Accounts Receivable

9 Months Ended

Sep. 30, 2021

Note 6: Accounts Receivable

The following table represents our accounts receivable, net of allowance for credit losses. Accounts receivable within the scope of ASC 326 are measured at amortized cost.


	September 30,		December 31,
($ in millions)	2021		2020
Fee-for-service commissions(1)	$	67	$	22
Real estate and financing		44		11
Resort and club operations		73		23
Tax receivables		85		54
Other receivables(2)		9		9
Total	$	278	$	119

(1)Net of allowance.

(2)For the periods ended September 30, 2021 and December 31, 2020, includes individually insignificant accounts receivable recognized in the ordinary course of business and allowances for which are also individually insignificant. For the period ended September 30, 2021, also includes other receivables primarily associated with miscellaneous sales and marketing activity.

Our accounts receivable are all due within one year of origination. We use delinquency status and economic factors such as credit quality indicators to monitor our receivables within the scope of ASC 326 and use these as a basis for how we develop our expected loss estimates.

We sell VOIs on behalf of third-party developers using the Hilton Grand Vacations brand in exchange for sales, marketing and brand fees. We use historical losses and economic factors as a basis to develop our allowance for credit losses. Under these fee-for-service arrangements, we earn commission fees based on a percentage of total interval sales. Additionally, the terms of these arrangements include provisions requiring the reduction of fees earned for defaults and cancellations.

The changes in our allowance for fee-for-service commissions were as follows during the period from December 31, 2020 to September 30, 2021:



($ in millions)
Balance as of December 31, 2020	$	18
Current period provision for expected credit losses		4
Write-offs charged against the allowance		(5	)
Balance at September 30, 2021		17

In addition to the fee-for-service commission allowance, we have various allowances for our accounts receivable to account for expected losses related to club dues, maintenance fees, trade accounts receivable, sales of VOIs, and marketing packages. All allowances other than the fee-for-service commissions allowance are individually immaterial to our Accounts receivable, net balance.