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VACATION OWNERSHIP NOTES RECEIVABLE (Tables)
 9 Months Ended
Sep. 30, 2022
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.
September 30, 2022December 31, 2021
($ in millions)OriginatedAcquiredTotalOriginatedAcquiredTotal
Securitized$1,421 $241 $1,662 $1,308 $354 $1,662 
Non-securitized
Eligible for securitization(1)
119 3 122 96 1 97 
Not eligible for securitization(1)
327 31 358 267 19 286 
Subtotal446 34 480 363 20 383 
$1,867 $275 $2,142 $1,671 $374 $2,045 
_________________________
(1)Refer to Footnote 7 “Financial Instruments” for a discussion of eligibility of our vacation ownership notes receivable for securitization.
Interest income associated with vacation ownership notes receivable The following table summarizes interest income associated with vacation ownership notes receivable.
Three Months EndedNine Months Ended
($ in millions)September 30, 2022September 30, 2021September 30, 2022September 30, 2021
Interest income associated with vacation ownership notes receivable — securitized$60 $55 $179 $160 
Interest income associated with vacation ownership notes receivable — non-securitized11 13 30 30 
Total interest income associated with vacation ownership notes receivable$71 $68 $209 $190 
Financing receivable, nonaccrual
The following table shows our recorded investment in non-accrual vacation ownership notes receivable, which are vacation ownership notes receivable that are 90 days or more past due.
Vacation Ownership Notes Receivable
($ in millions)Non-SecuritizedSecuritizedTotal
Investment in vacation ownership notes receivable on non-accrual status at September 30, 2022
$153 $20 $173 
Investment in vacation ownership notes receivable on non-accrual status at December 31, 2021
$202 $18 $220 
Aging of recorded investment in principal, before reserves, in vacation ownership notes receivable
The following table shows the aging of the recorded investment in principal, before reserves, in vacation ownership notes receivable as of September 30, 2022 and December 31, 2021.
As of September 30, 2022As of December 31, 2021
($ in millions)Non-SecuritizedSecuritizedTotalNon-SecuritizedSecuritizedTotal
31 – 90 days past due$15 $43 $58 $22 $44 $66 
91 – 120 days past due4 11 15 7 10 17 
Greater than 120 days past due149 9 158 195 8 203 
Total past due168 63 231 224 62 286 
Current505 1,812 2,317 399 1,762 2,161 
Total vacation ownership notes receivable$673 $1,875 $2,548 $623 $1,824 $2,447 
Acquired  
Accounts, Notes, Loans and Financing Receivable [Line Items]  
Future principal payments, net of reserves, and interest rates of vacation ownership notes receivable The following table shows future contractual principal payments, net of reserves, and interest rates for our acquired vacation ownership notes receivable at September 30, 2022.
Acquired Vacation Ownership Notes Receivable
($ in millions)Non-SecuritizedSecuritizedTotal
2022, remaining$2 $10 $12 
20234 39 43 
20244 39 43 
20254 36 40 
20263 33 36 
Thereafter17 84 101 
Balance at September 30, 2022$34 $241 $275 
Weighted average stated interest rate13.9%14.2%14.1%
Range of stated interest rates
0.0% to 21.9%
0.0% to 21.9%
0.0% to 21.9%
Notes receivable reserves
The following table summarizes activity related to our acquired vacation ownership notes receivable reserve.
Acquired Vacation Ownership Notes Receivable Reserve
($ in millions)Non-SecuritizedSecuritizedTotal
Balance at December 31, 2021$47 $23 $70 
Securitizations(1)1 — 
Clean-up call1 (1)— 
Write-offs(41)— (41)
Recoveries25 — 25 
Defaulted vacation ownership notes receivable repurchase activity(1)
20 (20)— 
(Decrease) increase in vacation ownership notes receivable reserve(37)18 (19)
Balance at September 30, 2022$14 $21 $35 
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(1)Reflects the change attributable to the transfer of the reserve from the securitized vacation ownership notes receivable reserve to the non-securitized vacation ownership notes receivable reserve when we voluntarily repurchase securitized vacation ownership notes receivable.
Financing receivable credit quality indicators
The following tables show the acquired vacation ownership notes receivable, before reserves, by brand and FICO score.
Acquired Vacation Ownership Notes Receivable as of September 30, 2022
($ in millions)700+600 - 699< 600No ScoreTotal
Combined Marriott$77 $55 $7 $19 $158 
Hyatt6 3 1 — 10 
Welk83 57 1 1 142 
$166 $115 $9 $20 $310 
Acquired Vacation Ownership Notes Receivable as of December 31, 2021
($ in millions)700+600 - 699< 600No ScoreTotal
Westin52 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 $444 
The following tables detail the origination year of our acquired vacation ownership notes receivable by brand and FICO score as of September 30, 2022.
