EX-99.1 2 a2022q4pressreleaseschedul.htm EX-99.1 Document
Exhibit 99.1
newmvwlogo2023.jpg
Neal Goldner
Investor Relations
407-206-6149
neal.goldner@mvwc.com
Cameron Klaus
Global Communications
407-513-6066
cameron.klaus@mvwc.com
Marriott Vacations Worldwide (“MVW”) Reports Fourth Quarter
and Full Year 2022 Financial Results and Provides 2023 Outlook
ORLANDO, Fla. – February 22, 2023 – Marriott Vacations Worldwide Corporation (NYSE: VAC) (the “Company”) reported financial results for the fourth quarter and full year 2022 and provided guidance for full year 2023.
Fourth Quarter 2022 Highlights:
•Consolidated Vacation Ownership contract sales were $454 million, a 12% increase compared to the fourth quarter of 2021, and VPG was $4,088. The Company estimates that hurricanes negatively impacted contract sales by approximately $13 million in the fourth quarter of 2022.
•Net income attributable to common shareholders was $88 million, or $2.08 fully diluted earnings per share.
•Adjusted net income attributable to common shareholders was $115 million, or $2.74 Adjusted fully diluted earnings per share. The Company estimates that hurricanes negatively impacted Adjusted net income attributable to common shareholders by $5 million, or $0.12 per Adjusted fully diluted earnings per share.
•Adjusted EBITDA was $239 million; excluding the impact of the Alignment (as defined below), Adjusted EBITDA increased 6% compared to the prior year fourth quarter to $232 million. The Company estimates that hurricanes negatively impacted Adjusted EBITDA by approximately $7 million in the fourth quarter of 2022.
•The Company repurchased 1.2 million shares of its common stock for $173 million during the quarter at an average price per share of $139.90.
Full Year 2022 Highlights and 2023 Outlook:
•Consolidated Vacation Ownership contract sales were $1.84 billion, a 34% increase compared to 2021, and VPG increased 1% to $4,421. The Company estimates that hurricanes negatively impacted contract sales by approximately $14 million in 2022.
•Net income attributable to common shareholders was $391 million, or $8.77 fully diluted earnings per share.
•Adjusted net income attributable to common shareholders was $458 million, or $10.26 Adjusted fully diluted earnings per share.
•Adjusted EBITDA was $966 million; excluding the impact of the Alignment (as defined below), Adjusted EBITDA was $915 million, an increase of 39% compared to the prior year. The Company estimates that hurricanes negatively impacted Adjusted EBITDA by approximately $8 million in 2022.
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Marriott Vacations Worldwide Reports Fourth Quarter 2022 Financial Results / 2
•During 2022, the Company repurchased 5.1 million shares of its common stock for $701 million at an average price of $137.83 and paid $99 million in dividends.
•The Company expects contract sales in 2023 to grow 5% to 9% compared to the prior year and for Net income attributable to common shareholders to be $405 million to $440 million, or $9.51 to $10.30 fully diluted earnings per share.
•Excluding the impact of the Alignment (as defined below) in 2022, the Company expects Adjusted EBITDA to grow 4% to 9% in 2023 and Adjusted earnings per share - diluted to increase 14% to 23%.
“2022 was a great year for Marriott Vacations Worldwide. We generated over $1.8 billion of contract sales, a new high for our Company, and returned more than $800 million in cash to shareholders. We also launched Abound by Marriott Vacations, added over 20,000 new owners in our Vacation Ownership business and grew active Interval International members by 21%,” said John Geller, president & chief executive officer. “Looking forward, we expect occupancies in North America and Europe to remain strong this year and for Asia-Pacific to continue to improve. We also expect to grow contract sales this year by 5% to 9% compared to the prior year and for Adjusted Free Cash Flow to be between $600 million and $670 million, illustrating the continued demand for leisure travel and the strength of our business model.”
Fourth Quarter 2022 Results:
In the third quarter of 2022, in connection with the unification of the Company’s Marriott-, Westin-, and Sheraton-branded vacation ownership products under the Abound by Marriott Vacations program, the Company aligned its contract terms for the sale of vacation ownership products, resulting in the acceleration of revenue from the sale of Marriott-branded vacation ownership interests. In addition, the Company aligned its reserve methodology for these brands, resulting in an adjustment to its notes receivable reserve in the third quarter. Together, these changes are herein referred to as the “Alignment.” As a result of the Alignment, the Company reported an additional $5 million of Net income attributable to common shareholders and an additional $7 million of Adjusted EBITDA during the fourth quarter. The tables and financial schedules below illustrate the impact of the Alignment on the Company’s reported results.
In the tables below “*” denotes non-GAAP financial measures. Please see “Non-GAAP Financial Measures” for additional information about our reasons for providing these alternative financial measures and limitations on their use.
Consolidated
Three Months Ended December 31, 2022Three Months Ended December 31, 2021Change
As ReportedImpact of AlignmentAs Adjusted*As ReportedAs Adjusted*
($ in millions)$%$%
Net income attributable to common shareholders$88 $(5)$83 $61 $27 45%$22 35%
Adjusted net income attributable to common shareholders*$115 $(5)$110 $103 $12 12%$7 6%
Adjusted EBITDA*$239 $(7)$232 $219 $20 10%$13 6%
Adjusted EBITDA margin*28.7%28.2%27.4%1.3 pts0.8 pts

Marriott Vacations Worldwide Reports Fourth Quarter 2022 Financial Results / 3
Vacation Ownership
Three Months Ended December 31, 2022Three Months Ended December 31, 2021Change
As ReportedImpact of AlignmentAs Adjusted*As ReportedAs Adjusted*
($ in millions)$%$%
Sale of vacation ownership products$439 $(12)$427 $364 $75 21%$63 18%
Development profit$162 $(7)$155 $114 $48 42%$41 36%
Segment financial results attributable to common shareholders$241 $(5)$236 $205 $36 17%$31 14%
Segment margin31.9%31.7%29.3%2.6 pts2.4 pts
Segment Adjusted EBITDA*$261 $(7)$254 $234 $27 12%$20 8%
Segment Adjusted EBITDA margin*34.6%34.2%33.4%1.2 pts0.8 pts
Exchange & Third-Party Management
Revenues excluding cost reimbursements decreased 7% in the fourth quarter of 2022 compared to the prior year and increased 4% excluding the results of VRI Americas, which was sold in April of 2022. Interval International active members increased 21% to 1.6 million and Average revenue per member decreased 17% compared to the prior year as the new accounts at Interval International that were added at the beginning of the year continued to ramp up.
Segment financial results attributable to common shareholders were $24 million in the fourth quarter of 2022, Segment margin was 41% and Segment Adjusted EBITDA was $31 million. Excluding the VRI Americas business, Segment Adjusted EBITDA increased 11% compared to the prior year and Segment Adjusted EBITDA margin increased to 55%.
Corporate and Other
General and administrative costs were largely unchanged in the fourth quarter of 2022 compared to the prior year.
Balance Sheet and Liquidity
The Company ended the quarter with approximately $1.3 billion in liquidity, including $524 million of cash and cash equivalents, $72 million of gross notes receivable that were eligible for securitization, and $749 million of available capacity under its revolving corporate credit facility.
In December 2022, the Company issued $575 million of 3.25% convertible notes due 2027 with an initial conversion price of $189.65. The Company used the proceeds from the offering to redeem $250 million of 6.125% secured notes due 2025 (which was paid in January), repurchase $55 million of its own shares, repay the outstanding balance on its revolving credit facility (which was used to redeem $230 million of convertible notes that matured in September 2022) and pay transaction expenses and other fees. In addition, to reduce the potential economic dilution to the Company's earnings per share upon conversion of the notes, the Company used a portion of the proceeds to enter into privately negotiated bond hedge and warrant transactions, with such warrant transactions at an initial strike price of $286.26 per share, which represented a premium of 100% over the last reported sale price of the Company's common stock on December 5, 2022.

