View Filing Data

Resort management and other services

$ 672

$ 618

$ 627

260

253

238

Financing

141

151

169

Rental

262

225

212

Other

385

362

349

1,750

1,639

1,624

EXPENSES

214

203

239

Resort management and other services

316

329

341

190

199

198

Financing

Rental

251

225

220

Other

General and administrative

Litigation settlement

Organizational and separation related

Consumer financing interest

Royalty fee

Impairment

^[1]

324

385

362

349

Impairment (charges) reversals on equity investment

1,606

1,603

1,847

Gains and other income

Interest expense

(13)

(17)

Equity in earnings

(1)

131

(217)

(51)

(24)

NET INCOME (LOSS)

$ 80

^[2]

$ 7

^[3]

$ (172)

Shares used in computing basic earnings (loss) per share

$ 2.25

^{[2],[4],[5],[6]}

$ 0.19

^{[3],[4],[5],[6]}

$ (5.12)

35.4

^[2]

34.4

^[3]

33.7

Shares used in computing diluted earnings (loss) per share

$ 2.18

^{[2],[4],[5],[6]}

$ 0.18

^{[3],[4],[5],[6]}

$ (5.12)

36.6

^[2]

36.2

^[3]

33.7

[1]	The 2013 impairment charge related to a leased golf course in our Europe segment.
[2]	The computations of diluted earnings per share exclude approximately 229,000 shares of common stock, the maximum number of shares issuable as of January 3, 2014 upon the vesting of certain performance-based awards, because the performance conditions required for such shares to vest were not achieved by the end of the reporting period.
[3]	The computations of diluted earnings per share exclude approximately 157,000 shares of common stock, the maximum number of shares issuable as of December 28, 2012 upon the vesting of certain performance-based awards, because the performance conditions required for such shares to vest were not achieved by the end of the reporting period.
[4]	The quarterly results have been restated to correct certain prior period errors as discussed in Footnote No. 1, "Summary of Significant Accounting Policies."
[5]	The quarters consisted of 12 weeks, except for the fourth quarter of 2013, which consisted of 17 weeks and the fourth quarter of 2012, which consisted of 16 weeks.
[6]	The sum of the earnings per share for the four quarters differs from annual earnings per share due to the required method of computing the weighted average shares in interim periods.

Consolidated Statements of Comprehensive Income (Loss) - USD ($)
$ in Millions

12 Months Ended

Jan. 03, 2014

Dec. 28, 2012

Dec. 30, 2011

Statement Of Income And Comprehensive Income [Abstract]

Other comprehensive income (loss), net of tax:

$ 80

^[1]

$ 7

^[2]

$ (172)

Total other comprehensive income (loss), net of tax

(9)

(9)

COMPREHENSIVE INCOME (LOSS)

$ 82

$ 9

$ (181)

[1]	The computations of diluted earnings per share exclude approximately 229,000 shares of common stock, the maximum number of shares issuable as of January 3, 2014 upon the vesting of certain performance-based awards, because the performance conditions required for such shares to vest were not achieved by the end of the reporting period.
[2]	The computations of diluted earnings per share exclude approximately 157,000 shares of common stock, the maximum number of shares issuable as of December 28, 2012 upon the vesting of certain performance-based awards, because the performance conditions required for such shares to vest were not achieved by the end of the reporting period.

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=31042434&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=26872669&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=28358780&loc=d3e565-108580

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 03
-Paragraph 19
-Article 5

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 04
-Paragraph 20
-Article 9

Consolidated Balance Sheets - USD ($) $ in Millions	Jan. 03, 2014	Dec. 28, 2012
ASSETS
Cash and cash equivalents	$ 200	$ 103
Restricted cash (including $34 and $31 from VIEs, respectively)	86	68
Accounts and contracts receivable (including $5 and $5 from VIEs, respectively)	109	100
Vacation ownership notes receivable (including $719 and $727 from VIEs, respectively)	970	1,056
Inventory	870	888
Property and equipment	254	261
Other	143	137
Total Assets	2,632	2,613
LIABILITIES AND EQUITY
Accounts payable	129	113
Advance deposits	48	64
Accrued liabilities (including $1 and $1 from VIEs, respectively)	185	181
Deferred revenue	19	32
Payroll and benefits liability	82	82
Liability for Marriott Rewards customer loyalty program	114	159
Deferred compensation liability	37	45
Mandatorily redeemable preferred stock of consolidated subsidiary	40	40
Debt (including $674 and $674 from VIEs, respectively)	678	678
Other	31	38
Deferred taxes	60	42
Total Liabilities	1,423	1,474
Contingencies and Commitments (Note 9)
Preferred stock - $.01 par value; 2,000,000 shares authorized; none issued or outstanding
Common stock - $.01 par value; 100,000,000 shares authorized; 35,637,765 and 35,026,533 shares issued, respectively
Treasury stock - at cost; 505,023 and 0 shares, respectively	(26)
Additional paid-in capital	1,130	1,116
Accumulated other comprehensive income	23	21
Retained earnings	82	2
Total Equity	1,209	1,139
Total Liabilities and Equity	$ 2,632	$ 2,613

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions	Jan. 03, 2014	Dec. 28, 2012
Restricted cash	$ 86	$ 68
Accounts and contracts receivable	109	100
Vacation ownership notes receivable	970	1,056
Accrued liabilities	185	181
Debt	$ 678	$ 678
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	35,637,765	35,026,533
Treasury stock, at cost	505,023	0
Variable Interest Entity
Restricted cash	$ 34	$ 31
Accounts and contracts receivable	5	5
Vacation ownership notes receivable	719	727
Accrued liabilities	1	1
Debt	$ 674	$ 674

Consolidated Statements of Cash Flows - USD ($)
$ in Millions

12 Months Ended

Jan. 03, 2014

Dec. 28, 2012

Dec. 30, 2011

OPERATING ACTIVITIES

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

$ 80

^[1]

$ 7

^[2]

$ (172)

Depreciation

Amortization of debt issuance costs

Gain on disposal of property and equipment, net

Share-based compensation

(1)

(8)

(2)

Deferred income taxes

(47)

(63)

Equity method income

(1)

Impairment charges

^[3]

324

Impairment charges (reversals) on equity investment

(2)

(4)

Net change in assets and liabilities:

Accounts and contracts receivable

(8)

(3)

Notes receivable originations

(260)

(262)

(256)

Notes receivable collections

310

311

322

Accounts payable, advance deposits and accrued liabilities

110

Other assets

(7)

(25)

(16)

Liability for Marriott Rewards customer loyalty program

(45)

(64)

Deferred revenue

(13)

(28)

Payroll and benefit liabilities

(25)

Deferred compensation liability

(8)

(2)

Net cash provided by operating activities

(3)

(5)

Other, net

162

163

321

INVESTING ACTIVITIES

Capital expenditures for property and equipment (excluding inventory)

(22)

(17)

(15)

Note collections

(Increase) decrease in restricted cash

(17)

(15)

Dispositions

Net cash (used in) provided by investing activities

(36)

FINANCING ACTIVITIES

Borrowings from securitization transactions

361

238

125

Repayment of debt related to securitization transactions

(361)

(411)

(295)

Borrowings on Revolving Corporate Credit Facility

Repayments on Revolving Corporate Credit Facility

(25)

(15)

(1)

Debt issuance costs

(5)

(7)

(10)

Repayment of third party debt

(2)

Purchase of treasury stock

(26)

Proceeds from stock option exercises

Excess tax benefits from share-based compensation

Payment of withholding taxes on vesting of restricted stock units

(5)

(4)

Net distribution to Marriott International

(64)

Net cash used in financing activities

(29)

(172)

(246)

Effect of changes in exchange rates on cash and cash equivalents

(1)

INCREASE (DECREASE) IN CASH AND EQUIVALENTS

(7)

CASH AND CASH EQUIVALENTS, beginning of year

103

110

CASH AND CASH EQUIVALENTS, end of year

$ 200

103

110

SUPPLEMENTAL DISCLOSURES OF NON-CASH FINANCING ACTIVITIES

Non-cash assumption of other debt

Non-cash settlement of transactions with Marriott International through equity

478

Equity distribution payable to Marriott International

(23)

Increase in Deferred tax liabilities distributed to Marriott Vacations Worldwide at Spin-Off

SUPPLEMENTAL DISCLOSURES OF NON-CASH FINANCING ACTIVITIES

Non-cash reduction of Additional paid-in capital

(16)

Receivable from Former Parent

SUPPLEMENTAL DISCLOSURES OF NON-CASH FINANCING ACTIVITIES

Non-cash reduction of Additional paid-in capital

$ (5)

Mandatorily Redeemable Preferred Stock

SUPPLEMENTAL DISCLOSURES OF NON-CASH FINANCING ACTIVITIES

Issuance stock

Common Stock

SUPPLEMENTAL DISCLOSURES OF NON-CASH FINANCING ACTIVITIES

Issuance stock

$ 1

[1]	The computations of diluted earnings per share exclude approximately 229,000 shares of common stock, the maximum number of shares issuable as of January 3, 2014 upon the vesting of certain performance-based awards, because the performance conditions required for such shares to vest were not achieved by the end of the reporting period.
[2]	The computations of diluted earnings per share exclude approximately 157,000 shares of common stock, the maximum number of shares issuable as of December 28, 2012 upon the vesting of certain performance-based awards, because the performance conditions required for such shares to vest were not achieved by the end of the reporting period.
[3]	The 2013 impairment charge related to a leased golf course in our Europe segment.

Consolidated Statements Of Shareholders' Equity - USD ($)
$ in Millions

Total

Common Stock

Treasury Stock

Divisional Equity

Additional Paid-In Capital

Accumulated Other Comprehensive Income (Loss)

Retained (Deficit) Earnings

Balance at Dec. 31, 2010

$ 1,895

$ 1,876

$ 28

$ (9)

(172)

(176)

Issuance of common stock (in shares)

(9)

34,000,000

Issuance of common stock

$ 1

Adjustment to / reclassification of Parent Company investment to Additional paid-in capital

^[1]

(1,113)

1,113

Net distribution to Marriott International

(587)

$ (587)

Ending Balance (in shares) at Dec. 30, 2011

34,000,000

Ending Balance at Dec. 30, 2011

1,131

1,117

(5)

^[2]

Adjustment to / reclassification of Parent Company investment to Additional paid-in capital

1,000,000

^[3]

$ (21)

(21)

Ending Balance (in shares) at Dec. 28, 2012

35,026,533

35,000,000

Ending Balance at Dec. 28, 2012

$ 1,139

1,116

^[4]

Repurchase of common stock (in shares)

1,000,000

$ 14

(505,023)

(1,000,000)

Repurchase of common stock

$ (26)

Ending Balance (in shares) at Jan. 03, 2014

35,132,742

35,000,000

Ending Balance at Jan. 03, 2014

$ 1,209

$ (26)

$ 1,130

$ 23

$ 82

[1]	Upon the effective date of the Spin-Off, Marriott Vacations Worldwide's Divisional equity was reclassified and allocated between Common stock and Additional paid-in capital based on the number of shares of Marriott Vacations Worldwide common stock issued and outstanding.
[2]	The computations of diluted earnings per share exclude approximately 157,000 shares of common stock, the maximum number of shares issuable as of December 28, 2012 upon the vesting of certain performance-based awards, because the performance conditions required for such shares to vest were not achieved by the end of the reporting period.
[3]	Primarily consists of an adjustment to Deferred tax liabilities for changes in the valuation of Marriott Vacations Worldwide at the time of the Spin-Off, an adjustment to a receivable from Marriott International and other adjustments to the Deferred tax liabilities at the time of Spin-Off.
[4]	The computations of diluted earnings per share exclude approximately 229,000 shares of common stock, the maximum number of shares issuable as of January 3, 2014 upon the vesting of certain performance-based awards, because the performance conditions required for such shares to vest were not achieved by the end of the reporting period.

Summary of Significant Accounting Policies

12 Months Ended

Jan. 03, 2014

Accounting Policies [Abstract]

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 Hotel Company”), a subsidiary of Marriott International, Inc. (“Marriott International”), generally provides on-site management for Ritz-Carlton branded properties.

Our business is grouped into three reportable segments: North America, Europe and Asia Pacific. As of January 3, 2014, we operated 62 properties in the United States and nine 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 November 21, 2011, the spin-off of Marriott Vacations Worldwide from Marriott International (the “Spin-Off”) was completed pursuant to a Separation and Distribution Agreement (the “Separation and Distribution Agreement”) between Marriott Vacations Worldwide and Marriott International. Marriott Vacations Worldwide became an independent public company as a result of the distribution pursuant to the Spin-Off of 100 percent of the outstanding shares of Marriott Vacations Worldwide common stock to the shareholders of 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 shareholders 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.

Principles of Consolidation and Basis of Presentation

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

Our fiscal year ends on the Friday nearest to December 31. The fiscal years in the following table included 52 weeks, except for 2013, which included 53 weeks. Unless otherwise specified, each reference to a particular year in these financial statements means the fiscal year ended on the date shown in the following table, rather than the corresponding calendar year:


Fiscal Year	Fiscal Year-End Date
2013		January 3, 2014
2012		December 28, 2012
2011		December 30, 2011

We refer throughout to (i) our Consolidated Financial Statements as our “Financial Statements,” (ii) our Consolidated Statements of Operations as our “Statements of Operations,” (iii) our Consolidated Balance Sheets as our “Balance Sheets” and (iv) our Consolidated Statements of Cash Flows as our “Cash Flows.” In addition, references throughout to numbered “Footnotes” refer to the numbered Notes in these Notes to Condensed Consolidated Financial Statements, unless otherwise noted.

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 $600 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.

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 continued to be provided by Marriott International under Transition Services Agreements (“TSAs”). As of the end of 2013, we have ceased using most of these services. 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 between us and Marriott International 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.

Prior to the Spin-Off, Marriott International allocated a portion of expenses associated with its self-insurance 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 customer loyalty program liabilities, self-insured medical plan reserves, equity-based compensation, income taxes, loss contingencies and exit and disposal activities reserves. Actual amounts may differ from these estimated amounts.

We have reclassified certain prior year amounts to conform to our 2013 presentation, including establishing the consumer financing interest expense line on the Statements of Operations. Consumer financing interest expense represents interest expense associated with the debt from our $250 million non-recourse warehouse credit facility (the “Warehouse Credit Facility”) and from the securitization of our vacation ownership notes receivable in the asset-backed securities (“ABS”) market. We distinguish consumer financing interest expense from all other interest expense because the debt associated with the consumer financing interest expense is secured by vacation ownership notes receivable that have been sold to bankruptcy remote special purpose entities and is generally non-recourse to us. See Footnote No. 15, “Variable Interest Entities” for further discussion of these facilities.

Restatement of Prior Financial Statements

In 2013, during the course of an internal review of certain sales documentation processes related to the sale of certain vacation ownership interests in properties associated with our Europe segment, we determined that the documentation we provided for certain sales of vacation ownership products was not strictly compliant. As a result, in accordance with applicable European regulation, the period of time during which purchasers of such interests may rescind their purchases was extended. We record revenues from the sale of vacation ownership products once the rescission period has ended. Originally, we recorded revenues from these sales of vacation ownership products based on the rescission periods in effect assuming compliant documentation had been provided to the purchasers rather than the extended periods. As a result, we recognized revenue in incorrect periods between fiscal years 2010 and 2013 and misstated revenues in our previously filed consolidated financial statements.

The documentation issue described above was limited to sales documentation provided to purchasers of certain interests in properties associated with our Europe segment. We took corrective measures and, as a result, compliant documentation is being provided to purchasers. In addition, we provided compliant documentation to purchasers for whom the extended rescission period had not yet expired. The cumulative impact of these items through December 28, 2012 was a reduction in reported income before income taxes of $12 million. However, as compliant documentation was subsequently provided as part of our corrective measures, the extended rescission period for most of the purchases at issue ended during the second quarter of 2013. As of January 3, 2014, sales having a net pre-tax impact of $1 million had been rescinded. As a result, approximately $11 million of the cumulative impact of these items is reflected as an increase in income before income taxes for the year ended January 3, 2014.

The consolidated restated financial statements include certain other corrections related to the timing of recording adjustments to previously reported deferred tax balances. Certain deferred tax assets were determined to not be realizable in future years and thus were eliminated, albeit in the incorrect fiscal year for the years ended December 28, 2012, December 30, 2011 and December 31, 2010. The need for these corrections was identified while we were developing internal processes relating to deferred taxes after we became a stand-alone public company. In addition to the adjustments required as a result of the errors described above, the restated consolidated financial statements include certain previously unrecorded immaterial adjustments to our financial statements for fiscal years 2010 and 2011 relating to cost reimbursements, which previously were recorded on a net basis.

The adjustments necessary to correct all of these errors have no impact on previously reported cash flows from operations and do not have a material impact on our balance sheet as of any date. In accordance with applicable accounting guidance, an adjustment to the financial statements for each individual period presented is required to reflect the correction of the period-specific effects of the errors described above, if material. Based on our evaluation of relevant quantitative and qualitative factors, we determined the identified misstatements are not material to our individual prior period consolidated financial statements; however, the cumulative correction of the prior period errors would be material to our current year consolidated financial statements. Consequently, we have restated the Statements of Operations for the years ended December 28, 2012 and December 30, 2011. We have restated the accompanying Balance Sheet as of December 28, 2012. We have also restated the opening January 1, 2011 balances presented in our Consolidated Statements of Shareholders’ Equity from amounts previously reported, to correct the prior period misstatements of approximately $9 million that have been presented as a reduction to retained earnings.

The cumulative impact of these misstatements on our Cash Flows for the years ended December 28, 2012 and December 30, 2011 is inconsequential as the impact on individual line items within operating activities is not material and has no impact on net cash provided by (used in) operating, investing or financing activities. However, we have restated these Cash Flows to reflect changes to individual line items within operating activities.

The impact of these adjustments on the financial statements is detailed in the tables below.


	As of December 28, 2012
*($ in millions)*	As Previously Reported		Adjustment		As Restated
CONSOLIDATED BALANCE SHEETS
Inventory	$	881	$	7	$	888
Other	$	135	$	2	$	137
TOTAL ASSETS	$	2,604	$	9	$	2,613
Advance deposits	$	42	$	22	$	64
Deferred taxes	$	43	$	(1)	$	42
TOTAL LIABILITIES	$	1,453	$	21	$	1,474
Retained earnings (deficit)	$	14	$	(12)	$	2
TOTAL EQUITY	$	1,151	$	(12)	$	1,139
TOTAL LIABILITIES AND EQUITY	$	2,604	$	9	$	2,613


	For the Year Ended December 28, 2012
*($ in millions, except per share data)*	As Previously Reported⁽¹⁾		Adjustment		As Restated
CONSOLIDATED STATEMENTS OF OPERATIONS
Sale of vacation ownership products	$	627	$	(9)	$	618
TOTAL REVENUES	$	1,648	$	(9)	$	1,639
Cost of vacation ownership products	$	205	$	(2)	$	203
Marketing and sales	$	330	$	(1)	$	329
TOTAL EXPENSES	$	1,606	$	(3)	$	1,603
INCOME BEFORE INCOME TAXES	$	37	$	(6)	$	31
Provision for income taxes	$	(21)	$	(3)	$	(24)
NET INCOME	$	16	$	(9)	$	7
Basic earnings (loss) per share	$	0.46	$	(0.27)	$	0.19
Diluted earnings (loss) per share	$	0.44	$	(0.26)	$	0.18

⁽¹⁾	As previously reported amounts include interest expense amounts that have been reclassified as consumer financing interest expense to conform to our 2013 presentation.


	For the Year Ended December 30, 2011
*($ in millions, except per share data)*	As Previously Reported		Adjustment		As Restated
CONSOLIDATED STATEMENTS OF OPERATIONS
Sale of vacation ownership products	$	634	$	(7)	$	627
Cost reimbursements	$	331	$	18	$	349
TOTAL REVENUES	$	1,613	$	11	$	1,624
Cost of vacation ownership products	$	242	$	(3)	$	239
Marketing and sales	$	342	$	(1)	$	341
Cost reimbursements	$	331	$	18	$	349
TOTAL EXPENSES	$	1,833	$	14	$	1,847
LOSS BEFORE INCOME TAXES	$	(214)	$	(3)	$	(217)
Benefit for income taxes	$	36	$	9	$	45
NET LOSS	$	(178)	$	6	$	(172)
Basic (loss) earnings per share	$	(5.29)	$	0.17	$	(5.12)
Diluted (loss) earnings per share	$	(5.29)	$	0.17	$	(5.12)

Revenue Recognition

Sale of Vacation Ownership Products

We market and sell real estate and in substance real estate in our three reportable segments. Real estate and in substance real estate include deeded vacation ownership products, deeded beneficial interests, rights to use real estate, and other interests in trusts that solely hold real estate and deeded whole ownership units in residential buildings. Within the North America segment, we also market and sell residential units at certain properties on a limited basis.

Vacation ownership products may be sold for cash or we may provide financing. We are not providing financing on sales of whole ownership products. Except for revenue from the sale of residential stand-alone structures, which we recognize upon transfer of title to a third party, we recognize revenue when all of the following exist or are true: the customer has executed a binding sales contract, the statutory rescission period has expired (after which time the purchasers are not entitled to a refund except for non-delivery by us), we have deemed the receivable collectible and the remainder of our obligations are substantially completed. In addition, before we recognize any revenues, the purchaser must have met the initial investment criteria and, as applicable, the continuing investment criteria. A purchaser has met the initial investment criteria when we receive a minimum down payment. In accordance with the guidance for accounting for real estate time-sharing transactions, we must also take into consideration the fair value of certain incentives provided to the purchaser when assessing the adequacy of the purchaser’s initial investment. In those cases where we provide financing to the purchaser, the purchaser must be obligated to remit monthly payments under financing contracts that represent the purchaser’s continuing investment.

Resort Management and Other Services Revenues

Resort management and other services revenues consist primarily of ancillary revenues and management fees. Ancillary revenues consist of goods and services that are sold or provided by us at restaurants, golf courses and other retail and service outlets located at developed resorts. We recognize ancillary revenue when goods have been provided and/or services have been rendered.

We provide day-to-day-management services, including housekeeping services, operation of a reservation system, maintenance and certain accounting and administrative services for property owners’ associations. We receive compensation for such management services which is generally based on either a percentage of total costs to operate such resorts or a fixed fee arrangement. We recognize revenues when earned in accordance with the terms of the contract and record them as a component of Resort management and other services revenues on our Statements of Operations. Management fee revenues were $70 million, $67 million and $63 million during 2013, 2012 and 2011, respectively.

Resort management and other services revenues include additional fees for services we provide to our property owners’ associations, as well as certain annual and transaction based fees we charge to owners and other third parties for services. We recognize fee revenues when services have been rendered. Fee revenues included in Resort management and other services revenues were $27 million in 2013, $24 million in 2012 and $17 million in 2011, as reflected on our Statements of Operations.

Financing Revenues

We offer consumer financing as an option to qualifying customers purchasing vacation ownership products, which is typically collateralized by the underlying vacation ownership products. We recognize interest income on an accrual basis. The contractual terms of the financing agreements require that the contractual level of annual principal payments be sufficient to amortize the loan over a customary period for the vacation ownership product being financed, which is generally ten years. Generally, payments commence under the financing contracts 30 to 60 days after closing. We record an estimate of uncollectible amounts at the time of the sale with a charge to the provision for loan losses, which we classify as a reduction of Sale of vacation ownership products on our Statements of Operations. Revisions to estimates of uncollectible amounts also impact the provision for loan losses and can increase or decrease revenue. We earn interest income from the financing arrangements on the principal balance outstanding over the life of the arrangement and record that interest income in Financing revenues on our Statements of Operations.

Financing revenues include certain annual and transaction based fees we charge to owners and other third parties for services. We recognize fee revenues when services have been rendered. Fee revenues included in Financing revenues were $6 million in 2013, $6 million in 2012 and $7 million in 2011, as reflected on our Statements of Operations.

Rental Revenues

We record rental revenues when occupancy has occurred or, in the case of unused prepaid rentals, upon forfeiture.

Cost Reimbursements

Cost reimbursements include direct and indirect costs that property owners’ associations and joint ventures reimburse to us. In accordance with the accounting guidance for gross versus net presentation, we record these revenues on a gross basis. These costs primarily consist of payroll and payroll-related costs for management of the property owners’ associations and other services we provide where we are the employer. We recognize cost reimbursements when we incur the related reimbursable costs. Cost reimbursements consist of actual expenses with no added margin.

Multiple-Element Transactions

From time to time, we enter into transactions involving multiple elements. We analyze contracts with multiple elements under the accounting guidance for revenue recognition in multiple-element arrangements. If we enter into transactions for the sale of multiple products or services, we evaluate whether the delivered elements have value to the customer on a stand-alone basis, and whether there is objective and reliable evidence of fair value for each undelivered element in the transaction. If these criteria are met, then we account for each deliverable in the transaction separately. We generally recognize revenue for undelivered elements on a straight-line basis over the contractual performance period for time-based elements or upon delivery to the customer. If we are unable to determine the fair value of one or more undelivered elements in the transaction, we recognize the revenue on a straight-line basis over the period in which the last deliverable is provided to the customer.

Multiple-element transactions require judgment to determine the selling price or fair value of the different elements. The judgments impact the amount of revenue and expenses recognized over the term of the contract, as well as the period in which they are recognized.

Inventory

Our inventory consists primarily of completed vacation ownership products, vacation ownership products under construction and land held for future vacation ownership product development. We carry our inventory at the lower of (1) cost, including costs of improvements and amenities incurred subsequent to acquisition, capitalized interest and real estate taxes plus other costs incurred during construction, or (2) estimated fair value, less costs to sell, which can result in impairment charges and/or recoveries of previous impairments.

