
	December 31, 2021						December 31, 2020
($ in millions)	Originated		Acquired		Total		Originated		Acquired		Total
Securitized	$	1,308	$	354	$	1,662	$	1,220	$	273	$	1,493
Non-securitized
Eligible for securitization(1)	96		1		97		126		2		128
Not eligible for securitization(1)	267		19		286		185		34		219
Subtotal	363		20		383		311		36		347
	$	1,671	$	374	$	2,045	$	1,531	$	309	$	1,840

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)	2021		2020		2019
Interest income associated with vacation ownership notes receivable — securitized	$	219	$	239	$	232
Interest income associated with vacation ownership notes receivable — non-securitized	40		18		32
Total interest income associated with vacation ownership notes receivable	$	259	$	257	$	264

In 2020, as a result of higher actual and projected default activity related predominantly to the COVID-19 pandemic, we evaluated our vacation ownership notes receivable reserve initially using the 2008/2009 financial crisis as a reference point. As a result, we increased our vacation ownership notes receivable reserves by $52 million in the first quarter of 2020. We monitored actual delinquency and default activity throughout the remainder of 2020. Taking into account higher than previously expected default activity experienced, we increased our vacation ownership notes receivable reserve by an additional $17 million in the fourth quarter of 2020. In total, the reserve adjustments made during 2020 were reflected as a $59 million reduction to Sale of vacation ownership products, a $10 million increase in Financing expenses, and a $19 million reduction in Cost of vacation ownership products on our Income Statement for the year ended December 31, 2020. There were no additional adjustments to our vacation ownership notes receivables reserves due to the COVID-19 pandemic during 2021.

Acquired vacation ownership notes receivable represent vacation ownership notes receivable acquired as part of the ILG Acquisition and the Welk Acquisition. The following table shows future contractual principal payments, net of reserves, and interest rates for our acquired vacation ownership notes receivable at December 31, 2021.


	Acquired Vacation Ownership Notes Receivable
($ in millions)	Non-Securitized		Securitized		Total
2022	$	2	$	50	$	52
2023	2		51		53
2024	2		50		52
2025	2		47		49
2026	2		42		44
Thereafter	10		114		124
Balance at December 31, 2021	$	20	$	354	$	374
Weighted average stated interest rate	13.7%		14.1%		14.1%
Range of stated interest rates	0.0% to 21.9%		0.0% to 21.9%		0.0% to 21.9%


	Acquired Vacation Ownership Notes Receivable Reserve
($ in millions)	Non-Securitized		Securitized		Total
Balance at December 31, 2019, as reported	$	—	$	—	$	—
Impact of adoption of ASU 2016-13	29		26		55
Opening Balance at January 1, 2020	29		26		55
Securitizations	(1)		1		—
Clean-up call	1		(1)		—
Write-offs	(18)		—		(18)
Recoveries	9		—		9
Defaulted vacation ownership notes receivable repurchase activity(1)	17		(17)		—
Increase in vacation ownership notes receivable reserve(2)	2		12		14
Balance at December 31, 2020	39		21		60
Securitizations	(9)		9		—
Clean-up call	3		(3)		—
Write-offs	(49)		—		(49)
Recoveries	27		—		27
Defaulted vacation ownership notes receivable repurchase activity(1)	32		(32)		—
Initial allowance for credit losses for Legacy-Welk vacation ownership notes receivable	11		21		32
(Decrease) increase in vacation ownership notes receivable reserve	(7)		7		—
Balance at December 31, 2021	$	47	$	23	$	70

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

Originated vacation ownership notes receivable represent vacation ownership notes receivable originated by Legacy-ILG and Legacy-Welk subsequent to each respective acquisition date and all Legacy-MVW vacation ownership notes receivable. The following table shows future principal payments, net of reserves, and interest rates for our originated vacation ownership notes receivable at December 31, 2021.


	Originated Vacation Ownership Notes Receivable
($ in millions)	Non-Securitized		Securitized		Total
2022	$	48	$	127	$	175
2023	28		130		158
2024	28		132		160
2025	28		134		162
2026	29		139		168
Thereafter	202		646		848
Balance at December 31, 2021	$	363	$	1,308	$	1,671
Weighted average stated interest rate	12.9%		12.9%		12.9%
Range of stated interest rates	0.0% to 20.9%		0.0% to 19.9%		0.0% to 20.9%

For originated vacation ownership notes receivable, 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. The following table summarizes the activity related to our originated vacation ownership notes receivable reserve.