Marriott Vacations Worldwide Reports Fourth Quarter 2022 Financial Results / 4
At the end of the fourth quarter of 2022, pro-forma for the repayment of the 2025 secured senior notes, the Company had $2.8 billion of corporate debt and $1.9 billion of non-recourse debt related to its securitized notes receivable.
The Company completed its second timeshare receivable securitization of 2022 in the fourth quarter, issuing $280 million of notes backed by a pool of $286 million of vacation ownership notes receivable from all of the Company's timeshare brands. The overall weighted average interest rate of the notes was 6.58%, without giving effect to the Company’s retention of the Class D Notes, and the transaction had a gross advance rate of 98%.
Full Year 2023 Outlook (in millions, except per share amounts)
The Financial Schedules that follow reconcile the non-GAAP financial measures set forth below to the following full year 2023 expected GAAP results for the Company.
The Company is providing guidance for the full year 2023. In the table below “*” denotes non-GAAP financial measures. Please see “Non-GAAP Financial Measures” for additional information about our reasons for providing these alternative financial measures and limitations on their use.
(In millions, except per share amounts)2023 Guidance
Contract sales$1,930to$2,000
Net income attributable to common shareholders$405to$440
Earnings per share - diluted$9.51to$10.30
Net cash, cash equivalents, and restricted cash provided by operating activities$365to$415
Adjusted EBITDA*$950to$1,000
Adjusted earnings per share - diluted*$10.75to$11.54
Adjusted free cash flow*$600to$670
In calculating diluted earnings per share and Adjusted diluted earnings per share, shares issuable upon conversion of our convertible notes are assumed to be converted into common stock, to the extent dilutive, and net interest expense associated with the convertible notes is added back to the numerator of the diluted earnings per share and Adjusted diluted earnings per share calculations.
Non-GAAP Financial Information
Non-GAAP financial measures are reconciled and adjustments are shown and described in further detail in the Financial Schedules that follow. Please see “Non-GAAP Financial Measures” for additional information about our reasons for providing these alternative financial measures and limitations on their use. In addition to the foregoing non-GAAP financial measures, we present certain key metrics as performance measures which are further described in our most recent Annual Report on Form 10-K, and which may be updated in our periodic filings with the U.S. Securities and Exchange Commission.
Fourth Quarter 2022 Financial Results Conference Call
The Company will hold a conference call on February 23, 2023 at 8:30 a.m. ET to discuss these financial results and provide an update on business conditions. Participants may access the call by dialing (877) 407-8289 or (201) 689-8341 for international callers. A live webcast of the call will also be available in the Investor Relations section of the Company's website at ir.mvwc.com. An audio replay of the conference call will be available for 30 days on the Company’s website.

Marriott Vacations Worldwide Reports Fourth Quarter 2022 Financial Results / 5
About Marriott Vacations Worldwide Corporation
Marriott Vacations Worldwide Corporation is a leading global vacation company that offers vacation ownership, exchange, rental and resort and property management, along with related businesses, products, and services. The Company has over 120 vacation ownership resorts and approximately 700,000 owner families in a diverse portfolio that includes some of the most iconic vacation ownership brands. The Company also operates exchange networks and membership programs comprised of more than 3,200 affiliated resorts in over 90 countries and territories, and provides management services to other resorts and lodging properties. As a leader and innovator in the vacation industry, the Company upholds the highest standards of excellence in serving its customers, investors and associates while maintaining exclusive, long-term relationships with Marriott International, Inc. and an affiliate of Hyatt Hotels Corporation for the development, sales and marketing of vacation ownership products and services. For more information, please visit www.marriottvacationsworldwide.com.
Note on forward-looking statements
This press release and accompanying schedules contain “forward-looking statements” within the meaning of federal securities laws, including statements about expectations for future growth and projections for full year 2023. Forward-looking statements include all statements that are not historical facts and can be identified by the use of forward-looking terminology such as the words “believe,” “expect,” “plan,” “intend,” “anticipate,” “estimate,” “predict,” “potential,” “continue,” “may,” “might,” “should,” “could” or the negative of these terms or similar expressions. The Company cautions you that these statements are not guarantees of future performance and are subject to numerous and evolving risks and uncertainties that we may not be able to predict or assess, such as: the continuing effects of the COVID-19 pandemic or future health crises, including quarantines or other government-imposed travel or health-related restrictions; the length and severity of the COVID-19 pandemic or future health crises, including short and longer-term impacts on consumer confidence and demand for travel, and the pace of recovery following the COVID-19 pandemic or future health crises or as effective treatments or vaccines against variants of the COVID-19 pandemic or future health crises become widely available; variations in demand for vacation ownership and exchange products and services; worker absenteeism; price and wage inflation; global supply chain disruptions; volatility in the international and national economy and credit markets, including as a result of the COVID-19 pandemic or future health crises and the ongoing conflict between Russia and Ukraine and related sanctions and other measures; our ability to attract and retain our global workforce; competitive conditions; the availability of capital to finance growth; the impact of rising interest rates; political or social strife, difficulties associated with implementing new or maintaining existing technology; changes in privacy laws and other matters referred to under the heading “Risk Factors” in our most recent Annual Report on Form 10-K, and which may be updated in our periodic filings with the U.S. Securities and Exchange Commission. All forward-looking statements in this press release are made as of the date of this press release and the Company undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise, except as required by law. There may be other risks and uncertainties that we cannot predict at this time or that we currently do not expect will have a material adverse effect on our financial position, results of operations or cash flows. Any such risks could cause our results to differ materially from those we express in forward-looking statements.
Financial Schedules Follow


MARRIOTT VACATIONS WORLDWIDE CORPORATION
FINANCIAL SCHEDULES
QUARTER 4, 2022
TABLE OF CONTENTS
 
Summary Financial Information
A-1
Adjusted EBITDA by Segment
A-2
Consolidated Statements of Income
A-3
Revenues and Profit by Segment
A-5
Adjusted Net Income Attributable to Common Shareholders and Adjusted Earnings Per Share - Diluted
A-9
Adjusted EBITDA
A-10
Consolidated Contract Sales to Adjusted Development Profit
A-11
Vacation Ownership and Exchange & Third-Party Management Segment Adjusted EBITDA
A-13
Cash Flow and Adjusted Free Cash Flow
A-14
Consolidated Balance Sheets
A-15
Consolidated Statements of Cash Flows
A-16
2023 Outlook
Adjusted Net Income Attributable to Common Shareholders, Adjusted Earnings Per Share - Diluted and Adjusted EBITDA
A-18
 Adjusted Free Cash Flow
A-19
Quarterly Operating Metrics
A-20
Non-GAAP Financial Measures
A-21


