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 2024 Annual Report, other than as set forth below. We manage the interest rate risk on our corporate debt through the use of fixed-rate debt and may also use interest rate hedges to fix a portion of our variable-rate debt. At March 31, 2025, the interest rate applicable to 67% (approximately $2 billion) of our corporate debt, excluding finance leases, was fixed and the interest rate applicable to the remaining 33% (approximately $984 million) was variable. Assuming we had no outstanding balance under our Revolving Corporate Credit Facility, a 100 basis point increase in the underlying benchmark rate on our variable-rate debt at March 31, 2025 would result in an annual increase in cash interest of approximately $8 million. The following table presents the scheduled maturities and the total fair value as of March 31, 2025 for our financial instruments that are impacted by market risks: ($ in millions) Average Interest Rate Maturities by Period Remainder of 2025 2026 2027 2028 2029 Thereafter Total Carrying Value Total Fair Value Assets – Maturities represent expected principal receipts; fair values represent assets Vacation ownership notes receivable — non-securitized 11.5% $ 70 $ 66 $ 59 $ 50 $ 41 $ 201 $ 487 $ 489 Vacation ownership notes receivable — securitized 13.4% $ 125 $ 173 $ 176 $ 177 $ 175 $ 1,133 $ 1,959 $ 2,021 Contracts receivable for financed VOI sales, net 12.3% $ 3 $ 4 $ 4 $ 4 $ 5 $ 30 $ 50 $ 50 Liabilities (1) – Maturities represent expected principal payments; fair values represent liabilities Securitized Debt 4.8% $ (154) $ (183) $ (457) $ (170) $ (168) $ (1,039) $ (2,171) $ (2,166) Term Loan 6.6% $ (6) $ (8) $ (8) $ (8) $ (8) $ (756) $ (794) $ (792) Revolving Corporate Credit Facility 5.8% $ — $ — $ — $ — $ — $ (190) $ (190) $ (190) Senior Notes 2028 Notes 4.8% $ — $ — $ — $ (350) $ — $ — $ (350) $ (333) 2029 Notes 4.5% $ — $ — $ — $ — $ (500) $ — $ (500) $ (460) 2026 Convertible Notes 0.0% $ — $ (575) $ — $ — $ — $ — $ (575) $ (551) 2027 Convertible Notes 3.3% $ — $ — $ (575) $ — $ — $ — $ (575) $ (533) (1) During the first quarter of 2025, we amended the Corporate Credit Facility to provide for a Delayed-Draw Term Loan that is only available to finance the redemption or repurchase of our 2026 Convertible Notes, which are due January 15, 2026. As of March 31, 2025, there were no outstanding borrowings on the Delayed-Draw Term Loan. See Footnote 11 “Debt” to our Financial Statements for further information. 50 Table of Contents