TIMESHARE FINANCING RECEIVABLES (Tables)

9 Months Ended

Sep. 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)	September 30, 2023		December 31, 2022		September 30, 2023		December 31, 2022
Securitized	$	837	$	788	$	202	$	262
Unsecuritized(1)	1,146		971		337		447
Timeshare financing receivables, gross	$	1,983	$	1,759	$	539	$	709
Unamortized non-credit acquisition premium(2)	—		—		30		41
Less: allowance for financing receivables losses	(473)		(404)		(258)		(338)
Timeshare financing receivables, net	$	1,510	$	1,355	$	311	$	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 $30 million and $41 million remains unamortized as of September 30, 2023 and December 31, 2022, respectively.

Schedule of Future Payments Due from Financing Receivables

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

	Acquired Timeshare Financing Receivables
($ in millions)	Securitized		Unsecuritized		Total
Year
2023 (remaining three months)	$	14	$	15	$	29
2024	30		31		61
2025	31		35		66
2026	32		38		70
2027	32		41		73
Thereafter	63		177		240
Total	$	202	$	337	$	539

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

	Originated Timeshare Financing Receivables
($ in millions)	Securitized		Unsecuritized		Total
Year
2023 (remaining three months)	$	26	$	32	$	58
2024	99		78		177
2025	102		87		189
2026	103		95		198
2027	103		105		208
Thereafter	404		749		1,153
Total	$	837	$	1,146	$	1,983

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)	115		2
Write-offs	(55)		(94)
Inventory recoveries	—		21
Upgrades(2)	9		(9)
Balance as of September 30, 2023	$	473	$	258

($ in millions)	Originated		Acquired
Balance as of December 31, 2021	$	280	$	482
Provision for financing receivables losses(1)	101		—
Write-offs	(52)		(63)
Inventory recoveries	—		14
Upgrades(2)	45		(45)
Balance as of September 30, 2022	$	374	$	388

(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, 2023		December 31, 2022
FICO score
700+	$	835	$	763
600-699	304		270
<600	38		37
No score(1)	186		174
Total	$	1,363	$	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)	September 30, 2023		December 31, 2022
FICO score
700+	$	278	$	373
600-699	203		265
<600	45		55
No score(1)	13		16
Total	$	539	$	709

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

	Legacy-Diamond Originated Timeshare Financing Receivables
($ in millions)	September 30, 2023		December 31, 2022
FICO score
700+	$	377	$	321
600-699	207		163
<600	29		26
No score(1)	7		5
Total	$	620	$	515

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

Schedule of 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 September 30, 2023:

($ in millions)	2023		2022		2021		2020		2019		Prior		Total
FICO score
700+	$	290	$	233	$	102	$	36	$	67	$	107	$	835
600-699	100		86		38		14		24		42		304
<600	10		11		5		2		3		7		38
No score(1)	58		43		21		13		20		31		186
Total	$	458	$	373	$	166	$	65	$	114	$	187	$	1,363
Current period gross write-offs	$	—	$	6	$	10	$	5	$	8	$	15	$	44

(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 September 30, 2023:

	Legacy-Diamond Acquired Timeshare Financing Receivables
($ in millions)	2023		2022		2021		2020		2019		Prior		Total
FICO score
700+	$	—	$	—	$	50	$	60	$	71	$	97	$	278
600-699	—		—		36		39		50		78		203
<600	—		—		9		10		8		18		45
No score(1)	—		—		1		4		1		7		13
Total	$	—	$	—	$	96	$	113	$	130	$	200	$	539
Current period gross write-offs	$	—	$	—	$	9	$	18	$	30	$	37	$	94

(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+	$	151	$	171	$	55	$	—	$	—	$	—	$	377
600-699	77		98		32		—		—		—		207
<600	10		13		6		—		—		—		29
No score(1)	3		3		1		—		—		—		7
Total	$	241	$	285	$	94	$	—	$	—	$	—	$	620
Current period gross write-offs	$	—	$	5	$	6	$	—	$	—	$	—	$	11

(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
	September 30, 2023
($ in millions)	Securitized		Unsecuritized		Total
Current	$	632	$	621	$	1,253
31 - 90 days past due	9		13		22
91 - 120 days past due	4		3		7
121 days and greater past due	2		79		81
Total	$	647	$	716	$	1,363

	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
	September 30, 2023
($ in millions)	Securitized		Unsecuritized		Total
Current	$	363	$	392	$	755
31 - 90 days past due	15		20		35
91 - 120 days past due	6		8		14
121 days and greater past due	8		347		355
Total	$	392	$	767	$	1,159
	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