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

Quarter EndedChange %Fiscal Year EndedChange %
December 31, 2022December 31, 2021December 31, 2022December 31, 2021
Key Measures
Total consolidated contract sales$454 $406 12%$1,837 $1,374 34%
VPG$4,088 $4,305 (5%)$4,421 $4,356 1%
Tours105,231 89,495 18%390,593 299,364 30%
Total active members (000's)(1)
1,566 1,296 21%1,566 1,296 21%
Average revenue per member(1)
$35.60 $42.93 (17%)$157.97 $179.48 (12%)
GAAP Measures
Revenues$1,188 $1,100 8%$4,656 $3,890 20%
Income before income taxes and noncontrolling interests$145 $70 108%$582 $127 NM
Net income attributable to common shareholders$88 $61 45%$391 $49 NM
Earnings per share - diluted$2.08 $1.39 50%$8.77 $1.13 NM
Non-GAAP Measures*
Adjusted EBITDA$239 $219 10%$966 $657 47%
Adjusted pretax income$169 $131 30%$677 $296 128%
Adjusted net income attributable to common shareholders $115 $103 12%$458 $190 140%
Adjusted earnings per share - diluted$2.74 $2.38 15%$10.26 $4.40 133%
Financial Measures, Excluding the Impact of Alignment*
Revenues$1,176 $1,100 7%$4,617 $3,890 19%
Income before income taxes and noncontrolling interests$138 $70 97%$531 $127 NM
Net income attributable to common shareholders$83 $61 35%$353 $49 NM
Earnings per share - diluted$1.94 $1.39 40%$7.94 $1.13 NM
Adjusted EBITDA$232 $219 6%$915 $657 39%
Adjusted pretax income$162 $131 24%$626 $296 111%
Adjusted net income attributable to common shareholders$110 $103 6%$420 $190 121%
Adjusted earnings per share - diluted$2.60 $2.38 9%$9.42 $4.40 114%
(1) Includes members at the end of each period for the Interval International exchange network only.
* Denotes non-GAAP financial measures. Please see “Non-GAAP Financial Measures” for additional information about our reasons for providing these alternative financial measures and limitations on their use.
NM = Not meaningful.



A-2
MARRIOTT VACATIONS WORLDWIDE CORPORATION
ADJUSTED EBITDA BY SEGMENT
(In millions)
(Unaudited)
Quarter Ended December 31, 2022Quarter Ended December 31, 2021Change
As ReportedImpact of AlignmentAs Adjusted*As ReportedAs Adjusted*
RevenueReserveCombined
Vacation Ownership$261 $(7)$— $(7)$254 $234 12%8%
Exchange & Third-Party Management31 — — — 31 31 5%5%
Segment Adjusted EBITDA*292 (7)— (7)285 265 11%8%
General and administrative(53)— — — (53)(46)(17%)(17%)
Adjusted EBITDA*$239 $(7)$— $(7)$232 $219 10%6%
Fiscal Year Ended December 31, 2022Fiscal Year Ended December 31, 2021Change
As ReportedImpact of AlignmentAs Adjusted*As ReportedAs Adjusted*
RevenueReserveCombined
Vacation Ownership$1,033 $(46)$(5)$(51)$982 $699 48%41%
Exchange & Third-Party Management148 — — — 148 144 3%3%
Segment Adjusted EBITDA*1,181 (46)(5)(51)1,130 843 40%34%
General and administrative(215)— — — (215)(186)(16%)(16%)
Adjusted EBITDA*$966 $(46)$(5)$(51)$915 $657 47%39%

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

A-3
MARRIOTT VACATIONS WORLDWIDE CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
(In millions, except per share amounts)
Quarter Ended
December 31, 2022December 31, 2021
As
Reported		Impact of AlignmentAs
Adjusted*
REVENUES
Sale of vacation ownership products$439 $(12)$427 $364 
Management and exchange204 — 204 217 
Rental113 — 113 146 
Financing76 — 76 72 
Cost reimbursements356 — 356 301 
TOTAL REVENUES1,188 (12)1,176 1,100 
EXPENSES
Cost of vacation ownership products73 (5)68 72 
Marketing and sales204 — 204 178 
Management and exchange114 — 114 140 
Rental88 — 88 97 
Financing26 — 26 24 
General and administrative62 — 62 61 
Depreciation and amortization34 — 34 34 
Litigation charges4 — 4 2 
Royalty fee30 — 30 28 
Impairment1 — 1 (2)
Cost reimbursements356 — 356 301 
TOTAL EXPENSES992 (5)987 935 
Gains (losses) and other income (expense), net1 — 1 (24)
Interest expense(27)— (27)(36)
Transaction and integration costs(26)— (26)(35)
Other1 — 1 — 
INCOME (LOSS) BEFORE INCOME TAXES AND NONCONTROLLING INTERESTS145 (7)138 70 
Provision for income taxes(57)2 (55)(11)
NET INCOME (LOSS)88 (5)83 59 
Net loss attributable to noncontrolling interests— — — 2 
NET INCOME (LOSS) ATTRIBUTABLE TO COMMON SHAREHOLDERS$88 $(5)$83 $61 
EARNINGS (LOSS) PER SHARE ATTRIBUTABLE TO COMMON SHAREHOLDERS
Basic shares38.2 — 38.2 42.7 
Basic$2.30 $(0.16)$2.14 $1.42 
Diluted shares(1)
43.0 — 43.0 43.6 
Diluted$2.08 $(0.14)$1.94 $1.39 
(1) Diluted shares include 4.2 million shares for the quarter-ended December 31, 2022 related to our convertible notes, reflecting the impact of the adoption of Accounting Standards Update 2020-06 in 2022.
* Denotes non-GAAP financial measures. Please see “Non-GAAP Financial Measures” for additional information about our reasons for providing these alternative financial measures and limitations on their use.
NOTE: Earnings (loss) per share - Basic and Earnings (loss) per share - Diluted are calculated using whole dollars.

A-4
MARRIOTT VACATIONS WORLDWIDE CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
(In millions, except per share amounts)
Fiscal Year Ended
December 31, 2022December 31, 2021
As
Reported		Impact of AlignmentAs
Adjusted*
REVENUES
Sale of vacation ownership products$1,618 $(39)$1,579 $1,153 
Management and exchange827 — 827 855 
Rental551 — 551 486 
Financing293 — 293 268 
Cost reimbursements1,367 — 1,367 1,128 
TOTAL REVENUES4,656 (39)4,617 3,890 
EXPENSES
Cost of vacation ownership products289 (7)282 250 
Marketing and sales807 — 807 617 
Management and exchange444 — 444 521 
Rental382 — 382 344 
Financing75 19 94 88 
General and administrative249 — 249 227 
Depreciation and amortization132 — 132 146 
Litigation charges11 — 11 10 
Royalty fee114 — 114 106 
Impairment2 — 2 3 
Cost reimbursements1,367 — 1,367 1,128 
TOTAL EXPENSES3,872 12 3,884 3,440 
Gains (losses) and other income (expense), net40 — 40 (51)
Interest expense(118)— (118)(164)
Transaction and integration costs(125)— (125)(110)
Other1 — 1 2 
INCOME (LOSS) BEFORE INCOME TAXES AND NONCONTROLLING INTERESTS582 (51)531 127 
(Provision for) benefit from income taxes(191)13 (178)(74)
NET INCOME (LOSS)391 (38)353 53 
Net income attributable to noncontrolling interests— — — (4)
NET INCOME (LOSS) ATTRIBUTABLE TO COMMON SHAREHOLDERS$391 $(38)$353 $49 
EARNINGS (LOSS) PER SHARE ATTRIBUTABLE TO COMMON SHAREHOLDERS
Basic shares40.4 — 40.4 42.5 
Basic$9.69 $(0.93)$8.76 $1.15 
Diluted shares(1)
45.2 — 45.2 43.3 
Diluted$8.77 $(0.83)$7.94 $1.13 
(1) Diluted shares include 4.3 million shares for the year-ended December 31, 2022 related to our convertible notes, reflecting the impact of the adoption of Accounting Standards Update 2020-06 in 2022.
* Denotes non-GAAP financial measures. Please see “Non-GAAP Financial Measures” for additional information about our reasons for providing these alternative financial measures and limitations on their use.
NOTE: Earnings (loss) per share - Basic and Earnings (loss) per share - Diluted are calculated using whole dollars.

