View Filing Data

Other comprehensive loss, net of tax:

$ 25

^[1]

$ 25

^[2]

$ 80

^[1]

$ 74

^[2]

Foreign currency translation adjustments

(3)

(1)

Total other comprehensive loss, net of tax

(3)

(1)

COMPREHENSIVE INCOME

$ 22

$ 25

$ 77

$ 73

[1]

The computations of diluted earnings per share exclude approximately 179,000 shares of common stock, the maximum number of shares issuable as of September 12, 2014 upon the vesting of certain performance-based awards that have not already been included in the calculation, because the performance conditions required for the shares subject to such awards to vest were not achieved by the end of the reporting period.

[2]

The computations of diluted earnings per share exclude approximately 229,000 shares of common stock, the maximum number of shares issuable as of September 6, 2013 upon the vesting of certain performance-based awards, because the performance conditions required for the shares subject to such awards 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.

Interim Consolidated Balance Sheets - USD ($) $ in Millions	Sep. 12, 2014	Jan. 03, 2014
ASSETS
Cash and cash equivalents	$ 146	$ 200
Restricted cash (including $36 and $34 from VIEs, respectively)	65	86
Accounts and contracts receivable, net (including $3 and $5 from VIEs, respectively)	113	109
Vacation ownership notes receivable, net (including $580 and $719 from VIEs, respectively)	912	970
Inventory	799	870
Property and equipment	212	254
Other	100	143
Total Assets	2,347	2,632
LIABILITIES AND EQUITY
Accounts payable	79	129
Advance deposits	55	48
Accrued liabilities (including $2 and $1 from VIEs, respectively)	147	185
Deferred revenue	23	19
Payroll and benefits liability	77	82
Liability for Marriott Rewards customer loyalty program	92	114
Deferred compensation liability	40	37
Mandatorily redeemable preferred stock of consolidated subsidiary	40	40
Debt (including $534 and $674 from VIEs, respectively)	538	678
Other	33	31
Deferred taxes	93	60
Total Liabilities	1,217	1,423
Contingencies and Commitments (Note 8)
Preferred stock - $.01 par value; 2,000,000 shares authorized; none issued or outstanding	0	0
Common stock - $.01 par value; 100,000,000 shares authorized; 35,961,779 and 35,637,765 shares issued, respectively	0	0
Treasury stock - at cost; 2,963,020 and 505,023 shares, respectively	(161)	(26)
Additional paid-in capital	1,109	1,130
Accumulated other comprehensive income	20	23
Retained earnings	162	82
Total Equity	1,130	1,209
Total Liabilities and Equity	$ 2,347	$ 2,632

Interim Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions	Sep. 12, 2014	Jan. 03, 2014
Restricted cash	$ 65	$ 86
Accounts and contracts receivable	113	109
Vacation ownership notes receivable	912	970
Accrued liabilities	147	185
Debt	$ 538	$ 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	35,961,779	35,637,765
Treasury stock, shares	2,963,020	505,023
Variable Interest Entity
Restricted cash	$ 36	$ 34
Accounts and contracts receivable	3	5
Vacation ownership notes receivable	580	719
Accrued liabilities	2	1
Debt	$ 534	$ 674

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

8 Months Ended

Sep. 12, 2014

Sep. 06, 2013

OPERATING ACTIVITIES

Adjustments to reconcile net income to net cash provided by operating activities:

$ 80

^[1]

$ 74

^[2]

Depreciation

Amortization of debt issuance costs

Gain on disposal of property and equipment, net

Share-based compensation

Deferred income taxes

Impairment charges

(2)

(1)

Net change in assets and liabilities:

Accounts and contracts receivable

(8)

(16)

Notes receivable originations

(170)

(166)

Notes receivable collections

204

217

Inventory

Other assets

Accounts payable, advance deposits and accrued liabilities

(66)

(74)

Liability for Marriott Rewards customer loyalty program

(23)

(33)

Deferred revenue

(13)

Payroll and benefit liabilities

(5)

(2)

Deferred compensation liability

(8)

Net cash provided by operating activities

206

123

INVESTING ACTIVITIES

Capital expenditures for property and equipment (excluding inventory)

(8)

(11)

Decrease in restricted cash

Dispositions, net

Net cash provided by (used in) investing activities

(4)

FINANCING ACTIVITIES

Borrowings from securitization transactions

361

Repayment of debt related to securitization transactions

(163)

(288)

Borrowings on Revolving Corporate Credit Facility

Repayments on Revolving Corporate Credit Facility

(25)

Debt issuance costs

(2)

(5)

Proceeds from stock option exercises

(160)

Payment of withholding taxes on vesting of restricted stock units

(5)

(4)

Net cash (used in) provided by financing activities

(305)

Effect of changes in exchange rates on cash and cash equivalents

(1)

(DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS

(54)

185

CASH AND CASH EQUIVALENTS, beginning of period

200

103

CASH AND CASH EQUIVALENTS, end of period

146

$ 288

SUPPLEMENTAL DISCLOSURES OF NON-CASH FINANCING ACTIVITIES

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

$ (2)

[1]

[2]

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

8 Months Ended

Sep. 12, 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. (“The 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 September 12, 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. As a result of the Spin-Off, we became an independent public company, and our common stock is listed on the New York Stock Exchange under the symbol “VAC.” Following the Spin-Off, we and Marriott International have operated independently, and neither company has any ownership interest in the other.

Principles of Consolidation and Basis of Presentation

The interim consolidated financial statements presented herein and discussed below include 100 percent of the assets, liabilities, revenues, expenses and cash flows of Marriott Vacations Worldwide, all entities in which Marriott Vacations Worldwide has a controlling voting interest (“subsidiaries”), and those variable interest entities for which Marriott Vacations Worldwide is the primary beneficiary in accordance with consolidation accounting guidance. Intercompany accounts and transactions between consolidated companies have been eliminated in consolidation. The interim 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”).

In order to make this report easier to read, we refer throughout to (i) our Interim Consolidated Financial Statements as our “Financial Statements,” (ii) our Interim Consolidated Statements of Income as our “Statements of Income,” (iii) our Interim Consolidated Balance Sheets as our “Balance Sheets,” and (iv) our Interim 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 Interim Consolidated Financial Statements, unless otherwise noted.

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


		Fiscal Year		Quarter-End Date
		2014 Third Quarter		September 12, 2014
		2014 Second Quarter		June 20, 2014
		2014 First Quarter		March 28, 2014
		2013 Third Quarter		September 6, 2013
		2013 Second Quarter		June 14, 2013
		2013 First Quarter		March 22, 2013

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

These Financial Statements have not been audited. We have condensed or omitted certain information and footnote disclosures normally included in financial statements presented in accordance with GAAP. Although we believe our footnote disclosures are adequate to make the information presented not misleading, you should read these Financial Statements in conjunction with the consolidated financial statements and notes to those consolidated financial statements included in our Annual Report on Form 10-K for the fiscal year ended January 3, 2014.

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 liability, self-insured medical plan reserves, equity-based compensation, income taxes, loss contingencies and exit and disposal activities reserves. Accordingly, actual amounts may differ from these estimated amounts.

We have reclassified certain prior year amounts to conform to our 2014 presentation.

New Accounting Standards

Accounting Standards Update No. 2013-11 – “Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists” (“ASU No. 2013-11”)

ASU No. 2013-11, which we adopted in the first quarter of 2014, provides financial statement presentation guidance on whether an unrecognized tax benefit must be presented as either a reduction to a deferred tax asset or separately as a liability. Our adoption of this update did not have a material impact on our Financial Statements.

Accounting Standards Update No. 2014-08 – “Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360): Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity” (“ASU No. 2014-08”)

ASU No. 2014-08, which we adopted in the first quarter of 2014, raises the threshold for a disposal to qualify as a discontinued operation and requires new disclosures of both discontinued operations and certain other disposals that do not meet the definition of a discontinued operation. ASU No. 2014-08 is effective for annual periods beginning after December 15, 2014, and interim periods within annual periods beginning on or after December 15, 2015, with early adoption permitted. Our adoption of this update did not have a material impact on our Financial Statements.

Future Adoption of Accounting Standards

Accounting Standards Update No. 2014-09 – “Revenue from Contracts with Customers (Topic 606)” (“ASU No. 2014-09”)

In May 2014, the Financial Accounting Standards Board issued ASU No. 2014-09, which specifies how and when to recognize revenue and requires informative, relevant disclosures. ASU 2014-09 will be effective for financial statements issued for the first interim period within annual reporting periods beginning after December 15, 2016, and does not permit early adoption. We will adopt ASU 2014-09 in the first quarter of 2017 and are currently evaluating the impact it will have on our Financial Statements.

INCOME TAXES	8 Months Ended
INCOME TAXES	Sep. 12, 2014
Income Tax Disclosure [Abstract]
INCOME TAXES	2. INCOME TAXES We file U.S. consolidated federal and state tax returns, as well as separate tax filings for non-U.S. jurisdictions. 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 as set forth in the agreement, and each will indemnify and hold harmless the other from and against the taxes so allocated. During the thirty-six weeks ended September 12, 2014, we increased our Deferred tax liabilities by $2 million for adjustments to the Deferred tax liabilities at the time of the Spin-Off with a corresponding reduction to Additional paid-in-capital. Our total unrecognized tax benefit balance that, if recognized, would impact our effective tax rate was less than $1 million at both September 12, 2014 and January 3, 2014. 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.

VACATION OWNERSHIP NOTES RECEIVABLE

8 Months Ended

Sep. 12, 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)*	September 12, 2014		January 3, 2014
Vacation ownership notes receivable — securitized	$	580	$	719
Vacation ownership notes receivable — non-securitized
Eligible for securitization⁽¹⁾		193		73
Not eligible for securitization⁽¹⁾		139		178

Subtotal		332		251

Total vacation ownership notes receivable	$	912	$	970

⁽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	$	32	$	32	$	64
2015		50		94		144
2016		42		91		133
2017		32		87		119
2018		27		71		98
Thereafter		149		205		354

Balance at September 12, 2014	$	332	$	580	$	912

Weighted average stated interest rate at September 12, 2014		12.1%		12.8%		12.5%
Range of stated interest rates at September 12, 2014		0.0% to 19.5%		4.9% to 19.5%		0.0% to 19.5%

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


*($ in millions)*	Twelve Weeks Ended				Thirty-Six Weeks Ended
*($ in millions)*	September 12, 2014		September 6, 2013		September 12, 2014		September 6, 2013
Interest income associated with vacation ownership notes receivable — securitized	$	19	$	23	$	60	$	70
Interest income associated with vacation ownership notes receivable — non-securitized		9		7		25		23

Total interest income associated with vacation ownership notes receivable	$	28	$	30	$	85	$	93

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.

The following table summarizes the activity related to our vacation ownership notes receivable reserve for the thirty-six weeks ended September 12, 2014:


*($ in millions)*	Non-Securitized Vacation Ownership Notes Receivable Reserve		Securitized Vacation Ownership Notes Receivable Reserve		Total
Balance at January 3, 2014	$	82	$	52	$	134
Provision for loan losses		15		7		22
Securitizations		(2)		2		—
Clean-up calls ⁽¹⁾		2		(2)		—
Write-offs		(32)		—		(32)
Defaulted vacation ownership notes receivable repurchase activity ⁽²⁾		18		(18)		—

Balance at September 12, 2014	$	83	$	41	$	124

⁽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 securitized vacation ownership notes receivable.

Although we consider loans to owners to be past due if we do not receive payment within 30 days after 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 to 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 6.94 percent and 7.13 percent as of September 12, 2014 and January 3, 2014, 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 as of both September 12, 2014 and January 3, 2014.

