View Filing Data

Other comprehensive income (loss), net of tax:

$ 6

^[1]

$ (221)

$ 23

^[1]

$ (186)

Foreign currency translation adjustments

(1)

Total other comprehensive income (loss), net of tax

(1)

COMPREHENSIVE INCOME (LOSS)

$ 7

$ (220)

$ 22

$ (185)

[1]

The change in equity [net assets] of a business enterprise during a period from transactions and other events and circumstances from non-owner sources which are attributable to the reporting entity. It includes all changes in equity during a period except those resulting from investments by owners and distributions to owners, but excludes any and all transactions which are directly or indirectly attributable to that ownership interest in subsidiary equity which is not attributable to the parent.

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Net Income
-URI http://asc.fasb.org/extlink&oid=6518256

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 230
-SubTopic 10
-Section 45
-Paragraph 28
-URI http://asc.fasb.org/extlink&oid=6943989&loc=d3e3602-108585

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 225
-Section S99
-Paragraph 1
-Subparagraph (SX 210.7-04.19)
-URI http://asc.fasb.org/extlink&oid=6879464&loc=d3e573970-122913

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6371337&loc=d3e3550-109257

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 225
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SX 210.5-03.18)
-URI http://asc.fasb.org/extlink&oid=6880815&loc=d3e20235-122688

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 225
-Section S99
-Paragraph 1
-Subparagraph (SX 210.7-04.22)
-URI http://asc.fasb.org/extlink&oid=6879464&loc=d3e573970-122913

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Other Comprehensive Income
-URI http://asc.fasb.org/extlink&oid=6519514

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 45
-Paragraph 6
-URI http://asc.fasb.org/extlink&oid=20435746&loc=d3e565-108580

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Accounting Research Bulletin (ARB)
-Number 51
-Paragraph 38
-Subparagraph d
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 130
-Paragraph 10, 15
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Accounting Research Bulletin (ARB)
-Number 51
-Paragraph A7
-Appendix A

Reference 12: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Emerging Issues Task Force (EITF)
-Number 87-21
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 13: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 03
-Paragraph 19
-Article 5

Reference 14: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Accounting Research Bulletin (ARB)
-Number 51
-Paragraph 38
-Subparagraph a
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 15: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 95
-Paragraph 28, 29, 30
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 16: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 04
-Paragraph 20
-Article 9

Interim Consolidated Balance Sheets - USD ($) $ in Millions	Sep. 07, 2012	Dec. 30, 2011
ASSETS
Cash and cash equivalents	$ 212	$ 110
Restricted cash (including $47 and $42 from VIEs, respectively)	72	81
Accounts and contracts receivable (including $5 and $0 from VIEs, respectively)	121	105
Notes receivable (including $834 and $910 from VIEs, respectively)	1,065	1,149
Inventory	897	959
Property and equipment	272	285
Other (including $0 and $6 from VIEs, respectively)	107	157
Total Assets	2,746	2,846
LIABILITIES AND EQUITY
Accounts payable	79	145
Advance deposits	43	46
Accrued liabilities (including $3 and $0 from VIEs, respectively)	147	121
Deferred revenue	49	29
Payroll and benefits liability	72	55
Liability for Marriott Rewards loyalty program	179	225
Deferred compensation liability	45	47
Mandatorily redeemable preferred stock of consolidated subsidiary	40	40
Debt (including $790 and $847 from VIEs, respectively)	793	850
Other (including $0 and $2 from VIEs, respectively)	80	76
Deferred taxes	67	78
Total Liabilities	1,594	1,712
Contingencies and Commitments (Note 7)
Preferred stock-$.01 par value; 2,000,000 shares authorized; none issued or outstanding
Common stock-$.01 par value; 100,000,000 shares authorized; 34,415,985 and 33,845,700 shares issued and outstanding, respectively
Additional paid-in capital	1,113	1,117
Accumulated other comprehensive income	18	19
Retained earnings (deficit)	21	(2)
Total Equity	1,152	1,134
Total Liabilities and Equity	$ 2,746	$ 2,846

Interim Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions	Sep. 07, 2012	Dec. 30, 2011
Restricted cash	$ 72	$ 81
Accounts and contracts receivable	121	105
Notes receivable	1,065	1,149
Other assets	107	157
Accrued liabilities	147	121
Debt	793	850
Other liabilities	$ 80	$ 76
Preferred stock, par value	$ 0.01	$ 0.01
Preferred stock, shares authorized	2,000,000	2,000,000
Preferred stock, issued	0	0
Preferred stock, outstanding	0	0
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	100,000,000	100,000,000
Common stock, shares issued	34,415,985	33,845,700
Common stock, shares outstanding	34,415,985	33,845,700
Variable Interest Entity
Restricted cash	$ 47	$ 42
Accounts and contracts receivable	5	0
Notes receivable	834	910
Other assets	0	6
Accrued liabilities	3	0
Debt	790	847
Other liabilities	$ 0	$ 2

Interim Consolidated Statements Of Cash Flows - USD ($)
$ in Millions

8 Months Ended

Sep. 07, 2012

Sep. 09, 2011

OPERATING ACTIVITIES

Adjustments to reconcile net income (loss) to net cash provided by operating activities:

$ 23

^[1]

$ (186)

Depreciation

Amortization of debt issuance costs

Impairment reversals on equity investment

Share-based compensation

Deferred income taxes

(24)

(70)

Impairment charge

324

(2)

(4)

Net change in assets and liabilities:

Accounts and contracts receivable

(15)

Notes receivable originations

(164)

(171)

Notes receivable collections

217

220

Inventory

Other assets

Accounts payable, advance deposits and accrued liabilities

(42)

Payroll and benefit liabilities

(46)

(41)

Deferred revenue

(8)

Deferred compensation liability

(2)

(1)

Net cash provided by operating activities

Other, net

158

248

INVESTING ACTIVITIES

Capital expenditures for property and equipment (excluding inventory)

(11)

Note collections

Proceeds from sale of property and equipment

Decrease in restricted cash

Net cash provided by investing activities

FINANCING ACTIVITIES

Borrowings from securitization transactions

238

Repayment of debt related to securitizations

(295)

(186)

Borrowings on Revolving Corporate Credit Facility

Repayment of Revolving Corporate Credit Facility

(15)

Repayment of third party debt

(2)

Proceeds from stock option exercises

Payment of withholding taxes on vesting of restricted stock units

(3)

Net distribution to Marriott International

(71)

Net cash used in financing activities

(56)

(259)

Effect of changes in exchange rates on cash and cash equivalents

(1)

INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS

102

(1)

CASH AND CASH EQUIVALENTS, beginning of period

110

CASH AND CASH EQUIVALENTS, end of period

212

$ 25

SUPPLEMENTAL DISCLOSURE OF NON-CASH FINANCING ACTIVITIES

Non-cash reduction of Additional paid-in capital for increase in Deferred tax liabilities distributed to Marriott Vacations Worldwide at Spin-off

$ (12)

[1]

Summary Of Significant Accounting Policies

8 Months Ended

Sep. 07, 2012

Summary Of Significant Accounting Policies

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Our Business

Marriott Vacations Worldwide Corporation (“Marriott Vacations Worldwide,” “we” or “us,” which includes our consolidated subsidiaries except where the context of the reference is to a single corporate entity) is the exclusive worldwide developer, marketer, seller and manager of vacation ownership and related products under the Marriott Vacation Club and Grand Residences by Marriott brands. We are also the exclusive worldwide developer, marketer and seller of vacation ownership and related products under the Ritz-Carlton Destination Club brand, and we have the non-exclusive right to develop, market and sell whole ownership residential products under the Ritz-Carlton Residences brand. The Ritz-Carlton Hotel Company, L.L.C. (“Ritz-Carlton”), a subsidiary of Marriott International, Inc. (“Marriott International”), generally provides on-site management for Ritz-Carlton branded properties.

Our business is grouped into four reportable segments: North America, Luxury, Europe and Asia Pacific. We operate 64 properties in the United States and eight other countries and territories.

We generate most of our revenues from four primary sources: selling vacation ownership products, managing our resorts, financing consumer purchases, and renting vacation ownership inventory.

Our Spin-Off from Marriott International, Inc.

On October 25, 2011, the board of directors of Marriott International approved the spin-off of its vacation ownership division into an independent public company, Marriott Vacations Worldwide, through the distribution of 100 percent of the outstanding shares of Marriott Vacations Worldwide common stock to the shareholders of Marriott International (the “Spin-Off”). On November 21, 2011, the Spin-Off of Marriott Vacations Worldwide was completed pursuant to a Separation and Distribution Agreement (the “Separation and Distribution Agreement”) between Marriott Vacations Worldwide and Marriott International.

Prior to the Spin-Off, Marriott International completed an internal reorganization to contribute its non-U.S. and U.S. subsidiaries that conducted its vacation ownership business to Marriott Vacations Worldwide, a newly formed wholly owned subsidiary of Marriott International; the contributed subsidiaries included Marriott Ownership Resorts, Inc., which does business under the name Marriott Vacation Club International. The distribution of Marriott Vacations Worldwide common stock was made on November 21, 2011, with Marriott International shareholders receiving one share of Marriott Vacations Worldwide common stock for every ten shares of Marriott International common stock held as of the close of business Eastern time on the record date of November 10, 2011. Fractional shares of Marriott Vacations Worldwide common stock were not distributed; any fractional share of Marriott Vacations Worldwide common stock otherwise issuable to a Marriott International shareholder was sold in the open market on such shareholder’s behalf, with such shareholder receiving a cash payment in lieu of such fractional share.

In connection with the Spin-Off, we entered into the Separation and Distribution Agreement and several other agreements which govern the ongoing relationship between Marriott Vacations Worldwide and Marriott International. See Footnote No. 12 “Related Party Transactions,” for further information on the ongoing relationship with Marriott International.

Principles of Consolidation and Basis of Presentation

The interim consolidated financial statements presented herein and discussed below include 100 percent of the assets, liabilities, revenues, expenses and cash flows of Marriott Vacations Worldwide, all entities in which Marriott Vacations Worldwide has a controlling voting interest (“subsidiaries”), and those variable interest entities for which Marriott Vacations Worldwide is the primary beneficiary in accordance with the consolidation accounting guidance. Through the date of the Spin-Off, these interim financial statements present the historical consolidated results of operations, financial position and cash flows of the Marriott Vacations Worldwide business that now comprises our operations. Intercompany accounts and transactions between consolidated companies have been eliminated in consolidation.

Through the date of the Spin-Off, the interim consolidated financial statements presented herein and discussed below were prepared on a stand-alone basis and were derived from the interim consolidated financial statements and accounting records of Marriott International. These interim consolidated financial statements were prepared as if the reorganization described under “Our Spin-Off from Marriott International, Inc.” above had taken place as of the earliest period presented. The interim consolidated financial statements reflect our historical financial position, results of operations and cash flows as we have historically operated, in conformity with United States Generally Accepted Accounting Principles (“GAAP”). All significant intracompany transactions and accounts within these interim consolidated financial statements have been eliminated.

Prior to the Spin-Off, Marriott Vacations Worldwide was a subsidiary of Marriott International. The financial information included herein may not necessarily reflect our financial position, results of operations and cash flows in the future or what our financial position, results of operations and cash flows would have been had we been an independent, publicly traded company during all of the periods presented.

We refer to (i) our Interim Consolidated Financial Statements as our “Financial Statements,” (ii) our Interim Consolidated Statements of Operations as our “Statements of Operations,” (iii) our Interim Consolidated Balance Sheets as our “Balance Sheets” and (iv) our Interim Consolidated Statements of Cash Flows as our “Cash Flows.”

Unless otherwise specified, each reference to a particular quarter in these Financial Statements means the quarter ended on the date shown in the following table, rather than the corresponding calendar quarter:


Fiscal Year		Quarter-End Date
2012 Third Quarter		September 7, 2012
2012 Second Quarter		June 15, 2012
2012 First Quarter		March 23, 2012
2011 Third Quarter		September 9, 2011
2011 Second Quarter		June 17, 2011
2011 First Quarter		March 25, 2011

In our opinion, our Financial Statements reflect all normal and recurring adjustments necessary to present fairly our financial position and the results of our operations and cash flows for the periods presented. Interim results may not be indicative of fiscal year performance because of, among other reasons, seasonal and short-term variations.

These Financial Statements have not been audited. We have condensed or omitted certain information and footnote disclosures normally included in financial statements presented in accordance with GAAP. Although we believe our footnote disclosures are adequate to make the information presented not misleading, you should read these interim Financial Statements in conjunction with the audited annual Consolidated Financial Statements and notes to those Consolidated Financial Statements included in our Annual Report on Form 10-K for the fiscal year ended December 30, 2011.

All significant transactions between us and Marriott International have been included in these Financial Statements. The total net effect of the settlement of these intercompany transactions prior to the Spin-Off is reflected in the Cash Flows as a financing activity. In connection with the Spin-Off, we completed certain transactions with Marriott International related to our separation from Marriott International, which resulted in a net reduction to our equity of approximately $500 million. These transactions primarily consisted of the reversal of our deferred tax assets, which were retained by Marriott International following the Spin-Off, and establishment of deferred tax liabilities. Retained earnings represents the results of operations subsequent to November 20, 2011.

Through the date of the Spin-Off, our Financial Statements include costs for services provided by Marriott International including, but not limited to, information technology support, systems maintenance, telecommunications, accounts payable, payroll and benefits, human resources, self-insurance and other shared services. Historically, these costs were charged to us based on specific identification or on a basis determined by Marriott International to reflect a reasonable allocation to us of the actual costs incurred to perform these services. Marriott International allocated indirect general and administrative costs to us for certain functions provided by Marriott International. The services provided to us included, but were not limited to, executive office, legal, tax, finance, government and public relations, internal audit, treasury, investor relations, human resources and other administrative support, which were allocated to us primarily on the basis of our proportion of Marriott International’s overall revenue. We consider the basis on which the expenses have been allocated to be a reasonable reflection of the utilization of services provided to or the benefit received by us during the periods presented. The allocations may not, however, reflect the expense we would have incurred as an independent, publicly traded company for the periods presented. Actual costs that might have been incurred had we been a stand-alone company would depend on a number of factors, including the chosen organizational structure, what functions we might have performed ourselves or outsourced and strategic decisions we might have made in areas such as information technology and infrastructure. Following the Spin-Off, we perform these functions using our own resources or purchased services from either Marriott International or third parties. For an interim period some of these functions will continue to be provided by Marriott International under Transition Services Agreements (“TSAs”). In addition to the TSAs, we entered into a number of commercial agreements with Marriott International in connection with the Spin-Off, many of which have terms longer than one year. These agreements may not have existed prior to the Spin-Off, or may be on different terms than the terms of agreements that existed prior to Spin-Off.

Prior to the Spin-Off, the majority of our domestic cash was transferred to Marriott International daily and Marriott International funded our operating and investing activities as needed. Accordingly, the cash and cash equivalents held by Marriott International at the corporate level were not allocated to us for any of the periods prior to the Spin-Off presented. Prior to the Spin-Off, cash and cash equivalents in our Balance Sheets primarily represented cash held locally by international entities included in our Financial Statements. We included debt incurred from our limited direct financing and historical vacation ownership notes receivable securitizations on our Balance Sheets, as this debt is specific to our business. Marriott International did not allocate a portion of its external senior debt interest cost to us since none of the external senior debt recorded by Marriott International was directly related to our business. We also did not include any interest expense for cash advances from Marriott International since historically Marriott International did not allocate any interest expense related to intercompany advances to any of the historical Marriott International divisions.

