Financing Receivables

9 Months Ended

12 Months Ended

Sep. 30, 2014

Dec. 31, 2013

Note 5: Financing Receivables

Financing receivables were as follows:


	September 30, 2014
	Securitized Timeshare		Unsecuritized Timeshare		Other		Total
	(in millions)
Financing receivables	$	459	$	412	$	24	$	895
Less: allowance		(26)		(54)		(1)		(81)

		433		358		23		814

Current portion of financing receivables		68		63		2		133
Less: allowance		(4)		(9)		—		(13)

		64		54		2		120

Total financing receivables	$	497	$	412	$	25	$	934


	December 31, 2013
	Securitized Timeshare		Unsecuritized Timeshare		Other		Total
	(in millions)
Financing receivables	$	205	$	654	$	49	$	908
Less: allowance		(11)		(67)		(1)		(79)

		194		587		48		829

Current portion of financing receivables		29		106		—		135
Less: allowance		(2)		(12)		—		(14)

		27		94		—		121

Total financing receivables	$	221	$	681	$	48	$	950

Timeshare Financing Receivables

As of September 30, 2014, we had 51,923 timeshare financing receivables with interest rates ranging from zero percent to 20.50 percent, a weighted average interest rate of 12.16 percent, a weighted average remaining term of 7.4 years and maturities through 2025. As of September 30, 2014 and December 31, 2013, we had ceased accruing interest on timeshare financing receivables with aggregate principal balances of $31 million and $32 million, respectively.

In June 2014, we completed a securitization of approximately $357 million of gross timeshare financing receivables and issued approximately $304 million of 1.77 percent notes and approximately $46 million of 2.07 percent notes, which have a stated maturity date in November 2026. The securitization transaction did not qualify as a sale for accounting purposes and, accordingly, no gain or loss was recognized. In August 2013, we completed a securitization of approximately $255 million of gross timeshare financing receivables and issued $250 million of 2.28 percent notes that have a stated maturity date in January 2026. The proceeds from both transactions are presented as debt (collectively, the “Securitized Timeshare Debt”). See Note 8: “Debt” for additional details.

In May 2013, we entered into a revolving non-recourse timeshare financing receivables credit facility (“Timeshare Facility”) that is secured by certain of our timeshare financing receivables. As of September 30, 2014 and December 31, 2013, we had $164 million and $492 million, respectively, of gross timeshare financing receivables secured under our Timeshare Facility.

The changes in our allowance for uncollectible timeshare financing receivables were as follows:


	Nine Months Ended September 30,
	2014		2013
	(in millions)
Beginning balance	$	92	$	93
Write-offs		(24)		(19)
Provision for uncollectibles on sales		25		20

Ending balance	$	93	$	94

Our timeshare financing receivables as of September 30, 2014 mature as follows:


	Securitized Timeshare		Unsecuritized Timeshare
Year	(in millions)
2014 (remaining)	$	17	$	27
2015		68		48
2016		71		51
2017		73		52
2018		72		52
Thereafter		226		245

		527		475
Less: allowance		(30)		(63)

	$	497	$	412

The following table details an aged analysis of our gross timeshare financing receivables balance:


	September 30, 2014		December 31, 2013
	(in millions)
Current	$	958	$	948
30 - 89 days past due		13		14
90 - 119 days past due		3		4
120 days and greater past due		28		28

	$	1,002	$	994

Note 7: Financing Receivables

Financing receivables were as follows:


	December 31, 2013
	Securitized Timeshare		Unsecuritized Timeshare		Other		Total
	(in millions)
Financing receivables	$	205	$	654	$	49	$	908
Less: allowance		(11)		(67)		(1)		(79)

		194		587		48		829

Current portion of financing receivables		29		106		—		135
Less: allowance		(2)		(12)		—		(14)

		27		94		—		121

Total financing receivables	$	221	$	681	$	48	$	950


	December 31, 2012
	Unsecuritized Timeshare		Other		Total
	(in millions)
Financing receivables	$	853	$	44	$	897
Less: allowance		(81)		(1)		(82)

		772		43		815

Current portion of financing receivables		131		—		131
Less: allowance		(12)		—		(12)

		119		—		119

Total financing receivables	$	891	$	43	$	934

Timeshare Financing Receivables

In August 2013, we completed a securitization of approximately $255 million of gross timeshare financing receivables and issued $250 million in aggregate principal amount of 2.28 percent notes with maturities of January 2026 (“Securitized Timeshare Debt”). The securitization transaction did not qualify as a sale for accounting purposes and, accordingly, no gain or loss was recognized and the proceeds were presented as debt. See Note 13: “Debt” for additional details.

In May 2013, we entered into a revolving non-recourse timeshare financing receivables credit facility (“Timeshare Facility”) that is secured by certain of our timeshare financing receivables. As of December 31, 2013, we had $492 million of gross timeshare financing receivables secured under our Timeshare Facility. See Note 13: “Debt” for additional details.

As of December 31, 2013, we had 53,123 timeshare notes outstanding, including those which are collateral for our Securitized Timeshare Debt, with interest rates ranging from zero to 20.50 percent, an average interest rate of 11.97 percent, a weighted average remaining term of 7.5 years and maturities through 2025. As of December 31, 2013 and 2012, we had ceased accruing interest on timeshare notes with aggregate principal balances of $32 million and $30 million, respectively.

The changes in our allowance for uncollectible timeshare financing receivables were as follows:


	(in millions)
Balance as of December 31, 2010	$	101
Write-offs		(36)
Provision for uncollectibles on sales		32

Balance as of December 31, 2011		97
Write-offs		(33)
Provision for uncollectibles on sales		29

Balance as of December 31, 2012		93
Write-offs		(25)
Provision for uncollectibles on sales		24

Balance as of December 31, 2013	$	92

Our timeshare financing receivables as of December 31, 2013 mature as follows:


	Securitized Timeshare		Unsecuritized Timeshare
Year	(in millions)
2014	$	29	$	106
2015		29		87
2016		30		90
2017		30		92
2018		30		89
Thereafter		86		296

		234		760
Less: allowance		(13)		(79)

	$	221	$	681

The following table details an aged analysis of our gross timeshare financing receivables balance:


	December 31,
	2013		2012
	(in millions)
Current	$	948	$	940
30 - 89 days past due		14		14
90 - 119 days past due		4		4
120 days and greater past due		28		26

	$	994	$	984