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


*($ in millions)*	Non-Securitized Vacation Ownership Notes Receivable		Securitized Vacation Ownership Notes Receivable		Total
Investment in vacation ownership notes receivable on non-accrual status at September 12, 2014	$	63	$	6	$	69
Investment in vacation ownership notes receivable on non-accrual status at January 3, 2014	$	69	$	8	$	77
Average investment in vacation ownership notes receivable on non-accrual status during the thirty-six weeks ended September 12, 2014	$	66	$	7	$	73
Average investment in vacation ownership notes receivable on non-accrual status during the thirty-six weeks ended September 6, 2013	$	73	$	8	$	81

The following table shows the aging of the recorded investment in principal, before reserves, in vacation ownership notes receivable as of September 12, 2014:


*($ in millions)*	Non-Securitized Vacation Ownership Notes Receivable		Securitized Vacation Ownership Notes Receivable		Total
31 – 90 days past due	$	11	$	14	$	25
91 – 150 days past due		6		5		11
Greater than 150 days past due		57		1		58

Total past due		74		20		94
Current		341		601		942

Total vacation ownership notes receivable	$	415	$	621	$	1,036

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

FINANCIAL INSTRUMENTS

8 Months Ended

Sep. 12, 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 September 12, 2014				At January 3, 2014
*($ in millions)*	Carrying Amount		Fair Value⁽¹⁾		Carrying Amount		Fair Value⁽¹⁾
Vacation ownership notes receivable — securitized	$	580	$	693	$	719	$	865
Vacation ownership notes receivable — non-securitized		332		376		251		267

Total financial assets	$	912	$	1,069	$	970	$	1,132

Non-recourse debt associated with vacation ownership notes receivable securitizations	$	(534)	$	(546)	$	(674)	$	(695)
Other debt		(4)		(4)		(4)		(4)
Mandatorily redeemable preferred stock of consolidated subsidiary		(40)		(44)		(40)		(44)
Liability for Marriott Rewards customer loyalty program		(92)		(86)		(114)		(110)
Other liabilities		(6)		(6)		(6)		(6)

Total financial liabilities	$	(676)	$	(686)	$	(838)	$	(859)

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

Vacation Ownership Notes Receivable

We estimate the fair value of our securitized vacation ownership notes receivable using a discounted cash flow model. We believe this is comparable to the model that an independent third party would use in the current market. Our model uses default rates, prepayment rates, coupon rates and loan terms for our securitized vacation ownership notes receivable portfolio as key drivers of risk and relative value, that when applied in combination with pricing parameters, 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 asset-backed securities (“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 September 12, 2014				At January 3, 2014
*($ in millions)*	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Vacation ownership notes receivable — eligible for securitization	$	193	$	237	$	73	$	89
Vacation ownership notes receivable — not eligible for securitization		139		139		178		178

Total vacation ownership notes receivable — non-securitized	$	332	$	376	$	251	$	267

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. 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.

DISPOSITIONS	8 Months Ended
DISPOSITIONS	Sep. 12, 2014
Discontinued Operations and Disposal Groups [Abstract]
DISPOSITIONS	5. DISPOSITIONS We entered into the following disposition transactions in furtherance of our initiative to dispose of excess undeveloped and partially developed land. During the third quarter of 2014, we entered into a purchase and sale agreement to dispose of undeveloped and partially developed land, an operating golf course, spa and clubhouse and related facilities, at The Abaco Club on Winding Bay (“The Abaco Club”) in the Bahamas. The transaction contemplated by the purchase and sale agreement is subject to a number of closing conditions, and we cannot be certain that the transaction will be completed in a timely manner, or at all. If the transaction is completed as contemplated by the purchase and sale agreement, we will account for the sale under the full accrual method in accordance with the guidance on accounting for sales of real estate. See Footnote No. 8, “Contingencies and Commitments,” for additional discussion of this pending transaction. During the second quarter of 2014, we completed the sale of a parcel of undeveloped land on Singer Island, Florida for gross cash proceeds of $11 million. We accounted for the sale under the full accrual method in accordance with the guidance on accounting for sales of real estate and recorded a gain of less than $1 million, which is included in the Gains and other income line on the Statement of Income for the thirty-six weeks ended September 12, 2014. During the second quarter of 2014, we entered into a purchase and sale agreement to dispose of undeveloped and partially developed land, an operating golf course and related assets, in Kauai, Hawaii for $60 million in gross cash proceeds. The transaction contemplated by the purchase and sale agreement is subject to a number of closing conditions, and we cannot be certain that the transaction will be completed in a timely manner, or at all. If the transaction is completed as contemplated by the purchase and sale agreement, we will account for the sale under the full accrual method in accordance with the guidance on accounting for sales of real estate. During the first quarter of 2014, we disposed of a golf course and adjacent undeveloped land in Orlando, Florida for $24 million in gross cash proceeds. As a condition of the sale, we will continue to operate the golf course until the end of the first quarter of 2015 at our own risk. We will utilize the performance of services method to record a gain from the sale, which we estimate will be between $2 million to $3 million over the period during which we will operate the golf course, of which approximately $2 million is included in the Gains and other income line on the Statement of Income for the thirty-six weeks ended September 12, 2014.

Commitments and Contingencies Disclosure [Abstract]

The entire disclosure for the facts and circumstances leading to the completed or expected disposal, manner and timing of disposal, the gain (loss) recognized in the income statement and the income statement caption that includes that gain (loss), amounts of revenues and pretax profit or loss reported in discontinued operations, the segment in which the disposal group was reported, and the classification (whether sold or classified as held for sale) and carrying value of the assets and liabilities comprising the disposal group. Includes all disposal groups, including those classified as components of the entity (discontinued operations).

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6360339&loc=d3e1436-107760

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6360339&loc=d3e1361-107760

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6360339&loc=d3e1474-107760

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 50
-Paragraph 5
-URI http://asc.fasb.org/extlink&oid=6360339&loc=d3e1510-107760

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 45
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6892542&loc=d3e957-107759

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 45
-Paragraph 5
-URI http://asc.fasb.org/extlink&oid=6892542&loc=d3e1020-107759

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 45
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=6892542&loc=d3e1012-107759

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 360
-SubTopic 10
-Section 45
-Paragraph 5
-URI http://asc.fasb.org/extlink&oid=8077374&loc=d3e2443-110228

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 360
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6391110&loc=d3e2941-110230

+ Details

EARNINGS PER SHARE

8 Months Ended

Sep. 12, 2014

Earnings Per Share [Abstract]

EARNINGS PER SHARE

6. EARNINGS PER SHARE

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

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


	Twelve Weeks Ended				Thirty-Six Weeks Ended
*(in millions, except per share amounts)*	September 12, 2014 ⁽¹⁾		September 6, 2013 ⁽²⁾		September 12, 2014 ⁽¹⁾		September 6, 2013 ⁽²⁾
Computation of Basic Earnings Per Share
Net income	$	25	$	25	$	80	$	74
Weighted average shares outstanding		33.4		35.5		34.2		35.4

Basic earnings per share	$	0.77	$	0.70	$	2.35	$	2.10

Computation of Diluted Earnings Per Share
Net income	$	25	$	25	$	80	$	74

Weighted average shares outstanding		33.4		35.5		34.2		35.4
Effect of dilutive securities
Employee stock options and SARs		0.5		0.7		0.6		0.7
Restricted stock units		0.5		0.5		0.4		0.5

Shares for diluted earnings per share		34.4		36.7		35.2		36.6

Diluted earnings per share	$	0.75	$	0.67	$	2.28	$	2.03

⁽¹⁾

⁽²⁾

For the twelve and thirty-six week periods ended September 12, 2014 and September 6, 2013, we have not excluded any shares underlying stock options or stock appreciation rights (“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.

INVENTORY

8 Months Ended

Sep. 12, 2014

Inventory Disclosure [Abstract]

INVENTORY

7. INVENTORY

The following table shows the composition of our inventory balances:


*($ in millions)*	At September 12, 2014		At January 3, 2014
Finished goods ⁽¹⁾	$	446	$	369
Work-in-progress⁽²⁾		—		151
Land and infrastructure ⁽³⁾		348		344

Real estate inventory		794		864
Operating supplies and retail inventory		5		6

	$	799	$	870

⁽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 vacation ownership products under active construction for which a certificate of occupancy has not been received.

⁽³⁾	Includes sales centers that are expected to be converted into vacation ownership products to be sold in the future.

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

CONTINGENCIES AND COMMITMENTS

8 Months Ended

Sep. 12, 2014

CONTINGENCIES AND COMMITMENTS

8. 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 these guarantees 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 financed 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 September 12, 2014		Liability for Expected Future Fundings At September 12, 2014
Segment
Asia Pacific	$	10	$	—
North America		3		—

Total guarantees where we are the primary obligor	$	13	$	—

We included our liability of less than $1 million for expected future fundings for guarantees on our Balance Sheet at September 12, 2014 in the Other caption within Liabilities.

Commitments and Letters of Credit

In addition to the guarantees we describe in the preceding paragraphs, as of September 12, 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 aggregate commitments under these contracts were $39 million, of which we expect $3 million, $13 million, $8 million, $6 million, $3 million and $6 million will be paid in 2014, 2015, 2016, 2017, 2018 and thereafter, respectively.

•

Commitments to subsidize vacation ownership associations were $3 million, which we expect will be paid in 2014.

Surety bonds issued as of September 12, 2014 totaled $76 million, the majority of which were requested by federal, state or local governments to secure payment of obligations related to our operations.

As of September 12, 2014, we had $3 million of letters of credit outstanding under our $200 million revolving credit facility (as amended, 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 settlements, in 2013 we reversed $1 million of the $41 million previously recognized expense recorded in 2012 in connection with these matters.

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 at the RCC San Francisco, 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. On September 5, 2014, we reached an agreement in principle to settle the Benner action, which agreement is subject to Court approval because the case is a putative class action. As a result of the agreement in principle, we recorded a charge of $3 million, which is included in the Litigation settlement line on the Statements of Income for the twelve and thirty-six weeks ended September 12, 2014. Court approval of the settlement of the Benner action would not affect the Gani and Wanless cases because none of the plaintiffs in those actions are members of the stipulated Benner class. We dispute the material allegations of the Gani and Wanless complaints and intend to defend against these actions vigorously. Given the early stages of the Gani and Wanless 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 The 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 of the claims asserted by plaintiffs. The Circuit Court subsequently granted our renewed motion to compel arbitration and referred the matter to arbitration. The Hawaii Supreme Court thereafter agreed to review the decision of the Intermediate Court of Appeals and heard oral argument in the case on April 3, 2014, but has not yet taken any 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. In the second quarter of 2014, we recorded a nominal charge as a result of the agreement by owners of two residential units to release their claims in this action.

In the fourth quarter of 2013, we reached an agreement with several parties involved in Kapalua Bay, 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”). 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. In addition, one residential owner provided a full release to us and other parties associated with the project. As a result, we recorded a charge of $8 million in 2013, which was partially offset by $7 million of income recorded for partial repayment of our previously fully reserved receivables due from the Joint Venture. Both were included in Impairment charges on equity investment on the consolidated statement of operations for the year ended January 3, 2014.

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 of the claims asserted by the plaintiffs, and the parties are currently engaged in arbitration. We dispute the material allegations in the amended complaint and in the statement of claim filed in the arbitration, and intend to defend against this action vigorously. Given the early stages of the action and the inherent uncertainties of litigation and arbitration, 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 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 certain 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. In April 2014, this action was abated for a period after we entered into a non-binding letter of intent to dispose of undeveloped and partially developed land, an operating golf course, spa and clubhouse and related facilities at The Abaco Club to an entity to be comprised of certain members of The Abaco Club, including certain of the plaintiffs, and others. See Footnote No. 5, “Dispositions,” for information regarding the purchase and sale agreement subsequently executed by the parties to the letter of intent. Although the abatement period provided by the letter of intent has elapsed, the civil action remains inactive. The transaction contemplated by the purchase and sale agreement is subject to a number of closing conditions, and we cannot be certain that the transaction will be completed in a timely manner, or at all. If the transaction is completed as contemplated by the purchase and sale agreement, we could incur a non-cash loss of up to $25 million, and all claims asserted against us in this matter would be dismissed with prejudice.

