Fair Value Measurements (Tables)

9 Months Ended

12 Months Ended

Sep. 30, 2014

Dec. 31, 2013

Fair Value of Financial Assets and Liabilities

The carrying amounts and estimated fair values of our financial assets and liabilities, including related current portions, were as follows:


	September 30, 2014
			Hierarchy Level
	Carrying Amount		Level 1		Level 2		Level 3
	(in millions)
Assets:
Cash equivalents	$	290	$	—	$	290	$	—
Restricted cash equivalents		97		—		97		—
Timeshare financing receivables		1,002		—		—		1,004
Interest rate swaps		4		—		4		—

Liabilities:
Long-term debt⁽¹⁾⁽²⁾		11,051		1,606		—		9,592
Non-recourse debt⁽³⁾		661		—		—		657


	December 31, 2013
			Hierarchy Level
	Carrying Amount		Level 1		Level 2		Level 3
	(in millions)
Assets:
Cash equivalents	$	309	$	—	$	309	$	—
Restricted cash equivalents		107		—		107		—
Timeshare financing receivables		994		—		—		996
Interest rate swaps		10		—		10		—

Liabilities:
Long-term debt⁽¹⁾		11,682		57		1,560		10,358
Non-recourse debt⁽³⁾		672		—		—		670

⁽¹⁾	Excludes capital lease obligations with a carrying value of $76 million and $73 million as of September 30, 2014 and December 31, 2013, respectively.

⁽²⁾	As of September 30, 2014, the classification of certain long-term debt with a carrying value of $1,500 million changed from Level 2 to Level 1 upon the availability of active market pricing data.

⁽³⁾

Excludes capital lease obligations of consolidated VIEs with a carrying value of $239 million and $255 million as of September 30, 2014 and December 31, 2013, respectively, and non-recourse debt of consolidated VIEs with a carrying value of $37 million and $41 million as of September 30, 2014 and December 31, 2013, respectively.

The carrying amounts and estimated fair values of our financial assets and liabilities, which included related current portions, were as follows:


	December 31, 2013
			Hierarchy Level
	Carrying Amount		Level 1		Level 2		Level 3
	(in millions)
Assets:
Cash equivalents	$	309	$	—	$	309	$	—
Restricted cash equivalents		107		—		107		—
Timeshare financing receivables		994		—		—		996
Interest rate swaps		10		—		10		—
Liabilities:
Long-term debt⁽¹⁾⁽³⁾		11,682		57		1,560		10,358
Non-recourse debt⁽²⁾⁽³⁾		672		—		—		670


	December 31, 2012
			Hierarchy Level
	Carrying Amount		Level 1		Level 2		Level 3
	(in millions)
Assets:
Cash equivalents	$	561	$	—	$	561	$	—
Restricted cash equivalents		322		—		322		—
Timeshare financing receivables		984		—		—		987
Liabilities:
Long-term debt⁽¹⁾⁽³⁾		15,492		152		—		15,716

⁽¹⁾	Excludes capital lease obligations with a carrying value of $73 million and $83 million as of December 31, 2013 and 2012, respectively.

⁽²⁾	Represents the Securitized Timeshare Debt and the Timeshare Facility.

⁽³⁾	Includes current maturities.

Fair Value Measurements, Nonrecurring

As a result of our acquisition of the remaining ownership interest in certain equity method investments, which occurred during the nine months ended September 30, 2014, we measured financial and nonfinancial assets and liabilities at fair value on a nonrecurring basis (see Note 3: “Acquisitions”), as follows:


	Fair Value⁽¹⁾
	(in millions)
Property and equipment	$	144
Long-term debt		64

⁽¹⁾	Fair value measurements using significant unobservable inputs (Level 3).

The estimated fair values of our financial and nonfinancial assets that were measured at fair value on a nonrecurring basis as a result of impairment losses were as follows:


	Year Ended December 31,
	2012				2011
	Fair Value⁽¹⁾		Impairment Losses		Fair Value⁽¹⁾		Impairment Losses
	(in millions)
Property and equipment, net	$	24	$	53	$	5	$	20
Investments in affiliates		29		20		205		141

⁽¹⁾	Fair value measurements using significant unobservable inputs (Level 3).

- Definition

Tabular disclosure of the fair value of financial instruments, including financial assets and financial liabilities, and the measurements of those instruments, assets, and liabilities.

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