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VACATION OWNERSHIP NOTES RECEIVABLE (Tables)
 12 Months Ended
Dec. 31, 2021
Accounts, Notes, Loans and Financing Receivable [Line Items]  
Composition of vacation ownership notes receivable balances, net of reserves
The following table shows the composition of our vacation ownership notes receivable balances, net of reserves.
December 31, 2021December 31, 2020
($ in millions)OriginatedAcquiredTotalOriginatedAcquiredTotal
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 
Subtotal363 20 383 311 36 347 
$1,671 $374 $2,045 $1,531 $309 $1,840 
_________________________
(1)Refer to Footnote 7 “Financial Instruments” for discussion of eligibility of our vacation ownership notes receivable for securitization.
Interest income associated with vacation ownership notes receivable The following table summarizes interest income associated with vacation ownership notes receivable.
($ in millions)202120202019
Interest income associated with vacation ownership notes receivable — securitized$219 $239 $232 
Interest income associated with vacation ownership notes receivable — non-securitized40 18 32 
Total interest income associated with vacation ownership notes receivable$259 $257 $264 
Financing receivable, nonaccrual
The following table shows our recorded investment in non-accrual Legacy-MVW vacation ownership notes receivable, which are vacation ownership notes receivable that are 90 days or more past due.
Legacy-MVW Vacation Ownership Notes Receivable
($ in millions)Non-SecuritizedSecuritizedTotal
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 $114 
The following table shows our recorded investment in non-accrual Legacy-ILG and Legacy-Welk vacation ownership notes receivable, which are vacation ownership notes receivable that are 90 days or more past due.
Legacy-ILG and Legacy-Welk Vacation Ownership Notes Receivable
($ in millions)Non-SecuritizedSecuritizedTotal
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 $121 
Aging of recorded investment in principal, before reserves, in vacation ownership notes receivable
The following table shows the aging of the recorded investment in principal, before reserves, in Legacy-MVW vacation ownership notes receivable as of December 31, 2021 and December 31, 2020.
Legacy-MVW Vacation Ownership Notes Receivable
As of December 31, 2021As of December 31, 2020
($ in millions)Non-SecuritizedSecuritizedTotalNon-SecuritizedSecuritizedTotal
31 – 90 days past due$6 $20 $26 $8 $25 $33 
91 – 150 days past due4 8 12 5 14 19 
Greater than 150 days past due84 — 84 95 — 95 
Total past due94 28 122 108 39 147 
Current180 1,027 1,207 231 1,011 1,242 
Total vacation ownership notes receivable$274 $1,055 $1,329 $339 $1,050 $1,389 
The following table shows the aging of the recorded investment in principal, before reserves, in Legacy-ILG and Legacy-Welk vacation ownership notes receivable as of December 31, 2021 and December 31, 2020.
Legacy-ILG and Legacy-Welk Vacation Ownership Notes Receivable
As of December 31, 2021As of December 31, 2020
($ in millions)Non-SecuritizedSecuritizedTotalNon-SecuritizedSecuritizedTotal
31 – 90 days past due$16 $24 $40 $8 $19 $27 
91 – 120 days past due4 6 10 2 7 9 
Greater than 120 days past due110 4 114 107 5 112 
Total past due130 34 164 117 31 148 
Current219 735 954 123 550 673 
Total vacation ownership notes receivable$349 $769 $1,118 $240 $581 $821 
Schedule of financing receivable
The following table details the origination year of our Legacy-MVW vacation ownership notes receivable as of December 31, 2021.
Legacy-MVW Vacation Ownership Notes Receivable
($ in millions)Non-SecuritizedSecuritizedTotal
Year of Origination
2021$129 $274 $403 
202020 165 185 
201946 250 296 
201829 161 190 
201715 96 111 
2016 & Prior35 109 144 
$274 $1,055 $1,329 
Acquired  
Accounts, Notes, Loans and Financing Receivable [Line Items]  
Future principal payments, net of reserves, and interest rates of vacation ownership notes receivable The following table shows future contractual principal payments, net of reserves, and interest rates for our acquired vacation ownership notes receivable at December 31, 2021.
Acquired Vacation Ownership Notes Receivable
($ in millions)Non-SecuritizedSecuritizedTotal
2022$2 $50 $52 
20232 51 53 
20242 50 52 
20252 47 49 
20262 42 44 
Thereafter10 114 124 
Balance at December 31, 2021$20 $354 $374 
Weighted average stated interest rate13.7%14.1%14.1%
Range of stated interest rates
0.0% to 21.9%
0.0% to 21.9%
0.0% to 21.9%
Notes receivable reserves
The following table summarizes the activity related to our acquired vacation ownership notes receivable reserve.
Acquired Vacation Ownership Notes Receivable Reserve
($ in millions)Non-SecuritizedSecuritizedTotal
Balance at December 31, 2019, as reported$— $— $— 
Impact of adoption of ASU 2016-13
29 26 55 
Opening Balance at January 1, 202029 26 55 
Securitizations(1)1 — 
Clean-up call1 (1)— 
Write-offs(18)— (18)
Recoveries9 — 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, 202039 21 60 
Securitizations(9)9 — 
Clean-up call3 (3)— 
Write-offs(49)— (49)
Recoveries27 — 27 
Defaulted vacation ownership notes receivable repurchase activity(1)
32 (32)— 
Initial allowance for credit losses for Legacy-Welk vacation ownership notes receivable11 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.
(2)Increase in vacation ownership notes receivable reserve includes $10 million ($8 million non-securitized and $2 million securitized) attributable to the increased reserve as a result of the COVID-19 pandemic.
