Timeshare Financing Receivables (Tables)

12 Months Ended

Dec. 31, 2022

Receivables [Abstract]

Schedule of Financing Receivable

The following table presents the components of each portfolio segment by class of timeshare financing receivables:

	Originated				Acquired
($ in millions)	December 31, 2022		December 31, 2021		December 31, 2022		December 31, 2021
Securitized	$	788	$	587	$	262	$	523
Unsecuritized(1)	971		810		447		515
Timeshare financing receivables, gross	$	1,759	$	1,397	$	709	$	1,038
Unamortized non-credit acquisition premium(2)	—		—		41		74
Less: allowance for financing receivables losses	(404)		(280)		(338)		(482)
Timeshare financing receivables, net	$	1,355	$	1,117	$	412	$	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)Non-credit premium of $97 million was recognized at the Acquisition Date, of which $41 million remains unamortized as of December 31, 2022.

Schedule of Future Payments Due from Financing Receivables

Our acquired timeshare financing receivables as of December 31, 2022 mature as follows:

	Acquired Timeshare Financing Receivables
($ in millions)	Securitized		Unsecuritized		Total
Year
2023	$	30	$	39	$	69
2024	32		43		75
2025	34		47		81
2026	36		52		88
2027	36		56		92
Thereafter	94		210		304
Total	$	262	$	447	$	709

Originated Timeshare Financing Receivables

Originated timeshare financing receivables represent all Legacy-HGV timeshare financing receivables and timeshare financing receivables originated by Legacy-Diamond subsequent to the Acquisition Date. Our originated timeshare financing receivables as of December 31, 2022 mature as follows:

	Originated Timeshare Financing Receivables
($ in millions)	Securitized		Unsecuritized		Total
Year
2023	$	94	$	72	$	166
2024	98		69		167
2025	98		78		176
2026	98		86		184
2027	95		94		189
Thereafter	305		572		877
Total	$	788	$	971	$	1,759

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, 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
Provision for financing receivables losses(1)	140		—
Write-offs	(70)		(119)
Upgrades(3)	54		(25)
Balance as of December 31, 2022	$	404	$	338

(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
($ in millions)	December 31, 2022		December 31, 2021
FICO score
700+	$	763	$	703
600-699	270		248
<600	37		35
No score(1)	174		166
Total	$	1,244	$	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)	December 31, 2022		December 31, 2021
FICO score
700+	$	373	$	601
600-699	265		356
<600	55		70
No score(1)	16		11
Total	$	709	$	1,038

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

	Legacy-Diamond Originated Timeshare Financing Receivables
($ in millions)	December 31, 2022		December 31, 2021
FICO score
700+	$	321	$	172
600-699	163		60
<600	26		11
No score(1)	5		2
Total	$	515	$	245

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

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, 2022:

($ in millions)	2022		2021		2020		2019		2018		Prior		Total
FICO score
700+	$	340	$	140	$	49	$	87	$	61	$	86	$	763
600-699	112		52		17		32		23		34		270
<600	14		7		3		5		3		5		37
No score(1)	59		28		18		26		17		26		174
Total	$	525	$	227	$	87	$	150	$	104	$	151	$	1,244

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

The following tables details our gross Legacy-Diamond acquired and originated timeshare financing receivables by the origination year and average FICO score as of December 31, 2022:

	Legacy-Diamond Acquired Timeshare Financing Receivables
($ in millions)	2022		2021		2020		2019		2018		Prior		Total
FICO score
700+	$	—	$	66	$	80	$	96	$	64	$	67	$	373
600-699	—		44		49		68		41		63		265
<600	—		10		13		11		5		16		55
No score(1)	—		1		5		2		1		7		16
Total	$	—	$	121	$	147	$	177	$	111	$	153	$	709

(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+	$	248	$	73	$	—	$	—	$	—	$	—	$	321
600-699	123		40		—		—		—		—		163
<600	17		9		—		—		—		—		26
No score(1)	4		1		—		—		—		—		5
Total	$	392	$	123	$	—	$	—	$	—	$	—	$	515

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

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, 2022
($ in millions)	Securitized		Unsecuritized		Total
Current	$	631	$	520	$	1,151
31 - 90 days past due	9		8		17
91 - 120 days past due	3		2		5
121 days and greater past due	4		67		71
Total	$	647	$	597	$	1,244

	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
Total	$	579	$	573	$	1,152

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

	Legacy-Diamond Timeshare Financing Receivables
	December 31, 2022
($ in millions)	Securitized		Unsecuritized		Total
Current	$	373	$	442	$	815
31 - 90 days past due	13		19		32
91 - 120 days past due	4		8		12
121 days and greater past due	13		352		365
Total	$	403	$	821	$	1,224

	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
Total	$	531	$	752	$	1,283