We account for vacation ownership inventory and cost of vacation ownership products in accordance with the guidance for accounting for real estate time-sharing transactions, which define a specific application of the relative sales value method for reducing vacation ownership inventory and recording cost of sales as described in our policy for revenue recognition for vacation ownership products. Also, pursuant to the guidance for accounting for real estate time-sharing transactions, we do not reduce inventory for cost of vacation ownership products related to anticipated credit losses (accordingly, no adjustment is made when inventory is reacquired upon default of the related receivable). These standards provide for changes in estimates within the relative sales value calculations to be accounted for as real estate inventory true-ups, which we refer to as product cost true-ups, and are recorded in Cost of vacation ownership product expenses on the Statements of Operations to retrospectively adjust the margin previously recorded subject to those estimates. For 2013, 2012 and 2011, product cost true-ups relating to vacation ownership products increased carrying values of inventory by $18 million, $30 million and $2 million, respectively.

For residential real estate projects, we allocate costs to individual residences in the projects based on the relative estimated sales value of each residence in accordance with ASC 970, “Real Estate—General,” which defines the accounting for costs of real estate projects. Under this method, we reduce the allocated cost of a unit from inventory and recognize that cost as cost of sales when we recognize the related sale. Changes in estimates within the relative sales value calculations for residential products (similar to condominiums) are accounted for as prospective adjustments to cost of vacation ownership products.

Capitalization of Costs

We capitalize interest and certain salaries and related costs incurred in connection with the following: (1) development and construction of sales centers; (2) internally developed software; and (3) development and construction projects for our real estate inventory. We capitalize costs clearly associated with the acquisition, development and construction of a real estate project when it is probable that we will acquire a property. We capitalize salary and related costs only to the extent they directly relate to the project. We capitalize interest expense, taxes and insurance costs when activities that are necessary to get the property ready for its intended use are underway. We cease capitalization of costs during prolonged gaps in development when substantially all activities are suspended or when projects are considered substantially complete. Capitalized salaries and related costs totaled $7 million, $8 million and $11 million for 2013, 2012 and 2011, respectively.

Defined Contribution Plan

Subsequent to the Spin-Off, we established a defined contribution plan that we administer and maintain for the benefit of all employees meeting certain eligibility requirements who elect to participate in the plan. Contributions are determined based on a specified percentage of salary deferrals by participating employees. Our employees participated in Marriott International’s comparable plan prior to the Spin-Off. We recognized compensation expense (net of cost reimbursements from property owners’ associations) for our participating employees totaling $6 million in 2013, $5 million in 2012 and $6 million in 2011. Of the $6 million compensation expense we recognized in 2011, $5 million was recognized prior to the Spin-Off and was associated with the Marriott International defined contribution plan and $1 million was recognized subsequent to the Spin-Off and was associated with our newly established defined contribution plan.

Deferred Compensation Plan

Prior to the Spin-Off, certain of our senior management had the opportunity to participate in the Marriott International, Inc. Executive Deferred Compensation Plan (the “Marriott International EDC”), which Marriott International maintains and administers. Under the Marriott International EDC, participating employees may defer payment and income taxation of a portion of their salary and bonus. It also gives participants the opportunity for long-term capital appreciation by crediting their accounts with notional earnings (at a fixed annual rate of return of 5.4 percent for both 2013 and 2012). Additional discretionary contributions to the participant’s accounts under the Marriott International EDC may be made based on subjective factors such as individual performance, key contributions and retention needs. No additional discretionary contributions were made for our employees in 2013 and 2012, and discretionary contributions of less than $1 million were made in 2011. Subsequent to the Spin-Off, we remain liable to reimburse Marriott International for distributions for participants that were employees of Marriott Vacations Worldwide at the time of the Spin-Off including earnings thereon.

Property and Equipment

Marriott Rewards Customer Loyalty Program

We participate in the Marriott Rewards customer loyalty program and we offer Marriott Rewards Points, or “points,” which we purchase from Marriott International, as incentives to purchase vacation ownership products and/or through exchange and other activities. Marriott International maintains and administers this program. The associated expense is classified on the Statements of Operations based on the source of the expense and related revenue stream. For Marriott Rewards Points issued prior to 2012, we pay Marriott International for Marriott Rewards Points when the points are redeemed by program members. Our liability for Marriott Rewards Points issued prior to 2012 represents the net present value of future cash outlays that we are obligated to pay Marriott International based on actual point redemptions. We base the carrying value of this liability on a statistical model that projects the dollar value and timing of future point redemptions. The most significant estimates involve the future cost of redeemed points, the breakage for points that will never be redeemed, and the pace at which points are redeemed. We base our estimates for these items on our historical experience, current trends and other considerations. Actual results could differ from our projections so the actual discounted future cash outlays associated with our Marriott Rewards customer loyalty program liability could differ from the amounts currently recorded.

Our liability for Marriott Rewards Points issued prior to 2012 represents the amount that we are obligated to pay to Marriott International based on future redemptions. These future redemptions consist of actual redemptions incurred through 2015, with a final lump sum payment in 2016. The lump sum payment represents an estimate of the present value of anticipated future redemptions of any remaining Marriott Rewards Points issued in connection with our business prior to 2012. Our liability for these Marriott Rewards Points is included in Liability for Marriott Rewards customer loyalty program on the Balance Sheets. See Footnote No. 12, “Other Liabilities” for more information.

For periods subsequent to 2011, we generally pay Marriott International for Marriott Rewards Points within 30 days of issuance. For Marriott Rewards Points issued for exchanges as an alternative usage option for owners who elect to exchange their inventory in the calendar fourth quarter, payment is due within 120 days of year-end. The rates we pay for the Marriott Rewards Points are based upon historical redemption costs with no future adjustment for actual costs incurred by Marriott International upon fulfillment. Our liability for these Marriott Rewards Points is included in Accrued liabilities on the Balance Sheets.

Guarantees

We record a liability for the fair value of a guarantee on the date we issue or modify the guarantee. The offsetting entry depends on the circumstances in which the guarantee was issued. Funding under the guarantee reduces the recorded liability. On a quarterly basis, we evaluate all material estimated liabilities based on the operating results and the terms of the guarantee. If we conclude that it is probable that we will be required to fund a greater amount than previously estimated, we will record a loss.

Cash and Cash Equivalents

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

Restricted Cash

Restricted cash primarily consists of cash held in a reserve account related to vacation ownership notes receivable securitizations, cash collected for maintenance fees to be remitted to property owners’ associations, and deposits received, primarily associated with vacation ownership products and residential sales that are held in escrow until the associated contract has closed or the period in which it can be rescinded has passed, depending on legal requirements.

Accounts and Contracts Receivable

Accounts and contracts receivable are presented net of allowances of $1 million and $2 million at the end of 2013 and 2012, respectively.

Loan Loss Reserves

Vacation Ownership Notes Receivable

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 collectibility 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.

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 past due 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 7.13 percent and 7.42 percent as of January 3, 2014 and December 28, 2012, respectively. A 0.5 percentage point increase in the estimated default rate would have resulted in an increase in our allowance for loan losses of $5 million and $6 million as of January 3, 2014 and December 28, 2012, respectively.

For additional information on our vacation ownership notes receivable, including information on the related reserves, see Footnote No. 3, “Vacation Ownership Notes Receivable.”

Costs Incurred to Sell Vacation Ownership Products

We charge the majority of marketing and sales costs we incur to sell vacation ownership products to expense when incurred. Deferred marketing and selling expenses, which are direct marketing and selling costs related either to an unclosed contract or a contract for which 100 percent of revenue has not yet been recognized, were $4 million at year-end 2013 and $6 million at year-end 2012 and are included on the accompanying Balance Sheets in the Other caption within Assets.

Valuation of Property and Equipment

Property and equipment includes our sales centers, golf courses, information technology and other assets used in the normal course of business, as well as undeveloped and partially developed land parcels that are not part of an approved development plan and do not meet the criteria to be classified as held for sale. We test long-lived asset groups for recoverability when changes in circumstances indicate the carrying value may not be recoverable, for example, when there are material adverse changes in projected revenues or expenses, significant underperformance relative to historical or projected operating results, or significant negative industry or economic trends. We evaluate recoverability of an asset group by comparing its carrying value to the future net undiscounted cash flows that we expect will be generated by the asset group. If the comparison indicates that the carrying value of an asset group is not recoverable, we recognize an impairment loss for the excess of carrying value over the estimated fair value. When we recognize an impairment loss for assets to be held and used, we depreciate the adjusted carrying amount of those assets over their remaining useful life. We also perform a test for recoverability when management has committed to a plan to sell or otherwise dispose of an asset group and we expect the plan will be completed within a year.

For information on impairment losses that we recorded associated with long-lived assets, see Footnote No. 16, “Impairment Charges.”

Investments

We consolidate entities that we control. We account for investments in joint ventures which are not consolidated variable interest entities using the equity method of accounting when we exercise significant influence over the venture. If we do not exercise significant influence, we account for the investment using the cost method of accounting. We account for investments in limited partnerships and limited liability companies using the equity method of accounting when we own more than a minimal investment. Our ownership interest in these equity method investments generally varies from 34 percent to 50 percent.

Valuation of Investments in Ventures

We evaluate an investment in a venture for impairment when circumstances indicate that the carrying value may not be recoverable due to loan defaults, significant under-performance relative to historical or projected performance, significant negative industry or economic trends, or otherwise.

We impair investments we have accounted for using the equity and cost methods of accounting when we determine that the venture has had an “other than temporary” decline in its estimated fair value as compared to its carrying value. Additionally, a change in business plans or strategies of a venture could cause us to evaluate the recoverability for the individual long-lived assets in the venture and possibly the venture itself.

We calculate the estimated fair value of an investment in a venture using the income approach. We use internally developed discounted cash flow models that include the following assumptions, among others: projections of revenues and expenses and related cash flows based on assumed long-term growth rates and demand trends; expected future investments; and estimated discount rates. We base these assumptions on our historical data and experience, third-party appraisals, industry projections, micro and macro general economic condition projections, and our expectations.

Fair Value Measurements

We have few financial instruments that we must measure at fair value on a recurring basis. See Footnote No. 4, “Financial Instruments,” for further information. We also apply the provisions of fair value measurement to various non-recurring measurements for our financial and non-financial assets and liabilities.

The applicable accounting standards define fair value as the price that would be received upon selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (an exit price). We measure fair value of our assets and liabilities using inputs from the following three levels of the fair value hierarchy:

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

Level 2 inputs include quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability (i.e., interest rates, yield curves, etc.), and inputs that are derived principally from or corroborated by observable market data by correlation or other means (market corroborated inputs).

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

Derivative Instruments

From time to time, we may use derivative instruments to reduce market risk due to changes in interest rates and currency exchange rates, including interest rate derivatives that we may be required to enter into as a condition of the Warehouse Credit Facility. As of January 3, 2014, we were not party to any material derivative instruments or hedges.

The designation of a derivative instrument as a hedge and its ability to meet the hedge accounting criteria determines how the change in fair value of the derivative instrument is recorded on our Financial Statements. A derivative qualifies for hedge accounting if, at inception, we expect the derivative to be highly effective in offsetting the underlying hedged cash flows or fair value and we fulfill the hedge documentation standards at the time we enter into the derivative contract. We designate a hedge as a cash flow hedge, fair value hedge, or a net investment in non-U.S. operations hedge based on the exposure we are hedging. The asset or liability value of the derivative will change in tandem with its fair value. For the effective portion of qualifying hedges, we record changes in fair value in other comprehensive income (“OCI”). We release the derivative’s gain or loss from OCI to match the timing of the underlying hedged items’ effect on earnings. As a matter of policy, we only enter into hedging transactions that we believe will be highly effective at offsetting the underlying risk and do not use derivatives for trading or speculative purposes.

Non-U.S. Operations

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

Legal Contingencies

We are subject to various legal proceedings and claims in the normal course of business, the outcomes of which are subject to significant uncertainty. We record an accrual for legal contingencies when we determine that it is probable that a liability has been incurred and the amount of the loss can be reasonably estimated. In making such determinations we evaluate, among other things, the degree of probability of an unfavorable outcome and, when it is probable that a liability has been incurred, our ability to make a reasonable estimate of the loss. We review these accruals each reporting period and make revisions based on changes in facts and circumstances.

Share-Based Compensation Costs

In conjunction with the Spin-Off, we established the Marriott Vacations Worldwide Corporation Stock and Cash Incentive Plan (“Marriott Vacations Worldwide Stock Plan”) in order to compensate our employees and directors by issuing equity awards such as stock options, stock appreciation rights (“SARs”) and restricted stock units (“RSUs”) to them. Prior to the Spin-Off, certain of our employees received equity awards under the Marriott International, Inc. Stock and Cash Incentive Plan (“Marriott International Stock Plan”). For the fiscal years ended 2013 and 2012 and for the period from November 21, 2011 through December 30, 2011, our Statement of Operations includes expenses related to our employees’ participation in both the Marriott Vacations Worldwide Stock Plan and the Marriott International Stock Plan. For the period from January 1, 2011 through November 20, 2011, our Statements of Operations include expenses related to our employees’ participation in the Marriott International Stock Plan.

We follow the provisions of ASC 718, “Compensation—Stock Compensation” (“ASC 718”), which requires that a company measure the expense of employee services received in exchange for an award of equity instruments based on the grant-date fair value of the award. Generally, share-based awards granted to our employees vest ratably over a four-year period, and we recognize the expense associated with these awards on our Statements of Operations on a straight-line basis over the period during which an employee is required to provide service in exchange for the award. We measure the amount of compensation expense for share-based awards based on the fair value of the awards as of the date that the share-based awards are granted and adjust that expense to the estimated number of awards that we expect will vest. We generally determine the fair value of stock options and SARs using the Black-Scholes option valuation model which incorporates assumptions about expected volatility, risk free interest rate, dividend yield and expected term. The fair value of RSUs represents the number of awards granted multiplied by the average of the high and low market price of our common stock on the date the awards are granted. For awards granted after 2005, we recognize compensation cost for share-based awards ratably over the vesting period. We will issue shares from authorized shares upon the exercise of stock options or SARs held by our employees and directors. See Footnote No. 14, “Share-Based Compensation,” for more information.

Advertising Costs

We expensed advertising costs as incurred of $2 million, $2 million and $3 million in 2013, 2012 and 2011, respectively. These costs are included in the Marketing and sales expense caption on our Statements of Operations.

Income Taxes

Although for periods prior to the Spin-Off we did not file separate tax returns from Marriott International, we have calculated the income tax provision included in these Financial Statements based on a separate return methodology, as if the entities were separate taxpayers in the respective jurisdictions. As a result, our deferred tax balances and effective tax rate as a stand-alone entity will likely differ significantly from those recognized historically. Prior to the Spin-Off, our results of operations were included in the consolidated tax filings of other Marriott International entities within the respective entity’s tax jurisdiction. Commencing with periods subsequent to November 21, 2011, we file our own consolidated U.S. federal and state income tax returns and any required filings for non-U.S. jurisdictions based on the applicable tax year in each jurisdiction.

We account for income taxes under the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements. Under this method, deferred tax assets and liabilities are determined based on the differences between the financial statements and tax basis of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date.

Changes in existing tax laws and rates, their related interpretations, and the uncertainty generated by the current economic environment may affect the amounts of deferred tax liabilities or the valuations of deferred tax assets over time. Our accounting for deferred tax consequences represents management’s best estimate of future events that can be appropriately reflected in the accounting estimates.

We record net deferred tax assets to the extent we believe these assets will more likely than not be realized. In making such a determination, we consider all available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax-planning strategies, and results of recent operations. In the event we determine that we would be able to realize our deferred income tax assets in the future in excess of their net recorded amount, we would make an adjustment to the deferred tax asset valuation allowance, which impacts the provision for income taxes.

For tax positions we have taken, or expect to take, in a tax return we apply a more likely than not threshold, under which we must conclude a tax position is more likely than not to be sustained, assuming that the position will be examined by the appropriate taxing authority that has full knowledge of all relevant information, in order to continue to recognize the benefit. In determining our provision for income taxes, we use judgment, reflecting our estimates and assumptions, in applying the more likely than not threshold.

Prior to the Spin-Off, we did not maintain taxes payable to or from Marriott International and the tax balances outstanding at Spin-Off will be settled in accordance with the Tax Sharing and Indemnification Agreement that we entered into on November 17, 2011 with Marriott International. These deemed settlements are reflected as changes in Shareholder’s Equity.

For information about income taxes and deferred tax assets and liabilities, see Footnote No. 2, “Income Taxes.”

Earnings (Loss) Per Common Share

Basic earnings (loss) per common share is calculated by dividing the earnings available to common shareholders by the weighted average number of common shares outstanding for the 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 (loss) per common share by application of the treasury stock methods. For 2011, basic weighted average shares outstanding were computed using the number of shares of common stock outstanding immediately following the Spin-Off, as if such shares were outstanding for the entire period prior to the Spin-Off, plus the weighted average of such shares outstanding following the Spin-Off date through year-end 2011.

New Accounting Standards

Accounting Standards Update No. 2013-02 – “Comprehensive Income (Topic 220): Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income” (“ASU No. 2013-02”)

ASU No. 2013-02, which we adopted in the first quarter of 2013, amends existing guidance by requiring that additional information be disclosed about items reclassified (“reclassification adjustments”) out of accumulated other comprehensive income. The additional information includes a separate statement of the total change for each component of other comprehensive income (for example, unrealized gains or losses on available-for-sale securities or foreign currency items) and separate disclosure of both current-period other comprehensive income and reclassification adjustments. Entities are also required to present, either on the face of the income statement or in the notes to the financial statements, significant amounts reclassified out of accumulated other comprehensive income as separate line items of net income but only if the entire amount reclassified must be reclassified to net income in the same reporting period. For amounts that are not required to be reclassified in their entirety to net income, an entity must cross-reference to other disclosures that provide additional detail about those amounts. The adoption of this update did not have a material impact on our Financial Statements.

Income Taxes

12 Months Ended

Jan. 03, 2014

Income Tax Disclosure [Abstract]

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, we file 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) benefit from 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.

We entered into a Tax Sharing and Indemnification Agreement with Marriott International effective November 21, 2011 (as subsequently amended, 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 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. Based upon the completed valuations, we re-allocated basis within our consolidated subsidiaries and recorded a decrease to our Deferred tax liabilities of $8 million and a corresponding increase to Additional paid-in capital. Further, in 2012 we increased our Deferred tax liabilities by $12 million for adjustments to the Deferred tax liabilities at the time of Spin-Off with 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.

The income (loss) before provision (benefit) of income taxes by geographic region is as follows:


*($ in millions)*	2013		2012		2011
United States	$	125	$	44	$	(129)
Non-U.S. jurisdictions		6		(13)		(88)

	$	131	$	31	$	(217)

Our current tax provision does not reflect the benefits attributable to us for the exercise or vesting of employee share-based awards of $3 million in 2013, $3 million in 2012 and less than $1 million in 2011.

Our (provision for) benefit from income taxes consists of:


*($ in millions)*	2013		2012		2011
Current – U.S. Federal	$	(37)	$	(61)	$	(10)
– U.S. State		(5)		(9)		(1)
– Non-U.S.		(2)		(4)		(1)

		(44)		(74)		(12)

Deferred – U.S. Federal		(5)		43		55
– U.S. State		(1)		6		6
– Non-U.S.		(1)		1		(4)

		(7)		50		57

	$	(51)	$	(24)	$	45

The deferred tax assets and related valuation allowances in these Financial Statements have been determined on a separate return basis. The assessment of the valuation allowances requires considerable judgment on the part of management, with respect to benefits that could be realized from future taxable income, as well as other positive and negative factors. Valuation allowances are recorded against the deferred tax assets of certain foreign operations for which historical losses, restructuring and impairment charges have been incurred. The change in the valuation allowances established were $2 million in 2013, $2 million in 2012 and $13 million in 2011.

We have made no provision for U.S. income taxes or additional non-U.S. taxes on the cumulative unremitted earnings of non-U.S. subsidiaries ($70 million at January 3, 2014) because we consider these earnings to be permanently invested. These earnings could become subject to additional taxes if remitted as dividends, loaned to us or a U.S. affiliate or if we sold our interests in the affiliates. We cannot practically estimate the amount of additional taxes that might be payable on the unremitted earnings.

We conduct business in countries that grant “holidays” from income taxes for five to thirty year periods. These holidays expire through 2034. Without these tax “holidays,” we would have incurred the following aggregate additional income taxes: $2 million in 2013, $3 million in 2012 and $4 million in 2011.

We have joined in the Marriott International U.S. Federal tax consolidated filing for periods 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 related to the timeshare business for the tax years through the Spin-Off. 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 audits by other tax jurisdictions, the amount of our liability for unrecognized tax benefits could change as a result of these audits. Pursuant to the Tax Sharing and Indemnification Agreement, Marriott International is liable and shall pay the relevant tax authority for all taxes related to our taxable income prior to the Spin-Off. Our tax years subsequent to the Spin-Off are subject to examination by relevant tax authorities.

Our total unrecognized tax benefit balance that, if recognized, would impact our effective tax rate was less than $1 million at January 3, 2014, less than $1 million at December 28, 2012 and $2 million at December 30, 2011. Our unrecognized tax benefit reflects an increase of less than $1 million in 2013, a decrease of $2 million in 2012 and an increase of $1 million in 2011, representing U.S. activity in 2013 and primarily non-U.S. audit activity in 2012 and 2011.

The following table reconciles our unrecognized tax benefit balance for each year from the beginning of 2011 to the end of 2013:


*($ in millions)*	2013		2012		2011
Unrecognized tax benefit at beginning of year	$	—	$	2	$	1
Change attributable to tax positions taken during a prior period		—		—		1
Decrease attributable to settlements with taxing authorities		—		(2)		—

Unrecognized tax benefit at end of year	$	—	$	—	$	2

In accordance with our accounting policies, we recognize accrued interest and penalties related to our unrecognized tax benefits as a component of tax expense. Related interest expense and accrued interest expense each totaled less than $1 million in each of 2013, 2012 and 2011.

Deferred Income Taxes

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

Total deferred tax assets and liabilities at January 3, 2014 and December 28, 2012 were as follows:


*($ in millions)*	At Year-End 2013		At Year-End 2012
Deferred tax assets	$	153	$	135
Deferred tax liabilities		(213)		(177)

Net deferred tax liability	$	(60)	$	(42)

The tax effect of each type of temporary difference and carry-forward that gives rise to a significant portion of our deferred tax assets and liabilities at January 3, 2014 and December 28, 2012 were as follows:


*($ in millions)*	At Year-End 2013		At Year-End 2012
Inventory	$	(28)	$	(55)
Reserves		26		—
Deferred income		—		(1)
Property and equipment		(20)		(13)
Marriott Rewards customer loyalty program		15		10
Deferred sales of vacation ownership interests		(109)		(34)
Long lived intangible assets		35		38
Net operating loss carry-forwards		50		42
Other, net		28		26

Deferred tax (liability) asset		(3)		13
Less: Valuation allowance		(57)		(55)

Net deferred tax liability	$	(60)	$	(42)

At January 3, 2014, we had approximately $197 million of foreign net operating losses (excluding valuation allowances) some of which began expiring in 2013. However, a significant portion of these tax net operating losses have an indefinite carry forward period. We have no federal net operating losses and net operating losses of $1 million for state tax purposes.

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

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


	2013		2012		2011
U.S. statutory income tax rate expense (benefit)		35.00%		35.00%		(35.00)%
U.S. state income taxes, net of U.S. federal tax benefit		3.48		4.63		(2.30)
Permanent differences⁽¹⁾		0.24		10.73		0.17
Non-U.S. income⁽²⁾		0.97		7.26		(3.87)
Other items		(2.28)		5.41		14.44
Change in valuation allowance⁽³⁾		1.82		17.05		5.97

Effective rate expense (benefit)		39.23%		80.08%		(20.59)%

⁽¹⁾	For 2013, primarily attributed to interest on mandatorily redeemable preferred stock of a consolidated subsidiary for 2013. For 2012, primarily attributed to interest on mandatorily redeemable preferred stock of a consolidated subsidiary and foreign income subject to U.S. tax.

⁽²⁾	Primarily attributed to the difference between U.S. and foreign income tax rates, partially offset by the benefit of tax holidays in certain jurisdictions.

⁽³⁾	Primarily attributed to establishment of valuation allowances in foreign jurisdictions for losses that cannot be benefited in the U.S. income tax provision as discussed above.

Cash Taxes Paid

Cash taxes paid in 2013 and 2012 were $29 million and $68 million, respectively. Cash taxes paid in 2011 were included within changes in Shareholders’ Equity.

Vacation Ownership Notes Receivable

12 Months Ended

Jan. 03, 2014

Receivables [Abstract]

Vacation Ownership Notes Receivable

3. VACATION OWNERSHIP NOTES RECEIVABLE

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


*($ in millions)*	At Year-End 2013		At Year-End 2012
Vacation ownership notes receivable – securitized	$	719	$	727
Vacation ownership notes receivable – non-securitized
Eligible for securitization⁽¹⁾		73		127
Not eligible for securitization⁽¹⁾		178		202

Subtotal		251		329

Total vacation ownership notes receivable	$	970	$	1,056

⁽¹⁾	Refer to Footnote No. 4, “Financial Instruments,” for discussion of eligibility of our vacation ownership 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
2014	$	60	$	107	$	167
2015		34		108		142
2016		27		105		132
2017		22		96		118
2018		20		77		97
Thereafter		88		226		314

Balance at year-end 2013	$	251	$	719	$	970

Weighted average stated interest rate at year-end 2013		11.5%		12.9%		12.5%
Range of stated interest rates at year-end 2013		0.0% to 19.5%		4.9% to 18.7%		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)*	2013		2012		2011
Interest income associated with vacation ownership notes receivable – securitized	$	104	$	114	$	131
Interest income associated with vacation ownership notes receivable – non-securitized		31		31		30

Total interest income associated with vacation ownership notes receivable	$	135	$	145	$	161

The following table summarizes the activity related to our vacation ownership notes receivable reserve for 2013, 2012 and 2011:


*($ in millions)*	Non-Securitized Vacation Ownership Notes Receivable Reserve		Securitized Vacation Ownership Notes Receivable Reserve		Total
Balance at year-end 2010	$	129	$	89	$	218
Provision for loan losses		20		18		38
Securitizations		(14)		14		—
Clean-up calls⁽¹⁾		2		(2)		—
Write-offs		(85)		—		(85)
Defaulted vacation ownership notes receivable repurchase activity⁽²⁾		52		(52)		—

Balance at year-end 2011		104		67		171
Provision for loan losses		19		23		42
Securitizations		(21)		21		—
Clean-up calls⁽¹⁾		18		(18)		—
Write-offs		(66)		—		(66)
Defaulted vacation ownership notes receivable repurchase activity⁽²⁾		39		(39)		—

Balance at year-end 2012		93		54		147
Provision for loan losses		28		8		36
Securitizations		(31)		31		—
Clean-up calls⁽¹⁾		14		(14)		—
Write-offs		(49)		—		(49)
Defaulted vacation ownership notes receivable repurchase activity⁽²⁾		27		(27)		—

Balance at year-end 2013	$	82	$	52	$	134

⁽¹⁾	Refers to our voluntary repurchase of previously securitized non-defaulted vacation ownership notes receivable to retire outstanding vacation ownership 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 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. As noted in Footnote No. 1, “Summary of Significant Accounting Policies,” we recognize interest income on a cash basis for these vacation ownership notes receivable.


