DEBT (Tables)

9 Months Ended

Sep. 30, 2020

Debt balances, net of unamortized debt issuance costs

The following table provides detail on our debt balances, net of unamortized debt discount and issuance costs.


($ in millions)		At September 30, 2020		At December 31, 2019
Senior Secured Notes
	2025 Notes	$	500	$	—
	Unamortized debt discount and issuance costs	(7)		—
		493		—

Senior Unsecured Notes
	2026 Notes	750		750
	Unamortized debt discount and issuance costs	(7)		(8)
		743		742

	2028 Notes	350		350
	Unamortized debt discount and issuance costs	(4)		(5)
		346		345

Corporate Credit Facility
	Term Loan	887		893
	Unamortized debt discount and issuance costs	(11)		(12)
		876		881

	Revolving Corporate Credit Facility	—		30
	Unamortized debt issuance costs(1)	—		(3)
		—		27

Convertible Notes		230		230
Unamortized debt discount and issuance costs		(17)		(23)
		213		207

Finance leases		9		14
		$	2,680	$	2,216

_________________________

(1)Excludes $3 million of unamortized debt issuance costs as of September 30, 2020, as no cash borrowings were outstanding on the Revolving Corporate Credit Facility at that time

Scheduled future principal payments for debt

The following table shows scheduled future principal payments for our securitized debt as of September 30, 2020.


	Vacation Ownership Notes Receivable Securitizations
($ in millions)
Payments Year
2020, remaining	$	46
2021	178
2022	184
2023	189
2024	191
Thereafter	981
	$	1,769

The following table shows scheduled future principal payments for our debt, excluding finance leases, as of September 30, 2020.


($ in millions)	2025 Notes		2026 Notes		2028 Notes		Term Loan		Convertible Notes		Total
Payments Year
2020, remaining	$	—	$	—	$	—	$	2	$	—	$	2
2021	—		—		—		9		—		9
2022	—		—		—		9		230		239
2023	—		—		—		9		—		9
2024	—		—		—		9		—		9
Thereafter	500		750		350		849		—		2,449
	$	500	$	750	$	350	$	887	$	230	$	2,717

Schedule of cash flow hedges included in accumulated other comprehensive income (loss)

The following table reflects the activity in accumulated other comprehensive loss related to our derivative instruments:


($ in millions)	2020		2019
Derivative instrument adjustment balance, January 1	$	(21)	$	(6)
Other comprehensive loss before reclassifications	(24)		(3)
Reclassification to Income Statement	—		—
Net other comprehensive loss	(24)		(3)
Derivative instrument adjustment balance, March 31	(45)		(9)
Other comprehensive loss before reclassifications	(1)		(13)
Reclassification to Income Statement	—		—
Net other comprehensive loss	(1)		(13)
Derivative instrument adjustment balance, June 30	(46)		(22)
Other comprehensive gain (loss) before reclassifications	3		(4)
Reclassification to Income Statement	—		—
Net other comprehensive loss	3		(4)
Derivative instrument adjustment balance, September 30	$	(43)	$	(26)

Convertible debt

The following table shows the net carrying value of the Convertible Notes.


($ in millions)	At September 30, 2020		At December 31, 2019
Liability component
Principal amount	$	230	$	230
Unamortized debt discount	(15)		(20)
Unamortized debt issuance costs	(2)		(3)
Net carrying amount of the liability component	$	213	$	207

Carrying amount of equity component, net of issuance costs	$	33	$	33

The following table shows interest expense information related to the Convertible Notes.


	Three Months Ended				Nine Months Ended
($ in millions)	September 30, 2020		September 30, 2019		September 30, 2020		September 30, 2019
Contractual interest expense	$	1	$	1	$	3	$	2
Amortization of debt discount	1		2		5		5
Amortization of debt issuance costs	—		—		1		1
	$	2	$	3	$	9	$	8