MARRIOTT VACATIONS WORLDWIDE CorpVAC
MARRIOTT VACATIONS WORLDWIDE Corp Segments Disclosure
BUSINESS SEGMENTS
We define our reportable segments based on the way in which the chief operating decision maker (“CODM”), currently our chief executive officer, manages the operations of the Company for purposes of allocating resources and assessing performance. We operate in two operating and reportable business segments: Vacation Ownership and Exchange & Third-Party Management. These segments are managed independently due to the differing nature of their products and services.
Vacation Ownership includes a diverse portfolio of resorts that includes some of the world’s most iconic brands licensed under exclusive, long-term relationships. We are the exclusive worldwide developer, marketer, seller and manager of vacation ownership and related products under the Marriott Vacation Club, Grand Residences by Marriott, Sheraton Vacation Club, Westin Vacation Club, and Hyatt Vacation Club brands. We are also the exclusive worldwide developer, marketer and seller of vacation ownership and related products under The Ritz-Carlton Club brand, and we have the non-exclusive right to develop, market and sell whole ownership residential products under The Ritz-Carlton Residences brand. We also have a license to use the St. Regis brand for specified fractional ownership products.
Our Vacation Ownership segment generates most of its revenues from four primary sources: selling vacation ownership products; managing vacation ownership resorts, clubs, and owners’ associations; financing consumer purchases of vacation ownership products; and renting vacation ownership inventory.
Exchange & Third-Party Management includes an exchange network and membership programs, as well as provision of management services to other resorts and lodging properties. We provide these services through our Interval International and Aqua-Aston businesses. Exchange & Third-Party Management revenue generally is fee-based and derived from membership, exchange, and rental transactions, property and owners’ association management, and other related products and services.
Our CODM evaluates 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 or indirect general and administrative expenses to our segments. We include interest income specific to segment activities within the appropriate segment. We allocate depreciation and amortization, other gains and losses, equity in earnings or losses from our joint ventures, and noncontrolling interest to each of our segments as appropriate. Corporate and other represents that portion of our results that are not allocable to our segments, including those relating to consolidated owners’ associations, as our CODM does not use this information to make operating segment resource allocations.
Our CODM uses Adjusted Earnings before Interest Expense, Taxes, Depreciation and Amortization (“Adjusted EBITDA”) to evaluate the profitability of our operating segments, and the components of net income or loss attributable to common stockholders excluded from Adjusted EBITDA are not separately evaluated. Our CODM reviews budget-to-actual and/or forecast-to-actual variances on a monthly basis using Adjusted EBITDA to make decisions about capital allocation and resource distribution to the segments. Adjusted EBITDA is defined as net income or loss attributable to common stockholders, before interest expense (excluding consumer financing interest expense associated with term securitization transactions), income taxes, depreciation and amortization, excluding share-based compensation expense and amortization of cloud computing software implementation costs, and adjusted for certain items that affect the comparability of our operating performance. We do not report asset information by segment because that information is not used to evaluate performance or allocate resources between segments.
During the first quarter of 2025, we began excluding Amortization of cloud computing software implementation costs, which are not included in Depreciation and amortization, from Adjusted EBITDA for comparability purposes, to address the considerable variability among companies in the utilization of productive assets, and have reclassified prior year amounts to conform with our current year presentation.
Additionally, during the year ended December 31, 2025, we reclassified $6 million of certain prior year amounts related to ongoing litigation from General and administrative expense to Litigation charges in order to conform with our current year presentation.
Our reconciliation of the aggregate amount of Adjusted EBITDA for our reportable segments to consolidated net income or loss attributable to common stockholders is presented below.
Segment Revenues and Adjusted EBITDA
The table below presents the following for the periods presented: revenues, disaggregated by segment, reconciled to consolidated revenue; segment expenses, including significant expense categories and amounts that align with segment-level information regularly provided to our CODM; and segment Adjusted EBITDA reconciled to Net income or loss attributable to common stockholders.
