We define our timeshare financing receivables portfolio as (i) originated and (ii) acquired. Our originated portfolio represents timeshare financing receivables that were originated by the businesses that we acquired subsequent to each respective acquisition date and all HGV timeshare financing receivables. Our acquired portfolio includes all timeshare financing receivables acquired that existed as of the respective acquisition dates.


	Originated				Acquired
($ in millions)	September 30, 2026		December 31, 2025		September 30, 2026		December 31, 2025
Securitized	$	1,948	$	1,734	$	524	$	373
Unsecuritized(1)	2,180		1,931		370		276
Timeshare financing receivables, gross	4,128		3,665		894		649
Unamortized non-credit acquisition net premium	—		—		23		34
Less: allowance for financing receivables losses	(1,173)		(1,078)		(196)		(155)
Timeshare financing receivables, net	$	2,955	$	2,587	$	721	$	528

(1)Includes amounts used as collateral to secure the non-recourse revolving timeshare receivable credit facility (“Timeshare Facility”) and the non-recourse revolving timeshare receivable credit facility for Big Cedar (“Big Cedar Timeshare Facility”) as well as amounts held as future collateral for securitization activities.

We recognize interest income on our timeshare financing receivables as earned. As of September 30, 2026 and December 31, 2025, we had interest receivable outstanding of $27 million and $26 million on our originated timeshare financing receivables. As of September 30, 2026 and December 31, 2025, we had interest receivable outstanding of $6 million and $4 million on our acquired timeshare financing receivables. Interest receivable is included in Other Assets within our 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, 2026, our originated timeshare financing receivables had interest rates ranging from 2.0% to 25.8%, a weighted-average interest rate of 14.2%, a weighted-average remaining term of 9.0 years and maturities through 2041. As of September 30, 2026, our acquired timeshare financing receivables had interest rates ranging from 2.0% to 25.0%, a weighted-average interest rate of 14.9%, a weighted-average remaining term of 6.5 years and maturities through 2041.

We apply payments we receive for loans, including those in non-accrual status, to amounts due in the following order: servicing fees; interest; principal; and late charges. Once a loan is 91 days past due, we cease accruing interest and reverse the accrued interest recognized up to that point. We resume interest accrual for loans for which we had previously ceased accruing interest once the loan is less than 91 days past due. We fully reserve for a timeshare financing receivable in the month following the date that the loan is 121 days past due and, subsequently, we write off the uncollectible note against the reserve once the foreclosure process, which is governed by product type and local law, is complete.

For our originated portfolio, we record an estimate of variable consideration for defaults as a reduction of revenue from financed VOI sales at the time revenue is recognized. 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 our acquired portfolio, any changes to the estimates of our allowance are recorded within Financing expense on our unaudited condensed consolidated statements of income in the period in which the change occurs.

During the third quarter of 2026, we made certain changes to our allowance for financing receivables methodology to reflect the continued integration of our previously acquired businesses and our expectation that future owners will represent a composite of all historical owners. The changes to methodology include combining the historical performance of timeshare financing receivables from these businesses into a single static pool model that stratifies the receivables by FICO score and equity percentage at the time of sale, consistent with our integrated underwriting standards. These changes are accounted for prospectively as a change in accounting estimate under ASC 250. As a result, we recorded a $55 million decrease in the allowance for originated timeshare financing receivable. The change reduced the provision for financing receivable losses which resulted in an increase to Sales of VOIs, net in our condensed consolidated statements of income.


($ in millions)	Originated		Acquired
Balance as of December 31, 2025	$	1,078	$	155
Initial allowance for financing receivables acquired during the period	—		96
Provision for financing receivables losses(1)	302		(4)
Write-offs	(217)		(80)
Inventory recoveries	—		39
Upgrades(2)	10		(10)
Balance as of September 30, 2026	$	1,173	$	196


($ in millions)	Originated		Acquired
Balance as of December 31, 2024	$	804	$	268

Provision for financing receivables losses(1)	300		18
Write-offs	(164)		(169)
Inventory recoveries	—		78
Upgrades(2)	27		(27)
Balance as of September 30, 2025	$	967	$	168

(1)For the Originated portfolio, this amount includes incremental provision for financing receivables losses, net of activity related to the repurchase of defaulted and upgraded timeshare financing receivables. For the Acquired portfolio, this amount includes incremental provision for credit loss expense from Acquired loans.


