v3.26.1
Vacation Ownership Contract Receivables
 3 Months Ended
Mar. 31, 2026
Contracts Receivable [Abstract]  
Vacation Ownership Contract Receivables Vacation Ownership Contract Receivables
The Company generates vacation ownership contract receivables (“VOCRs”) by extending financing to the purchasers of its VOIs. Vacation ownership contract receivables, net consisted of the following (in millions):
March 31,
2026		December 31,
2025
Vacation ownership contract receivables:
Securitized (a)
$2,218 $2,281 
Non-securitized (b)
1,037 1,020 
Vacation ownership contract receivables, gross3,255 3,301 
Less: allowance for loan losses646 663 
Vacation ownership contract receivables, net$2,609 $2,638 
(a)Excludes $19 million of accrued interest on VOCRs as of both March 31, 2026 and December 31, 2025, which are included in Trade receivables, net on the Condensed Consolidated Balance Sheets.
(b)Excludes $9 million and $8 million of accrued interest on VOCRs as of March 31, 2026 and December 31, 2025, which are included in Trade receivables, net on the Condensed Consolidated Balance Sheets.
During the three months ended March 31, 2026 and 2025, the Company’s securitized VOCRs generated interest income of $80 million and $84 million. Such interest income is included within Consumer financing revenue on the Condensed Consolidated Statements of Income.
During the three months ended March 31, 2026 and 2025, the Company had net VOCR originations of $356 million and $344 million, and received principal collections of $288 million and $292 million. The weighted average interest rate on outstanding VOCRs was 14.6% as of both March 31, 2026 and December 31, 2025.
The Company records the difference between VOCRs and the variable consideration included in the transaction price for the sale of the related VOIs as a provision for loan losses on VOCRs. The activity in the allowance for loan losses on VOCRs was as follows (in millions):
Three Months Ended
March 31,
20262025
Allowance for loan losses, beginning balance$663 $614 
Provision for loan losses, net (a)
100 91 
Contract receivables write-offs, net(117)(110)
Allowance for loan losses, ending balance$646 $595 
(a)Recorded as a reduction to Net revenue.
Credit Quality for Financed Receivables and the Allowance for Credit Losses
The basis of the differentiation within the identified class of financed VOI contract receivables is the consumer’s Fair Isaac Corporation (“FICO”) score. A FICO score is a branded version of a consumer credit score widely used within the U.S. by the largest banks and lending institutions. FICO scores range from 300 to 850 and are calculated based on information obtained from one or more of the three major U.S. credit reporting agencies that compile and report on a consumer’s credit history. The Company updates its records for all active VOI contract receivables with a balance due on a rolling monthly basis to ensure that all VOI contract receivables are scored at least every six months. The Company groups all VOI contract receivables into five different categories: FICO scores ranging from 700 to 850, from 600 to 699, below 600, no score (primarily comprised of consumers for whom a score is not readily available, including consumers declining access to FICO scores and non-U.S. residents), and Asia Pacific (comprised of receivables in the Company’s Travel + Leisure Vacation Clubs Asia Pacific business for which scores are not available).
The following table details an aging analysis of financing receivables using the most recently updated FICO scores, based on the policy described above (in millions):
As of March 31, 2026
700+600-699<600No ScoreAsia PacificTotal
Current$1,951 $679 $133 $81 $223 $3,067 
31 - 60 days35 28 13 2 6 84 
61 - 90 days23 20 10 2 3 58 
91 - 120 days16 16 10 2 2 46 
Total$2,025 $743 $166 $87 $234 $3,255 
As of December 31, 2025
700+600-699<600No ScoreAsia PacificTotal
Current$2,014 $680 $133 $77 $213 $3,117 
31 - 60 days31 29 13 2 4 79 
61 - 90 days22 18 11 2 3 56 
91 - 120 days15 17 12 2 3 49 
Total$2,082 $744 $169 $83 $223 $3,301 
The Company ceases to accrue interest on VOI contract receivables once the contract has remained delinquent for greater than 90 days and reverses all of the associated accrued interest recognized to date against interest income included within Consumer financing revenue on the Condensed Consolidated Statements of Income. At greater than 120 days, the VOI contract receivable is written off to the allowance for loan losses. In accordance with its policy, the Company assesses the allowance for loan losses using a static pool methodology and thus does not assess individual loans for impairment.
The following table details the year of origination of financing receivables using the most recently updated FICO scores, based on the policy described above (in millions):
As of March 31, 2026
700+600-699<600No ScoreAsia PacificTotal
2026$273 $55 $— $15 $47 $390 
2025789 263 36 26 103 1,217 
2024381 148 41 16 40 626 
2023226 104 33 10 17 390 
2022148 74 22 5 7 256 
Prior208 99 34 15 20 376 
Total$2,025 $743 $166 $87 $234 $3,255 
As of December 31, 2025
700+600-699<600No ScoreAsia PacificTotal
2025$1,001 $266 $24 $30 $131 $1,452 
2024431 169 45 18 45 708 
2023251 116 36 12 18 433 
2022163 81 26 6 7 283 
202173 36 13 2 5 129 
Prior163 76 25 15 17 296 
Total$2,082 $744 $169 $83 $223 $3,301 
The table below represents the gross write-offs of financing receivables by year of origination (in millions):
Three Months Ended
March 31, 2026
2026$— 
202555 
202432 
202316 
20229 
Prior8 
Total$120