Financing receivable credit quality indicators
The following tables show the Legacy-ILG and Legacy-Welk acquired vacation ownership notes receivable, before reserves, by brand and FICO score.
Acquired Vacation Ownership Notes Receivable as of December 31, 2021
($ in millions)700 +600 - 699< 600No ScoreTotal
Westin$52 $32 $3 $8 $95 
Sheraton54 48 8 23 133 
Hyatt8 6 1 — 15 
Welk115 79 1 2 197 
Other2 — — 2 4 
$231 $165 $13 $35 $444 
Acquired Vacation Ownership Notes Receivable as of December 31, 2020
($ in millions)700 +600 - 699< 600No ScoreTotal
Westin$81 $48 $4 $11 $144 
Sheraton81 73 13 31 198 
Hyatt12 9 1 — 22 
Other2 1 — 2 5 
$176 $131 $18 $44 $369 
The following tables detail the origination year of our Legacy-ILG and Legacy-Welk acquired vacation ownership notes receivable by brand and FICO score as of December 31, 2021.
Acquired Vacation Ownership Notes Receivable - Westin
($ in millions)20212020201920182017 & PriorTotal
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)20212020201920182017 & PriorTotal
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)20212020201920182017 & PriorTotal
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)20212020201920182017 & PriorTotal
700 +$9 $24 $30 $20 $32 $115 
600 - 6995 15 21 13 25 79 
< 600— 1 — — — 1 
No Score— — 1 — 1 2 
$14 $40 $52 $33 $58 $197 
Originated  
Accounts, Notes, Loans and Financing Receivable [Line Items]  
Future principal payments, net of reserves, and interest rates of vacation ownership notes receivable The following table shows future principal payments, net of reserves, and interest rates for our originated vacation ownership notes receivable at December 31, 2021.
Originated Vacation Ownership Notes Receivable
($ in millions)Non-SecuritizedSecuritizedTotal
2022$48 $127 $175 
202328 130 158 
202428 132 160 
202528 134 162 
202629 139 168 
Thereafter202 646 848 
Balance at December 31, 2021$363 $1,308 $1,671 
Weighted average stated interest rate12.9%12.9%12.9%
Range of stated interest rates
0.0% to 20.9%
0.0% to 19.9%
0.0% to 20.9%
Notes receivable reserves The following table summarizes the activity related to our originated vacation ownership notes receivable reserve.
Originated Vacation Ownership Notes Receivable Reserve
($ in millions)Non-SecuritizedSecuritizedTotal
Balance at December 31, 201861 79 140 
Increase in vacation ownership notes receivable reserve94 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, 201990 114 204 
Increase in vacation ownership notes receivable reserve(2)
87 50 137 
Securitizations(70)70 — 
Clean-up call37 (37)— 
Write-offs(31)— (31)
Defaulted vacation ownership notes receivable repurchase activity(1)
80 (80)— 
Balance at December 31, 2020193 117 310 
Increase in vacation ownership notes receivable reserve78 24 102 
Securitizations(76)76 — 
Clean-up call12 (12)— 
Write-offs(79)— (79)
Defaulted vacation ownership notes receivable repurchase activity(1)
65 (65)— 
Balance at December 31, 2021$193 $140 $333 
_________________________
(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.
(2)Increase in vacation ownership notes receivable reserve includes $59 million ($32 million non-securitized and $27 million securitized) attributable to the increased reserve as a result of the COVID-19 pandemic.
Financing receivable credit quality indicators
The following tables show the Legacy-ILG and Legacy-Welk originated vacation ownership notes receivable, before reserves, by brand and FICO score.
Originated Vacation Ownership Notes Receivable as of December 31, 2021
($ in millions)700 +600 - 699< 600No ScoreTotal
Westin$143 $66 $8 $34 $251 
Sheraton136 94 20 46 296 
Hyatt22 11 — — 33 
Welk65 27 1 1 94 
$366 $198 $29 $81 $674 
Originated Vacation Ownership Notes Receivable as of December 31, 2020
($ in millions)700 +600 - 699< 600No ScoreTotal
Westin$109 $52 $6 $23 $190 
Sheraton106 72 16 43 237 
Hyatt16 8 — — 24 
$231 $132 $22 $66 $451 
The following tables detail the origination year of our Legacy-ILG and Legacy-Welk originated vacation ownership notes receivable by brand and FICO score as of December 31, 2021.
Originated Vacation Ownership Notes Receivable - Westin
($ in millions)20212020201920182017 & PriorTotal
700 +$72 $22 $41 $8 $— $143 
600 - 69930 10 22 4 — 66 
< 6003 2 3 — — 8 
No Score20 5 8 1 — 34 
$125 $39 $74 $13 $— $251 
Originated Vacation Ownership Notes Receivable - Sheraton
($ in millions)20212020201920182017 & PriorTotal
700 +$65 $23 $38 $10 $— $136 
600 - 69943 16 27 8 — 94 
< 6009 4 6 1 — 20 
No Score12 9 21 4 — 46 
$129 $52 $92 $23 $— $296 
Originated Vacation Ownership Notes Receivable - Hyatt
($ in millions)20212020201920182017 & PriorTotal
700 +$12 $3 $6 $1 $— $22 
600 - 6995 2 3 1 — 11 
< 600— — — — — — 
No Score— — — — — — 
$17 $5 $9 $2 $— $33 
Originated Vacation Ownership Notes Receivable - Welk
($ in millions)20212020201920182017 & PriorTotal
700 +$65 $— $— $— $— $65 
600 - 699$27 — — — — 27 
< 600$1 — — — — 1 
No Score$1 — — — — 1 
$94 $— $— $— $— $94