Marriott International maintains self-insurance programs at a corporate level. Marriott International allocated a portion of expenses associated with these programs to us as part of the historical costs for services Marriott International provided. In connection with the Spin-Off, Marriott International did not allocate any portion of the related reserves as these reserves represent obligations of Marriott International which are not transferable.

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect amounts reported in the financial statements and accompanying notes. Such estimates include, but are not limited to, revenue recognition, cost of vacation ownership products, inventory valuation, property and equipment valuation, loan loss reserves, Marriott Rewards loyalty program liabilities, equity-based compensation, income taxes and loss contingencies. Actual amounts may differ from these estimated amounts.

We have reclassified certain prior year amounts to conform to our 2012 presentation.

Restatement of Prior Year Cash Flow Activity Classification

While preparing our Cash Flows for the year ended December 30, 2011, we discovered errors in the presentation of certain items within our prior periods. Consequently, we have restated the accompanying Cash Flows for the thirty-six weeks ended September 9, 2011, appearing herein, from amounts previously reported to correct the prior period misstatements for these classification errors. Based on our evaluation of relevant quantitative and qualitative factors, we determined the identified misstatements are immaterial to our individual prior period Financial Statements.

The tables below summarize the effect of the restatement of the previously reported Cash Flow activities for the thirty-six weeks ended September 9, 2011.


	For the Thirty-Six Weeks Ended September 9, 2011
*($ in millions)*	As Previously Reported			Adjustment			As Restated
OPERATING ACTIVITIES
Share-based compensation	$	—		$	7		$	7
All other, including working capital changes		29			(8	)		21
Net cash provided by operating activities	$	249		$	(1	)	$	248

INVESTING ACTIVITIES
Note collections	$	—		$	20		$	20
Net cash (used in) provided by investing activities	$	(10	)	$	20		$	10

FINANCING ACTIVITIES
Repayment of debt related to securitizations	$	(187	)	$	1		$	(186	)
Note collections		20			(20	)		—
Net cash used in financing activities	$	(240	)	$	(19	)	$	(259	)

New Accounting Standards

Accounting Standards Update No. 2011-04—“Fair Value Measurement (Topic 820): Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs” (“ASU No. 2011-04”)

ASU No. 2011-04 generally provides a uniform framework for fair value measurements and related disclosures between GAAP and International Financial Reporting Standards. Additional disclosure requirements in the update include: (1) for Level 3 fair value measurements, quantitative information about unobservable inputs used, a description of the valuation processes used by the entity, and a qualitative discussion about the sensitivity of the measurements to changes in the unobservable inputs; (2) for an entity’s use of a nonfinancial asset that is different from the asset’s highest and best use, the reason for the difference; (3) for financial instruments not measured at fair value but for which disclosure of fair value is required, the fair value hierarchy level in which the fair value measurements were determined; and (4) the disclosure of all transfers between Level 1 and Level 2 of the fair value hierarchy. ASU No. 2011-04 became effective during our first quarter of 2012. The adoption of this update did not have a material impact on our Financial Statements.

Accounting Standards Update No. 2011-05—“Comprehensive Income (Topic 220): Presentation of Comprehensive Income” (“ASU No. 2011-05”) and Accounting Standards Update No. 2011-12—“Comprehensive Income (Topic 220): Deferral of the Effective Date for Amendments to the Presentation of Reclassifications of Items Out of Accumulated Other Comprehensive Income in ASU 2011-05” (“ASU No. 2011-12”)

ASU No. 2011-05 amends existing guidance by allowing only two options for presenting the components of net income and other comprehensive income: (1) in a single continuous statement of comprehensive income, or (2) in two separate but consecutive financial statements, consisting of an income statement followed by a separate statement of other comprehensive income. ASU No. 2011-12 defers until further notice ASU No. 2011-05’s requirement that items that are reclassified from other comprehensive income to net income be presented on the face of the financial statements. ASU No. 2011-05 requires retrospective application, and both ASU No. 2011-05 and ASU No. 2011-12 became effective during our first quarter of 2012. The adoption of these updates changed the order in which certain financial statements are presented and has required us to provide additional detail on those financial statements, but did not have any substantive impact on our Financial Statements.

Income Taxes

8 Months Ended

Sep. 07, 2012

Income Taxes

2. INCOME TAXES

Prior to the Spin-Off, our operating results were included in Marriott International’s combined U.S. federal and state income tax returns and in many of Marriott International’s tax filings for non-U.S. jurisdictions. Subsequent to the Spin-Off, Marriott Vacations Worldwide files its own U.S. consolidated federal and state tax returns, as well as separate tax filings for non-U.S. jurisdictions. For periods prior to the Spin-Off, we determined our provision for income taxes and our contribution to Marriott International’s tax losses and tax credits on a separate return basis and included each in these Financial Statements. Our separate return basis tax loss and tax credit carry backs may not reflect the tax positions taken or to be taken by Marriott International for tax losses occurring prior to the Spin-Off. In many cases tax losses and tax credits generated by us prior to the Spin-Off have been available for use by Marriott International and will largely continue to be available to Marriott International in the future.

On November 21, 2011, we entered into a Tax Sharing and Indemnification Agreement with Marriott International (the “Tax Sharing and Indemnification Agreement”), which governs the allocation of responsibility for federal, state, local and foreign income and other taxes related to taxable periods prior to and subsequent to the Spin-Off between Marriott International and Marriott Vacations Worldwide. Under this agreement, if any part of the Spin-Off fails to qualify for the tax treatment stated in the ruling Marriott International received from the U.S. Internal Revenue Service (the “IRS”) in connection with the Spin-Off, taxes imposed will be allocated between Marriott International and Marriott Vacations Worldwide and each will indemnify and hold harmless the other from and against the taxes so allocated. During the twelve and thirty-six weeks ended September 7, 2012, Marriott International completed the valuation of the assets distributed to Marriott Vacations Worldwide at the time of the Spin-Off, which resulted in an increase in our Deferred tax liabilities of $12 million and a corresponding reduction of Additional paid-in capital.

In addition, under the Tax Sharing and Indemnification Agreement, Marriott International is allocated the responsibility for payment of taxes for our taxable income prior to Spin-Off and we are allocated the responsibility for payment of taxes for our taxable income subsequent to Spin-Off.

We had potential unrecognized tax benefits of $1 million at September 7, 2012 and $2 million at December 30, 2011 relating to contested tax assessments, which, if realized, would have impacted our effective tax rate.

As a large taxpayer, Marriott International is continuously under audit by the IRS and other taxing authorities. Marriott Vacations Worldwide has joined in the Marriott International U.S. Federal tax consolidated filing for all years prior to 2011 and the portion of 2011 up to the date of the Spin-Off. The IRS has examined Marriott International’s federal income tax returns, and it has settled all issues for the tax years through 2009. Marriott International participated in the IRS Compliance Assurance Program for the 2011 and 2010 tax years. Although we do not anticipate that a significant impact to our unrecognized tax benefit balance will occur during the next fiscal year as a result of these audits, it remains possible that the amount of our liability for unrecognized tax benefits could change over that time period. Pursuant to the Tax Sharing and Indemnification Agreement, Marriott International is liable and shall pay the relevant tax authority for all taxes related to the taxable income prior to the Spin-Off. Our tax years subsequent to the Spin-Off are subject to examination by relevant tax authorities.

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

Contingencies And Commitments

Notes Receivable

8 Months Ended

Sep. 07, 2012

Notes Receivable

3. NOTES RECEIVABLE

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


*($ in millions)*	September 7, 2012		December 30, 2011
Vacation ownership notes receivable—securitized	$	834	$	910
Vacation ownership notes receivable—non-securitized		231		239

Total vacation ownership notes receivable	$	1,065	$	1,149

The following tables show future principal payments, net of reserves, as well as interest rates for our securitized and non-securitized vacation ownership notes receivable:


*($ in millions)*	Non-Securitized Vacation Ownership Notes Receivable			Securitized Vacation Ownership Notes Receivable			Total
2012	$	26		$	38		$	64
2013		38			119			157
2014		28			122			150
2015		23			120			143
2016		21			112			133
Thereafter		95			323			418

Balance at September 7, 2012	$	231		$	834		$	1,065

Weighted average stated interest rate at September 7, 2012		11.4	%		13.0	%		12.6	%
Range of stated interest rates at September 7, 2012		0.0% to 19.5	%		6.1% to 19.5	%		0.0% to 19.5	%

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


*($ in millions)*	Twelve Weeks Ended				Thirty-Six Weeks Ended
*($ in millions)*	September 7, 2012		September 9, 2011		September 7, 2012		September 9, 2011
Interest income associated with vacation ownership notes receivable—securitized	$	28	$	29	$	81	$	91
Interest income associated with vacation ownership notes receivable—non-securitized		5		8		20		22

Total interest income associated with vacation ownership notes receivable	$	33	$	37	$	101	$	113

We record an estimate of expected uncollectibility on all notes receivable from vacation ownership purchasers as a reduction of revenues from the sale of vacation ownership products at the time we recognize profit on a vacation ownership product sale. We fully reserve for all defaulted vacation ownership notes receivable in addition to recording a reserve on the estimated uncollectible portion of the remaining vacation ownership notes receivable. For those vacation ownership notes receivable that are not in default, we assess collectability based on pools of vacation ownership notes receivable because we hold large numbers of homogeneous vacation ownership notes receivable. We use the same criteria to estimate uncollectibility for non-securitized vacation ownership notes receivable and securitized vacation ownership notes receivable because they perform similarly. We estimate uncollectibility for each pool based on historical activity for similar vacation ownership notes receivable.

The following table summarizes the activity related to our vacation ownership notes receivable reserve for the thirty-six weeks ended September 7, 2012:


*($ in millions)*	Non-Securitized Vacation Ownership Notes Receivable Reserve			Securitized Vacation Ownership Notes Receivable Reserve			Total
Balance at year-end 2011	$	104		$	67		$	171
Provision for loan losses		16			14			30
Securitizations		(21	)		21			—
Clean-up calls ⁽¹⁾		12			(12	)		—
Write-offs		(45	)		—			(45	)
Defaulted notes receivable repurchase activity ⁽²⁾		29			(29	)		—

Balance at September 7, 2012	$	95		$	61		$	156

⁽¹⁾	Refers to our voluntary repurchase of previously securitized non-defaulted vacation ownership notes receivable to retire previous notes receivable securitizations.

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

Although we consider loans to owners to be past due if we do not receive payment within 30 days of the due date, we suspend accrual of interest only on those loans that are over 90 days past due. We consider loans over 150 days past due to be in default. We apply payments we receive for vacation ownership notes receivable on non-accrual status first to interest, then to principal and any remainder to fees. We resume accruing interest when vacation ownership notes receivable are less than 90 days past due. We do not accept payments for vacation ownership notes receivable during the foreclosure process unless the amount is sufficient to pay all principal, interest, fees and penalties owed and fully reinstate the note. We write off uncollectible vacation ownership notes receivable against the reserve once we receive title of the vacation ownership products through the foreclosure or deed-in-lieu process or in Europe or Asia Pacific, when revocation is complete. For both non-securitized and securitized vacation ownership notes receivable, we estimated average remaining default rates of 7.46 percent and 7.71 percent as of September 7, 2012 and December 30, 2011, respectively. A 0.5 percentage point increase in the estimated default rate would have resulted in an increase in our allowance for credit losses of $5 million as of September 7, 2012 and $6 million as of December 30, 2011.

The following table shows our recorded investment in non-accrual vacation ownership notes receivable, which are vacation ownership notes receivable that are 90 days or more past due.


*($ in millions)*	Non-Securitized Vacation Ownership Notes Receivable		Securitized Vacation Ownership Notes Receivable		Total
Investment in notes receivable on non-accrual status at September 7, 2012	$	84	$	9	$	93
Investment in notes receivable on non-accrual status at year-end 2011	$	90	$	11	$	101
Average investment in notes receivable on non-accrual status during the thirty-six weeks ended September 7, 2012	$	87	$	10	$	97
Average investment in notes receivable on non-accrual status during the thirty-six weeks ended September 9, 2011	$	108	$	14	$	122

The following table shows the aging of the recorded investment in principal, before reserves, in vacation ownership notes receivable as of September 7, 2012:


*($ in millions)*	Non-Securitized Vacation Ownership Notes Receivable		Securitized Vacation Ownership Notes Receivable		Total
31—90 days past due	$	11	$	19	$	30
91—150 days past due		8		8		16
Greater than 150 days past due		76		1		77

Total past due		95		28		123
Current		231		867		1,098

Total vacation ownership notes receivable	$	326	$	895	$	1,221

The following table shows the aging of the recorded investment in principal, before reserves, in vacation ownership notes receivable as of December 30, 2011:


*($ in millions)*	Non-Securitized Vacation Ownership Notes Receivable		Securitized Vacation Ownership Notes Receivable		Total
31—90 days past due	$	11	$	24	$	35
91—150 days past due		8		11		19
Greater than 150 days past due		82		—		82

Total past due		101		35		136
Current		242		942		1,184

Total vacation ownership notes receivable	$	343	$	977	$	1,320

Financial Instruments

8 Months Ended

Sep. 07, 2012

Financial Instruments

4. FINANCIAL INSTRUMENTS

The following table shows the carrying values and the estimated fair values of financial assets and liabilities that qualify as financial instruments, determined in accordance with current guidance for disclosures on the fair value of financial instruments. Considerable judgment is required in interpreting market data to develop estimates of fair value. The use of different market assumptions and/or estimation methodologies could have a material effect on the estimated fair value amounts. The table excludes Cash and cash equivalents, Restricted cash, Accounts and contracts receivable and Accounts payable, which had fair values approximating their carrying amounts due to the short maturities and liquidity of these instruments.


	At September 7, 2012						At December 30, 2011
*($ in millions)*	Carrying Amount			Fair Value⁽¹⁾			Carrying Amount			Fair Value⁽¹⁾
Vacation ownership notes receivable—securitized	$	834		$	1,019		$	910		$	1,061
Vacation ownership notes receivable—non-securitized		231			241			239			245

Total financial assets	$	1,065		$	1,260		$	1,149		$	1,306

Non-recourse debt associated with securitized notes receivable	$	(790	)	$	(829	)	$	(729	)	$	(750	)
Warehouse credit facility		—			—			(118	)		(116	)
Other debt		(3	)		(3	)		(3	)		(3	)
Mandatorily redeemable preferred stock of consolidated subsidiary		(40	)		(46	)		(40	)		(40	)
Liability for Marriott Rewards loyalty program		(179	)		(165	)		(225	)		(206	)
Other liabilities		(31	)		(34	)		(29	)		(32	)

Total financial liabilities	$	(1,043	)	$	(1,077	)	$	(1,144	)	$	(1,147	)

⁽¹⁾	Fair value of financial instruments has been determined using Level 3 inputs.

Vacation Ownership Notes Receivable

We estimate the fair value of our securitized vacation ownership notes receivable using a discounted cash flow model. We believe this is comparable to the model that an independent third party would use in the current market. Our model uses default rates, prepayment rates, coupon rates and loan terms for our securitized vacation ownership notes receivable portfolio as key drivers of risk and relative value, that when applied in combination with pricing parameters, determines the fair value of the underlying notes receivable.