Acquired Vacation Ownership Notes Receivable - Combined Marriott
($ in millions)2021202020192018 & PriorTotal
700 +$— $— $— $77 $77 
600 - 699— — — 55 55 
< 600— — — 7 7 
No Score— — — 19 19 
$— $— $— $158 $158 
Acquired Vacation Ownership Notes Receivable - Hyatt
($ in millions)2021202020192018 & PriorTotal
700 +$— $— $— $6 $6 
600 - 699— — — 3 3 
< 600— — — 1 1 
No Score— — — — — 
$— $— $— $10 $10 
Acquired Vacation Ownership Notes Receivable - Welk
($ in millions)2021202020192018 & PriorTotal
700 +$6 $18 $22 $37 $83 
600 - 6993 10 15 29 57 
< 6001 — — — 1 
No Score— — — 1 1 
$10 $28 $37 $67 $142 
Originated  
Accounts, Notes, Loans and Financing Receivable [Line Items]  
Future principal payments, net of reserves, and interest rates of vacation ownership notes receivable The following table shows future principal payments, net of reserves, and interest rates for our originated vacation ownership notes receivable at September 30, 2022.
Originated Vacation Ownership Notes Receivable
($ in millions)Non-SecuritizedSecuritizedTotal
2022, remaining$18 $32 $50 
202342 128 170 
202434 131 165 
202534 134 168 
202635 140 175 
Thereafter283 856 1,139 
Balance at September 30, 2022$446 $1,421 $1,867 
Weighted average stated interest rate12.8%13.0%13.0%
Range of stated interest rates
0.0% to 20.9%
0.0% to 19.9%
0.0% to 20.9%
Notes receivable reserves The following table summarizes the activity related to our originated vacation ownership notes receivable reserve.
Originated Vacation Ownership Notes Receivable Reserve
($ in millions)Non-SecuritizedSecuritizedTotal
Balance at December 31, 2021$193 $140 $333 
Increase in vacation ownership notes receivable reserve86 42 128 
Securitizations(73)73 — 
Clean-up call15 (15)— 
Write-offs(90)— (90)
Defaulted vacation ownership notes receivable repurchase activity(1)
48 (48)— 
Balance at September 30, 2022$179 $192 $371 
_________________________
(1)Reflects the change attributable to the transfer of the reserve from the securitized vacation ownership notes receivable reserve to the non-securitized vacation ownership notes receivable reserve when we voluntarily repurchase securitized vacation ownership notes receivable.
Financing receivable credit quality indicators
The following tables show originated vacation ownership notes receivable, before reserves, by brand and FICO score.
Originated Vacation Ownership Notes Receivable as of September 30, 2022
($ in millions)700 +600 - 699< 600No ScoreTotal
Combined Marriott$1,153 $538 $56 $280 $2,027 
Hyatt28 13 1 1 43 
Welk117 48 1 2 168 
$1,298 $599 $58 $283 $2,238 
Originated Vacation Ownership Notes Receivable as of December 31, 2021(1)
($ 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 
_________________________
(1)Balances as of December 31, 2021 exclude $1,329 million of Marriott branded vacation ownership notes receivable as the change in credit quality indicator occurred during the third quarter of 2022.
The following tables detail the origination year of our originated vacation ownership notes receivable by brand and FICO score as of September 30, 2022.
Originated Vacation Ownership Notes Receivable - Combined Marriott
($ in millions)202220212020201920182017 & PriorTotal
700 +$361 $327 $111 $175 $91 $88 $1,153 
600 - 699149 148 57 92 44 48 538 
< 60014 16 8 10 4 4 56 
No Score92 45 29 56 25 33 280 
$616 $536 $205 $333 $164 $173 $2,027 
Originated Vacation Ownership Notes Receivable - Hyatt
($ in millions)202220212020201920182017 & PriorTotal
700 +$14 $7 $2 $4 $1 $— $28 
600 - 6995 4 1 2 1 — 13 
< 600— 1 — — — — 1 
No Score1 — — — — — 1 
$20 $12 $3 $6 $2 $— $43 
Originated Vacation Ownership Notes Receivable - Welk
($ in millions)202220212020201920182017 & PriorTotal
700 +$77 $40 $— $— $— $— $117 
600 - 69930 18 — — — — 48 
< 600— 1 — — — — 1 
No Score1 1 — — — — 2 
$108 $60 $— $— $— $— $168