(180)

^[1]

(118)

^[1]

(163)

^[1]

Equity in (losses) earnings

^[1]

(18)

^[1]

(66)

^[1]

Timeshare strategy-impairment charges (non-operating)

^[1]

(138)

^[1]

INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES

551

(418)

694

(Provision) benefit for income taxes

(93)

^[1]

(350)

^[1]

INCOME (LOSS) FROM CONTINUING OPERATIONS

458

(353)

344

Discontinued operations, net of tax

NET INCOME (LOSS)

458

(353)

347

Add: Net losses attributable to noncontrolling interests, net of tax

NET INCOME (LOSS) ATTRIBUTABLE TO MARRIOTT

$ 458

$ (346)

$ 362

EARNINGS PER SHARE-Basic

Earnings (losses) from continuing operations attributable to Marriott shareholders

$ 1.26

^[2]

$ (0.97)

^[2]

$ 1.01

^[2]

Earnings from discontinued operations attributable to Marriott shareholders

$ 0.00

$ 0.01

Earnings (losses) per share attributable to Marriott shareholders

$ 1.26

$ (0.97)

$ 1.02

EARNINGS PER SHARE-Diluted

Earnings (losses) from continuing operations attributable to Marriott shareholders

$ 1.21

^[2]

$ (0.97)

^[2]

$ 0.97

^[2]

Earnings from discontinued operations attributable to Marriott shareholders

$ 0.00

$ 0.01

Earnings (losses) per share attributable to Marriott shareholders

$ 1.21

$ (0.97)

$ 0.98

CASH DIVIDENDS DECLARED PER SHARE

$ 0.2075

$ 0.0866

$ 0.3339

[1]	See Footnote No. 22, "Related Party Transactions," of the Notes to Consolidated Financial Statements for disclosure of related party amounts.
[2]	See Footnote No. 6, "Earnings Per Share," of the Notes to Consolidated Financial Statements for income from continuing operations attributable to Marriott used to calculate earnings from continuing operations per share attributable to Marriott shareholders.

CONSOLIDATED BALANCE SHEETS (USD $)
In Millions, unless otherwise specified

Dec. 31, 2010

Jan. 01, 2010

Current assets

Cash and equivalents (including from VIEs of $0 and $6, respectively)

$ 505

$ 115

Accounts and notes receivable (including from VIEs of $125 and $3, respectively)

938

^[1]

838

^[1]

Inventory (including from VIEs of $0 and $96, respectively)

1,489

1,444

Current deferred taxes, net

246

255

Prepaid expenses

Other (including from VIEs of $31 and $0, respectively)

123

131

Assets, Current, Total

3,382

2,851

Property and equipment

1,307

1,362

Intangible assets

Goodwill

875

Contract acquisition costs

768

^[1]

731

^[1]

Goodwill And Intangible Assets, Net, Total

1,643

1,606

Equity and cost method investments

250

^[1]

249

^[1]

Notes receivable (including from VIEs of $911 and $0, respectively)

1,264

^[1]

452

^[1]

Deferred taxes, net

932

^[1]

1,020

^[1]

Other (including from VIEs of $14 and $0, respectively)

205

393

Current portion of long-term debt (including from VIEs of $126 and $2, respectively)

8,983

7,933

Current liabilities

138

Accounts payable

634

^[1]

562

^[1]

Accrued payroll and benefits

692

519

Liability for guest loyalty program

486

454

Other (including from VIEs of $3 and $7, respectively)

551

^[1]

688

^[1]

Liabilities, Current, Total

2,501

2,287

Long-term debt (including from VIEs of $891 and $3, respectively)

2,691

2,234

Liability for guest loyalty program

1,313

1,193

Other long-term liabilities

893

^[1]

1,077

^[1]

Marriott shareholders' equity

Class A Common Stock

Additional paid-in-capital

3,644

3,585

Retained earnings

3,286

3,103

Treasury stock, at cost

(5,348)

(5,564)

Accumulated other comprehensive (loss) income

(2)

Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Total

1,585

1,142

Liabilities and Stockholders' Equity, Total

$ 8,983

$ 7,933

[1]	See Footnote No. 22, "Related Party Transactions," of the Notes to Consolidated Financial Statements for disclosure of related party amounts.

CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $)
In Millions, unless otherwise specified

Dec. 31, 2010

Jan. 01, 2010

Cash and equivalents

$ 505

$ 115

Accounts and notes receivable

938

^[1]

838

^[1]

Inventory

1,489

1,444

123

131

1,264

^[1]

452

^[1]

205

393

138

551

^[1]

688

^[1]

Accounts and notes receivable

2,691

2,234

Variable Interest Entity, Primary Beneficiary

Cash and equivalents

125

911

126

$ 891

$ 3

[1]	See Footnote No. 22, "Related Party Transactions," of the Notes to Consolidated Financial Statements for disclosure of related party amounts.

Includes currency on hand as well as demand deposits with banks or financial institutions. It also includes other kinds of accounts that have the general characteristics of demand deposits in that the Entity may deposit additional funds at any time and also effectively may withdraw funds at any time without prior notice or penalty. Cash equivalents, excluding items classified as marketable securities, include short-term, highly liquid investments that are both readily convertible to known amounts of cash, and so near their maturity that they present minimal risk of changes in value because of changes in interest rates. Generally, only investments with original maturities of three months or less qualify under that definition. Original maturity means original maturity to the entity holding the investment. For example, both a three-month US Treasury bill and a three-year Treasury note purchased three months from maturity qualify as cash equivalents. However, a Treasury note purchased three years ago does not become a cash equivalent when its remaining maturity is three months. Compensating balance arrangements that do not legally restrict the withdrawal or usage of cash amounts may be reported as Cash and Cash Equivalents, while legally restricted deposits held as compensating balances against borrowing arrangements, contracts entered into with others, or company statements of intention with regard to particular deposits should not be reported as cash and cash equivalents.

+ References+ Details

CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2010	Jan. 01, 2010	Jan. 02, 2009
OPERATING ACTIVITIES
Net income (loss)	$ 458	$ (353)	$ 347
Adjustments to reconcile to cash provided by operating activities:
Depreciation and Amortization	178	185	190
Income taxes	(27)	(167)	101
Timeshare activity, net	216	146	(398)
Timeshare strategy-impairment charges	0	752	0
Liability for guest loyalty program	86	103	116
Restructuring costs, net	(11)	16	51
Asset impairments and write-offs	131	80	62
Working capital changes and other	120	106	172
Net cash provided by operating activities	1,151	868	641
INVESTING ACTIVITIES
Capital expenditures	(307)	(147)	(357)
Dispositions	114	2	38
Loan advances	(24)	(65)	(53)
Loan collections and sales	18	20	36
Equity and cost method investments	(29)	(28)	(25)
Contract acquisition costs	(56)	(39)	(133)
Sale of available-for-sale securities	0	16	22
Partial surrender of life insurance policy cash value	0	97	0
Other	20	75	(11)
Net cash used in investing activities	(264)	(69)	(483)
FINANCING ACTIVITIES
Commercial paper/credit facility, net	(425)	(544)	384
Issuance of long-term debt	215	0	17
Repayment of long-term debt	(385)	(238)	(275)
Issuance of Class A Common Stock	198	27	51
Dividends paid	(43)	(63)	(115)
Purchase of treasury stock	(57)	0	(434)
Other	0	0	16
Net cash used in financing activities	(497)	(818)	(356)
INCREASE (DECREASE) IN CASH AND EQUIVALENTS	390	(19)	(198)
CASH AND EQUIVALENTS, beginning of year	115	134	332
CASH AND EQUIVALENTS, end of year	$ 505	$ 115	$ 134

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2010	Jan. 01, 2010	Jan. 02, 2009
Net income (loss)	$ 458	$ (353)	$ 347
Other comprehensive income (loss), net of tax:
Currency translation adjustments	(17)	24	(59)
Other derivative instrument adjustments	0	(6)	12
Unrealized gains (losses) on available-for-sale securities	0	6	(21)
Reclassification of losses	2	4	2
Total other comprehensive (loss) income, net of tax	(15)	28	(66)
Comprehensive income (loss)	443	(325)	281
Parent
Net income (loss)	458	(346)	362
Other comprehensive income (loss), net of tax:
Currency translation adjustments	(17)	24	(59)
Other derivative instrument adjustments	0	(6)	12
Unrealized gains (losses) on available-for-sale securities	0	6	(21)
Reclassification of losses	2	4	2
Total other comprehensive (loss) income, net of tax	(15)	28	(66)
Comprehensive income (loss)	443	(318)	296
Noncontrolling Interest
Net income (loss)	0	(7)	(15)
Other comprehensive income (loss), net of tax:
Currency translation adjustments	0	0	0
Other derivative instrument adjustments	0	0	0
Unrealized gains (losses) on available-for-sale securities	0	0	0
Reclassification of losses	0	0	0
Total other comprehensive (loss) income, net of tax	0	0	0
Comprehensive income (loss)	$ 0	$ (7)	$ (15)

Net of tax effect change in accumulated gains and losses from derivative instruments designated and qualifying as the effective portion of cash flow hedges after taxes. A cash flow hedge is a hedge of the exposure to variability in the cash flows of a recognized asset or liability or a forecasted transaction that is attributable to a particular risk. The change includes an entity's share of an equity investee's increase (decrease) in deferred hedging gains or losses.

+ References+ Details

Beginning Balance at Dec. 28, 2007

Appreciation or loss in value (before reclassification adjustment) of the total of unsold securities during the period being reported on, net of tax. Reclassification adjustments include: (1) the unrealized holding gain or loss, net of tax, at the date of the transfer for a debt security from the held-to-maturity category transferred into the available-for-sale category. Also includes the unrealized gain or loss at the date of transfer for a debt security from the available-for-sale category transferred into the held-to-maturity category; (2) the unrealized gains or losses realized upon the sale of securities, after tax; and (3) the unrealized gains or losses realized upon the write-down of securities, after tax.

+ References+ Details

CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (USD $)
In Millions

Total

Class A Common Stock

Additional Paid-in-Capital

Retained Earnings

Treasury Stock, at Cost

Accumulated Other Comprehensive Income (Loss)

Equity Attributable to Noncontrolling Interests

$ 1,462

$ 5

$ 3,531

$ 3,332

$ (5,490)

$ 51

$ 33

Beginning Balance at Dec. 28, 2007

360.9

Opening balance, as adjusted for accounting changes

360.9

4.4

Impact of adoption of ASC 360-20-40

(11.9)

^[1],[2]

(3)

Opening balance, as adjusted for accounting changes

1,459

3,531

3,329

(5,490)

Net income (loss)

347

362

(15)

Other comprehensive (loss) Income

(66)

Dividends

(118)

147

(8)

(7)

Ending Balance at Jan. 02, 2009

(371)

1,391

3,590

3,565

(5,765)

(15)

Ending Balance at Jan. 02, 2009

353.4

4.8

Other comprehensive (loss) Income

Net income (loss)

(353)

(346)

(7)

Dividends

(33)

(125)

113

(5)

109

(4)

Ending Balance at Jan. 01, 2010

1,142

3,585

3,103

(5,564)

Ending Balance at Jan. 01, 2010

358.2

Opening balance, as adjusted for accounting changes

358.2

10.2

Impact of adoption of ASU 2009-16 and ASU 2009-17

(1.5)

^[1]

(146)

Opening balance, as adjusted for accounting changes

996

3,585

2,957

(5,564)

Net income (loss)

458

Other comprehensive (loss) Income

(15)

Dividends

(76)

279

(53)

273

Ending Balance at Dec. 31, 2010

(57)

$ 1,585

$ 5

$ 3,644

$ 3,286

$ (5,348)

$ (2)

$ 0

Ending Balance at Dec. 31, 2010

366.9

[1]	The abbreviation ASC means Accounting Standards Codification, and the abbreviation ASU means Accounting Standards Update.
[2]	This was previously Emerging Issues Task Force Issue No. ("EITF") 06-8 and was updated with referencing to the ASC.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

12 Months Ended

Dec. 31, 2010

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

1.	SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation

The consolidated financial statements present the results of operations, financial position, and cash flows of Marriott International, Inc. (“Marriott,” and together with its subsidiaries “we,” “us,” or the “Company”). In order to make this report easier to read, we refer throughout to (i) our Consolidated Financial Statements as our “Financial Statements,” (ii) our Consolidated Statements of Income as our “Income Statements,” our Consolidated Balance Sheets as our “Balance Sheets,” (iii) our properties, brands or markets in the continental United States and Canada as “North America” or “North American,” (iv) our properties, brands or markets outside of the continental United States and Canada as “international,” and (v) Accounting Standards Update No. 2009-16, “Transfers and Servicing (Topic 860): Accounting for Transfers of Financial Assets” (“ASU No. 2009-16”) and Accounting Standards Update No. 2009-17, “Consolidations (Topic 810): Improvements to Financial Reporting by Enterprises Involved with Variable Interest Entities” (“ASU No. 2009-17”) both of which we adopted on the first day of 2010 as the “new Transfers of Financial Assets and Consolidation standards.”

In accordance with the guidance for noncontrolling interests in consolidated financial statements, references in this report to our earnings per share, net income, and shareholders’ equity attributable to Marriott do not include noncontrolling interests (previously known as minority interests), which we report separately.

The preparation of financial statements in conformity with U.S. generally accepted accounting principles (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the financial statements, the reported amounts of revenues and expenses during the reporting periods, and the disclosures of contingent liabilities. Accordingly, ultimate results could differ from those estimates.

Because we permanently shut down our synthetic fuel business in 2007, we segregated the balances and activities of our synthetic fuel reportable segment and report them as discontinued operations for all periods presented.

In our opinion, the accompanying consolidated financial statements reflect all normal and recurring adjustments necessary to present fairly our financial position at fiscal year-end 2010 and fiscal year-end 2009 and the results of our operations and cash flows for fiscal years 2010, 2009, and 2008. We have eliminated all material intercompany transactions and balances between entities consolidated in these financial statements. We have also reclassified certain prior year amounts to conform to our 2010 presentation.

Adoption of New Accounting Standards Resulting in Consolidation of Special Purpose Entities

On January 2, 2010, the first day of the 2010 fiscal year, we adopted the new Transfers of Financial Assets and Consolidation standards (which were originally known as Financial Accounting Standards Nos. 166 and 167).

We use certain special purpose entities to securitize Timeshare segment notes receivables, which prior to our adoption of these new standards we treated as off-balance sheet entities. We retain the servicing rights and varying subordinated interests in the securitized notes. Pursuant to GAAP in effect prior to the 2010 fiscal year, we did not consolidate these special purpose entities in our financial statements because the securitization transactions qualified as sales of financial assets.

As a result of adopting the new Transfers of Financial Assets and Consolidation standards on the first day of 2010, we consolidated 13 existing qualifying special purpose entities associated with past securitization transactions. We recorded a one-time non-cash pretax reduction to shareholders’ equity of $238 million in 2010, representing the cumulative effect of a change in accounting principle. Including the related $92 million decrease in deferred tax liabilities, the after-tax reduction to shareholders’ equity totaled $146 million. The one-time non-cash after-tax reduction to shareholders’ equity was approximately $41 million greater than we had estimated for this charge, as disclosed in our 2009 Form 10-K, primarily due to increased notes receivable reserves recorded for the newly consolidated notes receivable. This increase in reserves was due to a change in estimate of uncollectible accounts based on historical experience. We now reserve for 100 percent of notes that are in default in addition to the reserve we record on the remaining notes.

We recorded the cumulative effect of the adoption of these standards to our financial statements in 2010. This consisted primarily of reestablishing the notes receivable (net of reserves) that we had transferred to special purpose entities as a result of the securitization transactions, eliminating residual interests that we initially recorded in connection with those transactions (and subsequently revalued on a periodic basis), the impact of recording debt obligations associated with third-party interests held in the special purpose entities, and related adjustments to inventory balances accounted for using the relative sales value method. We adjusted the inventory balance to include anticipated future revenue from the resale of inventory that we expect to acquire when we foreclose on defaulted notes.

Adopting these topics had the following impacts on our Balance Sheet at January 2, 2010: (1) assets increased by $970 million, primarily representing the consolidation of notes receivable (and corresponding reserves) partially offset by the elimination of our retained interests; (2) liabilities increased by $1,116 million, primarily representing the consolidation of debt obligations associated with third party interests; and (3) shareholders’ equity decreased by approximately $146 million. Adopting these topics also impacted our 2010 Income Statement by increasing interest income (reflected in Timeshare sales and services revenue) from securitized notes and increasing interest expense from consolidation of debt obligations, partially offset by the absence of accretion income on residual interests that were eliminated. We do not expect to recognize gains or losses from future securitizations of our timeshare notes as a result of the adoption of these topics. Our adoption of these topics on January 2, 2010 did not have a significant impact on our Consolidated Statement of Cash Flow because the resulting increase in assets and liabilities was primarily non-cash.

Please also see the parenthetical disclosures on our Balance Sheets that show the amounts of consolidated assets and liabilities associated with variable interest entities (including those associated with our Timeshare segment securitizations) that we consolidated. Also see the “New Accounting Standards” caption later in this footnote for additional information regarding ASU Nos. 2009-16 and 2009-17.

Fiscal Year

Our fiscal year ends on the Friday nearest to December 31. The fiscal years in the following table encompass a 52-week period, except for 2002 and 2008, which both encompass a 53-week period. Unless otherwise specified, each reference to a particular year in this Form 10-K means the fiscal year ended on the date shown in the following table, rather than the corresponding calendar year:


Fiscal Year	Fiscal Year-End Date	Fiscal Year	Fiscal Year-End Date
2010	December 31, 2010	2005	December 30, 2005
2009	January 1, 2010	2004	December 31, 2004
2008	January 2, 2009	2003	January 2, 2004
2007	December 28, 2007	2002	January 3, 2003
2006	December 29, 2006	2001	December 28, 2001

Revenue Recognition

Our revenues include: (1) base management and incentive management fees; (2) franchise fees; (3) revenues from lodging properties owned or leased by us; (4) timeshare sales and services, which also includes resort rental revenue, interest income associated with our “Loans to timeshare owners,” Timeshare segment note securitization gains, and revenue from our points-based use system; and (5) cost reimbursements. Management fees comprise a base fee, which is a percentage of the revenues of hotels, and an incentive fee, which is generally based on hotel profitability. Franchise fees comprise initial application fees and continuing royalties generated from our franchise programs, which permit the hotel owners and operators to use certain of our brand names. Cost reimbursements include direct and indirect costs that are reimbursed to us by lodging properties that we manage or franchise.

Base Management and Incentive Management Fees: We recognize base management fees as revenue when earned in accordance with the contract. In interim periods and at year-end, we recognize incentive management fees that would be due as if the contract were to terminate at that date, exclusive of any termination fees payable or receivable by us.

Franchise Fee Revenue: We recognize franchise fees as revenue in each accounting period as fees are earned from the franchisee.

Owned and Leased Units: We recognize room sales and revenues from other guest services for our owned and leased units when rooms are occupied and services have been rendered.

Timeshare and Fractional Intervals and Condominiums: We recognize sales when: (1) we have received a minimum of ten percent of the purchase price; (2) the purchaser’s period to cancel for a refund has expired; (3) we deem the receivables to be collectible; and (4) we have attained certain minimum sales and construction levels. We defer all revenue using the deposit method for sales that do not meet all four of these criteria. For sales that do not qualify for full revenue recognition as the project has progressed beyond the preliminary stages but has not yet reached completion, all revenue and profit are deferred and recognized in earnings using the percentage of completion method. Timeshare segment deferred revenue at year-end 2010 and 2009 was $56 million and $63 million, respectively.

Timeshare Points-Based Use System Revenue: As sales under this points-based use system are considered to be the sale of real estate, we recognize these sales when the criteria noted in the “Timeshare and Fractional Intervals and Condominiums” caption are met.

Timeshare Residential (Stand-Alone Structures): We recognize sales under the full accrual method of accounting when we receive our proceeds and transfer title at settlement.

Cost Reimbursements: We recognize cost reimbursements from managed, franchised, and timeshare properties when we incur the related reimbursable costs.

Other Revenue: Includes third-party licensing fees, branding fees for third party residential sales and credit card licensing, land rental income, and other revenue.

Ground Leases

We are both the lessor and lessee of land under long-term operating leases, which include scheduled increases in minimum rents. We recognize these scheduled rent increases on a straight-line basis over the initial lease term.

Real Estate Sales

We reduce gains on sales of real estate by the maximum exposure to loss if we have continuing involvement with the property and do not transfer substantially all of the risks and rewards of ownership. In sales transactions where we retain a management contract, the terms and conditions of the management contract are generally comparable to the terms and conditions of the management contracts obtained directly with third-party owners in competitive bid processes.

Profit Sharing Plan

We contribute to a profit sharing plan for the benefit of employees meeting certain eligibility requirements and electing participation in the plan. Contributions are determined based on a specified percentage of salary deferrals by participating employees. We recognized compensation costs from profit sharing of $86 million in 2010, $94 million in 2009, and $111 million in 2008.

Self-Insurance Programs

We are self-insured for certain levels of property, liability, workers’ compensation and employee medical coverage. We accrue estimated costs of these self-insurance programs at the present value of projected settlements for known and incurred but not reported claims. We use a discount rate of 2.0 percent to determine the present value of the projected settlements, which we consider to be reasonable given our history of settled claims, including payment patterns and the fixed nature of the individual settlements.

We are subject to a variety of assessments related to our insurance activities, including those by state guaranty funds and workers’ compensation second-injury funds. Our liabilities recorded for assessments are reflected within the amounts shown in our Balance Sheets on the other current liabilities line, are not discounted, and totaled $5 million at year-end 2010 and $4 million at year-end 2009. The $5 million liability for assessments as of year-end 2010 is expected to be paid by the end of 2011.

Our Rewards Programs

Marriott Rewards and The Ritz-Carlton Rewards are our frequent guest loyalty programs. Program members earn points based on their monetary spending at our lodging operations, purchases of timeshare interval, fractional ownership, and residential products and, to a lesser degree, through participation in affiliated partners’ programs, such as those offered by car rental and credit card companies. Points, which we track on members’ behalf, can be redeemed for stays at most of our lodging operations, airline tickets, airline frequent flyer program miles, rental cars, and a variety of other awards; however, points cannot be redeemed for cash. We provide Marriott Rewards and The Ritz-Carlton Rewards as marketing programs to participating properties, with the objective of operating the programs on a break-even basis to us. As members earn points at properties and other program partners, we sell the points for amounts that we expect will, in the aggregate, equal the costs of point redemptions and program operating costs over time.

We defer revenue received from managed, franchised, and Marriott-owned/leased hotels and program partners equal to the fair value of our future redemption obligation. We determine the fair value of the future redemption obligation based on statistical formulas that project timing of future point redemption based on historical levels, including an estimate of the “breakage” for points that will never be redeemed, and an estimate of the points that will eventually be redeemed. These judgment factors determine the required liability for outstanding points. Our rewards programs’ liability totaled $1,799 million and $1,647 million at year-end 2010 and 2009, respectively. A ten percent reduction in the estimate of “breakage” would have resulted in an estimated $90 million increase in the liability at year-end 2010.

Our management and franchise agreements require that we be reimbursed currently for the costs of operating the program, including marketing, promotion, communication with, and performing member services for rewards program members. Due to the requirement that properties reimburse us for program operating costs as incurred, we recognize the related cost reimbursements revenues from properties in connection with our rewards programs at the time such costs are incurred and expensed. We recognize the component of revenue from program partners that corresponds to program maintenance services over the expected life of the points awarded. Upon the redemption of points, we recognize as revenue the amounts previously deferred and recognize the corresponding expense relating to the costs of the awards redeemed.

Guarantees

We record a liability for the fair value of a guarantee on the date a guarantee is issued or modified. The offsetting entry depends on the circumstances in which the guarantee was issued. Funding under the guarantee reduces the recorded liability. When no funding is forecasted, the liability is amortized into income on a straight-line basis over the remaining term of the guarantee. On a quarterly basis, we evaluate all material estimated liabilities based on the operating results and the terms of the guarantee. If we conclude that it is probable that we will be required to fund a greater amount than previously estimated, we will record a loss unless the advance would be recoverable in the form of a loan.

Rebates and Allowances

We participate in various vendor rebate and allowance arrangements as a manager of hotel properties. There are three types of programs that are common in the hotel industry that are sometimes referred to as “rebates” or “allowances,” including unrestricted rebates, marketing (restricted) rebates and sponsorships. The primary business purpose of these arrangements is to secure favorable pricing for our hotel owners for various products and services or enhance resources for promotional campaigns co-sponsored by certain vendors. More specifically, unrestricted rebates are funds returned to the buyer, generally based upon volumes or quantities of goods purchased. Marketing (restricted) allowances are funds allocated by vendor agreements for certain marketing or other joint promotional initiatives. Sponsorships are funds paid by vendors, generally used by the vendor to gain exposure at meetings and events, which are accounted for as a reduction of the cost of the event.

We account for rebates and allowances as adjustments of the prices of the vendors’ products and services. We show vendor costs and the reimbursement of those costs as reimbursed costs and cost reimbursements revenue, respectively; therefore, rebates are reflected as a reduction of these line items.

Cash and Equivalents

We consider all highly liquid investments with an initial maturity of three months or less at date of purchase to be cash equivalents.

Restricted Cash

Restricted cash in our Balance Sheets at year-end 2010 and year-end 2009 is recorded as $55 million and $54 million, respectively, in the “Other current assets” line and $30 million and $22 million, respectively, in the “Other long-term assets” line. Restricted cash primarily consists of cash held in a reserve account related to Timeshare segment notes receivable securitizations; cash held internationally that we have not repatriated due to statutory, tax and currency risks; and deposits received, primarily associated with timeshare interval, fractional ownership, and residential sales that are held in escrow until the associated contract has closed.

Assets Held for Sale

We consider properties (other than Timeshare segment interval, fractional ownership, and residential products, which we classify as inventory) to be assets held for sale when all of the following criteria are met:

•

management commits to a plan to sell a property;

•

it is unlikely that the disposal plan will be significantly modified or discontinued;

•

the property is available for immediate sale in its present condition;

•

actions required to complete the sale of the property have been initiated;

•

sale of the property is probable and we expect the completed sale will occur within one year; and

•

the property is actively being marketed for sale at a price that is reasonable given its current market value.

Upon designation as an asset held for sale, we record the carrying value of each property at the lower of its carrying value or its estimated fair value, less estimated costs to sell, and we cease depreciation.

At year-end 2010 and 2009, we had no assets held for sale or liabilities related to assets held for sale.

Loan Loss Reserves

Senior, Mezzanine, and Other Loans

We make loans to owners of hotels that we operate or franchise, typically to facilitate the development of a hotel and sometimes to facilitate brand programs or initiatives. We expect the owners to repay the loans in accordance with the loan agreements, or earlier as the hotels mature and capital markets permit. We use metrics such as loan-to-value ratios, debt service coverage, collateral, etc., to assess the credit quality of the loan receivable upon entering into the loan agreement and on an ongoing basis as applicable.

