Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Mar. 28, 2014 | Apr. 22, 2014 | |
Document And Entity Information [Abstract] | ' | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 28-Mar-14 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q1 | ' |
Trading Symbol | 'VAC | ' |
Entity Registrant Name | 'MARRIOTT VACATIONS WORLDWIDE Corp | ' |
Entity Central Index Key | '0001524358 | ' |
Current Fiscal Year End Date | '--01-02 | ' |
Entity Filer Category | 'Large Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 34,442,172 |
Interim_Consolidated_Statement
Interim Consolidated Statements of Operations (USD $) | 3 Months Ended | |||
In Millions, except Per Share data, unless otherwise specified | Mar. 28, 2014 | Mar. 22, 2013 | ||
REVENUES | ' | ' | ||
Sale of vacation ownership products | $145 | $141 | ||
Resort management and other services | 60 | 59 | ||
Financing | 31 | 33 | ||
Rental | 64 | 63 | ||
Other | 2 | 3 | ||
Cost reimbursements | 100 | 91 | ||
TOTAL REVENUES | 402 | 390 | ||
EXPENSES | ' | ' | ||
Cost of vacation ownership products | 47 | 44 | ||
Marketing and sales | 71 | 74 | ||
Resort management and other services | 42 | 43 | ||
Financing | 5 | 5 | ||
Rental | 57 | 56 | ||
Other | 2 | 3 | ||
General and administrative | 22 | 21 | ||
Litigation settlement | ' | -1 | ||
Organizational and separation related | 1 | 1 | ||
Consumer financing interest | 7 | 8 | ||
Royalty fee | 13 | 13 | ||
Cost reimbursements | 100 | 91 | ||
TOTAL EXPENSES | 367 | 358 | ||
Gains and other income | 1 | 1 | ||
Interest expense | -2 | -3 | ||
Impairment charges on equity investment | -2 | ' | ||
INCOME BEFORE INCOME TAXES | 32 | 30 | ||
Provision for income taxes | -13 | -11 | ||
NET INCOME | $19 | [1] | $19 | [2] |
Basic earnings per share | $0.55 | [1] | $0.53 | [2] |
Shares used in computing basic earnings per share | 34.9 | [1] | 35.2 | [2] |
Diluted earnings per share | $0.54 | [1] | $0.51 | [2] |
Shares used in computing diluted earnings per share | 35.9 | [1] | 36.6 | [2] |
[1] | The computations of diluted earnings per share exclude approximately 291,000 shares of common stock, the maximum number of shares issuable as of March 28, 2014 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. | |||
[2] | The computations of diluted earnings per share exclude approximately 229,000 shares of common stock, the maximum number of shares issuable as of March 22, 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. |
Interim_Consolidated_Statement1
Interim Consolidated Statements of Comprehensive Income (USD $) | 3 Months Ended | |||
In Millions, unless otherwise specified | Mar. 28, 2014 | Mar. 22, 2013 | ||
Statement Of Income And Comprehensive Income [Abstract] | ' | ' | ||
Net income | $19 | [1] | $19 | [2] |
Other comprehensive income (loss), net of tax: | ' | ' | ||
Foreign currency translation adjustments | ' | -1 | ||
Total other comprehensive income (loss), net of tax | ' | -1 | ||
COMPREHENSIVE INCOME | $19 | $18 | ||
[1] | The computations of diluted earnings per share exclude approximately 291,000 shares of common stock, the maximum number of shares issuable as of March 28, 2014 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. | |||
[2] | The computations of diluted earnings per share exclude approximately 229,000 shares of common stock, the maximum number of shares issuable as of March 22, 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. |
Interim_Consolidated_Balance_S
Interim Consolidated Balance Sheets (USD $) | Mar. 28, 2014 | Jan. 03, 2014 |
In Millions, unless otherwise specified | ||
ASSETS | ' | ' |
Cash and cash equivalents | $159 | $200 |
Restricted cash (including $27 and $34 from VIEs, respectively) | 74 | 86 |
Accounts and contracts receivable, net (including $4 and $5 from VIEs, respectively) | 130 | 109 |
Vacation ownership notes receivable, net (including $642 and $719 from VIEs, respectively) | 936 | 970 |
Inventory | 850 | 870 |
Property and equipment | 229 | 254 |
Other | 141 | 143 |
Total Assets | 2,519 | 2,632 |
LIABILITIES AND EQUITY | ' | ' |
Accounts payable | 86 | 129 |
Advance deposits | 53 | 48 |
Accrued liabilities (including $1 and $1 from VIEs, respectively) | 210 | 185 |
Deferred revenue | 16 | 19 |
Payroll and benefits liability | 66 | 82 |
Liability for Marriott Rewards customer loyalty program | 107 | 114 |
Deferred compensation liability | 38 | 37 |
Mandatorily redeemable preferred stock of consolidated subsidiary | 40 | 40 |
Debt (including $593 and $674 from VIEs, respectively) | 597 | 678 |
Other | 57 | 31 |
Deferred taxes | 61 | 60 |
Total Liabilities | 1,331 | 1,423 |
Contingencies and Commitments (Note 8) | ' | ' |
Preferred stock - $.01 par value; 2,000,000 shares authorized; none issued or outstanding | ' | ' |
Common stock - $.01 par value; 100,000,000 shares authorized; 35,827,949 and 35,637,765 shares issued, respectively | ' | ' |
Treasury stock - at cost; 1,239,164 and 505,023 shares, respectively | -63 | -26 |
Additional paid-in capital | 1,127 | 1,130 |
Accumulated other comprehensive income | 23 | 23 |
Retained earnings | 101 | 82 |
Total Equity | 1,188 | 1,209 |
Total Liabilities and Equity | $2,519 | $2,632 |
Interim_Consolidated_Balance_S1
Interim Consolidated Balance Sheets (Parenthetical) (USD $) | Mar. 28, 2014 | Jan. 03, 2014 |
In Millions, except Share data, unless otherwise specified | ||
Restricted cash | $74 | $86 |
Accounts and contracts receivable | 130 | 109 |
Vacation ownership notes receivable | 936 | 970 |
Accrued liabilities | 210 | 185 |
Debt | 597 | 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 | 35,827,949 | 35,637,765 |
Treasury stock, at cost | 1,239,164 | 505,023 |
Variable Interest Entity | ' | ' |
Restricted cash | 27 | 34 |
Accounts and contracts receivable | 4 | 5 |
Vacation ownership notes receivable | 642 | 719 |
Accrued liabilities | 1 | 1 |
Debt | $593 | $674 |
Interim_Consolidated_Statement2
Interim Consolidated Statements of Cash Flows (USD $) | 3 Months Ended | |||
In Millions, unless otherwise specified | Mar. 28, 2014 | Mar. 22, 2013 | ||
OPERATING ACTIVITIES | ' | ' | ||
Net income | $19 | [1] | $19 | [2] |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ' | ' | ||
Depreciation | 4 | 6 | ||
Amortization of debt issuance costs | 1 | 1 | ||
Provision for loan losses | 7 | 9 | ||
Share-based compensation | 2 | 2 | ||
Deferred income taxes | -2 | -1 | ||
Gain on disposal of property and equipment, net | -1 | -1 | ||
Impairment charges on equity investment | 2 | ' | ||
Net change in assets and liabilities: | ' | ' | ||
Accounts and contracts receivable | -25 | -11 | ||
Notes receivable originations | -45 | -44 | ||
Notes receivable collections | 71 | 74 | ||
Inventory | 20 | 10 | ||
Other assets | 2 | -16 | ||
Accounts payable, advance deposits and accrued liabilities | -9 | -36 | ||
Liability for Marriott Rewards customer loyalty program | -7 | -12 | ||
Deferred revenue | -3 | -10 | ||
Payroll and benefit liabilities | -16 | -15 | ||
Deferred compensation liability | 1 | -8 | ||
Other liabilities | 27 | 22 | ||
Net cash provided by (used in) operating activities | 48 | -11 | ||
INVESTING ACTIVITIES | ' | ' | ||
Capital expenditures for property and equipment (excluding inventory) | -1 | -3 | ||
Decrease in restricted cash | 12 | 22 | ||
Dispositions | 22 | 3 | ||
Net cash provided by investing activities | 33 | 22 | ||
FINANCING ACTIVITIES | ' | ' | ||
Borrowings from securitization transactions | ' | 111 | ||
Repayment of debt related to securitization transactions | -81 | -103 | ||
Borrowings on Revolving Corporate Credit Facility | ' | 25 | ||
Repayments on Revolving Corporate Credit Facility | ' | -25 | ||
Purchase of treasury stock | -37 | ' | ||
Proceeds from stock option exercises | ' | 1 | ||
Payment of withholding taxes on vesting of restricted stock units | -4 | -4 | ||
Net cash (used in) provided by financing activities | -122 | 5 | ||
(DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS | -41 | 16 | ||
CASH AND CASH EQUIVALENTS, beginning of period | 200 | 103 | ||
CASH AND CASH EQUIVALENTS, end of period | 159 | 119 | ||
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 | ($1) | ' | ||
[1] | The computations of diluted earnings per share exclude approximately 291,000 shares of common stock, the maximum number of shares issuable as of March 28, 2014 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. | |||
[2] | The computations of diluted earnings per share exclude approximately 229,000 shares of common stock, the maximum number of shares issuable as of March 22, 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. |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 3 Months Ended | ||
Mar. 28, 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 March 28, 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 Operations as our “Statements of Operations,” (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 First Quarter | March 28, 2014 | ||
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. |
Income_Taxes
Income Taxes | 3 Months Ended |
Mar. 28, 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 first quarter of 2014 we increased our Deferred tax liabilities by $1 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 $1 million at both March 28, 2014 and January 3, 2014. | |
We have joined in the Marriott International U.S. Federal tax consolidated filing for periods up to the date of the Spin-Off. The IRS has examined Marriott International’s federal income tax returns, and it has settled all issues related to the timeshare business for the tax years through the Spin-Off. Although we do not anticipate that a significant impact to our unrecognized tax benefit balance will occur during the next fiscal year as a result of audits by other tax jurisdictions, the amount of our liability for unrecognized tax benefits could change as a result of these audits. Pursuant to the Tax Sharing and Indemnification Agreement, Marriott International is liable and shall pay the relevant tax authority for all taxes related to our taxable income prior to the Spin-Off. Our tax years subsequent to the Spin-Off are subject to examination by relevant tax authorities. |
Vacation_Ownership_Notes_Recei
Vacation Ownership Notes Receivable | 3 Months Ended | ||||||||||||
Mar. 28, 2014 | |||||||||||||
Receivables [Abstract] | ' | ||||||||||||
Vacation Ownership Notes Receivable | ' | ||||||||||||
3. VACATION OWNERSHIP NOTES RECEIVABLE | |||||||||||||
The following table shows the composition of our vacation ownership notes receivable balances, net of reserves: | |||||||||||||
($ in millions) | March 28, | January 3, | |||||||||||
2014 | 2014 | ||||||||||||
Vacation ownership notes receivable — securitized | $ | 642 | $ | 719 | |||||||||
Vacation ownership notes receivable — non-securitized | |||||||||||||
Eligible for securitization (1) | 136 | 73 | |||||||||||
Not eligible for securitization (1) | 158 | 178 | |||||||||||
Subtotal | 294 | 251 | |||||||||||
Total vacation ownership notes receivable | $ | 936 | $ | 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 | Securitized | Total | ||||||||||
Vacation Ownership | Vacation Ownership | ||||||||||||
Notes Receivable | Notes Receivable | ||||||||||||
2014 | $ | 55 | $ | 72 | $ | 127 | |||||||
2015 | 45 | 97 | 142 | ||||||||||
2016 | 37 | 94 | 131 | ||||||||||
2017 | 26 | 91 | 117 | ||||||||||
2018 | 23 | 74 | 97 | ||||||||||
Thereafter | 108 | 214 | 322 | ||||||||||
Balance at March 28, 2014 | $ | 294 | $ | 642 | $ | 936 | |||||||
Weighted average stated interest rate at March 28, 2014 | 11.90% | 12.90% | 12.50% | ||||||||||
Range of stated interest rates at March 28, 2014 | 0.0% to 19.5% | 4.9% to 18.7% | 0.0% to 19.5% | ||||||||||
We reflect interest income associated with vacation ownership notes receivable on our Statements of Operations in the Financing revenues caption. The following table summarizes interest income associated with vacation ownership notes receivable: | |||||||||||||
($ in millions) | Twelve Weeks Ended | ||||||||||||
March 28, | March 22, | ||||||||||||
2014 | 2013 | ||||||||||||
Interest income associated with vacation ownership notes receivable — securitized | $ | 22 | $ | 24 | |||||||||
Interest income associated with vacation ownership notes receivable — non-securitized | 7 | 8 | |||||||||||
Total interest income associated with vacation ownership notes receivable | $ | 29 | $ | 32 | |||||||||
