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Timeshare Financing Receivables (Tables)
 9 Months Ended
Sep. 30, 2021
Receivables [Abstract]  
Schedule of Financing Receivable The following table presents the components of each portfolio segment by class of timeshare financing receivables.

 

Originated(2)

 

 

Acquired(2)

 

 

 

September 30,

 

 

December 31,

 

 

September 30,

 

 

December 31,

 

 

($ in millions)

2021

 

 

2020

 

 

2021

 

 

2020

 

 

Securitized

$

629

 

 

$

805

 

 

$

605

 

 

$

—

 

 

Unsecuritized(1)

 

641

 

 

 

380

 

 

 

530

 

 

 

—

 

 

Timeshare financing receivables, gross

$

1,270

 

 

$

1,185

 

 

$

1,135

 

 

$

—

 

 

Unamortized non-credit acquisition premium(3)

 

—

 

 

 

—

 

 

 

62

 

 

 

—

 

 

Less: allowance for financing
  receivables losses

 

(238

)

 

 

(211

)

 

 

(462

)

 

 

—

 

 

Timeshare financing receivables, net

$

1,032

 

 

$

974

 

 

$

735

 

 

$

—

 

 

 

(1)Includes amounts used as collateral to secure a non-recourse revolving timeshare receivable credit facility ("Timeshare Facility") as well as amounts held as future collateral for securitization activities.

(2)Acquired timeshare financing receivables include all timeshare financing receivables of Legacy-Diamond as of the Acquisition Date. Originated timeshare financing receivables include all Legacy-HGV timeshare financing receivables and Legacy-Diamond timeshare financing receivables originated after the Acquisition Date.

(3)Non-credit premium of $69 million was recognized at the Acquisition Date, of which $62 million remains unamortized as of September 30, 2021.
Schedule of Future Payments Due from Financing Receivables

Our acquired timeshare financing receivables as of September 30, 2021 mature as follows:

 

Acquired Timeshare Financing Receivables

 

($ in millions)

Securitized

 

 

Unsecuritized

 

 

Total

 

Year

 

 

 

 

 

 

 

 

2021 (remaining)

$

—

 

 

$

28

 

 

$

28

 

2022

 

1

 

 

 

2

 

 

 

3

 

2023

 

3

 

 

 

4

 

 

 

7

 

2024

 

7

 

 

 

6

 

 

 

13

 

2025

 

13

 

 

 

11

 

 

 

24

 

Thereafter

 

581

 

 

 

479

 

 

 

1,060

 

 

$

605

 

 

$

530

 

 

$

1,135

 
Our originated timeshare financing receivables as of September 30, 2021 mature as follows:

 

Originated Timeshare Financing Receivables

 

($ in millions)

Securitized

 

 

Unsecuritized

 

 

Total

 

Year

 

 

 

 

 

 

 

 

2021 (remaining)

$

21

 

 

$

15

 

 

$

36

 

2022

 

87

 

 

 

42

 

 

 

129

 

2023

 

89

 

 

 

46

 

 

 

135

 

2024

 

90

 

 

 

49

 

 

 

139

 

2025

 

87

 

 

 

53

 

 

 

140

 

Thereafter

 

255

 

 

 

436

 

 

 

691

 

 

$

629

 

 

$

641

 

 

$

1,270

 
Schedule of Financing Receivables by Average FICO Score

Our gross balances by average FICO score of our Legacy-HGV timeshare financing receivables were as follows:

 

Legacy-HGV Timeshare Financing Receivables

 

 

September 30,

 

 

December 31,

 

($ in millions)

2021

 

 

2020

 

FICO score

 

 

 

 

 

700+

$

693

 

 

$

711

 

600-699

 

254

 

 

 

266

 

<600

 

35

 

 

 

36

 

No score(1)

 

169

 

 

 

172

 

 

$

1,151

 

 

$

1,185

 

 

(1) Timeshare financing receivables without a FICO score are primarily related to foreign borrowers.

Our gross balances by average FICO score of our Legacy-Diamond acquired and originated timeshare financing receivables were as follows:

 

Legacy-Diamond
Acquired Timeshare Financing Receivables

 

($ in millions)

September 30, 2021

 

FICO score

 

 

700+

$

721

 

600-699

 

342

 

<600

 

54

 

No score(1)

 

18

 

 

$

1,135

 

 

(1) Timeshare financing receivables without a FICO score are primarily related to foreign borrowers.

 

 

Legacy-Diamond
Originated Timeshare Financing Receivables

 

($ in millions)

September 30, 2021

 

FICO score

 

 

700+

$

85

 

600-699

 

25

 

<600

 

4

 

No score(1)

 

5

 

 

$

119

 

 

(1) Timeshare financing receivables without a FICO score are primarily related to foreign borrowers.
Details of Financing Receivables by Origination Year and Average FICO Score

The following table details our Legacy-HGV timeshare financing receivables by the origination year and average FICO score as of September 30, 2021:

($ in millions)

2021

 

 

2020

 

 

2019

 

 

2018

 

 

2017

 

 

Prior

 

 

Total

 

FICO score

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

700+

$

177

 

 

$

91

 

 

$

156

 

 

$

106

 

 

$

71

 

 

$

92

 

 

$

693

 

600-699

 

59

 

 

 

34

 

 

 

58

 

 

 

39

 

 

 

25

 

 

 

39

 

 

 

254

 

<600

 

8

 

 

 

5

 

 

 

8

 

 

 

5

 

 

 

3

 

 

 

6

 

 

 

35

 

No score(1)

 

34

 

 

 

27

 

 

 

39

 

 

 

26

 

 

 

14

 

 

 

29

 

 

 

169

 

 

$

278

 

 

$

157

 

 

$

261

 

 

$

176

 

 

$

113

 

 

$

166

 

 

$

1,151

 

 

(1) Timeshare financing receivables without a FICO score are primarily related to foreign borrowers.