On a regular basis, we individually assess all of these loans for impairment. Internally generated cash flow projections are used to determine if the loans are expected to be repaid according to the terms of the loan agreements. If it is probable that a loan will not be repaid in accordance with the loan agreement, we consider the loan impaired and begin recognizing interest income on a cash basis. To measure impairment, we calculate the present value of expected future cash flows discounted at the loan’s original effective interest rate or the estimated fair value of the collateral. If the present value or the estimated collateral is less than the carrying value of the loan receivable, we establish a specific impairment reserve for the difference.

If it is likely that a loan will not be collected based on financial or other business indicators, including our historical experience, it is our policy to charge off these loans in the quarter when it is deemed uncollectible.

Loans to Timeshare Owners

We record an estimate of expected uncollectibility on all notes receivable from timeshare purchasers as a reduction of revenue at the time we recognize profit on a timeshare sale. We fully reserve all defaulted notes in addition to recording a reserve on the estimated uncollectible portion of the remaining notes. For those notes not in default, we assess collectibility based on pools of receivables because we hold large numbers of homogeneous timeshare notes receivable. We estimate uncollectibles for the pool based on historical activity for similar timeshare notes receivable.

Although we consider loans to timeshare owners past due if we do not receive payment within 30 days of the due date, we suspend accrual of interest only on those that are over 90 days past due. We consider loans over 150 days past due to be in default. We apply payments we receive for loans on non-accrual status first to interest, then principal, and any remainder to fees. We resume accruing interest when loans are less than 90 days past due. We do not accept payments for notes during the foreclosure process unless the amount is sufficient to pay all principal, interest, fees and penalties owed and fully reinstate the note. We write uncollectible notes off against the reserve once we receive title through the foreclosure or deed-in-lieu process. At year-end 2010, we estimated an average remaining default rate of 9.25 percent for both non-securitized and securitized timeshare notes receivable. An increase of 0.5 percent in the estimated default rate would have resulted in an increase in our allowance for credit losses of $6 million.

For additional information on our notes receivable, including information on the related reserves, see Footnote No. 11, “Notes Receivable.”

Valuation of Goodwill

We evaluate the fair value of goodwill to assess potential impairments at the end of each fiscal year, or during the year if an event or other circumstance indicates that we may not be able to recover the carrying amount of the asset. In the first step of the review process, we compare the estimated fair value of the reporting unit with its carrying value. If the estimated fair value of the reporting unit exceeds its carrying amount, no further analysis is needed.

If the estimated fair value of the reporting unit is less than its carrying amount, we proceed to the second step of the review process to calculate the implied fair value of the reporting unit goodwill in order to determine whether any impairment is required. We calculate the implied fair value of the reporting unit goodwill by allocating the estimated fair value of the reporting unit to all of the assets and liabilities of the reporting unit as if the reporting unit had been acquired in a business combination. If the carrying value of the reporting unit’s goodwill exceeds the implied fair value of the goodwill, we recognize an impairment loss for that excess amount. In allocating the estimated fair value of the reporting unit to all of the assets and liabilities of the reporting unit, we use industry and market data, as well as knowledge of the industry and our past experiences.

We base our calculation of the estimated fair value of a reporting unit on the income approach. For the income approach, we use internally developed discounted cash flow models that include, among others, the following assumptions: projections of revenues and expenses and related cash flows based on assumed long-term growth rates and demand trends; expected future investments to grow new units; and estimated discount rates. We base these assumptions on our historical data and experience, third-party appraisals, industry projections, micro and macro general economic condition projections, and our expectations.

We have not recorded a goodwill impairment charge in the last three fiscal years, and at year-end 2010, the estimated fair value of each of our reporting units’ exceeded its’ respective carrying amount by more than 100 percent based on our models and assumptions.

For additional information related to goodwill, including the amounts of goodwill by segment, see Footnote No. 17, “Business Segments.”

Investments

We consolidate entities that we control. We account for investments in joint ventures using the equity method of accounting when we exercise significant influence over the venture. If we do not exercise significant influence, we account for the investment using the cost method of accounting. We account for investments in limited partnerships and limited liability companies using the equity method of accounting when we own more than a minimal investment. Our ownership interest in these equity method investments varies generally from 10 percent to 49 percent.

The fair value of our available-for-sale securities totaled $18 million and $18 million at year-end 2010 and year-end 2009, respectively. The amount of net losses reclassified out of accumulated other comprehensive income as a result of the sale of available-for-sale securities totaled zero and ($4) million for 2010 and 2009, respectively. We determined the cost basis of the securities sold using specific identification.

Costs Incurred to Sell Real Estate Projects

We charge the majority of sales and marketing costs we incur to sell timeshares to expense when incurred. Deferred selling and marketing costs were $6 million at year-end 2010 and $5 million at year-end 2009 and are included in the accompanying Balance Sheets in the “Other” caption within the “Current assets” section. If a contract is canceled, we charge unrecoverable direct selling and marketing costs to expense and record deposits forfeited as income.

Valuation of Intangibles and Long-Lived Assets

We test intangibles and long-lived asset groups for recoverability when changes in circumstances indicate the carrying value may not be recoverable, for example, when there are material adverse changes in projected revenues or expenses, significant underperformance relative to historical or projected operating results, and significant negative industry or economic trends. We also perform a test for recoverability when management has committed to a plan to sell or otherwise dispose of an asset group and the plan is expected to be completed within a year. We evaluate recoverability of an asset group by comparing its carrying value to the future net undiscounted cash flows that we expect will be generated by the asset group. If the comparison indicates that the carrying value of an asset group is not recoverable, we recognize an impairment loss for the excess of carrying value over the estimated fair value. When an impairment loss is recognized for assets to be held and used, we depreciate the adjusted carrying amount of those assets over their remaining useful life.

We base our calculations of the estimated fair value of an intangible asset or asset group on the income approach or the market approach. The assumptions and methodology we utilize for the income approach are the same as those described in the “Valuation of Goodwill” caption. For the market approach, we use internal analyses based primarily on market comparables and assumptions about market capitalization rates, growth rates, and inflation.

For information on impairment losses that we recorded in 2009 and 2008 associated with intangibles and long-lived assets, see Footnote No. 20, “Timeshare Strategy-Impairment Charges” and Footnote No. 21, “Restructuring Costs and Other Charges” of the Notes to the Financial Statements in our 2009 Form 10-K. For information on impairment losses that we recorded in 2010 associated with long-lived assets, see Footnote No. 8, “Property and Equipment.”

Valuation of Investments in Ventures

We sometimes hold a minority equity interest in ventures established to develop timeshare interval, fractional ownership and residential properties or to develop or acquire and own hotel properties. These ventures are generally limited liability companies or limited partnerships, and our equity interest in these ventures generally ranges from 10 percent to 49 percent.

We evaluate an investment in a venture for impairment when circumstances indicate that the carrying value may not be recoverable, for example due to loan defaults, significant under performance relative to historical or projected operating performance and significant negative industry or economic trends.

We impair investments accounted for using the equity and cost methods of accounting when we determine that there has been an “other than temporary” decline in the estimated fair value as compared to the carrying value, of the venture. Additionally, a commitment to a plan to sell some or all of the assets in a venture could cause a recoverability evaluation for the individual long-lived assets in the venture and possibly the venture itself.

We calculate the estimated fair value of an investment in a venture using either a market approach or an income approach. The assumptions and methodology we utilize for the income approach are the same as those described in the “Valuation of Goodwill” caption. For the market approach, we use internal analyses based primarily on market comparables and assumptions about market capitalization rates, growth rates, and inflation.

For information regarding impairment losses that we recorded in 2009 and 2008 associated with investments in ventures, see Footnote No. 20, “Timeshare Strategy-Impairment Charges” and Footnote No. 21, “Restructuring Costs and Other Charges” in the Notes to the Financial Statements in our 2009 Form 10-K.

Timeshare Segment Residual Interests

We periodically securitize notes receivable originated by our Timeshare segment. We continue to service the notes after securitization, and we retain servicing assets and other interests in the notes. Historically, we accounted for these residual interests, including the servicing assets, as trading securities under the then-applicable standards for accounting for certain investments in debt and equity securities. At the dates of sale and at the end of each reporting period, we estimated the fair value of our residual interests using a Level 3 discounted cash flow model.

For additional information, including the elimination of our residual interests upon adoption of the new Transfers of Financial Assets and Consolidation standards, see the “Adoption of New Accounting Standards Resulting in Consolidation of Special Purpose Entities” caption of this footnote, Footnote No. 5, “Fair Value of Financial Instruments,” and Footnote No. 12, “Asset Securitizations.”

Fair Value Measurements

We have various financial instruments we must measure at fair value on a recurring basis, including certain marketable securities and derivatives. See Footnote No. 5, “Fair Value of Financial Instruments,” for further information. We also apply the provisions of fair value measurement to various non-recurring measurements for our financial and non-financial assets and liabilities.

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (an exit price). We measure our assets and liabilities using inputs from the following three levels of the fair value hierarchy:

Level 1 inputs are unadjusted quoted prices in active markets for identical assets or liabilities that we have the ability to access at the measurement date.

Level 2 inputs include quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability (i.e., interest rates, yield curves, etc.), and inputs that are derived principally from or corroborated by observable market data by correlation or other means (market corroborated inputs).

Level 3 includes unobservable inputs that reflect our assumptions about what factors market participants would use in pricing the asset or liability. We develop these inputs based on the best information available, including our own data.

Derivative Instruments

The designation of a derivative instrument as a hedge and its ability to meet the hedge accounting criteria determine how we reflect the change in fair value of the derivative instrument in our Financial Statements. A derivative qualifies for hedge accounting if, at inception, we expect the derivative to be highly effective in offsetting the underlying hedged cash flows or fair value and we fulfill the hedge documentation standards at the time we enter into the derivative contract. We designate a hedge as a cash flow hedge, fair value hedge, or a net investment in non-U.S. operations hedge based on the exposure we are hedging. The asset or liability value of the derivative will change in tandem with its fair value. For the effective portion of qualifying hedges, we record changes in fair value in other comprehensive income (“OCI”). We release the derivative’s gain or loss from OCI to match the timing of the underlying hedged items’ effect on earnings.

We review the effectiveness of our hedging instruments on a quarterly basis, recognize current period hedge ineffectiveness immediately in earnings, and discontinue hedge accounting for any hedge that we no longer consider to be highly effective. We recognize changes in fair value for derivatives not designated as hedges or those not qualifying for hedge accounting in current period earnings. Upon termination of cash flow hedges, we release gains and losses from OCI based on the timing of the underlying cash flows or revenue recognized, unless the termination results from the failure of the intended transaction to occur in the expected timeframe. Such untimely transactions require us to immediately recognize in earnings, gains and losses that we previously recorded in OCI.

Changes in interest rates, currency exchange rates, and equity securities expose us to market risk. We manage our exposure to these risks by monitoring available financing alternatives, as well as through development and application of credit granting policies. We also use derivative instruments, including cash flow hedges, net investment in non-U.S. operations hedges, fair value hedges, and other derivative instruments, as part of our overall strategy to manage our exposure to market risks. As a matter of policy, we only enter into transactions that we believe will be highly effective at offsetting the underlying risk, and we do not use derivatives for trading or speculative purposes. See Footnote No. 5, “Fair Value of Financial Instruments,” for additional information.

Non-U.S. Operations

The U.S. dollar is the functional currency of our consolidated and unconsolidated entities operating in the United States. The functional currency for our consolidated and unconsolidated entities operating outside of the United States is generally the currency of the primary economic environment in which the entity primarily generates and expends cash. For consolidated entities whose functional currency is not the U.S. dollar, we translate their financial statements into U.S. dollars, and we do the same, as needed, for unconsolidated entities whose functional currency is not the U.S. dollar. We translate assets and liabilities at the exchange rate in effect as of the financial statement date, and translate income statement accounts using the weighted average exchange rate for the period. We include translation adjustments from currency exchange and the effect of exchange rate changes on intercompany transactions of a long-term investment nature as a separate component of shareholders’ equity. We report gains and losses from currency exchange rate changes related to intercompany receivables and payables that are not of a long-term investment nature, as well as gains and losses from non-U.S. currency transactions, currently in operating costs and expenses, and those amounted to a loss of $7 million in 2010, a loss of less than $1 million in 2009, and a $6 million loss in 2008. Gains and other income for 2010 included $2 million attributable to currency translation adjustment losses, net of gains, from the sale or complete or substantially complete liquidation of investments. There were no similar gains or losses in 2008 and 2009.

Legal Contingencies

We are subject to various legal proceedings and claims, the outcomes of which are subject to significant uncertainty. We record an accrual for legal contingencies when we determine that it is probable that a liability has been incurred and the amount of the loss can be reasonably estimated. In making such determinations we evaluate, among other things, the degree of probability of an unfavorable outcome and, when it is probable that a liability has been incurred, our ability to make a reasonable estimate of the loss. We review these accruals each reporting period and make revisions based on changes in facts and circumstances.

Income Taxes

We record the amounts of taxes payable or refundable for the current year, as well as deferred tax liabilities and assets for the future tax consequences of events that we have recognized in our financial statements or tax returns. We use judgment in assessing future profitability and the likely future tax consequences of events that we have recognized in our financial statements or tax returns. We base our estimates of deferred tax assets and liabilities on current tax laws, rates and interpretations, and, in certain cases, business plans and other expectations about future outcomes. We develop our estimates of future profitability and based on our historical data and experience, industry projections, micro and macro general economic condition projections, and our expectations.

Changes in existing tax laws and rates, their related interpretations, as well as the uncertainty generated by the current economic environment may affect the amounts of deferred tax liabilities or the valuations of deferred tax assets over time. Our accounting for deferred tax consequences represents management’s best estimate of future events that can be appropriately reflected in the accounting estimates.

For tax positions we have taken or expect to take in a tax return, we apply a more likely than not threshold, under which we must conclude a tax position is more likely than not to be sustained, assuming that the position will be examined by the appropriate taxing authority that has full knowledge of all relevant information, in order to continue to recognize the benefit. In determining our provision for income taxes, we use judgment, reflecting our estimates and assumptions, in applying the more likely than not threshold.

For information about income taxes and deferred tax assets and liabilities, see Footnote No. 2, “Income Taxes.”

New Accounting Standards

New Transfers of Financial Assets and Consolidation Standards

On the first day of 2010, we adopted ASU No. 2009-16, which amended Topic 860, “Transfers and Servicing,” by: (1) eliminating the concept of a qualifying special-purpose entity (“QSPE”); (2) clarifying and amending the criteria for a transfer to be accounted for as a sale; (3) amending and clarifying the unit of account eligible for sale accounting; and (4) requiring that a transferor initially measure at fair value and recognize all assets obtained (for example beneficial interests) and liabilities incurred as a result of a transfer of an entire financial asset or group of financial assets accounted for as a sale. In addition, this topic requires us to evaluate entities for consolidation that had been treated as QSPEs under previous accounting guidance. The topic also mandates that we supplement our disclosures about, among other things, our continuing involvement with transfers of financial assets previously accounted for as sales, the inherent risks in our retained financial assets, and the nature and financial effect of restrictions on the assets that we continue to report in our Balance Sheet.

We also adopted ASU No. 2009-17 on the first day of 2010, which changed the consolidation guidance applicable to variable interest entities (“VIEs”). This topic also amended the guidance on determination of whether an enterprise is the primary beneficiary of a VIE, and is, therefore, required to consolidate an entity, by requiring a qualitative, rather than the prior quantitative, analysis of the VIE. The new qualitative analysis includes, among other things, consideration of who has the power to direct those activities that most significantly impact the entity’s economic performance and who has the obligation to absorb losses or the right to receive benefits of the VIE that could potentially be significant to the VIE. This topic also mandates that an enterprise continually reassess whether it is the primary beneficiary of a VIE, in contrast to the prior standard that required the primary beneficiary only be reassessed when specific events occurred. This topic now also expressly applies to QSPEs, which were previously exempt, and requires additional disclosures about an enterprise’s involvement with a VIE.

Accounting Standards Update No. 2009-13 “Revenue Recognition (Topic 605): Multiple-Deliverable Revenue Arrangements” (“ASU No. 2009-13”)

We adopted ASU No. 2009-13 in the 2010 third quarter as required by the guidance and applied it retrospectively to the first day of 2010. ASU No. 2009-13 addresses the accounting for multiple-deliverable arrangements (complex contracts or related contracts that require the separate delivery of multiple goods and/or services) by expanding the circumstances in which vendors may account for deliverables separately rather than as a combined unit. This update clarifies the guidance on how to separate such deliverables and how to measure and allocate consideration for these arrangements to one or more units of accounting. The previous guidance required a vendor to use vendor-specific objective evidence or third-party evidence of selling price to separate deliverables in multiple-deliverable arrangements. In addition to retaining this guidance, in situations where vendor-specific objective evidence or third-party evidence is not available, ASU No. 2009-13 requires a vendor to allocate arrangement consideration to each deliverable in multiple-deliverable arrangements based on each deliverable’s relative selling price. Our adoption did not have a material impact on our financial statements, and we do not expect it will have a material effect on our financial statements in future periods.

Accounting Standards Update No. 2010-06 “Fair Value Measurements and Disclosures (Topic 820): Improving Disclosures about Fair Value Measurements” (“ASU No. 2010-06”)

We adopted certain provisions of ASU No. 2010-06 in the 2010 first quarter. Those provisions amended Subtopic 820-10, “Fair Value Measurements and Disclosures – Overall,” by requiring additional disclosures for transfers in and out of Level 1 and Level 2 fair value measurements, as well as requiring fair value measurement disclosures for each “class” of assets and liabilities, a subset of the captions in our Balance Sheets. Our adoption did not have a material impact on our financial statements or disclosures, as we had no transfers between Level 1 and Level 2 fair value measurements and no material classes of assets and liabilities that required additional disclosure. See “Future Adoption of Accounting Standards” for the provisions of this topic that apply to future periods.

Accounting Standards Update No. 2010-09 “Subsequent Events (Topic 855): Amendments to Certain Recognition and Disclosure Requirements” (“ASU No. 2010-09”)

We adopted ASU No. 2010-09 in the 2010 first quarter. ASU No. 2010-09 amended Subtopic 855-10, “Subsequent Events – Overall,” by removing the requirement for a United States Securities and Exchange Commission (“SEC”) registrant to disclose a date, in both issued and revised financial statements, through which that filer had evaluated subsequent events. Accordingly, we removed the related disclosure from the “Basis of Presentation” caption of Footnote No. 1, “Summary of Significant Accounting Policies.” Our adoption did not have a material impact on our financial statements.

Accounting Standards Update No. 2010-20 “Receivables (Topic 310): Disclosures about the Credit Quality of Financing Receivables and the Allowance for Credit Losses” (“ASU No. 2010-20”)

We adopted ASU No. 2010-20 in the 2010 fourth quarter. ASU No. 2010-20 amends existing guidance by requiring more robust and disaggregated disclosures by an entity about the credit quality of its financing receivables and its allowance for credit losses. These disclosures provide financial statement users with additional information about the nature of credit risks inherent in our financing receivables, how we analyze and assess credit risk in determining our allowance for credit losses, and the reasons for any changes we may make in our allowance for credit losses. Our adoption of this update primarily resulted in increased notes receivable disclosures (see Footnote No. 11, “Notes Receivable”), but did not have any other impact on our financial statements.

Future Adoption of Accounting Standards

ASU No. 2010-06 – Provisions Effective in the 2011 First Quarter

Certain provisions of ASU No. 2010-06 are effective for fiscal years beginning after December 15, 2010, which for us will be our 2011 first quarter. Those provisions, which amended Subtopic 820-10, will require us to present as separate line items all purchases, sales, issuances, and settlements of financial instruments valued using significant unobservable inputs (Level 3) in the reconciliation of fair value measurements, in contrast to the current aggregate presentation as a single line item. Although this may change the appearance of our fair value reconciliations, we do not believe the adoption will have a material impact on our financial statements or disclosures.

INCOME TAXES

12 Months Ended

Dec. 31, 2010

INCOME TAXES

2.	INCOME TAXES

Our (provision for)/benefit from income taxes consists of:


*($ in millions)*	2010			2009			2008
Current -U.S. Federal	$	117		$	(169	)	$	(275	)
-U.S. State		(7	)		(12	)		(40	)
-Non-U.S.		(51	)		(61	)		(85	)

		59			(242	)		(400	)

Deferred -U.S. Federal		(150	)		234			7
-U.S. State		(14	)		28			8
-Non-U.S.		12			45			35

		(152	)		307			50

	$	(93	)	$	65		$	(350	)

Our current tax provision does not reflect the benefits (costs) attributable to us for the exercise or vesting of employee share-based awards of $51 million in 2010, $(8) million in 2009, and $21 million in 2008. The preceding table includes tax credits of $2 million in 2010, $2 million in 2009, and $9 million in 2008. The taxes applicable to other comprehensive income are not material.

We have made no provision for U.S. income taxes or additional non-U.S. taxes on the cumulative unremitted earnings of non-U.S. subsidiaries ($861 million as of year-end 2010) because we consider these earnings to be permanently invested. These earnings could become subject to additional taxes if remitted as dividends, loaned to us or a U.S. affiliate or if we sold our interests in the affiliates. We cannot practically estimate the amount of additional taxes that might be payable on the unremitted earnings.

We conduct business in countries that grant “holidays” from income taxes for 5- to 30- year periods. These holidays expire through 2034. Without these tax “holidays,” we would have incurred the following aggregate income taxes and related earnings per share impacts: $7 million ($0.02 per diluted share) in 2010; $4 million ($0.01 per diluted share) in 2009; and $11 million ($0.03 per diluted share) in 2008.

We file income tax returns, including returns for our subsidiaries, in various jurisdictions around the world. We filed an Internal Revenue Service (“IRS”) refund claim relating to 2000 and 2001 for certain software development costs. The IRS disallowed the claims, and in July 2009, we protested the disallowance. This issue is pending in the IRS Appeals Division.

In the 2010 fourth quarter, we reached a settlement with the IRS Appeals Division resolving all issues that arose in the audit of tax years 2005 through 2008. This settlement resulted in an $85 million decrease in our tax expense for 2010 due to the release of tax liabilities we had previously established for the treatment of funds we received from non-U.S. subsidiaries. Additionally, our 2010 income tax expense reflected a $12 million benefit we recorded primarily associated with revisions to estimates of prior years’ foreign income tax expenses.

In 2009 and 2008, we recorded an income tax expense of $52 million and $24 million, respectively, primarily related to the treatment of funds received from non-U.S. subsidiaries. This issue has been settled as noted above. In addition, we recorded a $19 million tax expense in 2008 due primarily to prior years’ tax adjustments, including a settlement with the IRS that resulted in a lower than expected refund of taxes associated with a 1995 leasing transaction. The settlement resulted in a $26 million tax refund, which we received during 2008. In 2008 we also recorded a $29 million income tax expense primarily related to an unfavorable U.S. Court of Federal Claims decision involving a refund claim associated with a 1994 tax planning transaction. The tax had been paid, and the issue is now closed.

With the exception of the refund claim for 2000 and 2001, the IRS has examined our federal income tax returns, and we have settled all issues for tax years through 2008. We participated in the IRS Compliance Assurance Program (“CAP”) for the 2010 and 2009 tax years and also expect to participate for 2011. This program accelerates the examination of key transactions with the goal of resolving any issues before the tax return is filed. Various income tax returns are also under examination by foreign, state and local taxing authorities.

Our total unrecognized tax benefits were $39 million at year-end 2010, $249 million at year-end 2009, and $141 million at year-end 2008. Our unrecognized tax benefit reflects the following 2010, 2009, and 2008 changes: in 2010 a decrease of $210 million, primarily reflecting the settlement with IRS Appeals of the 2005-2008 tax years; in 2009 an increase of $108 million; primarily representing an increase for the non-U.S. subsidiaries issue due to our then current exposure, and in 2008 an increase of $97 million; primarily representing an increase for the treatment of funds received from non-U.S. subsidiaries as well as a 1994 tax planning transaction issue and a decrease of $88 million, primarily representing the settlement of a 1995 leasing transaction.

As a large taxpayer, we are under continual audit by the IRS and other taxing authorities. Although we do not anticipate that a significant impact to our unrecognized tax benefit balance will occur during the next 52 weeks as a result of these audits, it remains possible that the amount of our liability for unrecognized tax benefits could change over that time period.

Our unrecognized tax benefit balances included $26 million at year-end 2010, $136 million at year-end 2009, and $87 million at year-end 2008 of tax positions that, if recognized, would impact our effective tax rate.

The following table reconciles our unrecognized tax benefit balance for each year from the beginning of 2008 to the end of 2010:


*($ in millions)*	Amount
Unrecognized tax benefit at beginning of 2008	$	132
Change attributable to tax positions taken during a prior period		92
Change attributable to tax positions taken during the current period		5
Decrease attributable to settlements with taxing authorities		(86	)
Decrease attributable to lapse of statute of limitations		(2	)

Unrecognized tax benefit at end of 2008		141
Change attributable to tax positions taken during a prior period		99
Change attributable to tax positions taken during the current period		22
Decrease attributable to settlements with taxing authorities		(10	)
Decrease attributable to lapse of statute of limitations		(3	)

Unrecognized tax benefit at end of 2009		249
Change attributable to tax positions taken during a prior period		(187	)
Change attributable to tax positions taken during the current period		25
Decrease attributable to settlements with taxing authorities		(47	)
Decrease attributable to lapse of statute of limitations		(1	)

Unrecognized tax benefit at end of 2010	$	39

In accordance with our accounting policies, we recognize accrued interest and penalties related to our unrecognized tax benefits as a component of tax expense. Related interest expense totaled $2 million in 2010, $2 million in 2009, and $42 million in 2008. Accrued interest expense totaled $4 million in 2010, $28 million in 2009 and $29 million in 2008.

Deferred Income Taxes

Deferred income tax balances reflect the effects of temporary differences between the carrying amounts of assets and liabilities and their tax bases, as well as from net operating loss and tax credit carry-forwards. We state those balances at the enacted tax rates we expect will be in effect when taxes are actually paid or recovered. Deferred income tax assets represent amounts available to reduce income taxes we will pay on taxable income in future years. We evaluate our ability to realize these future tax deductions and credits by assessing whether we expect to have sufficient future taxable income from all sources, including reversal of taxable temporary differences, forecasted operating earnings and available tax planning strategies to utilize these future deductions and credits. We establish a valuation allowance when we no longer consider it more likely than not that a deferred tax asset will be realized.

Total deferred tax assets and liabilities as of year-end 2010 and year-end 2009, were as follows:


*($ in millions)*	2010			2009
Deferred tax assets	$	1,236		$	1,307
Deferred tax liabilities		(100	)		(70	)

Net deferred taxes	$	1,136		$	1,237

The following table details the composition of the net deferred tax balances at year-end 2010 and 2009.


