vac-20230802
0001524358false00015243582023-08-022023-08-02

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



Item 2.02 Results of Operations and Financial Condition
On August 2, 2023, Marriott Vacations Worldwide Corporation (the “Company,” “we” or “our”) issued a press release reporting financial results for the quarter ended June 30, 2023. A copy of the press release is attached as Exhibit 99.1 hereto and incorporated herein by reference.
As provided in General Instruction B.2 of Form 8-K, the information contained in Item 2.02 of this Current Report on Form 8-K shall not be deemed to be “filed” for purposes of Section 18 of the Exchange Act of 1934, as amended, nor shall any such information be deemed to be incorporated by reference in any filing under the Securities Act of 1933, as amended.
Item 9.01 Financial Statements and Exhibits.
(d) The following exhibits are being furnished herewith: 
Exhibit NumberDescription
Press release reporting financial results for the quarter ended June 30, 2023
104Cover 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: August 2, 2023By:/s/ Anthony E. Terry
Name:Anthony E. Terry
Title:Executive Vice President and Chief Financial Officer

1
Document
Exhibit 99.1
https://cdn.kscope.io/d25a65e82bf2de729b56699975052730-newmvwlogo2023a.jpg
Neal Goldner
Investor Relations
407-206-6149
neal.goldner@mvwc.com
[DRAFT 9]
Cameron Klaus
Global Communications
407-513-6066
cameron.klaus@mvwc.com
Marriott Vacations Worldwide (“MVW”) Reports
Second Quarter 2023 Financial Results
ORLANDO, Fla. – August 2, 2023 – Marriott Vacations Worldwide Corporation (NYSE: VAC) (the “Company”) reported second quarter 2023 financial results.
Second Quarter 2023 Highlights
Consolidated Vacation Ownership contract sales were $453 million, a 10% decrease compared to the second quarter of 2022, and VPG was $3,968.
Net income attributable to common shareholders was $90 million compared to $136 million in the prior year, and fully diluted earnings per share decreased 27% to $2.17.
Adjusted net income attributable to common shareholders was $90 million compared to $131 million in the prior year, and adjusted fully diluted earnings per share decreased 24% to $2.19.
Adjusted EBITDA decreased 13% compared to the prior year to $222 million.
The Company repurchased 621,000 shares of its common stock for $82 million during the quarter and paid a quarterly dividend of $26 million. The Board of Directors also increased the Company’s share repurchase authorization during the quarter to $600 million.
The Company updated its full year outlook.
“Occupancy was nearly 90% in the second quarter reflecting the continued high demand for vacation experiences from our Owners, members and guests. However, with the tough comparison from last year, as well as the continued transition to the Abound by Marriott Vacations program and the integration of our Hyatt and legacy-Welk businesses, contract sales declined 10% in the quarter, though we still expect to grow contract sales for the full year and generate significant cash flow from operations,” said John Geller, president and chief executive officer. “While the changes to our programs impacted our near-term results, I am confident these are the right strategic changes that will position us for long-term growth.”
Vacation Ownership
Revenues excluding cost reimbursements decreased 2% in the second quarter of 2023 compared to the prior year. The decline was driven by a 10% year-over-year reduction in consolidated contract sales resulting from 14% lower VPG, partially offset by 4% higher tours. While the Company expected VPGs to decline due to the tough comparison to the prior year, we saw larger declines at the legacy-Vistana sites due to the continued transition associated with the launch of Abound by Marriott Vacations. In addition, VPG was impacted by the continued alignment of the Hyatt and Legacy-Welk business models and sales processes.
Segment financial results attributable to common shareholders were $224 million in the second quarter of 2023 compared to $277 million in the prior year and Segment margin was 30%. Development profit declined $12 million year-over-year primarily due to lower contract sales and higher sales reserve while Development profit margin was 31%. Rental profit was down $19 million


