Marriott Vacations Worldwide Reports Second Quarter 2014 Financial Results

  Marriott Vacations Worldwide Reports Second Quarter 2014 Financial Results

PR Newswire

ORLANDO, Fla., July 24, 2014

ORLANDO, Fla., July 24, 2014 /PRNewswire/ -- Marriott Vacations Worldwide
Corporation (NYSE: VAC) today reported second quarter 2014 financial results
and provided updated guidance for the full year 2014.

Highlights for the second quarter of 2014 include:

  oAdjusted EBITDA totaled $57 million, an increase of $9 million, or 20
    percent, year-over-year.
  oCompany adjusted development margin was 24.2 percent and North America
    adjusted development margin was 26.3 percent, an increase of 710 and 680
    basis points, respectively, year-over-year.
  oNorth America volume per guest (VPG) increased 5.3 percent year-over-year
    to $3,383.
  oAdjusted fully diluted earnings per share (EPS) were $0.87 compared to
    $0.73 in the second quarter of 2013.
  oThe company disposed of a parcel of undeveloped land on Singer Island,
    Florida for gross cash proceeds of $11 million.
  oIn the second quarter of 2014, the company repurchased 936,060 shares of
    its common stock under its share repurchase program for approximately $52
    million. Through July 22, 2014, the company has repurchased a total of
    nearly 2.5 million shares for a total of $134 million since the launch of
    the program in the fourth quarter of 2013.

Second quarter 2014 net income totaled $36 million, or $1.00 per diluted
share, compared to net income of $30 million, or $0.85 per diluted share, in
the second quarter of 2013. Company development margin increased to 24.2
percent in the second quarter of 2014 from 23.1 percent in the second quarter
of 2013; North America development margin for the second quarter increased to
26.3 percent from 20.8 percent last year.

Second quarter 2014 adjusted net income totaled $31 million, a $4 million
increase compared to the second quarter of 2013. Second quarter adjusted net
income excludes the pre-tax impact of the following:

  oSecond quarter 2014: $8 million of income in the company's North America
    segment associated with the settlement of a dispute with a former service
    provider, the reversal of a $2 million reserve associated with the
    company's interest in an equity method investment in a joint venture
    project in its North America segment, $1 million of organizational and
    separation related costs, $1 million related to a gain from the sale of a
    golf course and adjacent undeveloped land and a $1 million non-cash
    impairment charge.
  oSecond quarter 2013: $9 million related to the impact of extended
    rescission periods in the company's Europe segment, a $7 million increase
    in an accrual for expected remaining costs associated with the company's
    interest in an equity method investment in a joint venture project in its
    North America segment offset by a $7 million gain for cash received in
    payment of fully reserved receivables associated with that same project,
    $2 million of organizational and separation related costs, and $2 million
    of severance costs and an impairment charge in the company's Europe
    segment. In addition, adjusted development margin for both periods is
    adjusted for the impact of revenue reportability, as necessary.

Non-GAAP financial measures, such as adjusted EBITDA, adjusted net income,
adjusted earnings per share and adjusted development margin, are reconciled in
the Press Release Schedules that follow. Adjustments are shown and described
in further detail on schedules A-1 through A-20. The company now reports
consumer financing interest expense separately from all other interest
expense. As a result, adjusted EBITDA as used in this release is equivalent to
the non-GAAP financial measure adjusted EBITDA, as adjusted, presented prior
to the third quarter of 2013.

"Our second quarter results were strong across the board, with continued
growth in VPG, development margin and adjusted EBITDA, as well as improving
trends in our tour production," said Stephen P. Weisz, president and chief
executive officer. "Adjusted development margin in our key North America
segment improved to 26.3 percent, and total company development margin
improved to 24.2 percent. After two quarters of solid performance, we are
increasing our full year 2014 guidance for adjusted free cash flow, as well as
total company and North America adjusted development margin, and raising the
lower end of our full year adjusted EBITDA guidance."

Second Quarter 2014 Results

Total company contract sales were $164 million, a $7 million increase from
$157 million in the second quarter of 2013, driven by $4 million of higher
contract sales in the company's North America segment and $4 million of higher
contract sales in the company's Europe segment, offset by $1 million of lower
contract sales in the company's Asia Pacific segment.

Adjusted development margin was $37 million, a $12 million increase from the
second quarter of 2013. Adjusted development margin percentage increased 7.1
percentage points to 24.2 percent in the second quarter of 2014 from 17.1
percent in the second quarter of 2013. The adjustments are illustrated on
schedule A-10. Development margin was $37 million, a $1 million decrease from
the second quarter of 2013, as the prior year period benefited from the impact
of extended rescission periods in the company's Europe segment. Development
margin percentage increased 1.1 percentage points to 24.2 percent in the
second quarter of 2014 from 23.1 percent in the second quarter of 2013.

Rental revenues totaled $62 million, a $3 million decrease from the second
quarter of 2013. These results reflect a 2 percent increase in transient keys
rented as well as a 3 percent increase in average transient rate, offset by $5
million of lower plus points revenue. Rental revenues, net of expenses, were
$7 million, a $2 million decrease from the second quarter of 2013.

Resort management and other services revenues totaled $70 million, a $6
million increase from the second quarter of 2013. Resort management and other
services revenues, net of expenses, were $24 million, a $6 million increase
over the second quarter of 2013.

Adjusted EBITDA was $57 million in the second quarter of 2014, a $9 million
increase from $48 million in the second quarter of 2013.

Segment Results

North America

VPG increased 5.3 percent to $3,383 in the second quarter of 2014 from $3,211
in the second quarter of 2013, driven mainly by higher pricing. North America
vacation ownership contract sales were $146 million in the second quarter of
2014, an increase of $5 million over the prior year period.

Second quarter 2014 North America segment financial results were $101 million,
an increase of $17 million, or 20 percent, year-over-year. The increase was
primarily driven by $8 million of higher development margin, $8 million from
the settlement of a dispute with a former service provider, $5 million of
higher resort management and other services revenues net of expenses, the
reversal of a $2 million charge related to the company's interest in an equity
method investment in a joint venture project and $2 million of lower royalty
fees. These increases were partially offset by $3 million of lower rental
revenues net of expenses, $3 million of lower financing revenues, $1 million
of lower other revenues net of expenses and $1 million of organizational and
separation related charges.

Development margin was $36 million, an $8 million increase from the second
quarter of 2013. Development margin percentage increased to 26.3 percent in
the second quarter of 2014 as compared to 20.8 percent in the prior year
quarter. Excluding the impact of revenue reportability, adjusted development
margin was $36 million, an $11 million increase from the prior year quarter.
Adjusted development margin percentage increased to 26.3 percent in the second
quarter of 2014 from 19.5 percent in the second quarter of 2013. The impact of
revenue reportability is illustrated on schedule A-12.

Asia Pacific

Asia Pacific contract sales declined $1 million to $7 million in the second
quarter of 2014. Segment financial results were $2 million, flat to the second
quarter of 2013.

Europe

Second quarter 2014 contract sales improved $4 million to $11 million. Segment
financial results were $6 million, $5 million below the second quarter of
2013. Adjustingfor the $9 million impact related to extended rescission
periods in the prior year comparable period, segment financial results
increased $4 million.

Organizational and Separation Plan

During the second quarter of 2014, the company incurred $1 million of costs in
connection with its continued organizational and separation related efforts.
Remaining spending for these efforts of approximately $4 million to $6 million
is expected to be incurred by the end of 2014.

These costs primarily relate to establishing the company's own information
technology systems and services, independent accounts payable functions and
the reorganization of existing human resources and information technology
organizations to support the company's stand-alone public company needs. Once
completed, these efforts are expected to generate approximately $15 million to
$20 million of annualized savings, of which approximately $12 million has been
realized cumulatively to date, including roughly $2 million reflected in the
company's 2014 financial results.

Dispositions

As part of its strategy to dispose of excess land and inventory, the company
completed the sale of a parcel of undeveloped land on Singer Island, Florida
in May 2014, resulting in $11 million of gross cash proceeds and an estimated
gain of less than $1 million.

Share Repurchase Program

During the second quarter of 2014, the company repurchased 936,060 shares of
its common stock at an average price of $55.56 per share for a total of
approximately $52 million. Through July 22, 2014, the company has repurchased
a total of nearly 2.5 million shares of its common stock for a total of $134
million since the launch of the program on October 20, 2013.

Balance Sheet and Liquidity

On June 20, 2014, cash and cash equivalents totaled $170 million. Since the
end of 2013, real estate inventory balances declined $44 million to $820
million, including $446 million of finished goods, $40 million of
work-in-process and $334 million of land and infrastructure. The company had
$570 million in debt outstanding at the end of the second quarter of 2014, a
decrease of $108 million from year-end 2013, including $566 million in
non-recourse securitized notes. In addition, $40 million of mandatorily
redeemable preferred stock of a subsidiary of the company was outstanding at
the end of the second quarter of 2014.

In June, the company completed a securitization of a pool of approximately
$23.8 million of primarily highly-seasoned vacation ownership notes receivable
that the company had previously classified as not being eligible for
securitization, at a weighted average interest rate of 6.25 percent and an
advance rate of 95 percent. This transaction generated approximately $22.5
million of net cash proceeds to the company after transaction costs and cash
reserves, which are available for general corporate purposes.

As of June 20, 2014, the company had $197 million in available capacity under
its revolving credit facility after taking into account outstanding letters of
credit and had approximately $170 million of gross vacation ownership notes
receivable eligible for securitization.

Outlook

For the full year 2014, the company is updating guidance as reflected in the
chart below.

