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TIMESHARE FINANCING RECEIVABLES (Tables)

3 Months Ended

Mar. 31, 2024

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


	Originated				Acquired
($ in millions)	March 31, 2024		December 31, 2023		March 31, 2024		December 31, 2023
Securitized	$	715	$	770	$	610	$	214
Unsecuritized(1)	1,517		1,326		973		551
Timeshare financing receivables, gross	$	2,232	$	2,096	$	1,583	$	765
Unamortized non-credit acquisition premium(2)	—		—		115		32
Less: allowance for financing receivables losses	(539)		(500)		(361)		(279)
Timeshare financing receivables, net	$	1,693	$	1,596	$	1,337	$	518

(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 Diamond Acquisition Date, of which $22 million and $26 million remains unamortized as of March 31, 2024 and December 31, 2023, respectively. Non-credit premium of $1 million was recognized at the Grand Islander Acquisition Date with $1 remaining unamortized as of March 31, 2024 and December 31, 2023. Non-credit premium of $102 million was recognized at the Bluegreen Acquisition Date, of which $92 million remains unamortized as of March 31, 2024.

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, 2023	$	500	$	279
Initial allowance for PCD financing receivables acquired during the period(1)	—		131
Provision for financing receivables losses(2)	64		—

Write-offs	(27)		(54)
Inventory recoveries	—		7
Upgrades(4)	2		(2)
Balance as of March 31, 2024	$	539	$	361


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

(1)The initial gross allowance determined for receivables with credit deterioration was $137 million as of the Bluegreen Acquisition Date. We also reduced the gross allowance determined for receivables with credit deterioration for Legacy-Grand Islander by $6 million

(2)Includes incremental provision for financing receivables losses, net of activity related to the repurchase of defaulted and upgraded timeshare financing receivables.

(3)Includes incremental provision for credit loss expense from Acquired loans.

(4)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 Future Payments Due from Financing Receivables

Our originated timeshare financing receivables as of March 31, 2024 mature as follows:


	Originated Timeshare Financing Receivables
($ in millions)	Securitized		Unsecuritized		Total
Year
2024 (remaining)	$	63	$	78	$	141
2025	89		110		199
2026	92		119		211
2027	93		130		223
2028	88		146		234
Thereafter	290		934		1,224
Total	$	715	$	1,517	$	2,232

Our gross acquired timeshare financing receivables as of March 31, 2024 mature as follows:


	Acquired Timeshare Financing Receivables
($ in millions)	Securitized		Unsecuritized		Total
Year
2024 (remaining)	$	54	$	66	$	120
2025	79		93		172
2026	81		100		181
2027	83		106		189
2028	79		112		191
Thereafter	234		496		730
Total	$	610	$	973	$	1,583

Schedule of Financing Receivables by Average FICO Score

Our originated gross balances by average FICO score of our originated timeshare financing receivables were as follows:


	Originated
	March 31, 2024
($ in millions)	Legacy-HGV		Legacy-DRI		Legacy-Grand Islander		Legacy-Bluegreen		Total
FICO score
700+	$	896	$	414	$	7	$	67	$	1,384
600-699	316		229		2		15		562
<600	39		31		—		—		70
No score(1)	200		8		7		1		216
Total	$	1,451	$	682	$	16	$	83	$	2,232