On March 27, 2014, Salvatore DeSantis, an owner of a one-week vacation ownership interest at Marriott’s Harbour Lake, a project within our North America segment, filed a complaint in Orange County, Florida, Circuit Court against us and certain of our subsidiaries on behalf of himself and a putative class consisting of all owners of weeks-based Marriott Vacation Club vacation ownership interests on June 20, 2010, the date of the launch of our North America points-based program, Marriott Vacation Club Destinations ^™ (“MVCD”). The plaintiff alleges that the introduction of the MVCD program caused an actionable decrease in the value of his vacation ownership interest. The relief sought includes compensatory and exemplary damages, restitution, injunctive relief, interest and attorneys’ fees pursuant to the Florida Unfair and Deceptive Trade Practices Act and common-law theories of breach of contract and breach of an implied covenant of good faith and fair dealing. We removed the matter to the United States District Court for the Middle District of Florida. On May 30, 2014, we filed a motion to dismiss. In response, plaintiffs filed an amended complaint, to which we responded by filing a renewed motion to dismiss on July 31, 2014, which motion is currently pending before the Court. 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.

On May 20, 2014, we received notices of intent to initiate litigation or arbitration from: Michael and Marla Flynn, owners of weeks-based Marriott Vacation Club vacation ownership products at two of our resorts in Hawaii; two owners of such products at one of our resorts in California; and William Sterman, an owner of such products at one of our resorts in Massachusetts. The claimants, all of whom are represented by a single law firm, make allegations similar to those alleged by Mr. DeSantis discussed above that the introduction of the MVCD program caused an actionable decrease in the value of their vacation ownership interests. The claimants stated that, if a satisfactory resolution of their concerns cannot be achieved, they would pursue their claims through litigation or arbitration, each on behalf of a putative class consisting of themselves and all others similarly situated. The notices indicated that the relief that would be sought would include compensatory and exemplary damages, restitution, injunctive relief, interest and attorneys’ fees pursuant to applicable timeshare and unfair trade practices acts and common-law theories of breach of contract and breach of an implied covenant of good faith and fair dealing. The Flynns and Mr. Sterman filed claims based on the allegations listed above with the American Arbitration Association on August 6, 2014, and August 19, 2014, respectively. We filed answering statements in each proceeding, and initiated declaratory judgment actions in the United States District Courts of Hawaii and the Middle District of Florida against the Flynns and Mr. Sterman, respectively, seeking to enjoin the arbitration proceedings. We dispute the material allegations in the arbitration claims, as well as the allegations in the notice from the California owners, and intend to defend against them vigorously. Given the early stages of the arbitration proceedings and the related litigation, we cannot estimate a range of 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 $19 million, of which $9 million is included within liabilities on our Balance Sheet at September 12, 2014. 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.

During the second quarter of 2014, we agreed to settle a dispute with a service provider relating to services provided to us prior to 2011. In connection with the settlement, we received a one-time payment of $8 million after the end of the second quarter from the service provider, which no longer provides services to us. We recorded a gain of $8 million as a result of the settlement, which is included in the Litigation settlement line on the Statement of Income for the thirty-six weeks ended September 12, 2014.

DEBT

8 Months Ended

Sep. 12, 2014

Debt Disclosure [Abstract]

DEBT

9. DEBT

The following table provides detail on our debt balances:


*($ in millions)*	At September 12, 2014		At January 3, 2014
Vacation ownership notes receivable securitizations, interest rates ranging from 2.2% to 7.2% (weighted average interest rate of 3.5%) ⁽¹⁾	$	534	$	674
Other		4		4

	$	538	$	678

⁽¹⁾	Interest rates are as of September 12, 2014.

See Footnote No. 13, “Variable Interest Entities,” for a discussion of the collateral for the non-recourse debt associated with the securitized vacation ownership notes receivable and our non-recourse warehouse credit facility (the “Warehouse Credit Facility”). All of our other debt was, and to the extent currently outstanding is, recourse to us but unsecured. As of the end of the third quarter of 2014, the Warehouse Credit Facility was scheduled to terminate 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. See Footnote No. 16, “Subsequent Events,” for a discussion of the renewal of the Warehouse Credit Facility, pursuant to which, among other things, the termination date was changed to September 15, 2016. 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 the second quarter of 2014, we completed the securitization of a pool of $24 million of primarily highly-seasoned vacation ownership notes receivable that we had previously classified as not being eligible for securitization. In connection with the securitization, investors purchased in a private placement $23 million in vacation ownership loan backed notes from the Kyuka Owner Trust 2014-A (the “2014-A Trust”) with a per annum interest rate of 6.25 percent. We received gross cash proceeds of $23 million, before transaction expenses and required reserves. In addition, we received a subordinated residual interest in the 2014-A Trust through which we expect to realize the remaining value of the securitized loans over time. Of the $23 million, less than $1 million was used to pay transaction expenses and fund required reserves. The remainder will be used for general corporate purposes. We accounted for the securitization as a secured borrowing and therefore did not recognize a gain or loss as a result of this transaction. The securitized loans had previously been classified as not being eligible for securitization using criteria applicable to then current securitization transactions in the ABS market because they did not meet certain representation criteria required in such securitizations, or because of other factors that may have reflected investor demand in a securitization transaction. See Footnote No. 16, “Subsequent Events,” for information on a securitization transaction completed subsequent to the end of the third quarter of 2014.

Although no cash borrowings were outstanding as of September 12, 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 the assets of the borrower under, and guarantors of, that facility (which include most of our entities that are organized in the U.S.), 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	$	34	$	—	$	34
2015		97		—		97
2016		92		—		92
2017		64		—		64
2018		54		—		54
Thereafter		193		4		197

Balance at September 12, 2014	$	534	$	4	$	538

⁽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 $19 million in the thirty-six weeks ended September 12, 2014 and $26 million in the thirty-six weeks ended September 6, 2013.

Debt Associated with Vacation Ownership Notes Receivable Securitizations

Each of the transactions in which we have securitized vacation ownership notes receivable contains various triggers relating to the performance of the underlying vacation ownership notes receivable. If a pool of securitized vacation ownership notes receivable fails to perform within the pool’s established parameters (default or delinquency thresholds vary by transaction), transaction provisions effectively redirect the monthly excess spread we would otherwise receive from that pool (attributable to the interests we retained) to accelerate the principal payments to investors (taking into account the subordination of the different tranches to the extent there are multiple tranches) until the performance trigger is cured. During the thirty-six weeks ended September 12, 2014, and as of September 12, 2014, no pools failed to perform within the established parameters. As of September 12, 2014, we had 7 securitized vacation ownership notes receivable pools outstanding.

Revolving Corporate Credit Facility

On September 10, 2014, we amended and restated the Revolving Corporate Credit Facility. The amendment and restatement resulted in, among other things, an extension of the final maturity of the lenders’ commitments from November 21, 2016 to September 10, 2019, a decrease in the interest margin on borrowings, lower commitment fees on unused availability and additional flexibility on determining whether to pledge certain collateral. Terms of the Revolving Corporate Credit Facility as amended and restated are described below.

The Revolving Corporate Credit Facility has a borrowing capacity of $200 million, including a letter of credit sub-facility of $100 million, and provides support for our business, including ongoing liquidity and letters of credit. Borrowings under the Revolving Corporate Credit Facility generally bear interest at a floating rate at the Eurodollar rate plus an applicable margin that varies from 1.625 percent to 3.125 percent depending on our credit rating. In addition, we pay a commitment fee on the unused availability under the Revolving Corporate Credit Agreement at a rate that varies from 20 basis points per annum to 50 basis points per annum.

The Revolving Corporate Credit Facility contains affirmative and negative covenants and representations and warranties customary for financings of this type. In addition, the Revolving Corporate Credit Facility contains financial covenants, including covenants requiring us to maintain (1) a minimum consolidated tangible net worth (as defined in the Revolving Corporate Credit Facility); (2) a maximum ratio of consolidated total debt to consolidated adjusted EBITDA (as defined in the Revolving Corporate Credit Facility) of 5.25 to 1; (3) a minimum consolidated adjusted EBITDA to interest expense ratio of not less than 3 to 1 and a ratio of our borrowing base amount (as defined in the Revolving Corporate Credit Facility) to the sum of (i) total extensions of credit under the Revolving Corporate Credit Facility and (ii) the excess (if any) of all unrealized losses over all unrealized profits of certain swap agreements of at least 1.25 to 1.

The Revolving Corporate Credit Facility is guaranteed by Marriott Vacations Worldwide and by each of our direct and indirect, existing and future, domestic subsidiaries (excluding certain bankruptcy remote special purpose subsidiaries), and is secured by a perfected first priority security interest in substantially all of our assets and the assets of the guarantors, subject to certain exceptions. As of September 12, 2014, we were in compliance with the requirements of applicable financial and operating covenants.

MANDATORILY REDEEMABLE PREFERRED STOCK OF CONSOLIDATED SUBSIDIARY	8 Months Ended
	Sep. 12, 2014
Text Block [Abstract]
MANDATORILY REDEEMABLE PREFERRED STOCK OF CONSOLIDATED SUBSIDIARY	10. 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) at par. The Series A preferred stock has an aggregate liquidation preference of $40 million plus any accrued and unpaid dividends and an additional premium if liquidation occurs during the first five years after the issuance of the preferred stock. As of September 12, 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.

SHAREHOLDERS' EQUITY

8 Months Ended

Sep. 12, 2014

Equity [Abstract]

SHAREHOLDERS' EQUITY

11. SHAREHOLDERS’ EQUITY

Marriott Vacations Worldwide has 100,000,000 authorized shares of common stock, par value of $.01 per share. At September 12, 2014, there were 35,961,779 shares of Marriott Vacations Worldwide common stock issued, of which 32,998,759 shares were outstanding and 2,963,020 shares were held as treasury stock. At January 3, 2014, there were 35,637,765 shares of Marriott Vacations Worldwide common stock issued, of which 35,132,742 shares were outstanding and 505,023 shares 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 September 12, 2014 or January 3, 2014.

The following table details changes in shareholders’ equity during the thirty-six weeks ended September 12, 2014:


*($ in millions)*	Treasury Stock		Additional Paid-In Capital		Accumulated Other Comprehensive Income		Retained Earnings		Total Equity
Balance at January 3, 2014	$	(26)	$	1,130	$	23	$	82	$	1,209
Net income		—		—		—		80		80
Foreign currency translation adjustments		—		—		(3)		—		(3)
Amounts related to share-based compensation		—		6		—		—		6
Adjustment to reclassification of Marriott International investment to Additional paid-in capital⁽¹⁾		—		(2)		—		—		(2)
Repurchase of common stock		(135)		(25)		—		—		(160)

Balance at September 12, 2014	$	(161)	$	1,109	$	20	$	162	$	1,130

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

Share 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 trading plans pursuant to the provisions of Rule 10b5-1 under the Securities Exchange Act of 1934, as amended.

The following table summarizes share repurchase activity under our current share repurchase program for the thirty-six weeks ended September 12, 2014:


*($ in millions, except per share amounts)*	Number of Shares Repurchased		Cost of Shares Repurchased		Average Price Paid per Share
As of January 3, 2014		505,023	$	26	$	50.76
For the thirty-six weeks ended September 12, 2014		2,457,997		135		54.99

As of September 12, 2014		2,963,020	$	161	$	54.26

On September 11, 2014, pursuant to our share repurchase program, we entered into an agreement with a financial institution to repurchase $25 million of our common stock under an accelerated share repurchase program. Upon completion of the program, subsequent to the end of the third quarter of 2014, the financial institution had delivered 401,291 shares of common stock, which are not included in the table above. See Footnote No. 16, “Subsequent Events” for additional information on our share repurchase program.