*($ in millions)* Balance Sheet Caption	At Year-End 2010			At Year-End 2009
Current deferred taxes, net	$	246		$	255
Long-term deferred taxes, net		932			1,020
Current liabilities, other		(19	)		(18	)
Long-term liabilities, other		(23	)		(20	)

Net deferred taxes	$	1,136		$	1,237

The tax effect of each type of temporary difference and carry-forward that gives rise to a significant portion of our deferred tax assets and liabilities as of year-end 2010 and year-end 2009, were as follows:


*($ in millions)*	2010			2009
Self-insurance	$	22		$	15
Employee benefits		296			278
Deferred income		18			22
Reserves		213			185
Frequent guest program		104			115
Joint venture interests		99			148
ASC 740 deferred taxes ⁽¹⁾		5			99
Tax credits		235			223
Net operating loss carry-forwards		204			194
Timeshare financing		0			(23	)
Property, equipment, and intangible assets		18			(17	)
Other, net		(16	)		55

Deferred taxes		1,198			1,294
Less: valuation allowance		(62	)		(57	)

Net deferred taxes	$	1,136		$	1,237

⁽¹⁾	Primarily related to the treatment of funds received from certain non-U.S. subsidiaries, as discussed earlier in this footnote.

At year-end 2010, we had approximately $16 million of tax credits that expire through 2030 and $219 million of tax credits that do not expire. We claimed approximately $6 million of tax credits in 2008 (treating them as a reduction of 2008 Federal and state income taxes) associated with investment tax credits that arose in 2008. We accounted for these credits using the flow-through method. We recorded $21 million of net operating loss benefits in 2010 and $33 million in 2009. At year-end 2010, we had approximately $1.1 billion of net operating losses, of which $573 million expire through 2030.

Reconciliation of U.S. Federal Statutory Income Tax Rate to Actual Income Tax Rate

The following table reconciles the U.S. statutory tax rate to our effective income tax rate for continuing operations:


	2010			2009			2008
U.S. statutory tax rate		35.0	%		(35.0	)%		35.0	%
U.S. State income taxes, net of U.S. federal tax benefit		2.4			(2.1	)		2.6
Nondeductible expenses		0.5			0.5			0.6
Non-U.S. income		(3.7	)		5.2			(1.6	)
Audit activity ⁽¹⁾		(15.6	)		13.7			11.2
Company owned life insurance		0.0			(2.0	)		2.7
Change in valuation allowance		0.9			2.2			0.0
Tax credits		(0.4	)		(0.4	)		(1.2	)
Other, net		(2.3	)		2.3			1.1

Effective rate		16.8	%		(15.6	)%		50.4	%

⁽¹⁾	Primarily related to the treatment of funds received from certain non-U.S. subsidiaries, as discussed earlier in this footnote.

Cash paid for income taxes, net of refunds, was $68 million in 2010, $110 million in 2009, and $220 million in 2008.

DISCONTINUED OPERATIONS-SYNTHETIC FUEL

12 Months Ended

Dec. 31, 2010

DISCONTINUED OPERATIONS-SYNTHETIC FUEL

3.	DISCONTINUED OPERATIONS-SYNTHETIC FUEL

Prior to 2008 we operated four coal-based synthetic fuel production facilities. Because tax credits under Section 45K of the U.S. Internal Revenue Code (“IRC”) were not available for coal-based synthetic fuel produced or sold after calendar year-end 2007, we shut down the Facilities and permanently ceased production of synthetic fuel in late 2007. Accordingly, we now report this business as a discontinued operation.

The following tables provide additional income statement information relating to our discontinued synthetic fuel operations. The discontinued synthetic fuel operations reflected in our 2008 Income Statement only represent activity related to Marriott and there were no noncontrolling interests.

Income Statement Summary


*($ in millions)*	2010		2009		2008
Revenue	$	0	$	0	$	1


Operating loss	$	0	$	0	$	(4	)

Loss from discontinued operations before income taxes		0		0		(4	)


Tax (provision) benefit		0		0		(3	)
Tax credits		0		0		10

Total tax benefit		0		0		7


Income (loss) from discontinued operations, net of tax	$	0	$	0	$	3

SHARE-BASED COMPENSATION

12 Months Ended

Dec. 31, 2010

SHARE-BASED COMPENSATION

4.	SHARE-BASED COMPENSATION

Under our 2002 Comprehensive Stock and Cash Incentive Plan (the “Comprehensive Plan”), we award: (1) stock options to purchase our Class A Common Stock (“Stock Option Program”); (2) stock appreciation rights (“SARs”) for our Class A Common Stock (“SAR Program”); (3) restricted stock units (“RSUs”) of our Class A Common Stock; and (4) deferred stock units. We grant awards at exercise prices or strike prices that are equal to the market price of our Class A Common Stock on the date of grant.

For all share-based awards, the guidance requires that we measure compensation costs related to our share-based payment transactions at fair value on the grant date and that we recognize those costs in the financial statements over the vesting period during which the employee provides service in exchange for the award.

During 2010, we granted 3.8 million RSUs, 1.1 million Employee SARs, 0 Non-employee SARs, and 34,000 deferred stock units.

We recorded share-based compensation expense related to award grants of $91 million in 2010, $85 million in 2009, and $112 million in 2008. Deferred compensation costs related to unvested awards totaled $113 million at year-end 2010 and $122 million at year-end 2009. As of year-end 2010, we expect that these deferred compensation expenses will be recognized over a weighted average period of two years.

For awards granted after 2005, we recognize share-based compensation expense over the period from the grant date to the date on which the award is no longer contingent on the employee providing additional service (the “substantive vesting period”). We continue to follow the stated vesting period for the unvested portion of awards granted prior to 2006 and the adoption of the current guidance for share-based compensation and follow the substantive vesting period for awards granted after 2005.

In accordance with the guidance for share-based compensation, we present the tax benefits and costs resulting from the exercise or vesting of share-based awards as financing cash flows. The exercise of share-based awards in 2010, 2009 and 2008 resulted in tax benefits of $51 million in 2010, tax costs of $8 million in 2009, and tax benefits of $21 million in 2008.

We received $147 million in 2010, $35 million in 2009, and $30 million in 2008 in cash from the exercise of stock options granted under share-based payment arrangements.

RSUs

We issue RSUs under the Comprehensive Plan to certain officers and key employees and those units vest generally over four years in annual installments commencing one year after the date of grant. We recognize compensation expense for the RSUs over the service period equal to the fair market value of the stock units on the date of issuance. Upon vesting, RSUs convert to shares and are distributed from treasury shares. At year-end 2010 and year-end 2009, we had approximately $103 million and $109 million, respectively, in deferred compensation costs related to RSUs. The weighted average remaining term for RSU grants outstanding at year-end 2010 was two years.

The following table provides additional information on RSUs for the last three fiscal years:


	2010		2009		2008
Share-based compensation expense (in millions)	$	76	$	71	$	85
Weighted average grant-date fair value (per share)	$	27	$	19	$	30
Aggregate intrinsic value of converted and distributed (in millions)	$	95	$	39	$	90

The following table shows the 2010 changes in our outstanding RSU grants:


	Number of RSUs (in millions)			Weighted Average Grant-Date Fair Value
Outstanding at year-end 2009		7.1		$	30
Granted during 2010		3.8			27
Distributed during 2010		(2.8	)		33
Forfeited during 2010		(0.4	)		30

Outstanding at year-end 2010		7.7			30

Stock Options and SARs

We may grant employee stock options to officers and key employees at exercise prices or strike prices equal to the market price of our Class A Common Stock on the date of grant. Non-qualified options generally expire ten years after the date of grant, except those issued from 1990 through 2000, which expire 15 years after the date of the grant. Most stock options under the Stock Option Program are exercisable in cumulative installments of one quarter at the end of each of the first four years following the date of grant.

We recognized compensation expense associated with employee stock options of less than $1 million in 2010, $1 million in 2009, and $6 million in 2008. We had approximately $1 million in deferred compensation costs related to employee stock options at both year-end 2010 and year-end 2009. Upon the exercise of stock options, we issue shares from treasury shares.

The following table shows the 2010 changes in our outstanding Stock Option Program awards:


	Number of Options (in millions)			Weighted Average Exercise Price
Outstanding at year-end 2009		32.2		$	18
Granted during 2010		0.1			27
Exercised during 2010		(8.2	)		18
Forfeited during 2010		0.0			20

Outstanding at year-end 2010		24.1			18

The following table shows the stock options issued under the Stock Option Program awards outstanding at year-end 2010:


					Outstanding						Exercisable
Range of Exercise Prices					Number of Stock Options (in millions)		Weighted Average Exercise Price		Weighted Average Remaining Life (in years)		Number of Stock Options (in millions)		Weighted Average Exercise Price		Weighted Average Remaining Life (in years)
$	8	to	$	12		0.5	$	12		1		0.5	$	12		1
	13	to		17		16.3		15		3		16.3		15		3
	18	to		22		1.9		19		2		1.9		19		2
	23	to		49		5.4		26		4		5.2		25		4

	8	to		49		24.1		18		3		23.9		18		3

The following table shows the number of options we granted in the last three years and the associated weighted average grant-date fair values and weighted average exercise prices:


	2010		2009		2008
Options granted		53,304		0		218,000
Weighted average grant-date fair value	$	10	$	0	$	12
Weighted average exercise price	$	18	$	0	$	31

The following table shows the intrinsic value of outstanding stock options and exercisable stock options at year-end 2010 and 2009:


*($ in millions)*	2010		2009
Outstanding stock options	$	580	$	312
Exercisable stock options		578		313

The total intrinsic value of stock options exercised during 2010, 2009, and 2008 was approximately $149 million, $30 million, and $42 million, respectively.

We may grant SARs to officers and key employees at exercise prices or strike prices equal to the market price of our Class A Common Stock on the date of grant. SARs generally expire ten years after the date of grant and both vest and may be exercised in cumulative installments of one quarter at the end of each of the first four years following the date of grant. We may grant Non-employee SARs to directors at exercise prices or strike prices equal to the market price of our Class A Common Stock on the date of grant. Non-employee SARs generally expire ten years after the date of grant and vest upon grant; however, they are generally not exercisable until one year after grant. On exercise of SARs, employees or Non-employee directors receive the number of shares of Class A Common Stock equal to the number of SARs that are being exercised multiplied by the quotient of (a) the final value minus the base value, divided by (b) the final value.

We recognized compensation expense associated with Employee SARs and Non-employee SARs of $12 million in 2010, $11 million in 2009, and $18 million in 2008. At year-end 2010 and year-end 2009, we had approximately $9 million and $11 million, respectively, in deferred compensation costs related to SARs. Upon the exercise of SARs, we issue shares from treasury shares. The following table shows the 2010 changes in our outstanding SARs:


	Number of SARs (in millions)			Weighted Average Exercise Price
Outstanding at year-end 2009		3.9		$	32
Granted during 2010		1.1			27
Exercised during 2010		(0.1	)		33
Forfeited during 2010		(0.1	)		31

Outstanding at year-end 2010		4.8			31

The following tables show the number of Employee SARs and Non-employee SARs granted in the last three years, the associated weighted average base values, and the associated weighted average grant-date fair values:


Employee SARs	2010		2009		2008
Employee SARs granted (in millions)		1.1		0.5		2.7
Weighted average base value	$	27	$	15	$	33
Weighted average grant-date fair value	$	10	$	5	$	12

Non-employee SARs	2010		2009		2008
Non-employee SARs granted		0		5,600		4,000
Weighted average base value	$	0	$	23	$	36
Weighted average grant-date fair value	$	0	$	10	$	15

The number of SARs forfeited in 2010 and 2009 was 79,000 and 22,000, respectively. Outstanding SARs had a total intrinsic value of $54 million at year-end 2010 and zero at year-end 2009, and exercisable SARs had a total intrinsic value of $13 million at year-end 2010 and zero at year-end 2009. SARs exercised during 2010 had a total intrinsic value of $402,000. No SARs were exercised in 2009 or 2008.

We use a binomial method to estimate the fair value of each stock option or SAR granted, under which we calculate the weighted average expected stock option or SARs as the product of a lattice-based binomial valuation model that uses suboptimal exercise factors. We use historical data to estimate exercise behaviors for separate groups of retirement eligible and non-retirement eligible employees. The following table shows the assumptions we used for stock options and employee SARs for 2010, 2009, and 2008:


	2010			2009			2008
Expected volatility		32	%		32	%		29	%
Dividend yield		0.71	%		0.95	%		0.80-0.95	%
Risk-free rate		3.3	%		2.2	%		3.4-3.9	%
Expected term (in years)		7.0			7.0			6.9

In making these assumptions, we based risk-free rates on the corresponding U.S. Treasury spot rates for the expected duration at the date of grant, which we converted to a continuously compounded rate. We based expected volatility on the weighted-average historical volatility, with periods with atypical stock movement given a lower weight to reflect stabilized long-term mean volatility. We generally valued non-employee SARs using assumptions consistent with those shown above for Employee SARs, except that we used an expected term of ten years and risk-free rates of 3.2 percent and 3.9 percent for 2009 and 2008, respectively, rather than those shown in the foregoing table.

Deferred Stock Units

We also issue deferred stock units to Non-employee directors. These Non-employee director deferred stock units vest within one year and are distributed upon election. At year-end 2010 and year-end 2009, there was approximately $313,000 and $228,000, respectively, in deferred costs related to Non-employee director deferred stock units.

The following table shows share-based compensation expense, number of deferred stock units granted, weighted average grant-date fair value, and aggregate intrinsic value of Non-employee director deferred stock units:


	2010		2009		2008
Share-based compensation expense	$	932,000	$	715,000	$	684,000
Non-employee director deferred stock units granted		34,000		39,000		25,000
Weighted average grant-date fair value (per share)	$	35	$	23	$	33
Aggregate intrinsic value (in millions)	$	1.2	$	0.5	$	0.4

At year-end 2010 and year-end 2009, 252,000 and 249,000, respectively, of Non-employee deferred stock units were outstanding. The weighted average grant-date fair value of those outstanding deferred stock units was $26 for 2010 and $24 for 2009.

Other Information

Although the Comprehensive Plan also provides for issuance of deferred stock bonus awards, deferred stock awards, and restricted stock awards, our Compensation Policy Committee indefinitely suspended the issuance of deferred bonus stock beginning in 2001 and the issuance of both deferred stock awards and restricted stock awards beginning in 2003. At year-end 2010 and year-end 2009, we had less than $1 million and $1 million, respectively, in deferred compensation costs related to these suspended award programs, and at year-end 2010 the weighted average remaining term for outstanding awards granted under those suspended programs was one year. We had share-based compensation expense associated with these suspended award programs of $1 million in 2010, $1 million in 2009, and $2 million in 2008.

At year-end 2010, we reserved 58 million shares under the Comprehensive Plan, including 29 million shares under the Stock Option Program and the SAR Program.

FAIR VALUE OF FINANCIAL INSTRUMENTS

12 Months Ended

Dec. 31, 2010

FAIR VALUE OF FINANCIAL INSTRUMENTS

5.	FAIR VALUE OF FINANCIAL INSTRUMENTS

We believe that the fair values of our current assets and current liabilities approximate their reported carrying amounts. The following table shows the carrying values and the fair values of non-current financial assets and liabilities that qualify as financial instruments, determined in accordance with current guidance for disclosures on the fair value of financial instruments.


	At Year-End 2010						At Year-End 2009
*($ in millions)*	Carrying Amount			Fair Value			Carrying Amount			Fair Value
Cost method investments	$	60		$	63		$	41		$	43
Loans to timeshare owners—securitized		910			1,097			0			0
Loans to timeshare owners—non-securitized		169			176			352			368
Senior, mezzanine, and other loans—non-securitized		184			130			100			77
Residual interests and effectively owned notes		0			0			197			197
Restricted cash		30			30			22			22
Marketable securities		18			18			18			18

Total long-term financial assets	$	1,371		$	1,514		$	730		$	725

Non-recourse debt associated with securitized notes receivable	$	(891	)	$	(745	)	$	0		$	0
Senior Notes		(1,631	)		(1,771	)		(1,627	)		(1,707	)
$2,404 Effective Credit Facility		0			0			(425	)		(425	)
Other long-term debt		(142	)		(138	)		(154	)		(154	)
Other long-term liabilities		(71	)		(67	)		(86	)		(75	)
Long-term derivative liabilities		(1	)		(1	)		(1	)		(1	)

Total long-term financial liabilities	$	(2,736	)	$	(2,722	)	$	(2,293	)	$	(2,362	)

We estimate the fair value of both our securitized long-term loans to timeshare owners and a portion of our non-securitized long-term loans to timeshare owners using a discounted cash flow model. We believe this is comparable to the model that an independent third party would use in the current market. Our model uses default rates, prepayment rates, coupon rates and loan terms for our sold note portfolio as key drivers of risk and relative value, that when applied in combination with pricing parameters, determines the fair value of the underlying notes receivable. We value certain non-securitized loans to timeshare owners at their carrying value, rather than using our pricing model. We believe that the carrying value of such loans approximates fair value because the stated interest rates of these loans are consistent with current market rates and the reserve for these loans appropriately accounts for risks in default rates, prepayment rates, and loan terms.

We estimate the fair value of our senior, mezzanine, and other loans by discounting cash flows using risk-adjusted rates.

We estimate the fair value of our cost method investments by applying a cap rate to stabilized earnings (a market approach). The carrying value of our restricted cash approximates its fair value.

We estimate the fair value of our non-recourse debt associated with securitized loans to timeshare owners by obtaining indicative bids from investment banks that actively issue and facilitate the secondary market for timeshare securities. As an additional measure, we internally generate cash flow estimates by modeling all bond tranches for our active securitization transactions, with consideration for the collateral specific to each tranche. The key drivers in our analysis include default rates, prepayment rates, bond interest rates and other structural factors, which we use to estimate the projected cash flows. In order to estimate market credit spreads by rating, we reviewed market spreads from timeshare note securitizations and other asset-backed transactions that occurred during 2010 and 2009. We then applied those estimated market spreads to swap rates in order to estimate an underlying discount rate for calculating the fair value of the active bonds. We concluded that the fair value of the bonds reflects a marginal premium over the book value resulting from relatively low current swap rates and credit spreads.

We estimate the fair value of our other long-term debt, excluding leases, using expected future payments discounted at risk-adjusted rates, and we determine the fair value of our senior notes using quoted market prices. At year-end 2009, the carrying value of our credit facility approximated its fair value due to the short maturity dates of the draws we had executed (we had no outstanding borrowings under our Credit Facility at year-end 2010). Other long-term liabilities represent guarantee costs and reserves and deposit liabilities. The carrying values of our guarantee costs and reserves approximate their fair values. We estimate the fair value of our deposit liabilities primarily by discounting future payments at a risk-adjusted rate.

We are required to carry our marketable securities at fair value. The carrying value of our marketable securities at year-end 2010 was $18 million, which included debt securities of the U.S. Government, its sponsored agencies and other U.S. corporations invested for our self-insurance programs. We value these securities using directly observable Level 1 inputs as described in Footnote No. 1, “Summary of Significant Accounting Policies.”

We are also required to carry our derivative assets and liabilities at fair value. As of year-end 2010, we had derivative instruments in a current liability position of $1 million valued using Level 1 inputs and $1 million in a long-term liability position valued using Level 3 inputs. We value our Level 3 input derivatives using valuations that we calibrate to the initial trade prices, with subsequent valuations based on unobservable inputs to the valuation model, including interest rates and volatilities.

See Footnote No. 1, “Summary of Significant Accounting Policies,” for additional information on Timeshare Segment residual interests that we eliminated as part of our adoption of the new Transfers of Financial Assets and Consolidation standards in the first quarter of 2010. The preceding table includes the carrying amounts and estimated fair values for the long-term portion of the securitized notes receivable we reestablished and the associated debt obligations we recorded as part of this adoption.

ACQUISITIONS AND DISPOSITIONS

This item represents the complete disclosure regarding the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments, assets, and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the Company is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risk is are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References+ Details

EARNINGS PER SHARE

12 Months Ended

Dec. 31, 2010

EARNINGS PER SHARE

6.	EARNINGS PER SHARE

The table below illustrates the reconciliation of the earnings (losses) and number of shares used in our calculations of basic and diluted earnings (losses) per share attributable to Marriott shareholders.


*(in millions, except per share amounts)*	2010		2009			2008
Computation of Basic Earnings Per Share Attributable to Marriott Shareholders
Income (loss) from continuing operations	$	458	$	(353	)	$	344
Net losses attributable to noncontrolling interests		0		7			15

Income (loss) from continuing operations attributable to Marriott shareholders	$	458	$	(346	)	$	359
Weighted average shares outstanding		362.8		356.4			355.6

Basic earnings (losses) per share from continuing operations attributable to Marriott shareholders	$	1.26	$	(0.97	)	$	1.01

Computation of Diluted Earnings Per Share Attributable to Marriott Shareholders
Income (loss) from continuing operations attributable to Marriott shareholders	$	458	$	(346	)	$	359

Weighted average shares outstanding		362.8		356.4			355.6
Effect of dilutive securities
Employee stock option and SARs plan		11.0		0.0			11.7
Deferred stock incentive plan		1.1		0.0			1.6
Restricted stock units		3.4		0.0			1.8

Shares for diluted earnings per share		378.3		356.4			370.7

Diluted earnings (losses) per share from continuing operations attributable to Marriott shareholders	$	1.21	$	(0.97	)	$	0.97

We compute the effect of dilutive securities using the treasury stock method and average market prices during the period. We determine dilution based on earnings from continuing operations attributable to Marriott shareholders. As we recorded a loss from continuing operations in 2009, we did not include the following shares in the “Effect of dilutive securities” caption in the preceding table, because it would have been antidilutive to do so: 7.5 million employee stock option and SARs plan shares, 1.4 million deferred stock incentive plans shares, or 2.1 million RSU shares.

In accordance with the applicable accounting guidance for calculating earnings per share, we have not included the following stock options and SARs in our calculation of diluted earnings per share attributable to Marriott shareholders because the exercise prices were greater than the average market prices for the applicable periods:

(a)

for 2010, 2.4 million options and SARs, with exercise prices ranging from $34.11 to $49.03;

(b)

for 2009, 12.3 million options and SARs, with exercise prices ranging from $22.30 to $49.03; and

(c)

for 2008, 3.9 million options and SARs, with exercise prices ranging from $31.05 to $49.03.

INVENTORY

12 Months Ended

Dec. 31, 2010

INVENTORY

7.	INVENTORY

Inventory, totaling $1,489 million as of year-end 2010 and $1,444 million as of year-end 2009, consists primarily of Timeshare segment interval, fractional ownership, and residential products totaling $1,472 million as of year-end 2010 and $1,426 million as of year-end 2009. Inventory totaling $17 million as of year-end 2010 and $18 million as of year-end 2009, primarily relates to hotel operating supplies for the limited number of properties we own or lease. We primarily value Timeshare segment interval, fractional ownership, and residential products at the lower of cost or fair market value, in accordance with applicable accounting guidance, and we generally value operating supplies at the lower of cost (using the first-in, first-out method) or market. Consistent with recognized industry practice, we classify Timeshare segment interval, fractional ownership, and residential products inventory, which has an operating cycle that exceeds 12 months, as a current asset.

Weak economic conditions in the United States, Europe and much of the rest of the world, instability in the financial markets following the 2008 worldwide financial crisis, and weak consumer confidence all contributed to a difficult business environment and resulted in weaker demand for our Timeshare segment products, in particular our luxury residential (or whole ownership) products, but also to a lesser extent our luxury fractional ownership and timeshare products. Accordingly, in 2009, we recorded an inventory impairment charge of $529 million in conjunction with our evaluation of the entire Timeshare portfolio. See Footnote No.18, “Timeshare Strategy-Impairment Charges,” for additional information.

The following table shows the composition of our Timeshare segment inventory balances:


*($ in millions)*	At Year-End 2010		At Year-End 2009
Finished goods	$	732	$	721
Work-in-process		101		198
Land and infrastructure		639		507

	$	1,472	$	1,426

PROPERTY AND EQUIPMENT

12 Months Ended

Dec. 31, 2010

PROPERTY AND EQUIPMENT

8.	PROPERTY AND EQUIPMENT

The following table details the composition of our property and equipment balances:


*($ in millions)*	At Year-End 2010			At Year-End 2009
Land	$	514		$	454
Buildings and leasehold improvements		854			935
Furniture and equipment		984			996
Construction in progress		204			163

		2,556			2,548
Accumulated depreciation		(1,249	)		(1,186	)

	$	1,307		$	1,362

We record property and equipment at cost, including interest and real estate taxes incurred during development and construction. Interest capitalized as a cost of property and equipment totaled $10 million in 2010, $8 million in 2009, and $26 million in 2008. We capitalize the cost of improvements that extend the useful life of property and equipment when incurred. These capitalized costs may include structural costs, equipment, fixtures, floor, and wall coverings. We expense all repair and maintenance costs as incurred. We compute depreciation using the straight-line method over the estimated useful lives of the assets (three to 40 years), and we amortize leasehold improvements over the shorter of the asset life or lease term. Depreciation expense totaled $138 million in 2010, $151 million in 2009, and $155 million in 2008.

In the 2010 fourth quarter, we determined that we would not be able to fully recover the carrying amount of a capitalized software asset from an existing group of property owners. In accordance with the guidance for the impairment of long-lived assets, we evaluated the asset for recovery and as a result of a negotiated agreement with the property owners, in 2010 we recorded an impairment charge of $84 million to adjust the carrying value of the asset to our estimate of its fair value. We estimated that fair value using an income approach reflecting internally developed Level 3 discounted cash flows that included, among other things, our expectations of future cash flows based on historical experience and projected growth rates, usage estimates and demand trends. The impairment charge impacted the general, administrative, and other expense line in our Income Statement. We did not allocate that charge to any of our segments.

In the 2010 fourth quarter, we decided to pursue the disposition of a golf course and related assets from our Timeshare segment. In accordance with the guidance for the impairment of long-lived assets, we evaluated the property and related assets for recovery and in 2010 we recorded an impairment charge of $13 million to adjust the carrying value of the assets to our estimate of fair value. We estimated that fair value using an income approach reflecting internally developed Level 3 discounted cash flows based on negotiations with a qualified prospective third-party purchaser of the asset. The impairment charge impacted the general, administrative, and other expense line in our Income Statement, and we allocated the charge to our Timeshare segment.

In the 2010 fourth quarter, we decided to pursue the disposition of a land parcel. In accordance with the guidance for the impairment of long-lived assets, we evaluated the property for recovery and subsequently in 2010 we recorded an impairment charge of $14 million to adjust the carrying value of the property to our estimate of fair value. We estimated that fair value using an income approach reflecting internally developed Level 3 cash flows that included, among other things, our expectations about the eventual disposition of the property based on discussions with potential third-party purchasers. The impairment charge impacted the general, administrative, and other expense line in our Income Statement, and we allocated that charge to our North American Limited-Service segment.

ACQUISITIONS AND DISPOSITIONS

12 Months Ended

Dec. 31, 2010

9.	ACQUISITIONS AND DISPOSITIONS

2010 Acquisitions

In 2010, we acquired one land parcel for hotel development and one hotel for cash consideration of $175 million. We also acquired timeshare and fractional units for use in The Ritz-Carlton Destination Club program for cash consideration of $112 million, which included a deposit of $11 million, paid in 2009.

