)294 250 35%17%
General and administrative(54)— — — (54)(45)(17%)(17%)
Adjusted EBITDA*$284 $(39)$(5)$(44)$240 $205 38%17%
Nine Months Ended September 30, 2022Nine
Months Ended September 30, 2021
Change
As ReportedImpact of AlignmentAs Adjusted*As ReportedAs Adjusted*
RevenueReserveCombined
Vacation Ownership$772 $(39)$(5)$(44)$728 $465 66%57%
Exchange & Third-Party Management117 — — — 117 113 2%2%
Segment Adjusted EBITDA*889 (39)(5)(44)845 578 54%46%
General and administrative(162)— — — (162)(140)(15%)(15%)
Adjusted EBITDA*$727 $(39)$(5)$(44)$683 $438 66%56%

* Denotes non-GAAP financial measures. Please see “Non-GAAP Financial Measures” for additional information about our reasons for providing these alternative financial measures and limitations on their use.


A-3
MARRIOTT VACATIONS WORLDWIDE CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
(In millions, except per share amounts)
(Unaudited)
Three Months Ended
September 30, 2022September 30, 2021
As
Reported
Impact of AlignmentAs
Adjusted*
REVENUES
Sale of vacation ownership products$444 $(27)$417 $330 
Management and exchange198 — 198 225 
Rental165 — 165 130 
Financing74 — 74 69 
Cost reimbursements371 — 371 298 
TOTAL REVENUES1,252 (27)1,225 1,052 
EXPENSES
Cost of vacation ownership products76 (2)74 71 
Marketing and sales207 — 207 166 
Management and exchange101 — 101 138 
Rental126 — 126 84 
Financing19 24 22 
General and administrative62 — 62 54 
Depreciation and amortization33 — 33 35 
Litigation charges— 
Royalty fee28 — 28 26 
Impairment— — 
Cost reimbursements371 — 371 298 
TOTAL EXPENSES1,012 17 1,029 896 
Losses and other expense, net(2)— (2)(31)
Interest expense(34)— (34)(41)
Transaction and integration costs(34)— (34)(27)
Other(1)— (1)
INCOME BEFORE INCOME TAXES AND NONCONTROLLING INTERESTS169 (44)125 58 
Provision for income taxes(59)11 (48)(47)
NET INCOME (LOSS)110 (33)77 11 
Net income attributable to noncontrolling interests(1)— (1)(1)
NET INCOME (LOSS) ATTRIBUTABLE TO COMMON SHAREHOLDERS$109 $(33)$76 $10 
EARNINGS (LOSS) PER SHARE ATTRIBUTABLE TO COMMON SHAREHOLDERS
Basic$2.76 $(0.80)$1.96 $0.24 
Diluted$2.53 $(0.74)$1.79 $0.23 
* Denotes non-GAAP financial measures. Please see “Non-GAAP Financial Measures” for additional information about our reasons for providing these alternative financial measures and limitations on their use.
NOTE: Earnings (loss) per share - Basic and Earnings (loss) per share - Diluted are calculated using whole dollars.


A-4
MARRIOTT VACATIONS WORLDWIDE CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
(In millions, except per share amounts)
(Unaudited)
Nine Months Ended
September 30, 2022September 30, 2021
As
Reported
Impact of AlignmentAs
Adjusted*
REVENUES
Sale of vacation ownership products$1,179 $(27)$1,152 $789 
Management and exchange623 — 623 638 
Rental438 — 438 340 
Financing217 — 217 196 
Cost reimbursements1,011 — 1,011 827 
TOTAL REVENUES3,468 (27)3,441 2,790 
EXPENSES
Cost of vacation ownership products216 (2)214 178 
Marketing and sales603 — 603 439 
Management and exchange330 — 330 381 
Rental294 — 294 247 
Financing49 19 68 64 
General and administrative187 — 187 166 
Depreciation and amortization98 — 98 112 
Litigation charges— 
Royalty fee84 — 84 78 
Impairment— 
Cost reimbursements1,011 — 1,011 827 
TOTAL EXPENSES2,880 17 2,897 2,505 
Gains (losses) and other income (expense), net39 — 39 (27)
Interest expense(91)— (91)(128)
Transaction and integration costs(99)— (99)(75)
Other— — — 
INCOME BEFORE INCOME TAXES AND NONCONTROLLING INTERESTS437 (44)393 57 
Provision for income taxes(134)11 (123)(63)
NET INCOME (LOSS)303 (33)270 (6)
Net income attributable to noncontrolling interests— — — (6)
NET INCOME (LOSS) ATTRIBUTABLE TO COMMON SHAREHOLDERS$303 $(33)$270 $(12)
EARNINGS (LOSS) PER SHARE ATTRIBUTABLE TO COMMON SHAREHOLDERS
Basic$7.39 $(0.78)$6.61 $(0.28)
Diluted$6.68 $(0.69)$5.99 $(0.28)
* Denotes non-GAAP financial measures. Please see “Non-GAAP Financial Measures” for additional information about our reasons for providing these alternative financial measures and limitations on their use.
NOTE: Earnings (loss) per share - Basic and Earnings (loss) per share - Diluted are calculated using whole dollars.