Marriott Vacations Worldwide Reports Second Quarter 2023 Financial Results / 2
primarily due to lower rental occupancy and higher unsold inventory costs. As a result, Segment Adjusted EBITDA was $245 million compared to $274 million in the prior year while Segment Adjusted EBITDA margin remained strong at more than 32%.
Exchange & Third-Party Management
Revenues excluding cost reimbursements decreased 11% in the second quarter of 2023 compared to the prior year and decreased 4% excluding the sale of VRI Americas in April of 2022. Interval International active members decreased 2% compared to the prior year to 1.6 million but were in-line with first quarter of 2023, and Average revenue per member increased 1% year-over-year.
Segment financial results attributable to common shareholders were $24 million in the second quarter of 2023, Segment margin was 40% and Segment Adjusted EBITDA was $32 million. Excluding the VRI Americas business, Segment Adjusted EBITDA declined $3 million compared to the prior year due to lower management fees at Aqua-Aston and Adjusted EBITDA margin was 52%.
Corporate and Other
General and administrative costs were largely unchanged in the second quarter of 2023 compared to the prior year primarily as a result of new product development initiatives and higher wage and benefit costs offset by lower variable compensation.
Balance Sheet and Liquidity
The Company ended the quarter with approximately $1.0 billion in liquidity, including $242 million of cash and cash equivalents, $59 million of gross notes receivable that were eligible for securitization, and $684 million of available capacity under its revolving corporate credit facility.
At the end of the second quarter of 2023, the Company had $3.0 billion of corporate debt and $2.0 billion of non-recourse debt related to its securitized notes receivable.
Full Year 2023 Outlook
The Company is updating its full year 2023 outlook as reflected in the chart below. The Financial Schedules that follow reconcile the non-GAAP financial measures set forth below to the following full year 2023 expected GAAP results for the Company.
In the table below “*” denotes non-GAAP financial measures. Please see “Non-GAAP Financial Measures” for additional information about our reasons for providing these alternative financial measures and limitations on their use.
(in millions, except per share amounts)2023 Guidance
Contract sales$1,840to$1,900
Net income attributable to common shareholders$355to$375
Earnings per share - diluted$8.51to$8.96
Net cash, cash equivalents and restricted cash provided by operating activities$360to$395
Adjusted EBITDA*$880to$910
Adjusted earnings per share - diluted*$9.76to$10.22
Adjusted free cash flow*$540to$600
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


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


MARRIOTT VACATIONS WORLDWIDE CORPORATION
FINANCIAL SCHEDULES
QUARTER 2, 2023
TABLE OF CONTENTS
 
Summary Financial Information
A-1
Interim Consolidated Statements of Income
A-2
Revenues and Profit by Segment
A-3
Consolidated Contract Sales to Adjusted Development Profit
A-7
Adjusted Net Income Attributable to Common Shareholders and Adjusted Earnings Per Share - Diluted
A-8
Adjusted EBITDA
A-9
Segment Adjusted EBITDA - Vacation Ownership and Exchange & Third-Party Management
A-10
Interim Consolidated Balance Sheets
A-11
Interim Consolidated Statements of Cash Flows
A-12
2023 Outlook
Adjusted Net Income Attributable to Common Shareholders, Adjusted Earnings Per
   Share - Diluted and Adjusted EBITDA
A-14
Adjusted Free Cash Flow
A-15
Quarterly Operating Metrics
A-16
Non-GAAP Financial Measures
A-17