2010 Dispositions

In 2010, we sold two limited-service properties, one full-service property, and one land parcel for cash proceeds of $114 million and recorded a net gain of $27 million. We accounted for each of the sales under the full accrual method in accordance with accounting for sales of real estate. We will continue to operate the full-service property and one of the limited-service properties under management agreements. The other limited-service property left our system.

2009 Acquisitions and Dispositions

We made no significant acquisitions or dispositions in 2009.

2008 Acquisitions

At year-end 2007, we were party to a venture that developed and marketed fractional ownership and residential products. In 2008, we purchased our partner’s interest in that joint venture together with additional land. Cash consideration for this transaction totaled $42 million and we acquired assets and liabilities totaling $80 million and $38 million, respectively, on the date of purchase. In 2008, we also purchased real estate for a timeshare project for a total purchase price of approximately $63 million. Cash consideration totaled approximately $39 million, and non-current liabilities recorded as a result of this transaction were $24 million. In addition, in 2008, we purchased real estate for another timeshare project for cash consideration of $47 million. Also in 2008, we purchased units in an existing building for our timeshare operations for cash consideration of approximately $14 million. We also purchased real estate for another timeshare project for $28 million. Cash consideration totaled approximately $27 million, and we acquired assets and liabilities totaling $28 million and $1 million, respectively, on the date of purchase.

2008 Dispositions

In 2008, we sold, at book value, two limited-service properties and two land parcels for cash proceeds of $33 million, and we received a $22 million equity interest in the entity that purchased one of the land parcels. We accounted for each of the sales under the full accrual method in accordance with accounting for sales of real estate and each property will continue to operate under our brands pursuant to management or franchise agreements. Also, in 2008, we sold our interest in an entity that leases four hotels. In conjunction with that transaction, we received cash proceeds totaling $5 million, and the sales price of the investment approximated its book value.

GOODWILL AND INTANGIBLE ASSETS

12 Months Ended

Dec. 31, 2010

GOODWILL AND INTANGIBLE ASSETS

10.

GOODWILL AND INTANGIBLE ASSETS

The following table details the composition of our other intangible assets:


*($ in millions)*	At Year-End 2010			At Year-End 2009
Contract acquisition costs and other	$	1,145		$	1,073
Accumulated amortization		(377	)		(342	)

	$	768		$	731

We capitalize costs incurred to acquire management, franchise, and license agreements that are both direct and incremental. We amortize these costs on a straight-line basis over the initial term of the agreements, ranging from 15 to 30 years. Amortization expense totaled $40 million in 2010, $34 million in 2009, and $35 million in 2008. Our estimated aggregate amortization expense for each of the next five fiscal years is as follows: $33 million for 2011; $33 million for 2012; $33 million for 2013; $33 million for 2014; and $33 million for 2015.

The following table details the carrying amount of goodwill:


*($ in millions)*	At Year-End 2010			At Year-End 2009
Goodwill	$	1,003		$	1,003
Accumulated amortization		(128	)		(128	)

	$	875		$	875

Discloses the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain or loss on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss. This element may be used as a single block of text to include the entire intangible asset disclosure including data and tables.

+ References+ Details

NOTES RECEIVABLE

12 Months Ended

Dec. 31, 2010

NOTES RECEIVABLE

11.

NOTES RECEIVABLE

As discussed in Footnote No. 1, “Summary of Significant Accounting Policies,” on the first day of 2010, we consolidated certain entities associated with past timeshare notes receivable securitization transactions. Prior to 2010, we were not required to consolidate the special purpose entities utilized to securitize the notes.

The following table shows the composition of our notes receivable balances (net of reserves and unamortized discounts):


*($ in millions)*	2010			2009
Loans to timeshare owners – securitized	$	1,028		$	0
Loans to timeshare owners – non-securitized		225			424
Senior, mezzanine, and other loans – non-securitized		191			196

		1,444			620
Less current portion
Loans to timeshare owners – securitized		(118	)		0
Loans to timeshare owners – non-securitized		(55	)		(72	)
Senior, mezzanine, and other loans – non-securitized		(7	)		(96	)

	$	1,264		$	452

We classify notes receivable due within one year as current assets in the caption “Accounts and notes receivable” in our Balance Sheets. The following table shows the composition of our long-term notes receivable balances (net of reserves and unamortized discounts):


*($ in millions)*	2010		2009
Loans to timeshare owners	$	1,080	$	352
Loans to equity method investees		2		10
Other notes receivable		182		90

	$	1,264	$	452

The following tables show future principal payments (net of reserves and unamortized discounts) as well as interest rates, reserves and unamortized discounts for our securitized and non-securitized notes receivable.


Notes Receivable Principal Payments (net of reserves and unamortized discounts) and Interest Rates

*($ in millions)*	Non-Securitized Notes Receivable			Securitized Notes Receivable			Total
2011	$	62		$	118		$	180
2012		49			123			172
2013		34			130			164
2014		25			131			156
2015		94			126			220
Thereafter		152			400			552

Balance at year-end 2010	$	416		$	1,028		$	1,444


Weighted average interest rate at year-end 2010		8.9	%		13.1	%		11.9	%


Range of stated interest rates at year-end 2010		0.0 to 19.5	%		5.2 to 19.5	%		0.0 to 19.5	%


Notes Receivable Reserves

*($ in millions)*	Non-Securitized Notes Receivable			Securitized Notes Receivable			Total
Balance at year-end 2009	$	210		$	0		$	210

Balance at year-end 2010	$	203		$	89		$	292


Notes Receivable Unamortized Discounts ⁽¹⁾

*($ in millions)*	Non-Securitized Notes Receivable			Securitized Notes Receivable			Total
Balance at year-end 2009	$	16		$	0		$	16

Balance at year-end 2010	$	13		$	0		$	13

⁽¹⁾	The discounts for both year-end 2010 and 2009 relate entirely to our Senior, Mezzanine, and Other Loans

Senior, Mezzanine, and Other Loans

We reflect interest income associated with “Senior, mezzanine, and other loans” in the “Interest income” caption in our Income Statements. At year-end 2010, our recorded investment in impaired “Senior, mezzanine, and other loans” was $83 million. We do not accrue interest on impaired loans, but instead recognize interest on a cash basis. We had a $74 million notes receivable reserve representing an allowance for credit losses, leaving $9 million of our investment in impaired loans, for which we had no related allowance for credit losses. At year-end 2009, our recorded investment in impaired “Senior, mezzanine, and other loans” was $191 million, and we had a $183 million notes receivable reserve representing an allowance for credit losses, leaving $8 million of our investment in impaired loans, for which we had no related allowance for credit losses. During 2010 and 2009, our average investment in impaired loans totaled $137 million and $174 million, respectively.

The following table summarizes the activity related to our “Senior, mezzanine, and other loans” notes receivable reserve for 2008, 2009, and 2010:


*($ in millions)*	Notes Receivable Reserve
Balance at year-end 2007	$	92
Additions		22
Reversals		(5	)
Write-offs		(3	)
Transfers and other		7

Balance at year-end 2008	$	113
Additions		84
Write-offs		(28	)
Transfers and other		14

Balance at year-end 2009	$	183
Additions		4
Write-offs		(120	)
Transfers and other		7

Balance at year-end 2010	$	74

As of year-end 2010, past due senior, mezzanine, and other loans totaled $3 million.

Loans to Timeshare Owners

We reflect interest income associated with “Loans to timeshare owners” of $187 million, $46 million, and $68 million for 2010, 2009, and 2008, respectively, in our Income Statements in the “Timeshare sales and services” revenue caption. Of the $187 million of interest income we recognized from these loans in 2010, $147 million was associated with securitized loans and $40 million was associated with non-securitized loans, while the interest income recognized in 2009 and 2008 related solely to non-securitized loans.

The following table summarizes the activity related to our “Loans to timeshare owners” notes receivable reserve for 2008, 2009, and 2010:


*($ in millions)*	Non-Securitized Notes Receivable Reserve			Securitized Notes Receivable Reserve			Total
Balance at year-end 2007	$	19		$	0		$	19
Additions for current year securitizations		36			0			36
Write-offs		(20	)		0			(20	)

Balance at year-end 2008		35			0			35
Additions for current year securitizations		5			0			5
Write-offs		(13	)		0			(13	)

Balance at year-end 2009		27			0			27
Additions for current year securitizations		32			0			32
Additions for new securitizations, net of clean-up call		(18	)		18			0
Write-offs		(79	)		0			(79	)
One-time impact of the new Transfers of Financial Assets and Consolidation standards ⁽¹⁾		84			135			219
Defaulted note repurchase activity ⁽²⁾		68			(68	)		0
Other ⁽³⁾		15			4			19

Balance at year-end 2010	$	129		$	89		$	218

⁽¹⁾	The non-securitized notes receivable reserve relates to the implementation of the new Transfers of Financial Assets and Consolidation standards, which required us to establish reserves for certain previously securitized and subsequently repurchased notes held at January 2, 2010.

⁽²⁾	Decrease in securitized reserve and increase in non-securitized reserve was attributable to the transfer of the reserve when we repurchased the notes.

⁽³⁾	Consists of static pool and default rate assumption changes.

The following table shows our recorded investment in nonaccrual loans, which are loans that are 90 days or more past due. As noted in Footnote No. 1, “Summary of Significant Accounting Policies,” we recognize interest income on a cash basis for these loans.


*($ in millions)*	Non-Securitized Notes Receivable		Securitized Notes Receivable		Total
Investment in loans on nonaccrual status at year-end 2010	$	113	$	15	$	128

Investment in loans on nonaccrual status at year-end 2009	$	113	$	0	$	113

The following table shows the aging of the recorded investment (before reserves) in Loans to Timeshare owners.


*($ in millions)*	At Year-End 2010
31 – 90 days past due	$	38
91 – 150 days past due		24
Greater than 150 days past due		104

Total past due		166
Current		1,305

Total loans to timeshare owners	$	1,471

ASSET SECURITIZATIONS

12 Months Ended

Dec. 31, 2010

ASSET SECURITIZATIONS

12.

ASSET SECURITIZATIONS

We periodically securitize, without recourse, through special purpose entities, notes receivable originated by our Timeshare segment in connection with the sale of timeshare interval and fractional products. We continue to service the notes and transfer all proceeds collected to special purpose entities. We retain servicing agreements and other interests in the notes. The executed transactions typically include minimal cash reserves established at time of securitization as well as default and delinquency triggers, which we monitor on a monthly basis. As a result of our adoption of the new Transfers of Financial Assets and Consolidation standards, we no longer account for note receivable securitizations as sales, but rather as secured borrowings as defined in these topics, and therefore, we did not recognize gains or losses on the 2010 note securitization, nor do we expect to recognize gains or losses on future note receivable securitizations. See Footnote No. 1, “Summary of Significant Accounting Policies,” for additional information on the impact of our 2010 first quarter adoption of the new Transfers of Financial Assets and Consolidation standards on our timeshare note securitizations, including the elimination of residual interests.

The following table shows cash flows between us and investors during 2009 and 2008. In 2010 we consolidated the entities that facilitate our notes receivable securitizations. See Footnote No. 20, “Variable Interest Entities,” for discussion of the impact of our involvement with these entities on our financial position, financial performance, and cash flows for 2010.


*(in millions)*	2009		2008
Net proceeds to us from timeshare note securitizations	$	349	$	237

Voluntary repurchases by us of defaulted notes (over 150 days overdue)	$	81	$	56

Servicing fees received by us	$	6	$	6

Cash flows received from our retained interests	$	75	$	96

In 2010, 2009 and 2008, we securitized notes receivable originated by our Timeshare segment in connection with the sale of timeshare interval and fractional ownership products of $229 million, $446 million and $300 million, respectively. During 2010, we entered into one note securitization transaction for $229 million. The note securitization was made to a newly formed transaction-specific trust that, simultaneously with its purchase of the notes receivable, issued $218 million of the trust’s notes. During 2009, we entered into two note securitization transactions for $284 million and $380 million. The second of these transactions included our reacquisition and securitization of $218 million of notes that were previously securitized in the first transaction. Each note securitization in 2009 and 2008 was made to a newly formed transaction-specific trust that, simultaneously with its purchase of the notes receivable, issued $522 million and $246 million respectively, of the trust’s notes. In connection with the securitization of the notes receivable, we received proceeds, net of costs and reserves, of $215 million in 2010, $349 million in 2009 and $237 million in 2008. We have included gains from the sales of timeshare notes receivable totaling $37 million in 2009 and $16 million, net of $12 million of hedge ineffectiveness, in 2008 in the “Timeshare sales and services” revenue caption in our Income Statements.

SELF-INSURANCE RESERVE FOR LOSSES AND LOSS ADJUSTMENT EXPENSES

Provides the disclosures pertaining to a transferor's continuing involvement in financial assets that it has transferred in a securitization or asset-backed financing arrangement, the nature of any restrictions on assets reported by an entity in its statement of financial position that relate to a transferred financial asset (including the carrying amounts of such assets), how servicing assets and servicing liabilities are reported, and (for securitization or asset-backed financing arrangements accounted for as sales) when a transferor has continuing involvement with the transferred financial assets and transfers of financial assets accounted for as secured borrowings, how the transfer of financial assets affects an entity's financial position, financial performance, and cash flows.

+ References+ Details

LONG-TERM DEBT

12 Months Ended

Dec. 31, 2010

LONG-TERM DEBT

13.

LONG-TERM DEBT

As discussed in Footnote No. 1, “Summary of Significant Accounting Policies,” on the first day of 2010, we consolidated certain previously unconsolidated entities associated with past timeshare notes receivable securitization transactions (and later in 2010 we consolidated the special purpose entity associated with our 2010 securitization), resulting in consolidation of the related debt obligations. We securitize notes receivable through bankruptcy-remote entities, and the entities’ creditors have no recourse to us.

The following table provides detail on our long-term debt balances:


*($ in millions)*	2010			2009
Non-recourse debt associated with securitized notes receivable, interest rates ranging from 0.31% to 7.20% (weighted average interest rate of 4.96%)	$	1,016		$	0
Less current portion		(126	)		0

		890			0


Senior Notes:
Series F, interest rate of 4.625%, face amount of $348, maturing June 15, 2012 (effective interest rate of 5.02%) ⁽¹⁾		348			347
Series G, interest rate of 5.810%, face amount of $316, maturing November 10, 2015 (effective interest rate of 6.53%) ⁽¹⁾		304			302
Series H, interest rate of 6.200%, face amount of $289, maturing June 15, 2016 (effective interest rate of 6.30%) ⁽¹⁾		289			289
Series I, interest rate of 6.375%, face amount of $293, maturing June 15, 2017 (effective interest rate of 6.45%) ⁽¹⁾		291			291
Series J, interest rate of 5.625%, face amount of $400, maturing February 15, 2013 (effective interest rate of 5.71%) ⁽¹⁾		399			398
$2,404 Effective Credit Facility		0			425
Other		182			246

		1,813			2,298
Less current portion		(12	)		(64	)

		1,801			2,234

	$	2,691		$	2,234

⁽¹⁾	Face amount and effective interest rate are as of year-end 2010.

The non-recourse debt associated with securitized notes receivable was, and to the extent currently outstanding is, secured by the related notes receivable. All of our other long-term debt was, and to the extent currently outstanding is, recourse to us but unsecured.

We are party to a multicurrency revolving credit agreement (the “Credit Facility”) that provides for $2.404 billion of aggregate effective borrowings (all of which was available at year-end 2010) to support general corporate needs, including working capital, capital expenditures, and letters of credit. The Credit Facility expires on May 14, 2012. Borrowings under the Credit Facility bear interest at the London Interbank Offered Rate (LIBOR) plus a fixed spread. We also pay quarterly fees on the Credit Facility at a rate based on our public debt rating. While borrowings under our Credit Facility generally have short-term maturities, we classify outstanding borrowings as long-term based on our ability and intent to refinance the outstanding borrowings on a long-term basis.

Each of our securitized notes receivable pools contains various triggers relating to the performance of the underlying notes receivable. If a pool of securitized notes receivable fails to perform within the pool’s established parameters (default or delinquency thresholds vary by deal) transaction provisions effectively redirect the monthly excess spread we typically receive from that pool (related to the interests we retained) to accelerate the principal payments to investors based on the subordination of the different tranches until the performance trigger is cured. In 2010, seven of our securitized notes receivable pools reached performance triggers in different months throughout the year as a result of increased defaults. As of year-end 2010, of the seven pools out of compliance during 2010, loan performance had improved sufficiently in six pools to cure the performance triggers, leaving one pool out of compliance. For 2010, 2009 and 2008 approximately $6 million, $17 million, and $0, respectively, of cash flows were redirected as a result of reaching the performance triggers for those years. At year-end 2010, we had 13 securitized notes receivable pools outstanding.

The following tables show future principal payments (net of unamortized discounts) and unamortized discounts for our securitized and non-securitized debt.

Debt Principal Payments (net of unamortized discounts)


*($ in millions)*	Non-Recourse Debt		Other Debt		Total
2011	$	126	$	12	$	138
2012		131		360		491
2013		138		411		549
2014		139		12		151
2015		134		312		446
Thereafter		348		706		1,054

Balance at year-end 2010	$	1,016	$	1,813	$	2,829

As the contractual terms of the underlying securitized notes receivable determine the maturities of the non-recourse debt associated with them, actual maturities may occur earlier due to prepayments by the notes receivable obligors.

Unamortized Debt Discounts


*($ in millions)*	Non-Recourse Debt		Other Debt		Total
Balance at year-end 2009	$	0	$	20	$	20

Balance at year-end 2010	$	0	$	16	$	16

Although we are predominantly a manager and franchisor of hotel properties, we may use capital to buy, develop, and improve hotels, as well as to develop timeshare properties. Capital markets were disrupted in the fourth quarter of 2008 and have remained challenging due to the recession and ongoing worldwide financial instability. See the “Cash Requirements and Our Credit Facilities” discussion in the “Liquidity and Capital Resources” section of this report for additional information regarding our Credit Facility.

In 2009, we repurchased $122 million principal amount of our Senior Notes in the open market, across multiple series. We recorded a gain of $21 million for the debt extinguishment representing the difference between the acquired debt’s purchase price of $98 million and its carrying amount of $119 million. The weighted average interest rate on the senior debt that was paid down in 2009 was 6.8 percent.

In the fourth quarter of 2009, we made a $79 million cash payment of principal and interest to retire, at maturity, all of our outstanding Series C Senior Notes.

We did not repurchase or retire any of our Senior Notes in 2010.

We paid cash for interest, net of amounts capitalized, of $148 million in 2010, $96 million in 2009, and $110 million in 2008.

SELF-INSURANCE RESERVE FOR LOSSES AND LOSS ADJUSTMENT EXPENSES

12 Months Ended

Dec. 31, 2010

14.

SELF-INSURANCE RESERVE FOR LOSSES AND LOSS ADJUSTMENT EXPENSES

The activity in the reserve for losses and loss adjustment expenses is summarized as follows:


*($ in millions)*	2010			2009
Balance at beginning of year	$	304		$	296
Less: reinsurance recoverable		(9	)		(12	)

Net balance at beginning of year		295			284

Incurred related to:
Current year		114			109
Prior year		(8	)		(6	)

Total incurred		106			103

Paid related to:
Current year		(38	)		(36	)
Prior year		(57	)		(56	)

Total paid		(95	)		(92	)

Net balance at end of year		306			295
Add: reinsurance recoverable		7			9

Balance at end of year	$	313		$	304

The provision for unpaid loss and loss adjustment expenses decreased by $8 million in 2010 and $6 million in 2009 as a result of changes in estimates from insured events of the prior years due to changes in underwriting experience and frequency and severity trends. Our year-end 2010 self-insurance reserve of $313 million consisted of a current portion of $98 million and long-term portion of $215 million. Our year-end 2009 self-insurance reserve of $304 million consisted of a current portion of $96 million and long-term portion of $208 million.

SHAREHOLDERS' EQUITY

12 Months Ended

Dec. 31, 2010

SHAREHOLDERS' EQUITY

15.

SHAREHOLDERS’ EQUITY

Eight hundred million shares of our Class A Common Stock, with a par value of $.01 per share, and ten million shares of preferred stock, without par value, are authorized under our restated certificate of incorporation. As of year-end 2010, of those authorized shares 366.9 million shares of our Class A Common Stock and no shares of our preferred stock were outstanding.

Accumulated other comprehensive loss of $2 million at year-end 2010 consisted of losses totaling $4 million associated with currency translation adjustments, and gains of $2 million associated with interest rate swap agreement cash flow hedges. Accumulated other comprehensive income of $13 million at year-end 2009 consisted of gains totaling $11 million associated with currency translation adjustments, and gains of $2 million associated with interest rate swap agreement cash flow hedges.

TIMESHARE STRATEGY-IMPAIRMENT CHARGES

Disclosures related to accounts comprising shareholders' equity, including other comprehensive income. Includes: (1) balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings; (2) accumulated balance for each classification of other comprehensive income and total amount of comprehensive income; (3) amount and nature of changes in separate accounts, including the number of shares authorized and outstanding, number of shares issued upon exercise and conversion, and for other comprehensive income, the adjustments for reclassifications to net income; (4) rights and privileges of each class of stock authorized; (5) basis of treasury stock, if other than cost, and amounts paid and accounting treatment for treasury stock purchased significantly in excess of market; (6) dividends paid or payable per share and in the aggregate for each class of stock for each period presented; (7) dividend restrictions and accumulated preferred dividends in arrears (in aggregate and per share amount); (8) retained earnings appropriations or restrictions, such as dividend restrictions; (9) impact of change in accounting principle, initial adoption of new accounting principle and correction of an error in previously issued financial statements; (10) shares held in trust for Employee Stock Ownership Plan (ESOP); (11) deferred compensation related to issuance of capital stock; (12) note received for issuance of stock; (13) unamortized discount on shares; (14) description, terms and number of warrants or rights outstanding; (15) shares under subscription and subscription receivables; effective date of new retained earnings after quasi-reorganization and deficit eliminated by quasi-reorganization and, for a period of at least ten years after the effective date, the point in time from which the new retained dates; and (16) retroactive effective of subsequent change in capital structure.

+ References+ Details

CONTINGENCIES

12 Months Ended

Dec. 31, 2010

CONTINGENCIES

16.

CONTINGENCIES

Guarantees

We issue guarantees to certain lenders and hotel owners, primarily to obtain long-term management contracts. The guarantees generally have a stated maximum amount of funding and a term of three to ten years. The terms of guarantees to lenders generally require us to fund if cash flows from hotel operations are inadequate to cover annual debt service or to repay the loan at the end of the term. The terms of guarantees to hotel owners generally require us to fund if the hotels do not attain specified levels of operating profit. We are generally entitled to recover guarantee fundings to lenders and hotel owners as loans repayable to us out of future hotel cash flows and/or proceeds from the sale of hotels. We also enter into project completion guarantees with certain lenders in conjunction with hotels and Timeshare segment properties that we or our joint venture partners are building.

The following table shows the maximum potential amount of future fundings for guarantees where we are the primary obligor and the carrying amount of the liability for expected future fundings.


*($ in millions)* Guarantee Type	Maximum Potential Amount of Future Fundings at Year-End 2010		Liability for Expected Future Fundings at Year-End 2010
Debt service	$	29	$	3
Operating profit		121		25
Other		49		3

Total guarantees where we are the primary obligor	$	199	$	31

We included our liability for expected future fundings at year-end 2010, in our Balance Sheet as follows: $5 million in the “Other current liabilities” line item and $26 million in the “Other long-term liabilities” line item.

Our guarantees listed in the preceding table include $32 million of operating profit guarantees that will not be in effect until the underlying properties open and we begin to operate the properties.

The guarantees in the preceding table do not include the following:

•

$133 million of guarantees related to Senior Living Services lease obligations of $87 million (expiring in 2013) and lifecare bonds of $46 million (estimated to expire in 2016), for which we are secondarily liable. The primary obligors on these liabilities are Sunrise Senior Living, Inc. (“Sunrise”) on both the leases and $7 million of the lifecare bonds; CNL Retirement Properties, Inc. (“CNL”), which subsequently merged with Health Care Property Investors, Inc., on $38 million of the lifecare bonds; and Five Star Senior Living on the remaining $1 million of lifecare bonds. Prior to our sale of the Senior Living Services business in 2003, these were guarantees by us of obligations of consolidated Senior Living Services subsidiaries. Sunrise and CNL have indemnified us for any guarantee fundings we may be called upon to make in connection with these lease obligations and lifecare bonds. While we currently do not expect to fund under the guarantees, Sunrise’s SEC filings suggest that Sunrise’s continued ability to meet these guarantee obligations cannot be assured given Sunrise’s financial position and limited access to liquidity.

•

Lease obligations, for which we became secondarily liable when we acquired the Renaissance Hotel Group N.V. in 1997, consisting of annual rent payments of approximately $6 million and total remaining rent payments through the initial term of approximately $52 million. Most of these obligations expire by the end of 2020. CTF Holdings Ltd. (“CTF”) had originally made available €35 million in cash collateral in the event that we are required to fund under such guarantees, approximately €6 million ($8 million) of which remained at year-end 2010. Our exposure for the remaining rent payments through the initial term will decline to the extent that CTF obtains releases from the landlords or these hotels exit the system. Since the time we assumed these guarantees, we have not funded any amounts, and we do not expect to fund any amounts under these guarantees in the future.

•

A project completion guarantee to a lender for a project with an estimated aggregate total cost of $592 million. We are liable on a several basis with our partners in an amount equal to our 34 percent pro rata ownership in the joint venture. The carrying value of our liability associated with this guarantee was $16 million at year-end 2010, as further discussed in Footnote No. 20, “Variable Interest Entities.”

•

A project completion guarantee that we provided to another lender for a project with an estimated aggregate total cost of Canadian $491 million ($491 million). The associated joint venture will satisfy payments for cost overruns for this project through contributions from the partners or from borrowings, and we are liable on a several basis with our partners in an amount equal to our 20 percent pro rata ownership in the joint venture. During the third quarter of 2010, our joint venture partners executed documents indemnifying us for any payments that may be required in connection with this guarantee obligation. The carrying value of our liability associated with this project completion guarantee was $3 million at year-end 2010.

In addition to the guarantees described in the preceding paragraphs, in conjunction with financing obtained for specific projects or properties owned by joint ventures in which we are a party, we may provide industry standard indemnifications to the lender for loss, liability, or damage occurring as a result of the actions of the other joint venture owner or our own actions.

Commitments and Letters of Credit

In addition to the guarantees noted in the preceding paragraphs, as of year-end 2010, we had the following commitments outstanding:

•

A commitment, subject to certain conditions, to invest up to €41 million ($54 million) to acquire 50 percent interests in two new joint ventures for the operation, management and development of hotels, initially in Europe but eventually in other parts of the world; to purchase related intellectual property; and to fund property improvements at some hotels. The hotels will be managed by the joint ventures or franchised at the direction of the joint ventures. We expect to fund this commitment during the first or second quarter of 2011. We also have a right and under certain circumstances an obligation to acquire the remaining interest in the joint ventures over the next ten years.

