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Commitments and Contingencies
6 Months Ended
Jun. 30, 2021
Commitments And Contingencies Disclosure [Abstract]  
Commitments and Contingencies

Note 19: Commitments and Contingencies

We have entered into certain arrangements with developers whereby we have committed to purchase vacation ownership units or other real estate at a future date to be marketed and sold under our Hilton Grand Vacations brand. As of June 30, 2021, we were committed to purchase approximately $436 million of inventory and land over a period of 10 years and $10 million of other commitments in the normal course of business. Additionally, we have committed to develop additional vacation ownership units at an existing resort in Japan. We are also committed to an agreement to exchange parcels of land in Hawaii, subject to the successful completion of zoning, land use requirements and other applicable regulatory requirements. The actual amount and timing of the acquisitions is subject to change pursuant to the terms of the respective arrangements, which could also allow for cancellation in certain circumstances. During the six months ended June 30, 2021 and 2020, we completed $18 million and $9 million, respectively, of purchases required under our inventory-related purchase commitments. As of June 30, 2021, our remaining obligation pursuant to these arrangements were expected to be incurred as follows:

 

($ in millions)

 

2021
(remaining)

 

 

2022

 

 

2023

 

 

2024

 

 

2025

 

 

Thereafter

 

 

Total

 

Inventory purchase obligations

 

$

209

 

 

$

114

 

 

$

58

 

 

$

40

 

 

$

3

 

 

$

12

 

 

$

436

 

Other commitments(1)

 

 

7

 

 

 

3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

10

 

Total

 

$

216

 

 

$

117

 

 

$

58

 

 

$

40

 

 

$

3

 

 

$

12

 

 

$

446

 

 

(1) Primarily relates to commitments related to information technology and brand licensing in the normal course of business.

 

We are involved in litigation arising from the normal course of business, some of which includes claims for substantial sums. Management has evaluated these legal matters and we believe that possible losses derived from an unfavorable outcome that is reasonably possible is not reasonably estimable. While the actual results of claims and litigation cannot be predicted with certainty, we expect that the resolution of all pending or threatened claims and litigation as of June 30, 2021, will not materially affect our unaudited condensed consolidated financial statements.