Timeshare Financing Receivables (Tables)

3 Months Ended

Mar. 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(2)						Acquired(2)
	March 31,			December 31,			March 31,			December 31,
($ in millions)	2022			2021			2022			2021
Securitized	$	538		$	587		$	414		$	523
Unsecuritized(1)		914			810			550			515
Timeshare financing receivables, gross	$	1,452		$	1,397		$	964		$	1,038
Unamortized non-credit acquisition premium(3)		—			—			65			74
Less: allowance for financing   receivables losses		(302	)		(280	)		(461	)		(482	)
Timeshare financing receivables, net	$	1,150		$	1,117		$	568		$	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)Acquired timeshare financing receivables include all timeshare financing receivables of Legacy-Diamond as of the Acquisition Date. Originated timeshare financing receivables include all Legacy-HGV timeshare financing receivables and Legacy-Diamond timeshare financing receivables originated after the Acquisition Date.

(3)Non-credit premium of $97 million was recognized at the Acquisition Date, of which $65 million remains unamortized as of March 31, 2022.

Schedule of Future Payments Due from Financing Receivables

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

	Acquired Timeshare Financing Receivables
($ in millions)	Securitized		Unsecuritized		Total
Year
2022 (remaining)	$	31	$	31	$	62
2023		44		46		90
2024		48		51		99
2025		52		56		108
2026		55		61		116
Thereafter		184		305		489
	$	414	$	550	$	964

Our originated timeshare financing receivables as of March 31, 2022 mature as follows:

	Originated Timeshare Financing Receivables
($ in millions)	Securitized		Unsecuritized		Total
Year
2022 (remaining)	$	59	$	54	$	113
2023		81		66		147
2024		82		73		155
2025		79		81		160
2026		74		89		163
Thereafter		163		551		714
	$	538	$	914	$	1,452

Schedule of Change in Allowance for Financing Receivables Losses

The changes in our allowances for financing receivables losses were as follows:

	March 31, 2022
($ in millions)	Originated			Acquired
Balance as of December 31, 2021	$	280		$	482
Provision for financing receivables losses(1)		31			—
Write-offs		(25	)		(6	)
Upgrades(2)		16			(15	)
Balance as of March 31, 2022	$	302		$	461

	March 31, 2021
($ in millions)	Originated			Acquired
Balance as of December 31, 2020	$	211		$	—
Provision for financing receivables losses(1)		16			—
Write-offs		(20	)		—
Balance as of March 31, 2021	$	207		$	—

(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
	March 31,		December 31,
($ in millions)	2022		2021
FICO score
700+	$	691	$	703
600-699		247		248
<600		34		35
No score(1)		165		166
	$	1,137	$	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)	March 31, 2022		December 31, 2021
FICO score
700+	$	550	$	601
600-699		336		356
<600		67		70
No score(1)		11		11
	$	964	$	1,038

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

	Legacy-Diamond Originated Timeshare Financing Receivables
($ in millions)	March 31, 2022		December 31, 2021
FICO score
700+	$	213	$	172
600-699		83		60
<600		16		11
No score(1)		3		2
	$	315	$	245

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

Details of Financing Receivables by Origination Year and Average FICO Score

The following table details our Legacy-HGV timeshare financing receivables by the origination year and average FICO score as of March 31, 2022:

($ in millions)	2022		2021		2020		2019		2018		Prior		Total
FICO score
700+	$	89	$	203	$	70	$	121	$	83	$	125	$	691
600-699		24		73		27		44		30		49		247
<600		3		10		4		6		4		7		34
No score(1)		13		37		23		34		23		35		165
	$	129	$	323	$	124	$	205	$	140	$	216	$	1,137

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

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

Legacy-Diamond Acquired Timeshare Financing Receivables
($ in millions)	2022		2021		2020		2019		2018		Prior		Total
FICO score
700+	$	—	$	105	$	118	$	138	$	88	$	101	$	550
600-699		—		58		67		85		48		78		336
<600		—		13		17		14		5		18		67
No score(1)		—		2		2		2		1		4		11
	$	—	$	178	$	204	$	239	$	142	$	201	$	964

(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+	$	89	$	124	$	—	$	—	$	—	$	—	$	213
600-699		30		53		—		—		—		—		83
<600		6		10		—		—		—		—		16
No score(1)		1		2		—		—		—		—		3
	$	126	$	189	$	—	$	—	$	—	$	—	$	315

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

Schedule of Past Due Financing Receivables

As of March 31, 2022 and December 31, 2021, we had ceased accruing interest on timeshare financing receivables with an aggregate principal balance of $70 million and $83 million, respectively. The following tables detail an aged analysis of our gross timeshare receivables balance:

	Legacy-HGV Timeshare Financing Receivables
	March 31, 2022
($ in millions)	Securitized		Unsecuritized		Total
Current	$	516	$	536	$	1,052
31 - 90 days past due		6		9		15
91 - 120 days past due		2		3		5
121 days and greater past due		2		63		65
	$	526	$	611	$	1,137

	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
	$	579	$	573	$	1,152

As of March 31, 2022 and December 31, 2021, we had ceased accruing interest on Legacy-Diamond timeshare financing receivables with an aggregate principal balance of $396 million and $369 million, respectively. The following tables detail an aged analysis of our gross timeshare receivables balance:

	Legacy-Diamond Timeshare Financing Receivables
	March 31, 2022
($ in millions)	Securitized		Unsecuritized		Total
Current	$	397	$	447	$	844
31 - 90 days past due		14		25		39
91 - 120 days past due		5		9		14
121 days and greater past due		10		372		382
	$	426	$	853	$	1,279
	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
	$	531	$	752	$	1,283