*($ in millions)*	Non-Securitized Vacation Ownership Notes Receivable		Securitized Vacation Ownership Notes Receivable		Total
Investment in notes receivable on non-accrual status at year-end 2013	$	69	$	8	$	77
Investment in notes receivable on non-accrual status at year-end 2012	$	73	$	11	$	84

The following table shows the aging of the recorded investment in principal, before reserves, in vacation ownership notes receivable as of January 3, 2014:


*($ in millions)*	Non-Securitized Vacation Ownership Notes Receivable		Securitized Vacation Ownership Notes Receivable		Total
31 – 90 days past due	$	12	$	22	$	34
91 – 150 days past due		7		8		15
Greater than 150 days past due		62		—		62

Total past due		81		30		111
Current		252		741		993

Total vacation ownership notes receivable	$	333	$	771	$	1,104

The following table shows the aging of the recorded investment in principal, before reserves, in vacation ownership notes receivable as of December 28, 2012:


($ in millions)	Non-Securitized Vacation Ownership Notes Receivable		Securitized Vacation Ownership Notes Receivable		Total
31 – 90 days past due	$	14	$	19	$	33
91 – 150 days past due		7		8		15
Greater than 150 days past due		66		3		69

Total past due		87		30		117
Current		335		751		1,086

Total vacation ownership notes receivable	$	422	$	781	$	1,203

Financial Instruments

12 Months Ended

Jan. 03, 2014

Investments All Other Investments [Abstract]

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


	At Year-End 2013				At Year-End 2012
*($ in millions)*	Carrying Amount		Fair Value⁽¹⁾		Carrying Amount		Fair Value⁽¹⁾
Vacation ownership notes receivable – securitized	$	719	$	865	$	727	$	895
Vacation ownership notes receivable – non-securitized		251		267		329		361

Total financial assets	$	970	$	1,132	$	1,056	$	1,256

Non-recourse debt associated with vacation ownership notes receivable securitizations	$	(674)	$	(695)	$	(674)	$	(711)
Other debt		(4)		(4)		(4)		(4)
Mandatorily redeemable preferred stock of consolidated subsidiary		(40)		(44)		(40)		(46)
Liability for Marriott Rewards customer loyalty program		(114)		(110)		(159)		(150)
Other liabilities		(6)		(6)		(1)		(1)

Total financial liabilities	$	(838)	$	(859)	$	(878)	$	(912)

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

See the “Fair Value Measurements” caption of Footnote No. 1, “Summary of Significant Accounting Policies” for additional information.

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, determine the fair value of the underlying vacation ownership notes receivable.

Due to factors that impact the general marketability of our non-securitized vacation ownership notes receivable, as well as current market conditions, we bifurcate our vacation ownership notes receivable at each balance sheet date into those eligible and not eligible for securitization using criteria applicable to current securitization transactions in the ABS market. Generally, vacation ownership notes receivable are considered not eligible for securitization if any of the following attributes are present: (1) payments are greater than 30 days past due; (2) the first payment has not been received; or (3) the collateral is located in Europe or Asia. In some cases eligibility may also be determined based on the credit score of the borrower, the remaining term of the loans and other similar factors that may reflect investor demand in a securitization transaction or the cost to effectively securitize the vacation ownership notes receivable. The following table shows the bifurcation of our non-securitized vacation ownership notes receivable into those eligible and not eligible for securitization based upon the aforementioned eligibility criteria:


	At Year-End 2013				At Year-End 2012
*($ in millions)*	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Vacation ownership notes receivable — eligible for securitization	$	73	$	89	$	127	$	159
Vacation ownership notes receivable — not eligible for securitization		178		178		202		202

Total vacation ownership notes receivable — non-securitized	$	251	$	267	$	329	$	361

We estimate the fair value of the 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 Vacation Ownership Notes Receivable

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

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 Customer Loyalty Program

We determine the carrying value of the future redemption obligation of our liability for the Marriott Rewards customer 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 number of Marriott Rewards Points that will eventually be redeemed and the “breakage” for points that will never be redeemed, as discussed in Footnote No. 12, “Other Liabilities.” 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 other structured payments. The carrying values of our financial instruments within Other liabilities approximate their fair values.

Acquisitions and Dispositions	12 Months Ended
Acquisitions and Dispositions	Jan. 03, 2014
Text Block [Abstract]
Acquisitions and Dispositions	5. ACQUISITIONS AND DISPOSITIONS 2013 Acquisitions and Dispositions In 2013, we acquired a parcel of land adjacent to one of our existing resorts in Phuket, Thailand for $2 million. In 2013, we completed the sale of a multi-family parcel in St. Thomas, U.S. Virgin Islands. Net cash proceeds from the sale totaled $2 million and we recorded a net gain of less than $1 million. We accounted for the sale under the full accrual method in accordance with the guidance on accounting for sales of real estate. 2012 Acquisitions and Dispositions In 2012, we paid into escrow the remaining $7 million of the $18 million purchase price for certain vacation ownership units and we completed the acquisition during 2013. We previously paid into escrow $11 million in conjunction with this transaction. In 2012, we completed the sale of the golf course, clubhouse and spa formerly known as The Ritz-Carlton Golf Club and Spa, Jupiter, which was classified within our North America segment, for $34 million, including $5 million of cash and the assumption by the purchaser of liabilities with a book value of $29 million. We accounted for the sale under the full accrual method and recorded a net gain of $8 million in Gains and other income on our Statements of Operations. 2011 Acquisitions and Dispositions In 2011, we completed a bulk sale of land and developed inventory, classified as inventory within our North America segment. Net cash proceeds from the sale totaled $17 million and we recorded a net gain of $2 million. We accounted for the sale under the full accrual method in accordance with the guidance on accounting for sales of real estate. We made no significant acquisitions in 2011.

Earnings Per Share

12 Months Ended

Jan. 03, 2014

Earnings Per Share [Abstract]

Earnings Per Share

6. EARNINGS PER SHARE

Basic earnings (loss) per common share is calculated by dividing net income (loss) attributable to common shareholders by the weighted average number of shares of common stock outstanding during the reporting period. Treasury stock is excluded from the weighted average number of shares of common stock outstanding. Diluted earnings (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 (loss) 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.

For 2011, in determining the weighted average number of common shares outstanding for basic income (loss) per common share, we assumed 33.7 million shares were outstanding for the period from January 1, 2011 through November 20, 2011. Diluted income (loss) per common share subsequent to the distribution date of November 21, 2011 reflects the potential dilution of outstanding equity-based compensation awards by application of the treasury stock method.

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.


*(in millions, except per share amounts)*	January 3, 2014⁽¹⁾		December 28, 2012⁽²⁾		December 30, 2011
Computation of Basic Earnings (Loss) Per Share
Net income (loss)	$	80	$	7	$	(172)
Weighted average shares outstanding		35.4		34.4		33.7

Basic earnings (loss) per share	$	2.25	$	0.19	$	(5.12)

Computation of Diluted Earnings (Loss) Per Share
Net income (loss)	$	80	$	7	$	(172)

Weighted average shares outstanding		35.4		34.4		33.7
Effect of dilutive securities
Employee stock options and SARs		0.7		1.00		—
Restricted stock units		0.5		0.80		—

Shares for diluted earnings (loss) per share		36.6		36.2		33.7

Diluted earnings (loss) per share	$	2.18	$	0.18	$	(5.12)

⁽¹⁾

The computations of diluted earnings per share exclude approximately 229,000 shares of common stock, the maximum number of shares issuable as of January 3, 2014 upon the vesting of certain performance-based awards, because the performance conditions required for such shares to vest were not achieved by the end of the reporting period.

⁽²⁾

The computations of diluted earnings per share exclude approximately 157,000 shares of common stock, the maximum number of shares issuable as of December 28, 2012 upon the vesting of certain performance-based awards, because the performance conditions required for such shares to vest were not achieved by the end of the reporting period.

In accordance with the applicable accounting guidance for calculating earnings per share, for the year ended January 3, 2014, we have not excluded any shares underlying stock options or SARs that may be settled in shares of common stock from our calculation of diluted earnings per share as no exercise prices were greater than the average market prices for the applicable period.

For the year ended December 28, 2012, we excluded 2,127 shares underlying stock options and SARs that may be settled in shares of common stock, with exercise prices ranging from $32.74 to $40.97, in our calculation of diluted earnings per share because these exercise prices were greater than the average market prices for the applicable period.

Inventory

12 Months Ended

Jan. 03, 2014

Inventory Disclosure [Abstract]

Property Plant And Equipment [Abstract]

7. INVENTORY

The following table shows the composition of our inventory balances:


*($ in millions)*	At Year-End 2013		At Year-End 2012
Finished goods⁽¹⁾	$	369	$	491
Work-in-progress		151		50
Land and infrastructure⁽²⁾		344		340

Real estate inventory		864		881
Operating supplies and retail inventory		6		7

	$	870	$	888

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

⁽²⁾	Includes sales centers to be converted for future sale as vacation ownership products.

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. Interest capitalized as a cost of inventory totaled $4 million, $3 million and $7 million in 2013, 2012 and 2011, respectively.

Property and Equipment

12 Months Ended

Jan. 03, 2014

Property and Equipment

8. PROPERTY AND EQUIPMENT

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


*($ in millions)*	At Year-End 2013		At Year-End 2012
Land	$	144	$	145
Buildings and leasehold improvements		204		204
Furniture and equipment		56		58
Information technology		181		188
Construction in progress		11		9

		596		604
Accumulated depreciation		(342)		(343)

	$	254	$	261

Interest capitalized as a cost of property and equipment totaled less than $1 million in each of 2013, 2012 and 2011. Depreciation expense totaled $23 million in 2013, $30 million in 2012 and $33 million in 2011.

Contingencies and Commitments

12 Months Ended

Jan. 03, 2014

Commitments And Contingencies Disclosure [Abstract]

Contingencies and Commitments

9. CONTINGENCIES AND COMMITMENTS

Guarantees

We have historically issued guarantees to certain lenders in connection with the provision of third-party financing for our sale of vacation ownership products for the North America 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, and following the Spin-Off 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 North America 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 financing guarantees where we are the primary obligor and the carrying amount of the liability for expected future fundings.


*($ in millions)*	Maximum Potential Amount of Future Fundings at Year-End 2013		Liability for Expected Future Fundings at Year-End 2013
Segment
Asia Pacific	$	13	$	—
North America		3		—

Total guarantees where we are the primary obligor	$	16	$	—

We included our liability of less than $1 million for expected future fundings for guarantees in our Balance Sheets at January 3, 2014 in the Other caption within Liabilities.

Commitments and Letters of Credit

In addition to the guarantees we note in the preceding paragraphs, as of January 3, 2014, we had the following commitments outstanding:

•

We have various contracts for the use of information technology hardware and software that we use in the normal course of business. Our commitments under these contracts were $36 million, of which we expect $11 million, $12 million, $6 million, $5 million, $1 million and $1 million will be paid in 2014, 2015, 2016, 2017, 2018 and 2019 respectively.

•

Commitments to subsidize vacation ownership associations were $8 million, which we expect will be paid in 2014.

•

Other purchase commitments of $1 million (approximately €1 million) that we expect to fund during 2014.

Surety bonds issued as of January 3, 2014 totaled $84 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. Following the Spin-Off, Marriott International continues to hold less than $1 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 January 3, 2014, we had $1 million of letters of credit outstanding under our $200 million revolving credit facility (the “Revolving Corporate Credit Facility”).

Loss Contingencies

In 2012, we agreed to settle two lawsuits in which certain of our subsidiaries were defendants. The plaintiffs in the lawsuits, residential unit owners at The Ritz-Carlton Club and Residences, San Francisco (the “RCC San Francisco”), a project within our North America segment, questioned the adequacy of disclosures made prior to 2008, when our business was part of Marriott International, regarding bonds issued for that project under California’s Mello-Roos Community Facilities Act of 1982 (the “Mello-Roos Act”) and their payment obligations with respect to such bonds. In 2013, we agreed to settle a third lawsuit in which another residential unit owner at the RCC San Francisco had asserted similar claims. As a result of these matters, in 2013 we reversed $1 million of the $41 million previously recognized expense recorded in 2012. An additional lawsuit was filed against us in June 2013 primarily related to disclosure provided to a purchaser of a residential unit at the RCC San Francisco. We dispute the material allegations in the complaint and intend to defend against this action vigorously. Given the early stages of the action and the inherent uncertainties of litigation, we cannot estimate a range of the potential liability, if any, at this time.

On December 21, 2012, Jon Benner, an owner of fractional interests in the RCC San Francisco, filed suit in Superior Court for the State of California, County of San Francisco against us and certain of our subsidiaries on behalf of a putative class consisting of all owners of fractional interests at the RCC San Francisco who allegedly did not receive proper notice of their payment obligations under the Mello-Roos Act. The plaintiff alleges that the disclosures made about bonds issued for the project under this Act and the payment obligations of fractional interest purchasers with respect to such bonds were inadequate, and this and other alleged statutory violations constitute intentional and negligent misrepresentation, fraud and fraudulent concealment. The relief sought includes damages in an unspecified amount, rescission of the purchases, restitution and disgorgement of profits. Thomas Wanless and Matthew Jenner, owners of another fractional interest, filed a complaint in San Francisco Superior Court on October 15, 2013, that contains similar allegations and seeks similar relief. The Wanless complaint has been consolidated with the Benner action and with a similar action previously filed by fractional interest owner Elisabeth Gani. These three lawsuits are distinct from the other lawsuits described above relating to the RCC San Francisco because the disclosure process for the sale of fractional interests differs from that applicable to the sale of whole-ownership units. We dispute the material allegations in these complaints and intend to defend against these actions vigorously. Given the early stages of these actions and the inherent uncertainties of litigation, we cannot estimate a range of the potential liability, if any, at this time.

On December 11, 2012, Steven B. Hoyt and Bradley A. Hoyt, purchasers of fractional interests in two of The Ritz-Carlton Destination Club projects, filed suit in the United States District Court for the District of Minnesota against us, certain of our subsidiaries and Ritz-Carlton Hotel Company on behalf of a putative class consisting of all purchasers of fractional interests at The Ritz-Carlton Destination Club projects. The plaintiffs allege that program changes beginning in 2009 caused an actionable decrease in the value of the fractional interests purchased. The relief sought includes declaratory and injunctive relief, damages in an unspecified amount, rescission of the purchases, restitution, disgorgement of profits, interest and attorneys’ fees. In response to our motion to dismiss the original complaint, plaintiffs filed an amended complaint. In response, we filed a renewed motion to dismiss. On February 7, 2014, the court issued an order granting that motion in part and denying it in part. We continue to dispute the material allegations remaining in the amended complaint and intend to continue to defend against this action vigorously. Given the early stages of the action and the inherent uncertainties of litigation, we cannot estimate a range of the potential liability, if any, at this time.

On January 30, 2013, Krishna and Sherrie Narayan and other owners of 12 residential units at the resort formerly known as The Ritz-Carlton Residences, Kapalua Bay (“Kapalua Bay”) were granted leave by the Court to file, and subsequently did file, an amended complaint related to a suit originally filed in Circuit Court for Maui County, Hawaii in June 2012 against us, certain of our subsidiaries, Marriott International, certain of its subsidiaries, and the joint venture in which we have an equity investment that developed and marketed vacation ownership and residential products at Kapalua Bay (the “Joint Venture”). In the original complaint, the plaintiffs alleged that defendants mismanaged funds of the residential owners association (the “Kapalua Bay Association”), created a conflict of interest by permitting their employees to serve on the Kapalua Bay Association’s board, and failed to disclose documents to which the plaintiffs were allegedly entitled. The amended complaint alleges breach of fiduciary duty, violations of the Hawaii Unfair and Deceptive Trade Practices Act and the Hawaii condominium statute, intentional misrepresentation and concealment, unjust enrichment and civil conspiracy. The relief sought in the amended complaint includes injunctive relief, repayment of all sums paid to us and our subsidiaries and Marriott International and its subsidiaries, compensatory and punitive damages, and treble damages under the Hawaii Unfair and Deceptive Trade Practices Act. We dispute the material allegations in the amended complaint and continue to defend against this action vigorously. On August 23, 2013, the Hawaii Intermediate Court of Appeals reversed the Maui Circuit Court’s denial of our motion to compel arbitration on the claims asserted by plaintiffs. The Circuit Court subsequently granted our renewed motion and referred the matter to arbitration. The Hawaii Supreme Court thereafter agreed to review the decision of the Intermediate Court of Appeals, but has thus far taken no action to affirm or reverse that decision. Given the inherent uncertainties of litigation, we cannot estimate a range of the potential liability, if any, at this time.

On September 26, 2012, we filed an arbitration demand against the Kapalua Bay Association for reimbursement of amounts advanced on behalf of the Kapalua Bay Association pursuant to the terms of the management agreement under which one of our subsidiaries provided services to the Kapalua Bay Association. Effective December 31, 2012, the management agreement was terminated as discussed in Footnote No. 15, “Variable Interest Entities.” On April 15, 2013, the Kapalua Bay Association filed a counterclaim against certain of our subsidiaries in the arbitration proceeding. In the counterclaim, the Kapalua Bay Association alleges claims against us based on breach of contract, misrepresentation, breach of fiduciary duty, unfair and deceptive trade practices and unjust enrichment. The relief sought consisted of unspecified damages.

In the fourth quarter of 2013, we reached an agreement with several parties involved in the Kapalua Bay project, including the foreclosure purchasers of the unsold interests in the project, other entities that have equity investments in the Joint Venture, the Kapalua Bay Association, and the Kapalua Bay Vacation Owners Association (the fractional owners’ association), to mutually settle pending and threatened claims relating to the project (the “Kapalua Bay Settlement”). As part of the Kapalua Bay Settlement, we agreed to dismiss our claim pending in the arbitration proceeding described above against the Kapalua Bay Association, and the Kapalua Bay Association agreed to dismiss its counterclaim against us; as a result, the arbitration has been dismissed in its entirety. In connection with the Kapalua Bay Settlement, owners of 132 of the 177 developer-sold fractional interests (including owners of two fractional interests who were plaintiffs in the Charles action described below) provided full releases to us and other parties associated with the project (“the Fractional Releases”). In addition, one residential owner provided a full release to us and other parties associated with the project (the “Residential Release”). As a result of the Kapalua Bay Settlement, the Fractional Releases and the Residential Release, we recorded a charge of $8 million in 2013. This charge was partially offset by $7 million of income recorded for partial repayment of our previously fully reserved receivables due from the Joint Venture. Both are included in Impairment (charges) reversals on equity investment on the Statements of Operations.

On June 19, 2013, Earl C. and Patricia A. Charles, owners of a fractional interest at Kapalua Bay, together with owners of 38 other fractional interests at Kapalua Bay, filed an amended complaint in the Circuit Court of the Second Circuit for the State of Hawaii against us, certain of our subsidiaries, Marriott International, certain of its subsidiaries, the Joint Venture, and other entities that have equity investments in the Joint Venture. The amended complaint supersedes a prior complaint that was not served on any defendant. The plaintiffs allege that the defendants failed to disclose the financial condition of the Joint Venture and the commitment of the defendants to the Joint Venture, and that defendants’ actions constituted fraud and violated the Hawaii Unfair and Deceptive Trade Practices Act, the Hawaii Condominium Property Act and the Hawaii Time Sharing Plans statute. The relief sought includes compensatory and punitive damages, attorneys’ fees, pre-judgment interest, declaratory relief, rescission and treble damages under the Hawaii Unfair and Deceptive Trade Practices Act. The complaint was subsequently further amended to add owners of two additional fractional interests as plaintiffs. The Circuit Court granted our motion to compel arbitration, and the parties have agreed to attempt to settle the litigation through mediation. We dispute the material allegations in the amended complaint and intend to defend against this action vigorously if the mediation does not result in a settlement. Given the early stages of the action and the inherent uncertainties of litigation, we cannot estimate a range of the potential liability, if any, at this time. Additionally, owners of two fractional interests have since agreed to release their claims in this action in connection with the Kapalua Bay Settlement described above.

On June 28, 2013, owners of 35 residences and lots at The Abaco Club on Winding Bay filed a complaint in Orange County, Florida Circuit Court against us, one of our subsidiaries, certain subsidiaries of Marriott International and the resort’s owners’ association, alleging that the defendants failed to maintain the golf course, golf clubhouse, roads, water supply system, and other facilities and equipment in a manner commensurate with a five-star luxury resort, and deficiencies in the quality of services provided at the resort. Plaintiffs also allege that the defendants failed to honor an obligation to extend a right of first offer to club owners in connection with plans to sell the club property. Plaintiffs allege statutory and common law claims for breach of contract, breach of fiduciary duty, and fraud and seek compensatory and punitive damages. We have filed a motion to dismiss the complaint. We dispute the material allegations in this complaint and intend to defend against this action vigorously. Given the early stages of the action and the inherent uncertainties of litigation, we cannot estimate a range of the potential liability, if any, at this time.

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 $63 million, of which $23 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 2017.

Leases

We have various land, real estate and equipment operating leases. The land leases primarily consist of two long-term golf course land leases with terms of 20 and 50 years. The corporate facilities leases are for our corporate headquarters and have lease terms of approximately 8 years. The other operating leases are primarily for office and retail space as well as equipment supporting our operations and have lease terms of between 3 and 10 years. We have summarized our future obligations under operating leases at January 3, 2014 below:


*($ in millions)*	Land Leases		Corporate Facilities Leases		Other Operating Leases		Total
Fiscal Year
2014	$	2	$	1	$	8	$	11
2015		2		3		6		11
2016		2		3		3		8
2017		2		4		2		8
2018		2		4		1		7
Thereafter		34		10		6		50

Total minimum lease payments	$	44	$	25	$	26	$	95

Certain of these leases provide for minimum rentals and additional rentals based on our operations of the leased property. The total minimum lease payments above exclude approximately $2 million in future lease payments which have been accrued on the Balance Sheets as part of historical restructuring charges. The future lease payments accrued as restructuring charges are expected to be paid in 2014.

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


*($ in millions)*	2013		2012		2011
Minimum rentals	$	9	$	10	$	10
Additional rentals		5		5		5

	$	14	$	15	$	15

Debt

12 Months Ended

Jan. 03, 2014

Debt Disclosure [Abstract]

Other Liabilities Disclosure [Abstract]

10. DEBT

The following table provides detail on our debt balances:


*($ in millions)*	At Year-End 2013		At Year-End 2012
Vacation ownership notes receivable securitizations, interest rates ranging from 2.2% to 7.2% (weighted average interest rate of 3.5%) ⁽¹⁾	$	674	$	674
Other		4		4

	$	678	$	678

⁽¹⁾	Interest rates are as of January 3, 2014.

See Footnote No. 15, “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 unsecured. The Warehouse Credit Facility currently terminates on September 5, 2015 and if not renewed, any amounts outstanding thereunder would become due and payable 13 months after termination, at which time all principal and interest collected with respect to the vacation ownership notes receivable held in the Warehouse Credit Facility would be redirected to the lenders to pay down the outstanding debt under the facility. We generally expect to securitize our vacation ownership notes receivable, including any vacation ownership notes receivable held in the Warehouse Credit Facility, in the ABS market once a year.

During 2013, we completed the securitization of a pool of $263 million of vacation ownership notes receivable, including $116 million of vacation ownership notes receivable that were previously securitized in the Warehouse Credit Facility. In connection with the securitization, investors purchased $250 million in vacation ownership loan backed notes from the MVW Owner Trust 2013-1 (the “2013-1 Trust”) in a private placement. Two classes of vacation ownership loan backed notes were issued by the 2013-1 Trust: $224 million of Class A Notes and $26 million of Class B Notes. The Class A Notes have an interest rate of 2.15 percent and the Class B Notes have an interest rate of 2.74 percent, for an overall weighted average interest rate of 2.21 percent.

Although no cash borrowings were outstanding as of January 3, 2014 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)*	Vacation Ownership Notes Receivable Securitizations⁽¹⁾		Other Debt		Total
Debt Principal Payments Year
2014	$	112	$	—	$	112
2015		113		—		113
2016		109		—		109
2017		77		—		77
2018		58		—		58
Thereafter		205		4		209

Balance at January 3, 2014	$	674	$	4	$	678

⁽¹⁾	The debt associated with our vacation ownership notes receivable securitizations is non-recourse to us.

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

We paid cash for interest, net of amounts capitalized, of $37 million in 2013, $48 million in 2012 and $45 million in 2011.

Debt Associated with Vacation Ownership Notes Receivable Securitizations

Each of the transactions in which we have securitized vacation ownership notes receivable contain 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 2013, and as of January 3, 2014, no pools failed to perform within the established parameters. For 2012, approximately $1 million of cash flows were redirected as a result of failing to perform within the established parameters during that year. As of January 3, 2014, we had 7 securitized vacation ownership notes receivable pools outstanding.