A-1
MARRIOTT VACATIONS WORLDWIDE CORPORATION
(In millions, except VPG, tours, total active members, average revenue per member, and per share amounts)
(Unaudited)
SUMMARY FINANCIAL INFORMATION
Three Months EndedChange %Six Months EndedChange %
June 30, 2023June 30, 2022June 30, 2023June 30, 2022
Key Measures
Total consolidated contract sales$453 $506 (10%)$887 $900 (1%)
VPG$3,968 $4,613 (14%)$4,150 $4,653 (11%)
Tours106,746 102,857 4%199,636 181,362 10%
Total active Interval International members (000's)(1)
1,566 1,596 (2%)1,566 1,596 (2%)
Average revenue per Interval International member$39.30 $38.79 1%$81.35 $83.32 (2%)
GAAP Measures
Revenues$1,178 $1,164 1%$2,347 $2,216 6%
Income before income taxes and noncontrolling interests$140 $178 (22%)$268 $268 —%
Net income attributable to common shareholders$90 $136 (34%)$177 $194 9%
Diluted shares43.8 46.5 (6%)44.1 47.2 (7%)
Earnings per share - diluted$2.17 $2.97 (27%)$4.23 $4.18 1%
Non-GAAP Measures*
Adjusted EBITDA$222 $255 (13%)$425 $443 (4%)
Adjusted pretax income$140 $181 (22%)$270 $301 (10%)
Adjusted net income attributable to common shareholders $90 $131 (31%)$199 $212 (6%)
Adjusted earnings per share - diluted $2.19 $2.87 (24%)$4.73 $4.55 4%
Segment Adjusted EBITDA*
Vacation Ownership Segment$245 $274 (11%)$474 $473 NM
Exchange & Third-Party Management Segment$32 $35 (10%)$69 $78 (12%)
(1) Includes members at the end of each period.
* 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
INTERIM CONSOLIDATED STATEMENTS OF INCOME
(In millions, except per share amounts)
(Unaudited)
Three Months EndedSix Months Ended
June 30, 2023June 30, 2022June 30, 2023June 30, 2022
REVENUES
Sale of vacation ownership products$391 $425 $766 $735 
Management and exchange206 203 406 425 
Rental146 140 297 273 
Financing80 72 158 143 
Cost reimbursements355 324 720 640 
TOTAL REVENUES1,178 1,164 2,347 2,216 
EXPENSES
Cost of vacation ownership products66 80 124 140 
Marketing and sales206 214 416 396 
Management and exchange110 102 217 229 
Rental112 87 225 168 
Financing25 23 51 44 
General and administrative64 64 132 125 
Depreciation and amortization34 32 66 65 
Litigation charges
Royalty fee29 29 58 56 
Impairment— — — 
Cost reimbursements355 324 720 640 
TOTAL EXPENSES1,003 957 2,018 1,868 
Gains and other income, net10 37 31 41 
Interest expense, net(36)(30)(70)(57)
Transaction and integration costs(10)(37)(23)(65)
Other
INCOME BEFORE INCOME TAXES AND NONCONTROLLING INTERESTS140 178 268 268 
Provision for income taxes(50)(43)(91)(75)
NET INCOME90 135 177 193 
Net loss attributable to noncontrolling interests— — 
NET INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS$90 $136 $177 $194 
EARNINGS PER SHARE ATTRIBUTABLE TO COMMON SHAREHOLDERS
Basic shares36.9 41.3 37.1 41.9 
Basic$2.46 $3.30 $4.78 $4.64 
Diluted shares43.8 46.5 44.1 47.2 
Diluted$2.17 $2.97 $4.23 $4.18 


A-3
MARRIOTT VACATIONS WORLDWIDE CORPORATION
REVENUES AND PROFIT BY SEGMENT
for the three months ended June 30, 2023
(In millions)
(Unaudited)
Reportable SegmentCorporate and OtherTotal
Vacation OwnershipExchange & Third-Party Management
REVENUES
Sales of vacation ownership products$391 $— $— $391 
Management and exchange(1)
Ancillary revenues70 — 71 
Management fee revenues45 (1)49 
Exchange and other services revenues32 45 86 
Management and exchange147 51 206 
Rental135 11 — 146 
Financing80 — — 80 
Cost reimbursements(1)
359 (7)355 
TOTAL REVENUES$1,112 $65 $$1,178 
PROFIT
Development$119 $— $— $119 
Management and exchange(1)
78 21 (3)96 
Rental(1)
19 11 34 
Financing55 — — 55 
TOTAL PROFIT271 32 304 
OTHER
General and administrative— — (64)(64)
Depreciation and amortization(23)(8)(3)(34)
Litigation charges(3)— (2)
Royalty fee(29)— — (29)
Gains and other income, net— 10 
Interest expense, net— — (36)(36)
Transaction and integration costs— — (10)(10)
Other— — 
INCOME (LOSS) BEFORE INCOME TAXES AND NONCONTROLLING INTERESTS224 24 (108)140 
Provision for income taxes— — (50)(50)
NET INCOME (LOSS)224 24 (158)90 
Net income attributable to noncontrolling interests(1)
— — — — 
NET INCOME (LOSS) ATTRIBUTABLE TO COMMON SHAREHOLDERS$224 $24 $(158)$90 
SEGMENT MARGIN(2)
30%40%
(1) Amounts included in Corporate and other represent the impact of the consolidation of certain owners’ associations under the relevant accounting guidance, and represent the portion attributable to individual or third-party vacation ownership interest owners.
(2) Segment margin represents the applicable segment’s net income or loss attributable to common shareholders divided by the applicable segment’s total revenues less cost reimbursement revenues.


