MARRIOTT VACATIONS WORLDWIDE Corp

20. RESTRUCTURING AND IMPAIRMENT

Restructuring Costs

2025 Asia Pacific Strategy Change

In the fourth quarter of 2025 we reassessed the strategy for our Asia Pacific vacation ownership business as part of our initiatives to drive strong profitability and improve cash flow. As a result, we scaled back growth expectations and right‑sized our business in the region. This includes reducing tours for first‑time buyers in select countries in the region where our borrowers have higher default rates, reducing headcount in the region, deferring the purchase of inventory and canceling a purchase commitment for inventory. As a result, we incurred restructuring costs in 2025, all of which related to the Asia Pacific strategy change, as follows:

2024 and 2023

Additionally during each of the years ended December 31, 2024 and December 31, 2023, we incurred $6 million of restructuring charges relating to severance.

Impairment Charges

We incurred impairment charges during 2025, 2024, and 2023 as follows:

During the fourth quarter of 2025, as part of our broader financial strategic review, we conducted a comprehensive review to assess the strategic alignment of inventory and property and equipment within our North America vacation ownership business. This review focused on assessing inventory needs in light of our current inventory holdings and identifying opportunities to monetize certain non-core assets. The conclusions drawn from the strategic review identified indicators of impairment for certain assets. As a result of our impairment analyses, we recorded a non‑cash impairment related to assets associated with future phases of our existing resorts. The carrying values of the assets associated with these resorts exceeded their estimated fair values because the carrying values included historical allocations of common infrastructure costs incurred when we built the resorts. In addition, we recorded a non-cash impairment related to certain property and equipment identified for disposition including a hotel in Cancun, Mexico, which was classified as a component of Other assets as it was held for sale and ultimately disposed of in January 2026.

For assets where fair value was determined using the sales-comparison method of the market approach, Level 3 inputs were applied in the valuation process. The fair value measurement was based on analyses of sales and offerings of comparable properties and adjusted to reflect the differences between the asset being valued and the comparable assets, such as market conditions, location, size, physical characteristics, zoning, density and site conditions.

For assets where fair value was determined utilizing the income approach, Level 3 inputs were applied in the valuation process. The fair value measurement was based on discounted cash flow analyses and consideration was given to potential alternative uses of the assets in accordance with the highest and best use requirements outlined in ASC 820. Level 3 inputs utilized in the valuation process included projections of revenue, expense and the estimated discount rates applied.

Property, Equipment, and Other Assets Identified for Disposition

A $160 million non-cash impairment was recognized for certain non-core Property and equipment and Other assets identified for disposition. We estimated the fair value of the assets using the sales-comparison method of the market approach, which in certain instances also considered brokers’ opinion of value and our own transaction history, Level 3 inputs, or in the case of our hotel located in Cancun, Mexico, was based on a binding sales contract with a third party, which is a Level 3 input.

Future Phases of Existing Resorts

During 2025, we recorded non-cash impairment charges of $131 million as a result of decisions to forgo build out of future phases of existing resorts which were classified as a component of Property and equipment, net. We estimated the fair value of these assets using the sales-comparison method of the market approach. We also considered other inputs, including a non-binding letter of intent, Level 3.

Legacy-Welk Inventory

During 2025 and 2024, we recorded non-cash impairment charges of $75 million and $28 million, respectively, related to Legacy-Welk inventory. The 2024 impairment reflected an elongated pace of sales at a higher marketing and selling cost than the estimates used in purchase accounting. The 2025 impairment reflected a further elongated pace of sales at a higher marketing and selling cost as the Hyatt-branded vacation ownership business continues to underperform expectations. We used the income approach to estimate the fair value of the assets less costs to sell in both 2025 and 2024.

Khao Lak, Thailand Inventory

We recorded a $27 million non-cash impairment for vacation ownership units classified in Inventory due to the strategy change in Asia Pacific which elongated the pace of sales and changed our marketing approach. We used the income approach to estimate the fair value less costs to sell of the inventory.

Leases

During 2025, we recorded a $2 million impairment related to an operating lease and related assets in our Exchange & Third-Party Management segment.

Upon our relocation to our new corporate headquarters during the fourth quarter of 2023, we recorded a non-cash impairment charge of $16 million to the right-to-use asset related to the operating leases for our previous corporate headquarters as we did not expect proceeds from subleasing these spaces to exceed our future obligations under the operating leases.

Goodwill and Trade Names

See Footnote 10 “Goodwill” and Footnote 11 “Intangible Assets” for information on the impairments of goodwill and trade names recorded during 2025.