	Originated Vacation Ownership Notes Receivable Reserve
($ in millions)	Non-Securitized		Securitized		Total






Balance at December 31, 2018	61		79		140
Increase in vacation ownership notes receivable reserve	94		18		112
Securitizations	(81)		81		—
Clean-up call	24		(24)		—
Write-offs	(48)		—		(48)
Defaulted vacation ownership notes receivable repurchase activity(1)	40		(40)		—
Balance at December 31, 2019	90		114		204
Increase in vacation ownership notes receivable reserve(2)	87		50		137
Securitizations	(70)		70		—
Clean-up call	37		(37)		—
Write-offs	(31)		—		(31)
Defaulted vacation ownership notes receivable repurchase activity(1)	80		(80)		—
Balance at December 31, 2020	193		117		310
Increase in vacation ownership notes receivable reserve	78		24		102
Securitizations	(76)		76		—
Clean-up call	12		(12)		—
Write-offs	(79)		—		(79)
Defaulted vacation ownership notes receivable repurchase activity(1)	65		(65)		—
Balance at December 31, 2021	$	193	$	140	$	333

For both Legacy-MVW non-securitized and securitized vacation ownership notes receivable, we estimated average remaining default rate of 6.74% as of both December 31, 2021 and December 31, 2020. A 0.5 percentage point increase in the estimated default rate would have resulted in an increase in the related vacation ownership notes receivable reserve of $6 million as of both December 31, 2021 and December 31, 2020.

We use the aging of the vacation ownership notes receivable as the primary credit quality indicator for our Legacy-MVW vacation ownership notes receivable, as historical performance indicates that there is a relationship between the default behavior of borrowers and the age of the receivable associated with the vacation ownership interest.


	Legacy-MVW Vacation Ownership Notes Receivable
($ in millions)	Non-Securitized		Securitized		Total
Investment in vacation ownership notes receivable on non-accrual status at December 31, 2021	$	88	$	8	$	96
Investment in vacation ownership notes receivable on non-accrual status at December 31, 2020	$	100	$	14	$	114


	Legacy-MVW Vacation Ownership Notes Receivable
	As of December 31, 2021						As of December 31, 2020
($ in millions)	Non-Securitized		Securitized		Total		Non-Securitized		Securitized		Total
31 – 90 days past due	$	6	$	20	$	26	$	8	$	25	$	33
91 – 150 days past due	4		8		12		5		14		19
Greater than 150 days past due	84		—		84		95		—		95
Total past due	94		28		122		108		39		147
Current	180		1,027		1,207		231		1,011		1,242
Total vacation ownership notes receivable	$	274	$	1,055	$	1,329	$	339	$	1,050	$	1,389


	Legacy-MVW Vacation Ownership Notes Receivable
($ in millions)	Non-Securitized		Securitized		Total
Year of Origination
2021	$	129	$	274	$	403
2020	20		165		185
2019	46		250		296
2018	29		161		190
2017	15		96		111
2016 & Prior	35		109		144
	$	274	$	1,055	$	1,329

At December 31, 2021 and December 31, 2020, the weighted average FICO score within our consolidated Legacy-ILG and Legacy-Welk vacation ownership notes receivable was 707 and 708, respectively, based upon the FICO score of the borrower at the time of origination. The average estimated rate for all future defaults for our Legacy-ILG and Legacy-Welk consolidated outstanding pool of vacation ownership notes receivable was 17.33% as of December 31, 2021 and 14.63% as of December 31, 2020. A 0.5 percentage point increase in the estimated default rate on the Legacy-ILG and Legacy-Welk vacation ownership notes receivable would have resulted in an increase in the related vacation ownership notes receivable reserve of $4 million as of December 31, 2021, and $3 million as of December 31, 2020.

We use the origination of the vacation ownership notes receivable by brand (Westin, Sheraton, Hyatt, Welk) and the FICO scores of the customer as the primary credit quality indicators for our Legacy-ILG and Legacy-Welk vacation ownership notes receivable, as historical performance indicates that there is a relationship between the default behavior of borrowers and the brand associated with the vacation ownership interest they have acquired, supplemented by the FICO scores of the customers. Vacation ownership notes receivable with no FICO score in the tables below primarily relate to non-U.S. resident borrowers.