A-4
MARRIOTT VACATIONS WORLDWIDE CORPORATION
REVENUES AND PROFIT BY SEGMENT
for the three months ended June 30, 2022
(In millions)
(Unaudited)
Reportable SegmentCorporate and OtherTotal
Vacation OwnershipExchange & Third-Party Management
REVENUES
Sales of vacation ownership products$425 $— $— $425 
Management and exchange(1)
Ancillary revenues66 — 67 
Management fee revenues41 11 (1)51 
Exchange and other services revenues33 46 85 
Management and exchange140 58 203 
Rental129 11 — 140 
Financing72 — — 72 
Cost reimbursements(1)
325 (6)324 
TOTAL REVENUES$1,091 $74 $(1)$1,164 
PROFIT
Development$131 $— $— $131 
Management and exchange(1)
80 26 (5)101 
Rental(1)
38 11 53 
Financing49 — — 49 
TOTAL PROFIT298 37 (1)334 
OTHER
General and administrative— — (64)(64)
Depreciation and amortization(22)(7)(3)(32)
Litigation charges(2)— — (2)
Royalty fee(29)— — (29)
Gains (losses) and other income (expense), net32 16 (11)37 
Interest expense, net— — (30)(30)
Transaction and integration costs(1)— (36)(37)
Other— — 
INCOME (LOSS) BEFORE INCOME TAXES AND NONCONTROLLING INTERESTS277 46 (145)178 
Provision for income taxes— — (43)(43)
NET INCOME (LOSS)277 46 (188)135 
Net loss attributable to noncontrolling interests(1)
— — 
NET INCOME (LOSS) ATTRIBUTABLE TO COMMON SHAREHOLDERS$277 $46 $(187)$136 
SEGMENT MARGIN(2)
36%66%
(1) Amounts included in Corporate and other represent the impact of the consolidation of certain owners’ associations under the relevant accounting guidance, and represent the portion attributable to individual or third-party vacation ownership interest owners.
(2) Segment margin represents the applicable segment’s net income or loss attributable to common shareholders divided by the applicable segment’s total revenues less cost reimbursement revenues.


