Summary
Marriott International, Inc. (MAR) announced via an 8-K filing on May 25, 2011, that it anticipates significant cash tax benefits stemming from the anticipated spin-off of its timeshare business. These benefits are expected to materialize over several years and are related to the value of the timeshare assets. This comes after Marriott recorded substantial impairment charges totaling $752 million in 2009, largely impacting its luxury fractional and residential timeshare operations. Further details regarding these tax benefits are expected to be disclosed once the timeshare business files its Form 10 registration statement, which Marriott has targeted for late June 2011. Investors should note that these statements regarding tax benefits and the Form 10 filing timeline are considered forward-looking and are subject to various risks and uncertainties that could impact the planned spin-off.
Key Highlights
- 1Anticipated spin-off of Marriott's timeshare business.
- 2Expectation of several hundred million dollars in cash tax benefits over time from the spin-off.
- 3Tax benefits are related to the value of the timeshare business.
- 4Previous recording of $752 million in timeshare strategy impairment charges in 2009.
- 5Target date for the timeshare business to file its Form 10 registration statement is late June 2011.
- 6Disclosure includes forward-looking statements with inherent risks and uncertainties.