A-5
MARRIOTT VACATIONS WORLDWIDE CORPORATION
REVENUES AND PROFIT BY SEGMENT
for the three months ended September 30, 2022
(In millions)
(Unaudited)
Reportable SegmentCorporate
and
Other
Total
Vacation OwnershipExchange & Third-Party ManagementAs
Reported
As
Adjusted*
As
Reported
Impact of AlignmentAs
Adjusted*
REVENUES
Sales of vacation ownership products$444 $(27)$417 $— $— $444 $417 
Management and exchange(1)
Ancillary revenues63 — 63 — 64 64 
Management fee revenues41 — 41 (1)47 47 
Exchange and other services revenues32 — 32 47 87 87 
Management and exchange136 — 136 55 198 198 
Rental154 — 154 11 — 165 165 
Financing74 — 74 — — 74 74 
Cost reimbursements(1)
374 — 374 (8)371 371 
TOTAL REVENUES$1,182 $(27)$1,155 $71 $(1)$1,252 $1,225 
PROFIT
Development$161 $(25)$136 $— $— $161 $136 
Management and exchange(1)
72 — 72 27 (2)97 97 
Rental(1)
24 — 24 11 39 39 
Financing69 (19)50 — — 69 50 
TOTAL PROFIT326 (44)282 38 366 322 
OTHER
General and administrative— — — — (62)(62)(62)
Depreciation and amortization(23)— (23)(8)(2)(33)(33)
Litigation charges(2)— (2)— — (2)(2)
Royalty fee(28)— (28)— — (28)(28)
Impairment(1)— (1)— — (1)(1)
Gains (losses) and other income (expense), net— (1)(2)(2)(2)
Interest expense— — — — (34)(34)(34)
Transaction and integration costs(2)— (2)— (32)(34)(34)
Other(1)— (1)— — (1)(1)
INCOME (LOSS) BEFORE INCOME TAXES AND NONCONTROLLING INTERESTS270 (44)226 29 (130)169 125 
Provision for income taxes— 11 11 — (59)(59)(48)
NET INCOME (LOSS)270 (33)237 29 (189)110 77 
Net income attributable to noncontrolling interests(1)
— — — — (1)(1)(1)
NET INCOME (LOSS) ATTRIBUTABLE TO COMMON SHAREHOLDERS$270 $(33)$237 $29 $(190)$109 $76 
SEGMENT MARGIN(2)
34%31%44%
(1) Amounts included in Corporate and other represent the impact of the consolidation of certain owners’ associations under the relevant accounting guidance, and represent the portion attributable to individual or third-party vacation ownership interest owners.
(2) Segment margin represents the applicable segment’s net income or loss attributable to common shareholders divided by the applicable segment’s total revenues less cost reimbursement revenues.
* Denotes non-GAAP financial measures. Please see “Non-GAAP Financial Measures” for additional information about our reasons for providing these alternative financial measures and limitations on their use.


A-6
MARRIOTT VACATIONS WORLDWIDE CORPORATION
REVENUES AND PROFIT BY SEGMENT
for the three months ended September 30, 2021
(In millions)
(Unaudited)
Reportable SegmentCorporate and OtherTotal
Vacation OwnershipExchange & Third-Party Management
REVENUES
Sales of vacation ownership products$330 $— $— $330 
Management and exchange(1)
Ancillary revenues55 — 56 
Management fee revenues40 10 (4)46 
Exchange and other services revenues31 48 44 123 
Management and exchange126 59 40 225 
Rental121 — 130 
Financing69 — — 69 
Cost reimbursements(1)
328 (39)298 
TOTAL REVENUES$974 $77 $$1,052 
PROFIT
Development$93 $— $— $93 
Management and exchange(1)
71 26 (10)87 
Rental(1)
24 13 46 
Financing47 — — 47 
TOTAL PROFIT235 35 273 
OTHER
General and administrative— — (54)(54)
Depreciation and amortization(24)(11)— (35)
Litigation charges(1)— (1)(2)
Restructuring(1)— — 
Royalty fee(26)— — (26)
Losses and other expense, net— — (31)(31)
Interest expense— — (41)(41)
Transaction and integration costs(1)— (26)(27)
Other— — 
INCOME (LOSS) BEFORE INCOME TAXES AND NONCONTROLLING INTERESTS185 23 (150)58 
Provision for income taxes— — (47)(47)
NET INCOME (LOSS)185 23 (197)11 
Net income attributable to noncontrolling interests(1)
— — (1)(1)
NET INCOME (LOSS) ATTRIBUTABLE TO COMMON SHAREHOLDERS$185 $23 $(198)$10 
SEGMENT MARGIN(2)
29%35%
(1) Amounts included in Corporate and other represent the impact of the consolidation of certain owners’ associations under the relevant accounting guidance, and represent the portion attributable to individual or third-party vacation ownership interest owners.
(2) Segment margin represents the applicable segment’s net income or loss attributable to common shareholders divided by the applicable segment’s total revenues less cost reimbursement revenues.