•

A commitment, subject to certain conditions, to acquire a 50-year leasehold in a hotel for an initial payment of €25 million ($33 million) plus the payment of fixed annual rent from an affiliate of a joint venture partner. We expect to fund this commitment during the first or second quarter of 2011. After acquiring the leasehold, we will also have a right and under certain circumstances an obligation to acquire the landlord’s interest in the hotel for €45 million ($60 million) during the following three years.

•

Commitments to invest up to $28 million of equity for noncontrolling interests in partnerships that plan to purchase North American full-service and limited-service properties or purchase or develop hotel-anchored mixed-use real estate projects. We expect to fund $3 million of these commitments in one to two years and $20 million within three years. We do not expect to fund $5 million of these investment commitments. If not funded, $8 million of these investment commitments will expire within one to two years, $10 million will expire within three years, and $10 million will expire in more than three years.

•

A commitment, with no expiration date, to invest up to $27 million (€20 million) in a joint venture in which we are a partner. We do not expect to fund under this commitment.

•

A commitment for $18 million to purchase timeshare units upon completion of construction for use in our Asia Pacific Points Club program. We have already made deposits of $11 million in conjunction with this commitment. We expect to fulfill the remaining $7 million in the 2011 second quarter.

•

A commitment, with no expiration date, to invest up to $11 million in a joint venture for development of a new property that we expect to fund within three years.

•

A commitment, with no expiration date, to invest up to $7 million in a joint venture that we do not expect to fund.

•

$4 million (€3 million) of other purchase commitments that will be funded over the next four years, as follows: $1 million in each of 2011, 2012, 2013 and 2014.

•

$4 million of loan commitments that we have extended to owners of lodging properties. We expect to fund approximately $1 million of these commitments within three years, and do not expect to fund the remaining $3 million of commitments, $2 million of which will expire within three years, and $1 million of which will expire after five years.

•

A $1 million commitment, with no expiration date, to a hotel real estate investment trust in which we have an ownership interest. We expect to fund this commitment within one year. The commitment is pledged as collateral for certain trust investments.

At year-end 2010, we had $81 million of letters of credit outstanding ($78 million under our Credit Facility and $3 million outside the Credit Facility), the majority of which related to our self-insurance programs. Surety bonds issued as of year-end 2010, totaled $219 million, the majority of which were requested by federal, state or local governments related to our lodging operations, including our Timeshare segment and self-insurance programs.

BUSINESS SEGMENTS

12 Months Ended

Dec. 31, 2010

BUSINESS SEGMENTS

17.

BUSINESS SEGMENTS

We are a diversified hospitality company with operations in five business segments:

•

North American Full-Service Lodging, which includes the Marriott Hotels & Resorts, JW Marriott, Renaissance Hotels, and Autograph Collection properties located in the continental United States and Canada. The first Autograph property opened in 2010;

•

North American Limited-Service Lodging, which includes the Courtyard, Fairfield Inn & Suites, SpringHill Suites, Residence Inn, TownePlace Suites, and Marriott ExecuStay properties located in the continental United States and Canada;

•

International Lodging, which includes the Marriott Hotels & Resorts, JW Marriott, Renaissance Hotels, Courtyard, Fairfield Inn & Suites, Residence Inn, and Marriott Executive Apartments properties located outside the continental United States and Canada;

•

Luxury Lodging, which includes The Ritz-Carlton, Bulgari Hotels & Resorts, and EDITION properties worldwide (together with adjacent residential projects associated with some Ritz-Carlton hotels). The first EDITION property opened in 2010; and

•

Timeshare, which includes the development, marketing, operation, and sale of Marriott Vacation Club, The Ritz-Carlton Destination Club, The Ritz-Carlton Residences, and Grand Residences by Marriott timeshare, fractional ownership, and residential properties worldwide.

Unless otherwise indicated, our references to Marriott Hotels & Resorts include Marriott Conference Centers and JW Marriott, references to Renaissance Hotels include Renaissance ClubSport, and references to Fairfield Inn & Suites include Fairfield Inn.

We evaluate the performance of our segments based primarily on the results of the segment without allocating corporate expenses, income taxes, or indirect general, administrative, and other expenses. With the exception of our Timeshare segment, we do not allocate interest income or interest expense to our segments. Prior to 2010, we included note securitization gains/(losses) in our Timeshare segment results. Due to our adoption of the new Transfers of Financial Assets and Consolidation standards, we no longer account for note receivable securitizations as sales but rather as secured borrowings as defined in these topics, and therefore, we did not recognize gains or losses on the 2010 note receivable securitization nor do we expect to recognize gains or losses on future note receivable securitizations. We include interest income and interest expense associated with our Timeshare segment notes in our Timeshare segment results because financing sales and securitization transactions are an integral part of that segment’s business. In addition, we allocate other gains and losses, equity in earnings or losses from our joint ventures, divisional general, administrative, and other expenses, and income or losses attributable to noncontrolling interests to each of our segments. “Other unallocated corporate” represents that portion of our revenues, general, administrative, and other expenses, equity in earnings or losses, and other gains or losses that are not allocable to our segments.

We aggregate the brands presented within our North American Full-Service, North American Limited-Service, International, Luxury, and Timeshare segments considering their similar economic characteristics, types of customers, distribution channels, the regulatory business environment of the brands and operations within each segment and our organizational and management reporting structure.

Revenues


*($ in millions)*	2010		2009		2008
North American Full-Service Segment	$	5,108	$	4,848	$	5,631
North American Limited-Service Segment		2,149		1,986		2,233
International Segment		1,245		1,145		1,544
Luxury Segment		1,563		1,413		1,659
Timeshare Segment		1,546		1,439		1,750

Total segment revenues		11,611		10,831		12,817
Other unallocated corporate		80		77		62

	$	11,691	$	10,908	$	12,879

Income (Loss) from Continuing Operations Attributable to Marriott


*($ in millions)*	2010			2009			2008
North American Full-Service Segment	$	318		$	272		$	419
North American Limited-Service Segment		298			265			395
International Segment		169			129			246
Luxury Segment		77			17			78
Timeshare Segment		121			(679	)		28

Total segment financial results		983			4			1,166
Other unallocated corporate		(326	)		(318	)		(324	)
Interest income and interest expense⁽¹⁾		(106	)		(93	)		(124	)
Income taxes⁽²⁾		(93	)		61			(359	)

	$	458		$	(346	)	$	359

⁽¹⁾	Of the $180 million of interest expense shown on the Income Statement for year -end 2010 we allocated $55 million to our Timeshare segment.

⁽²⁾	The $61 million of income tax benefits for year-end 2009 included our benefit for income taxes of $65 million as shown in the Income Statements and taxes attributable to noncontrolling interests of $4 million.

Net Losses Attributable to Noncontrolling Interests


*($ in millions)*	2010		2009			2008
International Segment	$	0	$	0		$	(1	)
Timeshare Segment		0		11			25

Total segment net losses attributable to noncontrolling interests		0		11			24
Provision for income taxes		0		(4	)		(9	)

	$	0	$	7		$	15

Equity in (Losses) Earnings of Equity Method Investees


*($ in millions)*	2010			2009			2008
North American Full-Service Segment	$	2		$	1		$	3
North American Limited-Service Segment		(13	)		(9	)		0
International Segment		(7	)		(11	)		(2	)
Luxury Segment		(2	)		(32	)		(12	)
Timeshare Segment		(8	)		(12	)		11

Total segment equity in (losses) earnings		(28	)		(63	)		0
Other unallocated corporate		10			(3	)		15

	$	(18	)	$	(66	)	$	15

Depreciation and Amortization


*($ in millions)*	2010		2009		2008
North American Full-Service Segment	$	31	$	33	$	29
North American Limited-Service Segment		19		18		20
International Segment		24		25		24
Luxury Segment		19		17		16
Timeshare Segment		36		42		46

Total segment depreciation and amortization		129		135		135
Other unallocated corporate		49		50		55

	$	178	$	185	$	190

Assets


*($ in millions)*	At Year-End 2010		At Year-End 2009
North American Full-Service Segment	$	1,203	$	1,175
North American Limited-Service Segment		464		468
International Segment		841		849
Luxury Segment		871		653
Timeshare Segment		3,310		2,653

Total segment assets		6,689		5,798
Other unallocated corporate		2,294		2,135

	$	8,983	$	7,933


Equity Method Investments

*($ in millions)*	At Year-End 2010		At Year-End 2009
North American Full-Service Segment	$	14	$	14
North American Limited-Service Segment		87		100
International Segment		38		47
Luxury Segment		44		38
Timeshare Segment		1		2

Total segment equity method investments		184		201
Other unallocated corporate		6		7

	$	190	$	208

Goodwill


($ in millions)	North American Full-Service Segment			North American Limited-Service Segment			International Segment			Luxury Segment			Total Goodwill
Year-end 2008 balance:
Goodwill	$	390		$	86		$	335		$	192		$	1,003
Accumulated amortization		(55	)		(14	)		(37	)		(22	)		(128	)

	$	335		$	72		$	298		$	170		$	875

Year-end 2009 balance:
Goodwill	$	390		$	86		$	335		$	192		$	1,003
Accumulated amortization		(55	)		(14	)		(37	)		(22	)		(128	)

	$	335		$	72		$	298		$	170		$	875

Year-end 2010 balance:
Goodwill	$	390		$	86		$	335		$	192		$	1,003
Accumulated amortization		(55	)		(14	)		(37	)		(22	)		(128	)

	$	335		$	72		$	298		$	170		$	875

Capital Expenditures


*($ in millions)*	2010		2009		2008
North American Full-Service Segment	$	7	$	18	$	117
North American Limited-Service Segment		13		9		13
International Segment		35		33		45
Luxury Segment		168		1		6
Timeshare Segment		24		28		105

Total segment capital expenditures		247		89		286
Other unallocated corporate		60		58		71

	$	307	$	147	$	357

Segment expenses include selling expenses directly related to the operations of the businesses, aggregating $419 million in 2010, $440 million in 2009, and $633 million in 2008. Approximately 85 percent for 2010, 86 percent for 2009 and 88 percent for 2008 of the selling expenses are related to our Timeshare segment.

Our Financial Statements include the following related to operations located outside the United States (which are predominately related to our International lodging segment):

Revenues of $1,841 million in 2010, $1,700 million in 2009, and $2,230 million in 2008;

Segment results of $252 million in 2010 ($91 million from Asia, $71 million from Continental Europe, $67 million from the Americas (excluding the United States), $23 million from the Middle East and Africa, and $4 million from Australia, partially offset by a segment loss of $4 million from the United Kingdom and Ireland), segment financial losses of $26 million in 2009, and segment results of $253 million in 2008. Segment losses for 2009 reflect timeshare-strategy impairment charges and restructuring costs, both for our Timeshare segment, totaling $176 million associated with the Americas (excluding the United States), Europe, Asia and the United Kingdom and Ireland of $100 million, $47 million, $22 million, and $7 million, respectively. Segment results for 2008 reflect restructuring costs and other charges, for our Timeshare segment, totaling $12 million associated with the Americas (excluding the United States) and with Europe of $2 million and $10 million, respectively; and

Fixed assets of $350 million in 2010 and $325 million in 2009. At year-end 2010 and year-end 2009, fixed assets located outside the United States are included within the “Property and equipment” caption in our Balance Sheets.

We estimate that, for the 20-year period from 2011 through 2030, the cash flow associated with completing all phases of our existing portfolio of owned timeshare properties will be approximately $2.8 billion. This estimate is based on our current development plans, which remain subject to change.

TIMESHARE STRATEGY-IMPAIRMENT CHARGES

12 Months Ended

Dec. 31, 2010

18.

TIMESHARE STRATEGY–IMPAIRMENT CHARGES

In response to the difficult business conditions that the Timeshare segment’s timeshare, luxury residential, and luxury fractional real estate development businesses experienced, we evaluated our entire Timeshare portfolio in the 2009 third quarter. In order to adjust the business strategy to reflect current market conditions at that time, we approved plans for our Timeshare segment to take the following actions: (1) for our luxury residential projects, reduce prices, convert certain proposed projects to other uses, sell some undeveloped land, and not pursue further Marriott-funded residential development projects; (2) reduce prices for existing luxury fractional units; (3) continue short-term promotions for our U.S. timeshare business and defer the introduction of new projects and development phases; and (4) for our European timeshare and fractional resorts, continue promotional pricing and marketing incentives and not pursue further development. We designed these plans, which primarily relate to luxury residential and fractional resorts, to stimulate sales, accelerate cash flow, and reduce investment spending.

As a result of these decisions, in 2009 we recorded the charges shown in the following table in our Income Statements, with charges that impacted operating income under the “Timeshare strategy-impairment charges” caption and charges that impacted non-operating income under the “Timeshare strategy-impairment charges (non-operating)” caption:


*($ in millions)*	Impairment Charge
2009 Operating Income Charge
Inventory impairment	$	529
Property and equipment impairment		64
Other impairments		21

Total operating income charge		614

2009 Non-Operating Income Charge
Joint venture impairment		71
Loan impairment		40
Funding liability		27

Total non-operating income charge		138

Total	$	752

Total (after-tax)	$	502

The impairment charges were non-cash, other than $27 million of charges associated with ongoing mezzanine loan fundings and $21 million of charges for purchase commitments. Grouped by product type and/or geographic location, these impairment charges consisted of $295 million associated with five luxury residential projects, $299 million associated with nine North American luxury fractional projects, $93 million related to one North American timeshare project, $51 million related to the four projects in our European timeshare and fractional business, and $14 million associated with two Asia Pacific timeshare resorts. Except for the $40 million loan impairment and the $27 million funding liability, we allocated the remaining pretax charges totaling $685 million to our Timeshare segment.

For additional information on these impairment charges, including how we determined these impairments and the inputs we used in calculating fair value, please see Footnote No. 20, “Timeshare Strategy-Impairment Charges,” in the Notes to the Financial Statements of our 2009 Form 10-K.

In the 2010 fourth quarter, we reversed (based on facts and circumstances surrounding the project, including progress on certain construction-related legal claims and potential funding of certain costs by one of our partners) $11 million of the $27 million funding liability we recorded in 2009. We recorded the reversal of the funding liability in the equity in (losses) earnings line in our Income Statement, but did not allocate it to any of our segments. In addition, the venture was unable to pay one of its promissory notes when it was due on December 31, 2010. The partners, on behalf of the venture, continue to negotiate an extension of the maturity date.

RESTRUCTURING COSTS AND OTHER CHARGES

12 Months Ended

Dec. 31, 2010

RESTRUCTURING COSTS AND OTHER CHARGES

19.

RESTRUCTURING COSTS AND OTHER CHARGES

During the latter part of 2008, we experienced a significant decline in demand for hotel rooms worldwide based in part on the failures and near failures of a number of large financial service companies in the fourth quarter of 2008 and the dramatic downturn in the economy. Our capital-intensive Timeshare business was also hurt globally by the downturn in market conditions and particularly the significant deterioration in the credit markets. These declines resulted in reduced management and franchise fees, cancellation of development projects, reduced timeshare contract sales, and anticipated losses under guarantees and loans. In the fourth quarter of 2008, we put company-wide cost-saving measures in place in response to these declines, with individual company segments and corporate departments implementing further cost-saving measures. Upper-level management responsible for the Timeshare segment, hotel operations, development, and above-property level management of the various corporate departments and brand teams individually led these decentralized management initiatives.

The various initiatives resulted in restructuring costs and other charges in the 2008 fourth quarter. For information on the fourth quarter 2008 charges, see Footnote No. 20, “Restructuring Costs and Other Charges,” in the Notes to the Financial Statements of our 2008 Form 10-K. As part of the restructuring actions we began in 2008, we initiated further cost-saving measures in 2009 associated with our Timeshare segment, hotel development, and above-property level management that resulted in additional restructuring costs of $51 million in 2009. We completed this restructuring in 2009 and have not incurred additional expenses in connection with these initiatives. We also recorded $162 million of other charges in 2009. For information on the 2009 charges, see Footnote No. 21, “Restructuring Costs and Other Charges,” in the Notes to the Financial Statements of our 2009 Form 10-K.

Summary of Restructuring Costs and Liability

The following table provides additional information regarding our restructuring, including the balance of the liability at year-end 2010 and total costs incurred through the end of the restructuring in 2009:


*($ in millions)*	Restructuring Costs Liability at Year-End 2009		Cash Payments in 2010		Restructuring Costs Liability at Year-End 2010		Total Cumulative Restructuring Costs through 2009⁽¹⁾
Severance-Timeshare	$	4	$	3	$	1	$	29
Facilities exit costs-Timeshare		18		5		13		34
Development cancellations-Timeshare		0		0		0		10

Total restructuring costs-Timeshare		22		8		14		73

Severance-hotel development		1		1		0		4
Development cancellations-hotel development		0		0		0		22

Total restructuring costs-hotel development		1		1		0		26

Severance-above property-level management		2		2		0		7

Total restructuring costs-above property-level management		2		2		0		7

Total restructuring costs	$	25	$	11	$	14	$	106

⁽¹⁾	Includes charges recorded in the 2008 fourth quarter through year-end 2009. After 2009, we have not incurred and do not expect to incur additional restructuring expenses.

VARIABLE INTEREST ENTITIES

12 Months Ended

Dec. 31, 2010

VARIABLE INTEREST ENTITIES

20.

VARIABLE INTEREST ENTITIES

In accordance with the applicable accounting guidance for the consolidation of variable interest entities, we analyze our variable interests, including loans, guarantees, and equity investments, to determine if an entity in which we have a variable interest is a variable interest entity. Our analysis includes both quantitative and qualitative reviews. We base our quantitative analysis on the forecasted cash flows of the entity, and our qualitative analysis on our review of the design of the entity, its organizational structure including decision-making ability, and relevant financial agreements. We also use our qualitative analyses to determine if we must consolidate a variable interest entity as its primary beneficiary.

Variable interest entities related to our timeshare note securitizations

We periodically securitize, without recourse, through special purpose entities, notes receivable originated by our Timeshare segment in connection with the sale of timeshare interval and fractional products. These securitizations provide funding for us and transfer the economic risks and substantially all the benefits of the loans to third parties. In a securitization, various classes of debt securities that the special purpose entities issue are generally collateralized by a single tranche of transferred assets, which consist of timeshare notes receivable. We service the notes receivable. With each securitization, we may retain a portion of the securities, subordinated tranches, interest-only strips, subordinated interests in accrued interest and fees on the securitized receivables or, in some cases, overcollateralization and cash reserve accounts.

Under GAAP as it existed prior to 2010, these entities met the definition of QSPEs, and we were not required to evaluate them for consolidation. We began evaluating these entities for consolidation when we implemented the new Transfers of Financial Assets and Consolidation standards in the 2010 first quarter. We created these entities to serve as a mechanism for holding assets and related liabilities, and the entities have no equity investment at risk, making them variable interest entities. We continue to service the notes, transfer all proceeds collected to these special purpose entities, and retain rights to receive benefits that are potentially significant to the entities. Accordingly, we concluded under the new Transfers of Financial Assets and Consolidation standards that we are the entities’ primary beneficiary and, therefore, consolidate them. Please see Footnote No. 1, “Summary of Significant Accounting Policies,” for additional information, including the impact of initial consolidation of these entities.

At year-end 2010, consolidated assets included in our Balance Sheet that are collateral for the obligations of these variable interest entities had a carrying amount of $1,081 million, comprised of $118 million of current notes receivable and $911 million of long-term notes receivable (each net of reserves), $7 million of interest receivable and $31 million and $14 million, respectively, of current and long-term restricted cash. Further, at year-end 2010, consolidated liabilities included in our Balance Sheet for these variable interest entities had a carrying amount of $1,020 million, comprised of $3 million of interest payable, $126 million of current portion of long-term debt, and $891 million of long-term debt. The noncontrolling interest balance was zero. The creditors of these entities do not have general recourse to us. As a result of our involvement with these entities, we recognized $147 million of interest income, offset by $51 million of interest expense to investors, and $4 million in debt issuance cost amortization.

The following table shows cash flows between us and the timeshare notes securitization variable interest entities:


Cash inflows:	2010
Proceeds from securitization	$	215
Principal receipts		231
Interest receipts		142
Reserve release		3

Total		591


Cash outflows:
Principal to investors	$	(230	)
Repurchases		(93	)
Interest to investors		(53	)

Total		(376	)


Net Cash Flows	$	215

Under the terms of our timeshare note securitizations, we have the right at our option to repurchase defaulted mortgage notes at the outstanding principal balance. The transaction documents typically limit such repurchases to 10 to 15 percent of the transaction’s initial mortgage balance. We made voluntary repurchases of defaulted notes of $68 million during 2010, $81 million during 2009, and $56 million during 2008. We also made voluntary repurchases of $25 million of other non-defaulted notes during 2010. Our maximum exposure to loss relating to the entities that own these notes is the overcollateralization amount (the difference between the loan collateral balance and the balance on the outstanding notes), plus cash reserves and any residual interest in future cash flows from collateral.

Other variable interest entities

In 2010, we completed the acquisition of the noncontrolling interest in an entity that develops and markets fractional ownership and residential interests. We had previously concluded that the entity was a variable interest entity because the voting rights were not proportionate to the economic interests and we had consolidated the entity because we were the primary beneficiary. Following our acquisition of the noncontrolling interest, we determined that this now wholly-owned entity was no longer a variable interest entity.

In 2010, we caused the sale of substantially all of the assets and liabilities of an entity in which we have a call option on the equity, resulting in an $18 million gain and net cash flow of $38 million. We had previously concluded that the entity, which holds property and land acquired for timeshare development that we operated as a hotel, was a variable interest entity because the equity investment at risk was not sufficient to permit it to finance its activities without additional support from other parties. We concluded we were the primary beneficiary because we had ultimate power to direct the activities that most significantly impact the entity’s economic performance. Our involvement with the entity did not have a material effect on our financial performance or cash flows prior to 2010.

We have an equity investment in and a loan receivable due from a variable interest entity that develops and markets fractional ownership and residential interests. We concluded that the entity is a variable interest entity because the equity investment at risk is not sufficient to permit the entity to finance its activities without additional support from other parties. We have determined that we are not the primary beneficiary as power to direct the activities that most significantly impact economic performance of the entity is shared among the variable interest holders, and therefore do not consolidate the entity. In 2009, we fully impaired our equity investment and certain loans receivable due from the entity. In 2010, the continued application of equity losses to our outstanding loan receivable balance reduced its carrying value to zero. We may fund up to an additional $16 million and do not expect to recover this amount, which we have accrued and included in current liabilities. See Footnote No. 18, “Timeshare Strategy-Impairment Charges,” for additional information. We do not have any remaining exposure to loss related to this entity.

In conjunction with the transaction with CTF described more fully in Footnote No. 8, “Acquisitions and Dispositions,” of our Annual Report on Form 10-K for 2007, under the caption “2005 Acquisitions,” we manage hotels on behalf of tenant entities 100 percent owned by CTF, which lease the hotels from third-party owners. Due to certain provisions in the management agreements, we account for these contracts as operating leases. At the end of 2010 we managed ten hotels on behalf of three tenant entities. The entities have minimal equity and minimal assets comprised of hotel working capital and furniture, fixtures, and equipment. In conjunction with the 2005 transaction, CTF had placed money in a trust account to cover cash flow shortfalls and to meet rent payments. In turn, we released CTF from its guarantees fully in connection with seven of these properties and partially in connection with the other three properties. At year-end 2010, the trust account held less than $1 million. The tenant entities are variable interest entities because the holder of the equity investment at risk, CTF, lacks the ability through voting rights to make key decisions about the entities’ activities that have a significant effect on the success of the entities. We do not consolidate the entities because we do not bear the majority of the expected losses. We are secondarily liable (after exhaustion of funds from the trust account) for rent payments for seven of the ten hotels if there are cash flow shortfalls. Future minimum lease payments through the end of the lease term for these hotels totaled approximately $49 million. In addition, we are secondarily liable for rent payments of up to an aggregate cap of $15 million for the three other hotels if there are cash flow shortfalls. Our maximum exposure to loss is limited to the rent payments and certain other tenant obligations under the lease, for which we are secondarily liable.

RELATED PARTY TRANSACTIONS

Disclosure of variable interest entities (VIE), including, but not limited to the nature, purpose, size, and activities of the VIE, the carrying amount and classification of consolidated assets that are collateral for the VIE's obligations, lack of recourse if creditors (or beneficial interest holders) of a consolidated VIE have no recourse to the general credit of the primary beneficiary. An enterprise that holds a significant variable interest in a VIE but is not the primary beneficiary may disclose the nature of its involvement with the VIE and when that involvement began, the nature, purpose, size, and activities of the VIE and the enterprise's maximum exposure to loss as a result of its involvement with the VIE.

+ References+ Details

LEASES

12 Months Ended

Dec. 31, 2010

LEASES

21.

LEASES

We have summarized our future obligations under operating leases at year-end 2010, below:


*($ in millions)*	Minimum Lease Payments
Fiscal Year
2011	$	143
2012		145
2013		129
2014		117
2015		115
Thereafter		862

Total minimum lease payments where we are the primary obligor	$	1,511

Most leases have initial terms of up to 20 years and contain one or more renewal options, generally for five- or 10-year periods. These leases provide for minimum rentals and additional rentals based on our operations of the leased property. The total minimum lease payments above include $338 million, representing obligations of consolidated subsidiaries that are non-recourse to us.

The foregoing table does not reflect the following $58 million in aggregate minimum lease payments relating to the CTF leases further discussed in Footnote No. 20, “Variable Interest Entities,” $18 million in 2011; $15 million in 2012; $12 million in 2013; $8 million in 2014; $4 million in 2015; and $1 million thereafter.

The following table details the composition of rent expense associated with operating leases for the last three years:


*($ in millions)*	2010		2009		2008
Minimum rentals	$	252	$	262	$	283
Additional rentals		67		63		67

	$	319	$	325	$	350

We have summarized our future obligations under capital leases at year-end 2010 in the following table:


*($ in millions)*	Minimum Lease Payments
Fiscal Year
2011	$	1
2012		1
2013		1
2014		1
2015		1
Thereafter		4

Total minimum lease payments		9
Less: amount representing interest		(3	)

Present value of net minimum lease payments	$	6

The “Long-term debt” caption in the accompanying Balance Sheets includes $6 million for year-end 2010 and $6 million for year-end 2009 that represents the present value of net minimum lease payments associated with capital leases.

RELATED PARTY TRANSACTIONS

12 Months Ended

Dec. 31, 2010

22.

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 $1 million of our consolidated retained earnings at year-end 2010.