A-5
MARRIOTT VACATIONS WORLDWIDE CORPORATION
REVENUES AND PROFIT BY SEGMENT
for the three months ended December 31, 2022
(In millions)
Reportable SegmentCorporate
and
Other		Total
Vacation OwnershipExchange & Third-Party ManagementAs
Reported		As
Adjusted*
As
Reported		Impact of AlignmentAs
Adjusted*
REVENUES
Sales of vacation ownership products$439 $(12)$427 $— $— $439 $427 
Management and exchange(1)
Ancillary revenues58 — 58 1 — 59 59 
Management fee revenues42 — 42 6 — 48 48 
Exchange and other services revenues32 — 32 42 23 97 97 
Management and exchange132 — 132 49 23 204 204 
Rental104 — 104 9 — 113 113 
Financing76 — 76 — — 76 76 
Cost reimbursements(1)
362 — 362 4 (10)356 356 
TOTAL REVENUES$1,113 $(12)$1,101 $62 $13 $1,188 $1,176 
PROFIT (LOSS)
Development$162 $(7)$155 $— $— $162 $155 
Management and exchange(1)
70 — 70 22 (2)90 90 
Rental(1)
15 — 15 9 1 25 25 
Financing50 — 50 — — 50 50 
TOTAL PROFIT (LOSS)297 (7)290 31 (1)327 320 
OTHER
General and administrative— — — — (62)(62)(62)
Depreciation and amortization(25)— (25)(7)(2)(34)(34)
Litigation charges(2)— (2)— (2)(4)(4)
Royalty fee(30)— (30)— — (30)(30)
Impairment(1)— (1)— — (1)(1)
Gains and other income, net1 — 1 — — 1 1 
Interest expense— — — — (27)(27)(27)
Transaction and integration costs— — — — (26)(26)(26)
Other1 — 1 — — 1 1 
INCOME (LOSS) BEFORE INCOME TAXES AND NONCONTROLLING INTERESTS241 (7)234 24 (120)145 138 
Provision for income taxes— 2 2 — (57)(57)(55)
NET INCOME (LOSS) 241 (5)236 24 (177)88 83 
Net (income) loss attributable to noncontrolling interests— — — — — — — 
NET INCOME (LOSS) ATTRIBUTABLE TO COMMON SHAREHOLDERS$241 $(5)$236 $24 $(177)$88 $83 
SEGMENT MARGIN(2)
32%32%— 41%
(1) Amounts included in Corporate and other represent the impact of the consolidation of certain owners’ associations under the relevant accounting guidance, and represent the portion attributable to individual or third-party vacation ownership interest owners.
(2) Segment margin represents the applicable segment’s net income or loss attributable to common shareholders divided by the applicable segment’s total revenues less cost reimbursement revenues.
* Denotes non-GAAP financial measures. Please see “Non-GAAP Financial Measures” for additional information about our reasons for providing these alternative financial measures and limitations on their use.

A-6
MARRIOTT VACATIONS WORLDWIDE CORPORATION
REVENUES AND PROFIT BY SEGMENT
for the three months ended December 31, 2021
(In millions)
Reportable SegmentCorporate and OtherTotal
Vacation OwnershipExchange & Third-Party Management
REVENUES
Sales of vacation ownership products$364 $— $— $364 
Management and exchange(1)
Ancillary revenues53 1 — 54 
Management fee revenues41 8 (4)45 
Exchange and other services revenues33 45 40 118 
Management and exchange127 54 36 217 
Rental138 8 — 146 
Financing72 — — 72 
Cost reimbursements(1)
320 9 (28)301 
TOTAL REVENUES$1,021 $71 $8 $1,100 
PROFIT
Development$114 $— $— $114 
Management and exchange(1)
63 22 (8)77 
Rental(1)
32 8 9 49 
Financing48 — — 48 
TOTAL PROFIT257 30 1 288 
OTHER
General and administrative— — (61)(61)
Depreciation and amortization(23)(8)(3)(34)
Litigation charges(2)— — (2)
Royalty fee(28)— — (28)
Impairment— — 2 2 
Gains (losses) and other income (expense), net1 — (25)(24)
Interest expense— — (36)(36)
Transaction and integration costs— — (35)(35)
INCOME (LOSS) BEFORE INCOME TAXES AND NONCONTROLLING INTERESTS205 22 (157)70 
Provision for income taxes— — (11)(11)
NET INCOME (LOSS)205 22 (168)59 
Net loss attributable to noncontrolling interests(1)
— — 2 2 
NET INCOME (LOSS) ATTRIBUTABLE TO COMMON SHAREHOLDERS$205 $22 $(166)$61 
SEGMENT MARGIN(2)
29%33%
(1) Amounts included in Corporate and other represent the impact of the consolidation of certain owners’ associations under the relevant accounting guidance, and represent the portion attributable to individual or third-party vacation ownership interest owners.
(2) Segment margin represents the applicable segment’s net income or loss attributable to common shareholders divided by the applicable segment’s total revenues less cost reimbursement revenues.

A-7
MARRIOTT VACATIONS WORLDWIDE CORPORATION
REVENUES AND PROFIT BY SEGMENT
for the twelve months ended December 31, 2022
(In millions)
Reportable SegmentCorporate
and
Other		Total
Vacation OwnershipExchange & Third-Party ManagementAs
Reported		As
Adjusted*
As
Reported		Impact of AlignmentAs
Adjusted*
REVENUES
Sales of vacation ownership products$1,618 $(39)$1,579 $— $— $1,618 $1,579 
Management and exchange(1)
Ancillary revenues241 — 241 4 — 245 245 
Management fee revenues166 — 166 34 (5)195 195 
Exchange and other services revenues127 — 127 188 72 387 387 
Management and exchange534 — 534 226 67 827 827 
Rental509 — 509 42 — 551 551 
Financing293 — 293 — — 293 293 
Cost reimbursements(1)
1,388 — 1,388 23 (44)1,367 1,367 
TOTAL REVENUES$4,342 $(39)$4,303 $291 $23 $4,656 $4,617 
PROFIT (LOSS)
Development$522 $(32)$490 $— $— $522 $490 
Management and exchange(1)
294 — 294 106 (17)383 383 
Rental(1)
109 — 109 42 18 169 169 
Financing218 (19)199 — — 218 199 
TOTAL PROFIT (LOSS)1,143 (51)1,092 148 1 1,292 1,241 
OTHER
General and administrative— — — — (249)(249)(249)
Depreciation and amortization(92)— (92)(31)(9)(132)(132)
Litigation charges(9)— (9)— (2)(11)(11)
Royalty fee(114)— (114)— — (114)(114)
Impairment(2)— (2)— — (2)(2)
Gains (losses) and other income (expense), net37 — 37 15 (12)40 40 
Interest expense— — — — (118)(118)(118)
Transaction and integration costs(3)— (3)— (122)(125)(125)
Other1 — 1 — — 1 1 
INCOME (LOSS) BEFORE INCOME TAXES AND NONCONTROLLING INTERESTS961 (51)910 132 (511)582 531 
Benefit from (provision for) income taxes— 13 13 — (191)(191)(178)
NET INCOME (LOSS)961 (38)923 132 (702)391 353 
Net income attributable to noncontrolling interests— — — — — — — 
NET INCOME (LOSS) ATTRIBUTABLE TO COMMON SHAREHOLDERS$961 $(38)$923 $132 $(702)$391 $353 
SEGMENT MARGIN(2)
33%32%49%
(1) Amounts included in Corporate and other represent the impact of the consolidation of certain owners’ associations under the relevant accounting guidance, and represent the portion attributable to individual or third-party vacation ownership interest owners.
(2) Segment margin represents the applicable segment’s net income or loss attributable to common shareholders divided by the applicable segment’s total revenues less cost reimbursement revenues.
* Denotes non-GAAP financial measures. Please see “Non-GAAP Financial Measures” for additional information about our reasons for providing these alternative financial measures and limitations on their use.

