| RECEIVABLES Receivables At September 30, 2024 and December 31, 2023, we had $960 million and $883 million, respectively, of net receivables recorded on our condensed consolidated balance sheets. The following table summarizes the activity in our receivables allowance for credit losses: | | | | | | | | | | | | | | | 2024 | | 2023 | | | | Allowance at January 1 | $ | 50 | | | $ | 63 | | | | | | | | | | | Write-offs | (4) | | | (4) | | | | | Provisions (reversals), net | 3 | | | (4) | | | | | | | | | | | Allowance at June 30 | $ | 49 | | | $ | 55 | | | | | Provisions, net | 5 | | | — | | | | | Write-offs | (1) | | | (1) | | | | | | | | | | | Allowance at September 30 | $ | 53 | | | $ | 54 | | | |
Financing Receivables | | | | | | | | | | | | | September 30, 2024 | | December 31, 2023 | | Unsecured financing to hotel owners (1) | $ | 239 | | | $ | 137 | | | Secured financing to hotel owners (2) | 133 | | | — | | | Total financing receivables | $ | 372 | | | $ | 137 | | | Less: current portion of financing receivables included in receivables, net | (23) | | | (22) | | | Less: allowance for credit losses (3) | (39) | | | (42) | | | Total long-term financing receivables, net of allowances | $ | 310 | | | $ | 73 | | (1) At September 30, 2024, unsecured financing included a $35 million loan, net of a $15 million unamortized discount based on an imputed interest rate of 9.5%, related to the seller financing issued in conjunction with the sale of an undeveloped land parcel (see Note 7). | (2) Comprised of senior and junior secured mortgage loans collateralized by underlying hotel properties, including an $85 million loan purchased and a 41 million Swiss Francs ("CHF") loan issued in conjunction with the sale of Park Hyatt Zurich (see Note 7). | (3) At September 30, 2024, there was no allowance for credit losses recorded for secured financing to hotel owners. | | | | |
Allowance for Credit Losses—The following table summarizes the activity in our unsecured financing receivables allowance for credit losses: | | | | | | | | | | | | | | | 2024 | | 2023 | | | | Allowance at January 1 | $ | 42 | | | $ | 44 | | | | | Write-offs | (3) | | | (2) | | | | | Foreign currency exchange, net | (1) | | | — | | | | | Reversals, net | — | | | (2) | | | | | | | | | | | Allowance at June 30 | $ | 38 | | | $ | 40 | | | | | | | | | | | Provisions, net | 1 | | | — | | | | | | | | | | | | | | | | | Allowance at September 30 | $ | 39 | | | $ | 40 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Credit Monitoring—Our unsecured financing receivables were as follows: | | | | | | | | | | | | | | | | | | | | | | | | | September 30, 2024 | | | Gross loan balance (principal and interest) | | Related allowance | | Net financing receivables | | Gross receivables on nonaccrual status | | | | | | | | | | | | | | | | | | | | | | | | | | Loans | $ | 232 | | | $ | (37) | | | $ | 195 | | | $ | 22 | | | | | | | | | | | | | | | | | | | Other financing arrangements | 7 | | | (2) | | | 5 | | | — | | | Total unsecured financing receivables | $ | 239 | | | $ | (39) | | | $ | 200 | | | $ | 22 | | |
| | | | | | | | | | | | | | | | | | | | | | | | | December 31, 2023 | | | Gross loan balance (principal and interest) | | Related allowance | | Net financing receivables | | Gross receivables on nonaccrual status | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Loans | $ | 128 | | | $ | (39) | | | $ | 89 | | | $ | 22 | | | Other financing arrangements | 9 | | | (3) | | | 6 | | | — | | | Total unsecured financing receivables | $ | 137 | | | $ | (42) | | | $ | 95 | | | $ | 22 | | |
Fair Value—We estimated the fair value of financing receivables to be approximately $366 million and $133 million at September 30, 2024 and December 31, 2023, respectively. The fair values, which are classified as Level Three in the fair value hierarchy, are estimated using discounted future cash flow models. The principal inputs used are projected future cash flows and the discount rate, which is generally the effective interest rate of the loan.
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