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

Income Statement Data


*($ in millions)*	2010			2009			2008
Base management fees	$	35		$	44		$	49
Franchise fees		0			0			0
Incentive management fees		3			2			11
Cost reimbursements		270			260			340
Owned, leased, corporate housing, and other		4			0			0

Total revenue	$	312		$	306		$	400

General, administrative, and other	$	(1	)	$	(1	)	$	(1	)
Reimbursed costs		(270	)		(260	)		(340	)
Gains and other income		6			6			12
Interest expense-capitalized		5			4			4
Interest income		3			8			3
Equity in (losses) earnings		(29	)		(66	)		15
Timeshare strategy-impairment charges (non-operating)		0			(138	)		0
Provision for income taxes		0			0			1

Balance Sheet Data


*($ in millions)*	At Year-End 2010			At Year-End 2009
Current assets-accounts and notes receivable	$	9		$	10
Deferred development		2			2
Contract acquisition costs		28			26
Equity and cost method investments		190			208
Notes receivable		2			10
Deferred taxes, net asset		22			25
Other		0			1
Current liabilities:
Other		(25	)		(31	)
Other long-term liabilities		(8	)		(13	)

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

Income Statement Data


*($ in millions)*	2010			2009			2008
Sales	$	914		$	850		$	1,342

Net (loss) income	$	(77	)	$	(241	)	$	122

Balance Sheet Summary


*($ in millions)*	At Year-End 2010		At Year-End 2009
Assets (primarily comprised of hotel real estate managed by us)	$	3,186	$	3,228

Liabilities	$	2,446	$	2,339

RELATIONSHIP WITH MAJOR CUSTOMER

This element may be used for the entire related party transactions disclosure as a single block of text. Disclosure may include: 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+ Details

RELATIONSHIP WITH MAJOR CUSTOMER

12 Months Ended

Dec. 31, 2010

23.

RELATIONSHIP WITH MAJOR CUSTOMER

At year-end 2010 and 2009, Host Hotels & Resorts, Inc., formerly known as Host Marriott Corporation, and its affiliates (“Host”) owned or leased 146 lodging properties that we operated under long-term agreements. We recognized the following revenues (which are included in our North American Full-Service, North American Limited-Service, Luxury, and International segments) from lodging properties owned or leased over the last three years: $2,036 million in 2010, $2,096 million in 2009, and $2,539 in 2008.

Host is also a partner in certain unconsolidated partnerships that own lodging properties that we operate under long-term agreements. As of year-end 2010 and 2009, Host was affiliated with five such properties. We recognized the following revenues (which are included in our North American Full-Service, Luxury, and International segments for 2010, 2009 and 2008, as well as our North American Limited-Service segment for 2008) from lodging properties associated with Host partnerships over the last three years: $112 million in 2010, $104 million in 2009, and $411 million in 2008.

SUBSEQUENT EVENT

12 Months Ended

Dec. 31, 2010

SUBSEQUENT EVENT

24.

SUBSEQUENT EVENT

On February 14, 2011, we announced a plan to split the company’s businesses into two separate, publicly traded companies. Under the plan, we expect to spin off our timeshare operations and development business as a new independent company through a special tax-free dividend to our shareholders in late 2011. The new company will focus on the timeshare business as the exclusive developer and operator of timeshare, fractional, and related products under the Marriott brand and the exclusive developer of fractional and related products under the Ritz-Carlton brand. After the split, we will concentrate on the lodging management and franchise business. We will receive franchise fees from the new timeshare company’s use of the Marriott timeshare and Ritz-Carlton fractional brands.

As two separate public companies, Marriott and the new timeshare company will have separate boards of directors. William J. Shaw, who recently announced his retirement as vice chairman of Marriott and also resigned from its board, will become chairman of the board of the new timeshare company and Deborah Marriott Harrison, senior vice president of government affairs for Marriott, will serve as a board member of the new timeshare company. J.W. Marriott, Jr. will remain chairman of the board and chief executive officer of Marriott. Stephen P. Weisz, president of Marriott’s timeshare business since 1997 and a 39-year Marriott veteran, will become chief executive officer of the new company. We expect that the common stock of the new timeshare company will be listed on the New York Stock Exchange. We do not expect that the new timeshare company will pay a quarterly cash dividend or be investment grade in the near term.

We expect that the new timeshare company will file a Form 10 registration statement with the SEC in the second quarter 2011. At that time, we will disclose additional details about the proposed transaction, including respective pro forma balance sheets and pro forma income statements of the two companies. The transaction is subject to the receipt of normal and customary regulatory approvals and third-party consents, the execution of inter-company agreements, receipt of a favorable ruling from the Internal Revenue Service, arrangement of adequate financing facilities, final approval by our board of directors, and other related matters. The transaction will not require shareholder approval and will have no impact on Marriott’s contractual obligations to the existing securitizations. Subject to the completion of this ongoing work, and the receipt of regulatory approvals, the spin-off should be completed before year end 2011.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)

12 Months Ended

Dec. 31, 2010

Basis of Presentation

Basis of Presentation

Adoption of New Accounting Standards Resulting in Consolidation of Special Purpose Entities

Adoption of New Accounting Standards Resulting in Consolidation of Special Purpose Entities

Fiscal Year

Fiscal Year


Fiscal Year	Fiscal Year-End Date	Fiscal Year	Fiscal Year-End Date
2010	December 31, 2010	2005	December 30, 2005
2009	January 1, 2010	2004	December 31, 2004
2008	January 2, 2009	2003	January 2, 2004
2007	December 28, 2007	2002	January 3, 2003
2006	December 29, 2006	2001	December 28, 2001

Revenue Recognition

Revenue Recognition

Franchise Fee Revenue: We recognize franchise fees as revenue in each accounting period as fees are earned from the franchisee.

Owned and Leased Units: We recognize room sales and revenues from other guest services for our owned and leased units when rooms are occupied and services have been rendered.

Timeshare Residential (Stand-Alone Structures): We recognize sales under the full accrual method of accounting when we receive our proceeds and transfer title at settlement.

Cost Reimbursements: We recognize cost reimbursements from managed, franchised, and timeshare properties when we incur the related reimbursable costs.

Other Revenue: Includes third-party licensing fees, branding fees for third party residential sales and credit card licensing, land rental income, and other revenue.

Ground Leases

Ground Leases

Real Estate Sales

Real Estate Sales

Profit Sharing Plan

Profit Sharing Plan

Self-Insurance Programs

Self-Insurance Programs

Our Rewards Programs

Our Rewards Programs

Guarantees

Guarantees

Rebates and Allowances

Rebates and Allowances

Cash and Equivalents

Cash and Equivalents

We consider all highly liquid investments with an initial maturity of three months or less at date of purchase to be cash equivalents.

Restricted Cash

Restricted Cash

Assets Held for Sale

Assets Held for Sale

•

management commits to a plan to sell a property;

•

it is unlikely that the disposal plan will be significantly modified or discontinued;

•

the property is available for immediate sale in its present condition;

•

actions required to complete the sale of the property have been initiated;

•

sale of the property is probable and we expect the completed sale will occur within one year; and

•

the property is actively being marketed for sale at a price that is reasonable given its current market value.

At year-end 2010 and 2009, we had no assets held for sale or liabilities related to assets held for sale.

Loan Loss Reserves - Senior, Mezzanine, and Other Loans

Loan Loss Reserves

Senior, Mezzanine, and Other Loans

Loan Loss Reserves - Loans to Timeshare Owners

Loans to Timeshare Owners

For additional information on our notes receivable, including information on the related reserves, see Footnote No. 11, “Notes Receivable.”

Valuation of Goodwill

Valuation of Goodwill

For additional information related to goodwill, including the amounts of goodwill by segment, see Footnote No. 17, “Business Segments.”

Investments

Investments

Costs Incurred to Sell Real Estate Projects

Costs Incurred to Sell Real Estate Projects

Valuation of Intangibles and Long-Lived Assets

Valuation of Intangibles and Long-Lived Assets

Valuation of Investments in Ventures

Valuation of Investments in Ventures

Timeshare Segment Residual Interests

Timeshare Segment Residual Interests

Fair Value Measurements

Fair Value Measurements

Level 1 inputs are unadjusted quoted prices in active markets for identical assets or liabilities that we have the ability to access at the measurement date.

Derivative Instruments

Derivative Instruments

Non-U.S. Operations

Non-U.S. Operations

Legal Contingencies

Legal Contingencies

Income Taxes

Income Taxes

For information about income taxes and deferred tax assets and liabilities, see Footnote No. 2, “Income Taxes.”

New Transfers of Financial Assets and Consolidation Standards

Accounting Standards Update No. 2009-13 "Revenue Recognition (Topic 605): Multiple-Deliverable Revenue Arrangements" ("ASU No. 2009-13")

Accounting Standards Update No. 2009-13 “Revenue Recognition (Topic 605): Multiple-Deliverable Revenue Arrangements” (“ASU No. 2009-13”)

Accounting Standards Update No. 2010-06 "Fair Value Measurements and Disclosures (Topic 820): Improving Disclosures about Fair Value Measurements" ("ASU No. 2010-06")

Accounting Standards Update No. 2010-06 “Fair Value Measurements and Disclosures (Topic 820): Improving Disclosures about Fair Value Measurements” (“ASU No. 2010-06”)

Accounting Standards Update No. 2010-09 "Subsequent Events (Topic 855): Amendments to Certain Recognition and Disclosure Requirements" ("ASU No. 2010-09")

Accounting Standards Update No. 2010-09 “Subsequent Events (Topic 855): Amendments to Certain Recognition and Disclosure Requirements” (“ASU No. 2010-09”)

Accounting Standards Update No. 2010-20 "Receivables (Topic 310): Disclosures about the Credit Quality of Financing Receivables and the Allowance for Credit Losses" ("ASU No. 2010-20")

Accounting Standards Update No. 2010-20 “Receivables (Topic 310): Disclosures about the Credit Quality of Financing Receivables and the Allowance for Credit Losses” (“ASU No. 2010-20”)

Future Adoption of Accounting Standards

Future Adoption of Accounting Standards

ASU No. 2010-06 – Provisions Effective in the 2011 First Quarter

Cost Method Investments, Valuation Policy

We estimate the fair value of our cost method investments by applying a cap rate to stabilized earnings (a market approach).

Earnings Per Share, Dilutive Securities Policy

Inventory Valuation Policy

We primarily value Timeshare segment interval, fractional ownership, and residential products at the lower of cost or fair market value, in accordance with applicable accounting guidance, and we generally value operating supplies at the lower of cost (using the first-in, first-out method) or market. Consistent with recognized industry practice, we classify Timeshare segment interval, fractional ownership, and residential products inventory, which has an operating cycle that exceeds 12 months, as a current asset.

Notes Receivable Interest Accrual Policy, Senior, Mezzannine and Other Loans

We reflect interest income associated with “Senior, mezzanine, and other loans” in the “Interest income” caption in our Income Statements.

Notes Receivable Interest Accrual Policy, Loans to Timeshare Owners

INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2010

The (Provision for) Benefit from Income Taxes

Our (provision for)/benefit from income taxes consists of:


*($ in millions)*	2010			2009			2008
Current -U.S. Federal	$	117		$	(169	)	$	(275	)
-U.S. State		(7	)		(12	)		(40	)
-Non-U.S.		(51	)		(61	)		(85	)

		59			(242	)		(400	)

Deferred -U.S. Federal		(150	)		234			7
-U.S. State		(14	)		28			8
-Non-U.S.		12			45			35

		(152	)		307			50

	$	(93	)	$	65		$	(350	)

Unrecognized Tax Benefit Reconciliation

The following table reconciles our unrecognized tax benefit balance for each year from the beginning of 2008 to the end of 2010:


*($ in millions)*	Amount
Unrecognized tax benefit at beginning of 2008	$	132
Change attributable to tax positions taken during a prior period		92
Change attributable to tax positions taken during the current period		5
Decrease attributable to settlements with taxing authorities		(86	)
Decrease attributable to lapse of statute of limitations		(2	)

Unrecognized tax benefit at end of 2008		141
Change attributable to tax positions taken during a prior period		99
Change attributable to tax positions taken during the current period		22
Decrease attributable to settlements with taxing authorities		(10	)
Decrease attributable to lapse of statute of limitations		(3	)

Unrecognized tax benefit at end of 2009		249
Change attributable to tax positions taken during a prior period		(187	)
Change attributable to tax positions taken during the current period		25
Decrease attributable to settlements with taxing authorities		(47	)
Decrease attributable to lapse of statute of limitations		(1	)

Unrecognized tax benefit at end of 2010	$	39

Total Deferred Tax Assets and Liabilities

Total deferred tax assets and liabilities as of year-end 2010 and year-end 2009, were as follows:


*($ in millions)*	2010			2009
Deferred tax assets	$	1,236		$	1,307
Deferred tax liabilities		(100	)		(70	)

Net deferred taxes	$	1,136		$	1,237

Composition of Net Deferred Tax Balances

The following table details the composition of the net deferred tax balances at year-end 2010 and 2009.


*($ in millions)* Balance Sheet Caption	At Year-End 2010			At Year-End 2009
Current deferred taxes, net	$	246		$	255
Long-term deferred taxes, net		932			1,020
Current liabilities, other		(19	)		(18	)
Long-term liabilities, other		(23	)		(20	)

Net deferred taxes	$	1,136		$	1,237

Types of Temporary Differences and Carry-Forwards that Significantly Effect Deferred Tax Assets and Liabilities


*($ in millions)*	2010			2009
Self-insurance	$	22		$	15
Employee benefits		296			278
Deferred income		18			22
Reserves		213			185
Frequent guest program		104			115
Joint venture interests		99			148
ASC 740 deferred taxes ⁽¹⁾		5			99
Tax credits		235			223
Net operating loss carry-forwards		204			194
Timeshare financing		0			(23	)
Property, equipment, and intangible assets		18			(17	)
Other, net		(16	)		55

Deferred taxes		1,198			1,294
Less: valuation allowance		(62	)		(57	)

Net deferred taxes	$	1,136		$	1,237

⁽¹⁾	Primarily related to the treatment of funds received from certain non-U.S. subsidiaries, as discussed earlier in this footnote.

Reconciliation of the U.S. Statutory Tax Rate to Our Effective Income Tax Rate for Continuing Operations

The following table reconciles the U.S. statutory tax rate to our effective income tax rate for continuing operations:


	2010			2009			2008
U.S. statutory tax rate		35.0	%		(35.0	)%		35.0	%
U.S. State income taxes, net of U.S. federal tax benefit		2.4			(2.1	)		2.6
Nondeductible expenses		0.5			0.5			0.6
Non-U.S. income		(3.7	)		5.2			(1.6	)
Audit activity ⁽¹⁾		(15.6	)		13.7			11.2
Company owned life insurance		0.0			(2.0	)		2.7
Change in valuation allowance		0.9			2.2			0.0
Tax credits		(0.4	)		(0.4	)		(1.2	)
Other, net		(2.3	)		2.3			1.1

Effective rate		16.8	%		(15.6	)%		50.4	%

⁽¹⁾	Primarily related to the treatment of funds received from certain non-U.S. subsidiaries, as discussed earlier in this footnote.

DISCONTINUED OPERATIONS-SYNTHETIC FUEL (Tables)

12 Months Ended

Dec. 31, 2010

Discontinued Operations - Synthetic Fuel

Income Statement Summary


*($ in millions)*	2010		2009		2008
Revenue	$	0	$	0	$	1


Operating loss	$	0	$	0	$	(4	)

Loss from discontinued operations before income taxes		0		0		(4	)


Tax (provision) benefit		0		0		(3	)
Tax credits		0		0		10

Total tax benefit		0		0		7


Income (loss) from discontinued operations, net of tax	$	0	$	0	$	3

SHARE-BASED COMPENSATION (Tables)

12 Months Ended

Dec. 31, 2010

Additional Information on RSUs

The following table provides additional information on RSUs for the last three fiscal years:


	2010		2009		2008
Share-based compensation expense (in millions)	$	76	$	71	$	85
Weighted average grant-date fair value (per share)	$	27	$	19	$	30
Aggregate intrinsic value of converted and distributed (in millions)	$	95	$	39	$	90

Changes in Outstanding Restricted Stock Unit Grants

The following table shows the 2010 changes in our outstanding RSU grants:


	Number of RSUs (in millions)			Weighted Average Grant-Date Fair Value
Outstanding at year-end 2009		7.1		$	30
Granted during 2010		3.8			27
Distributed during 2010		(2.8	)		33
Forfeited during 2010		(0.4	)		30

Outstanding at year-end 2010		7.7			30

Changes in Outstanding Stock Option Program Awards

The following table shows the 2010 changes in our outstanding Stock Option Program awards:


	Number of Options (in millions)			Weighted Average Exercise Price
Outstanding at year-end 2009		32.2		$	18
Granted during 2010		0.1			27
Exercised during 2010		(8.2	)		18
Forfeited during 2010		0.0			20

Outstanding at year-end 2010		24.1			18

Stock Options Issued Under the Stock Option Program Awards

The following table shows the stock options issued under the Stock Option Program awards outstanding at year-end 2010:


					Outstanding						Exercisable
Range of Exercise Prices					Number of Stock Options (in millions)		Weighted Average Exercise Price		Weighted Average Remaining Life (in years)		Number of Stock Options (in millions)		Weighted Average Exercise Price		Weighted Average Remaining Life (in years)
$	8	to	$	12		0.5	$	12		1		0.5	$	12		1
	13	to		17		16.3		15		3		16.3		15		3
	18	to		22		1.9		19		2		1.9		19		2
	23	to		49		5.4		26		4		5.2		25		4

	8	to		49		24.1		18		3		23.9		18		3

Number of Options Granted and Associated Weighted Average Grant-Date Fair Values and Weighted Average Exercise Prices

The following table shows the number of options we granted in the last three years and the associated weighted average grant-date fair values and weighted average exercise prices:


	2010		2009		2008
Options granted		53,304		0		218,000
Weighted average grant-date fair value	$	10	$	0	$	12
Weighted average exercise price	$	18	$	0	$	31

Intrinsic Value of Outstanding Stock Options and Exercisable Stock Option

The following table shows the intrinsic value of outstanding stock options and exercisable stock options at year-end 2010 and 2009:


*($ in millions)*	2010		2009
Outstanding stock options	$	580	$	312
Exercisable stock options		578		313

Changes in Outstanding SARs

The following table shows the 2010 changes in our outstanding SARs:


	Number of SARs (in millions)			Weighted Average Exercise Price
Outstanding at year-end 2009		3.9		$	32
Granted during 2010		1.1			27
Exercised during 2010		(0.1	)		33
Forfeited during 2010		(0.1	)		31

Outstanding at year-end 2010		4.8			31

Number of Employee SARs and Non-Employee SARs Granted, Associated Weighted Average Base Values, And Weighted Average Grant-Date Fair Values


Employee SARs	2010		2009		2008
Employee SARs granted (in millions)		1.1		0.5		2.7
Weighted average base value	$	27	$	15	$	33
Weighted average grant-date fair value	$	10	$	5	$	12

Non-employee SARs	2010		2009		2008
Non-employee SARs granted		0		5,600		4,000
Weighted average base value	$	0	$	23	$	36
Weighted average grant-date fair value	$	0	$	10	$	15

Assumptions for Stock Options and Employee SARs

The following table shows the assumptions we used for stock options and employee SARs for 2010, 2009, and 2008:


	2010			2009			2008
Expected volatility		32	%		32	%		29	%
Dividend yield		0.71	%		0.95	%		0.80-0.95	%
Risk-free rate		3.3	%		2.2	%		3.4-3.9	%
Expected term (in years)		7.0			7.0			6.9

Share-Based Compensation Expense, Number of Deferred Stock Units Granted, Weighted Average Grant-date Fair Value, and Aggregate Intrinsic Value of Non-Employee Director Deferred Stock Units


	2010		2009		2008
Share-based compensation expense	$	932,000	$	715,000	$	684,000
Non-employee director deferred stock units granted		34,000		39,000		25,000
Weighted average grant-date fair value (per share)	$	35	$	23	$	33
Aggregate intrinsic value (in millions)	$	1.2	$	0.5	$	0.4

FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables)

12 Months Ended

Dec. 31, 2010

Carrying Values and Fair Values of Non-Current Financial Assets and Liabilities

The following table shows the carrying values and the fair values of non-current financial assets and liabilities that qualify as financial instruments, determined in accordance with current guidance for disclosures on the fair value of financial instruments.


	At Year-End 2010						At Year-End 2009
*($ in millions)*	Carrying Amount			Fair Value			Carrying Amount			Fair Value
Cost method investments	$	60		$	63		$	41		$	43
Loans to timeshare owners—securitized		910			1,097			0			0
Loans to timeshare owners—non-securitized		169			176			352			368
Senior, mezzanine, and other loans—non-securitized		184			130			100			77
Residual interests and effectively owned notes		0			0			197			197
Restricted cash		30			30			22			22
Marketable securities		18			18			18			18

Total long-term financial assets	$	1,371		$	1,514		$	730		$	725

Non-recourse debt associated with securitized notes receivable	$	(891	)	$	(745	)	$	0		$	0
Senior Notes		(1,631	)		(1,771	)		(1,627	)		(1,707	)
$2,404 Effective Credit Facility		0			0			(425	)		(425	)
Other long-term debt		(142	)		(138	)		(154	)		(154	)
Other long-term liabilities		(71	)		(67	)		(86	)		(75	)
Long-term derivative liabilities		(1	)		(1	)		(1	)		(1	)

Total long-term financial liabilities	$	(2,736	)	$	(2,722	)	$	(2,293	)	$	(2,362	)

EARNINGS PER SHARE (Tables)

12 Months Ended

Dec. 31, 2010

Reconciliation of the Earnings (Losses) and Number of Shares Used in Calculations of Basic and Diluted Earnings Per Share Attributable to Marriott Shareholders


*(in millions, except per share amounts)*	2010		2009			2008
Computation of Basic Earnings Per Share Attributable to Marriott Shareholders
Income (loss) from continuing operations	$	458	$	(353	)	$	344
Net losses attributable to noncontrolling interests		0		7			15

Income (loss) from continuing operations attributable to Marriott shareholders	$	458	$	(346	)	$	359
Weighted average shares outstanding		362.8		356.4			355.6

Basic earnings (losses) per share from continuing operations attributable to Marriott shareholders	$	1.26	$	(0.97	)	$	1.01

Computation of Diluted Earnings Per Share Attributable to Marriott Shareholders
Income (loss) from continuing operations attributable to Marriott shareholders	$	458	$	(346	)	$	359

Weighted average shares outstanding		362.8		356.4			355.6
Effect of dilutive securities
Employee stock option and SARs plan		11.0		0.0			11.7
Deferred stock incentive plan		1.1		0.0			1.6
Restricted stock units		3.4		0.0			1.8

Shares for diluted earnings per share		378.3		356.4			370.7

Diluted earnings (losses) per share from continuing operations attributable to Marriott shareholders	$	1.21	$	(0.97	)	$	0.97

GOODWILL AND INTANGIBLE ASSETS (Tables)

12 Months Ended

Dec. 31, 2010

Composition of Other Intangible Assets

The following table details the composition of our other intangible assets:


*($ in millions)*	At Year-End 2010			At Year-End 2009
Contract acquisition costs and other	$	1,145		$	1,073
Accumulated amortization		(377	)		(342	)

	$	768		$	731

Carrying Amount of Goodwill

The following table details the carrying amount of goodwill:


*($ in millions)*	At Year-End 2010			At Year-End 2009
Goodwill	$	1,003		$	1,003
Accumulated amortization		(128	)		(128	)

	$	875		$	875

NOTES RECEIVABLE (Tables)

12 Months Ended

Dec. 31, 2010

Composition of our Notes Receivable Balances (Net of Reserves and Unamortized Discounts)

The following table shows the composition of our notes receivable balances (net of reserves and unamortized discounts):


*($ in millions)*	2010			2009
Loans to timeshare owners – securitized	$	1,028		$	0
Loans to timeshare owners – non-securitized		225			424
Senior, mezzanine, and other loans – non-securitized		191			196

		1,444			620
Less current portion
Loans to timeshare owners – securitized		(118	)		0
Loans to timeshare owners – non-securitized		(55	)		(72	)
Senior, mezzanine, and other loans – non-securitized		(7	)		(96	)

	$	1,264		$	452

Composition of our Long Term Notes Receivable Balances (Net of Reserves and Unamortized Discounts)

The following table shows the composition of our long-term notes receivable balances (net of reserves and unamortized discounts):


*($ in millions)*	2010		2009
Loans to timeshare owners	$	1,080	$	352
Loans to equity method investees		2		10
Other notes receivable		182		90

	$	1,264	$	452

Notes Receivable Principal Payments (Net of Reserves and Unamortized Discounts) and Interest Rates


Notes Receivable Principal Payments (net of reserves and unamortized discounts) and Interest Rates

*($ in millions)*	Non-Securitized Notes Receivable			Securitized Notes Receivable			Total
2011	$	62		$	118		$	180
2012		49			123			172
2013		34			130			164
2014		25			131			156
2015		94			126			220
Thereafter		152			400			552

Balance at year-end 2010	$	416		$	1,028		$	1,444


Weighted average interest rate at year-end 2010		8.9	%		13.1	%		11.9	%


Range of stated interest rates at year-end 2010		0.0 to 19.5	%		5.2 to 19.5	%		0.0 to 19.5	%

Notes Receivable Reserves



Notes Receivable Reserves

*($ in millions)*	Non-Securitized Notes Receivable		Securitized Notes Receivable		Total
Balance at year-end 2009	$	210	$	0	$	210

Balance at year-end 2010	$	203	$	89	$	292

Notes Receivable Unamortized Discounts



Notes Receivable Unamortized Discounts ⁽¹⁾

*($ in millions)*	Non-Securitized Notes Receivable		Securitized Notes Receivable		Total
Balance at year-end 2009	$	16	$	0	$	16

Balance at year-end 2010	$	13	$	0	$	13

⁽¹⁾	The discounts for both year-end 2010 and 2009 relate entirely to our Senior, Mezzanine, and Other Loans

The following table summarizes the activity related to our “Senior, mezzanine, and other loans” notes receivable reserve for 2008, 2009, and 2010:


*($ in millions)*	Notes Receivable Reserve
Balance at year-end 2007	$	92
Additions		22
Reversals		(5	)
Write-offs		(3	)
Transfers and other		7

Balance at year-end 2008	$	113
Additions		84
Write-offs		(28	)
Transfers and other		14

Balance at year-end 2009	$	183
Additions		4
Write-offs		(120	)
Transfers and other		7

Balance at year-end 2010	$	74

The following table summarizes the activity related to our “Loans to timeshare owners” notes receivable reserve for 2008, 2009, and 2010:


*($ in millions)*	Non-Securitized Notes Receivable Reserve			Securitized Notes Receivable Reserve			Total
Balance at year-end 2007	$	19		$	0		$	19
Additions for current year securitizations		36			0			36
Write-offs		(20	)		0			(20	)

Balance at year-end 2008		35			0			35
Additions for current year securitizations		5			0			5
Write-offs		(13	)		0			(13	)

Balance at year-end 2009		27			0			27
Additions for current year securitizations		32			0			32
Additions for new securitizations, net of clean-up call		(18	)		18			0
Write-offs		(79	)		0			(79	)
One-time impact of the new Transfers of Financial Assets and Consolidation standards ⁽¹⁾		84			135			219
Defaulted note repurchase activity ⁽²⁾		68			(68	)		0
Other ⁽³⁾		15			4			19

Balance at year-end 2010	$	129		$	89		$	218

⁽¹⁾	The non-securitized notes receivable reserve relates to the implementation of the new Transfers of Financial Assets and Consolidation standards, which required us to establish reserves for certain previously securitized and subsequently repurchased notes held at January 2, 2010.

