Accounts Receivable

3 Months Ended

Mar. 31, 2022

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.


	March 31,		December 31,
($ in millions)	2022		2021
Fee-for-service commissions(1)	$	69	$	73
Real estate and financing		50		51
Resort and club operations		143		76
Tax receivables		80		95
Insurance claims receivable		95		—
Other receivables(2)		10		7
Total	$	447	$	302

(1)Net of allowance.

(2)Primarily includes individually insignificant accounts receivable and related allowances recognized in the ordinary course of business.

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, 2021 to March 31, 2022:

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.

($ in millions)

Balance as of December 31, 2021

Current period provision for expected credit losses

Write-offs charged against the allowance

Balance at March 31, 2022