A-7
MARRIOTT VACATIONS WORLDWIDE CORPORATION
REVENUES AND PROFIT BY SEGMENT
for the nine months ended September 30, 2022
(In millions)
(Unaudited)
Reportable SegmentCorporate
and
Other
Total
Vacation OwnershipExchange & Third-Party ManagementAs
Reported
As
Adjusted*
As
Reported
Impact of AlignmentAs
Adjusted*
REVENUES
Sales of vacation ownership products$1,179 $(27)$1,152 $— $— $1,179 $1,152 
Management and exchange(1)
Ancillary revenues183 — 183 — 186 186 
Management fee revenues124 — 124 28 (5)147 147 
Exchange and other services revenues95 — 95 146 49 290 290 
Management and exchange402 — 402 177 44 623 623 
Rental405 — 405 33 — 438 438 
Financing217 — 217 — — 217 217 
Cost reimbursements(1)
1,026 — 1,026 19 (34)1,011 1,011 
TOTAL REVENUES$3,229 $(27)$3,202 $229 $10 $3,468 $3,441 
PROFIT
Development$360 $(25)$335 $— $— $360 $335 
Management and exchange(1)
224 — 224 84 (15)293 293 
Rental(1)
94 — 94 33 17 144 144 
Financing168 (19)149 — — 168 149 
TOTAL PROFIT846 (44)802 117 965 921 
OTHER
General and administrative— — — — (187)(187)(187)
Depreciation and amortization(67)— (67)(24)(7)(98)(98)
Litigation charges(7)— (7)— — (7)(7)
Royalty fee(84)— (84)— — (84)(84)
Impairment(1)— (1)— — (1)(1)
Gains (losses) and other income (expense), net36 — 36 15 (12)39 39 
Interest expense— — — — (91)(91)(91)
Transaction and integration costs(3)— (3)— (96)(99)(99)
INCOME (LOSS) BEFORE INCOME TAXES AND NONCONTROLLING INTERESTS720 (44)676 108 (391)437 393 
Provision for income taxes— 11 11 — (134)(134)(123)
NET INCOME (LOSS)720 (33)687 108 (525)303 270 
Net income attributable to noncontrolling interests(1)
— — — — — — — 
NET INCOME (LOSS) ATTRIBUTABLE TO COMMON SHAREHOLDERS$720 $(33)$687 $108 $(525)$303 $270 
SEGMENT MARGIN(2)
33%32%52%
(1) Amounts included in Corporate and other represent the impact of the consolidation of certain owners’ associations under the relevant accounting guidance, and represent the portion attributable to individual or third-party vacation ownership interest owners.
(2) Segment margin represents the applicable segment’s net income or loss attributable to common shareholders divided by the applicable segment’s total revenues less cost reimbursement revenues.
* Denotes non-GAAP financial measures. Please see “Non-GAAP Financial Measures” for additional information about our reasons for providing these alternative financial measures and limitations on their use.


A-8
MARRIOTT VACATIONS WORLDWIDE CORPORATION
REVENUES AND PROFIT BY SEGMENT
for the nine months ended September 30, 2021
(In millions)
(Unaudited)
Reportable SegmentCorporate and OtherTotal
Vacation OwnershipExchange & Third-Party Management
REVENUES
Sales of vacation ownership products$789 $— $— $789 
Management and exchange(1)
Ancillary revenues135 — 137 
Management fee revenues117 24 (15)126 
Exchange and other services revenues91 153 131 375 
Management and exchange343 179 116 638 
Rental308 32 — 340 
Financing196 — — 196 
Cost reimbursements(1)
882 38 (93)827 
TOTAL REVENUES$2,518 $249 $23 $2,790 
PROFIT
Development$172 $— $— $172 
Management and exchange(1)
207 80 (30)257 
Rental(1)
20 32 41 93 
Financing132 — — 132 
TOTAL PROFIT531 112 11 654 
OTHER
General and administrative— — (166)(166)
Depreciation and amortization(66)(40)(6)(112)
Litigation charges(7)— (1)(8)
Restructuring— (1)— 
Royalty fee(78)— — (78)
Impairment— — (5)(5)
Losses and other expense, net— — (27)(27)
Interest expense— — (128)(128)
Transaction and integration costs(2)— (73)(75)
Other— — 
INCOME (LOSS) BEFORE INCOME TAXES AND NONCONTROLLING INTERESTS380 71 (394)57 
Provision for income taxes— — (63)(63)
NET INCOME (LOSS)380 71 (457)(6)
Net income attributable to noncontrolling interests(1)
— — (6)(6)
NET INCOME (LOSS) ATTRIBUTABLE TO COMMON SHAREHOLDERS$380 $71 $(463)$(12)
SEGMENT MARGIN(2)
23%34%
(1) Amounts included in Corporate and other represent the impact of the consolidation of certain owners’ associations under the relevant accounting guidance, and represent the portion attributable to individual or third-party vacation ownership interest owners.
(2) Segment margin represents the applicable segment’s net income or loss attributable to common shareholders divided by the applicable segment’s total revenues less cost reimbursement revenues.