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 twelve weeks ended March 28, 2014: | |||||||||||||
($ in millions) | Non-Securitized | Securitized | Total | ||||||||||
Vacation Ownership | Vacation Ownership | ||||||||||||
Notes Receivable | Notes Receivable | ||||||||||||
Reserve | Reserve | ||||||||||||
Balance at January 3, 2014 | $ | 82 | $ | 52 | $ | 134 | |||||||
Provision for loan losses | 3 | 4 | 7 | ||||||||||
Clean-up calls (1) | 2 | (2 | ) | — | |||||||||
Write-offs | (9 | ) | — | (9 | ) | ||||||||
Defaulted vacation ownership notes receivable repurchase activity (2) | 7 | (7 | ) | — | |||||||||
Balance at March 28, 2014 | $ | 85 | $ | 47 | $ | 132 | |||||||
(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 of the due date, we suspend accrual of interest only on those loans that are over 90 days past due. We consider loans over 150 days past due to be in default. We apply payments we receive for vacation ownership notes receivable on non-accrual status first to interest, then to principal and any remainder to fees. We resume accruing interest when vacation ownership notes receivable are less than 90 days past due. We do not accept payments for vacation ownership notes receivable during the foreclosure process unless the amount is sufficient to pay all past due principal, interest, fees and penalties owed and fully reinstate the note. We write off uncollectible vacation ownership notes receivable against the reserve once we receive title of the vacation ownership products through the foreclosure or deed-in-lieu process or, in Europe or Asia Pacific, when revocation is complete. For both non-securitized and securitized vacation ownership notes receivable, we estimated average remaining default rates of 7.01 percent and 7.13 percent as of March 28, 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 $5 million as of both March 28, 2014 and January 3, 2014. | |||||||||||||
The following table shows our recorded investment in non-accrual vacation ownership notes receivable, which are vacation ownership notes receivable that are 90 days or more past due: | |||||||||||||
($ in millions) | Non-Securitized | Securitized | Total | ||||||||||
Vacation Ownership | Vacation Ownership | ||||||||||||
Notes Receivable | Notes Receivable | ||||||||||||
Investment in vacation ownership notes receivable on non-accrual status at March 28, 2014 | $ | 66 | $ | 10 | $ | 76 | |||||||
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 twelve weeks ended March 28, 2014 | $ | 68 | $ | 9 | $ | 77 | |||||||
Average investment in vacation ownership notes receivable on non-accrual status during the twelve weeks ended March 22, 2013 | $ | 74 | $ | 10 | $ | 84 | |||||||
The following table shows the aging of the recorded investment in principal, before reserves, in vacation ownership notes receivable as of March 28, 2014: | |||||||||||||
($ in millions) | Non-Securitized | Securitized | Total | ||||||||||
Vacation Ownership | Vacation Ownership | ||||||||||||
Notes Receivable | Notes Receivable | ||||||||||||
31 – 90 days past due | $ | 13 | $ | 17 | $ | 30 | |||||||
91 – 150 days past due | 6 | 8 | 14 | ||||||||||
Greater than 150 days past due | 60 | 2 | 62 | ||||||||||
Total past due | 79 | 27 | 106 | ||||||||||
Current | 300 | 662 | 962 | ||||||||||
Total vacation ownership notes receivable | $ | 379 | $ | 689 | $ | 1,068 | |||||||
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 | Securitized | Total | ||||||||||
Vacation Ownership | Vacation Ownership | ||||||||||||
Notes Receivable | Notes Receivable | ||||||||||||
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
Financial Instruments | 3 Months Ended | ||||||||||||||||
Mar. 28, 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 March 28, 2014 | At January 3, 2014 | ||||||||||||||||
($ in millions) | Carrying | Fair | Carrying | Fair | |||||||||||||
Amount | Value (1) | Amount | Value (1) | ||||||||||||||
Vacation ownership notes receivable — securitized | $ | 642 | $ | 772 | $ | 719 | $ | 865 | |||||||||
Vacation ownership notes receivable — non-securitized | 294 | 326 | 251 | 267 | |||||||||||||
Total financial assets | $ | 936 | $ | 1,098 | $ | 970 | $ | 1,132 | |||||||||
Non-recourse debt associated with vacation ownership notes receivable securitizations | $ | (593 | ) | $ | (611 | ) | $ | (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 | (107 | ) | (103 | ) | (114 | ) | (110 | ) | |||||||||
Other liabilities | (6 | ) | (6 | ) | (6 | ) | (6 | ) | |||||||||
Total financial liabilities | $ | (750 | ) | $ | (768 | ) | $ | (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 March 28, 2014 | At January 3, 2014 | ||||||||||||||||
($ in millions) | Carrying | Fair | Carrying | Fair | |||||||||||||
Amount | Value | Amount | Value | ||||||||||||||
Vacation ownership notes receivable — eligible for securitization | $ | 136 | $ | 168 | $ | 73 | $ | 89 | |||||||||
Vacation ownership notes receivable — not eligible for securitization | 158 | 158 | 178 | 178 | |||||||||||||
Total vacation ownership notes receivable — non-securitized | $ | 294 | $ | 326 | $ | 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
Dispositions | 3 Months Ended |
Mar. 28, 2014 | |
Discontinued Operations And Disposal Groups [Abstract] | ' |
Dispositions | ' |
5. DISPOSITIONS | |
During the first quarter of 2014, we disposed of a golf course and adjacent undeveloped land in Orlando, Florida for $24 million in cash. 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 of approximately $2 million over the period during which we will operate the golf course, of which $1 million is included in the Gains and other income line on the Statement of Operations for the twelve weeks ended March 28, 2014. |
Earnings_Per_Share
Earnings Per Share | 3 Months Ended | ||||||||
Mar. 28, 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 | |||||||||
(in millions, except per share amounts) | March 28, | March 22, | |||||||
2014 (1) | 2013 (2) | ||||||||
Computation of Basic Earnings Per Share | |||||||||
Net income | $ | 19 | $ | 19 | |||||
Weighted average shares outstanding | 34.9 | 35.2 | |||||||
Basic earnings per share | $ | 0.55 | $ | 0.53 | |||||
Computation of Diluted Earnings Per Share | |||||||||
Net income | $ | 19 | $ | 19 | |||||
Weighted average shares outstanding | 34.9 | 35.2 | |||||||
Effect of dilutive securities | |||||||||
Employee stock options and SARs | 0.6 | 0.8 | |||||||
Restricted stock units | 0.4 | 0.6 | |||||||
Shares for diluted earnings per share | 35.9 | 36.6 | |||||||
Diluted earnings per share | $ | 0.54 | $ | 0.51 | |||||
(1) | The computations of diluted earnings per share exclude approximately 291,000 shares of common stock, the maximum number of shares issuable as of March 28, 2014 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. | ||||||||
(2) | The computations of diluted earnings per share exclude approximately 229,000 shares of common stock, the maximum number of shares issuable as of March 22, 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. | ||||||||
In accordance with the applicable accounting guidance for calculating earnings per share, for the twelve week period ended March 28, 2014, we excluded 57,906 shares underlying stock appreciation rights (“SARs”) that may be settled in shares of common stock, with an exercise price of $52.09, from our calculation of diluted earnings per share because this exercise price was greater than the average market price for the applicable period. | |||||||||
For the twelve week period ended March 22, 2013, we have not excluded any shares underlying stock options or SARs that may be settled in shares of common stock from our calculation of diluted earnings per share as no exercise prices were greater than the average market prices for the applicable period. | |||||||||
Inventory
Inventory | 3 Months Ended | ||||||||
Mar. 28, 2014 | |||||||||
Inventory Disclosure [Abstract] | ' | ||||||||
Inventory | ' | ||||||||
7. INVENTORY | |||||||||
The following table shows the composition of our inventory balances: | |||||||||
($ in millions) | At March 28, | At January 3, | |||||||
2014 | 2014 | ||||||||
Finished goods (1) | $ | 379 | $ | 369 | |||||
Work-in-progress | 124 | 151 | |||||||
Land and infrastructure (2) | 341 | 344 | |||||||
Real estate inventory | 844 | 864 | |||||||
Operating supplies and retail inventory | 6 | 6 | |||||||
$ | 850 | $ | 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 sales centers 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
Contingencies and Commitments | 3 Months Ended | ||||||||
Mar. 28, 2014 | |||||||||
Commitments And Contingencies Disclosure [Abstract] | ' | ||||||||
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 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 | Liability for Expected | |||||||
Amount of Future Fundings | Future Fundings | ||||||||
At March 28, 2014 | At March 28, 2014 | ||||||||
Segment | |||||||||
Asia Pacific | $ | 11 | $ | — | |||||
North America | 3 | — | |||||||
Total guarantees where we are the primary obligor | $ | 14 | $ | — | |||||
We included our liability of less than $1 million for expected future fundings for guarantees on our Balance Sheet at March 28, 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 March 28, 2014, we had the following commitments outstanding: | |||||||||
• | We have various contracts for the use of information technology hardware and software that we use in the normal course of business. Our commitments under these contracts were $42 million, of which we expect $9 million, $13 million, $7 million, $5 million, $2 million and $6 million will be paid in 2014, 2015, 2016, 2017, 2018 and thereafter, respectively. | ||||||||
• | Commitments to subsidize vacation ownership associations were $5 million, which we expect will be paid in 2014. | ||||||||
Surety bonds issued as of March 28, 2014 totaled $81 million, the majority of which were requested by federal, state or local governments related to our operations. | |||||||||
Prior to the Spin-Off, Marriott International also guaranteed our performance using letters of credit under certain agreements necessary to operate our Europe segment. Following the Spin-Off, Marriott International continues to hold less than $1 million of standby letters of credit related to these guarantees. If Marriott International is required to fund any draws under these letters of credit it would seek recourse from us. | |||||||||
Additionally, as of March 28, 2014, we had $3 million of letters of credit outstanding under our $200 million revolving credit facility (the “Revolving Corporate Credit Facility”). | |||||||||
Loss Contingencies | |||||||||
In 2012, we agreed to settle two lawsuits in which certain of our subsidiaries were defendants. The plaintiffs in the lawsuits, residential unit owners at The Ritz-Carlton Club and Residences, San Francisco (the “RCC San Francisco”), a project within our North America segment, questioned the adequacy of disclosures made prior to 2008, when our business was part of Marriott International, regarding bonds issued for that project under California’s Mello-Roos Community Facilities Act of 1982 (the “Mello-Roos Act”) and their payment obligations with respect to such bonds. In 2013, we agreed to settle a third lawsuit in which another residential unit owner at the RCC San Francisco had asserted similar claims. As a result of these settlements, in 2013 we reversed $1 million of the $41 million previously recognized expense recorded in 2012 in connection with these matters. An additional lawsuit was filed against us in June 2013 primarily related to disclosure provided to a purchaser of a residential unit at the RCC San Francisco. We dispute the material allegations in the complaint and intend to defend against this action vigorously. Given the early stages of the action and the inherent uncertainties of litigation, we cannot estimate a range of the potential liability, if any, at this time. | |||||||||