⁽²⁾	Decrease in securitized reserve and increase in non-securitized reserve was attributable to the transfer of the reserve when we repurchased the notes.

⁽³⁾	Consists of static pool and default rate assumption changes.

Securitized and Non-Securitized Timeshare Notes Receivable, Loans on Nonaccrual Status


*($ in millions)*	Non-Securitized Notes Receivable		Securitized Notes Receivable		Total
Investment in loans on nonaccrual status at year-end 2010	$	113	$	15	$	128

Investment in loans on nonaccrual status at year-end 2009	$	113	$	0	$	113

The Aging of the Recorded Investment in Loans to Timeshare Owners

The following table shows the aging of the recorded investment (before reserves) in Loans to Timeshare owners.


*($ in millions)*	At Year-End 2010
31 – 90 days past due	$	38
91 – 150 days past due		24
Greater than 150 days past due		104

Total past due		166
Current		1,305

Total loans to timeshare owners	$	1,471

LONG-TERM DEBT (Tables)

12 Months Ended

Dec. 31, 2010

Long-Term Debt

The following table provides detail on our long-term debt balances:


*($ in millions)*	2010			2009
Non-recourse debt associated with securitized notes receivable, interest rates ranging from 0.31% to 7.20% (weighted average interest rate of 4.96%)	$	1,016		$	0
Less current portion		(126	)		0

		890			0


Senior Notes:
Series F, interest rate of 4.625%, face amount of $348, maturing June 15, 2012 (effective interest rate of 5.02%) ⁽¹⁾		348			347
Series G, interest rate of 5.810%, face amount of $316, maturing November 10, 2015 (effective interest rate of 6.53%) ⁽¹⁾		304			302
Series H, interest rate of 6.200%, face amount of $289, maturing June 15, 2016 (effective interest rate of 6.30%) ⁽¹⁾		289			289
Series I, interest rate of 6.375%, face amount of $293, maturing June 15, 2017 (effective interest rate of 6.45%) ⁽¹⁾		291			291
Series J, interest rate of 5.625%, face amount of $400, maturing February 15, 2013 (effective interest rate of 5.71%) ⁽¹⁾		399			398
$2,404 Effective Credit Facility		0			425
Other		182			246

		1,813			2,298
Less current portion		(12	)		(64	)

		1,801			2,234

	$	2,691		$	2,234

⁽¹⁾	Face amount and effective interest rate are as of year-end 2010.

Debt Principal Payments (Net of Unamortized Discounts)

The following tables show future principal payments (net of unamortized discounts) and unamortized discounts for our securitized and non-securitized debt.

Debt Principal Payments (net of unamortized discounts)


*($ in millions)*	Non-Recourse Debt		Other Debt		Total
2011	$	126	$	12	$	138
2012		131		360		491
2013		138		411		549
2014		139		12		151
2015		134		312		446
Thereafter		348		706		1,054

Balance at year-end 2010	$	1,016	$	1,813	$	2,829

Unamortized Debt Discounts


*($ in millions)*	Non-Recourse Debt		Other Debt		Total
Balance at year-end 2009	$	0	$	20	$	20

Balance at year-end 2010	$	0	$	16	$	16

SELF-INSURANCE RESERVE FOR LOSSES AND LOSS ADJUSTMENT EXPENSES (Tables)

12 Months Ended

Dec. 31, 2010

Self-Insurance Reserve for Losses and Loss Adjustment Expenses

The activity in the reserve for losses and loss adjustment expenses is summarized as follows:


*($ in millions)*	2010			2009
Balance at beginning of year	$	304		$	296
Less: reinsurance recoverable		(9	)		(12	)

Net balance at beginning of year		295			284

Incurred related to:
Current year		114			109
Prior year		(8	)		(6	)

Total incurred		106			103

Paid related to:
Current year		(38	)		(36	)
Prior year		(57	)		(56	)

Total paid		(95	)		(92	)

Net balance at end of year		306			295
Add: reinsurance recoverable		7			9

Balance at end of year	$	313		$	304

CONTINGENCIES (Tables)

12 Months Ended

Dec. 31, 2010

Maximum Potential Amount of Future Fundings as the Primary Obligor for Guarantees and the Liability for Expected Future Fundings

The following table shows the maximum potential amount of future fundings for guarantees where we are the primary obligor and the carrying amount of the liability for expected future fundings.


*($ in millions)* Guarantee Type	Maximum Potential Amount of Future Fundings at Year-End 2010		Liability for Expected Future Fundings at Year-End 2010
Debt service	$	29	$	3
Operating profit		121		25
Other		49		3

Total guarantees where we are the primary obligor	$	199	$	31

BUSINESS SEGMENTS (Tables)

12 Months Ended

Dec. 31, 2010

Segment Revenues

Revenues


*($ in millions)*	2010		2009		2008
North American Full-Service Segment	$	5,108	$	4,848	$	5,631
North American Limited-Service Segment		2,149		1,986		2,233
International Segment		1,245		1,145		1,544
Luxury Segment		1,563		1,413		1,659
Timeshare Segment		1,546		1,439		1,750

Total segment revenues		11,611		10,831		12,817
Other unallocated corporate		80		77		62

	$	11,691	$	10,908	$	12,879

Income (Loss) from Continuing Operations Attributable to Marriott

Income (Loss) from Continuing Operations Attributable to Marriott


*($ in millions)*	2010			2009			2008
North American Full-Service Segment	$	318		$	272		$	419
North American Limited-Service Segment		298			265			395
International Segment		169			129			246
Luxury Segment		77			17			78
Timeshare Segment		121			(679	)		28

Total segment financial results		983			4			1,166
Other unallocated corporate		(326	)		(318	)		(324	)
Interest income and interest expense⁽¹⁾		(106	)		(93	)		(124	)
Income taxes⁽²⁾		(93	)		61			(359	)

	$	458		$	(346	)	$	359

⁽¹⁾	Of the $180 million of interest expense shown on the Income Statement for year -end 2010 we allocated $55 million to our Timeshare segment.

⁽²⁾	The $61 million of income tax benefits for year-end 2009 included our benefit for income taxes of $65 million as shown in the Income Statements and taxes attributable to noncontrolling interests of $4 million.

Net Losses Attributable to Noncontrolling Interests

Net Losses Attributable to Noncontrolling Interests


*($ in millions)*	2010		2009			2008
International Segment	$	0	$	0		$	(1	)
Timeshare Segment		0		11			25

Total segment net losses attributable to noncontrolling interests		0		11			24
Provision for income taxes		0		(4	)		(9	)

	$	0	$	7		$	15

Equity in (Losses) Earnings of Equity Method Investees

Equity in (Losses) Earnings of Equity Method Investees


*($ in millions)*	2010			2009			2008
North American Full-Service Segment	$	2		$	1		$	3
North American Limited-Service Segment		(13	)		(9	)		0
International Segment		(7	)		(11	)		(2	)
Luxury Segment		(2	)		(32	)		(12	)
Timeshare Segment		(8	)		(12	)		11

Total segment equity in (losses) earnings		(28	)		(63	)		0
Other unallocated corporate		10			(3	)		15

	$	(18	)	$	(66	)	$	15

Depreciation and Amortization

Depreciation and Amortization


*($ in millions)*	2010		2009		2008
North American Full-Service Segment	$	31	$	33	$	29
North American Limited-Service Segment		19		18		20
International Segment		24		25		24
Luxury Segment		19		17		16
Timeshare Segment		36		42		46

Total segment depreciation and amortization		129		135		135
Other unallocated corporate		49		50		55

	$	178	$	185	$	190

Assets (Table)

Assets


*($ in millions)*	At Year-End 2010		At Year-End 2009
North American Full-Service Segment	$	1,203	$	1,175
North American Limited-Service Segment		464		468
International Segment		841		849
Luxury Segment		871		653
Timeshare Segment		3,310		2,653

Total segment assets		6,689		5,798
Other unallocated corporate		2,294		2,135

	$	8,983	$	7,933

Equity Method Investments (Table)


Equity Method Investments

*($ in millions)*	At Year-End 2010		At Year-End 2009
North American Full-Service Segment	$	14	$	14
North American Limited-Service Segment		87		100
International Segment		38		47
Luxury Segment		44		38
Timeshare Segment		1		2

Total segment equity method investments		184		201
Other unallocated corporate		6		7

	$	190	$	208

Goodwill

Goodwill


($ in millions)	North American Full-Service Segment			North American Limited-Service Segment			International Segment			Luxury Segment			Total Goodwill
Year-end 2008 balance:
Goodwill	$	390		$	86		$	335		$	192		$	1,003
Accumulated amortization		(55	)		(14	)		(37	)		(22	)		(128	)

	$	335		$	72		$	298		$	170		$	875

Year-end 2009 balance:
Goodwill	$	390		$	86		$	335		$	192		$	1,003
Accumulated amortization		(55	)		(14	)		(37	)		(22	)		(128	)

	$	335		$	72		$	298		$	170		$	875

Year-end 2010 balance:
Goodwill	$	390		$	86		$	335		$	192		$	1,003
Accumulated amortization		(55	)		(14	)		(37	)		(22	)		(128	)

	$	335		$	72		$	298		$	170		$	875

Capital Expenditures

Capital Expenditures


*($ in millions)*	2010		2009		2008
North American Full-Service Segment	$	7	$	18	$	117
North American Limited-Service Segment		13		9		13
International Segment		35		33		45
Luxury Segment		168		1		6
Timeshare Segment		24		28		105

Total segment capital expenditures		247		89		286
Other unallocated corporate		60		58		71

	$	307	$	147	$	357

TIMESHARE STRATEGY-IMPAIRMENT CHARGES (Tables)

12 Months Ended

Dec. 31, 2010

Composition of Impairment Charges


*($ in millions)*	Impairment Charge
2009 Operating Income Charge
Inventory impairment	$	529
Property and equipment impairment		64
Other impairments		21

Total operating income charge		614

2009 Non-Operating Income Charge
Joint venture impairment		71
Loan impairment		40
Funding liability		27

Total non-operating income charge		138

Total	$	752

Total (after-tax)	$	502

RESTRUCTURING COSTS AND OTHER CHARGES (Tables)

12 Months Ended

Dec. 31, 2010

Liability and Total Costs Incurred Through the Restructuring


*($ in millions)*	Restructuring Costs Liability at Year-End 2009		Cash Payments in 2010		Restructuring Costs Liability at Year-End 2010		Total Cumulative Restructuring Costs through 2009⁽¹⁾
Severance-Timeshare	$	4	$	3	$	1	$	29
Facilities exit costs-Timeshare		18		5		13		34
Development cancellations-Timeshare		0		0		0		10

Total restructuring costs-Timeshare		22		8		14		73

Severance-hotel development		1		1		0		4
Development cancellations-hotel development		0		0		0		22

Total restructuring costs-hotel development		1		1		0		26

Severance-above property-level management		2		2		0		7

Total restructuring costs-above property-level management		2		2		0		7

Total restructuring costs	$	25	$	11	$	14	$	106

⁽¹⁾	Includes charges recorded in the 2008 fourth quarter through year-end 2009. After 2009, we have not incurred and do not expect to incur additional restructuring expenses.

LEASES (Tables)

12 Months Ended

Dec. 31, 2010

Future Obligations Under Operating Leases

We have summarized our future obligations under operating leases at year-end 2010, below:


*($ in millions)*	Minimum Lease Payments
Fiscal Year
2011	$	143
2012		145
2013		129
2014		117
2015		115
Thereafter		862

Total minimum lease payments where we are the primary obligor	$	1,511

Composition of Rent Expense Associated with Operating Leases

The following table details the composition of rent expense associated with operating leases for the last three years:


*($ in millions)*	2010		2009		2008
Minimum rentals	$	252	$	262	$	283
Additional rentals		67		63		67

	$	319	$	325	$	350

Future Obligations Under Capital Leases

We have summarized our future obligations under capital leases at year-end 2010 in the following table:


*($ in millions)*	Minimum Lease Payments
Fiscal Year
2011	$	1
2012		1
2013		1
2014		1
2015		1
Thereafter		4

Total minimum lease payments		9
Less: amount representing interest		(3	)

Present value of net minimum lease payments	$	6

RELATED PARTY TRANSACTIONS (Tables)

12 Months Ended

Dec. 31, 2010

Financial Data Resulting from Transactions with Related Parties, Income Statement Data

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

Income Statement Data


*($ in millions)*	2010			2009			2008
Base management fees	$	35		$	44		$	49
Franchise fees		0			0			0
Incentive management fees		3			2			11
Cost reimbursements		270			260			340
Owned, leased, corporate housing, and other		4			0			0

Total revenue	$	312		$	306		$	400

General, administrative, and other	$	(1	)	$	(1	)	$	(1	)
Reimbursed costs		(270	)		(260	)		(340	)
Gains and other income		6			6			12
Interest expense-capitalized		5			4			4
Interest income		3			8			3
Equity in (losses) earnings		(29	)		(66	)		15
Timeshare strategy-impairment charges (non-operating)		0			(138	)		0
Provision for income taxes		0			0			1

Financial Data Resulting from Transactions with Related Parties, Balance Sheet Data

Balance Sheet Data


*($ in millions)*	At Year-End 2010			At Year-End 2009
Current assets-accounts and notes receivable	$	9		$	10
Deferred development		2			2
Contract acquisition costs		28			26
Equity and cost method investments		190			208
Notes receivable		2			10
Deferred taxes, net asset		22			25
Other		0			1
Current liabilities:
Other		(25	)		(31	)
Other long-term liabilities		(8	)		(13	)

Summarized Information for the Entities Equity Method Investments, Income Statement

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

Income Statement Data


*($ in millions)*	2010			2009			2008
Sales	$	914		$	850		$	1,342

Net (loss) income	$	(77	)	$	(241	)	$	122

Summarized Information for the Entities Equity Method Investments, Balance Sheet

Balance Sheet Summary


*($ in millions)*	At Year-End 2010		At Year-End 2009
Assets (primarily comprised of hotel real estate managed by us)	$	3,186	$	3,228

Liabilities	$	2,446	$	2,339

Summary of Significant Accounting Policies - Additional Information (Detail) (USD $)
In Millions, unless otherwise specified

12 Months Ended

Dec. 31, 2010

Contract

Jan. 01, 2010

Jan. 02, 2009

Number of securitized notes receivable pools consolidated upon initial adoption of new accounting principle

Consolidation of existing qualifying special purpose entities, one-time non-cash pre-tax reduction to shareholders' equity

$ (238)

Consolidation of existing qualifying special purpose entities, one-time non-cash after-tax reduction to shareholders' equity, decrease in deferred tax liabilities

Consolidation of existing qualifying special purpose entities, one-time non-cash after-tax reduction to shareholders' equity

(146)

Consolidation of existing qualifying special purpose entities, one-time non-cash after-tax reduction to shareholders' equity was greater than previously estimated

Compensation costs from profit sharing

111

Restricted cash, current

Restricted cash, noncurrent

Goodwill impairment charge

Available-for-sale securities

Reclassification of losses from accumulated other comprehensive income - sale of available-for-sale securities

(4)

Self insurance liability for assessments

313

304

296

Liability for guest loyalty program

1,799

1,647

Reduction in estimate of breakage

10.00%

Increase in liability for guest loyalty program, contingent upon reduction in the estimate of breakage

Assets held for sale

Gains (Losses) from foreign currency transactions

(6)

Gains and other income

^[1]

Foreign Currency Translation Adjustment Gain (Loss)

Gains and other income

Assets

Consolidation of existing qualifying special purpose entities, one-time non-cash after-tax reduction to shareholders' equity

970

Liabilities

Consolidation of existing qualifying special purpose entities, one-time non-cash after-tax reduction to shareholders' equity

1,116

Self Insurance Program

Self insurance liability for assessments

Discount rate

2.00%

Self-insurance reserves

Liability for self-insurance reserve assessments as of year-end 2010

Expected to be paid by the end of 2011

Selling and Marketing Expense | Other Current Assets

Deferred costs

Timeshare Segment

Deferred revenue

Loans to timeshare owners

Percent of change in the estimated default rate

0.50%

Increase in allowance for credit losses due to change in percent of the estimated default rate

Loans to timeshare owners | Nonsecuritized Notes Receivable

Estimated average remaining default rates for outstanding timeshare notes receivable

9.25%

Loans to timeshare owners | Securitized Notes Receivable

Estimated average remaining default rates for outstanding timeshare notes receivable

9.25%

Upper Limit

Gains (Losses) from foreign currency transactions

$ (1)

Equity Method Investment | Lower Limit

Ownership interest in equity method investments

10.00%

Equity Method Investment | Upper Limit

Ownership interest in equity method investments

49.00%

[1]	See Footnote No. 22, "Related Party Transactions," of the Notes to Consolidated Financial Statements for disclosure of related party amounts.

The (Provision for) Benefit from Income Taxes (Detail) (USD $)
In Millions, unless otherwise specified

12 Months Ended

Dec. 31, 2010

Jan. 01, 2010

Jan. 02, 2009

Schedule of Components of Income Before Income Tax Expense (Benefit) [Line Items]

Federal, Current

$ 117

$ (169)

$ (275)

State, Current

(7)

(12)

(40)

Non-U.S., Current

(51)

(61)

(85)

Current Income Tax Expense (Benefit)

(242)

(400)

Federal, Deferred

(150)

234

State, Deferred

(14)

Non-U.S., Deferred

Deferred Income Tax Expense (Benefit)

(152)

307

(Provision) benefit for income taxes

$ (93)

^[1]

$ 65

^[1]

$ (350)

^[1]

[1]	See Footnote No. 22, "Related Party Transactions," of the Notes to Consolidated Financial Statements for disclosure of related party amounts.

Income Taxes - Additional Information (Detail) (USD $) In Millions, except Per Share data, unless otherwise specified	12 Months Ended
	Dec. 31, 2010	Jan. 01, 2010	Jan. 02, 2009	Dec. 28, 2007
Income Taxes [Line Items]
Tax benefit (costs) from share-based compensation	$ 51	$ (8)	$ 21
Tax credits included in provision for income taxes	2	2	9
Expiration of tax holidays	2034
Aggregate amount of taxes not incurred due to tax holidays	7	4	11
Unrecognized tax benefits	39	249	141	132
Interest related to unrecognized tax benefits as a component of tax expense	2	2	42
Accrued interest related to unrecognized tax benefits	4	28	29
Tax credits, expiration	2030
Net operating losses, expiration	2030
Cash paid for income taxes, net of refunds	68	110	220
Decrease in unrecognized tax benefit attributable to settlement with IRS	47	10	86
Prior years tax adjustments			19
IRS settlement tax refund			26
Increase in unrecognized tax benefits attributable to tax positions taken during the current period	25	22	5
Tax positions that, if recognized, would impact the effective tax rate	26	136	87
Tax credits	235	223
Investment tax credits			6
Net operating loss benefits	21	33
Net operating losses	1,100
Lower Limit
Income Taxes [Line Items]
Tax holidays (in years)	5 years
Upper Limit
Income Taxes [Line Items]
Tax holidays (in years)	30 years
Settlement of 1995 leasing transaction
Income Taxes [Line Items]
Decrease in unrecognized tax benefits attributable to the settlement of leasing transaction			88
Non United States Subsidiaries
Income Taxes [Line Items]
Cumulative unremitted earnings of subsidiaries	861
Decrease in unrecognized tax benefit attributable to settlement with IRS	85
Increase in unrecognized tax benefits attributable to tax positions taken during the current period		108
Increase in unrecognized tax benefits attributable to the treatment of funds received			97
Non United States Subsidiaries \| Revisions to Estimates of Prior Years' Foreign Income Tax Expenses
Income Taxes [Line Items]
Income tax expense (benefit)	12
Earnings Per Share, Diluted
Income Taxes [Line Items]
Amount of taxes not incurred due to tax holidays, per share	$ 0.02	$ 0.01	$ 0.03
Accrual for ongoing tax issue related to the treatment of funds received from certain foreign subsidiaries
Income Taxes [Line Items]
Income tax expense (benefit)		52	24
Decision on Prior Period Tax Related Transaction by the U.S. Court of Federal Claims
Income Taxes [Line Items]
Income tax expense (benefit)			29
IRS Appeals, 2005-2008 tax years
Income Taxes [Line Items]
Decrease in unrecognized tax benefit attributable to settlement with IRS	210
Expiration Through 2030
Income Taxes [Line Items]
Tax credits	16
Net operating losses	573
Indefinite Life
Income Taxes [Line Items]
Tax credits	$ 219

Unrecognized Tax Benefit Reconciliation (Detail) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2010	Jan. 01, 2010	Jan. 02, 2009
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items]
Unrecognized tax benefit at beginning of year	$ 249	$ 141	$ 132
Change attributable to tax positions taken during a prior period	(187)
Change attributable to tax positions taken during a prior period		99	92
Change attributable to tax positions taken during the current period	25	22	5
Decrease attributable to settlements with taxing authorities	(47)	(10)	(86)
Decrease attributable to lapse of statute of limitations	(1)	(3)	(2)
Unrecognized tax benefit at end of year	$ 39	$ 249	$ 141

Total Deferred Tax Assets and Liabilities (Detail) (USD $) In Millions, unless otherwise specified	Dec. 31, 2010	Jan. 01, 2010
Schedule of Deferred Income Tax Assets and Liabilities [Line Items]
Deferred tax assets	$ 1,236	$ 1,307
Deferred tax liabilities	(100)	(70)
Net deferred taxes	$ 1,136	$ 1,237

Composition of Net Deferred Tax Balances (Detail) (USD $)
In Millions, unless otherwise specified

Dec. 31, 2010

Jan. 01, 2010

Schedule of Deferred Income Tax Assets and Liabilities [Line Items]

Current deferred taxes, net

$ 246

$ 255

Long-term deferred taxes, net

932

^[1]

1,020

^[1]

Current liabilities, other

(19)

(18)

Long-term liabilities, other

(23)

(20)

Net deferred taxes

$ 1,136

$ 1,237

[1]	See Footnote No. 22, "Related Party Transactions," of the Notes to Consolidated Financial Statements for disclosure of related party amounts.

The current portion of the aggregate tax effects as of the balance sheet date of all future tax deductions arising from temporary differences between tax basis and generally accepted accounting principles basis recognition of assets, liabilities, revenues and expenses, which can only be deducted for tax purposes when permitted under enacted tax laws; after deducting the allocated valuation allowance, if any, to reduce such amount to net realizable value. Deferred tax liabilities and assets shall be classified as current or noncurrent based on the classification of the related asset or liability for financial reporting. A deferred tax liability or asset that is not related to an asset or liability for financial reporting, including deferred tax assets related to carryforwards, shall be classified according to the expected reversal date of the temporary difference. An unrecognized tax benefit that is directly related to a position taken in a tax year that results in a net operating loss carryforward should be presented as a reduction of the related deferred tax asset.

+ References+ Details

Schedule of Deferred Income Tax Assets and Liabilities [Line Items]

Represents the noncurrent portion of deferred tax liabilities, which result from applying the applicable tax rate to net taxable temporary differences pertaining to each jurisdiction to which the entity is obligated to pay income tax. A noncurrent taxable temporary difference is a difference between the tax basis and the carrying amount of a noncurrent asset or liability in the financial statements prepared in accordance with generally accepted accounting principles. In a classified statement of financial position, an enterprise shall separate deferred tax liabilities and assets into a current amount and a noncurrent amount. Deferred tax liabilities and assets shall be classified as current or noncurrent based on the classification of the related asset or liability for financial reporting. A deferred tax liability or asset that is not related to an asset or liability for financial reporting, including deferred tax assets related to carryforwards, shall be classified according to the expected reversal date of the temporary difference.

+ References+ Details

Types of Temporary Differences and Carry-Forwards that Significantly Effect Deferred Tax Assets and Liabilities (Detail) (USD $)
In Millions, unless otherwise specified

Dec. 31, 2010

Jan. 01, 2010

Self-insurance

$ 22

$ 15

Employee benefits

296

278

Deferred income

Reserves

213

185

Frequent guest program

104

115

Joint venture interests

148

ASC 740 deferred taxes

^[1]

Tax credits

235

223

Net operating loss carry-forwards

204

194

Timeshare financing

(23)

Property, equipment, and intangible assets

(17)

Other, net

(16)

Deferred taxes

1,198

1,294

Less: valuation allowance

(62)

(57)

Net deferred taxes

$ 1,136

$ 1,237

[1]	Primarily related to the treatment of funds received from certain non-U.S. subsidiaries, as discussed earlier in this footnote.

Reconciliation of the U.S. Statutory Tax Rate to Our Effective Income Tax Rate for Continuing Operations (Detail)

12 Months Ended

Dec. 31, 2010

Jan. 01, 2010

Jan. 02, 2009

Reconciliation of Statutory Federal Tax Rate [Line Items]

U.S. statutory tax rate

35.00%

(35.00%)

35.00%

U.S. State income taxes, net of U.S. federal tax benefit

2.40%

(2.10%)

2.60%

Nondeductible expenses

0.50%

0.60%

Non-U.S. income

(3.70%)

5.20%

(1.60%)

Audit activity

(15.60%)

^[1]

13.70%

^[1]

11.20%

^[1]

Company owned life insurance

0.00%

(2.00%)

2.70%

Change in valuation allowance

0.90%

2.20%

0.00%

Tax credits

(0.40%)

(1.20%)

Other, net

(2.30%)

2.30%

1.10%

Effective rate

16.80%

(15.60%)

50.40%

[1]	Primarily related to the treatment of funds received from certain non-U.S. subsidiaries, as discussed earlier in this footnote.

Income Statement Information Relating to Our Discontinued Operations - Synthetic Fuel (Detail) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2010	Jan. 01, 2010	Jan. 02, 2009
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Revenue	$ 0	$ 0	$ 1
Operating loss	0	0	(4)
Loss from discontinued operations before income taxes	0	0	(4)
Tax (provision) benefit	0	0	(3)
Tax credits	0	0	10
Total tax benefit	0	0	7
Income (loss) from discontinued operations, net of tax	$ 0	$ 0	$ 3

Computation of Basic Earnings Per Share Attributable to Marriott Shareholders

This element represents the overall income (loss) from a disposal group that is classified as a component of the entity, net of income tax, reported as a separate component of income before extraordinary items and the cumulative effect of accounting changes before deduction or consideration of the amount which may be allocable to noncontrolling interests, if any. Includes the following (net of tax): income (loss) from operations during the phase-out period, gain (loss) on disposal, provision (or any reversals of earlier provisions) for loss on disposal, and adjustments of a prior period gain (loss) on disposal.