A-9
MARRIOTT VACATIONS WORLDWIDE CORPORATION
ADJUSTED NET INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS AND
ADJUSTED EARNINGS PER SHARE - DILUTED
(In millions, except per share amounts)
(Unaudited)
 Three Months EndedNine Months Ended
September 30, 2022September 30, 2021September 30, 2022September 30, 2021
Net income (loss) attributable to common shareholders$109 $10 $303 $(12)
Provision for income taxes59 47 134 63 
Income before income taxes attributable to common shareholders168 57 437 51 
Certain items:
Litigation charges
Losses (gains) and other expense (income), net(1)
31 (39)27 
Transaction and integration costs34 27 99 75 
Impairment charges— 
Purchase accounting adjustments13 
COVID-19 related adjustments— — — (2)
Other(5)(4)(10)(6)
Adjusted pretax income*207 118 508 165 
Provision for income taxes(76)(48)(165)(78)
Adjusted net income attributable to common shareholders*$131 $70 $343 $87 
Diluted shares(2)
43.443.745.9 43.2 
Adjusted earnings per share - Diluted*$3.02 $1.60 $7.53 $2.01 
Excluding the Impact of Alignment:
Adjusted net income attributable to common shareholders*$98 $70 $310 $87 
Adjusted earnings per share - Diluted*$2.28 $1.60 $6.83 $2.01 
(1) See further details on A-10.
(2) Diluted shares for the nine months ended September 30, 2022 reflects the dilutive impact of the adoption of Accounting Standards Update 2020-06 – “Debt — Debt With Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging — Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity.”
* Denotes non-GAAP financial measures. Please see “Non-GAAP Financial Measures” for additional information about our reasons for providing these alternative financial measures and limitations on their use.


A-10
MARRIOTT VACATIONS WORLDWIDE CORPORATION
ADJUSTED EBITDA
(In millions)
(Unaudited)
Three Months EndedNine Months Ended
September 30, 2022September 30, 2021September 30, 2022September 30, 2021
NET INCOME (LOSS) ATTRIBUTABLE TO COMMON SHAREHOLDERS$109 $10 $303 $(12)
Interest expense34 41 91 128 
Provision for income taxes59 47 134 63 
Depreciation and amortization33 35 98 112 
Share-based compensation10 11 30 33 
Certain items:
Litigation charges
Losses (gains) and other expense (income), net
Dispositions(1)— (50)— 
Hurricane business interruption net insurance proceeds— — (3)— 
Various non-income related tax matters(1)(8)(6)
Redemption premium from debt repayment— 36 — 36 
Foreign currency translation10 (4)
Other
Transaction and integration costs34 27 99 75 
Impairment charges— 
Purchase accounting adjustments13 
COVID-19 related adjustments— — — (2)
Other(5)(4)(10)(6)
ADJUSTED EBITDA*$284 $205 $727 $438 
ADJUSTED EBITDA MARGIN*32%27%30%22%
Excluding the Impact of Alignment:
ADJUSTED EBITDA*$240 $205 $683 $438 
ADJUSTED EBITDA MARGIN*28%27%28%22%
* Denotes non-GAAP financial measures. Please see “Non-GAAP Financial Measures” for additional information about our reasons for providing these alternative financial measures and limitations on their use.


A-11
MARRIOTT VACATIONS WORLDWIDE CORPORATION
CONSOLIDATED CONTRACT SALES TO ADJUSTED DEVELOPMENT PROFIT
(In millions)
(Unaudited)

Three Months Ended
September 30, 2022September 30, 2021
As
Reported
Impact of AlignmentAs
Adjusted*
Consolidated contract sales$483 $— $483 $380 
Less resales contract sales(10)— (10)(7)
Consolidated contract sales, net of resales473 — 473 373 
Plus:
Settlement revenue10 — 10 
Resales revenue— 
Revenue recognition adjustments:
Reportability54 (46)
Sales reserve(64)19 (45)(31)
Other(1)
(34)— (34)(27)
Sale of vacation ownership products444 (27)417 330 
Less:
Cost of vacation ownership products(76)(74)(71)
Marketing and sales(207)— (207)(166)
Development Profit161 (25)136 93 
Revenue recognition reportability adjustment(43)39 (4)(1)
Purchase accounting adjustments— 
Other(5)— (5)— 
Adjusted development profit*$118 $14 $132 $98 
Development profit margin36.1%32.6%28.0%
Adjusted development profit margin*29.9%32.0%29.5%
(1) Adjustment for sales incentives that will not be recognized as Sale of vacation ownership products revenue and other adjustments to Sale of vacation ownership products revenue.
* Denotes non-GAAP financial measures. Please see “Non-GAAP Financial Measures” for additional information about our reasons for providing these alternative financial measures and limitations on their use.







