MARRIOTT VACATIONS WORLDWIDE Corp
For the period ended Sep 30, 2026. Filed Nov 4, 2026.
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Sep 30, 2026 · Filed Nov 4, 2026
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15. Variable Interest Entities
| 15. | VARIABLE INTEREST ENTITIES |
Variable Interest Entities Related to Our Vacation Ownership Notes Receivable Securitizations
The following table shows consolidated assets, which are collateral for the obligations of the VIEs related to our vacation ownership notes receivable securitizations, and consolidated liabilities included on our Balance Sheet at September 30, 2026:
| ($ in millions) | Vacation OwnershipNotes ReceivableSecuritizations | WarehouseCredit Facility | Total |
|---|---|---|---|
| Consolidated Assets | |||
| Vacation ownership notes receivable, net of reserves | $1,817 | $374 | $2,191 |
| Interest receivable | 14 | 3 | 17 |
| Restricted cash | 84 | 14 | 98 |
| Total | $1,915 | $391 | $2,306 |
| Consolidated Liabilities | |||
| Interest payable | $3 | $1 | $4 |
| Securitized debt | 2,068 | 382 | 2,450 |
| Total | $2,071 | $383 | $2,454 |
The following table shows the interest income and expense recognized as a result of our involvement with these VIEs during the third quarter of 2026:
| ($ in millions) | Vacation Ownership Notes Receivable Securitizations | WarehouseCredit Facility | Total |
|---|---|---|---|
| Interest income | $70 | $11 | $81 |
| Interest expense | $26 | $3 | $29 |
| Debt issuance cost amortization | $2 | $1 | $3 |
The following table shows the interest income and expense recognized as a result of our involvement with these VIEs during the first three quarters of 2026:
| ($ in millions) | Vacation Ownership Notes Receivable Securitizations | WarehouseCredit Facility | Total |
|---|---|---|---|
| Interest income | $213 | $25 | $238 |
| Interest expense | $78 | $8 | $86 |
| Debt issuance cost amortization | $8 | $1 | $9 |
| Administrative expenses | $1 | $— | $1 |
The following table shows cash flows between us and the vacation ownership notes receivable securitization VIEs:
| Nine Months Ended | ||
|---|---|---|
| ($ in millions) | September 30, 2026 | September 30, 2025 |
| Cash Inflows | ||
| Net proceeds from vacation ownership notes receivable securitizations | $521 | $445 |
| Principal receipts | 484 | 440 |
| Interest receipts | 213 | 200 |
| Reserve release | 1 | 105 |
| Total | 1,219 | 1,190 |
| Cash Outflows | ||
| Principal payments | (470) | (427) |
| Voluntary repurchases of defaulted vacation ownership notes receivable | (134) | (122) |
| Voluntary clean-up call | (28) | (64) |
| Interest payments | (78) | (71) |
| Funding of restricted cash | (1) | (103) |
| Total | (711) | (787) |
| Net Cash Flows | $508 | $403 |
The following table shows cash flows between us and the Warehouse Credit Facility VIE:
| Nine Months Ended | ||
|---|---|---|
| ($ in millions) | September 30, 2026 | September 30, 2025 |
| Cash Inflows | ||
| Proceeds from vacation ownership notes receivable securitizations | $761 | $477 |
| Principal receipts | 49 | 43 |
| Interest receipts | 20 | 23 |
| Reserve release | 2 | 13 |
| Total | 832 | 556 |
| Cash Outflows | ||
| Principal payments | (34) | (35) |
| Voluntary repurchases of defaulted vacation ownership notes receivable | — | (2) |
| Repayment of Warehouse Credit Facility | (344) | (308) |
| Interest payments | (7) | (9) |
| Funding of restricted cash | (4) | (13) |
| Total | (389) | (367) |
| Net Cash Flows | $443 | $189 |
Under the terms of our vacation ownership notes receivable securitizations and Warehouse Credit Facility, we have the right to substitute loans for, or repurchase, defaulted loans at our option, subject to certain limitations. Our maximum exposure to potential loss relating to the special purpose entities that purchase, sell, and own these vacation ownership notes receivable is the overcollateralization amount (the difference between the loan collateral balance and the balance of the outstanding vacation ownership notes receivable), plus cash reserves and any residual interest in future cash flows from collateral.
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