The Company generates vacation ownership contract receivables (“VOCRs”) by extending financing to the purchasers of its VOIs. Vacation ownership contract receivables, net consisted of the following (in millions):


	June 30, 2024		December 31, 2023
Vacation ownership contract receivables:
Securitized (a)	$	2,206	$	2,291
Non-securitized (b)	930		810
Vacation ownership contract receivables, gross	3,136		3,101
Less: allowance for loan losses	574		574
Vacation ownership contract receivables, net	$	2,562	$	2,527

(a)Excludes $17 million and $18 million of accrued interest on VOCRs as of June 30, 2024 and December 31, 2023, which are included in Trade receivables, net on the Condensed Consolidated Balance Sheets.

(b)Excludes $8 million of accrued interest on VOCRs as of both June 30, 2024 and December 31, 2023, which are included in Trade receivables, net on the Condensed Consolidated Balance Sheets.

During the three and six months ended June 30, 2024, the Company’s securitized VOCRs generated interest income of $79 million and $159 million. During the three and six months ended June 30, 2023, the Company’s securitized VOCRs generated interest income of $78 million and $154 million. Such interest income is included within Consumer financing revenue on the Condensed Consolidated Statements of Income.

During the six months ended June 30, 2024 and 2023, the Company had net VOCR originations of $728 million and $674 million, and received principal collections of $493 million and $458 million. The weighted average interest rate on outstanding VOCRs was 14.7% as of both June 30, 2024 and December 31, 2023.

The Company records the difference between VOCRs and the variable consideration included in the transaction price for the sale of the related VOIs as a provision for loan losses on VOCRs. The activity in the allowance for loan losses on VOCRs was as follows (in millions):


	Six Months Ended
	June 30,
	2024		2023
Allowance for loan losses, beginning balance	$	574	$	541
Provision for loan losses, net (a)	191		158
Contract receivables write-offs, net	(191)		(154)
Allowance for loan losses, ending balance	$	574	$	545

The basis of the differentiation within the identified class of financed VOI contract receivables is the consumer’s Fair Isaac Corporation (“FICO”) score. A FICO score is a branded version of a consumer credit score widely used within the U.S. by the largest banks and lending institutions. FICO scores range from 300 to 850 and are calculated based on information obtained from one or more of the three major U.S. credit reporting agencies that compile and report on a consumer’s credit

history. The Company updates its records for all active VOI contract receivables with a balance due on a rolling monthly basis to ensure that all VOI contract receivables are scored at least every six months. The Company groups all VOI contract receivables into five different categories: FICO scores ranging from 700 to 850, from 600 to 699, below 600, no score (primarily comprised of consumers for whom a score is not readily available, including consumers declining access to FICO scores and non-U.S. residents), and Asia Pacific (comprised of receivables in the Company’s Travel + Leisure Vacation Clubs Asia Pacific business for which scores are not available).

The following table details an aging analysis of financing receivables using the most recently updated FICO scores, based on the policy described above (in millions):


	As of June 30, 2024
	700+		600-699		<600		No Score		Asia Pacific		Total
Current	$	1,831	$	742	$	137	$	84	$	185	$	2,979
31 - 60 days	20		25		12		2		7		66
61 - 90 days	15		17		10		1		9		52
91 - 120 days	9		13		11		1		5		39
Total	$	1,875	$	797	$	170	$	88	$	206	$	3,136

	As of December 31, 2023
	700+		600-699		<600		No Score		Asia Pacific		Total
Current	$	1,835	$	735	$	120	$	83	$	183	$	2,956
31 - 60 days	22		28		13		2		1		66
61 - 90 days	12		16		10		1		—		39
91 - 120 days	10		16		12		2		—		40
Total	$	1,879	$	795	$	155	$	88	$	184	$	3,101

The Company ceases to accrue interest on VOI contract receivables once the contract has remained delinquent for greater than 90 days and reverses all of the associated accrued interest recognized to date against interest income included within Consumer financing revenue on the Condensed Consolidated Statements of Income. At greater than 120 days, the VOI contract receivable is written off to the allowance for loan losses. In accordance with its policy, the Company assesses the allowance for loan losses using a static pool methodology and thus does not assess individual loans for impairment.

The following tables detail the year of origination of financing receivables using the most recently updated FICO scores, based on the policy described above (in millions):


	As of June 30, 2024
	700+		600-699		<600		No Score		Asia Pacific		Total
2024	$	504	$	138	$	—	$	22	$	79	$	743
2023	562		264		58		21		60		965
2022	317		154		44		12		16		543
2021	139		72		22		3		10		246
2020	69		32		8		3		9		121
Prior	284		137		38		27		32		518
Total	$	1,875	$	797	$	170	$	88	$	206	$	3,136

	As of December 31, 2023
	700+		600-699		<600		No Score		Asia Pacific		Total
2023	$	850	$	292	$	27	$	33	$	107	$	1,309
2022	407		202		46		14		18		687
2021	172		90		27		4		12		305
2020	86		39		10		4		10		149
2019	131		65		18		11		13		238
Prior	233		107		27		22		24		413
Total	$	1,879	$	795	$	155	$	88	$	184	$	3,101