Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2021 | Nov. 05, 2021 | |
Cover [Abstract] | ||
Entity Registrant Name | Hilton Grand Vacations Inc. | |
Entity Central Index Key | 0001674168 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Current Reporting Status | Yes | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2021 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 119,837,039 | |
Entity Interactive Data Current | Yes | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Title of 12(b) Security | Common Stock, $0.01 par value per share | |
Trading Symbol | HGV | |
Security Exchange Name | NYSE | |
Entity Shell Company | false | |
Entity File Number | 001-37794 | |
Entity Tax Identification Number | 81-2545345 | |
Entity Address, Address Line One | 6355 MetroWest Boulevard | |
Entity Address, Address Line Two | Suite 180 | |
Entity Address, City or Town | Orlando | |
Entity Address, State or Province | FL | |
Entity Address, Postal Zip Code | 32835 | |
City Area Code | 407 | |
Local Phone Number | 613-3100 | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity Incorporation, State or Country Code | DE |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 | |
ASSETS | |||
Cash and cash equivalents | $ 334 | $ 428 | |
Restricted cash | 230 | 98 | |
Accounts receivable, net of allowance for doubtful accounts of $44 and $20 | 278 | 119 | |
Timeshare financing receivables, net | 1,767 | 974 | |
Inventory | 1,461 | 702 | |
Property and equipment, net | 822 | 501 | |
Operating lease right-of-use assets, net | 76 | 52 | |
Investments in unconsolidated affiliates | 56 | 51 | |
Goodwill | 820 | 0 | |
Intangible assets, net | 1,953 | 81 | |
Land and infrastructure held for sale | 41 | 41 | |
Other assets | 259 | 87 | |
TOTAL ASSETS (variable interest entities - $1,113 and $800) | 8,097 | 3,134 | |
LIABILITIES AND EQUITY | |||
Accounts payable, accrued expenses and other | 707 | 252 | |
Advanced deposits | 116 | 117 | |
Debt, net | [1] | 2,929 | 1,159 |
Non-recourse debt, net | 1,290 | 766 | |
Operating lease liabilities | 93 | 67 | |
Deferred revenues | 270 | 262 | |
Deferred income tax liabilities | 798 | 137 | |
Total liabilities (variable interest entities - $1,190 and $771) | 6,203 | 2,760 | |
Commitments and contingencies - see Note 21 | |||
Equity: | |||
Preferred stock, $0.01 par value; 300,000,000 authorized shares, none issued or outstanding as of September 30, 2021 and December 31, 2020 | 0 | 0 | |
Common stock, $0.01 par value; 3,000,000,000 authorized shares, 119,803,728 shares issued and outstanding as of September 30, 2021 and 85,205,012 shares issued and outstanding as of December 31, 2020 | 1 | 1 | |
Additional paid-in capital | 1,611 | 192 | |
Accumulated retained earnings | 282 | 181 | |
Total equity | 1,894 | 374 | |
TOTAL LIABILITIES AND EQUITY | $ 8,097 | $ 3,134 | |
[1] | As of September 30, 2021 and December 31, 2020 , weighted-average interest rates were 4.108 percent and 3.357 percent, respectively. |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
Allowance for doubtful accounts receivable | $ 44 | $ 20 |
Assets, variable interest entity | 8,097 | 3,134 |
Liabilities, variable interest entity | $ 6,203 | $ 2,760 |
Preferred Stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred Stock, shares authorized | 300,000,000 | 300,000,000 |
Preferred Stock, shares issued | 0 | 0 |
Preferred Stock, shares outstanding | 0 | 0 |
Common Stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common Stock, shares authorized (in shares) | 3,000,000,000 | 3,000,000,000 |
Common Stock, shares issued (in shares) | 119,803,728 | 85,205,012 |
Common Stock, shares outstanding (in shares) | 119,803,728 | 85,205,012 |
Variable Interest Entities | ||
Assets, variable interest entity | $ 1,113 | $ 800 |
Liabilities, variable interest entity | $ 1,190 | $ 771 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (UNAUDITED) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | ||
Revenues | |||||
Total revenues | $ 928,000,000 | $ 208,000,000 | $ 1,497,000,000 | $ 682,000,000 | |
Expenses | |||||
General and administrative | 41,000,000 | 22,000,000 | 92,000,000 | 65,000,000 | |
Depreciation and amortization | 48,000,000 | 11,000,000 | 71,000,000 | 34,000,000 | |
Impairment expense | 1,000,000 | 0 | 2,000,000 | 0 | |
Total operating expenses | 719,000,000 | 210,000,000 | 1,261,000,000 | 712,000,000 | |
Interest expense | (42,000,000) | (10,000,000) | (74,000,000) | (32,000,000) | |
Equity in earnings (losses) from unconsolidated affiliates | 1,000,000 | (1,000,000) | 7,000,000 | 3,000,000 | |
Other (loss) gain, net | (20,000,000) | 1,000,000 | (22,000,000) | 0 | |
income (Loss) before income taxes | 148,000,000 | (12,000,000) | 147,000,000 | (59,000,000) | |
Income tax (expense) benefit | (49,000,000) | 5,000,000 | (46,000,000) | 12,000,000 | |
Net income (Loss) | [1] | $ 98,704,709 | $ (6,846,654) | $ 100,634,069 | $ (46,771,239) |
Earnings (Loss) per share: | |||||
Basic | $ 0.92 | $ (0.08) | $ 1.08 | $ (0.55) | |
Diluted | $ 0.90 | $ (0.08) | $ 1.07 | $ (0.55) | |
Sales of VOIs, Net | |||||
Revenues | |||||
Total revenues | $ 488,000,000 | $ 24,000,000 | $ 597,000,000 | $ 80,000,000 | |
Sales, Marketing, Brand and Other Fees | |||||
Revenues | |||||
Total revenues | 118,000,000 | 52,000,000 | 252,000,000 | 171,000,000 | |
Financing | |||||
Revenues | |||||
Total revenues | 53,000,000 | 40,000,000 | 127,000,000 | 127,000,000 | |
Expenses | |||||
Expenses | 19,000,000 | 13,000,000 | 43,000,000 | 39,000,000 | |
Resort and Club Management | |||||
Revenues | |||||
Total revenues | 99,000,000 | 39,000,000 | 192,000,000 | 122,000,000 | |
Expenses | |||||
Expenses | 26,000,000 | 9,000,000 | 45,000,000 | 27,000,000 | |
Rental and Ancillary Services | |||||
Revenues | |||||
Total revenues | 112,000,000 | 20,000,000 | 198,000,000 | 77,000,000 | |
Expenses | |||||
Expenses | 84,000,000 | 24,000,000 | 151,000,000 | 85,000,000 | |
Cost Reimbursements | |||||
Revenues | |||||
Total revenues | 58,000,000 | 33,000,000 | 131,000,000 | 105,000,000 | |
Expenses | |||||
Expenses | 58,000,000 | 33,000,000 | 131,000,000 | 105,000,000 | |
Acquisition and integration related expense [Member] | |||||
Expenses | |||||
Expenses | 54,000,000 | 0 | 83,000,000 | 0 | |
Cost of VOI Sales | |||||
Expenses | |||||
Expenses | 130,000,000 | 8,000,000 | 154,000,000 | 21,000,000 | |
Sales and Marketing | |||||
Expenses | |||||
Expenses | 234,000,000 | 79,000,000 | 432,000,000 | 297,000,000 | |
License Fee Expense | |||||
Expenses | |||||
Expenses | $ 24,000,000 | $ 11,000,000 | $ 57,000,000 | $ 39,000,000 | |
[1] | Net income (loss) for the three months ended September 30, 2021 and 2020 was $ 98,704,709 and $( 6,846,654 ), respectively, and $ 100,634,069 and $( 46,771,239 ) for the nine months ended September 30, 2021 and 2020 , respectively. |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Cash Flows (UNAUDITED) - USD ($) | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | ||
Operating Activities | |||
Net income (loss) | [1] | $ 100,634,069 | $ (46,771,239) |
Adjustments to reconcile net (loss) income to net cash provided by operating activities: | |||
Depreciation and amortization | 71,000,000 | 34,000,000 | |
Amortization of deferred financing costs, acquisition premiums and other | 19,000,000 | 13,000,000 | |
Provision for financing receivables losses | 77,000,000 | 57,000,000 | |
Impairment expense | 2,000,000 | 0 | |
Other loss, net | 7,000,000 | 0 | |
Share-based compensation | 32,000,000 | 10,000,000 | |
Deferred income tax expense (benefit) | 9,000,000 | (50,000,000) | |
Equity in earnings from unconsolidated affiliates | (7,000,000) | (3,000,000) | |
Return on investment in unconsolidated affliates | 2,000,000 | 0 | |
Net changes in assets and liabilities, net of effects of acquisition: | |||
Accounts receivable, net | (102,000,000) | 65,000,000 | |
Timeshare financing receivables, net | (36,000,000) | 87,000,000 | |
Inventory | 11,000,000 | (59,000,000) | |
Purchases and development of real estate for future conversion to inventory | (25,000,000) | (27,000,000) | |
Other assets | 62,000,000 | (25,000,000) | |
Accounts payable, accrued expenses and other | 5,000,000 | (48,000,000) | |
Advanced deposits | (5,000,000) | 4,000,000 | |
Deferred revenues | (165,000,000) | 75,000,000 | |
Net cash provided by operating activities | 36,000,000 | 86,000,000 | |
Investing Activities | |||
Acquisition of Diamond, net of cash and restricted cash acquired | (1,585,000,000) | 0 | |
Capital expenditures for property and equipment | (11,000,000) | (6,000,000) | |
Software capitalization costs | (14,000,000) | (16,000,000) | |
Investments in unconsolidated affiliates | 0 | (2,000,000) | |
Net cash used in investing activities | (1,610,000,000) | (24,000,000) | |
Financing Activities | |||
Issuance of debt | 2,650,000,000 | 495,000,000 | |
Issuance of non-recourse debt | 96,000,000 | 495,000,000 | |
Repayment of debt | (843,000,000) | (62,000,000) | |
Repayment of non-recourse debt | (234,000,000) | (403,000,000) | |
Debt issuance costs and discounts | (61,000,000) | (8,000,000) | |
Repurchase and retirement of common stock | 0 | (10,000,000) | |
Payment of withholding taxes on vesting of restricted stock units | (5,000,000) | (3,000,000) | |
Proceeds from employee stock plan purchases | 1,000,000 | 1,000,000 | |
Proceeds from stock option exercises | 10,000,000 | 0 | |
Other financing activity | (2,000,000) | (2,000,000) | |
Net cash provided by financing activities | 1,612,000,000 | 503,000,000 | |
Net increase in cash, cash equivalents and restricted cash | 38,000,000 | 565,000,000 | |
Cash, cash equivalents and restricted cash, beginning of period | 526,000,000 | 152,000,000 | |
Cash, cash equivalents and restricted cash, end of period | 564,000,000 | 717,000,000 | |
Supplementary disclosure of non-cash operating activities: | |||
Non-cash transfers from Property and Equipment to Inventory | 0 | 301,000,000 | |
Supplemental disclosure of non-cash investing activities | |||
Non-cash issuance of stock | [2] | $ 1,381,000,000 | $ 0 |
[1] | Net income (loss) for the three months ended September 30, 2021 and 2020 was $ 98,704,709 and $( 6,846,654 ), respectively, and $ 100,634,069 and $( 46,771,239 ) for the nine months ended September 30, 2021 and 2020 , respectively. | ||
[2] | Non-cash issuance of stock related to our acquisition of Diamond. See Note 3: Diamond Acquisition for additional information. |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Stockholders' Equity (UNAUDITED) - USD ($) | Total | Diamond Acquisition | Common Stock | Common StockDiamond Acquisition | Additional Paid-in Capital | Additional Paid-in CapitalDiamond Acquisition | Accumulated Retained Earnings | ||
Beginning balance, value at Dec. 31, 2019 | $ 570,000,000 | $ 1,000,000 | $ 179,000,000 | $ 390,000,000 | |||||
Beginning balance, shares at Dec. 31, 2019 | 85,000,000 | ||||||||
Net income (loss) | 8,000,000 | 8,000,000 | |||||||
Activity related to share-based compensation | (5,000,000) | (5,000,000) | |||||||
Repurchase and retirement of common stock | (10,000,000) | (2,000,000) | (8,000,000) | ||||||
Repurchase and retirement of common stock, shares | (1,000,000) | ||||||||
Ending balance, value at Mar. 31, 2020 | 563,000,000 | $ 1,000,000 | 172,000,000 | 390,000,000 | |||||
Ending balance, shares at Mar. 31, 2020 | 84,000,000 | ||||||||
Beginning balance, value at Dec. 31, 2019 | 570,000,000 | $ 1,000,000 | 179,000,000 | 390,000,000 | |||||
Beginning balance, shares at Dec. 31, 2019 | 85,000,000 | ||||||||
Net income (loss) | [1] | (46,771,239) | |||||||
Ending balance, value at Sep. 30, 2020 | 522,000,000 | $ 1,000,000 | 186,000,000 | 335,000,000 | |||||
Ending balance, shares at Sep. 30, 2020 | 84,000,000 | ||||||||
Beginning balance, value at Mar. 31, 2020 | 563,000,000 | $ 1,000,000 | 172,000,000 | 390,000,000 | |||||
Beginning balance, shares at Mar. 31, 2020 | 84,000,000 | ||||||||
Net income (loss) | (48,000,000) | (48,000,000) | |||||||
Activity related to share-based compensation | 8,000,000 | 8,000,000 | |||||||
Ending balance, value at Jun. 30, 2020 | 523,000,000 | $ 1,000,000 | 180,000,000 | 342,000,000 | |||||
Ending balance, shares at Jun. 30, 2020 | 84,000,000 | ||||||||
Net income (loss) | (6,846,654) | [1] | (7,000,000) | ||||||
Repurchase and retirement of common stock | 6,000,000 | 6,000,000 | |||||||
Ending balance, value at Sep. 30, 2020 | 522,000,000 | $ 1,000,000 | 186,000,000 | 335,000,000 | |||||
Ending balance, shares at Sep. 30, 2020 | 84,000,000 | ||||||||
Beginning balance, value at Dec. 31, 2020 | $ 374,000,000 | $ 1,000,000 | 192,000,000 | 181,000,000 | |||||
Beginning balance, shares at Dec. 31, 2020 | 85,205,012 | 84,000,000 | |||||||
Net income (loss) | $ (7,000,000) | (7,000,000) | |||||||
Activity related to share-based compensation | 2,000,000 | 2,000,000 | |||||||
Ending balance, value at Mar. 31, 2021 | 369,000,000 | $ 1,000,000 | 194,000,000 | 174,000,000 | |||||
Ending balance, shares at Mar. 31, 2021 | 84,000,000 | ||||||||
Beginning balance, value at Dec. 31, 2020 | $ 374,000,000 | $ 1,000,000 | 192,000,000 | 181,000,000 | |||||
Beginning balance, shares at Dec. 31, 2020 | 85,205,012 | 84,000,000 | |||||||
Net income (loss) | [1] | $ 100,634,069 | |||||||
Ending balance, value at Sep. 30, 2021 | $ 1,894,000,000 | $ 1,000,000 | 1,611,000,000 | 282,000,000 | |||||
Ending balance, shares at Sep. 30, 2021 | 119,803,728 | 120,000,000 | |||||||
Beginning balance, value at Mar. 31, 2021 | $ 369,000,000 | $ 1,000,000 | 194,000,000 | 174,000,000 | |||||
Beginning balance, shares at Mar. 31, 2021 | 84,000,000 | ||||||||
Net income (loss) | 9,000,000 | 9,000,000 | |||||||
Activity related to share-based compensation | 18,000,000 | 18,000,000 | |||||||
Activity related to share based compensation shares | 1,000,000 | ||||||||
Ending balance, value at Jun. 30, 2021 | 396,000,000 | $ 1,000,000 | 212,000,000 | 183,000,000 | |||||
Ending balance, shares at Jun. 30, 2021 | 85,000,000 | ||||||||
Net income (loss) | 98,704,709 | [1] | 99,000,000 | ||||||
Shares issued for Diamond Acquisition | $ 1,381,000,000 | $ 1,381,000,000 | |||||||
Shares issued for Diamond Acquisition, Shares | 34,000,000 | ||||||||
Activity related to share-based compensation | 18,000,000 | 18,000,000 | |||||||
Activity related to share based compensation shares | 1,000,000 | ||||||||
Ending balance, value at Sep. 30, 2021 | $ 1,894,000,000 | $ 1,000,000 | $ 1,611,000,000 | $ 282,000,000 | |||||
Ending balance, shares at Sep. 30, 2021 | 119,803,728 | 120,000,000 | |||||||
[1] | Net income (loss) for the three months ended September 30, 2021 and 2020 was $ 98,704,709 and $( 6,846,654 ), respectively, and $ 100,634,069 and $( 46,771,239 ) for the nine months ended September 30, 2021 and 2020 , respectively. |
Organization and Basis of Prese
Organization and Basis of Presentation | 9 Months Ended |
Sep. 30, 2021 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Organization and Basis of Presentation | Note 1: Organization and Basis of Presentation Our Business Hilton Grand Vacations Inc. (“Hilton Grand Vacations,” “we,” “us,” “our,” “HGV” or the “Company”) is a global timeshare company engaged in developing, marketing, selling and managing timeshare resorts primarily under the Hilton Grand Vacations brand. Our Company also includes Diamond Resorts ("Diamond"). Our operations primarily consist of: selling vacation ownership intervals and vacation ownership interests (collectively, “VOIs”) for us and third parties; financing and servicing loans provided to consumers for their timeshare purchases; operating resorts and multi-resort trusts; and managing our points-based Hilton Grand Vacations Club and Hilton Club exchange program (collectively the “Legacy-HGV Club”) and Diamond points-based clubs. As of September 30, 2021 , we had 154 properties located in the United States (“U.S.”), Europe, Canada, the Caribbean, Japan and Mexico. A significant number of our properties and VOIs are concentrated in Florida, Europe, Hawaii, California, Arizona, Nevada, and Virginia. Diamond Acquisition On August 2, 2021, we completed the acquisition of Dakota Holdings, Inc., the parent of Diamond (the “Diamond Acquisition”). We completed the acquisition by exchanging 100 percent of the outstanding equity interests of Diamond into shares of HGV common stock. Pre-existing HGV shareholders own approximately 72 percent of the combined company after giving effect of the Diamond Acquisition, with certain funds controlled by Apollo Global Management Inc. (the "Apollo Funds" or, "Apollo") and other minority shareholders, who previously owned 100 percent of Diamond, holding the remaining approximately 28 percent after giving effect to the Diamond Acquisition. Diamond also operates in the hospitality and VOI industry, with a worldwide resort network of global vacation destinations. Diamond’s portfolio consists of resort properties (the “Portfolio Properties”) that we manage, are included in one of Diamond's single- and multi-use trusts (collectively, the "Diamond Collections"), or are Diamond branded resorts in which we own inventory, as well as affiliated resorts and hotels, which we do not manage, and which do not carry the Diamond brand but are a part of Diamond's network and, through THE Club® and other Club offerings (the “Diamond Clubs”), are available for its members to use as vacation destinations. Diamond’s operations primarily consist of: VOI sales and financing which includes marketing and sales of VOIs and consumer financing for purchasers of the Company's VOIs; operations related to the management of the homeowners associations (the “HOAs”) for resort properties and the Diamond Collections, operating and managing points-based vacation clubs, and operation of certain resort amenities and management services. The unaudited condensed consolidated financial statements in this report include Diamond’s results of operations beginning on August 2, 2021. We refer to Diamond's business and operations that we acquired as "Legacy-Diamond", and our business and operations that existed both prior to and following the Diamond Acquisition as "Legacy-HGV." See Note 3: Diamond Acquisition for more information. Of our 154 properties, we had 92 properties that are Legacy-Diamond as of September 30, 2021. Basis of Presentation The unaudited condensed consolidated financial statements presented herein include 100 percent of our assets, liabilities, revenues, expenses and cash flows as well as all entities in which we have a controlling financial interest. In our opinion, the accompanying unaudited condensed consolidated financial statements reflect all adjustments, including normal recurring items, considered necessary for a fair presentation of the interim periods. All material intercompany transactions and balances have been eliminated in consolidation. The unaudited condensed consolidated financial statements reflect our financial position, results of operations and cash flows as prepared in conformity with U.S. generally accepted accounting principles (“U.S. GAAP”). Certain information and footnote disclosures normally included in financial statements presented in accordance with U.S. GAAP have been omitted in accordance with the rules and regulations of the Securities and Exchange Commission (“SEC”). Although we believe the disclosures made are adequate to prevent information presented from being misleading, these financial statements should be read in conjunction with the consolidated financial statements and notes thereto as of and for the year ended December 31, 2020, included in our Annual Report on Form 10-K filed with the SEC on March 1, 2021. The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported and, accordingly, ultimate results could differ from those estimates. Interim results are not necessarily indicative of full year performance. The determination of a controlling financial interest is based upon the terms of the governing agreements of the respective entities, including the evaluation of rights held by other interests. If the entity is considered to be a variable interest entity (“VIE”), we determine whether we are the primary beneficiary, and then consolidate those VIEs for which we have determined we are the primary beneficiary. If the entity in which we hold an interest does not meet the definition of a VIE, we evaluate whether we have a controlling financial interest through our voting interests in the entity. We consolidate entities when we own more than 50 percent of the voting shares of a company or otherwise have a controlling financial interest. The consolidated financial statements reflect our financial position, results of operations and cash flows as prepared in conformity with U.S. GAAP. Impact of the COVID-19 Pandemic As of September 30, 2021, nearly all of our resorts and sales centers which had previously closed due to the COVID-19 pandemic were open and operating, although some are still operating in markets with various capacity constraints, social distancing requirements and other safety measures, which are impacting consumer demand for resorts in those markets. Subsequent to September 30, 2021, all of our resorts and all but three of our sales centers have fully reopened. We plan to continue our normal business as conditions permit, but there can be no assurance that such positive trends will continue or that there will not be any increases of new infections and/or new variants (such as Delta variant) that may result in the reimposition of social distancing measures and/or restrictions in certain jurisdictions, as well as travel restrictions that may impede or reverse our recovery. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2021 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Summary of Significant Accounting Policies | Note 2: Summary of Significant Accounting Policies Contracts with Multiple Performance Obligations A performance obligation is a promise in a contract to transfer a distinct good or service to the customer and is the unit of account in ASC 606. For arrangements that contain multiple goods or services, we determine whether such goods or services are distinct performance obligations that should be accounted for separately in the arrangement. When allocating the transaction price in the arrangement, we may not have observable standalone sales for all of the performance obligations in these contracts; therefore, we exercise significant judgement when determining the standalone selling price of certain performance obligations. In order to estimate the standalone selling prices for products other than Collections contracts, we primarily rely on the expected cost plus margin and adjusted market assessment approaches. We estimate stand-alone selling price for Collections contracts based on historical information, including expected breakage in contracts with multiple performance obligations, and allocate the remainder of the transaction price to the sale of points-based VOIs due to the variability in observable historical prices for traditional VOI sales. We then recognize the revenue allocated to each performance obligation as the related performance obligation is satisfied as discussed below. Sales of VOIs, net — Customers who purchase all Legacy-HGV vacation ownership products, whether paid in cash or financed, enter into multiple contracts, which we combine and account for as a single contract. Revenue from VOI sales is recognized at the point in time when control of the VOI is transferred to the customer which is when the customer has executed a binding sales contract, collectability is reasonably assured, the purchaser’s period to cancel for a refund has expired and the customer has the right to use the VOI. Revenue from sales of VOIs under construction is deferred until the point in time when construction activities are deemed to be completed, occupancy of the development is permissible, and the above criteria has been met. For financed sales, we estimate the variable consideration to be received under such contracts and recognize revenue net of amounts deemed uncollectible as the VOI is returned to inventory upon customer default. Variable consideration which has not been included within the transaction price is presented as a reserve on the financing receivable. See Note 7: Timeshare Financing Receivables for more information regarding our estimate of variable consideration. Vacation ownership product sales include revenue from the sale of VOIs, which in the case of the Diamond Collections are represented by an annual or biennial allotment of points that can be utilized for vacations at any of the resorts in our network for varying lengths of stay. Typical contracts include the sale of VOIs, certain sales incentives primarily in the form of additional points for use over a specified period of time (“Bonus Points”), and generally membership in the Legacy-HGV Club or Diamond Clubs, each of which represent a separate and distinct performance obligation for which consideration is allocated based on the estimated stand-alone selling price of the sales incentives and membership dues. We recognize revenue related to our VOIs when control of the points passes to the customer, which generally occurs after the expiration of the applicable statutory rescission period and after collectability is reasonably assured and the customer has the right to use the VOI. Bonus Points are valid for a specified period of time (generally for a period between 18 and 30 months) and may be used for stays at properties within our resort network, and in the case of HGV, hotel reservations within Hilton’s system and VOI interval exchanges with other third-party vacation ownership exchanges. At the time of the VOI sale, we estimate the fair value of sales incentives to be redeemed, including an adjustment for estimated breakage, to determine the standalone selling price of these incentives (“FDI”). We defer a portion of the total transaction price for the combined VOI contract as a liability for the FDI and recognize the corresponding revenue at the point in time when the customer receives the benefits of the FDI, which is upon the customer’s redemption of the Bonus Points. At that time, we also determine whether we are principal or agent for the redeemed good or service and recognize revenue on a gross or net basis accordingly. Contracts’ financed amount represents variable consideration which is estimated based on the expected value method to the extent that it is probable a significant reversal is not expected to occur. We estimate the expected value to be collected based on historical default rates and recognize revenue net of amounts deemed to be uncollectible. Variable consideration that has not been included in the transaction price is presented as a reserve on the financing receivable. See Note 7: Timeshare Financing Receivables for more information regarding our estimate of variable consideration. Sales, marketing, brand and other fees — We enter into contracts with third-party developers to sell VOIs on their behalf through fee-for-service agreements for which we earn sales commissions and other fees. These commissions are variable as they are based on the sales and marketing results, which are subject to the constraint on variable consideration and resolved on a monthly basis over the contract term. We estimate such commissions to the extent that it is probable that a significant reversal of such revenue will not occur and recognize the commissions as the developer receives and consumes the benefits of the services. Any changes in these estimates would affect revenue and earnings in the period such variances are realized. Additionally, we enter into contracts to sell prepaid vacation packages. Our obligation in such contracts is satisfied when customers stay at our property; therefore, we recognize revenue for these packages when they are redeemed. On a portfolio basis, we exercise judgement to estimate the amount of expected breakage related to unused prepaid vacation packages and recognize such breakage in proportion to the pattern of packages utilized by our portfolio of customers. Financing — We offer financing to qualifying customers purchasing our VOIs. Revenue from the financing of timeshare sales is recognized on the accrual method as earned based on the outstanding principal, interest rate and terms stated in each individual financing agreement. We also recognize revenue from servicing the loans provided by third-party developers to purchasers of their VOIs over the period services are rendered. Resort and club management — As part of our VOI sales, a majority of our customers enter into a Legacy-HGV Club or Diamond Club arrangement (referred to collectively as “Clubs”) which allows the member to exchange points for a number of vacation options. We manage the Clubs, receiving, annual dues, transaction fees from member exchanges, and, in the case of the Legacy-HGV Club, activation fees. The member's first year of annual dues and, in the case of the Legacy-HGV Club, the activation fee, are payable at the time of the VOI sale. The Legacy-HGV Club activation fee relates to activities we are required to undertake at or near contract inception to fulfill the contract and does not result in the transfer of a promised good or service. Since our customers are granted the opportunity to renew their membership on an annual basis for no additional activation fee, we defer and amortize the activation fee on a straight-line basis over the seven-year average inventory holding period. Annual dues for membership renewals are billed each year, and we recognize revenue from these annual dues over the period services are rendered. A member may elect to enter into an optional exchange transaction with at which point the member pays their required transaction fee. This option does not represent a material right as the transactions are priced at their standalone selling price. Revenue related to the transaction is recognized when the services are rendered. As part of our resort operations, we contract with HOAs to provide day-to-day-management services, including housekeeping services, operation of a reservation system, maintenance, and certain accounting and administrative services. We receive compensation for such management services, which is generally based on a percentage of costs to operate the resorts, on a monthly basis. These fees represent a form of variable consideration and are estimated and recognized over time as the HOAs receive and consume the benefits of the management services. Management fees received related to the portion of unsold VOIs at each resort which we own are recognized on a net basis given we retain these VOIs in our inventory. Rental and ancillary services — Our rental and ancillary services consist primarily of rental revenues on unoccupied vacation ownership units, inventory made available due to ownership exchanges through our club program and ancillary revenues. Rental revenue is recognized when occupancy has occurred. Advance deposits on the rental unit and the corresponding revenue is deferred and recognized upon the customer’s vacation stay. Ancillary revenues consist of food and beverage, retail, spa offerings and other items. We recognize ancillary revenue when goods have been provided and/or services have been rendered. We account for rental operations of unsold VOIs, including accommodations provided through the use of our vacation sampler programs, as incidental operations. Incremental carrying costs in excess of incremental revenues are recognized in the period incurred. In all periods presented, incremental carrying costs exceeded incremental revenues and all revenues and expenses are recognized in the period earned or incurred. Cost reimbursements — As part of our management agreements with HOAs and fee-for-service developers, we receive cost reimbursements for performing the day-to-day management services, including direct and indirect costs that HOAs and developers reimburse to us. These costs primarily consist of insurance, payroll and payroll related costs for management of the HOAs and other services we provide where we are the employer and insurance. Cost reimbursements are based upon actual expenses with no added margin, and are billed to the HOA on a monthly basis. We recognize cost reimbursements when we incur the related reimbursable costs as the HOA receives and consumes the benefits of the management services. We capitalize all incremental costs incurred to obtain a contract when such costs would not have been incurred if the contract had not been obtained. We elect to expense costs incurred to obtain a contract when the deferral period would be one year or less. Commissions for VOI sales for resorts under construction are expensed when the associated VOI revenue is recognized which is upon completion of the resort. These commissions are classified as Sales and marketing expense in our consolidated statements of operations. These contract costs are recognized at the point in time that the revenue related to the incentive is recognized and included within Sales of VOIs , net on the consolidated statements of operations. Business Combinations We account for our business combinations in accordance with the acquisition method of accounting. We allocate the purchase price of an acquisition to the tangible and intangible assets acquired and liabilities assumed based on their estimated fair values at the acquisition date. For each acquisition, we recognize goodwill as the amount in which consideration transferred for the acquired entity exceeds the fair values of net assets. The fair value of net assets is the fair value assigned to the assets acquired reduced by the fair value assigned to liabilities assumed. In determining the fair values of assets acquired and liabilities assumed, we use various recognized valuation methods including the income, cost and sales and market approaches, which also include certain valuation techniques such as discount rates, and the amount and timing of future cash flows. We utilize independent valuation specialists under our supervision for certain of our assignments of fair value. We record the net assets and results of operations of an acquired entity in our condensed consolidated financial statements from the acquisition date