                                     Current Guidance     Previous Guidance
Adjusted free cash flow  $190 million to $205 $145 million to $160
                                million              million
Adjusted fully diluted earnings per  $2.64 to $2.82       $2.42 to $2.68
share
Adjusted EBITDA                      $190 million to $200 $185 million to $200
                                     million              million
Adjusted net income                  $93 million to $99   $87 million to $96
                                     million              million
Adjusted development margin:
 Company                        21.0 percent to 22.0 20.0 percent to 21.0
                                     percent              percent
 North America                  23.0 percent to 24.0 22.0 percent to 23.0
                                     percent              percent
Contract sales growth (excluding
residential):
 Company                        1 percent to 3       5 percent to 8
                                     percent              percent
 North America                  flat to 2 percent    4 percent to 7
                                                          percent



Schedules A-1 through A-20 reconcile the non-GAAP financial measures set forth
above to the following full year 2014 expected GAAP results: reported net
income of $95 million to $101 million; reported company development margin of
20.5 percent to 21.5 percent; reported North America development margin of
22.8 percent to 23.8 percent; and net cash provided by operating activities of
$189 million to $201 million.

Second Quarter 2014 Earnings Conference Call

The company will hold a conference call at 10:00 a.m. EDT today to discuss
these results. Participants may access the call by dialing (877) 407-8289 or
(201) 689-8341 for international callers. A live webcast of the call will also
be available in the Investor Relations section of the company's website at
www.marriottvacationsworldwide.com. 

An audio replay of the conference call will be available for seven days and
can be accessed at (877) 660-6853 or (201) 612-7415 for international
callers.The conference ID for the recording is 13586548.The webcast will
also be available on the company's website.

About Marriott Vacations Worldwide Corporation

Marriott Vacations Worldwide Corporation is a leading global pure-play
vacation ownership company. In late 2011, Marriott Vacations Worldwide was
established as an independent, public company focusing primarily on vacation
ownership experiences. Since entering the industry in 1984 as part of Marriott
International, Inc., the company earned its position as a leader and innovator
in vacation ownership products. The company preserves high standards of
excellence in serving its customers, investors and associates while
maintaining a long-term relationship with Marriott International. Marriott
Vacations Worldwide offers a diverse portfolio of quality products, programs
and management expertise with more than 60 resorts and approximately 420,000
Owners and Members. Its brands include: Marriott Vacation Club, The
Ritz-Carlton Destination Club and Grand Residences by Marriott. For more
information, please visit www.marriottvacationsworldwide.com.

Note on forward-looking statements: This press release and accompanying
schedules contain "forward-looking statements" within the meaning of federal
securities laws, including statements about future operating results,
organizational and separation related efforts, estimates, and assumptions, and
similar statements concerning anticipated future events and expectations that
are not historical facts. The company cautions you that these statements are
not guarantees of future performance and are subject to numerous risks and
uncertainties, including volatility in the economy and the credit markets,
supply and demand changes for vacation ownership and residential products,
competitive conditions; the availability of capital to finance growth, and
other matters referred to under the heading "Risk Factors" contained in the
company's most recent Annual Report on Form 10-K filed with the U.S Securities
and Exchange Commission (the "SEC") and in subsequent SEC filings, any of
which could cause actual results to differ materially from those expressed in
or implied in this press release. These statements are made as of July 24,
2014 and the company undertakes no obligation to publicly update or revise any
forward-looking statement, whether as a result of new information, future
events, or otherwise.

Financial Schedules Follow

MARRIOTT VACATIONS WORLDWIDE CORPORATION
PRESS RELEASE SCHEDULES
QUARTER 2, 2014
TABLE OF CONTENTS
Consolidated Statements of Operations - 12 Weeks Ended June 20, 2014 and A-1
June 14, 2013
Consolidated Statements of Operations - 24 Weeks Ended June 20, 2014 and A-2
June 14, 2013
North America Segment Financial Results - 12 Weeks Ended June 20, 2014   A-3
and June 14, 2013
North America Segment Financial Results - 24 Weeks Ended June 20, 2014   A-4
and June 14, 2013
Asia Pacific Segment Financial Results - 12 Weeks Ended June 20, 2014    A-5
and June 14, 2013
Asia Pacific Segment Financial Results - 24 Weeks Ended June 20, 2014    A-6
and June 14, 2013
Europe Segment Financial Results - 12 Weeks Ended June 20, 2014 and June A-7
14, 2013
Europe Segment Financial Results - 24 Weeks Ended June 20, 2014 and June A-8
14, 2013
Corporate and Other Financial Results - 12 Weeks and 24 Weeks Ended June A-9
20, 2014 and June 14, 2013
Consolidated Contract Sales to Sale of Vacation Ownership Products and
Adjusted Development Margin
 (Adjusted Sale of Vacation Ownership Products Net of Expenses) - 12  A-10
Weeks Ended June 20, 2014 and June 14, 2013
Consolidated Contract Sales to Sale of Vacation Ownership Products and
Adjusted Development Margin
 (Adjusted Sale of Vacation Ownership Products Net of Expenses) - 24  A-11
Weeks Ended June 20, 2014 and June 14, 2013
North America Contract Sales to Sale of Vacation Ownership Products and
Adjusted Development Margin
 (Adjusted Sale of Vacation Ownership Products Net of Expenses) - 12  A-12
Weeks Ended June 20, 2014 and June 14, 2013
North America Contract Sales to Sale of Vacation Ownership Products and
Adjusted Development Margin
 (Adjusted Sale of Vacation Ownership Products Net of Expenses) - 24  A-13
Weeks Ended June 20, 2014 and June 14, 2013
EBITDA and Adjusted EBITDA - 12 Weeks and 24 Weeks Ended June 20, 2014   A-14
and June 14, 2013
Adjusted Net Income and Adjusted Earnings Per Share - Diluted, Adjusted  A-15
EBITDA and Adjusted Development Margin - 2014 Outlook
2014 Adjusted Free Cash Flow Outlook                                     A-16
2014 Normalized Adjusted Free Cash Flow Outlook                          A-17
Non-GAAP Financial Measures                                              A-18
Interim Consolidated Balance Sheets                                      A-21
Interim Consolidated Statements of Cash Flows                            A-22



A-1
MARRIOTT VACATIONS WORLDWIDE CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
12 Weeks Ended June 20, 2014 and June 14, 2013
(In millions, except per share amounts)
                  As                 As           As                 Europe      As
                  Reported           Adjusted     Reported                       Adjusted
                  12 Weeks  Certain  12 Weeks     12 Weeks  Certain  Rescission  12 Weeks
                  Ended              Ended        Ended                          Ended
                  June 20,  Charges  June 20, **  June 14,  Charges  Adjustment  June 14, **
                  2014               2014         2013                           2013
Revenues
  Sale of         $               $         $               $       $   
  vacation              $                    $               
  ownership                -                    -             
  products         152              152         169               (17)        152
  Resort
  management and  70        -        70           64        -        -           64
  other services
  Financing       29        -        29           32        -        -           32
  Rental          62        -        62           65        -        -           65
  Other           6         -        6            6         -        -           6
  Cost            91        -        91           85        -        -           85
  reimbursements
     Total        410       -        410          421       -        (17)        404
     revenues
Expenses
  Cost of
  vacation        43        -        43           57        -        (6)         51
  ownership
  products
  Marketing and   72        -        72           74        (1)      (2)         71
  sales
  Resort
  management and  46        -        46           46        -        -           46
  other services
  Financing       6         -        6            6         -        -           6
  Rental          55        -        55           56        -        -           56
  Other           3         -        3            2         -        -           2
  General and     23        -        23           22        -        -           22
  administrative
  Organizational
  and separation  1         (1)      -            2         (2)      -           -
  related
  Litigation      (8)       8        -            -         -        -           -
  settlement
  Consumer
  Financing       5         -        5            7         -        -           7
  Interest
  Royalty fee     14        -        14           15        -        -           15
  Impairment      1         (1)      -            1         (1)      -           -
  Cost            91        -        91           85        -        -           85
  reimbursements
     Total        352       6        358          373       (4)      (8)         361
     expenses
Gains and other   1         (1)      -            -         -        -           -
income
Interest Expense  3         -        3            4         -        -           4
Impairment
reversals on      2         (2)      -            -         -        -           -
equity investment
  Income before   58        (9)      49           44        4        (9)         39
  income taxes
Provision for     (22)      4        (18)         (14)      (1)      3           (12)
income taxes
                  $               $         $               $       $   
Net income              $                    $               
                         (5)                     3            
                   36               31         30               (6)         27
                  $               $         $                           $   
Earnings per                                                            
share - Basic                                                           
                  1.03               0.89         0.87                           0.76
                  $               $         $                           $   
Earnings per                                                            
share - Diluted                                                         
                  1.00               0.87         0.85                           0.73
Basic Shares      34.3               34.3         35.4                           35.4
Diluted Shares    35.2               35.2         36.6                           36.6
                  As                              As
                  Reported                        Reported
                  12 Weeks                        12 Weeks
                  Ended                           Ended
Contract Sales    June 20,                        June 14,
                  2014                            2013
                  $                            $   
  Vacation                                       
  ownership                                      
                  164                            156
  Residential     -                               1
  products
     Total        $                            $   
     contract                                    
     sales                                       
                  164                            157



** Denotes non-GAAP financial measures. Please see schedules A-18 through A-20
for additional information about our reasons for providing these alternative
financial measures and limitations on their use.
NOTE: We now report in Resort management and other services certain external
exchange company results previously included in Other and have recast prior
year presentation for consistency.