	Legacy-ILG and Legacy-Welk Vacation Ownership Notes Receivable
($ in millions)	Non-Securitized		Securitized		Total
Investment in vacation ownership notes receivable on non-accrual status at December 31, 2021	$	114	$	10	$	124
Investment in vacation ownership notes receivable on non-accrual status at December 31, 2020	$	109	$	12	$	121


	Legacy-ILG and Legacy-Welk Vacation Ownership Notes Receivable
	As of December 31, 2021						As of December 31, 2020
($ in millions)	Non-Securitized		Securitized		Total		Non-Securitized		Securitized		Total
31 – 90 days past due	$	16	$	24	$	40	$	8	$	19	$	27
91 – 120 days past due	4		6		10		2		7		9
Greater than 120 days past due	110		4		114		107		5		112
Total past due	130		34		164		117		31		148
Current	219		735		954		123		550		673
Total vacation ownership notes receivable	$	349	$	769	$	1,118	$	240	$	581	$	821


	Acquired Vacation Ownership Notes Receivable as of December 31, 2021
($ in millions)	700 +		600 - 699		< 600		No Score		Total
Westin	$	52	$	32	$	3	$	8	$	95
Sheraton	54		48		8		23		133
Hyatt	8		6		1		—		15
Welk	115		79		1		2		197
Other	2		—		—		2		4
	$	231	$	165	$	13	$	35	$	444


	Acquired Vacation Ownership Notes Receivable as of December 31, 2020
($ in millions)	700 +		600 - 699		< 600		No Score		Total
Westin	$	81	$	48	$	4	$	11	$	144
Sheraton	81		73		13		31		198
Hyatt	12		9		1		—		22
Other	2		1		—		2		5
	$	176	$	131	$	18	$	44	$	369


	Acquired Vacation Ownership Notes Receivable - Westin
($ in millions)	2021		2020		2019		2018		2017 & Prior		Total
700 +	$	—	$	—	$	—	$	14	$	38	$	52
600 - 699	—		—		—		8		24		32
< 600	—		—		—		2		1		3
No Score	—		—		—		2		6		8
	$	—	$	—	$	—	$	26	$	69	$	95


	Acquired Vacation Ownership Notes Receivable - Sheraton
($ in millions)	2021		2020		2019		2018		2017 & Prior		Total
700 +	$	—	$	—	$	—	$	16	$	38	$	54
600 - 699	—		—		—		12		36		48
< 600	—		—		—		5		3		8
No Score	—		—		—		7		16		23
	$	—	$	—	$	—	$	40	$	93	$	133


	Acquired Vacation Ownership Notes Receivable - Hyatt and Other
($ in millions)	2021		2020		2019		2018		2017 & Prior		Total
700 +	$	—	$	—	$	—	$	2	$	8	$	10
600 - 699	—		—		—		2		4		6
< 600	—		—		—		—		1		1
No Score	—		—		—		—		2		2
	$	—	$	—	$	—	$	4	$	15	$	19


	Acquired Vacation Ownership Notes Receivable - Welk
($ in millions)	2021		2020		2019		2018		2017 & Prior		Total
700 +	$	9	$	24	$	30	$	20	$	32	$	115
600 - 699	5		15		21		13		25		79
< 600	—		1		—		—		—		1
No Score	—		—		1		—		1		2
	$	14	$	40	$	52	$	33	$	58	$	197


	Originated Vacation Ownership Notes Receivable as of December 31, 2021
($ in millions)	700 +		600 - 699		< 600		No Score		Total
Westin	$	143	$	66	$	8	$	34	$	251
Sheraton	136		94		20		46		296
Hyatt	22		11		—		—		33
Welk	65		27		1		1		94
	$	366	$	198	$	29	$	81	$	674


	Originated Vacation Ownership Notes Receivable as of December 31, 2020
($ in millions)	700 +		600 - 699		< 600		No Score		Total
Westin	$	109	$	52	$	6	$	23	$	190
Sheraton	106		72		16		43		237
Hyatt	16		8		—		—		24
	$	231	$	132	$	22	$	66	$	451


	Originated Vacation Ownership Notes Receivable - Westin
($ in millions)	2021		2020		2019		2018		2017 & Prior		Total
700 +	$	72	$	22	$	41	$	8	$	—	$	143
600 - 699	30		10		22		4		—		66
< 600	3		2		3		—		—		8
No Score	20		5		8		1		—		34
	$	125	$	39	$	74	$	13	$	—	$	251


	Originated Vacation Ownership Notes Receivable - Sheraton
($ in millions)	2021		2020		2019		2018		2017 & Prior		Total
700 +	$	65	$	23	$	38	$	10	$	—	$	136
600 - 699	43		16		27		8		—		94
< 600	9		4		6		1		—		20
No Score	12		9		21		4		—		46
	$	129	$	52	$	92	$	23	$	—	$	296


	Originated Vacation Ownership Notes Receivable - Hyatt
($ in millions)	2021		2020		2019		2018		2017 & Prior		Total
700 +	$	12	$	3	$	6	$	1	$	—	$	22
600 - 699	5		2		3		1		—		11
< 600	—		—		—		—		—		—
No Score	—		—		—		—		—		—
	$	17	$	5	$	9	$	2	$	—	$	33