through period-end. We expense acquisition-related expenses as incurred and include such expenses within Acquisition and integration-related expense on our condensed consolidated statements of operations. See Note 3: Diamond Acquisition for further information. Acquired Financial Assets with Credit Deterioration When financial assets are acquired, whether in connection with a business combination or an asset acquisition, we evaluate whether those acquired financial assets have experienced a more-than-insignificant deterioration in credit quality since origination. Financial assets that were acquired with evidence of such credit deterioration are referred to as purchased credit deteriorated ("PCD") assets and reflect the acquirer’s assessment at the acquisition date. The evaluation of PCD assets is a qualitative assessment requiring significant management judgment. We consider indicators such as delinquency, FICO score deterioration, purchased credit impaired status from prior acquisition, certain account status codes which we believe are indicative of credit deterioration, as well as certain loan activity such as modifications and downgrades. In addition, we consider the impact of current and forward-looking economic conditions relative to the conditions which would have existed at origination. Acquired PCD assets are recorded at the purchase price, represented by the acquisition date fair value, and subsequently “grossed-up” by the acquirer’s acquisition date assessment of the allowance for credit losses. The purchase price and the initial allowance for credit losses collectively represent the PCD asset’s initial amortized cost basis. While the initial allowance for credit losses of PCD assets does not impact period earnings, the Company remeasures the allowance for credit losses for PCD assets during each subsequent reporting period; changes in the allowance are recognized as provision expense within period earnings. The difference over which par value of the acquired PCD assets exceeds the purchase price plus the initial allowance for credit losses is reflected as a non-credit discount (or premium) and is accreted into interest income (or as a reduction to interest income) under the effective interest method. Acquired financial assets which are not PCD assets are also recorded at the purchase price but are not similarly “grossed-up”. The acquirer recognizes an allowance for credit losses as of the acquisition date, which is recognized with a corresponding provision expense impact within earnings. The allowance is remeasured within each subsequent reporting period in the same manner as for PCD assets, with any change in the allowance recognized as provision expense in period earnings. See Note 3: Diamond Acquisition and Note 7: Timeshare Financing Receivables for further information. Goodwill We do not amortize goodwill. We evaluate goodwill for potential impairment at least annually, or more frequently if an event or other circumstance indicates that it is more-likely-than-not that we may not be able to recover the carrying amount (book value) of the net assets of the related reporting unit. When evaluating goodwill for impairment, we may perform the optional qualitative assessment by considering factors including macroeconomic conditions, industry and market conditions and overall financial performance. If we bypass the qualitative assessment, or if we conclude that it is more likely than not that the fair value of a reporting unit is less than its carrying value, then we perform a quantitative impairment test by comparing the fair value of a reporting unit with its carrying amount. We only recognize an impairment on goodwill if the estimated fair value of a reporting unit is less than its carrying value, in an amount not to exceed the carrying value of the reporting unit's goodwill. Intangible Assets Our intangible assets consist of management agreements, trade name, customer relationships and certain proprietary technologies with finite lives. We have management agreements, trade name, vacation ownership customer relationships, and software intangibles that were recorded at their fair value as part of the Diamond Acquisition. We also have management agreements that were recorded at their fair value at the time of the completion of a merger on October 24, 2007 where Hilton became a wholly-owned subsidiary of an affiliate of The Blackstone Group L.P. (“Blackstone”). Additionally, we capitalize costs incurred to develop internal-use computer software, including costs incurred in connection with development of upgrades or enhancements that result in additional functionality. These capitalized costs are included in Intangible assets, net in our consolidated balance sheets. Intangible assets with finite useful lives are amortized using the straight-line method over their respective useful lives, which varies for each type of intangible. In our condensed consolidated statements of operations, the amortization of these intangible assets is included in depreciation and amortization expense and the amortization of costs to obtain a contract is recognized as a reduction to the related revenues. We review all finite life intangible assets for impairment when circumstances indicate that their carrying amounts may not be recoverable. If the carrying value of an asset group is not recoverable, we recognize an impairment loss for the excess of the carrying value over the fair value in our condensed consolidated statements of operations. Restricted Cash Restricted cash includes deposits received on VOI sales that are held in escrow until legal requirements of the local jurisdictions are met with regards to project construction or our contract status and cash reserves required by our non-recourse debt agreements. Restricted cash also includes certain amounts collected on behalf of HOAs. Reclassifications Certain prior period amounts in the footnotes to the unaudited condensed consolidated financial statements have been reclassified to conform to the current period presentation with no effect on previously reported total assets and total liabilities, net income or stockholders’ equity. Recently Issued Accounting Pronouncements Adopted Accounting Standards On January 1, 2021 we adopted Accounting Standards Update 2019-12 (“ASU 2019-12”), Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. ASU 2019-12 simplifies various aspects related to accounting for income taxes by removing certain exceptions to the general principles in Topic 740 and clarifies and amends existing guidance to improve consistent application. The adoption of ASU 2019-12 did not have a material impact on our unaudited condensed consolidated financial statements and related disclosures. Accounting Standards Not Yet Adopted I n March 2020, the FASB issued ASU 2020-04 (“ASU 2020-04”), Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting. ASU 2020-04 provides optional expedients and exceptions for applying U.S.GAAP to contracts, hedging relationships, and other transactions affected by the discontinuation of the London Interbank Offered Rate (“LIBOR”) or by another reference rate expected to be discontinued. The guidance was effective as of March 12, 2020 and will apply through December 31, 2022. We are currently evaluating the effect of this ASU but we do not expect it to have a material impact on our consolidated or unaudited condensed consolidated financial statements. |
Diamond Acquisition
Diamond Acquisition | 9 Months Ended |
Sep. 30, 2021 | |
Business Combinations [Abstract] | |
Diamond Acquisition | Note 3: Diamond Acquisition On August 2, 2021, (the “Acquisition Date”), we completed the Diamond Acquisition by exchanging 100 percent of the outstanding equity interests of Diamond to HGV common shares. Following the closing of the Diamond Acquisition, pre-existing HGV shareholders owned approximately 72 percent of the combined company after giving effect to the Diamond Acquisition, with Apollo Funds and other minority shareholders holding the remaining approximately 28 percent after giving effect to the acquisition. Diamond is a leader in the vacation ownership industry focused on the infusion of hospitality and experiences through the full life cycle of an owner or members' life cycle relationship with Diamond. This strategic combination creates a more expansive industry offering, leveraging HGV's strong brand and net owner growth along with Diamond's diverse network of locations and strength in experiential offerings. The acquisition also diversifies our product offerings and allows us to expand our customer demographic. On the Acquisition Date, shareholders of Diamond received 0.32 shares of our common stock for each share of Diamond common stock, totaling approximately 28 percent of our total common shares outstanding. Additionally, in connection with the Diamond Acquisition, HGV was required to repay certain existing indebtedness of Diamond. Costs related to the acquisition for the nine months ended September 30, 2021 were $ 83 million, which were expensed as incurred, and reflected as Acquisition and integration-related expense in our condensed consolidated statements of operations. The following table presents the fair value of each class of consideration transferred in relation to the Diamond Acquisition at the Acquisition Date. ($ in millions, except stock price amounts) HGV common stock shares issued for outstanding Diamond shares 33.93 HGV common stock price as of Acquisition Date (1) 40.71 Stock purchase price $ 1,381 Repayment of Legacy-Diamond debt $ 2,029 Total consideration transferred $ 3,410 (1) Represents the average of the opening and closing price of HGV stock on August 2, 2021. Preliminary Fair Values of Assets Acquired and Liabilities Assumed We accounted for the Diamond Acquisition as a business combination, which requires us to record the assets acquired and liabilities assumed at fair value as of the Acquisition Date. The preliminary fair values of the assets acquired and liabilities assumed, which are presented in the table below, and the related preliminary acquisition accounting are based on management’s estimates and assumptions, as well as information compiled by management, including the books and records of Diamond. Our estimates and assumptions are subject to change during the measurement period, not to exceed one year from the Acquisition Date. The magnitude of the Diamond Acquisition could necessitate the need to use the full one-year measurement period to adequately analyze and assess a number of the factors used in establishing the asset and liability fair values as of the Acquisition Date. The final values may also result in changes to amortization expense related to intangible assets and depreciation expense related to property and equipment, among other changes. Any potential adjustments made could be material in relation to the values presented in the table below. As discussed more fully below, the primary areas of the purchase price allocation that are not yet finalized include the following: (1) finalizing the review and valuation of acquired intangible assets (including key assumptions, inputs and estimates) and assigning the useful lives to such assets; (2) finalizing the review and valuation of acquired inventory, property and equipment (including key assumptions, inputs and estimates) and assigning the remaining useful lives to the depreciable assets; (3) finalizing the review and valuation of acquired timeshare financing receivables (including key assumptions, inputs and estimates); (4) finalizing the valuation of certain in-place contracts or contractual relationships (including but not limited to leases), including determining the appropriate amortization period; (5) finalizing the review and valuation of other acquired assets and assumed liabilities, including debt assumed; and (6) finalizing our estimate of the impact of purchase accounting on deferred income tax liabilities. ($ in millions) Assets acquired Cash and cash equivalents $ 314 Restricted cash 130 Accounts receivable, net of allowance for doubtful accounts 58 Timeshare financing receivables, net 841 Inventory 745 Property and equipment, net 307 Operating lease right-of-use assets, net 30 Intangible assets, net 1,906 Other assets 243 Total assets acquired $ 4,574 Liabilities assumed Accounts payable, accrued expenses and other $ 448 Debt, net 14 Non-recourse debt, net 661 Operating lease liabilities 33 Advanced deposits 4 Deferred revenues 173 Deferred income tax liabilities 651 Total liabilities assumed $ 1,984 Net assets acquired $ 2,590 Total consideration transferred $ 3,410 Goodwill (1) $ 820 (1) Goodwill is calculated as total consideration transferred less net assets acquired and it primarily represents the value that we expect to obtain from synergies and growth opportunities from our Combined Company post-acquisition. We have not completed the assignment of goodwill to reporting units or to our reportable segments as of September 30, 2021. The majority of goodwill is not expected to be deductible for tax purposes. Timeshare Financing Receivables We acquired timeshare financing receivables which consist of loans to customers who purchased vacation ownership products and chose to finance their purchases. These timeshare financing receivables are collateralized by the underlying VOIs and generally have 10-year amortizing repayment terms. We preliminarily estimated the fair value of the timeshare financing receivables using a discounted cash flow model, which calculated a present value of expected future risk-adjusted cash flows over the remaining term of the respective timeshare financing receivables. We are continuing to evaluate the significant assumptions underlying the discounted cash flow model including default and prepayment assumptions, which could result in changes to our preliminary estimate. For purposes of our initial allocation, we have considered all acquired receivables to be purchase credit deteriorated. See Note 7: Timeshare Financing Receivables for additional information. Acquired timeshare financing receivables with credit deterioration as of the Acquisition Date were as follows: ($ in millions) As of August 2, 2021 Purchase price $ 841 Allowance for credit losses (1) 469 (Premium) attributable to other factors ( 69 ) Par value $ 1,241 Inventory We acquired inventory which consists of completed unsold VOIs and undeveloped land and construction in progress. We preliminarily estimated the value of acquired inventory using discounted cash flows, which included our preliminary estimates of future income growth, capitalization rates, discount rates and capital expenditure needs of the relevant properties. We are continuing to assess the market assumptions and property conditions, which could result in changes to these preliminary values. Property and Equipment We acquired property and equipment, which includes land, building and leasehold improvements, furniture and fixtures and construction in progress. We preliminarily estimated the value of the majority of property and equipment using a mix of cost, market and discounted cash flow approaches, which included preliminary estimates of future income growth, capitalization rates, discount rates, and capital expenditure needs of the resorts. Certain assets were preliminarily estimated at carrying value. We are continuing to assess the market assumptions and property conditions, which could result in changes to these preliminary values. Intangible Assets The following table presents our preliminary estimates of the fair values of the acquired Diamond’s identified intangible assets and their related estimated remaining useful lives. Estimated Fair Estimated Value Useful Life ($ in millions) (in years) Trade name $ 20 1.0 Management contracts 1,263 17.5 Club member relationships 146 10.0 Vacation ownership customer relationships 463 5.5 Computer software 14 1.5 Total intangible assets $ 1,906 We preliminarily estimated the fair value of Diamond’s trade name using the relief-from-royalty method, which applies an estimated royalty rate to forecasted future cash flows, discounted to present value. We provisionally estimated the value of management contracts and member relationships using the multi-period excess earnings method, which is a variation of the income approach. This method estimates an intangible asset’s value based on the present value of the incremental after-tax cash flows attributable to the intangible asset. We continue to review Diamond’s contracts and historical performance in addition to evaluating the assumptions impacting the estimated values of such intangible assets and their respective useful lives, including the discount rate applied to the estimated cash flows and renewal and growth estimates and expected margins, which could result in changes to these preliminary values. Deferred Revenue Deferred revenue primarily relates to deferred sales incentives revenues, primarily related to Bonus Points, which are deferred and recognized upon redemption; and Club membership fees, which are deferred and recognized over the terms of the applicable contract term or membership on a straight-line basis. Additionally, deferred revenue includes maintenance fees collected from owners, in certain cases, which are earned by the relevant property owners’ association over the applicable period. We preliminarily estimated the value of the deferred revenue at the carrying value of such liabilities as of the Acquisition Date. We continue to review Diamond’s contracts, which could result in changes to the preliminary estimate. Deferred Income Taxes Deferred income taxes primarily relate to the fair value of assets and liabilities acquired from Diamond, including timeshare financing receivables, inventory, property and equipment, intangible assets, and debt. We preliminarily estimated deferred income taxes based on statutory rates in the jurisdictions of the legal entities where the acquired assets and liabilities are recorded. We are continuing to assess the tax rates used, and we will update our estimate of deferred income taxes based on changes to our preliminary valuations of the related assets and liabilities and refinement of the effective tax rates, which could result in changes to these preliminary values. Debt As part of the acquisition and consideration transferred, we paid off $2,029 million of Diamond’s existing corporate debt, accrued interest and early termination penalties. The nominal amount remaining represents various smaller notes. Please refer to Note 12: Debt & Non-recourse debt for more information. Non-Recourse Debt We preliminarily estimated the fair value of the securitized debt from VIEs and warehouse loan facilities, using a discounted cash flow model under the income approach. The significant assumptions in our analysis include default rates, prepayment rates, bond interest rates and other structural factors. We are continuing to evaluate the significant assumptions underlying the discounted cash flow model including default and prepayment assumptions, which could result in changes to our preliminary estimate . Lease Obligations We have recorded a preliminary estimate of the liability for those operating leases assumed in connection with the Diamond Acquisition with a remaining term in excess of a year. We measured the lease liabilities assumed at the present value of the remaining contractual lease payments based on the guidance in ASC 842 and using a discount rate determined as of the Acquisition Date. The right-of-use assets for such leases were initially measured at an amount equal to the lease liabilities, adjusted for favorable or unfavorable terms of the lease when compared with market terms. A small number of operating lease right of use assets and lease liabilities were preliminarily estimated at carrying value. We continue to assess the market assumptions, which could result in changes to our provisional estimate. Pro Forma Results of Operations The following unaudited pro forma information presents the combined results of operations of HGV and Diamond as if we had completed the Diamond Acquisition on January 1, 2020, the first day of our 2020 fiscal year, but using our preliminary fair values of assets and liabilities as of the Acquisition Date. These unaudited pro forma results do not reflect any synergies from operating efficiencies. Accordingly, these unaudited pro forma results are presented for informational purposes only and are not necessarily indicative of what the actual results of operations of the combined company would have been if the Diamond Acquisition had occurred at the beginning of the period presented, nor are they indicative of future results of operations. Nine Months Ended September 30, ($ in millions, except per share data) 2021 2020 Revenues $ 2,321 $ 1,431 Net income (loss) 173 ( 307 ) Diamond Results of Operations The following table presents the results of Diamond operations included in our unaudited condensed consolidated statement of operations for the period from the Acquisition Date through the end of the third quarter of 2021. ($ in millions) August 2, 2021 to Revenue $ 245 Net income 30 |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 9 Months Ended |
Sep. 30, 2021 | |
Revenue From Contract With Customer [Abstract] | |
Revenue from Contracts with Customers | Note 4: Revenue from Contracts with Customers Disaggregation of Revenue The following tables show our disaggregated revenues by product and segment from contracts with customers. We operate our business in the following two segments: (i) Real estate sales and financing and (ii) Resort operations and club management . Please refer to Note 20: Business Segments below for more details related to our segments. ($ in millions) Three Months Ended September 30, Nine Months Ended September 30, Real Estate Sales and Financing Segment 2021 2020 2021 2020 Sales of VOIs, net $ 488 $ 24 $ 597 $ 80 Sales, marketing, brand and other fees 118 52 252 171 Interest income 46 34 108 108 Other financing revenue 7 6 19 19 Real estate sales and financing segment revenues $ 659 $ 116 $ 976 $ 378 ($ in millions) Three Months Ended September 30, Nine Months Ended September 30, Resort Operations and Club Management Segment 2021 2020 2021 2020 Club management $ 42 $ 23 $ 98 $ 70 Resort management 57 16 $ 94 52 Rental (1) 104 19 184 71 Ancillary services 8 1 14 6 Resort operations and club management segment revenues $ 211 $ 59 $ 390 $ 199 (1) Excludes intersegment eliminations. See Note 20: Business Segments for additional information. Contract Balances The following table provides information on our accounts receivable from contracts with customers which are included in Accounts receivable, net on our condensed consolidated balance sheets: September 30, December 31, ($ in millions) 2021 2020 Receivables $ 189 $ 64 The following table presents the composition of our contract liabilities. September 30, December 31, ($ in millions) 2021 2020 Contract liabilities: Advanced deposits $ 116 $ 117 Deferred sales of VOIs of projects under construction — 169 Annual dues and Legacy-HGV Club activation fees 100 77 Bonus Point incentive liability (1) 51 48 (1) Amounts related to the Bonus Point incentive liability are included in Accounts payable, accrued expenses and other on our condensed consolidated balance sheets. This liability is comprised of unrecognized revenue for incentives from VOI sales and sales and marketing expenses in conjunction with our fee-for-service arrangements. Revenue earned for the three and nine months ended September 30, 2021 that was included in the contract liabilities balance at December 31, 2020 was approximately $ 16 million and $ 106 million, respectively. Our accounts receivables that relate to our contracts with customers includes amounts associated with our contractual right to consideration for completed performance obligations related primarily to our fee-for-service arrangements and homeowners’ associations management agreements and are settled when the related cash is received. Accounts receivable are recorded when the right to consideration becomes unconditional and is only contingent on the passage of time. Refer to Note 7: Timeshare Financing Receivables for information on balances and changes in balances during the period related to our timeshare financing receivables. Contract liabilities include payments received or due in advance of satisfying our performance obligations. Such contract liabilities include advance deposits received on prepaid vacation packages for future stays at our resorts, deferred revenues related to sales of VOIs of projects under construction, Club activation fees and annual dues and the liability for Bonus Points awarded to our customers for purchase of VOIs at our properties or properties under our fee-for-service arrangements that may be redeemed in the future. In addition to the contract liabilities included herein, we also have deferred revenue of $ 170 million and $ 16 million as of September 30, 2021 and December 31, 2020, respectively. These deferred revenue balances primarily include bonus points and marketing package deferred revenue, deferred property insurance, and other. Transaction Price Allocated to Remaining Performance Obligations Transaction price allocated to remaining performance obligations represents contract revenue that has not yet been recognized. Our contracts with remaining performance obligations primarily include (i) sales of VOIs under construction, (ii) Legacy-HGV Club activation fees paid at closing of a VOI purchase, (iii) customers’ advanced deposits on prepaid vacation packages and (iv) Bonus Points that may be redeemed in the future. The following table represents the deferred revenue, cost of VOI sales and direct selling costs from sales of VOIs related to projects under construction as of September 30, 2021 and December 31, 2020: September 30, December 31, ($ in millions) 2021 2020 Sales of VOIs, net $ — $ 169 Cost of VOI sales (1) — 50 Sales and marketing expense — 25 (1) Includes anticipated Cost of VOI sales related to inventory associated with Sales of VOIs under construction that will be acquired under a just-in-time arrangement once construction is complete. As of September 30, 2021 we have recognized all revenue, costs of VOI sales and direct selling costs previously in deferral as all projects under construction were completed in the third quarter of 2021. The following table includes the remaining transaction price related to Advanced deposits, Annual dues and Legacy-HGV Club activation fees and Bonus Points as of September 30, 2021: ($ in millions) Remaining Recognition Period Recognition Method Advanced deposits $ 116 18 months Upon customer stays Annual dues and Legacy-HGV Club activation fees 62 7 years Straight-line basis over average inventory holding period Bonus Points 51 18 - 30 months Upon redemption |
Restricted Cash
Restricted Cash | 9 Months Ended |
Sep. 30, 2021 | |
Cash And Cash Equivalents [Abstract] | |
Restricted Cash | Note 5: Restricted Cash Restricted cash was as follows: September 30, December 31, ($ in millions) 2021 2020 Escrow deposits on VOI sales $ 128 $ 69 Reserves related to non-recourse debt (1) 68 29 Other (2) 34 — $ 230 $ 98 (1) See Note 12: Debt & Non-recourse Debt for further discussion. ( 2) Other restricted cash includes cash collected on behalf of HOAs, deposits related to servicer arrangements and other individually immaterial items. |
Accounts Receivable
Accounts Receivable | 9 Months Ended |
Sep. 30, 2021 | |
Receivables [Abstract] | |
Accounts Receivables | Note 6: Accounts Receivable The following table represents our accounts receivable, net of allowance for credit losses. Accounts receivable within the scope of ASC 326 are measured at amortized cost. September 30, December 31, ($ in millions) 2021 2020 Fee-for-service commissions (1) $ 67 $ 22 Real estate and financing 44 11 Resort and club operations 73 23 Tax receivables 85 54 Other receivables (2) 9 9 Total $ 278 $ 119 (1) Net of allowance. (2) For the periods ended September 30, 2021 and December 31, 2020, includes individually insignificant accounts receivable recognized in the ordinary course of business and allowances for which are also individually insignificant. For the period ended September 30, 2021, also includes o ther receivables primarily associated with miscellaneous sales and marketing activity. Our accounts receivable are all due within one year of origination. We use delinquency status and economic factors such as credit quality indicators to monitor our receivables within the scope of ASC 326 and use these as a basis for how we develop our expected loss estimates. We sell VOIs on behalf of third-party developers using the Hilton Grand Vacations brand in exchange for sales, marketing and brand fees. We use historical losses and economic factors as a basis to develop our allowance for credit losses. Under these fee-for-service arrangements, we earn commission fees based on a percentage of total interval sales. Additionally, the terms of these arrangements include provisions requiring the reduction of fees earned for defaults and cancellations. The changes in our allowance for fee-for-service commissions were as follows during the period from December 31, 2020 to September 30, 2021: ($ in millions) Balance as of December 31, 2020 $ 18 Current period provision for expected credit losses 4 Write-offs charged against the allowance ( 5 ) Balance at September 30, 2021 17 In addition to the fee-for-service commission allowance, we have various allowances for our accounts receivable to account for expected losses related to club dues, maintenance fees, trade accounts receivable, sales of VOIs, and marketing packages. All allowances other than the fee-for-service commissions allowance are individually immaterial to our Accounts receivable, net balance. |
Timeshare Financing Receivables
Timeshare Financing Receivables | 9 Months Ended |
Sep. 30, 2021 | |
Receivables [Abstract] | |
