XML 23 R12.htm IDEA: XBRL DOCUMENT
v3.25.1

VACATION OWNERSHIP NOTES RECEIVABLE | 3 Months Ended
--- | ---
Mar. 31, 2025
Receivables [Abstract] |
VACATION OWNERSHIP NOTES RECEIVABLE |
5. | VACATION OWNERSHIP NOTES RECEIVABLE
The following table shows the composition of our vacation ownership notes receivable balances, net of reserves.
| March 31, 2025 |  | December 31, 2024
($ in millions) | Originated |  | Acquired |  | Total |  | Originated |  | Acquired |  | Total
Securitized | $ | 1,876 |  |  | $ | 83 |  |  | $ | 1,959 |  |  | $ | 1,824 |  |  | $ | 93 |  |  | $ | 1,917 |
Eligible for securitization(1) | 59 |  |  | — |  |  | 59 |  |  | 92 |  |  | 2 |  |  | 94 |
Not eligible for securitization(1) | 416 |  |  | 12 |  |  | 428 |  |  | 417 |  |  | 12 |  |  | 429 |
Non-securitized | 475 |  |  | 12 |  |  | 487 |  |  | 509 |  |  | 14 |  |  | 523 |
Total | $ | 2,351 |  |  | $ | 95 |  |  | $ | 2,446 |  |  | $ | 2,333 |  |  | $ | 107 |  |  | $ | 2,440 |
(1)Refer to Footnote 6 “Financial Instruments” for discussion of eligibility of our vacation ownership notes receivable for securitization.
We reflect interest income associated with vacation ownership notes receivable on our Income Statements in the Financing revenues caption. The following table summarizes interest income associated with vacation ownership notes receivable.
| Three Months Ended |  |
($ in millions) | March 31, 2025 |  | March 31, 2024 |  |  |  |
Interest income - securitized vacation ownership notes receivable | $ | 74 |  |  | $ | 71 |  |  |  |  |
Interest income - non-securitized vacation ownership notes receivable | 12 |  |  | 10 |  |  |  |  |
Total interest income associated with vacation ownership notes receivable | $ | 86 |  |  | $ | 81 |  |  |  |  |
Credit Quality Indicators - Vacation Ownership Notes Receivable We use the origination of vacation ownership notes receivable and the FICO scores of the customer by brand as the primary credit quality indicators, as historical performance indicates that there is a relationship between the default behavior of borrowers by FICO score and the brand associated with the vacation ownership interest (“VOI”) they have acquired. The weighted average FICO score within our consolidated vacation ownership notes receivable pool was 726 and 725, at March 31, 2025 and December 31, 2024, respectively, based upon the FICO score of the borrower at the time of origination. Vacation Ownership Notes Receivable Reserve The estimates of the variable consideration for originated vacation ownership notes receivable and the reserve for credit losses on the acquired vacation ownership notes receivable are based on default rates that are an output of our static pool analyses and estimates regarding future defaults. Originated Vacation Ownership Notes Receivable Originated vacation ownership notes receivable represent vacation ownership notes receivable originated by Legacy-ILG and Legacy-Welk subsequent to each respective acquisition date, and all Legacy-MVW vacation ownership notes receivable. The following table shows future principal payments, net of reserves, and interest rates for our originated vacation ownership notes receivable at March 31, 2025.
| Originated Vacation Ownership Notes Receivable
($ in millions) | Non-Securitized |  | Securitized |  | Total
2025, remaining | $ | 66 |  |  | $ | 108 |  |  | $ | 174 |
2026 | 63 |  |  | 153 |  |  | 216 |
2027 | 57 |  |  | 160 |  |  | 217 |
2028 | 49 |  |  | 167 |  |  | 216 |
2029 | 40 |  |  | 168 |  |  | 208 |
Thereafter | 200 |  |  | 1,120 |  |  | 1,320 |
Balance at March 31, 2025 | $ | 475 |  |  | $ | 1,876 |  |  | $ | 2,351 |
Weighted average stated interest rate | 11.5% |  | 13.4% |  | 12.9%
Range of stated interest rates | 0.0% to 20.9% |  | 0.0% to 20.9% |  | 0.0% to 20.9%
For originated vacation ownership notes receivable, we record the difference between the vacation ownership note receivable and the variable consideration included in the transaction price for the sale of the related vacation ownership product as a reserve on our vacation ownership notes receivable. The following table summarizes the activity related to our originated vacation ownership notes receivable reserve during the first quarter of 2025.
| Originated Vacation Ownership Notes Receivable Reserve
($ in millions) | Non-Securitized |  | Securitized |  | Total
Balance at December 31, 2024 | $ | 252 |  |  | $ | 275 |  |  | $ | 527 |
Increase in vacation ownership notes receivable reserve | 42 |  |  | 7 |  |  | 49 |
Securitizations | (35) |  |  | 35 |  |  | — |
Write-offs | (56) |  |  | — |  |  | (56) |
Defaulted vacation ownership notes receivable repurchase activity(1) | 41 |  |  | (41) |  |  | — |
Balance at March 31, 2025 | $ | 244 |  |  | $ | 276 |  |  | $ | 520 |
(1)Reflects the change attributable to the transfer of the reserve from the securitized vacation ownership notes receivable reserve to the non-securitized vacation ownership notes receivable reserve when we voluntarily repurchased securitized vacation ownership notes receivable.
