3. VACATION OWNERSHIP NOTES RECEIVABLE

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


*($ in thousands)*	March 25, 2016		January 1, 2016
Vacation ownership notes receivable — securitized	$	680,888	$	669,179
Vacation ownership notes receivable — non-securitized
Eligible for securitization ⁽¹⁾		97,561		104,671
Not eligible for securitization ⁽¹⁾		130,138		146,781

Subtotal		227,699		251,452

Total vacation ownership notes receivable	$	908,587	$	920,631

⁽¹⁾

Refer to Footnote No. 4, “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 March 25, 2016:


*($ in thousands)*	Non-Securitized Vacation Ownership Notes Receivable		Securitized Vacation Ownership Notes Receivable		Total
2016	$	52,452	$	76,658	$	129,110
2017		38,165		87,971		126,136
2018		24,279		84,295		108,574
2019		18,257		78,000		96,257
2020		16,234		76,183		92,417
Thereafter		78,312		277,781		356,093

Balance at March 25, 2016	$	227,699	$	680,888	$	908,587

Weighted average stated interest rate		11.9%		12.8%		12.5%
Range of stated interest rates		0.0% to 19.5%		4.9% to 19.5%		0.0% to 19.5%

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


	Twelve Weeks Ended
*($ in thousands)*	March 25, 2016		March 27, 2015
Interest income associated with vacation ownership notes receivable — securitized	$	21,191	$	22,074
Interest income associated with vacation ownership notes receivable — non-securitized		6,583		5,493

Total interest income associated with vacation ownership notes receivable	$	27,774	$	27,567

We record an estimate of expected uncollectibility on all notes receivable from vacation ownership purchasers as a reduction of revenues from the sale of vacation ownership products at the time we recognize profit on a vacation ownership product sale. We fully reserve for all defaulted vacation ownership notes receivable in addition to recording a reserve on the estimated uncollectible portion of the remaining vacation ownership notes receivable. For those vacation ownership notes receivable that are not in default, we assess collectibility based on pools of vacation ownership notes receivable because we hold large numbers of homogeneous vacation ownership notes receivable. We use the same criteria to estimate uncollectibility for non-securitized vacation ownership notes receivable and securitized vacation ownership notes receivable because they perform similarly. We estimate uncollectibility for each pool based on historical activity for similar vacation ownership notes receivable.

The following table summarizes the activity related to our vacation ownership notes receivable reserve for the twelve weeks ended March 25, 2016:


*($ in thousands)*	Non-Securitized Vacation Ownership Notes Receivable Reserve		Securitized Vacation Ownership Notes Receivable Reserve		Total
Balance at January 1, 2016	$	55,584	$	47,655	$	103,239
Provision for loan losses		3,157		5,194		8,351
Securitizations		(4,044)		4,044		—
Write-offs		(6,883)		—		(6,883)
Defaulted vacation ownership notes receivable repurchase activity ⁽¹⁾		7,513		(7,513)		—

Balance at March 25, 2016	$	55,327	$	49,380	$	104,707

⁽¹⁾

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 the securitized vacation ownership notes receivable.

Although we consider loans to owners to be past due if we do not receive payment within 30 days of the due date, we suspend accrual of interest only on those loans that are over 90 days past due. We consider loans over 150 days past due to be in default. We apply payments we receive for vacation ownership notes receivable on non-accrual status first to interest, then to principal and any remainder to fees. We resume accruing interest when vacation ownership notes receivable are less than 90 days past due. We do not accept payments for vacation ownership notes receivable during the foreclosure process unless the amount is sufficient to pay all past due principal, interest, fees and penalties owed and fully reinstate the note. We write off uncollectible vacation ownership notes receivable against the reserve once we receive title to the vacation ownership products through the foreclosure or deed-in-lieu process or, in Europe or Asia Pacific, when revocation is complete. For both non-securitized and securitized vacation ownership notes receivable, we estimated average remaining default rates of 6.81 percent and 6.92 percent as of March 25, 2016 and January 1, 2016, respectively. A 0.5 percentage point increase in the estimated default rate would have resulted in an increase in our allowance for loan losses of $4.7 million as of both March 25, 2016 and January 1, 2016.

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:


*($ in thousands)*	Non-Securitized Vacation Ownership Notes Receivable		Securitized Vacation Ownership Notes Receivable		Total
Investment in vacation ownership notes receivable on non-accrual status at March 25, 2016	$	46,694	$	10,132	$	56,826
Investment in vacation ownership notes receivable on non-accrual status at January 1, 2016	$	46,024	$	8,717	$	54,741
Average investment in vacation ownership notes receivable on non-accrual status during the twelve weeks ended March 25, 2016	$	46,359	$	9,425	$	55,784
Average investment in vacation ownership notes receivable on non-accrual status during the twelve weeks ended March 27, 2015	$	56,974	$	9,043	$	66,017

The following table shows the aging of the recorded investment in principal, before reserves, in vacation ownership notes receivable as of March 25, 2016:


*($ in thousands)*	Non-Securitized Vacation Ownership Notes Receivable		Securitized Vacation Ownership Notes Receivable		Total
31 – 90 days past due	$	9,115	$	21,003	$	30,118
91 – 150 days past due		4,533		8,674		13,207
Greater than 150 days past due		42,161		1,458		43,619

Total past due		55,809		31,135		86,944
Current		227,217		699,133		926,350

Total vacation ownership notes receivable	$	283,026	$	730,268	$	1,013,294

The following table shows the aging of the recorded investment in principal, before reserves, in vacation ownership notes receivable as of January 1, 2016:


	Non-Securitized Vacation Ownership Notes Receivable		Securitized Vacation Ownership Notes Receivable		Total
*($ in thousands)*
31 – 90 days past due	$	9,981	$	21,113	$	31,094
91 – 150 days past due		4,731		8,590		13,321
Greater than 150 days past due		41,293		127		41,420

Total past due		56,005		29,830		85,835
Current		251,031		687,004		938,035

Total vacation ownership notes receivable	$	307,036	$	716,834	$	1,023,870