On December 21, 2012, Jon Benner, an owner of fractional interests in the RCC San Francisco, filed suit in Superior Court for the State of California, County of San Francisco against us and certain of our subsidiaries on behalf of a putative class consisting of all owners of fractional interests at the RCC San Francisco who allegedly did not receive proper notice of their payment obligations under the Mello-Roos Act. The plaintiff alleges that the disclosures made about bonds issued for the project under this Act and the payment obligations of fractional interest purchasers with respect to such bonds were inadequate, and this and other alleged statutory violations constitute intentional and negligent misrepresentation, fraud and fraudulent concealment. The relief sought includes damages in an unspecified amount, rescission of the purchases, restitution and disgorgement of profits. Thomas Wanless and Matthew Jenner, owners of another fractional interest 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. We dispute the material allegations in these complaints and intend to defend against these actions vigorously. Given the early stages of these actions and the inherent uncertainties of litigation, we cannot estimate a range of the potential liability, if any, at this time. | |||||||||
On December 11, 2012, Steven B. Hoyt and Bradley A. Hoyt, purchasers of fractional interests in two of The Ritz-Carlton Destination Club projects, filed suit in the United States District Court for the District of Minnesota against us, certain of our subsidiaries and 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 as of April 25, 2014 has taken no action to affirm or reverse that decision. Given the inherent uncertainties of litigation, we cannot estimate a range of the potential liability, if any, at this time. | |||||||||
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 subsequently agreed to attempt to settle the litigation through mediation. We dispute the material allegations in the amended complaint and intend to defend against this action vigorously if the mediation does not result in a settlement. Given the early stages of the action and the inherent uncertainties of litigation, we cannot estimate a range of the potential liability, if any, at this time. Additionally, owners of two fractional interests have since agreed to release their claims in this action in connection with the Kapalua Bay Settlement described above. | |||||||||
On June 28, 2013, owners of 35 residences and lots at The Abaco Club on Winding Bay (“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 of up to five months after we entered into a non-binding letter of intent to sell the golf course, spa and clubhouse and related facilities and certain developed and undeveloped lots at The Abaco Club to an entity to be comprised of certain members of The Abaco Club, including certain of the plaintiffs, and others. Although we cannot assure that the sale will occur, if we complete a sale on terms contemplated by the letter of intent, 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 points-based product. The plaintiff alleges that the introduction of our points-based ownership product 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. The complaint was served on April 10, 2014 and our response is due April 30, 2014. We dispute the material allegations in this complaint and intend to defend against this action vigorously. Given the early stages of the action and the inherent uncertainties of litigation, we cannot estimate a range of the potential liability, if any, at this time. | |||||||||
Other | |||||||||
We estimate the cash outflow associated with completing the phases of our existing portfolio of vacation ownership projects currently under development will be approximately $39 million, of which $18 million is included within liabilities on our Balance Sheet at March 28, 2014. This estimate is based on our current development plans, which remain subject to change, and we expect the phases currently under development will be completed by 2017. |
Debt
Debt | 3 Months Ended | ||||||||||||
Mar. 28, 2014 | |||||||||||||
Debt Disclosure [Abstract] | ' | ||||||||||||
Debt | ' | ||||||||||||
9. DEBT | |||||||||||||
The following table provides detail on our debt balances: | |||||||||||||
($ in millions) | At March 28, | At January 3, | |||||||||||
2014 | 2014 | ||||||||||||
Vacation ownership notes receivable securitizations, interest rates ranging from 2.2% to 7.2% (weighted average interest rate of 3.4%) (1) | $ | 593 | $ | 674 | |||||||||
Other | 4 | 4 | |||||||||||
$ | 597 | $ | 678 | ||||||||||
(1) | Interest rates are as of March 28, 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. The Warehouse Credit Facility currently terminates on September 5, 2015 and if not renewed, any amounts outstanding thereunder would become due and payable 13 months after termination, at which time all principal and interest collected with respect to the vacation ownership notes receivable held in the Warehouse Credit Facility would be redirected to the lenders to pay down the outstanding debt under the facility. We generally expect to securitize our vacation ownership notes receivable, including any vacation ownership notes receivable held in the Warehouse Credit Facility, in the ABS market once a year. | |||||||||||||
Although no cash borrowings were outstanding as of March 28, 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 | Other | Total | ||||||||||
Debt Principal Payments Year | Notes Receivable | Debt | |||||||||||
Securitizations (1) | |||||||||||||
2014 | $ | 75 | $ | — | $ | 75 | |||||||
2015 | 99 | — | 99 | ||||||||||
2016 | 95 | — | 95 | ||||||||||
2017 | 70 | — | 70 | ||||||||||
2018 | 55 | — | 55 | ||||||||||
Thereafter | 199 | 4 | 203 | ||||||||||
Balance at March 28, 2014 | $ | 593 | $ | 4 | $ | 597 | |||||||
(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 $6 million in the twelve weeks ended March 28, 2014 and $10 million in the twelve weeks ended March 22, 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 (related to the interests we retained) to accelerate the principal payments to investors based on the subordination of the different tranches until the performance trigger is cured. During the twelve weeks ended March 28, 2014, and as of March 28, 2014, no pools failed to perform within the established parameters. As of March 28, 2014, we had 6 securitized vacation ownership notes receivable pools outstanding. |
Mandatorily_Redeemable_Preferr
Mandatorily Redeemable Preferred Stock of Consolidated Subsidiary | 3 Months Ended |
Mar. 28, 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 March 28, 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
Shareholders' Equity | 3 Months Ended | ||||||||||||||||||||
Mar. 28, 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 March 28, 2014, there were 35,827,949 shares of Marriott Vacations Worldwide common stock issued, of which 34,588,785 shares were outstanding and 1,239,164 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 $.01 per share, none of which were issued or outstanding as of March 28, 2014 or January 3, 2014. | |||||||||||||||||||||
The following table details changes in shareholders’ equity during the twelve weeks ended March 28, 2014: | |||||||||||||||||||||
($ in millions) | Treasury | Additional | Accumulated | Retained | Total | ||||||||||||||||
Stock | Paid-In | Other | Earnings | Equity | |||||||||||||||||
Capital | Comprehensive | ||||||||||||||||||||
Income | |||||||||||||||||||||
Balance at January 3, 2014 | $ | (26 | ) | $ | 1,130 | $ | 23 | $ | 82 | $ | 1,209 | ||||||||||
Net income | — | — | — | 19 | 19 | ||||||||||||||||
Amounts related to share-based compensation | — | (2 | ) | — | — | (2 | ) | ||||||||||||||
Adjustment to reclassification of Marriott International investment to Additional paid-in capital(1) | — | (1 | ) | — | — | (1 | ) | ||||||||||||||
Repurchase of common stock | (37 | ) | — | — | — | (37 | ) | ||||||||||||||
Balance at March 28, 2014 | $ | (63 | ) | $ | 1,127 | $ | 23 | $ | 101 | $ | 1,188 | ||||||||||
(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 Program | |||||||||||||||||||||
On October 8, 2013, our Board of Directors authorized a share repurchase program under which we may purchase up to 3,500,000 shares of our common stock prior to March 28, 2015. The specific timing, amount and other terms of the repurchases will depend on market conditions, corporate and regulatory requirements and other factors. Acquired shares of our common stock are held as treasury shares carried at cost in our Financial Statements. In connection with the repurchase program, we are authorized to adopt one or more plans pursuant to the provisions of Rule 10b5-1 under the Securities Exchange Act of 1934, as amended. | |||||||||||||||||||||
The following table summarizes stock repurchase activity under our current stock repurchase program for the twelve weeks ended March 28, 2014: | |||||||||||||||||||||
($ in millions, except per share amounts) | Number of | Cost of | Average | ||||||||||||||||||
Shares | Shares | Price Paid | |||||||||||||||||||
Repurchased | Repurchased | per Share | |||||||||||||||||||
As of January 3, 2014 | 505,023 | $ | 26 | $ | 50.76 | ||||||||||||||||
For the twelve weeks ended March 28, 2014 | 734,141 | 37 | 50.99 | ||||||||||||||||||
As of March 28, 2014 | 1,239,164 | $ | 63 | $ | 50.9 | ||||||||||||||||
As of March 28, 2014, approximately 2.3 million shares remained available for repurchase under the authorization approved by our Board of Directors. |
ShareBased_Compensation
Share-Based Compensation | 3 Months Ended | ||||
Mar. 28, 2014 | |||||
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ' | ||||
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 March 28, 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 Operations over the vesting period during which the employees provide service in exchange for the award; with respect to non-employee directors, we recognize this expense on the grant date. For share-based arrangements with performance vesting conditions, we recognize compensation expense once it is probable that the corresponding performance condition will be achieved. | |||||
We recorded share-based compensation expense related to award grants to our officers, directors and employees of $2 million for each of the twelve weeks ended March 28, 2014 and March 22, 2013. Our deferred compensation liability related to unvested awards held by our employees totaled $22 million and $13 million at March 28, 2014 and January 3, 2014, respectively. | |||||
Restricted Stock Units (“RSUs”) | |||||
We granted 148,144 RSUs, exclusive of RSUs with performance vesting conditions, to our employees during the twelve weeks ended March 28, 2014. RSUs issued to our employees generally vest over four years in annual installments commencing one year after the date of grant. RSUs granted in the twelve weeks ended March 28, 2014 had a weighted average grant-date fair value of $52.09. | |||||
During the twelve weeks ended March 28, 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. For the RSUs with performance-based vesting criteria issued during the twelve weeks ended March 28, 2014, the maximum amount of RSUs that may vest under the performance-based RSUs is approximately 62,000. | |||||
Stock Appreciation Rights (“SARs”) | |||||
We granted 57,906 SARs to members of management during the twelve weeks ended March 28, 2014. These SARs had a weighted average grant-date fair value of $27.98 and a weighted average 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 in the twelve weeks ended March 28, 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 twelve weeks ended March 28, 2014: | |||||
Expected volatility | 55.1 | % | |||
Dividend yield | 0 | % | |||
Risk-free rate | 1.84 | % | |||
Expected term (in years) | 6.25 |
Variable_Interest_Entities
Variable Interest Entities | 3 Months Ended | ||||||||||||
Mar. 28, 2014 | |||||||||||||
Text Block [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 March 28, 2014: | |||||||||||||
($ in millions) | Vacation Ownership | Warehouse | Total | ||||||||||
Notes Receivable | Credit | ||||||||||||
Securitizations | Facility | ||||||||||||
Consolidated Assets: | |||||||||||||
Vacation ownership notes receivable, net of reserves | $ | 642 | $ | — | $ | 642 | |||||||
Interest receivable | 4 | — | 4 | ||||||||||
Restricted cash | 27 | — | 27 | ||||||||||
Total | $ | 673 | $ | — | $ | 673 | |||||||
Consolidated Liabilities: | |||||||||||||
Interest payable | $ | 1 | $ | — | $ | 1 | |||||||
Debt | 593 | — | 593 | ||||||||||
Total | $ | 594 | $ | — | $ | 594 | |||||||
