MARRIOTT VACATIONS WORLDWIDE Corp 10-Q

Item 3. Quantitative and Qualitative Disclosures About Market Risk Our exposure to market risk has not changed materially from that disclosed in Part I, Item 7A of the 2023 Annual Report, other than as set forth below. We manage the interest rate risk on our corporate debt through the use of a combination of fixed-rate debt and may use interest rate hedges to fix a portion of our variable-rate debt. At March 31, 2024, after considering the impact of interest rate hedge agreements and excluding finance leases, the interest rate applicable to approximately 78% of our corporate debt was effectively fixed and the interest rate applicable to the remaining 22% (approximately $644 million) was variable. Excluding the impact of the interest rate hedges, 68% of our corporate debt was fixed as of March 31, 2024. Assuming we had no outstanding hedging arrangements and no outstanding balance on our Revolving Corporate Credit Facility, a 100 basis point increase in the underlying benchmark rate on our variable-rate debt at March 31, 2024 would result in an annual increase in cash interest of approximately $8 million. The following table presents the scheduled maturities and the total fair value as of March 31, 2024 for our financial instruments that are impacted by market risks: ($ in millions) Average Interest Rate Maturities by Period Remainder of 2024 2025 2026 2027 2028 Thereafter Total Carrying Value Total Fair Value Assets – Maturities represent expected principal receipts; fair values represent assets Vacation ownership notes receivable — non-securitized 12.0% $ 55 $ 51 $ 46 $ 43 $ 35 $ 192 $ 422 $ 424 Vacation ownership notes receivable — securitized 13.4% $ 126 $ 173 $ 179 $ 181 $ 181 $ 1,074 $ 1,914 $ 1,995 Contracts receivable for financed VOI sales, net 12.9% $ 3 $ 4 $ 4 $ 4 $ 4 $ 29 $ 48 $ 48 Liabilities – Maturities represent expected principal payments; fair values represent liabilities Securitized debt 4.7% $ (143) $ (194) $ (201) $ (204) $ (202) $ (1,261) $ (2,205) $ (2,167) Term Loan (1) 7.2% $ — $ (784) $ — $ — $ — $ — $ (784) $ (781) Revolving Corporate Credit Facility 7.2% $ — $ — $ — $ (160) $ — $ — $ (160) $ (160) Senior notes 2028 Notes 4.8% $ — $ — $ — $ — $ (350) $ — $ (350) $ (329) 2029 Notes 4.5% $ — $ — $ — $ — $ — $ (500) $ (500) $ (457) 2026 Convertible Notes —% $ — $ — $ (575) $ — $ — $ — $ (575) $ (543) 2027 Convertible Notes 3.3% $ — $ — $ — $ (575) $ — $ — $ (575) $ (540) (1) In April 2024, we amended the Corporate Credit Facility to provide for a new $800 million term loan facility that is scheduled to mature on April 1, 2031. The proceeds were used to refinance in full the Term Loan, which was scheduled to mature on August 31, 2025.