Timeshare Financing Receivables | Note 7: Timeshare Financing Receivables We define our timeshare financing receivables portfolio segments as (i) originated and (ii) acquired. The following table presents the components of each portfolio segment by class of timeshare financing receivables. Originated (2) Acquired (2) September 30, December 31, September 30, December 31, ($ in millions) 2021 2020 2021 2020 Securitized $ 629 $ 805 $ 605 $ — Unsecuritized (1) 641 380 530 — Timeshare financing receivables, gross $ 1,270 $ 1,185 $ 1,135 $ — Unamortized non-credit acquisition premium (3) — — 62 — Less: allowance for financing ( 238 ) ( 211 ) ( 462 ) — Timeshare financing receivables, net $ 1,032 $ 974 $ 735 $ — (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 $ 69 million was recognized at the Acquisition Date, of which $ 62 million remains unamortized as of September 30, 2021. As of September 30, 2021 and December 31, 2020, we had timeshare financing receivables with a carrying value of $ 97 million and $ 17 million, respectively, securing the Timeshare Facility and two additional conduit facilities in anticipation of future financing activities. 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 the nine months ended September 30, 2021 , we recorded an adjustment to our estimate of variable consideration of $ 77 million. We recognize interest income on our timeshare financing receivables as earned. As of September 30, 2021 and December 31, 2020, we had interest receivable outstanding of $ 8 million and $ 7 million, respectively, on our originated timeshare financing receivables, which represent all Legacy-HGV timeshare financing receivables and timeshare financing receivables originated by Legacy-Diamond subsequent to the Acquisition Date. As of September 30, 2021 we had interest receivable outstanding of $ 7 million on our acquired timeshare financing receivables, which represents all timeshare financing receivables of Legacy-Diamond as of the Acquisition Date. Interest receivable is included in Other Assets within our unaudited 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 September 30, 2021 , our originated timeshare financing receivables had interest rates ranging from less than 1 percent to 25.0 percent, average interest rate of 13.02 percent, a weighted-average remaining term of 7.7 years and maturities through 2036 . Our acquired timeshare financing receivables had interest rates ranging from less than 1 percent to 25 percent, a weighted-average interest rate of 15.57 percent, a weighted-average remaining term of 8.3 years and maturities through 2036 . Acquired Timeshare Financing Receivables with Credit Deterioration As part of the Diamond Acquisition, we acquired existing portfolios of timeshare financing receivables. Acquired timeshare financing receivables include all timeshare financing receivables of Legacy-Diamond as of the Acquisition Date and were deemed to be purchase credit deteriorated financial assets. These notes receivable are accounted for using the expected cash flow method of recognizing discount accretion based on the expected cash flows from the acquired timeshare financing receivables. Upon acquisition, we recorded these acquired timeshare financing receivables at a preliminary estimate of fair value, including a credit discount which is accreted as an adjustment to yield over the estimated life of the timeshare financing receivables. The fair value of our acquired timeshare financing receivables as of the Acquisition Date was determined using a discounted cash flow method, which calculated a present value of expected future cash flows based on scheduled principal and interest payments over the term of the respective timeshare financing receivables, while considering anticipated defaults and early repayments based on historical experience. Consequently, the fair value of the acquired timeshare financing receivables recorded on our balance sheet as of the Acquisition Date included an estimate of expected credit losses which became the historical cost basis for that portfolio going forward. For acquired loans for which all or a portion of the balance was previously written off, or was required to be written off under our charge-off policy upon acquisition, the expected credit loss included in the grossed-up loan balance was immediately charged off. Subsequent changes to the allowance for credit losses are recorded as additions to or reversals of credit losses in our condensed consolidated statements of operations through provision for credit losses. Our acquired timeshare financing receivables are remeasured at each period end based on expected future cash flows which takes into consideration an estimated measure of anticipated defaults and early repayments. We consider historical Legacy-Diamond timeshare financing receivables performance and the current economic environment in developing the expected future cash flows used in the re-measurement of our acquired timeshare financing receivables. Our acquired timeshare financing receivables as of September 30, 2021 mature as follows: Acquired Timeshare Financing Receivables ($ in millions) Securitized Unsecuritized Total Year 2021 (remaining) $ — $ 28 $ 28 2022 1 2 3 2023 3 4 7 2024 7 6 13 2025 13 11 24 Thereafter 581 479 1,060 $ 605 $ 530 $ 1,135 Originated Timeshare Financing Receivables Originated timeshare financing receivables represent all Legacy-HGV timeshare financing receivables and timeshare financing receivables originated by Legacy-Diamond subsequent to the Acquisition Date. Our originated timeshare financing receivables as of September 30, 2021 mature as follows: Originated Timeshare Financing Receivables ($ in millions) Securitized Unsecuritized Total Year 2021 (remaining) $ 21 $ 15 $ 36 2022 87 42 129 2023 89 46 135 2024 90 49 139 2025 87 53 140 Thereafter 255 436 691 $ 629 $ 641 $ 1,270 Allowance for Financing Receivables Losses The changes in our allowances for financing receivables losses were as follows: September 30, 2021 September 30, 2021 ($ in millions) Originated Acquired Balance as of December 31, 2020 $ 211 $ — Provision for financing receivables losses (1) 77 — Initial allowance for PCD financing receivables acquired during the period (2) — 469 Write-offs ( 50 ) ( 7 ) Balance as of September 30, 2021 $ 238 $ 462 September 30, 2020 September 30, 2020 ($ in millions) Originated Acquired Balance as of December 31, 2019 $ 184 $ — Provision for financing receivables losses (1) 57 — Write-offs ( 24 ) — Balance as of September 30, 2020 $ 217 $ — (1) Includes incremental provision for financing receivables losses, net of activity related to the repurchase of defaulted and upgraded securitized timeshare financing receivables. (2) The initial gross allowance determined for receivables with credit deterioration was $ 469 million as of the Acquisition Date. Of this amount, approximately $ 220 million relates to net uncollectable balances such as loans that were fully written-off prior to Acquisition. Therefore, the net impact to the allowance related to acquired loans not previously written off was an increase of $ 249 million. Credit Quality of Timeshare Financing Receivables Legacy-HGV Timeshare Financing Receivables We evaluate this portfolio collectively for purposes of estimating variable consideration, since we hold 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. For static pool analysis, we use certain key dimensions to stratify our portfolio, including FICO scores, equity percentage at the time of sale and certain other factors. The adequacy of the related allowance is determined by management through analysis of several factors, such as current economic conditions and industry trends, as well as the specific risk characteristics of the portfolio including assumed default rates, aging and historical write-offs of these receivables. The allowance is maintained at a level deemed adequate by management based on a periodic analysis of the mortgage portfolio. Our gross balances by average FICO score of our Legacy-HGV timeshare financing receivables were as follows: Legacy-HGV Timeshare Financing Receivables September 30, December 31, ($ in millions) 2021 2020 FICO score 700+ $ 693 $ 711 600-699 254 266 <600 35 36 No score (1) 169 172 $ 1,151 $ 1,185 (1) Timeshare financing receivables without a FICO score are primarily related to foreign borrowers. The following table details our Legacy-HGV timeshare financing receivables by the origination year and average FICO score as of September 30, 2021: ($ in millions) 2021 2020 2019 2018 2017 Prior Total FICO score 700+ $ 177 $ 91 $ 156 $ 106 $ 71 $ 92 $ 693 600-699 59 34 58 39 25 39 254 <600 8 5 8 5 3 6 35 No score (1) 34 27 39 26 14 29 169 $ 278 $ 157 $ 261 $ 176 $ 113 $ 166 $ 1,151 (1) Timeshare financing receivables without a FICO score are primarily related to foreign borrowers. We apply payments we receive for timeshare financing receivables, including those in non-accrual status, to amounts due in the following order: servicing fees; interest; principal; and late charges. Once a receivable is 91 days past due, we cease accruing interest and reverse the accrued interest recognized up to that point. We resume interest accrual for receivables for which we had previously ceased accruing interest once the receivable is less than 91 days past due. We fully reserve for a timeshare financing receivable in the month following the date that the receivable is 121 days past due and, subsequently, we write off the uncollectible balance against the reserve once the foreclosure process is complete and we receive the deed for the foreclosed unit. As of September 30, 2021 and December 31, 2020 , we had ceased accruing interest on timeshare financing receivables with an aggregate principal balance of $ 103 million and $ 117 million, respectively. The following tables detail an aged analysis of our gross timeshare receivables balance: Legacy-HGV Timeshare Financing Receivables September 30, 2021 ($ in millions) Securitized Unsecuritized Total Current $ 619 $ 417 $ 1,036 31 - 90 days past due 5 7 12 91 - 120 days past due 2 1 3 121 days and greater past due 2 98 100 $ 628 $ 523 $ 1,151 Legacy-HGV Timeshare Financing Receivables December 31, 2020 ($ in millions) Securitized Unsecuritized Total Current $ 783 $ 265 $ 1,048 31 - 90 days past due 11 9 20 91 - 120 days past due 5 3 8 121 days and greater past due 6 103 109 $ 805 $ 380 $ 1,185 Legacy-Diamond Timeshare Financing Receivables We evaluate this portfolio collectively for purposes of estimating variable consideration, since we hold 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. For static pool analysis, we use certain key dimensions to stratify our portfolio, including FICO scores, equity percentage at the time of sale and certain other factors. The adequacy of the related allowance is determined by management through analysis of several factors, such as current economic conditions and industry trends, as well as the specific risk characteristics of the portfolio including assumed default rates, aging and historical write-offs of these receivables. The allowance is maintained at a level deemed adequate by management based on a periodic analysis of the mortgage portfolio. Our gross balances by average FICO score of our Legacy-Diamond acquired and originated timeshare financing receivables were as follows: Legacy-Diamond ($ in millions) September 30, 2021 FICO score 700+ $ 721 600-699 342 <600 54 No score (1) 18 $ 1,135 (1) Timeshare financing receivables without a FICO score are primarily related to foreign borrowers. Legacy-Diamond ($ in millions) September 30, 2021 FICO score 700+ $ 85 600-699 25 <600 4 No score (1) 5 $ 119 (1) Timeshare financing receivables without a FICO score are primarily related to foreign borrowers. The following tables details our Legacy-Diamond acquired and originated timeshare financing receivables by the origination year and average FICO score as of September 30, 2021: Legacy-Diamond Acquired Timeshare Financing Receivables ($ in millions) 2021 2020 2019 2018 2017 Prior Total FICO score 700+ $ 155 $ 146 $ 175 $ 113 $ 70 $ 62 $ 721 600-699 61 59 86 56 32 49 343 <600 10 11 11 5 2 14 53 No score (1) 3 3 4 2 2 4 18 $ 229 $ 219 $ 276 $ 176 $ 106 $ 129 $ 1,135 (1) Timeshare financing receivables without a FICO score are primarily related to foreign borrowers. Legacy-Diamond Originated Timeshare Financing Receivables ($ in millions) 2021 2020 2019 2018 2017 Prior Total FICO score 700+ $ 85 $ — $ — $ — $ — $ — $ 85 600-699 25 — — — — — 25 <600 4 — — — — — 4 No score (1) 5 — — — — — 5 $ 119 $ — $ — $ — $ — $ — $ 119 (1) Timeshare financing receivables without a FICO score are primarily related to foreign borrowers. The accrued interest on our Legacy-Diamond timeshare financing receivables is accrued based on the contractual provisions of the loan documents, which is suspended at the earlier of (i) the customer’s account becoming over 90 days delinquent, or (ii) the completion of cancellation or foreclosure proceedings. Once suspended, we reverse all prior recognized interest income as well. We resume interest accrual for receivables for which we had previously ceased accruing interest once the receivable is less than 91 days past due. We fully reserve for a timeshare financing receivable in the month following the date that the receivable is 121 days past due and, subsequently, we write off the uncollectible balance against the reserve once the foreclosure process is complete and we become owner of the deed for the foreclosed unit. As of September 30, 2021 we had ceased accruing interest on Legacy-Diamond timeshare financing receivables with an aggregate principal balance of $ 345 million. The following tables detail an aged analysis of our gross timeshare receivables balance: Legacy-Diamond Timeshare Financing Receivables September 30, 2021 ($ in millions) Securitized Unsecuritized Total Current $ 565 $ 312 $ 877 31 - 90 days past due 18 14 32 91 - 120 days past due 8 5 13 121 days and greater past due 15 317 332 $ 606 $ 648 $ 1,254 |
Inventory
Inventory | 9 Months Ended |
Sep. 30, 2021 | |
Inventory Disclosure [Abstract] | |
Inventory | Note 8: Inventory Inventory was comprised of the following: September 30, December 31, ($ in millions) 2021 2020 Completed unsold VOIs $ 1,349 $ 515 Construction in process 42 186 Land, infrastructure and other 70 1 $ 1,461 $ 702 The table below presents costs of sales true-ups relating to VOI products and the related impacts to the carrying value of inventory. Nine months ended September 30, ($ in millions) 2021 2020 Cost of sales true-up (1) $ ( 1 ) $ 4 (1) For the nine months ended September 30, 2021 , the costs of sales true-up increased costs of VOI sales and decreased inventory. For the nine months ended September 30, 2020, the costs of sales true-up decreased costs of VOI sales and increased inventory. Shown below are expenses incurred, recorded in Cost of VOI sales , related to granting credit to customers for their existing ownership when upgrading into fee-for service projects. Three months ended September 30, Nine months ended September 30, ($ in millions) 2021 2020 2021 2020 Cost of VOI sales related to fee-for-service upgrades $ 1 $ 2 $ 4 $ 7 |
Property and Equipment
Property and Equipment | 9 Months Ended |
Sep. 30, 2021 | |
Property Plant And Equipment [Abstract] | |
Property and Equipment | Note 9: Property and Equipment Property and equipment were comprised of the following: September 30, December 31, ($ in millions) 2021 2020 Land $ 193 $ 109 Building and leasehold improvements 451 250 Furniture and equipment 89 65 Construction in progress 242 208 975 632 Accumulated depreciation ( 153 ) ( 131 ) $ 822 $ 501 |
Consolidated Variable Interest
Consolidated Variable Interest Entities | 9 Months Ended |
Sep. 30, 2021 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Consolidated Variable Interest Entities | Note 10: Consolidated Variable Interest Entities As of September 30, 2021 and December 31, 2020, we consolidated variable interest entities (“VIEs”). The activities of these entities are limited primarily to purchasing qualifying non-recourse timeshare financing receivables from us and issuing debt securities and/or borrowing under a debt facility to facilitate such purchases. The timeshare financing receivables held by these entities are not available to our creditors and are not our legal assets, nor is the debt that is securitized through these entities a legal liability to us. We have determined that we are the primary beneficiaries of all VIEs as we have the power to direct the activities that most significantly affect their economic performance. We are also the servicer of these timeshare financing receivables and we often replace or repurchase timeshare financing receivables that are in default at their outstanding principal amounts. Additionally, we have the obligation to absorb their losses and the right to receive benefits that could be significant to them. Only the assets of our VIEs are available to settle the obligations of the respective entities. As part of the Diamond Acquisition, we acquired the variable interests in the entities associated with Diamond’s outstanding timeshare financing receivables securitization transactions. They have been aggregated for disclosure purposes as they are similar in nature to our previously established VIEs. We also acquired conduit facilities which are VIEs and do no t have an outstanding balance as of September 30, 2021. Our unaudited condensed consolidated balance sheets included the assets and liabilities of these entities, which primarily consisted of the following: September 30, December 31, ($ in millions) 2021 2020 Restricted cash $ 63 $ 28 Timeshare financing receivables, net 1,033 742 Non-recourse debt (1) 1,187 766 (1) Net of deferred financing costs. During the nine months ended September 30, 2021 and 2020 , we did no t provide any financial or other support to any VIEs that we were not previously contractually required to provide, nor do we intend to provide such support in the future. |
Investments in Unconsolidated A
Investments in Unconsolidated Affiliates | 9 Months Ended |
Sep. 30, 2021 | |
Equity Method Investments And Joint Ventures [Abstract] | |
Investments in Unconsolidated Affiliates | Note 11: Investments in Unconsolidated Affiliates As of September 30, 2021 , we have 25 percent and 50 percent ownership interests in BRE Ace LLC and 1776 Holding LLC, respectively, which are VIEs. We do not consolidate BRE Ace LLC and 1776 Holding LLC because we are not the primary beneficiary. Our investment interests in and equity earned from both VIEs are included in the consolidated balance sheets as Investments in unconsolidated affiliates and in the consolidated statements of operations as Equity in earnings from unconsolidated affiliates , respectively. Our two unconsolidated affiliates have aggregated debt balances of $ 421 million and $ 454 million as of September 30, 2021 and December 31, 2020, respectively. The debt is secured by their assets and is without recourse to us. Our maximum exposure to loss as a result of our investment interests in the two unconsolidated affiliates is primarily limited to (i) the carrying amount of the investments, which totals $ 56 million and $ 51 million as of September 30, 2021 and December 31, 2020, respectively, and (ii) receivables for commission and other fees earned under fee-for-service arrangements. See Note 19: Related Party Transactions for additional information. |
Debt & Non-recourse Debt
Debt & Non-recourse Debt | 9 Months Ended |
Sep. 30, 2021 | |
Debt Disclosure [Abstract] | |
Debt & Non-recourse Debt | Note 12: Debt & Non-recourse Debt Debt The following table details our outstanding debt balance and its associated interest rates: September 30, December 31, ($ in millions) 2021 2020 Debt (1) Senior secured credit facility, due 2023 : Term loan with a rate of 2.70 % $ — $ 177 Revolver with a weighted average rate of 2.70 % 300 660 Senior secured credit facility, due 2028 : Term loan with a weighted average rate of 3.50 % 1,300 — Senior notes with a rate of 6.125 %, due 2024 — 300 Senior notes with a rate of 5.000 %, due 2029 850 — Senior notes with a rate of 4.875 %, due 2031 500 — Other debt 34 27 2,984 1,164 Less: unamortized deferred financing costs and discounts (2)(3) ( 55 ) ( 5 ) $ 2,929 $ 1,159 (1) As of September 30, 2021 and December 31, 2020 , weighted-average interest rates were 4.108 percent and 3.357 percent, respectively. (2) Amount includes deferred financing costs and related to our term loan and senior notes of $ 26 million and $ 23 million, respectively, as of September 30, 2021 and $ 1 million and $ 4 million, respectively, as of December 31, 2020. This amount also includes original issuance discounts of $ 6 million as of September 30, 2021 . (3) Amount does not include deferred financing costs of $ 3 million and $ 4 million as of September 30, 2021 and December 31, 2020, respectively, related to our revolving facility included in Other assets in our unaudited condensed consolidated balance sheets. Senior secured credit facilities In March 2021, we amended our Credit Agreement to amend certain terms related to financial covenants to permit the previously announced proposed acquisition of Diamond, pursuant to that certain Agreement and Plan of Merger dated March 10, 2021. Refer to Note 3: Diamond Acquisition for further information regarding the merger. The borrowing capacity under the Credit Agreement remained the same. In connection with the amendment, we incurred $ 1 million in debt issuance costs. In addition, we obtained a revolving credit facility commitment in connection with the Diamond Acquisition and incurred $ 2 million in debt issuance costs which were amortized over the term of the commitment in the first quarter of 2021. This was included in Interest expense in our unaudited condensed consolidated statements of operations. In connection with the closing of the Diamond Acquisition, HGV entered into a new $ 1.3 billion seven-year senior secured term loan facility ("Term Loan B"). The Term Loan B was issued at a $ 6 million discount and the cumulative proceeds received from the Term loan and related senior notes discussed below were used to repay certain existing indebtedness of both HGV and Diamond, including HGV's pre-existing term loan and senior notes due 2024, $ 260 million of the balance on the revolving credit facility, and a portion of $ 2.03 billion of Diamond's corporate indebtedness. We incurred a $ 20 million loss on debt extinguishment in relation to the transactions described herein which is included in Other (loss) gain, net . As of September 30, 2021, we incurred approximately $ 27 million in debt issuance costs for Term Loan B. During the nine months ended September 30, 2021, we repaid $ 537 million under the senior secured credit facilities with an interest rate based on one month LIBOR plus 2.45 percent, subject to a 0.25 percent floor which included payments of $ 360 million toward the revolver balance in addition to paying off HGV's pre-existing term loan balance of $ 177 million mentioned above. As of September 30, 2021, we had $ 1 million of letters of credit outstanding under the revolving credit facility and $ 2 million outstanding backed by cash collateral. We were in compliance with all applicable maintenance and financial covenants and ratios as of September 30, 2021. We primarily use interest rate swaps as part of our interest rate risk management strategy for our variable-rate debt. Such interest rates swaps converted the LIBOR based variable rates on our Term Loan and Revolver to average fixed rates of 1.27 percent per annum through May 2028 and 0.75 percent per annum through November 2023, respectively, for the balance on these borrowings up to the notional values of our interest rate swaps. As of September 30, 2021, the notional values of the interest rate swaps under our term loan and revolver were $ 150 million and $ 170 million, respectively. Our interest rate swaps have been designated and qualify as cash flow hedges of interest rate risk and recorded as a liability in Accounts payable, accrued expenses and other in our condensed consolidated balance sheets as of September 30, 2021 and December 31, 2020. We characterize payments we make in connection with these derivative instruments as interest expense and a reclassification of accumulated other comprehensive income for presentation purposes. For the nine months ended September 30, 2021, we recorded $ 1 million in accumulated other comprehensive income related to the cash flow hedge. Senior Notes due 2029 and 2031 In June 2021, we entered into indentures in connection with the issuance and sale of senior notes, $ 850 million aggregate principal amount of 5.00 percent senior notes due 2029 ("the 2029 Notes") and $ 500 million aggregate principal amount of 4.875 percent senior notes due 2031 ("the 2031 Notes"). The net proceeds from the 2029 Notes and the 2031 Notes were used to finance the repayment of certain indebtedness in connection with the Diamond Acquisition. In connection with the senior notes issuances, we incurred $ 24 million in debt issuance costs. Non-recourse Debt The following table details our outstanding non-recourse debt balance and its associated interest rates: September 30, December 31, ($ in millions) 2021 2020 Non-recourse debt (1) Timeshare Facility with an average rate of 1.017 %, due 2023 (3) $ 96 $ — HGV Securitized Debt with a weighted average rate of 2.711 %, due 2028 78 106 HGV Securitized Debt with a weighted average rate of 3.602 %, due 2032 156 202 HGV Securitized Debt with a weighted average rate of 2.431 %, due 2033 167 216 HGV Securitized Debt with a weighted average rate of 3.658 %, due 2039 204 251 Diamond Resorts Premium Yield Facility with an average rate of 4.766 %, due 2031 10 — Diamond Resorts Owner Trust 2017 with a weighted average rate of 3.504 %, due 2029 46 — Diamond Resorts Owner Trust 2018 with a weighted average rate of 4.061 %, due 2031 107 — Diamond Resorts Owner Trust 2019 with a weighted average rate of 3.277 %, due 2032 172 — Diamond Resorts Owner Trust 2021 with a weighted average rate of 2.160 %, due 2032 261 — 1,297 775 Less: unamortized deferred financing costs (2) ( 7 ) ( 9 ) $ 1,290 $ 766 (1) As of September 30, 2021 and December 31, 2020 , weighted-average interest rates were 2.925 percent and 3.173 percent, respectively. (2) Amount relates to Securitized Debt only and does not include deferred financing costs of $ 2 million and $ 3 million as of September 30, 2021 and December 31, 2020, respectively, relating to our Timeshare Facility included in Other Assets in our unaudited condensed consolidated balance sheets. (3) In connection with the amendment to the Timeshare Facility executed in August 2020, the revolving commitment period of the Timeshare Facility terminates in August 2022, however the repayment maturity date extends 12 months beyond the commitment termination date to August 2023. The Timeshare Facility is a non-recourse obligation with a borrowing capacity of $ 450 million and is payable solely from the pool of timeshare financing receivables pledged as collateral and related assets. In March 2021, we amended our Timeshare Facility to align with our amended Credit Agreement, as described above. The Premium Yield Facility is a non-recourse amortizing obligation payable solely from the pool of timeshare financing receivables pledged as collateral and related assets. We assumed the Premium Yield Facility as part of the Diamond Acquisition. In addition to these two facilities, we gained access to two additional conduit facilities, due in 2023 and 2024 respectively, as a part of our acquisition of Diamond Resorts. These facilities were issued through variable interest entities (see Note 10: Consolidated Variable Interest Entities ) and do not have any borrowings as of September 30, 2021. The conduit facilities due in 2023 and 2024 have a borrowing capacity of $ 125 million and $ 150 million, respectively, and are non-recourse obligations with customary provisions similar to the Timeshare Facility, each of which bear a variable interest rate plus a margin and are subject to non-use fees. We are required to deposit payments received from customers on the timeshare financing receivables securing the Timeshare Facility, Premium Yield Facility and Securitized Debt into depository accounts maintained by third parties. On a monthly basis, the depository accounts are utilized to make required principal, interest and other payments due under the respective loan agreements. The balances in the depository accounts were $ 68 million and $ 29 million as of September 30, 2021 and December 31, 2020, respectively, and were included in Restricted cash in our unaudited condensed consolidated balance sheets. Debt Maturities The contractual maturities of our debt and non-recourse debt as of September 30, 2021 were as follows: ($ in millions) Debt Non-recourse Debt Total Year 2021 (remaining) $ 11 $ 65 $ 76 2022 15 272 287 2023 314 284 598 2024 13 116 129 2025 13 146 159 Thereafter 2,618 414 3,032 $ 2,984 $ 1,297 $ 4,281 |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Note 13: Fair Value Measurements The carrying amounts and estimated fair values of our financial assets and liabilities were as follows: September 30, 2021 Hierarchy Level ($ in millions) Carrying Level 1 Level 3 Assets: Timeshare financing receivables, net (1) $ 1,767 $ 2,182 Liabilities: Debt, net (2) 2,929 1,365 1,648 Non-recourse debt, net (2) 1,290 1,227 102 December 31, 2020 Hierarchy Level ($ in millions) Carrying Level 1 Level 3 Assets: Timeshare financing receivables, net (1) $ 974 $ — $ 1,248 Liabilities: Debt, net (2) 1,159 315 871 Non-recourse debt, net (2) 766 — 732 (1) Carrying amount net of allowance for financing receivables losses. (2) Carrying amount net of unamortized deferred financing costs and discount. Our estimates of the fair values were determined using available market information and appropriate valuation methods. Considerable judgment is necessary to interpret market data and develop the estimated fair values. The table above excludes cash and cash equivalents, restricted cash, accounts receivable, accounts payable, advance deposits and accrued liabilities, all of which had fair values approximating their carrying amounts due to the short maturities and liquidity of these instruments. The estimated fair values of our originated and acquired timeshare financing receivables were determined using a discounted cash flow model. Our model incorporates default rates, coupon rates, credit quality and loan terms respective to the portfolio based on current market assumptions for similar types of arrangements. The estimated fair values of our Level 1 debt and non-recourse debt were based on prices in active debt markets. The estimated fair values of our Level 3 debt and non-recourse debt were based on the following: • Debt - based on indicative quotes obtained for similar issuances and projected future cash flows discounted at risk-adjusted rates. • Non-recourse debt - based on projected future cash flows discounted at risk-adjusted rates. During the quarter ended September 30, 2021, we changed our estimate of fair value for certain non-recourse debt instruments from Level 3 to Level 1 due to availability of pricing for these instruments in active debt markets . Non-recurring fair value measurements Our assets that are measured at fair value on a non-recurring basis include land and infrastructure held for sale. These assets were measured to their estimated fair value as of December 31, 2020. We utilized the market approach for the land and cost approach for the infrastructure to determine their respective fair values. The fair value determinations involve judgement and are sensitive to key assumptions utilized, including comparative sales for land (level 2) and replacement costs for infrastructure (level 3). There has been no change to the estimated fair value of these assets for the nine months ended September 30, 2021. |
Intangible Assets
Intangible Assets | 9 Months Ended |
Sep. 30, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets | Note 14: Intangible Assets Intangible assets and related amortization expense were as follows: ($ in millions) Weighted-average useful life (years) September 30, 2021 December 31, 2020 Trade name 1.0 $ 20 $ - Management contracts 17.5 1,352 89 Club member relationships 10.0 146 - Vacation ownership customer relationships 5.5 463 - Computer software 2.3 122 94 Total gross intangible assets $ 2,103 $ 183 Less: accumulated amortization ( 150 ) ( 102 ) Intangible assets, net $ 1,953 $ 81 We acquired definite-lived intangible assets as part of the Diamond Acquisition, which have been valued on a provisional basis, in the amount of $ 1,906 million. Refer to Note 3: Diamond Acquisition for further details. Prior to the Diamond Acquisition, intangible assets included computer software and management contracts. Amortization expense on intangible assets was $ 38 million for the three months ended September 30, 2021 and $ 48 million for the nine months ended September 30, 2021. As of September 30, 2021 we estimated our future amortization expense for our amortizing intangible assets as follows: ($ in millions) Intangibles 2021 (remaining) $ 57 2022 216 2023 188 2024 181 2025 174 Thereafter 1,137 Total $ 1,953 |
Leases
Leases | 9 Months Ended |
Sep. 30, 2021 | |
Leases [Abstract] | |
Leases | Note 15: Leases We lease sales centers, office space and equipment under operating leases, some of which we acquired as part of the Diamond Acquisition. Our leases expire at various dates from 2021 through 2030 , with varying renewal and termination options. Our lease terms include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. We recognize rent expense on leases with both contingent and non-contingent lease payment terms. Rent associated with non-contingent lease payments are recognized on a straight-line basis over the lease term. Rent expense for all operating leases was $ 6 million and $ 5 million for the three months ended September 30, 2021 and 2020 , respectively, and $ 15 million for the nine months ended September 30, 2021 and 2020 . These amounts include less than $ 1 million and $ 1 million of short-term and variable lease costs for the three months ended September 30, 2021 and 2020 , respectively, and $ 1 million and $ 2 million for the nine months ended September 30, 2021 and 2020, respectively. Supplemental cash flow information related to operating leases was as follows: Nine months ended September 30, ($ in millions) 2021 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash outflows from operating leases $ 15 $ 14 Right-of-use assets obtained in exchange for new lease liabilities: Operating leases 35 4 Supplemental balance sheet information related to operating leases was as follows: September 30, December 31, 2021 2020 Weighted-average remaining lease term of operating leases (in years) 4.6 5.4 Weighted-average discount rate of operating leases 4.35 % 4.95 % The future minimum lease payments under noncancelable operating leases, due in each of the next five years and thereafter as of September 30, 2021, are as follows: ($ in millions) Operating Year 2021 (remaining) 7 2022 25 2023 24 2024 17 2025 15 Thereafter 15 Total future minimum lease payments $ 103 Less: imputed interest ( 10 ) Present value of lease liabilities $ 93 |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 16: Income Taxes At the end of each quarter, we estimate the effective tax rate expected to be applied for the full year. The effective tax rate for the nine months ended September 30, 2021 and 2020 was approximately 31 percent and 20 percent, respectively. The effective tax rate is higher primarily due to the change in earnings mix of our worldwide income through the third quarter of 2021 as compared to the third quarter of 2020, as well as non-deductible Diamond Acquisition-related costs. We have considered the income tax accounting and disclosure implications of the relief provided by the American Rescue Plan Act of 2021 enacted on March 11, 2021. As of September 30, 2021, we evaluated the income tax provisions of the American Rescue Plan Act and have determined there to be no effect on either the September 30, 2021 tax rate or the computation of the estimated effective tax rate for the year. We will continue to evaluate the income tax provisions of the American Rescue Plan Act and monitor the developments in the jurisdictions where we have significant operations for tax law changes that could have income tax accounting and disclosure implications. |
Share-Based Compensation
Share-Based Compensation | 9 Months Ended |