| 2025 | 2024 | 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||
| ($ in millions) | Vacation Ownership | Exchange & Third-Party Management | Total | Vacation Ownership | Exchange & Third-Party Management | Total | Vacation Ownership | Exchange & Third-Party Management | Total | ||||||||||||||||||||||||||||||||||||||||||||
| Revenues from external customers | $ | 4,805 | $ | 213 | $ | 5,018 | $ | 4,730 | $ | 231 | $ | 4,961 | $ | 4,468 | $ | 262 | $ | 4,730 | |||||||||||||||||||||||||||||||||||
| Reconciliation of revenues | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Corporate and other(1) | 14 | 6 | (3) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Total consolidated revenues | $ | 5,032 | $ | 4,967 | $ | 4,727 | |||||||||||||||||||||||||||||||||||||||||||||||
| Cost of vacation ownership products | (184) | — | (200) | — | (224) | — | |||||||||||||||||||||||||||||||||||||||||||||||
| Marketing and sales | (943) | — | (919) | — | (823) | — | |||||||||||||||||||||||||||||||||||||||||||||||
| Management and exchange | (291) | (117) | (293) | (122) | (270) | (118) | |||||||||||||||||||||||||||||||||||||||||||||||
| Rental | (537) | — | (498) | — | (466) | — | |||||||||||||||||||||||||||||||||||||||||||||||
| Financing | (150) | — | (146) | — | (113) | — | |||||||||||||||||||||||||||||||||||||||||||||||
| Royalty fee | (113) | — | (114) | — | (117) | — | |||||||||||||||||||||||||||||||||||||||||||||||
Other segment items(2)(3) | (1,719) | (5) | (1,712) | (7) | (1,572) | (14) | |||||||||||||||||||||||||||||||||||||||||||||||
| Segment Adjusted EBITDA | 868 | 91 | 959 | 848 | 102 | 950 | 883 | 130 | 1,013 | ||||||||||||||||||||||||||||||||||||||||||||
Corporate and other(1)(3) | (208) | (214) | (252) | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Interest expense, net | (169) | (162) | (145) | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Depreciation and amortization | (149) | (146) | (135) | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Share-based compensation expense | (38) | (33) | (31) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Amortization of cloud computing software implementation costs(3) | (6) | (3) | — | ||||||||||||||||||||||||||||||||||||||||||||||||||
Certain items(3) | (689) | (85) | (50) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Provision for income taxes | (8) | (89) | (146) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Net (loss) income attributable to common stockholders | $ | (308) | $ | 218 | $ | 254 | |||||||||||||||||||||||||||||||||||||||||||||||
(1)Corporate and Other consists of results that are not allocable to our segments, including company-wide general and administrative expenses, and transaction and integration costs. In addition, Corporate and Other includes revenues and expenses from Consolidated Property Owners’ Associations. Our CODM does not use this information for operating segment resource allocations.
(2)Other segment items include cost reimbursements, share-based compensation, amortization of cloud computing software implementation costs, and other.
(3)Prior year amounts have been reclassified to conform with our current year presentation.
Depreciation and Amortization
| ($ in millions) | 2025 | 2024 | 2023 | ||||||||||||||
| Vacation Ownership | $ | 106 | $ | 100 | $ | 93 | |||||||||||
| Exchange & Third-Party Management | 24 | 28 | 31 | ||||||||||||||
| Total segment depreciation and amortization | 130 | 128 | 124 | ||||||||||||||
| Corporate and other | 19 | 18 | 11 | ||||||||||||||
| $ | 149 | $ | 146 | $ | 135 | ||||||||||||
Capital Expenditures (including inventory)
| ($ in millions) | 2025 | 2024 | 2023 | ||||||||||||||
| Vacation Ownership | $ | 302 | $ | 237 | $ | 171 | |||||||||||
| Exchange & Third-Party Management | — | 2 | — | ||||||||||||||
| Total segment capital expenditures | 302 | 239 | 171 | ||||||||||||||
| Corporate and other | 4 | 11 | 63 | ||||||||||||||
| $ | 306 | $ | 250 | $ | 234 | ||||||||||||
Revenues Excluding Cost Reimbursements
| ($ in millions) | 2025 | 2024 | 2023 | ||||||||||||||
| United States | $ | 2,855 | $ | 2,797 | $ | 2,722 | |||||||||||
| All other countries | 479 | 481 | 444 | ||||||||||||||
| $ | 3,334 | $ | 3,278 | $ | 3,166 | ||||||||||||
Property and Equipment, net
| ($ in millions) | At December 31, 2025 | At December 31, 2024 | |||||||||
| United States | $ | 870 | $ | 1,033 | |||||||
| All other countries | 80 | 137 | |||||||||
| $ | 950 | $ | 1,170 | ||||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 2, 2026 | Showing above |
| 2024 | Feb 28, 2025 | |
| 2023 | Feb 27, 2024 | |
| 2022 | Feb 27, 2023 | |
| 2021 | Mar 1, 2022 | |
| 2020 | Mar 1, 2021 | |
| 2019 | Mar 2, 2020 | |
| 2018 | Mar 1, 2019 | |
| 2017 | Feb 27, 2018 | |
| 2016 | Feb 25, 2016 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.