A-8
MARRIOTT VACATIONS WORLDWIDE CORPORATION
REVENUES AND PROFIT BY SEGMENT
for the twelve months ended December 31, 2021
(In millions)
Reportable SegmentCorporate and OtherTotal
Vacation OwnershipExchange & Third-Party Management
REVENUES
Sales of vacation ownership products$1,153 $— $— $1,153 
Management and exchange(1)
Ancillary revenues188 3 — 191 
Management fee revenues158 32 (19)171 
Exchange and other services revenues124 198 171 493 
Management and exchange470 233 152 855 
Rental446 40 — 486 
Financing268 — — 268 
Cost reimbursements(1)
1,202 47 (121)1,128 
TOTAL REVENUES$3,539 $320 $31 $3,890 
PROFIT
Development$286 $— $— $286 
Management and exchange(1)
270 102 (38)334 
Rental(1)
52 40 50 142 
Financing180 — — 180 
TOTAL PROFIT788 142 12 942 
OTHER
General and administrative— — (227)(227)
Depreciation and amortization(89)(48)(9)(146)
Litigation charges(9)— (1)(10)
Restructuring— (1)1 — 
Royalty fee(106)— — (106)
Impairment— — (3)(3)
Gains (losses) and other income (expense), net1 — (52)(51)
Interest expense— — (164)(164)
Transaction and integration costs(2)— (108)(110)
Other2 — — 2 
INCOME (LOSS) BEFORE INCOME TAXES AND NONCONTROLLING INTERESTS585 93 (551)127 
Provision for income taxes— — (74)(74)
NET INCOME (LOSS)585 93 (625)53 
Net income attributable to noncontrolling interests(1)
— — (4)(4)
NET INCOME (LOSS) ATTRIBUTABLE TO COMMON SHAREHOLDERS$585 $93 $(629)$49 
SEGMENT MARGIN(2)
25%34%
(1) Amounts included in Corporate and other represent the impact of the consolidation of certain owners’ associations under the relevant accounting guidance, and represent the portion attributable to individual or third-party vacation ownership interest owners.
(2) Segment margin represents the applicable segment’s net income or loss attributable to common shareholders divided by the applicable segment’s total revenues less cost reimbursement revenues.

A-9
MARRIOTT VACATIONS WORLDWIDE CORPORATION
ADJUSTED NET INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS AND
ADJUSTED EARNINGS PER SHARE - DILUTED
(In millions, except per share amounts)
 Quarter EndedFiscal Year Ended
December 31, 2022December 31, 2021December 31, 2022December 31, 2021
Net income attributable to common shareholders$88 $61 $391 $49 
Provision for income taxes57 11 191 74 
Income before income taxes attributable to common shareholders145 72 582 123 
Certain items:
ILG integration15 $29 $82 $93 
Welk acquisition and integration4 8 14 16 
I/T transformation3 — 16 — 
Other transformation initiatives4 — 10 — 
Other transaction costs— (2)3 1 
Transaction and integration costs26 35 125 110 
Early redemption of senior unsecured notes— 19 — 55 
Gain on disposition of hotel— — (33)— 
Gain on disposition of VRI Americas— — (17)— 
Foreign currency translation— 4 10 — 
Insurance proceeds(1)— (6)— 
Change in indemnification asset1 (1)3 (7)
Other(1)2 3 3 
(Gains) losses and other (income) expense, net(1)24 (40)51 
Purchase accounting adjustments(2)3 11 10 
Litigation charges4 2 11 10 
Impairment1 (2)2 3 
Expiration/forfeiture of deposits on pre-acquisition preview packages— — (6)— 
Early termination of VRI management contract— — (2)— 
Eliminate impact of Consolidated Property Owners' Associations— (3)— (8)
Change in estimate relating to pre-acquisition contingencies(7)— (12)— 
Other3 — 6 (3)
Adjusted pretax income*169 131 677 296 
Provision for income taxes(54)(28)(219)(106)
Adjusted net income attributable to common shareholders*$115 $103 $458 $190 
Diluted shares(1)
43.043.645.2 43.3 
Adjusted earnings per share - Diluted*$2.74 $2.38 $10.26 $4.40 
Excluding the Impact of Alignment:
Adjusted net income attributable to common shareholders*$110 $103 $421 $190 
Adjusted earnings per share - Diluted*$2.60 $2.38 $9.42 $4.40 
(1) Diluted shares include 4.2 million and 4.3 million shares for the quarter and year-ended December 31, 2022, respectively, related to our convertible notes, reflecting the impact of the adoption of Accounting Standards Update 2020-06 in 2022.
* Denotes non-GAAP financial measures. Please see “Non-GAAP Financial Measures” for additional information about our reasons for providing these alternative financial measures and limitations on their use.

A-10
MARRIOTT VACATIONS WORLDWIDE CORPORATION
ADJUSTED EBITDA
(In millions)
Quarter EndedFiscal Year Ended
December 31, 2022December 31, 2021December 31, 2022December 31, 2021
NET INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS$88 $61 $391 $49 
Interest expense27 36 118 164 
Provision for income taxes57 11 191 74 
Depreciation and amortization34 34 132 146 
Share-based compensation9 18 39 51 
Certain items:
ILG integration15 $29 $82 $93 
Welk acquisition and integration4 8 14 16 
I/T transformation3 — 16 — 
Other transformation initiatives4 — 10 — 
Other transaction costs— (2)3 1 
Transaction and integration costs26 35 125 110 
Early redemption of senior unsecured notes— 19 — 55 
Gain on disposition of hotel— — (33)— 
Gain on disposition of VRI Americas— — (17)— 
Foreign currency translation— 4 10 — 
Insurance proceeds(1)— (6)— 
Change in indemnification asset1 (1)3 (7)
Other(1)2 3 3 
(Gains) losses and other (income) expense, net(1)24 (40)51 
Purchase accounting adjustments(2)3 11 10 
Litigation charges4 2 11 10 
Impairment1 (2)2 3 
Expiration/forfeiture of deposits on pre-acquisition preview packages— — (6)— 
Early termination of VRI management contract— — (2)— 
Eliminate impact of Consolidated Property Owners' Associations— (3)— (8)
Change in estimate relating to pre-acquisition contingencies(7)— (12)— 
Other3 — 6 (3)
ADJUSTED EBITDA*$239 $219 $966 $657 
ADJUSTED EBITDA MARGIN*29%27%29%24%
Excluding the Impact of Alignment:
ADJUSTED EBITDA*$232 $219 $915 $657 
ADJUSTED EBITDA MARGIN*28%27%28%24%
* Denotes non-GAAP financial measures. Please see “Non-GAAP Financial Measures” for additional information about our reasons for providing these alternative financial measures and limitations on their use.