A-2
MARRIOTT VACATIONS WORLDWIDE CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
24 Weeks Ended June 20, 2014 and June 14, 2013
(In millions, except per share amounts)
                  As                 As           As                 Europe      As
                  Reported           Adjusted     Reported                       Adjusted
                  24 Weeks  Certain  24 Weeks     24 Weeks  Certain  Rescission  24 Weeks
                  Ended              Ended        Ended                          Ended
                  June 20,  Charges  June 20, **  June 14,  Charges  Adjustment  June 14, **
                  2014               2014         2013                           2013
Revenues
  Sale of         $      $     $         $      $     $       $   
  vacation                                                   
  ownership             -                      -                 
  products         297               297         310              (18)         292
  Resort
  management and  130       -        130          123       -        -           123
  other services
  Financing       60        -        60           65        -        -           65
  Rental          126       -        126          128       -        -           128
  Other           8         -        8            9         -        -           9
  Cost            191       -        191          176       -        -           176
  reimbursements
     Total        812       -        812          811       -        (18)        793
     revenues
Expenses
  Cost of
  vacation        90        -        90           101       -        (6)         95
  ownership
  products
  Marketing and   143       -        143          148       (2)      (2)         144
  sales
  Resort
  management and  88        -        88           89        -        -           89
  other services
  Financing       11        -        11           11        -        -           11
  Rental          112       -        112          112       -        -           112
  Other           5         -        5            5         -        -           5
  General and     45        -        45           43        -        -           43
  administrative
  Organizational
  and separation  2         (2)      -            3         (3)      -           -
  related
  Litigation      (8)       8        -            (1)       1        -           -
  settlement
  Consumer
  Financing       12        -        12           15        -        -           15
  Interest
  Royalty fee     27        -        27           28        -        -           28
  Impairment      1         (1)      -            1         (1)      -           -
  Cost            191       -        191          176       -        -           176
  reimbursements
     Total        719       5        724          731       (5)      (8)         718
     expenses
Gains and other   2         (2)      -            1         -        -           1
income
Interest Expense  5         -        5            7         -        -           7
Impairment
reversals on      -         -        -            -         -        -           -
equity investment
     Income
     before       90        (7)      83           74        5        (10)        69
     income taxes
Provision for     (35)      3        (32)         (25)      (1)      3           (23)
income taxes
                  $               $         $               $       $   
Net income              $                    $               
                          (4)                    4            
                    55               51         49              (7)         46
                  $               $         $                           $   
Earnings per                                                            
share - Basic                                                           
                  1.58              1.47        1.40                          1.32
                  $               $         $                           $   
Earnings per                                                            
share - Diluted                                                         
                  1.54              1.43        1.35                          1.27
Basic Shares      34.6               34.6         35.3                           35.3
Diluted Shares    35.6               35.6         36.6                           36.6
                  As                              As
                  Reported                        Reported
                  24 Weeks                        24 Weeks
                  Ended                           Ended
Contract Sales    June 20,                        June 14,
                  2014                            2013
                  $                            $   
  Vacation                                       
  ownership                                      
                   320                            312
  Residential     6                               1
  products
     Total        $                            $   
     contract                                    
     sales                                       
                   326                            313



** Denotes non-GAAP financial measures. Please see schedules A-18 through A-20
for additional information about our reasons for providing these alternative
financial measures and limitations on their use.
NOTE: We have restated 2013 first quarter Sale of vacation ownership products
revenue, Income before income taxes, Net income, Earnings per share - Basic,
and Earnings per share - Diluted to correct prior period misstatements.
Earnings per share - Basic and Earnings per share - Diluted are calculated
using whole dollars. We now report in Resort management and other services
certain external exchange company results previously included in Other and
have recast prior year presentation for consistency.



A-3
MARRIOTT VACATIONS WORLDWIDE CORPORATION
NORTH AMERICA SEGMENT
12 Weeks Ended June 20, 2014 and June 14, 2013
($ in millions)
                  As                 As           As                 As
                  Reported           Adjusted     Reported           Adjusted
                  12 Weeks  Certain  12 Weeks     12 Weeks  Certain  12 Weeks
                  Ended              Ended        Ended              Ended
                  June 20,  Charges  June 20, **  June 14,  Charges  June 14, **
                  2014               2014         2013               2013
Revenues
  Sale of         $      $     $         $      $     $   
  vacation                                            
  ownership             -                      -          
  products         135               135         136               136
  Resort
  management and  60        -        60           55        -        55
  other services
  Financing       27        -        27           30        -        30
  Rental          54        -        54           57        -        57
  Other           6         -        6            6         -        6
  Cost            81        -        81           75        -        75
  reimbursements
     Total        363       -        363          359       -        359
     revenues
Expenses
  Cost of
  vacation        37        -        37           46        -        46
  ownership
  products
  Marketing and   62        -        62           62        -        62
  sales
  Resort
  management and  39        -        39           39        -        39
  other services
  Rental          48        -        48           48        -        48
  Other           3         -        3            2         -        2
  Organizational
  and separation  1         (1)      -            -         -        -
  related
  Litigation      (8)       8        -            -         -        -
  settlement
  Royalty fee     1         -        1            3         -        3
  Impairment      1         (1)      -            -         -        -
  Cost            81        -        81           75        -        75
  reimbursements
     Total        265       6        271          275       -        275
     expenses
Gains and other   1         (1)      -            -         -        -
income
Impairment
reversals on      2         (2)      -            -         -        -
equity investment
     Segment      $               $         $      $     $   
     financial          $                             
     results              (9)                 -          
                   101                92         84               84
                  As                              As
                  Reported                        Reported
                  12 Weeks                        12 Weeks
                  Ended                           Ended
Contract Sales    June 20,                        June 14,
                  2014                            2013
                  $                            $   
  Vacation                                       
  ownership                                      
                   146                            141
  Residential     -                               1
  products
     Total        $                            $   
     contract                                    
     sales                                       
                   146                            142



** Denotes non-GAAP financial measures. Please see schedules A-18 through A-20
for additional information about our reasons for providing these alternative
financial measures and limitations on their use.
NOTE: We now report in Resort management and other services certain external
exchange company results previously included in Other and have recast prior
year presentation for consistency.



A-4
MARRIOTT VACATIONS WORLDWIDE CORPORATION
NORTH AMERICA SEGMENT
24 Weeks Ended June 20, 2014 and June 14, 2013
($ in millions)
                  As                 As           As                 As
                  Reported           Adjusted     Reported           Adjusted
                  24 Weeks  Certain  24 Weeks     24 Weeks  Certain  24 Weeks
                  Ended              Ended        Ended              Ended
                  June 20,  Charges  June 20, **  June 14,  Charges  June 14, **
                  2014               2014         2013               2013
Revenues
  Sale of         $      $     $         $      $     $   
  vacation                                            
  ownership             -                      -          
  products         266               266         262               262
  Resort
  management and  114       -        114          108       -        108
  other services
  Financing       56        -        56           61        -        61
  Rental          114       -        114          116       -        116
  Other           8         -        8            9         -        9
  Cost            171       -        171          156       -        156
  reimbursements
     Total        729       -        729          712       -        712
     revenues
Expenses
  Cost of
  vacation        79        -        79           86        -        86
  ownership
  products
  Marketing and   124       -        124          126       -        126
  sales
  Resort
  management and  75        -        75           76        -        76
  other services
  Rental          99        -        99           99        -        99
  Other           5         -        5            5         -        5
  Organizational
  and separation  1         (1)      -            -         -        -
  related
  Litigation      (8)       8        -            (1)       1        -
  settlement
  Royalty fee     3         -        3            4         -        4
  Impairment      1         (1)      -            -         -        -
  Cost            171       -        171          156       -        156
  reimbursements
     Total        550       6        556          551       1        552
     expenses
Gains and other   2         (2)      -            1         -        1
income
Impairment
reversals on      -         -        -            -         -        -
equity investment
     Segment      $               $         $               $   
     financial          $                    $        
     results              (8)                   (1)     
                   181               173         162               161
                  As                              As
                  Reported                        Reported
                  24 Weeks                        24 Weeks
                  Ended                           Ended
Contract Sales    June 20,                        June 14,
                  2014                            2013
                  $                            $   
  Vacation                                       
  ownership                                      
                   286                            284
  Residential     6                               1
  products
     Total        $                            $   
     contract                                    
     sales                                       
                   292                            285



** Denotes non-GAAP financial measures. Please see schedules A-18 through A-20
for additional information about our reasons for providing these alternative
financial measures and limitations on their use.
NOTE: We now report in Resort management and other services certain external
exchange company results previously included in Other and have recast prior
year presentation for consistency.



A-5
MARRIOTT VACATIONS WORLDWIDE CORPORATION
ASIA PACIFIC SEGMENT
12 Weeks Ended June 20, 2014 and June 14, 2013
($ in millions)
                 As                 As           As                 As
                 Reported           Adjusted     Reported           Adjusted
                 12 Weeks  Certain  12 Weeks     12 Weeks  Certain  12 Weeks
                 Ended              Ended        Ended              Ended
                 June 20,  Charges  June 20, **  June 14,  Charges  June 14, **
                 2014               2014         2013               2013
Revenues
  Sale of        $      $     $         $      $     $   
  vacation                                           
  ownership            -                      -          
  products          8               8         8               8
  Resort
  management and 1         -        1            1         -        1
  other services
  Financing      1         -        1            1         -        1
  Rental         2         -        2            2         -        2
  Cost           -         -        -            2         -        2
  reimbursements
     Total       12        -        12           14        -        14
     revenues
Expenses
  Cost of
  vacation       2         -        2            1         -        1
  ownership
  products
  Marketing and  4         -        4            5         -        5
  sales
  Resort
  management and -         -        -            -         -        -
  other services
  Rental         3         -        3            3         -        3
  Royalty fee    1         -        1            1         -        1
  Cost           -         -        -            2         -        2
  reimbursements
     Total       10        -        10           12        -        12
     expenses
     Segment     $      $     $         $      $     $   
     financial                                       
     results           -                      -          
                    2               2         2               2
                 As                              As
                 Reported                        Reported
                 12 Weeks                        12 Weeks
                 Ended                           Ended
                 June 20,                        June 14,
                 2014                            2013
                 $                            $   
Contract Sales                                  
                                                
                    7                            8



** Denotes non-GAAP financial measures. Please see schedules A-18 through A-20
for additional information about our reasons for providing these alternative
financial measures and limitations on their use.
NOTE: Asia Pacific segment revenues and expenses for the twelve weeks ended
June 14, 2013 have been restated to reclassify a portion of Cost
reimbursements from the Asia Pacific segment to the Europe segment to correct
certain immaterial prior period errors.



