v3.26.1
TIMESHARE FINANCING RECEIVABLES
 6 Months Ended
Jun. 30, 2026
Receivables [Abstract]  
TIMESHARE FINANCING RECEIVABLES TIMESHARE FINANCING RECEIVABLES
We define our timeshare financing receivables portfolio as (i) originated and (ii) acquired. Our originated portfolio represents timeshare financing receivables that were originated by the businesses that we acquired subsequent to each respective acquisition date and all HGV timeshare financing receivables. Our acquired portfolio includes all timeshare financing receivables acquired that existed as of the respective acquisition dates.
The following table presents the components of each portfolio by class of timeshare financing receivables:
OriginatedAcquired
($ in millions)June 30,
2026		December 31,
2025		June 30,
2026		December 31,
2025
Securitized$2,116 $1,734 $583 $373 
Unsecuritized(1)
1,854 1,931 425 276 
Timeshare financing receivables, gross3,970 3,665 1,008 649 
Unamortized non-credit acquisition net premium— — 27 34 
Less: allowance for financing receivables losses(1,195)(1,078)(219)(155)
Timeshare financing receivables, net$2,775 $2,587 $816 $528 
(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.
As of June 30, 2026 and December 31, 2025, we had timeshare financing receivables of $297 million and $710 million securing the Timeshare Facility.
We recognize interest income on our timeshare financing receivables as earned. As of both June 30, 2026 and December 31, 2025, we had interest receivable outstanding of $26 million on our originated timeshare financing receivables. As of June 30, 2026 and December 31, 2025, we had interest receivable outstanding of $6 million and $4 million on our acquired timeshare financing receivables. Interest receivable is included in Other Assets within our condensed consolidated balance sheets. The interest rate charged on the notes correlates to the risk profile of the customer at the time of purchase and the percentage of the purchase that is financed, among other factors. As of June 30, 2026, our originated timeshare financing receivables had interest rates ranging from 2.0% to 25.8%, a weighted-average interest rate of 14.4%, a weighted-average remaining term of 9.0 years and maturities through 2041. Our acquired timeshare financing receivables had interest rates ranging from 2.0% to 25.0%, a weighted-average interest rate of 14.9%, a weighted-average remaining term of 6.7 years and maturities through 2041.
We apply payments we receive for loans, including those in non-accrual status, to amounts due in the following order: servicing fees; interest; principal; and late charges. Once a loan is 91 days past due, we cease accruing interest and reverse the accrued interest recognized up to that point. We resume interest accrual for loans for which we had previously ceased accruing interest once the loan is less than 91 days past due. We fully reserve for a timeshare financing receivable in the month following the date that the loan is 121 days past due and, subsequently, we write off the uncollectible note against the reserve once the foreclosure process, which is governed by product type and local law, is complete.
Allowance for Financing Receivables Losses
For our originated portfolio, we record an estimate of variable consideration for defaults as a reduction of revenue from financed VOI sales at the time revenue is recognized. We record the difference between the timeshare financing receivable and the variable consideration included in the transaction price for the sale of the related VOI as an allowance for financing receivables and record the receivable net of the allowance. For our acquired portfolio, any changes to the estimates of our allowance are recorded within Financing expense on our unaudited condensed consolidated statements of income in the period in which the change occurs.
The changes in our allowance for financing receivables losses were as follows:
($ in millions)
Originated
Acquired
Balance as of December 31, 2025
$1,078 $155 
Initial allowance for financing receivables acquired during the period— 96 
Provision for financing receivables losses(1)
217 — 
Write-offs(107)(39)
Inventory recoveries— 14 
Upgrades(2)
7 (7)
Balance as of June 30, 2026
$1,195 $219 
($ in millions)
Originated
Acquired
Balance as of December 31, 2024
$804 $268 
Provision for financing receivables losses(1)
167 13 
Write-offs(84)(132)
Inventory recoveries— 57 
Upgrades(2)
17 (17)
Balance as of June 30, 2025
$904 $189 
(1)For the Originated portfolio, this amount includes incremental provision for financing receivables losses, net of activity related to the repurchase of defaulted and upgraded timeshare financing receivables. For the Acquired portfolio, this amount includes incremental provision for credit loss expense from Acquired loans.