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

Quarter Ended
December 31, 2022December 31, 2021
As
Reported		Impact of AlignmentAs
Adjusted*
Consolidated contract sales$454 $— $454 $406 
Less resales contract sales(10)— (10)(7)
Consolidated contract sales, net of resales444 — 444 399 
Plus:
Settlement revenue10 — 10 7 
Resales revenue7 — 7 4 
Revenue recognition adjustments:
Reportability36 (12)24 7 
Sales reserve(40)— (40)(28)
Other(1)
(18)— (18)(25)
Sale of vacation ownership products439 (12)427 364 
Less:
Cost of vacation ownership products(73)5 (68)(72)
Marketing and sales(204)— (204)(178)
Development Profit (Loss)162 (7)155 114 
Revenue recognition reportability adjustment(27)7 (20)(6)
Purchase accounting adjustments(1)— (1)3 
Other(8)— (8)— 
Adjusted development profit*$126 $— $126 $111 
Development profit margin36.8%36.2%31.3%
Adjusted development profit margin*31.5%31.5%31.1%
(1) Adjustment for sales incentives that will not be recognized as Sale of vacation ownership products revenue and other adjustments to Sale of vacation ownership products revenue.
* Denotes non-GAAP financial measures. Please see “Non-GAAP Financial Measures” for additional information about our reasons for providing these alternative financial measures and limitations on their use.






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

Fiscal Year Ended
December 31, 2022December 31, 2021
As
Reported		Impact of AlignmentAs
Adjusted*
Consolidated contract sales$1,837 $— $1,837 $1,374 
Less resales contract sales(40)— (40)(26)
Consolidated contract sales, net of resales1,797 — 1,797 1,348 
Plus:
Settlement revenue36 — 36 28 
Resales revenue20 — 20 12 
Revenue recognition adjustments:
Reportability43 (58)(15)(44)
Sales reserve(170)19 (151)(101)
Other(1)
(108)— (108)(90)
Sale of vacation ownership products1,618 (39)1,579 1,153 
Less:
Cost of vacation ownership products(289)7 (282)(250)
Marketing and sales(807)— (807)(617)
Development Profit (Loss)522 (32)490 286 
Revenue recognition reportability adjustment(35)46 11 32 
Purchase accounting adjustments13 — 13 12 
Other(13)— (13)— 
Adjusted development profit*$487 $14 $501 $330 
Development profit margin32.2%31.0%24.8%
Adjusted development profit margin*31.0%31.5%27.6%
(1) Adjustment for sales incentives that will not be recognized as Sale of vacation ownership products revenue and other adjustments to Sale of vacation ownership products revenue.
* Denotes non-GAAP financial measures. Please see “Non-GAAP Financial Measures” for additional information about our reasons for providing these alternative financial measures and limitations on their use.






A-13
MARRIOTT VACATIONS WORLDWIDE CORPORATION
(In millions)
(Unaudited)
VACATION OWNERSHIP SEGMENT ADJUSTED EBITDA
Quarter EndedFiscal Year Ended
December 31, 2022December 31, 2021December 31, 2022December 31, 2021
SEGMENT FINANCIAL RESULTS ATTRIBUTABLE TO COMMON SHAREHOLDERS$241 $205 $961 $585 
Depreciation and amortization25 23 92 89 
Share-based compensation expense2 2 7 6 
Certain items:
Transaction and integration costs— — 3 2 
Gain on disposition of hotel— — (33)— 
Insurance proceeds(1)— (4)— 
Other— (1)— (1)
Gains and other income, net(1)(1)(37)(1)
Purchase accounting adjustments(2)3 11 10 
Litigation charges2 2 9 9 
Impairment1 — 2 — 
Expiration/forfeiture of deposits on pre-acquisition preview packages— — (6)— 
Change in estimate relating to pre-acquisition contingencies(7)— (12)— 
Other— — 3 (1)
SEGMENT ADJUSTED EBITDA*$261 $234 $1,033 $699 
SEGMENT ADJUSTED EBITDA MARGIN*35%33%35%30%
Excluding the Impact of Alignment:
SEGMENT ADJUSTED EBITDA*$254 $234 $982 $699 
SEGMENT ADJUSTED EBITDA MARGIN*34%33%34%30%
EXCHANGE & THIRD-PARTY MANAGEMENT SEGMENT ADJUSTED EBITDA
Quarter EndedFiscal Year Ended
December 31, 2022December 31, 2021December 31, 2022December 31, 2021
SEGMENT FINANCIAL RESULTS ATTRIBUTABLE TO COMMON SHAREHOLDERS$24 $22 $132 $93 
Depreciation and amortization7 8 31 48 
Share-based compensation expense— 1 2 2 
Certain items:
Gain on disposition of VRI Americas— — (17)— 
Foreign currency translation— — 2 — 
COVID-19 related restructuring— — — 1 
Other— — (2)— 
SEGMENT ADJUSTED EBITDA*$31 $31 $148 $144 
SEGMENT ADJUSTED EBITDA MARGIN*55%49%55%53%
* Denotes non-GAAP financial measures. Please see “Non-GAAP Financial Measures” for additional information about our reasons for providing these alternative financial measures and limitations on their use.

A-14
MARRIOTT VACATIONS WORLDWIDE CORPORATION
CASH FLOW AND ADJUSTED FREE CASH FLOW
(In millions)
CASH FLOW2022
Cash, cash equivalents and restricted cash provided by (used in):
Operating activities$522 
Investing activities16 
Financing activities(486)
Effect of changes in exchange rates on cash, cash equivalents, and restricted cash(1)
Net change in cash, cash equivalents and restricted cash$51 
ADJUSTED FREE CASH FLOW
Net cash, cash equivalents and restricted cash provided by operating activities$522 
Capital expenditures for property and equipment (excluding inventory)(65)
Borrowings from securitization transactions1,031 
Repayment of debt related to securitizations(945)
Securitized debt issuance costs(10)
Free cash flow*533 
Adjustments:
Decrease in restricted cash131 
Transaction and integration costs(1)
93 
Capital expenditures(2)
24 
Litigation charges(3)
7 
Insurance proceeds(4)
(4)
Net change in borrowings available from the securitization of eligible vacation ownership notes receivable(5)
(40)
Adjusted free cash flow*$744 

(1) Represents adjustment to exclude the after-tax impact of transaction and integration costs in connection with the ILG Acquisition and Welk Acquisition.
(2) Represents adjustment to exclude capital expenditures, primarily related to our new global corporate headquarters in Orlando, FL.
(3) Represents adjustment to exclude the after-tax impact of litigation charges.
(4) Represents adjustment to exclude the after-tax impact of insurance proceeds.
(5) Represents the net change in borrowings available from the securitization of eligible vacation ownership notes receivable between the 2021 and 2022 year ends.
* Denotes non-GAAP financial measures. Please see “Non-GAAP Financial Measures” for additional information about our reasons for providing these alternative financial measures and limitations on their use.