Sep. 30, 2021 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Share-Based Compensation | Note 17: Share-Based Compensation Stock Plan We issue service-based restricted stock units (“Service RSUs”), service and performance-based restricted stock units (“Performance RSUs”) and nonqualified stock options (“Options”) to certain employees and directors. We recognized share-based compensation expense of $ 14 million and $ 6 million for the three months ended September 30, 2021 and 2020, respectively, and $ 32 million and $ 10 million for the nine months ended September 30, 2021 and 2020, respectively. In the prior year, certain expenses related to Performance RSUs were reversed as the related RSUs were not expected to achieve certain performance targets, resulting in a credit to expense in the prior period. As of September 30, 2021, unrecognized compensation costs for unvested awards was approximately $ 34 million, which is expected to be recognized over a weighted average period of 1.7 years. As of September 30, 2021, there were 3,757,673 shares of common stock available for future issuance under this plan. Service RSUs During the nine months ended September 30, 2021, we issued 588,930 Service RSUs with a grant date fair value of $ 38.50 , which generally vest in equal annual installments over three years from the date of grant. Options During the nine months ended September 30, 2021 , we issued 542,793 Options with an exercise price of $ 38.22 , which vest over three years from the date of the grant. The weighted-average grant date fair value of these options was $ 13.30 , which was determined using the Black-Scholes-Merton option-pricing model with the following assumptions: Expected volatility 34.2 % Dividend yield 0 % Risk-free rate 1.1 % Expected term (in years) 6.0 As of September 30, 2021, we had 1,173,204 Options outstanding that were exercisable. Performance RSUs During the nine months ended September 30, 2021, we issued two separate tranches of Performance RSUs. In March 2021, we issued 124,711 Performance RSUs with a grant date fair value of $ 38.22 . The Performance RSUs are settled at the end of a two-year performance period, with 50 percent of the Performance RSUs subject to achievement based on the Company’s adjusted earnings before interest expense, taxes and depreciation and amortization further adjusted for net deferral and recognition of revenues and related direct expenses related to sales of VOIs of projects under construction. The remaining 50 percent of the Performance RSUs issued are subject to the achievement of certain contract sales targets. In August 2021, and in conjunction with the Diamond Acquisition, we issued 351,118 Performance RSUs with a grant date fair value of $ 40.27 . The Performance RSUs are settled at the end of the performance period which is from the Acquisition Date through December 31, 2023, with 67 percent of the Performance RSUs subject to achievement based on certain run rate cost savings. The remaining 33 percent of the Performance RSUs issued are subject to the achievement of the Company’s adjusted earnings before interest expense, taxes and depreciation and amortization further adjusted for net deferral and recognition of revenues and related direct expenses related to sales of VOIs of projects under construction. We determined that the performance conditions for these awards are probable of achievement and, as of September 30, 2021, we recognized compensation expense based on the number of Performance RSUs we expect to vest. Employee Stock Purchase Plan In March 2017, the Board of Directors adopted the Hilton Grand Vacations Inc. Employee Stock Purchase Plan (the “ESPP”), which became effective during 2017. In connection with the Plan, we issued 2.5 million shares of common stock which may be purchased under the ESPP. The ESPP allows eligible employees to purchase shares of our common stock at a price per share not less than 95 percent of the fair market value per share of common stock on the purchase date, up to a maximum threshold established by the plan administrator for the offering period. During the three and nine months ended September 30, 2021 and 2020 , we recognized less than $ 1 million of compensation expense related to this plan. |
Earnings (Loss) Per Share
Earnings (Loss) Per Share | 9 Months Ended |
Sep. 30, 2021 | |
Earnings Per Share [Abstract] | |
Earnings (Loss) Per Share | Note 18: Earnings (Loss) Per Share The following tables below present the calculation of our basic and diluted earnings (loss) per share (“EPS”) and the corresponding weighted average shares outstanding referenced in these calculations for the three and nine months ended September 30, 2021 and 2020. Three Months Ended September 30, Nine Months Ended September 30, ($ and shares outstanding in millions, except per share amounts) 2021 2020 2021 2020 Basic EPS: Numerator: Net income (loss) (1) $ 99 $ ( 7 ) $ 101 $ ( 47 ) Denominator: Weighted average shares outstanding 108 85 93 85 Basic EPS $ 0.92 $ ( 0.08 ) $ 1.08 $ ( 0.55 ) Diluted EPS: Numerator: Net income (loss) (1) $ 99 $ ( 7 ) $ 101 $ ( 47 ) Denominator: Weighted average shares outstanding 109 85 94 85 Diluted EPS $ 0.90 $ ( 0.08 ) $ 1.07 $ ( 0.55 ) (1) Net income (loss) for the three months ended September 30, 2021 and 2020 was $ 98,704,709 and $( 6,846,654 ), respectively, and $ 100,634,069 and $( 46,771,239 ) for the nine months ended September 30, 2021 and 2020 , respectively. Three Months Ended Nine Months Ended 2021 2020 2021 2020 Weighted average shares outstanding: Basic EPS 107,688,389 85,082,124 92,944,812 85,198,910 Diluted EPS 109,138,778 85,082,124 94,162,838 85,198,910 For the three and nine months ended September 30, 2021, we excluded 512,371 and 631,738 , respectively, and for the three and nine months ended September 30, 2020 , we excluded 2,816,707 and 2,506,497 , respectively, of share-based compensation awards because their effect would have been anti-dilutive under the treasury stock method. The dilutive effect of outstanding share-based compensation awards is reflected in diluted earnings (loss) per common share by application of the treasury stock method using average market prices during the period. Potentially dilutive shares of 308,441 and 332,883 for the three and nine months ended September 30, 2020 , respectively, were excluded from the calculation of diluted weighted average shares outstanding and diluted earnings per share as a result of our net loss position. |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
Sep. 30, 2021 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Note 19: Related Party Transactions BRE Ace LLC and 1776 Holding, LLC We hold a 25 percent ownership interest in BRE Ace LLC, a VIE, which owns a timeshare resort property and related operations, commonly known as “Elara, by Hilton Grand Vacations.” We hold a 50 percent ownership interest in 1776 Holding, LLC, a VIE, which owns a timeshare resort property and related operations, known as “Liberty Place Charleston, by Hilton Club.” We record Equity in earnings from our unconsolidated affiliates in our unaudited condensed consolidated statements of operations. See Note 11: Investments in Unconsolidated Affiliates for additional information. Additionally, we earn commissions and other fees related to fee-for-service agreements with the investees to sell VOIs at Elara, by Hilton Grand Vacations and Liberty Place Charleston, by Hilton Club. These amounts are summarized in the following table and are included in General and administrative expenses on our unaudited condensed consolidated statements of operations as of the date they became related parties. Three Months Ended September 30, Nine Months Ended September 30, ($ in millions) 2021 2020 2021 2020 Equity in earnings (losses) from unconsolidated affiliates $ 1 $ ( 1 ) $ 7 $ 3 Commissions and other fees 33 16 70 43 We also had $ 21 million and $ 7 million of outstanding receivables related to the fee-for-service agreements included in Accounts receivable, net on our condensed consolidated balance sheets as of September 30, 2021 and December 31, 2020, respectively. Apollo Global Management Inc. As part of the Diamond Acquisition as described above in Note 3: Diamond Acquisition , Apollo obtained more than 20 percent of our common stock and has the right to designate two nominees to the Board of Directors of HGV pursuant to a Stockholders Agreement among HGV and Apollo. In addition to the right to designate nominees to the Board, the Stockholders Agreement gives Apollo certain other governance, consent and pre-emptive rights, all based on the number of certain shares of HGV common stock owned by Apollo. Outside of the Diamond Acquisition, we did not have any transactions with Apollo during the period ending September 30, 2021 and do not have any outstanding balances or agreements with Apollo as of September 30, 2021 . We made one payment to Apollo subsequent to the Diamond Acquisition for amounts that were accrued for periods prior to the completion of the Diamond Acquisition and were included in accounts payable and accrued liabilities as of the Acquisition Date. |
Business Segments
Business Segments | 9 Months Ended |
Sep. 30, 2021 | |
Segment Reporting [Abstract] | |
Business Segments | Note 20: Business Segments We operate our business through the following two segments: • Real estate sales and financing – We market and sell VOIs that we own. We also source VOIs through fee-for-service agreements with third-party developers. Related to the sales of the VOIs that we own, we provide consumer financing, which includes interest income generated from the origination of consumer loans to customers to finance their purchase of VOIs and revenue from servicing the loans. We also generate fee revenue from servicing the loans provided by third-party developers to purchasers of their VOIs. • Resort operations and club management – We manage the Club and Diamond Clubs and earn activation fees, annual dues and transaction fees from member exchanges for other vacation products. We also earn fees for managing the timeshare properties. We generate rental revenue from unit rentals of unsold inventory and inventory made available due to ownership exchanges under our Club and Diamond Clubs programs. We also earn revenue from food and beverage, retail and spa outlets at our timeshare properties. The performance of our operating segments is evaluated primarily based on adjusted earnings before interest expense (excluding non-recourse debt), taxes, depreciation and amortization (“EBITDA”). We define Adjusted EBITDA as EBITDA, further adjusted to exclude certain items, including, but not limited to, gains, losses and expenses in connection with: (i) other gains, including asset dispositions and foreign currency translations; (ii) debt restructurings/retirements; (iii) non-cash impairment losses; (iv) share-based and other compensation expenses; and (v) other items, including but not limited to costs associated with acquisitions, restructuring, amortization of premiums resulting from purchase accounting, and other non-cash and one-time charges. We do not include equity in earnings (losses) from unconsolidated affiliates in our measures of segment operating performance. Below is the presentation of our reportable segment results which include the newly acquired Diamond operations within both segments for the three and nine months ended September 30, 2021 . The following table presents revenues for our reportable segments reconciled to consolidated amounts: Three Months Ended Nine Months Ended ($ in millions) 2021 2020 2021 2020 Revenues: Real estate sales and financing $ 659 $ 116 $ 976 $ 378 Resort operations and club 216 61 403 209 Segment revenues 875 177 1,379 587 Cost reimbursements 58 33 131 105 Intersegment eliminations (1)(2) ( 5 ) ( 2 ) ( 13 ) ( 10 ) Total revenues $ 928 $ 208 $ 1,497 $ 682 (1) Includes charges to the real estate sales and financing segment from the resort operations and club management segment for fulfillment of discounted marking package stays at resorts. These charges totaled $ 5 million and $ 2 million for the three months ended September 30, 2021 and 2020. For the nine months ended September 30, 2021 and 2020 , these charges totaled $ 13 million and $ 10 million, respectively. (2) Includes charges to the real estate sales and financing segment from the resort operations and club management segment for the rental of model units to show prospective buyers. These charges totaled less than $ 1 million for the three and nine months ended September 30, 2021 and 2020. The following table presents Adjusted EBITDA for our reportable segments reconciled to net income (loss): Three Months Ended Nine Months Ended ($ in millions) 2021 2020 2021 2020 Adjusted EBITDA: Real estate sales and financing (1) $ 280 $ 15 $ 352 $ 16 Resort operations and club management (1) 109 30 212 100 Segment Adjusted EBITDA 389 45 564 116 Acquisition and integration-related expense ( 54 ) — ( 83 ) — General and administrative ( 41 ) ( 22 ) ( 92 ) ( 65 ) Depreciation and amortization ( 48 ) ( 11 ) ( 71 ) ( 34 ) License fee expense ( 24 ) ( 11 ) ( 57 ) ( 39 ) Other (loss) gain, net ( 20 ) 1 ( 22 ) — Interest expense ( 42 ) ( 10 ) ( 74 ) ( 32 ) Income tax (expense) benefit ( 49 ) 5 ( 46 ) 12 Equity in earnings (losses) from unconsolidated affiliates 1 ( 1 ) 7 3 Impairment expense ( 1 ) — ( 2 ) — Other adjustment items (2) ( 12 ) ( 3 ) ( 23 ) ( 8 ) Net income (loss) $ 99 $ ( 7 ) $ 101 $ ( 47 ) (1) Includes intersegment transactions. Refer to our table presenting revenues by reportable segment above for additional discussion. (2) For the three and nine months ended September 30, 2021 and 2020, this amount includes costs associated with restructuring, one-time charges and other non-cash items included within our reportable segments. For the three months ended September 30, 2021, this also includes amortization of premiums resulting from purchase accounting. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2021 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 21: Commitments and Contingencies Commitments We have entered into certain arrangements with developers whereby we have committed to purchase vacation ownership units or other real estate at a future date to be marketed and sold under our Hilton Grand Vacations brand. As of September 30, 2021, we were committed to purchase approximately $ 331 million of inventory and land over a period of 9 years and $ 8 million of other commitments in the normal course of business. Additionally, we have committed to develop additional vacation ownership units at an existing resort in Japan. We are also committed to an agreement to exchange parcels of land in Hawaii, subject to the successful completion of zoning, land use requirements and other applicable regulatory requirements. The actual amount and timing of the acquisitions is subject to change pursuant to the terms of the respective arrangements, which could also allow for cancellation in certain circumstances. During the nine months ended September 30, 2021 and 2020, we completed $ 132 million and $ 16 million, respectively, of purchases required under our inventory-related purchase commitments. As of September 30, 2021, our remaining obligations pursuant to these arrangements were expected to be incurred as follows: ($ in millions) 2021 2022 2023 2024 2025 Thereafter Total Inventory purchase obligations $ 20 $ 60 $ 196 $ 40 $ 3 $ 12 $ 331 Other commitments (1) 2 5 1 — — — 8 Total $ 22 $ 65 $ 197 $ 40 $ 3 $ 12 $ 339 (1) Primarily relates to commitments related to information technology and brand licensing in the normal course of business. Rebranding Costs As part of the Diamond Acquisition and per our licensing agreement with Hilton, we are committed to rebranding Diamond properties to the Hilton Grand Vacations brand and Hilton standards. As of September 30, 2021 we expect to begin incurring rebranding costs during the fourth quarter of 2021, and expect rebranding to occur over a period of several years. Litigation Contingencies We are involved in litigation arising from the normal course of business, some of which includes claims for substantial sums. We evaluate these legal proceedings and claims at each balance sheet date to determine the degree of probability of an unfavorable outcome and, when it is probable that a liability has been incurred, our ability to reasonably estimate the amount of loss. We record a contingent litigation liability when it is determined that it is probable that a liability has been incurred and the amount of the loss can be reasonably estimated. As of September 30, 2021 we accrued liabilities of approximately $ 25 million for all legal matters that were contingencies. Substantially all of these accrued liabilities are related to matters that existed as of the Acquisition Date, which are subject to change during the measurement period of the Diamond Acquisition. See Note 3: Diamond Acquisition . While we currently believe that the ultimate outcome of these proceedings, individually and in the aggregate, will not have a material effect on the Company’s financial condition, cash flows, or materially adversely affect overall trends in our results of operations. Legal proceedings are inherently uncertain and unfavorable rulings could, individually or in aggregate, have a material adverse effect on the Company’s business, financial condition or results of operations. |
Planned Acquisition
Planned Acquisition | 9 Months Ended |
Sep. 30, 2021 | |
Business Combinations [Abstract] | |
Planned Acquisition | Note 3: Diamond Acquisition On August 2, 2021, (the “Acquisition Date”), we completed the Diamond Acquisition by exchanging 100 percent of the outstanding equity interests of Diamond to HGV common shares. Following the closing of the Diamond Acquisition, pre-existing HGV shareholders owned approximately 72 percent of the combined company after giving effect to the Diamond Acquisition, with Apollo Funds and other minority shareholders holding the remaining approximately 28 percent after giving effect to the acquisition. Diamond is a leader in the vacation ownership industry focused on the infusion of hospitality and experiences through the full life cycle of an owner or members' life cycle relationship with Diamond. This strategic combination creates a more expansive industry offering, leveraging HGV's strong brand and net owner growth along with Diamond's diverse network of locations and strength in experiential offerings. The acquisition also diversifies our product offerings and allows us to expand our customer demographic. On the Acquisition Date, shareholders of Diamond received 0.32 shares of our common stock for each share of Diamond common stock, totaling approximately 28 percent of our total common shares outstanding. Additionally, in connection with the Diamond Acquisition, HGV was required to repay certain existing indebtedness of Diamond. Costs related to the acquisition for the nine months ended September 30, 2021 were $ 83 million, which were expensed as incurred, and reflected as Acquisition and integration-related expense in our condensed consolidated statements of operations. The following table presents the fair value of each class of consideration transferred in relation to the Diamond Acquisition at the Acquisition Date. ($ in millions, except stock price amounts) HGV common stock shares issued for outstanding Diamond shares 33.93 HGV common stock price as of Acquisition Date (1) 40.71 Stock purchase price $ 1,381 Repayment of Legacy-Diamond debt $ 2,029 Total consideration transferred $ 3,410 (1) Represents the average of the opening and closing price of HGV stock on August 2, 2021. Preliminary Fair Values of Assets Acquired and Liabilities Assumed We accounted for the Diamond Acquisition as a business combination, which requires us to record the assets acquired and liabilities assumed at fair value as of the Acquisition Date. The preliminary fair values of the assets acquired and liabilities assumed, which are presented in the table below, and the related preliminary acquisition accounting are based on management’s estimates and assumptions, as well as information compiled by management, including the books and records of Diamond. Our estimates and assumptions are subject to change during the measurement period, not to exceed one year from the Acquisition Date. The magnitude of the Diamond Acquisition could necessitate the need to use the full one-year measurement period to adequately analyze and assess a number of the factors used in establishing the asset and liability fair values as of the Acquisition Date. The final values may also result in changes to amortization expense related to intangible assets and depreciation expense related to property and equipment, among other changes. Any potential adjustments made could be material in relation to the values presented in the table below. As discussed more fully below, the primary areas of the purchase price allocation that are not yet finalized include the following: (1) finalizing the review and valuation of acquired intangible assets (including key assumptions, inputs and estimates) and assigning the useful lives to such assets; (2) finalizing the review and valuation of acquired inventory, property and equipment (including key assumptions, inputs and estimates) and assigning the remaining useful lives to the depreciable assets; (3) finalizing the review and valuation of acquired timeshare financing receivables (including key assumptions, inputs and estimates); (4) finalizing the valuation of certain in-place contracts or contractual relationships (including but not limited to leases), including determining the appropriate amortization period; (5) finalizing the review and valuation of other acquired assets and assumed liabilities, including debt assumed; and (6) finalizing our estimate of the impact of purchase accounting on deferred income tax liabilities. ($ in millions) Assets acquired Cash and cash equivalents $ 314 Restricted cash 130 Accounts receivable, net of allowance for doubtful accounts 58 Timeshare financing receivables, net 841 Inventory 745 Property and equipment, net 307 Operating lease right-of-use assets, net 30 Intangible assets, net 1,906 Other assets 243 Total assets acquired $ 4,574 Liabilities assumed Accounts payable, accrued expenses and other $ 448 Debt, net 14 Non-recourse debt, net 661 Operating lease liabilities 33 Advanced deposits 4 Deferred revenues 173 Deferred income tax liabilities 651 Total liabilities assumed $ 1,984 Net assets acquired $ 2,590 Total consideration transferred $ 3,410 Goodwill (1) $ 820 (1) Goodwill is calculated as total consideration transferred less net assets acquired and it primarily represents the value that we expect to obtain from synergies and growth opportunities from our Combined Company post-acquisition. We have not completed the assignment of goodwill to reporting units or to our reportable segments as of September 30, 2021. The majority of goodwill is not expected to be deductible for tax purposes. Timeshare Financing Receivables We acquired timeshare financing receivables which consist of loans to customers who purchased vacation ownership products and chose to finance their purchases. These timeshare financing receivables are collateralized by the underlying VOIs and generally have 10-year amortizing repayment terms. We preliminarily estimated the fair value of the timeshare financing receivables using a discounted cash flow model, which calculated a present value of expected future risk-adjusted cash flows over the remaining term of the respective timeshare financing receivables. We are continuing to evaluate the significant assumptions underlying the discounted cash flow model including default and prepayment assumptions, which could result in changes to our preliminary estimate. For purposes of our initial allocation, we have considered all acquired receivables to be purchase credit deteriorated. See Note 7: Timeshare Financing Receivables for additional information. Acquired timeshare financing receivables with credit deterioration as of the Acquisition Date were as follows: ($ in millions) As of August 2, 2021 Purchase price $ 841 Allowance for credit losses (1) 469 (Premium) attributable to other factors ( 69 ) Par value $ 1,241 Inventory We acquired inventory which consists of completed unsold VOIs and undeveloped land and construction in progress. We preliminarily estimated the value of acquired inventory using discounted cash flows, which included our preliminary estimates of future income growth, capitalization rates, discount rates and capital expenditure needs of the relevant properties. We are continuing to assess the market assumptions and property conditions, which could result in changes to these preliminary values. Property and Equipment We acquired property and equipment, which includes land, building and leasehold improvements, furniture and fixtures and construction in progress. We preliminarily estimated the value of the majority of property and equipment using a mix of cost, market and discounted cash flow approaches, which included preliminary estimates of future income growth, capitalization rates, discount rates, and capital expenditure needs of the resorts. Certain assets were preliminarily estimated at carrying value. We are continuing to assess the market assumptions and property conditions, which could result in changes to these preliminary values. Intangible Assets The following table presents our preliminary estimates of the fair values of the acquired Diamond’s identified intangible assets and their related estimated remaining useful lives. Estimated Fair Estimated Value Useful Life ($ in millions) (in years) Trade name $ 20 1.0 Management contracts 1,263 17.5 Club member relationships 146 10.0 Vacation ownership customer relationships 463 5.5 Computer software 14 1.5 Total intangible assets $ 1,906 We preliminarily estimated the fair value of Diamond’s trade name using the relief-from-royalty method, which applies an estimated royalty rate to forecasted future cash flows, discounted to present value. We provisionally estimated the value of management contracts and member relationships using the multi-period excess earnings method, which is a variation of the income approach. This method estimates an intangible asset’s value based on the present value of the incremental after-tax cash flows attributable to the intangible asset. We continue to review Diamond’s contracts and historical performance in addition to evaluating the assumptions impacting the estimated values of such intangible assets and their respective useful lives, including the discount rate applied to the estimated cash flows and renewal and growth estimates and expected margins, which could result in changes to these preliminary values. Deferred Revenue Deferred revenue primarily relates to deferred sales incentives revenues, primarily related to Bonus Points, which are deferred and recognized upon redemption; and Club membership fees, which are deferred and recognized over the terms of the applicable contract term or membership on a straight-line basis. Additionally, deferred revenue includes maintenance fees collected from owners, in certain cases, which are earned by the relevant property owners’ association over the applicable period. We preliminarily estimated the value of the deferred revenue at the carrying value of such liabilities as of the Acquisition Date. We continue to review Diamond’s contracts, which could result in changes to the preliminary estimate. Deferred Income Taxes Deferred income taxes primarily relate to the fair value of assets and liabilities acquired from Diamond, including timeshare financing receivables, inventory, property and equipment, intangible assets, and debt. We preliminarily estimated deferred income taxes based on statutory rates in the jurisdictions of the legal entities where the acquired assets and liabilities are recorded. We are continuing to assess the tax rates used, and we will update our estimate of deferred income taxes based on changes to our preliminary valuations of the related assets and liabilities and refinement of the effective tax rates, which could result in changes to these preliminary values. Debt As part of the acquisition and consideration transferred, we paid off $2,029 million of Diamond’s existing corporate debt, accrued interest and early termination penalties. The nominal amount remaining represents various smaller notes. Please refer to Note 12: Debt & Non-recourse debt for more information. Non-Recourse Debt We preliminarily estimated the fair value of the securitized debt from VIEs and warehouse loan facilities, using a discounted cash flow model under the income approach. The significant assumptions in our analysis include default rates, prepayment rates, bond interest rates and other structural factors. We are continuing to evaluate the significant assumptions underlying the discounted cash flow model including default and prepayment assumptions, which could result in changes to our preliminary estimate . Lease Obligations We have recorded a preliminary estimate of the liability for those operating leases assumed in connection with the Diamond Acquisition with a remaining term in excess of a year. We measured the lease liabilities assumed at the present value of the remaining contractual lease payments based on the guidance in ASC 842 and using a discount rate determined as of the Acquisition Date. The right-of-use assets for such leases were initially measured at an amount equal to the lease liabilities, adjusted for favorable or unfavorable terms of the lease when compared with market terms. A small number of operating lease right of use assets and lease liabilities were preliminarily estimated at carrying value. We continue to assess the market assumptions, which could result in changes to our provisional estimate. Pro Forma Results of Operations The following unaudited pro forma information presents the combined results of operations of HGV and Diamond as if we had completed the Diamond Acquisition on January 1, 2020, the first day of our 2020 fiscal year, but using our preliminary fair values of assets and liabilities as of the Acquisition Date. These unaudited pro forma results do not reflect any synergies from operating efficiencies. Accordingly, these unaudited pro forma results are presented for informational purposes only and are not necessarily indicative of what the actual results of operations of the combined company would have been if the Diamond Acquisition had occurred at the beginning of the period presented, nor are they indicative of future results of operations. Nine Months Ended September 30, ($ in millions, except per share data) 2021 2020 Revenues $ 2,321 $ 1,431 Net income (loss) 173 ( 307 ) Diamond Results of Operations The following table presents the results of Diamond operations included in our unaudited condensed consolidated statement of operations for the period from the Acquisition Date through the end of the third quarter of 2021. ($ in millions) August 2, 2021 to Revenue $ 245 Net income 30 |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 22: Subsequent Events In October 2021, the Compensation Committee of the Board of Directors (the "Compensation Committee") approved modifications to the short-term incentive program performance periods and targets covering fiscal year 2021, and in November 2021, the Compensation Committee approved modifications to the long-term incentive performance targets for performance-vesting restricted stock units covering fiscal years 2019 through 2022. The modifications were made to reflect the projected effects of the Diamond Acquisition on applicable metrics. There is no financial impact of these modifications and any awards earned under either the 2021 Short-Term Incentive Program or the Performance RSUs will be subject to the terms and conditions applicable to such awards. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The unaudited condensed consolidated financial statements presented herein include 100 percent of our assets, liabilities, revenues, expenses and cash flows as well as all entities in which we have a controlling financial interest. In our opinion, the accompanying unaudited condensed consolidated financial statements reflect all adjustments, including normal recurring items, considered necessary for a fair presentation of the interim periods. All material intercompany transactions and balances have been eliminated in consolidation. The unaudited condensed consolidated financial statements reflect our financial position, results of operations and cash flows as prepared in conformity with U.S. generally accepted accounting principles (“U.S. GAAP”). Certain information and footnote disclosures normally included in financial statements presented in accordance with U.S. GAAP have been omitted in accordance with the rules and regulations of the Securities and Exchange Commission (“SEC”). Although we believe the disclosures made are adequate to prevent information presented from being misleading, these financial statements should be read in conjunction with the consolidated financial statements and notes thereto as of and for the year ended December 31, 2020, included in our Annual Report on Form 10-K filed with the SEC on March 1, 2021. The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported and, accordingly, ultimate results could differ from those estimates. Interim results are not necessarily indicative of full year performance. The determination of a controlling financial interest is based upon the terms of the governing agreements of the respective entities, including the evaluation of rights held by other interests. If the entity is considered to be a variable interest entity (“VIE”), we determine whether we are the primary beneficiary, and then consolidate those VIEs for which we have determined we are the primary beneficiary. If the entity in which we hold an interest does not meet the definition of a VIE, we evaluate whether we have a controlling financial interest through our voting interests in the entity. We consolidate entities when we own more than 50 percent of the voting shares of a company or otherwise have a controlling financial interest. The consolidated financial statements reflect our financial position, results of operations and cash flows as prepared in conformity with U.S. GAAP. Impact of the COVID-19 Pandemic As of September 30, 2021, nearly all of our resorts and sales centers which had previously closed due to the COVID-19 pandemic were open and operating, although some are still operating in markets with various capacity constraints, social distancing requirements and other safety measures, which are impacting consumer demand for resorts in those markets. Subsequent to September 30, 2021, all of our resorts and all but three of our sales centers have fully reopened. We plan to continue our normal business as conditions permit, but there can be no assurance that such positive trends will continue or that there will not be any increases of new infections and/or new variants (such as Delta variant) that may result in the reimposition of social distancing measures and/or restrictions in certain jurisdictions, as well as travel restrictions that may impede or reverse our recovery. |