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

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.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08.(d),(e))
-URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21484-112644

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 310
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SAB TOPIC 4.E)
-URI http://asc.fasb.org/extlink&oid=27010918&loc=d3e74512-122707

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 5
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21488-112644

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02.29-31)
-URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section S99
-Paragraph 4
-Subparagraph (SAB TOPIC 4.C)
-URI http://asc.fasb.org/extlink&oid=27012166&loc=d3e187143-122770

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 6
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21506-112644

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.3-04)
-URI http://asc.fasb.org/extlink&oid=27012166&loc=d3e187085-122770

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 30
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6405834&loc=d3e23285-112656

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21475-112644

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Preferred Stock
-URI http://asc.fasb.org/extlink&oid=6521494

Reference 12: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21463-112644

Reference 13: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 11
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21564-112644

Reference 14: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 08
-Paragraph d
-Article 4

Reference 15: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-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

+ Details

SHARE-BASED COMPENSATION

8 Months Ended

Sep. 12, 2014

SHARE-BASED COMPENSATION

12. SHARE-BASED COMPENSATION

A total of 6 million shares were authorized for issuance under the Marriott Vacations Worldwide Corporation Stock and Cash Incentive Plan (the “Marriott Vacations Worldwide Stock Plan”). As of September 12, 2014, approximately 2 million shares were available for grants under the Marriott Vacations Worldwide Stock Plan.

For share-based awards with service-only vesting conditions, we measure compensation expense related to share-based payment transactions with our employees and non-employee directors at fair value on the grant date. With respect to our employees, we recognize this expense on the Statements of Income 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.

We recorded share-based compensation expense related to award grants to our officers, directors and employees of $3 million for each of the twelve weeks ended September 12, 2014 and September 6, 2013, and $9 million and $8 million for the thirty-six weeks ended September 12, 2014 and September 6, 2013, respectively. Our deferred compensation liability related to unvested awards held by our employees totaled $16 million and $13 million at September 12, 2014 and January 3, 2014, respectively.

Restricted Stock Units (“RSUs”)

We granted 163,685 RSUs, exclusive of RSUs with performance vesting conditions, to our employees and non-employee directors during the thirty-six weeks ended September 12, 2014. RSUs issued to our employees generally vest over four years in annual installments commencing one year after the date of grant. RSUs issued to our non-employee directors vest on the date of grant. RSUs granted during the thirty-six weeks ended September 12, 2014 had a weighted average grant-date fair value of $52.51.

During the thirty-six weeks ended September 12, 2014, 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 number of RSUs that may be earned under the RSUs with performance-based vesting criteria granted during the thirty-six weeks ended September 12, 2014 is approximately 62,000.

Stock Appreciation Rights (“SARs”)

We granted 57,906 SARs to members of management during the thirty-six weeks ended September 12, 2014. These SARs had a weighted average grant-date fair value of $27.98 and an exercise price of $52.09. SARs generally expire ten years after the date of grant and both vest and may be exercised in cumulative installments of one quarter of the grant at the end of each of the first four years following the date of grant.

We use the Black-Scholes model to estimate the fair value of the SARs granted. For SARs granted under the Marriott Vacations Worldwide Stock Plan during the thirty-six weeks ended September 12, 2014, the expected stock price volatility was calculated based on the historical volatility from the stock prices of a group of identified peer companies. The average expected life was calculated using the simplified method. The risk-free interest rate was calculated based on U.S. Treasury zero-coupon issues with a remaining term equal to the expected life assumed at the date of grant. The expected annual dividend per share was $0 based on our expected dividend rate.

The following table outlines the assumptions used to estimate the fair value of grants during the thirty-six weeks ended September 12, 2014, all of which were issued in the first quarter of 2014:


Expected volatility	55.10	%
Dividend yield	0.00	%
Risk-free rate	1.84	%
Expected term (in years)	6.25

VARIABLE INTEREST ENTITIES

8 Months Ended

Sep. 12, 2014

Organization, Consolidation and Presentation of Financial Statements [Abstract]

VARIABLE INTEREST ENTITIES

13. 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 on our Balance Sheet at September 12, 2014:


*($ in millions)*	Vacation Ownership Notes Receivable Securitizations		Warehouse Credit Facility		Total
Consolidated Assets
Vacation ownership notes receivable, net of reserves	$	580	$	—	$	580
Interest receivable		3		—		3
Restricted cash		36		—		36

Total	$	619	$	—	$	619


Consolidated Liabilities
Interest payable	$	2	$	—	$	2
Debt		534		—		534

Total	$	536	$	—	$	536

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

The following table shows the interest income and expense recognized as a result of our involvement with these variable interest entities during the twelve weeks ended September 12, 2014:


*($ in millions)*	Vacation Ownership Notes Receivable Securitizations		Warehouse Credit Facility		Total
Interest income	$	19	$	—	$	19
Interest expense to investors	$	4	$	1	$	5
Debt issuance cost amortization	$	1	$	—	$	1

The following table shows the interest income and expense recognized as a result of our involvement with these variable interest entities during the thirty-six weeks ended September 12, 2014:


*($ in millions)*	Vacation Ownership Notes Receivable Securitizations		Warehouse Credit Facility		Total
Interest income	$	60	$	—	$	60
Interest expense to investors	$	14	$	1	$	15
Debt issuance cost amortization	$	2	$	1	$	3

The following table shows cash flows between us and the vacation ownership notes receivable securitization variable interest entities during the thirty-six weeks ended September 12, 2014 and September 6, 2013:


	Thirty-Six Weeks Ended
*($ in millions)*	September 12, 2014		September 6, 2013
Cash Inflows
Net proceeds from vacation ownership notes receivable securitization	$	23	$	246
Principal receipts		125		117
Interest receipts		61		63
Reserve release		2		—

Total		211		426

Cash Outflows
Principal to investors		(118)		(107)
Voluntary repurchases of defaulted vacation ownership notes receivable		(18)		(19)
Voluntary clean-up call		(27)		(51)
Interest to investors		(14)		(17)

Total		(177)		(194)

Net Cash Flows	$	34	$	232

The following table shows cash flows between us and the Warehouse Credit Facility variable interest entity during the thirty-six weeks ended September 12, 2014 and September 6, 2013:


	Thirty-Six Weeks Ended
*($ in millions)*	September 12, 2014		September 6, 2013
Cash Inflows
Net proceeds from vacation ownership notes receivable securitization	$	—	$	109
Principal receipts		—		16
Interest receipts		—		7
Reserve release		—		1

Total		—		133

Cash Outflows
Principal to investors		—		(13)
Repayment of Warehouse Credit Facility		—		(98)
Interest to investors		(1)		(2)

Total		(1)		(113)

Net Cash Flows	$	(1)	$	20

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. 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 the Joint Venture, a variable interest entity that previously developed and marketed vacation ownership and residential products in Hawaii. We concluded that the Joint Venture is a variable interest entity because the equity investment at risk is not sufficient to permit it to finance its activities without additional support from other venture parties. We determined that we are not the primary beneficiary of the Joint Venture, as power to direct the activities that most significantly impact its economic performance is shared among the variable interest holders and, therefore, we do not consolidate the Joint Venture. In 2009, we fully impaired our equity investment in the Joint Venture and in certain notes receivable due from the Joint Venture. 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 Joint 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 Joint 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 Joint Venture. As a result of the Kapalua Bay Settlement discussed in Footnote No. 8, “Contingencies and Commitments,” the Joint Venture’s obligations with respect to the remaining receivables were terminated.

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 Joint Venture, and other agreements pursuant to which we provided services to the Joint 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. At September 12, 2014, we have an accrual of $8 million for potential future funding obligations, representing our remaining expected exposure to loss related to our involvement with the Joint Venture exclusive of any future costs that may be incurred pursuant to outstanding litigation matters, including those discussed in Footnote No. 8, “Contingencies and Commitments.”

ORGANIZATIONAL AND SEPARATION RELATED CHARGES	8 Months Ended
ORGANIZATIONAL AND SEPARATION RELATED CHARGES	Sep. 12, 2014
Text Block [Abstract]
ORGANIZATIONAL AND SEPARATION RELATED CHARGES	14. 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 had 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 be substantially completed by the end of 2015. Organizational and separation related charges as reflected on our Statements of Income were $1 million and $4 million for the twelve weeks ended September 12, 2014 and September 6, 2013, respectively, and $3 million and $7 million for the thirty-six weeks ended September 12, 2014 and September 6, 2013, respectively. In addition, $2 million and $4 million of additional separation related charges were capitalized to Property and equipment on our Balance Sheets during the thirty-six weeks ended September 12, 2014 and September 6, 2013, respectively.

BUSINESS SEGMENTS

8 Months Ended

Sep. 12, 2014

Segment Reporting [Abstract]

BUSINESS SEGMENTS

15. 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.

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, other financing expenses or general and administrative expenses to our segments. 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


	Twelve Weeks Ended				Thirty-Six Weeks Ended
*($ in millions)*	September 12, 2014		September 6, 2013⁽¹⁾		September 12, 2014⁽¹⁾		September 6, 2013⁽¹⁾
North America	$	364	$	365	$	1,093	$	1,077
Europe		38		36		97		107
Asia Pacific		11		11		35		39

Total segment revenues		413		412		1,225		1,223
Corporate and other		—		—		—		—

	$	413	$	412	$	1,225	$	1,223

⁽¹⁾

Europe and Asia Pacific segment revenues have been restated to correct certain immaterial prior period errors. For the thirty-six weeks ended September 12, 2014, $1 million of cost reimbursements related to the twelve weeks ended March 28, 2014 were reclassified from the Asia Pacific segment to the Europe segment. For the twelve and thirty-six weeks ended September 6, 2013, $2 million and $5 million of cost reimbursements were reclassified from the Asia Pacific segment to the Europe segment, respectively.

Net Income


	Twelve Weeks Ended				Thirty-Six Weeks Ended
*($ in millions)*	September 12, 2014		September 6, 2013		September 12, 2014		September 6, 2013
North America	$	86	$	87	$	267	$	249
Europe		6		7		13		19
Asia Pacific		1		—		4		5

Total segment financial results		93		94		284		273
Corporate and other		(50)		(54)		(151)		(159)
Provision for income taxes		(18)		(15)		(53)		(40)

	$	25	$	25	$	80	$	74

Assets


*($ in millions)*	At September 12, 2014		At January 3, 2014
North America	$	1,966	$	2,125
Europe		98		103
Asia Pacific		82		84

Total segment assets		2,146		2,312
Corporate and other		201		320

	$	2,347	$	2,632

Our Spin-Off from Marriott International, Inc.