(2)Represents the initial change in allowance resulting from upgrades of Acquired receivables. Upgraded Acquired receivables and their related allowance are included in the Originated portfolio.
Originated Timeshare Financing Receivables
Our originated timeshare financing receivables as of June 30, 2026 mature as follows:
($ in millions)Originated Timeshare Financing Receivables
YearSecuritizedUnsecuritizedTotal
2026 (remaining)$85 $61 $146 
2027181 122 303 
2028196 133 329 
2029211 148 359 
2030229 167 396 
Thereafter1,214 1,223 2,437 
Total$2,116 $1,854 $3,970 
Acquired Timeshare Financing Receivables
Our acquired timeshare financing receivables were purchased credit deteriorated (“PCD”) assets and purchased seasoned loans (“PSL”) assets. These notes receivable were initially recognized at their purchase price, represented by the acquisition date fair value, and subsequently “grossed-up” by our acquisition date assessment of the allowance for credit losses. In the first quarter of 2026, we early adopted the amendments to ASC 326, Credit Losses, which expands the use of the gross-up approach at acquisition to all PSL assets consistent with the accounting of PCD assets. Purchased financial assets with credit deterioration had a par value of $94 million at the Elara acquisition date, compared to a purchase price of $46 million, reflecting an allowance for credit losses of $43 million and a $5 million discount to attributable to non-credit factors.
The fair value of our acquired timeshare financing receivables as of each respective acquisition date was determined using a discounted cash flow method, which calculated a present value of expected future risk-adjusted cash flows over the remaining term of the respective timeshare financing receivables. Consequently, the fair value of the acquired timeshare financing receivables recorded on our unaudited condensed consolidated balance sheet as of the respective acquisition date included an estimate of expected financing receivable losses which became the historical cost basis for that portfolio going forward.
The allowance for financing receivable losses for our acquired timeshare financing receivables is remeasured at each period end and takes into consideration an estimated measure of anticipated defaults and early repayments. We consider historical timeshare financing receivables performance and the current economic environment in the re-measurement of the allowance for financing receivable losses for our acquired timeshare financing receivables. Subsequent changes to the allowance for acquired financing receivable losses are recorded within Financing expense on our unaudited condensed consolidated statements of income in the period in which the change occurs.
Our acquired timeshare financing receivables as of June 30, 2026 mature as follows:
($ in millions)Acquired Timeshare Financing Receivables
YearSecuritizedUnsecuritizedTotal
2026 (remaining)$41 $26 $67 
202784 55 139 
202884 55 139 
202984 50 134 
203078 48 126 
Thereafter212 191 403 
Total$583 $425 $1,008 
Credit Quality of Timeshare Financing Receivables
We evaluate each portfolio collectively for purposes of estimating variable consideration, since each holds a large group of homogeneous timeshare financing receivables which are individually immaterial. We monitor the collectability of our receivables on an ongoing basis. There are no significant concentrations of credit risk with any individual counterparty or groups of counterparties. We use a technique referred to as static pool analysis as the basis for estimating expected defaults and determining our allowance for financing receivables losses on our timeshare financing receivables. The static pool analysis includes several years of default data through which we stratify our portfolio using certain key dimensions such as FICO scores and equity percentage at the time of sale. The adequacy of the related allowance is determined by management through analysis of the specific risk characteristics of the portfolio including assumed default rates, aging and historical write-offs of these receivables.
Originated Timeshare Financing Receivables
Our originated gross balances by FICO score of our originated timeshare financing receivables are below:
($ in millions)Originated
FICO score(1)
June 30,
2026		December 31,
2025
700+$2,693 $2,492 
600-699824 756 
<60089 74 
No score(2)
364 343 
Total$3,970 $3,665 
(1)During the first quarter of 2026, we updated our credit quality indicator disclosures to the use of a single FICO score from average FICO score, which is reflected in the table above.
