We classify notes receivable due within one year as current assets in the caption "Accounts and notes receivable" in the accompanying Consolidated Balance Sheets, including $81 million and $68 million, as of year-end 2008 and year-end 2007, respectively, related to "Loans to timeshare owners."

Notes receivable at year-end 2008 were due to us as follows: $96 million in 2009; $156 million in 2010; $72 million in 2011; $83 million in 2012; $59 million in 2013; and $460 million thereafter. The 2008 notes receivable balance is net of unamortized discounts totaling $21 million. The 2007 notes receivable balance is net of unamortized discounts totaling $25 million. Gains from the sale of notes receivable totaled approximately $16 million, $82 million, and $79 million during 2008, 2007, and 2006, respectively.

Lodging Senior Loans and Lodging Mezzanine and Other Loans
We reflect interest income associated with "Lodging senior loans" and "Lodging mezzanine and other loans" in the "Interest income" caption in the accompanying Consolidated Statements of Income. For financial statement purposes we do not accrue interest on "Lodging senior loans" and "Lodging mezzanine and other loans" that are impaired. At year-end 2008, our recorded investment in impaired "Lodging senior loans" and "Lodging mezzanine and other loans" was $157 million. We had a $113 million notes receivable reserve representing an allowance for credit losses, leaving $44 million of our investment in impaired loans for which there was no related allowance for credit losses. At year-end 2007, our recorded investment in impaired "Lodging senior loans" and "Lodging mezzanine and other loans" was $112 million and we had a $92 million allowance for credit losses, leaving $20 million of our investment in impaired loans for which there was no related allowance for credit losses. During 2008 and 2007, our average investment in impaired loans totaled $135 million and $102 million, respectively.

The following table summarizes the activity related to our "Lodging senior loans" and "Lodging mezzanine and other loans" notes receivable reserve for 2006, 2007, and 2008:

Loans to Timeshare Owners
At year-end 2008, the weighted average interest rate for our "Loans to timeshare owners" was 12.7 percent and the stated interest rates associated with these loans ranged from zero to 19.5 percent. We reflect interest income associated with "Loans to timeshare owners" of $68 million, $50 million, and $41 million for 2008, 2007, and 2006, respectively, in the accompanying Consolidated Statements of Income in the "Timeshare sales and services" revenue caption. We do not record accrued interest on "Loans to timeshare owners" that are over 90 days past due. Our recorded investment in "Loans to timeshare owners" on nonaccrual status at year-end 2008 and year-end 2007 totaled $74 million and $59 million, respectively. We established the reserve for "Loans to timeshare owners" notes receivable in 2006 in conjunction with the adoption of SOP 04-2.

The following table summarizes the activity related to our "Loans to timeshare owners" notes receivable reserve for 2006, 2007, and 2008:

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