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.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 34
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8981-108599

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 41
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9038-108599

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 33
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8971-108599

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 12
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8595-108599

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8380-108599

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8933-108599

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 26
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8844-108599

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 35
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8984-108599

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 40
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9031-108599

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 42
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9054-108599

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 10
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8538-108599

Reference 12: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 29
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8864-108599

Reference 13: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 31
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8924-108599

Reference 14: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 30
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8906-108599

+ Details

SUBSEQUENT EVENTS	8 Months Ended
SUBSEQUENT EVENTS	Sep. 12, 2014
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	16. SUBSEQUENT EVENTS Renewal of Warehouse Credit Facility On September 15, 2014, we amended and restated the agreements associated with the Warehouse Credit Facility. As a result, the revolving period was extended to September 15, 2016, and borrowings under the Warehouse Credit Facility bear interest at a rate based on the one-month LIBOR and bank conduit commercial paper rates plus 1.0 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. Other terms of the Warehouse Credit Facility are substantially similar to those in effect prior to the amendment and restatement. Completion of Securitization Transaction On October 9, 2014, we completed a securitization of a pool of $250 million of vacation ownership notes receivable. Of such securitized loans, $205 million were purchased on October 9, 2014 by the MVW Owner Trust 2014-1 (the “2014-1 Trust”), and all or a portion of the remaining loans may be purchased by the 2014-1 Trust prior to February 16, 2015. In connection with the securitization, investors purchased in a private placement $240 million in vacation ownership loan backed notes (the “Notes”) from the 2014-1 Trust. Two classes of Notes were issued by the 2014-1 Trust: $216 million of Class A Notes and $24 million of Class B Notes. The Class A Notes have an interest rate of 2.25 percent and the Class B Notes have an interest rate of 2.70 percent, for an overall weighted average interest rate of 2.29 percent. Of the $240 million gross cash proceeds we received, $43 million will be held by the 2014-1 Trust until it purchases all or a portion of the remaining securitized loans or, if not used for such purpose, returned to the investors as a partial repayment of the Notes. Share Repurchase Program Approval by the Board On October 14, 2014, our Board of Directors approved the repurchase of up to an additional 3,400,000 shares of our common stock under our existing share repurchase program and extended the termination date of the program to March 26, 2016. The specific timing, amount and other terms of the repurchases will depend on market conditions, corporate and regulatory requirements and other factors. Acquired shares of our common stock are held as treasury shares carried at cost in our Financial Statements. In connection with the repurchase program, we are authorized to adopt one or more trading plans pursuant to the provisions of Rule 10b5-1 under the Securities Exchange Act of 1934, as amended. Declaration of Dividend On October 14, 2014 our Board of Directors declared a quarterly dividend of $0.25 per share to be paid on November 12, 2014 to shareholders of record as of October 28, 2014.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)

8 Months Ended

Sep. 12, 2014

Accounting Policies [Abstract]

Business Operations

Our Business

Our Spin-Off from Marriott International, Inc.

Principles of Consolidation and Basis of Presentation

Principles of Consolidation and Basis of Presentation


		Fiscal Year		Quarter-End Date
		2014 Third Quarter		September 12, 2014
		2014 Second Quarter		June 20, 2014
		2014 First Quarter		March 28, 2014
		2013 Third Quarter		September 6, 2013
		2013 Second Quarter		June 14, 2013
		2013 First Quarter		March 22, 2013

We have reclassified certain prior year amounts to conform to our 2014 presentation.

New Accounting Standards

New Accounting Standards

Future Adoption of Accounting Standards

Future Adoption of Accounting Standards

Accounting Standards Update No. 2014-09 – “Revenue from Contracts with Customers (Topic 606)” (“ASU No. 2014-09”)

Vacation Ownership Notes Receivable Reserve Policy

Loan Delinquency Policy

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

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

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)

8 Months Ended

Sep. 12, 2014

Accounting Policies [Abstract]


		Fiscal Year		Quarter-End Date
		2014 Third Quarter		September 12, 2014
		2014 Second Quarter		June 20, 2014
		2014 First Quarter		March 28, 2014
		2013 Third Quarter		September 6, 2013
		2013 Second Quarter		June 14, 2013
		2013 First Quarter		March 22, 2013

VACATION OWNERSHIP NOTES RECEIVABLE (Tables)

8 Months Ended

Sep. 12, 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)*	September 12, 2014		January 3, 2014
Vacation ownership notes receivable — securitized	$	580	$	719
Vacation ownership notes receivable — non-securitized
Eligible for securitization⁽¹⁾		193		73
Not eligible for securitization⁽¹⁾		139		178

Subtotal		332		251

Total vacation ownership notes receivable	$	912	$	970

⁽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	$	32	$	32	$	64
2015		50		94		144
2016		42		91		133
2017		32		87		119
2018		27		71		98
Thereafter		149		205		354

Balance at September 12, 2014	$	332	$	580	$	912

Weighted average stated interest rate at September 12, 2014		12.1%		12.8%		12.5%
Range of stated interest rates at September 12, 2014		0.0% to 19.5%		4.9% to 19.5%		0.0% to 19.5%

Interest Income Associated with Vacation Ownership Notes Receivable

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


*($ in millions)*	Twelve Weeks Ended				Thirty-Six Weeks Ended
*($ in millions)*	September 12, 2014		September 6, 2013		September 12, 2014		September 6, 2013
Interest income associated with vacation ownership notes receivable — securitized	$	19	$	23	$	60	$	70
Interest income associated with vacation ownership notes receivable — non-securitized		9		7		25		23

Total interest income associated with vacation ownership notes receivable	$	28	$	30	$	85	$	93

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

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


*($ in millions)*	Non-Securitized Vacation Ownership Notes Receivable		Securitized Vacation Ownership Notes Receivable		Total
Investment in vacation ownership notes receivable on non-accrual status at September 12, 2014	$	63	$	6	$	69
Investment in vacation ownership notes receivable on non-accrual status at January 3, 2014	$	69	$	8	$	77
Average investment in vacation ownership notes receivable on non-accrual status during the thirty-six weeks ended September 12, 2014	$	66	$	7	$	73
Average investment in vacation ownership notes receivable on non-accrual status during the thirty-six weeks ended September 6, 2013	$	73	$	8	$	81

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

The following table shows the aging of the recorded investment in principal, before reserves, in vacation ownership notes receivable as of September 12, 2014:


*($ in millions)*	Non-Securitized Vacation Ownership Notes Receivable		Securitized Vacation Ownership Notes Receivable		Total
31 – 90 days past due	$	11	$	14	$	25
91 – 150 days past due		6		5		11
Greater than 150 days past due		57		1		58

Total past due		74		20		94
Current		341		601		942

Total vacation ownership notes receivable	$	415	$	621	$	1,036

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

Vacation Ownership

Notes Receivable Reserves

The following table summarizes the activity related to our vacation ownership notes receivable reserve for the thirty-six weeks ended September 12, 2014:


*($ in millions)*	Non-Securitized Vacation Ownership Notes Receivable Reserve		Securitized Vacation Ownership Notes Receivable Reserve		Total
Balance at January 3, 2014	$	82	$	52	$	134
Provision for loan losses		15		7		22
Securitizations		(2)		2		—
Clean-up calls ⁽¹⁾		2		(2)		—
Write-offs		(32)		—		(32)
Defaulted vacation ownership notes receivable repurchase activity ⁽²⁾		18		(18)		—

Balance at September 12, 2014	$	83	$	41	$	124

⁽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 securitized vacation ownership notes receivable.

FINANCIAL INSTRUMENTS (Tables)

8 Months Ended

Sep. 12, 2014

Carrying Values and Estimated Fair Values of Financial Assets and Liabilities


	At September 12, 2014				At January 3, 2014
*($ in millions)*	Carrying Amount		Fair Value⁽¹⁾		Carrying Amount		Fair Value⁽¹⁾
Vacation ownership notes receivable — securitized	$	580	$	693	$	719	$	865
Vacation ownership notes receivable — non-securitized		332		376		251		267

Total financial assets	$	912	$	1,069	$	970	$	1,132

Non-recourse debt associated with vacation ownership notes receivable securitizations	$	(534)	$	(546)	$	(674)	$	(695)
Other debt		(4)		(4)		(4)		(4)
Mandatorily redeemable preferred stock of consolidated subsidiary		(40)		(44)		(40)		(44)
Liability for Marriott Rewards customer loyalty program		(92)		(86)		(114)		(110)
Other liabilities		(6)		(6)		(6)		(6)

Total financial liabilities	$	(676)	$	(686)	$	(838)	$	(859)

⁽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


	At September 12, 2014				At January 3, 2014
*($ in millions)*	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Vacation ownership notes receivable — eligible for securitization	$	193	$	237	$	73	$	89
Vacation ownership notes receivable — not eligible for securitization		139		139		178		178

Total vacation ownership notes receivable — non-securitized	$	332	$	376	$	251	$	267

EARNINGS PER SHARE (Tables)

8 Months Ended

Sep. 12, 2014

Earnings Per Share [Abstract]

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

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


	Twelve Weeks Ended				Thirty-Six Weeks Ended
*(in millions, except per share amounts)*	September 12, 2014 ⁽¹⁾		September 6, 2013 ⁽²⁾		September 12, 2014 ⁽¹⁾		September 6, 2013 ⁽²⁾
Computation of Basic Earnings Per Share
Net income	$	25	$	25	$	80	$	74
Weighted average shares outstanding		33.4		35.5		34.2		35.4

Basic earnings per share	$	0.77	$	0.70	$	2.35	$	2.10

Computation of Diluted Earnings Per Share
Net income	$	25	$	25	$	80	$	74

Weighted average shares outstanding		33.4		35.5		34.2		35.4
Effect of dilutive securities
Employee stock options and SARs		0.5		0.7		0.6		0.7
Restricted stock units		0.5		0.5		0.4		0.5

Shares for diluted earnings per share		34.4		36.7		35.2		36.6

Diluted earnings per share	$	0.75	$	0.67	$	2.28	$	2.03

⁽¹⁾

⁽²⁾

INVENTORY (Tables)

8 Months Ended

Sep. 12, 2014

Inventory Disclosure [Abstract]

Composition of Inventory

The following table shows the composition of our inventory balances:


*($ in millions)*	At September 12, 2014		At January 3, 2014
Finished goods ⁽¹⁾	$	446	$	369
Work-in-progress⁽²⁾		—		151
Land and infrastructure ⁽³⁾		348		344

Real estate inventory		794		864
Operating supplies and retail inventory		5		6

	$	799	$	870

⁽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 vacation ownership products under active construction for which a certificate of occupancy has not been received.

⁽³⁾	Includes sales centers that are expected to be converted into vacation ownership products to be sold in the future.

CONTINGENCIES AND COMMITMENTS (Tables)

8 Months Ended

Sep. 12, 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 September 12, 2014		Liability for Expected Future Fundings At September 12, 2014
Segment
Asia Pacific	$	10	$	—
North America		3		—

Total guarantees where we are the primary obligor	$	13	$	—

DEBT (Tables)

8 Months Ended

Sep. 12, 2014

Debt Disclosure [Abstract]

Debt Balances

The following table provides detail on our debt balances:


*($ in millions)*	At September 12, 2014		At January 3, 2014
Vacation ownership notes receivable securitizations, interest rates ranging from 2.2% to 7.2% (weighted average interest rate of 3.5%) ⁽¹⁾	$	534	$	674
Other		4		4

	$	538	$	678

⁽¹⁾	Interest rates are as of September 12, 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	$	34	$	—	$	34
2015		97		—		97
2016		92		—		92
2017		64		—		64
2018		54		—		54
Thereafter		193		4		197

Balance at September 12, 2014	$	534	$	4	$	538

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

SHAREHOLDERS' EQUITY (Tables)

8 Months Ended

Sep. 12, 2014

Equity [Abstract]

Changes in Shareholders' Equity

The following table details changes in shareholders’ equity during the thirty-six weeks ended September 12, 2014:


*($ in millions)*	Treasury Stock		Additional Paid-In Capital		Accumulated Other Comprehensive Income		Retained Earnings		Total Equity
Balance at January 3, 2014	$	(26)	$	1,130	$	23	$	82	$	1,209
Net income		—		—		—		80		80
Foreign currency translation adjustments		—		—		(3)		—		(3)
Amounts related to share-based compensation		—		6		—		—		6
Adjustment to reclassification of Marriott International investment to Additional paid-in capital⁽¹⁾		—		(2)		—		—		(2)
Repurchase of common stock		(135)		(25)		—		—		(160)

Balance at September 12, 2014	$	(161)	$	1,109	$	20	$	162	$	1,130

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

Stock Repurchase Activity under Current Stock Repurchase Program

The following table summarizes share repurchase activity under our current share repurchase program for the thirty-six weeks ended September 12, 2014:


