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TIMESHARE FINANCING RECEIVABLES | 12 Months Ended
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Dec. 31, 2024
Receivables [Abstract] |
TIMESHARE FINANCING RECEIVABLES | TIMESHARE FINANCING RECEIVABLES We define our timeshare financing receivables portfolios as (i) originated and (ii) acquired. The following table presents the components of each portfolio by class of timeshare financing receivables:
| Originated |  | Acquired
($ in millions) | December 31, 2024 |  | December 31, 2023 |  | December 31, 2024 |  | December 31, 2023
Securitized | $ | 1,168 |  |  | $ | 770 |  |  | $ | 641 |  |  | $ | 214 |
Unsecuritized(1) | 1,764 |  |  | 1,326 |  |  | 443 |  |  | 551 |
Timeshare financing receivables, gross | $ | 2,932 |  |  | $ | 2,096 |  |  | $ | 1,084 |  |  | $ | 765 |
Unamortized non-credit acquisition premium(2) | — |  |  | — |  |  | 62 |  |  | 32 |
Less: allowance for financing receivables losses | (804) |  |  | (500) |  |  | (268) |  |  | (279) |
Timeshare financing receivables, net | $ | 2,128 |  |  | $ | 1,596 |  |  | $ | 878 |  |  | $ | 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 $16 million and $26 million remains unamortized as of December 31, 2024 and 2023, respectively. A non-credit premium of $2 million was recognized at the Grand Islander Acquisition Date with $1 million remaining unamortized as of December 31, 2024 and 2023, respectively. Non-credit premium of $76 million was recognized at the Bluegreen Acquisition Date, of which $45 million remains unamortized as of December 31, 2024. In April 2024, we completed a securitization of approximately $240 million of gross timeshare financing receivables and issued approximately $101 million of 5.75% notes, $58 million of 5.99% notes, $46 million of 6.62% notes, and $35 million of 8.85% notes due September 2039. The securitization transaction did not qualify as a sale and, accordingly, no gain or loss was recognized. The transaction is considered a secured borrowing, and the notes from the transaction are presented as non-recourse debt. The proceeds were used to pay down in part some of the existing debt and for other general corporate purposes. In May 2024, we completed a securitization of approximately $375 million of gross timeshare financing receivables and issued approximately $217 million of 5.50% notes, $80 million of 5.65% notes, $57 million of 5.99% notes, and $21 million of 6.91% notes due March 2038. The securitization transaction did not qualify as a sale and, accordingly, no gain or loss was recognized. The transaction is considered a secured borrowing, and the notes from the transaction are presented as non-recourse debt. The proceeds were used to pay down in part some of the existing debt and for other general corporate purposes. In November 2024, we completed a securitization of approximately $500 million of timeshare loans and issued approximately $273 million of 4.98% notes, $147 million of 5.27% notes, and $80 million of 5.71% notes due August 2040. The securitization transaction did not qualify as a sale and, accordingly, no gain or loss was recognized. The transaction is considered a secured borrowing, and the notes from the transaction are presented as non-recourse debt. The proceeds were used to pay down in part some of the existing debt and for other general corporate purposes. See Note 10: Consolidated Variable Interest Entities and Note 15: Debt and Non-recourse Debt for additional information on our securitizations. As of December 31, 2024 and 2023, we had timeshare financing receivables with a carrying value of $455 million and $415 million, respectively, securing the Timeshare Facility. In connection with the acquisitions of Grand Islander and Bluegreen, we had access to additional timeshare facilities, which were terminated during the first quarter of 2024. For our originated portfolio, we record an estimate of variable consideration for estimated defaults as a reduction of revenue from VOI sales at the time revenue is recognized on a VOI sale. 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 consolidated statements of income in the period in which the change occurs. We recognize interest income on our timeshare financing receivables as earned. As of December 31, 2024 and 2023, we had interest receivable outstanding of $22 million and $17 million, respectively, on our originated timeshare financing receivables. As of both December 31, 2024 and 2023, we had interest receivable outstanding of $7 million and $4 million on our acquired timeshare financing receivables. Interest receivable is included in Other Assets within our consolidated balance sheets. The interest rate charged on the notes correlates to the risk profile of the customer at the time of purchase and the percentage of the purchase that is financed, among other factors. As of December 31, 2024, our originated timeshare financing receivables had interest rates ranging from 1.5% to 25.8%, a weighted-average interest rate of 14.9%, a weighted-average remaining term of 8.6 years and maturities through 2039. Our acquired timeshare financing receivables had interest rates ranging from 2.0% to 25.0%, a weighted-average interest rate of 15.0%, a weighted-average remaining term of 6.9 years and maturities through 2039. Allowance for Financing Receivables Losses The changes in our allowance for financing receivables losses were as follows:
($ in millions) | Originated |  | Acquired
Balance as of December 31, 2021 | $ | 280 |  |  | $ | 482 |
Provision for financing receivables losses(1) | 140 |  |  | — |
Write-offs | (70) |  |  | (119) |
Inventory recoveries | — |  |  | 29 |
Upgrades(3) | 54 |  |  | (54) |
Balance as of December 31, 2022 | $ | 404 |  |  | $ | 338 |
Provision for financing receivables losses(1) | 171 |  |  | (1) |
Initial allowance for purchased credit deteriorated financing receivables acquired during the period(2) | — |  |  | 30 |
Write-offs | (73) |  |  | (116) |
Inventory recoveries | — |  |  | 26 |
Upgrades(3) | (2) |  |  | 2 |
Balance as of December 31, 2023 | $ | 500 |  |  | $ | 279 |
Provision for financing receivables losses(1) | 363 |  |  | 14 |
Initial allowance for purchased credit deteriorated financing receivables acquired during the period(2) | — |  |  | 157 |
Write-offs | (106) |  |  | (258) |
Inventory recoveries | — |  |  | 123 |
Upgrades(3) | 47 |  |  | (47) |
Balance as of December 31, 2024 | $ | 804 |  |  | $ | 268 |
(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) The initial gross allowance determined for receivables with credit deterioration was $163 million as of the Bluegreen Acquisition Date and $30 million as of the Grand Islander Acquisition Date. We also reduced the initial allowance determined for receivables with credit deterioration for Legacy-Grand Islander by $6 million during the first quarter of 2024. (3) Represents the initial change in allowance resulting from upgrades of Acquired loans. Upgraded Acquired loans and their related allowance are included in the Originated portfolio. Originated Timeshare Financing Receivables Our originated timeshare financing receivables as of December 31, 2024, mature as follows:
| Originated Timeshare Financing Receivables
($ in millions) | Securitized |  | Unsecuritized |  | Total
Year |  |  |  |  |
2025 | $ | 118 |  |  | $ | 113 |  |  | $ | 231 |
2026 | 124 |  |  | 120 |  |  | 244 |
2027 | 129 |  |  | 135 |  |  | 264 |
2028 | 133 |  |  | 151 |  |  | 284 |
2029 | 135 |  |  | 170 |  |  | 305 |
Thereafter | 529 |  |  | 1,075 |  |  | 1,604 |
Total | $ | 1,168 |  |  | $ | 1,764 |  |  | $ | 2,932 |
Acquired Timeshare Financing Receivables with Credit Deterioration Our acquired timeshare financing receivables were deemed to be purchased credit deteriorated financial 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. The difference over which par value of the acquired purchased credit deteriorated assets exceeds the purchase price plus the initial allowance for financing receivable losses is reflected as a non-credit premium and is amortized as a reduction to interest income under the effective interest method. See Note 2: Summary of Significant Accounting Policies for additional information on the fair value methodology for our acquired timeshare financing receivables and related allowances for credit losses. Our acquired timeshare financing receivables as of December 31, 2024, mature as follows:
| Acquired Timeshare Financing Receivables
($ in millions) | Securitized |  | Unsecuritized |  | Total
Year |  |  |  |  |
2025 | $ | 78 |  |  | $ | 53 |  |  | $ | 131 |
2026 | 84 |  |  | 55 |  |  | 139 |
2027 | 89 |  |  | 54 |  |  | 143 |
2028 | 87 |  |  | 55 |  |  | 142 |
2029 | 80 |  |  | 53 |  |  | 133 |
Thereafter | 223 |  |  | 173 |  |  | 396 |
Total | $ | 641 |  |  | $ | 443 |  |  | $ | 1,084 |
Credit Quality of Timeshare Financing Receivables Originated Timeshare Financing Receivables Our originated gross balances by average FICO score of our originated timeshare financing receivables were as follows:
| Originated
| December 31, 2024
($ in millions) | HGV |  | DRI |  | Grand Islander |  | Bluegreen |  | Total
FICO score |  |  |  |  |  |  |  |  |
700+ | $ | 956 |  |  | $ | 505 |  |  | $ | 23 |  |  | $ | 356 |  |  | $ | 1,840 |
600-699 | 336 |  |  | 287 |  |  | 5 |  |  | 95 |  |  | 723 |
<600 | 41 |  |  | 42 |  |  | — |  |  | 2 |  |  | 85 |
No score(1) | 249 |  |  | 11 |  |  | 21 |  |  | 3 |  |  | 284 |
Total | $ | 1,582 |  |  | $ | 845 |  |  | $ | 49 |  |  | $ | 456 |  |  | $ | 2,932 |
(1)Timeshare financing receivables without a FICO score are primarily related to foreign borrowers.
