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, 2021, we were committed to purchase approximately $330 million of inventory and land over a period of 9 years and $7 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 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 are 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, 2021 and 2020, we completed $132 million and $23 million, respectively, of purchases required under our inventory-related purchase commitments. As of December 31, 2021, our remaining obligations pursuant to these arrangements were expected to be incurred as follows:


($ in millions)	2022		2023		2024		2025		2026		Thereafter		Total
Inventory purchase obligations	$	80	$	196	$	3	$	40	$	3	$	8	$	330
Other commitments(1)		6		1		—		—		—		—	$	7
Total	$	86	$	197	$	3	$	40	$	3	$	8	$	337

(1)

Primarily relates to commitments related to information technology and brand licensing under the normal course of business

As part of the Diamond Acquisition and per our licensing agreement with Hilton, we are committed to rebranding Diamond properties to the Hilton Grand Vacations brand and Hilton standards. As of December 31, 2021 we have begun incurring rebranding costs during the fourth quarter of 2021 in respect to information technology and sales centers, and expect rebranding to continue over a period of several years.

We are involved in litigation arising from the normal course of business, some of which includes claims for substantial sums. We evaluate these legal proceedings and claims at each balance sheet date to determine the degree of probability of an unfavorable outcome and, when it is probable that a liability has been incurred, our ability to reasonably estimate the amount of loss. We record a contingent litigation liability when it is determined that it is probable that a liability has been incurred and the amount of the loss can be reasonably estimated. As of December 31, 2021, we accrued liabilities of approximately $27 million for all legal matters that were contingencies. Substantially all of these accrued liabilities are related to matters that existed as of the Acquisition Date, which are subject to change during the measurement period of the Diamond Acquisition. See Note 3: Diamond Acquisition.

While we currently believe that the ultimate outcome of these proceedings, individually and in the aggregate, will not have a material effect on the Company’s financial condition, cash flows, or materially adversely affect overall trends in our results of operations, legal proceedings are inherently uncertain and unfavorable rulings could, individually or in aggregate, have a material adverse effect on the Company’s business, financial condition or results of operations.