*($ in millions, except per share amounts)*	Number of Shares Repurchased		Cost of Shares Repurchased		Average Price Paid per Share
As of January 3, 2014		505,023	$	26	$	50.76
For the thirty-six weeks ended September 12, 2014		2,457,997		135		54.99

As of September 12, 2014		2,963,020	$	161	$	54.26

SHARE-BASED COMPENSATION (Tables)

8 Months Ended

Sep. 12, 2014

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Assumptions Used to Estimate Fair Value of Grants

The following table outlines the assumptions used to estimate the fair value of grants during the thirty-six weeks ended September 12, 2014, all of which were issued in the first quarter of 2014:


Expected volatility	55.10	%
Dividend yield	0.00	%
Risk-free rate	1.84	%
Expected term (in years)	6.25

VARIABLE INTEREST ENTITIES (Tables)

8 Months Ended

Sep. 12, 2014

Vacation Ownership Notes Receivable Securitizations

Cash Flows Between Company and Variable Interest Entities


	Thirty-Six Weeks Ended
*($ in millions)*	September 12, 2014		September 6, 2013
Cash Inflows
Net proceeds from vacation ownership notes receivable securitization	$	23	$	246
Principal receipts		125		117
Interest receipts		61		63
Reserve release		2		—

Total		211		426

Cash Outflows
Principal to investors		(118)		(107)
Voluntary repurchases of defaulted vacation ownership notes receivable		(18)		(19)
Voluntary clean-up call		(27)		(51)
Interest to investors		(14)		(17)

Total		(177)		(194)

Net Cash Flows	$	34	$	232

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 during the thirty-six weeks ended September 12, 2014 and September 6, 2013:


	Thirty-Six Weeks Ended
*($ in millions)*	September 12, 2014		September 6, 2013
Cash Inflows
Net proceeds from vacation ownership notes receivable securitization	$	—	$	109
Principal receipts		—		16
Interest receipts		—		7
Reserve release		—		1

Total		—		133

Cash Outflows
Principal to investors		—		(13)
Repayment of Warehouse Credit Facility		—		(98)
Interest to investors		(1)		(2)

Total		(1)		(113)

Net Cash Flows	$	(1)	$	20

Balance Sheet

Classifications of Consolidated Variable Interest Entities


*($ in millions)*	Vacation Ownership Notes Receivable Securitizations		Warehouse Credit Facility		Total
Consolidated Assets
Vacation ownership notes receivable, net of reserves	$	580	$	—	$	580
Interest receivable		3		—		3
Restricted cash		36		—		36

Total	$	619	$	—	$	619


Consolidated Liabilities
Interest payable	$	2	$	—	$	2
Debt		534		—		534

Total	$	536	$	—	$	536

Income Statement

Classifications of Consolidated Variable Interest Entities

The following table shows the interest income and expense recognized as a result of our involvement with these variable interest entities during the twelve weeks ended September 12, 2014:


*($ in millions)*	Vacation Ownership Notes Receivable Securitizations		Warehouse Credit Facility		Total
Interest income	$	19	$	—	$	19
Interest expense to investors	$	4	$	1	$	5
Debt issuance cost amortization	$	1	$	—	$	1

The following table shows the interest income and expense recognized as a result of our involvement with these variable interest entities during the thirty-six weeks ended September 12, 2014:


*($ in millions)*	Vacation Ownership Notes Receivable Securitizations		Warehouse Credit Facility		Total
Interest income	$	60	$	—	$	60
Interest expense to investors	$	14	$	1	$	15
Debt issuance cost amortization	$	2	$	1	$	3

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.

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

BUSINESS SEGMENTS (Tables)

8 Months Ended

Sep. 12, 2014

Segment Reporting [Abstract]

Revenues

Revenues


	Twelve Weeks Ended				Thirty-Six Weeks Ended
*($ in millions)*	September 12, 2014		September 6, 2013⁽¹⁾		September 12, 2014⁽¹⁾		September 6, 2013⁽¹⁾
North America	$	364	$	365	$	1,093	$	1,077
Europe		38		36		97		107
Asia Pacific		11		11		35		39

Total segment revenues		413		412		1,225		1,223
Corporate and other		—		—		—		—

	$	413	$	412	$	1,225	$	1,223

⁽¹⁾

Net Income

Net Income


	Twelve Weeks Ended				Thirty-Six Weeks Ended
*($ in millions)*	September 12, 2014		September 6, 2013		September 12, 2014		September 6, 2013
North America	$	86	$	87	$	267	$	249
Europe		6		7		13		19
Asia Pacific		1		—		4		5

Total segment financial results		93		94		284		273
Corporate and other		(50)		(54)		(151)		(159)
Provision for income taxes		(18)		(15)		(53)		(40)

	$	25	$	25	$	80	$	74

Assets

Assets


*($ in millions)*	At September 12, 2014		At January 3, 2014
North America	$	1,966	$	2,125
Europe		98		103
Asia Pacific		82		84

Total segment assets		2,146		2,312
Corporate and other		201		320

	$	2,347	$	2,632

Summary of Significant Accounting Policies - Additional Information (Detail)	8 Months Ended
	Sep. 12, 2014 Property Location Segment Line
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
Percent of the assets, liabilities, revenues, expenses and cash flows discussed	100.00%
Operations located outside the United States
Significant Accounting Policies [Line Items]
Number of countries and territories in which company operates \| Location	9

Each Reference to Particular Year in Financial Statements Means Fiscal Year Ended on Date Shown (Detail)	8 Months Ended
	Sep. 12, 2014
Fiscal Year 2014 \| Third Quarter
Quarterly Financial Information [Line Items]
Quarter-End Date	Sep. 12, 2014
Fiscal Year 2014 \| Second Quarter
Quarterly Financial Information [Line Items]
Quarter-End Date	Jun. 20, 2014
Fiscal Year 2014 \| First Quarter
Quarterly Financial Information [Line Items]
Quarter-End Date	Mar. 28, 2014
Fiscal Year 2013 \| Third Quarter
Quarterly Financial Information [Line Items]
Quarter-End Date	Sep. 06, 2013
Fiscal Year 2013 \| Second Quarter
Quarterly Financial Information [Line Items]
Quarter-End Date	Jun. 14, 2013
Fiscal Year 2013 \| First Quarter
Quarterly Financial Information [Line Items]
Quarter-End Date	Mar. 22, 2013

Income Taxes - Additional Information (Detail) - USD ($) $ in Millions	8 Months Ended
	Sep. 12, 2014	Jan. 03, 2014
Income Taxes [Line Items]
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.
Marriott International
Income Taxes [Line Items]
Increase/(decrease) in deferred tax liabilities	$ 2
Maximum
Income Taxes [Line Items]
Unrecognized tax benefits that, if recognized, would impact the effective tax rate	$ 1	$ 1

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

Sep. 12, 2014

Jan. 03, 2014

Securitized Vacation Ownership Notes Receivable

$ 912

$ 970

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

Eligible for Securitization

580

719

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

Not Eligible for Securitization

^[1]

193

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

Non-Securitized Vacation Ownership Notes Receivable

^[1]

139

178

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

Financing Receivable, Allowance for Credit Losses [Line Items]

$ 332

$ 251

[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	Sep. 12, 2014 USD ($)
Future Minimum Payments Receivable [Line Items]
2014	$ 64
2015	144
2016	133
2017	119
2018	98
Thereafter	354
Notes receivable	$ 912
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	$ 32
2015	50
2016	42
2017	32
2018	27
Thereafter	149
Notes receivable	$ 332
Weighted average stated interest rate	12.10%
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	$ 32
2015	94
2016	91
2017	87
2018	71
Thereafter	205
Notes receivable	$ 580
Weighted average stated interest rate	12.80%
Range of stated interest rates, minimum	4.90%
Range of stated interest rates, maximum	19.50%

Interest Income Associated With Vacation Ownership Notes Receivable (Detail) - USD ($) $ in Millions	3 Months Ended		8 Months Ended
	Sep. 12, 2014	Sep. 06, 2013	Sep. 12, 2014	Sep. 06, 2013
Accounts, Notes, Loans and Financing Receivable [Line Items]
Interest income associated with vacation ownership notes receivable	$ 28	$ 30	$ 85	$ 93
Securitized Vacation Ownership Notes Receivable
Accounts, Notes, Loans and Financing Receivable [Line Items]
Interest income associated with vacation ownership notes receivable	19	23	60	70
Non-Securitized Vacation Ownership Notes Receivable
Accounts, Notes, Loans and Financing Receivable [Line Items]
Interest income associated with vacation ownership notes receivable	$ 9	$ 7	$ 25	$ 23

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

8 Months Ended

Sep. 12, 2014

Sep. 06, 2013

$ 134

$ 26

Write-offs

(32)

Non-Securitized Vacation Ownership Notes Receivable

124

Financing Receivable, Allowance for Credit Losses [Line Items]

Defaulted vacation ownership notes receivable repurchase activity

Securitizations

(2)

Clean-up calls

^[1]

Write-offs

(32)

^[2]

Securitized Vacation Ownership Notes Receivable

Financing Receivable, Allowance for Credit Losses [Line Items]

Defaulted vacation ownership notes receivable repurchase activity

Securitizations

Clean-up calls

^[1]

(2)

^[2]

(18)

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

$ 41

[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 securitized vacation ownership notes receivable.

Vacation Ownership Notes Receivable - Additional Information (Detail) - USD ($) $ in Millions	8 Months Ended	12 Months Ended
	Sep. 12, 2014	Jan. 03, 2014
Receivables [Abstract]
Notes receivable estimated average remaining default rates	6.94%	7.13%
Estimated default rate increases that would have resulted an increase in allowance for credit losses	0.50%
Allowance for credit losses that would have been increased	$ 5	$ 5

Recorded Investment in Non-accrual Notes Receivable that are Ninety Days or More Past Due (Detail) - USD ($) $ in Millions	8 Months Ended
	Sep. 12, 2014	Sep. 06, 2013	Jan. 03, 2014
Financing Receivable, Recorded Investment, Past Due [Line Items]
Investment in notes receivable on non-accrual status	$ 69		$ 77
Average investment in notes receivable on non-accrual status	73	$ 81
Non-Securitized Vacation Ownership Notes Receivable
Financing Receivable, Recorded Investment, Past Due [Line Items]
Investment in notes receivable on non-accrual status	63		69
Average investment in notes receivable on non-accrual status	66	73
Securitized Vacation Ownership Notes Receivable
Financing Receivable, Recorded Investment, Past Due [Line Items]
Investment in notes receivable on non-accrual status	6		$ 8
Average investment in notes receivable on non-accrual status	$ 7	$ 8

Aging of Recorded Investment in Principal, Before Reserves, in Vacation Ownership Notes Receivable (Detail) - USD ($) $ in Millions	Sep. 12, 2014	Jan. 03, 2014
Financing Receivable, Recorded Investment, Past Due [Line Items]
31 - 90 days past due	$ 25	$ 34
91 - 150 days past due	11	15
Greater than 150 days past due	58	62
Total past due	94	111
Current	942	993
Total vacation ownership notes receivable	1,036	1,104
Non-Securitized Vacation Ownership Notes Receivable
Financing Receivable, Recorded Investment, Past Due [Line Items]
31 - 90 days past due	11	12
91 - 150 days past due	6	7
Greater than 150 days past due	57	62
Total past due	74	81
Current	341	252
Total vacation ownership notes receivable	415	333
Securitized Vacation Ownership Notes Receivable
Financing Receivable, Recorded Investment, Past Due [Line Items]
31 - 90 days past due	14	22
91 - 150 days past due	5	8
Greater than 150 days past due	1
Total past due	20	30
Current	601	741
Total vacation ownership notes receivable	$ 621	$ 771

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

Sep. 12, 2014

Jan. 03, 2014

$ 912

$ 970

Mandatorily redeemable preferred stock of consolidated subsidiary

(538)

(678)

(40)

