EQUITY AND COST METHOD INVESTMENTS

We have investments that are recorded under both the equity and cost methods.These investments are considered to be an integral part of our business and are strategically and operationally important to our overall results. Our equity and cost method investment balances recorded at December 31, 2011 and 2010 are as follows:



	December 31, 2011		December 31, 2010
Equity method investments	$	207	$	175
Cost method investments	73		70
Total investments	$	280	$	245

Of our $280 million total investment balance as of December 31, 2011, $273 million was recorded in our Owned and Leased Hotels segment. Of our $245 million total investment balance as of December 31, 2010, $236 million was recorded in our Owned and Leased Hotels segment.

Our income (loss) from equity method investments included in the consolidated statements of income (loss) for the years ended December 31, 2011, 2010, and 2009, were $4 million, $(40) million, and $(13) million, respectively. We recorded insignificant income from our cost method investments for the years ended December 31, 2011 and 2010 and $22 million for the year ended December 31, 2009 within other income (loss), net in our consolidated statements of income (loss).

We have interests in certain non-hospitality related real estate investment companies from which we received insignificant income for the years ended December 31, 2011 and 2010, and $21 million for the year ended December 31, 2009 which is included in other income (loss), net in our consolidated statements of income (loss).

The carrying value and ownership percentages of our unconsolidated investments in hotel and vacation properties accounted for under the equity method as of December 31, 2011 and 2010 are as follows:



	Ownership Interests	Our Investment
	Ownership Interests	December 31, 2011		December 31, 2010
Juniper Hotels Private Ltd	50.0%	$	41	$	44
Hotel Investments, LP	29.9%	22		25
Wailea Hotel and Beach Resort, LLC	28.1%	20		2
Noble Select JV	40.0%	18		—
Hedreen Hotel, LLC	49.9%	17		17
Nuevo Plaza Hotel Mendoza Limited	50.0%	15		17
Sao Paulo Investment Company Inc.	50.0%	13		12
Hedreen Hotel Two, LLC	49.9%	8		9
Austin Downtown Hotel Partners, LLC	50.0%	7		—
Grand Aspen Holdings, LLC & Top of Mill Investors, LLC	25.8%	6		7
Other		40		42
Total		$	207	$	175

The following tables present summarized financial information for all unconsolidated ventures in which we hold an investment that is accounted for under the equity method.



	Years Ended December 31,
	2011		2010			2009
Total revenues	$	986	$	846		$	707
Gross operating profit	317		264			234
Income (loss) from continuing operations	22		(10		)	(49		)
Net income (loss)	$	22	$	(10	)	$	(49	)



	As of December 31,
	2011		2010
Current Assets	$	367	$	370
Noncurrent Assets	2,229		1,974
Total Assets	$	2,596	$	2,344
Current Liabilities	$	301	$	212
Noncurrent Liabilities	1,802		1,688
Total Liabilities	$	2,103	$	1,900

During 2011, we contributed $20 million to a newly formed joint venture with Noble Investment Group (“Noble”) in return for a 40% ownership interest in the venture (see Note 8). In addition, the Company and Noble agreed to invest in the strategic new development of select service hotels in the United States. Under that agreement, we are required to contribute up to a maximum of 40% of the equity necessary to fund up to $80 million (i.e. $32 million) of such new development (see Note 16).

In 2010, we entered into an agreement with an independent third party to acquire an interest in a hospitality venture that owns the Hyatt Regency New Orleans, which was closed in September 2005 due to damage from Hurricane Katrina. We contributed cash of $60 million for a preferred equity interest in this venture. The venture completed the renovation and the hotel was reopened during 2011. This investment is being accounted for under the cost method.

During 2011, 2010 and 2009 we recorded $1 million, $31 million and $14 million in total impairment charges in equity earnings (losses) from unconsolidated hospitality ventures. The impairment charge in 2011 relates to one property in our vacation ownership business that is accounted for as an equity method investment. We identified indicators in 2010 and 2009 relative to certain of our hospitality venture investments. Based on our assessments of these investments, we recorded $16 million and $11 million of impairment charges in 2010 and 2009, respectively, relating to two of these hospitality venture properties due to the carrying amount of the assets exceeding the fair value as calculated using discounted operating cash flows and a determination that the decline was other than temporary. Based on fair value estimates of our vacation ownership projects held through equity method investments, which reflected decreases in annual sales pace and/or price, we recorded $15 million in impairment charges for two vacation ownership equity method investments in 2010 and $3 million in impairment charges for one vacation ownership equity method investment in 2009.