We bifurcate our non-securitized vacation ownership notes receivable into two pools as follows:


*($ in millions)*	At September 7, 2012				At December 30, 2011
*($ in millions)*	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Vacation ownership notes receivable—eligible for securitization	$	47	$	57	$	41	$	47
Vacation ownership notes receivable—not eligible for securitization		184		184		198		198

Total vacation ownership notes receivable—non-securitized	$	231	$	241	$	239	$	245

We estimate the fair value of a portion of our non-securitized vacation ownership notes receivable that we believe will ultimately be securitized in the same manner as securitized vacation ownership notes receivable. We value the remaining non-securitized vacation ownership notes receivable at their carrying value, rather than using our pricing model. We believe that the carrying value of these particular vacation ownership notes receivable approximates fair value because the stated interest rates of these loans are consistent with current market rates and the reserve for these vacation ownership notes receivable appropriately accounts for risks in default rates, prepayment rates and loan terms.

Non-Recourse Debt Associated with Securitized Notes Receivable

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

Warehouse Credit Facility

We internally generate cash flow estimates by modeling all funding activity for our non-recourse warehouse credit facility (the “Warehouse Credit Facility”) with consideration given to the collateral pledged to date. The key drivers in our analysis include default rates, prepayment rates, bond interest rates and structural factors, which we use to estimate the projected cash flows. The discount rate used to calculate the fair value of these cash flows is composed of the market swap rate for the specific average life of the cash flows plus a credit spread. Because the Warehouse Credit Facility debt is not traded in the market, we use a credit spread which is the average of indicative credit spreads obtained from investment banks on our securitized debt for the particular rating that the Warehouse Credit Facility is structured to achieve.

Mandatorily Redeemable Preferred Stock of Consolidated Subsidiary

We estimate the fair value of the mandatorily redeemable preferred stock of our consolidated subsidiary using a discounted cash flow model. We believe this is comparable to the model that an independent third party would use in the current market. Our model includes an assessment of our subsidiary’s credit risk and the instrument’s contractual dividend rate.

Liability for Marriott Rewards Loyalty Program

We determine the carrying value of the future redemption obligation of our liability for the Marriott Rewards loyalty program based on statistical formulas that project the timing of future redemption of Marriott Rewards points based on historical levels, including estimates of the Marriott Rewards points that will eventually be redeemed and the “breakage” for points that are likely to never be redeemed. We estimate the fair value of the future redemption obligation by adjusting the contractual discount rate to an estimate of that of a market participant with similar nonperformance risk.

Other Liabilities

We estimate the fair value of our other liabilities that are financial instruments using expected future payments discounted at risk-adjusted rates. These liabilities represent guarantee costs and reserves and deposit liabilities. The carrying values of our guarantee costs and reserves approximate their fair values. We estimate the fair value of our deposit liabilities primarily by discounting future payments at a risk-adjusted rate.

Earnings Per Share

8 Months Ended

Sep. 07, 2012

Earnings Per Share

5. EARNINGS PER SHARE

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

On November 21, 2011, we ceased to be a subsidiary of Marriott International and became an independent publicly traded company. On November 21, 2011, Marriott International distributed 33.7 million shares of $.01 par value Marriott Vacations Worldwide common stock to Marriott International’s shareholders of record as of the close of business Eastern time on the record date of November 10, 2011. This share amount is utilized for the calculation of basic earnings per common share for the third quarter of 2011 because all 100 shares of our common stock outstanding prior to November 21, 2011 were held by Marriott International. For the third quarter of 2011, the same number of shares is used for diluted earnings (loss) per common share and for basic earnings (loss) per common share as no dilutive securities were outstanding for such period.

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


	Twelve Weeks Ended					Thirty-Six Weeks Ended
*(in millions, except per share amounts)*	September 7, 2012 ⁽¹⁾		September 9, 2011			September 7, 2012 ⁽¹⁾		September 9, 2011
Computation of Basic Earnings (Loss) Per Share
Net income (loss)	$	6	$	(221	)	$	23	$	(186	)
Weighted average shares outstanding		34.4		33.7			34.2		33.7

Basic earnings (loss) per share	$	0.18	$	(6.57	)	$	0.68	$	(5.52	)

Computation of Diluted Earnings (Loss) Per Share
Net income (loss)	$	6	$	(221	)	$	23	$	(186	)

Weighted average shares outstanding		34.4		33.7			34.2		33.7
Effect of dilutive securities
Employee stock options and SARs		1.1		—			1.0		—
Restricted stock units		0.7		—			0.8		—

Shares for diluted earnings (loss) per share		36.2		33.7			36.0		33.7

Diluted earnings (loss) per share	$	0.17	$	(6.57	)	$	0.65	$	(5.52	)

⁽¹⁾

For the twelve week period ended September 7, 2012, we excluded 1,183 SARs with an exercise price of $32.74 in our calculation of diluted earnings (loss) per share for the twelve week period ended September 7, 2012, because those exercise prices were greater than the average market prices for the applicable period.

In accordance with the applicable accounting guidance for calculating earnings per share, we excluded 38,487 options and SARs with exercise prices ranging from $28.16 to $32.74 in our calculation of diluted earnings per share for the thirty-six week period ended September 7, 2012, because those exercise prices were greater than the average market prices for the applicable period.

Inventory

8 Months Ended

Sep. 07, 2012

Inventory

6. INVENTORY

The following table shows the composition of our inventory balances:


*($ in millions)*	At September 7, 2012		At December 30, 2011
Finished goods	$	440	$	448
Work-in-progress		164		215
Land and infrastructure		287		290

Real estate inventory		891		953
Operating supplies and retail inventory		6		6

	$	897	$	959

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

Contingencies And Commitments

8 Months Ended

Sep. 07, 2012

7. CONTINGENCIES AND COMMITMENTS

Guarantees

We issue guarantees to certain lenders in connection with the provision of third-party financing for our sales of vacation ownership products for the Luxury and Asia Pacific segments. The terms of guarantees to lenders generally require us to fund if the purchaser fails to pay under the term of its note payable. Prior to the Spin-Off, Marriott International guaranteed our performance under these arrangements. Subsequent to the Spin-Off, Marriott International continues to hold a standby letter of credit related to the Asia Pacific segment guarantee. If Marriott International is required to fund any draws by lenders under this letter of credit it would seek recourse from us. Marriott International no longer guarantees our performance with respect to third-party financing for sales of products in the Luxury segment. We are entitled to recover any funding to third-party lenders related to these guarantees through reacquisition and resale of the vacation ownership product. Our commitments under these guarantees expire as notes mature or are repaid. The terms of the underlying notes extend to 2022.

The following table shows the maximum potential amount of future fundings for guarantees where we are the primary obligor and the carrying amount of the liability for expected future fundings.


*($ in millions)* Segment	Maximum Potential Amount of Future Fundings at September 7, 2012		Liability for Expected Future Fundings at September 7, 2012
Asia Pacific	$	20	$	—
Luxury		3		1

Total guarantees where we are the primary obligor	$	23	$	1

We included our liability for expected future fundings of the guarantees in our Balance Sheets in the Other caption within Liabilities.

In addition to the guarantees we describe in the preceding paragraphs, in conjunction with financing obtained for specific projects or properties owned by joint ventures in which we are a party, we may provide industry standard indemnifications to the lender for loss, liability or damage occurring as a result of the actions of the other joint venture owners or our own actions.

Commitments and Letters of Credit

In addition to the guarantees we note in the preceding paragraphs, as of September 7, 2012, we had the following commitments:

•

$2 million (€1 million) of other purchase commitments that we expect to fund over the next two years, as follows: $1 million in each of 2013 and 2014.

•

We have various contracts for the use of information technology hardware and software that we use in the normal course of business. Our commitments under these contracts were $1 million, which we expect will be paid in 2012.

•

Commitments to subsidize vacation ownership associations were $3 million, which we expect will be paid in 2012.

Surety bonds issued as of September 7, 2012 totaled $93 million, the majority of which were requested by federal, state or local governments related to our operations.

Prior to the Spin-Off, Marriott International also guaranteed our performance using letters of credit under certain agreements necessary to operate our Europe segment. Subsequent to the Spin-Off, Marriott International continues to hold $2 million of standby letters of credit related to these guarantees. If Marriott International is required to fund any draws under these letters of credit it would seek recourse from us.

Additionally, as of September 7, 2012, we had $5 million of letters of credit outstanding under our four-year $200 million revolving credit facility (the “Revolving Corporate Credit Facility”).

Loss Contingencies

Certain of our subsidiaries are defendants in a lawsuit in the Superior Court of California, County of San Francisco in which the plaintiffs, 11 owners at our Ritz-Carlton Club and Residences, San Francisco property, question the adequacy of disclosures made regarding bonds issued for the project under California’s Mello-Roos Community Facilities Act of 1982 and their payment obligations with respect to such bonds. In June 2012, the trial judge issued a tentative decision on phase one of the proceeding in favor of the plaintiffs, concluding on the basis of several theories that the plaintiffs are entitled to, among other relief, rescission of their purchase contracts and punitive damages in an amount to be determined. The decision is not yet final, and the total amounts that we may be required to pay to the plaintiffs in this matter are not estimable at this time due to the current procedural status of the case, as well as the uncertainties with respect to the Court’s conclusion and assessment of damages, if any. If the decision does become final, we intend to vigorously appeal the decision. Two other lawsuits are pending in which 11 other owners assert similar claims. To date, we have accrued approximately $7 million for these matters based on amounts that are currently estimable.

Other

We estimate the cash outflow associated with completing the phases of our existing portfolio of vacation ownership projects currently under development will be approximately $137 million, of which $13 million is included within liabilities on our Balance Sheet. This estimate is based on our current development plans, which remain subject to change, and we expect the phases currently under development will be completed by 2016.

The entire disclosure for commitments and contingencies.

Reference 1: http://www.xbrl.org/2003/role/presentationRef
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Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
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Debt

8 Months Ended

Sep. 07, 2012

8. DEBT

The following table provides detail on our debt balances:


*($ in millions)*	At September 7, 2012		At December 30, 2011
Non-recourse debt associated with securitized notes receivable, interest rates ranging from 2.62% to 7.20% (weighted average interest rate of 4.40%) ⁽¹⁾	$	790	$	729
Warehouse credit facility		—		118
Other		3		3

	$	793	$	850

⁽¹⁾	Interest rates are as of September 7, 2012.

See Footnote No. 11, “Variable Interest Entities,” for a discussion of the collateral for the non-recourse debt associated with the securitized vacation ownership notes receivable and the Warehouse Credit Facility. All of our other debt was, and to the extent currently outstanding is, recourse to us but is unsecured. Although no cash borrowings were outstanding as of September 7, 2012 under our Revolving Corporate Credit Facility, any amounts that are borrowed under that facility, as well as obligations with respect to letters of credit issued pursuant to that facility, are secured by a perfected first priority security interest in substantially all of our assets and the assets of the guarantors of that facility, in each case including inventory, subject to certain exceptions.

The following table shows scheduled future principal payments for our debt:


*($ in millions)* Year	Non-Recourse Debt		Other Debt		Total
2012	$	39	$	—	$	39
2013		120		—		120
2014		122		—		122
2015		118		—		118
2016		106		—		106
Thereafter		285		3		288

Balance at September 7, 2012	$	790	$	3	$	793

As the contractual terms of the underlying securitized notes receivable determine the maturities of the non-recourse debt associated with them, actual maturities may occur earlier than shown above due to prepayments by the notes receivable obligors.

We paid cash for interest, net of amounts capitalized, of $33 million in the thirty-six weeks ended September 7, 2012 and $32 million in the thirty-six weeks ended September 9, 2011.

Non-Recourse Debt Associated with Securitized Notes Receivable

Each of our securitized vacation ownership notes receivable pools is subject to various triggers relating to the performance of the underlying vacation ownership notes receivable. If a pool of securitized vacation ownership notes receivable fails to perform within the pool’s established parameters (default or delinquency thresholds vary by transaction), transaction provisions effectively redirect the monthly excess spread we would otherwise receive from that pool (related to the interests we retained) to accelerate the principal payments to investors based on the subordination of the different tranches until the performance trigger is cured. During the third quarter of 2012, one pool reached a performance trigger, but subsequently returned to meeting performance thresholds. At the end of the third quarter of 2012, no pools were out of compliance. As a result of reaching a performance trigger, a total of $1 million in cash of excess spread was redirected to accelerate principal payments to investors during the thirty-six weeks ended September 7, 2012. As of September 7, 2012, we had 10 securitized vacation ownership notes receivable pools outstanding (excluding the Warehouse Credit Facility).

Renewal of Warehouse Credit Facility

On September 11, 2012, we entered into amended and restated agreements associated with the Warehouse Credit Facility. As a result, the borrowing capacity of the Warehouse Credit Facility was reduced from $300 million to $250 million and the revolving period was extended to September 10, 2014. In addition, as a result of the amended and restated agreements, borrowings under the Warehouse Credit Facility now bear interest at a rate based on the one-month LIBOR and bank conduit commercial paper rates plus 1.5 percent and are limited at any point to the advance rate on the aggregate amount of eligible vacation ownership notes receivable at such time. Other terms of the Warehouse Credit Facility are substantially similar to those in effect prior to the amendment and restatement.

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

Mandatorily Redeemable Preferred Stock Of Consolidated Subsidiary

Mandatorily Redeemable Preferred Stock Of Consolidated Subsidiary

8 Months Ended

Sep. 07, 2012

9. MANDATORILY REDEEMABLE PREFERRED STOCK OF CONSOLIDATED SUBSIDIARY

In October 2011, our subsidiary, MVW US Holdings, Inc. (“MVW US Holdings”) issued $40 million of its mandatorily redeemable Series A (non-voting) preferred stock to Marriott International as part of Marriott International’s internal reorganization prior to the Spin-Off. Subsequently Marriott International sold all of this preferred stock to third-party investors. For the first five years after issuance, the Series A preferred stock will pay an annual cash dividend equal to the five-year U.S. Treasury Rate as of October 19, 2011, plus a spread of 10.958 percent, for a total annual cash dividend rate of 12 percent. On the fifth anniversary of issuance, the annual cash dividend rate will be reset to the five-year U.S. Treasury Rate in effect on such date plus the same 10.958 percent spread. The Series A preferred stock is mandatorily redeemable by MVW US Holdings upon the tenth anniversary of the date of issuance but can be redeemed at our option after five years. The Series A preferred stock has an aggregate liquidation preference of $40 million plus any accrued and unpaid dividends and an additional premium if liquidation occurs during the first five years after the issuance of the preferred stock. As of September 7, 2012, 1,000 shares of Series A preferred stock were authorized, of which 40 shares were issued and outstanding. The dividends are recorded as a component of Interest expense as the Series A preferred stock is treated as a liability for accounting purposes.

Share-Based Compensation

8 Months Ended

Sep. 07, 2012

Share-Based Compensation

10. SHARE-BASED COMPENSATION

A total of 6 million shares are authorized for issuance under the Marriott Vacations Worldwide Corporation Stock and Cash Incentive Plan (the “Marriott Vacations Worldwide Stock Plan”). As of September 7, 2012, approximately 2 million shares were available for grants under the Marriott Vacations Worldwide Stock Plan.