Liability for Marriott Rewards customer loyalty program

(92)

(114)

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

(33)

(31)

Other Debt

Securitized Vacation Ownership Notes Receivable

(4)

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

Non-Securitized Vacation Ownership Notes Receivable

580

719

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

332

251

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

912

970

Mandatorily redeemable preferred stock of consolidated subsidiary

(538)

(678)

(40)

Liability for Marriott Rewards customer loyalty program

(92)

(114)

Total financial liabilities

(6)

(676)

(838)

Carrying Amount | Non-Recourse Debt

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

Carrying Amount | Other Debt

^[1]

(534)

(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

580

719

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

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

332

251

Fair Value

Mandatorily redeemable preferred stock of consolidated subsidiary

^[2]

1,069

1,132

^[2]

(44)

Liability for Marriott Rewards customer loyalty program

^[2]

(86)

(110)

Total financial liabilities

^[2]

(6)

^[2]

(686)

(859)

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]

(546)

(695)

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]

693

865

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

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

^[2]

$ 376

$ 267

[1]	Interest rates are as of September 12, 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

Sep. 12, 2014

Jan. 03, 2014

Non-Securitized Vacation Ownership Notes Receivable

$ 912

$ 970

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

332

251

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

Carrying Amount | Non-Securitized Vacation Ownership Notes Receivable

912

970

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

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

332

251

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

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

193

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

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

139

178

Fair Value

Fair Value | Non-Securitized Vacation Ownership Notes Receivable

^[1]

1,069

1,132

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

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

^[1]

376

267

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

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

237

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

Computation of Basic Earnings Per Share

$ 139

$ 178

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

Dispositions - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended		8 Months Ended
	Jun. 20, 2014	Mar. 28, 2014	Sep. 12, 2014	Sep. 06, 2013
Significant Acquisitions and Disposals [Line Items]
Gains and other income			$ 2	$ 1
FLORIDA
Significant Acquisitions and Disposals [Line Items]
Cash from disposal of property	$ 11	$ 24
Gains and other income			2
FLORIDA \| Maximum
Significant Acquisitions and Disposals [Line Items]
Gains and other income			1
Gain on disposal of golf course and adjacent undeveloped land to be recorded over operating period			3
FLORIDA \| Minimum
Significant Acquisitions and Disposals [Line Items]
Gain on disposal of golf course and adjacent undeveloped land to be recorded over operating period			$ 2
HAWAII
Significant Acquisitions and Disposals [Line Items]
Cash from disposal of property	$ 60

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

3 Months Ended

8 Months Ended

Sep. 12, 2014

^[1]

Sep. 06, 2013

^[2]

Sep. 12, 2014

^[1]

Sep. 06, 2013

^[2]

Weighted average shares outstanding

$ 25

$ 80

$ 74

33.4

35.5

34.2

35.4

Basic earnings per share

$ 0.77

$ 0.70

$ 2.35

$ 2.10

Computation of Diluted Earnings Per Share

Weighted average shares outstanding

$ 25

$ 80

$ 74

33.4

35.5

34.2

35.4

Effect of dilutive securities

Employee stock options and SARs

0.5

0.7

0.6

0.7

Restricted stock units

0.5

0.4

0.5

Shares for diluted earnings per share

34.4

36.7

35.2

36.6

Diluted earnings per share

$ 0.75

$ 0.67

$ 2.28

$ 2.03

[1]

[2]

Reconciliation of Earnings and Number of Shares Used in Calculation of Basic and Diluted Earnings Per Share (Parenthetical) (Detail) - shares	3 Months Ended		8 Months Ended
	Sep. 12, 2014	Sep. 06, 2013	Sep. 12, 2014	Sep. 06, 2013
Performance Shares
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)	179,000	229,000	179,000	229,000

Earnings Per Share - Additional Information (Detail) - shares	3 Months Ended		8 Months Ended
	Sep. 12, 2014	Sep. 06, 2013	Sep. 12, 2014	Sep. 06, 2013
Stock Appreciation Rights (SARs)
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Shares excluded from the calculation of diluted earnings per share (in shares)	0	0	0	0

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

Sep. 12, 2014

Jan. 03, 2014

Inventory Disclosure [Abstract]

Finished goods

^[1]

$ 446

$ 369

Work-in-progress

^[2]

151

Land and infrastructure

^[3]

348

344

Real estate inventory

794

864

Operating supplies and retail inventory

Inventory

$ 799

$ 870

[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 vacation ownership products under active construction for which a certificate of occupancy has not been received.
[3]	Includes sales centers that are expected to be converted into vacation ownership products to be sold in the future.

Contingencies and Commitments - Additional Information (Detail) $ in Millions				3 Months Ended		8 Months Ended		12 Months Ended
	May 20, 2014 Plaintiff Facility	Jan. 30, 2013 Plaintiff	Dec. 21, 2012 LegalMatter	Sep. 12, 2014 USD ($)	Jun. 20, 2014 Plaintiff	Sep. 12, 2014 USD ($)	Sep. 06, 2013 USD ($)	Jan. 03, 2014 USD ($) Plaintiff	Dec. 28, 2012 USD ($) LegalMatter	Apr. 17, 2014 USD ($)
Commitments and Contingencies Disclosure [Line Items]
Commitments to subsidize vacation ownership associations				$ 3		$ 3
Surety bonds issued				76		76
Letters of credit outstanding				3		3
Litigation settlement, expense									$ 41
Reversal of litigation charge								$ 1
Number of settled lawsuits in which certain subsidiaries were defendants \| LegalMatter			3						2
Gain (loss) on litigation settlement				(3)		5	$ 1
Number of plaintiffs in lawsuits \| Plaintiff		12
Number of residential units provided full release \| Plaintiff					2
Non cash possible loss from contingency										$ 25
Amount of cash received from settlement of dispute						8
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		$ 7
Extended Term
Commitments and Contingencies Disclosure [Line Items]
Underlying notes extended expiration year						2022
Project Completion Guarantee \| Vacation Ownership
Commitments and Contingencies Disclosure [Line Items]
Estimated cash outflow associated with completing all phases of existing portfolio of projects				19		$ 19
Liabilities related to projects				9		$ 9
Project estimated completion year						2017
Kapalua Bay Settlement
Commitments and Contingencies Disclosure [Line Items]
Number of residential units provided full release \| Plaintiff								1
Number of developers provided full release \| Plaintiff								132
Number of developers sold interests \| Plaintiff								177
Proposed Settlement
Commitments and Contingencies Disclosure [Line Items]
Gain (loss) on litigation settlement				(3)		$ (3)
Final Settlement
Commitments and Contingencies Disclosure [Line Items]
Gain (loss) on litigation settlement						8
Revolving Credit Facility
Commitments and Contingencies Disclosure [Line Items]
Revolving credit facility amount				200		200
Plaintiffs \| Kapalua Bay Settlement
Commitments and Contingencies Disclosure [Line Items]
Number of developers sold interests \| Plaintiff								2
Resorts in Hawaii
Commitments and Contingencies Disclosure [Line Items]
Number of resort received notices of intent \| Facility	2
Resorts in California
Commitments and Contingencies Disclosure [Line Items]
Number of plaintiffs in lawsuits \| Plaintiff	2
Number of resort received notices of intent \| Facility	1
Resorts in Massachusetts
Commitments and Contingencies Disclosure [Line Items]
Number of resort received notices of intent \| Facility	1
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		1
Information technology hardware and software
Commitments and Contingencies Disclosure [Line Items]
Contractual Commitments Future Minimum Payments Due				39		39
Contractual Commitments Future Minimum Payments due in 2014				3		3
Contractual Commitments Future Minimum Payments due in 2015				13		13
Contractual Commitments Future Minimum Payments due in 2016				8		8
Contractual Commitments Future Minimum Payments due in 2017				6		6
Contractual Commitments Future Minimum Payments due in 2018				3		3
Contractual Commitments Future Minimum Payments due Thereafter				$ 6		$ 6

Maximum Potential Amount of Future Fundings for Financing Guarantees and Carrying Amount of Liability for Expected Future Fundings (Detail) - Primary Obligor $ in Millions	Sep. 12, 2014 USD ($)
Guarantor Obligations [Line Items]
Maximum Potential Amount of Future Fundings	$ 13
Liability for Expected Future Fundings
Asia Pacific
Guarantor Obligations [Line Items]
Maximum Potential Amount of Future Fundings	10
Liability for Expected Future Fundings
North America Segment
Guarantor Obligations [Line Items]
Maximum Potential Amount of Future Fundings	3
Liability for Expected Future Fundings

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

Sep. 12, 2014

Jan. 03, 2014

$ 538

$ 678

Other Debt

Carrying Amount | Non-Recourse Debt

538

678

Carrying Amount | Other Debt

^[1]

534

674

$ 4

[1]	Interest rates are as of September 12, 2014.

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

Sep. 12, 2014

Jun. 20, 2014

Debt, stated interest rate

6.25%

Debt, weighted average interest rate

^[1]

3.50%

Minimum | Carrying Amount

Debt, stated interest rate

^[1]

2.20%

Maximum | Carrying Amount

Debt, stated interest rate

^[1]

7.20%

[1]	Interest rates are as of September 12, 2014.

Debt - Additional Information (Detail) $ in Millions		3 Months Ended	8 Months Ended
Debt - Additional Information (Detail) $ in Millions	Sep. 10, 2014 USD ($)	Jun. 20, 2014 USD ($)	Sep. 12, 2014 USD ($) Loan	Sep. 06, 2013 USD ($)
Debt Disclosure [Line Items]
Securitization pool of vacation ownership notes receivable		$ 24
Cash paid for interest, net of amounts capitalized			$ 19	$ 26
Number of notes receivable pools failed to perform within the established parameters \| Loan			0
Number of notes receivable pools outstanding \| Loan			7
Non-Recourse Debt
Debt Disclosure [Line Items]
Debt instrument face amount		$ 23
Debt, stated interest rate		6.25%
Gross cash proceeds received, before transaction expense and required reserves		$ 23
Non-Recourse Debt \| Maximum
Debt Disclosure [Line Items]
Payment of transactions expenses and fund required reserves		$ 1
Revolving Credit Facility
Debt Disclosure [Line Items]
Amount borrowed under revolving corporate credit facility			$ 0
Line of credit facility expiration date	Nov. 21, 2016
Line of credit facility, maximum borrowing capacity			$ 200
Revolving Credit Facility \| Amended and Restated Credit Agreement
Debt Disclosure [Line Items]
Line of credit facility expiration date	Sep. 10, 2019
Revolving Credit Facility \| Minimum
Debt Disclosure [Line Items]
Commitment Fee	0.20%
EBITDA to interest expense ratio	3
Revolving Credit Facility \| Minimum \| Euro Dollar Rate
Debt Disclosure [Line Items]
Debt instrument, percentage points added to the reference rate	1.625%
Revolving Credit Facility \| Minimum \| Swap
Debt Disclosure [Line Items]
Line of credit facility required ratio	1.25
Revolving Credit Facility \| Maximum
Debt Disclosure [Line Items]
Commitment Fee	0.50%
Debt to EBITDA ratio	5.25
Revolving Credit Facility \| Maximum \| Euro Dollar Rate
Debt Disclosure [Line Items]
Debt instrument, percentage points added to the reference rate	3.125%
Revolving Credit Facility \| Letter of Credit
Debt Disclosure [Line Items]
Line of credit facility, maximum borrowing capacity	$ 100

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

Sep. 12, 2014

Jan. 03, 2014

Debt Principal Payments Year

$ 34

197

Balance at end of period

538

$ 678

Vacation Ownership Notes Receivable Securitizations

Debt Principal Payments Year

^[1]

^[1]

^[1]

^[1]

^[1]

^[1]

193

Balance at end of period

^[1]