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 March 28, 2014: | |||||||||||||
($ in millions) | Vacation Ownership | Warehouse | Total | ||||||||||
Notes Receivable | Credit | ||||||||||||
Securitizations | Facility | ||||||||||||
Interest income | $ | 22 | $ | — | $ | 22 | |||||||
Interest expense to investors | $ | 5 | $ | — | $ | 5 | |||||||
Debt issuance cost amortization | $ | 1 | $ | — | $ | 1 | |||||||
The following table shows cash flows between us and the vacation ownership notes receivable securitization variable interest entities during the twelve weeks ended March 28, 2014 and March 22, 2013: | |||||||||||||
Twelve Weeks Ended | |||||||||||||
($ in millions) | March 28, | March 22, | |||||||||||
2014 | 2013 | ||||||||||||
Cash inflows: | |||||||||||||
Principal receipts | $ | 46 | $ | 43 | |||||||||
Interest receipts | 22 | 23 | |||||||||||
Reserve release | 2 | — | |||||||||||
Total | 70 | 66 | |||||||||||
Cash outflows: | |||||||||||||
Principal to investors | (47 | ) | (43 | ) | |||||||||
Voluntary repurchases of defaulted vacation ownership notes receivable | (7 | ) | (7 | ) | |||||||||
Voluntary clean-up call | (27 | ) | (51 | ) | |||||||||
Interest to investors | (6 | ) | (7 | ) | |||||||||
Total | (87 | ) | (108 | ) | |||||||||
Net Cash Flows | $ | (17 | ) | $ | (42 | ) | |||||||
The following table shows cash flows between us and the Warehouse Credit Facility variable interest entity during the twelve weeks ended March 28, 2014 and March 22, 2013: | |||||||||||||
Twelve Weeks Ended | |||||||||||||
($ in millions) | March 28, | March 22, | |||||||||||
2014 | 2013 | ||||||||||||
Cash inflows: | |||||||||||||
Net proceeds from vacation ownership notes receivable securitization | $ | — | $ | 109 | |||||||||
Principal receipts | — | 4 | |||||||||||
Interest receipts | — | 1 | |||||||||||
Total | — | 114 | |||||||||||
Cash outflows: | |||||||||||||
Principal to investors | — | (2 | ) | ||||||||||
Total | — | (2 | ) | ||||||||||
Net Cash Flows | $ | — | $ | 112 | |||||||||
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. During the first quarter of 2014, we recorded a $2 million charge to increase our accrual for remaining costs expected to be incurred relating to our interests in the Joint Venture. At March 28, 2014, we have an accrual of $10 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_
Organizational and Separation Related Charges | 3 Months Ended |
Mar. 28, 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 in 2014. Organizational and separation related charges as reflected on our Statements of Operations, were $1 million for both the twelve weeks ended March 28, 2014 and March 22, 2013. In addition, less than $1 million and $1 million of additional separation related charges were capitalized to Property and equipment on our Balance Sheets during the twelve weeks ended March 28, 2014 and March 22, 2013, respectively. |
Business_Segments
Business Segments | 3 Months Ended | ||||||||
Mar. 28, 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 | |||||||||
($ in millions) | March 28, | March 22, | |||||||
2014 | 2013 | ||||||||
North America | $ | 366 | $ | 353 | |||||
Europe | 23 | 22 | |||||||
Asia Pacific | 13 | 15 | |||||||
Total segment revenues | 402 | 390 | |||||||
Corporate and other | — | — | |||||||
$ | 402 | $ | 390 | ||||||
Net Income | |||||||||
Twelve Weeks Ended | |||||||||
($ in millions) | March 28, | March 22, | |||||||
2014 | 2013 | ||||||||
North America | $ | 80 | $ | 78 | |||||
Europe | 1 | 1 | |||||||
Asia Pacific | 1 | 3 | |||||||
Total segment financial results | 82 | 82 | |||||||
Corporate and other | (50 | ) | (52 | ) | |||||
Provision for income taxes | (13 | ) | (11 | ) | |||||
$ | 19 | $ | 19 | ||||||
Assets | |||||||||
($ in millions) | At March 28, | At January 3, | |||||||
2014 | 2014 | ||||||||
North America | $ | 2,082 | $ | 2,125 | |||||
Europe | 103 | 103 | |||||||
Asia Pacific | 80 | 84 | |||||||
Total segment assets | 2,265 | 2,312 | |||||||
Corporate and other | 254 | 320 | |||||||
$ | 2,519 | $ | 2,632 | ||||||
Subsequent_Event
Subsequent Event | 3 Months Ended |
Mar. 28, 2014 | |
Subsequent Events [Abstract] | ' |
Subsequent Event | ' |
16. SUBSEQUENT EVENT | |
Subsequent to March 28, 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 cash. The transaction contemplated by the purchase and sale agreement is subject to a number of closing conditions, and we cannot assure that the transaction will be completed in a timely manner, or at all. If the transaction is completed as contemplated in 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. |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 3 Months Ended | ||
Mar. 28, 2014 | |||
Accounting Policies [Abstract] | ' | ||
Business Operations | ' | ||
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 March 28, 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. | ' | ||
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 | ' | ||
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 Operations as our “Statements of Operations,” (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 First Quarter | March 28, 2014 | ||
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 | ' | ||
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. | |||
Vacation Ownership Notes Receivable Reserve Policy | ' | ||
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. | |||
Loan Delinquency Policy | ' | ||
Although we consider loans to owners to be past due if we do not receive payment within 30 days of the due date, we suspend accrual of interest only on those loans that are over 90 days past due. We consider loans over 150 days past due to be in default. We apply payments we receive for vacation ownership notes receivable on non-accrual status first to interest, then to principal and any remainder to fees. We resume accruing interest when vacation ownership notes receivable are less than 90 days past due. We do not accept payments for vacation ownership notes receivable during the foreclosure process unless the amount is sufficient to pay all past due principal, interest, fees and penalties owed and fully reinstate the note. We write off uncollectible vacation ownership notes receivable against the reserve once we receive title of the vacation ownership products through the foreclosure or deed-in-lieu process or, in Europe or Asia Pacific, when revocation is complete. For both non-securitized and securitized vacation ownership notes receivable, we estimated average remaining default rates of 7.01 percent and 7.13 percent as of March 28, 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 $5 million as of both March 28, 2014 and January 3, 2014. |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Tables) | 3 Months Ended | ||
Mar. 28, 2014 | |||
Accounting Policies [Abstract] | ' | ||
Each Reference to Particular Year in These Financial Statements Means Fiscal Year Ended on Date Shown | ' | ||
Unless otherwise specified, each reference to a particular quarter in these Financial Statements means the twelve weeks ended on the date shown in the following table, rather than the corresponding calendar quarter: | |||
Fiscal Year | Quarter-End Date | ||
2014 First Quarter | March 28, 2014 | ||
2013 First Quarter | March 22, 2013 |
Vacation_Ownership_Notes_Recei1
Vacation Ownership Notes Receivable (Tables) | 3 Months Ended | ||||||||||||
Mar. 28, 2014 | |||||||||||||
Composition of Vacation Ownership Notes Receivable Balances, Net of Reserves | ' | ||||||||||||
The following table shows the composition of our vacation ownership notes receivable balances, net of reserves: | |||||||||||||
($ in millions) | March 28, | January 3, | |||||||||||
2014 | 2014 | ||||||||||||
Vacation ownership notes receivable — securitized | $ | 642 | $ | 719 | |||||||||
Vacation ownership notes receivable — non-securitized | |||||||||||||
Eligible for securitization (1) | 136 | 73 | |||||||||||
Not eligible for securitization (1) | 158 | 178 | |||||||||||
Subtotal | 294 | 251 | |||||||||||
Total vacation ownership notes receivable | $ | 936 | $ | 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 | Securitized | Total | ||||||||||
Vacation Ownership | Vacation Ownership | ||||||||||||
Notes Receivable | Notes Receivable | ||||||||||||
2014 | $ | 55 | $ | 72 | $ | 127 | |||||||
2015 | 45 | 97 | 142 | ||||||||||
2016 | 37 | 94 | 131 | ||||||||||
2017 | 26 | 91 | 117 | ||||||||||
2018 | 23 | 74 | 97 | ||||||||||
Thereafter | 108 | 214 | 322 | ||||||||||
Balance at March 28, 2014 | $ | 294 | $ | 642 | $ | 936 | |||||||
Weighted average stated interest rate at March 28, 2014 | 11.90% | 12.90% | 12.50% | ||||||||||
Range of stated interest rates at March 28, 2014 | 0.0% to 19.5% | 4.9% to 18.7% | 0.0% to 19.5% | ||||||||||
Interest Income Associated with Vacation Ownership Notes Receivable | ' | ||||||||||||
The following table summarizes interest income associated with vacation ownership notes receivable: | |||||||||||||
($ in millions) | Twelve Weeks Ended | ||||||||||||
March 28, | March 22, | ||||||||||||
2014 | 2013 | ||||||||||||
Interest income associated with vacation ownership notes receivable — securitized | $ | 22 | $ | 24 | |||||||||
Interest income associated with vacation ownership notes receivable — non-securitized | 7 | 8 | |||||||||||
Total interest income associated with vacation ownership notes receivable | $ | 29 | $ | 32 | |||||||||
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 | Securitized | Total | ||||||||||
Vacation Ownership | Vacation Ownership | ||||||||||||
Notes Receivable | Notes Receivable | ||||||||||||
Investment in vacation ownership notes receivable on non-accrual status at March 28, 2014 | $ | 66 | $ | 10 | $ | 76 | |||||||
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 twelve weeks ended March 28, 2014 | $ | 68 | $ | 9 | $ | 77 | |||||||
Average investment in vacation ownership notes receivable on non-accrual status during the twelve weeks ended March 22, 2013 | $ | 74 | $ | 10 | $ | 84 | |||||||
Aging of Recorded Investment in Principal, Before Reserves, in Vacation Ownership Notes Receivable | ' | ||||||||||||
The following table shows the aging of the recorded investment in principal, before reserves, in vacation ownership notes receivable as of March 28, 2014: | |||||||||||||
($ in millions) | Non-Securitized | Securitized | Total | ||||||||||
Vacation Ownership | Vacation Ownership | ||||||||||||
Notes Receivable | Notes Receivable | ||||||||||||
31 – 90 days past due | $ | 13 | $ | 17 | $ | 30 | |||||||
91 – 150 days past due | 6 | 8 | 14 | ||||||||||
Greater than 150 days past due | 60 | 2 | 62 | ||||||||||
Total past due | 79 | 27 | 106 | ||||||||||
Current | 300 | 662 | 962 | ||||||||||
Total vacation ownership notes receivable | $ | 379 | $ | 689 | $ | 1,068 | |||||||
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 | Securitized | Total | ||||||||||
Vacation Ownership | Vacation Ownership | ||||||||||||
Notes Receivable | Notes Receivable | ||||||||||||
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 twelve weeks ended March 28, 2014: | |||||||||||||
($ in millions) | Non-Securitized | Securitized | Total | ||||||||||
Vacation Ownership | Vacation Ownership | ||||||||||||
Notes Receivable | Notes Receivable | ||||||||||||
Reserve | Reserve | ||||||||||||
Balance at January 3, 2014 | $ | 82 | $ | 52 | $ | 134 | |||||||
Provision for loan losses | 3 | 4 | 7 | ||||||||||
Clean-up calls (1) | 2 | (2 | ) | — | |||||||||
Write-offs | (9 | ) | — | (9 | ) | ||||||||
Defaulted vacation ownership notes receivable repurchase activity (2) | 7 | (7 | ) | — | |||||||||
Balance at March 28, 2014 | $ | 85 | $ | 47 | $ | 132 | |||||||
(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
Financial Instruments (Tables) | 3 Months Ended | ||||||||||||||||
Mar. 28, 2014 | |||||||||||||||||
Carrying Values and Estimated Fair Values of Financial Assets and Liabilities | ' | ||||||||||||||||
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 March 28, 2014 | At January 3, 2014 | ||||||||||||||||
($ in millions) | Carrying | Fair | Carrying | Fair | |||||||||||||
Amount | Value (1) | Amount | Value (1) | ||||||||||||||
Vacation ownership notes receivable — securitized | $ | 642 | $ | 772 | $ | 719 | $ | 865 | |||||||||
Vacation ownership notes receivable — non-securitized | 294 | 326 | 251 | 267 | |||||||||||||
Total financial assets | $ | 936 | $ | 1,098 | $ | 970 | $ | 1,132 | |||||||||
