Business Segment Information

3 Months Ended

Mar. 31, 2012

Business Segment Information [Abstract]

Business Segment Information

Note 18. Business Segment Information

The Company has two operating segments: hotels and vacation ownership and residential sales. 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 sales segment includes the acquisition, development and operation of vacation ownership resorts, marketing and selling VOIs, and providing financing to customers who purchase such interests.

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 March 31,
	2012			2011
Revenues:
Hotel	$	1,160		$	1,103
Vacation ownership and residential		555			192
Total	$	1,715		$	1,295
Operating income:
Hotel	$	142		$	122
Vacation ownership and residential		116			35
Total segment operating income		258			157
Selling, general, administrative and other		(42	)		(37	)
Restructuring and other special charges (credits), net		11			—
Operating income		227			120
Equity earnings (losses) and gains and (losses) from unconsolidated ventures, net:
Hotel		9			4
Vacation ownership and residential		1			—
Interest expense, net		(49	)		(54	)
Gain (loss) on asset dispositions and impairments, net		(7	)		(33	)
Income from continuing operations before taxes and noncontrolling interests	$	181		$	37
Capital expenditures:
Hotel	$	53		$	42
Vacation ownership and residential (a)		9			29
Corporate		18			18
Total(b)	$	80		$	89
	March 31, 2012			December 31, 2011
Assets:
Hotel(c)	$	6,493		$	6,162
Vacation ownership and residential (d)		1,848			2,207
Corporate		1,183			1,191
Total	$	9,524		$	9,560

(a) Represents gross inventory and other capital expenditures of $30 million less VOI costs of sales of $21 million.

(b) Includes $72 million and $61 million of property, plant, and equipment expenditures for the three months ended March 31, 2012 and 2011, respectively. Additional expenditures included in the amounts above consist of vacation ownership inventory and investments in management contracts and hotel joint ventures.

(c) Includes $241 million and $229 million of investments in unconsolidated joint ventures at March 31, 2012 and December 31, 2011, respectively.

(d) Includes $30 million of investments in unconsolidated joint ventures at March 31, 2012 and December 31, 2011.