For share-based awards with service-only vesting conditions, we measure compensation expense related to share-based payment transactions with our employees and non-employee directors at fair value on the grant date and recognize this expense in the Statement of Operations over the vesting period during which the employees provide service in exchange for the award. For share-based arrangements with performance conditions as a prerequisite to vesting, we recognize compensation expense once it is probable that the corresponding performance condition will be achieved.

We recorded share-based compensation expense related to award grants to our officers, directors and employees of $3 million and $2 million for the twelve weeks ended September 7, 2012 and September 9, 2011, respectively, and $8 million and $7 million for the thirty-six weeks ended September 7, 2012 and September 9, 2011, respectively. Our deferred compensation liability related to unvested awards held by our employees totaled $16 million and $19 million at September 7, 2012 and December 30, 2011 respectively.

Restricted Stock Units (“RSUs”)

We granted 215,109 RSUs during the thirty-six weeks ended September 7, 2012 to our employees, and those RSUs generally vest over four year periods in annual installments commencing one year after the date of grant. RSUs granted in the thirty-six weeks ended September 7, 2012 had a weighted average grant-date fair value of $23.

During the thirty-six weeks ended September 7, 2012, we granted RSUs with performance-based vesting criteria to key members of management. The number of RSUs earned, if any, will be determined following the end of a three-year performance period based upon our cumulative achievement over that period of specific quantitative operating financial measures. The maximum amount of RSUs that may vest under the performance-based RSUs is approximately 170,000.

Stock Appreciation Rights (“SARs”)

We granted 3,961 SARs to a non-employee director in lieu of annual cash retainers during the thirty-six weeks ended September 7, 2012. SARs generally expire ten years after the date of grant and both vest and may be exercised in cumulative installments of one quarter of the number of SARs granted at the end of each of the first four years following the date of grant. These SARs vested immediately and had a weighted average grant-date fair value of $15 and a weighted average exercise price of $29.

We use the Black-Scholes model to estimate the fair value of the stock options or SARs granted. For SARs granted under the Marriott Vacations Worldwide Stock Plan in the thirty-six weeks ended September 7, 2012, the expected stock price volatility was calculated based on the historical volatility from the stock prices of a group of identified peer companies. The average expected life was calculated using the simplified method. The risk-free interest rate was calculated based on U.S. Treasury zero-coupon issues with a remaining term equal to the expected life assumed at the date of grant. The expected annual dividend per share was $0 based on our expected dividend rate.

The following table outlines the assumptions used to estimate the fair value of grants during the thirty-six weeks ended September 7, 2012:


Expected volatility	54.30	%
Dividend yield	0.00	%
Risk-free rate	1.05	%
Expected term (in years)	6.25

The entire disclosure for compensation-related costs for equity-based compensation, which may include disclosure of policies, compensation plan details, allocation of equity compensation, incentive distributions, equity-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details.

Reference 1: http://www.xbrl.org/2003/role/presentationRef
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-Publisher SEC
-Name Staff Accounting Bulletin (SAB)
-Number Topic 14

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 123R
-Paragraph 64, 65, A240
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Statement of Position (SOP)
-Number 93-6
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Variable Interest Entities

Variable Interest Entities

8 Months Ended

Sep. 07, 2012

11. VARIABLE INTEREST ENTITIES

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

Variable Interest Entities Related to Our Vacation Ownership Notes Receivable Securitizations

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

We created these entities to serve as a mechanism for holding assets and related liabilities, and the entities have no equity investment at risk, making them variable interest entities. We continue to service the vacation ownership notes receivable, transfer all proceeds collected to these special purpose entities, and retain rights to receive benefits that are potentially significant to the entities. Accordingly, we concluded that we are the entities’ primary beneficiary and, therefore, consolidate them.

The following table shows consolidated assets, that are collateral for the obligations of these variable interest entities, and consolidated liabilities included in our Balance Sheet at September 7, 2012.


*($ in millions)*	Vacation Ownership Notes Receivable Securitizations		Warehouse Credit Facility		Total
Consolidated Assets:
Notes receivable, net of reserves	$	834	$	—	$	834
Interest receivable		5		—		5
Restricted cash		47		—		47

Total	$	886	$	—	$	886

Consolidated Liabilities:
Interest payable	$	3	$	—	$	3
Debt		790		—		790

Total	$	793	$	—	$	793

The noncontrolling interest balance was zero. The creditors of these entities do not have general recourse to us.

The following table shows the interest income and expense recognized as a result of our involvement with these variable interest entities during the twelve weeks ended September 7, 2012:


*($ in millions)*	Vacation Ownership Notes Receivable Securitizations		Warehouse Credit Facility		Total
Interest income	$	28	$	—	$	28
Interest expense to investors	$	8	$	—	$	8
Debt issuance cost amortization	$	1	$	1	$	2

The following table shows the interest income and expense recognized as a result of our involvement with these variable interest entities during the thirty-six weeks ended September 7, 2012:


*($ in millions)*	Vacation Ownership Notes Receivable Securitizations		Warehouse Credit Facility		Total
Interest income	$	73	$	8	$	81
Interest expense to investors	$	24	$	2	$	26
Debt issuance cost amortization	$	2	$	2	$	4

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


	Thirty-Six Weeks Ended
*($ in millions)*	September 7, 2012			September 9, 2011
Cash inflows:
Net proceeds from notes receivable securitization	$	233		$	—
Principal receipts		130			155
Interest receipts		74			92

Total		437			247

Cash outflows:
Principal to investors		(120	)		(150	)
Voluntary repurchases of defaulted notes		(27	)		(36	)
Voluntary clean-up calls		(30	)		—
Interest to investors		(23	)		(32	)

Total		(200	)		(218	)

Net Cash Flows	$	237		$	29

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


	Thirty-Six Weeks Ended
*($ in millions)*	September 7, 2012			September 9, 2011
Cash inflows:
Principal receipts	$	16		$	—
Interest receipts		9			—
Reserve release		1			—

Total		26			—

Cash outflows:
Principal to investors		(15	)		—
Voluntary repurchases of defaulted notes		(2	)		—
Repayment of Warehouse Credit Facility		(101	)		—
Interest to investors		(2	)		—

Total		(120	)		—

Net Cash Flows	$	(94	)	$	—

Under the terms of our vacation ownership notes receivable securitizations, we have the right at our option to repurchase defaulted mortgage notes at the outstanding principal balance. The transaction documents typically limit such repurchases to 15 to 20 percent of the transaction’s initial mortgage balance. Our maximum exposure to loss relating to the entities that own these vacation ownership notes receivable is the overcollateralization amount (the difference between the loan collateral balance and the balance on the outstanding vacation ownership notes receivable), plus cash reserves and any residual interest in future cash flows from collateral.

Other Variable Interest Entities

We have an equity investment in and a note receivable due from a variable interest entity that develops and markets vacation ownership and residential products in Hawaii pursuant to a joint venture arrangement. We concluded that the entity is a variable interest entity because the equity investment at risk is not sufficient to permit the entity to finance its activities without additional support from other venture parties. We determined that we are not the primary beneficiary of this entity, as power to direct the activities that most significantly impact the entity’s economic performance is shared among the variable interest holders and, therefore, we do not consolidate the entity. We provided a completion guarantee in favor of the project lenders for which the joint venture has delivered a completed operational project. Although we have not received a release of the guarantee from the lenders, we do not believe we have any exposure for funding. In 2009, we fully impaired our equity investment in the entity and in certain notes receivable due from the entity. In 2010, the continued application of equity losses to our investment in the remaining outstanding notes receivable balance reduced its carrying value to zero. In addition, the venture was unable to pay promissory notes that matured on December 31, 2010 and August 1, 2011. Subsequently, the lenders issued a notice of default to the venture. The venture continues to seek to negotiate a consensual resolution, but no resolution has been reached to date and the lenders have initiated foreclosure proceedings with respect to unsold interests in the project. We have given notice of breach or termination of various agreements, including management agreements with the owners’ associations at the project, marketing and sales agreements with the venture, and other agreements pursuant to which we have provided services to the venture, with termination effective October 29, 2012. During the thirty-six weeks ended September 7, 2012, we reversed $2 million of our previously recorded impairment of this equity investment because the actual costs incurred to suspend the marketing and sales operations were lower than previously estimated. We have a remaining accrual of $10 million for potential future funding included in other liabilities on our Balance Sheet, representing our remaining expected exposure to loss related to our involvement with this entity. In addition, several owners at the project have filed suit against several parties involved in the project, including two of our subsidiaries, which could result in additional exposures which are not estimable at this time.

During the thirty-six weeks ended September 9, 2011, we reversed $4 million of our previously recorded impairment of this equity investment based on facts and circumstances surrounding the project, including favorable resolution of certain construction-related claims and contingent obligations to refund certain deposits relating to sales that have subsequently closed.

Related Party Transactions

8 Months Ended

Sep. 07, 2012

Related Party Transactions

12. RELATED PARTY TRANSACTIONS

Effective upon the completion of the Spin-Off, Marriott Vacations Worldwide ceased to be a related party of Marriott International.

Through November 21, 2011 (the effective date of the Spin-Off), our expenses included allocations from Marriott International of costs associated with services provided by Marriott International to us including, but not limited to, information technology support, systems maintenance, telecommunications, accounts payable, payroll and benefits, human resources, self-insurance and other shared services. Historically, these costs were charged to us based on specific identification or on a basis determined by Marriott International to reflect a reasonable allocation to us of the actual costs incurred to perform these services. These allocated costs were $7 million and $22 million for the twelve and thirty-six weeks ended September 9, 2011, respectively.

Marriott International allocated indirect general and administrative costs to us for certain functions and services provided to us by Marriott International, including, but not limited to, executive office, legal, tax, finance, government and public relations, internal audit, treasury, investor relations, human resources and other administrative support primarily on the basis of our proportion of Marriott International’s overall revenue. Accordingly, we were allocated $3 million and $10 million for the twelve and thirty-six weeks ended September 9, 2011, respectively, of Marriott International’s indirect general and corporate overhead expenses and have included these expenses in General and administrative expenses on our Statements of Operations.

Marriott International ceased allocating expenses to us after the Spin-Off on November 21, 2011. We determined that our relative revenue was a reasonable reflection of Marriott International time dedicated to the oversight of our historical business. The allocations may not, however, reflect the expense we would have incurred as an independent, publicly traded company for the periods presented.

All significant intercompany transactions between us and Marriott International were included in our historical financial statements and are considered to be effectively settled as of the time of the Spin-Off. The total net effect of the settlement of these intercompany transactions is reflected in the Statements of Cash Flows as a financing activity.

The entire disclosure for related party transactions. Examples of related party transactions include transactions between (a) a parent company and its subsidiary; (b) subsidiaries of a common parent; (c) and entity and its principal owners; and (d) affiliates.

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Reference 9: http://www.xbrl.org/2003/role/presentationRef
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-Number 57
-Paragraph 1-4
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Shareholders' Equity

8 Months Ended

Sep. 07, 2012

Shareholders' Equity

13. SHAREHOLDERS’ EQUITY

The following table details changes in shareholders’ equity during the thirty-six weeks ended September 7, 2012:


*($ in millions)*	Additional Paid-In Capital			Accumulated Other Comprehensive Income			Retained (Deficit) Earnings			Total Equity
Balance at year-end 2011	$	1,117		$	19		$	(2	)	$	1,134
Net income		—			—			23			23
Foreign currency translation adjustments		—			(1	)		—			(1	)
Adjustment to reclassification of Marriott International investment to additional paid-in capital ⁽¹⁾		(12	)		—			—			(12	)
Amounts related to share-based compensation		8			—			—			8

Balance at September 7, 2012	$	1,113		$	18		$	21		$	1,152

⁽¹⁾	Primarily consists of an adjustment to deferred tax liabilities for changes in the valuation of Marriott Vacations Worldwide at the time of Spin-Off.

The entire disclosure for shareholders' equity, comprised of portions attributable to the parent entity and noncontrolling interest, if any, including other comprehensive income (as applicable). Including, but not limited to: (1) balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings; (2) accumulated balance for each classification of other comprehensive income and total amount of comprehensive income; (3) amount and nature of changes in separate accounts, including the number of shares authorized and outstanding, number of shares issued upon exercise and conversion, and for other comprehensive income, the adjustments for reclassifications to net income; (4) rights and privileges of each class of stock authorized; (5) basis of treasury stock, if other than cost, and amounts paid and accounting treatment for treasury stock purchased significantly in excess of market; (6) dividends paid or payable per share and in the aggregate for each class of stock for each period presented; (7) dividend restrictions and accumulated preferred dividends in arrears (in aggregate and per share amount); (8) retained earnings appropriations or restrictions, such as dividend restrictions; (9) impact of change in accounting principle, initial adoption of new accounting principle and correction of an error in previously issued financial statements; (10) shares held in trust for Employee Stock Ownership Plan (ESOP); (11) deferred compensation related to issuance of capital stock; (12) note received for issuance of stock; (13) unamortized discount on shares; (14) description, terms, and number of warrants or rights outstanding; (15) shares under subscription and subscription receivables, effective date of new retained earnings after quasi-reorganization and deficit eliminated by quasi-reorganization and, for a period of at least ten years after the effective date, the point in time from which the new retained dates; and (16) retroactive effective of subsequent change in capital structure.

Reference 1: http://www.xbrl.org/2003/role/presentationRef
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-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 15: http://www.xbrl.org/2003/role/presentationRef
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Reference 23: http://www.xbrl.org/2003/role/presentationRef
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Impairment Charges

8 Months Ended

Sep. 07, 2012

Impairment Charges

14. IMPAIRMENT CHARGES

In preparation for the Spin-Off (see Footnote No. 1, “Summary of Significant Accounting Policies,” for additional information), management assessed the intended use of excess undeveloped land and built inventory and the current market conditions for those assets. On September 8, 2011, management approved a plan to accelerate cash flow through the monetization of certain excess undeveloped land in the United States, Mexico, and the Bahamas and to accelerate sales of excess built Luxury fractional and residential inventory. As a result, in accordance with the guidance for accounting for the impairment or disposal of long-lived assets, because the nominal cash flows from the planned land sales and the estimated fair values of the land and excess built Luxury inventory were less than their respective carrying values, we recorded a pre-tax non-cash impairment charge of $324 million ($234 million after-tax) in our 2011 third quarter Statement of Operations under the “Impairment” caption.

The following table details the composition of these charges.


*($ in millions)*	Luxury Segment		Europe Segment		Corporate and Other		Total
Inventory impairment	$	107	$	2	$	147	$	256
Property and equipment impairment		6		—		62		68

Total	$	113	$	2	$	209	$	324

Business Segments

8 Months Ended

Sep. 07, 2012

Business Segments

15. BUSINESS SEGMENTS

We operate in four reportable business segments:

•

In our North America segment, we develop, market, sell and manage vacation ownership products under the Marriott Vacation Club and Grand Residences by Marriott brands in the United States and the Caribbean. We also develop, market, sell and manage resort residential real estate located within our vacation ownership developments under the Grand Residences by Marriott brand.

•

In our Luxury segment, we develop, market, sell and manage luxury vacation ownership products under the Ritz-Carlton Destination Club brand. We also sell whole ownership luxury residential real estate under the Ritz-Carlton Residences brand.

•

In our Europe segment, we develop, market, sell and manage vacation ownership products in several locations in Europe.

•

In our Asia Pacific segment, we operate Marriott Vacation Club, Asia Pacific, a right-to-use points program we introduced in 2006 that we specifically designed to appeal to vacation preferences of the Asian market, as well as a weeks-based right-to-use product originally introduced in 2001.

