RELATED PARTY TRANSACTIONS

Equity Method Investments

We have equity method investments in entities that own properties for which we provide management services and receive fees. In addition, in some cases we provide loans, preferred equity, or guarantees to these entities.

The following tables present financial data resulting from transactions with these related parties:

Income Statement Data



($ in millions)	2018			2017			2016
Base management fees	$	25		$	28		$	18
Incentive management fees	12			15			10
Contract investment amortization	(2		)	(2		)	(2		)
Owned, leased, and other revenue	—			2			—
Cost reimbursement revenue	332			356			222
Depreciation, amortization, and other	(2		)	(3		)	(1		)
General, administrative, and other	—			(1		)	—
Reimbursed expenses	(337		)	(356		)	(222		)
Gains and other income, net	51			658			1
Interest income	—			4			5
Equity in earnings	103			40			9

Balance Sheet Data



($ in millions)	At Year-End 2018			At Year-End 2017
Current assets
Accounts and notes receivable, net	$	31		$	42
Prepaid expenses and other	1			—
Intangible assets
Contract acquisition costs and other	32			39
Equity method investments	732			734
Other noncurrent assets	10			17
Current liabilities
Accounts payable	(4		)	(11		)
Accrued expenses and other	(16		)	(17		)
Deferred tax liabilities	(20		)	(41		)
Other noncurrent liabilities	(11		)	(4		)

Undistributed earnings attributable to our equity method investments represented approximately $70 million of our consolidated retained earnings at year-end 2018.

Summarized Financial Information for Investees

The following tables present summarized financial information for the entities in which we have equity method investments:



($ in millions)	2018		2017		2016 ⁽¹⁾
Sales	$	932	$	1,176	$	747
Net income	221		222		101



($ in millions)	At Year-End 2018		At Year-End 2017
Assets (primarily composed of hotel real estate managed by us)	$	2,724	$	2,234
Liabilities	1,843		1,649


⁽¹⁾	2016 sales and net income for entities in which we acquired an investment through the Starwood Combination are for the period from the Merger Date to year-end 2016.

The carrying amount of our equity method investments was $732 million at year-end 2018 and $734 million at year-end 2017. This value exceeded our share of the book value of the investees' net assets by $419 million at year-end 2018 and $441 at year-end 2017, primarily due to the value that we assigned to land, contracts, and buildings owned by the investees.

Other Related Parties

We received management fees of approximately $13 million in 2018, $13 million in 2017, and $13 million in 2016, plus reimbursement of certain expenses, from our operation of properties owned by JWM Family Enterprises, L.P., which is beneficially owned and controlled by J.W. Marriott, Jr., Deborah Marriott Harrison, and other members of the Marriott family.