534

Other Debt

Debt Principal Payments Year

Thereafter

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	8 Months Ended
	Oct. 31, 2011	Sep. 12, 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) at par. 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

Shareholders' Equity - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions	Oct. 16, 2014	Sep. 11, 2014	Sep. 12, 2014	Jan. 03, 2014	Oct. 08, 2013
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			35,961,779	35,637,765
Common stock, shares outstanding			32,998,759	35,132,742
Treasury stock, shares			2,963,020	505,023
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
Accelerated Share Repurchase Program, common stock value to be repurchased		$ 25
Subsequent Event \| Accelerated Share Repurchase Program
Stockholders' Equity [Line Items]
Number of shares of Common stock repurchased	401,291
Maximum
Stockholders' Equity [Line Items]
Share repurchase program, number of common stock authorized to be repurchased					3,500,000

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

3 Months Ended

8 Months Ended

Sep. 12, 2014

Sep. 06, 2013

^[2]

Sep. 12, 2014

Sep. 06, 2013

$ 1,209

Foreign currency translation adjustments

$ 25

^[1]

$ 25

^[1]

$ 74

^[2]

(3)

$ (1)

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

^[3]

(2)

(160)

1,130

Treasury Stock

(26)

(135)

Additional Paid-In Capital

(161)

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

1,130

^[3]

(2)

(25)

Accumulated Other Comprehensive Income

1,109

Foreign currency translation adjustments

(3)

Retained (Deficit) Earnings

Segment Reporting, Revenue Reconciling Item [Line Items]

$ 162

[1]	The computations of diluted earnings per share exclude approximately 179,000 shares of common stock, the maximum number of shares issuable as of September 12, 2014 upon the vesting of certain performance-based awards that have not already been included in the calculation, because the performance conditions required for the shares subject to such awards to vest were not achieved by the end of the reporting period.
[2]	The computations of diluted earnings per share exclude approximately 229,000 shares of common stock, the maximum number of shares issuable as of September 6, 2013 upon the vesting of certain performance-based awards, because the performance conditions required for the shares subject to such awards to vest were not achieved by the end of the reporting period.
[3]	Consists of an adjustment to Deferred tax liabilities for changes in the valuation of Marriott Vacations Worldwide at the time of the Spin-Off.

Summary of Share Repurchase Activity (Detail) $ / shares in Units, $ in Millions	8 Months Ended
	Sep. 12, 2014 USD ($) $ / shares shares
Stock Repurchase Program [Line Items]
Number of Shares Repurchased, As of January 3, 2014 \| shares	505,023
Number of Shares Repurchased, As of September 12, 2014 \| shares	2,963,020
Cost of Shares Repurchased, As of January 3, 2014	$ 26
Cost of Shares Repurchased, for the thirty-six weeks ended September 12, 2014	160
Cost of Shares Repurchased, As of September 12, 2014	$ 161
Treasury Stock
Stock Repurchase Program [Line Items]
Number of Shares Repurchased, As of January 3, 2014 \| shares	505,023
Number of Shares Repurchased, for the thirty-six weeks ended September 12, 2014 \| shares	2,457,997
Number of Shares Repurchased, As of September 12, 2014 \| shares	2,963,020
Cost of Shares Repurchased, As of January 3, 2014	$ 26
Cost of Shares Repurchased, for the thirty-six weeks ended September 12, 2014	135
Cost of Shares Repurchased, As of September 12, 2014	$ 161
Average Price Paid per Share, As of January 3, 2014 \| $ / shares	$ 50.76
Average Price Paid per Share, for the thirty-six weeks ended September 12, 2014 \| $ / shares	54.99
Average Price Paid per Share, As of September 12, 2014 \| $ / shares	$ 54.26

Share-Based Compensation - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended		8 Months Ended
	Sep. 12, 2014	Sep. 06, 2013	Sep. 12, 2014	Sep. 06, 2013	Jan. 03, 2014
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Deferred compensation costs related to unvested awards	$ 16		$ 16		$ 13
Expected annual dividend per share			$ 0
Officers and Key Management Employees
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense related to award grants	$ 3	$ 3	$ 9	$ 8
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		6,000,000
Shares available for grants under the plan	2,000,000		2,000,000
Restricted stock units \| Employees and Non Employee Directors
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock awards, grants in period			163,685
Stock awards granted, weighted average grant date fair value			$ 52.51
Restricted stock units \| Employee \| Employees and Non Employee Directors
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock awards, vesting period			4 years
Performance Based Restricted Stock Unit
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock awards, vesting period			3 years
Maximum amount of RSU subject to vesting			62,000
Stock Appreciation Rights (SARs) \| Employee
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock awards, grants in period			57,906
Stock awards, vesting period			4 years
Stock awards granted, weighted average grant date fair value			$ 27.98
Stock awards, expiration from grant date			10 years
Stock awards, weighted average exercise price	$ 52.09		$ 52.09

Assumptions Used to Estimate Fair Value of Grants (Detail)	8 Months Ended
	Sep. 12, 2014
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Expected volatility	55.10%
Dividend yield	0.00%
Risk-free rate	1.84%
Expected term (in years)	6 years 3 months

Classifications of Consolidated VIE Assets and Liabilities (Detail) $ in Millions	Sep. 12, 2014 USD ($)
Variable Interest Entity [Line Items]
VIE Assets	$ 619
VIE Liabilities	536
Non-Recourse Debt
Variable Interest Entity [Line Items]
VIE Liabilities	534
Vacation Ownership Notes Receivable
Variable Interest Entity [Line Items]
VIE Assets	580
Interest Receivable
Variable Interest Entity [Line Items]
VIE Assets	3
Restricted Cash
Variable Interest Entity [Line Items]
VIE Assets	36
Interest Payable
Variable Interest Entity [Line Items]
VIE Liabilities	2
Vacation Ownership Notes Receivable Securitizations
Variable Interest Entity [Line Items]
VIE Assets	619
VIE Liabilities	536
Vacation Ownership Notes Receivable Securitizations \| Non-Recourse Debt
Variable Interest Entity [Line Items]
VIE Liabilities	534
Vacation Ownership Notes Receivable Securitizations \| Vacation Ownership Notes Receivable
Variable Interest Entity [Line Items]
VIE Assets	580
Vacation Ownership Notes Receivable Securitizations \| Interest Receivable
Variable Interest Entity [Line Items]
VIE Assets	3
Vacation Ownership Notes Receivable Securitizations \| Restricted Cash
Variable Interest Entity [Line Items]
VIE Assets	36
Vacation Ownership Notes Receivable Securitizations \| Interest Payable
Variable Interest Entity [Line Items]
VIE Liabilities	$ 2

Variable Interest Entities - Additional Information (Detail) - USD ($)	8 Months Ended	12 Months Ended
	Sep. 12, 2014	Jan. 03, 2014
Variable Interest Entity [Line Items]
Noncontrolling interest	$ 0
Vacation ownership notes receivable	$ 912,000,000	$ 970,000,000
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	$ 580,000,000	719,000,000
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 $8 million for potential future funding obligations, representing our remaining expected exposure to loss related to our involvement with the Joint Venture exclusive of any future costs that may be incurred pursuant to outstanding litigation matters, including those discussed in Footnote No. 8, "Contingencies and Commitments."
Vacation ownership notes receivable	$ 0
Notes receivable due from the entity	7,000,000	$ 7,000,000
Accrued liability for additional funding	$ 8,000,000

Interest Income and Expense Recognized as a Result of Our Involvement with Variable Interest Entities (Detail) - USD ($) $ in Millions	3 Months Ended		8 Months Ended
	Sep. 12, 2014	Sep. 06, 2013	Sep. 12, 2014	Sep. 06, 2013
Variable Interest Entity [Line Items]
Interest income	$ 28	$ 30	$ 85	$ 93
Debt issuance cost amortization			4	$ 4
Variable Interest Entity
Variable Interest Entity [Line Items]
Interest income	19		60
Interest expense to investors	5		15
Debt issuance cost amortization	1		3
Variable Interest Entity \| Vacation Ownership Notes Receivable Securitizations
Variable Interest Entity [Line Items]
Interest income	19		60
Interest expense to investors	4		14
Debt issuance cost amortization	1		2
Variable Interest Entity \| Warehouse Credit Facility
Variable Interest Entity [Line Items]
Interest expense to investors	$ 1		1
Debt issuance cost amortization			$ 1

Cash Flows Between Company and Variable Interest Entities (Detail) - USD ($) $ in Millions	8 Months Ended
	Sep. 12, 2014	Sep. 06, 2013
Vacation Ownership Notes Receivable Securitizations
Cash inflows (outflows):
Net proceeds from vacation ownership notes receivable securitization	$ 23	$ 246
Principal receipts	125	117
Interest receipts	61	63
Reserve release	2
Total	211	426
Principal to investors	(118)	(107)
Voluntary repurchases of defaulted vacation ownership notes receivable	(18)	(19)
Voluntary clean-up call	(27)	(51)
Interest to investors	(14)	(17)
Total	(177)	(194)
Net Cash Flows	34	232
Warehouse Credit Facility
Cash inflows (outflows):
Net proceeds from vacation ownership notes receivable securitization		109
Principal receipts		16
Interest receipts		7
Reserve release		1
Total		133
Principal to investors		(13)
Repayment of Warehouse Credit Facility		(98)
Interest to investors	(1)	(2)
Total	(1)	(113)
Net Cash Flows	$ (1)	$ 20

Organizational and Separation Related Charges - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended		8 Months Ended
	Sep. 12, 2014	Sep. 06, 2013	Sep. 12, 2014	Sep. 06, 2013
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Organizational and separation related charges	$ 1	$ 4	$ 3	$ 7
Capitalized asset costs			$ 2	$ 4

Business Segments - Additional Information (Detail)	8 Months Ended
Business Segments - Additional Information (Detail)	Sep. 12, 2014 Segment
Segment Reporting [Abstract]
Number of business segments	3

Revenues (Detail) - USD ($)
$ in Millions

3 Months Ended

8 Months Ended

Sep. 12, 2014

Sep. 06, 2013

^[1]

Sep. 12, 2014

^[1]

Sep. 06, 2013

^[1]

Segment Reporting, Revenue Reconciling Item [Line Items]

$ 413

$ 412

$ 1,225

$ 1,223

Operating Segments

Operating Segments | North America Segment

413

412

1,225

1,223

Segment Reporting, Revenue Reconciling Item [Line Items]

Operating Segments | Europe

364

365

1,093

1,077

Segment Reporting, Revenue Reconciling Item [Line Items]

Operating Segments | Asia Pacific

107

Segment Reporting, Revenue Reconciling Item [Line Items]

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

$ 11

$ 35

$ 39

[1]

Revenues (Parenthetical) (Detail) - USD ($) $ in Millions	3 Months Ended		8 Months Ended
Revenues (Parenthetical) (Detail) - USD ($) $ in Millions	Sep. 12, 2014	Sep. 06, 2013	Sep. 12, 2014	Sep. 06, 2013
Segment Reporting, Revenue Reconciling Item [Line Items]
Cost reimbursements	$ 91	$ 84	$ 282	$ 260
Restatement adjustment from Asia Pacific to Europe segment
Segment Reporting, Revenue Reconciling Item [Line Items]
Cost reimbursements		$ 2	$ 1	$ 5

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

3 Months Ended

8 Months Ended

Sep. 12, 2014

Sep. 06, 2013

Sep. 12, 2014

Sep. 06, 2013

Provision for income taxes

$ 43

$ 40

$ 133

$ 114

(18)

(15)

(53)

(40)

Net income (loss)

^[1]

^[2]

^[1]

^[2]

Operating Segments

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

Operating Segments | North America Segment

284

273

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

Operating Segments | Europe

267

249

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

Operating Segments | Asia Pacific

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

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

Corporate and Other

$ (50)

$ (54)

$ (151)

$ (159)

[1]

[2]

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