Non-recourse debt associated with vacation ownership notes receivable securitizations | $ | (593 | ) | $ | (611 | ) | $ | (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 | (107 | ) | (103 | ) | (114 | ) | (110 | ) | |||||||||
Other liabilities | (6 | ) | (6 | ) | (6 | ) | (6 | ) | |||||||||
Total financial liabilities | $ | (750 | ) | $ | (768 | ) | $ | (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 | ' | ||||||||||||||||
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 March 28, 2014 | At January 3, 2014 | ||||||||||||||||
($ in millions) | Carrying | Fair | Carrying | Fair | |||||||||||||
Amount | Value | Amount | Value | ||||||||||||||
Vacation ownership notes receivable — eligible for securitization | $ | 136 | $ | 168 | $ | 73 | $ | 89 | |||||||||
Vacation ownership notes receivable — not eligible for securitization | 158 | 158 | 178 | 178 | |||||||||||||
Total vacation ownership notes receivable — non-securitized | $ | 294 | $ | 326 | $ | 251 | $ | 267 | |||||||||
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 3 Months Ended | ||||||||
Mar. 28, 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 | |||||||||
(in millions, except per share amounts) | March 28, | March 22, | |||||||
2014 (1) | 2013 (2) | ||||||||
Computation of Basic Earnings Per Share | |||||||||
Net income | $ | 19 | $ | 19 | |||||
Weighted average shares outstanding | 34.9 | 35.2 | |||||||
Basic earnings per share | $ | 0.55 | $ | 0.53 | |||||
Computation of Diluted Earnings Per Share | |||||||||
Net income | $ | 19 | $ | 19 | |||||
Weighted average shares outstanding | 34.9 | 35.2 | |||||||
Effect of dilutive securities | |||||||||
Employee stock options and SARs | 0.6 | 0.8 | |||||||
Restricted stock units | 0.4 | 0.6 | |||||||
Shares for diluted earnings per share | 35.9 | 36.6 | |||||||
Diluted earnings per share | $ | 0.54 | $ | 0.51 | |||||
(1) | The computations of diluted earnings per share exclude approximately 291,000 shares of common stock, the maximum number of shares issuable as of March 28, 2014 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. | ||||||||
(2) | The computations of diluted earnings per share exclude approximately 229,000 shares of common stock, the maximum number of shares issuable as of March 22, 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. |
Inventory_Tables
Inventory (Tables) | 3 Months Ended | ||||||||
Mar. 28, 2014 | |||||||||
Inventory Disclosure [Abstract] | ' | ||||||||
Composition of Inventory | ' | ||||||||
The following table shows the composition of our inventory balances: | |||||||||
($ in millions) | At March 28, | At January 3, | |||||||
2014 | 2014 | ||||||||
Finished goods (1) | $ | 379 | $ | 369 | |||||
Work-in-progress | 124 | 151 | |||||||
Land and infrastructure (2) | 341 | 344 | |||||||
Real estate inventory | 844 | 864 | |||||||
Operating supplies and retail inventory | 6 | 6 | |||||||
$ | 850 | $ | 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 sales centers to be converted into vacation ownership products to be sold in the future. |
Contingencies_and_Commitments_
Contingencies and Commitments (Tables) | 3 Months Ended | ||||||||
Mar. 28, 2014 | |||||||||
Commitments And Contingencies Disclosure [Abstract] | ' | ||||||||
Maximum Potential Amount of Future Fundings for Financing Guarantees and Carrying Amount of Liability for Expected Future Fundings | ' | ||||||||
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 | Liability for Expected | |||||||
Amount of Future Fundings | Future Fundings | ||||||||
At March 28, 2014 | At March 28, 2014 | ||||||||
Segment | |||||||||
Asia Pacific | $ | 11 | $ | — | |||||
North America | 3 | — | |||||||
Total guarantees where we are the primary obligor | $ | 14 | $ | — | |||||
Debt_Tables
Debt (Tables) | 3 Months Ended | ||||||||||||
Mar. 28, 2014 | |||||||||||||
Debt Disclosure [Abstract] | ' | ||||||||||||
Debt Balances | ' | ||||||||||||
The following table provides detail on our debt balances: | |||||||||||||
($ in millions) | At March 28, | At January 3, | |||||||||||
2014 | 2014 | ||||||||||||
Vacation ownership notes receivable securitizations, interest rates ranging from 2.2% to 7.2% (weighted average interest rate of 3.4%) (1) | $ | 593 | $ | 674 | |||||||||
Other | 4 | 4 | |||||||||||
$ | 597 | $ | 678 | ||||||||||
(1) | Interest rates are as of March 28, 2014. | ||||||||||||
Scheduled Future Principal Payments for Debt | ' | ||||||||||||
The following table shows scheduled future principal payments for our debt: | |||||||||||||
($ in millions) | Vacation Ownership | Other | Total | ||||||||||
Debt Principal Payments Year | Notes Receivable | Debt | |||||||||||
Securitizations (1) | |||||||||||||
2014 | $ | 75 | $ | — | $ | 75 | |||||||
2015 | 99 | — | 99 | ||||||||||
2016 | 95 | — | 95 | ||||||||||
2017 | 70 | — | 70 | ||||||||||
2018 | 55 | — | 55 | ||||||||||
Thereafter | 199 | 4 | 203 | ||||||||||
Balance at March 28, 2014 | $ | 593 | $ | 4 | $ | 597 | |||||||
(1) | The debt associated with our vacation ownership notes receivable securitizations is non-recourse to us. |
Shareholders_Equity_Tables
Shareholders' Equity (Tables) | 3 Months Ended | ||||||||||||||||||||
Mar. 28, 2014 | |||||||||||||||||||||
Equity [Abstract] | ' | ||||||||||||||||||||
Changes in Shareholders' Equity | ' | ||||||||||||||||||||
The following table details changes in shareholders’ equity during the twelve weeks ended March 28, 2014: | |||||||||||||||||||||
($ in millions) | Treasury | Additional | Accumulated | Retained | Total | ||||||||||||||||
Stock | Paid-In | Other | Earnings | Equity | |||||||||||||||||
Capital | Comprehensive | ||||||||||||||||||||
Income | |||||||||||||||||||||
Balance at January 3, 2014 | $ | (26 | ) | $ | 1,130 | $ | 23 | $ | 82 | $ | 1,209 | ||||||||||
Net income | — | — | — | 19 | 19 | ||||||||||||||||
Amounts related to share-based compensation | — | (2 | ) | — | — | (2 | ) | ||||||||||||||
Adjustment to reclassification of Marriott International investment to Additional paid-in capital(1) | — | (1 | ) | — | — | (1 | ) | ||||||||||||||
Repurchase of common stock | (37 | ) | — | — | — | (37 | ) | ||||||||||||||
Balance at March 28, 2014 | $ | (63 | ) | $ | 1,127 | $ | 23 | $ | 101 | $ | 1,188 | ||||||||||
(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 stock repurchase activity under our current stock repurchase program for the twelve weeks ended March 28, 2014: | |||||||||||||||||||||
($ in millions, except per share amounts) | Number of | Cost of | Average | ||||||||||||||||||
Shares | Shares | Price Paid | |||||||||||||||||||
Repurchased | Repurchased | per Share | |||||||||||||||||||
As of January 3, 2014 | 505,023 | $ | 26 | $ | 50.76 | ||||||||||||||||
For the twelve weeks ended March 28, 2014 | 734,141 | 37 | 50.99 | ||||||||||||||||||
As of March 28, 2014 | 1,239,164 | $ | 63 | $ | 50.9 | ||||||||||||||||
ShareBased_Compensation_Tables
Share-Based Compensation (Tables) | 3 Months Ended | ||||
Mar. 28, 2014 | |||||
Disclosure Of Compensation Related Costs Sharebased 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 twelve weeks ended March 28, 2014: | |||||
Expected volatility | 55.1 | % | |||
Dividend yield | 0 | % | |||
Risk-free rate | 1.84 | % | |||
Expected term (in years) | 6.25 |
Variable_Interest_Entities_Tab
Variable Interest Entities (Tables) | 3 Months Ended | ||||||||||||
Mar. 28, 2014 | |||||||||||||
Classifications of Consolidated VIE Assets and Liabilities | ' | ||||||||||||
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 March 28, 2014: | |||||||||||||
($ in millions) | Vacation Ownership | Warehouse | Total | ||||||||||
Notes Receivable | Credit | ||||||||||||
Securitizations | Facility | ||||||||||||
Consolidated Assets: | |||||||||||||
Vacation ownership notes receivable, net of reserves | $ | 642 | $ | — | $ | 642 | |||||||
Interest receivable | 4 | — | 4 | ||||||||||
Restricted cash | 27 | — | 27 | ||||||||||
Total | $ | 673 | $ | — | $ | 673 | |||||||
Consolidated Liabilities: | |||||||||||||
Interest payable | $ | 1 | $ | — | $ | 1 | |||||||
Debt | 593 | — | 593 | ||||||||||
Total | $ | 594 | $ | — | $ | 594 | |||||||
Interest Income and Expense Recognized as a Result of our Involvement with Variable Interest Entities | ' | ||||||||||||
The following table shows the interest income and expense recognized as a result of our involvement with these variable interest entities during the twelve weeks ended March 28, 2014: | |||||||||||||
($ in millions) | Vacation Ownership | Warehouse | Total | ||||||||||
Notes Receivable | Credit | ||||||||||||
Securitizations | Facility | ||||||||||||
Interest income | $ | 22 | $ | — | $ | 22 | |||||||
Interest expense to investors | $ | 5 | $ | — | $ | 5 | |||||||
Debt issuance cost amortization | $ | 1 | $ | — | $ | 1 | |||||||
Vacation Ownership Notes Receivable Securitizations | ' | ||||||||||||
Cash Flows Between Company and Variable Interest Entities | ' | ||||||||||||
The following table shows cash flows between us and the vacation ownership notes receivable securitization variable interest entities during the twelve weeks ended March 28, 2014 and March 22, 2013: | |||||||||||||
Twelve Weeks Ended | |||||||||||||
($ in millions) | March 28, | March 22, | |||||||||||
2014 | 2013 | ||||||||||||
Cash inflows: | |||||||||||||
Principal receipts | $ | 46 | $ | 43 | |||||||||
Interest receipts | 22 | 23 | |||||||||||
Reserve release | 2 | — | |||||||||||
Total | 70 | 66 | |||||||||||
Cash outflows: | |||||||||||||
Principal to investors | (47 | ) | (43 | ) | |||||||||
Voluntary repurchases of defaulted vacation ownership notes receivable | (7 | ) | (7 | ) | |||||||||
Voluntary clean-up call | (27 | ) | (51 | ) | |||||||||
Interest to investors | (6 | ) | (7 | ) | |||||||||
Total | (87 | ) | (108 | ) | |||||||||
Net Cash Flows | $ | (17 | ) | $ | (42 | ) | |||||||
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 twelve weeks ended March 28, 2014 and March 22, 2013: | |||||||||||||
Twelve Weeks Ended | |||||||||||||
($ in millions) | March 28, | March 22, | |||||||||||
2014 | 2013 | ||||||||||||
Cash inflows: | |||||||||||||
Net proceeds from vacation ownership notes receivable securitization | $ | — | $ | 109 | |||||||||
Principal receipts | — | 4 | |||||||||||
Interest receipts | — | 1 | |||||||||||
Total | — | 114 | |||||||||||
Cash outflows: | |||||||||||||
Principal to investors | — | (2 | ) | ||||||||||
Total | — | (2 | ) | ||||||||||
Net Cash Flows | $ | — | $ | 112 | |||||||||
Business_Segments_Tables
Business Segments (Tables) | 3 Months Ended | ||||||||
Mar. 28, 2014 | |||||||||
Segment Reporting [Abstract] | ' | ||||||||
Revenues | ' | ||||||||
Revenues | |||||||||
Twelve Weeks Ended | |||||||||
($ in millions) | March 28, | March 22, | |||||||
2014 | 2013 | ||||||||
North America | $ | 366 | $ | 353 | |||||
Europe | 23 | 22 | |||||||
Asia Pacific | 13 | 15 | |||||||
Total segment revenues | 402 | 390 | |||||||
Corporate and other | — | — | |||||||
$ | 402 | $ | 390 | ||||||
Net Income | ' | ||||||||
Net Income | |||||||||
Twelve Weeks Ended | |||||||||
($ in millions) | March 28, | March 22, | |||||||
2014 | 2013 | ||||||||
North America | $ | 80 | $ | 78 | |||||
Europe | 1 | 1 | |||||||
Asia Pacific | 1 | 3 | |||||||
Total segment financial results | 82 | 82 | |||||||
Corporate and other | (50 | ) | (52 | ) | |||||
Provision for income taxes | (13 | ) | (11 | ) | |||||
$ | 19 | $ | 19 | ||||||
Assets | ' | ||||||||
Assets | |||||||||
($ in millions) | At March 28, | At January 3, | |||||||
2014 | 2014 | ||||||||
North America | $ | 2,082 | $ | 2,125 | |||||
Europe | 103 | 103 | |||||||
Asia Pacific | 80 | 84 | |||||||
Total segment assets | 2,265 | 2,312 | |||||||
Corporate and other | 254 | 320 | |||||||
$ | 2,519 | $ | 2,632 | ||||||
Summary_of_Significant_Account3
Summary of Significant Accounting Policies - Additional Information (Detail) | 3 Months Ended |
Mar. 28, 2014 | |
Line | |
Segment | |
Property | |
Significant Accounting Policies [Line Items] | ' |
Number of business segments | 3 |
Number of properties | 62 |
Number of primary sources of revenues generated | 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 | 9 |
Each_Reference_to_Particular_Y
Each Reference to Particular Year in Financial Statements Means Fiscal Year Ended on Date Shown (Detail) (First Quarter) | 3 Months Ended |
Mar. 28, 2014 | |
Fiscal Year 2014 | ' |