Renewal of Warehouse Credit Facility

During 2013, we entered into an amendment (the “Amendment”) to certain of the agreements associated with the Warehouse Credit Facility. As a result of the Amendment, the revolving period was extended to September 5, 2015, and borrowings under the Warehouse Credit Facility bear interest at a rate based on a blend of the one-month LIBOR and bank conduit commercial paper rates plus 1.2 percent per annum and are generally limited at any point to the sum of the products of the applicable advance rates and the eligible vacation ownership notes receivable at such time. The Amendment also expands the eligibility for certain collateral by permitting some vacation ownership notes receivable from domestic borrowers with low or no credit scores to be securitized through the Warehouse Credit Facility. Other terms of the Warehouse Credit Facility are substantially similar to those in effect prior to the Amendment. In addition to the amendments described above, the Amendment also includes certain modifications intended to comply with provisions of the Dodd-Frank Wall Street Reform and Consumer Protection Act (the “Dodd-Frank Act”) and A Global Regulatory Framework for More Resilient Banks and Banking Systems developed by the Basel Committee on Banking Supervision, initially published in December 2010 and generally referred to as “Basel III.”

Revolving Corporate Credit Facility

During 2013, we entered into a First Amendment (the “Credit Agreement Amendment”) to the Revolving Corporate Credit Facility. Pursuant to the Revolving Corporate Credit Facility, the maximum ratio of consolidated total debt to consolidated adjusted EBITDA (as defined in the Revolving Corporate Credit Facility) that we are required to maintain was 6 to 1 through the end of the first quarter of 2013, then decreasing to 5.75 to 1 through the end of the first quarter of 2014, and to 5.25 to 1 thereafter. Prior to the Credit Agreement Amendment, the ratio we were required to maintain was 6 to 1 through the end of the first quarter of 2013, then 5.25 to 1 through the end of the 2014 fiscal year, and 4.75 to 1 thereafter. In addition, the Credit Agreement Amendment provides for certain amendments to the definitions of “Consolidated Adjusted EBITDA” and “Consolidated Total Debt” that will provide us with additional flexibility.

In addition to the changes described above, the Credit Agreement Amendment also includes modifications intended to comply with certain provisions of the Dodd-Frank Act regarding the guarantee of foreign exchange and interest rate swap transactions by certain of our subsidiaries that guarantee our obligations under the Revolving Corporate Credit Facility. On June 12, 2013, we also entered into a First Amendment to our November 2012 amended and restated guarantee and collateral agreement (the “Guarantee and Collateral Agreement”), which modified the Guarantee and Collateral Agreement to comply with the provisions of the Dodd-Frank Act described above.

Mandatorily Redeemable Preferred Stock of Consolidated Subsidiary	12 Months Ended
	Jan. 03, 2014
Text Block [Abstract]
Mandatorily Redeemable Preferred Stock of Consolidated Subsidiary	11. 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, if we do not elect to redeem the preferred stock, 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 (i.e., beginning in October 2016). 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 January 3, 2014, 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.

Other Liabilities

12 Months Ended

Jan. 03, 2014

Other Liabilities

12. OTHER LIABILITIES

Liability for Marriott Rewards Customer Loyalty Program

We participate in the Marriott Rewards customer loyalty program. Program members earn Marriott Rewards Points based on their purchases of vacation ownership products and/or through exchange and other activities related to our vacation ownership products, as well as through hotel stays and other activities that are not related to our business. Points are tracked on members’ behalf and can be redeemed for stays at most of Marriott International’s lodging properties, airline tickets, airline frequent flyer program miles, rental cars and a variety of other awards; however, points cannot be redeemed for cash.

For Marriott Rewards Points issued prior to 2012, we pay Marriott International upon redemption of Marriott Rewards Points by program members. Historically, we determined the carrying value of the future redemption obligation based on statistical formulas that project timing of future point redemption based on historical levels, including estimates of the points that will eventually be redeemed and the “breakage” for points that will never be redeemed. These judgment factors determine the required liability for outstanding points. The liability is relieved upon redemption of points by program members. Our Marriott Rewards customer loyalty program’s liability for those Marriott Rewards Points issued prior to 2012 totaled $114 million at January 3, 2014 and $159 million at December 28, 2012. We recorded changes in estimate for our Marriott Rewards customer loyalty program liability of $5 million, $9 million and $0 in 2013, 2012 and 2011, respectively.

We completed a stress test on the carrying value of our Marriott Rewards customer loyalty program liability for Marriott Rewards Points issued prior to 2012 to measure the change in obligation associated with independent changes in key estimates as described in Footnote No. 1, “Summary of Significant Accounting Policies.” We applied this methodology to unfavorable changes that would be statistically significant and we concluded that each change to a variable shown in the table below would have the following impact on the valuation of our customer loyalty liability at January 3, 2014:


*($ in millions)*
5 percent change in the cost per point	$	5
10 percent change in the cost per point	$	11
100 basis point change in the breakage rate	$	9
200 basis point change in the breakage rate	$	17

Although we did not specifically perform stress tests on the redemption curve because it is difficult to isolate a single quantitative measure against which to perform such a test, changes in the redemption curve could also have an impact on the valuation of our Marriott Rewards customer loyalty program liability for Marriott Rewards Points issued prior to 2012.

For periods subsequent to 2011, we generally pay Marriott International for Marriott Rewards Points upon issuance. The liability for Marriott Rewards Points issued after 2011 totaled $52 million at January 3, 2014 and $47 million at December 28, 2012, and is included within Accrued liabilities on the Balance Sheets and are generally payable within 120 days of year-end.

Shareholders' Equity

12 Months Ended

Jan. 03, 2014

Equity [Abstract]

Shareholders' Equity

13. SHAREHOLDERS’ EQUITY

Marriott Vacations Worldwide has 100,000,000 authorized shares of common stock, par value of $.01 per share. At January 3, 2014, there were 35,637,765 shares of Marriott Vacations Worldwide common stock issued, of which 35,132,742 were outstanding and 505,023 shares were held as treasury stock. At December 28, 2012, there were 35,026,533 shares of Marriott Vacations Worldwide common stock issued and outstanding, of which none were held as treasury stock. Marriott Vacations Worldwide has 2,000,000 authorized shares of preferred stock, par value of $.01 per share, none of which were issued or outstanding as of January 3, 2014 or December 28, 2012.

Stock Repurchase Program

On October 8, 2013, our Board of Directors authorized a share repurchase program under which we may purchase up to 3,500,000 shares of our common stock prior to March 28, 2015. The specific timing, amount and other terms of the repurchases will depend on market conditions, corporate and regulatory requirements and other factors. Acquired shares of our common stock are held as treasury shares carried at cost in our Financial Statements. In connection with the repurchase program, we are authorized to adopt one or more plans pursuant to the provisions of Rule 10b5-1 under the Securities Exchange Act of 1934, as amended.

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


*($ in millions, except per share amounts)*	Number of Shares Repurchased		Cost of Shares Repurchased		Average Price Paid per Share
As of December 28, 2012		—	$	—	$	—
For the year ended January 3, 2014		505,023		26		50.76

As of January 3, 2014		505,023	$	26	$	50.76

As of year-end 2013, 3 million shares remained available for repurchase under the authorization approved by our Board of Directors.

The entire disclosure for shareholders' equity comprised of portions attributable to the parent entity and noncontrolling interest, including other comprehensive income. Includes, but is not limited to, balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings, accumulated balance for each classification of other comprehensive income and amount of comprehensive income.

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-Name Regulation S-X (SX)
-Number 210
-Section 02
-Paragraph 29, 30, 31
-Article 5

Reference 16: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Staff Accounting Bulletin (SAB)
-Number Topic 4
-Section E

Reference 17: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 08
-Article 4

Reference 18: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Staff Accounting Bulletin (SAB)
-Number Topic 4
-Section C

Reference 19: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 04
-Article 3

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

Share-Based Compensation

12 Months Ended

Jan. 03, 2014

Share-Based Compensation

14. SHARE-BASED COMPENSATION

Marriott Vacations Worldwide Share-Based Compensation Plans

We maintain the Marriott Vacations Worldwide Stock Plan for the benefit of our officers, directors and employees. Under the Marriott Vacations Worldwide Stock Plan, we award to certain of our employees: (1) stock options to purchase Marriott Vacations Worldwide common stock (“Stock Option Program”); (2) SARs for Marriott Vacations Worldwide common stock (“SAR Program”); and (3) RSUs of Marriott Vacations Worldwide common stock. In addition, pursuant to the Separation and Distribution Agreement, we agreed to issue awards under the Marriott Vacations Worldwide Stock Plan to certain current and former directors, officers, and employees of Marriott International who held awards under the Marriott International Stock Plan relating to Marriott International common stock at November 10, 2011, the record date for the Spin-Off. A total of 6 million shares are authorized for issuance under the Marriott Vacations Worldwide Stock Plan. As of January 3, 2014, approximately 2 million shares were available for grants under the Marriott Vacations Worldwide Stock Plan.

Effective as of the completion of the Spin-Off, all holders of Marriott International RSUs on the November 10, 2011 record date for the Spin-Off received Marriott Vacations Worldwide RSUs in an amount consistent with the Distribution Ratio, with terms and conditions substantially similar to the terms and conditions applicable to the Marriott International RSUs. Also, effective as of the completion of the Spin-Off, the holders of Marriott International stock options and SARs on the record date received Marriott Vacations Worldwide stock options and SARs, in an amount consistent with the Distribution Ratio, with terms and conditions substantially similar to the terms and conditions applicable to the Marriott International stock options and SARs.

The exercise prices of the outstanding Marriott International stock options and SARs were adjusted, and the exercise prices of the Marriott Vacations Worldwide stock options and SARs were set, in a manner intended to preserve the aggregate intrinsic value of the stock options and SARs prior to the Spin-Off. The exercise prices of the Marriott International awards were adjusted based on the proportion of the Marriott International ex-distribution closing stock price to the sum of the total of the Marriott International ex-distribution and Marriott Vacations Worldwide “when issued” closing stock prices on the distribution date.

The exercise prices of the Marriott Vacations Worldwide awards were set based on the proportion of the Marriott Vacations Worldwide “when issued” closing stock price on the distribution date to the sum of the total of the Marriott International ex-distribution and Marriott Vacations Worldwide “when issued” closing stock prices on the distribution date. These adjustments were designed to equalize the fair value of each award before and after the Spin-Off.

Deferred compensation costs as of the date of the Spin-Off reflected the unamortized balance of the original grant date fair value of the equity awards held by Marriott Vacations Worldwide employees (regardless of whether those awards are linked to Marriott International stock or Marriott Vacations Worldwide stock).

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. With respect to our employees, we recognize this expense on the Statement of Operations over the vesting period during which the employees provide service in exchange for the award; with respect to non-employee directors, we recognize this expense on the grant date. For share-based arrangements with performance vesting conditions, we recognize compensation expense once it is probable that the corresponding performance condition will be achieved. Following the Spin-Off, we recognize share-based compensation expense related to our employees and Marriott International recognizes compensation expense related to Marriott International employees, regardless of whether the underlying awards represent Marriott International or Marriott Vacations Worldwide awards.

We recorded share-based compensation expense related to award grants to our officers, directors and employees of $12 million in 2013, $12 million in 2012 and $11 million in 2011. Our deferred compensation liability related to unvested awards held by our employees totaled $13 million at January 3, 2014 and $14 million at December 28, 2012. As of January 3, 2014, we expect that deferred compensation expense for our employees will be recognized over a weighted average period of two years.

For Marriott International Stock Plan awards granted after 2005, we recognized share-based compensation expense over the period from the grant date to the date on which the award is no longer contingent on the employee providing additional service (the “substantive vesting period”). We continued to follow the stated vesting period for the unvested portion of Marriott International Stock Plan awards granted to our employees before 2006 and the adoption of the current guidance for share-based compensation and follow the substantive vesting period for Marriott International Stock Plan and Marriott Vacations Worldwide Stock Plan awards granted to our employees after 2005.

In accordance with the guidance for share-based compensation, we presented the tax benefits and costs resulting from the exercise or vesting of Marriott International Stock Plan share-based awards related to our employees as financing cash flows. The exercise of share-based awards for our employees resulted in tax benefits of $3 million in 2013, $3 million in 2012 and less than $1 million in 2011.

Marriott International received $2 million in 2013, $3 million in 2012 and $2 million in 2011 in cash from our employees for the exercise of stock options granted under the Marriott International Stock Plan. We received less than $1 million in cash from our employees for the exercise of Marriott Vacations Worldwide stock options in both 2013 and 2012. Approximately $1 million of Marriott Vacations Worldwide stock options were exercised prior to December 30, 2011; however cash proceeds had not yet been paid to us by our stock plan service provider as of December 30, 2011.

RSUs

RSUs issued to our employees under the Marriott International Stock Plan and the Marriott Vacations Worldwide Stock Plan generally vest over four years in annual installments commencing one year after the date of grant. RSUs issued to our non-employee directors under the Marriott Vacations Worldwide Stock Plan vest on the date of grant. We recognize compensation expense for the RSUs over the service period equal to the fair market value of the stock units on the date of issuance. At year-end 2013 and 2012, we had approximately $12 million and $13 million, respectively, in deferred compensation costs related to RSUs for our employees granted under the Marriott International Stock Plan and Marriott Vacations Worldwide Stock Plan. The weighted average remaining term for RSU grants outstanding at year-end 2013 for our employees was two years.

We granted 272,033 RSUs to our employees and non-employee directors during 2013. RSUs granted in 2013 had a weighted average grant-date fair value of $40.

During 2013 and 2012, we granted RSUs with performance vesting conditions to 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 72,000 and 157,000 for 2013 and 2012, respectively.

The following table provides additional information on outstanding RSUs issued to our employees for the last three fiscal years:


	2013		2012		2011
Share-based compensation expense (in millions)⁽¹⁾	$	11	$	10	$	10
Weighted average grant-date fair value prior to Spin-Off (per share)		32		31		40
Weighted average grant-date fair value subsequent to Spin-Off (per share)⁽¹⁾		29		22		19
Aggregate intrinsic value of converted and distributed (in millions)		7		3		2

⁽¹⁾	Includes RSUs with performance based vesting criteria.

The following table shows the 2013 changes in Marriott Vacations Worldwide RSUs issued to Marriott International and Marriott Vacations Worldwide employees:


	2013
	Number of Shares		Weighted Average Grant Date Fair Value
Outstanding at year-end 2012		1,138,323	$	17
Granted during 2013⁽¹⁾		272,033		40
Distributed during 2013		(365,127)		13
Forfeited during 2013		(19,965)		23
Outstanding at year-end 2013		1,025,264	$	24

⁽¹⁾	Includes RSUs with performance based vesting criteria.

Stock Options and SARs

We may grant employee non-qualified stock options to officers and employees of our business at exercise prices or strike prices equal to the market price of our common stock on the date of grant. Non-qualified stock options generally expire ten years after the date of grant. Most stock options are exercisable in cumulative installments of one quarter at the end of each of the first four years following the date of grant.

The following table shows the 2013 changes in outstanding Marriott Vacations Worldwide stock options for Marriott International and Marriott Vacations Worldwide employees:


	2013
	Number of Shares		Weighted Average Exercise Price
Outstanding at year-end 2012		648,905	$	11
Granted during 2013		—		—
Exercised during 2013		(364,282)		11
Forfeited during 2013		—		—

Outstanding at year-end 2013		284,623	$	12

Stock options awarded under the Marriott International Stock Plan were granted at exercise prices or strike prices equal to the market price of Marriott International common stock on the date of grant.

We recognized no stock option compensation expense for our employees in each of 2013, 2012 and 2011. There was no deferred compensation expense related to stock options held by our employees at both year-end 2013 and 2012.

The following table shows the Marriott Vacations Worldwide stock options issued to Marriott International and Marriott Vacations Worldwide employees that were outstanding and exercisable at year-end 2013:


	Outstanding						Exercisable
Range of Exercise Prices	Number of Stock Options		Weighted Average Exercise Price		Weighted Average Remaining Life (in years)		Number of Stock Options		Weighted Average Exercise Price		Weighted Average Remaining Life (in years)
$ 8 to $12		204,687	$	10		1		204,687	$	10		1
$ 13 to $17		15,622		15		4		14,286		15		4
$ 18 to $22		60,498		19		1		60,498		19		1
$ 23 to $28		3,816		26		5		2,855		27		4
$ 8 to $28		284,623	$	12		1		282,326	$	12		1

No Marriott Vacations Worldwide stock options, other than those granted as part of the Spin-Off, were granted to Marriott International or to our employees in 2013, 2012 or 2011.

The following table shows the intrinsic value of outstanding Marriott International stock options and exercisable stock options held by our employees at year-end 2013 and 2012:


*($ in millions)*	2013		2012
Outstanding stock options	$	2	$	4
Exercisable stock options	$	2	$	4

The intrinsic value of both the outstanding Marriott Vacations Worldwide stock options and the exercisable stock options held by our employees at year-end 2013 was less than $1 million.

The approximate total intrinsic value of stock options for Marriott International stock exercised by our employees was $3 million in 2013, $5 million in 2012 and $2 million in 2011. The approximate total intrinsic value of stock options for Marriott Vacations Worldwide stock exercised by our employees was less than $1 million in 2013, $1 million in 2012 and less than $1 million in 2011.

SARs awarded under the Marriott International Stock Plan were granted at exercise prices or strike prices equal to the market price of Marriott International common stock on the date of grant. SARs awarded under the Marriott Vacations Worldwide Stock Plan are granted at exercise prices or strike prices equal to the market price of Marriott Vacations Worldwide common stock on the date of grant (this price is referred to as the “base value”). SARs generally expire ten years after the date of grant and both vest and may be exercised in cumulative installments of one quarter at the end of each of the first four years following the date of grant. Upon exercise of SARs, our employees and directors receive the number of shares of Marriott International common stock or Marriott Vacations Worldwide common stock, as applicable, equal to the number of SARs being exercised, multiplied by the quotient of (a) the market price of the common stock on the date of exercise (this price is referred to as the “final value”) minus the base value, divided by (b) the final value.

We recognized compensation expense associated with SARs held by our employees and directors of $1 million in 2013, $2 million in 2012 and less than $1 million in 2011. At both year-end 2013 and year-end 2012, we had $1 million in deferred compensation costs related to SARs held by our employees and directors.

The following table shows the 2013 changes in outstanding Marriott Vacations Worldwide SARs issued to both Marriott International and Marriott Vacations Worldwide employees and directors:


	2013
	Number of Shares		Weighted Average Exercise Price
Outstanding at year-end 2012		710,169	$ 18
Granted during 2013		66,422	40
Exercised during 2013		(32,342)	19
Forfeited during 2013		—	—

Outstanding at year-end 2013		744,249	$ 20

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 subsequent to the Spin-Off, 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 based on the simplified method. The risk-free interest rate was calculated using 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 for the fiscal year ended 2013 and 2012:


	2013	2012
Expected volatility	57.55%	54.3%
Dividend yield	0.00%	0.00%
Risk-free rate	1.02%	1.03%
Expected term (in years)	6.25	6.25

Marriott International used a binomial method to estimate the fair value of the stock options or SARs granted, under which Marriott International calculated the weighted average expected stock option or SAR as the product of a lattice-based binomial valuation model that uses suboptimal exercise factors. Marriott International used historical data to estimate exercise behaviors for separate groups of retirement eligible and non-retirement eligible employees of our business.

The following table shows the assumptions used to estimate the fair value of stock options and SARs our employees were awarded under the Marriott International Stock Plan for 2011 (prior to the Spin-Off):


		2011
Expected volatility		32%
Dividend yield		0.73%
Risk-free interest rate		3.4%
Expected term (in years)		8

In making these assumptions, Marriott International based risk-free interest rates on the corresponding U.S. Treasury spot rates for the expected duration at the date of grant, which Marriott International converted to a continuously compounded rate. Marriott International based the expected volatility on the weighted-average historical volatility of the Marriott International Common Stock, with periods with atypical stock movement given a lower weight to reflect stabilized long-term mean volatility.

The differences in the assumptions used by Marriott International and by us to estimate fair value are a result of the Spin-Off and Marriott Vacations Worldwide operating as an independent company.

Variable Interest Entities

12 Months Ended

Jan. 03, 2014

Text Block [Abstract]

Variable Interest Entities

15. 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 issued by the special purpose entities 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, which are collateral for the obligations of these variable interest entities, and consolidated liabilities included in our Balance Sheet at January 3, 2014.


*($ in millions)*	Vacation Ownership Notes Receivable Securitizations		Warehouse Credit Facility		Total
Consolidated Assets:
Vacation ownership notes receivable, net of reserves	$	719	$	—	$	719
Interest receivable		5		—		5
Restricted cash		34		—		34

Total	$	758	$	—	$	758

Consolidated Liabilities:
Interest payable	$	1	$	—	$	1
Debt		674		—		674

Total	$	675	$	—	$	675

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 2013:


*($ in millions)*	Vacation Ownership Notes Receivable Securitizations		Warehouse Credit Facility		Total
Interest income	$	97	$	7	$	104
Interest expense to investors	$	25	$	2	$	27
Debt issuance cost amortization	$	3	$	1	$	4

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


*($ in millions)*	2013		2012
Cash inflows:
Net proceeds from vacation ownership notes receivable securitization	$	246	$	233
Principal receipts		180		188
Interest receipts		97		107

Total		523		528

Cash outflows:
Principal to investors		(172)		(184)
Voluntary repurchases of defaulted vacation ownership notes receivable		(27)		(37)
Voluntary retirement clean-up call		(51)		(72)
Interest to investors		(26)		(34)

Total		(276)		(327)

Net Cash Flows	$	247	$	201

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


*($ in millions)*	2013		2012
Cash inflows:
Net proceeds from vacation ownership notes receivable securitization	$	109	$	—
Principal receipts		16		16
Interest receipts		7		9
Reserve release		1		1

Total		133		26

Cash outflows:
Principal to investors		(13)		(15)
Voluntary repurchases of defaulted vacation ownership notes receivable		—		(2)
Repayment of Warehouse Credit Facility		(98)		(101)
Interest to investors		(2)		(2)

Total		(113)		(120)

Net Cash Flows	$	20	$	(94)

Under the terms of our vacation ownership notes receivable securitizations, we have the right at our option to repurchase defaulted vacation ownership notes receivable at the outstanding principal balance. The transaction documents typically limit such repurchases to 15 to 20 percent of the transaction’s initial vacation ownership notes receivable principal balance. We made voluntary repurchases of defaulted vacation ownership notes receivable of $27 million during 2013, $39 million during 2012 and $52 million during 2011. We also made voluntary repurchases of $69 million, $86 million and $24 million of other non-defaulted vacation ownership notes receivable during 2013, 2012 and 2011, respectively, to retire previous vacation ownership notes receivable securitizations. 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 notes receivable due from a variable interest entity that previously developed and marketed 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. We received a release of the guarantee and do not have any further exposure for funding under the guarantee. 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 lenders initiated foreclosure proceedings with respect to unsold interests in the project. A foreclosure auction was held and, on January 31, 2013, a bid was accepted and confirmed. The sale was completed, and on June 13, 2013, we received $7 million of cash as a partial repayment of our previously fully reserved receivables due from the entity.

We gave 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 provided services to the venture and, as we were unable to reach agreement with the owners’ associations with respect to our continued provision of services, termination of these agreements was effective on December 31, 2012. During the year ended January 3, 2014, we recorded $8 million of expense to increase our accrual for remaining costs expected to be incurred relating to our interests in this joint venture exclusive of any costs that may be incurred pursuant to outstanding litigation matters, including those discussed in Footnote No. 9, “Contingencies and Commitments.” Including reserves for outstanding receivables, at January 3, 2014, we have an accrual of $14 million for potential future funding, representing our remaining expected exposure to loss related to our involvement with this entity exclusive of any costs that may be incurred pursuant to outstanding litigation matters, including those discussed in Footnote No. 9, “Contingencies and Commitments.”

Impairment Charges

12 Months Ended

Jan. 03, 2014

Text Block [Abstract]

Impairment Charges

16. IMPAIRMENT CHARGES

In accordance with ASC 978, “Real Estate—Time-sharing Activities,” and ASC 360, “Property, Plant, and Equipment,” we recorded impairment adjustments to inventory and property and equipment to adjust the carrying value of underlying assets to our estimate of its fair value when required.


*($ in millions)*	2013⁽¹⁾		2012		2011
Impairment Charge
Inventory impairment	$	—	$	—	$	251
Property and equipment impairment		1		—		73

Total impairment charge	$	1	$	—	$	324

⁽¹⁾	The 2013 impairment charge related to a leased golf course in our Europe segment.

2011 Impairment Charges

We incurred total impairment charges during 2011 as follows:


*($ in millions)*	North America Segment		Europe Segment		Corporate and Other		Total
Impairment Charge
Inventory impairment	$	111	$	2	$	138	$	251
Property and equipment impairment		6		—		67		73

Total impairment charge	$	117	$	2	$	205	$	324

In preparation for the Spin-Off, management assessed the intended use of certain undeveloped and partially developed land and excess built inventory and the current market conditions for those assets. We typically purchase undeveloped land in order to develop it as a resort, in which we then sell vacation ownership interests. At the time we purchase undeveloped land, we record it as an asset in the reportable segment for which we intend to develop it. We do not purchase undeveloped land on a speculative basis; however, we may dispose of undeveloped land if we no longer intend to develop it.

During 2011, management approved a plan to accelerate cash flow through the monetization of certain undeveloped and partially developed land in the United States, Mexico, and the Bahamas and to accelerate sales of excess built luxury fractional and residential inventory. When we chose to pursue this disposition strategy for certain undeveloped and partially developed land, we reclassified this land from the reportable segments to the corporate and other category because it no longer related to the ongoing operations of a particular segment. 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) under the “Impairment” caption.

