RELATED PARTY TRANSACTIONS

12 Months Ended

Dec. 30, 2011

RELATED PARTY TRANSACTIONS

Equity Method Investments

We have equity method investments in entities that own properties for which we provide management and/or franchise services and receive fees. In addition, in some cases we provide loans, preferred equity or guarantees to these entities. We generally own between 10 and 49 percent of these equity method investments. Undistributed earnings attributable to our equity method investments represented approximately $4 million of our consolidated retained earnings at year-end 2011.

The following tables present financial data resulting from transactions with these related parties:

Income Statement Data



($ in millions)	2011			2010			2009
Base management fees	$	37		$	35		$	44
Franchise fees	—			—			—
Incentive management fees	—			3			2
Cost reimbursements	383			328			321
Owned, leased, corporate housing, and other	8			4			—
Total revenue	$	428		$	370		$	367
General, administrative, and other	$	(5	)	$	(1	)	$	(1	)
Reimbursed costs	(383		)	(328		)	(321		)
Gains and other income	4			6			6
Interest expense-capitalized	2			5			4
Interest income	3			3			8
Equity in (losses) earnings	(13		)	(18		)	(66		)
Timeshare strategy-impairment charges (non-operating)	—			—			(138		)
Provision for income taxes	—			—			—

Balance Sheet Data



($ in millions)	At Year-End 2011			At Year-End 2010
Current assets-accounts and notes receivable	$	12		$	9
Contract acquisition costs and other	28			30
Equity and cost method investments	234			190
Notes receivable	2			2
Deferred taxes, net asset	16			22
Other	13			—
Current liabilities:
Other	(6		)	(25		)
Other long-term liabilities	(30		)	(34		)

Summarized information for the entities in which we have equity method investments is as follows:

Income Statement Data



($ in millions)	2011			2010			2009
Sales	$	1,215		$	914		$	850
Net (loss) income	$	(39	)	$	(77	)	$	(241	)

Balance Sheet Summary



($ in millions)	At Year-End 2011		At Year-End 2010
Assets (primarily comprised of hotel real estate managed by us)	$	3,159	$	3,186
Liabilities	$	2,532	$	2,446

- Definition

The entire disclosure for related party transactions, including the nature of the relationship(s), a description of the transactions, the amount of the transactions, the effects of any change in the method of establishing the terms of the transaction from the previous period, stated interest rate, expiration date, terms and manner of settlement per the agreement with the related party, and amounts due to or from related parties. If the entity and one or more other entities are under common ownership or management control and this control affects the operating results or financial position, disclosure includes the nature of the control relationship even if there are no transactions between the entities. Disclosure may also include the aggregate amount of current and deferred tax expense for each statement of earnings presented where the entity is a member of a group that files a consolidated tax return, the amount of any tax related balances due to or from affiliates as of the date of each statement of financial position presented, the principal provisions of the method by which the consolidated amount of current and deferred tax expense is allocated to the members of the group and the nature and effect of any changes in that method. Examples of related party transactions include transactions between (a) a parent company and its subsidiary; (b) subsidiaries of a common parent; (c) and entity and its principal owners; and (d) affiliates.

+ References

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+ Details