The following tables show originated vacation ownership notes receivable, before reserves, by brand and borrower FICO score at origination.
| Originated Vacation Ownership Notes Receivable as of March 31, 2025
($ in millions) | 700 + |  | 600 - 699 |  | < 600 |  | No Score |  | Total
Marriott Vacation Ownership | $ | 1,527 |  |  | $ | 628 |  |  | $ | 57 |  |  | $ | 374 |  |  | $ | 2,586 |
Hyatt Vacation Ownership | 208 |  |  | 72 |  |  | 2 |  |  | 3 |  |  | 285 |
| $ | 1,735 |  |  | $ | 700 |  |  | $ | 59 |  |  | $ | 377 |  |  | $ | 2,871 |
| Originated Vacation Ownership Notes Receivable as of December 31, 2024
($ in millions) | 700 + |  | 600 - 699 |  | < 600 |  | No Score |  | Total
Marriott Vacation Ownership | $ | 1,513 |  |  | $ | 634 |  |  | $ | 58 |  |  | $ | 365 |  |  | 2,570 |
Hyatt Vacation Ownership | 210 |  |  | 75 |  |  | 2 |  |  | 3 |  |  | 290 |
| $ | 1,723 |  |  | $ | 709 |  |  | $ | 60 |  |  | $ | 368 |  |  | $ | 2,860 |
The following tables detail the origination year of our originated vacation ownership notes receivable, before reserves, by brand and borrower FICO score at origination as of March 31, 2025, and gross write-offs by brand for the first quarter of 2025.
| Originated Vacation Ownership Notes Receivable - Marriott Vacation Ownership
($ in millions) | 2025 |  | 2024 |  | 2023 |  | 2022 |  | 2021 & Prior |  | Total
700 + | $ | 135 |  |  | $ | 499 |  |  | $ | 341 |  |  | $ | 234 |  |  | $ | 318 |  |  | $ | 1,527 |
600 - 699 | 38 |  |  | 175 |  |  | 138 |  |  | 110 |  |  | 167 |  |  | 628 |
< 600 | 4 |  |  | 17 |  |  | 12 |  |  | 9 |  |  | 15 |  |  | 57 |
No Score | 51 |  |  | 155 |  |  | 78 |  |  | 37 |  |  | 53 |  |  | 374 |
| $ | 228 |  |  | $ | 846 |  |  | $ | 569 |  |  | $ | 390 |  |  | $ | 553 |  |  | $ | 2,586 |
Gross write-offs | $ | 1 |  |  | $ | 2 |  |  | $ | 18 |  |  | $ | 11 |  |  | $ | 13 |  |  | $ | 45 |
| Originated Vacation Ownership Notes Receivable - Hyatt Vacation Ownership
($ in millions) | 2025 |  | 2024 |  | 2023 |  | 2022 |  | 2021 & Prior |  | Total
700 + | $ | 31 |  |  | $ | 73 |  |  | $ | 47 |  |  | $ | 37 |  |  | $ | 20 |  |  | $ | 208 |
600 - 699 | 8 |  |  | 26 |  |  | 17 |  |  | 14 |  |  | 7 |  |  | 72 |
< 600 | 1 |  |  | 1 |  |  | — |  |  | — |  |  | — |  |  | 2 |
No Score | — |  |  | 1 |  |  | 1 |  |  | — |  |  | 1 |  |  | 3 |
| $ | 40 |  |  | $ | 101 |  |  | $ | 65 |  |  | $ | 51 |  |  | $ | 28 |  |  | $ | 285 |
Gross write-offs | $ | — |  |  | $ | 2 |  |  | $ | 4 |  |  | $ | 4 |  |  | $ | 1 |  |  | $ | 11 |
Acquired Vacation Ownership Notes Receivable Acquired vacation ownership notes receivable represent vacation ownership notes receivable acquired as part of the ILG Acquisition and the Welk Acquisition. The following table shows future contractual principal payments, net of an $8 million reserve, and interest rates for our acquired vacation ownership notes receivable at March 31, 2025.