We estimated the fair value of the land by using recent comparable sales data for the land parcels, which we determined were Level 3 inputs. We estimated the fair value of the excess built luxury fractional and residential inventory using cash flow projections discounted at risk premiums commensurate with the market conditions of the related projects. We used Level 3 inputs for these discounted cash flow analyses and our assumptions included: growth rate and sales pace projections, additional sales incentives such as pricing discounts, and marketing and sales cost estimates.

Grouped by product type and/or geographic location, these impairment charges consisted of $117 million associated with nine luxury fractional and mixed use properties, $2 million related to one project in our European vacation ownership business, and $205 million associated with Corporate and Other, including $199 million related to undeveloped and partially developed land parcels associated with five vacation ownership properties that were previously classified in the North America segment and $6 million of software previously under development that will not be completed and used under our new strategy. Upon approval of the disposition plan, these undeveloped and partially developed land parcels were reclassified to Corporate and Other because the parcels no longer related to the ongoing operations of the North America segment. If the assets had not been reclassified from the North America segment to Corporate and Other, the $199 million impairment charge relating to these assets would have been recorded in the North America segment.

Additionally, we reclassified $52 million of these land parcels previously in our development plans from inventory to property and equipment. We also reviewed the remainder of our inventory assets and determined that there were no other adjustments needed to our vacation ownership inventory, which is recorded at the lower of cost or fair value less cost to sell.

Related Party Transactions	12 Months Ended
Related Party Transactions	Jan. 03, 2014
Related Party Transactions [Abstract]
Related Party Transactions	17. 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 $23 million for the period from January 1, 2011 through date of the Spin-Off. 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 $12 million for the period from January 1, 2011 through date of the Spin-Off 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.

Organizational and Separation Related Charges	12 Months Ended
Organizational and Separation Related Charges	Jan. 03, 2014
Text Block [Abstract]
Organizational and Separation Related Charges	18. ORGANIZATIONAL AND SEPARATION RELATED CHARGES Subsequent to the Spin-Off, Marriott International continued to provide us with certain information technology, payroll, human resources and other administrative services pursuant to transition services agreements, most of which we have ceased using as of the end of 2013. 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 existing human resources, information technology and related finance and accounting organizations to support our stand-alone public company needs. We expect these efforts to continue through 2014. Organizational and separation related charges as reflected in our Statements of Operations, were $12 million for 2013 and $16 million for 2012. In addition, $7 million and $2 million of additional separation related charges were capitalized to Property and equipment on our Balance Sheets during 2013 and 2012, respectively.

Business Segments

12 Months Ended

Jan. 03, 2014

Segment Reporting [Abstract]

Business Segments

19. BUSINESS SEGMENTS

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

•

In our North America segment, we develop, market, sell and manage vacation ownership and related products under the Marriott Vacation Club and Grand Residences by Marriott brands. We also develop, market and sell vacation ownership and related products under The Ritz-Carlton Destination Club brand, as well as whole ownership residential products under The Ritz-Carlton Residences brand.

•

In our Europe segment, we develop, market, sell and manage vacation ownership products in several locations in Europe. We are focusing on selling our existing projects and managing existing resorts. We do not have any current plans for new development in this segment.

•

In our Asia Pacific segment, we develop, market, sell and manage the Marriott Vacation Club, Asia Pacific, a right-to-use points program that we specifically designed to appeal to the vacation preferences of the Asian market, as well as a weeks-based right-to-use product.

Effective December 29, 2012, we combined the reporting of the financial results of the former Luxury segment with the North America segment based upon our decision to scale back separate development activity for the luxury market and to aggregate future marketing and sales efforts for upscale and luxury inventory. Existing service standards and on-site management remain unaffected by our reporting changes. Prior year amounts have been recast for consistency with the current year’s presentation.

We evaluate the performance of our segments based primarily on the results of the segment without allocating corporate expenses or income taxes. We do not allocate corporate interest expense, consumer financing interest expense or other financing expenses to our segments. During 2013, we reviewed the allocation of general and administrative expenses to our reportable segments as a result of the realignment of our management structure. Based on this review, we determined to no longer allocate certain general and administrative expenses to our reportable segments. This change, which was effective December 29, 2012, had no impact on our Financial Statements for any prior period. Prior period reportable segment information has been adjusted to reflect the change in reportable segment reporting.

We include interest income specific to segment activities within the appropriate segment. We allocate other gains and losses and equity in earnings or losses from our joint ventures to each of our segments as appropriate. Corporate and other represents that portion of our revenues, equity in earnings or losses, and other gains or losses that are not allocable to our segments.

Revenues


*($ in millions)*	2013		2012		2011
North America	$	1,545	$	1,444	$	1,403
Europe		141		112		129
Asia Pacific		64		83		92

Total segment revenues		1,750		1,639		1,624
Corporate and other		—		—		—

	$	1,750	$	1,639	$	1,624

Net Income (Loss)


*($ in millions)*	2013		2012		2011
North America	$	342	$	266	$	139
Europe		18		2		10
Asia Pacific		8		4		4

Total segment financial results		368		272		153
Corporate and other		(237)		(241)		(370)
(Provision) benefit for income taxes		(51)		(24)		45

	$	80	$	7	$	(172)

Equity in Earnings of Equity Method Investees


*($ in millions)*	2013		2012		2011
Asia Pacific	$	—	$	1	$	—

	$	—	$	1	$	—

Depreciation


*($ in millions)*	2013		2012		2011
North America	$	10	$	12	$	13
Europe		2		2		3
Asia Pacific		—		—		1

Total segment depreciation		12		14		17
Corporate and other		11		16		16

	$	23	$	30	$	33

Assets


*($ in millions)*	At Year-End 2013		At Year-End 2012
North America	$	2,125	$	2,223
Europe		103		122
Asia Pacific		84		85

Total segment assets		2,312		2,430
Corporate and other		320		183

	$	2,632	$	2,613

Equity Method Investments


*($ in millions)*	At Year-End 2013		At Year-End 2012
Asia Pacific	$	1	$	1

Capital Expenditures (including inventory)


($ in millions)	2013		2012		2011
North America	$	167	$	118	$	118
Europe		5		4		5
Asia Pacific		8		11		3

Total segment capital expenditures		180		133		126
Corporate and other		8		5		9

	$	188	$	138	$	135

Our Financial Statements include the following items related to operations located outside the United States (which are predominately related to our Europe and Asia Pacific segments):

•

Revenues, excluding reimbursed costs, of $207 million in 2013, $236 million in 2012 and $281 million in 2011; and

•

Fixed assets of $100 million in 2013 and $101 million in 2012. For year-end 2013 and year-end 2012, fixed assets located outside the United States are included within the “Property and equipment” caption in our Balance Sheets.

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.

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Quarterly Financial Information Disclosure [Abstract]

Quarterly Results

12 Months Ended

Jan. 03, 2014

Quarterly Results

20. QUARTERLY RESULTS (UNAUDITED)


	Fiscal Year 2013^(1)(2)(3)
($ in millions, except per share data)	First Quarter		Second Quarter		Third Quarter		Fourth Quarter		Fiscal Year
Revenues	$	390	$	421	$	412	$	527	$	1,750

Expenses	$	(358)	$	(373)	$	(370)	$	(505)	$	(1,606)

Net income	$	19	$	30	$	25	$	6	$	80

Basic earnings per share	$	0.53	$	0.87	$	0.70	$	0.16	$	2.25

Diluted earnings per share	$	0.51	$	0.85	$	0.67	$	0.15	$	2.18


	Fiscal Year 2012^(1)(2)(3)
($ in millions, except per share data)	First Quarter		Second Quarter		Third Quarter		Fourth Quarter		Fiscal Year
Revenues	$	374	$	383	$	383	$	499	$	1,639

Expenses	$	(355)	$	(372)	$	(362)	$	(514)	$	(1,603)

Net income (loss)	$	8	$	5	$	5	$	(11)	$	7

Basic earnings (loss) per share	$	0.23	$	0.16	$	0.13	$	(0.33)	$	0.19

Diluted earnings (loss) per share	$	0.22	$	0.15	$	0.12	$	(0.33)	$	0.18

⁽¹⁾	The quarters consisted of 12 weeks, except for the fourth quarter of 2013, which consisted of 17 weeks and the fourth quarter of 2012, which consisted of 16 weeks.

⁽²⁾	The sum of the earnings per share for the four quarters differs from annual earnings per share due to the required method of computing the weighted average shares in interim periods.

⁽³⁾	The quarterly results have been restated to correct certain prior period errors as discussed in Footnote No. 1, “Summary of Significant Accounting Policies.”

Subsequent Event	12 Months Ended
Subsequent Event	Jan. 03, 2014
Subsequent Events [Abstract]
Subsequent Event	21. SUBSEQUENT EVENT Subsequent to year end, we disposed of a golf course and adjacent undeveloped land for $24 million of cash proceeds. As a condition of the sale, we will continue to operate the golf course until mid-2015 at our own risk. We will utilize the performance of services method to record a gain of approximately $2 million over the period in which we will operate the golf course.

Summary of Significant Accounting Policies (Policies)

12 Months Ended

Jan. 03, 2014

Accounting Policies [Abstract]

Business Operations

Our Business

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	Fiscal Year-End Date
2013		January 3, 2014
2012		December 28, 2012
2011		December 30, 2011

Revenue Recognition

Revenue Recognition

Sale of Vacation Ownership Products

Resort Management and Other Services Revenues

Financing Revenues

Rental Revenues

We record rental revenues when occupancy has occurred or, in the case of unused prepaid rentals, upon forfeiture.

Cost Reimbursements

Multiple-Element Transactions

Multiple-Element Transactions

Defined Contribution Plan

Inventory

Capitalization of Costs

Capitalization of Costs

Defined Contribution Plan

Deferred Compensation Plan

Deferred Compensation Plan

Property and Equipment

Property and Equipment

Marriott Rewards Customer Loyalty Program

Marriott Rewards Customer Loyalty Program

Guarantees

Guarantees

Cash and Cash Equivalents

Cash and Cash Equivalents

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

Restricted Cash

Restricted Cash

Accounts and Contracts Receivable

Accounts and Contracts Receivable

Accounts and contracts receivable are presented net of allowances of $1 million and $2 million at the end of 2013 and 2012, respectively.

Loan Loss Reserves

Loan Loss Reserves

Vacation Ownership Notes Receivable

For additional information on our vacation ownership notes receivable, including information on the related reserves, see Footnote No. 3, “Vacation Ownership Notes Receivable.”

Costs Incurred to Sell Vacation Ownership Products

Costs Incurred to Sell Vacation Ownership Products

Valuation of Property and Equipment

Valuation of Property and Equipment

For information on impairment losses that we recorded associated with long-lived assets, see Footnote No. 16, “Impairment Charges.”

Investments

Investments

Valuation of Investments in Ventures

Fair Value Measurements

Fair Value Measurements

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

Derivative Instruments

Derivative Instruments

Non-U.S. Operations

Non-U.S. Operations

Legal Contingencies

Legal Contingencies

Share-Based Compensation Costs

Share-Based Compensation Costs

Advertising Costs

Advertising Costs

Income Taxes

Income Taxes

For information about income taxes and deferred tax assets and liabilities, see Footnote No. 2, “Income Taxes.”

Earnings (Loss) Per Common Share

Earnings (Loss) Per Common Share

New Accounting Standards

New Accounting Standards

Accounting Standards Update No. 2013-02 – “Comprehensive Income (Topic 220): Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income” (“ASU No. 2013-02”)

Summary of Significant Accounting Policies (Tables)

12 Months Ended

Jan. 03, 2014

Accounting Policies [Abstract]

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

Unless otherwise specified, each reference to a particular year in these financial statements means the fiscal year ended on the date shown in the following table, rather than the corresponding calendar year:


Fiscal Year	Fiscal Year-End Date
2013		January 3, 2014
2012		December 28, 2012
2011		December 30, 2011

Summary of Restatement of Previously Reported Financial Statements

The impact of these adjustments on the financial statements is detailed in the tables below.


	As of December 28, 2012
*($ in millions)*	As Previously Reported		Adjustment		As Restated
CONSOLIDATED BALANCE SHEETS
Inventory	$	881	$	7	$	888
Other	$	135	$	2	$	137
TOTAL ASSETS	$	2,604	$	9	$	2,613
Advance deposits	$	42	$	22	$	64
Deferred taxes	$	43	$	(1)	$	42
TOTAL LIABILITIES	$	1,453	$	21	$	1,474
Retained earnings (deficit)	$	14	$	(12)	$	2
TOTAL EQUITY	$	1,151	$	(12)	$	1,139
TOTAL LIABILITIES AND EQUITY	$	2,604	$	9	$	2,613


	For the Year Ended December 28, 2012
*($ in millions, except per share data)*	As Previously Reported⁽¹⁾		Adjustment		As Restated
CONSOLIDATED STATEMENTS OF OPERATIONS
Sale of vacation ownership products	$	627	$	(9)	$	618
TOTAL REVENUES	$	1,648	$	(9)	$	1,639
Cost of vacation ownership products	$	205	$	(2)	$	203
Marketing and sales	$	330	$	(1)	$	329
TOTAL EXPENSES	$	1,606	$	(3)	$	1,603
INCOME BEFORE INCOME TAXES	$	37	$	(6)	$	31
Provision for income taxes	$	(21)	$	(3)	$	(24)
NET INCOME	$	16	$	(9)	$	7
Basic earnings (loss) per share	$	0.46	$	(0.27)	$	0.19
Diluted earnings (loss) per share	$	0.44	$	(0.26)	$	0.18

⁽¹⁾	As previously reported amounts include interest expense amounts that have been reclassified as consumer financing interest expense to conform to our 2013 presentation.


	For the Year Ended December 30, 2011
*($ in millions, except per share data)*	As Previously Reported		Adjustment		As Restated
CONSOLIDATED STATEMENTS OF OPERATIONS
Sale of vacation ownership products	$	634	$	(7)	$	627
Cost reimbursements	$	331	$	18	$	349
TOTAL REVENUES	$	1,613	$	11	$	1,624
Cost of vacation ownership products	$	242	$	(3)	$	239
Marketing and sales	$	342	$	(1)	$	341
Cost reimbursements	$	331	$	18	$	349
TOTAL EXPENSES	$	1,833	$	14	$	1,847
LOSS BEFORE INCOME TAXES	$	(214)	$	(3)	$	(217)
Benefit for income taxes	$	36	$	9	$	45
NET LOSS	$	(178)	$	6	$	(172)
Basic (loss) earnings per share	$	(5.29)	$	0.17	$	(5.12)
Diluted (loss) earnings per share	$	(5.29)	$	0.17	$	(5.12)

Income Taxes (Tables)

12 Months Ended

Jan. 03, 2014

Income Tax Disclosure [Abstract]

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

The income (loss) before provision (benefit) of income taxes by geographic region is as follows:


*($ in millions)*	2013		2012		2011
United States	$	125	$	44	$	(129)
Non-U.S. jurisdictions		6		(13)		(88)

	$	131	$	31	$	(217)

Benefit from (Provision for) Income Taxes

Our (provision for) benefit from income taxes consists of:


*($ in millions)*	2013		2012		2011
Current – U.S. Federal	$	(37)	$	(61)	$	(10)
– U.S. State		(5)		(9)		(1)
– Non-U.S.		(2)		(4)		(1)

		(44)		(74)		(12)

Deferred – U.S. Federal		(5)		43		55
– U.S. State		(1)		6		6
– Non-U.S.		(1)		1		(4)

		(7)		50		57

	$	(51)	$	(24)	$	45

Reconciliation of Unrecognized Tax Benefit

The following table reconciles our unrecognized tax benefit balance for each year from the beginning of 2011 to the end of 2013:


*($ in millions)*	2013		2012		2011
Unrecognized tax benefit at beginning of year	$	—	$	2	$	1
Change attributable to tax positions taken during a prior period		—		—		1
Decrease attributable to settlements with taxing authorities		—		(2)		—

Unrecognized tax benefit at end of year	$	—	$	—	$	2

Deferred Tax Assets and Liabilities

Total deferred tax assets and liabilities at January 3, 2014 and December 28, 2012 were as follows:


*($ in millions)*	At Year-End 2013		At Year-End 2012
Deferred tax assets	$	153	$	135
Deferred tax liabilities		(213)		(177)

Net deferred tax liability	$	(60)	$	(42)


*($ in millions)*	At Year-End 2013		At Year-End 2012
Inventory	$	(28)	$	(55)
Reserves		26		—
Deferred income		—		(1)
Property and equipment		(20)		(13)
Marriott Rewards customer loyalty program		15		10
Deferred sales of vacation ownership interests		(109)		(34)
Long lived intangible assets		35		38
Net operating loss carry-forwards		50		42
Other, net		28		26

Deferred tax (liability) asset		(3)		13
Less: Valuation allowance		(57)		(55)

Net deferred tax liability	$	(60)	$	(42)

Reconciliation of US Statutory Income Tax Rate to Effective Tax Rate

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


	2013		2012		2011
U.S. statutory income tax rate expense (benefit)		35.00%		35.00%		(35.00)%
U.S. state income taxes, net of U.S. federal tax benefit		3.48		4.63		(2.30)
Permanent differences⁽¹⁾		0.24		10.73		0.17
Non-U.S. income⁽²⁾		0.97		7.26		(3.87)
Other items		(2.28)		5.41		14.44
Change in valuation allowance⁽³⁾		1.82		17.05		5.97

Effective rate expense (benefit)		39.23%		80.08%		(20.59)%

⁽¹⁾	For 2013, primarily attributed to interest on mandatorily redeemable preferred stock of a consolidated subsidiary for 2013. For 2012, primarily attributed to interest on mandatorily redeemable preferred stock of a consolidated subsidiary and foreign income subject to U.S. tax.

⁽²⁾	Primarily attributed to the difference between U.S. and foreign income tax rates, partially offset by the benefit of tax holidays in certain jurisdictions.

⁽³⁾	Primarily attributed to establishment of valuation allowances in foreign jurisdictions for losses that cannot be benefited in the U.S. income tax provision as discussed above.

Vacation Ownership Notes Receivable (Tables)

12 Months Ended

Jan. 03, 2014

Composition of Vacation Ownership Notes Receivable Balances, Net of Reserves

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


*($ in millions)*	At Year-End 2013		At Year-End 2012
Vacation ownership notes receivable – securitized	$	719	$	727
Vacation ownership notes receivable – non-securitized
Eligible for securitization⁽¹⁾		73		127
Not eligible for securitization⁽¹⁾		178		202

Subtotal		251		329

Total vacation ownership notes receivable	$	970	$	1,056

⁽¹⁾	Refer to Footnote No. 4, “Financial Instruments,” for discussion of eligibility of our vacation ownership notes receivable.

Future Principal Payments, Net of Reserves, and Interest Rates of Vacation Ownership 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
2014	$	60	$	107	$	167
2015		34		108		142
2016		27		105		132
2017		22		96		118
2018		20		77		97
Thereafter		88		226		314

Balance at year-end 2013	$	251	$	719	$	970

Weighted average stated interest rate at year-end 2013		11.5%		12.9%		12.5%
Range of stated interest rates at year-end 2013		0.0% to 19.5%		4.9% to 18.7%		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)*	2013		2012		2011
Interest income associated with vacation ownership notes receivable – securitized	$	104	$	114	$	131
Interest income associated with vacation ownership notes receivable – non-securitized		31		31		30

Total interest income associated with vacation ownership notes receivable	$	135	$	145	$	161

Recorded Investment in Non-accrual 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 year-end 2013	$	69	$	8	$	77
Investment in notes receivable on non-accrual status at year-end 2012	$	73	$	11	$	84

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 January 3, 2014:


*($ in millions)*	Non-Securitized Vacation Ownership Notes Receivable		Securitized Vacation Ownership Notes Receivable		Total
31 – 90 days past due	$	12	$	22	$	34
91 – 150 days past due		7		8		15
Greater than 150 days past due		62		—		62

Total past due		81		30		111
Current		252		741		993

Total vacation ownership notes receivable	$	333	$	771	$	1,104

The following table shows the aging of the recorded investment in principal, before reserves, in vacation ownership notes receivable as of December 28, 2012:


($ in millions)	Non-Securitized Vacation Ownership Notes Receivable		Securitized Vacation Ownership Notes Receivable		Total
31 – 90 days past due	$	14	$	19	$	33
91 – 150 days past due		7		8		15
Greater than 150 days past due		66		3		69

Total past due		87		30		117
Current		335		751		1,086

Total vacation ownership notes receivable	$	422	$	781	$	1,203

Vacation Ownership

Notes Receivable Reserves

The following table summarizes the activity related to our vacation ownership notes receivable reserve for 2013, 2012 and 2011:


*($ in millions)*	Non-Securitized Vacation Ownership Notes Receivable Reserve		Securitized Vacation Ownership Notes Receivable Reserve		Total
Balance at year-end 2010	$	129	$	89	$	218
Provision for loan losses		20		18		38
Securitizations		(14)		14		—
Clean-up calls⁽¹⁾		2		(2)		—
Write-offs		(85)		—		(85)
Defaulted vacation ownership notes receivable repurchase activity⁽²⁾		52		(52)		—

Balance at year-end 2011		104		67		171
Provision for loan losses		19		23		42
Securitizations		(21)		21		—
Clean-up calls⁽¹⁾		18		(18)		—
Write-offs		(66)		—		(66)
Defaulted vacation ownership notes receivable repurchase activity⁽²⁾		39		(39)		—

Balance at year-end 2012		93		54		147
Provision for loan losses		28		8		36
Securitizations		(31)		31		—
Clean-up calls⁽¹⁾		14		(14)		—
Write-offs		(49)		—		(49)
Defaulted vacation ownership notes receivable repurchase activity⁽²⁾		27		(27)		—

Balance at year-end 2013	$	82	$	52	$	134

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

12 Months Ended

Jan. 03, 2014

Carrying Values and Estimated Fair Values of Financial Assets and Liabilities


	At Year-End 2013				At Year-End 2012
*($ in millions)*	Carrying Amount		Fair Value⁽¹⁾		Carrying Amount		Fair Value⁽¹⁾
Vacation ownership notes receivable – securitized	$	719	$	865	$	727	$	895
Vacation ownership notes receivable – non-securitized		251		267		329		361

Total financial assets	$	970	$	1,132	$	1,056	$	1,256

Non-recourse debt associated with vacation ownership notes receivable securitizations	$	(674)	$	(695)	$	(674)	$	(711)
Other debt		(4)		(4)		(4)		(4)
Mandatorily redeemable preferred stock of consolidated subsidiary		(40)		(44)		(40)		(46)
Liability for Marriott Rewards customer loyalty program		(114)		(110)		(159)		(150)
Other liabilities		(6)		(6)		(1)		(1)

Total financial liabilities	$	(838)	$	(859)	$	(878)	$	(912)

⁽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

The following table shows the bifurcation of our non-securitized vacation ownership notes receivable into those eligible and not eligible for securitization based upon the aforementioned eligibility criteria:


	At Year-End 2013				At Year-End 2012
*($ in millions)*	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Vacation ownership notes receivable — eligible for securitization	$	73	$	89	$	127	$	159
Vacation ownership notes receivable — not eligible for securitization		178		178		202		202

Total vacation ownership notes receivable — non-securitized	$	251	$	267	$	329	$	361

Earnings Per Share (Tables)

12 Months Ended

Jan. 03, 2014

Earnings Per Share [Abstract]

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

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.


*(in millions, except per share amounts)*	January 3, 2014⁽¹⁾		December 28, 2012⁽²⁾		December 30, 2011
Computation of Basic Earnings (Loss) Per Share
Net income (loss)	$	80	$	7	$	(172)
Weighted average shares outstanding		35.4		34.4		33.7

Basic earnings (loss) per share	$	2.25	$	0.19	$	(5.12)

Computation of Diluted Earnings (Loss) Per Share
Net income (loss)	$	80	$	7	$	(172)

Weighted average shares outstanding		35.4		34.4		33.7
Effect of dilutive securities
Employee stock options and SARs		0.7		1.00		—
Restricted stock units		0.5		0.80		—

Shares for diluted earnings (loss) per share		36.6		36.2		33.7

Diluted earnings (loss) per share	$	2.18	$	0.18	$	(5.12)

⁽¹⁾

⁽²⁾

Inventory (Tables)

12 Months Ended

Jan. 03, 2014

Inventory Disclosure [Abstract]

Composition of Inventory

The following table shows the composition of our inventory balances:


*($ in millions)*	At Year-End 2013		At Year-End 2012
Finished goods⁽¹⁾	$	369	$	491
Work-in-progress		151		50
Land and infrastructure⁽²⁾		344		340

Real estate inventory		864		881
Operating supplies and retail inventory		6		7

	$	870	$	888

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

⁽²⁾	Includes sales centers to be converted for future sale as vacation ownership products.

Property and Equipment (Tables)

12 Months Ended

Jan. 03, 2014

Property Plant And Equipment [Abstract]

Composition of Property and Equipment

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


*($ in millions)*	At Year-End 2013		At Year-End 2012
Land	$	144	$	145
Buildings and leasehold improvements		204		204
Furniture and equipment		56		58
Information technology		181		188
Construction in progress		11		9

		596		604
Accumulated depreciation		(342)		(343)

	$	254	$	261

Contingencies and Commitments (Tables)

12 Months Ended

Jan. 03, 2014

Commitments And Contingencies Disclosure [Abstract]

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


*($ in millions)*	Maximum Potential Amount of Future Fundings at Year-End 2013		Liability for Expected Future Fundings at Year-End 2013
Segment
Asia Pacific	$	13	$	—
North America		3		—

Total guarantees where we are the primary obligor	$	16	$	—

Summary of Future Obligations Under Operating Leases

We have summarized our future obligations under operating leases at January 3, 2014 below:


*($ in millions)*	Land Leases		Corporate Facilities Leases		Other Operating Leases		Total
Fiscal Year
2014	$	2	$	1	$	8	$	11
2015		2		3		6		11
2016		2		3		3		8
2017		2		4		2		8
2018		2		4		1		7
Thereafter		34		10		6		50

Total minimum lease payments	$	44	$	25	$	26	$	95

Composition of Rental Expense Associated with Operating Leases

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


*($ in millions)*	2013		2012		2011
Minimum rentals	$	9	$	10	$	10
Additional rentals		5		5		5

	$	14	$	15	$	15

Debt (Tables)

12 Months Ended

Jan. 03, 2014

Debt Disclosure [Abstract]

Debt Balances

The following table provides detail on our debt balances:


*($ in millions)*	At Year-End 2013		At Year-End 2012
Vacation ownership notes receivable securitizations, interest rates ranging from 2.2% to 7.2% (weighted average interest rate of 3.5%) ⁽¹⁾	$	674	$	674
Other		4		4

	$	678	$	678

⁽¹⁾	Interest rates are as of January 3, 2014.