A-6
MARRIOTT VACATIONS WORLDWIDE CORPORATION
ASIA PACIFIC SEGMENT
24 Weeks Ended June 20, 2014 and June 14, 2013
($ in millions)
                 As                 As           As                 As
                 Reported           Adjusted     Reported           Adjusted
                 24 Weeks  Certain  24 Weeks     24 Weeks  Certain  24 Weeks
                 Ended              Ended        Ended              Ended
                 June 20,  Charges  June 20, **  June 14,  Charges  June 14, **
                 2014               2014         2013               2013
Revenues
  Sale of        $      $     $         $      $     $   
  vacation                                           
  ownership            -                      -          
  products         14               14         16               16
  Resort
  management and 2         -        2            2         -        2
  other services
  Financing      2         -        2            2         -        2
  Rental         4         -        4            4         -        4
  Cost           2         -        2            4         -        4
  reimbursements
     Total       24        -        24           28        -        28
     revenues
Expenses
  Cost of
  vacation       3         -        3            3         -        3
  ownership
  products
  Marketing and  8         -        8            9         -        9
  sales
  Resort
  management and 1         -        1            1         -        1
  other services
  Rental         6         -        6            5         -        5
  Royalty fee    1         -        1            1         -        1
  Cost           2         -        2            4         -        4
  reimbursements
     Total       21        -        21           23        -        23
     expenses
     Segment     $      $     $         $      $     $   
     financial                                       
     results           -                      -          
                    3               3         5               5
                 As                              As
                 Reported                        Reported
                 24 Weeks                        24 Weeks
                 Ended                           Ended
                 June 20,                        June 14,
                 2014                            2013
                 $                            $   
Contract Sales                                  
                                                
                   14                            17



** Denotes non-GAAP financial measures. Please see schedules A-18 through A-20
for additional information about our reasons for providing these alternative
financial measures and limitations on their use.
NOTE: Asia Pacific segment revenues and expenses for the twenty four weeks
ended June 20, 2014 (related to the twelve weeks ended March 28, 2014) and
June 14, 2013 have been restated to reclassify a portion of Cost
reimbursements from the Asia Pacific segment to the Europe segment to correct
certain immaterial prior period errors.



A-7
MARRIOTT VACATIONS WORLDWIDE CORPORATION
EUROPE SEGMENT
12 Weeks Ended June 20, 2014 and June 14, 2013
($ in millions)
                 As                 As           As                 Europe      As
                 Reported           Adjusted     Reported                       Adjusted
                 12 Weeks  Certain  12 Weeks     12 Weeks  Certain  Rescission  12 Weeks
                 Ended              Ended        Ended                          Ended
                 June 20,  Charges  June 20, **  June 14,  Charges  Adjustment  June 14, **
                 2014               2014         2013                           2013
Revenues
  Sale of        $      $     $         $      $     $       $   
  vacation                                                    
  ownership            -                      -       (17)          
  products          9               9        25                            8
  Resort
  management and 9         -        9            8         -        -           8
  other services
  Financing      1         -        1            1         -        -           1
  Rental         6         -        6            6         -        -           6
  Cost           10        -        10           8         -        -           8
  reimbursements
     Total       35        -        35           48        -        (17)        31
     revenues
Expenses
  Cost of
  vacation       2         -        2            9         -        (6)         3
  ownership
  products
  Marketing and  6         -        6            7         (1)      (2)         4
  sales
  Resort
  management and 7         -        7            7         -        -           7
  other services
  Rental         4         -        4            5         -        -           5
  Impairment     -         -        -            1         (1)      -           -
  Cost           10        -        10           8         -        -           8
  reimbursements
     Total       29        -        29           37        (2)      (8)         27
     expenses
     Segment     $      $     $         $               $       $   
     financial                              $                
     results           -                         2  (9)           
                    6               6        11                            4
                 As                              As
                 Reported                        Reported
                 12 Weeks                        12 Weeks
                 Ended                           Ended
                 June 20,                        June 14,
                 2014                            2013
                 $                            $   
Contract Sales                                  
                                                
                   11                             7



** Denotes non-GAAP financial measures. Please see schedules A-18 through A-20
for additional information about our reasons for providing these alternative
financial measures and limitations on their use.
NOTE: Europe segment revenues and expenses for the twelve weeks ended June 14,
2013 have been restated to reclassify a portion of Cost reimbursements from
the Asia Pacific segment to the Europe segment to correct certain immaterial
prior period errors.



A-8
MARRIOTT VACATIONS WORLDWIDE CORPORATION
EUROPE SEGMENT
24 Weeks Ended June 20, 2014 and June 14, 2013
($ in millions)
                 As                 As           As                 Europe      As
                 Reported           Adjusted     Reported                       Adjusted
                 24 Weeks  Certain  24 Weeks     24 Weeks  Certain  Rescission  24 Weeks
                 Ended              Ended        Ended                          Ended
                 June 20,  Charges  June 20, **  June 14,  Charges  Adjustment  June 14, **
                 2014               2014         2013                           2013
Revenues
  Sale of        $      $     $         $      $     $       $   
  vacation                                                    
  ownership            -                      -       (18)          
  products         17               17         32                           14
  Resort
  management and 14        -        14           13        -        -           13
  other services
  Financing      2         -        2            2         -        -           2
  Rental         8         -        8            8         -        -           8
  Cost           18        -        18           16        -        -           16
  reimbursements
     Total       59        -        59           71        -        (18)        53
     revenues
Expenses
  Cost of
  vacation       4         -        4            9         -        (6)         3
  ownership
  products
  Marketing and  11        -        11           13        (2)      (2)         9
  sales
  Resort
  management and 12        -        12           12        -        -           12
  other services
  Rental         7         -        7            8         -        -           8
  Impairment     -         -        -            1         (1)      -           -
  Cost           18        -        18           16        -        -           16
  reimbursements
     Total       52        -        52           59        (3)      (8)         48
     expenses
     Segment     $      $     $         $               $       $   
     financial                              $                 
     results           -                         3  (10)          
                    7               7        12                            5
                 As                              As
                 Reported                        Reported
                 24 Weeks                        24 Weeks
                 Ended                           Ended
                 June 20,                        June 14,
                 2014                            2013
                 $                            $   
Contract Sales                                  
                                                
                   20                            11



** Denotes non-GAAP financial measures. Please see schedules A-18 through A-20
for additional information about our reasons for providing these alternative
financial measures and limitations on their use.
NOTE: Europe segment revenues and expenses for the twenty four weeks ended
June 20, 2014 (related to the twelve weeks ended March 28, 2014) and June 14,
2013 have been restated to reclassify a portion of Cost reimbursements from
the Asia Pacific segment to the Europe segment to correct certain immaterial
prior period errors. In addition, Europe segment first quarter Sale of
vacation ownership products revenue and Segment financial results have been
restated to correct prior period misstatements.



A-9
MARRIOTT VACATIONS WORLDWIDE CORPORATION
CORPORATE AND OTHER
12 Weeks and 24 Weeks Ended June 20, 2014 and June 14, 2013
($ in millions)
                  As                 As           As                 As
                  Reported           Adjusted     Reported           Adjusted
                  12 Weeks  Certain  12 Weeks     12 Weeks  Certain  12 Weeks
                  Ended              Ended        Ended              Ended
                  June 20,  Charges  June 20, **  June 14,  Charges  June 14, **
                  2014               2014         2013               2013
Expenses
  Cost of         $      $     $         $      $     $   
  vacation                                            
  ownership             -                      -          
  products           2               2         1               1
  Financing       6         -        6            6         -        6
  General and     23        -        23           22        -        22
  administrative
  Organizational
  and separation  -         -        -            2         (2)      -
  related
  Royalty fee     12        -        12           11        -        11
                  $               $         $               $   
     Total              $                    $        
     expenses             -                    (2)      
                   48               48         49               47
                  As                 As           As                 As
                  Reported           Adjusted     Reported           Adjusted
                  24 Weeks  Certain  24 Weeks     24 Weeks  Certain  24 Weeks
                  Ended              Ended        Ended              Ended
                  June 20,  Charges  June 20, **  June 14,  Charges  June 14, **
                  2014               2014         2013               2013
Expenses
  Cost of         $      $     $         $      $     $   
  vacation                                            
  ownership             -                      -          
  products           4               4         3               3
  Financing       11        -        11           11        -        11
  General and     45        -        45           43        -        43
  administrative
  Organizational
  and separation  1         (1)      -            3         (3)      -
  related
  Consumer
  Financing       12        -        12           15        -        15
  Interest
  Royalty fee     23        -        23           23        -        23
                  $               $         $               $   
     Total              $                    $        
     expenses            (1)                   (3)      
                   96               95         98               95



** Denotes non-GAAP financial measures. Please see schedules A-18 through A-20
for additional information about our reasons for providing these alternative
financial measures and limitations on their use.
NOTE: Corporate and Other consists of results not specifically attributable to
an individual segment, including expenses in support of our financing
operations, non-capitalizable development expenses supporting overall company
development, company-wide general and administrative costs, and the fixed
royalty fee payable under the license agreements that we entered into with
Marriott International, Inc. in connection with the spin-off, as well as
consumer financing interest expense. Beginning with the fourth quarter of 2013
we no longer report Interest expense in Corporate and Other and have recast
prior year information for consistency.



A-10
MARRIOTT VACATIONS WORLDWIDE CORPORATION
CONSOLIDATED CONTRACT SALES TO SALE OF VACATION OWNERSHIP PRODUCTS
($ in millions)
                                             

                                             12 Weeks Ended
                                             June 20, 2014     June 14, 2013
Contract sales                               $          $       
                                                 164          157
Revenue recognition adjustments:
                Reportability^1              -                 8
                Europe rescission            -                 17
                adjustment^2
                Sales Reserve^3              (8)               (9)
                Other^4                      (4)               (4)
Sale of vacation ownership products          $          $       
                                                 152          169



^1 Adjustment for lack of required downpayment or contract sales in
rescission period.
^2 Adjustment to eliminate the impact of extended rescission periods in our
Europe segment. Please see schedule A-19 for additional information.
^3 Represents allowance for bad debts for our financed vacation ownership
product sales, which we also refer to as sales reserve.
^4 Adjustment represents sales incentives for plus points that will
ultimately be recognized upon usage or expiration as rental revenues rather
than revenues from the Sale of vacation ownership products.