Contracts with Multiple Performance Obligations | Contracts with Multiple Performance Obligations A performance obligation is a promise in a contract to transfer a distinct good or service to the customer and is the unit of account in ASC 606. For arrangements that contain multiple goods or services, we determine whether such goods or services are distinct performance obligations that should be accounted for separately in the arrangement. When allocating the transaction price in the arrangement, we may not have observable standalone sales for all of the performance obligations in these contracts; therefore, we exercise significant judgement when determining the standalone selling price of certain performance obligations. In order to estimate the standalone selling prices for products other than Collections contracts, we primarily rely on the expected cost plus margin and adjusted market assessment approaches. We estimate stand-alone selling price for Collections contracts based on historical information, including expected breakage in contracts with multiple performance obligations, and allocate the remainder of the transaction price to the sale of points-based VOIs due to the variability in observable historical prices for traditional VOI sales. We then recognize the revenue allocated to each performance obligation as the related performance obligation is satisfied as discussed below. Sales of VOIs, net — Customers who purchase all Legacy-HGV vacation ownership products, whether paid in cash or financed, enter into multiple contracts, which we combine and account for as a single contract. Revenue from VOI sales is recognized at the point in time when control of the VOI is transferred to the customer which is when the customer has executed a binding sales contract, collectability is reasonably assured, the purchaser’s period to cancel for a refund has expired and the customer has the right to use the VOI. Revenue from sales of VOIs under construction is deferred until the point in time when construction activities are deemed to be completed, occupancy of the development is permissible, and the above criteria has been met. For financed sales, we estimate the variable consideration to be received under such contracts and recognize revenue net of amounts deemed uncollectible as the VOI is returned to inventory upon customer default. Variable consideration which has not been included within the transaction price is presented as a reserve on the financing receivable. See Note 7: Timeshare Financing Receivables for more information regarding our estimate of variable consideration. Vacation ownership product sales include revenue from the sale of VOIs, which in the case of the Diamond Collections are represented by an annual or biennial allotment of points that can be utilized for vacations at any of the resorts in our network for varying lengths of stay. Typical contracts include the sale of VOIs, certain sales incentives primarily in the form of additional points for use over a specified period of time (“Bonus Points”), and generally membership in the Legacy-HGV Club or Diamond Clubs, each of which represent a separate and distinct performance obligation for which consideration is allocated based on the estimated stand-alone selling price of the sales incentives and membership dues. We recognize revenue related to our VOIs when control of the points passes to the customer, which generally occurs after the expiration of the applicable statutory rescission period and after collectability is reasonably assured and the customer has the right to use the VOI. Bonus Points are valid for a specified period of time (generally for a period between 18 and 30 months) and may be used for stays at properties within our resort network, and in the case of HGV, hotel reservations within Hilton’s system and VOI interval exchanges with other third-party vacation ownership exchanges. At the time of the VOI sale, we estimate the fair value of sales incentives to be redeemed, including an adjustment for estimated breakage, to determine the standalone selling price of these incentives (“FDI”). We defer a portion of the total transaction price for the combined VOI contract as a liability for the FDI and recognize the corresponding revenue at the point in time when the customer receives the benefits of the FDI, which is upon the customer’s redemption of the Bonus Points. At that time, we also determine whether we are principal or agent for the redeemed good or service and recognize revenue on a gross or net basis accordingly. Contracts’ financed amount represents variable consideration which is estimated based on the expected value method to the extent that it is probable a significant reversal is not expected to occur. We estimate the expected value to be collected based on historical default rates and recognize revenue net of amounts deemed to be uncollectible. Variable consideration that has not been included in the transaction price is presented as a reserve on the financing receivable. See Note 7: Timeshare Financing Receivables for more information regarding our estimate of variable consideration. Sales, marketing, brand and other fees — We enter into contracts with third-party developers to sell VOIs on their behalf through fee-for-service agreements for which we earn sales commissions and other fees. These commissions are variable as they are based on the sales and marketing results, which are subject to the constraint on variable consideration and resolved on a monthly basis over the contract term. We estimate such commissions to the extent that it is probable that a significant reversal of such revenue will not occur and recognize the commissions as the developer receives and consumes the benefits of the services. Any changes in these estimates would affect revenue and earnings in the period such variances are realized. Additionally, we enter into contracts to sell prepaid vacation packages. Our obligation in such contracts is satisfied when customers stay at our property; therefore, we recognize revenue for these packages when they are redeemed. On a portfolio basis, we exercise judgement to estimate the amount of expected breakage related to unused prepaid vacation packages and recognize such breakage in proportion to the pattern of packages utilized by our portfolio of customers. Financing — We offer financing to qualifying customers purchasing our VOIs. Revenue from the financing of timeshare sales is recognized on the accrual method as earned based on the outstanding principal, interest rate and terms stated in each individual financing agreement. We also recognize revenue from servicing the loans provided by third-party developers to purchasers of their VOIs over the period services are rendered. Resort and club management — As part of our VOI sales, a majority of our customers enter into a Legacy-HGV Club or Diamond Club arrangement (referred to collectively as “Clubs”) which allows the member to exchange points for a number of vacation options. We manage the Clubs, receiving, annual dues, transaction fees from member exchanges, and, in the case of the Legacy-HGV Club, activation fees. The member's first year of annual dues and, in the case of the Legacy-HGV Club, the activation fee, are payable at the time of the VOI sale. The Legacy-HGV Club activation fee relates to activities we are required to undertake at or near contract inception to fulfill the contract and does not result in the transfer of a promised good or service. Since our customers are granted the opportunity to renew their membership on an annual basis for no additional activation fee, we defer and amortize the activation fee on a straight-line basis over the seven-year average inventory holding period. Annual dues for membership renewals are billed each year, and we recognize revenue from these annual dues over the period services are rendered. A member may elect to enter into an optional exchange transaction with at which point the member pays their required transaction fee. This option does not represent a material right as the transactions are priced at their standalone selling price. Revenue related to the transaction is recognized when the services are rendered. As part of our resort operations, we contract with HOAs to provide day-to-day-management services, including housekeeping services, operation of a reservation system, maintenance, and certain accounting and administrative services. We receive compensation for such management services, which is generally based on a percentage of costs to operate the resorts, on a monthly basis. These fees represent a form of variable consideration and are estimated and recognized over time as the HOAs receive and consume the benefits of the management services. Management fees received related to the portion of unsold VOIs at each resort which we own are recognized on a net basis given we retain these VOIs in our inventory. Rental and ancillary services — Our rental and ancillary services consist primarily of rental revenues on unoccupied vacation ownership units, inventory made available due to ownership exchanges through our club program and ancillary revenues. Rental revenue is recognized when occupancy has occurred. Advance deposits on the rental unit and the corresponding revenue is deferred and recognized upon the customer’s vacation stay. Ancillary revenues consist of food and beverage, retail, spa offerings and other items. We recognize ancillary revenue when goods have been provided and/or services have been rendered. We account for rental operations of unsold VOIs, including accommodations provided through the use of our vacation sampler programs, as incidental operations. Incremental carrying costs in excess of incremental revenues are recognized in the period incurred. In all periods presented, incremental carrying costs exceeded incremental revenues and all revenues and expenses are recognized in the period earned or incurred. Cost reimbursements — As part of our management agreements with HOAs and fee-for-service developers, we receive cost reimbursements for performing the day-to-day management services, including direct and indirect costs that HOAs and developers reimburse to us. These costs primarily consist of insurance, payroll and payroll related costs for management of the HOAs and other services we provide where we are the employer and insurance. Cost reimbursements are based upon actual expenses with no added margin, and are billed to the HOA on a monthly basis. We recognize cost reimbursements when we incur the related reimbursable costs as the HOA receives and consumes the benefits of the management services. We capitalize all incremental costs incurred to obtain a contract when such costs would not have been incurred if the contract had not been obtained. We elect to expense costs incurred to obtain a contract when the deferral period would be one year or less. Commissions for VOI sales for resorts under construction are expensed when the associated VOI revenue is recognized which is upon completion of the resort. These commissions are classified as Sales and marketing expense in our consolidated statements of operations. These contract costs are recognized at the point in time that the revenue related to the incentive is recognized and included within Sales of VOIs , net on the consolidated statements of operations. |
Business Combinations | Business Combinations We account for our business combinations in accordance with the acquisition method of accounting. We allocate the purchase price of an acquisition to the tangible and intangible assets acquired and liabilities assumed based on their estimated fair values at the acquisition date. For each acquisition, we recognize goodwill as the amount in which consideration transferred for the acquired entity exceeds the fair values of net assets. The fair value of net assets is the fair value assigned to the assets acquired reduced by the fair value assigned to liabilities assumed. In determining the fair values of assets acquired and liabilities assumed, we use various recognized valuation methods including the income, cost and sales and market approaches, which also include certain valuation techniques such as discount rates, and the amount and timing of future cash flows. We utilize independent valuation specialists under our supervision for certain of our assignments of fair value. We record the net assets and results of operations of an acquired entity in our condensed consolidated financial statements from the acquisition date through period-end. We expense acquisition-related expenses as incurred and include such expenses within Acquisition and integration-related expense on our condensed consolidated statements of operations. See Note 3: Diamond Acquisition for further information. |
Acquired Financial Assets with Credit Deterioration | Acquired Financial Assets with Credit Deterioration When financial assets are acquired, whether in connection with a business combination or an asset acquisition, we evaluate whether those acquired financial assets have experienced a more-than-insignificant deterioration in credit quality since origination. Financial assets that were acquired with evidence of such credit deterioration are referred to as purchased credit deteriorated ("PCD") assets and reflect the acquirer’s assessment at the acquisition date. The evaluation of PCD assets is a qualitative assessment requiring significant management judgment. We consider indicators such as delinquency, FICO score deterioration, purchased credit impaired status from prior acquisition, certain account status codes which we believe are indicative of credit deterioration, as well as certain loan activity such as modifications and downgrades. In addition, we consider the impact of current and forward-looking economic conditions relative to the conditions which would have existed at origination. Acquired PCD assets are recorded at the purchase price, represented by the acquisition date fair value, and subsequently “grossed-up” by the acquirer’s acquisition date assessment of the allowance for credit losses. The purchase price and the initial allowance for credit losses collectively represent the PCD asset’s initial amortized cost basis. While the initial allowance for credit losses of PCD assets does not impact period earnings, the Company remeasures the allowance for credit losses for PCD assets during each subsequent reporting period; changes in the allowance are recognized as provision expense within period earnings. The difference over which par value of the acquired PCD assets exceeds the purchase price plus the initial allowance for credit losses is reflected as a non-credit discount (or premium) and is accreted into interest income (or as a reduction to interest income) under the effective interest method. Acquired financial assets which are not PCD assets are also recorded at the purchase price but are not similarly “grossed-up”. The acquirer recognizes an allowance for credit losses as of the acquisition date, which is recognized with a corresponding provision expense impact within earnings. The allowance is remeasured within each subsequent reporting period in the same manner as for PCD assets, with any change in the allowance recognized as provision expense in period earnings. See Note 3: Diamond Acquisition and Note 7: Timeshare Financing Receivables for further information. |
Goodwill and Intangible Assets | Goodwill We do not amortize goodwill. We evaluate goodwill for potential impairment at least annually, or more frequently if an event or other circumstance indicates that it is more-likely-than-not that we may not be able to recover the carrying amount (book value) of the net assets of the related reporting unit. When evaluating goodwill for impairment, we may perform the optional qualitative assessment by considering factors including macroeconomic conditions, industry and market conditions and overall financial performance. If we bypass the qualitative assessment, or if we conclude that it is more likely than not that the fair value of a reporting unit is less than its carrying value, then we perform a quantitative impairment test by comparing the fair value of a reporting unit with its carrying amount. We only recognize an impairment on goodwill if the estimated fair value of a reporting unit is less than its carrying value, in an amount not to exceed the carrying value of the reporting unit's goodwill. Intangible Assets Our intangible assets consist of management agreements, trade name, customer relationships and certain proprietary technologies with finite lives. We have management agreements, trade name, vacation ownership customer relationships, and software intangibles that were recorded at their fair value as part of the Diamond Acquisition. We also have management agreements that were recorded at their fair value at the time of the completion of a merger on October 24, 2007 where Hilton became a wholly-owned subsidiary of an affiliate of The Blackstone Group L.P. (“Blackstone”). Additionally, we capitalize costs incurred to develop internal-use computer software, including costs incurred in connection with development of upgrades or enhancements that result in additional functionality. These capitalized costs are included in Intangible assets, net in our consolidated balance sheets. Intangible assets with finite useful lives are amortized using the straight-line method over their respective useful lives, which varies for each type of intangible. In our condensed consolidated statements of operations, the amortization of these intangible assets is included in depreciation and amortization expense and the amortization of costs to obtain a contract is recognized as a reduction to the related revenues. We review all finite life intangible assets for impairment when circumstances indicate that their carrying amounts may not be recoverable. If the carrying value of an asset group is not recoverable, we recognize an impairment loss for the excess of the carrying value over the fair value in our condensed consolidated statements of operations. |
Restricted Cash | Restricted Cash Restricted cash includes deposits received on VOI sales that are held in escrow until legal requirements of the local jurisdictions are met with regards to project construction or our contract status and cash reserves required by our non-recourse debt agreements. Restricted cash also includes certain amounts collected on behalf of HOAs. |
Reclassifications | Reclassifications Certain prior period amounts in the footnotes to the unaudited condensed consolidated financial statements have been reclassified to conform to the current period presentation with no effect on previously reported total assets and total liabilities, net income or stockholders’ equity. |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements Adopted Accounting Standards On January 1, 2021 we adopted Accounting Standards Update 2019-12 (“ASU 2019-12”), Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. ASU 2019-12 simplifies various aspects related to accounting for income taxes by removing certain exceptions to the general principles in Topic 740 and clarifies and amends existing guidance to improve consistent application. The adoption of ASU 2019-12 did not have a material impact on our unaudited condensed consolidated financial statements and related disclosures. Accounting Standards Not Yet Adopted I n March 2020, the FASB issued ASU 2020-04 (“ASU 2020-04”), Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting. ASU 2020-04 provides optional expedients and exceptions for applying U.S.GAAP to contracts, hedging relationships, and other transactions affected by the discontinuation of the London Interbank Offered Rate (“LIBOR”) or by another reference rate expected to be discontinued. The guidance was effective as of March 12, 2020 and will apply through December 31, 2022. We are currently evaluating the effect of this ASU but we do not expect it to have a material impact on our consolidated or unaudited condensed consolidated financial statements. |
Diamond Acquisition (Tables)
Diamond Acquisition (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Business Combinations [Abstract] | |
Schedule of Fair Value of Consideration Transferred | The following table presents the fair value of each class of consideration transferred in relation to the Diamond Acquisition at the Acquisition Date. ($ in millions, except stock price amounts) HGV common stock shares issued for outstanding Diamond shares 33.93 HGV common stock price as of Acquisition Date (1) 40.71 Stock purchase price $ 1,381 Repayment of Legacy-Diamond debt $ 2,029 Total consideration transferred $ 3,410 (1) Represents the average of the opening and closing price of HGV stock on August 2, 2021. |
Schedule of Preliminary Fair Values of Assets Acquired and Liabilities Assumed | Any potential adjustments made could be material in relation to the values presented in the table below. As discussed more fully below, the primary areas of the purchase price allocation that are not yet finalized include the following: (1) finalizing the review and valuation of acquired intangible assets (including key assumptions, inputs and estimates) and assigning the useful lives to such assets; (2) finalizing the review and valuation of acquired inventory, property and equipment (including key assumptions, inputs and estimates) and assigning the remaining useful lives to the depreciable assets; (3) finalizing the review and valuation of acquired timeshare financing receivables (including key assumptions, inputs and estimates); (4) finalizing the valuation of certain in-place contracts or contractual relationships (including but not limited to leases), including determining the appropriate amortization period; (5) finalizing the review and valuation of other acquired assets and assumed liabilities, including debt assumed; and (6) finalizing our estimate of the impact of purchase accounting on deferred income tax liabilities. ($ in millions) Assets acquired Cash and cash equivalents $ 314 Restricted cash 130 Accounts receivable, net of allowance for doubtful accounts 58 Timeshare financing receivables, net 841 Inventory 745 Property and equipment, net 307 Operating lease right-of-use assets, net 30 Intangible assets, net 1,906 Other assets 243 Total assets acquired $ 4,574 Liabilities assumed Accounts payable, accrued expenses and other $ 448 Debt, net 14 Non-recourse debt, net 661 Operating lease liabilities 33 Advanced deposits 4 Deferred revenues 173 Deferred income tax liabilities 651 Total liabilities assumed $ 1,984 Net assets acquired $ 2,590 Total consideration transferred $ 3,410 Goodwill (1) $ 820 (1) Goodwill is calculated as total consideration transferred less net assets acquired and it primarily represents the value that we expect to obtain from synergies and growth opportunities from our Combined Company post-acquisition. We have not completed the assignment of goodwill to reporting units or to our reportable segments as of September 30, 2021. The majority of goodwill is not expected to be deductible for tax purposes. |
Schedule of Financing Receivables | Acquired timeshare financing receivables with credit deterioration as of the Acquisition Date were as follows: ($ in millions) As of August 2, 2021 Purchase price $ 841 Allowance for credit losses (1) 469 (Premium) attributable to other factors ( 69 ) Par value $ 1,241 |
Schedule of Preliminary Estimates Of The Fair Value of Intangible Assets and Estimated Remaining Useful Lives | The following table presents our preliminary estimates of the fair values of the acquired Diamond’s identified intangible assets and their related estimated remaining useful lives. Estimated Fair Estimated Value Useful Life ($ in millions) (in years) Trade name $ 20 1.0 Management contracts 1,263 17.5 Club member relationships 146 10.0 Vacation ownership customer relationships 463 5.5 Computer software 14 1.5 Total intangible assets $ 1,906 |
Schedule of Acquisition Pro Forma Information | The following unaudited pro forma information presents the combined results of operations of HGV and Diamond as if we had completed the Diamond Acquisition on January 1, 2020, the first day of our 2020 fiscal year, but using our preliminary fair values of assets and liabilities as of the Acquisition Date. These unaudited pro forma results do not reflect any synergies from operating efficiencies. Accordingly, these unaudited pro forma results are presented for informational purposes only and are not necessarily indicative of what the actual results of operations of the combined company would have been if the Diamond Acquisition had occurred at the beginning of the period presented, nor are they indicative of future results of operations. Nine Months Ended September 30, ($ in millions, except per share data) 2021 2020 Revenues $ 2,321 $ 1,431 Net income (loss) 173 ( 307 ) |
Summary of Diamond Results of Operations | The following table presents the results of Diamond operations included in our unaudited condensed consolidated statement of operations for the period from the Acquisition Date through the end of the third quarter of 2021. ($ in millions) August 2, 2021 to Revenue $ 245 Net income 30 |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Revenue From Contract With Customer [Abstract] | |
Schedule of Disaggregated Revenues by Segment from Contracts with Customers | The following tables show our disaggregated revenues by product and segment from contracts with customers. We operate our business in the following two segments: (i) Real estate sales and financing and (ii) Resort operations and club management . Please refer to Note 20: Business Segments below for more details related to our segments. ($ in millions) Three Months Ended September 30, Nine Months Ended September 30, Real Estate Sales and Financing Segment 2021 2020 2021 2020 Sales of VOIs, net $ 488 $ 24 $ 597 $ 80 Sales, marketing, brand and other fees 118 52 252 171 Interest income 46 34 108 108 Other financing revenue 7 6 19 19 Real estate sales and financing segment revenues $ 659 $ 116 $ 976 $ 378 ($ in millions) Three Months Ended September 30, Nine Months Ended September 30, Resort Operations and Club Management Segment 2021 2020 2021 2020 Club management $ 42 $ 23 $ 98 $ 70 Resort management 57 16 $ 94 52 Rental (1) 104 19 184 71 Ancillary services 8 1 14 6 Resort operations and club management segment revenues $ 211 $ 59 $ 390 $ 199 (1) Excludes intersegment eliminations. See Note 20: Business Segments for additional information. |
Schedule of Accounts Receivable from Contracts with Customers and Composition of Contract Liabilities | The following table provides information on our accounts receivable from contracts with customers which are included in Accounts receivable, net on our condensed consolidated balance sheets: September 30, December 31, ($ in millions) 2021 2020 Receivables $ 189 $ 64 The following table presents the composition of our contract liabilities. September 30, December 31, ($ in millions) 2021 2020 Contract liabilities: Advanced deposits $ 116 $ 117 Deferred sales of VOIs of projects under construction — 169 Annual dues and Legacy-HGV Club activation fees 100 77 Bonus Point incentive liability (1) 51 48 (1) Amounts related to the Bonus Point incentive liability are included in Accounts payable, accrued expenses and other on our condensed consolidated balance sheets. This liability is comprised of unrecognized revenue for incentives from VOI sales and sales and marketing expenses in conjunction with our fee-for-service arrangements. |
Schedule of Deferred Revenue Cost of Sales and Direct Selling Costs from Sales of Project Under Construction | The following table represents the deferred revenue, cost of VOI sales and direct selling costs from sales of VOIs related to projects under construction as of September 30, 2021 and December 31, 2020: September 30, December 31, ($ in millions) 2021 2020 Sales of VOIs, net $ — $ 169 Cost of VOI sales (1) — 50 Sales and marketing expense — 25 (1) Includes anticipated Cost of VOI sales related to inventory associated with Sales of VOIs under construction that will be acquired under a just-in-time arrangement once construction is complete. |
Schedule of Remaining Transaction Price Related to Advanced Deposits Club Activation Fees and Club Bonus Points | The following table includes the remaining transaction price related to Advanced deposits, Annual dues and Legacy-HGV Club activation fees and Bonus Points as of September 30, 2021: ($ in millions) Remaining Recognition Period Recognition Method Advanced deposits $ 116 18 months Upon customer stays Annual dues and Legacy-HGV Club activation fees 62 7 years Straight-line basis over average inventory holding period Bonus Points 51 18 - 30 months Upon redemption |
Restricted Cash (Tables)
Restricted Cash (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Cash And Cash Equivalents [Abstract] | |
Schedule of Restricted Cash | Restricted cash was as follows: September 30, December 31, ($ in millions) 2021 2020 Escrow deposits on VOI sales $ 128 $ 69 Reserves related to non-recourse debt (1) 68 29 Other (2) 34 — $ 230 $ 98 (1) See Note 12: Debt & Non-recourse Debt for further discussion. ( 2) Other restricted cash includes cash collected on behalf of HOAs, deposits related to servicer arrangements and other individually immaterial items. |
Accounts Receivable (Tables)
Accounts Receivable (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Receivables [Abstract] | |
Summary of Accounts Receivable, Net of Allowance for Credit Losses | The following table represents our accounts receivable, net of allowance for credit losses. Accounts receivable within the scope of ASC 326 are measured at amortized cost. September 30, December 31, ($ in millions) 2021 2020 Fee-for-service commissions (1) $ 67 $ 22 Real estate and financing 44 11 Resort and club operations 73 23 Tax receivables 85 54 Other receivables (2) 9 9 Total $ 278 $ 119 (1) Net of allowance. (2) For the periods ended September 30, 2021 and December 31, 2020, includes individually insignificant accounts receivable recognized in the ordinary course of business and allowances for which are also individually insignificant. For the period ended September 30, 2021, also includes o ther receivables primarily associated with miscellaneous sales and marketing activity. |
Changes in Allowance for Fee-for-Service Commissions | The changes in our allowance for fee-for-service commissions were as follows during the period from December 31, 2020 to September 30, 2021: ($ in millions) Balance as of December 31, 2020 $ 18 Current period provision for expected credit losses 4 Write-offs charged against the allowance ( 5 ) Balance at September 30, 2021 17 |
Timeshare Financing Receivabl_2
Timeshare Financing Receivables (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
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) September 30, December 31, September 30, December 31, ($ in millions) 2021 2020 2021 2020 Securitized $ 629 $ 805 $ 605 $ — Unsecuritized (1) 641 380 530 — Timeshare financing receivables, gross $ 1,270 $ 1,185 $ 1,135 $ — Unamortized non-credit acquisition premium (3) — — 62 — Less: allowance for financing ( 238 ) ( 211 ) ( 462 ) — Timeshare financing receivables, net $ 1,032 $ 974 $ 735 $ — (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 $ 69 million was recognized at the Acquisition Date, of which $ 62 million remains unamortized as of September 30, 2021. |
Schedule of Future Payments Due from Financing Receivables | Our acquired timeshare financing receivables as of September 30, 2021 mature as follows: Acquired Timeshare Financing Receivables ($ in millions) Securitized Unsecuritized Total Year 2021 (remaining) $ — $ 28 $ 28 2022 1 2 3 2023 3 4 7 2024 7 6 13 2025 13 11 24 Thereafter 581 479 1,060 $ 605 $ 530 $ 1,135 Our originated timeshare financing receivables as of September 30, 2021 mature as follows: Originated Timeshare Financing Receivables ($ in millions) Securitized Unsecuritized Total Year 2021 (remaining) $ 21 $ 15 $ 36 2022 87 42 129 2023 89 46 135 2024 90 49 139 2025 87 53 140 Thereafter 255 436 691 $ 629 $ 641 $ 1,270 |
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 September 30, December 31, ($ in millions) 2021 2020 FICO score 700+ $ 693 $ 711 600-699 254 266 <600 35 36 No score (1) 169 172 $ 1,151 $ 1,185 (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 ($ in millions) September 30, 2021 FICO score 700+ $ 721 600-699 342 <600 54 No score (1) 18 $ 1,135 (1) Timeshare financing receivables without a FICO score are primarily related to foreign borrowers. Legacy-Diamond ($ in millions) September 30, 2021 FICO score 700+ $ 85 600-699 25 <600 4 No score (1) 5 $ 119 (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 September 30, 2021: ($ in millions) 2021 2020 2019 2018 2017 Prior Total FICO score 700+ $ 177 $ 91 $ 156 $ 106 $ 71 $ 92 $ 693 600-699 59 34 58 39 25 39 254 <600 8 5 8 5 3 6 35 No score (1) 34 27 39 26 14 29 169 $ 278 $ 157 $ 261 $ 176 $ 113 $ 166 $ 1,151 (1) Timeshare financing receivables without a FICO score are primarily related to foreign borrowers. The following tables details our Legacy-Diamond acquired and originated timeshare financing receivables by the origination year and average FICO score as of September 30, 2021: Legacy-Diamond Acquired Timeshare Financing Receivables ($ in millions) 2021 2020 2019 2018 2017 Prior Total FICO score 700+ $ 155 $ 146 $ 175 $ 113 $ 70 $ 62 $ 721 600-699 61 59 86 56 32 49 343 <600 10 11 11 5 2 14 53 No score (1) 3 3 4 2 2 4 18 $ 229 $ 219 $ 276 $ 176 $ 106 $ 129 $ 1,135 (1) Timeshare financing receivables without a FICO score are primarily related to foreign borrowers. Legacy-Diamond Originated Timeshare Financing Receivables ($ in millions) 2021 2020 2019 2018 2017 Prior Total FICO score 700+ $ 85 $ — $ — $ — $ — $ — $ 85 600-699 25 — — — — — 25 <600 4 — — — — — 4 No score (1) 5 — — — — — 5 $ 119 $ — $ — $ — $ — $ — $ 119 (1) Timeshare financing receivables without a FICO score are primarily related to foreign borrowers. |
Schedule of Past Due Financing Receivables | As of September 30, 2021 and December 31, 2020 , we had ceased accruing interest on timeshare financing receivables with an aggregate principal balance of $ 103 million and $ 117 million, respectively. The following tables detail an aged analysis of our gross timeshare receivables balance: Legacy-HGV Timeshare Financing Receivables September 30, 2021 ($ in millions) Securitized Unsecuritized Total Current $ 619 $ 417 $ 1,036 31 - 90 days past due 5 7 12 91 - 120 days past due 2 1 3 121 days and greater past due 2 98 100 $ 628 $ 523 $ 1,151 Legacy-HGV Timeshare Financing Receivables December 31, 2020 ($ in millions) Securitized Unsecuritized Total Current $ 783 $ 265 $ 1,048 31 - 90 days past due 11 9 20 91 - 120 days past due 5 3 8 121 days and greater past due 6 103 109 $ 805 $ 380 $ 1,185 As of September 30, 2021 we had ceased accruing interest on Legacy-Diamond timeshare financing receivables with an aggregate principal balance of $ 345 million. The following tables detail an aged analysis of our gross timeshare receivables balance: Legacy-Diamond Timeshare Financing Receivables September 30, 2021 ($ in millions) Securitized Unsecuritized Total Current $ 565 $ 312 $ 877 31 - 90 days past due 18 14 32 91 - 120 days past due 8 5 13 121 days and greater past due 15 317 332 $ 606 $ 648 $ 1,254 |