| Originated
| December 31, 2023
($ in millions) | HGV |  | DRI |  | Grand Islander |  | Bluegreen |  | Total
FICO score |  |  |  |  |  |  |  |  |
700+ | $ | 882 |  |  | $ | 403 |  |  | $ | 3 |  |  | $ | — |  |  | $ | 1,288 |
600-699 | 311 |  |  | 220 |  |  | — |  |  | — |  |  | 531 |
<600 | 39 |  |  | 31 |  |  | — |  |  | — |  |  | 70 |
No score(1) | 196 |  |  | 8 |  |  | 3 |  |  | — |  |  | 207 |
Total | $ | 1,428 |  |  | $ | 662 |  |  | $ | 6 |  |  | $ | — |  |  | $ | 2,096 |
(1)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 average FICO score as of December 31, 2024:
| Originated Timeshare Financing Receivables
($ in millions) | 2024 |  | 2023 |  | 2022 |  | 2021 |  | 2020 |  | Prior |  | Total
FICO score |  |  |  |  |  |  |  |  |  |  |  |  |
700+ | $ | 1,009 |  |  | $ | 355 |  |  | $ | 252 |  |  | $ | 102 |  |  | $ | 23 |  |  | $ | 99 |  |  | $ | 1,840 |
600-699 | 343 |  |  | 162 |  |  | 124 |  |  | 45 |  |  | 9 |  |  | 40 |  |  | 723 |
<600 | 33 |  |  | 21 |  |  | 17 |  |  | 6 |  |  | 1 |  |  | 7 |  |  | 85 |
No score(1) | 148 |  |  | 55 |  |  | 28 |  |  | 14 |  |  | 9 |  |  | 30 |  |  | 284 |
Total | $ | 1,533 |  |  | $ | 593 |  |  | $ | 421 |  |  | $ | 167 |  |  | $ | 42 |  |  | $ | 176 |  |  | $ | 2,932 |
Current period gross write-offs | $ | 8 |  |  | $ | 7 |  |  | $ | 45 |  |  | $ | 25 |  |  | $ | 4 |  |  | $ | 17 |  |  | $ | 106 |
(1)Timeshare financing receivables without a FICO score are primarily related to foreign borrowers. As of December 31, 2024 and 2023, we had ceased accruing interest on originated timeshare financing receivables with an aggregate principal balance of $323 million and $208 million, respectively. The following tables detail an aged analysis of our gross timeshare financing receivables balance:
| Originated - Securitized
| December 31, 2024
($ in millions) | HGV |  | DRI |  | Grand Islander |  | Bluegreen |  | Total
Current | $ | 714 |  |  | $ | 279 |  |  | $ | 2 |  |  | $ | 135 |  |  | $ | 1,130 |
31 - 90 days past due | 12 |  |  | 8 |  |  | — |  |  | 4 |  |  | 24 |
91 - 120 days past due | 4 |  |  | 3 |  |  | — |  |  | 1 |  |  | 8 |
121 days and greater past due | 4 |  |  | 2 |  |  | — |  |  | — |  |  | 6 |
Total | $ | 734 |  |  | $ | 292 |  |  | $ | 2 |  |  | $ | 140 |  |  | $ | 1,168 |