A-12
MARRIOTT VACATIONS WORLDWIDE CORPORATION
CONSOLIDATED CONTRACT SALES TO ADJUSTED DEVELOPMENT PROFIT
(In millions)
(Unaudited)

Nine Months Ended
September 30, 2022September 30, 2021
As
Reported
Impact of AlignmentAs
Adjusted*
Consolidated contract sales$1,383 $— $1,383 $968 
Less resales contract sales(30)— (30)(19)
Consolidated contract sales, net of resales1,353 — 1,353 949 
Plus:
Settlement revenue26 — 26 21 
Resales revenue13 — 13 
Revenue recognition adjustments:
Reportability(46)(39)(51)
Sales reserve(130)19 (111)(73)
Other(1)
(90)— (90)(65)
Sale of vacation ownership products1,179 (27)1,152 789 
Less:
Cost of vacation ownership products(216)(214)(178)
Marketing and sales(603)— (603)(439)
Development Profit360 (25)335 172 
Revenue recognition reportability adjustment(8)39 31 38 
Purchase accounting adjustments14 — 14 
Other(5)— (5)— 
Adjusted development profit*$361 $14 $375 $219 
Development profit margin30.5%29.1%21.8%
Adjusted development profit margin*30.8%31.6%26.2%
(1) Adjustment for sales incentives that will not be recognized as Sale of vacation ownership products revenue and other adjustments to Sale of vacation ownership products revenue.
* Denotes non-GAAP financial measures. Please see “Non-GAAP Financial Measures” for additional information about our reasons for providing these alternative financial measures and limitations on their use.







A-13
MARRIOTT VACATIONS WORLDWIDE CORPORATION
(In millions)
(Unaudited)
VACATION OWNERSHIP SEGMENT ADJUSTED EBITDA
Three Months EndedNine Months Ended
September 30, 2022September 30, 2021September 30, 2022September 30, 2021
SEGMENT FINANCIAL RESULTS ATTRIBUTABLE TO COMMON SHAREHOLDERS$270 $185 $720 $380 
Depreciation and amortization23 24 67 66 
Share-based compensation expense
Certain items:
Litigation charges
(Gains) losses and other (income) expense, net:
Dispositions— — (33)— 
Hurricane business interruption net insurance proceeds— — (3)— 
Foreign currency translation(1)— — — 
Transaction and integration costs
Impairment charges— — 
Purchase accounting adjustments13 
COVID-19 related restructuring— (1)— — 
Other(5)(1)(8)(1)
SEGMENT ADJUSTED EBITDA*$299 $215 $772 $465 
SEGMENT ADJUSTED EBITDA MARGIN*37%33%35%28%
Excluding the Impact of Alignment:
SEGMENT ADJUSTED EBITDA*$255 $215 $728 $465 
SEGMENT ADJUSTED EBITDA MARGIN*33%33%34%28%

EXCHANGE & THIRD-PARTY MANAGEMENT SEGMENT ADJUSTED EBITDA
Three Months EndedNine Months Ended
September 30, 2022September 30, 2021September 30, 2022September 30, 2021
SEGMENT FINANCIAL RESULTS ATTRIBUTABLE TO COMMON SHAREHOLDERS$29 $23 $108 $71 
Depreciation and amortization11 24 40 
Share-based compensation expense— 
Certain items:
Gain on disposition of VRI Americas(1)— (17)— 
Foreign currency translation— — 
COVID-19 related restructuring— — 
Other— — (2)— 
SEGMENT ADJUSTED EBITDA*$39 $35 $117 $113 
SEGMENT ADJUSTED EBITDA MARGIN*58%53%55%54%
* Denotes non-GAAP financial measures. Please see “Non-GAAP Financial Measures” for additional information about our reasons for providing these alternative financial measures and limitations on their use.


A-14
MARRIOTT VACATIONS WORLDWIDE CORPORATION
CONSOLIDATED BALANCE SHEETS
(In millions, except share and per share data)
Unaudited
September 30, 2022December 31, 2021
ASSETS
Cash and cash equivalents$294 $342 
Restricted cash (including $67 and $139 from VIEs, respectively)
249 461 
Accounts receivable, net (including $12 and $12 from VIEs, respectively)
248 279 
Vacation ownership notes receivable, net (including $1,662 and $1,662 from VIEs, respectively)
2,142 2,045 
Inventory668 719 
Property and equipment, net1,136 1,136 
Goodwill3,117 3,150 
Intangibles, net924 993 
Other (including $68 and $76 from VIEs, respectively)
459 488 
TOTAL ASSETS$9,237 $9,613 
LIABILITIES AND EQUITY
Accounts payable$221 $265 
Advance deposits178 160 
Accrued liabilities (including $2 and $2 from VIEs, respectively)
342 345 
Deferred revenue346 453 
Payroll and benefits liability248 201 
Deferred compensation liability130 142 
Securitized debt, net (including $1,830 and $1,877 from VIEs, respectively)
1,809 1,856 
Debt, net2,749 2,631 
Other212 224 
Deferred taxes374 350 
TOTAL LIABILITIES6,609 6,627 
Contingencies and Commitments
Preferred stock — $0.01 par value; 2,000,000 shares authorized; none issued or outstanding
— — 
Common stock — $0.01 par value; 100,000,000 shares authorized; 75,744,121 and 75,519,049 shares issued, respectively
Treasury stock — at cost; 37,036,447 and 33,235,671 shares, respectively
(1,882)(1,356)
Additional paid-in capital3,968 4,072 
Accumulated other comprehensive loss(16)
Retained earnings533 275 
TOTAL MVW SHAREHOLDERS' EQUITY2,626 2,976 
Noncontrolling interests10 
TOTAL EQUITY2,628 2,986 
TOTAL LIABILITIES AND EQUITY$9,237 $9,613 
The abbreviation VIEs above means Variable Interest Entities.


A-15
MARRIOTT VACATIONS WORLDWIDE CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In millions)
(Unaudited)
Nine Months Ended
September 30, 2022September 30, 2021
OPERATING ACTIVITIES
Net income (loss)$303 $(6)
Adjustments to reconcile net income (loss) to net cash, cash equivalents and restricted cash provided by operating activities:
Depreciation and amortization of intangibles98 112 
Amortization of debt discount and issuance costs20 41 
Vacation ownership notes receivable reserve130 73 
Share-based compensation30 33 
Impairment charges
Gains and other income, net(48)— 
Deferred income taxes64 10 
Net change in assets and liabilities:
Accounts and contracts receivable54 
Vacation ownership notes receivable originations(728)(545)
Vacation ownership notes receivable collections469 532 
Inventory74 59 
Other assets(21)(29)
Accounts payable, advance deposits and accrued liabilities(28)(44)
Deferred revenue(5)119 
Payroll and benefit liabilities52 35 
Deferred compensation liability14 
Other liabilities23 
Deconsolidation of certain Consolidated Property Owners' Associations(48)(87)
Purchase of vacation ownership units for future transfer to inventory(12)(99)
Other, net
Net cash, cash equivalents and restricted cash provided by operating activities380 303 
INVESTING ACTIVITIES
Acquisition of a business, net of cash and restricted cash acquired— (157)
Proceeds from disposition of subsidiaries, net of cash and restricted cash transferred94 — 
Capital expenditures for property and equipment (excluding inventory)(36)(19)
Issuance of note receivable to VIE(47)— 
Proceeds from collection of note receivable from VIE47 — 
Purchase of company owned life insurance(14)(11)
Other, net— 
Net cash, cash equivalents and restricted cash provided by (used in) investing activities49 (187)
Continued


A-16
MARRIOTT VACATIONS WORLDWIDE CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS (CONTINUED)
(In millions)
(Unaudited)
Nine Months Ended
September 30, 2022September 30, 2021
FINANCING ACTIVITIES
Borrowings from securitization transactions609 425 
Repayment of debt related to securitization transactions(655)(602)
Proceeds from debt505 1,061 
Repayments of debt(505)(1,039)
Purchase of convertible note hedges— (100)
Proceeds from issuance of warrants— 70 
Finance lease payment(3)(2)
Payment of debt issuance costs(10)(17)
Repurchase of common stock(528)(4)
Payment of dividends(75)— 
Payment of withholding taxes on vesting of restricted stock units(23)(17)
Net cash, cash equivalents and restricted cash used in financing activities(685)(225)
Effect of changes in exchange rates on cash, cash equivalents and restricted cash(4)(1)
Change in cash, cash equivalents and restricted cash(260)(110)
Cash, cash equivalents and restricted cash, beginning of period803 992 
Cash, cash equivalents and restricted cash, end of period$543 $882 