We evaluate the performance of our segments based primarily on the results of the segment without allocating corporate expenses, income taxes or indirect general and administrative expenses. We do not allocate corporate interest expense or other financing expenses to our segments. We include interest income specific to segment activities within the appropriate segment. We allocate other gains and losses, equity in earnings or losses from our joint ventures and certain general and administrative expenses to each of our segments. Corporate and other represents that portion of our revenues, general, administrative and other expenses, equity in earnings or losses, and other gains or losses that are not allocable to our segments.

Revenues


	Twelve Weeks Ended				Thirty-Six Weeks Ended
*($ in millions)*	September 7, 2012		September 9, 2011		September 7, 2012		September 9, 2011
North America	$	314	$	293	$	937	$	891
Luxury		15		24		59		79
Europe		34		39		83		95
Asia Pacific		20		22		59		64

Total segment revenues		383		378		1,138		1,129
Corporate and other		—		—		—		—

	$	383	$	378	$	1,138	$	1,129

Net Income (Loss)


	Twelve Weeks Ended						Thirty-Six Weeks Ended
*($ in millions)*	September 7, 2012			September 9, 2011			September 7, 2012			September 9, 2011
North America	$	70		$	53		$	213		$	188
Luxury		(5	)		(118	)		(11	)		(127	)
Europe		5			5			5			9
Asia Pacific		1			2			3			2

Total segment financial results		71			(58	)		210			72
Corporate and other		(53	)		(244	)		(163	)		(313	)
(Provision) benefit for income taxes		(12	)		81			(24	)		55

	$	6		$	(221	)	$	23		$	(186	)

Assets


	At Period-End
*($ in millions)*	September 7, 2012		December 30, 2011
North America	$	2,109	$	2,169
Luxury		146		185
Europe		113		134
Asia Pacific		91		103

Total segment assets		2,459		2,591
Corporate and other		287		255

	$	2,746	$	2,846

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 15: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 131
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Organizational And Separation Related Charges

Organizational And Separation Related Charges

8 Months Ended

Sep. 07, 2012

16. ORGANIZATIONAL AND SEPARATION RELATED CHARGES

Since the Spin-Off, Marriott International has continued to provide us with certain information technology, payroll, human resources, and other administrative services pursuant to certain transition services agreements. In connection with our continued organizational and separation related activities, we have incurred certain expenses to complete our separation from Marriott International. These costs primarily relate to establishing our own information technology systems and services, independent payroll and accounts payable functions and reorganizing certain existing administrative organizations to support our stand-alone public company needs. We expect these efforts to continue through 2014. The following table summarizes the classification of organizational and separation related charges recorded in the Statements of Operations:


*($ in millions)*	Twelve Weeks Ended September 7, 2012		Thirty-Six Weeks Ended September 7, 2012
Marketing and sales expenses	$	—	$	1
Resort management and other services expenses		1		1
General and administrative expenses		2		8

	$	3	$	10

Summary Of Significant Accounting Policies (Policies)

8 Months Ended

Sep. 07, 2012

Business Operations

Our Business

Our business is grouped into four reportable segments: North America, Luxury, Europe and Asia Pacific. We operate 64 properties in the United States and eight other countries and territories.

We generate most of our revenues from four primary sources: selling vacation ownership products, managing our resorts, financing consumer purchases, and renting vacation ownership inventory.

Our Spin-Off from Marriott International, Inc.

Our Spin-Off from Marriott International, Inc.

Principles of Consolidation and Basis of Presentation

Principles of Consolidation and Basis of Presentation


Fiscal Year		Quarter-End Date
2012 Third Quarter		September 7, 2012
2012 Second Quarter		June 15, 2012
2012 First Quarter		March 23, 2012
2011 Third Quarter		September 9, 2011
2011 Second Quarter		June 17, 2011
2011 First Quarter		March 25, 2011

We have reclassified certain prior year amounts to conform to our 2012 presentation.

New Accounting Standards

New Accounting Standards

Vacation Ownership Notes Receivable Reserve

Loan Delinquency

Inventory Policy

Compensation Related Costs Policy

Disclosure of accounting policy for major classes of inventories, bases of stating inventories (for example, lower of cost or market), methods by which amounts are added and removed from inventory classes (for example, FIFO, LIFO, or average cost), loss recognition on impairment of inventories, and situations in which inventories are stated above cost. If inventory is carried at cost, this disclosure includes the nature of the cost elements included in inventory.

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02.6(b))
-URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682

Reference 2: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
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Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Statement of Position (SOP)
-Number 81-1
-Paragraph 69-75
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Accounting Research Bulletin (ARB)
-Number 43
-Paragraph 3, 5-10, 15, 16, 17
-Chapter 4
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Financial Reporting Release (FRR)
-Number 206
-Paragraph b
-Subparagraph i, ii
-Chapter 2

Reference 10: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Research Bulletin (ARB)
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-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 02
-Paragraph 6
-Subparagraph a
-Article 5

Disclosure of accounting policy for trade and other accounts receivables. This disclosure may include the basis at which such receivables are carried in the entity's statements of financial position (for example, net realizable value), how the entity determines the level of its allowance for doubtful accounts, when impairments, charge-offs or recoveries are recognized, and the entity's income recognition policies for such receivables, including its treatment of related fees and costs, its treatment of premiums, discounts or unearned income, when accrual of interest is discontinued, how the entity records payments received on nonaccrual receivables and its policy for resuming accrual of interest on such receivables. If the enterprise holds a large number of similar loans, disclosure may include the accounting policy for the anticipation of prepayments and significant assumptions underlying prepayment estimates for amortization of premiums, discounts, and nonrefundable fees and costs.

Each Reference to Particular Quarter in Financial Statements Means Quarter Ended on Date Shown

Summary Of Significant Accounting Policies (Tables)

8 Months Ended

Sep. 07, 2012


Fiscal Year		Quarter-End Date
2012 Third Quarter		September 7, 2012
2012 Second Quarter		June 15, 2012
2012 First Quarter		March 23, 2012
2011 Third Quarter		September 9, 2011
2011 Second Quarter		June 17, 2011
2011 First Quarter		March 25, 2011

Effect of Restatement of Previously Reported Cash Flow Activities

The tables below summarize the effect of the restatement of the previously reported Cash Flow activities for the thirty-six weeks ended September 9, 2011.


	For the Thirty-Six Weeks Ended September 9, 2011
*($ in millions)*	As Previously Reported			Adjustment			As Restated
OPERATING ACTIVITIES
Share-based compensation	$	—		$	7		$	7
All other, including working capital changes		29			(8	)		21
Net cash provided by operating activities	$	249		$	(1	)	$	248

INVESTING ACTIVITIES
Note collections	$	—		$	20		$	20
Net cash (used in) provided by investing activities	$	(10	)	$	20		$	10

FINANCING ACTIVITIES
Repayment of debt related to securitizations	$	(187	)	$	1		$	(186	)
Note collections		20			(20	)		—
Net cash used in financing activities	$	(240	)	$	(19	)	$	(259	)

Notes Receivable (Tables)

8 Months Ended

Sep. 07, 2012

Composition of Notes Receivable Balances, Net of Reserves

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


*($ in millions)*	September 7, 2012		December 30, 2011
Vacation ownership notes receivable—securitized	$	834	$	910
Vacation ownership notes receivable—non-securitized		231		239

Total vacation ownership notes receivable	$	1,065	$	1,149

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

The following tables show future principal payments, net of reserves, as well as interest rates for our securitized and non-securitized vacation ownership notes receivable:


*($ in millions)*	Non-Securitized Vacation Ownership Notes Receivable			Securitized Vacation Ownership Notes Receivable			Total
2012	$	26		$	38		$	64
2013		38			119			157
2014		28			122			150
2015		23			120			143
2016		21			112			133
Thereafter		95			323			418

Balance at September 7, 2012	$	231		$	834		$	1,065

Weighted average stated interest rate at September 7, 2012		11.4	%		13.0	%		12.6	%
Range of stated interest rates at September 7, 2012		0.0% to 19.5	%		6.1% to 19.5	%		0.0% to 19.5	%

Interest Income Associated With Vacation Ownership Notes Receivable

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


*($ in millions)*	Twelve Weeks Ended				Thirty-Six Weeks Ended
*($ in millions)*	September 7, 2012		September 9, 2011		September 7, 2012		September 9, 2011
Interest income associated with vacation ownership notes receivable—securitized	$	28	$	29	$	81	$	91
Interest income associated with vacation ownership notes receivable—non-securitized		5		8		20		22

Total interest income associated with vacation ownership notes receivable	$	33	$	37	$	101	$	113

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

The following table shows our recorded investment in non-accrual vacation ownership notes receivable, which are vacation ownership notes receivable that are 90 days or more past due.


*($ in millions)*	Non-Securitized Vacation Ownership Notes Receivable		Securitized Vacation Ownership Notes Receivable		Total
Investment in notes receivable on non-accrual status at September 7, 2012	$	84	$	9	$	93
Investment in notes receivable on non-accrual status at year-end 2011	$	90	$	11	$	101
Average investment in notes receivable on non-accrual status during the thirty-six weeks ended September 7, 2012	$	87	$	10	$	97
Average investment in notes receivable on non-accrual status during the thirty-six weeks ended September 9, 2011	$	108	$	14	$	122

Aging of Recorded Investment in Principal, Before Reserves, in Vacation Ownership Notes Receivable

The following table shows the aging of the recorded investment in principal, before reserves, in vacation ownership notes receivable as of September 7, 2012:


*($ in millions)*	Non-Securitized Vacation Ownership Notes Receivable		Securitized Vacation Ownership Notes Receivable		Total
31—90 days past due	$	11	$	19	$	30
91—150 days past due		8		8		16
Greater than 150 days past due		76		1		77

Total past due		95		28		123
Current		231		867		1,098

Total vacation ownership notes receivable	$	326	$	895	$	1,221

The following table shows the aging of the recorded investment in principal, before reserves, in vacation ownership notes receivable as of December 30, 2011:


*($ in millions)*	Non-Securitized Vacation Ownership Notes Receivable		Securitized Vacation Ownership Notes Receivable		Total
31—90 days past due	$	11	$	24	$	35
91—150 days past due		8		11		19
Greater than 150 days past due		82		—		82

Total past due		101		35		136
Current		242		942		1,184

Total vacation ownership notes receivable	$	343	$	977	$	1,320

Vacation Ownership

Notes Receivable Reserves

The following table summarizes the activity related to our vacation ownership notes receivable reserve for the thirty-six weeks ended September 7, 2012:


*($ in millions)*	Non-Securitized Vacation Ownership Notes Receivable Reserve			Securitized Vacation Ownership Notes Receivable Reserve			Total
Balance at year-end 2011	$	104		$	67		$	171
Provision for loan losses		16			14			30
Securitizations		(21	)		21			—
Clean-up calls ⁽¹⁾		12			(12	)		—
Write-offs		(45	)		—			(45	)
Defaulted notes receivable repurchase activity ⁽²⁾		29			(29	)		—

Balance at September 7, 2012	$	95		$	61		$	156

⁽¹⁾	Refers to our voluntary repurchase of previously securitized non-defaulted vacation ownership notes receivable to retire previous notes receivable securitizations.

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

Financial Instruments (Tables)

8 Months Ended

Sep. 07, 2012

Carrying Values and Estimated Fair Values of Financial Assets and Liabilities


	At September 7, 2012						At December 30, 2011
*($ in millions)*	Carrying Amount			Fair Value⁽¹⁾			Carrying Amount			Fair Value⁽¹⁾
Vacation ownership notes receivable—securitized	$	834		$	1,019		$	910		$	1,061
Vacation ownership notes receivable—non-securitized		231			241			239			245

Total financial assets	$	1,065		$	1,260		$	1,149		$	1,306

Non-recourse debt associated with securitized notes receivable	$	(790	)	$	(829	)	$	(729	)	$	(750	)
Warehouse credit facility		—			—			(118	)		(116	)
Other debt		(3	)		(3	)		(3	)		(3	)
Mandatorily redeemable preferred stock of consolidated subsidiary		(40	)		(46	)		(40	)		(40	)
Liability for Marriott Rewards loyalty program		(179	)		(165	)		(225	)		(206	)
Other liabilities		(31	)		(34	)		(29	)		(32	)

Total financial liabilities	$	(1,043	)	$	(1,077	)	$	(1,144	)	$	(1,147	)

⁽¹⁾	Fair value of financial instruments has been determined using Level 3 inputs.

Non-Securitized Vacation Ownership Notes Receivable

Carrying Values and Estimated Fair Values of Financial Assets and Liabilities

We bifurcate our non-securitized vacation ownership notes receivable into two pools as follows:


*($ in millions)*	At September 7, 2012				At December 30, 2011
*($ in millions)*	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Vacation ownership notes receivable—eligible for securitization	$	47	$	57	$	41	$	47
Vacation ownership notes receivable—not eligible for securitization		184		184		198		198

Total vacation ownership notes receivable—non-securitized	$	231	$	241	$	239	$	245

Tabular disclosure of the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments, assets, and liabilities. Such certain disclosures about the financial instruments, assets, and liabilities include: (1) the fair value of the required items together with their carrying amounts (as appropriate) and (2) the methodology and assumptions used in developing such estimates of fair value.

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 50
-Paragraph 12
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-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 159
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-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 107
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-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

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-Name Statement of Financial Accounting Standard (FAS)
-Number 107
-Paragraph 15
-Subparagraph b-d
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-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 159
-Paragraph 18
-Subparagraph c(2), d, e, f
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

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-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 157
-Paragraph 32
-Subparagraph a, c(1), c(2), c(3), d
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

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-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 107
-Paragraph 10
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

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

Earnings Per Share (Tables)

8 Months Ended

Sep. 07, 2012

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


	Twelve Weeks Ended					Thirty-Six Weeks Ended
*(in millions, except per share amounts)*	September 7, 2012 ⁽¹⁾		September 9, 2011			September 7, 2012 ⁽¹⁾		September 9, 2011
Computation of Basic Earnings (Loss) Per Share
Net income (loss)	$	6	$	(221	)	$	23	$	(186	)
Weighted average shares outstanding		34.4		33.7			34.2		33.7

Basic earnings (loss) per share	$	0.18	$	(6.57	)	$	0.68	$	(5.52	)

Computation of Diluted Earnings (Loss) Per Share
Net income (loss)	$	6	$	(221	)	$	23	$	(186	)

Weighted average shares outstanding		34.4		33.7			34.2		33.7
Effect of dilutive securities
Employee stock options and SARs		1.1		—			1.0		—
Restricted stock units		0.7		—			0.8		—

Shares for diluted earnings (loss) per share		36.2		33.7			36.0		33.7

Diluted earnings (loss) per share	$	0.17	$	(6.57	)	$	0.65	$	(5.52	)

⁽¹⁾

Inventory (Tables)

8 Months Ended

Sep. 07, 2012

Composition of Inventory

The following table shows the composition of our inventory balances:


*($ in millions)*	At September 7, 2012		At December 30, 2011
Finished goods	$	440	$	448
Work-in-progress		164		215
Land and infrastructure		287		290

Real estate inventory		891		953
Operating supplies and retail inventory		6		6

	$	897	$	959

Contingencies And Commitments (Tables)

8 Months Ended

Sep. 07, 2012

Maximum Potential Amount of Future Fundings for Financing Guarantees and Carrying Amount of Liability for Expected Future Fundings

The following table shows the maximum potential amount of future fundings for guarantees where we are the primary obligor and the carrying amount of the liability for expected future fundings.