A-5
MARRIOTT VACATIONS WORLDWIDE CORPORATION
REVENUES AND PROFIT BY SEGMENT
for the six months ended June 30, 2023
(In millions)
(Unaudited)
Reportable SegmentCorporate and OtherTotal
Vacation OwnershipExchange & Third-Party Management
REVENUES
Sales of vacation ownership products$766 $— $— $766 
Management and exchange(1)
Ancillary revenues131 — 133 
Management fee revenues90 13 (2)101 
Exchange and other services revenues61 92 19 172 
Management and exchange282 107 17 406 
Rental276 21 — 297 
Financing158 — — 158 
Cost reimbursements(1)
727 (15)720 
TOTAL REVENUES$2,209 $136 $$2,347 
PROFIT
Development$226 $— $— $226 
Management and exchange(1)
149 47 (7)189 
Rental(1)
44 21 72 
Financing107 — — 107 
TOTAL PROFIT526 68 — 594 
OTHER
General and administrative— — (132)(132)
Depreciation and amortization(46)(16)(4)(66)
Litigation charges(6)— (5)
Royalty fee(58)— — (58)
Impairment(4)— — (4)
Gains and other income, net16 — 15 31 
Interest expense, net— — (70)(70)
Transaction and integration costs— — (23)(23)
Other— — 
INCOME (LOSS) BEFORE INCOME TAXES AND NONCONTROLLING INTERESTS429 52 (213)268 
Provision for income taxes— — (91)(91)
NET INCOME (LOSS)429 52 (304)177 
Net income attributable to noncontrolling interests(1)
— — — — 
NET INCOME (LOSS) ATTRIBUTABLE TO COMMON SHAREHOLDERS$429 $52 $(304)$177 
SEGMENT MARGIN(2)
29%41%
(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-6
MARRIOTT VACATIONS WORLDWIDE CORPORATION
REVENUES AND PROFIT BY SEGMENT
for the six months ended June 30, 2022
(In millions)
(Unaudited)
Reportable SegmentCorporate and OtherTotal
Vacation OwnershipExchange & Third-Party Management
REVENUES
Sales of vacation ownership products$735 $— $— $735 
Management and exchange(1)
Ancillary revenues120 — 122 
Management fee revenues83 21 (4)100 
Exchange and other services revenues63 99 41 203 
Management and exchange266 122 37 425 
Rental251 22 — 273 
Financing143 — — 143 
Cost reimbursements(1)
652 14 (26)640 
TOTAL REVENUES$2,047 $158 $11 $2,216 
PROFIT
Development$199 $— $— $199 
Management and exchange(1)
152 57 (13)196 
Rental(1)
70 22 13 105 
Financing99 — — 99 
TOTAL PROFIT520 79 — 599 
OTHER
General and administrative— — (125)(125)
Depreciation and amortization(44)(16)(5)(65)
Litigation charges(5)— — (5)
Royalty fee(56)— — (56)
Losses and other expense, net35 16 (10)41 
Interest expense, net— — (57)(57)
Transaction and integration costs(1)— (64)(65)
Other— — 
INCOME (LOSS) BEFORE INCOME TAXES AND NONCONTROLLING INTERESTS450 79 (261)268 
Provision for income taxes— — (75)(75)
NET INCOME (LOSS)450 79 (336)193 
Net loss attributable to noncontrolling interests(1)
— — 
NET INCOME (LOSS) ATTRIBUTABLE TO COMMON SHAREHOLDERS$450 $79 $(335)$194 
SEGMENT MARGIN(2)
32%55%
(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
CONSOLIDATED CONTRACT SALES TO ADJUSTED DEVELOPMENT PROFIT
(In millions)
(Unaudited)

Three Months EndedSix Months Ended
June 30, 2023June 30, 2022June 30, 2023June 30, 2022
Consolidated contract sales$453 $506 $887 $900 
Less resales contract sales(10)(11)(21)(20)
Consolidated contract sales, net of resales443 495 866 880 
Plus:
Settlement revenue17 16 
Resales revenue12 
Revenue recognition adjustments:
Reportability(14)(47)
Sales reserve(45)(37)(83)(66)
Other(1)
(27)(32)(51)(56)
Sale of vacation ownership products391 425 766 735 
Less:
Cost of vacation ownership products(66)(80)(124)(140)
Marketing and sales(206)(214)(416)(396)
Development profit119 131 226 199 
Revenue recognition reportability adjustment(3)11 (3)35 
Purchase accounting adjustments
Adjusted development profit*$118 $147 $227 $243 
Development profit margin30.8%31.0%29.6%27.1%
Adjusted development profit margin*30.4%33.6%29.8%31.3%
(1) Adjustment for sales incentives that will not be recognized as Sale of vacation ownership products revenue and other adjustments to Sale of vacation ownership products revenue.
* Denotes non-GAAP financial measures. Please see “Non-GAAP Financial Measures” for additional information about our reasons for providing these alternative financial measures and limitations on their use.