A-17
MARRIOTT VACATIONS WORLDWIDE CORPORATION
(In millions, except per share amounts)
2022 ADJUSTED NET INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS AND ADJUSTED EARNINGS PER SHARE - DILUTED OUTLOOK
Fiscal Year
2022 (low)
Fiscal Year
2022 (high)
Net income attributable to common shareholders$390 $400 
Provision for income taxes174 179 
Income before income taxes attributable to common shareholders564 579 
Certain items(1)
96 106 
Adjusted pretax income*660 685 
Provision for income taxes(205)(210)
Adjusted net income attributable to common shareholders*$455 $475 
Earnings per share - Diluted$8.76 $8.98 
Adjusted earnings per share - Diluted*$10.20 $10.64 
Diluted shares45.0 45.0 


2022 ADJUSTED EBITDA OUTLOOK
Fiscal Year
2022 (low)
Fiscal Year
2022 (high)
Net income attributable to common shareholders$390 $400 
Interest expense123 123 
Provision for income taxes174 179 
Depreciation and amortization128 128 
Share-based compensation39 39 
Certain items(1)
96 106 
Adjusted EBITDA*$950 $975 
(1) Certain items adjustment includes $120 to $130 million of anticipated transaction and integration costs, $17 million of anticipated purchase accounting adjustments, and $7 million of litigation charges, partially offset by $48 million of miscellaneous other adjustments, including the disposition of the VRI Americas business and a hotel in Puerto Vallarta, Mexico in the second quarter of 2022.
* Denotes non-GAAP financial measures. Please see “Non-GAAP Financial Measures” for additional information about our reasons for providing these alternative financial measures and limitations on their use.


A-18
MARRIOTT VACATIONS WORLDWIDE CORPORATION
2022 ADJUSTED FREE CASH FLOW OUTLOOK
(In millions)
Fiscal Year 2022 (low)Fiscal Year 2022 (high)
Net cash, cash equivalents and restricted cash provided by operating activities$575 $590 
Capital expenditures for property and equipment (excluding inventory)(55)(45)
Borrowings from securitization transactions870 890 
Repayment of debt related to securitizations(958)(973)
Securitized Debt Issuance Costs(12)(12)
Free cash flow*420 450 
Adjustments:
Net change in borrowings available from the securitization of eligible vacation ownership notes receivable(1)
164 197 
Certain items(2)
96 103 
Change in restricted cash(10)(20)
Adjusted free cash flow*$670 $730 

(1) Represents the net change in borrowings available from the securitization of eligible vacation ownership notes receivable between the 2021 and 2022 year ends.
(2) Certain items adjustment consists primarily of the after-tax impact of anticipated transaction and integration costs.
* Denotes non-GAAP financial measures. Please see “Non-GAAP Financial Measures” for additional information about our reasons for providing these alternative financial measures and limitations on their use.


A-19
MARRIOTT VACATIONS WORLDWIDE CORPORATION
QUARTERLY OPERATING METRICS
(Contract sales in millions)
YearQuarter EndedFull Year
March 31June 30September 30December 31
Vacation Ownership
Consolidated contract sales
2022$394 $506 $483 
2021$226 $362 $380 $406 $1,374 
2020$306 $30 $140 $178 $654 
VPG
2022$4,706 $4,613 $4,353 
2021$4,644 $4,304 $4,300 $4,305 $4,356 
2020$3,680 $3,717 $3,904 $3,826 $3,767 
Tours
202278,505 102,857 104,000 
202145,871 79,900 84,098 89,495 299,364 
202079,131 6,216 33,170 44,161 162,678 
Exchange & Third-Party Management
Total active members (000's)(1)
20221,606 1,596 1,591 
20211,479 1,321 1,313 1,296 1,296 
20201,636 1,571 1,536 1,518 1,518 
Average revenue per member(1)
2022$44.33 $38.79 $38.91 
2021$47.13 $46.36 $42.95 $42.93 $179.48 
2020$41.37 $30.17 $36.76 $36.62 $144.97 
(1) Includes members at the end of each period for the Interval International exchange network only.