Scheduled Future Principal Payments for Debt

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


*($ in millions)*	Vacation Ownership Notes Receivable Securitizations⁽¹⁾		Other Debt		Total
Debt Principal Payments Year
2014	$	112	$	—	$	112
2015		113		—		113
2016		109		—		109
2017		77		—		77
2018		58		—		58
Thereafter		205		4		209

Balance at January 3, 2014	$	674	$	4	$	678

⁽¹⁾	The debt associated with our vacation ownership notes receivable securitizations is non-recourse to us.

Other Liabilities (Tables)

12 Months Ended

Jan. 03, 2014

Other Liabilities Disclosure [Abstract]

Variable Change Impact on Valuation of Customer Loyalty Liability

The table below would have the following impact on the valuation of our customer loyalty liability at January 3, 2014:


*($ in millions)*
5 percent change in the cost per point	$	5
10 percent change in the cost per point	$	11
100 basis point change in the breakage rate	$	9
200 basis point change in the breakage rate	$	17

Shareholders' Equity (Tables)

12 Months Ended

Jan. 03, 2014

Equity [Abstract]

Stock Repurchase Activity under Current Stock Repurchase Program

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


*($ in millions, except per share amounts)*	Number of Shares Repurchased		Cost of Shares Repurchased		Average Price Paid per Share
As of December 28, 2012		—	$	—	$	—
For the year ended January 3, 2014		505,023		26		50.76

As of January 3, 2014		505,023	$	26	$	50.76

Share-Based Compensation (Tables)

12 Months Ended

Jan. 03, 2014

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

Additional Information on Outstanding RSUs Issued to Employees

The following table provides additional information on outstanding RSUs issued to our employees for the last three fiscal years:


	2013		2012		2011
Share-based compensation expense (in millions)⁽¹⁾	$	11	$	10	$	10
Weighted average grant-date fair value prior to Spin-Off (per share)		32		31		40
Weighted average grant-date fair value subsequent to Spin-Off (per share)⁽¹⁾		29		22		19
Aggregate intrinsic value of converted and distributed (in millions)		7		3		2

⁽¹⁾	Includes RSUs with performance based vesting criteria.

Changes in Marriott Vacations Worldwide RSUs Issued to Marriott International and Marriott Vacations Worldwide Employees

The following table shows the 2013 changes in Marriott Vacations Worldwide RSUs issued to Marriott International and Marriott Vacations Worldwide employees:


	2013
	Number of Shares		Weighted Average Grant Date Fair Value
Outstanding at year-end 2012		1,138,323	$	17
Granted during 2013⁽¹⁾		272,033		40
Distributed during 2013		(365,127)		13
Forfeited during 2013		(19,965)		23
Outstanding at year-end 2013		1,025,264	$	24

⁽¹⁾	Includes RSUs with performance based vesting criteria.

Changes in Outstanding Marriott Vacations Worldwide Stock Options for Marriott International and Marriott Vacations Worldwide Employees

The following table shows the 2013 changes in outstanding Marriott Vacations Worldwide stock options for Marriott International and Marriott Vacations Worldwide employees:


	2013
	Number of Shares		Weighted Average Exercise Price
Outstanding at year-end 2012		648,905	$	11
Granted during 2013		—		—
Exercised during 2013		(364,282)		11
Forfeited during 2013		—		—

Outstanding at year-end 2013		284,623	$	12

Marriott Vacations Worldwide Stock Options Issued to Marriott International and Marriott Vacations Worldwide Employees that were Outstanding and Exercisable


	Outstanding						Exercisable
Range of Exercise Prices	Number of Stock Options		Weighted Average Exercise Price		Weighted Average Remaining Life (in years)		Number of Stock Options		Weighted Average Exercise Price		Weighted Average Remaining Life (in years)
$ 8 to $12		204,687	$	10		1		204,687	$	10		1
$ 13 to $17		15,622		15		4		14,286		15		4
$ 18 to $22		60,498		19		1		60,498		19		1
$ 23 to $28		3,816		26		5		2,855		27		4
$ 8 to $28		284,623	$	12		1		282,326	$	12		1

Intrinsic Value of Outstanding Marriott International Stock Options and Exercisable Stock Options held by Employees

The following table shows the intrinsic value of outstanding Marriott International stock options and exercisable stock options held by our employees at year-end 2013 and 2012:


*($ in millions)*	2013		2012
Outstanding stock options	$	2	$	4
Exercisable stock options	$	2	$	4

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

The following table shows the 2013 changes in outstanding Marriott Vacations Worldwide SARs issued to both Marriott International and Marriott Vacations Worldwide employees and directors:


	2013
	Number of Shares		Weighted Average Exercise Price
Outstanding at year-end 2012		710,169	$ 18
Granted during 2013		66,422	40
Exercised during 2013		(32,342)	19
Forfeited during 2013		—	—

Outstanding at year-end 2013		744,249	$ 20

Assumptions Used to Estimate Fair Value of Grants

The following table outlines the assumptions used to estimate the fair value of grants for the fiscal year ended 2013 and 2012:


	2013	2012
Expected volatility	57.55%	54.3%
Dividend yield	0.00%	0.00%
Risk-free rate	1.02%	1.03%
Expected term (in years)	6.25	6.25


		2011
Expected volatility		32%
Dividend yield		0.73%
Risk-free interest rate		3.4%
Expected term (in years)		8

Variable Interest Entities (Tables)

12 Months Ended

Jan. 03, 2014

Classifications of Consolidated VIE Assets and Liabilities


*($ in millions)*	Vacation Ownership Notes Receivable Securitizations		Warehouse Credit Facility		Total
Consolidated Assets:
Vacation ownership notes receivable, net of reserves	$	719	$	—	$	719
Interest receivable		5		—		5
Restricted cash		34		—		34

Total	$	758	$	—	$	758

Consolidated Liabilities:
Interest payable	$	1	$	—	$	1
Debt		674		—		674

Total	$	675	$	—	$	675

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 2013:


*($ in millions)*	Vacation Ownership Notes Receivable Securitizations		Warehouse Credit Facility		Total
Interest income	$	97	$	7	$	104
Interest expense to investors	$	25	$	2	$	27
Debt issuance cost amortization	$	3	$	1	$	4

Vacation Ownership Notes Receivable Securitizations

Cash Flows Between Company and Variable Interest Entities

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


*($ in millions)*	2013		2012
Cash inflows:
Net proceeds from vacation ownership notes receivable securitization	$	246	$	233
Principal receipts		180		188
Interest receipts		97		107

Total		523		528

Cash outflows:
Principal to investors		(172)		(184)
Voluntary repurchases of defaulted vacation ownership notes receivable		(27)		(37)
Voluntary retirement clean-up call		(51)		(72)
Interest to investors		(26)		(34)

Total		(276)		(327)

Net Cash Flows	$	247	$	201

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:


*($ in millions)*	2013		2012
Cash inflows:
Net proceeds from vacation ownership notes receivable securitization	$	109	$	—
Principal receipts		16		16
Interest receipts		7		9
Reserve release		1		1

Total		133		26

Cash outflows:
Principal to investors		(13)		(15)
Voluntary repurchases of defaulted vacation ownership notes receivable		—		(2)
Repayment of Warehouse Credit Facility		(98)		(101)
Interest to investors		(2)		(2)

Total		(113)		(120)

Net Cash Flows	$	20	$	(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.

Composition of Impairment Charges

Impairment Charges (Tables)

12 Months Ended

Jan. 03, 2014

Text Block [Abstract]


*($ in millions)*	2013⁽¹⁾		2012		2011
Impairment Charge
Inventory impairment	$	—	$	—	$	251
Property and equipment impairment		1		—		73

Total impairment charge	$	1	$	—	$	324

⁽¹⁾	The 2013 impairment charge related to a leased golf course in our Europe segment.

2011 Impairment Charges

We incurred total impairment charges during 2011 as follows:


*($ in millions)*	North America Segment		Europe Segment		Corporate and Other		Total
Impairment Charge
Inventory impairment	$	111	$	2	$	138	$	251
Property and equipment impairment		6		—		67		73

Total impairment charge	$	117	$	2	$	205	$	324

Business Segments (Tables)

12 Months Ended

Jan. 03, 2014

Segment Reporting [Abstract]

Revenues

Revenues


*($ in millions)*	2013		2012		2011
North America	$	1,545	$	1,444	$	1,403
Europe		141		112		129
Asia Pacific		64		83		92

Total segment revenues		1,750		1,639		1,624
Corporate and other		—		—		—

	$	1,750	$	1,639	$	1,624

Net Income (Loss)

Net Income (Loss)


*($ in millions)*	2013		2012		2011
North America	$	342	$	266	$	139
Europe		18		2		10
Asia Pacific		8		4		4

Total segment financial results		368		272		153
Corporate and other		(237)		(241)		(370)
(Provision) benefit for income taxes		(51)		(24)		45

	$	80	$	7	$	(172)

Equity in Earnings of Equity Method Investees

Equity in Earnings of Equity Method Investees


*($ in millions)*	2013		2012		2011
Asia Pacific	$	—	$	1	$	—

	$	—	$	1	$	—

Depreciation

Depreciation


*($ in millions)*	2013		2012		2011
North America	$	10	$	12	$	13
Europe		2		2		3
Asia Pacific		—		—		1

Total segment depreciation		12		14		17
Corporate and other		11		16		16

	$	23	$	30	$	33

Assets

Assets


*($ in millions)*	At Year-End 2013		At Year-End 2012
North America	$	2,125	$	2,223
Europe		103		122
Asia Pacific		84		85

Total segment assets		2,312		2,430
Corporate and other		320		183

	$	2,632	$	2,613

Equity Method Investments

Equity Method Investments


*($ in millions)*	At Year-End 2013		At Year-End 2012
Asia Pacific	$	1	$	1

Capital Expenditures (including inventory)

Capital Expenditures (including inventory)


($ in millions)	2013		2012		2011
North America	$	167	$	118	$	118
Europe		5		4		5
Asia Pacific		8		11		3

Total segment capital expenditures		180		133		126
Corporate and other		8		5		9

	$	188	$	138	$	135

Quarterly Results (Tables)

12 Months Ended

Jan. 03, 2014

Quarterly Financial Information Disclosure [Abstract]

Schedule of Quarterly Financial Information


	Fiscal Year 2013^(1)(2)(3)
($ in millions, except per share data)	First Quarter		Second Quarter		Third Quarter		Fourth Quarter		Fiscal Year
Revenues	$	390	$	421	$	412	$	527	$	1,750

Expenses	$	(358)	$	(373)	$	(370)	$	(505)	$	(1,606)

Net income	$	19	$	30	$	25	$	6	$	80

Basic earnings per share	$	0.53	$	0.87	$	0.70	$	0.16	$	2.25

Diluted earnings per share	$	0.51	$	0.85	$	0.67	$	0.15	$	2.18


	Fiscal Year 2012^(1)(2)(3)
($ in millions, except per share data)	First Quarter		Second Quarter		Third Quarter		Fourth Quarter		Fiscal Year
Revenues	$	374	$	383	$	383	$	499	$	1,639

Expenses	$	(355)	$	(372)	$	(362)	$	(514)	$	(1,603)

Net income (loss)	$	8	$	5	$	5	$	(11)	$	7

Basic earnings (loss) per share	$	0.23	$	0.16	$	0.13	$	(0.33)	$	0.19

Diluted earnings (loss) per share	$	0.22	$	0.15	$	0.12	$	(0.33)	$	0.18

⁽¹⁾	The quarters consisted of 12 weeks, except for the fourth quarter of 2013, which consisted of 17 weeks and the fourth quarter of 2012, which consisted of 16 weeks.

⁽²⁾	The sum of the earnings per share for the four quarters differs from annual earnings per share due to the required method of computing the weighted average shares in interim periods.

⁽³⁾	The quarterly results have been restated to correct certain prior period errors as discussed in Footnote No. 1, “Summary of Significant Accounting Policies.”

Summary of Significant Accounting Policies - Additional Information (Detail) $ in Millions	12 Months Ended
	Jan. 03, 2014 USD ($) Property Location Segment Line	Dec. 28, 2012 USD ($)	Dec. 30, 2011 USD ($)	Nov. 21, 2011 shares	Dec. 31, 2010 USD ($)
Significant Accounting Policies [Line Items]
Number of business segments \| Segment	3
Number of properties \| Property	62
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 \| shares				1
Spin-off distribution ratio, spinnor shares held \| shares				10
Percent of the assets, liabilities, revenues, expenses and cash flows discussed	100.00%
Number of weeks in the last three fiscal years	53	52	52
Reduction in equity related to the Spin-Off	$ 600
Length of commercial agreements entered with Marriott International in connection with the Spin-Off	1 year
Description of the impact of the adjustment on previously reported cash flows and balance sheet	The adjustments necessary to correct all of these errors have no impact on previously reported cash flows from operations and do not have a material impact on our balance sheet as of any date.
Cumulative impact of restatement on reported net income tax					$ 9
Management fee revenues	$ 70	$ 67	$ 63
Contractual financing term	10 years
Payment period	30 days
Increase in carrying value of inventories	$ 18	30	2
Capitalized salaries and related costs	7	8	11
Defined contribution plan compensation expense (net of cost reimbursements from property owners' associations) participating employees	$ 6	$ 5	6
Annual rate of return	5.40%	5.40%
Additional discretionary contributions	$ 0	$ 0
Rewards points, payment days	120 days
Allowances for accounts and contracts receivable	$ 1	$ 2
Period in which loan considered past due	30 days
Period in which loan suspend accrual of interest	90 days
Period in which loan considered default loan	150 days
Notes receivable estimated average remaining default rates	7.13%	7.42%
Estimated default rate increases that would have resulted an increase in allowance for credit losses	0.50%
Allowance for loan losses that would have been increased	$ 5	$ 6
Stock awards, vesting period	4 years
Advertising costs	$ 2	2	3
Financial Services Revenue
Significant Accounting Policies [Line Items]
Fee revenues	6	6	7
Resort
Significant Accounting Policies [Line Items]
Fee revenues	27	24	17
Other Assets
Significant Accounting Policies [Line Items]
Deferred marketing and selling expenses, which are direct marketing and selling costs related either to an unclosed contract or a contract for which 100 percent of revenue has not yet been recognized	$ 4	6
Leasehold Improvements
Significant Accounting Policies [Line Items]
Amortization period	We amortize leasehold improvements over the shorter of the asset life or lease term.
Pre Spin Off
Significant Accounting Policies [Line Items]
Defined contribution plan compensation expense (net of cost reimbursements from property owners' associations) participating employees			5
Subsequent to Spin - Off
Significant Accounting Policies [Line Items]
Defined contribution plan compensation expense (net of cost reimbursements from property owners' associations) participating employees			1
Minimum
Significant Accounting Policies [Line Items]
Payment period	30 days
Estimated useful lives of the assets	3 years
Ownership interest in equity method investments	34.00%
Maximum
Significant Accounting Policies [Line Items]
Payment period	60 days
Additional discretionary contributions			$ 1
Estimated useful lives of the assets	40 years
Highly liquid investments maturity period	3 months
Ownership interest in equity method investments	50.00%
Real Estate and in Substance Real Estate
Significant Accounting Policies [Line Items]
Number of business segments \| Segment	3
Warehouse Credit Facility
Significant Accounting Policies [Line Items]
Line of credit facility, maximum borrowing capacity	$ 250
Operations located outside the United States
Significant Accounting Policies [Line Items]
Number of countries and territories in which company operates \| Location	9
Europe
Significant Accounting Policies [Line Items]
Cumulative impact of restatement on reported net income	$ 11	$ (12)
Sales rescinded	$ 1

Each Reference to Particular Year in Financial Statements Means Fiscal Year Ended on Date Shown (Detail)	12 Months Ended
	Jan. 03, 2014	Dec. 28, 2012	Dec. 30, 2011
Accounting Policies [Abstract]
Fiscal Year-End Date	Jan. 03, 2014	Dec. 28, 2012	Dec. 30, 2011

Summary of Restatement of Previously Reported Financial Statements (Detail) - USD ($)
$ / shares in Units, $ in Millions

3 Months Ended

4 Months Ended

12 Months Ended

Sep. 06, 2013

^[3],[4],[5]

Jun. 14, 2013

^[3],[4],[5]

Mar. 22, 2013

^[3],[4],[5]

Sep. 07, 2012

^[3],[4],[5]

Jun. 15, 2012

^[3],[4],[5]

Mar. 23, 2012

^[3],[4],[5]

Jan. 03, 2014

Dec. 28, 2012

Jan. 03, 2014

Dec. 28, 2012

Dec. 30, 2011

Dec. 31, 2010

Error Corrections and Prior Period Adjustments Restatement [Line Items]

Retained earnings (deficit)

$ 870

$ 888

$ 870

$ 888

Other

143

137

143

137

Total Assets

2,632

2,613

2,632

2,613

Advance deposits

Deferred taxes

TOTAL LIABILITIES

1,423

1,474

1,423

1,474

TOTAL EQUITY

1,209

1,139

1,209

1,139

$ 1,131

$ 1,895

TOTAL LIABILITIES AND EQUITY

$ 2,632

$ 2,613

2,632

2,613

672

618

627

385

362

349

1,750

1,639

1,624

214

203

239

316

329

341

385

362

349

1,606

1,603

1,847

131

(217)

(51)

(24)

$ 80

^[1]

$ 7

^[2]

$ (172)

$ 0.70

$ 0.87

$ 0.53

$ 0.13

$ 0.16

$ 0.23

$ 0.16

^[3],[4],[5]

$ (0.33)

^[3],[4],[5]

$ 2.25

^{[1],[3],[4],[5]}

$ 0.19

^{[2],[3],[4],[5]}

$ (5.12)

Error Corrections and Prior Period Adjustments Restatement [Line Items]

$ 0.67

$ 0.85

$ 0.51

$ 0.12

$ 0.15

$ 0.22

$ 0.15

^[3],[4],[5]

$ (0.33)

^[3],[4],[5]

$ 2.18

^{[1],[3],[4],[5]}

$ 0.18

^{[2],[3],[4],[5]}

$ (5.12)

As Previously Reported

$ 881

135

2,604

1,453

Retained earnings (deficit)

TOTAL EQUITY

1,151

TOTAL LIABILITIES AND EQUITY

2,604

627

^[6]

$ 634

331

1,648

^[6]

1,613

205

^[6]

242

330

^[6]

342

331

1,606

^[6]

1,833

^[6]

(214)

(21)

^[6]

$ 16

^[6]

$ (178)

$ 0.46

^[6]

$ (5.29)

Error Corrections and Prior Period Adjustments Restatement [Line Items]

$ 0.44

^[6]

$ (5.29)

Adjustment

$ 7

(1)

Retained earnings (deficit)

(12)

TOTAL EQUITY

(12)

TOTAL LIABILITIES AND EQUITY

$ 9

(9)

$ (7)

(9)

(2)

(3)

(1)

(3)

(6)

(3)

(3)

$ (9)

$ 6

$ (0.27)

$ 0.17

$ (0.26)

$ 0.17

[1]	The computations of diluted earnings per share exclude approximately 229,000 shares of common stock, the maximum number of shares issuable as of January 3, 2014 upon the vesting of certain performance-based awards, because the performance conditions required for such shares to vest were not achieved by the end of the reporting period.
[2]	The computations of diluted earnings per share exclude approximately 157,000 shares of common stock, the maximum number of shares issuable as of December 28, 2012 upon the vesting of certain performance-based awards, because the performance conditions required for such shares to vest were not achieved by the end of the reporting period.
[3]	The quarterly results have been restated to correct certain prior period errors as discussed in Footnote No. 1, "Summary of Significant Accounting Policies."
[4]	The quarters consisted of 12 weeks, except for the fourth quarter of 2013, which consisted of 17 weeks and the fourth quarter of 2012, which consisted of 16 weeks.
[5]	The sum of the earnings per share for the four quarters differs from annual earnings per share due to the required method of computing the weighted average shares in interim periods.
[6]	As previously reported amounts include interest expense amounts that have been reclassified as consumer financing interest expense to conform to our 2013 presentation.

Income Taxes - Additional Information (Detail)
$ in Millions

12 Months Ended

Jan. 03, 2014

USD ($)

Dec. 28, 2012

USD ($)

Dec. 30, 2011

USD ($)

Dec. 31, 2010

USD ($)

Employee share-based awards from which tax provision not reflected in current tax provision

^[1]

$ (21)

$ 3

Change in valuation allowance

$ 2

$ 13

Income tax holiday expiration year

2034

Aggregate income tax incurred without tax holidays

$ 2

Income Tax Examination Description

We have joined in the Marriott International U.S. Federal tax consolidated filing for periods 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 related to the timeshare business for the tax years through the Spin-Off.

Unrecognized tax benefits

$ 1

Unrecognized tax benefits increase decrease

(2)

Net operating losses carry forwards expiration year

2013

Taxes paid

$ 29

Non United States Subsidiaries

Cumulative unremitted earnings

Foreign

Net operating loss carry forwards

197

Federal

Net operating loss carry forwards

State

Net operating loss carry forwards

$ 1

Maximum

Employee share-based awards from which tax provision not reflected in current tax provision

Income tax holiday period | yr

Unrecognized tax benefits

$ 1

Unrecognized tax benefits increase decrease

Unrecognized tax benefits income tax penalties and interest accrued

$ 1

Minimum

Income tax holiday period | yr

Marriott International

Increase/(decrease) in deferred tax liabilities

Marriott International | Based upon completed valuations

(12)

Increase/(decrease) in deferred tax liabilities

(8)

Marriott International | Based upon further valuations

Increase/(decrease) in deferred tax liabilities

U.S. statutory income tax rate expense (benefit)

$ (12)

[1]	Primarily consists of an adjustment to Deferred tax liabilities for changes in the valuation of Marriott Vacations Worldwide at the time of the Spin-Off, an adjustment to a receivable from Marriott International and other adjustments to the Deferred tax liabilities at the time of Spin-Off.

Income (Loss) Before Provision of Income Taxes by Geographic Region (Detail) - USD ($) $ in Millions	12 Months Ended
	Jan. 03, 2014	Dec. 28, 2012	Dec. 30, 2011
Income Tax Disclosure [Abstract]
United States	$ 125	$ 44	$ (129)
Non-U.S. jurisdictions	6	(13)	(88)
INCOME (LOSS) BEFORE INCOME TAXES	$ 131	$ 31	$ (217)

Benefit from (Provision for) Income Taxes (Detail) - USD ($) $ in Millions	12 Months Ended
	Jan. 03, 2014	Dec. 28, 2012	Dec. 30, 2011
Income Tax Disclosure [Abstract]
Current - U.S. Federal	$ (37)	$ (61)	$ (10)
- U.S. State	(5)	(9)	(1)
- Non-U.S.	(2)	(4)	(1)
Current Income Tax Expense (Benefit)	(44)	(74)	(12)
Deferred - U.S. Federal	(5)	43	55
- U.S. State	(1)	6	6
- Non-U.S.	(1)	1	(4)
Deferred income taxes	(7)	50	57
(Provision) benefit for income taxes	$ (51)	$ (24)	$ 45

Reconciliation of Unrecognized Tax Benefit (Detail) - USD ($) $ in Millions	12 Months Ended
	Jan. 03, 2014	Dec. 28, 2012	Dec. 30, 2011
Income Tax Disclosure [Abstract]
Unrecognized tax benefit at beginning of year		$ 2	$ 1
Change attributable to tax positions taken during a prior period			1
Decrease attributable to settlements with taxing authorities		(2)
Unrecognized tax benefit at end of year			$ 2

Total Deferred Tax Assets and Liabilities (Detail) - USD ($) $ in Millions	Jan. 03, 2014	Dec. 28, 2012
Income Tax Disclosure [Abstract]
Deferred tax assets	$ 153	$ 135
Deferred tax liabilities	(213)	(177)
Net deferred tax liability	$ (60)	$ (42)

Tax Effect of Each Type of Temporary Difference and Carry-Forward that Gives Rise to Significant Portion of Deferred Tax Assets and Liabilities (Detail) - USD ($) $ in Millions	Jan. 03, 2014	Dec. 28, 2012
Income Tax Disclosure [Abstract]
Inventory	$ (28)	$ (55)
Reserves	26
Deferred income		(1)
Property and equipment	(20)	(13)
Marriott Rewards customer loyalty program	15	10
Deferred sales of vacation ownership interests	(109)	(34)
Long lived intangible assets	35	38
Net operating loss carry-forwards	50	42
Other, net	28	26
Deferred tax (liability) asset	(3)	13
Less: Valuation allowance	(57)	(55)
Net deferred tax liability	$ (60)	$ (42)

Reconciliation of US Statutory Income Tax Rate to Effective Tax Rate (Detail)

12 Months Ended

Jan. 03, 2014

Dec. 28, 2012

Dec. 30, 2011

Income Tax Disclosure [Abstract]

35.00%

(35.00%)

U.S. state income taxes, net of U.S. federal tax benefit

3.48%

4.63%

(2.30%)

Permanent differences

^[1]

0.24%

10.73%

0.17%

Non-U.S. income

^[2]

0.97%

7.26%

(3.87%)

Other items

(2.28%)

5.41%

14.44%

Change in valuation allowance

^[3]

1.82%

17.05%

5.97%

Effective rate expense (benefit)

39.23%

80.08%

(20.59%)

[1]	For 2013, primarily attributed to interest on mandatorily redeemable preferred stock of a consolidated subsidiary for 2013. For 2012, primarily attributed to interest on mandatorily redeemable preferred stock of a consolidated subsidiary and foreign income subject to U.S. tax.
[2]	Primarily attributed to the difference between U.S. and foreign income tax rates, partially offset by the benefit of tax holidays in certain jurisdictions.
[3]	Primarily attributed to establishment of valuation allowances in foreign jurisdictions for losses that cannot be benefited in the U.S. income tax provision as discussed above.