A-8
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 EndedSix Months Ended
June 30, 2023June 30, 2022June 30, 2023June 30, 2022
Net income attributable to common shareholders$90 $136 $177 $194 
Provision for income taxes50 43 91 75 
Income before income taxes attributable to common shareholders140 179 268 269 
Certain items:
ILG integration33 $15 $58 
Welk acquisition and integration
Other transaction costs— — 
Transaction and integration costs10 37 23 65 
Early redemption of senior secured notes— — 10 — 
Gain on disposition of hotel/land(7)(33)(7)(33)
Gain on disposition of VRI Americas— (16)— (16)
Foreign currency translation(2)(4)
Insurance proceeds— (2)(2)(5)
Change in indemnification asset(1)(24)
Other— (4)
Gains and other income, net(10)(37)(31)(41)
Purchase accounting adjustments
Litigation charges
Impairment— — — 
Early termination of VRI management contract— (2)— (2)
Change in estimate relating to pre-acquisition contingencies— (3)— (3)
Other(3)— (2)— 
Adjusted pretax income*140 181 270 301 
Provision for income taxes(50)(50)(71)(89)
Adjusted net income attributable to common shareholders*$90 $131 $199 $212 
Diluted shares43.846.544.1 47.2 
Adjusted earnings per share - Diluted*$2.19 $2.87 $4.73 $4.55 
* Denotes non-GAAP financial measures. Please see “Non-GAAP Financial Measures” for additional information about our reasons for providing these alternative financial measures and limitations on their use.


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MARRIOTT VACATIONS WORLDWIDE CORPORATION
ADJUSTED EBITDA
(In millions)
(Unaudited)
Three Months EndedSix Months Ended
June 30, 2023June 30, 2022June 30, 2023June 30, 2022
NET INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS$90 $136 $177 $194 
Interest expense, net36 30 70 57 
Provision for income taxes50 43 91 75 
Depreciation and amortization34 32 66 65 
Share-based compensation12 12 19 20 
Certain items:
ILG integration33 15 58 
Welk acquisition and integration
Other transaction costs— — 
Transaction and integration costs10 37 23 65 
Early redemption of senior secured notes— — 10 — 
Gain on disposition of hotel/land(7)(33)(7)(33)
Gain on disposition of VRI Americas— (16)— (16)
Foreign currency translation(2)(4)
Insurance proceeds— (2)(2)(5)
Change in indemnification asset(1)(24)
Other— (4)
Gains and other income, net(10)(37)(31)(41)
Purchase accounting adjustments
Litigation charges
Impairment— — — 
Early termination of VRI management contract— (2)— (2)
Change in estimate relating to pre-acquisition contingencies— (3)— (3)
Other(3)— (2)— 
ADJUSTED EBITDA*$222 $255 $425 $443 
ADJUSTED EBITDA MARGIN*27%30%26%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.


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MARRIOTT VACATIONS WORLDWIDE CORPORATION
(In millions)
(Unaudited)
VACATION OWNERSHIP SEGMENT ADJUSTED EBITDA
Three Months EndedSix Months Ended
June 30, 2023June 30, 2022June 30, 2023June 30, 2022
SEGMENT FINANCIAL RESULTS ATTRIBUTABLE TO COMMON SHAREHOLDERS$224 $277 $429 $450 
Depreciation and amortization23 22 46 44 
Share-based compensation
Certain items:
Transaction and integration costs— — 
Gain on disposition of hotel/land(7)(33)(7)(33)
Foreign currency translation— — 
Insurance proceeds— — (2)(3)
Change in indemnification asset— — (3)— 
Other— — (4)— 
Gains and other income, net(7)(32)(16)(35)
Purchase accounting adjustments
Litigation charges
Impairment— — — 
Change in estimate relating to pre-acquisition contingencies— (3)— (3)
Other(2)— (2)— 
SEGMENT ADJUSTED EBITDA*$245 $274 $474 $473 
SEGMENT ADJUSTED EBITDA MARGIN*32%36%32%34%

EXCHANGE & THIRD-PARTY MANAGEMENT SEGMENT ADJUSTED EBITDA
Three Months EndedSix Months Ended
June 30, 2023June 30, 2022June 30, 2023June 30, 2022
SEGMENT FINANCIAL RESULTS ATTRIBUTABLE TO COMMON SHAREHOLDERS$24 $46 $52 $79 
Depreciation and amortization16 16 
Share-based compensation— — 
Certain items:
Gain on disposition of VRI Americas— (16)— (16)
Early termination of VRI management contract— (2)— (2)
SEGMENT ADJUSTED EBITDA*$32 $35 $69 $78 
SEGMENT ADJUSTED EBITDA MARGIN*52%52%54%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.


