XML 36 R25.htm IDEA: XBRL DOCUMENT v3.19.1
Commitments and Contingencies
3 Months Ended
Mar. 31, 2019
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 at a future date to be marketed and sold under our Hilton Grand Vacations brand. As of March 31, 2019, we were committed to purchase approximately $527 million of inventory and land over a period of twelve years. The ultimate 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 three months ended March 31, 2019 and 2018, we purchased $9 million and $4 million, respectively, of VOI inventory as required under our commitments. As of March 31, 2019, our remaining obligation pursuant to these arrangements was expected to be incurred as follows:

 

($ in millions)

 

Purchase

Obligations

 

Year

 

 

 

 

2019 (remaining)

 

$

119

 

2020

 

 

162

 

2021

 

 

84

 

2022

 

 

56

 

2023

 

 

52

 

Thereafter

 

 

54

 

Total

 

$

527

 

 

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 an unfavorable outcome is either reasonably possible or remote and/or for which possible losses are not reasonably estimable. While the ultimate results of claims and litigation cannot be predicted with certainty, we expect that the ultimate resolution of all pending or threatened claims and litigation as of March 31, 2019, will not have a material effect on our unaudited condensed consolidated financial statements.