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VARIABLE INTEREST ENTITIES | 3 Months Ended
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Mar. 31, 2025
Organization, Consolidation and Presentation of Financial Statements [Abstract] |
VARIABLE INTEREST ENTITIES |
14. | VARIABLE INTEREST ENTITIES
Variable Interest Entities Related to Our Vacation Ownership Notes Receivable Securitizations The following table shows consolidated assets, which are collateral for the obligations of the VIEs related to our vacation ownership notes receivable securitizations, and consolidated liabilities included on our Balance Sheet at March 31, 2025:
($ in millions) | Vacation Ownership Notes Receivable Securitizations |  | Warehouse Credit Facility |  | Total
Consolidated Assets |  |  |  |  |
Vacation ownership notes receivable, net of reserves | $ | 1,632 |  |  | $ | 327 |  |  | $ | 1,959 |
Interest receivable | 13 |  |  | 2 |  |  | 15 |
Restricted cash | 76 |  |  | 19 |  |  | 95 |
Total | $ | 1,721 |  |  | $ | 348 |  |  | $ | 2,069 |
Consolidated Liabilities |  |  |  |  |
Interest payable | $ | 3 |  |  | $ | 1 |  |  | $ | 4 |
Securitized debt | 1,856 |  |  | 315 |  |  | 2,171 |
Total | $ | 1,859 |  |  | $ | 316 |  |  | $ | 2,175 |
The following table shows the interest income and expense recognized as a result of our involvement with these VIEs during the first quarter of 2025:
($ in millions) | Vacation Ownership Notes Receivable Securitizations |  | Warehouse Credit Facility |  | Total
Interest income | $ | 64 |  |  | $ | 10 |  |  | $ | 74 |
Interest expense | $ | 23 |  |  | $ | 3 |  |  | $ | 26 |
Debt issuance cost amortization | $ | 2 |  |  | $ | 1 |  |  | $ | 3 |
The following table shows cash flows between us and the vacation ownership notes receivable securitization VIEs:
| Three Months Ended
($ in millions) | March 31, 2025 |  | March 31, 2024
Cash Inflows |  |  |
Net proceeds from vacation ownership notes receivable securitizations | $ | — |  |  | $ | 425 |
Principal receipts | 141 |  |  | 141 |
Interest receipts | 65 |  |  | 65 |
Reserve release | — |  |  | 60 |
Total | 206 |  |  | 691 |
Cash Outflows |  |  |
Principal payments | (140) |  |  | (132) |
Voluntary repurchases of defaulted vacation ownership notes receivable | (43) |  |  | (35) |
Voluntary clean-up call | — |  |  | (29) |
Interest payments | (23) |  |  | (21) |
Funding of restricted cash | — |  |  | (112) |
Total | (206) |  |  | (329) |
Net Cash Flows | $ | — |  |  | $ | 362 |
The following table shows cash flows between us and the Warehouse Credit Facility VIE:
| Three Months Ended
($ in millions) | March 31, 2025 |  | March 31, 2024
Cash Inflows |  |  |
Proceeds from vacation ownership notes receivable securitizations | $ | 206 |  |  | $ | 94 |
Principal receipts | 17 |  |  | 10 |
Interest receipts | 9 |  |  | 6 |
Reserve release | — |  |  | 6 |
Total | 232 |  |  | 116 |
Cash Outflows |  |  |
Principal payments | (14) |  |  | (7) |
Voluntary repurchases of defaulted vacation ownership notes receivable | — |  |  | (2) |
Repayment of Warehouse Credit Facility | — |  |  | (236) |
Interest payments | (3) |  |  | (3) |
Funding of restricted cash | (9) |  |  | (2) |
Total | (26) |  |  | (250) |
Net Cash Flows | $ | 206 |  |  | $ | (134) |
Under the terms of our vacation ownership notes receivable securitizations, we have the right to substitute loans for, or repurchase, defaulted loans at our option, subject to certain limitations. Our maximum exposure to potential loss relating to the special purpose entities that purchase, sell, and own these vacation ownership notes receivable is the overcollateralization amount (the difference between the loan collateral balance and the balance of the outstanding vacation ownership notes receivable), plus cash reserves and any residual interest in future cash flows from collateral. Other Variable Interest Entities We have a commitment to purchase a property located in Waikiki, Hawaii. The property is held by a VIE for which we are not the primary beneficiary. We do not control the decisions that most significantly impact the economic performance of the entity as we cannot prevent the variable interest entity from selling the property at a higher price. Accordingly, we have not consolidated the VIE. We expect to acquire the property over time and as of March 31, 2025, we expect to make payments for the property as follows: $82 million in 2025 and $41 million in 2026. As of March 31, 2025, our Balance Sheet reflected $1 million in Accounts and contracts receivable, net, including a note receivable of less than $1 million, $12 million in Property and equipment, net, and $1 million in the Other line within liabilities on our Balance Sheet. We believe that our maximum exposure to loss as a result of our involvement with this VIE is approximately $16 million as of March 31, 2025. During the first quarter of 2024, we acquired retail space located at our Marriott Vacation Club, Waikiki property for $48 million. The transaction was accounted for as an asset acquisition and classified as held-for-sale and included in Other assets as of March 31, 2025. Deferred Compensation Plan We consolidate the liabilities of the Deferred Compensation Plan and the related assets, which consist of the COLI policies held in a rabbi trust. The rabbi trust is considered a VIE. We are the primary beneficiary of the rabbi trust because we direct the activities of the trust and are the beneficiary of the trust. At March 31, 2025 and December 31, 2024, the value of the assets held in the rabbi trust was $130 million and $131 million, respectively, and was included in the Other line within assets on our Balance Sheets.

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- Definition The entire disclosure for a variable interest entity (VIE), including but not limited to, judgments and assumptions in determining whether to consolidate and in identifying the primary beneficiary, gain (loss) recognized on the initial consolidation of the VIE, terms of arrangements, amounts and classification of the VIE's assets and liabilities, and the entity's maximum exposure to loss. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 810 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/810/tableOfContent + Details
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