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MARRIOTT VACATIONS WORLDWIDE CORPORATION
INTERIM CONSOLIDATED BALANCE SHEETS
(In millions, except share and per share data)
Unaudited
June 30, 2023December 31, 2022
ASSETS
Cash and cash equivalents$242 $524 
Restricted cash (including $78 and $85 from VIEs, respectively)
238 330 
Accounts receivable, net (including $14 and $13 from VIEs, respectively)
313 292 
Vacation ownership notes receivable, net (including $1,863 and $1,792 from VIEs, respectively)
2,272 2,198 
Inventory660 660 
Property and equipment, net1,221 1,139 
Goodwill3,117 3,117 
Intangibles, net884 911 
Other (including $87 and $76 from VIEs, respectively)
535 468 
TOTAL ASSETS$9,482 $9,639 
LIABILITIES AND EQUITY
Accounts payable$209 $356 
Advance deposits175 158 
Accrued liabilities (including $3 and $5 from VIEs, respectively)
322 369 
Deferred revenue417 344 
Payroll and benefits liability174 251 
Deferred compensation liability154 139 
Securitized debt, net (including $2,052 and $1,982 from VIEs, respectively)
2,028 1,938 
Debt, net3,001 3,088 
Other180 167 
Deferred taxes344 331 
TOTAL LIABILITIES7,004 7,141 
Preferred stock — $0.01 par value; 2,000,000 shares authorized; none issued or outstanding
— — 
Common stock — $0.01 par value; 100,000,000 shares authorized; 75,806,578 and 75,744,524 shares issued, respectively
Treasury stock — at cost; 39,337,085 and 38,263,442 shares, respectively
(2,213)(2,054)
Additional paid-in capital3,947 3,941 
Accumulated other comprehensive income23 15 
Retained earnings718 593 
TOTAL MVW SHAREHOLDERS' EQUITY2,476 2,496 
Noncontrolling interests
TOTAL EQUITY2,478 2,498 
TOTAL LIABILITIES AND EQUITY$9,482 $9,639 
The abbreviation VIEs above means Variable Interest Entities.


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MARRIOTT VACATIONS WORLDWIDE CORPORATION
INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS
(In millions)
(Unaudited)
Six Months Ended
June 30, 2023June 30, 2022
OPERATING ACTIVITIES
Net income$177 $193 
Adjustments to reconcile net income to net cash, cash equivalents and restricted cash provided by operating activities:
Depreciation and amortization of intangibles66 65 
Amortization of debt discount and issuance costs12 10 
Vacation ownership notes receivable reserve79 66 
Share-based compensation19 20 
Impairment charges— 
Gains and other income, net(7)(47)
Deferred income taxes10 29 
Net change in assets and liabilities:
Accounts and contracts receivable(31)59 
Vacation ownership notes receivable originations(470)(483)
Vacation ownership notes receivable collections308 365 
Inventory46 25 
Other assets(61)(63)
Accounts payable, advance deposits and accrued liabilities(129)
Deferred revenue69 19 
Payroll and benefit liabilities(78)
Deferred compensation liability
Other liabilities12 — 
Deconsolidation of certain Consolidated Property Owners' Associations— (48)
Purchase of vacation ownership units for future transfer to inventory— (12)
Other, net(4)
Net cash, cash equivalents and restricted cash provided by operating activities27 218 
INVESTING ACTIVITIES
Proceeds from disposition of subsidiaries, net of cash and restricted cash transferred— 93 
Capital expenditures for property and equipment (excluding inventory)(63)(23)
Issuance of note receivable to VIE— (47)
Purchase of company owned life insurance(4)(11)
Other dispositions, net14 
Net cash, cash equivalents and restricted cash (used in) provided by investing activities(53)15 
Continued


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MARRIOTT VACATIONS WORLDWIDE CORPORATION
INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS (CONTINUED)
(In millions)
(Unaudited)
Six Months Ended
June 30, 2023June 30, 2022
FINANCING ACTIVITIES
Borrowings from securitization transactions743 477 
Repayment of debt related to securitization transactions(651)(485)
Proceeds from debt515 125 
Repayments of debt(706)(125)
Finance lease incentive10 — 
Finance lease payment(2)(2)
Payment of debt issuance costs(6)(9)
Repurchase of common stock(162)(312)
Payment of dividends(80)(75)
Payment of withholding taxes on vesting of restricted stock units(10)(22)
Net cash, cash equivalents and restricted cash used in financing activities(349)(428)
Effect of changes in exchange rates on cash, cash equivalents and restricted cash(2)
Change in cash, cash equivalents and restricted cash(374)(197)
Cash, cash equivalents and restricted cash, beginning of period854 803 
Cash, cash equivalents and restricted cash, end of period$480 $606 