The following tables details our Legacy-Diamond acquired and originated timeshare financing receivables by the origination year and average FICO score as of September 30, 2021:

Legacy-Diamond Acquired Timeshare Financing Receivables

 

($ in millions)

2021

 

 

2020

 

 

2019

 

 

2018

 

 

2017

 

 

Prior

 

 

Total

 

FICO score

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

700+

$

155

 

 

$

146

 

 

$

175

 

 

$

113

 

 

$

70

 

 

$

62

 

 

$

721

 

600-699

 

61

 

 

 

59

 

 

 

86

 

 

 

56

 

 

 

32

 

 

 

49

 

 

 

343

 

<600

 

10

 

 

 

11

 

 

 

11

 

 

 

5

 

 

 

2

 

 

 

14

 

 

 

53

 

No score(1)

 

3

 

 

 

3

 

 

 

4

 

 

 

2

 

 

 

2

 

 

 

4

 

 

 

18

 

 

$

229

 

 

$

219

 

 

$

276

 

 

$

176

 

 

$

106

 

 

$

129

 

 

$

1,135

 

 

(1) Timeshare financing receivables without a FICO score are primarily related to foreign borrowers.

 

Legacy-Diamond Originated Timeshare Financing Receivables

 

($ in millions)

2021

 

 

2020

 

 

2019

 

 

2018

 

 

2017

 

 

Prior

 

 

Total

 

FICO score

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

700+

$

85

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

85

 

600-699

 

25

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

25

 

<600

 

4

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

4

 

No score(1)

 

5

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

5

 

 

$

119

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

119

 

 

(1) Timeshare financing receivables without a FICO score are primarily related to foreign borrowers.
Schedule of Past Due Financing Receivables

As of September 30, 2021 and December 31, 2020, we had ceased accruing interest on timeshare financing receivables with an aggregate principal balance of $103 million and $117 million, respectively. The following tables detail an aged analysis of our gross timeshare receivables balance:

 

Legacy-HGV Timeshare Financing Receivables

 

 

September 30, 2021

 

($ in millions)

Securitized

 

 

Unsecuritized

 

 

Total

 

Current

$

619

 

 

$

417

 

 

$

1,036

 

31 - 90 days past due

 

5

 

 

 

7

 

 

 

12

 

91 - 120 days past due

 

2

 

 

 

1

 

 

 

3

 

121 days and greater past due

 

2

 

 

 

98

 

 

 

100

 

 

$

628

 

 

$

523

 

 

$

1,151

 

 

 

Legacy-HGV Timeshare Financing Receivables

 

 

December 31, 2020

 

($ in millions)

Securitized

 

 

Unsecuritized

 

 

Total

 

Current

$

783

 

 

$

265

 

 

$

1,048

 

31 - 90 days past due

 

11

 

 

 

9

 

 

 

20

 

91 - 120 days past due

 

5

 

 

 

3

 

 

 

8

 

121 days and greater past due

 

6

 

 

 

103

 

 

 

109

 

 

$

805

 

 

$

380

 

 

$

1,185

 

As of September 30, 2021 we had ceased accruing interest on Legacy-Diamond timeshare financing receivables with an aggregate principal balance of $345 million. The following tables detail an aged analysis of our gross timeshare receivables balance:

 

Legacy-Diamond Timeshare Financing Receivables

 

 

September 30, 2021

 

($ in millions)

Securitized

 

 

Unsecuritized

 

 

Total

 

Current

$

565

 

 

$

312

 

 

$

877

 

31 - 90 days past due

 

18

 

 

 

14

 

 

 

32

 

91 - 120 days past due

 

8

 

 

 

5

 

 

 

13

 

121 days and greater past due

 

15

 

 

 

317

 

 

 

332

 

 

$

606

 

 

$

648

 

 

$

1,254

 
Schedule of Change in Allowance for Financing Receivables Losses

The changes in our allowances for financing receivables losses were as follows:

 

September 30, 2021

 

 

September 30, 2021

 

($ in millions)

Originated

 

 

Acquired

 

Balance as of December 31, 2020

$

211

 

 

$

—

 

Provision for financing receivables losses(1)

 

77

 

 

 

—

 

Initial allowance for PCD financing receivables acquired during the period(2)

 

—

 

 

 

469

 

Write-offs

 

(50

)

 

 

(7

)

Balance as of September 30, 2021

$

238

 

 

$

462

 

 

 

 

September 30, 2020

 

 

September 30, 2020

 

($ in millions)

Originated

 

 

Acquired

 

Balance as of December 31, 2019

$

184

 

 

$

—

 

Provision for financing receivables losses(1)

 

57

 

 

 

—

 

Write-offs

 

(24

)

 

 

—

 

Balance as of September 30, 2020

$

217

 

 

$

—

 

 

(1) Includes incremental provision for financing receivables losses, net of activity related to the repurchase of defaulted and upgraded securitized timeshare financing receivables.

(2) The initial gross allowance determined for receivables with credit deterioration was $469 million as of the Acquisition Date. Of this amount, approximately $220 million relates to net uncollectable balances such as loans that were fully written-off prior to Acquisition. Therefore, the net impact to the allowance related to acquired loans not previously written off was an increase of $249 million.