Composition of Vacation Ownership Notes Receivable Balances, Net of Reserves (Detail) - USD ($)
$ in Millions

Jan. 03, 2014

Dec. 28, 2012

Accounts, Notes, Loans and Financing Receivable [Line Items]

Securitized Vacation Ownership Notes Receivable

$ 970

$ 1,056

Accounts, Notes, Loans and Financing Receivable [Line Items]

Eligible for Securitization

719

727

Accounts, Notes, Loans and Financing Receivable [Line Items]

Not Eligible for Securitization

^[1]

127

Accounts, Notes, Loans and Financing Receivable [Line Items]

Non-Securitized Vacation Ownership Notes Receivable

^[1]

178

202

Accounts, Notes, Loans and Financing Receivable [Line Items]

Financing Receivable, Allowance for Credit Losses [Line Items]

$ 251

$ 329

[1]	Refer to Footnote No. 4, "Financial Instruments," for discussion of eligibility of our vacation ownership notes receivable.

Future Principal Payments, Net of Reserves, and Interest Rates of Vacation Ownership Notes Receivable (Detail) $ in Millions	Jan. 03, 2014 USD ($)
Future Minimum Payments Receivable [Line Items]
2014	$ 167
2015	142
2016	132
2017	118
2018	97
Thereafter	314
Notes receivable	$ 970
Weighted average stated interest rate	12.50%
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]
2014	$ 60
2015	34
2016	27
2017	22
2018	20
Thereafter	88
Notes receivable	$ 251
Weighted average stated interest rate	11.50%
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]
2014	$ 107
2015	108
2016	105
2017	96
2018	77
Thereafter	226
Notes receivable	$ 719
Weighted average stated interest rate	12.90%
Range of stated interest rates, minimum	4.90%
Range of stated interest rates, maximum	18.70%

Interest Income Associated With Vacation Ownership Notes Receivable (Detail) - USD ($) $ in Millions	12 Months Ended
	Jan. 03, 2014	Dec. 28, 2012	Dec. 30, 2011
Accounts, Notes, Loans and Financing Receivable [Line Items]
Interest income associated with vacation ownership notes receivable	$ 135	$ 145	$ 161
Securitized Vacation Ownership Notes Receivable
Accounts, Notes, Loans and Financing Receivable [Line Items]
Interest income associated with vacation ownership notes receivable	104	114	131
Non-Securitized Vacation Ownership Notes Receivable
Accounts, Notes, Loans and Financing Receivable [Line Items]
Interest income associated with vacation ownership notes receivable	$ 31	$ 31	$ 30

Notes Receivable Reserves (Detail) - USD ($)
$ in Millions

12 Months Ended

Jan. 03, 2014

Dec. 28, 2012

Dec. 30, 2011

Beginning Balance

$ 147

$ 171

$ 218

Defaulted vacation ownership notes receivable repurchase activity

Securitizations

Clean-up calls

^[1]

Write-offs

(49)

(66)

(85)

^[2]

Ending Balance

134

147

171

Non-Securitized Vacation Ownership Notes Receivable

Financing Receivable, Allowance for Credit Losses [Line Items]

Beginning Balance

104

129

Defaulted vacation ownership notes receivable repurchase activity

Securitizations

(31)

(21)

(14)

Clean-up calls

^[1]

Write-offs

(49)

(66)

(85)

^[2]

Ending Balance

104

Securitized Vacation Ownership Notes Receivable

Financing Receivable, Allowance for Credit Losses [Line Items]

Beginning Balance

Defaulted vacation ownership notes receivable repurchase activity

Securitizations

Clean-up calls

^[1]

(14)

(18)

(2)

Write-offs

^[2]

(27)

(39)

(52)

Ending Balance

$ 52

$ 54

$ 67

[1]	Refers to our voluntary repurchase of previously securitized non-defaulted vacation ownership notes receivable to retire outstanding vacation ownership 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.

Recorded Investment in Non-accrual Notes Receivable that are Ninety Days or More Past Due (Detail) - USD ($) $ in Millions	Jan. 03, 2014	Dec. 28, 2012
Financing Receivable, Recorded Investment, Past Due [Line Items]
Investment in notes receivable on non-accrual status	$ 77	$ 84
Non-Securitized Vacation Ownership Notes Receivable
Financing Receivable, Recorded Investment, Past Due [Line Items]
Investment in notes receivable on non-accrual status	69	73
Securitized Vacation Ownership Notes Receivable
Financing Receivable, Recorded Investment, Past Due [Line Items]
Investment in notes receivable on non-accrual status	$ 8	$ 11

Aging of Recorded Investment in Principal, Before Reserves, in Vacation Ownership Notes Receivable (Detail) - USD ($) $ in Millions	Jan. 03, 2014	Dec. 28, 2012
Financing Receivable, Recorded Investment, Past Due [Line Items]
31 - 90 days past due	$ 34	$ 33
91 - 150 days past due	15	15
Greater than 150 days past due	62	69
Total past due	111	117
Current	993	1,086
Total vacation ownership notes receivable	1,104	1,203
Non-Securitized Vacation Ownership Notes Receivable
Financing Receivable, Recorded Investment, Past Due [Line Items]
31 - 90 days past due	12	14
91 - 150 days past due	7	7
Greater than 150 days past due	62	66
Total past due	81	87
Current	252	335
Total vacation ownership notes receivable	333	422
Securitized Vacation Ownership Notes Receivable
Financing Receivable, Recorded Investment, Past Due [Line Items]
31 - 90 days past due	22	19
91 - 150 days past due	8	8
Greater than 150 days past due		3
Total past due	30	30
Current	741	751
Total vacation ownership notes receivable	$ 771	$ 781

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

Jan. 03, 2014

Dec. 28, 2012

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

$ 970

$ 1,056

Mandatorily redeemable preferred stock of consolidated subsidiary

(678)

(40)

Liability for Marriott Rewards customer loyalty program

(114)

(159)

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

(31)

(38)

Other Debt

Securitized Vacation Ownership Notes Receivable

(4)

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

Non-Securitized Vacation Ownership Notes Receivable

719

727

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

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

251

329

Carrying Amount

970

1,056

Mandatorily redeemable preferred stock of consolidated subsidiary

(678)

(40)

Liability for Marriott Rewards customer loyalty program

(114)

(159)

Total financial liabilities

(6)

(1)

(838)

(878)

Carrying Amount | Non-Recourse Debt

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

Carrying Amount | Other Debt

^[1]

(674)

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

Carrying Amount | Securitized Vacation Ownership Notes Receivable

(4)

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

Carrying Amount | Non-Securitized Vacation Ownership Notes Receivable

719

727

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

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

251

329

Fair Value

Mandatorily redeemable preferred stock of consolidated subsidiary

^[2]

1,132

1,256

^[2]

(44)

(46)

Liability for Marriott Rewards customer loyalty program

^[2]

(110)

(150)

Total financial liabilities

^[2]

(6)

(1)

^[2]

(859)

(912)

Fair Value | Non-Recourse Debt

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

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

^[2]

(695)

(711)

Fair Value | Other Debt

Fair Value | Securitized Vacation Ownership Notes Receivable

^[2]

(4)

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

Fair Value | Non-Securitized Vacation Ownership Notes Receivable

^[2]

865

895

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

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

^[2]

$ 267

$ 361

[1]	Interest rates are as of January 3, 2014.
[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

Jan. 03, 2014

Dec. 28, 2012

Non-Securitized Vacation Ownership Notes Receivable

$ 970

$ 1,056

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

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

251

329

Carrying Amount

Carrying Amount | Non-Securitized Vacation Ownership Notes Receivable

970

1,056

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

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

251

329

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

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

127

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

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

178

202

Fair Value

Fair Value | Non-Securitized Vacation Ownership Notes Receivable

^[1]

1,132

1,256

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

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

^[1]

267

361

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

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

159

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

$ 178

$ 202

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

Acquisitions and Dispositions - Additional Information (Detail) - USD ($) $ in Millions	12 Months Ended
	Jan. 03, 2014	Dec. 28, 2012	Dec. 30, 2011
Significant Acquisitions and Disposals [Line Items]
Cash consideration for business acquisition	$ 2	$ 18
Net cash proceed from the sale of land		5	$ 17
Gain on sale of land		8	$ 2
Amount paid to during the year for vacation ownership units		7
Deposit included in consideration		11
Sale of property		34
Liabilities assumed		$ 29
Multi-family parcel
Significant Acquisitions and Disposals [Line Items]
Net cash proceed from the sale of land	2
Multi-family parcel \| Maximum
Significant Acquisitions and Disposals [Line Items]
Gain on sale of land	$ 1

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

11 Months Ended

12 Months Ended

Nov. 21, 2011

Jan. 03, 2014

Dec. 28, 2012

Dec. 30, 2011

Shares used in computing basic income per share

Common stock, par value

$ 0.01

33,700,000

35,400,000

^[1]

34,400,000

^[2]

33,700,000

Stock Appreciation Rights (SARs)

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

2,127

Stock Appreciation Rights (SARs) | Minimum

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

$ 32.74

Stock Appreciation Rights (SARs) | Maximum

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

$ 40.97

Marriott International

Distribution of common stock to the shareholders of Marriott International

33,700,000

Common stock, par value

$ 0.01

[1]	The computations of diluted earnings per share exclude approximately 229,000 shares of common stock, the maximum number of shares issuable as of January 3, 2014 upon the vesting of certain performance-based awards, because the performance conditions required for such shares to vest were not achieved by the end of the reporting period.
[2]	The computations of diluted earnings per share exclude approximately 157,000 shares of common stock, the maximum number of shares issuable as of December 28, 2012 upon the vesting of certain performance-based awards, because the performance conditions required for such shares to vest were not achieved by the end of the reporting period.

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

3 Months Ended

4 Months Ended

11 Months Ended

12 Months Ended

Sep. 06, 2013

^[3],[4],[5]

Jun. 14, 2013

^[3],[4],[5]

Mar. 22, 2013

^[3],[4],[5]

Sep. 07, 2012

^[3],[4],[5]

Jun. 15, 2012

^[3],[4],[5]

Mar. 23, 2012

^[3],[4],[5]

Jan. 03, 2014

^[3],[4],[5]

Dec. 28, 2012

^[3],[4],[5]

Nov. 21, 2011

Jan. 03, 2014

^[1]

Dec. 28, 2012

^[2]

Dec. 30, 2011

Computation of Basic Earnings (Loss) Per Share

Weighted average shares outstanding

$ 80

$ 7

$ (172)

33,700

35,400

34,400

33,700

Computation of Diluted Earnings (Loss) Per Share

$ 0.70

$ 0.87

$ 0.53

$ 0.13

$ 0.16

$ 0.23

$ 0.16

$ (0.33)

$ 2.25

^[3],[4],[5]

$ 0.19

^[3],[4],[5]

$ (5.12)

Weighted average shares outstanding

$ 80

$ 7

$ (172)

33,700

35,400

34,400

33,700

Effect of dilutive securities

Employee stock options and SARs

700

1,000

Restricted stock units

500

800

Shares for diluted earnings (loss) per share

36,600

36,200

33,700

Operating supplies and retail inventory

$ 0.67

$ 0.85

$ 0.51

$ 0.12

$ 0.15

$ 0.22

$ 0.15

$ (0.33)

$ 2.18

^[3],[4],[5]

$ 0.18

^[3],[4],[5]

$ (5.12)

[1]	The computations of diluted earnings per share exclude approximately 229,000 shares of common stock, the maximum number of shares issuable as of January 3, 2014 upon the vesting of certain performance-based awards, because the performance conditions required for such shares to vest were not achieved by the end of the reporting period.
[2]	The computations of diluted earnings per share exclude approximately 157,000 shares of common stock, the maximum number of shares issuable as of December 28, 2012 upon the vesting of certain performance-based awards, because the performance conditions required for such shares to vest were not achieved by the end of the reporting period.
[3]	The quarterly results have been restated to correct certain prior period errors as discussed in Footnote No. 1, "Summary of Significant Accounting Policies."
[4]	The quarters consisted of 12 weeks, except for the fourth quarter of 2013, which consisted of 17 weeks and the fourth quarter of 2012, which consisted of 16 weeks.
[5]	The sum of the earnings per share for the four quarters differs from annual earnings per share due to the required method of computing the weighted average shares in interim periods.

Reconciliation of Earnings and Number of Shares Used in Calculation of Basic and Diluted Earnings Per Share (Parenthetical) (Detail) - shares	12 Months Ended
	Jan. 03, 2014	Dec. 28, 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)	229,000	157,000

Composition of Inventory (Detail) - USD ($)
$ in Millions

Jan. 03, 2014

Dec. 28, 2012

Inventory Disclosure [Abstract]

Finished goods

^[1]

$ 369

$ 491

Work-in-progress

151

Land and infrastructure

^[2]

344

340

Real estate inventory

864

881

$ 870

$ 888

[1]	Represents completed inventory that is either registered for sale as vacation ownership interests, or unregistered and available for sale in its current form.
[2]	Includes sales centers to be converted for future sale as vacation ownership products.

Inventory - Additional Information (Detail) - USD ($) $ in Millions	12 Months Ended
	Jan. 03, 2014	Dec. 28, 2012	Dec. 30, 2011
Inventory
Inventory Disclosure [Line Items]
Interest cost capitalized	$ 4	$ 3	$ 7

Composition of Property and Equipment (Detail) - USD ($) $ in Millions	Jan. 03, 2014	Dec. 28, 2012
Property Plant And Equipment [Abstract]
Land	$ 144	$ 145
Buildings and leasehold improvements	204	204
Furniture and equipment	56	58
Information technology	181	188
Construction in progress	11	9
Property, plant and equipment, gross	596	604
Accumulated depreciation	(342)	(343)
Property, plant and equipment, net	$ 254	$ 261

Property and Equipment - Additional Information (Detail) - USD ($) $ in Millions	12 Months Ended
	Jan. 03, 2014	Dec. 28, 2012	Dec. 30, 2011
Property, Plant and Equipment [Line Items]
Depreciation	$ 23	$ 30	$ 33
Property And Equipment \| Maximum
Property, Plant and Equipment [Line Items]
Interest costs capitalized	$ 1	$ 1	$ 1

Contingencies and Commitments - Additional Information (Detail) € in Millions, $ in Millions	1 Months Ended		12 Months Ended
	Jan. 30, 2013 Plaintiff	Dec. 21, 2012 LegalMatter	Jan. 03, 2014 USD ($) Property	Dec. 28, 2012 USD ($) LegalMatter	Dec. 30, 2011 USD ($)	Jan. 03, 2014 EUR (€) Property
Commitments and Contingencies Disclosure [Line Items]
Surety bonds issued			$ 84
Letters of credit outstanding			1
Litigation settlement, expense			4	$ 41	$ 3
Reversal of litigation charge			1
Number of settled lawsuits in which certain subsidiaries were defendants \| LegalMatter		3		2
Number of plaintiffs in lawsuits \| Plaintiff	12
Notes receivable due from the entity					$ 20
Future lease payments accrued as restructuring charges expected to be paid			$ 2
Golf Land Leases
Commitments and Contingencies Disclosure [Line Items]
Number of primary land leases \| Property			2			2
Corporate Facilities Leases
Commitments and Contingencies Disclosure [Line Items]
Lease term			8 years
Extended Term
Commitments and Contingencies Disclosure [Line Items]
Underlying notes extended expiration year			2022
Initial developer sales of interests \| Golf Land Leases
Commitments and Contingencies Disclosure [Line Items]
Lease term			20 years
Resales of interests \| Golf Land Leases
Commitments and Contingencies Disclosure [Line Items]
Lease term			50 years
Minimum \| Other Operating Leases
Commitments and Contingencies Disclosure [Line Items]
Lease term			3 years
Maximum \| Other Operating Leases
Commitments and Contingencies Disclosure [Line Items]
Lease term			10 years
Marriott International \| Maximum
Commitments and Contingencies Disclosure [Line Items]
Standby Letters Of Credit			$ 1
Variable Interest Entity, Not Primary Beneficiary \| Equity Investment And Loan Receivable
Commitments and Contingencies Disclosure [Line Items]
Increase in litigation matters cost expected to be incurred in joint venture interest			8
Notes receivable due from the entity			7
Project Completion Guarantee \| Vacation Ownership
Commitments and Contingencies Disclosure [Line Items]
Estimated cash outflow associated with completing all phases of existing portfolio of projects			63
Liabilities related to projects			$ 23
Project estimated completion year			2017
Kapalua Bay Settlement
Commitments and Contingencies Disclosure [Line Items]
Number of developers provided full release			132
Number of developers sold interests			177
Number of residential developers provided full release			1
Revolving Credit Facility
Commitments and Contingencies Disclosure [Line Items]
Revolving credit facility amount			$ 200
Primary Obligor
Commitments and Contingencies Disclosure [Line Items]
Liability for Expected Future Fundings
Primary Obligor \| Other Liabilities \| Maximum
Commitments and Contingencies Disclosure [Line Items]
Liability for Expected Future Fundings			1
Other Purchase Commitment
Commitments and Contingencies Disclosure [Line Items]
Unfunded purchase commitments			1			€ 1
Information technology hardware and software
Commitments and Contingencies Disclosure [Line Items]
Contractual Commitments Future Minimum Payments Due			36
Contractual Commitments Future Minimum Payments due in 2014			11
Contractual Commitments Future Minimum Payments due in 2015			12
Contractual Commitments Future Minimum Payments due in 2016			6
Contractual Commitments Future Minimum Payments due in 2017			5
Contractual Commitments Future Minimum Payments due in 2018			1
Contractual Commitments Future Minimum Payments due in 2019			1
Commitments
Commitments and Contingencies Disclosure [Line Items]
Commitments to subsidize vacation ownership associations			$ 8
Plaintiffs \| Kapalua Bay Settlement
Commitments and Contingencies Disclosure [Line Items]
Number of developers sold interests			2

Maximum Potential Amount of Future Fundings for Financing Guarantees and Carrying Amount of Liability for Expected Future Fundings (Detail) - Primary Obligor $ in Millions	Jan. 03, 2014 USD ($)
Guarantor Obligations [Line Items]
Maximum Potential Amount of Future Fundings	$ 16
Liability for Expected Future Fundings
Asia Pacific
Guarantor Obligations [Line Items]
Maximum Potential Amount of Future Fundings	13
Liability for Expected Future Fundings
North America Segment
Guarantor Obligations [Line Items]
Maximum Potential Amount of Future Fundings	3
Liability for Expected Future Fundings

Summary of Future Obligations Under Operating Leases (Detail) $ in Millions	Jan. 03, 2014 USD ($)
Leases Future Minimum Payments [Line Items]
Operating leases, future minimum payments due 2014	$ 11
Operating leases, future minimum payments due 2015	11
Operating leases, future minimum payments due 2016	8
Operating leases, future minimum payments due 2017	8
Operating leases, future minimum payments due 2018	7
Operating leases, future minimum payments due thereafter	50
Operating leases, future minimum payments due, total	95
Golf Land Leases
Leases Future Minimum Payments [Line Items]
Operating leases, future minimum payments due 2014	2
Operating leases, future minimum payments due 2015	2
Operating leases, future minimum payments due 2016	2
Operating leases, future minimum payments due 2017	2
Operating leases, future minimum payments due 2018	2
Operating leases, future minimum payments due thereafter	34
Operating leases, future minimum payments due, total	44
Corporate Facilities Leases
Leases Future Minimum Payments [Line Items]
Operating leases, future minimum payments due 2014	1
Operating leases, future minimum payments due 2015	3
Operating leases, future minimum payments due 2016	3
Operating leases, future minimum payments due 2017	4
Operating leases, future minimum payments due 2018	4
Operating leases, future minimum payments due thereafter	10
Operating leases, future minimum payments due, total	25
Other Operating Leases
Leases Future Minimum Payments [Line Items]
Operating leases, future minimum payments due 2014	8
Operating leases, future minimum payments due 2015	6
Operating leases, future minimum payments due 2016	3
Operating leases, future minimum payments due 2017	2
Operating leases, future minimum payments due 2018	1
Operating leases, future minimum payments due thereafter	6
Operating leases, future minimum payments due, total	$ 26

Composition of Rental Expense Associated with Operating Leases (Detail) - USD ($) $ in Millions	12 Months Ended
	Jan. 03, 2014	Dec. 28, 2012	Dec. 30, 2011
Commitments And Contingencies Disclosure [Abstract]
Minimum rentals	$ 9	$ 10	$ 10
Additional rentals	5	5	5
Operating Leases, Rent Expense, Net, Total	$ 14	$ 15	$ 15

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

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

Jan. 03, 2014

Dec. 28, 2012

$ 678

Other Debt

Carrying Amount

Carrying Amount | Non-Recourse Debt

678

Carrying Amount | Other Debt

^[1]

674

$ 4

[1]	Interest rates are as of January 3, 2014.

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

Jan. 03, 2014

^[1]

Debt, weighted average interest rate

3.50%

Minimum

Debt, stated interest rate

2.20%

Maximum

Debt, stated interest rate

7.20%

[1]	Interest rates are as of January 3, 2014.

Debt - Additional Information (Detail) $ in Millions	12 Months Ended
Debt - Additional Information (Detail) $ in Millions	Jan. 03, 2014 USD ($) Loan	Dec. 28, 2012 USD ($)	Dec. 30, 2011 USD ($)
Debt Disclosure [Line Items]
Securitization pool of vacation ownership notes receivable	$ 263
Securitization pool of vacation ownership notes receivable that were previously securitized in the Warehouse Credit Facility	116
Cash paid for interest, net of amounts capitalized	$ 37	$ 48	$ 45
Number of notes receivable pools failed to perform within the established parameters \| Loan	0
Number of notes receivable pools outstanding \| Loan	7
Amendment
Debt Disclosure [Line Items]
Line of credit facility maturity date	Sep. 05, 2015
Debt instrument, percentage points added to the reference rate	1.20%
Revolving Credit Facility
Debt Disclosure [Line Items]
Amount borrowed under revolving corporate credit facility	$ 0
Revolving Credit Facility \| Maximum \| Through the end of the first quarter of 2013
Debt Disclosure [Line Items]
Debt to EBITDA ratio	6
Revolving Credit Facility \| Maximum \| Through the end of the 2014 fiscal year
Debt Disclosure [Line Items]
Debt to EBITDA ratio	5.75
Revolving Credit Facility \| Maximum \| Thereafter
Debt Disclosure [Line Items]
Debt to EBITDA ratio	5.25
Revolving Credit Facility \| Minimum \| Through the end of the first quarter of 2013
Debt Disclosure [Line Items]
EBITDA to interest expense ratio	6
Revolving Credit Facility \| Minimum \| Through the end of the 2014 fiscal year
Debt Disclosure [Line Items]
EBITDA to interest expense ratio	5.25
Revolving Credit Facility \| Minimum \| Thereafter
Debt Disclosure [Line Items]
EBITDA to interest expense ratio	4.75
Non-Recourse Debt \| Performance Triggers
Debt Disclosure [Line Items]
Cash flows redirected as a result of failing to perform within the established parameters		$ 1
Non-Recourse Debt \| 2013-1 Trust
Debt Disclosure [Line Items]
Debt instrument face amount	$ 250
Number of classes of vacation ownership backed notes issued \| Loan	2
Debt, weighted average interest rate	2.21%
Non-Recourse Debt \| 2013-1 Trust \| Class A Notes
Debt Disclosure [Line Items]
Debt instrument face amount	$ 224
Debt, stated interest rate	2.15%
Non-Recourse Debt \| 2013-1 Trust \| Class B Notes
Debt Disclosure [Line Items]
Debt instrument face amount	$ 26
Debt, stated interest rate	2.74%

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

Jan. 03, 2014

Dec. 28, 2012

Debt Principal Payments Year

$ 112

113

109

209

Balance at end of period

678

$ 678

Vacation Ownership Notes Receivable Securitizations

Debt Principal Payments Year

2014

^[1]

112

2015

^[1]

113

2016

^[1]

109

2017

^[1]

2018

^[1]

Thereafter

^[1]

205

Balance at end of period

^[1]

674

Other Debt

Debt Principal Payments Year

Balance at end of period

$ 4

[1]	The debt associated with our vacation ownership notes receivable securitizations is non-recourse to us.