*($ in millions)* Segment	Maximum Potential Amount of Future Fundings at September 7, 2012		Liability for Expected Future Fundings at September 7, 2012
Asia Pacific	$	20	$	—
Luxury		3		1

Total guarantees where we are the primary obligor	$	23	$	1

Tabular disclosure of each guarantee obligation, or each group of similar guarantee obligations, including (a) the nature of the guarantee, including its term, how it arose, and the events or circumstances that would require the guarantor to perform under the guarantee; (b) the maximum potential amount of future payments (undiscounted) the guarantor could be required to make under the guarantee; (c) the current carrying amount of the liability, if any, for the guarantor's obligations under the guarantee; and (d) the nature of any recourse provisions under the guarantee, and any assets held either as collateral or by third parties, and any relevant related party disclosure. Excludes disclosures about product warranties.

Scheduled Future Principal Payments For Debt

Debt (Tables)

8 Months Ended

Sep. 07, 2012

Debt Balances

The following table provides detail on our debt balances:


*($ in millions)*	At September 7, 2012		At December 30, 2011
Non-recourse debt associated with securitized notes receivable, interest rates ranging from 2.62% to 7.20% (weighted average interest rate of 4.40%) ⁽¹⁾	$	790	$	729
Warehouse credit facility		—		118
Other		3		3

	$	793	$	850

⁽¹⁾	Interest rates are as of September 7, 2012.

The following table shows scheduled future principal payments for our debt:


*($ in millions)* Year	Non-Recourse Debt		Other Debt		Total
2012	$	39	$	—	$	39
2013		120		—		120
2014		122		—		122
2015		118		—		118
2016		106		—		106
Thereafter		285		3		288

Balance at September 7, 2012	$	790	$	3	$	793

Share-Based Compensation (Tables)

8 Months Ended

Sep. 07, 2012

Assumptions Used to Estimate Fair Value of Grants

The following table outlines the assumptions used to estimate the fair value of grants during the thirty-six weeks ended September 7, 2012:


Expected volatility	54.30	%
Dividend yield	0.00	%
Risk-free rate	1.05	%
Expected term (in years)	6.25

Variable Interest Entities (Tables)

8 Months Ended

Sep. 07, 2012

Classifications of Consolidated VIE Assets and Liabilities


*($ in millions)*	Vacation Ownership Notes Receivable Securitizations		Warehouse Credit Facility		Total
Consolidated Assets:
Notes receivable, net of reserves	$	834	$	—	$	834
Interest receivable		5		—		5
Restricted cash		47		—		47

Total	$	886	$	—	$	886

Consolidated Liabilities:
Interest payable	$	3	$	—	$	3
Debt		790		—		790

Total	$	793	$	—	$	793

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

The following table shows the interest income and expense recognized as a result of our involvement with these variable interest entities during the twelve weeks ended September 7, 2012:


*($ in millions)*	Vacation Ownership Notes Receivable Securitizations		Warehouse Credit Facility		Total
Interest income	$	28	$	—	$	28
Interest expense to investors	$	8	$	—	$	8
Debt issuance cost amortization	$	1	$	1	$	2

The following table shows the interest income and expense recognized as a result of our involvement with these variable interest entities during the thirty-six weeks ended September 7, 2012:


*($ in millions)*	Vacation Ownership Notes Receivable Securitizations		Warehouse Credit Facility		Total
Interest income	$	73	$	8	$	81
Interest expense to investors	$	24	$	2	$	26
Debt issuance cost amortization	$	2	$	2	$	4

Note Receivable Securities

Cash Flows Between Company and Variable Interest Entities

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


	Thirty-Six Weeks Ended
*($ in millions)*	September 7, 2012			September 9, 2011
Cash inflows:
Net proceeds from notes receivable securitization	$	233		$	—
Principal receipts		130			155
Interest receipts		74			92

Total		437			247

Cash outflows:
Principal to investors		(120	)		(150	)
Voluntary repurchases of defaulted notes		(27	)		(36	)
Voluntary clean-up calls		(30	)		—
Interest to investors		(23	)		(32	)

Total		(200	)		(218	)

Net Cash Flows	$	237		$	29

Warehouse Credit Facility

Cash Flows Between Company and Variable Interest Entities

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


	Thirty-Six Weeks Ended
*($ in millions)*	September 7, 2012			September 9, 2011
Cash inflows:
Principal receipts	$	16		$	—
Interest receipts		9			—
Reserve release		1			—

Total		26			—

Cash outflows:
Principal to investors		(15	)		—
Voluntary repurchases of defaulted notes		(2	)		—
Repayment of Warehouse Credit Facility		(101	)		—
Interest to investors		(2	)		—

Total		(120	)		—

Net Cash Flows	$	(94	)	$	—

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

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 810
-SubTopic 10
-Section 50
-Paragraph 6
-URI http://asc.fasb.org/extlink&oid=7880789&loc=d3e5747-111685

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 810
-SubTopic 10
-Section 50
-Paragraph 9
-URI http://asc.fasb.org/extlink&oid=7880789&loc=SL6228884-111685

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 810
-SubTopic 10
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=7880789&loc=d3e5728-111685

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Variable Interest Entity
-URI http://asc.fasb.org/extlink&oid=6528138

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 810
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=7880789&loc=d3e5710-111685

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 810
-SubTopic 10
-Section 50
-Paragraph 5A
-URI http://asc.fasb.org/extlink&oid=7880789&loc=SL6759159-111685

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 140
-Paragraph 35
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name FASB Interpretation (FIN)
-Number 46R
-Paragraph 2, 14, 15, 16, 23, 24, 25, 26
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 167
-Paragraph 24
-Appendix D

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name FASB Staff Position (FSP)
-Number FAS140-4/FIN46(R)-8
-Paragraph C4
-Subparagraph d
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 167
-Paragraph 22B
-Appendix D

Reference 12: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 167
-Paragraph 23A
-Appendix D

Reference 13: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 167
-Paragraph 22E
-Appendix D

Reference 14: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name FASB Interpretation (FIN)
-Number 46R
-Paragraph 4
-Subparagraph g
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Changes in Shareholders' Equity

Shareholders' Equity (Tables)

8 Months Ended

Sep. 07, 2012

The following table details changes in shareholders’ equity during the thirty-six weeks ended September 7, 2012:


*($ in millions)*	Additional Paid-In Capital			Accumulated Other Comprehensive Income			Retained (Deficit) Earnings			Total Equity
Balance at year-end 2011	$	1,117		$	19		$	(2	)	$	1,134
Net income		—			—			23			23
Foreign currency translation adjustments		—			(1	)		—			(1	)
Adjustment to reclassification of Marriott International investment to additional paid-in capital ⁽¹⁾		(12	)		—			—			(12	)
Amounts related to share-based compensation		8			—			—			8

Balance at September 7, 2012	$	1,113		$	18		$	21		$	1,152

⁽¹⁾	Primarily consists of an adjustment to deferred tax liabilities for changes in the valuation of Marriott Vacations Worldwide at the time of Spin-Off.

Impairment Charges (Tables)

8 Months Ended

Sep. 07, 2012

Composition of Impairment Charges

The following table details the composition of these charges.


*($ in millions)*	Luxury Segment		Europe Segment		Corporate and Other		Total
Inventory impairment	$	107	$	2	$	147	$	256
Property and equipment impairment		6		—		62		68

Total	$	113	$	2	$	209	$	324

Business Segments (Tables)

8 Months Ended

Sep. 07, 2012

Revenues

Revenues


	Twelve Weeks Ended				Thirty-Six Weeks Ended
*($ in millions)*	September 7, 2012		September 9, 2011		September 7, 2012		September 9, 2011
North America	$	314	$	293	$	937	$	891
Luxury		15		24		59		79
Europe		34		39		83		95
Asia Pacific		20		22		59		64

Total segment revenues		383		378		1,138		1,129
Corporate and other		—		—		—		—

	$	383	$	378	$	1,138	$	1,129

Net Income (Loss)

Net Income (Loss)


	Twelve Weeks Ended						Thirty-Six Weeks Ended
*($ in millions)*	September 7, 2012			September 9, 2011			September 7, 2012			September 9, 2011
North America	$	70		$	53		$	213		$	188
Luxury		(5	)		(118	)		(11	)		(127	)
Europe		5			5			5			9
Asia Pacific		1			2			3			2

Total segment financial results		71			(58	)		210			72
Corporate and other		(53	)		(244	)		(163	)		(313	)
(Provision) benefit for income taxes		(12	)		81			(24	)		55

	$	6		$	(221	)	$	23		$	(186	)

Assets

Assets


	At Period-End
*($ in millions)*	September 7, 2012		December 30, 2011
North America	$	2,109	$	2,169
Luxury		146		185
Europe		113		134
Asia Pacific		91		103

Total segment assets		2,459		2,591
Corporate and other		287		255

	$	2,746	$	2,846

Organizational And Separation Related Charges (Tables)

8 Months Ended

Sep. 07, 2012

Summary of Organizational and Separation Related Charges

The following table summarizes the classification of organizational and separation related charges recorded in the Statements of Operations:


*($ in millions)*	Twelve Weeks Ended September 7, 2012		Thirty-Six Weeks Ended September 7, 2012
Marketing and sales expenses	$	—	$	1
Resort management and other services expenses		1		1
General and administrative expenses		2		8

	$	3	$	10

Summary of Significant Accounting Policies - Additional Information (Detail) $ in Millions	8 Months Ended
	Sep. 07, 2012 Property Location Segment Line	Nov. 21, 2011 USD ($) shares	Oct. 25, 2011
Significant Accounting Policies [Line Items]
Number of business segments \| Segment	4
Number of properties \| Property	64
Number of primary sources of revenues generated \| Line	4
Percentage of distribution of the outstanding shares of common stock to the shareholders of Marriott International			100.00%
Spin-off distribution ratio, spinnee shares received		1
Spin-off distribution ratio, spinnor shares held		10
Reduction in equity related to the Spin-Off \| $		$ 500
Other countries and territories
Significant Accounting Policies [Line Items]
Number of countries and territories in which company operates \| Location	8

Each Reference to Particular Quarter in Financial Statements Means Quarter Ended on Date Shown (Detail)	Sep. 07, 2012
Fiscal Years 2012 \| Third Quarter
Quarterly Financial Information [Line Items]
Quarter-End Date	Sep. 07, 2012
Fiscal Years 2012 \| Second Quarter
Quarterly Financial Information [Line Items]
Quarter-End Date	Jun. 15, 2012
Fiscal Years 2012 \| First Quarter
Quarterly Financial Information [Line Items]
Quarter-End Date	Mar. 23, 2012
Fiscal Year 2011 \| Third Quarter
Quarterly Financial Information [Line Items]
Quarter-End Date	Sep. 09, 2011
Fiscal Year 2011 \| Second Quarter
Quarterly Financial Information [Line Items]
Quarter-End Date	Jun. 17, 2011
Fiscal Year 2011 \| First Quarter
Quarterly Financial Information [Line Items]
Quarter-End Date	Mar. 25, 2011

Effect of Restatement of Previously Reported Cash Flow Activities (Detail) - USD ($) $ in Millions	8 Months Ended
	Sep. 07, 2012	Sep. 09, 2011
OPERATING ACTIVITIES
Share-based compensation	$ 8	$ 7
Net cash provided by operating activities	158	248
INVESTING ACTIVITIES
Note collections		20
Net cash (used in) provided by investing activities	1	10
FINANCING ACTIVITIES
Net cash used in financing activities	$ (56)	(259)
As Previously Reported
OPERATING ACTIVITIES
All other, including working capital changes		29
Net cash provided by operating activities		249
INVESTING ACTIVITIES
Net cash (used in) provided by investing activities		(10)
FINANCING ACTIVITIES
Repayment of debt related to securitizations		(187)
Note collections		20
Net cash used in financing activities		(240)
Adjustment
OPERATING ACTIVITIES
Share-based compensation		7
All other, including working capital changes		(8)
Net cash provided by operating activities		(1)
INVESTING ACTIVITIES
Note collections		20
Net cash (used in) provided by investing activities		20
FINANCING ACTIVITIES
Repayment of debt related to securitizations		1
Note collections		(20)
Net cash used in financing activities		(19)
As Restated
OPERATING ACTIVITIES
Share-based compensation		7
All other, including working capital changes		21
Net cash provided by operating activities		248
INVESTING ACTIVITIES
Note collections		20
Net cash (used in) provided by investing activities		10
FINANCING ACTIVITIES
Repayment of debt related to securitizations		(186)
Net cash used in financing activities		$ (259)

Income Taxes - Additional Information (Detail) - USD ($)
$ in Millions

3 Months Ended

8 Months Ended

Sep. 07, 2012

Dec. 30, 2011

Income Taxes [Line Items]

Reduction of Additional paid-in capital

^[1]

$ (12)

Unrecognized tax benefits that, if recognized, would impact the effective tax rate

$ 1

$ 2

Income Tax Examination Description

Marriott Vacations Worldwide has joined in the Marriott International U.S. Federal tax consolidated filing for all years prior to 2011 and the portion of 2011 up to the date of the Spin-Off. The IRS has examined Marriott International's federal income tax returns, and it has settled all issues for the tax years through 2009. Marriott International participated in the IRS Compliance Assurance Program for the 2011 and 2010 tax years.

Marriott International

Income Taxes [Line Items]

Increase in deferred tax liabilities

$ 12

Reduction of Additional paid-in capital

$ (12)

[1]	Primarily consists of an adjustment to deferred tax liabilities for changes in the valuation of Marriott Vacations Worldwide at the time of Spin-Off.

