TIMESHARE FINANCING RECEIVABLES (Tables)

6 Months Ended

Jun. 30, 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)	June 30, 2023		December 31, 2022		June 30, 2023		December 31, 2022
Securitized	$	672	$	788	$	212	$	262
Unsecuritized(1)	1,206		971		414		447
Timeshare financing receivables, gross	$	1,878	$	1,759	$	626	$	709
Unamortized non-credit acquisition premium(2)	—		—		34		41
Less: allowance for financing receivables losses	(447)		(404)		(313)		(338)
Timeshare financing receivables, net	$	1,431	$	1,355	$	347	$	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 $34 million and $41 million remains unamortized as of June 30, 2023 and December 31, 2022, respectively.

Schedule of Future Payments Due from Financing Receivables

Our gross acquired timeshare financing receivables as of June 30, 2023 mature as follows:

	Acquired Timeshare Financing Receivables
($ in millions)	Securitized		Unsecuritized		Total
Year
2023 (remaining six months)	$	20	$	27	$	47
2024	29		39		68
2025	31		44		75
2026	31		48		79
2027	32		51		83
Thereafter	69		205		274
Total	$	212	$	414	$	626

Our originated timeshare financing receivables as of June 30, 2023 mature as follows:

	Originated Timeshare Financing Receivables
($ in millions)	Securitized		Unsecuritized		Total
Year
2023 (remaining six months)	$	44	$	50	$	94
2024	89		82		171
2025	90		93		183
2026	90		104		194
2027	86		115		201
Thereafter	273		762		1,035
Total	$	672	$	1,206	$	1,878

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)	71		—
Write-offs	(33)		(28)
Inventory recoveries	—		8
Upgrades(2)	5		(5)
Balance as of June 30, 2023	$	447	$	313

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

(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, 2023		December 31, 2022
FICO score
700+	$	800	$	763
600-699	288		270
<600	36		37
No score(1)	179		174
Total	$	1,303	$	1,244

(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, 2023		December 31, 2022
FICO score
700+	$	322	$	373
600-699	238		265
<600	52		55
No score(1)	14		16
Total	$	626	$	709

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

	Legacy-Diamond Originated Timeshare Financing Receivables
($ in millions)	June 30, 2023		December 31, 2022
FICO score
700+	$	349	$	321
600-699	191		163
<600	29		26
No score(1)	6		5
Total	$	575	$	515

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

Details the Gross Timeshare 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 June 30, 2023:

($ in millions)	2023		2022		2021		2020		2019		Prior		Total
FICO score
700+	$	194	$	260	$	115	$	40	$	73	$	118	$	800
600-699	60		96		43		15		27		47		288
<600	7		12		6		2		3		6		36
No score(1)	38		47		22		15		22		35		179
Total	$	299	$	415	$	186	$	72	$	125	$	206	$	1,303
Current period gross write-offs	$	—	$	3	$	6	$	3	$	6	$	9	$	27

(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 June 30, 2023:

	Legacy-Diamond Acquired Timeshare Financing Receivables
($ in millions)	2023		2022		2021		2020		2019		Prior		Total
FICO score
700+	$	—	$	—	$	55	$	69	$	85	$	113	$	322
600-699	—		—		40		45		60		93		238
<600	—		—		10		12		10		20		52
No score(1)	—		—		1		4		2		7		14
Total	$	—	$	—	$	106	$	130	$	157	$	233	$	626
Current period gross write-offs	$	—	$	—	$	4	$	5	$	8	$	11	$	28

(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+	$	99	$	188	$	62	$	—	$	—	$	—	$	349
600-699	49		105		37		—		—		—		191
<600	6		15		8		—		—		—		29
No score(1)	2		3		1		—		—		—		6
Total	$	156	$	311	$	108	$	—	$	—	$	—	$	575
Current period gross write-offs	$	—	$	3	$	3	$	—	$	—	$	—	$	6

(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
	June 30, 2023
($ in millions)	Securitized		Unsecuritized		Total
Current	$	538	$	659	$	1,197
31 - 90 days past due	9		13		22
91 - 120 days past due	3		3		6
121 days and greater past due	4		74		78
Total	$	554	$	749	$	1,303

	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
	June 30, 2023
($ in millions)	Securitized		Unsecuritized		Total
Current	$	304	$	450	$	754
31 - 90 days past due	11		20		31
91 - 120 days past due	4		9		13
121 days and greater past due	11		392		403
Total	$	330	$	871	$	1,201
	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