Timeshare Financing Receivables (Tables)

3 Months Ended

Mar. 31, 2023

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)	March 31, 2023		December 31, 2022		March 31, 2023		December 31, 2022
Securitized	$	731	$	788	$	234	$	262
Unsecuritized(1)	1,066		971		429		447
Timeshare financing receivables, gross	$	1,797	$	1,759	$	663	$	709
Unamortized non-credit acquisition premium(2)	—		—		37		41
Less: allowance for financing receivables losses	(418)		(404)		(325)		(338)
Timeshare financing receivables, net	$	1,379	$	1,355	$	375	$	412

(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 $37 million and $41 million remains unamortized as of March 31, 2023 and December 31, 2022, respectively.

Schedule of Future Payments Due from Financing Receivables

Our gross acquired timeshare financing receivables as of March 31, 2023 mature as follows:

	Acquired Timeshare Financing Receivables
($ in millions)	Securitized		Unsecuritized		Total
Year
2023 (remaining nine months)	$	28	$	38	$	66
2024	31		41		72
2025	32		46		78
2026	33		50		83
2027	34		53		87
Thereafter	76		201		277
Total	$	234	$	429	$	663

Our originated timeshare financing receivables as of March 31, 2023 mature as follows:

	Originated Timeshare Financing Receivables
($ in millions)	Securitized		Unsecuritized		Total
Year
2023 (remaining nine months)	$	70	$	62	$	132
2024	94		75		169
2025	94		85		179
2026	94		94		188
2027	91		105		196
Thereafter	288		645		933
Total	$	731	$	1,066	$	1,797

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, 2022	$	404	$	338
Provision for financing receivables losses(1)	30		—
Write-offs	(17)		(16)
Inventory recoveries	—		4
Upgrades(2)	1		(1)
Balance as of March 31, 2023	$	418	$	325

($ in millions)	Originated		Acquired
Balance as of December 31, 2021	$	280	$	482
Provision for financing receivables losses(1)	31		—
Write-offs	(25)		(6)
Inventory recoveries	—		1
Upgrades(2)	16		(16)
Balance as of March 31, 2022	$	302	$	461

(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)	March 31, 2023		December 31, 2022
FICO score
700+	$	770	$	763
600-699	274		270
<600	36		37
No score(1)	176		174
Total	$	1,256	$	1,244

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

	Legacy-Diamond Acquired Timeshare Financing Receivables
($ in millions)	March 31, 2023		December 31, 2022
FICO score
700+	$	345	$	373
600-699	250		265
<600	53		55
No score(1)	15		16
Total	$	663	$	709

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

	Legacy-Diamond Originated Timeshare Financing Receivables
($ in millions)	March 31, 2023		December 31, 2022
FICO score
700+	$	332	$	321
600-699	177		163
<600	27		26
No score(1)	5		5
Total	$	541	$	515

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

Schedule of Details of Financing Receivables by 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 March 31, 2023:

($ in millions)	2023		2022		2021		2020		2019		Prior		Total
FICO score
700+	$	96	$	292	$	126	$	45	$	80	$	131	$	770
600-699	27		103		47		16		29		52		274
<600	3		13		7		2		4		7		36
No score(1)	18		53		26		16		24		39		176
Total	$	144	$	461	$	206	$	79	$	137	$	229	$	1,256
Current period gross write-offs	$	—	$	2	$	3	$	2	$	3	$	5	$	15

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

The following tables detail our gross Legacy-Diamond acquired and originated timeshare financing receivables by the origination year and average FICO score as of March 31, 2023:

	Legacy-Diamond Acquired Timeshare Financing Receivables
($ in millions)	2023		2022		2021		2020		2019		Prior		Total
FICO score
700+	$	—	$	—	$	61	$	74	$	89	$	121	$	345
600-699	—		—		42		47		63		98		250
<600	—		—		10		12		11		20		53
No score(1)	—		—		—		4		2		9		15
Total	$	—	$	—	$	113	$	137	$	165	$	248	$	663
Current period gross write-offs	$	—	$	—	$	1	$	2	$	6	$	7	$	16

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

	Legacy-Diamond Originated Timeshare Financing Receivables
($ in millions)	2023		2022		2021		2020		2019		Prior		Total
FICO score
700+	$	55	$	210	$	67	$	—	$	—	$	—	$	332
600-699	25		113		39		—		—		—		177
<600	3		16		8		—		—		—		27
No score(1)	1		3		1		—		—		—		5
Total	$	84	$	342	$	115	$	—	$	—	$	—	$	541
Current period gross write-offs	$	—	$	1	$	1	$	—	$	—	$	—	$	2

(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 receivables balance:

	Legacy-HGV Timeshare Financing Receivables
	March 31, 2023
($ in millions)	Securitized		Unsecuritized		Total
Current	$	585	$	573	$	1,158
31 - 90 days past due	10		11		21
91 - 120 days past due	4		3		7
121 days and greater past due	4		66		70
Total	$	603	$	653	$	1,256

	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

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

	Legacy-Diamond Timeshare Financing Receivables
	March 31, 2023
($ in millions)	Securitized		Unsecuritized		Total
Current	$	330	$	438	$	768
31 - 90 days past due	14		25		39
91 - 120 days past due	5		7		12
121 days and greater past due	13		372		385
Total	$	362	$	842	$	1,204
	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