VACATION OWNERSHIP NOTES RECEIVABLE

The following table shows the composition of our vacation ownership notes receivable balances, net of reserves:



($ in millions)	At Year-End 2017		At Year-End 2016
Vacation ownership notes receivable — securitized	$	814	$	717
Vacation ownership notes receivable — non-securitized
Eligible for securitization⁽¹⁾	142		98
Not eligible for securitization⁽¹⁾	159		155
Subtotal	301		253
Total vacation ownership notes receivable	$	1,115	$	970

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⁽¹⁾	Refer to Footnote 5 “Financial Instruments” for discussion of eligibility of our vacation ownership notes receivable for securitization.

The following tables show future principal payments, net of reserves, as well as interest rates for our non-securitized and securitized vacation ownership notes receivable at December 31, 2017:



($ in millions)	Non-Securitized Vacation Ownership Notes Receivable		Securitized Vacation Ownership Notes Receivable		Total
2018	$	48	$	94	$	142
2019	35		91		126
2020	30		92		122
2021	26		93		119
2022	24		92		116
Thereafter	138		352		490
Balance at year-end 2017	$	301	$	814	$	1,115
Weighted average stated interest rate at year-end 2017	11.5%		12.6%		12.3%
Range of stated interest rates at year-end 2017	0.0% to 18.0%		4.9% to 18.0%		0.0% to 18.0%

We reflect interest income associated with vacation ownership notes receivable in our Income Statements in the Financing revenues caption. The following table summarizes interest income associated with vacation ownership notes receivable:



($ in millions)	2017		2016		2015
Interest income associated with vacation ownership notes receivable – securitized	$	101	$	97	$	90
Interest income associated with vacation ownership notes receivable – non-securitized	27		23		28
Total interest income associated with vacation ownership notes receivable	$	128	$	120	$	118

We record the difference between the vacation ownership note receivable and the variable consideration included in the transaction price for the sale of the related vacation ownership product as a reserve on our vacation ownership notes receivable. See “Financing Revenues” in Footnote 1 “Summary of Significant Accounting Policies” for further information.

The following table summarizes the activity related to our vacation ownership notes receivable reserve:



($ in millions)	Non-Securitized Vacation Ownership Notes Receivable			Securitized Vacation Ownership Notes Receivable			Total
Balance at year-end 2014	$	65		$	53		$	118
Impact of adoption of ASU 2014-09	1			1			2
Opening balance 2015	66			54			120
Increase in vacation ownership notes receivable reserve	25			11			36
Securitizations	(16		)	16			—
Clean-up calls⁽¹⁾	7			(7		)	—
Write-offs	(48		)	—			(48		)
Defaulted vacation ownership notes receivable repurchase activity⁽²⁾	25			(25		)	—
Balance at year-end 2015	59			49			108
Increase in vacation ownership notes receivable reserve	27			17			44
Securitizations	(28		)	28			—
Clean-up of Warehouse Credit Facility⁽³⁾	10			(10		)	—
Write-offs	(40		)	—			(40		)
Defaulted vacation ownership notes receivable repurchase activity⁽²⁾	30			(30		)	—
Balance at year-end 2016	58			54			112
Increase in vacation ownership notes receivable reserve	42			10			52
Securitizations	(29		)	29			—
Clean-up of Warehouse Credit Facility⁽³⁾	4			(4		)	—
Write-offs	(45		)	—			(45		)
Defaulted vacation ownership notes receivable repurchase activity⁽²⁾	28			(28		)	—
Balance at year-end 2017	$	58		$	61		$	119

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⁽¹⁾	Refers to our voluntary repurchase of previously securitized non-defaulted vacation ownership notes receivable to retire outstanding vacation ownership notes receivable securitizations.


⁽²⁾	Decrease in securitized vacation ownership notes receivable reserve and increase in non-securitized vacation ownership notes receivable reserve was attributable to the transfer of the reserve when we voluntarily repurchased defaulted securitized vacation ownership notes receivable.


⁽³⁾	Refers to our voluntary repurchase of previously securitized non-defaulted vacation ownership notes receivable from our Warehouse Credit Facility.

The following table shows our recorded investment in non-accrual vacation ownership notes receivable, which are vacation ownership notes receivable that are 90 days or more past due. As noted in Footnote 1 “Summary of Significant Accounting Policies” we recognize interest income on a cash basis for these vacation ownership notes receivable.



($ in millions)	Non-Securitized Vacation Ownership Notes Receivable		Securitized Vacation Ownership Notes Receivable		Total
Investment in vacation ownership notes receivable on non-accrual status at year-end 2017	$	39	$	7	$	46
Investment in vacation ownership notes receivable on non-accrual status at year-end 2016	$	44	$	6	$	50
Average investment in vacation ownership notes receivable on non-accrual status during 2017	$	41	$	7	$	48

The following table shows the aging of the recorded investment in principal, before reserves, in vacation ownership notes receivable as of December 31, 2017:



($ in millions)	Non-Securitized Vacation Ownership Notes Receivable		Securitized Vacation Ownership Notes Receivable		Total
31 – 90 days past due	$	7	$	19	$	26
91 – 150 days past due	5		7		12
Greater than 150 days past due	34		—		34
Total past due	46		26		72
Current	313		849		1,162
Total vacation ownership notes receivable	$	359	$	875	$	1,234

The following table shows the aging of the recorded investment in principal, before reserves, in vacation ownership notes receivable as of December 30, 2016:



($ in millions)	Non-Securitized Vacation Ownership Notes Receivable		Securitized Vacation Ownership Notes Receivable		Total
31 – 90 days past due	$	8	$	16	$	24
91 – 150 days past due	4		7		11
Greater than 150 days past due	40		—		40
Total past due	52		23		75
Current	259		748		1,007
Total vacation ownership notes receivable	$	311	$	771	$	1,082