Discontinued Operations

9 Months Ended

Sep. 30, 2012

Discontinued Operations

Note 14. Discontinued Operations

During the three months ended September 30, 2012, the gain of $23 million (net of tax) primarily relates to the favorable settlement of certain liabilities associated with a former subsidiary of ITT Corporation, which was acquired by the Company in 1998. The gain of $15 million (net of tax) for the nine months ended September 30, 2012 also includes a $5 million (net of tax) write-down to fair market value, based on current market prices, of certain wholly-owned hotels classified as held for sale (see Note 6). Additionally, the Company recorded a loss of $1 million and $3 million (net of tax) for the three and nine months ended September 30, 2012, respectively, for accrued interest related to an uncertain tax position associated with a previous disposition.

During the three and nine months ended September 30, 2011, the Company recorded a loss of $1 million and $19 million, respectively, (net of tax) related to the sale of the Company’s interest in a consolidated joint venture (see Note 5). Additionally, the Company recorded a loss of $1 million and $3 million (net of tax) for the three and nine months ended September 30, 2011, respectively, for accrued interest related to an uncertain tax position associated with a previous disposition.