A-15
MARRIOTT VACATIONS WORLDWIDE CORPORATION
CONSOLIDATED BALANCE SHEETS
FISCAL YEAR-END 2022 AND 2021
(In millions, except share and per share data)
20222021
ASSETS
Cash and cash equivalents$524 $342 
Restricted cash (including $85 and $139 from VIEs, respectively)
330 461 
Accounts receivable, net (including $13 and $12 from VIEs, respectively)
292 279 
Vacation ownership notes receivable, net (including $1,792 and $1,662 from VIEs, respectively)
2,198 2,045 
Inventory660 719 
Property and equipment, net1,139 1,136 
Goodwill3,117 3,150 
Intangibles, net911 993 
Other (including $76 and $76 from VIEs, respectively)
468 488 
TOTAL ASSETS$9,639 $9,613 
LIABILITIES AND EQUITY
Accounts payable$356 $265 
Advance deposits158 160 
Accrued liabilities (including $5 and $2 from VIEs, respectively)
369 345 
Deferred revenue344 453 
Payroll and benefits liability251 201 
Deferred compensation liability139 142 
Securitized debt, net (including $1,982 and $1,877 from VIEs, respectively)
1,938 1,856 
Debt, net3,088 2,631 
Other167 224 
Deferred taxes331 350 
TOTAL LIABILITIES7,141 6,627 
Preferred stock — $0.01 par value; 2,000,000 shares authorized; none issued or outstanding
— — 
Common stock — $0.01 par value; 100,000,000 shares authorized; 75,744,524 and 75,519,049 shares issued, respectively
1 1 
Treasury stock — at cost; 38,263,442 and 33,235,671 shares, respectively
(2,054)(1,356)
Additional paid-in capital3,941 4,072 
Accumulated other comprehensive income (loss)15 (16)
Retained earnings593 275 
TOTAL MVW SHAREHOLDERS' EQUITY2,496 2,976 
Noncontrolling interests2 10 
TOTAL EQUITY2,498 2,986 
TOTAL LIABILITIES AND EQUITY$9,639 $9,613 
The abbreviation VIEs above means Variable Interest Entities.

A-16
MARRIOTT VACATIONS WORLDWIDE CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
FISCAL YEARS 2022 AND 2021
(In millions)
20222021
OPERATING ACTIVITIES
Net income$391 $53 
Adjustments to reconcile net income to net cash, cash equivalents, and restricted cash provided by operating activities:
Depreciation and amortization of intangibles132 146 
Amortization of debt discount and issuance costs25 56 
Vacation ownership notes receivable reserve150 101 
Share-based compensation39 51 
Impairment charges— 3 
Gains and other income, net(48)— 
Deferred income taxes87 34 
Net change in assets and liabilities, net of the effects of acquisition:
Accounts and contracts receivable(45)— 
Vacation ownership notes receivable originations(980)(750)
Vacation ownership notes receivable collections642 686 
Inventory104 61 
Other assets(49)(46)
Accounts payable, advance deposits and accrued liabilities112 42 
Deferred revenue(9)88 
Payroll and benefit liabilities53 35 
Deferred compensation liability13 22 
Other liabilities(38)27 
Deconsolidation of certain Consolidated Property Owners' Associations(48)(168)
Purchase of vacation ownership units for future transfer to inventory(12)(98)
Other, net3 — 
Net cash, cash equivalents, and restricted cash provided by operating activities522 343 
INVESTING ACTIVITIES
Acquisition of a business, net of cash and restricted cash acquired— (157)
Proceeds from disposition of subsidiaries, net of cash and restricted cash transferred94 — 
Capital expenditures for property and equipment (excluding inventory)(65)(47)
Issuance of note receivable to VIE(47)— 
Proceeds from collection of note receivable from VIE47 — 
Purchase of company owned life insurance(18)(14)
Dispositions, net3 3 
Other, net2 2 
Net cash, cash equivalents, and restricted cash provided by (used in) investing activities16 (213)
Continued

A-17
MARRIOTT VACATIONS WORLDWIDE CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS (CONTINUED)
FISCAL YEARS 2022 AND 2021
(In millions)
20222021
FINANCING ACTIVITIES
Borrowings from securitization transactions1,031 957 
Repayment of debt related to securitization transactions(945)(868)
Proceeds from debt1,266 1,111 
Repayments of debt(935)(1,339)
Purchase of convertible note hedges(107)(100)
Proceeds from issuance of warrants43 70 
Payment of debt issuance costs(15)(22)
Finance lease payments(4)(5)
Repurchase of common stock(701)(78)
Payment of dividends(99)(23)
Payment of withholding taxes on vesting of restricted stock units(23)(20)
Other, net3 — 
Net cash, cash equivalents, and restricted cash used in financing activities(486)(317)
Effect of changes in exchange rates on cash, cash equivalents, and restricted cash(1)(2)
Change in cash, cash equivalents, and restricted cash51 (189)
Cash, cash equivalents, and restricted cash, beginning of year803 992 
Cash, cash equivalents, and restricted cash, end of year$854 $803 

A-18
MARRIOTT VACATIONS WORLDWIDE CORPORATION
(In millions, except per share amounts)
2023 ADJUSTED NET INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS AND ADJUSTED EARNINGS PER SHARE - DILUTED OUTLOOK
Fiscal Year
2023 (low)		Fiscal Year
2023 (high)
Net income attributable to common shareholders$405 $440 
Provision for income taxes165 180 
Income before income taxes attributable to common shareholders570 620 
Certain items(1)
75 75 
Adjusted pretax income*645 695 
Provision for income taxes(185)(200)
Adjusted net income attributable to common shareholders*$460 $495 
Earnings per share - Diluted(2)
$9.51 $10.30 
Adjusted earnings per share - Diluted(2)*
$10.75 $11.54 
Diluted shares(2)
44.5 44.5 


2023 ADJUSTED EBITDA OUTLOOK
Fiscal Year
2023 (low)		Fiscal Year
2023 (high)
Net income attributable to common shareholders$405 $440 
Interest expense140 140 
Provision for income taxes165 180 
Depreciation and amortization125 125 
Share-based compensation40 40 
Certain items(1)
75 75 
Adjusted EBITDA*$950 $1,000 
(1) Certain items adjustment includes $50 million of anticipated transaction and integration costs, $20 million of anticipated purchase accounting adjustments, and $5 million of anticipated litigation charges.
(2) We expect 6.5 million shares to be included in diluted shares related to our convertible notes and an add back of $18 million for interest expense to the numerator of the diluted earnings per share calculation.
* Denotes non-GAAP financial measures. Please see “Non-GAAP Financial Measures” for additional information about our reasons for providing these alternative financial measures and limitations on their use.