| Acquired Vacation Ownership Notes Receivable
($ in millions) | Non-Securitized |  | Securitized |  | Total
2025, remaining | $ | 4 |  |  | $ | 17 |  |  | $ | 21 |
2026 | 3 |  |  | 20 |  |  | 23 |
2027 | 2 |  |  | 16 |  |  | 18 |
2028 | 1 |  |  | 10 |  |  | 11 |
2029 | 1 |  |  | 7 |  |  | 8 |
Thereafter | 1 |  |  | 13 |  |  | 14 |
Balance at March 31, 2025 | $ | 12 |  |  | $ | 83 |  |  | $ | 95 |
Weighted average stated interest rate | 13.7% |  | 14.2% |  | 14.1%
Range of stated interest rates | 0.0% to 21.9% |  | 0.0% to 21.9% |  | 0.0% to 21.9%
The following tables show the acquired vacation ownership notes receivable, before reserves, by brand and borrower FICO score at origination.
| Acquired Vacation Ownership Notes Receivable as of March 31, 2025
($ in millions) | 700+ |  | 600 - 699 |  | < 600 |  | No Score |  | Total
Marriott Vacation Ownership | $ | 27 |  |  | $ | 19 |  |  | $ | 3 |  |  | $ | 4 |  |  | $ | 53 |
Hyatt Vacation Ownership | 31 |  |  | 19 |  |  | — |  |  | — |  |  | 50 |
| $ | 58 |  |  | $ | 38 |  |  | $ | 3 |  |  | $ | 4 |  |  | $ | 103 |
| Acquired Vacation Ownership Notes Receivable as of December 31, 2024
($ in millions) | 700+ |  | 600 - 699 |  | < 600 |  | No Score |  | Total
Marriott Vacation Ownership | $ | 30 |  |  | $ | 21 |  |  | $ | 3 |  |  | $ | 5 |  |  | $ | 59 |
Hyatt Vacation Ownership | 34 |  |  | 22 |  |  | — |  |  | 1 |  |  | 57 |
| $ | 64 |  |  | $ | 43 |  |  | $ | 3 |  |  | $ | 6 |  |  | $ | 116 |
Vacation Ownership Notes Receivable on Non-Accrual Status For both non-securitized and securitized vacation ownership notes receivable, we estimated the average remaining default rates of 13.86% as of March 31, 2025 and 13.96% as of December 31, 2024. A 0.5 percentage point increase in the estimated default rate would have resulted in an increase in the related vacation ownership notes receivable reserve of $14 million as of both March 31, 2025 and December 31, 2024. The following table shows our recorded investment in non-accrual vacation ownership notes receivable, which are vacation ownership notes receivable that are 90 days or more past due.
| Vacation Ownership Notes Receivable
($ in millions) | Non-Securitized |  | Securitized |  | Total
Investment in vacation ownership notes receivable on non-accrual status at March 31, 2025 | $ | 165 |  |  | $ | 24 |  |  | $ | 189 |
Investment in vacation ownership notes receivable on non-accrual status at December 31, 2024 | $ | 171 |  |  | $ | 24 |  |  | $ | 195 |
The following table shows the aging of the recorded investment in principal, before reserves, in vacation ownership notes receivable as of March 31, 2025 and December 31, 2024.
| As of March 31, 2025 |  | As of December 31, 2024
($ in millions) | Non-Securitized |  | Securitized |  | Total |  | Non-Securitized |  | Securitized |  | Total
31 – 90 days past due | $ | 25 |  |  | $ | 65 |  |  | $ | 90 |  |  | $ | 29 |  |  | $ | 74 |  |  | $ | 103 |
91 – 120 days past due | 7 |  |  | 19 |  |  | 26 |  |  | 11 |  |  | 19 |  |  | 30 |
Greater than 120 days past due | 158 |  |  | 5 |  |  | 163 |  |  | 160 |  |  | 5 |  |  | 165 |
Total past due | 190 |  |  | 89 |  |  | 279 |  |  | 200 |  |  | 98 |  |  | 298 |
Current | 544 |  |  | 2,151 |  |  | 2,695 |  |  | 579 |  |  | 2,099 |  |  | 2,678 |
Total vacation ownership notes receivable | $ | 734 |  |  | $ | 2,240 |  |  | $ | 2,974 |  |  | $ | 779 |  |  | $ | 2,197 |  |  | $ | 2,976 |

X
- Definition The entire disclosure for financing receivable. + References Reference 1: http://www.xbrl.org/2003/role/exampleRef -Topic 310 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 12A -Publisher FASB -URI https://asc.fasb.org/1943274/2147481933/310-10-55-12A Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 310 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 42 -Subparagraph (a)(2) -Publisher FASB -URI https://asc.fasb.org/1943274/2147481962/310-10-50-42 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 310 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 44 -Subparagraph (a)(1) -Publisher FASB -URI https://asc.fasb.org/1943274/2147481962/310-10-50-44 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 310 -SubTopic 10 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/310-10/tableOfContent Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 310 -SubTopic 20 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/310-20/tableOfContent + Details
Name: | us-gaap_FinancingReceivablesTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | us-gaap_ReceivablesAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration