Marriott Vacations Worldwide (VAC) risk factors, FY2025 10-K

Risks related to our business and industry

1. 01Our business may be adversely affected by factors that disrupt or deter travel
2. 02Uncertainty in the current global macroeconomic environment created by rapid governmental policy and regulatory changes could negatively impact our businessNew
3. 03Significant inflation, higher interest rates or deflation could adversely affect our business and financial results41% rewritten
4. 04Our results of operations can be adversely affected by labor shortages, turnover and labor cost increases
5. 05Future global or regional health concerns, outbreaks, and pandemics (each a “Health Crisis”) may have serious adverse effects on our business, financial condition, cash flows, and results of operations for an unknown period of time100% rewritten
6. 06Our business is extensively regulated, and any failure to comply with applicable laws could materially adversely affect our business
7. 07Changes in privacy laws could adversely affect our ability to market our products effectively
8. 08Failure to maintain the integrity of internal or customer data or to protect our information systems from cyber-attacks could disrupt our business, damage our reputation, and subject us to costs, fines or lawsuits56% rewritten
9. 09Our use of AI technologies may not be successful and may present business, compliance, and reputational risks
10. 10Our international operations expose us to risks that could negatively impact our financial results or disrupt our business
11. 11Inadequate or failed technologies could lead to interruptions in our operations and materially adversely affect our business, financial position, results of operations or cash flows
12. 12If third-parties do not comply with their contractual obligations to us our financial condition, results of operations, internal controls over financial reporting and stock price could be materially and adversely affectedNew
13. 13The industries in which our businesses operate are competitive, which may impact our ability to compete successfully
14. 14Negative public perception regarding our industry could have an adverse effect on our operations
15. 15Spanish court rulings voiding certain timeshare contracts have increased our exposure to litigation that may materially adversely affect our business and financial condition66% rewritten
16. 16Changes in tax regulations or their interpretation could negatively impact our cash flows and results of operations
17. 17Concentration of some of our resorts, sales centers and exchange destinations in particular geographic areas exposes our business to the effects of natural or man-made disasters or adverse economic conditions in these areas
18. 18If we are not able to successfully identify, finance, integrate and manage costs related to acquisitions, our business operations and financial position could be adversely affected
19. 19Our use of different estimates and assumptions in the application of our accounting policies could result in material changes to our reported financial condition and results of operations, and changes in accounting standards or their interpretation could significantly impact our reported results of operations29% rewritten
20. 20The growth of our business and execution of our business strategies depend on the services of our senior management and our associates
21. 21Increasing scrutiny and evolving expectations from customers, regulators, investors, and other stakeholders with respect to our environmental, social and governance practices may increase our costs or expose us to new or additional risks39% rewritten

Risks related to our vacation ownership business

1. 22The termination of our license agreements with Marriott International or Hyatt, or our rights to use their trademarks at our existing or future properties, could materially harm our business20% rewritten
2. 23Deterioration in the quality or reputation of the brands associated with our portfolio could adversely affect our market share, reputation, business, financial condition and results of operations
3. 24Marriott International or Hyatt could compete with our vacation ownership business in the future
4. 25If a branded hotel property co-located with one of our resorts ceases to be affiliated with the same brand as our resort or a related brand, our business could be harmed
5. 26The sale of VOIs in the secondary market by existing owners could cause our sales revenues, margins, and results of operations to decline
6. 27Borrower defaults on the vacation ownership notes receivable our business generates could reduce our results of operations and cash flows
7. 28We may not have inventory available for sale when needed or we may have excess inventory
8. 29Our points-based product forms expose us to an increased risk of temporary inventory depletion
9. 30Our development activities expose us to project cost and completion risks
10. 31Our resort management business may be adversely affected by the loss of management contracts, failure of resorts to comply with brand standards, increased maintenance fees and disagreements with owners
11. 32Damage to, or other potential losses involving, properties that we own or manage may not be covered by insurance

Risks related to our exchange and third-party management business

1. 33Any adverse changes in our relationships with developers, members and others could adversely affect our Exchange & Third-Party Management business, financial condition, and results of operations47% rewritten
2. 34Insufficient availability of exchange inventory may adversely affect our results of operations

Risks related to our indebtedness

1. 35Our indebtedness may restrict our operations52% rewritten
2. 36leverage ratio and maintain a minimum interest coverage ratio. These restrictions could restrict our flexibility to react to changes in our businesses, industries and economic conditions and increase borrowing costsNew
3. 37If we are unable to comply with our debt agreements, or to raise additional capital when needed, our business, cash flow, liquidity, and results of operations could be harmed
4. 38We may incur substantially more debt, which could exacerbate further the risks associated with our leverage28% rewritten
5. 39If the default rates or other credit metrics underlying our vacation ownership notes receivable deteriorate, our vacation ownership notes receivable securitization program and VOI financing program could be adversely affected
6. 40We are subject to risks relating to our convertible notes63% rewritten
7. 41We are subject to risks relating to our convertible note hedges and warrants

Risks related to ownership of our common stock

1. 42Our stock price may be volatile and your investment in our common stock could lose valueNew
2. 43Our ability to pay dividends on our stock is limited
3. 44Our share repurchase program may not enhance long-term stockholder value and could increase the volatility of the market price of our common stock and diminish our cash
4. 45Anti-takeover provisions in our organizational documents, Delaware law and in certain of our agreements could delay or prevent a change in control