MARRIOTT VACATIONS WORLDWIDE CorpVAC
MARRIOTT VACATIONS WORLDWIDE Corp Earnings Per Share Disclosure
EARNINGS PER SHARE
Basic earnings or loss per share attributable to common stockholders is calculated by dividing net income or loss attributable to common stockholders by the weighted average number of shares of common stock outstanding during the reporting period. Diluted earnings or loss per share attributable to common stockholders is calculated to give effect to all potentially dilutive common shares that were outstanding during the reporting period, except in periods when there is a loss because the inclusion of the potential common shares would have an anti-dilutive effect. The dilutive effect of outstanding equity-based compensation awards is reflected in diluted earnings or loss per share applicable to common stockholders by application of the treasury stock method.
The shares issuable on exercise of the warrants sold in connection with the issuance of our convertible notes will not impact the total dilutive weighted average shares outstanding unless and until the price of our common stock exceeds the respective strike price. If the price of our common stock exceeds the respective strike price of any of the warrants, we will include the dilutive effect of the additional shares that may be issued upon exercise of the warrants in total dilutive weighted average shares outstanding, which we calculate using the treasury stock method, to the extent that the additional shares are dilutive. The convertible note hedges purchased in connection with each issuance of the convertible notes are considered to be anti-dilutive and do not impact our calculation of diluted earnings per share attributable to common stockholders for any periods presented herein.
The tables below illustrate the reconciliation of the earnings or loss and number of shares used in our calculation of basic and diluted earnings or loss per share attributable to common stockholders.
| (in millions, except per share amounts) | 2025 | 2024 | 2023 | ||||||||||||||
| Net (loss) income attributable to common stockholders | $ | (308) | $ | 218 | $ | 254 | |||||||||||
| Shares for basic (loss) earnings per share | 34.9 | 35.4 | 36.5 | ||||||||||||||
| Basic (loss) earnings per share | $ | (8.84) | $ | 6.16 | $ | 6.96 | |||||||||||
| (in millions, except per share amounts) | 2025 | 2024(1) | 2023(1) | ||||||||||||||
| Net (loss) income attributable to common stockholders | $ | (308) | $ | 218 | $ | 254 | |||||||||||
Add back of interest expense related to convertible notes, net of tax(2) | — | 19 | 19 | ||||||||||||||
| Numerator used to calculate diluted (loss) earnings per share | $ | (308) | $ | 237 | $ | 273 | |||||||||||
| Shares for basic (loss) earnings per share | 34.9 | 35.4 | 36.5 | ||||||||||||||
Effect of dilutive shares outstanding(3) | |||||||||||||||||
| Employee SARs | — | — | 0.1 | ||||||||||||||
| Restricted stock units | — | 0.1 | 0.3 | ||||||||||||||
2026 Convertible Notes | — | 3.6 | 3.5 | ||||||||||||||
2027 Convertible Notes | — | 3.0 | 3.1 | ||||||||||||||
| Shares for diluted (loss) earnings per share | 34.9 | 42.1 | 43.5 | ||||||||||||||
| Diluted (loss) earnings per share | $ | (8.84) | $ | 5.61 | $ | 6.28 | |||||||||||
(1)The computations of diluted earnings per share attributable to common stockholders above exclude approximately 222,000 and 193,000 shares of common stock, the maximum number of shares issuable as of December 31, 2024 and December 31, 2023, respectively, upon the vesting of certain performance-based awards, because the performance conditions required to be met for the shares subject to such awards to vest were not achieved by the end of the reporting period.
(2)For the year ended December 31, 2025, $18 million of interest expense related to convertible notes, net of tax, was excluded from the above calculation of diluted net loss per share attributable to common stockholders as the effects of inclusion would have been anti-dilutive.
(3)For the year ended December 31, 2025, the following potentially dilutive securities were excluded from the above calculation of diluted net loss per share attributable to common stockholders as the effects of including these securities would have been anti-dilutive.
| (in millions, except per share amounts) | 2025 | ||||
| Restricted stock units | 0.2 | ||||
| 2026 Convertible Notes | 3.0 | ||||
| 2027 Convertible Notes | 3.0 | ||||
| 6.2 | |||||
In accordance with the applicable accounting guidance for calculating earnings per share, for the year ended December 31, 2024, we excluded from our calculation of diluted earnings per share 643,167 shares underlying SARs that may settle in shares of common stock because the exercise prices of such SARs, which ranged from $93.73 to $173.88, were greater than the average market price of our common stock for the applicable period.
For the year ended December 31, 2023, we excluded from our calculation of diluted earnings per share 287,125 shares underlying SARs that may settle in shares of common stock because the exercise prices of such SARs, which ranged from $143.38 to $173.88, were greater than the average market price of our common stock for the applicable period.Free Sentinel
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About Earnings Per Share Disclosures
The earnings per share disclosure breaks down the calculation from net income to both basic and diluted EPS, revealing the full impact of a company's capital structure on per-share economics. The reconciliation between basic and diluted share counts exposes how many stock options, RSUs, convertible securities, and warrants are potentially dilutive to existing shareholders.
Key signals: a widening gap between basic and diluted shares indicates growing dilution from equity compensation or convertible instruments. Anti-dilutive securities excluded from the diluted calculation deserve attention — they represent latent dilution that will materialize if the stock price rises. Watch for the effect of share buybacks on per-share metrics: EPS growth driven primarily by repurchases rather than income growth signals weakening fundamentals. Compare year-over-year changes in the diluted share count against equity compensation expense to assess whether management is effectively managing dilution.