Timeshare Financing Receivables (Tables)

6 Months Ended

Jun. 30, 2022

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)
($ in millions)	June 30, 2022		December 31, 2021		June 30, 2022		December 31, 2021
Securitized	$	649	$	587	$	419	$	523
Unsecuritized(1)	884		810		436		515
Timeshare financing receivables, gross	$	1,533	$	1,397	$	855	$	1,038
Unamortized non-credit acquisition premium(3)	—		—		54		74
Less: allowance for financing receivables losses	(348)		(280)		(405)		(482)
Timeshare financing receivables, net	$	1,185	$	1,117	$	504	$	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 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 $97 million was recognized at the Acquisition Date, of which $54 million remains unamortized as of June 30, 2022.

Schedule of Future Payments Due from Financing Receivables

Our acquired timeshare financing receivables as of June 30, 2022 mature as follows:

	Acquired Timeshare Financing Receivables
($ in millions)	Securitized		Unsecuritized		Total
Year
2022 (remaining)	$	22	$	16	$	38
2023	46		35		81
2024	50		38		88
2025	54		43		97
2026	57		47		104
Thereafter	190		257		447
	$	419	$	436	$	855

Our originated timeshare financing receivables as of June 30, 2022 mature as follows:

	Originated Timeshare Financing Receivables
($ in millions)	Securitized		Unsecuritized		Total
Year
2022 (remaining)	$	42	$	36	$	78
2023	85		63		148
2024	87		71		158
2025	87		78		165
2026	83		86		169
Thereafter	265		550		815
	$	649	$	884	$	1,533

Schedule of Change in Allowance for Financing Receivables Losses

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

	June 30, 2022
($ in millions)	Originated		Acquired
Balance as of December 31, 2021	$	280	$	482
Provision for financing receivables losses(1)	71		—
Write-offs	(37)		(60)
Upgrades(2)	34		(17)
Balance as of June 30, 2022	$	348	$	405

	June 30, 2021
($ in millions)	Originated		Acquired
Balance as of December 31, 2020	$	211	$	—
Provision for financing receivables losses(1)	28		—
Write-offs	(36)		—
Balance as of June 30, 2021	$	203	$	—

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

(2)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
($ in millions)	June 30, 2022		December 31, 2021
FICO score
700+	$	706	$	703
600-699	252		248
<600	35		35
No score(1)	162		166
	$	1,155	$	1,152

(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)	June 30, 2022		December 31, 2021
FICO score
700+	$	454	$	601
600-699	318		356
<600	65		70
No score(1)	18		11
	$	855	$	1,038

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

	Legacy-Diamond Originated Timeshare Financing Receivables
($ in millions)	June 30, 2022		December 31, 2021
FICO score
700+	$	240	$	172
600-699	114		60
<600	21		11
No score(1)	3		2
	$	378	$	245

(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 June 30, 2022:

($ in millions)	2022		2021		2020		2019		2018		Prior		Total
FICO score
700+	$	171	$	179	$	62	$	109	$	74	$	111	$	706
600-699	52		66		24		39		27		44		252
<600	7		9		4		6		3		6		35
No score(1)	23		34		21		31		21		32		162
	$	253	$	288	$	111	$	185	$	125	$	193	$	1,155

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

The following tables detail our Legacy-Diamond acquired and originated timeshare financing receivables by the origination year and average FICO score as of June 30, 2022:

	Legacy-Diamond Acquired Timeshare Financing Receivables
($ in millions)	2022		2021		2020		2019		2018		Prior		Total
FICO score
700+	$	—	$	83	$	98	$	115	$	76	$	82	$	454
600-699	—		54		59		81		48		76		318
<600	—		12		15		14		6		18		65
No score(1)	—		2		5		2		1		8		18
	$	—	$	151	$	177	$	212	$	131	$	184	$	855

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

	Legacy-Diamond Originated Timeshare Financing Receivables
($ in millions)	2022		2021		2020		2019		2018		Prior		Total
FICO score
700+	$	143	$	97	$	—	$	—	$	—	$	—	$	240
600-699	63		51		—		—		—		—		114
<600	11		10		—		—		—		—		21
No score(1)	2		1		—		—		—		—		3
	$	219	$	159	$	—	$	—	$	—	$	—	$	378

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

Schedule of Past Due Financing Receivables

As of June 30, 2022 and December 31, 2021, we had ceased accruing interest on timeshare financing receivables with an aggregate principal balance of $70 million and $83 million, respectively. The following tables detail an aged analysis of our gross timeshare receivables balance:

	Legacy-HGV Timeshare Financing Receivables
	June 30, 2022
($ in millions)	Securitized		Unsecuritized		Total
Current	$	468	$	601	$	1,069
31 - 90 days past due	5		11		16
91 - 120 days past due	1		2		3
121 days and greater past due	2		65		67
	$	476	$	679	$	1,155

	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

The following tables detail an aged analysis of our gross timeshare receivables balance:

	Legacy-Diamond Timeshare Financing Receivables
	June 30, 2022
($ in millions)	Securitized		Unsecuritized		Total
Current	$	554	$	268	$	822
31 - 90 days past due	22		15		37
91 - 120 days past due	6		6		12
121 days and greater past due	10		352		362
	$	592	$	641	$	1,233
	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