MARRIOTT VACATIONS WORLDWIDE Corp
For the period ended Mar 31, 2024. Filed May 7, 2024.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Mar 31, 2024 · Filed May 7, 2024
Extracted filing text, with the paragraph anchors used by the comparison.
See the whole filing, with its images and exhibitsContents
4. Revenue and Receivables
| 4. | REVENUE AND RECEIVABLES |
Sources of Revenue by Segment
| Three Months Ended March 31, 2024 | ||||
|---|---|---|---|---|
| ($ in millions) | Vacation Ownership | Exchange & Third-Party Management | Corporate and Other | Total |
| Sale of vacation ownership products | $352 | $— | $— | $352 |
| Ancillary revenues | 65 | 1 | — | 66 |
| Management fee revenues | 52 | 5 | (1) | 56 |
| Exchange and other services revenues | 31 | 46 | 12 | 89 |
| Management and exchange | 148 | 52 | 11 | 211 |
| Rental | 147 | 11 | — | 158 |
| Cost reimbursements | 400 | 2 | (11) | 391 |
| Revenue from contracts with customers | 1,047 | 65 | — | 1,112 |
| Financing | 83 | — | — | 83 |
| Total Revenues | $1,130 | $65 | $— | $1,195 |
| Three Months Ended March 31, 2023 | ||||
|---|---|---|---|---|
| ($ in millions) | Vacation Ownership | Exchange & Third-Party Management | Corporate and Other | Total |
| Sale of vacation ownership products | $375 | $— | $— | $375 |
| Ancillary revenues | 61 | 1 | — | 62 |
| Management fee revenues | 45 | 8 | (1) | 52 |
| Exchange and other services revenues | 29 | 47 | 10 | 86 |
| Management and exchange | 135 | 56 | 9 | 200 |
| Rental | 141 | 10 | — | 151 |
| Cost reimbursements | 368 | 5 | (8) | 365 |
| Revenue from contracts with customers | 1,019 | 71 | 1 | 1,091 |
| Financing | 78 | — | — | 78 |
| Total Revenues | $1,097 | $71 | $1 | $1,169 |
Timing of Revenue from Contracts with Customers by Segment
The following tables detail the timing of revenue from contracts with customers by segment for the time periods presented.
| Three Months Ended March 31, 2024 | ||||
|---|---|---|---|---|
| ($ in millions) | Vacation Ownership | Exchange & Third-Party Management | Corporate and Other | Total |
| Services transferred over time | $625 | $24 | $— | $649 |
| Goods or services transferred at a point in time | 422 | 41 | — | 463 |
| Revenue from contracts with customers | $1,047 | $65 | $— | $1,112 |
| Three Months Ended March 31, 2023 | ||||
|---|---|---|---|---|
| ($ in millions) | Vacation Ownership | Exchange & Third-Party Management | Corporate and Other | Total |
| Services transferred over time | $578 | $29 | $1 | $608 |
| Goods or services transferred at a point in time | 441 | 42 | — | 483 |
| Revenue from contracts with customers | $1,019 | $71 | $1 | $1,091 |
Sale of Vacation Ownership Products
Revenues were reduced during the first quarter of 2024 by $4 million due to changes in our estimates of variable consideration for performance obligations that were satisfied in prior periods.
Receivables from Contracts with Customers, Contract Assets, & Contract Liabilities
The following table shows the composition of our receivables from contracts with customers and contract liabilities. We hadno contract assets at either March 31, 2024 or December 31, 2023.
| ($ in millions) | At March 31, 2024 | At December 31, 2023 |
|---|---|---|
| Receivables from Contracts with Customers | ||
| Accounts and contracts receivable, net | $272 | $259 |
| Vacation ownership notes receivable, net | 2,336 | 2,343 |
| $2,608 | $2,602 | |
| Contract Liabilities | ||
| Advance deposits | $176 | $164 |
| Deferred revenue | 482 | 382 |
| $658 | $546 | |
Revenue recognized during the first quarter of 2024 that was included in our contract liabilities balance at December 31, 2023 was $121 million.
Remaining Performance Obligations
Our remaining performance obligations represent the expected transaction price allocated to our contracts that we expect to recognize as revenue in future periods when we perform under the contracts. At March 31, 2024, approximately 93% of this amount is expected to be recognized as revenue over the nexttwo years.
Accounts and Contracts Receivable
Accounts and contracts receivable is composed of amounts due from customers, primarily owners’ associations, resort developers, owners and members, credit card receivables, interest receivables, amounts due from taxing authorities, indemnification assets, and other miscellaneous receivables. The following table shows the composition of our accounts and contracts receivable balances:
| ($ in millions) | At March 31, 2024 | At December 31, 2023 |
|---|---|---|
| Receivables from contracts with customers, net | $272 | $259 |
| Interest receivable | 18 | 18 |
| Tax receivable | 63 | 44 |
| Indemnification assets | 42 | 40 |
| Employee tax credit receivable | 10 | 11 |
| Other | 17 | 13 |
| $422 | $385 |
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.