($ in millions)	Originated Timeshare Financing Receivables
Year	Securitized		Unsecuritized		Total
2026 (remaining)	$	39	$	38	$	77
2027	169		139		308
2028	182		154		336
2029	196		172		368
2030	213		193		406
Thereafter	1,149		1,484		2,633
Total	$	1,948	$	2,180	$	4,128

Our acquired timeshare financing receivables were purchased credit deteriorated (“PCD”) assets and purchased seasoned loans (“PSL”) assets. These notes receivable were initially recognized at their purchase price, represented by the acquisition date fair value, and subsequently “grossed-up” by our acquisition date assessment of the allowance for credit losses. In the first quarter of 2026, we early adopted the amendments to ASC 326, Credit Losses, which expands the use of the gross-up approach at acquisition to all PSL assets consistent with the accounting of PCD assets. Purchased financial assets with credit deterioration had a par value of $94 million at the Elara acquisition date, compared to a purchase price of $46 million, reflecting an allowance for credit losses of $43 million and a $5 million discount attributable to non-credit factors.

The fair value of our acquired timeshare financing receivables as of each respective acquisition date was determined using a discounted cash flow method, which calculated a present value of expected future risk-adjusted cash flows over the remaining term of the respective timeshare financing receivables. Consequently, the fair value of the acquired timeshare financing receivables recorded on our unaudited condensed consolidated balance sheet as of the respective acquisition date included an estimate of expected financing receivable losses which became the historical cost basis for that portfolio going forward.

The allowance for financing receivable losses for our acquired timeshare financing receivables is remeasured at each period end and takes into consideration an estimated measure of anticipated defaults and early repayments. We consider historical timeshare financing receivables performance and the current economic environment in the re-measurement of the allowance for financing receivable losses for our acquired timeshare financing receivables. Subsequent changes to the allowance for acquired financing receivable losses are recorded within Financing expense on our unaudited condensed consolidated statements of income in the period in which the change occurs.

We evaluate each portfolio collectively for purposes of estimating variable consideration, since each holds 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. The static pool analysis includes several years of default data through which we stratify our portfolio using certain key dimensions such as FICO scores and equity percentage at the time of sale. The adequacy of the related allowance is determined by management through analysis of the specific risk characteristics of the portfolio including assumed default rates, aging and historical write-offs of these receivables.


($ in millions)	Originated Timeshare Financing Receivables
FICO score	2026		2025		2024		2023		2022		Prior		Total
700+	$	1,052	$	862	$	447	$	194	$	139	$	109	$	2,803
600-699	291		271		147		62		43		32		846
<600	47		29		11		5		4		4		100
No score(1)	119		111		78		32		16		23		379
Total	$	1,509	$	1,273	$	683	$	293	$	202	$	168	$	4,128

Current period gross write-offs	$	—	$	16	$	71	$	58	$	40	$	32	$	217

As of September 30, 2026 and December 31, 2025, we had ceased accruing interest on originated timeshare financing receivables with an aggregate principal balance of $497 million and $430 million. The following table details an aged analysis of our gross timeshare receivables balance:


	Originated - Securitized				Originated - Unsecuritized
($ in millions)	September 30, 2026		December 31, 2025		September 30, 2026		December 31, 2025
Current	$	1,866	$	1,667	$	1,673	$	1,482
31 - 90 days past due	50		45		42		41
91 - 120 days past due	21		16		15		16
121 days and greater past due	11		6		450		392
Total	$	1,948	$	1,734	$	2,180	$	1,931


($ in millions)	Acquired Timeshare Financing Receivables
FICO score	2026		2025		2024		2023		2022		Prior		Total
700+	$	38	$	90	$	69	$	146	$	84	$	166	$	593
600-699	8		19		17		53		38		85		220
<600	2		3		2		3		2		10		22
No score(1)	—		1		1		15		10		32		59
Total	$	48	$	113	$	89	$	217	$	134	$	293	$	894

Current period gross write-offs	$	—	$	—	$	4	$	28	$	15	$	33	$	80

As of September 30, 2026 and December 31, 2025, we had ceased accruing interest on acquired timeshare financing receivables with an aggregate principal balance of $204 million and $152 million. The following table details an aged analysis of our gross timeshare receivables balance:


	Acquired - Securitized				Acquired - Unsecuritized
($ in millions)	September 30, 2026		December 31, 2025		September 30, 2026		December 31, 2025
Current	$	505	$	357	$	165	$	125
31 - 90 days past due	13		9		7		6
91 - 120 days past due	4		6		3		2
121 days and greater past due	2		1		195		143
Total	$	524	$	373	$	370	$	276

(1) As of September 30, 2026, the consolidated aged gross receivables related to the Elara Acquisition were $406 million current, $11 million 31 - 90 days past due, $3 million 91 - 120 days past due and $65 million 121 days and greater past due.