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Commitments and Contingencies
9 Months Ended
Sep. 30, 2019
Commitments And Contingencies Disclosure [Abstract]  
Commitments and Contingencies

Note 19: Commitments and Contingencies

We have entered into certain arrangements with developers to commit to purchase vacation ownership units at a future date to be marketed and sold under our Hilton Grand Vacations brand. As of September 30, 2019, we were committed to purchase approximately $480 million of inventory and land over a period of 11 years and $32 million of other commitments under the normal course of business.  Additionally, we have committed to develop additional vacation ownership units at an existing resort. We expect to begin construction of these units in 2020. 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 nine months ended September 30, 2019 and 2018, we purchased $66 million and $18 million, respectively, as required under our commitments. As of September 30, 2019, our remaining obligation pursuant to these arrangements were expected to be incurred as follows:

 

($ in millions)

 

2019

(remaining)

 

 

2020

 

 

2021

 

 

2022

 

 

2023

 

 

Thereafter

 

 

Total

 

Inventory purchase obligations

 

$

 

 

$

220

 

 

$

92

 

 

$

56

 

 

$

58

 

 

$

54

 

 

$

480

 

Other commitments(1)

 

 

4

 

 

 

19

 

 

 

8

 

 

 

1

 

 

 

 

 

 

 

 

 

32

 

Total

 

$

4

 

 

$

239

 

 

$

100

 

 

$

57

 

 

$

58

 

 

$

54

 

 

$

512

 

 

(1)

Primarily relates to commitments related to information technology and brand licensing under 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 or remote 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 September 30, 2019, will not materially affect our unaudited condensed consolidated financial statements.