| Originated - Unsecuritized
| December 31, 2024
($ in millions) | HGV |  | DRI |  | Grand Islander |  | Bluegreen |  | Total
Current | $ | 683 |  |  | $ | 389 |  |  | $ | 44 |  |  | $ | 301 |  |  | $ | 1,417 |
31 - 90 days past due | 15 |  |  | 15 |  |  | 1 |  |  | 7 |  |  | 38 |
91 - 120 days past due | 6 |  |  | 6 |  |  | 1 |  |  | 3 |  |  | 16 |
121 days and greater past due | 144 |  |  | 143 |  |  | 1 |  |  | 5 |  |  | 293 |
Total | $ | 848 |  |  | $ | 553 |  |  | $ | 47 |  |  | $ | 316 |  |  | $ | 1,764 |
| Originated - Securitized
| December 31, 2023
($ in millions) | HGV |  | DRI |  | Grand Islander |  | Bluegreen |  | Total
Current | $ | 577 |  |  | $ | 162 |  |  | $ | — |  |  | $ | — |  |  | $ | 739 |
31 - 90 days past due | 11 |  |  | 8 |  |  | — |  |  | — |  |  | 19 |
91 - 120 days past due | 4 |  |  | 3 |  |  | — |  |  | — |  |  | 7 |
121 days and greater past due | 2 |  |  | 3 |  |  | — |  |  | — |  |  | 5 |
Total | $ | 594 |  |  | $ | 176 |  |  | $ | — |  |  | $ | — |  |  | $ | 770 |
| Originated - Unsecuritized
| December 31, 2023
($ in millions) | HGV |  | DRI |  | Grand Islander |  | Bluegreen |  | Total
Current | $ | 723 |  |  | $ | 366 |  |  | $ | 6 |  |  | $ | — |  |  | $ | 1,095 |
31 - 90 days past due | 16 |  |  | 18 |  |  | — |  |  | — |  |  | 34 |
91 - 120 days past due | 4 |  |  | 7 |  |  | — |  |  | — |  |  | 11 |
121 days and greater past due | 91 |  |  | 95 |  |  | — |  |  | — |  |  | 186 |
Total | $ | 834 |  |  | $ | 486 |  |  | $ | 6 |  |  | $ | — |  |  | $ | 1,326 |
Acquired Timeshare Financing Receivables Our gross balances by average FICO score of our acquired timeshare financing receivables were as follows:
| Acquired
| December 31, 2024
($ in millions) | Legacy-DRI |  | Legacy-Grand Islander |  | Legacy-Bluegreen |  | Total
FICO score |  |  |  |  |  |  |
700+ | $ | 159 |  |  | $ | 44 |  |  | $ | 385 |  |  | $ | 588 |
600-699 | 114 |  |  | 13 |  |  | 203 |  |  | 330 |
<600 | 25 |  |  | — |  |  | 8 |  |  | 33 |
No score(1) | 9 |  |  | 120 |  |  | 4 |  |  | 133 |
Total | $ | 307 |  |  | $ | 177 |  |  | $ | 600 |  |  | $ | 1,084 |
(1)Timeshare financing receivables without a FICO score are primarily related to foreign borrowers.
