v3.26.1
VARIABLE INTEREST ENTITIES
 6 Months Ended
Jun. 30, 2026
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
VARIABLE INTEREST ENTITIES
15. VARIABLE INTEREST ENTITIES
Variable Interest Entities Related to Our Vacation Ownership Notes Receivable Securitizations
The following table shows consolidated assets, which are collateral for the obligations of the VIEs related to our vacation ownership notes receivable securitizations, and consolidated liabilities included on our Balance Sheet at June 30, 2026:
($ in millions)Vacation Ownership
Notes Receivable
Securitizations		Warehouse
Credit Facility		Total
Consolidated Assets
Vacation ownership notes receivable, net of reserves$1,922 $160 $2,082 
Interest receivable16 1 17 
Restricted cash80 7 87 
Total$2,018 $168 $2,186 
Consolidated Liabilities
Interest payable$3 $1 $4 
Securitized debt2,216 165 2,381 
Total$2,219 $166 $2,385 
The following table shows the interest income and expense recognized as a result of our involvement with these VIEs during the second quarter of 2026:
($ in millions)Vacation Ownership Notes Receivable SecuritizationsWarehouse
Credit Facility		Total
Interest income$76 $3 $79 
Interest expense$27 $2 $29 
Debt issuance cost amortization$3 $— $3 
The following table shows the interest income and expense recognized as a result of our involvement with these VIEs during the first half of 2026:
($ in millions)Vacation Ownership Notes Receivable SecuritizationsWarehouse
Credit Facility		Total
Interest income$143 $14 $157 
Interest expense$52 $5 $57 
Debt issuance cost amortization$6 $— $6 
The following table shows cash flows between us and the vacation ownership notes receivable securitization VIEs:
Six Months Ended
($ in millions)June 30, 2026June 30, 2025
Cash Inflows
Net proceeds from vacation ownership notes receivable securitizations$455 $445 
Principal receipts318 293 
Interest receipts142 135 
Reserve release1 105 
Total916 978 
Cash Outflows
Principal payments(302)(284)
Voluntary repurchases of defaulted vacation ownership notes receivable(87)(83)
Voluntary clean-up call(28)(64)
Interest payments(52)(47)
Funding of restricted cash— (103)
Total(469)(581)
Net Cash Flows$447 $397 
The following table shows cash flows between us and the Warehouse Credit Facility VIE:
Six Months Ended
($ in millions)June 30, 2026June 30, 2025
Cash Inflows
Proceeds from vacation ownership notes receivable securitizations$522 $364 
Principal receipts25 25 
Interest receipts11 14 
Reserve release2 11 
Total560 414 
Cash Outflows
Principal payments(13)(21)
Voluntary repurchases of defaulted vacation ownership notes receivable— (1)
Repayment of Warehouse Credit Facility(344)(308)
Interest payments(4)(6)
Funding of restricted cash(3)(12)
Total(364)(348)
Net Cash Flows$196 $66 
Under the terms of our vacation ownership notes receivable securitizations and Warehouse Credit Facility, we have the right to substitute loans for, or repurchase, defaulted loans at our option, subject to certain limitations. Our maximum exposure to potential loss relating to the special purpose entities that purchase, sell, and own these vacation ownership notes receivable is the overcollateralization amount (the difference between the loan collateral balance and the balance of the outstanding vacation ownership notes receivable), plus cash reserves and any residual interest in future cash flows from collateral.
Other Variable Interest Entities
We have a commitment to purchase completed vacation ownership units located in Waikiki, Hawaii for $41 million in 2026. The property is held by a VIE for which we are not the primary beneficiary. We do not control the decisions that most significantly impact the economic performance of the entity as we cannot prevent the variable interest entity from selling the property at a higher price. Accordingly, we have not consolidated the VIE. As of June 30, 2026, our Balance Sheet reflected $1 million in Accounts and contracts receivable, net, including a note receivable of less than $1 million, and $4 million in Property and equipment, net. We believe that our maximum exposure to loss as a result of our involvement with this VIE is approximately $5 million as of June 30, 2026.