A-19
MARRIOTT VACATIONS WORLDWIDE CORPORATION
2023 ADJUSTED FREE CASH FLOW OUTLOOK
(In millions)
Fiscal Year 2023 (low)Fiscal Year 2023 (high)
Net cash, cash equivalents and restricted cash provided by operating activities$365 $415 
Capital expenditures for property and equipment (excluding inventory)(80)(90)
Borrowings from securitization transactions950 1,000 
Repayment of debt related to securitizations(810)(830)
Securitized Debt Issuance Costs(15)(15)
Free cash flow*410 480 
Adjustments:
Net change in borrowings available from the securitization of eligible vacation ownership notes receivable(1)
120 120 
Certain items(2)
85 85 
Change in restricted cash(15)(15)
Adjusted free cash flow*$600 $670 

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

A-20
MARRIOTT VACATIONS WORLDWIDE CORPORATION
QUARTERLY OPERATING METRICS
(Contract sales in millions)
YearQuarter EndedFull Year
March 31June 30September 30December 31
Vacation Ownership
Consolidated contract sales
2022$394 $506 $483 $454 $1,837 
2021$226 $362 $380 $406 $1,374 
2020$306 $30 $140 $178 $654 
VPG
2022$4,706 $4,613 $4,353 $4,088 $4,421 
2021$4,644 $4,304 $4,300 $4,305 $4,356 
2020$3,680 $3,717 $3,904 $3,826 $3,767 
Tours
202278,505 102,857 104,000 105,231 390,593 
202145,871 79,900 84,098 89,495 299,364 
202079,131 6,216 33,170 44,161 162,678 
Exchange & Third-Party Management
Total active members (000's)(1)
20221,606 1,596 1,591 1,566 1,566 
20211,479 1,321 1,313 1,296 1,296 
20201,636 1,571 1,536 1,518 1,518 
Average revenue per member(1)
2022$44.33 $38.79 $38.91 $35.60 $157.97 
2021$47.13 $46.36 $42.95 $42.93 $179.48 
2020$41.37 $30.17 $36.76 $36.62 $144.97 
(1) Includes members at the end of each period for the Interval International exchange network only.

A-21
MARRIOTT VACATIONS WORLDWIDE CORPORATION
NON-GAAP FINANCIAL MEASURES
In our press release and schedules, and on the related conference call, we report certain financial measures that are not prescribed by GAAP. We discuss our reasons for reporting these non-GAAP financial measures below, and the financial schedules included herein reconcile the most directly comparable GAAP financial measure to each non-GAAP financial measure that we report (identified by an asterisk (“*”) on the preceding pages). Although we evaluate and present these non-GAAP financial measures for the reasons described below, please be aware that these non-GAAP financial measures have limitations and should not be considered in isolation or as a substitute for revenues, net income or loss attributable to common shareholders, earnings or loss per share or any other comparable operating measure prescribed by GAAP. In addition, other companies in our industry may calculate these non-GAAP financial measures differently than we do or may not calculate them at all, limiting their usefulness as comparative measures.
Certain Items Excluded from Non-GAAP Financial Measures
We evaluate non-GAAP financial measures, including those identified by an asterisk (“*”) on the preceding pages, that exclude certain items as further described in the financial schedules included herein, and believe these measures provide useful information to investors because these non-GAAP financial measures allow for period-over-period comparisons of our on-going core operations before the impact of these items. These non-GAAP financial measures also facilitate the comparison of results from our on-going core operations before these items with results from other companies.
Adjusted Development Profit and Adjusted Development Profit Margin
We evaluate Adjusted development profit (Adjusted sale of vacation ownership products, net of expenses) and Adjusted development profit margin as indicators of operating performance. Adjusted development profit margin is calculated by dividing Adjusted development profit by revenues from the Sale of vacation ownership products. Adjusted development profit and Adjusted development profit margin adjust Sale of vacation ownership products revenues for the impact of revenue reportability, include corresponding adjustments to Cost of vacation ownership products associated with the change in revenues from the Sale of vacation ownership products, and may include adjustments for certain items as necessary. We evaluate Adjusted development profit and Adjusted development profit margin and believe they provide useful information to investors because they allow for period-over-period comparisons of our on-going core operations before the impact of revenue reportability and certain items to our Development profit and Development profit margin.
Earnings Before Interest Expense, Taxes, Depreciation and Amortization (“EBITDA”) and Adjusted EBITDA
EBITDA, a financial measure that is not prescribed by GAAP, is defined as earnings, or net income or loss attributable to common shareholders, before interest expense (excluding consumer financing interest expense associated with term securitization transactions), income taxes, depreciation and amortization. Adjusted EBITDA reflects additional adjustments for certain items and excludes share-based compensation expense to address considerable variability among companies in recording compensation expense because companies use share-based payment awards differently, both in the type and quantity of awards granted. For purposes of our EBITDA and Adjusted EBITDA calculations, we do not adjust for consumer financing interest expense associated with term securitization transactions because we consider it to be an operating expense of our business. We consider Adjusted EBITDA to be an indicator of operating performance, which we use to measure our ability to service debt, fund capital expenditures, expand our business, and return cash to shareholders. We also use Adjusted EBITDA, as do analysts, lenders, investors, and others, because this

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measure excludes certain items that can vary widely across different industries or among companies within the same industry. For example, interest expense can be dependent on a company’s capital structure, debt levels and credit ratings. Accordingly, the impact of interest expense on earnings can vary significantly among companies. The tax positions of companies can also vary because of their differing abilities to take advantage of tax benefits and because of the tax policies of the jurisdictions in which they operate. As a result, effective tax rates and provisions for income taxes can vary considerably among companies. EBITDA and Adjusted EBITDA also exclude depreciation and amortization because companies utilize productive assets of different ages and use different methods of both acquiring and depreciating productive assets. These differences can result in considerable variability in the relative costs of productive assets and the depreciation and amortization expense among companies. We believe Adjusted EBITDA is useful as an indicator of operating performance because it allows for period-over-period comparisons of our on-going core operations before the impact of the excluded items. Adjusted EBITDA also facilitates comparison by us, analysts, investors, and others, of results from our on-going core operations before the impact of these items with results from other companies.
Adjusted EBITDA Margin and Segment Adjusted EBITDA Margin
We evaluate Adjusted EBITDA margin and Segment Adjusted EBITDA margin as indicators of operating performance. Adjusted EBITDA margin represents Adjusted EBITDA divided by the Company’s total revenues less cost reimbursement revenues. Segment Adjusted EBITDA margin represents Segment Adjusted EBITDA divided by the applicable segment’s total revenues less cost reimbursement revenues. We evaluate Adjusted EBITDA margin and Segment Adjusted EBITDA margin and believe it provides useful information to investors because it allows for period-over-period comparisons of our on-going core operations.
Free Cash Flow and Adjusted Free Cash Flow
We evaluate Free Cash Flow and Adjusted Free Cash Flow as liquidity measures that provide useful information to management and investors about the amount of cash provided by operating activities after capital expenditures for property and equipment and the borrowing and repayment activity related to our term securitizations, which cash can be used for, among other purposes, strategic opportunities, including acquisitions and strengthening the balance sheet. Adjusted Free Cash Flow, which reflects additional adjustments to Free Cash Flow for the impact of transaction and integration charges, impact of borrowings available from the securitization of eligible vacation ownership notes receivable, and changes in restricted cash, allows for period-over-period comparisons of the cash generated by our business before the impact of these items. Analysis of Free Cash Flow and Adjusted Free Cash Flow also facilitates management’s comparison of our results with our competitors’ results.
Results As Adjusted
In our press release and schedules we provide As Adjusted results for comparison. The As Adjusted results exclude any impacts to the Company’s reported results on a GAAP basis due to the Alignment. We provide this As Adjusted information because we believe that it facilitates the comparison of results from our on-going core operations before the impact of the Alignment. We believe that the As Adjusted results provide useful information to assist with period-over-period comparisons of our on-going operations excluding any impact from the Alignment.