| Acquired
| December 31, 2023
($ in millions) | Legacy-DRI |  | Legacy-Grand Islander |  | Legacy-Bluegreen |  | Total
FICO score |  |  |  |  |  |  |
700+ | $ | 256 |  |  | $ | 66 |  |  | $ | — |  |  | $ | 322 |
600-699 | 189 |  |  | 20 |  |  | — |  |  | 209 |
<600 | 42 |  |  | — |  |  | — |  |  | 42 |
No score(1) | 12 |  |  | 180 |  |  | — |  |  | 192 |
Total | $ | 499 |  |  | $ | 266 |  |  | $ | — |  |  | $ | 765 |
(1)Timeshare financing receivables without a FICO score are primarily related to foreign borrowers. The following tables details our gross acquired timeshare financing receivables by the origination year and average FICO score as of December 31, 2024:
| Acquired Timeshare Financing Receivables
($ in millions) | 2024 |  | 2023 |  | 2022 |  | 2021 |  | 2020 |  | Prior |  | Total
FICO score |  |  |  |  |  |  |  |  |  |  |  |  |
700+ | $ | 15 |  |  | $ | 212 |  |  | $ | 89 |  |  | $ | 72 |  |  | $ | 53 |  |  | $ | 147 |  |  | $ | 588 |
600-699 | 6 |  |  | 86 |  |  | 52 |  |  | 49 |  |  | 35 |  |  | 102 |  |  | 330 |
<600 | — |  |  | 2 |  |  | 2 |  |  | 5 |  |  | 6 |  |  | 18 |  |  | 33 |
No score(1) | — |  |  | 28 |  |  | 21 |  |  | 12 |  |  | 16 |  |  | 56 |  |  | 133 |
Total | $ | 21 |  |  | $ | 328 |  |  | $ | 164 |  |  | $ | 138 |  |  | $ | 110 |  |  | $ | 323 |  |  | $ | 1,084 |
Current period gross write-offs | $ | — |  |  | $ | 60 |  |  | $ | 33 |  |  | $ | 33 |  |  | $ | 30 |  |  | $ | 102 |  |  | $ | 258 |
(1)Timeshare financing receivables without a FICO score are primarily related to foreign borrowers. As of December 31, 2024 and 2023, we had ceased accruing interest on acquired timeshare financing receivables with an aggregate principal balance of $231 million and $279 million, respectively. The following tables detail an aged analysis of our gross timeshare receivables balance:
| Acquired - Securitized
| December 31, 2024
($ in millions) | Legacy-DRI |  | Legacy-Grand Islander |  | Legacy-Bluegreen |  | Total
Current | $ | 104 |  |  | $ | 84 |  |  | $ | 418 |  |  | $ | 606 |
31 - 90 days past due | 4 |  |  | 1 |  |  | 17 |  |  | 22 |
91 - 120 days past due | 1 |  |  | — |  |  | 8 |  |  | 9 |
121 days and greater past due | 2 |  |  | 1 |  |  | 1 |  |  | 4 |
Total | $ | 111 |  |  | $ | 86 |  |  | $ | 444 |  |  | $ | 641 |
| Acquired - Unsecuritized
| December 31, 2024
($ in millions) | Legacy-DRI |  | Legacy-Grand Islander |  | Legacy-Bluegreen |  | Total
Current | $ | 36 |  |  | $ | 68 |  |  | $ | 112 |  |  | $ | 216 |
31 - 90 days past due | 2 |  |  | 2 |  |  | 5 |  |  | 9 |
91 - 120 days past due | 1 |  |  | 1 |  |  | 2 |  |  | 4 |
121 days and greater past due | 157 |  |  | 20 |  |  | 37 |  |  | 214 |
Total | $ | 196 |  |  | $ | 91 |  |  | $ | 156 |  |  | $ | 443 |
| Acquired - Securitized
| December 31, 2023
($ in millions) | Legacy-DRI |  | Legacy-Grand Islander |  | Legacy-Bluegreen |  | Total
Current | $ | 131 |  |  | $ | 71 |  |  | $ | — |  |  | $ | 202 |
31 - 90 days past due | 6 |  |  | 1 |  |  | — |  |  | 7 |
91 - 120 days past due | 2 |  |  | — |  |  | — |  |  | 2 |
121 days and greater past due | 3 |  |  | — |  |  | — |  |  | 3 |
Total | $ | 142 |  |  | $ | 72 |  |  | $ | — |  |  | $ | 214 |
| Acquired - Unsecuritized
| December 31, 2023
($ in millions) | Legacy-DRI |  | Legacy-Grand Islander |  | Legacy-Bluegreen |  | Total
Current | $ | 92 |  |  | $ | 177 |  |  | $ | — |  |  | $ | 269 |
31 - 90 days past due | 5 |  |  | 3 |  |  | — |  |  | 8 |
91 - 120 days past due | 2 |  |  | 1 |  |  | — |  |  | 3 |
121 days and greater past due | 258 |  |  | 13 |  |  | — |  |  | 271 |
Total | $ | 357 |  |  | $ | 194 |  |  | $ | — |  |  | $ | 551 |

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