Quarterly Financial Information [Line Items] | ' |
Quarter-End Date | 28-Mar-14 |
Fiscal Year 2013 | ' |
Quarterly Financial Information [Line Items] | ' |
Quarter-End Date | 22-Mar-13 |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | 3 Months Ended | |||
In Millions, unless otherwise specified | Mar. 28, 2014 | Mar. 28, 2014 | Mar. 28, 2014 | Jan. 03, 2014 |
Marriott International | Maximum | Maximum | ||
Income Taxes [Line Items] | ' | ' | ' | ' |
Increase/(decrease) in deferred tax liabilities | ' | $1 | ' | ' |
Unrecognized tax benefits that, if recognized, would impact the effective tax rate | ' | ' | $1 | $1 |
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 Internationalbs federal income tax returns, and it has settled all issues related to the timeshare business for the tax years through the Spin-Off. | ' | ' | ' |
Composition_of_Vacation_Owners
Composition of Vacation Ownership Notes Receivable Balances, Net of Reserves (Detail) (USD $) | Mar. 28, 2014 | Jan. 03, 2014 | ||
In Millions, unless otherwise specified | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ||
Vacation ownership notes receivable | $936 | $970 | ||
Securitized Vacation Ownership Notes Receivable | ' | ' | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ||
Vacation ownership notes receivable | 642 | 719 | ||
Eligible for Securitization | ' | ' | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ||
Vacation ownership notes receivable | 136 | [1] | 73 | [1] |
Not Eligible for Securitization | ' | ' | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ||
Vacation ownership notes receivable | 158 | [1] | 178 | [1] |
Non-Securitized Vacation Ownership Notes Receivable | ' | ' | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ||
Vacation ownership notes receivable | $294 | $251 | ||
[1] | Refer to Footnote No. 4, "Financial Instruments," for discussion of eligibility of our vacation ownership notes receivable. |
Future_Principal_Payments_Net_
Future Principal Payments, Net of Reserves, and Interest Rates of Vacation Ownership Notes Receivable (Detail) (USD $) | Mar. 28, 2014 |
In Millions, unless otherwise specified | |
Future Minimum Payments Receivable [Line Items] | ' |
2014 | $127 |
2015 | 142 |
2016 | 131 |
2017 | 117 |
2018 | 97 |
Thereafter | 322 |
Notes receivable | 936 |
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 | 55 |
2015 | 45 |
2016 | 37 |
2017 | 26 |
2018 | 23 |
Thereafter | 108 |
Notes receivable | 294 |
Weighted average stated interest rate | 11.90% |
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 | 72 |
2015 | 97 |
2016 | 94 |
2017 | 91 |
2018 | 74 |
Thereafter | 214 |
Notes receivable | $642 |
Weighted average stated interest rate | 12.90% |
Range of stated interest rates, minimum | 4.90% |
Range of stated interest rates, maximum | 18.70% |
Interest_Income_Associated_Wit
Interest Income Associated With Vacation Ownership Notes Receivable (Detail) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 28, 2014 | Mar. 22, 2013 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Interest income associated with vacation ownership notes receivable | $29 | $32 |
Securitized Vacation Ownership Notes Receivable | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Interest income associated with vacation ownership notes receivable | 22 | 24 |
Non-Securitized Vacation Ownership Notes Receivable | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Interest income associated with vacation ownership notes receivable | $7 | $8 |
Notes_Receivable_Reserves_Deta
Notes Receivable Reserves (Detail) (USD $) | 3 Months Ended | ||
In Millions, unless otherwise specified | Mar. 28, 2014 | Mar. 22, 2013 | |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' | |
Beginning Balance | $134 | ' | |
Provision for loan losses | 7 | 9 | |
Write-offs | -9 | ' | |
Ending Balance | 132 | ' | |
Non-Securitized Vacation Ownership Notes Receivable | ' | ' | |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' | |
Beginning Balance | 82 | ' | |
Provision for loan losses | 3 | ' | |
Clean-up calls | 2 | [1] | ' |
Write-offs | -9 | ' | |
Defaulted vacation ownership notes receivable repurchase activity | 7 | [2] | ' |
Ending Balance | 85 | ' | |
Securitized Vacation Ownership Notes Receivable | ' | ' | |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' | |
Beginning Balance | 52 | ' | |
Provision for loan losses | 4 | ' | |
Clean-up calls | -2 | [1] | ' |
Defaulted vacation ownership notes receivable repurchase activity | -7 | [2] | ' |
Ending Balance | $47 | ' | |
[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_Recei2
Vacation Ownership Notes Receivable - Additional Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended |
In Millions, unless otherwise specified | Mar. 28, 2014 | Jan. 03, 2014 |
Receivables [Abstract] | ' | ' |
Notes receivable estimated average remaining default rates | 7.01% | 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_Nonaccr
Recorded Investment in Non-accrual Notes Receivable that are Ninety Days or More Past Due (Detail) (USD $) | 3 Months Ended | ||
In Millions, unless otherwise specified | Mar. 28, 2014 | Mar. 22, 2013 | Jan. 03, 2014 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' | ' |
Investment in notes receivable on non-accrual status | $76 | ' | $77 |
Average investment in notes receivable on non-accrual status | 77 | 84 | ' |
Non-Securitized Vacation Ownership Notes Receivable | ' | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' | ' |
Investment in notes receivable on non-accrual status | 66 | ' | 69 |
Average investment in notes receivable on non-accrual status | 68 | 74 | ' |
Securitized Vacation Ownership Notes Receivable | ' | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' | ' |
Investment in notes receivable on non-accrual status | 10 | ' | 8 |
Average investment in notes receivable on non-accrual status | $9 | $10 | ' |
Aging_of_Recorded_Investment_i
Aging of Recorded Investment in Principal, Before Reserves, in Vacation Ownership Notes Receivable (Detail) (USD $) | Mar. 28, 2014 | Jan. 03, 2014 |
In Millions, unless otherwise specified | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
31 - 90 days past due | $30 | $34 |
91 - 150 days past due | 14 | 15 |
Greater than 150 days past due | 62 | 62 |
Total past due | 106 | 111 |
Current | 962 | 993 |
Total vacation ownership notes receivable | 1,068 | 1,104 |
Non-Securitized Vacation Ownership Notes Receivable | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
31 - 90 days past due | 13 | 12 |
91 - 150 days past due | 6 | 7 |
Greater than 150 days past due | 60 | 62 |
Total past due | 79 | 81 |
Current | 300 | 252 |
Total vacation ownership notes receivable | 379 | 333 |
Securitized Vacation Ownership Notes Receivable | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
31 - 90 days past due | 17 | 22 |
91 - 150 days past due | 8 | 8 |
Greater than 150 days past due | 2 | ' |
Total past due | 27 | 30 |
Current | 662 | 741 |
Total vacation ownership notes receivable | $689 | $771 |
Carrying_Values_and_Estimated_
Carrying Values and Estimated Fair Values of Financial Assets and Liabilities (Detail) (USD $) | Mar. 28, 2014 | Jan. 03, 2014 | ||
In Millions, unless otherwise specified | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Vacation ownership notes receivable | $936 | $970 | ||
Debt | -597 | -678 | ||
Mandatorily redeemable preferred stock of consolidated subsidiary | -40 | -40 | ||
Liability for Marriott Rewards customer loyalty program | -107 | -114 | ||
Other liabilities | -57 | -31 | ||
Other Debt | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Debt | -4 | ' | ||
Securitized Vacation Ownership Notes Receivable | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Vacation ownership notes receivable | 642 | 719 | ||
Non-Securitized Vacation Ownership Notes Receivable | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Vacation ownership notes receivable | 294 | 251 | ||
Carrying Amount | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Vacation ownership notes receivable | 936 | 970 | ||
Debt | -597 | -678 | ||
Mandatorily redeemable preferred stock of consolidated subsidiary | -40 | -40 | ||
Liability for Marriott Rewards customer loyalty program | -107 | -114 | ||
Other liabilities | -6 | -6 | ||
Total financial liabilities | -750 | -838 | ||
Carrying Amount | Non-Recourse Debt | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Debt | -593 | [1] | -674 | [1] |
Carrying Amount | Other Debt | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Debt | -4 | -4 | ||
Carrying Amount | Securitized Vacation Ownership Notes Receivable | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Vacation ownership notes receivable | 642 | 719 | ||
Carrying Amount | Non-Securitized Vacation Ownership Notes Receivable | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Vacation ownership notes receivable | 294 | 251 | ||
Fair Value | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Vacation ownership notes receivable | 1,098 | [2] | 1,132 | [2] |
Mandatorily redeemable preferred stock of consolidated subsidiary | -44 | [2] | -44 | [2] |
Liability for Marriott Rewards customer loyalty program | -103 | [2] | -110 | [2] |
Other liabilities | -6 | [2] | -6 | [2] |
Total financial liabilities | -768 | [2] | -859 | [2] |
Fair Value | Non-Recourse Debt | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Debt | -611 | [2] | -695 | [2] |
Fair Value | Other Debt | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Debt | -4 | [2] | -4 | [2] |
Fair Value | Securitized Vacation Ownership Notes Receivable | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Vacation ownership notes receivable | 772 | [2] | 865 | [2] |
Fair Value | Non-Securitized Vacation Ownership Notes Receivable | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Vacation ownership notes receivable | $326 | [2] | $267 | [2] |
[1] | Interest rates are as of March 28, 2014. | |||
[2] | Fair value of financial instruments has been determined using Level 3 inputs. |
Carrying_Values_and_Estimated_1
Carrying Values and Estimated Fair Values of Financial Assets and Liabilities - Non-securitized Notes Receivable (Detail) (USD $) | Mar. 28, 2014 | Jan. 03, 2014 | ||
In Millions, unless otherwise specified | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Vacation ownership notes receivable | $936 | $970 | ||
Non-Securitized Vacation Ownership Notes Receivable | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Vacation ownership notes receivable | 294 | 251 | ||
Carrying Amount | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Vacation ownership notes receivable | 936 | 970 | ||
Carrying Amount | Non-Securitized Vacation Ownership Notes Receivable | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Vacation ownership notes receivable | 294 | 251 | ||
Carrying Amount | Non-Securitized Vacation Ownership Notes Receivable | Eligible for Securitization | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Vacation ownership notes receivable | 136 | 73 | ||
Carrying Amount | Non-Securitized Vacation Ownership Notes Receivable | Not Eligible for Securitization | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Vacation ownership notes receivable | 158 | 178 | ||
Fair Value | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Vacation ownership notes receivable | 1,098 | [1] | 1,132 | [1] |
Fair Value | Non-Securitized Vacation Ownership Notes Receivable | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Vacation ownership notes receivable | 326 | [1] | 267 | [1] |
Fair Value | Non-Securitized Vacation Ownership Notes Receivable | Eligible for Securitization | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Vacation ownership notes receivable | 168 | 89 | ||
Fair Value | Non-Securitized Vacation Ownership Notes Receivable | Not Eligible for Securitization | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Vacation ownership notes receivable | $158 | $178 | ||
[1] | Fair value of financial instruments has been determined using Level 3 inputs. |
Dispositions_Additional_Inform
Dispositions - Additional Information (Detail) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 28, 2014 | Mar. 22, 2013 |
Business Combinations [Abstract] | ' | ' |
Cash from disposal of a golf course and adjacent undeveloped land | $24 | ' |