Composition of Notes Receivable Balances, Net of Reserves (Detail) - USD ($) $ in Millions	Sep. 07, 2012	Dec. 30, 2011
Accounts, Notes, Loans and Financing Receivable [Line Items]
Notes receivable	$ 1,065	$ 1,149
Securitized Vacation Ownership Notes Receivable
Accounts, Notes, Loans and Financing Receivable [Line Items]
Notes receivable	834	910
Non-Securitized Vacation Ownership Notes Receivable
Accounts, Notes, Loans and Financing Receivable [Line Items]
Notes receivable	$ 231	$ 239

Future Principal Payments, Net of Reserves, and Interest Rates of Notes Receivable (Detail) $ in Millions	Sep. 07, 2012 USD ($)
Future Minimum Payments Receivable [Line Items]
2012	$ 64
2013	157
2014	150
2015	143
2016	133
Thereafter	418
Notes receivable	$ 1,065
Weighted average stated interest rate	12.60%
Range of stated interest rates, minimum	0.00%
Range of stated interest rates, maximum	19.50%
Non-Securitized Vacation Ownership Notes Receivable
Future Minimum Payments Receivable [Line Items]
2012	$ 26
2013	38
2014	28
2015	23
2016	21
Thereafter	95
Notes receivable	$ 231
Weighted average stated interest rate	11.40%
Range of stated interest rates, minimum	0.00%
Range of stated interest rates, maximum	19.50%
Securitized Vacation Ownership Notes Receivable
Future Minimum Payments Receivable [Line Items]
2012	$ 38
2013	119
2014	122
2015	120
2016	112
Thereafter	323
Notes receivable	$ 834
Weighted average stated interest rate	13.00%
Range of stated interest rates, minimum	6.10%
Range of stated interest rates, maximum	19.50%

Interest Income Associated With Vacation Ownership Notes Receivable (Detail) - USD ($) $ in Millions	3 Months Ended		8 Months Ended
	Sep. 07, 2012	Sep. 09, 2011	Sep. 07, 2012	Sep. 09, 2011
Accounts, Notes, Loans and Financing Receivable [Line Items]
Interest income associated with vacation ownership notes receivable	$ 33	$ 37	$ 101	$ 113
Securitized Vacation Ownership Notes Receivable
Accounts, Notes, Loans and Financing Receivable [Line Items]
Interest income associated with vacation ownership notes receivable	28	29	81	91
Non-Securitized Vacation Ownership Notes Receivable
Accounts, Notes, Loans and Financing Receivable [Line Items]
Interest income associated with vacation ownership notes receivable	$ 5	$ 8	$ 20	$ 22

Notes Receivable Reserves (Detail)
$ in Millions

8 Months Ended

Sep. 07, 2012

USD ($)

Financing Receivable, Allowance for Credit Losses [Line Items]

$ 171

Write-offs

(45)

Non-Securitized Vacation Ownership Notes Receivable

156

Financing Receivable, Allowance for Credit Losses [Line Items]

104

Defaulted notes receivable repurchase activity

Securitizations

(21)

Clean-up calls

^[1]

Write-offs

(45)

^[2]

Securitized Vacation Ownership Notes Receivable

Financing Receivable, Allowance for Credit Losses [Line Items]

Defaulted notes receivable repurchase activity

Securitizations

Clean-up calls

(12)

^[1]

(29)

^[2]

$ 61

[1]	Refers to our voluntary repurchase of previously securitized non-defaulted vacation ownership notes receivable to retire previous notes receivable securitizations.
[2]	Decrease in securitized vacation ownership notes receivable reserve and increase in non-securitized vacation ownership notes receivable reserve was attributable to the transfer of the reserve when we voluntarily repurchased the vacation ownership notes receivable.

The sum of the periodic provision charged to earnings, based on an assessment of uncollectibility from the counterparty on account of loan, lease or other credit losses, to reduce these accounts to the amount that approximates their net realizable value.

Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]

Notes Receivable - Additional Information (Detail) - USD ($) $ in Millions	8 Months Ended	12 Months Ended
	Sep. 07, 2012	Dec. 30, 2011
Accounts, Notes, Loans and Financing Receivable [Line Items]
Estimated average remaining default rates for notes receivable	7.46%	7.71%
Estimated default rate increases that would have resulted an increase in allowance for credit losses	0.50%
Allowance for credit losses that would have been increased	$ 5	$ 6

Recorded Investment in Non-accrual Notes Receivable that are 90 Days or More Past Due (Detail) - USD ($) $ in Millions	8 Months Ended
	Sep. 07, 2012	Sep. 09, 2011	Dec. 30, 2011
Financing Receivable, Recorded Investment, Past Due [Line Items]
Investment in notes receivable on non-accrual status	$ 93		$ 101
Average investment in notes receivable on non-accrual status	97	$ 122
Non-Securitized Vacation Ownership Notes Receivable
Financing Receivable, Recorded Investment, Past Due [Line Items]
Investment in notes receivable on non-accrual status	84		90
Average investment in notes receivable on non-accrual status	87	108
Securitized Vacation Ownership Notes Receivable
Financing Receivable, Recorded Investment, Past Due [Line Items]
Investment in notes receivable on non-accrual status	9		$ 11
Average investment in notes receivable on non-accrual status	$ 10	$ 14

Aging of Recorded Investment in Principal, Before Reserves, in Vacation Ownership Notes Receivable (Detail) - USD ($) $ in Millions	Sep. 07, 2012	Dec. 30, 2011
Financing Receivable, Recorded Investment, Past Due [Line Items]
31-90 days past due	$ 30	$ 35
91-150 days past due	16	19
Greater than 150 days past due	77	82
Total past due	123	136
Current	1,098	1,184
Total vacation ownership notes receivable	1,221	1,320
Non-Securitized Vacation Ownership Notes Receivable
Financing Receivable, Recorded Investment, Past Due [Line Items]
31-90 days past due	11	11
91-150 days past due	8	8
Greater than 150 days past due	76	82
Total past due	95	101
Current	231	242
Total vacation ownership notes receivable	326	343
Securitized Vacation Ownership Notes Receivable
Financing Receivable, Recorded Investment, Past Due [Line Items]
31-90 days past due	19	24
91-150 days past due	8	11
Greater than 150 days past due	1
Total past due	28	35
Current	867	942
Total vacation ownership notes receivable	$ 895	$ 977

Carrying Values and Estimated Fair Values of Financial Assets and Liabilities (Detail) - USD ($)
$ in Millions

Sep. 07, 2012

Dec. 30, 2011

$ 1,065

$ 1,149

Mandatorily redeemable preferred stock of consolidated subsidiary

(793)

(850)

(40)

(179)

(225)

Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]

(80)

(76)

Non-Recourse Debt

Warehouse Credit Facility

^[1]

(790)

(729)

Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]

Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]

^[1]

(118)

Other Debt

Securitized Vacation Ownership Notes Receivable

(3)

Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]

Non-Securitized Vacation Ownership Notes Receivable

834

910

Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]

Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]

231

239

Carrying Amount

Mandatorily redeemable preferred stock of consolidated subsidiary

1,065

1,149

(40)

(179)

(225)

Total financial liabilities

(31)

(29)

(1,043)

(1,144)

Carrying Amount | Non-Recourse Debt

Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]

Carrying Amount | Warehouse Credit Facility

(790)

(729)

Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]

Carrying Amount | Other Debt

(118)

Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]

Carrying Amount | Securitized Vacation Ownership Notes Receivable

(3)

Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]

Carrying Amount | Non-Securitized Vacation Ownership Notes Receivable

834

910

Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]

Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]

231

239

Fair Value

Mandatorily redeemable preferred stock of consolidated subsidiary

^[2]

1,260

1,306

^[2]

(46)

(40)

^[2]

(165)

(206)

Total financial liabilities

^[2]

(34)

(32)

^[2]

(1,077)

(1,147)

Fair Value | Non-Recourse Debt

Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]

Fair Value | Warehouse Credit Facility

^[2]

(829)

(750)

Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]

Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]

^[2]

(116)

Fair Value | Other Debt

Fair Value | Securitized Vacation Ownership Notes Receivable

^[2]

(3)

Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]

Fair Value | Non-Securitized Vacation Ownership Notes Receivable

^[2]

1,019

1,061

Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]

Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]

^[2]

$ 241

$ 245

[1]	Interest rates are as of September 7, 2012.
[2]	Fair value of financial instruments has been determined using Level 3 inputs.

Carrying Values and Estimated Fair Values of Financial Assets and Liabilities - Non-securitized Notes Receivable (Detail) - USD ($)
$ in Millions

Sep. 07, 2012

Dec. 30, 2011

Non-Securitized Vacation Ownership Notes Receivable

$ 1,065

$ 1,149

Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]

Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]

231

239

Carrying Amount

Carrying Amount | Non-Securitized Vacation Ownership Notes Receivable

1,065

1,149

Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]

Carrying Amount | Non-Securitized Vacation Ownership Notes Receivable | Eligible for Securitization

231

239

Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]

Carrying Amount | Non-Securitized Vacation Ownership Notes Receivable | Not Eligible for Securitization

Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]

Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]

184

198

Fair Value

Fair Value | Non-Securitized Vacation Ownership Notes Receivable

^[1]

1,260

1,306

Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]

Fair Value | Non-Securitized Vacation Ownership Notes Receivable | Eligible for Securitization

^[1]

241

245

Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]

Fair Value | Non-Securitized Vacation Ownership Notes Receivable | Not Eligible for Securitization

Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]

$ 184

$ 198

[1]	Fair value of financial instruments has been determined using Level 3 inputs.

Earnings Per Share - Additional Information (Detail) - $ / shares

3 Months Ended

8 Months Ended

Sep. 07, 2012

Sep. 09, 2011

Sep. 07, 2012

Sep. 09, 2011

Dec. 30, 2011

Nov. 21, 2011

Common stock, shares outstanding

Common stock, par value

$ 0.01

34,415,985

33,845,700

Shares used in computing basic income per share

34,400,000

^[1]

33,700,000

34,200,000

^[1]

33,700,000

Shares used in computing diluted income per share

36,200,000

^[1]

33,700,000

36,000,000

^[1]

33,700,000

Stock Appreciation Rights (SARs)

Shares excluded from the calculation of diluted earnings per share (in shares)

1,183

Stock options and SARs not included in the calculation of diluted earning per share because exercise prices exceeded market prices, exercise prices

$ 32.74

Employee stock option and SARs

Shares excluded from the calculation of diluted earnings per share (in shares)

38,487

Employee stock option and SARs | Minimum

Stock options and SARs not included in the calculation of diluted earning per share because exercise prices exceeded market prices, exercise prices

$ 28.16

Employee stock option and SARs | Maximum

Stock options and SARs not included in the calculation of diluted earning per share because exercise prices exceeded market prices, exercise prices

$ 32.74

Marriott International

Distribution of common stock to the shareholders of Marriott International

33,700,000

Common stock, par value

$ 0.01

Common stock, shares outstanding

100

[1]

Reconciliation of Earnings And Number of Shares Used in Calculation of Basic And Diluted Earnings Per Share (Detail) - USD ($)
$ / shares in Units, shares in Millions, $ in Millions

3 Months Ended

8 Months Ended

Sep. 07, 2012

Sep. 09, 2011

Sep. 07, 2012

Sep. 09, 2011

Computation of Basic Earnings (Loss) Per Share

Weighted average shares outstanding

$ 6

^[1]

$ (221)

$ 23

^[1]

$ (186)

34.4

^[1]

33.7

34.2

^[1]

33.7

Basic earnings (loss) per share

$ 0.18

^[1]

$ (6.57)

$ 0.68

^[1]

$ (5.52)

Computation of Diluted Earnings (Loss) Per Share

Weighted average shares outstanding

$ 6

^[1]

$ (221)

$ 23

^[1]

$ (186)

34.4

^[1]

33.7

34.2

^[1]

33.7

Effect of dilutive securities

Employee stock options and SARs

^[1]

1.1

1.0

Restricted stock units

^[1]

0.7

0.8

Shares for diluted earnings (loss) per share

36.2

^[1]

33.7

36.0

^[1]

33.7

Diluted earnings (loss) per share

$ 0.17

^[1]

$ (6.57)

$ 0.65

^[1]

$ (5.52)

[1]

Reconciliation of Earnings And Number of Shares Used in Calculation of Basic And Diluted Earnings Per Share (Parenthetical) (Detail) - shares	3 Months Ended	8 Months Ended
	Sep. 07, 2012	Sep. 07, 2012
Performance-based awards
Schedule of Earnings Per Share, Basic and Diluted, by Common Class [Line Items]
Shares excluded from the calculation of diluted earnings per share (in shares)	84,433	84,433

Securities (including those issuable pursuant to contingent stock agreements) that could potentially dilute basic earnings per share (EPS) or earnings per unit (EPU) in the future that were not included in the computation of diluted EPS or EPU because to do so would increase EPS or EPU amounts or decrease loss per share or unit amounts for the period presented.

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Antidilution
-URI http://asc.fasb.org/extlink&oid=6505113

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Diluted Earnings Per Share
-URI http://asc.fasb.org/extlink&oid=6510752

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Contingent Stock Agreement
-URI http://asc.fasb.org/extlink&oid=6508534

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 50
-Paragraph 1
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=6371337&loc=d3e3550-109257

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 128
-Paragraph 40
-Subparagraph c
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 128
-Paragraph 13, 14
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Emerging Issues Task Force (EITF)
-Number 07-4
-Paragraph 4
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 128
-Paragraph 171
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Composition of Inventory (Detail) - USD ($) $ in Millions	Sep. 07, 2012	Dec. 30, 2011
Inventory Disclosure [Line Items]
Finished goods	$ 440	$ 448
Work-in-progress	164	215
Land and infrastructure	287	290
Real estate inventory	891	953
Operating supplies and retail inventory	6	6
Inventory	$ 897	$ 959

Contingencies And Commitments - Additional Information (Detail) - 8 months ended Sep. 07, 2012 € in Millions, $ in Millions	USD ($) LegalMatter Plaintiff	EUR (€) LegalMatter
Commitments and Contingencies Disclosure [Line Items]
Surety bonds issued	$ 93
Letters of credit outstanding	5
Project Completion Guarantee \| Vacation Ownership
Commitments and Contingencies Disclosure [Line Items]
Estimated cash outflow associated with completing all phases of existing portfolio of projects	137
Liabilities related to projects	$ 13
Project estimated completion year	2016
Revolving Corporate Credit Facility
Commitments and Contingencies Disclosure [Line Items]
Revolving credit facility, maturity term	4 years	4 years
Revolving credit facility aggregate amount	$ 200
Marriott International
Commitments and Contingencies Disclosure [Line Items]
Standby letters of credit	$ 2
Superior Court of California, County of San Francisco
Commitments and Contingencies Disclosure [Line Items]
Number of plaintiffs in lawsuits \| Plaintiff	11
Other lawsuits
Commitments and Contingencies Disclosure [Line Items]
Number of plaintiffs in lawsuits \| Plaintiff	11
Number of pending lawsuits \| LegalMatter	2	2
Legal matters accrued	$ 7
Information technology hardware and software
Commitments and Contingencies Disclosure [Line Items]
Commitments payment due in 2012	1
Other Purchase Commitment
Commitments and Contingencies Disclosure [Line Items]
Unfunded purchase commitments	2	€ 1
Unfunded purchase commitments due in 2013	1
Unfunded purchase commitments due in 2014	1
Commitments
Commitments and Contingencies Disclosure [Line Items]
Commitments to subsidize vacation ownership associations	$ 3
Extended Term
Commitments and Contingencies Disclosure [Line Items]
Underlying notes extended expiration year	2022

Maximum Potential Amount of Future Fundings for Financing Guarantees and Carrying Amount of Liability for Expected Future Fundings (Detail) - Primary Obligor $ in Millions	Sep. 07, 2012 USD ($)
Guarantor Obligations [Line Items]
Maximum Potential Amount of Future Fundings	$ 23
Liability for Expected Future Fundings	1
Asia Pacific
Guarantor Obligations [Line Items]
Maximum Potential Amount of Future Fundings	20
Luxury
Guarantor Obligations [Line Items]
Maximum Potential Amount of Future Fundings	3
Liability for Expected Future Fundings	$ 1

Debt Balances (Detail) - USD ($)
$ in Millions

Sep. 07, 2012

Dec. 30, 2011

$ 793

$ 850

Non-Recourse Debt

Warehouse Credit Facility

^[1]

790

729

^[1]

118

Other Debt

$ 3

[1]	Interest rates are as of September 7, 2012.

Debt Balances (Parenthetical) (Detail) - Non-Recourse Debt

Sep. 07, 2012

^[1]

Debt, weighted average interest rate

4.40%

Minimum

Debt, stated interest rate

2.62%

Maximum

Debt, stated interest rate

7.20%

[1]	Interest rates are as of September 7, 2012.

