Investment in Unconsolidated Affiliates

3 Months Ended

Mar. 31, 2018

Equity Method Investments And Joint Ventures [Abstract]

Investment in Unconsolidated Affiliates

Note8: Investment in Unconsolidated Affiliates

In March 2018, we entered into an agreement with SCG 1776, LLC, an affiliate of Strand Capital Group, LLC and formed 1776 Holding, LLC, a VIE. Because we are not the primary beneficiary, we do not consolidate 1776 Holding, LLC. Pursuant to the agreement, we contributed $5 million in cash for a 50 percent interest in 1776 Holding, LLC, which will construct an approximately 99-unit timeshare resort in Charleston, South Carolina. Our investment in 1776 Holdings, LLC is included in the condensed consolidated balance sheets as Investment in unconsolidated affiliates.  

On January 17, 2018, we received a cash distribution of $10 million from our investment in BRE Ace LLC, also a VIE of which $9 million was considered a return of investment.  

As of March 31, 2018, we held investments in our two unconsolidated affiliates with an aggregated debt balances of $491 million and $488 million as of March 31, 2018 and December 31, 2017, respectively. The debt is secured by their assets and are without recourse to us. Our maximum exposure to loss as a result of our investment interests in the two unconsolidated affiliates is primarily limited to (i) the carrying amount of the investments which totals $37 million and $41 million as of March 31, 2018 and December 31, 2017, respectively and (ii) receivables for commission and other fees earned under a fee-for-service arrangement.  See Note 16:  Related Party Transactions for additional information.