Business Segment Information

6 Months Ended

Jun. 30, 2011

Business Segment Information [Abstract]

Business Segment Information

Note 19. Business Segment Information

     The Company has two operating segments: hotels and vacation ownership and residential. The hotel segment generally represents a worldwide network of owned, leased and consolidated joint venture hotels and resorts operated primarily under the Company’s proprietary brand names including St. Regis^®, The Luxury Collection^®, Sheraton^®, Westin^®, W^®, Le Méridien^®, Aloft^®, Element^®, and Four Points^® by Sheraton as well as hotels and resorts which are managed or franchised under these brand names in exchange for fees. The vacation ownership and residential segment includes the development, ownership and operation of vacation ownership resorts, marketing and selling VOIs, providing financing to customers who purchase such interests and the sale of residential units.

     The performance of the hotels and vacation ownership and residential segments is evaluated primarily on operating profit before corporate selling, general and administrative expense, interest, gains and losses on the sale of real estate, restructuring and other special (charges) credits, and income taxes. The Company does not allocate these items to its segments.

     The following table presents revenues, operating income, capital expenditures and assets for the Company’s reportable segments (in millions):

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2011			2010			2011			2010
Revenues:
Hotel	$	1,238		$	1,114		$	2,341		$	2,130
Vacation ownership and residential		188			175			380			346
Total	$	1,426		$	1,289		$	2,721		$	2,476
Operating income:
Hotel	$	186		$	151		$	308		$	245
Vacation ownership and residential		29			27			64			52
Total segment operating income		215			178			372			297
Selling, general, administrative and other		(38	)		(42	)		(75	)		(76	)
Restructuring and other special credits (charges), net		—			1			—			1
Operating income		177			137			297			222
Equity earnings (losses) and gains and (losses) from unconsolidated ventures, net:
Hotel		5			2			9			5
Vacation ownership and residential		2			1			2			1
Interest expense, net		(52	)		(59	)		(106	)		(121	)
Gain (loss) on asset dispositions and impairments, net		2			20			(31	)		21
Income from continuing operations before taxes and noncontrolling interests	$	134		$	101		$	171		$	128
Capital expenditures:
Hotel	$	41		$	61		$	83		$	83
Vacation ownership and residential		47			36			76			70
Corporate		26			4			44			7
Total (c)	$	114		$	101		$	203		$	160
	June 30,			December 31,
	2011			2010
Assets:
Hotel (a)	$	6,556		$	6,440
Vacation ownership and residential (b)		2,222			2,139
Corporate		1,221			1,197
Total	$	9,999		$	9,776

(a)	Includes $265 million and $285 million of investments in unconsolidated joint ventures at June 30, 2011 and December 31, 2010, respectively.
(b)	Includes $29 million and $27 million of investments in unconsolidated joint ventures at June 30, 2011 and December 31, 2010, respectively.
(c)	Includes $79 million and $141 million of property, plant, and equipment expenditures for the three and six months ended June 20, 2011, respectively, and $46 million and $70 million for the three and six months ended June 30, 2010, respectively. Additional expenditures included in the amounts above consist of vacation ownership inventory and investments in management contracts and hotel joint ventures.