Debt - Additional Information (Detail) $ in Millions	1 Months Ended	3 Months Ended	8 Months Ended
Debt - Additional Information (Detail) $ in Millions	Sep. 11, 2012 USD ($)	Sep. 07, 2012 USD ($) Contract	Sep. 07, 2012 USD ($) Contract	Sep. 09, 2011 USD ($)
Debt Disclosure [Line Items]
Cash paid for interest, net of amounts capitalized			$ 33	$ 32
Number of notes receivable pools under performance triggers \| Contract		1
Number of notes receivable pools back into compliance \| Contract		1
Number of securitized notes receivable pools out of compliance with performance triggers \| Contract		0	0
Number of consolidated notes receivable pools outstanding excluding Warehouse Credit Facility \| Contract		10	10
Securitized Vacation Ownership Notes Receivable \| Performance Triggers
Debt Disclosure [Line Items]
Cash flows redirected as a result of reaching performance triggers			$ 1
Revolving Corporate Credit Facility
Debt Disclosure [Line Items]
Amount borrowed under revolving corporate credit facility		$ 0	0
Borrowing capacity		200	200
Warehouse Credit Facility
Debt Disclosure [Line Items]
Borrowing capacity		$ 300	$ 300
Subsequent Event \| Warehouse Credit Facility
Debt Disclosure [Line Items]
Borrowing capacity	$ 250
Revolving period	Sep. 10, 2014
Basis spread on one-month LIBOR and bank conduit commercial paper rates	1.50%

Scheduled Future Principal Payments For Debt (Detail) - USD ($)
$ in Millions

Sep. 07, 2012

Dec. 30, 2011

Long Term Debt Maturities Repayments Of Principal [Line Items]

$ 39

120

122

118

106

288

Balance at end of period

793

$ 850

Non-Recourse Debt

Long Term Debt Maturities Repayments Of Principal [Line Items]

120

122

118

106

285

Balance at end of period

^[1]

790

729

Other Debt

Long Term Debt Maturities Repayments Of Principal [Line Items]

Thereafter

Balance at end of period

$ 3

[1]	Interest rates are as of September 7, 2012.

Mandatorily Redeemable Preferred Stock Of Consolidated Subsidiary - Additional Information (Detail) - Series A Preferred Stock - Non-voting - USD ($) $ in Millions	1 Months Ended
	Oct. 31, 2011	Sep. 07, 2012
Financial Instruments Subject to Mandatory Redemption by Settlement Terms [Line Items]
Series A preferred stock issued value	$ 40
Preferred Stock Dividend Payment Terms	Subsequently Marriott International sold all of this preferred stock to third-party investors. For the first five years after issuance, the Series A preferred stock will pay an annual cash dividend equal to the five-year U.S. Treasury Rate as of October 19, 2011, plus a spread of 10.958 percent, for a total annual cash dividend rate of 12 percent. On the fifth anniversary of issuance, the annual cash dividend rate will be reset to the five-year U.S. Treasury Rate in effect on such date plus the same 10.958 percent spread.
Series A preferred stock, basic point	10.958%
Series A preferred stock, dividend rate	12.00%
Preferred Stock Redemption Terms	The Series A preferred stock is mandatorily redeemable by MVW US Holdings upon the tenth anniversary of the date of issuance but can be redeemed at our option after five years.The Series A preferred stock has an aggregate liquidation preference of $40 million plus any accrued and unpaid dividends and an additional premium if liquidation occurs during the first five years after the issuance of the preferred stock.
Series A preferred stock, aggregate liquidation preference value	$ 40
Series A preferred stock, share authorized		1,000
Series A preferred stock, share issued		40
Series A preferred stock, share outstanding		40

Share-Based Compensation - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended		8 Months Ended
	Sep. 07, 2012	Sep. 09, 2011	Sep. 07, 2012	Sep. 09, 2011	Dec. 30, 2011
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Deferred compensation costs related to unvested awards	$ 16		$ 16		$ 19
Officers and Key Management Employees
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense related to award grants	$ 3	$ 2	$ 8	$ 7
Marriott Vacations Worldwide Stock and Cash Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Maximum amount of RSU subject to vesting	6,000,000		6,000,000
Shares available for grants under the plan	2,000,000		2,000,000
Restricted stock units \| Employee
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock awards, granted			215,109
Stock awards, vesting period			4 years
Stock awards, weighted average grant-date fair value			$ 23
Restricted stock units \| Key Members of Management \| Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Maximum amount of RSU subject to vesting	170,000		170,000
Stock Appreciation Rights (SARs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected annual dividend per share			0.00%
Stock Appreciation Rights (SARs) \| Non Employee Director
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock awards, granted			3,961
Stock awards, vesting period			4 years
Stock awards, weighted average grant-date fair value			$ 15
Stock awards, expiration from grant date			10 years
Stock awards, weighted average exercise price			$ 29
Expected annual dividend per share			0.00%

Assumptions Used to Estimate Fair Value of Grants (Detail) - Stock Appreciation Rights (SARs)	8 Months Ended
	Sep. 07, 2012
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected volatility	54.30%
Dividend yield	0.00%
Risk-free rate	1.05%
Expected term (in years)	6 years 3 months

Classifications of Consolidated VIE Assets and Liabilities (Detail) $ in Millions	Sep. 07, 2012 USD ($)
Variable Interest Entity [Line Items]
VIE Assets	$ 886
VIE Liabilities	793
Notes Receivable
Variable Interest Entity [Line Items]
VIE Assets	834
Interest Receivable
Variable Interest Entity [Line Items]
VIE Assets	5
Restricted Cash
Variable Interest Entity [Line Items]
VIE Assets	47
Interest Payable
Variable Interest Entity [Line Items]
VIE Liabilities	3
Debt
Variable Interest Entity [Line Items]
VIE Liabilities	790
Securitized Vacation Ownership Notes Receivable
Variable Interest Entity [Line Items]
VIE Assets	886
VIE Liabilities	793
Securitized Vacation Ownership Notes Receivable \| Notes Receivable
Variable Interest Entity [Line Items]
VIE Assets	834
Securitized Vacation Ownership Notes Receivable \| Interest Receivable
Variable Interest Entity [Line Items]
VIE Assets	5
Securitized Vacation Ownership Notes Receivable \| Restricted Cash
Variable Interest Entity [Line Items]
VIE Assets	47
Securitized Vacation Ownership Notes Receivable \| Interest Payable
Variable Interest Entity [Line Items]
VIE Liabilities	3
Securitized Vacation Ownership Notes Receivable \| Debt
Variable Interest Entity [Line Items]
VIE Liabilities	$ 790

Variable Interest Entities - Additional Information (Detail) - USD ($)	8 Months Ended
	Sep. 07, 2012	Sep. 09, 2011	Dec. 30, 2011
Variable Interest Entity [Line Items]
Noncontrolling interest	$ 0
Notes receivable, net	$ 1,065,000,000		$ 1,149,000,000
Minimum
Variable Interest Entity [Line Items]
Limit to repurchasing defaulted mortgage notes at the outstanding principal balance	15.00%
Maximum
Variable Interest Entity [Line Items]
Limit to repurchasing defaulted mortgage notes at the outstanding principal balance	20.00%
Variable Interest Entity
Variable Interest Entity [Line Items]
Maximum Loss Exposure, Determination Methodology	Our maximum exposure to loss relating to the entities that own these vacation ownership notes receivable is the overcollateralization amount (the difference between the loan collateral balance and the balance on the outstanding vacation ownership notes receivable), plus cash reserves and any residual interest in future cash flows from collateral.
Notes receivable, net	$ 834,000,000		$ 910,000,000
Variable Interest Entity, Not Primary Beneficiary \| Equity Investment And Loan Receivable
Variable Interest Entity [Line Items]
Maximum Loss Exposure, Determination Methodology	We have a remaining accrual of $10 million for potential future funding included in other liabilities on our Balance Sheet, representing our remaining expected exposure to loss related to our involvement with this entity.
Notes receivable, net	$ 0
Accrued liability for additional funding	10,000,000
Reversal of impairment cost on investment	$ 2,000,000	$ 4,000,000

Interest Income and Expense Recognized As a Result of Our Involvement with Variable Interest Entities (Detail) - USD ($) $ in Millions	3 Months Ended	8 Months Ended
	Sep. 07, 2012	Sep. 07, 2012	Sep. 09, 2011
Variable Interest Entity [Line Items]
Debt issuance cost amortization		$ 5	$ 3
Variable Interest Entity
Variable Interest Entity [Line Items]
Interest income	$ 28	81
Interest expense to investors	8	26
Debt issuance cost amortization	2	4
Variable Interest Entity \| Securitized Vacation Ownership Notes Receivable
Variable Interest Entity [Line Items]
Interest income	28	73
Interest expense to investors	8	24
Debt issuance cost amortization	1	2
Variable Interest Entity \| Warehouse Credit Facility
Variable Interest Entity [Line Items]
Interest income		8
Interest expense to investors		2
Debt issuance cost amortization	$ 1	$ 2

Cash Flows Between Company and Variable Interest Entities (Detail) - USD ($) $ in Millions	8 Months Ended
	Sep. 07, 2012	Sep. 09, 2011
Securitized Vacation Ownership Notes Receivable
Variable Interest Entity [Line Items]
Net proceeds from notes receivable securitization	$ 233
Principal receipts	130	$ 155
Interest receipts	74	92
Total	437	247
Principal to investors	(120)	(150)
Voluntary repurchases of defaulted notes	(27)	(36)
Voluntary clean-up calls	(30)
Interest to investors	(23)	(32)
Total	(200)	(218)
Net Cash Flows	237	$ 29
Warehouse Credit Facility
Variable Interest Entity [Line Items]
Principal receipts	16
Interest receipts	9
Reserve release	1
Total	26
Principal to investors	(15)
Voluntary repurchases of defaulted notes	(2)
Repayment of Warehouse Credit Facility	(101)
Interest to investors	(2)
Total	(120)
Net Cash Flows	$ (94)

Related Party Transactions - Additional Information (Detail) - Marriott International - USD ($) $ in Millions	3 Months Ended	8 Months Ended
	Sep. 09, 2011	Sep. 09, 2011
Related Party Transaction [Line Items]
Costs for services	$ 7	$ 22
Indirect general and corporate overhead expenses	$ 3	$ 10

Changes in Shareholder's Equity (Detail) - USD ($)
$ in Millions

3 Months Ended

8 Months Ended

Sep. 07, 2012

Sep. 09, 2011

Sep. 07, 2012

Sep. 09, 2011

Foreign currency translation adjustments

$ 1,134

Net income

$ 6

^[1]

$ (221)

^[1]

$ (186)

$ 1

(1)

$ 1

Adjustment to reclassification of Marriott International investment to additional paid-in capital

^[2]

(12)

Additional Paid-In Capital

1,152

Adjustment to reclassification of Marriott International investment to additional paid-in capital

1,117

^[2]

(12)

Accumulated Other Comprehensive Income

1,113

Foreign currency translation adjustments

(1)

Retained (Deficit) Earnings

(2)

Net income

$ 21

[1]	Approximately 84,433 shares of common stock issuable upon the vesting of certain performance-based awards were not included in the computations of diluted earnings (loss) per share for the third quarter of 2012 and for the thirty-six weeks ended September 7, 2012, because the performance conditions required for such shares to vest were not achieved by the end of the reporting period.
[2]	Primarily consists of an adjustment to deferred tax liabilities for changes in the valuation of Marriott Vacations Worldwide at the time of Spin-Off.

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

Impairment Charges - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended	8 Months Ended
	Sep. 09, 2011	Sep. 09, 2011
Impairment Costs [Line Items]
Impairment charge	$ 324	$ 324
Pre Tax
Impairment Costs [Line Items]
Impairment charge		324
After Tax
Impairment Costs [Line Items]
Impairment charge		$ 234

Composition of Impairment Charges (Detail) - USD ($) $ in Millions	3 Months Ended	8 Months Ended
	Sep. 09, 2011	Sep. 09, 2011
Impairment Costs [Line Items]
Inventory impairment	$ 256
Property and equipment impairment	68
Total	324	$ 324
Luxury
Impairment Costs [Line Items]
Inventory impairment	107
Property and equipment impairment	6
Total	113
Europe
Impairment Costs [Line Items]
Inventory impairment	2
Property and equipment impairment
Total	2
Corporate and Other
Impairment Costs [Line Items]
Inventory impairment	147
Property and equipment impairment	62
Total	$ 209

The aggregate amount of write-downs for impairments recognized during the period for long lived assets held for use (including those held for disposal by means other than sale).

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 958
-SubTopic 225
-Section 45
-Paragraph 11
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=6743430&loc=d3e92212-112881

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Impairment
-URI http://asc.fasb.org/extlink&oid=6515133

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 230
-SubTopic 10
-Section 45
-Paragraph 28
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=6943989&loc=d3e3602-108585

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 360
-SubTopic 10
-Section 45
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=8077374&loc=d3e2420-110228

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 360
-SubTopic 10
-Section 50
-Paragraph 2
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=6391110&loc=d3e2921-110230

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 144
-Paragraph 26
-Subparagraph b
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 144
-Paragraph 7, 25
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Segment Reporting, Reconciliation of Net Income (Loss) Segment to Consolidated [Line Items]

Business Segments - Additional Information (Detail)	8 Months Ended
Business Segments - Additional Information (Detail)	Sep. 07, 2012 Segment
Segment Reporting Disclosure [Line Items]
Number of business segments	4

Revenues (Detail) - USD ($) $ in Millions	3 Months Ended		8 Months Ended
Revenues (Detail) - USD ($) $ in Millions	Sep. 07, 2012	Sep. 09, 2011	Sep. 07, 2012	Sep. 09, 2011
Segment Reporting, Revenue Reconciling Item [Line Items]
Revenue	$ 383	$ 378	$ 1,138	$ 1,129
North America
Segment Reporting, Revenue Reconciling Item [Line Items]
Revenue	314	293	937	891
Luxury
Segment Reporting, Revenue Reconciling Item [Line Items]
Revenue	15	24	59	79
Europe
Segment Reporting, Revenue Reconciling Item [Line Items]
Revenue	34	39	83	95
Asia Pacific
Segment Reporting, Revenue Reconciling Item [Line Items]
Revenue	20	22	59	64
Total reportable segment
Segment Reporting, Revenue Reconciling Item [Line Items]
Revenue	$ 383	$ 378	$ 1,138	$ 1,129

Net Income (Loss) (Detail) - USD ($)
$ in Millions

3 Months Ended

8 Months Ended

Sep. 07, 2012

Sep. 09, 2011

Sep. 07, 2012

Sep. 09, 2011

Provision for income taxes

$ 18

$ (302)

$ 47

$ (241)

(12)

(24)

Net income

^[1]

(221)

^[1]

(186)

North America

Segment Reporting, Reconciliation of Net Income (Loss) Segment to Consolidated [Line Items]

Segment Reporting, Reconciliation of Net Income (Loss) Segment to Consolidated [Line Items]

213

188

Luxury

Segment Reporting, Reconciliation of Net Income (Loss) Segment to Consolidated [Line Items]

(5)

(118)

(11)

(127)

Europe

Segment Reporting, Reconciliation of Net Income (Loss) Segment to Consolidated [Line Items]

Asia Pacific

Segment Reporting, Reconciliation of Net Income (Loss) Segment to Consolidated [Line Items]

Total reportable segment

Segment Reporting, Reconciliation of Net Income (Loss) Segment to Consolidated [Line Items]

(58)

210

Corporate and Other