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Timeshare Financing Receivables (Tables)
 12 Months Ended
Dec. 31, 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)

 

 

 

December 31,

 

 

December 31,

 

 

December 31,

 

 

December 31,

 

 

($ in millions)

2021

 

 

2020

 

 

2021

 

 

2020

 

 

Securitized

$

587

 

 

$

805

 

 

$

523

 

 

$

—

 

 

Unsecuritized(1)

 

810

 

 

 

380

 

 

 

515

 

 

 

—

 

 

Timeshare financing receivables, gross

$

1,397

 

 

$

1,185

 

 

$

1,038

 

 

$

—

 

 

Unamortized non-credit acquisition premium(3)

 

—

 

 

 

—

 

 

 

74

 

 

 

—

 

 

Less: allowance for financing
  receivables losses

 

(280

)

 

 

(211

)

 

 

(482

)

 

 

—

 

 

Timeshare financing receivables, net

$

1,117

 

 

$

974

 

 

$

630

 

 

$

—

 

 

____________________

(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 upcoming 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) A non-credit premium of $97 million was recognized at the Acquisition Date. $74 million of this premium remains unamortized as of December 31, 2021.
Schedule of Future Payments Due from Financing Receivables

Our acquired timeshare financing receivables as of December 31, 2021 mature as follows:

 

 

Acquired Timeshare Financing Receivables

 

($ in millions)

Securitized

 

 

Unsecuritized

 

 

Total

 

Year

 

 

 

 

 

 

 

 

2022

$

51

 

 

$

36

 

 

$

87

 

2023

 

56

 

 

 

40

 

 

 

96

 

2024

 

61

 

 

 

45

 

 

 

106

 

2025

 

66

 

 

 

50

 

 

 

116

 

2026

 

70

 

 

 

55

 

 

 

125

 

Thereafter

 

219

 

 

 

289

 

 

 

508

 

 

$

523

 

 

$

515

 

 

$

1,038

 
Our originated timeshare financing receivables as of December 31, 2021 mature as follows:

 

Originated Timeshare Financing Receivables

 

($ in millions)

Securitized

 

 

Unsecuritized

 

 

Total

 

Year

 

 

 

 

 

 

 

 

2022

$

82

 

 

$

67

 

 

$

149

 

2023

 

85

 

 

 

60

 

 

 

145

 

2024

 

86

 

 

 

67

 

 

 

153

 

2025

 

84

 

 

 

73

 

 

 

157

 

2026

 

78

 

 

 

81

 

 

 

159

 

Thereafter

 

172

 

 

 

462

 

 

 

634

 

 

$

587

 

 

$

810

 

 

$

1,397

 
Schedule of Change in Allowance for Financing Receivables Losses

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

 

 

 

 

 

 

 

($ in millions)

Originated

 

 

Acquired

 

Balance as of December 31, 2018

$

172

 

 

$

—

 

Provisions for financing receivables losses(1)

 

74

 

 

 

—

 

Securitizations

 

—

 

 

 

—

 

Write-offs

 

(62

)

 

 

—

 

Balance as of December 31, 2019

$

184

 

 

$

—

 

Provisions for financing receivables losses(1)

 

75

 

 

 

—

 

Securitizations

 

—

 

 

 

—

 

Write-offs

 

(48

)

 

 

—

 

Balance as of December 31, 2020

$

211

 

 

$

—

 

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

 

—

 

 

 

512

 

Provision for financing receivables losses(1)

 

121

 

 

 

—

 

Write-offs

 

(79

)

 

 

(11

)

Upgrades(3)

 

27

 

 

 

(19

)

Balance as of December 31, 2021

$

280

 

 

$

482

 

 

(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 $512 million as of the Acquisition Date. Of this amount, approximately $249 million relates to net uncollectible balances such as loans that were fully written-off prior to the Acquisition. Therefore, the net impact to the allowance related to acquired loans not previously written off was an increase of $263 million.

(3) Represents the initial change in allowance resulting from upgrades of Acquired loans. Upgraded Acquired loans and their related allowance are included in the Originated portfolio segment.

