Timeshare Financing Receivables (Tables)

9 Months Ended

Sep. 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)	September 30, 2022		December 31, 2021		September 30, 2022		December 31, 2021
Securitized	$	856	$	587	$	363	$	523
Unsecuritized(1)	799		810		440		515
Timeshare financing receivables, gross	$	1,655	$	1,397	$	803	$	1,038
Unamortized non-credit acquisition premium(3)	—		—		47		74
Less: allowance for financing receivables losses	(374)		(280)		(388)		(482)
Timeshare financing receivables, net	$	1,281	$	1,117	$	462	$	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 $47 million remains unamortized as of September 30, 2022.

Schedule of Future Payments Due from Financing Receivables

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

	Acquired Timeshare Financing Receivables
($ in millions)	Securitized		Unsecuritized		Total
Year
2022 (remaining)	$	10	$	8	$	18
2023	41		34		75
2024	45		38		83
2025	48		42		90
2026	51		47		98
Thereafter	168		271		439
	$	363	$	440	$	803

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

	Originated Timeshare Financing Receivables
($ in millions)	Securitized		Unsecuritized		Total
Year
2022 (remaining)	$	24	$	19	$	43
2023	100		52		152
2024	104		59		163
2025	105		66		171
2026	105		73		178
Thereafter	418		530		948
	$	856	$	799	$	1,655

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, 2021	$	280	$	482
Provision for financing receivables losses(1)	101		—
Write-offs	(52)		(63)
Upgrades(2)	45		(31)
Balance at September 30, 2022	$	374	$	388

($ 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	—		469
Write-offs	(50)		(7)
Balance at September 30, 2021	$	238	$	462

(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)	September 30, 2022		December 31, 2021
FICO score
700+	$	734	$	703
600-699	264		248
<600	36		35
No score(1)	167		166
	$	1,201	$	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)	September 30, 2022		December 31, 2021
FICO score
700+	$	423	$	601
600-699	300		356
<600	63		70
No score(1)	17		11
	$	803	$	1,038

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

	Legacy-Diamond Originated Timeshare Financing Receivables
($ in millions)	September 30, 2022		December 31, 2021
FICO score
700+	$	282	$	172
600-699	144		60
<600	24		11
No score(1)	4		2
	$	454	$	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 September 30, 2022:

($ in millions)	2022		2021		2020		2019		2018		Prior		Total
FICO score
700+	$	258	$	157	$	55	$	98	$	68	$	98	$	734
600-699	87		58		20		35		25		39		264
<600	11		8		3		5		3		6		36
No score(1)	41		30		19		29		19		29		167
	$	397	$	253	$	97	$	167	$	115	$	172	$	1,201

(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 September 30, 2022:

	Legacy-Diamond Acquired Timeshare Financing Receivables
($ in millions)	2022		2021		2020		2019		2018		Prior		Total
FICO score
700+	$	—	$	75	$	91	$	109	$	71	$	77	$	423
600-699	—		50		55		78		46		71		300
<600	—		12		15		13		6		17		63
No score(1)	—		1		5		2		1		8		17
	$	—	$	138	$	166	$	202	$	124	$	173	$	803

(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+	$	200	$	82	$	—	$	—	$	—	$	—	$	282
600-699	98		46		—		—		—		—		144
<600	14		10		—		—		—		—		24
No score(1)	3		1		—		—		—		—		4
	$	315	$	139	$	—	$	—	$	—	$	—	$	454

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

Schedule of Past Due Financing Receivables

As of September 30, 2022 and December 31, 2021, we had ceased accruing interest on timeshare financing receivables with an aggregate principal balance of $71 million and $83 million, respectively. The following tables detail an aged analysis of our gross timeshare receivables balance:

	Legacy-HGV Timeshare Financing Receivables
	September 30, 2022
($ in millions)	Securitized		Unsecuritized		Total
Current	$	687	$	427	$	1,114
31 - 90 days past due	8		8		16
91 - 120 days past due	2		3		5
121 days and greater past due	1		65		66
	$	698	$	503	$	1,201

	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
	September 30, 2022
($ in millions)	Securitized		Unsecuritized		Total
Current	$	483	$	341	$	824
31 - 90 days past due	17		16		33
91 - 120 days past due	5		5		10
121 days and greater past due	16		374		390
	$	521	$	736	$	1,257
	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