Business Segment Information

9 Months Ended

Sep. 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 September 30,						Nine Months Ended September 30,
	2011			2010			2011			2010
Revenues:
Hotel	$	1,190		$	1,081		$	3,531		$	3,211
Vacation ownership and residential		182			174			562			520
Total	$	1,372		$	1,255		$	4,093		$	3,731
Operating income:
Hotel	$	173		$	139		$	480		$	384
Vacation ownership and residential		28			27			92			79
Total segment operating income		201			166			572			463
Selling, general, administrative and other		(39	)		(45	)		(113	)		(121	)
Restructuring and other special credits (charges), net		—			1			—			2
Operating income		162			122			459			344
Equity earnings (losses) and gains and (losses) from unconsolidated ventures, net:
Hotel		(5	)		(1	)		4			3
Vacation ownership and residential		—			—			2			2
Interest expense, net		(45	)		(59	)		(151	)		(180	)
Gain (loss) on asset dispositions and impairments, net		45			(56	)		14			(35	)
Income from continuing operations before taxes and noncontrolling interests	$	157		$	6		$	328		$	134
Capital expenditures:
Hotel	$	100		$	36		$	183		$	119
Vacation ownership and residential		42			38			118			108
Corporate		44			9			88			16
Total(c)	$	186		$	83		$	389		$	243

	September 30, 2011		December 31, 2010
Assets:
Hotel(a)	$	6,633	$	6,440
Vacation ownership and residential (b)		2,248		2,139
Corporate		1,056		1,197
Total	$	9,937	$	9,776

(a) Includes $226 million and $285 million of investments in unconsolidated joint ventures at September 30, 2011 and December 31, 2010, respectively.

(b) Includes $30 million and $27 million of investments in unconsolidated joint ventures at September 30, 2011 and December 31, 2010, respectively.

(c) Includes $139 million and $280 million of property, plant, and equipment expenditures for the three and nine months ended September 30, 2011, respectively, and $49 million and $119 million for the three and nine months ended September 30, 2010, respectively. Additional expenditures included in the amounts above consist of vacation ownership inventory and investments in management contracts and hotel joint ventures.