v3.26.3
Vacation Ownership Contract Receivables
 9 Months Ended
Sep. 30, 2026
Contracts Receivable [Abstract]  
Vacation Ownership Contract Receivables Vacation Ownership Contract Receivables
The Company generates vacation ownership contract receivables by extending financing to the purchasers of its VOIs. Vacation ownership contract receivables, net consisted of the following (in millions):
September 30, 2026December 31, 2025
Vacation ownership contract receivables:
Securitized (a)
$2,171 $2,281 
Non-securitized (b)
1,263 1,020 
Vacation ownership contract receivables, gross3,434 3,301 
Unamortized non-credit acquisition (premium)(1)— 
Less: allowance for loan losses748 663 
Vacation ownership contract receivables, net$2,687 $2,638 
(a)Excludes $18 million and $19 million of accrued interest on VOCRs as of September 30, 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 September 30, 2026 and December 31, 2025, which are included in Trade receivables, net on the Condensed Consolidated Balance Sheets.
During the three and nine months ended September 30, 2026, the Company’s securitized VOCRs generated interest income of $81 million and $241 million. During the three and nine months ended September 30, 2025, the Company’s securitized VOCRs generated interest income of $82 million and $248 million. Such interest income is included within Consumer financing revenue on the Condensed Consolidated Statements of Income.
During the nine months ended September 30, 2026 and 2025, the Company had net VOCR originations of $1.16 billion and $1.18 billion, and received principal collections of $845 million and $839 million in each of these periods. The
weighted average interest rate on outstanding VOCRs was 14.5% and 14.6% as of September 30, 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):
Nine Months Ended September 30,
20262025
Allowance for loan losses, beginning balance$663 $614 
Initial allowance for contract receivables acquired during the period53 — 
Provision for loan losses, net (a)
389 365 
Contract receivables write-offs, net(357)(325)
Allowance for loan losses, ending balance$748 $654 
(a)Recorded as a reduction to Net revenues.
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. For all VOCRs originated by the Company, 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 VOCRs acquired from the acquisition of Yes& Vacations and Spinnaker Resorts (collectively, “the Acquisitions”), totaling $157 million, are presented by FICO at origination. 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 vacation ownership contract receivables using the most recently updated FICO scores, based on the policy described above (in millions):
As of September 30, 2026
700+600-699<600No ScoreAsia PacificTotal
Current$2,068 $717 $139 $100 $235 $3,259 
31 - 60 days30 27 12 3 4 76 
61 - 90 days20 18 10 1 3 52 
91 - 120 days14 17 13 1 2 47 
Total$2,132 $779 $174 $105 $244 $3,434 
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 vacation ownership contract receivables using the most recently updated FICO scores, based on the policy described above (in millions):
As of September 30, 2026
700+600-699<600No ScoreAsia PacificTotal
2026$777 $197 $14 $26 $113 $1,127 
2025539 209 45 21 65 879 
2024308 124 36 16 32 516 
2023206 96 29 19 14 364 
2022141 69 23 9 5 247 
Prior161 84 27 14 15 301 
Total$2,132 $779 $174 $105 $244 $3,434 
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 vacation ownership contract receivables by year of origination (in millions):
Nine Months Ended
September 30, 2026
2026$20 
2025170 
202483 
202344 
202224 
Prior22 
Total$363