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	Jan. 03, 2014
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, if we do not elect to redeem the preferred stock, 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 (i.e., beginning in October 2016). 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

Other Liabilities - Additional Information (Detail) - USD ($) $ in Millions	12 Months Ended
	Jan. 03, 2014	Dec. 28, 2012	Dec. 30, 2011
Other Liabilities Disclosure [Abstract]
Customer loyalty program's liability	$ 114	$ 159
Changes in estimate for Marriott Rewards customer loyalty program liability	5	9	$ 0
Accruals for customer rewards	$ 52	$ 47
Accrued liabilities payable days	120 days

Variable Change Impact on Valuation of Customer Loyalty Liability (Detail) - USD ($) $ in Millions	Jan. 03, 2014	Dec. 28, 2012
Other Liabilities [Line Items]
Customer loyalty program liability	$ 114	$ 159
5 percent change in the cost per point
Other Liabilities [Line Items]
Customer loyalty program liability	5
10 percent change in the cost per point
Other Liabilities [Line Items]
Customer loyalty program liability	11
100 basis point change in the breakage rate
Other Liabilities [Line Items]
Customer loyalty program liability	9
200 basis point change in the breakage rate
Other Liabilities [Line Items]
Customer loyalty program liability	$ 17

Shareholders' Equity - Additional Information (Detail) - $ / shares	Jan. 03, 2014	Oct. 08, 2013	Dec. 28, 2012
Stockholders' Equity [Line Items]
Common stock, shares authorized	100,000,000		100,000,000
Common stock, par value	$ 0.01		$ 0.01
Common stock, shares issued	35,637,765		35,026,533
Common stock, shares outstanding	35,132,742		35,026,533
Treasury stock, shares	505,023		0
Preferred stock, shares authorized	2,000,000		2,000,000
Preferred stock, par value	$ 0.01		$ 0.01
Preferred stock, issued	0		0
Preferred stock, outstanding	0		0
Stock repurchase program, remaining authorized repurchase amount (in shares)	3,000,000
Maximum
Stockholders' Equity [Line Items]
Stock repurchase program, number of common stock authorized to be repurchased		3,500,000

Summary of Stock Repurchase Activity (Detail) $ / shares in Units, $ in Millions	12 Months Ended
	Jan. 03, 2014 USD ($) $ / shares shares
Equity [Abstract]
Beginning Balance \| shares	0
For the year ended January 3, 2014 \| shares	505,023
Ending Balance \| shares	505,023
Beginning balance \| $
For the year ended January 3, 2014 \| $	26
Ending balance \| $	$ 26
Beginning balance \| $ / shares
For the year ended January 3, 2014 \| $ / shares	50.76
Ending balance \| $ / shares	$ 50.76

Share-Based Compensation - Additional Information (Detail) - USD ($)
$ / shares in Units, $ in Millions

12 Months Ended

Jan. 03, 2014

Dec. 28, 2012

Dec. 30, 2011

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Deferred compensation costs related to unvested awards

$ 13

$ 14

Deferred compensation expense weighted average expected recognition period

2 years

Tax benefits by exercise of share-based award of employees

$ 3

Stock option compensation expense

4 years

$ 0

Deferred compensation expense related to stock options held by our employees

$ 0

Stock Options granted other than part of Spin-Off Marriott International or to employees

Expected annual dividend per share

$ 0

Maximum

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Tax benefits by exercise of share-based award of employees

$ 1

Intrinsic value of both outstanding and exercisable stock options

$ 1

Officers and Key Management Employees

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

$ 12

Employees

Tax benefits by exercise of share-based award of employees

$ 3

Employees | Maximum

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Tax benefits by exercise of share-based award of employees

Performance Based Restricted Stock Unit

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Performance Based Restricted Stock Unit | Maximum

3 years

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Maximum amount of RSU subject to vesting

72,000

157,000

Nonqualified Stock Options | Officers and Key Management Employees

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Stock awards, expiration from grant date

4 years

10 years

Marriott Vacations Worldwide Stock and Cash Incentive Plan

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Shares authorized for issuance under the plan

6,000,000

Shares available for grants under the plan

2,000,000

Stock Options Exercised

Marriott Vacations Worldwide Stock and Cash Incentive Plan | Maximum

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Cash received from employees by exercise of stock options

$ 1

Marriott Vacations Worldwide Stock and Cash Incentive Plan | Employees

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Total intrinsic value of stock options exercised

Marriott Vacations Worldwide Stock and Cash Incentive Plan | Employees | Maximum

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Total intrinsic value of stock options exercised

Marriott International

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Cash received from employees by exercise of stock options

Marriott International | Employees

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Total intrinsic value of stock options exercised

Restricted stock units

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Deferred compensation costs related to unvested awards

^[1]

$ 12

Deferred commencement period after date of grant

4 years

1 year

Weighted average remaining term

2 years

Stock awards, granted

^[1]

272,033

Stock awards, weighted average grant date fair value

^[1]

$ 40

Restricted stock units | Employees and Non Employee Directors

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Stock awards, granted

272,033

Stock awards, weighted average grant date fair value

$ 40

Stock Appreciation Rights (SARs)

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

$ 1

Stock awards, expiration from grant date

4 years

Stock awards, granted

66,422

10 years

Deferred compensation costs related to other than stock option held by employees and directors

$ 1

Stock Appreciation Rights (SARs) | Maximum

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

$ 1

[1]	Includes RSUs with performance based vesting criteria.

Additional Information on Outstanding RSUs Issued to Employees (Detail) - Restricted stock units - USD ($)
$ / shares in Units, $ in Millions

12 Months Ended

Jan. 03, 2014

Dec. 28, 2012

Dec. 30, 2011

Share-based compensation expense

^[1]

$ 11

$ 10

Weighted average grant-date fair value

^[1]

$ 40

Aggregate intrinsic value of converted and distributed

$ 7

$ 3

$ 2

Pre Spin Off

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Weighted average grant-date fair value

$ 32

$ 31

$ 40

Subsequent to Spin - Off

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Weighted average grant-date fair value

^[1]

$ 29

$ 22

$ 19

[1]	Includes RSUs with performance based vesting criteria.

Changes in Marriott Vacations Worldwide RSUs Issued to Marriott International and Marriott Vacations Worldwide Employees (Detail) - Restricted stock units

12 Months Ended

Jan. 03, 2014

$ / shares

Number of Shares

Outstanding at beginning of year | shares

1,138,323

Granted | shares

272,033

^[1]

Distributed | shares

(365,127)

Forfeited | shares

(19,965)

Outstanding at year-end | shares

1,025,264

Weighted Average Grant Date Fair Value

Outstanding at beginning of year | $ / shares

$ 17

Granted | $ / shares

^[1]

Distributed | $ / shares

Forfeited | $ / shares

Outstanding at year-end | $ / shares

$ 24

[1]	Includes RSUs with performance based vesting criteria.

Changes in Outstanding Marriott Vacations Worldwide Stock Options for Marriott International and Marriott Vacations Worldwide Employees (Detail) - Marriott Vacations Worldwide Stock and Cash Incentive Plan	12 Months Ended
	Jan. 03, 2014 $ / shares shares
Shares
Outstanding at beginning of year \| shares	648,905
Granted \| shares
Exercised \| shares	(364,282)
Forfeited \| shares
Outstanding at year-end \| shares	284,623
Weighted Average Exercise Price
Outstanding at beginning of year \| $ / shares	$ 11
Granted \| $ / shares
Exercised \| $ / shares	11
Forfeited \| $ / shares
Outstanding at year-end \| $ / shares	$ 12

Marriott Vacations Worldwide Stock Options Issued to Marriott International Arrangements (Detail)	12 Months Ended
	Jan. 03, 2014 $ / shares shares
Range One
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Range of Exercise Prices Lower Limit	$ 8
Range of Exercise Prices Upper Limit	$ 12
Stock Options Outstanding, Number of Stock Options \| shares	204,687
Stock Options Outstanding, Weighted Average Exercise Price	$ 10
Stock Options Outstanding, Weighted Average Remaining Life (in years)	1 year
Stock Options Exercisable, Number of Stock Options \| shares	204,687
Stock Options Exercisable, Weighted Average Exercise Price	$ 10
Stock Options Exercisable, Weighted Average Remaining Life (in years)	1 year
Range Two
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Range of Exercise Prices Lower Limit	$ 13
Range of Exercise Prices Upper Limit	$ 17
Stock Options Outstanding, Number of Stock Options \| shares	15,622
Stock Options Outstanding, Weighted Average Exercise Price	$ 15
Stock Options Outstanding, Weighted Average Remaining Life (in years)	4 years
Stock Options Exercisable, Number of Stock Options \| shares	14,286
Stock Options Exercisable, Weighted Average Exercise Price	$ 15
Stock Options Exercisable, Weighted Average Remaining Life (in years)	4 years
Range Three
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Range of Exercise Prices Lower Limit	$ 18
Range of Exercise Prices Upper Limit	$ 22
Stock Options Outstanding, Number of Stock Options \| shares	60,498
Stock Options Outstanding, Weighted Average Exercise Price	$ 19
Stock Options Outstanding, Weighted Average Remaining Life (in years)	1 year
Stock Options Exercisable, Number of Stock Options \| shares	60,498
Stock Options Exercisable, Weighted Average Exercise Price	$ 19
Stock Options Exercisable, Weighted Average Remaining Life (in years)	1 year
Range Four
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Range of Exercise Prices Lower Limit	$ 23
Range of Exercise Prices Upper Limit	$ 28
Stock Options Outstanding, Number of Stock Options \| shares	3,816
Stock Options Outstanding, Weighted Average Exercise Price	$ 26
Stock Options Outstanding, Weighted Average Remaining Life (in years)	5 years
Stock Options Exercisable, Number of Stock Options \| shares	2,855
Stock Options Exercisable, Weighted Average Exercise Price	$ 27
Stock Options Exercisable, Weighted Average Remaining Life (in years)	4 years
Range Five
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Range of Exercise Prices Lower Limit	$ 8
Range of Exercise Prices Upper Limit	$ 28
Stock Options Outstanding, Number of Stock Options \| shares	284,623
Stock Options Outstanding, Weighted Average Exercise Price	$ 12
Stock Options Outstanding, Weighted Average Remaining Life (in years)	1 year
Stock Options Exercisable, Number of Stock Options \| shares	282,326
Stock Options Exercisable, Weighted Average Exercise Price	$ 12
Stock Options Exercisable, Weighted Average Remaining Life (in years)	1 year

Intrinsic Value of Outstanding Marriott International Stock Options and Exercisable Stock Options Held by Employees (Detail) - USD ($) $ in Millions	Jan. 03, 2014	Dec. 28, 2012
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Outstanding stock options	$ 2	$ 4
Exercisable stock options	$ 2	$ 4

Changes in Outstanding Marriott Vacations Worldwide SARs Issued to Both Marriott International and Marriott Vacations Worldwide Employees and Directors (Detail) - Stock Appreciation Rights (SARs)	12 Months Ended
	Jan. 03, 2014 $ / shares shares
Number of Shares
Outstanding at beginning of year \| shares	710,169
Granted \| shares	66,422
Exercised \| shares	(32,342)
Forfeited \| shares
Outstanding at year-end \| shares	744,249
Weighted Average Exercise Price
Outstanding at beginning of year \| $ / shares	$ 18
Granted \| $ / shares	40
Exercised \| $ / shares	19
Forfeited \| $ / shares
Outstanding at year-end \| $ / shares	$ 20

Assumptions Used to Estimate Fair Value of Grants (Detail)	12 Months Ended
	Jan. 03, 2014	Dec. 28, 2012	Dec. 30, 2011
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected volatility	57.55%	54.30%
Dividend yield	0.00%	0.00%
Risk-free interest rate	1.02%	1.03%
Expected term (in years)	6 years 3 months	6 years 3 months
Pre Spin Off
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected volatility			32.00%
Dividend yield			0.73%
Risk-free interest rate			3.40%
Expected term (in years)			8 years

Classifications of Consolidated VIE Assets and Liabilities (Detail) $ in Millions	Jan. 03, 2014 USD ($)
Variable Interest Entity [Line Items]
VIE Assets	$ 758
VIE Liabilities	675
Vacation Ownership Notes Receivable
Variable Interest Entity [Line Items]
VIE Assets	719
Interest Receivable
Variable Interest Entity [Line Items]
VIE Assets	5
Restricted Cash
Variable Interest Entity [Line Items]
VIE Assets	34
Interest Payable
Variable Interest Entity [Line Items]
VIE Liabilities	1
Debt
Variable Interest Entity [Line Items]
VIE Liabilities	674
Vacation Ownership Notes Receivable Securitizations
Variable Interest Entity [Line Items]
VIE Assets	758
VIE Liabilities	675
Vacation Ownership Notes Receivable Securitizations \| Vacation Ownership Notes Receivable
Variable Interest Entity [Line Items]
VIE Assets	719
Vacation Ownership Notes Receivable Securitizations \| Interest Receivable
Variable Interest Entity [Line Items]
VIE Assets	5
Vacation Ownership Notes Receivable Securitizations \| Restricted Cash
Variable Interest Entity [Line Items]
VIE Assets	34
Vacation Ownership Notes Receivable Securitizations \| Interest Payable
Variable Interest Entity [Line Items]
VIE Liabilities	1
Vacation Ownership Notes Receivable Securitizations \| Debt
Variable Interest Entity [Line Items]
VIE Liabilities	674
Warehouse Credit Facility
Variable Interest Entity [Line Items]
VIE Assets
VIE Liabilities
Warehouse Credit Facility \| Vacation Ownership Notes Receivable
Variable Interest Entity [Line Items]
VIE Assets
Warehouse Credit Facility \| Interest Receivable
Variable Interest Entity [Line Items]
VIE Assets
Warehouse Credit Facility \| Restricted Cash
Variable Interest Entity [Line Items]
VIE Assets
Warehouse Credit Facility \| Interest Payable
Variable Interest Entity [Line Items]
VIE Liabilities
Warehouse Credit Facility \| Debt
Variable Interest Entity [Line Items]
VIE Liabilities

Variable Interest Entities - Additional Information (Detail) - USD ($)	12 Months Ended
	Jan. 03, 2014	Dec. 28, 2012	Dec. 30, 2011
Variable Interest Entity [Line Items]
Noncontrolling interest	$ 0
Voluntary repurchase of defaulted notes receivable	27,000,000	$ 39,000,000	$ 52,000,000
Voluntary repurchase of other non-defaulted notes receivable	69,000,000	86,000,000	24,000,000
Vacation ownership notes receivable	$ 970,000,000	1,056,000,000
Notes receivable due from the entity			$ 20,000,000
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.
Vacation ownership notes receivable	$ 719,000,000	$ 727,000,000
Variable Interest Entity, Not Primary Beneficiary \| Equity Investment And Loan Receivable
Variable Interest Entity [Line Items]
Maximum Loss Exposure, Determination Methodology	We have an accrual of $14 million for potential future funding, representing our remaining expected exposure to loss related to our involvement with this entity exclusive of any costs that may be incurred pursuant to outstanding litigation matters, including those discussed in Footnote No. 9, "Contingencies and Commitments."
Vacation ownership notes receivable	$ 0
Notes receivable due from the entity	7,000,000
Accrued liability for additional funding	14,000,000
Increase in litigation matters cost expected to be incurred in joint venture interest	$ 8,000,000

Interest Income and Expense Recognized as a Result of Our Involvement with Variable Interest Entities (Detail) - USD ($) $ in Millions	12 Months Ended
	Jan. 03, 2014	Dec. 28, 2012	Dec. 30, 2011
Variable Interest Entity [Line Items]
Debt issuance cost amortization	$ 6	$ 7	$ 4
Variable Interest Entity
Variable Interest Entity [Line Items]
Interest income	104
Interest expense to investors	27
Debt issuance cost amortization	4
Variable Interest Entity \| Vacation Ownership Notes Receivable Securitizations
Variable Interest Entity [Line Items]
Interest income	97
Interest expense to investors	25
Debt issuance cost amortization	3
Variable Interest Entity \| Warehouse Credit Facility
Variable Interest Entity [Line Items]
Interest income	7
Interest expense to investors	2
Debt issuance cost amortization	$ 1

Cash Flows Between Company and Variable Interest Entities (Detail) - USD ($) $ in Millions	12 Months Ended
	Jan. 03, 2014	Dec. 28, 2012	Dec. 30, 2011
Cash inflows (outflows):
Voluntary repurchases of defaulted vacation ownership notes receivable	$ (27)	$ (39)	$ (52)
Vacation Ownership Notes Receivable Securitizations
Cash inflows (outflows):
Net proceeds from vacation ownership notes receivable securitization	246	233
Principal receipts	180	188
Interest receipts	97	107
Total	523	528
Principal to investors	(172)	(184)
Voluntary repurchases of defaulted vacation ownership notes receivable	(27)	(37)
Voluntary retirement clean-up call	(51)	(72)
Interest to investors	(26)	(34)
Total	(276)	(327)
Net Cash Flows	247	201
Warehouse Credit Facility
Cash inflows (outflows):
Net proceeds from vacation ownership notes receivable securitization	109
Principal receipts	16	16
Interest receipts	7	9
Reserve release	1	1
Total	133	26
Principal to investors	(13)	(15)
Voluntary repurchases of defaulted vacation ownership notes receivable		(2)
Repayment of Warehouse Credit Facility	(98)	(101)
Interest to investors	(2)	(2)
Total	(113)	(120)
Net Cash Flows	$ 20	$ (94)

Composition of Impairment Charges (Detail) - USD ($)
$ in Millions

12 Months Ended

Jan. 03, 2014

^[1]

Dec. 28, 2012

Dec. 30, 2011

$ 251

$ 1

324

North America Segment

111

117

Europe

Corporate And Other Segment

138

$ 205

[1]	The 2013 impairment charge related to a leased golf course in our Europe segment.

Impairment Charges - Additional Information (Detail)
$ in Millions

12 Months Ended

Jan. 03, 2014

USD ($)

^[1]

Dec. 28, 2012

USD ($)

Dec. 30, 2011

USD ($)

Property

Reclassification from inventory to property and equipment

$ 1

$ 324

Luxury

117

Europe

Corporate and Other

Undeveloped and Partially Developed Land

205

Number of vacation ownership properties with underdeveloped land parcels | Property

$ 199

Software

$ 6

Pre Tax

324

After Tax

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

$ 234

[1]	The 2013 impairment charge related to a leased golf course in our Europe segment.

Related Party Transactions - Additional Information (Detail) - Marriott International $ in Millions	11 Months Ended
	Nov. 20, 2011 USD ($)
Related Party Transaction [Line Items]
Costs for services	$ 23
Indirect general and corporate overhead expenses	$ 12

Organizational and Separation Related Charges - Additional Information (Detail) - USD ($) $ in Millions	12 Months Ended
	Jan. 03, 2014	Dec. 28, 2012
Organization Consolidation And Presentation Of Financial Statements [Abstract]
Organizational and separation related charges	$ 12	$ 16
Capitalized asset costs	$ 7	$ 2

Business Segments - Additional Information (Detail) $ in Millions	12 Months Ended
	Jan. 03, 2014 USD ($) Segment	Dec. 28, 2012 USD ($)	Dec. 30, 2011 USD ($)
Segment Reporting Disclosure [Line Items]
Number of business segments \| Segment	3
Property and equipment	$ 254	$ 261
Operations located outside the United States
Segment Reporting Disclosure [Line Items]
Revenues, excluding reimbursed costs	207	236	$ 281
Property and equipment	$ 100	$ 101

Revenues (Detail) - USD ($) $ in Millions	12 Months Ended
Revenues (Detail) - USD ($) $ in Millions	Jan. 03, 2014	Dec. 28, 2012	Dec. 30, 2011
Segment Reporting, Revenue Reconciling Item [Line Items]
Revenue	$ 1,750	$ 1,639	$ 1,624
North America Segment
Segment Reporting, Revenue Reconciling Item [Line Items]
Revenue	1,545	1,444	1,403
Europe
Segment Reporting, Revenue Reconciling Item [Line Items]
Revenue	141	112	129
Asia Pacific
Segment Reporting, Revenue Reconciling Item [Line Items]
Revenue	64	83	92
Total reportable segment
Segment Reporting, Revenue Reconciling Item [Line Items]
Revenue	1,750	1,639	1,624
Corporate and Other
Segment Reporting, Revenue Reconciling Item [Line Items]
Revenue

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

12 Months Ended

Jan. 03, 2014

Dec. 28, 2012

Dec. 30, 2011

Provision for income taxes

$ 131

$ 31

$ (217)

(51)

(24)

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

^[1]

^[2]

(172)

North America Segment

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

342

266

139

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]

368

272

153

Corporate and Other

$ (237)

$ (241)

$ (370)

[1]	The computations of diluted earnings per share exclude approximately 229,000 shares of common stock, the maximum number of shares issuable as of January 3, 2014 upon the vesting of certain performance-based awards, because the performance conditions required for such shares to vest were not achieved by the end of the reporting period.
[2]	The computations of diluted earnings per share exclude approximately 157,000 shares of common stock, the maximum number of shares issuable as of December 28, 2012 upon the vesting of certain performance-based awards, because the performance conditions required for such shares to vest were not achieved by the end of the reporting period.

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

Condensed Financial Information Of Parent Company Only Disclosure [Abstract]

Equity in Losses of Equity Method Investees (Detail) - USD ($) $ in Millions	12 Months Ended
	Jan. 03, 2014	Dec. 28, 2012	Dec. 30, 2011
Subsidiary or Equity Method Investee [Line Items]
Equity in Losses of Equity Method Investees		$ 1
Asia Pacific
Subsidiary or Equity Method Investee [Line Items]
Equity in Losses of Equity Method Investees		$ 1

Depreciation (Detail) - USD ($) $ in Millions	12 Months Ended
Depreciation (Detail) - USD ($) $ in Millions	Jan. 03, 2014	Dec. 28, 2012	Dec. 30, 2011
Reconciliation of Depreciation by Segment [Line Items]
Depreciation	$ 23	$ 30	$ 33
North America Segment
Reconciliation of Depreciation by Segment [Line Items]
Depreciation	10	12	13
Europe
Reconciliation of Depreciation by Segment [Line Items]
Depreciation	2	2	3
Asia Pacific
Reconciliation of Depreciation by Segment [Line Items]
Depreciation			1
Total Reportable Segments
Reconciliation of Depreciation by Segment [Line Items]
Depreciation	12	14	17
Corporate and Other
Reconciliation of Depreciation by Segment [Line Items]
Depreciation	$ 11	$ 16	$ 16

Assets (Detail) - USD ($) $ in Millions	Jan. 03, 2014	Dec. 28, 2012
Segment Reporting Information [Line Items]
Total Assets	$ 2,632	$ 2,613
North America Segment
Segment Reporting Information [Line Items]
Total Assets	2,125	2,223
Europe
Segment Reporting Information [Line Items]
Total Assets	103	122
Asia Pacific
Segment Reporting Information [Line Items]
Total Assets	84	85
Total reportable segment
Segment Reporting Information [Line Items]
Total Assets	2,312	2,430
Corporate and Other
Segment Reporting Information [Line Items]
Total Assets	$ 320	$ 183

Equity Method Investments (Detail) - USD ($) $ in Millions	Jan. 03, 2014	Dec. 28, 2012
Asia Pacific
Schedule of Equity Method Investments [Line Items]
Equity Method Investments	$ 1	$ 1

Capital Expenditures (including inventory) (Detail) - USD ($) $ in Millions	12 Months Ended
	Jan. 03, 2014	Dec. 28, 2012	Dec. 30, 2011
Segment Reporting, Other Significant Reconciling Item [Line Items]
Capital Expenditures	$ 188	$ 138	$ 135
North America Segment
Segment Reporting, Other Significant Reconciling Item [Line Items]
Capital Expenditures	167	118	118
Europe
Segment Reporting, Other Significant Reconciling Item [Line Items]
Capital Expenditures	5	4	5
Asia Pacific
Segment Reporting, Other Significant Reconciling Item [Line Items]
Capital Expenditures	8	11	3
Total Reportable Segments
Segment Reporting, Other Significant Reconciling Item [Line Items]
Capital Expenditures	180	133	126
Corporate and Other
Segment Reporting, Other Significant Reconciling Item [Line Items]
Capital Expenditures	$ 8	$ 5	$ 9

Schedule of Quarterly Financial Information (Detail) - USD ($)
$ / shares in Units, $ in Millions

3 Months Ended

4 Months Ended

12 Months Ended

Sep. 06, 2013

Jun. 14, 2013

Mar. 22, 2013

Sep. 07, 2012

Jun. 15, 2012

Mar. 23, 2012

Jan. 03, 2014

Dec. 28, 2012

Jan. 03, 2014

Dec. 28, 2012

Dec. 30, 2011

Revenues

^[1],[2],[3]

$ 412

$ 421

$ 390

$ 383

$ 374

$ 527

$ 499

$ 1,750

$ 1,639

Expenses

^[1],[2],[3]

(370)

(373)

(358)

(362)

(372)

(355)

(505)

(514)

(1,606)

(1,603)

^[1],[2],[3]

$ 25

$ 30

$ 19

$ 5

$ 8

$ 6

$ (11)

$ 80

$ 7

$ 0.70

^[1],[2],[3]

$ 0.87

^[1],[2],[3]

$ 0.53

^[1],[2],[3]

$ 0.13

^[1],[2],[3]

$ 0.16

^[1],[2],[3]

$ 0.23

^[1],[2],[3]

$ 0.16

^[1],[2],[3]

$ (0.33)

^[1],[2],[3]

$ 2.25

^{[1],[2],[3],[4]}

$ 0.19

^{[1],[2],[3],[5]}

$ (5.12)

$ 0.67

^[1],[2],[3]

$ 0.85

^[1],[2],[3]

$ 0.51

^[1],[2],[3]

$ 0.12

^[1],[2],[3]

$ 0.15

^[1],[2],[3]

$ 0.22

^[1],[2],[3]

$ 0.15

^[1],[2],[3]

$ (0.33)

^[1],[2],[3]

$ 2.18

^{[1],[2],[3],[4]}

$ 0.18

^{[1],[2],[3],[5]}

$ (5.12)

[1]	The quarterly results have been restated to correct certain prior period errors as discussed in Footnote No. 1, "Summary of Significant Accounting Policies."
[2]	The quarters consisted of 12 weeks, except for the fourth quarter of 2013, which consisted of 17 weeks and the fourth quarter of 2012, which consisted of 16 weeks.
[3]	The sum of the earnings per share for the four quarters differs from annual earnings per share due to the required method of computing the weighted average shares in interim periods.
[4]	The computations of diluted earnings per share exclude approximately 229,000 shares of common stock, the maximum number of shares issuable as of January 3, 2014 upon the vesting of certain performance-based awards, because the performance conditions required for such shares to vest were not achieved by the end of the reporting period.
[5]	The computations of diluted earnings per share exclude approximately 157,000 shares of common stock, the maximum number of shares issuable as of December 28, 2012 upon the vesting of certain performance-based awards, because the performance conditions required for such shares to vest were not achieved by the end of the reporting period.

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