Schedule of Change in Allowance for Financing Receivables Losses | The changes in our allowances for financing receivables losses were as follows: September 30, 2021 September 30, 2021 ($ in millions) Originated Acquired Balance as of December 31, 2020 $ 211 $ — Provision for financing receivables losses (1) 77 — Initial allowance for PCD financing receivables acquired during the period (2) — 469 Write-offs ( 50 ) ( 7 ) Balance as of September 30, 2021 $ 238 $ 462 September 30, 2020 September 30, 2020 ($ in millions) Originated Acquired Balance as of December 31, 2019 $ 184 $ — Provision for financing receivables losses (1) 57 — Write-offs ( 24 ) — Balance as of September 30, 2020 $ 217 $ — (1) Includes incremental provision for financing receivables losses, net of activity related to the repurchase of defaulted and upgraded securitized timeshare financing receivables. (2) The initial gross allowance determined for receivables with credit deterioration was $ 469 million as of the Acquisition Date. Of this amount, approximately $ 220 million relates to net uncollectable balances such as loans that were fully written-off prior to Acquisition. Therefore, the net impact to the allowance related to acquired loans not previously written off was an increase of $ 249 million. |
Inventory (Tables)
Inventory (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory | Inventory was comprised of the following: September 30, December 31, ($ in millions) 2021 2020 Completed unsold VOIs $ 1,349 $ 515 Construction in process 42 186 Land, infrastructure and other 70 1 $ 1,461 $ 702 |
Schedule of Costs of Sales True-ups Relating to VOI Products and Impacts on the Carrying Value of Inventory | The table below presents costs of sales true-ups relating to VOI products and the related impacts to the carrying value of inventory. Nine months ended September 30, ($ in millions) 2021 2020 Cost of sales true-up (1) $ ( 1 ) $ 4 (1) For the nine months ended September 30, 2021 , the costs of sales true-up increased costs of VOI sales and decreased inventory. For the nine months ended September 30, 2020, the costs of sales true-up decreased costs of VOI sales and increased inventory. Shown below are expenses incurred, recorded in Cost of VOI sales , related to granting credit to customers for their existing ownership when upgrading into fee-for service projects. Three months ended September 30, Nine months ended September 30, ($ in millions) 2021 2020 2021 2020 Cost of VOI sales related to fee-for-service upgrades $ 1 $ 2 $ 4 $ 7 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Property Plant And Equipment [Abstract] | |
Schedule of Property and Equipment and Related Depreciation Expenses | Property and equipment were comprised of the following: September 30, December 31, ($ in millions) 2021 2020 Land $ 193 $ 109 Building and leasehold improvements 451 250 Furniture and equipment 89 65 Construction in progress 242 208 975 632 Accumulated depreciation ( 153 ) ( 131 ) $ 822 $ 501 |
Consolidated Variable Interes_2
Consolidated Variable Interest Entities (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Schedule of Consolidated Variable Interest Entities | Our unaudited condensed consolidated balance sheets included the assets and liabilities of these entities, which primarily consisted of the following: September 30, December 31, ($ in millions) 2021 2020 Restricted cash $ 63 $ 28 Timeshare financing receivables, net 1,033 742 Non-recourse debt (1) 1,187 766 (1) Net of deferred financing costs. |
Debt & Non-recourse Debt (Table
Debt & Non-recourse Debt (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of Outstanding Borrowings | The following table details our outstanding debt balance and its associated interest rates: September 30, December 31, ($ in millions) 2021 2020 Debt (1) Senior secured credit facility, due 2023 : Term loan with a rate of 2.70 % $ — $ 177 Revolver with a weighted average rate of 2.70 % 300 660 Senior secured credit facility, due 2028 : Term loan with a weighted average rate of 3.50 % 1,300 — Senior notes with a rate of 6.125 %, due 2024 — 300 Senior notes with a rate of 5.000 %, due 2029 850 — Senior notes with a rate of 4.875 %, due 2031 500 — Other debt 34 27 2,984 1,164 Less: unamortized deferred financing costs and discounts (2)(3) ( 55 ) ( 5 ) $ 2,929 $ 1,159 (1) As of September 30, 2021 and December 31, 2020 , weighted-average interest rates were 4.108 percent and 3.357 percent, respectively. (2) Amount includes deferred financing costs and related to our term loan and senior notes of $ 26 million and $ 23 million, respectively, as of September 30, 2021 and $ 1 million and $ 4 million, respectively, as of December 31, 2020. This amount also includes original issuance discounts of $ 6 million as of September 30, 2021 . (3) Amount does not include deferred financing costs of $ 3 million and $ 4 million as of September 30, 2021 and December 31, 2020, respectively, related to our revolving facility included in Other assets in our unaudited condensed consolidated balance sheets. The following table details our outstanding non-recourse debt balance and its associated interest rates: September 30, December 31, ($ in millions) 2021 2020 Non-recourse debt (1) Timeshare Facility with an average rate of 1.017 %, due 2023 (3) $ 96 $ — HGV Securitized Debt with a weighted average rate of 2.711 %, due 2028 78 106 HGV Securitized Debt with a weighted average rate of 3.602 %, due 2032 156 202 HGV Securitized Debt with a weighted average rate of 2.431 %, due 2033 167 216 HGV Securitized Debt with a weighted average rate of 3.658 %, due 2039 204 251 Diamond Resorts Premium Yield Facility with an average rate of 4.766 %, due 2031 10 — Diamond Resorts Owner Trust 2017 with a weighted average rate of 3.504 %, due 2029 46 — Diamond Resorts Owner Trust 2018 with a weighted average rate of 4.061 %, due 2031 107 — Diamond Resorts Owner Trust 2019 with a weighted average rate of 3.277 %, due 2032 172 — Diamond Resorts Owner Trust 2021 with a weighted average rate of 2.160 %, due 2032 261 — 1,297 775 Less: unamortized deferred financing costs (2) ( 7 ) ( 9 ) $ 1,290 $ 766 (1) As of September 30, 2021 and December 31, 2020 , weighted-average interest rates were 2.925 percent and 3.173 percent, respectively. (2) Amount relates to Securitized Debt only and does not include deferred financing costs of $ 2 million and $ 3 million as of September 30, 2021 and December 31, 2020, respectively, relating to our Timeshare Facility included in Other Assets in our unaudited condensed consolidated balance sheets. (3) In connection with the amendment to the Timeshare Facility executed in August 2020, the revolving commitment period of the Timeshare Facility terminates in August 2022, however the repayment maturity date extends 12 months beyond the commitment termination date to August 2023. |
Schedule of Contractual Maturities of Debt | The contractual maturities of our debt and non-recourse debt as of September 30, 2021 were as follows: ($ in millions) Debt Non-recourse Debt Total Year 2021 (remaining) $ 11 $ 65 $ 76 2022 15 272 287 2023 314 284 598 2024 13 116 129 2025 13 146 159 Thereafter 2,618 414 3,032 $ 2,984 $ 1,297 $ 4,281 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Schedule of Carrying and Estimated Fair Value Amounts | The carrying amounts and estimated fair values of our financial assets and liabilities were as follows: September 30, 2021 Hierarchy Level ($ in millions) Carrying Level 1 Level 3 Assets: Timeshare financing receivables, net (1) $ 1,767 $ 2,182 Liabilities: Debt, net (2) 2,929 1,365 1,648 Non-recourse debt, net (2) 1,290 1,227 102 December 31, 2020 Hierarchy Level ($ in millions) Carrying Level 1 Level 3 Assets: Timeshare financing receivables, net (1) $ 974 $ — $ 1,248 Liabilities: Debt, net (2) 1,159 315 871 Non-recourse debt, net (2) 766 — 732 (1) Carrying amount net of allowance for financing receivables losses. (2) Carrying amount net of unamortized deferred financing costs and discount. |
Intangible Assets (Tables)
Intangible Assets (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets and Related Amortization Expense | Intangible assets and related amortization expense were as follows: ($ in millions) Weighted-average useful life (years) September 30, 2021 December 31, 2020 Trade name 1.0 $ 20 $ - Management contracts 17.5 1,352 89 Club member relationships 10.0 146 - Vacation ownership customer relationships 5.5 463 - Computer software 2.3 122 94 Total gross intangible assets $ 2,103 $ 183 Less: accumulated amortization ( 150 ) ( 102 ) Intangible assets, net $ 1,953 $ 81 |
Schedule of Estimated Future Amortization Expense | As of September 30, 2021 we estimated our future amortization expense for our amortizing intangible assets as follows: ($ in millions) Intangibles 2021 (remaining) $ 57 2022 216 2023 188 2024 181 2025 174 Thereafter 1,137 Total $ 1,953 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Leases [Abstract] | |
Schedule Of Supplemental Cash Flow Information Related To Operating Leases | Supplemental cash flow information related to operating leases was as follows: Nine months ended September 30, ($ in millions) 2021 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash outflows from operating leases $ 15 $ 14 Right-of-use assets obtained in exchange for new lease liabilities: Operating leases 35 4 |
Schedule Of Supplemental Balance Sheet Information Related To Operating Leases | Supplemental balance sheet information related to operating leases was as follows: September 30, December 31, 2021 2020 Weighted-average remaining lease term of operating leases (in years) 4.6 5.4 Weighted-average discount rate of operating leases 4.35 % 4.95 % |
Future Minimum Lease Payments Under Non-Cancelable Operating Leases | The future minimum lease payments under noncancelable operating leases, due in each of the next five years and thereafter as of September 30, 2021, are as follows: ($ in millions) Operating Year 2021 (remaining) 7 2022 25 2023 24 2024 17 2025 15 Thereafter 15 Total future minimum lease payments $ 103 Less: imputed interest ( 10 ) Present value of lease liabilities $ 93 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Schedule of Stock Option Valuation Assumptions | The weighted-average grant date fair value of these options was $ 13.30 , which was determined using the Black-Scholes-Merton option-pricing model with the following assumptions: Expected volatility 34.2 % Dividend yield 0 % Risk-free rate 1.1 % Expected term (in years) 6.0 |
Earnings (Loss) Per Share (Tabl
Earnings (Loss) Per Share (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings (Loss) Per Share, Basic and Diluted | The following tables below present the calculation of our basic and diluted earnings (loss) per share (“EPS”) and the corresponding weighted average shares outstanding referenced in these calculations for the three and nine months ended September 30, 2021 and 2020. Three Months Ended September 30, Nine Months Ended September 30, ($ and shares outstanding in millions, except per share amounts) 2021 2020 2021 2020 Basic EPS: Numerator: Net income (loss) (1) $ 99 $ ( 7 ) $ 101 $ ( 47 ) Denominator: Weighted average shares outstanding 108 85 93 85 Basic EPS $ 0.92 $ ( 0.08 ) $ 1.08 $ ( 0.55 ) Diluted EPS: Numerator: Net income (loss) (1) $ 99 $ ( 7 ) $ 101 $ ( 47 ) Denominator: Weighted average shares outstanding 109 85 94 85 Diluted EPS $ 0.90 $ ( 0.08 ) $ 1.07 $ ( 0.55 ) (1) Net income (loss) for the three months ended September 30, 2021 and 2020 was $ 98,704,709 and $( 6,846,654 ), respectively, and $ 100,634,069 and $( 46,771,239 ) for the nine months ended September 30, 2021 and 2020 , respectively. Three Months Ended Nine Months Ended 2021 2020 2021 2020 Weighted average shares outstanding: Basic EPS 107,688,389 85,082,124 92,944,812 85,198,910 Diluted EPS 109,138,778 85,082,124 94,162,838 85,198,910 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Related Party Transactions [Abstract] | |
Summary of Amounts Included in Condensed Consolidated Statements of Operations Related to Fee for Service Arrangement | These amounts are summarized in the following table and are included in General and administrative expenses on our unaudited condensed consolidated statements of operations as of the date they became related parties. Three Months Ended September 30, Nine Months Ended September 30, ($ in millions) 2021 2020 2021 2020 Equity in earnings (losses) from unconsolidated affiliates $ 1 $ ( 1 ) $ 7 $ 3 Commissions and other fees 33 16 70 43 |
Business Segments (Tables)
Business Segments (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Segment Reporting [Abstract] | |
Schedule of Segment Operating Performance Reconciled to Consolidated Amounts | The following table presents revenues for our reportable segments reconciled to consolidated amounts: Three Months Ended Nine Months Ended ($ in millions) 2021 2020 2021 2020 Revenues: Real estate sales and financing $ 659 $ 116 $ 976 $ 378 Resort operations and club 216 61 403 209 Segment revenues 875 177 1,379 587 Cost reimbursements 58 33 131 105 Intersegment eliminations (1)(2) ( 5 ) ( 2 ) ( 13 ) ( 10 ) Total revenues $ 928 $ 208 $ 1,497 $ 682 (1) Includes charges to the real estate sales and financing segment from the resort operations and club management segment for fulfillment of discounted marking package stays at resorts. These charges totaled $ 5 million and $ 2 million for the three months ended September 30, 2021 and 2020. For the nine months ended September 30, 2021 and 2020 , these charges totaled $ 13 million and $ 10 million, respectively. (2) Includes charges to the real estate sales and financing segment from the resort operations and club management segment for the rental of model units to show prospective buyers. These charges totaled less than $ 1 million for the three and nine months ended September 30, 2021 and 2020. |
Schedule of Adjusted EBITDA Reconciled to Net (Loss) Income | The following table presents Adjusted EBITDA for our reportable segments reconciled to net income (loss): Three Months Ended Nine Months Ended ($ in millions) 2021 2020 2021 2020 Adjusted EBITDA: Real estate sales and financing (1) $ 280 $ 15 $ 352 $ 16 Resort operations and club management (1) 109 30 212 100 Segment Adjusted EBITDA 389 45 564 116 Acquisition and integration-related expense ( 54 ) — ( 83 ) — General and administrative ( 41 ) ( 22 ) ( 92 ) ( 65 ) Depreciation and amortization ( 48 ) ( 11 ) ( 71 ) ( 34 ) License fee expense ( 24 ) ( 11 ) ( 57 ) ( 39 ) Other (loss) gain, net ( 20 ) 1 ( 22 ) — Interest expense ( 42 ) ( 10 ) ( 74 ) ( 32 ) Income tax (expense) benefit ( 49 ) 5 ( 46 ) 12 Equity in earnings (losses) from unconsolidated affiliates 1 ( 1 ) 7 3 Impairment expense ( 1 ) — ( 2 ) — Other adjustment items (2) ( 12 ) ( 3 ) ( 23 ) ( 8 ) Net income (loss) $ 99 $ ( 7 ) $ 101 $ ( 47 ) (1) Includes intersegment transactions. Refer to our table presenting revenues by reportable segment above for additional discussion. (2) For the three and nine months ended September 30, 2021 and 2020, this amount includes costs associated with restructuring, one-time charges and other non-cash items included within our reportable segments. For the three months ended September 30, 2021, this also includes amortization of premiums resulting from purchase accounting. |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Commitments And Contingencies Disclosure [Abstract] | |
Schedule of Remaining Purchase Obligations | As of September 30, 2021, our remaining obligations pursuant to these arrangements were expected to be incurred as follows: ($ in millions) 2021 2022 2023 2024 2025 Thereafter Total Inventory purchase obligations $ 20 $ 60 $ 196 $ 40 $ 3 $ 12 $ 331 Other commitments (1) 2 5 1 — — — 8 Total $ 22 $ 65 $ 197 $ 40 $ 3 $ 12 $ 339 |
Organization and Basis of Pre_2
Organization and Basis of Presentation - Additional Information (Details) - Property | Sep. 30, 2021 | Aug. 02, 2021 | Mar. 10, 2021 |
Restructuring Cost and Reserve [Line Items] | |||
Number of timeshare properties | 154 | ||
Dakota Holdings Inc | |||
Restructuring Cost and Reserve [Line Items] | |||
Outstanding equity interests | 100.00% | ||
Remaining Acquired Stake after effective acquisition | 28.00% | 72.00% | |
Legacy-Diamond | |||
Restructuring Cost and Reserve [Line Items] | |||
Number of timeshare properties | 92 |
Diamond Acquisition - Additiona
Diamond Acquisition - Additional Information (Details) - Diamond Acquisition - USD ($) $ in Millions | Aug. 02, 2021 | Sep. 30, 2021 |
Business Acquisition [Line Items] | ||
Business combination, percentage of interests acquired | 28.00% | |
Business combination, number of shares issuable | 33.93 | |
Business acquisition, Value of issued shares of common stock | $ 83 | |
Apollo | ||
Business Acquisition [Line Items] | ||
Business combination, percentage of interests acquired | 72.00% | |
Common Stock | ||
Business Acquisition [Line Items] | ||
Business combination, percentage of interests acquired | 100.00% | |
Business combination, number of shares issuable | 0.32 |
Diamond Acquisition - Schedule
Diamond Acquisition - Schedule of Fair Value of Consideration Transferred (Details) - Diamond Acquisition [Member] - USD ($) $ / shares in Units, $ in Millions | Aug. 02, 2021 | Sep. 30, 2021 |
Business Acquisition [Line Items] | ||
HGV common stock shares issued for outstanding Diamond shares | 33.93 | |
HGV common stock price as of Acquisition Date | $ 40.71 | |
Stock purchase price | $ 1,381 | |
Repayment of Legacy-Diamond debt | 2,029 | |
Total consideration transferred | $ 3,410 | $ 3,410 |
Diamond Acquisition - Schedul_2
Diamond Acquisition - Schedule of Preliminary Fair Values of Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Millions | Aug. 02, 2021 | Sep. 30, 2021 | Dec. 31, 2020 |
Business Acquisition [Line Items] | |||
Timeshare financing receivables, net | $ 1,767 | $ 974 | |
Operating lease right-of-use assets, net | 76 | 52 | |
Advanced deposits | 116 | 117 | |
Goodwill | 820 | $ 0 | |
Diamond Acquisition | |||
Business Acquisition [Line Items] | |||
Cash and cash equivalents | $ 314 | ||
Restricted cash | 130 | ||
Accounts receivable, net of allowance for doubtful accounts | 58 | ||
Timeshare financing receivables, net | 841 | ||
Inventory | 745 | ||
Property and equipment, net | 307 | ||
Operating lease right-of-use assets, net | 30 | ||
Intangible assets, net | 1,906 | ||
Other assets | 243 | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets, Total | 4,574 | ||
Accounts payable, accrued expenses and other | 448 | ||
Debt, net | 14 | ||
Non-recourse debt, net | 661 | ||
Operating lease liabilities | 33 | ||
Advanced deposits | 4 | ||
Deferred revenues | 173 | ||
Deferred income tax liabilities | 651 | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities, Total | 1,984 | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net, Total | 2,590 | ||
Total consideration transferred | 3,410 | $ 3,410 | |
Goodwill | $ 820 |
Diamond Acquisition - Schedul_3
Diamond Acquisition - Schedule of Financing Receivables (Details) $ in Millions | Aug. 02, 2021USD ($) |
Business Combinations [Abstract] | |
Purchase price | $ 841 |
Allowance for credit losses | 469 |
(Premium) attributable to other factors | (69) |
Par value | $ 1,241 |
Diamond Acquisition - Schedul_4
Diamond Acquisition - Schedule of Preliminary Estimates Of The Fair Value of Intangible Assets and Estimated Remaining Use (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2021 | Dec. 31, 2020 | |
Finite-Lived Intangible Assets [Line Items] | ||
Estimated Fair Value | $ (150) | $ (102) |
Diamond Acquisition | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated Fair Value | 1,906 | |
Trade name | Diamond Acquisition | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated Fair Value | $ 20 | |
Estimated Useful Life | 1 year | |
Management contracts | Diamond Acquisition | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated Fair Value | $ 1,263 | |
Estimated Useful Life | 17 years 6 months | |
Club member relationships | Diamond Acquisition | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated Fair Value | $ 146 | |
Estimated Useful Life | 10 years | |
Vacation ownership customer relationships | Diamond Acquisition | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated Fair Value | $ 463 | |
Estimated Useful Life | 5 years 6 months | |
Computer software | Diamond Acquisition | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated Fair Value | $ 14 | |
Estimated Useful Life | 1 year 6 months |
Diamond Acquisition - Schedul_5
Diamond Acquisition - Schedule of Acquisition Pro Forma Information (Details) - USD ($) $ in Millions | 2 Months Ended | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | |||||
Revenues | $ 245 | $ 928 | $ 208 | $ 1,497 | $ 682 |
Net income (loss) | $ 30 | ||||
Diamond Acquisition [Member] | |||||
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | |||||
Revenues | 2,321 | 1,431 | |||
Net income (loss) | $ 173 | $ (307) |
Diamond Acquisition - Summary o
Diamond Acquisition - Summary of Diamond Results of Operations (Details) - USD ($) $ in Millions | 2 Months Ended | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Business Combinations [Abstract] | |||||
Revenues | $ 245 | $ 928 | $ 208 | $ 1,497 | $ 682 |
Net income | $ 30 |
Revenue from Contracts with C_3
Revenue from Contracts with Customers - Additional Information (Details) $ in Millions | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2021USD ($) | Sep. 30, 2021USD ($)Segment | Dec. 31, 2020USD ($) | |
Revenue Initial Application Period Cumulative Effect Transition [Line Items] | |||
Number of operating segments | Segment | 2 | ||
Deferred revenues | $ 270 | $ 270 | $ 262 |
Deferred revenue that was included in the contract liabilities balance | 170 | 170 | 16 |
Sales of VOIs | |||
Revenue Initial Application Period Cumulative Effect Transition [Line Items] | |||
Revenue earned that was included in the contract liabilities balance | 16 | 106 | |
Deferred revenues | $ 0 | $ 0 | $ 169 |
Revenue from Contracts with C_4
Revenue from Contracts with Customers - Schedule of Disaggregated Revenues by Segment from Contracts with Customers (Details) - USD ($) $ in Millions | 2 Months Ended | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | ||
Disaggregation Of Revenue [Line Items] | ||||||
Total revenues | $ 245 | $ 928 | $ 208 | $ 1,497 | $ 682 | |
Real Estate and Financing Segment | ||||||
Disaggregation Of Revenue [Line Items] | ||||||
Total revenues | 659 | 116 | 976 | 378 | ||
Resort Operations and Club Management Segment | ||||||
Disaggregation Of Revenue [Line Items] | ||||||
Total revenues | 211 | 59 | 390 | 199 | ||
Sales of VOIs, Net | ||||||
Disaggregation Of Revenue [Line Items] | ||||||
Total revenues | 488 | 24 | 597 | 80 | ||
Sales of VOIs, Net | Real Estate and Financing Segment | ||||||
Disaggregation Of Revenue [Line Items] | ||||||
Total revenues | 488 | 24 | 597 | 80 | ||
Sales, Marketing, Brand and Other Fees | ||||||
Disaggregation Of Revenue [Line Items] | ||||||
Total revenues | 118 | 52 | 252 | 171 | ||
Sales, Marketing, Brand and Other Fees | Real Estate and Financing Segment | ||||||
Disaggregation Of Revenue [Line Items] | ||||||
Total revenues | 118 | 52 | 252 | 171 | ||
Interest Income | Real Estate and Financing Segment | ||||||
Disaggregation Of Revenue [Line Items] | ||||||
Total revenues | 46 | 34 | 108 | 108 | ||
Other Financing Revenue | Real Estate and Financing Segment | ||||||
Disaggregation Of Revenue [Line Items] | ||||||
Total revenues | 7 | 6 | 19 | 19 | ||
Club Management | Resort Operations and Club Management Segment | ||||||
Disaggregation Of Revenue [Line Items] | ||||||
Total revenues | 42 | 23 | 98 | 70 | ||
Resort Management | Resort Operations and Club Management Segment | ||||||
Disaggregation Of Revenue [Line Items] | ||||||
Total revenues | 57 | 16 | 94 | 52 | ||
Rental | Resort Operations and Club Management Segment | ||||||
Disaggregation Of Revenue [Line Items] | ||||||
Total revenues | [1] | 104 | 19 | 184 | 71 | |
Ancillary Services | Resort Operations and Club Management Segment | ||||||
Disaggregation Of Revenue [Line Items] | ||||||
Total revenues | $ 8 | $ 1 | $ 14 | $ 6 | ||
[1] | Excludes intersegment eliminations. See Note 20: Business Segments for additional information. |
Revenue from Contracts with C_5
Revenue from Contracts with Customers - Schedule of Accounts Receivable from Contracts with Customers (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
Accounts Receivables | ||
Revenue Initial Application Period Cumulative Effect Transition [Line Items] | ||
Receivables | $ 189 | $ 64 |
Revenue from Contracts with C_6
Revenue from Contracts with Customers - Composition of Contract Liabilities (Details) - Topic 606 - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 | |
Advanced deposits | |||
Revenue Initial Application Period Cumulative Effect Transition [Line Items] | |||
Contract liabilities | $ 116 | $ 117 | |
Deferred Sales of VOIs of projects under construction | |||
Revenue Initial Application Period Cumulative Effect Transition [Line Items] | |||
Contract liabilities | 0 | 169 | |
Annual dues and Legacy-HGV Club activation fees | |||
Revenue Initial Application Period Cumulative Effect Transition [Line Items] | |||
Contract liabilities | 100 | 77 | |
Bonus Point incentive liability | |||
Revenue Initial Application Period Cumulative Effect Transition [Line Items] | |||
Contract liabilities | [1] | $ 51 | $ 48 |
[1] | Amounts related to the Bonus Point incentive liability are included in Accounts payable, accrued expenses and other on our condensed consolidated balance sheets. This liability is comprised of unrecognized revenue for incentives from VOI sales and sales and marketing expenses in conjunction with our fee-for-service arrangements. |
Revenue from Contracts with C_7
Revenue from Contracts with Customers - Schedule of Deferred Revenue, Cost of VOI Sales and Direct Selling Costs from Sales of VOIs Related to Project Under Construction (Details) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2021 | Dec. 31, 2020 | ||
Revenue Initial Application Period Cumulative Effect Transition [Line Items] | |||
Sales of VOIs, net | $ 270 | $ 262 | |
Sales of VOIs | |||
Revenue Initial Application Period Cumulative Effect Transition [Line Items] | |||
Sales of VOIs, net | 0 | 169 | |
Cost of VOI sales | [1] | 0 | 50 |
Sales and marketing expense | $ 0 | $ 25 | |
[1] | Includes anticipated Cost of VOI sales related to inventory associated with Sales of VOIs under construction that will be acquired under a just-in-time arrangement once construction is complete. |
Revenue from Contracts with C_8
Revenue from Contracts with Customers - Remaining Transaction Price (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2021USD ($) | |
Advanced deposits | |
Revenue Initial Application Period Cumulative Effect Transition [Line Items] | |
Remaining Transaction Price | $ 116 |
Recognition Period | 18 months |
Recognition Method | Upon customer stays |
Annual dues and Legacy-HGV Club activation fees | |
Revenue Initial Application Period Cumulative Effect Transition [Line Items] | |
Remaining Transaction Price | $ 62 |
Recognition Period | 7 years |
Recognition Method | Straight-line basis over average inventory holding period |
Bonus Points | |
Revenue Initial Application Period Cumulative Effect Transition [Line Items] | |
Remaining Transaction Price | $ 51 |
Recognition Method | Upon redemption |
Bonus Points | Maximum | |
Revenue Initial Application Period Cumulative Effect Transition [Line Items] | |
Recognition Period | 30 months |
Bonus Points | Minimum | |
Revenue Initial Application Period Cumulative Effect Transition [Line Items] | |
Recognition Period | 18 months |
Restricted Cash - Schedule of R
Restricted Cash - Schedule of Restricted Cash (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 | |
Restricted Cash and Cash Equivalents Items [Line Items] | |||
Restricted cash | $ 230 | $ 98 | |
Escrow deposits on VOI sales | |||
Restricted Cash and Cash Equivalents Items [Line Items] | |||
Restricted cash | 128 | 69 | |
Reserves related to non-recourse debt | |||
Restricted Cash and Cash Equivalents Items [Line Items] | |||
Restricted cash | [1] | 68 | 29 |
Other [Member] | |||
Restricted Cash and Cash Equivalents Items [Line Items] | |||
Restricted cash | [2] | $ 34 | $ 0 |
[1] | (1) See Note 12: Debt & Non-recourse Debt for further discussion. | ||
[2] | 2) Other restricted cash includes cash collected on behalf of HOAs, deposits related to servicer arrangements and other individually immaterial items. |
Accounts Receivable - Summary o
Accounts Receivable - Summary of Accounts Receivable, Net of Allowance for Credit Losses (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 | |
Accounts Notes And Loans Receivable [Line Items] | |||
Accounts receivable, net of allowances | $ 278 | $ 119 | |
Fee-for-Service Commission | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Accounts receivable, net of allowances | [1] | 67 | 22 |
Real Estate and Financing | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Accounts receivable, net of allowances | 44 | 11 | |
Resort and Club Operations | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Accounts receivable, net of allowances | 73 | 23 | |
Tax Receivables | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Accounts receivable, net of allowances | 85 | 54 | |
Other Receivables | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Accounts receivable, net of allowances | [2] | $ 9 | $ 9 |
[1] | Net of allowance. | ||
[2] | For the periods ended September 30, 2021 and December 31, 2020, includes individually insignificant accounts receivable recognized in the ordinary course of business and allowances for which are also individually insignificant. For the period ended September 30, 2021, also includes o ther receivables primarily associated with miscellaneous sales and marketing activity. |
Accounts Receivable - Changes i
Accounts Receivable - Changes in Allowance for Fee-for-Service Commissions (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2021USD ($) | |
Accounts Notes And Loans Receivable [Line Items] | |
Balance as of December 31, 2020 | $ 20 |
Balance as of September 30, 2021 | 44 |
Fee-for-Service Commission | |
Accounts Notes And Loans Receivable [Line Items] | |
Balance as of December 31, 2020 | 18 |
Current period provision for expected credit losses | 4 |
Write-offs charged against the allowance | (5) |
Balance as of September 30, 2021 | $ 17 |
Timeshare Financing Receivabl_3
Timeshare Financing Receivables - Schedule of Timeshare Financing Receivables (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Dec. 31, 2019 | ||
Accounts Notes And Loans Receivable [Line Items] | ||||||
Timeshare financing receivables | $ 1,151 | |||||
Timeshare financing receivables, net | 1,767 | $ 974 | ||||
Originated | ||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||
Securitized | 629 | [1] | 805 | |||
Unsecuritized | 641 | 380 | [1] | |||
Timeshare financing receivables | 1,270 | 1,185 | ||||
Unamortized non-credit acquisition preminum | 69 | |||||
Less: allowance for financing receivables losses | (238) | (211) | $ (217) | $ (184) | ||
Timeshare financing receivables, net | 1,032 | 974 | ||||
Acquired | ||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||
Securitized | 605 | [2] | ||||
Unsecuritized | 530 | [1],[2] | ||||
Timeshare financing receivables | 1,135 | [2] | ||||
Unamortized non-credit acquisition preminum | 62 | [2],[3] | ||||
Less: allowance for financing receivables losses | (462) | [2] | $ 0 | $ 0 | ||
Timeshare financing receivables, net | $ 735 | [2] | ||||
[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 $ 69 million was recognized at the Acquisition Date, of which $ 62 million remains unamortized as of September 30, 2021. |
Timeshare Financing Receivabl_4
Timeshare Financing Receivables - Additional Information (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2021 | Dec. 31, 2020 | |
Accounts Notes And Loans Receivable [Line Items] | ||
Decrease in Variable Consideration | $ (77) | |
Timeshare financing receivable not accruing interest | $ 103 | $ 117 |
Originated | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Financing receivable, average interest rate (as a percent) | 13.02% | |
Financing receivable, weighted average remaining term (in years) | 7 years 8 months 12 days | |
Financing receivable weighted average maturities year | 2036 | |
Interest receivable outstanding | $ 8 | 7 |
Acquired | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Financing receivable, weighted average interest rate (as a percent) | 15.57% | |
Financing receivable, weighted average remaining term (in years) | 8 years 3 months 18 days | |
Financing receivable weighted average maturities year | 2036 | |
Interest receivable outstanding | $ 7 | |
Legacy-Diamond | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Timeshare financing receivable not accruing interest | $ 345 | |
Minimum | Originated | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Financing receivable, stated interest rate (as a percent) | 1.00% | |
Minimum | Acquired | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Financing receivable, stated interest rate (as a percent) | 1.00% | |
Maximum | Originated | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Financing receivable, stated interest rate (as a percent) | 25.00% | |
Maximum | Acquired | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Financing receivable, stated interest rate (as a percent) | 25.00% | |
Non-recourse Debt | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Gross timeshare receivables securing the Timeshare Facility | $ 97 | $ 17 |
Timeshare Financing Receivabl_5
Timeshare Financing Receivables - Maturities of Financing Receivables (Details) $ in Millions | Sep. 30, 2021USD ($) |
Acquired | |
Accounts Notes And Loans Receivable [Line Items] | |
2021 (remaining) | $ 28 |