(2)Timeshare financing receivables without a FICO score are primarily related to foreign borrowers.
The following table details our gross originated timeshare financing receivables by the origination year and FICO score as of June 30, 2026:
($ in millions)
Originated Timeshare Financing Receivables
FICO score20262025202420232022PriorTotal
700+$717 $970 $507 $218 $156 $125 $2,693 
600-699188 299 173 75 52 37 824 
<60028 31 14 7 5 4 89 
No score(1)
80 121 86 34 17 26 364 
Total$1,013 $1,421 $780 $334 $230 $192 $3,970 
Current period gross write-offs$— $5 $22 $35 $23 $22 $107 
(1)Timeshare financing receivables without a FICO score are primarily related to foreign borrowers.
As of June 30, 2026 and December 31, 2025, we had ceased accruing interest on originated timeshare financing receivables with an aggregate principal balance of $514 million and $430 million. The following table details an aged analysis of our gross timeshare receivables balance:
Originated - SecuritizedOriginated - Unsecuritized
($ in millions)June 30,
2026		December 31,
2025		June 30,
2026		December 31,
2025
Current$2,030 $1,667 $1,337 $1,482 
31 - 90 days past due51 45 38 41 
91 - 120 days past due20 16 12 16 
121 days and greater past due15 6 467 392 
Total$2,116 $1,734 $1,854 $1,931 
Acquired Timeshare Financing Receivables
Our gross balances by FICO score of our acquired timeshare financing receivables are below:
($ in millions)Acquired
FICO score(1)
June 30,
2026		December 31,
2025
700+$666 $366 
600-699251 187 
<60024 12 
No score(2)
67 84 
Total$1,008 $649 
(1)During the first quarter of 2026, we updated our credit quality indicator disclosures to the use of a single FICO score from average FICO score, which is reflected in the table above.
(2)Timeshare financing receivables without a FICO score are primarily related to foreign borrowers.
The following table details our gross acquired timeshare financing receivables by the origination year and FICO score as of June 30, 2026:
($ in millions)
Acquired Timeshare Financing Receivables
FICO score20262025202420232022PriorTotal
700+$44 $99 $78 $165 $93 $187 $666 
600-6999 21 19 61 42 99 251 
<6002 3 2 3 2 12 24 
No score(1)
— 1 1 17 11 37 67 
Total$55 $124 $100 $246 $148 $335 $1,008 
Current period gross write-offs$— $— $3 $14 $9 $13 $39 
(1)Timeshare financing receivables without a FICO score are primarily related to foreign borrowers.
As of June 30, 2026 and December 31, 2025, we had ceased accruing interest on acquired timeshare financing receivables with an aggregate principal balance of $226 million and $152 million. The following table details an aged analysis of our gross timeshare receivables balance:
Acquired - SecuritizedAcquired - Unsecuritized
($ in millions)June 30,
2026		December 31,
2025		June 30,
2026		December 31,
2025
Current$557 $357 $203 $125 
31 - 90 days past due16 9 6 6 
91 - 120 days past due6 6 4 2 
121 days and greater past due4 1 212 143 
Total$583 $373 $425 $276 
As of June 30, 2026 and December 31, 2025, our consolidated aged gross receivables balances across both our originated and acquired portfolios consisted of the following:
($ in millions)June 30,
2026		December 31,
2025
Current$4,127 $3,631 
31 - 90 days past due111 101 
91 - 120 days past due42 40 
121 days and greater past due698 542 
Total(1)
$4,978 $4,314 
(1) As of June 30, 2026, the consolidated aged gross receivables related to the Elara Acquisition were $414 million current, $10 million 31 - 90 days past due, $4 million 91 - 120 days past due and $66 million 121 days and greater past due.