A-20
MARRIOTT VACATIONS WORLDWIDE CORPORATION
NON-GAAP FINANCIAL MEASURES
In our press release and schedules, and on the related conference call, we report certain financial measures that are not prescribed by GAAP. We discuss our reasons for reporting these non-GAAP financial measures below, and the financial schedules included herein reconcile the most directly comparable GAAP financial measure to each non-GAAP financial measure that we report (identified by an asterisk (“*”) on the preceding pages). Although we evaluate and present these non-GAAP financial measures for the reasons described below, please be aware that these non-GAAP financial measures have limitations and should not be considered in isolation or as a substitute for revenues, net income or loss attributable to common shareholders, earnings or loss per share or any other comparable operating measure prescribed by GAAP. In addition, other companies in our industry may calculate these non-GAAP financial measures differently than we do or may not calculate them at all, limiting their usefulness as comparative measures.
Certain Items Excluded from Non-GAAP Financial Measures
We evaluate non-GAAP financial measures, including those identified by an asterisk (“*”) on the preceding pages, that exclude certain items as further described in the financial schedules included herein, and believe these measures provide useful information to investors because these non-GAAP financial measures allow for period-over-period comparisons of our on-going core operations before the impact of these items. These non-GAAP financial measures also facilitate the comparison of results from our on-going core operations before these items with results from other vacation ownership companies.
Adjusted Development Profit and Adjusted Development Profit Margin
We evaluate Adjusted development profit (Adjusted sale of vacation ownership products, net of expenses) and Adjusted development profit margin as indicators of operating performance. Adjusted development profit margin is calculated by dividing Adjusted development profit by revenues from the Sale of vacation ownership products. Adjusted development profit and Adjusted development profit margin adjust Sale of vacation ownership products revenues for the impact of revenue reportability, include corresponding adjustments to Cost of vacation ownership products associated with the change in revenues from the Sale of vacation ownership products, and may include adjustments for certain items as necessary. We evaluate Adjusted development profit and Adjusted development profit margin and believe they provide useful information to investors because they allow for period-over-period comparisons of our on-going core operations before the impact of revenue reportability and certain items to our Development profit and Development profit margin.
Earnings Before Interest Expense, Taxes, Depreciation and Amortization (“EBITDA”) and Adjusted EBITDA
EBITDA, a financial measure that is not prescribed by GAAP, is defined as earnings, or net income or loss attributable to common shareholders, before interest expense (excluding consumer financing interest expense associated with term loan securitization transactions), income taxes, depreciation and amortization. Adjusted EBITDA reflects additional adjustments for certain items, as itemized in the discussion of Adjusted EBITDA in the preceding pages, and excludes share-based compensation expense to address considerable variability among companies in recording compensation expense because companies use share-based payment awards differently, both in the type and quantity of awards granted. For purposes of our EBITDA and Adjusted EBITDA calculations, we do not adjust for consumer financing interest expense associated with term loan securitization transactions because we consider it to be an operating expense of our business. We consider Adjusted EBITDA to be an indicator of operating performance, which we use to measure our ability to service debt, fund capital expenditures, expand our business, and return cash to shareholders. We also use Adjusted EBITDA, as do analysts, lenders, investors and others, because this measure excludes certain items that can vary widely across different industries or among companies within the same industry. For example, interest expense can be dependent on a company’s capital structure, debt levels and credit ratings. Accordingly, the impact of interest expense on earnings can vary significantly among companies. The tax positions of companies can also vary because of their differing abilities to take advantage of tax benefits and because of the tax policies of the jurisdictions in which they operate. As a result, effective tax rates and provisions for income taxes can vary considerably among companies. EBITDA and Adjusted EBITDA also exclude depreciation and amortization because companies utilize productive assets of different ages and use different methods of both acquiring and depreciating productive assets. These differences can result in considerable variability in the relative costs of productive assets and the depreciation and amortization expense among companies. We believe Adjusted EBITDA is useful as an indicator of operating performance because it allows for period-over-period comparisons of our on-going core operations before the impact of the excluded items. Adjusted EBITDA also facilitates comparison by us, analysts, investors, and others, of results from our on-going core operations before the impact of these items with results from other companies.


A-21
Adjusted EBITDA Margin and Segment Adjusted EBITDA Margin
We evaluate Adjusted EBITDA margin and Segment Adjusted EBITDA margin as indicators of operating performance. Adjusted EBITDA margin represents Adjusted EBITDA divided by the Company’s total revenues less cost reimbursement revenues. Segment Adjusted EBITDA margin represents Segment Adjusted EBITDA divided by the applicable segment’s total revenues less cost reimbursement revenues. We evaluate Adjusted EBITDA margin and Segment Adjusted EBITDA margin and believe it provides useful information to investors because it allows for period-over-period comparisons of our on-going core operations.
Free Cash Flow and Adjusted Free Cash Flow
We evaluate Free Cash Flow and Adjusted Free Cash Flow as liquidity measures that provide useful information to management and investors about the amount of cash provided by operating activities after capital expenditures for property and equipment and the borrowing and repayment activity related to our term loan securitizations, which cash can be used for, among other purposes, strategic opportunities, including acquisitions and strengthening the balance sheet. Adjusted Free Cash Flow, which reflects additional adjustments to Free Cash Flow for the impact of transaction and integration charges, impact of borrowings available from the securitization of eligible vacation ownership notes receivable, and changes in restricted cash, allows for period-over-period comparisons of the cash generated by our business before the impact of these items. Analysis of Free Cash Flow and Adjusted Free Cash Flow also facilitates management’s comparison of our results with our competitors’ results.
Results As Adjusted
In our press release and schedules we provide As Adjusted results for comparison. The As Adjusted results exclude any impacts to the Company’s reported results on a GAAP basis due to the Alignment. We provide this As Adjusted information because we believe that it facilitates the comparison of results from our on-going core operations before the impact of the Alignment. We believe that the As Adjusted results provide useful information to assist with period-over-period comparisons of our on-going operations excluding any impact from the Alignment.