Gain on disposal of golf course and adjacent undeveloped land to be recorded over operating period | 2 | ' |
Gains and other income | $1 | $1 |
Reconciliation_of_Earnings_and
Reconciliation of Earnings and Number of Shares Used in Calculation of Basic and Diluted Earnings Per Share (Detail) (USD $) | 3 Months Ended | |||
In Millions, except Per Share data, unless otherwise specified | Mar. 28, 2014 | Mar. 22, 2013 | ||
Computation of Basic Earnings Per Share | ' | ' | ||
Net income | $19 | [1] | $19 | [2] |
Weighted average shares outstanding | 34.9 | [1] | 35.2 | [2] |
Basic earnings per share | $0.55 | [1] | $0.53 | [2] |
Computation of Diluted Earnings Per Share | ' | ' | ||
Net income | $19 | [1] | $19 | [2] |
Weighted average shares outstanding | 34.9 | [1] | 35.2 | [2] |
Effect of dilutive securities | ' | ' | ||
Employee stock options and SARs | 0.6 | [1] | 0.8 | [2] |
Restricted stock units | 0.4 | [1] | 0.6 | [2] |
Shares for diluted earnings per share | 35.9 | [1] | 36.6 | [2] |
Diluted earnings per share | $0.54 | [1] | $0.51 | [2] |
[1] | The computations of diluted earnings per share exclude approximately 291,000 shares of common stock, the maximum number of shares issuable as of March 28, 2014 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. | |||
[2] | The computations of diluted earnings per share exclude approximately 229,000 shares of common stock, the maximum number of shares issuable as of March 22, 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. |
Reconciliation_of_Earnings_and1
Reconciliation of Earnings and Number of Shares Used in Calculation of Basic and Diluted Earnings Per Share (Parenthetical) (Detail) (Performance-based awards) | 3 Months Ended | |
Mar. 28, 2014 | Mar. 22, 2013 | |
Performance-based awards | ' | ' |
Schedule of Earnings Per Share, Basic and Diluted, by Common Class [Line Items] | ' | ' |
Shares excluded from the calculation of diluted earnings per share (in shares) | 291,000 | 229,000 |
Earnings_Per_Share_Additional_
Earnings Per Share - Additional Information (Detail) (Stock Appreciation Rights (SARs), USD $) | 3 Months Ended | |
Mar. 28, 2014 | Mar. 22, 2013 | |
Stock Appreciation Rights (SARs) | ' | ' |
Earnings Per Share Disclosure [Line Items] | ' | ' |
Shares excluded from the calculation of diluted earnings per share (in shares) | 57,906 | 0 |
SARs not included in the calculation of diluted earning per share because exercise prices exceeded market prices, exercise prices | $52.09 | ' |
Composition_of_Inventory_Detai
Composition of Inventory (Detail) (USD $) | Mar. 28, 2014 | Jan. 03, 2014 | ||
In Millions, unless otherwise specified | ||||
Inventory Disclosure [Abstract] | ' | ' | ||
Finished goods | $379 | [1] | $369 | [1] |
Work-in-progress | 124 | 151 | ||
Land and infrastructure | 341 | [2] | 344 | [2] |
Real estate inventory | 844 | 864 | ||
Operating supplies and retail inventory | 6 | 6 | ||
Inventory | $850 | $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 sales centers to be converted into vacation ownership products to be sold in the future. |
Contingencies_and_Commitments_1
Contingencies and Commitments - Additional Information (Detail) (USD $) | 1 Months Ended | 3 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | 3 Months Ended | 3 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | |||||||||
In Millions, unless otherwise specified | Jan. 30, 2013 | Dec. 21, 2012 | Mar. 22, 2013 | Jan. 03, 2014 | Dec. 28, 2012 | Mar. 28, 2014 | Mar. 28, 2014 | Jan. 03, 2014 | Mar. 28, 2014 | Mar. 28, 2014 | Mar. 28, 2014 | Jan. 03, 2014 | Apr. 17, 2014 | Apr. 17, 2014 | Mar. 28, 2014 | Mar. 28, 2014 | Mar. 28, 2014 | Mar. 28, 2014 | Jan. 03, 2014 |
Plaintiff | LegalMatter | LegalMatter | Variable Interest Entity, Not Primary Beneficiary | Variable Interest Entity, Not Primary Beneficiary | Extended Term | Marriott International | Project Completion Guarantee | Kapalua Bay Settlement | Subsequent Event | Subsequent Event | Revolving Credit Facility | Primary Obligor | Primary Obligor | Information technology hardware and software | Plaintiffs | ||||
Equity Investment And Loan Receivable | Equity Investment And Loan Receivable | Maximum | Vacation Ownership | Plaintiff | Maximum | Other Liabilities | Kapalua Bay Settlement | ||||||||||||
Maximum | Plaintiff | ||||||||||||||||||
Commitments and Contingencies Disclosure [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Underlying notes extended expiration year | ' | ' | ' | ' | ' | ' | ' | ' | '2022 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Liability for Expected Future Fundings | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $1 | ' | ' |
Contractual Commitments Future Minimum Payments Due | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 42 | ' |
Contractual Commitments Future Minimum Payments due in 2014 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 9 | ' |
Contractual Commitments Future Minimum Payments due in 2015 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 13 | ' |
Contractual Commitments Future Minimum Payments due in 2016 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 7 | ' |
Contractual Commitments Future Minimum Payments due in 2017 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5 | ' |
Contractual Commitments Future Minimum Payments due in 2018 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2 | ' |
Contractual Commitments Future Minimum Payments due Thereafter | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6 | ' |
Commitments to subsidize vacation ownership associations | ' | ' | ' | ' | ' | 5 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Surety bonds issued | ' | ' | ' | ' | ' | 81 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Standby Letters Of Credit | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Letters of credit outstanding | ' | ' | ' | ' | ' | 3 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revolving credit facility amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 200 | ' | ' | ' | ' |
Litigation settlement, expense | ' | ' | -1 | ' | 41 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Reversal of litigation charge | ' | ' | ' | 1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of settled lawsuits in which certain subsidiaries were defendants | ' | 3 | ' | ' | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of plaintiffs in lawsuits | 12 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of developers provided full release | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 132 | ' | ' | ' | ' | ' | ' | ' |
Number of developers sold interests | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 177 | ' | ' | ' | ' | ' | ' | 2 |
Number of residential developers provided full release | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1 | ' | ' | ' | ' | ' | ' | ' |
Increase in litigation matters cost expected to be incurred in joint venture interest | ' | ' | ' | ' | ' | ' | 2 | 8 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Notes receivable due from the entity | ' | ' | ' | ' | ' | ' | 7 | 7 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Non cash possible loss from contingency | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 25 | ' | ' | ' | ' | ' | ' |
Litigation period to expire | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '5 months | ' | ' | ' | ' | ' |
Estimated cash outflow associated with completing all phases of existing portfolio of projects | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 39 | ' | ' | ' | ' | ' | ' | ' | ' |
Liabilities related to projects | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $18 | ' | ' | ' | ' | ' | ' | ' | ' |
Project estimated completion year | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '2017 | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum_Potential_Amount_of_Fu
Maximum Potential Amount of Future Fundings for Financing Guarantees and Carrying Amount of Liability for Expected Future Fundings (Detail) (Primary Obligor, USD $) | Mar. 28, 2014 |
In Millions, unless otherwise specified | |
Guarantor Obligations [Line Items] | ' |
Maximum Potential Amount of Future Fundings | $14 |
Liability for Expected Future Fundings | ' |
Asia Pacific | ' |
Guarantor Obligations [Line Items] | ' |
Maximum Potential Amount of Future Fundings | 11 |
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
Debt Balances (Detail) (USD $) | Mar. 28, 2014 | Jan. 03, 2014 | ||
In Millions, unless otherwise specified | ||||
Debt Instrument [Line Items] | ' | ' | ||
Debt | $597 | $678 | ||
Other Debt | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Debt | 4 | ' | ||
Carrying Amount | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Debt | 597 | 678 | ||
Carrying Amount | Non-Recourse Debt | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Debt | 593 | [1] | 674 | [1] |
Carrying Amount | Other Debt | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Debt | $4 | $4 | ||
[1] | Interest rates are as of March 28, 2014. |
Debt_Balances_Parenthetical_De
Debt Balances (Parenthetical) (Detail) (Carrying Amount, Non-Recourse Debt) | Mar. 28, 2014 | |
Debt Instrument [Line Items] | ' | |
Debt, weighted average interest rate | 3.40% | [1] |
Minimum | ' | |
Debt Instrument [Line Items] | ' | |
Debt, stated interest rate | 2.20% | [1] |
Maximum | ' | |
Debt Instrument [Line Items] | ' | |
Debt, stated interest rate | 7.20% | [1] |
[1] | Interest rates are as of March 28, 2014. |
Debt_Additional_Information_De
Debt - Additional Information (Detail) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 28, 2014 | Mar. 22, 2013 |
Loan | ||
Debt Disclosure [Line Items] | ' | ' |
Cash paid for interest, net of amounts capitalized | $6 | $10 |
Number of notes receivable pools failed to perform within the established parameters | 0 | ' |
Number of notes receivable pools outstanding | 6 | ' |
Revolving Credit Facility | ' | ' |
Debt Disclosure [Line Items] | ' | ' |
Amount borrowed under revolving corporate credit facility | $0 | ' |
Scheduled_Future_Principal_Pay
Scheduled Future Principal Payments for Debt (Detail) (USD $) | Mar. 28, 2014 | Jan. 03, 2014 | |
In Millions, unless otherwise specified | |||
Debt Principal Payments Year | ' | ' | |
2014 | $75 | ' | |
2015 | 99 | ' | |
2016 | 95 | ' | |
2017 | 70 | ' | |
2018 | 55 | ' | |
Thereafter | 203 | ' | |
Balance at end of period | 597 | 678 | |
Vacation Ownership Notes Receivable Securitizations | ' | ' | |
Debt Principal Payments Year | ' | ' | |
2014 | 75 | [1] | ' |
2015 | 99 | [1] | ' |
2016 | 95 | [1] | ' |
2017 | 70 | [1] | ' |
2018 | 55 | [1] | ' |
Thereafter | 199 | [1] | ' |
Balance at end of period | 593 | [1] | ' |
Other Debt | ' | ' | |
Debt Principal Payments Year | ' | ' | |
Thereafter | 4 | ' | |
Balance at end of period | $4 | ' | |
[1] | The debt associated with our vacation ownership notes receivable securitizations is non-recourse to us. |
Mandatorily_Redeemable_Preferr1
Mandatorily Redeemable Preferred Stock Of Consolidated Subsidiary - Additional Information (Detail) (Series A Preferred Stock, Non-voting, USD $) | 1 Months Ended | |
In Millions, except Share data, unless otherwise specified | Oct. 31, 2011 | Mar. 28, 2014 |
Series A Preferred Stock | Non-voting | ' | ' |
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 | 10.96% | ' |
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
Shareholders' Equity - Additional Information (Detail) (USD $) | Mar. 28, 2014 | Jan. 03, 2014 | Oct. 08, 2013 |
Maximum | |||
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 | 35,827,949 | 35,637,765 | ' |
Common stock, shares outstanding | 34,588,785 | 35,132,742 | ' |
Treasury stock, shares | 1,239,164 | 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 | ' |
Stock repurchase program, number of common stock authorized to be repurchased | ' | ' | 3,500,000 |
Stock repurchase program, remaining authorized repurchase amount (in shares) | 2,300,000 | ' | ' |
Changes_in_Shareholders_Equity
Changes in Shareholder's Equity (Detail) (USD $) | 3 Months Ended | 3 Months Ended | ||||||||
In Millions, unless otherwise specified | Mar. 28, 2014 | Mar. 22, 2013 | Mar. 28, 2014 | Mar. 28, 2014 | Mar. 28, 2014 | Jan. 03, 2014 | Mar. 28, 2014 | |||
Treasury Stock | Additional Paid-In Capital | Accumulated Other Comprehensive Income | Accumulated Other Comprehensive Income | Retained (Deficit) Earnings | ||||||