2022 | 3 |
2023 | 7 |
2024 | 13 |
2025 | 24 |
Thereafter | 1,060 |
Timeshare financing receivable maturities, net | 1,135 |
Originated | |
Accounts Notes And Loans Receivable [Line Items] | |
2021 (remaining) | 36 |
2022 | 129 |
2023 | 135 |
2024 | 139 |
2025 | 140 |
Thereafter | 691 |
Timeshare financing receivable maturities, net | 1,270 |
Securitized | Acquired | |
Accounts Notes And Loans Receivable [Line Items] | |
2021 (remaining) | |
2022 | 1 |
2023 | 3 |
2024 | 7 |
2025 | 13 |
Thereafter | 581 |
Timeshare financing receivable maturities, net | 605 |
Securitized | Originated | |
Accounts Notes And Loans Receivable [Line Items] | |
2021 (remaining) | 21 |
2022 | 87 |
2023 | 89 |
2024 | 90 |
2025 | 87 |
Thereafter | 255 |
Timeshare financing receivable maturities, net | 629 |
Unsecuritized | Acquired | |
Accounts Notes And Loans Receivable [Line Items] | |
2021 (remaining) | 28 |
2022 | 2 |
2023 | 4 |
2024 | 6 |
2025 | 11 |
Thereafter | 479 |
Timeshare financing receivable maturities, net | 530 |
Unsecuritized | Originated | |
Accounts Notes And Loans Receivable [Line Items] | |
2021 (remaining) | 15 |
2022 | 42 |
2023 | 46 |
2024 | 49 |
2025 | 53 |
Thereafter | 436 |
Timeshare financing receivable maturities, net | $ 641 |
Timeshare Financing Receivabl_6
Timeshare Financing Receivables - Financing Receivable by Average FICO Score (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 | |||
Financing Receivable, Recorded Investment [Line Items] | |||||
Timeshare financing receivables | $ 1,151 | ||||
Originated | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Timeshare financing receivables | 1,270 | $ 1,185 | |||
Acquired | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Timeshare financing receivables | 1,135 | [1] | |||
Legacy-HGV | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Timeshare financing receivables | 1,151 | 1,185 | |||
Legacy-Diamond | Originated | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Timeshare financing receivables | 119 | ||||
Legacy-Diamond | Acquired | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Timeshare financing receivables | 1,135 | ||||
More than 700 | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Timeshare financing receivables | 693 | ||||
More than 700 | Legacy-HGV | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Timeshare financing receivables | 693 | 711 | |||
More than 700 | Legacy-Diamond | Originated | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Timeshare financing receivables | 85 | ||||
More than 700 | Legacy-Diamond | Acquired | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Timeshare financing receivables | 721 | ||||
600-699 | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Timeshare financing receivables | 254 | ||||
600-699 | Legacy-HGV | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Timeshare financing receivables | 254 | 266 | |||
600-699 | Legacy-Diamond | Originated | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Timeshare financing receivables | 25 | ||||
600-699 | Legacy-Diamond | Acquired | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Timeshare financing receivables | 342 | ||||
Less than 600 | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Timeshare financing receivables | 35 | ||||
Less than 600 | Legacy-HGV | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Timeshare financing receivables | 35 | 36 | |||
Less than 600 | Legacy-Diamond | Originated | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Timeshare financing receivables | 4 | ||||
Less than 600 | Legacy-Diamond | Acquired | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Timeshare financing receivables | 54 | ||||
No score | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Timeshare financing receivables | [2] | 169 | |||
No score | Legacy-HGV | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Timeshare financing receivables | 169 | [3] | $ 172 | [2] | |
No score | Legacy-Diamond | Originated | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Timeshare financing receivables | [4] | 5 | |||
No score | Legacy-Diamond | Acquired | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Timeshare financing receivables | [5] | $ 18 | |||
[1] | 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. | ||||
[2] | Timeshare financing receivables without a FICO score are primarily related to foreign borrowers. | ||||
[3] | Timeshare financing receivables without a FICO score are primarily related to foreign borrowers. | ||||
[4] | Timeshare financing receivables without a FICO score are primarily related to foreign borrowers. | ||||
[5] | Timeshare financing receivables without a FICO score are primarily related to foreign borrowers. |
Timeshare Financing Receivabl_7
Timeshare Financing Receivables - Details of Financing Receivables by Origination Year and Average FICO Score (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Timeshare financing receivables | $ 1,151 | |||
Originated | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Timeshare financing receivables | 1,270 | $ 1,185 | ||
Acquired | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Timeshare financing receivables | 1,135 | [1] | ||
More than 700 | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Timeshare financing receivables | 693 | |||
600-699 | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Timeshare financing receivables | 254 | |||
Less than 600 | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Timeshare financing receivables | 35 | |||
No score | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Timeshare financing receivables | [2] | 169 | ||
Legacy-Diamond | Originated | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Timeshare financing receivables | 119 | |||
Legacy-Diamond | Acquired | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Timeshare financing receivables | 1,135 | |||
Legacy-Diamond | More than 700 | Originated | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Timeshare financing receivables | 85 | |||
Legacy-Diamond | More than 700 | Acquired | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Timeshare financing receivables | 721 | |||
Legacy-Diamond | 600-699 | Originated | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Timeshare financing receivables | 25 | |||
Legacy-Diamond | 600-699 | Acquired | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Timeshare financing receivables | 343 | |||
Legacy-Diamond | Less than 600 | Originated | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Timeshare financing receivables | 4 | |||
Legacy-Diamond | Less than 600 | Acquired | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Timeshare financing receivables | 53 | |||
Legacy-Diamond | No score | Originated | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Timeshare financing receivables | [3] | 5 | ||
Legacy-Diamond | No score | Acquired | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Timeshare financing receivables | [4] | 18 | ||
Year Of Origination 2021 | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Timeshare financing receivables | 278 | |||
Year Of Origination 2021 | More than 700 | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Timeshare financing receivables | 177 | |||
Year Of Origination 2021 | 600-699 | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Timeshare financing receivables | 59 | |||
Year Of Origination 2021 | Less than 600 | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Timeshare financing receivables | 8 | |||
Year Of Origination 2021 | No score | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Timeshare financing receivables | [2] | 34 | ||
Year Of Origination 2021 | Legacy-Diamond | Originated | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Timeshare financing receivables | 119 | |||
Year Of Origination 2021 | Legacy-Diamond | Acquired | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Timeshare financing receivables | 229 | |||
Year Of Origination 2021 | Legacy-Diamond | More than 700 | Originated | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Timeshare financing receivables | 85 | |||
Year Of Origination 2021 | Legacy-Diamond | More than 700 | Acquired | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Timeshare financing receivables | 155 | |||
Year Of Origination 2021 | Legacy-Diamond | 600-699 | Originated | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Timeshare financing receivables | 25 | |||
Year Of Origination 2021 | Legacy-Diamond | 600-699 | Acquired | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Timeshare financing receivables | 61 | |||
Year Of Origination 2021 | Legacy-Diamond | Less than 600 | Originated | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Timeshare financing receivables | 4 | |||
Year Of Origination 2021 | Legacy-Diamond | Less than 600 | Acquired | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Timeshare financing receivables | 10 | |||
Year Of Origination 2021 | Legacy-Diamond | No score | Originated | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Timeshare financing receivables | [3] | 5 | ||
Year Of Origination 2021 | Legacy-Diamond | No score | Acquired | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Timeshare financing receivables | [4] | 3 | ||
Year Of Origination 2020 | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Timeshare financing receivables | 157 | |||
Year Of Origination 2020 | More than 700 | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Timeshare financing receivables | 91 | |||
Year Of Origination 2020 | 600-699 | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Timeshare financing receivables | 34 | |||
Year Of Origination 2020 | Less than 600 | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Timeshare financing receivables | 5 | |||
Year Of Origination 2020 | No score | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Timeshare financing receivables | [2] | 27 | ||
Year Of Origination 2020 | Legacy-Diamond | Originated | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Timeshare financing receivables | ||||
Year Of Origination 2020 | Legacy-Diamond | Acquired | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Timeshare financing receivables | 219 | |||
Year Of Origination 2020 | Legacy-Diamond | More than 700 | Originated | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Timeshare financing receivables | ||||
Year Of Origination 2020 | Legacy-Diamond | More than 700 | Acquired | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Timeshare financing receivables | 146 | |||
Year Of Origination 2020 | Legacy-Diamond | 600-699 | Originated | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Timeshare financing receivables | ||||
Year Of Origination 2020 | Legacy-Diamond | 600-699 | Acquired | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Timeshare financing receivables | 59 | |||
Year Of Origination 2020 | Legacy-Diamond | Less than 600 | Originated | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Timeshare financing receivables | ||||
Year Of Origination 2020 | Legacy-Diamond | Less than 600 | Acquired | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Timeshare financing receivables | 11 | |||
Year Of Origination 2020 | Legacy-Diamond | No score | Originated | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Timeshare financing receivables | ||||
Year Of Origination 2020 | Legacy-Diamond | No score | Acquired | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Timeshare financing receivables | [4] | 3 | ||
Year Of Origination 2019 | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Timeshare financing receivables | 261 | |||
Year Of Origination 2019 | More than 700 | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Timeshare financing receivables | 156 | |||
Year Of Origination 2019 | 600-699 | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Timeshare financing receivables | 58 | |||
Year Of Origination 2019 | Less than 600 | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Timeshare financing receivables | 8 | |||
Year Of Origination 2019 | No score | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Timeshare financing receivables | [2] | 39 | ||
Year Of Origination 2019 | Legacy-Diamond | Originated | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Timeshare financing receivables | ||||
Year Of Origination 2019 | Legacy-Diamond | Acquired | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Timeshare financing receivables | 276 | |||
Year Of Origination 2019 | Legacy-Diamond | More than 700 | Originated | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Timeshare financing receivables | ||||
Year Of Origination 2019 | Legacy-Diamond | More than 700 | Acquired | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Timeshare financing receivables | 175 | |||
Year Of Origination 2019 | Legacy-Diamond | 600-699 | Originated | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Timeshare financing receivables | ||||
Year Of Origination 2019 | Legacy-Diamond | 600-699 | Acquired | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Timeshare financing receivables | 86 | |||
Year Of Origination 2019 | Legacy-Diamond | Less than 600 | Originated | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Timeshare financing receivables | ||||
Year Of Origination 2019 | Legacy-Diamond | Less than 600 | Acquired | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Timeshare financing receivables | 11 | |||
Year Of Origination 2019 | Legacy-Diamond | No score | Originated | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Timeshare financing receivables | ||||
Year Of Origination 2019 | Legacy-Diamond | No score | Acquired | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Timeshare financing receivables | [4] | 4 | ||
Year Of Origination 2018 | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Timeshare financing receivables | 176 | |||
Year Of Origination 2018 | More than 700 | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Timeshare financing receivables | 106 | |||
Year Of Origination 2018 | 600-699 | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Timeshare financing receivables | 39 | |||
Year Of Origination 2018 | Less than 600 | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Timeshare financing receivables | 5 | |||
Year Of Origination 2018 | No score | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Timeshare financing receivables | [2] | 26 | ||
Year Of Origination 2018 | Legacy-Diamond | Originated | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Timeshare financing receivables | ||||
Year Of Origination 2018 | Legacy-Diamond | Acquired | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Timeshare financing receivables | 176 | |||
Year Of Origination 2018 | Legacy-Diamond | More than 700 | Originated | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Timeshare financing receivables | ||||
Year Of Origination 2018 | Legacy-Diamond | More than 700 | Acquired | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Timeshare financing receivables | 113 | |||
Year Of Origination 2018 | Legacy-Diamond | 600-699 | Originated | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Timeshare financing receivables | ||||
Year Of Origination 2018 | Legacy-Diamond | 600-699 | Acquired | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Timeshare financing receivables | 56 | |||
Year Of Origination 2018 | Legacy-Diamond | Less than 600 | Originated | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Timeshare financing receivables | ||||
Year Of Origination 2018 | Legacy-Diamond | Less than 600 | Acquired | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Timeshare financing receivables | 5 | |||
Year Of Origination 2018 | Legacy-Diamond | No score | Originated | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Timeshare financing receivables | ||||
Year Of Origination 2018 | Legacy-Diamond | No score | Acquired | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Timeshare financing receivables | [4] | 2 | ||
Year Of Origination 2017 | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Timeshare financing receivables | 113 | |||
Year Of Origination 2017 | More than 700 | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Timeshare financing receivables | 71 | |||
Year Of Origination 2017 | 600-699 | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Timeshare financing receivables | 25 | |||
Year Of Origination 2017 | Less than 600 | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Timeshare financing receivables | 3 | |||
Year Of Origination 2017 | No score | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Timeshare financing receivables | [2] | 14 | ||
Year Of Origination 2017 | Legacy-Diamond | Originated | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Timeshare financing receivables | ||||
Year Of Origination 2017 | Legacy-Diamond | Acquired | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Timeshare financing receivables | 106 | |||
Year Of Origination 2017 | Legacy-Diamond | More than 700 | Originated | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Timeshare financing receivables | ||||
Year Of Origination 2017 | Legacy-Diamond | More than 700 | Acquired | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Timeshare financing receivables | 70 | |||
Year Of Origination 2017 | Legacy-Diamond | 600-699 | Originated | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Timeshare financing receivables | ||||
Year Of Origination 2017 | Legacy-Diamond | 600-699 | Acquired | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Timeshare financing receivables | 32 | |||
Year Of Origination 2017 | Legacy-Diamond | Less than 600 | Originated | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Timeshare financing receivables | ||||
Year Of Origination 2017 | Legacy-Diamond | Less than 600 | Acquired | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Timeshare financing receivables | 2 | |||
Year Of Origination 2017 | Legacy-Diamond | No score | Originated | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Timeshare financing receivables | ||||
Year Of Origination 2017 | Legacy-Diamond | No score | Acquired | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Timeshare financing receivables | [4] | 2 | ||
Year Of Origination Prior | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Timeshare financing receivables | 166 | |||
Year Of Origination Prior | More than 700 | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Timeshare financing receivables | 92 | |||
Year Of Origination Prior | 600-699 | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Timeshare financing receivables | 39 | |||
Year Of Origination Prior | Less than 600 | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Timeshare financing receivables | 6 | |||
Year Of Origination Prior | No score | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Timeshare financing receivables | [2] | 29 | ||
Year Of Origination Prior | Legacy-Diamond | Originated | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Timeshare financing receivables | ||||
Year Of Origination Prior | Legacy-Diamond | Acquired | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Timeshare financing receivables | 129 | |||
Year Of Origination Prior | Legacy-Diamond | More than 700 | Originated | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Timeshare financing receivables | ||||
Year Of Origination Prior | Legacy-Diamond | More than 700 | Acquired | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Timeshare financing receivables | 62 | |||
Year Of Origination Prior | Legacy-Diamond | 600-699 | Originated | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Timeshare financing receivables | ||||
Year Of Origination Prior | Legacy-Diamond | 600-699 | Acquired | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Timeshare financing receivables | 49 | |||
Year Of Origination Prior | Legacy-Diamond | Less than 600 | Originated | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Timeshare financing receivables | ||||
Year Of Origination Prior | Legacy-Diamond | Less than 600 | Acquired | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Timeshare financing receivables | 14 | |||
Year Of Origination Prior | Legacy-Diamond | No score | Originated | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Timeshare financing receivables | ||||
Year Of Origination Prior | Legacy-Diamond | No score | Acquired | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Timeshare financing receivables | [4] | $ 4 | ||
[1] | 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. | |||
[2] | Timeshare financing receivables without a FICO score are primarily related to foreign borrowers. | |||
[3] | Timeshare financing receivables without a FICO score are primarily related to foreign borrowers. | |||
[4] | Timeshare financing receivables without a FICO score are primarily related to foreign borrowers. |
Timeshare Financing Receivabl_8
Timeshare Financing Receivables - Past Due Financing Receivables (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
Legacy-Diamond | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | $ 877 | |
Financing receivable, past due and current | 1,254 | |
Legacy-Diamond | 31 - 90 days past due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivable, past due | 32 | |
Legacy-Diamond | 91 - 120 days past due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivable, past due | 13 | |
Legacy-Diamond | 121 days and greater past due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivable, past due | 332 | |
Legacy-HGV | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 1,036 | $ 1,048 |
Financing receivable, past due and current | 1,151 | 1,185 |
Legacy-HGV | 31 - 90 days past due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivable, past due | 12 | 20 |
Legacy-HGV | 91 - 120 days past due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivable, past due | 3 | 8 |
Legacy-HGV | 121 days and greater past due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivable, past due | 100 | 109 |
Securitized | Legacy-Diamond | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 565 | |
Financing receivable, past due and current | 606 | |
Securitized | Legacy-Diamond | 31 - 90 days past due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivable, past due | 18 | |
Securitized | Legacy-Diamond | 91 - 120 days past due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivable, past due | 8 | |
Securitized | Legacy-Diamond | 121 days and greater past due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivable, past due | 15 | |
Securitized | Legacy-HGV | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 619 | 783 |
Financing receivable, past due and current | 628 | 805 |
Securitized | Legacy-HGV | 31 - 90 days past due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivable, past due | 5 | 11 |
Securitized | Legacy-HGV | 91 - 120 days past due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivable, past due | 2 | 5 |
Securitized | Legacy-HGV | 121 days and greater past due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivable, past due | 2 | 6 |
Unsecuritized | Legacy-Diamond | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 312 | |
Financing receivable, past due and current | 648 | |
Unsecuritized | Legacy-Diamond | 31 - 90 days past due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivable, past due | 14 | |
Unsecuritized | Legacy-Diamond | 91 - 120 days past due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivable, past due | 5 | |
Unsecuritized | Legacy-Diamond | 121 days and greater past due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivable, past due | 317 | |
Unsecuritized | Legacy-HGV | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 417 | 265 |
Financing receivable, past due and current | 523 | 380 |
Unsecuritized | Legacy-HGV | 31 - 90 days past due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivable, past due | 7 | 9 |
Unsecuritized | Legacy-HGV | 91 - 120 days past due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivable, past due | 1 | 3 |
Unsecuritized | Legacy-HGV | 121 days and greater past due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivable, past due | $ 98 | $ 103 |
Timeshare Financing Receivabl_9
Timeshare Financing Receivables - Schedule of Change in Allowance For Financing Receivables Losses (Details) - USD ($) $ in Millions | 9 Months Ended | ||||
Sep. 30, 2021 | Sep. 30, 2020 | ||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||||
Provision for financing receivables losses | $ 77 | $ 57 | |||
Initial allowance for PCD financing receivables acquired during the period | 469 | ||||
Originated | |||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||||
Allowance for loan loss, beginning balance | 211 | 184 | |||
Provision for financing receivables losses | [1] | 77 | 57 | ||
Initial allowance for PCD financing receivables acquired during the period | [2] | 0 | |||
Write-offs | (50) | (24) | |||
Allowance for loan loss, ending balance | 238 | 217 | |||
Acquired | |||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||||
Allowance for loan loss, beginning balance | 0 | ||||
Provision for financing receivables losses | 0 | [1] | 0 | [2] | |
Initial allowance for PCD financing receivables acquired during the period | [2] | 469 | |||
Write-offs | (7) | 0 | |||
Allowance for loan loss, ending balance | $ 462 | [3] | $ 0 | ||
[1] | Includes incremental provision for financing receivables losses, net of activity related to the repurchase of defaulted and upgraded securitized timeshare financing receivables. | ||||
[2] | The initial gross allowance determined for receivables with credit deterioration was $ 469 million as of the Acquisition Date. Of this amount, approximately $ 220 million relates to net uncollectable balances such as loans that were fully written-off prior to Acquisition. Therefore, the net impact to the allowance related to acquired loans not previously written off was an increase of $ 249 million. | ||||
[3] | 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. |
Timeshare Financing Receivab_10
Timeshare Financing Receivables - Schedule of Change in Allowance For Financing Receivables Losses (Parenthetical) (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2021USD ($) | |
Receivables [Abstract] | |
Initial allowance for PCD financing receivables acquired during the period | $ 469 |
Uncollectable balance | 220 |
Allowance related to loans | $ 249 |
Inventory - Schedule of Invento
Inventory - Schedule of Inventory, Noncurrent (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
Inventory Disclosure [Abstract] | ||
Completed unsold VOIs | $ 1,349 | $ 515 |
Construction in process | 42 | 186 |
Land, infrastructure and other | 70 | 1 |
Inventory | $ 1,461 | $ 702 |
Inventory - Schedule of Costs o
Inventory - Schedule of Costs of Sales True-ups Relating to VOI Products and Impacts on the Carrying Value of Inventory (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | ||
Time Share | |||||
Inventory [Line Items] | |||||
Expenses | [1] | $ 1 | $ 4 | ||
Fee For Service Upgrades | |||||
Inventory [Line Items] | |||||
Expenses | $ 1 | $ 2 | $ 4 | $ 7 | |
[1] | For the nine months ended September 30, 2021 , the costs of sales true-up increased costs of VOI sales and decreased inventory. For the nine months ended September 30, 2020, the costs of sales true-up decreased costs of VOI sales and increased inventory. |
Property and Equipment - Schedu
Property and Equipment - Schedule of Property and Equipment (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | $ 975 | $ 632 |
Accumulated depreciation | (153) | (131) |
Property and equipment, net | 822 | 501 |
Land | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 193 | 109 |
Building and Leasehold Improvements | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 451 | 250 |
Furniture and Equipment | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 89 | 65 |
Construction in Progress | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | $ 242 | $ 208 |
Consolidated Variable Interes_3
Consolidated Variable Interest Entities - Additional Information (Details) - USD ($) | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | ||
VIEs acquired amount, outstanding | $ 0 | |
Financial or other support to any VIEs | $ 0 | $ 0 |
Consolidated Variable Interes_4
Consolidated Variable Interest Entities - Schedule of Consolidated Variable Interest Entities (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 | |
Variable Interest Entity [Line Items] | |||
Assets, variable interest entity | $ 8,097 | $ 3,134 | |
Liabilities, variable interest entity | 6,203 | 2,760 | |
Variable Interest Entities | |||
Variable Interest Entity [Line Items] | |||
Assets, variable interest entity | 1,113 | 800 | |
Liabilities, variable interest entity | 1,190 | 771 | |
Variable Interest Entities | Restricted cash | |||
Variable Interest Entity [Line Items] | |||
Assets, variable interest entity | 63 | 28 | |
Variable Interest Entities | Timeshare financing receivables, net | |||
Variable Interest Entity [Line Items] | |||
Assets, variable interest entity | 1,033 | 742 | |
Variable Interest Entities | Non-recourse debt | |||
Variable Interest Entity [Line Items] | |||
Liabilities, variable interest entity | [1] | $ 1,187 | $ 766 |
[1] | Net of deferred financing costs. |
Investments in Unconsolidated_2
Investments in Unconsolidated Affiliates - Additional Information (Details) $ in Millions | 9 Months Ended | ||
Sep. 30, 2021USD ($)Affiliate | Dec. 31, 2020USD ($) | ||
Schedule Of Investments [Line Items] | |||
Equity method investment, ownership percentage | 20.00% | ||
Number of unconsolidated affiliates | Affiliate | 2 | ||
Debt | [1] | $ 2,929 | $ 1,159 |
Investments in unconsolidated affiliates | $ 56 | 51 | |
BRE Ace LLC | |||
Schedule Of Investments [Line Items] | |||
Equity method investment, ownership percentage | 25.00% | ||
1776 Holdings LLC | |||
Schedule Of Investments [Line Items] | |||
Equity method investment, ownership percentage | 50.00% | ||
BRE Ace LLC and 1776 Holding, LLC | |||
Schedule Of Investments [Line Items] | |||
Debt | $ 421 | $ 454 | |
[1] | As of September 30, 2021 and December 31, 2020 , weighted-average interest rates were 4.108 percent and 3.357 percent, respectively. |
Debt & Non-recourse Debt - Sche
Debt & Non-recourse Debt - Schedule of Outstanding Borrowings (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Jun. 30, 2021 | Dec. 31, 2020 | |||
Debt Instrument [Line Items] | ||||||
Long-term debt, gross | [1] | $ 2,984 | $ 1,164 | |||
Less: unamortized deferred financing costs and discount | [1],[2],[3] | (55) | (5) | |||
Long-term debt | [1] | 2,929 | 1,159 | |||
Revolving Credit Facility | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt, gross | 170 | |||||
Less: unamortized deferred financing costs and discount | (3) | (4) | ||||
Revolver with a weighted average rate of 2.70%, due 2023 | Revolving Credit Facility | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt, gross | [1] | 300 | 660 | |||
Senior notes with a rate of 5.000%, due 2029 | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt, gross | $ 850 | |||||
Senior notes with a rate of 4.875% due 2031 | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt, gross | 500 | |||||
Line of Credit | ||||||
Debt Instrument [Line Items] | ||||||
Less: unamortized deferred financing costs and discount | (26) | (1) | ||||
Line of Credit | Term loan with a rate of 2.70%, due 2023 | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt, gross | [1] | 0 | 177 | |||
Line of Credit | Term loan with a weighted average rate of 3.50% due 2028 | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt, gross | [1] | 1,300 | 0 | |||
Senior Notes | ||||||
Debt Instrument [Line Items] | ||||||
Less: unamortized deferred financing costs and discount | (23) | $ (24) | (4) | |||
Senior Notes | Senior notes with a rate of 6.125%, due 2024 | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt, gross | [1] | 0 | 300 | |||
Senior Notes | Senior notes with a rate of 5.000%, due 2029 | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt, gross | [1] | 850 | 0 | |||
Senior Notes | Senior notes with a rate of 4.875% due 2031 | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt, gross | [1] | 500 | 0 | |||
Other Debt | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt, gross | [1] | 34 | 27 | |||
Non-recourse Debt | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt, gross | [4] | 1,297 | 775 | |||
Less: unamortized deferred financing costs and discount | [4],[5] | (7) | (9) | |||
Long-term debt | [4] | 1,290 | 766 | |||
Non-recourse Debt | Timeshare Facility with an average rate of 1.017%, due 2023 | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt, gross | [6] | 96 | [1] | 0 | [4] | |
Non-recourse Debt | HGV Securitized Debt with a weighted average rate of 2.711%, due 2028 | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt, gross | [4] | 78 | 106 | |||
Non-recourse Debt | HGV Securitized Debt with a weighted average rate of 3.602%, due 2032 | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt, gross | [4] | 156 | 202 | |||
Non-recourse Debt | HGV Securitized Debt with a weighted average rate of 2.431%, due 2033 | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt, gross | [4] | 167 | 216 | |||
Non-recourse Debt | HGV Securitized Debt with a weighted average rate of 3.658%, due 2039 | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt, gross | [4] | 204 | 251 | |||
Non-recourse Debt | Diamond Resorts Premium Yield Facility with an average rate of 4.766%, due 2031 | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt, gross | [4] | 10 | 0 | |||
Non-recourse Debt | Diamond Resorts Owner Trust 2017 with a weighted average rate of 3.504%, due 2029 | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt, gross | [4] | 46 | 0 | |||
Non-recourse Debt | Diamond Resorts Owner Trust 2018 with a weighted average rate of 4.061%, due 2031 | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt, gross | [4] | 107 | 0 | |||
Non-recourse Debt | Diamond Resorts Owner Trust 2019 with a weighted average rate of 3.277%, due 2032 | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt, gross | [4] | 172 | 0 | |||