MARRIOTT VACATIONS WORLDWIDE CORPORATION
CONSOLIDATED ADJUSTED DEVELOPMENT MARGIN (ADJUSTED SALE OF VACATION OWNERSHIP PRODUCTS NET OF EXPENSES)
($ in millions)
                                  Revenue                                                    Revenue
               As                 Recognition    As           As                 Europe      Recognition    As
               Reported                          Adjusted     Reported                                      Adjusted
               12 Weeks  Certain  Reportability  12 Weeks     12 Weeks  Certain  Rescission  Reportability  12 Weeks
               Ended                             Ended        Ended                                         Ended
               June 20,  Charges  Adjustment     June 20, **  June 14,  Charges  Adjustment  Adjustment     June 14, **
               2014                              2014         2013                                          2013
Sale of        $      $                    $         $      $     $                      $   
vacation                   $                                      $           
ownership            -            -                   -       (17)           (8)       
products        152                              152         169                                          144
Less:
 Cost of
 vacation      43        -        -              43           57        -        (6)         (3)            48
 ownership
 products
 Marketing     72        -        -              72           74        (1)      (2)         -              71
 and sales
               $      $                    $         $               $                      $   
Development                $                       $             $           
margin               -            -                      1  (9)            (5)       
                 37                              37         38                                          25
 Development
 margin        24.2%                             24.2%        23.1%                                         17.1%
 percentage^1



** Denotes non-GAAP financial measures. Please see schedules A-18 through A-20
for additional information about our reasons for providing these alternative
financial measures and limitations on their use.
^1 Development margin percentage represents Development margin divided by Sale
of vacation ownership products. Development margin percentage is calculated
using whole dollars.



A-11
MARRIOTT VACATIONS WORLDWIDE CORPORATION
CONSOLIDATED CONTRACT SALES TO SALE OF VACATION OWNERSHIP PRODUCTS
($ in millions)
                                     24 Weeks Ended
                                     June 20,       June 14,
                                     2014           2013
Contract sales                       $ 326          $ 313
Revenue recognition adjustments:
  Reportability^1                    (4)            5
  Europe rescission adjustment^2     -              18
  Sales Reserve^3                    (16)           (18)
  Other^4                            (9)            (8)
Sale of vacation ownership products  $ 297          $ 310

^1 Adjustment for lack of required downpayment or contract sales in rescission
period.
^2 Adjustment to eliminate the impact of extended rescission periods in our
Europe segment. Please see schedule A-19 for additional information.
^3 Represents allowance for bad debts for our financed vacation ownership
product sales, which we also refer to as sales reserve.
^4 Adjustment represents sales incentives for plus points that will ultimately
be recognized upon usage or expiration as rental revenues rather than revenues
from the Sale of vacation ownership products.



MARRIOTT VACATIONS WORLDWIDE CORPORATION
CONSOLIDATED ADJUSTED DEVELOPMENT MARGIN (ADJUSTED SALE OF VACATION OWNERSHIP PRODUCTS NET OF EXPENSES)
($ in millions)
                                   Revenue                                                    Revenue
                As                 Recognition    As           As                 Europe      Recognition    As
                Reported                          Adjusted     Reported                                      Adjusted
                24 Weeks  Certain  Reportability  24 Weeks     24 Weeks  Certain  Rescission  Reportability  24 Weeks
                Ended                             Ended        Ended                                         Ended
                June 20,  Charges  Adjustment     June 20, **  June 14,  Charges  Adjustment  Adjustment     June 14, **
                2014                              2014         2013                                          2013
Sale of         $      $                    $         $      $     $                      $   
vacation                    $                                      $           
ownership             -            4                   -       (18)           (5)       
products         297                              301         310                                          287
Less:
  Cost of
  vacation      90        -        1              91           101       -        (6)         (2)            93
  ownership
  products
  Marketing     143       -        -              143          148       (2)      (2)         -              144
  and sales
                $      $                    $         $               $                      $   
Development                 $                       $              $           
margin                -            3                      2  (10)           (3)       
                  64                              67         61                                          50
  Development
  margin        21.4%                             22.0%        19.8%                                         17.4%
  percentage^1



** Denotes non-GAAP financial measures. Please see schedules A-18 through A-20
for additional information about our reasons for providing these alternative
financial measures and limitations on their use.
^1 Development margin percentage represents Development margin divided by Sale
of vacation ownership products. Development margin percentage is calculated
using whole dollars.
NOTE: We have restated 2013 first quarter Sale of vacation ownership products,
Development margin and Development margin percentage to correct prior period
misstatements.



A-12
MARRIOTT VACATIONS WORLDWIDE CORPORATION
NORTH AMERICA CONTRACT SALES TO SALE OF VACATION OWNERSHIP PRODUCTS
($ in millions)
                                     12 Weeks Ended
                                     June 20, 2014   June 14,
                                                     2013
Contract sales                       $ 146           $ 142
Revenue recognition adjustments:
        Reportability^1              -               5
        Sales Reserve ^2             (7)             (7)
        Other ^3                     (4)             (4)
Sale of vacation ownership products  $ 135           $ 136



^1 Adjustment for lack of required downpayment or contract sales in rescission
period.
^2 Represents allowance for bad debts for our financed vacation ownership
product sales, which we also refer to as sales reserve.
^3 Adjustment represents sales incentives for plus points that will ultimately
be recognized upon usage or expiration as rental revenues rather than revenues
from the Sale of vacation ownership products.



MARRIOTT VACATIONS WORLDWIDE CORPORATION
NORTH AMERICA ADJUSTED DEVELOPMENT MARGIN (ADJUSTED SALE OF VACATION OWNERSHIP PRODUCTS NET OF EXPENSES)
($ in millions)
                                   Revenue                                        Revenue
                As                 Recognition    As           As                 Recognition    As
                Reported                          Adjusted     Reported                          Adjusted
                12 Weeks  Certain  Reportability  12 Weeks     12 Weeks  Certain  Reportability  12 Weeks
                Ended                             Ended        Ended                             Ended
                June 20,  Charges  Adjustment     June 20, **  June 14,  Charges  Adjustment     June 14, **
                2014                              2014         2013                              2013
Sale of         $                              $         $                              $   
vacation              $     $                       $     $           
ownership                                               (5)              
products               -      -                             -                        
                135                              135         136                              131
Less:
 Cost of
 vacation       37        -        -              37           46        -        (2)            44
 ownership
 products
 Marketing and  62        -        -              62           62        -        -              62
 sales
                $                              $         $                              $   
Development           $     $                       $     $           
margin                                                  (3)              
                       -      -                           -                         
                 36                             36          28                               25
 Development
 margin         26.3%                             26.3%        20.8%                             19.5%
 percentage^1



** Denotes non-GAAP financial measures. Please see schedules A-18 through
A-20 for additional information about our reasons for providing these
alternative financial measures and limitations on their use.
^1 Development margin percentage represents Development margin divided by
Sale of vacation ownership products. Development margin percentage is
calculated using whole dollars.



A-13
MARRIOTT VACATIONS WORLDWIDE CORPORATION
NORTH AMERICA CONTRACT SALES TO SALE OF VACATION OWNERSHIP PRODUCTS
($ in millions)
                                     24 Weeks Ended
                                     June 20, 2014   June 14,
                                                     2013
Contract sales                       $ 292           $ 285
Revenue recognition adjustments:
    Reportability^1                  (4)             -
    Sales Reserve ^2                 (13)            (15)
    Other ^3                         (9)             (8)
Sale of vacation ownership products  $ 266           $ 262



^1 Adjustment for lack of required downpayment or contract sales in rescission
period.
^2 Represents allowance for bad debts for our financed vacation ownership
product sales, which we also refer to as sales reserve.
^3 Adjustment represents sales incentives for plus points that will ultimately
be recognized upon usage or expiration as rental revenues rather than revenues
from the Sale of vacation ownership products.



MARRIOTT VACATIONS WORLDWIDE CORPORATION
NORTH AMERICA ADJUSTED DEVELOPMENT MARGIN (ADJUSTED SALE OF VACATION OWNERSHIP PRODUCTS NET OF EXPENSES)
($ in millions)
                                   Revenue                                        Revenue
                As                 Recognition    As           As                 Recognition    As
                Reported                          Adjusted     Reported                          Adjusted
                24 Weeks  Certain  Reportability  24 Weeks     24 Weeks  Certain  Reportability  24 Weeks
                Ended                             Ended        Ended                             Ended
                June 20,  Charges  Adjustment     June 20, **  June 14,  Charges  Adjustment     June 14, **
                2014                              2014         2013                              2013
Sale of         $      $                    $         $                              $   
vacation                   $                       $     $           
ownership                    4                                 -              
products               -                                       -                        
                266                              270         262                              262
Less:
  Cost of
  vacation      79        -        1              80           86        -        -              86
  ownership
  products
  Marketing and 124       -        -              124          126       -        -              126
  sales
                $      $                    $         $                              $   
Development                $                       $     $           
margin                       3                                 -              
                      -                                     -                         
                63                               66          50                               50
  Development
  margin        23.5%                             24.1%        19.1%                             19.1%
  percentage^1



** Denotes non-GAAP financial measures. Please see schedules A-18 through
A-20 for additional information about our reasons for providing these
alternative financial measures and limitations on their use.
^1 Development margin percentage represents Development margin divided by
Sale of vacation ownership products. Development margin percentage is
calculated using whole dollars.



A-14
MARRIOTT VACATIONS WORLDWIDE CORPORATION
EBITDA AND ADJUSTED EBITDA
12 Weeks and 24 Weeks Ended June 20, 2014 and June 14, 2013
($ in millions)
                                            As                 As          As                 Europe      As
                                            Reported           Adjusted    Reported                       Adjusted
                                            12 Weeks  Certain  12 Weeks    12 Weeks  Certain  Rescission  12 Weeks
                                            Ended              Ended       Ended                          Ended
                                            June 20,  Charges  June 20, ** June 14,  Charges  Adjustment  June 14, **
                                            2014               2014        2013                           2013
                                            $               $        $                           $   
                                                  $                   $     $          
Net income                                                                          
                                                  (5)                     3        (6)        
                                              36             31           30                           27
Interest expense                            3         -        3           4         -        -           4
Tax                                         22        (4)      18          14        1        (3)         12
provision
Depreciation and amortization               5         -        5           5         -        -           5
                                            $               $        $                           $   
                                                  $                   $     $          
      EBITDA **                                                                     
                                                  (9)                     4        (9)        
                                              66             57           53                           48
                                            As                 As          As                 Europe      As
                                            Reported           Adjusted    Reported                       Adjusted
                                            24 Weeks  Certain  24 Weeks    24 Weeks  Certain  Rescission  24 Weeks
                                            Ended              Ended       Ended                          Ended
                                            June 20,  Charges  June 20, ** June 14,  Charges  Adjustment  June 14, **
                                            2014               2014        2013                           2013
                                            $               $        $                           $   
                                                  $                   $     $          
Net income                                                                          
                                                  (4)                     4        (7)        
                                              55             51           49                           46
Interest expense                            5         -        5           7         -        -           7
Tax provision                               35        (3)      32          25        1        (3)         23
Depreciation and amortization               9         -        9           11        -        -           11
                                            $               $        $                           $   
                                                  $                   $     $          
      EBITDA **                                                                     
                                                  (7)                     5       (10)         
                                             104              97           92                           87



** Denotes non-GAAP financial measures. Please see schedules A-18 through A-20
for additional information about our reasons for providing these alternative
financial measures and limitations on their use.
NOTE: We now report consumer financing interest expense separately from all
other interest expense. As a result, adjusted EBITDA as presented in these
schedules is equivalent to the non-GAAP financial measure adjusted EBITDA, as
adjusted presented prior to the third quarter of 2013. In addition, we have
restated 2013 first quarter Net income to correct prior period misstatements.



A-15
 MARRIOTT VACATIONS WORLDWIDE CORPORATION
 2014 ADJUSTED NET INCOME AND ADJUSTED EARNINGS PER SHARE - DILUTED OUTLOOK
 (In millions, except per share amounts)
                                              Fiscal Year  Fiscal Year
                                              2014 (low)   2014 (high)
 Net income                                   $ 95         $ 101
   Adjustments to reconcile Net income to
   Adjusted net income
     Organizational and separation related    (1)          (1)
     and other charges^1
     Gain on disposition ^2                   (2)          (2)
     Provision for income taxes on            1            1
     adjustments to net income
            Adjusted net income**             $ 93         $ 99
   Earnings per share - Diluted ^3            $ 2.72       $ 2.90
   Adjusted earnings per share - Diluted**^,  $ 2.64       $ 2.82
   3
   Diluted shares^3                           35.1         35.1



** Denotes non-GAAP financial measures. Please see schedules A-18 through A-20
for additional information about our reasons for providing these alternative
financial measures and limitations on their use.
^1 Organizational and separation related and other charges adjustment includes
$5 million for organizational and separation related efforts, $1 million for
an impairment charge in our North America segment, and $1 million for
restructuring / severance costs in our Europe segment, offset by $8 million
associated with the settlement of a dispute with a former service provider in
our North America segment.
^2 Gain on disposition adjustment includes the gain on the sale of a golf
course and adjacent undeveloped land in our North America segment.
^3 Earnings per share - Diluted, Adjusted earnings per share - Diluted, and
Diluted shares outlook includes the impact of share repurchase activity only
through July 22, 2014.



MARRIOTT VACATIONS WORLDWIDE CORPORATION
2014 ADJUSTED EBITDA OUTLOOK
(In millions)
                               Fiscal Year 2014  Fiscal Year 2014 (high)
                               (low)
Adjusted net income **         $ 93              $ 99
Interest expense^1             12                12
Tax provision                  66                70
Depreciation and amortization  19                19
    Adjusted EBITDA**          $ 190             $ 200



** Denotes non-GAAP financial measures. Please see schedules A-18 through A-20
for additional information about our reasons for providing these alternative
financial measures and limitations on their use.
^1 Interest expense excludes consumer financing interest expense.



MARRIOTT VACATIONS WORLDWIDE CORPORATION
2014 ADJUSTED DEVELOPMENT MARGIN OUTLOOK
                                Total MVW              North America
                                Fiscal     Fiscal      Fiscal     Fiscal
                                Year 2014  Year 2014   Year 2014  Year 2014
                                (low)      (high)      (low)      (high)
Development margin^1            20.5%      21.5%       22.8%      23.8%
 Adjustments to reconcile
 Development margin to Adjusted
 development margin
    Other charges^2             0.1%       0.1%        0.0%       0.0%
    Revenue recognition         0.4%       0.4%        0.2%       0.2%
    reportability
         Adjusted development   21.0%      22.0%       23.0%      24.0%
         margin**^, 1



** Denotes non-GAAP financial measures. Please see schedules A-18 through A-20
for additional information about our reasons for providing these alternative
financial measures and limitations on their use.
^1 Development margin represents Development margin dollars divided by Sale of
vacation ownership products revenues. Development margin is calculated using
whole dollars.
^2 Other charges adjustment includes $1 million for restructuring / severance
costs in our Europe segment recorded under the "Marketing and sales" caption.



A - 16
MARRIOTT VACATIONS WORLDWIDE CORPORATION
2014 ADJUSTED FREE CASH FLOW OUTLOOK
(In millions)
                                                                                      Fiscal  Fiscal
                                                                                      Year    Year
                                                                                      2014    2014
                                                                                      (low)   (high)
                                                                                      $     $  
                                                                                             
 Adjusted net income **                                                                      
                                                                                             
                                                                                       93    99
    Adjustments to reconcile Adjusted net income to net cash
    provided by operating activities:
            Adjustments for non-cash items^1                                          68      69
            Deferred income taxes / income taxes payable                              10      12
            Net changes in assets and liabilities:
                   Notes receivable originations                                      (273)   (270)
                   Notes receivable collections                                       285     287
                   Inventory                                                          34      36
                   Liability for Marriott Rewards customer loyalty program            (32)    (31)
                   Organizational and separation related and other charges            1       1
                   Other working capital changes                                      3       (2)
 Net cash provided by operating activities                                            189     201
    Capital expenditures for property and equipment (excluding inventory)
            Organizational and separation related capital expenditures                (3)     (3)
            Other                                                                     (23)    (23)
    Increase in restricted cash                                                       -       -
    Borrowings from securitization                                                    245     250
    transactions^
    Repayment of debt related to securitizations                                      (220)   (222)
                   Free cash flow**                                                   188     203
 Add:
    Organizational and separation related and other charges                           2       2
                                                                                      $     $  
                                                                                             
                   Adjusted free cash flow**                                                 
                                                                                             
                                                                                      190    205



** Denotes non-GAAP financial measures. Please see schedules A-18 through A-20
for additional information about our reasons for providing these alternative
financial measures and limitations on their use.
^1Includes depreciation, amortization of debt issuance costs, provision for
loan losses, impairment activity, and share-based compensation.
NOTE: We now include borrowings from securitization transactions and repayment
of debt related to securitizations in our free cash flow. As a result, free
cash flow as presented in this schedule is equivalent to the non-GAAP
financial measure adjusted free cash flow presented prior to the fourth
quarter of 2013, and adjusted free cash flow presented in this schedule is
equivalent to the non-GAAP financial measure adjusted free cash flow, as
adjusted presented prior to the fourth quarter of 2013.



A-17
MARRIOTT VACATIONS WORLDWIDE CORPORATION
2014 NORMALIZED ADJUSTED FREE CASH FLOW OUTLOOK
(In millions)
                          Current Guidance
                          Low    High   Mid-Point  Adjustments    Normalized
                          $    $    $      $         $    
 Adjusted net income **   93    99       96        -       
                                                                  96
    Adjustments to
    reconcile Adjusted
    net income to net
    cash
    provided by
    operating
    activities:
       Adjustments for    68     69     69         -              69
       non-cash items^1
       Deferred income
       taxes / income     10     12     11         (1)         ^2 10
       taxes payable
       Net changes in
       assets and
       liabilities:
        Notes receivable  (273)  (270)  (272)      -              (272)
        originations
        Notes receivable  285    287    286        -              286
        collections
        Inventory         34     36     35         (35)        ^3 -
        Liability for
        Marriott Rewards  (32)   (31)   (32)       32          ^4 -
        customer loyalty
        program
        Organizational
        and separation    1      1      1          (1)         ^5 -
        related and
        other charges
        Other working     3      (2)    1          (11)        ^6 (10)
        capital changes
 Net cash provided by     189    201    195        (16)           179
 operating activities
    Capital
    expenditures for
    property and
    equipment
    (excluding
    inventory)
       Organizational
       and separation     (3)    (3)    (3)        3           ^5 -
       related capital
       expenditures
       Other              (23)   (23)   (23)       5           ^7 (18)
    Increase in           -      -      -          -              -
    restricted cash
    Borrowings from
    securitization        245    250    248        (35)        ^8 213
    transactions
    Repayment of debt
    related to            (220)  (222)  (221)      -              (221)
    securitizations
        Free cash flow**  188    203    196        (43)           153
 Add:
    Organizational and
    separation related    2      2      2          (2)            -
    and other charges
        Adjusted free     $     $     $      $         $    
        cash flow**       190   205     198                  153
                                                   (45)



** Denotes non-GAAP financial measures. Please see schedules A-18 through
A-20 for additional information about our reasons for providing these
alternative financial measures and limitations on their use.
NOTE: We now include borrowings from securitization transactions and
repayment of debt related to securitizations in our free cash flow. As a
result, free cash flow as presented in this schedule is equivalent to the
non-GAAP financial measure adjusted free cash flow presented prior to the
fourth quarter of 2013, and adjusted free cash flow presented in this
schedule is equivalent to the non-GAAP financial measure adjusted free cash
flow, as adjusted presented prior to the fourth quarter of 2013.
^1 Includes depreciation, amortization of debt issuance costs, provision for
loan losses, impairment activity, and share-based compensation.
^2 Represents cash taxes slightly lower than tax provision.
^3 Represents adjustment to align real estate inventory spending with real
estate inventory costs (i.e., product costs).
^4 Represents payment for Marriott Rewards Points issued prior to the
Spin-off. Liability to be fully paid in 2016.
^5 Represents costs associated with organizational and separation related
efforts (efforts projected to be completed in 2014), impairment activity, and
restructuring / severance costs in our Europe segment, offset by the
settlement of a dispute with a former service provider.
^6 Represents normalized other working capital changes.
^7 Represents normalized capital expenditures for property and equipment.
^8 Represents normalized borrowings from securitization transactions.



A-18
MARRIOTT VACATIONS WORLDWIDE CORPORATION
NON-GAAP FINANCIAL MEASURES
In our press release and schedules, and on the related conference call, we
report certain financial measures that are not prescribed or authorized by
United States generally accepted accounting principles ("GAAP"). We discuss
our reasons for reporting these non-GAAP financial measures below, and the
press release schedules reconcile the most directly comparable GAAP financial
measure to each non-GAAP financial measure that we report (identified by a
double asterisk ("**") on the preceding pages). Although we evaluate and
present these non-GAAP financial measures for the reasons described below,
please be aware that these non-GAAP financial measures have limitations and
should not be considered in isolation or as a substitute for revenues, net
income, earnings per share or any other comparable operating measure
prescribed by GAAP. In addition, these non-GAAP financial measures may be
calculated and / or presented differently than measures with the same or
similar names that are reported by other companies, and as a result, the
non-GAAP financial measures we report may not be comparable to those reported
by others.
Adjusted Net Income. We evaluate non-GAAP financial measures including
Adjusted Net Income, Adjusted EBITDA, and Adjusted Development Margin, that
exclude certain charges incurred in the 12 weeks and 24 weeks ended June 20,
2014 and June 14, 2013, exclude the gain on the disposition of a golf course
and adjacent undeveloped land in the 12 weeks and 24 weeks ended June 20,
2014, and exclude adjustments related to the extension of rescission periods
in our Europe segment ("Europe Rescission Adjustments") in the 12 weeks and 24
weeks ended June 14, 2013, because these non-GAAP financial measures allow for
period-over-period comparisons of our on-going core operations before the
impact of certain charges, gains and Europe Rescission Adjustments. These
non-GAAP financial measures also facilitate our comparison of results from our
on-going core operations before certain charges, gains and Europe Rescission
Adjustments with results from other vacation ownership companies.
 Certain Charges - 12 weeks and 24 weeks ended June 20, 2014. In our
Statement of Operations for the 12 weeks ended June 20, 2014, we recorded $8
million of net pre-tax income, which included $8 million of income associated
with the settlement of a dispute with a former service provider in our North
America segment recorded under the "Litigation settlement" caption and the
reversal of a $2 million reserve for remaining costs we expect to incur in
connection with our interest in an equity method investment in a joint venture
project in our North America segment recorded under the "Impairment reversals
on equity investment" caption, partially offset by $1 million of
organizational and separation related costs recorded under the "Organizational
and separation related" caption and a $1 million impairment charge associated
with a project in our North America segment recorded under the "Impairment"
caption. In our Statement of Operations for the 24 weeks ended June 20, 2014,
we recorded $5 million of net pre-tax income, which included $8 million of
income associated with the settlement of a dispute with a former service
provider in our North America segment recorded under the "Litigation
settlement" caption, partially offset by $2 million of organizational and
separation related costs recorded under the "Organizational and separation
related" caption and a $1 million impairment charge associated with a project
in our North America segment recorded under the "Impairment" caption.
 Certain Charges - 12 weeks and 24 weeks ended June 14, 2013. In our
Statement of Operations for the 12 weeks ended June 14, 2013, we recorded $4
million of net pre-tax charges, which included a $7 million increase in our
accrual for remaining costs we expect to incur in connection with our interest
in an equity method investment in a joint venture project in our North America
segment recorded under the "Impairment reversals on equity investment"
caption, $2 million of organizational and separation related costs recorded
under the "Organizational and separation related" caption, $1 million of
severance costs in our Europe segment recorded under the "Marketing and sales"
caption, and a $1 million pre-tax non-cash impairment charge related to a
leased golf course at a project in our Europe segment recorded under the
"Impairment" caption, partially offset by a $7 million gain for cash received
in payment of fully reserved receivables in connection with an equity method
investment in a joint venture project in our North America segment recorded
under the "Impairment reversals on equity investment" caption. In our
Statement of Operations for the 24 weeks ended June 14, 2013, we recorded $5
million of net pre-tax charges, which included a $7 million increase in our
accrual for remaining costs we expect to incur in connection with our interest
in an equity method investment in a joint venture project in our North America
segment recorded under the "Impairment reversals on equity investment"
caption, $3 million of organizational and separation related costs recorded
under the "Organizational and separation related" caption, $2 million of
severance costs in our Europe segment recorded under the "Marketing and sales"
caption, and a $1 million pre-tax non-cash impairment charge related to a
leased golf course at a project in our Europe segment recorded under the
"Impairment" caption, partially offset by a $7 million gain for cash received
in payment of fully reserved receivables in connection with an equity method
investment in a joint venture project in our North America segment recorded
under the "Impairment reversals on equity investment" caption, and a $1
million reversal of a previously recorded litigation settlement related to a
project in our North America segment, based upon an agreement to settle the
matter for an amount less than our accrual, recorded under the "Litigation
settlement" caption.



A-19
MARRIOTT VACATIONS WORLDWIDE CORPORATION
NON-GAAP FINANCIAL MEASURES
 Gain on the disposition of a golf course and adjacent undeveloped land -
12 weeks and 24 weeks ended June 20, 2014. In our Statement of Operations
for the 12 weeks ended June 20, 2014, we recorded a net $1 million gain
associated with the sale of a golf course and adjacent undeveloped land in our
North America segment under the "Gains and other income" caption. In our
Statement of Operations for the 24 weeks ended June 20, 2014, we recorded a
net $2 million gain associated with the sale of a golf course and adjacent
undeveloped land in our North America segment under the "Gains and other
income" caption.
 Europe Rescission Adjustments - 12 weeks and 24 weeks ended June 14,
2013. In the second quarter of 2013, during the course of an internal review
of certain sales documentation processes related to the sale of certain
vacation ownership interests in properties associated with our Europe segment,
we determined that the documentation we provided for certain sales of vacation
ownership products was not strictly compliant. As a result, in accordance
with applicable European regulation, the period of time during which
purchasers of such interests may rescind their purchases was extended. We
record revenues from the sale of vacation ownership products once the
rescission period has ended. Originally, we recorded revenues from these
sales of vacation ownership products based on the rescission periods in effect
assuming compliant documentation had been provided to the purchasers, rather
than the extended periods. As a result, we recognized revenue in incorrect
periods between fiscal years 2010 and 2013 and misstated revenues in our
previously filed consolidated financial statements. We provided compliant
documentation to purchasers for whom the extended rescission period had not
yet expired. As compliant documentation was subsequently provided as part of
the corrective actions we took, the extended rescission period for most of the
purchases at issue ended during the second quarter of 2013. To better reflect
our on-going core operations and allow for period-over-period comparisons, we
have excluded the impact associated with the extended rescission periods in
our adjusted financial measures.
   12 weeks ended June 14, 2013. In our Statement of Operations for
  the 12 weeks ended June 14, 2013, we recorded after-tax Europe Rescission
  Adjustments of $6 million, which included a $17 million pre-tax increase in
  Sale of vacation ownership products revenues, pre-tax increases of $6
  million and $2 million in Cost of vacation ownership products expense and
  Marketing and sales expense, respectively, associated with the change in
  revenues from the Sale of vacation ownership products, and a $3 million
  increase in the Provision for income taxes associated with the change in
  Income before income taxes.
   24 weeks ended June 14, 2013. In our Statement of Operations for
  the 24 weeks ended June 14, 2013, we recorded after-tax Europe Rescission
  Adjustments of $7 million, which included an $18 million pre-tax increase in
  Sale of vacation ownership products revenues, pre-tax increases of $6
  million and $2 million in Cost of vacation ownership products expense and
  Marketing and sales expense, respectively, associated with the change in
  revenues from the Sale of vacation ownership products, and a $3 million
  increase in the Provision for income taxes associated with the change in
  Income before income taxes.
Adjusted Development Margin (Adjusted Sale of Vacation Ownership Products Net
of Expenses). We evaluate Adjusted Development Margin (Adjusted Sale of
Vacation Ownership Products Net of Expenses) as an indicator of operating
performance. Adjusted Development Margin adjusts Sale of vacation ownership
products revenues for the impact of revenue reportability, includes
corresponding adjustments to Cost of vacation ownership products expense and
Marketing and sales expense associated with the change in revenues from the
Sale of vacation ownership products, and includes adjustments for certain
charges and Europe Rescission Adjustments as itemized in the discussion of
Adjusted Net Income above. We evaluate Adjusted Development Margin because it
allows for period-over-period comparisons of our on-going core operations
before the impact of revenue reportability, certain charges and Europe
Rescission Adjustments to our Development Margin.



A-20
MARRIOTT VACATIONS WORLDWIDE CORPORATION
NON-GAAP FINANCIAL MEASURES
Earnings Before Interest, Taxes, Depreciation and Amortization ("EBITDA").
EBITDA is defined as earnings, or net income, before interest expense
(excluding consumer financing interest expense), provision for income taxes,
depreciation and amortization. For purposes of our EBITDA calculation (which
previously adjusted for consumer financing interest expense), we do not adjust
for consumer financing interest expense because the associated debt is secured
by vacation ownership notes receivable that have been sold to bankruptcy
remote special purpose entities and is generally non-recourse to us. Further,
we consider consumer financing interest expense to be an operating expense of
our business. Beginning with the third quarter of 2013, we report consumer
financing interest expense separately from all other interest expense. As a
result, adjusted EBITDA as presented in these schedules is equivalent to the
non-GAAP financial measure adjusted EBITDA, as adjusted presented prior to the
third quarter of 2013.
We consider EBITDA to be an indicator of operating performance, and we use it
to measure our ability to service debt, fund capital expenditures and expand
our business. We also use it, as do analysts, lenders, investors and others,
because it excludes certain items that can vary widely across different
industries or among companies within the same industry. For example, interest
expense can be dependent on a company's capital structure, debt levels and
credit ratings. Accordingly, the impact of interest expense on earnings can
vary significantly among companies. The tax positions of companies can also
vary because of their differing abilities to take advantage of tax benefits
and because of the tax policies of the jurisdictions in which they operate.
As a result, effective tax rates and provision for income taxes can vary
considerably among companies. EBITDA also excludes depreciation and
amortization because companies utilize productive assets of different ages and
use different methods of both acquiring and depreciating productive assets.
These differences can result in considerable variability in the relative costs
of productive assets and the depreciation and amortization expense among
companies.
Adjusted EBITDA. We also evaluate Adjusted EBITDA, which reflects additional
adjustments for certain charges, gains and Europe Rescission Adjustments, as
itemized in the discussion of Adjusted Net Income above. We evaluate Adjusted
EBITDA as an indicator of operating performance because it allows for
period-over-period comparisons of our on-going core operations before the
impact of certain charges, gains and Europe Rescission Adjustments. Together,
EBITDA and Adjusted EBITDA facilitate our comparison of results from our
on-going core operations before the impact of certain charges, gains and
Europe Rescission Adjustments with results from other vacation ownership
companies.
Free Cash Flow. We also evaluate Free Cash Flow as a liquidity measure that
provides useful information to management and investors about the amount of
cash provided by operating activities after capital expenditures for property
and equipment, changes in restricted cash, and the borrowing and repayment
activity related to our securitizations. We consider Free Cash Flow to be a
liquidity measure that provides useful information to management and investors
about the amount of cash generated by the business that can be used for
strategic opportunities, including acquisitions and strengthening the balance
sheet. Analysis of Free Cash Flow also facilitates management's comparison of
our results with our competitors' results. We now include borrowings from
securitization transactions and repayment of debt related to securitizations
in our free cash flow. As a result, free cash flow as presented in this
schedule is equivalent to the non-GAAP financial measure adjusted free cash
flow presented prior to the fourth quarter of 2013, and adjusted free cash
flow presented in this schedule is equivalent to the non-GAAP financial
measure adjusted free cash flow, as adjusted presented prior to the fourth
quarter of 2013.
Adjusted Free Cash Flow. We also evaluate Adjusted Free Cash Flow, which
reflects additional adjustments for organizational and separation related,
litigation, and other cash charges, as referred to in the discussion of
Adjusted Net Income above. We evaluate Adjusted Free Cash Flow as a liquidity
measure that provides useful information to management and investors about the
amount of cash provided by operating activities after capital expenditures for
property and equipment, changes in restricted cash, and the borrowing and
repayment activity related to our securitizations, excluding the impact of
organizational and separation related, litigation, and other cash charges. We
consider Adjusted Free Cash Flow to be a liquidity measure that provides
useful information to management and investors about the amount of cash
generated by the business that can be used for strategic opportunities,
including acquisitions and strengthening the balance sheet. Analysis of
Adjusted Free Cash Flow also facilitates management's comparison of our
results with our competitors' results.
Normalized Adjusted Free Cash Flow. We also evaluate Normalized Adjusted Free
Cash Flow as a liquidity measure that provides useful information to
management and investors about the amount of cash provided by operating
activities after capital expenditures for property and equipment, changes in
restricted cash, the borrowing and repayment activity related to our
securitizations, and adjustments to remove the impact of cash flow items not
expected to occur on a regular basis. Adjustments eliminate the impact of
excess cash taxes, payments for Marriott Rewards Points issued prior to the
Spin-off, payments for organizational and separation related efforts,
litigation cash settlements and other working capital changes. We consider
Normalized Adjusted Free Cash Flow to be a liquidity measure that provides
useful information to management and investors about the amount of cash
generated by the business that can be used for strategic opportunities,
including acquisitions and strengthening the balance sheet. Analysis of
Normalized Adjusted Free Cash Flow also facilitates management's comparison of
our results with our competitors' results.



A-21
MARRIOTT VACATIONS WORLDWIDE CORPORATION
INTERIM CONSOLIDATED BALANCE SHEETS
(In millions, except per share amounts)
                                             (Unaudited)          January 3,
                                             June 20, 2014        2014
ASSETS
Cash and cash equivalents                    $           $     
                                             170                  200
Restricted cash (including $21 and $34 from  42                   86
VIEs, respectively)
Accounts and contracts receivable (including 121                  109
$4 and $5 from VIEs, respectively)
Vacation ownership notes receivable
(including $621 and $719 from VIEs,          920                  970
respectively)
Inventory                                    826                  870
Property and equipment                       215                  254
Other                                       116                  143
 Total Assets                           $             $    
                                             2,410               2,632
LIABILITIES AND EQUITY
Accounts payable                             $           $     
                                              75                 129
Advance deposits                             55                   48
Accrued liabilities (including $0 and $1     168                  185
from VIEs, respectively)
Deferred revenue                             19                   19
Payroll and benefits liability               67                   82
Liability for Marriott Rewards customer      100                  114
loyalty program
Deferred compensation liability              39                   37
Mandatorily redeemable preferred stock of    40                   40
consolidated subsidiary
Debt (including $566 and $674 from VIEs,     570                  678
respectively)
Other                                        45                   31
Deferred taxes                               58                   60
 Total Liabilities                      1,236                1,423
Preferred stock - $.01 par value; 2,000,000
shares authorized; none issued or            -                    -
outstanding
Common stock - $.01 par value; 100,000,000
shares authorized; 35,878,433 and 35,637,765 -                    -
sharesissued, respectively
Treasury stock - at cost; 2,175,224and       (115)                (26)
505,023 shares, respectively
Additional paid-in capital                   1,129                1,130
Accumulated other comprehensive income       23                   23
Retained earnings                            137                  82
 Total Equity                           1,174                1,209
 Total Liabilities and Equity           $             $    
                                             2,410               2,632
The abbreviation VIEs above means Variable
Interest Entities.



 A-22
MARRIOTT VACATIONS WORLDWIDE CORPORATION
INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS
(In millions)
(Unaudited)
                                                  

                                                  24 weeks ended
                                                  June 20, 2014  June 14, 2013
OPERATING ACTIVITIES
Net income                                      $55            $49
Adjustments to reconcile net income to net cash
provided by operating activities:
    Depreciation                                9              11
    Amortization of debt issuance costs         3              3
    Provision for loan losses                   15             18
    Share-based compensation                    6              6
    Gain on disposal of property and equipment,  (2)            (1)
    net
    Deferred income taxes                       (5)            (1)
    Impairment charges                          1              1
    Net change in assets and liabilities:
    Accounts and contracts receivable             (12)           (1)
    Notes receivable originations                 (104)          (100)
    Notes receivable collections                  137            148
    Inventory                                     37             22
    Other assets                                  27             -
    Accounts payable, advance deposits and        (56)           (83)
    accrued liabilities
    Liability for Marriott Rewards customer       (14)           (25)
    loyalty program
    Deferred revenue                              -              (10)
    Payroll and benefit liabilities               (15)           (7)
    Deferred compensation liability               2              (8)
    Other liabilities                             15             12
    Other, net                                  (1)            -
 Net cash provided by operating   98             34
activities
INVESTING ACTIVITIES
    Capital expenditures for property and        (3)            (7)
    equipment (excluding inventory)
    Decrease in restricted cash                 44             4
    Dispositions, net                           33             3
 Net cash provided by investing   74             -
activities
FINANCING ACTIVITIES
    Borrowings from securitization               23             111
    transactions
    Repayment of debt related to securitization  (131)          (142)
    transactions
    Borrowings on Revolving Corporate Credit     -              25
    Facility
    Repayment of Revolving Corporate Credit      -              (25)
    Facility
    Purchase of treasury stock                  (89)           2
    Proceeds from stock option exercises        1              -
    Payment of withholding taxes on vesting of   (6)            (4)
    restricted stock units
 Net cash used in financing       (202)          (33)
activities
    Effect of changes in exchange rates on cash  -              -
    and cash equivalents
(DECREASE) INCREASE IN CASH AND CASH             (30)           1
EQUIVALENTS
CASH AND CASH EQUIVALENTS, beginning of period  200            103
CASH AND CASH EQUIVALENTS, end of period        $170           $104



Marriott Vacations Worldwide Corporation.

Logo- http://photos.prnewswire.com/prnh/20130702/CG40568LOGO

SOURCE Marriott Vacations Worldwide Corporation

Website: http://www.marriottvacationsworldwide.com
Contact: Jeff Hansen, Investor Relations, Marriott Vacations Worldwide
Corporation, 407.206.6149, Jeff.Hansen@mvwc.com, or Ed Kinney, Corporate
Communications, Marriott Vacations Worldwide Corporation, 407.206.6278,
Ed.Kinney@mvwc.com
 
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