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VARIABLE INTEREST ENTITIES (Tables)

9 Months Ended

Sep. 30, 2020

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Classifications of consolidated vie assets and liabilities

The following table shows consolidated assets, which are collateral for the obligations of these VIEs, and consolidated liabilities included on our Balance Sheet at September 30, 2020:


($ in millions)	Vacation Ownership Notes Receivable Securitizations		Warehouse Credit Facility		Total
Consolidated Assets
Vacation ownership notes receivable, net of reserves	$	1,650	$	—	$	1,650
Interest receivable	12		—		12
Restricted cash	69		—		69
Total	$	1,731	$	—	$	1,731
Consolidated Liabilities
Interest payable	$	2	$	—	$	2
Securitized Debt	1,769		—		1,769
Total	$	1,771	$	—	$	1,771

Interest income and expense recognized as a result of our involvement with variable interest entities

The following table shows the interest income and expense recognized as a result of our involvement with these VIEs during the third quarter of 2020:


($ in millions)	Vacation Ownership Notes Receivable Securitizations		Warehouse Credit Facility		Total
Interest income	$	59	$	—	$	59
Interest expense to investors	$	14	$	1	$	15
Debt issuance cost amortization	$	1	$	1	$	2
Administrative expenses	$	1	$	—	$	1

The following table shows the interest income and expense recognized as a result of our involvement with these VIEs during the first three quarters of 2020:


($ in millions)	Vacation Ownership Notes Receivable Securitizations		Warehouse Credit Facility		Total
Interest income	$	168	$	18	$	186
Interest expense to investors	$	39	$	4	$	43
Debt issuance cost amortization	$	5	$	1	$	6
Administrative expenses	$	1	$	—	$	1

Cash flows between company and variable interest entities

The following table shows cash flows between us and the vacation ownership notes receivable securitization VIEs:


	Nine Months Ended
($ in millions)	September 30, 2020		September 30, 2019
Cash Inflows
Net proceeds from vacation ownership notes receivable securitizations	$	371	$	445
Principal receipts	360		355
Interest receipts	166		156
Reserve release	16		107
Total	913		1,063
Cash Outflows
Principal to investors	(370)		(379)
Voluntary repurchases of defaulted vacation ownership notes receivable	(69)		(35)
Voluntary clean-up call	(18)		(19)
Interest to investors	(37)		(36)
Funding of restricted cash	(20)		(93)
Total	(514)		(562)
Net Cash Flows	$	399	$	501

The following table shows cash flows between us and the Warehouse Credit Facility VIE:


	Nine Months Ended
($ in millions)	September 30, 2020		September 30, 2019
Cash Inflows
Proceeds from vacation ownership notes receivable securitizations	$	315	$	181
Principal receipts	34		14
Interest receipts	17		13
Reserve release	2		1
Total	368		209
Cash Outflows
Principal to investors	(33)		(12)
Voluntary repurchases of defaulted vacation ownership notes receivable	(3)		—
Repayment of Warehouse Credit Facility	(300)		(228)
Interest to investors	(4)		(4)
Funding of restricted cash	(2)		(1)
Total	(342)		(245)
Net Cash Flows	$	26	$	(36)

- Definition

Tabular disclosure of the significant judgments and assumptions made in determining whether a variable interest (as defined) held by the entity requires the variable interest entity (VIE) (as defined) to be consolidated and (or) disclose information about its involvement with the VIE, individually or in aggregate (as applicable); the nature of restrictions, if any, on the consolidated VIE's assets and on the settlement of its liabilities reported by an entity in its statement of financial position, including the carrying amounts of such assets and liabilities; the nature of, and changes in, the risks associated with involvement in the VIE; how involvement with the VIE affects the entity's financial position, financial performance, and cash flows; the lack of recourse if creditors (or beneficial interest holders) of the consolidated VIE have no recourse to the general credit of the primary beneficiary (if applicable); the terms of arrangements, giving consideration to both explicit arrangements and implicit variable interests, if any, that could require the entity to provide financial support to the VIE, including events or circumstances that could expose the entity to a loss; the methodology used by the entity for determining whether or not it is the primary beneficiary of the variable interest entity; the significant factors considered and judgments made in determining that the power to direct the activities of a VIE that most significantly impact the VIE's economic performance are shared (as defined); the carrying amounts and classification of assets and liabilities of the VIE included in the statement of financial position; the entity's maximum exposure to loss, if any, as a result of its involvement with the VIE, including how the maximum exposure is determined and significant sources of the entity's exposure to the VIE; a comparison of the carrying amounts of the assets and liabilities and the entity's maximum exposure to loss; information about any liquidity arrangements, guarantees, and (or) other commitments by third parties that may affect the fair value or risk of the entity's variable interest in the VIE; whether or not the entity has provided financial support or other support (explicitly or implicitly) to the VIE that it was not previously contractually required to provide or whether the entity intends to provide that support, including the type and amount of the support and the primary reasons for providing the support; and supplemental information the entity determines necessary to provide.

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