Non-recourse Debt | Diamond Resorts Owner Trust 2021 with a weighted average rate of 2.160%, due 2032 | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt, gross | [4] | $ 261 | $ 0 | |||
[1] | As of September 30, 2021 and December 31, 2020 , weighted-average interest rates were 4.108 percent and 3.357 percent, respectively. | |||||
[2] | (2) Amount includes deferred financing costs and related to our term loan and senior notes of $ 26 million and $ 23 million, respectively, as of September 30, 2021 and $ 1 million and $ 4 million, respectively, as of December 31, 2020. This amount also includes original issuance discounts of $ 6 million as of September 30, 2021 . | |||||
[3] | (3) Amount does not include deferred financing costs of $ 3 million and $ 4 million as of September 30, 2021 and December 31, 2020, respectively, related to our revolving facility included in Other assets in our unaudited condensed consolidated balance sheets. | |||||
[4] | As of September 30, 2021 and December 31, 2020 , weighted-average interest rates were 2.925 percent and 3.173 percent, respectively. | |||||
[5] | Amount relates to Securitized Debt only and does not include deferred financing costs of $ 2 million and $ 3 million as of September 30, 2021 and December 31, 2020, respectively, relating to our Timeshare Facility included in Other Assets in our unaudited condensed consolidated balance sheets. | |||||
[6] | In connection with the amendment to the Timeshare Facility executed in August 2020, the revolving commitment period of the Timeshare Facility terminates in August 2022, however the repayment maturity date extends 12 months beyond the commitment termination date to August 2023. |
Debt & Non-recourse Debt - Sc_2
Debt & Non-recourse Debt - Schedule of Outstanding Borrowings (Parenthetical) (Details) - USD ($) $ in Millions | Jun. 30, 2021 | Sep. 30, 2021 | Dec. 31, 2020 | |
Debt Instrument [Line Items] | ||||
Debt instrument, average interest rate | 4.108% | 3.357% | ||
Less: unamortized deferred financing costs and discount | [1],[2],[3] | $ (55) | $ (5) | |
Debt issuance discounts | 6 | |||
Revolving Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Less: unamortized deferred financing costs and discount | $ (3) | (4) | ||
Revolving Credit Facility | Revolver with a weighted average rate of 2.70%, due 2023 | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, average interest rate | 2.70% | |||
Debt instrument, maturity year | 2023 | |||
Line of Credit | ||||
Debt Instrument [Line Items] | ||||
Less: unamortized deferred financing costs and discount | $ (26) | (1) | ||
Line of Credit | Term loan with a rate of 2.70%, due 2023 | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, average interest rate | 2.70% | |||
Debt instrument, maturity year | 2023 | |||
Line of Credit | Term loan with a weighted average rate of 3.50% due 2028 | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, average interest rate | 3.50% | |||
Debt instrument, maturity year | 2028 | |||
Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Less: unamortized deferred financing costs and discount | $ (24) | $ (23) | $ (4) | |
Senior Notes | Senior notes with a rate of 6.125%, due 2024 | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, maturity year | 2024 | |||
Debt instrument, stated interest rate | 6.125% | |||
Senior Notes | Senior notes with a rate of 5.000%, due 2029 | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, maturity year | 2029 | 2029 | ||
Debt instrument, stated interest rate | 5.00% | 5.00% | ||
Senior Notes | Senior notes with a rate of 4.875% due 2031 | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, maturity year | 2031 | 2031 | ||
Debt instrument, stated interest rate | 4.875% | 4.875% | ||
Non-recourse Debt | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, average interest rate | 2.925% | 3.173% | ||
Less: unamortized deferred financing costs and discount | [4],[5] | $ (7) | $ (9) | |
Non-recourse Debt | Timeshare Facility with an average rate of 1.017%, due 2023 | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, average interest rate | 1.017% | |||
Debt instrument, maturity year | 2023 | |||
Non-recourse Debt | HGV Securitized Debt with a weighted average rate of 2.711%, due 2028 | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, average interest rate | 2.711% | |||
Debt instrument, maturity year | 2028 | |||
Non-recourse Debt | HGV Securitized Debt with a weighted average rate of 3.602%, due 2032 | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, average interest rate | 3.602% | |||
Debt instrument, maturity year | 2032 | |||
Non-recourse Debt | HGV Securitized Debt with a weighted average rate of 2.431%, due 2033 | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, average interest rate | 2.431% | |||
Debt instrument, maturity year | 2033 | |||
Non-recourse Debt | HGV Securitized Debt with a weighted average rate of 3.658%, due 2039 | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, average interest rate | 3.658% | |||
Debt instrument, maturity year | 2039 | |||
Non-recourse Debt | Diamond Resorts Premium Yield Facility with an average rate of 4.766%, due 2031 | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, average interest rate | 4.766% | |||
Debt instrument, maturity year | 2031 | |||
Non-recourse Debt | Diamond Resorts Owner Trust 2017 with a weighted average rate of 3.504%, due 2029 | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, average interest rate | 3.504% | |||
Debt instrument, maturity year | 2029 | |||
Non-recourse Debt | Diamond Resorts Owner Trust 2018 with a weighted average rate of 4.061%, due 2031 | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, average interest rate | 4.061% | |||
Debt instrument, maturity year | 2031 | |||
Non-recourse Debt | Diamond Resorts Owner Trust 2019 with a weighted average rate of 3.277%, due 2032 | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, average interest rate | 3.277% | |||
Debt instrument, maturity year | 2032 | |||
Non-recourse Debt | Diamond Resorts Owner Trust 2021 with a weighted average rate of 2.160%, due 2032 | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, average interest rate | 2.16% | |||
Debt instrument, maturity year | 2032 | |||
Non-recourse Debt | Timeshare Facility with an average rate of X.XXX%, due 2022 | ||||
Debt Instrument [Line Items] | ||||
Less: unamortized deferred financing costs and discount | $ (3) | |||
Debt issuance discounts | $ 2 | |||
[1] | (2) Amount includes deferred financing costs and related to our term loan and senior notes of $ 26 million and $ 23 million, respectively, as of September 30, 2021 and $ 1 million and $ 4 million, respectively, as of December 31, 2020. This amount also includes original issuance discounts of $ 6 million as of September 30, 2021 . | |||
[2] | (3) Amount does not include deferred financing costs of $ 3 million and $ 4 million as of September 30, 2021 and December 31, 2020, respectively, related to our revolving facility included in Other assets in our unaudited condensed consolidated balance sheets. | |||
[3] | As of September 30, 2021 and December 31, 2020 , weighted-average interest rates were 4.108 percent and 3.357 percent, respectively. | |||
[4] | Amount relates to Securitized Debt only and does not include deferred financing costs of $ 2 million and $ 3 million as of September 30, 2021 and December 31, 2020, respectively, relating to our Timeshare Facility included in Other Assets in our unaudited condensed consolidated balance sheets. | |||
[5] | As of September 30, 2021 and December 31, 2020 , weighted-average interest rates were 2.925 percent and 3.173 percent, respectively. |
Debt & Non-recourse Debt - Addi
Debt & Non-recourse Debt - Additional Information (Details) - USD ($) $ in Millions | Jun. 30, 2021 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Debt Instrument [Line Items] | |||||
Debt issuance costs | [1],[2],[3] | $ 55 | $ 5 | ||
Amortization of deferred financing costs, acquisition premiums and other | 19 | $ 13 | |||
Debt agreement, principle amount | [3] | 2,984 | 1,164 | ||
Debt extinguishment cost | 20 | ||||
Debt issuance discounts | 6 | ||||
Debt instrument face amount | 2,030 | ||||
Accumulated other comprehensive loss, Qualifying as hedge | 1 | ||||
Restricted cash | 230 | 98 | |||
Reserves related to non-recourse debt | |||||
Debt Instrument [Line Items] | |||||
Restricted cash | [4] | 68 | 29 | ||
Restricted cash and cash equivalents depository accounts | 68 | 29 | |||
Timeshare Facility | |||||
Debt Instrument [Line Items] | |||||
Term loan outstanding | 450 | ||||
Senior notes with a rate of 5.000%, due 2029 | |||||
Debt Instrument [Line Items] | |||||
Debt agreement, principle amount | $ 850 | ||||
Senior notes with a rate of 4.875% due 2031 | |||||
Debt Instrument [Line Items] | |||||
Debt agreement, principle amount | 500 | ||||
Senior notes with a rate of 6.125%, due 2024 | |||||
Debt Instrument [Line Items] | |||||
Remaining borrowing capacity | 150 | ||||
Term loan with a rate of 2.70%, due 2023 | |||||
Debt Instrument [Line Items] | |||||
Remaining borrowing capacity | 125 | ||||
Interest Expense | |||||
Debt Instrument [Line Items] | |||||
Amortization of deferred financing costs, acquisition premiums and other | 2 | ||||
Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Debt issuance costs | $ 24 | 23 | 4 | ||
Senior Notes | Senior notes with a rate of 5.000%, due 2029 | |||||
Debt Instrument [Line Items] | |||||
Debt agreement, principle amount | [3] | $ 850 | 0 | ||
Debt instrument, stated interest rate | 5.00% | 5.00% | |||
Debt instrument, maturity year | 2029 | 2029 | |||
Senior Notes | Senior notes with a rate of 4.875% due 2031 | |||||
Debt Instrument [Line Items] | |||||
Debt agreement, principle amount | [3] | $ 500 | 0 | ||
Debt instrument, stated interest rate | 4.875% | 4.875% | |||
Debt instrument, maturity year | 2031 | 2031 | |||
Senior Notes | Senior notes with a rate of 6.125%, due 2024 | |||||
Debt Instrument [Line Items] | |||||
Debt agreement, principle amount | [3] | $ 0 | 300 | ||
Debt instrument, stated interest rate | 6.125% | ||||
Debt instrument, maturity year | 2024 | ||||
Line of Credit | |||||
Debt Instrument [Line Items] | |||||
Debt issuance costs | $ 26 | 1 | |||
Line of Credit | Term loan with a rate of 2.70%, due 2023 | |||||
Debt Instrument [Line Items] | |||||
Debt agreement, principle amount | [3] | $ 0 | 177 | ||
Debt instrument, maturity year | 2023 | ||||
Debt instrument repaid amount | $ 177 | ||||
Line of Credit | Term Loans Due 2028 | |||||
Debt Instrument [Line Items] | |||||
Debt agreement, principle amount | [3] | $ 1,300 | 0 | ||
Debt instrument, maturity year | 2028 | ||||
Revolving Credit Facility Amended | |||||
Debt Instrument [Line Items] | |||||
Debt issuance costs | $ 1 | ||||
Revolving Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Debt issuance costs | 3 | 4 | |||
Debt agreement, principle amount | 170 | ||||
Debt instrument repaid amount | $ 260 | ||||
Interest rate on revolving credit facility description | one month LIBOR | ||||
Revolving Credit Facility | Revolver with a weighted average rate of 2.70%, due 2023 | |||||
Debt Instrument [Line Items] | |||||
Debt agreement, principle amount | [3] | $ 300 | $ 660 | ||
Debt instrument, maturity year | 2023 | ||||
Debt instrument repaid amount | $ 360 | ||||
Revolving Credit Facility | LIBOR | |||||
Debt Instrument [Line Items] | |||||
Interest rate on revolving credit facility | 2.45% | ||||
Derivative fixed interest rate | 0.75% | ||||
Revolving Credit Facility | LIBOR | Minimum | |||||
Debt Instrument [Line Items] | |||||
Interest rate on revolving credit facility | 0.25% | ||||
Revolving Credit Facility | Senior Secured Credit Facilities | |||||
Debt Instrument [Line Items] | |||||
Debt instrument repaid amount | $ 537 | ||||
Letters of credit outstanding, amount | 1 | ||||
Term Loan | |||||
Debt Instrument [Line Items] | |||||
Debt agreement, principle amount | $ 150 | ||||
Term Loan | LIBOR | |||||
Debt Instrument [Line Items] | |||||
Derivative fixed interest rate | 1.27% | ||||
Secured Term B Loan Facility | |||||
Debt Instrument [Line Items] | |||||
Debt issuance costs | $ 27 | ||||
Debt instrument, term | 7 years | ||||
Proceed from credit facility | $ 1,300 | ||||
Debt issuance discounts | 6 | ||||
Cash Collateral Secured Credit Facilities | |||||
Debt Instrument [Line Items] | |||||
Letters of credit outstanding, amount | $ 2 | ||||
[1] | (2) Amount includes deferred financing costs and related to our term loan and senior notes of $ 26 million and $ 23 million, respectively, as of September 30, 2021 and $ 1 million and $ 4 million, respectively, as of December 31, 2020. This amount also includes original issuance discounts of $ 6 million as of September 30, 2021 . | ||||
[2] | (3) Amount does not include deferred financing costs of $ 3 million and $ 4 million as of September 30, 2021 and December 31, 2020, respectively, related to our revolving facility included in Other assets in our unaudited condensed consolidated balance sheets. | ||||
[3] | As of September 30, 2021 and December 31, 2020 , weighted-average interest rates were 4.108 percent and 3.357 percent, respectively. | ||||
[4] | (1) See Note 12: Debt & Non-recourse Debt for further discussion. |
Debt & Non-recourse Debt - Sc_3
Debt & Non-recourse Debt - Schedule of Contractual Maturities of Debt (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 | |
Debt Instrument [Line Items] | |||
2021 (remaining) | $ 11 | ||
2022 | 15 | ||
2023 | 314 | ||
2024 | 13 | ||
2025 | 13 | ||
Thereafter | 2,618 | ||
Long-term debt | [1] | 2,984 | $ 1,164 |
Non-recourse Debt | |||
Debt Instrument [Line Items] | |||
2021 (remaining) | 65 | ||
2022 | 272 | ||
2023 | 284 | ||
2024 | 116 | ||
2025 | 146 | ||
Thereafter | 414 | ||
Long-term debt | [2] | 1,297 | $ 775 |
Debt and Non-recourse Debt | |||
Debt Instrument [Line Items] | |||
2021 (remaining) | 76 | ||
2022 | 287 | ||
2023 | 598 | ||
2024 | 129 | ||
2025 | 159 | ||
Thereafter | 3,032 | ||
Long-term debt | $ 4,281 | ||
[1] | As of September 30, 2021 and December 31, 2020 , weighted-average interest rates were 4.108 percent and 3.357 percent, respectively. | ||
[2] | As of September 30, 2021 and December 31, 2020 , weighted-average interest rates were 2.925 percent and 3.173 percent, respectively. |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Carrying and Estimated Fair Value Amounts (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 | |
Carrying Amount | |||
Assets: | |||
Timeshare financing receivables, net | [1] | $ 1,767 | $ 974 |
Liabilities: | |||
Debt, net | [2] | 2,929 | 1,159 |
Non-recourse debt, net | [2] | 1,290 | 766 |
Level 1 | |||
Assets: | |||
Timeshare financing receivables, net | [1] | 0 | |
Liabilities: | |||
Debt, net | [2] | 1,365 | 315 |
Non-recourse debt, net | [2] | 1,227 | 0 |
Level 3 | |||
Assets: | |||
Timeshare financing receivables, net | [1] | 2,182 | 1,248 |
Liabilities: | |||
Debt, net | [2] | 1,648 | 871 |
Non-recourse debt, net | [2] | $ 102 | $ 732 |
[1] | Carrying amount net of allowance for financing receivables losses. | ||
[2] | Carrying amount net of unamortized deferred financing costs and discount. |
Intangible Assets - Schedule of
Intangible Assets - Schedule of Intangible Assets And Related Amortization Expense (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Sep. 30, 2021 | Dec. 31, 2020 | |
Finite-Lived Intangible Assets [Line Items] | |||
Amortization of Intangible Assets | $ 38 | $ 48 | |
Total gross intangible assets | 2,103 | 2,103 | $ 183 |
Less: accumulated amortization | (150) | (150) | (102) |
Finite-Lived Intangible Assets, Net, Total | $ 1,953 | 1,953 | 81 |
Trade name | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization of Intangible Assets | $ 20 | ||
Weighted-average useful life (years) | 1 year | ||
Management contracts | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization of Intangible Assets | $ 1,352 | 89 | |
Weighted-average useful life (years) | 17 years 6 months | ||
Club member relationships | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization of Intangible Assets | $ 146 | ||
Weighted-average useful life (years) | 10 years | ||
Vacation Ownership Customer Relationships | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization of Intangible Assets | $ 463 | ||
Weighted-average useful life (years) | 5 years 6 months | ||
Computer software | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization of Intangible Assets | $ 122 | $ 94 | |
Weighted-average useful life (years) | 2 years 3 months 18 days |
Intangible Assets (Additional I
Intangible Assets (Additional Information) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended |
Sep. 30, 2021 | Sep. 30, 2021 | |
Restructuring Cost and Reserve [Line Items] | ||
Amortization expense on intangible assets | $ 38 | $ 48 |
Diamond Acquisition | ||
Restructuring Cost and Reserve [Line Items] | ||
Acquired definite-lived intangible assets | $ 1,906 |
Intangible Assets - Schedule _2
Intangible Assets - Schedule of Future Amortization Expense For Amortizing Intangible Assets (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | ||
2021 (remaining) | $ 57 | |
2022 | 216 | |
2023 | 188 | |
2024 | 181 | |
2025 | 174 | |
Thereafter | 1,137 | |
Finite-Lived Intangible Assets, Net, Total | $ 1,953 | $ 81 |
Leases - Additional Information
Leases - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Leases [Abstract] | ||||
Leases starting expiration date | 2021 | |||
Leases ending expiration date | 2030 | |||
Rent expense | $ 6 | $ 5 | $ 15 | $ 15 |
Short-term and variable lease costs | $ 1 | $ 1 | $ 1 | $ 2 |
Leases - Schedule of Supplement
Leases - Schedule of Supplemental Cash Flow Information Related to Operating Leases (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Cash paid for amounts included in the measurement of lease liabilities: | ||
Operating cash outflows from operating leases | $ 15 | $ 14 |
Right-of-use assets obtained in exchange for new lease liabilities: | ||
Operating leases | $ 35 | $ 4 |
Leases - Schedule of Suppleme_2
Leases - Schedule of Supplemental Balance Sheet Information Related to Operating Leases (Details) | Sep. 30, 2021 | Dec. 31, 2020 |
Leases [Abstract] | ||
Weighted-average remaining lease term of operating leases (in years) | 4 years 7 months 6 days | 5 years 4 months 24 days |
Weighted-average discount rate of operating leases | 4.35% | 4.95% |
Leases - Future Minimum Lease P
Leases - Future Minimum Lease Payments Under Non-Cancelable Operating Leases (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
Leases [Abstract] | ||
2021 | $ 7 | |
2022 | 25 | |
2023 | 24 | |
2024 | 17 | |
2025 | 15 | |
Thereafter | 15 | |
Total future minimum lease payments | 103 | |
Less: imputed interest | (10) | |
Present value of lease liabilities | $ 93 | $ 67 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Income Tax Disclosure [Abstract] | ||
Effective income tax rate (as a percent) | 31.00% | 20.00% |
Share-Based Compensation - Addi
Share-Based Compensation - Additional Information (Details) - USD ($) $ / shares in Units, $ in Millions | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||
Aug. 31, 2021 | Mar. 31, 2021 | Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Allocated share-based compensation expense | $ 14 | $ 6 | $ 32 | $ 10 | ||
Unrecognized compensation costs for unvested awards | $ 34 | $ 34 | ||||
Unrecognized compensation costs, weighted average period for recognition | 1 year 8 months 12 days | |||||
Shares of common stock available for future issuance | 3,757,673 | 3,757,673 | ||||
2017 Employees Stock Purchase Plan | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Maximum shares of common stock issued under ESPP | 2,500,000 | |||||
Minimum | 2017 Employees Stock Purchase Plan | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Percentage of fair market value per share of common stock | 95.00% | |||||
Maximum | 2017 Employees Stock Purchase Plan | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Allocated share-based compensation expense | $ 1 | $ 1 | $ 1 | $ 1 | ||
Performance Shares | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Shares issued (in shares) | 351,118 | 124,711 | ||||
Grant date fair value (in dollars per share) | $ 40.27 | $ 38.22 | ||||
Award vesting period | 2 years | |||||
Performance Shares | Tranche One | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Award vesting percentage | 67.00% | 50.00% | ||||
Performance Shares | VOI sale | Tranche Two | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Award vesting percentage | 33.00% | 50.00% | ||||
Service Restricted Stock Units (RSUs) | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Shares issued (in shares) | 588,930 | |||||
Grant date fair value (in dollars per share) | $ 38.50 | |||||
Service Restricted Stock Units (RSUs) | Minimum | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Award vesting period | 3 years | |||||
Stock Options | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Shares issued (in shares) | 542,793 | |||||
Grant date fair value (in dollars per share) | $ 13.30 | |||||
Exercise price (in dollars per share) | $ 38.22 | |||||
Stock options exercisable (in shares) | 1,173,204 | 1,173,204 | ||||
Stock Options | Minimum | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Award vesting period | 3 years |
Share-Based Compensation - Opti
Share-Based Compensation - Options Assumptions (Details) - Stock Options | 9 Months Ended |
Sep. 30, 2021 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Expected volatility | 34.20% |
Dividend yield | 0.00% |
Risk-free rate | 1.10% |
Expected term (in years) | 6 years |
Earnings (Loss) Per Share - Sch
Earnings (Loss) Per Share - Schedule of Earnings (Loss) Per Share, Basic and Diluted (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||||||||||
Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |||||
Numerator: | ||||||||||||
Net income (loss) | $ 98,704,709 | [1] | $ 9,000,000 | $ (7,000,000) | $ (6,846,654) | [1] | $ (48,000,000) | $ 8,000,000 | $ 100,634,069 | [1] | $ (46,771,239) | [1] |
Denominator: | ||||||||||||
Weighted average shares outstanding, Basic | 107,688,389 | 85,082,124 | 92,944,812 | 85,198,910 | ||||||||
Basic EPS | $ 0.92 | $ (0.08) | $ 1.08 | $ (0.55) | ||||||||
Denominator: | ||||||||||||
Weighted average shares outstanding, diluted | 109,138,778 | 85,082,124 | 94,162,838 | 85,198,910 | ||||||||
Diluted EPS | $ 0.90 | $ (0.08) | $ 1.07 | $ (0.55) | ||||||||
Basic EPS | 107,688,389 | 85,082,124 | 92,944,812 | 85,198,910 | ||||||||
Diluted EPS | 109,138,778 | 85,082,124 | 94,162,838 | 85,198,910 | ||||||||
[1] | Net income (loss) for the three months ended September 30, 2021 and 2020 was $ 98,704,709 and $( 6,846,654 ), respectively, and $ 100,634,069 and $( 46,771,239 ) for the nine months ended September 30, 2021 and 2020 , respectively. |
Earnings (Loss) Per Share - S_2
Earnings (Loss) Per Share - Schedule of Earnings (Loss) Per Share, Basic and Diluted (Parenthetical) (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||||||||||
Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |||||
Earnings Per Share [Abstract] | ||||||||||||
Net income (loss) | $ 98,704,709 | [1] | $ 9,000,000 | $ (7,000,000) | $ (6,846,654) | [1] | $ (48,000,000) | $ 8,000,000 | $ 100,634,069 | [1] | $ (46,771,239) | [1] |
[1] | Net income (loss) for the three months ended September 30, 2021 and 2020 was $ 98,704,709 and $( 6,846,654 ), respectively, and $ 100,634,069 and $( 46,771,239 ) for the nine months ended September 30, 2021 and 2020 , respectively. |
Earnings (Loss) Per Share - Add
Earnings (Loss) Per Share - Additional Information (Details) - shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Weighted average shares outstanding, Basic | 107,688,389 | 85,082,124 | 92,944,812 | 85,198,910 |
Weighted average shares outstanding, diluted | 109,138,778 | 85,082,124 | 94,162,838 | 85,198,910 |
Potentially dilutive shares excluded from calculation of diluted weighted average shares outstanding and diluted earnings per shares | 308,441 | 332,883 | ||
Stock Compensation Plan | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Potentially dilutive shares excluded from calculation of diluted weighted average shares outstanding and diluted earnings per shares | 512,371 | 2,816,707 | 631,738 | 2,506,497 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
Related Party Transaction [Line Items] | ||
Equity method investment, ownership percentage | 20.00% | |
Due from related parties | $ 21 | $ 7 |
BRE Ace LLC | ||
Related Party Transaction [Line Items] | ||
Equity method investment, ownership percentage | 25.00% | |
1776 Holding, LLC | ||
Related Party Transaction [Line Items] | ||
Equity method investment, ownership percentage | 50.00% |
Related Party Transactions - Su
Related Party Transactions - Summary of Amounts Included in Condensed Consolidated Statements of Operations Related to Fee for Service Arrangement (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Related Party Transaction [Line Items] | ||||
Equity in earnings (losses) from unconsolidated affiliates | $ 1 | $ (1) | $ 7 | $ 3 |
BRE Ace LLC | ||||
Related Party Transaction [Line Items] | ||||
Equity in earnings (losses) from unconsolidated affiliates | 1 | (1) | 7 | 3 |
Commissions and other fees | $ 33 | $ 16 | $ 70 | $ 43 |
Business Segments - Additional
Business Segments - Additional Information (Details) | 9 Months Ended |
Sep. 30, 2021Segment | |
Segment Reporting [Abstract] | |
Number of operating segments | 2 |
Business Segments - Schedule of
Business Segments - Schedule of Segment Operating Performance Reconciled to Consolidated Amounts (Details) - USD ($) $ in Millions | 2 Months Ended | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | ||
Segment Reporting Revenue Reconciling Item [Line Items] | ||||||
Total revenues | $ 245 | $ 928 | $ 208 | $ 1,497 | $ 682 | |
Real Estate and Financing Segment | ||||||
Segment Reporting Revenue Reconciling Item [Line Items] | ||||||
Total revenues | 659 | 116 | 976 | 378 | ||
Resort Operations and Club Management Segment | ||||||
Segment Reporting Revenue Reconciling Item [Line Items] | ||||||
Total revenues | 211 | 59 | 390 | 199 | ||
Operating segments | ||||||
Segment Reporting Revenue Reconciling Item [Line Items] | ||||||
Total revenues | 875 | 177 | 1,379 | 587 | ||
Operating segments | Real Estate and Financing Segment | ||||||
Segment Reporting Revenue Reconciling Item [Line Items] | ||||||
Total revenues | 659 | 116 | 976 | 378 | ||
Operating segments | Resort Operations and Club Management Segment | ||||||
Segment Reporting Revenue Reconciling Item [Line Items] | ||||||
Total revenues | 216 | 61 | 403 | 209 | ||
Segment Reconciling Items | ||||||
Segment Reporting Revenue Reconciling Item [Line Items] | ||||||
Total revenues | 58 | 33 | 131 | 105 | ||
Intersegment eliminations | ||||||
Segment Reporting Revenue Reconciling Item [Line Items] | ||||||
Total revenues | [1],[2] | $ (5) | $ (2) | $ (13) | $ (10) | |
[1] | (1) Includes charges to the real estate sales and financing segment from the resort operations and club management segment for fulfillment of discounted marking package stays at resorts. These charges totaled $ 5 million and $ 2 million for the three months ended September 30, 2021 and 2020. For the nine months ended September 30, 2021 and 2020 , these charges totaled $ 13 million and $ 10 million, respectively. | |||||
[2] | (2) Includes charges to the real estate sales and financing segment from the resort operations and club management segment for the rental of model units to show prospective buyers. These charges totaled less than $ 1 million for the three and nine months ended September 30, 2021 and 2020. |
Business Segments - Schedule _2
Business Segments - Schedule of Segment Operating Performance Reconciled to Consolidated Amounts (Parenthetical) (Details) - USD ($) $ in Millions | 2 Months Ended | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||||
Total revenues | $ 245 | $ 928 | $ 208 | $ 1,497 | $ 682 | |
Intersegment eliminations | ||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||||
Total revenues | [1],[2] | (5) | (2) | (13) | (10) | |
Intersegment eliminations | Maximum | ||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||||
Rental expense for model units | 1 | 1 | 1 | 1 | ||
Intersegment eliminations | Billing and Collection Services | ||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||||
Total revenues | $ 5 | $ 2 | $ 13 | $ 10 | ||
[1] | (1) Includes charges to the real estate sales and financing segment from the resort operations and club management segment for fulfillment of discounted marking package stays at resorts. These charges totaled $ 5 million and $ 2 million for the three months ended September 30, 2021 and 2020. For the nine months ended September 30, 2021 and 2020 , these charges totaled $ 13 million and $ 10 million, respectively. | |||||
[2] | (2) Includes charges to the real estate sales and financing segment from the resort operations and club management segment for the rental of model units to show prospective buyers. These charges totaled less than $ 1 million for the three and nine months ended September 30, 2021 and 2020. |
Business Segments - Schedule _3
Business Segments - Schedule of Adjusted EBITDA Reconciled to Net (Loss) Income (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||||||||||
Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | ||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||||||||||
General and administrative | $ (41,000,000) | $ (22,000,000) | $ (92,000,000) | $ (65,000,000) | |||||||||
Depreciation and amortization | (48,000,000) | (11,000,000) | (71,000,000) | (34,000,000) | |||||||||
Other (loss) gain, net | (20,000,000) | 1,000,000 | (22,000,000) | 0 | |||||||||
Interest expense | (42,000,000) | (10,000,000) | (74,000,000) | (32,000,000) | |||||||||
Income tax (expense) benefit | (49,000,000) | 5,000,000 | (46,000,000) | 12,000,000 | |||||||||
Equity in earnings (losses) from unconsolidated affiliates | 1,000,000 | (1,000,000) | 7,000,000 | 3,000,000 | |||||||||
Impairment expense | (1,000,000) | 0 | (2,000,000) | 0 | |||||||||
Net income (Loss) | 98,704,709 | [1] | $ 9,000,000 | $ (7,000,000) | (6,846,654) | [1] | $ (48,000,000) | $ 8,000,000 | 100,634,069 | [1] | (46,771,239) | [1] | |
Operating segments | Real Estate and Financing Segment | |||||||||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||||||||||
Segment Adjusted EBITDA | [2] | 280,000,000 | 15,000,000 | 352,000,000 | 16,000,000 | ||||||||
Operating segments | Resort Operations and Club Management Segment | |||||||||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||||||||||
Segment Adjusted EBITDA | [2] | 109,000,000 | 30,000,000 | 212,000,000 | 100,000,000 | ||||||||
Segment Reconciling Items | |||||||||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||||||||||
Segment Adjusted EBITDA | 389,000,000 | 45,000,000 | 564,000,000 | 116,000,000 | |||||||||
Acquisition and integration-related expense | 54,000,000 | 0 | 83,000,000 | 0 | |||||||||
General and administrative | (41,000,000) | (22,000,000) | (92,000,000) | (65,000,000) | |||||||||
Depreciation and amortization | (48,000,000) | (11,000,000) | (71,000,000) | (34,000,000) | |||||||||
License fee expense | (24,000,000) | (11,000,000) | (57,000,000) | (39,000,000) | |||||||||
Other (loss) gain, net | (20,000,000) | 1,000,000 | (22,000,000) | 0 | |||||||||
Interest expense | (42,000,000) | (10,000,000) | (74,000,000) | (32,000,000) | |||||||||
Income tax (expense) benefit | (49,000,000) | 5,000,000 | (46,000,000) | 12,000,000 | |||||||||
Equity in earnings (losses) from unconsolidated affiliates | 1,000,000 | (1,000,000) | 7,000,000 | 3,000,000 | |||||||||
Impairment expense | 1,000,000 | 0 | 2,000,000 | 0 | |||||||||
Other adjustment items | [3] | $ 12,000,000 | $ 3,000,000 | $ 23,000,000 | $ 8,000,000 | ||||||||
[1] | Net income (loss) for the three months ended September 30, 2021 and 2020 was $ 98,704,709 and $( 6,846,654 ), respectively, and $ 100,634,069 and $( 46,771,239 ) for the nine months ended September 30, 2021 and 2020 , respectively. | ||||||||||||
[2] | (1) Includes intersegment transactions. Refer to our table presenting revenues by reportable segment above for additional discussion. | ||||||||||||
[3] | (2) For the three and nine months ended September 30, 2021 and 2020, this amount includes costs associated with restructuring, one-time charges and other non-cash items included within our reportable segments. For the three months ended September 30, 2021, this also includes amortization of premiums resulting from purchase accounting. |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Long-term Purchase Commitment [Line Items] | ||
Accured liabilities | $ 25 | |
Inventories | ||
Long-term Purchase Commitment [Line Items] | ||
Purchase commitment | $ 331 | |
Purchase commitment, period (in years) | 9 years | |
Vacation ownership intervals commitment | $ 132 | $ 16 |
Other Commitments | ||
Long-term Purchase Commitment [Line Items] | ||
Purchase commitment | $ 8 |
Commitments and Contingencies_2
Commitments and Contingencies - Schedule of Remaining Purchase Obligations (Details) $ in Millions | Sep. 30, 2021USD ($) | |
Long-term Purchase Commitment [Line Items] | ||
2021 (remaining) | $ 22 | |
2022 | 65 | |
2023 | 197 | |
2024 | 40 | |
2025 | 3 | |
Thereafter | 12 | |
Total | 339 | |
Inventory Purchase Obligations | ||
Long-term Purchase Commitment [Line Items] | ||
2021 (remaining) | 20 | |
2022 | 60 | |
2023 | 196 | |
2024 | 40 | |
2025 | 3 | |
Thereafter | 12 | |
Total | 331 | |
Other Commitments | ||
Long-term Purchase Commitment [Line Items] | ||
2021 (remaining) | 2 | [1] |
2022 | 5 | [1] |
2023 | 1 | [1] |
2024 | 0 | [1] |
2025 | 0 | [1] |
Thereafter | 0 | [1] |
Total | $ 8 | [1] |
[1] | Primarily relates to commitments related to information technology and brand licensing in the normal course of business. |
Subsequent Events (Additional I
Subsequent Events (Additional Information) (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 | |
Subsequent Event [Line Items] | |||
Purchase of timeshare units | $ 1,349 | $ 515 | |
Debt agreement, principle amount | [1] | $ 2,984 | $ 1,164 |
[1] | As of September 30, 2021 and December 31, 2020 , weighted-average interest rates were 4.108 percent and 3.357 percent, respectively. |