Stockholders Equity Note [Line Items] | ' | ' | ' | ' | ' | ' | ' | |||
Beginning Balance | $1,209 | ' | ($26) | $1,130 | $23 | $23 | $82 | |||
Net income | 19 | [1] | 19 | [2] | ' | ' | ' | ' | 19 | |
Amounts related to share-based compensation | -2 | ' | ' | -2 | ' | ' | ' | |||
Adjustment to reclassification of Marriott International investment to Additional paid-in capital | -1 | [3] | ' | ' | -1 | [3] | ' | ' | ' | |
Repurchase of common stock | -37 | ' | -37 | ' | ' | ' | ' | |||
Ending Balance | $1,188 | ' | ($63) | $1,127 | $23 | $23 | $101 | |||
[1] | The computations of diluted earnings per share exclude approximately 291,000 shares of common stock, the maximum number of shares issuable as of March 28, 2014 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. | |||||||||
[2] | The computations of diluted earnings per share exclude approximately 229,000 shares of common stock, the maximum number of shares issuable as of March 22, 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_Stock_Repurchase_Ac
Summary of Stock Repurchase Activity (Detail) (USD $) | 3 Months Ended |
In Millions, except Share data, unless otherwise specified | Mar. 28, 2014 |
Equity [Abstract] | ' |
Beginning Balance | 505,023 |
For the twelve weeks ended March 28, 2014 | 734,141 |
Ending Balance | 1,239,164 |
Beginning balance | $26 |
For the twelve weeks ended March 28, 2014 | 37 |
Ending balance | $63 |
Beginning balance | $50.76 |
For the twelve weeks ended March 28, 2014 | $50.99 |
Ending balance | $50.90 |
ShareBased_Compensation_Additi
Share-Based Compensation - Additional Information (Detail) (USD $) | 3 Months Ended | 3 Months Ended | 3 Months Ended | |||||||
In Millions, except Share data, unless otherwise specified | Mar. 28, 2014 | Jan. 03, 2014 | Mar. 28, 2014 | Mar. 22, 2013 | Mar. 28, 2014 | Mar. 28, 2014 | Mar. 28, 2014 | Mar. 28, 2014 | Mar. 28, 2014 | Mar. 28, 2014 |
Officers and Key Management Employees | Officers and Key Management Employees | Marriott Vacations Worldwide Stock and Cash Incentive Plan | Restricted stock units | Restricted stock units | Performance Based Restricted Stock Unit | Performance Based Restricted Stock Unit | Stock Appreciation Rights (SARs) | |||
Employees and Non Employee Directors | Employee | Maximum | Employee | |||||||
Employees and Non Employee Directors | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shares authorized for issuance under the plan | ' | ' | ' | ' | 6,000,000 | ' | ' | ' | ' | ' |
Shares available for grants under the plan | ' | ' | ' | ' | 2,000,000 | ' | ' | ' | ' | ' |
Share-based compensation expense related to award grants | ' | ' | $2 | $2 | ' | ' | ' | ' | ' | ' |
Deferred compensation costs related to unvested awards | $22 | $13 | ' | ' | ' | ' | ' | ' | ' | ' |
Stock awards, grants in period | ' | ' | ' | ' | ' | 148,144 | ' | ' | ' | 57,906 |
Stock awards, vesting period | ' | ' | ' | ' | ' | ' | '4 years | '3 years | ' | '4 years |
Stock awards, weighted average grant date fair value | ' | ' | ' | ' | ' | $52.09 | ' | ' | ' | ' |
Maximum amount of RSU subject to vesting | ' | ' | ' | ' | ' | ' | ' | ' | 62,000 | ' |
Stock awards, expiration from grant date | ' | ' | ' | ' | ' | ' | ' | ' | ' | '10 years |
Stock awards, weighted average grant date fair value | ' | ' | ' | ' | ' | ' | ' | ' | ' | $27.98 |
Stock awards, weighted average exercise price | ' | ' | ' | ' | ' | ' | ' | ' | ' | $52.09 |
Expected annual dividend per share | $0 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Assumptions_Used_to_Estimate_F
Assumptions Used to Estimate Fair Value of Grants (Detail) | 3 Months Ended |
Mar. 28, 2014 | |
Disclosure Of Compensation Related Costs Sharebased 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_Consolidate
Classifications of Consolidated VIE Assets and Liabilities (Detail) (USD $) | Mar. 28, 2014 |
In Millions, unless otherwise specified | |
Variable Interest Entity [Line Items] | ' |
VIE Assets | $673 |
VIE Liabilities | 594 |
Vacation Ownership Notes Receivable | ' |
Variable Interest Entity [Line Items] | ' |
VIE Assets | 642 |
Interest Receivable | ' |
Variable Interest Entity [Line Items] | ' |
VIE Assets | 4 |
Restricted Cash | ' |
Variable Interest Entity [Line Items] | ' |
VIE Assets | 27 |
Interest Payable | ' |
Variable Interest Entity [Line Items] | ' |
VIE Liabilities | 1 |
Debt | ' |
Variable Interest Entity [Line Items] | ' |
VIE Liabilities | 593 |
Vacation Ownership Notes Receivable Securitizations | ' |
Variable Interest Entity [Line Items] | ' |
VIE Assets | 673 |
VIE Liabilities | 594 |
Vacation Ownership Notes Receivable Securitizations | Vacation Ownership Notes Receivable | ' |
Variable Interest Entity [Line Items] | ' |
VIE Assets | 642 |
Vacation Ownership Notes Receivable Securitizations | Interest Receivable | ' |
Variable Interest Entity [Line Items] | ' |
VIE Assets | 4 |
Vacation Ownership Notes Receivable Securitizations | Restricted Cash | ' |
Variable Interest Entity [Line Items] | ' |
VIE Assets | 27 |
Vacation Ownership Notes Receivable Securitizations | Interest Payable | ' |
Variable Interest Entity [Line Items] | ' |
VIE Liabilities | 1 |
Vacation Ownership Notes Receivable Securitizations | Debt | ' |
Variable Interest Entity [Line Items] | ' |
VIE Liabilities | $593 |
Variable_Interest_Entities_Add
Variable Interest Entities - Additional Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended |
Mar. 28, 2014 | Jan. 03, 2014 | |
Variable Interest Entity [Line Items] | ' | ' |
Noncontrolling interest | $0 | ' |
Vacation ownership notes receivable | 936,000,000 | 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 | 642,000,000 | 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 $10 million for potential future funding obligations, representing our remaining expected exposure to loss related to our involvement with this entity 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 |
Increase in litigation matters cost expected to be incurred in joint venture interest | 2,000,000 | 8,000,000 |
Accrued liability for additional funding | $10,000,000 | ' |
Interest_Income_and_Expense_Re
Interest Income and Expense Recognized as a Result of Our Involvement with Variable Interest Entities (Detail) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 28, 2014 | Mar. 22, 2013 |
Variable Interest Entity [Line Items] | ' | ' |
Debt issuance cost amortization | $1 | $1 |
Variable Interest Entity | ' | ' |
Variable Interest Entity [Line Items] | ' | ' |
Interest income | 22 | ' |
Interest expense to investors | 5 | ' |
Debt issuance cost amortization | 1 | ' |
Variable Interest Entity | Vacation Ownership Notes Receivable Securitizations | ' | ' |
Variable Interest Entity [Line Items] | ' | ' |
Interest income | 22 | ' |
Interest expense to investors | 5 | ' |
Debt issuance cost amortization | $1 | ' |
Cash_Flows_Between_Company_and
Cash Flows Between Company and Variable Interest Entities (Detail) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 28, 2014 | Mar. 22, 2013 |
Vacation Ownership Notes Receivable Securitizations | ' | ' |
Cash inflows (outflows): | ' | ' |
Principal receipts | $46 | $43 |
Interest receipts | 22 | 23 |
Reserve release | 2 | ' |
Total | 70 | 66 |
Principal to investors | -47 | -43 |
Voluntary repurchases of defaulted vacation ownership notes receivable | -7 | -7 |
Voluntary clean-up call | -27 | -51 |
Interest to investors | -6 | -7 |
Total | -87 | -108 |
Net Cash Flows | -17 | -42 |
Warehouse Credit Facility | ' | ' |
Cash inflows (outflows): | ' | ' |
Net proceeds from vacation ownership notes receivable securitization | ' | 109 |
Principal receipts | ' | 4 |
Interest receipts | ' | 1 |
Total | ' | 114 |
Principal to investors | ' | -2 |
Total | ' | -2 |
Net Cash Flows | ' | $112 |
Organizational_and_Separation_1
Organizational and Separation Related Charges - Additional Information (Detail) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 28, 2014 | Mar. 22, 2013 |
Organizational and Separation Related Charges [Line Items] | ' | ' |
Organizational and separation related charges | $1 | $1 |
Capitalized asset costs | ' | 1 |
Maximum | ' | ' |
Organizational and Separation Related Charges [Line Items] | ' | ' |
Capitalized asset costs | $1 | ' |
Business_Segments_Additional_I
Business Segments - Additional Information (Detail) | 3 Months Ended |
Mar. 28, 2014 | |
Segment | |
Segment Reporting [Abstract] | ' |
Number of business segments | 3 |
Revenues_Detail
Revenues (Detail) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 28, 2014 | Mar. 22, 2013 |
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' |
Revenue | $402 | $390 |
Operating Segments | ' | ' |
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' |
Revenue | 402 | 390 |
Operating Segments | North America Segment | ' | ' |
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' |
Revenue | 366 | 353 |
Operating Segments | Europe | ' | ' |
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' |
Revenue | 23 | 22 |
Operating Segments | Asia Pacific | ' | ' |
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' |
Revenue | $13 | $15 |
Net_Income_Loss_Detail
Net Income (Loss) (Detail) (USD $) | 3 Months Ended | |||
In Millions, unless otherwise specified | Mar. 28, 2014 | Mar. 22, 2013 | ||
Segment Reporting, Reconciliation of Net Income (Loss) Segment to Consolidated [Line Items] | ' | ' | ||
Segment financial results | $32 | $30 | ||
Provision for income taxes | -13 | -11 | ||
Net income (loss) | 19 | [1] | 19 | [2] |
Operating Segments | ' | ' | ||
Segment Reporting, Reconciliation of Net Income (Loss) Segment to Consolidated [Line Items] | ' | ' | ||
Segment financial results | 82 | 82 | ||
Operating Segments | North America Segment | ' | ' | ||
Segment Reporting, Reconciliation of Net Income (Loss) Segment to Consolidated [Line Items] | ' | ' | ||
Segment financial results | 80 | 78 | ||
Operating Segments | Europe | ' | ' | ||
Segment Reporting, Reconciliation of Net Income (Loss) Segment to Consolidated [Line Items] | ' | ' | ||
Segment financial results | 1 | 1 | ||
Operating Segments | Asia Pacific | ' | ' | ||
Segment Reporting, Reconciliation of Net Income (Loss) Segment to Consolidated [Line Items] | ' | ' | ||
Segment financial results | 1 | 3 | ||
Corporate and Other | ' | ' | ||
Segment Reporting, Reconciliation of Net Income (Loss) Segment to Consolidated [Line Items] | ' | ' | ||
Segment financial results | ($50) | ($52) | ||
[1] | The computations of diluted earnings per share exclude approximately 291,000 shares of common stock, the maximum number of shares issuable as of March 28, 2014 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. | |||
[2] | The computations of diluted earnings per share exclude approximately 229,000 shares of common stock, the maximum number of shares issuable as of March 22, 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. |
Assets_Detail
Assets (Detail) (USD $) | Mar. 28, 2014 | Jan. 03, 2014 |
In Millions, unless otherwise specified | ||
Segment Reporting Information [Line Items] | ' | ' |
Total Assets | $2,519 | $2,632 |
Operating Segments | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Total Assets | 2,265 | 2,312 |
Operating Segments | North America Segment | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Total Assets | 2,082 | 2,125 |
Operating Segments | Europe | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Total Assets | 103 | 103 |
Operating Segments | Asia Pacific | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Total Assets | 80 | 84 |
Corporate and Other | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Total Assets | $254 | $320 |
Subsequent_Event_Additional_In
Subsequent Event - Additional Information (Detail) (Subsequent Event, HAWAII, USD $) | 0 Months Ended |
In Millions, unless otherwise specified | Apr. 25, 2014 |
Subsequent Event | HAWAII | ' |
Subsequent Event [Line Items] | ' |
Description of purchase agreement | 'we entered into a purchase and sale agreement to dispose of tracts of partially developed and undeveloped land and an operating golf course and related assets, in Kauai, Hawaii for $60 million in cash. The transaction contemplated by the purchase and sale agreement is subject to a number of closing conditions, and we cannot assure that the transaction will be completed in a timely manner, or at all |
Cash from disposal of a golf course and adjacent undeveloped land | $60 |