XML 44 R28.htm IDEA: XBRL DOCUMENT v3.19.3.a.u2
Commitments and Contingencies
12 Months Ended
Dec. 31, 2019
Commitments And Contingencies Disclosure [Abstract]  
Commitments and Contingencies

Note 22: 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 December 31, 2019, we were committed to purchase approximately $473 million of inventory and land over a period of 11 years and $25 million of other commitments under the normal course of business. Additionally, we have committed to develop additional vacation ownership units at an existing resort in Japan. 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 years ended December 31, 2019 and 2018, we purchased $75 million and $18 million, respectively as required under our commitments. As of December 31, 2019, our remaining obligation pursuant to these arrangements was expected to be incurred as follows:  

 

($ in millions)

 

2020

 

 

2021

 

 

2022

 

 

2023

 

 

2024

 

 

Thereafter

 

 

Total

 

Inventory purchase obligations

 

$

84

 

 

$

221

 

 

$

56

 

 

$

58

 

 

$

40

 

 

$

14

 

 

$

473

 

Other commitments(1)

 

 

15

 

 

 

8

 

 

 

2

 

 

 

 

 

 

 

 

 

 

 

 

25

 

Total

 

$

99

 

 

$

229

 

 

$

58

 

 

$

58

 

 

$

40

 

 

$

14

 

 

$

498

 

 

(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 all 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 December 31, 2019, will not materially affect our consolidated financial statements.