Business Context and Reporting Period
Company: Marriott Vacations Worldwide Corporation
Filing Type: Form 8-K (Current Report)
Date of Report: June 5, 2018
Reporting Period: The filing addresses the recasting of consolidated financial statements for the three fiscal years ended December 31, 2017.
Key Financial Metrics
This filing does not contain specific numerical values for revenue, profit, cash flow, margins, debt, or liquidity. The document serves as a notice to recast previously reported financial data rather than reporting new operational results.
Material Changes Versus Prior Period
The primary material change is the retrospective application of Accounting Standards Update No. 2014-09 ("Revenue from Contracts with Customers" or Topic 606). The Company has recast its consolidated financial statements for the years ended December 31, 2015, 2016, and 2017 to reflect this new standard. The Company adopted ASU 2014-09 effective January 1, 2018, utilizing the full retrospective method.
Guidance, Outlook, and Management Commentary
Management Commentary: The filing explains that ASU 2014-09 provides a single, comprehensive revenue recognition model replacing most existing guidance. It requires recognizing revenue to depict the transfer of promised goods or services in an amount reflecting the consideration the entity expects to be entitled to. The standard also mandates enhanced disclosures.
Exhibits: The recast consolidated financial statements and related notes are filed as Exhibit 99.1. Consent of Ernst & Young LLP is filed as Exhibit 23.1.
Important Facts for Investor Verification
- Verify the specific impact of the ASU 2014-09 adoption on historical revenue and earnings by reviewing the recast financial statements in Exhibit 99.1.
- Confirm that comparative results in the Q1 2018 Form 10-Q are now reported under the new revenue recognition standard.
- Note that the filing is a procedural update to align historical data with current accounting standards, not a report of new business events or operational changes.