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MARRIOTT VACATIONS WORLDWIDE CORPORATION
(In millions, except per share amounts)
2023 ADJUSTED NET INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS AND
ADJUSTED EARNINGS PER SHARE - DILUTED OUTLOOK
Fiscal Year 2023
(Low)
Fiscal Year 2023
(High)
Net income attributable to common shareholders$355 $375 
Provision for income taxes163 173 
Income before income taxes attributable to common shareholders518 548 
Certain items(1)
45 45 
Adjusted pretax income*563 593 
Provision for income taxes(153)(163)
Adjusted net income attributable to common shareholders*$410 $430 
Earnings per share - Diluted(2)
$8.51 $8.96 
Adjusted earnings per share - Diluted(2)*
$9.76 $10.22 
Diluted shares(2)
43.9 43.9 


2023 ADJUSTED EBITDA OUTLOOK
Fiscal Year 2023
(Low)
Fiscal Year 2023
(High)
Net income attributable to common shareholders$355 $375 
Interest expense145 145 
Provision for income taxes163 173 
Depreciation and amortization135 135 
Share-based compensation37 37 
Certain items(1)
45 45 
Adjusted EBITDA*$880 $910 
(1) Certain items adjustment includes $50 million of anticipated transaction and integration costs, $14 million of anticipated purchase accounting adjustments, $10 million of anticipated litigation charges, and $4 million of impairments, partially offset by $31 million of gains and other income, net, and $2 million of other adjustments.
(2) We expect 6.5 million shares to be included in diluted shares, reflecting the assumed conversion of our convertible notes and an add back of $18 million for interest expense to the numerator of the diluted earnings per share calculation.
* Denotes non-GAAP financial measures. Please see “Non-GAAP Financial Measures” for additional information about our reasons for providing these alternative financial measures and limitations on their use.


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MARRIOTT VACATIONS WORLDWIDE CORPORATION
2023 ADJUSTED FREE CASH FLOW OUTLOOK
(In millions)
Fiscal Year 2023
(Low)
Fiscal Year 2023
(High)
Net cash, cash equivalents and restricted cash provided by operating activities$360 $395 
Capital expenditures for property and equipment (excluding inventory)(110)(125)
Borrowings from securitizations, net of repayments90 130 
Securitized debt issuance costs(12)(12)
Free cash flow*328 388 
Adjustments:
Net change in borrowings available from the securitization of eligible vacation ownership notes receivable(1)
120 120 
Certain items(2)
92 92 
Adjusted free cash flow*$540 $600 

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


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MARRIOTT VACATIONS WORLDWIDE CORPORATION
QUARTERLY OPERATING METRICS
(Contract sales in millions)
YearQuarter EndedFull Year
March 31June 30September 30December 31
Vacation Ownership
Consolidated contract sales
2023$434 $453 
2022$394 $506 $483 $454 $1,837 
2021$226 $362 $380 $406 $1,374 
VPG
2023$4,358 $3,968 
2022$4,706 $4,613 $4,353 $4,088 $4,421 
2021$4,644 $4,304 $4,300 $4,305 $4,356 
Tours
202392,890 106,746 
202278,505 102,857 104,000 105,231 390,593 
202145,871 79,900 84,098 89,495 299,364 
Exchange & Third-Party Management
Total active Interval International members (000's)(1)
20231,568 1,566 
20221,606 1,596 1,591 1,566 1,566 
20211,479 1,321 1,313 1,296 1,296 
Average revenue per Interval International member
2023$42.07 $39.30 
2022$44.33 $38.79 $38.91 $35.60 $157.97 
2021$47.13 $46.36 $42.95 $42.93 $179.48 
(1) Includes members at the end of each period.


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


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