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

 

 

December 31,

 

 

December 31,

 

($ in millions)

2021

 

 

2020

 

FICO score

 

 

 

 

 

700+

$

703

 

 

$

711

 

600-699

 

248

 

 

 

266

 

<600

 

35

 

 

 

36

 

No score(1)

 

166

 

 

 

172

 

 

$

1,152

 

 

$

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)

December 31, 2021

 

FICO score

 

 

700+

$

601

 

600-699

 

356

 

<600

 

70

 

No score(1)

 

11

 

 

$

1,038

 

 

 

 

Legacy-Diamond
Originated Timeshare Financing Receivables

 

($ in millions)

December 31, 2021

 

FICO score

 

 

700+

$

172

 

600-699

 

60

 

<600

 

11

 

No score(1)

 

2

 

 

$

245

 
Details the Gross Timeshare Financing Receivables by the Origination Year and Average FICO Score

The following table details our gross Legacy-HGV timeshare financing receivables by the origination year and average FICO score as of December 31, 2021:

 

($ in millions)

2021

 

 

2020

 

 

2019

 

 

2018

 

 

2017

 

 

Prior

 

 

Total

 

FICO score

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

700+

$

249

 

 

$

81

 

 

$

138

 

 

$

93

 

 

$

63

 

 

$

79

 

 

$

703

 

600-699

 

80

 

 

 

31

 

 

 

49

 

 

 

33

 

 

 

21

 

 

 

34

 

 

 

248

 

<600

 

11

 

 

 

5

 

 

 

7

 

 

 

4

 

 

 

3

 

 

 

5

 

 

 

35

 

No score(1)

 

41

 

 

 

25

 

 

 

36

 

 

 

24

 

 

 

13

 

 

 

27

 

 

 

166

 

 

$

381

 

 

$

142

 

 

$

230

 

 

$

154

 

 

$

100

 

 

$

145

 

 

$

1,152

 

The following tables details our Legacy-Diamond acquired and originated timeshare financing receivables by the origination year and average FICO score as of December 31, 2021:

Legacy-Diamond Acquired Timeshare Financing Receivables

 

($ in millions)

2021

 

 

2020

 

 

2019

 

 

2018

 

 

2017

 

 

Prior

 

 

Total

 

FICO score

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

700+

$

125

 

 

$

128

 

 

$

146

 

 

$

94

 

 

$

58

 

 

$

50

 

 

$

601

 

600-699

 

64

 

 

 

70

 

 

 

89

 

 

 

50

 

 

 

34

 

 

 

49

 

 

 

356

 

<600

 

14

 

 

 

18

 

 

 

14

 

 

 

6

 

 

 

3

 

 

 

15

 

 

 

70

 

No score(1)

 

2

 

 

 

2

 

 

 

2

 

 

 

1

 

 

 

1

 

 

 

3

 

 

 

11

 

 

$

205

 

 

$

218

 

 

$

251

 

 

$

151

 

 

$

96

 

 

$

117

 

 

$

1,038

 

 

Legacy-Diamond Originated Timeshare Financing Receivables

 

($ in millions)

2021

 

 

2020

 

 

2019

 

 

2018

 

 

2017

 

 

Prior

 

 

Total

 

FICO score

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

700+

$

172

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

172

 

600-699

 

60

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

60

 

<600

 

11

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

11

 

No score(1)

 

2

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

2

 

 

$

245

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

245

 
Schedule of Past Due Financing Receivables The following tables detail an aged analysis of our gross timeshare financing receivables balance:

 

 

Legacy-HGV Timeshare Financing Receivables

 

 

December 31, 2021

 

($ in millions)

Securitized

 

 

Unsecuritized

 

 

Total

 

Current

$

569

 

 

$

488

 

 

$

1,057

 

31 - 90 days past due

 

6

 

 

 

6

 

 

 

12

 

91 - 120 days past due

 

2

 

 

 

2

 

 

 

4

 

121 days and greater past due

 

2

 

 

 

77

 

 

 

79

 

 

$

579

 

 

$

573

 

 

$

1,152

 

 

 

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 December 31, 2021 we had ceased accruing interest on Legacy-Diamond timeshare financing receivables with an aggregate principal balance of $369 million. The following tables detail an aged analysis of our gross timeshare receivables balance:

 

Legacy-Diamond Timeshare Financing Receivables

 

 

December 31, 2021

 

($ in millions)

Securitized

 

 

Unsecuritized

 

 

Total

 

Current

$

496

 

 

$

385

 

 

$

881

 

31 - 90 days past due

 

15

 

 

 

18

 

 

 

33

 

91 - 120 days past due

 

6

 

 

 

5

 

 

 

11

 

121 days and greater past due

 

14

 

 

 

344

 

 

 

358

 

 

$

531

 

 

$

752

 

 

$

1,283