+ References+ Details

Share-Based Compensation - Additional Information (Detail) (USD $)	12 Months Ended
	Dec. 31, 2010 Year	Jan. 01, 2010	Jan. 02, 2009
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Deferred compensation costs related to unvested awards	$ 113,000,000	$ 122,000,000
Share-based compensation expense related to award grants	91,000,000	85,000,000	112,000,000
Deferred compensation costs related to unvested awards, weighted average period (in years)	2
Tax benefit (costs) from share-based compensation in financing activities	51,000,000	(8,000,000)	21,000,000
Proceeds from exercise of stock options granted under share-based payment arrangements	147,000,000	35,000,000	30,000,000
Total intrinsic value of stock options exercised	149,000,000	30,000,000	42,000,000
Shares reserved under the Comprehensive Plan	58,000,000
Suspended Award Programs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Deferred compensation costs related to unvested awards		1,000,000
Weighted average remaining term for grants outstanding (in years)	1
Share-based compensation expense related to award grants	1,000,000	1,000,000	2,000,000
Suspended Award Programs \| Upper Limit
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Deferred compensation costs related to unvested awards	1,000,000
Stock Option Program and Stock Appreciation Right Program
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected term	7.0	7.0	6.9
Shares reserved under the Comprehensive Plan	29,000,000
Restricted Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted	3,800,000
Deferred compensation costs related to unvested awards	103,000,000	109,000,000
Weighted average remaining term for grants outstanding (in years)	2
Share-based compensation expense related to award grants	76,000,000	71,000,000	85,000,000
Vesting Period	4 years
Forfeited in period	400,000
Stock Appreciation Rights
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted	1,100,000
Deferred compensation costs related to unvested awards	9,000,000	11,000,000
Share-based compensation expense related to award grants	12,000,000	11,000,000	18,000,000
Forfeited in period	79,000	22,000
Intrinsic value of stock appreciation rights outstanding	54,000,000	0
Intrinsic value of stock appreciation rights exercisable	13,000,000	0
Intrinsic value of stock appreciation rights exercised	402,000	0	0
Stock Appreciation Rights \| Employee
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted	1,100,000	500,000	2,700,000
Expiration Period	10 years
Vesting Rights	exercisable in cumulative installments of one quarter at the end of each of the first four years following the date of grant
Stock Appreciation Rights \| Non Employee
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted	0	5,600	4,000
Expiration Period	10 years
Vesting Rights	vest upon grant; however, they are generally not exercisable until one year after grant
Risk-free rate		3.20%	3.90%
Expected term		10	10
Deferred Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted	34,000
Deferred Stock Units \| Non Employee
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted	34,000	39,000	25,000
Vesting Rights	distributed upon election
Deferred compensation costs related to unvested awards	313,000	228,000
Share-based compensation expense related to award grants	932,000	715,000	684,000
Outstanding units at year-end	252,000	249,000
Weighted average grant-date fair value per share of deferred stock units outstanding as of year end	$ 26	$ 24
Deferred Stock Units \| Non Employee \| Upper Limit
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Director deferred stock units, vesting period	1 year
Nonqualified Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expiration Period	10 years
Nonqualified Stock Options \| Stock Options Issued from 1990 through 2000
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expiration Period	15 years
Employee Stock Option
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting Rights	exercisable in cumulative installments of one quarter at the end of each of the first four years following the date of grant
Deferred compensation costs related to unvested awards	1,000,000	1,000,000
Share-based compensation expense related to award grants		1,000,000	6,000,000
Employee Stock Option \| Upper Limit
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense related to award grants	$ 1,000,000

Additional Information on RSUs (Detail) (USD $)	12 Months Ended
Additional Information on RSUs (Detail) (USD $)	Dec. 31, 2010	Jan. 01, 2010	Jan. 02, 2009
Reconciliation of Restricted Stock Activity [Line Items]
Share-based compensation expense	$ 91,000,000	$ 85,000,000	$ 112,000,000
Restricted Stock Units
Reconciliation of Restricted Stock Activity [Line Items]
Share-based compensation expense	76,000,000	71,000,000	85,000,000
Weighted average grant-date fair value (per share)	$ 27	$ 19	$ 30
Aggregate intrinsic value of converted and distributed	$ 95,000,000	$ 39,000,000	$ 90,000,000

Changes in Outstanding Restricted Stock Unit Grants (Detail) (Restricted Stock Units, USD $)	12 Months Ended
	Dec. 31, 2010	Jan. 01, 2010	Jan. 02, 2009
Restricted Stock Units
Number of RSUs
Outstanding beginning balance	7,100,000
Granted	3,800,000
Distributed	(2,800,000)
Forfeited	(400,000)
Outstanding ending balance	7,700,000	7,100,000
Weighted Average Grant-Date Fair Value
Outstanding beginning balance	$ 30
Granted	$ 27	$ 19	$ 30
Distributed	$ 33
Forfeited	$ 30
Outstanding ending balance	$ 30	$ 30

Changes in Outstanding Stock Option Program Awards (Detail) (USD $)	12 Months Ended
	Dec. 31, 2010	Jan. 01, 2010	Jan. 02, 2009
Number of Options
Granted	53,304	0	218,000
Outstanding ending balance	24,100,000
Weighed Average Exercise Price
Outstanding ending balance	$ 18
Employee Stock Option
Number of Options
Outstanding beginning balance	32,200,000
Granted	100,000
Exercised	(8,200,000)
Forfeited	0
Outstanding ending balance	24,100,000
Weighed Average Exercise Price
Outstanding beginning balance	$ 18
Granted	$ 27
Exercised	$ 18
Forfeited	$ 20
Outstanding ending balance	$ 18

Stock Options Issued under Stock Option Program Awards (Detail) (USD $) In Millions, except Per Share data, unless otherwise specified	Dec. 31, 2010 Year
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Range of Exercise Prices, Lower Limit	$ 8
Range of Exercise Prices, Upper Limit	$ 49
Outstanding - Number of Stock Options (in millions)	24.1
Outstanding - Weighted Average Exercise Price	$ 18
Outstanding - Weighted Average Remaining Life (in years)	3
Exercisable - Number of Stock Options	23.9
Exercisable - Weighted Average Exercise Price	$ 18
Exercisable - Weighted Average Remaining Life (in years)	3
Range 1
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Range of Exercise Prices, Lower Limit	$ 8
Range of Exercise Prices, Upper Limit	$ 12
Outstanding - Number of Stock Options (in millions)	0.5
Outstanding - Weighted Average Exercise Price	$ 12
Outstanding - Weighted Average Remaining Life (in years)	1
Exercisable - Number of Stock Options	0.5
Exercisable - Weighted Average Exercise Price	$ 12
Exercisable - Weighted Average Remaining Life (in years)	1
Range 2
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Range of Exercise Prices, Lower Limit	$ 13
Range of Exercise Prices, Upper Limit	$ 17
Outstanding - Number of Stock Options (in millions)	16.3
Outstanding - Weighted Average Exercise Price	$ 15
Outstanding - Weighted Average Remaining Life (in years)	3
Exercisable - Number of Stock Options	16.3
Exercisable - Weighted Average Exercise Price	$ 15
Exercisable - Weighted Average Remaining Life (in years)	3
Range 3
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Range of Exercise Prices, Lower Limit	$ 18
Range of Exercise Prices, Upper Limit	$ 22
Outstanding - Number of Stock Options (in millions)	1.9
Outstanding - Weighted Average Exercise Price	$ 19
Outstanding - Weighted Average Remaining Life (in years)	2
Exercisable - Number of Stock Options	1.9
Exercisable - Weighted Average Exercise Price	$ 19
Exercisable - Weighted Average Remaining Life (in years)	2
Range 4
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Range of Exercise Prices, Lower Limit	$ 23
Range of Exercise Prices, Upper Limit	$ 49
Outstanding - Number of Stock Options (in millions)	5.4
Outstanding - Weighted Average Exercise Price	$ 26
Outstanding - Weighted Average Remaining Life (in years)	4
Exercisable - Number of Stock Options	5.2
Exercisable - Weighted Average Exercise Price	$ 25
Exercisable - Weighted Average Remaining Life (in years)	4

Number of Options Granted and Associated Weighted Average Grant-Date Fair Values and Weighted Average Exercise Prices (Detail) (USD $)	12 Months Ended
	Dec. 31, 2010	Jan. 01, 2010	Jan. 02, 2009
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options granted	53,304	0	218,000
Weighted average grant-date fair value	$ 10	$ 0	$ 12
Weighted average exercise price	$ 18	$ 0	$ 31

Changes in Outstanding SARs (Detail) (Stock Appreciation Rights, USD $)	12 Months Ended
	Dec. 31, 2010	Jan. 01, 2010
Stock Appreciation Rights
Number of Options
Outstanding beginning balance	3,900,000
Granted	1,100,000
Exercised	(100,000)
Forfeited	(79,000)	(22,000)
Outstanding ending balance	4,800,000	3,900,000
Weighted Average Exercise Price
Outstanding beginning balance	$ 32
Granted	$ 27
Exercised	$ 33
Forfeited	$ 31
Outstanding ending balance	$ 31	$ 32

Number of Employee SARs and Non-Employee SARs Granted, Associated Weighted Average Base Values, And Weighted Average Grant-Date Fair Values (Detail) (Stock Appreciation Rights, USD $)	12 Months Ended
	Dec. 31, 2010	Jan. 01, 2010	Jan. 02, 2009
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted	1,100,000
Employee
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted	1,100,000	500,000	2,700,000
Weighted average base value	$ 27	$ 15	$ 33
Weighted average grant-date fair value (per share)	$ 10	$ 5	$ 12
Non Employee
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted	0	5,600	4,000
Weighted average base value	$ 0	$ 23	$ 36
Weighted average grant-date fair value (per share)	$ 0	$ 10	$ 15

Assumptions for Stock Options and Employee SARs (Detail) (Stock Option Program and Stock Appreciation Right Program)	12 Months Ended
	Dec. 31, 2010 Year	Jan. 01, 2010 Year	Jan. 02, 2009 Year
Share based Compensation Arrangement by Share based Payment Award, Fair Value Assumptions, Method Used [Line Items]
Expected volatility	32.00%	32.00%	29.00%
Expected term (in years)	7.0	7.0	6.9
Lower Limit
Share based Compensation Arrangement by Share based Payment Award, Fair Value Assumptions, Method Used [Line Items]
Dividend yield	0.71%	0.95%	0.80%
Risk-free rate	3.30%	2.20%	3.40%
Upper Limit
Share based Compensation Arrangement by Share based Payment Award, Fair Value Assumptions, Method Used [Line Items]
Dividend yield	0.71%	0.95%	0.95%
Risk-free rate	3.30%	2.20%	3.90%

Share-Based Compensation Expense, Number of Deferred Stock Units Granted, Weighted Average Grant-Date Fair Value, and Aggregate Intrinsic Value of Non-Employee Director Deferred Stock Units (Detail) (USD $)	12 Months Ended
	Dec. 31, 2010	Jan. 01, 2010	Jan. 02, 2009
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items]
Share-based compensation expense	$ 91,000,000	$ 85,000,000	$ 112,000,000
Deferred Stock Units
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items]
Non-employee director deferred stock units granted	34,000
Deferred Stock Units \| Non Employee
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items]
Share-based compensation expense	932,000	715,000	684,000
Non-employee director deferred stock units granted	34,000	39,000	25,000
Weighted average grant-date fair value (per share)	$ 35	$ 23	$ 33
Aggregate intrinsic value	$ 1,200,000	$ 500,000	$ 400,000

Carrying Values and Fair Values of Non-Current Financial Assets and Liabilities (Detail) (USD $) In Millions, unless otherwise specified	Dec. 31, 2010	Jan. 01, 2010
Fair Value, Assets and Liabilities [Line Items]
Non-recourse debt associated with securitized notes receivable	$ (1,016)	$ 0
$2,404 Effective Credit Facility	0	(425)
Other long-term debt	(182)	(246)
Carrying Amount \| Noncurrent Assets
Fair Value, Assets and Liabilities [Line Items]
Cost method investments	60	41
Loans to timeshare owners-securitized	910	0
Loans to timeshare owners-non-securitized	169	352
Senior, mezzanine, and other loans-non-securitized	184	100
Residual interests and effectively owned notes	0	197
Restricted cash	30	22
Marketable securities	18	18
Total long-term financial assets	1,371	730
Carrying Amount \| Noncurrent Liabilities
Fair Value, Assets and Liabilities [Line Items]
Non-recourse debt associated with securitized notes receivable	(891)	0
Senior Notes	(1,631)	(1,627)
$2,404 Effective Credit Facility	0	(425)
Other long-term debt	(142)	(154)
Other long-term liabilities	(71)	(86)
Long-term derivative liabilities	(1)	(1)
Total long-term financial liabilities	(2,736)	(2,293)
Fair Value \| Noncurrent Assets
Fair Value, Assets and Liabilities [Line Items]
Cost method investments	63	43
Loans to timeshare owners-securitized	1,097	0
Loans to timeshare owners-non-securitized	176	368
Senior, mezzanine, and other loans-non-securitized	130	77
Residual interests and effectively owned notes	0	197
Restricted cash	30	22
Marketable securities	18	18
Total long-term financial assets	1,514	725
Fair Value \| Noncurrent Liabilities
Fair Value, Assets and Liabilities [Line Items]
Non-recourse debt associated with securitized notes receivable	(745)	0
Senior Notes	(1,771)	(1,707)
$2,404 Effective Credit Facility	0	(425)
Other long-term debt	(138)	(154)
Other long-term liabilities	(67)	(75)
Long-term derivative liabilities	(1)	(1)
Total long-term financial liabilities	$ (2,722)	$ (2,362)

Fair Value of Financial Instruments - Additional Information (Detail) (USD $) In Millions, unless otherwise specified	Dec. 31, 2010
Fair Value, Inputs, Level 1
Fair Value, Assets and Liabilities [Line Items]
Carrying value of our marketable securities	$ 18
Derivative instruments, current liability position	1
Fair Value, Inputs, Level 3
Fair Value, Assets and Liabilities [Line Items]
Derivative instruments, long-term liability position	$ 1

Reconciliation of the Earnings (Losses) and Number of Shares Used in Calculations of Basic and Diluted Earnings Per Share Attributable to Marriott Shareholders (Detail) (USD $)
In Millions, except Per Share data, unless otherwise specified

12 Months Ended

Dec. 31, 2010

Jan. 01, 2010

Jan. 02, 2009

Income (loss) from continuing operations

$ 458

$ (353)

$ 344

Add: Net losses attributable to noncontrolling interests, net of tax

Income (loss) from continuing operations attributable to Marriott shareholders

458

(346)

359

Weighted average shares outstanding

362.8

356.4

355.6

Basic earnings (losses) per share from continuing operations attributable to Marriott shareholders

$ 1.26

^[1]

$ (0.97)

^[1]

$ 1.01

^[1]

Computation of Diluted Earnings Per Share Attributable to Marriott Shareholders

Income (loss) from continuing operations attributable to Marriott shareholders

$ 458

$ (346)

$ 359

Weighted average shares outstanding

362.8

356.4

355.6

Effect of dilutive securities

Employee stock option and SARs plan

11.0

11.7

Deferred stock incentive plan

1.1

1.6

Restricted stock units

3.4

1.8

Shares for diluted earnings per share

378.3

356.4

370.7

Diluted earnings (losses) per share from continuing operations attributable to Marriott shareholders

$ 1.21

^[1]

$ (0.97)

^[1]

$ 0.97

^[1]

[1]	See Footnote No. 6, "Earnings Per Share," of the Notes to Consolidated Financial Statements for income from continuing operations attributable to Marriott used to calculate earnings from continuing operations per share attributable to Marriott shareholders.

Earnings Per Share - Additional Information (Detail) (USD $) In Millions, except Per Share data, unless otherwise specified	12 Months Ended
	Dec. 31, 2010	Jan. 01, 2010	Jan. 02, 2009
Earnings Per Share Disclosure [Line Items]
Stock options and SARs not included in the calculation of diluted earnings per share because exercise prices exceeded market prices	2.4	12.3	3.9
Lower Limit
Earnings Per Share Disclosure [Line Items]
Stock options and SARs not included in the calculation of diluted earning per share because exercise prices exceeded market prices, exercise prices range	$ 34.11	$ 22.30	$ 31.05
Upper Limit
Earnings Per Share Disclosure [Line Items]
Stock options and SARs not included in the calculation of diluted earning per share because exercise prices exceeded market prices, exercise prices range	$ 49.03	$ 49.03	$ 49.03
Employee Stock Option and Stock Appreciation Rights
Earnings Per Share Disclosure [Line Items]
Shares excluded from the calculation of diluted earnings per share attributable to Marriott shareholders		7.5
Deferred Stock Incentive Plans
Earnings Per Share Disclosure [Line Items]
Shares excluded from the calculation of diluted earnings per share attributable to Marriott shareholders		1.4
Restricted Stock Units
Earnings Per Share Disclosure [Line Items]
Shares excluded from the calculation of diluted earnings per share attributable to Marriott shareholders		2.1

Inventory - Additional Information (Detail) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2010	Jan. 01, 2010	Jan. 02, 2009
Inventory Disclosure [Line Items]
Inventory (including from VIEs of $0 and $96, respectively)	$ 1,489	$ 1,444
Inventory, hotel operating supplies for owned or leased properties	17	18
Timeshare strategy-impairment charges, operating	0	614	0
Inventories
Inventory Disclosure [Line Items]
Timeshare strategy-impairment charges, operating		529
Timeshare Segment
Inventory Disclosure [Line Items]
Inventory (including from VIEs of $0 and $96, respectively)	$ 1,472	$ 1,426

Composition of our Timeshare Segment Inventory Balances (Detail) (USD $) In Millions, unless otherwise specified	Dec. 31, 2010	Jan. 01, 2010
Schedule of Inventory [Line Items]
Inventory (including from VIEs of $0 and $96, respectively)	$ 1,489	$ 1,444
Timeshare Segment
Schedule of Inventory [Line Items]
Finished goods	732	721
Work-in-process	101	198
Land and infrastructure	639	507
Inventory (including from VIEs of $0 and $96, respectively)	$ 1,472	$ 1,426

Composition of our Property and Equipment Balances (Detail) (USD $) In Millions, unless otherwise specified	Dec. 31, 2010	Jan. 01, 2010
Property, Plant and Equipment [Line Items]
Land	$ 514	$ 454
Buildings and leasehold improvements	854	935
Furniture and equipment	984	996
Construction in progress	204	163
Property, Plant and Equipment, Gross, Total	2,556	2,548
Accumulated depreciation	(1,249)	(1,186)
Property, Plant and Equipment, Net, Total	$ 1,307	$ 1,362

Property and Equipment - Additional Information (Detail) (USD $) In Millions, unless otherwise specified	4 Months Ended	12 Months Ended
	Dec. 31, 2010	Dec. 31, 2010 Year	Jan. 01, 2010	Jan. 02, 2009
Property, Plant, and Equipment Disclosure [Line Items]
Estimated useful lives, minimum (in years)		3
Estimated useful lives, maximum (in years)		40
Depreciation expense		$ 138	$ 151	$ 155
Recorded impairment charges	84
Timeshare Segment
Property, Plant, and Equipment Disclosure [Line Items]
Recorded impairment charges	13
North American Limited Service Segment
Property, Plant, and Equipment Disclosure [Line Items]
Recorded impairment charges	14
Property Plant and Equipment
Property, Plant, and Equipment Disclosure [Line Items]
Interest capitalized		$ 10	$ 8	$ 26

Acquisitions and Dispositions - Additional Information (Detail) (USD $) In Millions, unless otherwise specified	12 Months Ended			12 Months Ended								12 Months Ended
	Dec. 31, 2010 Group 8 Location	Dec. 31, 2010 Group 9	Jan. 01, 2010 Group 9	Dec. 31, 2010 Group 10 Location	Dec. 31, 2010 Group 10 Limited Service Location	Dec. 31, 2010 Group 10 Full Service Location	Jan. 02, 2009 Group 1	Jan. 02, 2009 Group 2	Jan. 02, 2009 Group 3	Jan. 02, 2009 Group 4	Jan. 02, 2009 Group 5	Jan. 02, 2009 Group 6 Location	Jan. 02, 2009 Group 6 Limited Service Location	Jan. 02, 2009 Group 7
Significant Acquisitions and Disposals [Line Items]
Acquired assets								$ 63			$ 28
Number of land parcels acquired for hotel development	1
Number of hotels acquired	1
Cash consideration paid	175	112					42	39	47	14	27
Acquired assets							80				28
Deposits in conjunction with commitments to purchase timeshare and fractional units			11
Non-current liabilities assumed								24
Acquired liabilities							38				1
Number of properties sold					2	1							2
Number of land parcels sold				1								2
Interest in entity sold														we sold our interest in an entity that leases four hotels
Cash proceeds received				114								33		5
Received equity interest												22
Recorded net gain				$ 27
Properties continued to operate under management agreement					1	1
Properties that left system					1

Composition of Other Intangible Assets (Detail) (USD $)
In Millions, unless otherwise specified

Dec. 31, 2010

Jan. 01, 2010

Finite-Lived Intangible Assets [Line Items]

Contract acquisition costs and other

$ 1,145

$ 1,073

Accumulated amortization

(377)

(342)

Finite-Lived Intangible Assets, Net, Total

$ 768

^[1]

$ 731

^[1]

[1]	See Footnote No. 22, "Related Party Transactions," of the Notes to Consolidated Financial Statements for disclosure of related party amounts.

Goodwill and Intangible Assets - Additional Information (Detail) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2010 Year	Jan. 01, 2010	Jan. 02, 2009
Goodwill and Intangible Assets Disclosure [Line Items]
Range of amortization life of intangible assets - minimum (in years)	15
Range of amortization life of intangible assets - maximum (in years)	30
Aggregate amortization expense of intangible assets	$ 40	$ 34	$ 35
Estimated aggregate future amortization expense of intangible assets for 2011	33
Estimated aggregate future amortization expense of intangible assets for 2012	33
Estimated aggregate future amortization expense of intangible assets for 2013	33
Estimated aggregate future amortization expense of intangible assets for 2014	33
Estimated aggregate future amortization expense of intangible assets for 2015	$ 33

Carrying Amount of Goodwill (Detail) (USD $) In Millions, unless otherwise specified	Dec. 31, 2010	Jan. 01, 2010	Jan. 02, 2009
Goodwill [Line Items]
Goodwill	$ 1,003	$ 1,003	$ 1,003
Accumulated amortization	(128)	(128)	(128)
Goodwill	$ 875	$ 875	$ 875

Composition of our Notes Receivable Balances (Net of Reserves) (Detail) (USD $)
In Millions, unless otherwise specified

Dec. 31, 2010

Jan. 01, 2010

Accounts, Notes, Loans and Financing Receivable [Line Items]

$ 1,444

$ 620

Accounts, Notes, Loans and Financing Receivable [Line Items]

1,264

^[1]

452

^[1]

Securitized Notes Receivable

Accounts, Notes, Loans and Financing Receivable [Line Items]

1,028

Nonsecuritized Notes Receivable

Accounts, Notes, Loans and Financing Receivable [Line Items]

416

Loans to timeshare owners

Accounts, Notes, Loans and Financing Receivable [Line Items]

1,080

352

Loans to timeshare owners | Securitized Notes Receivable

Accounts, Notes, Loans and Financing Receivable [Line Items]

1,028

Current notes receivable

(118)

Loans to timeshare owners | Nonsecuritized Notes Receivable

Accounts, Notes, Loans and Financing Receivable [Line Items]

225

424

Current notes receivable

(55)

(72)

Senior, Mezzanine and Other Loans | Nonsecuritized Notes Receivable

Accounts, Notes, Loans and Financing Receivable [Line Items]

191

196

Current notes receivable

$ (7)

$ (96)

[1]	See Footnote No. 22, "Related Party Transactions," of the Notes to Consolidated Financial Statements for disclosure of related party amounts.

Composition of Long Term Notes Receivable Balances (Net of Reserves and Unamortized Discounts) (Detail) (USD $)
In Millions, unless otherwise specified

Dec. 31, 2010

Jan. 01, 2010

Accounts, Notes, Loans and Financing Receivable [Line Items]

$ 1,264

^[1]

$ 452

^[1]

Loans to timeshare owners

Accounts, Notes, Loans and Financing Receivable [Line Items]

1,080

352

Loans to equity method investees

Accounts, Notes, Loans and Financing Receivable [Line Items]

Other notes receivable

Financing Receivable, Allowance for Credit Losses [Line Items]

$ 182

$ 90

[1]	See Footnote No. 22, "Related Party Transactions," of the Notes to Consolidated Financial Statements for disclosure of related party amounts.

Notes Receivable Principal Payments (Net of Reserves and Unamortized Discounts) and Interest Rates (Detail) (USD $) In Millions, unless otherwise specified	Dec. 31, 2010	Jan. 01, 2010
Accounts, Notes, Loans and Financing Receivable [Line Items]
2011	$ 180
2012	172
2013	164
2014	156
2015	220
Thereafter	552
Total notes receivable	1,444	620
Weighted average interest rate	11.90%
Range of stated interest rates, minimum	0.00%
Range of stated interest rates, maximum	19.50%
Nonsecuritized Notes Receivable
Accounts, Notes, Loans and Financing Receivable [Line Items]
2011	62
2012	49
2013	34
2014	25
2015	94
Thereafter	152
Total notes receivable	416
Weighted average interest rate	8.90%
Range of stated interest rates, minimum	0.00%
Range of stated interest rates, maximum	19.50%
Securitized Notes Receivable
Accounts, Notes, Loans and Financing Receivable [Line Items]
2011	118
2012	123
2013	130
2014	131
2015	126
Thereafter	400
Total notes receivable	$ 1,028
Weighted average interest rate	13.10%
Range of stated interest rates, minimum	5.20%
Range of stated interest rates, maximum	19.50%

Notes Receivable - Additional Information (Detail) (USD $) In Millions, unless otherwise specified	12 Months Ended							12 Months Ended
	Dec. 31, 2010	Jan. 01, 2010	Jan. 02, 2009	Dec. 31, 2010 Securitized Notes Receivable	Jan. 01, 2010 Securitized Notes Receivable	Dec. 31, 2010 Nonsecuritized Notes Receivable	Jan. 01, 2010 Nonsecuritized Notes Receivable	Dec. 31, 2010 Interest Income	Jan. 01, 2010 Interest Income	Jan. 02, 2009 Interest Income	Dec. 31, 2010 Interest Income Securitized Notes Receivable	Dec. 31, 2010 Interest Income Nonsecuritized Notes Receivable	Jan. 01, 2010 Interest Income Nonsecuritized Notes Receivable	Jan. 02, 2009 Interest Income Nonsecuritized Notes Receivable	Dec. 31, 2010 Senior, Mezzanine and Other Loans	Jan. 01, 2010 Senior, Mezzanine and Other Loans	Jan. 02, 2009 Senior, Mezzanine and Other Loans	Dec. 28, 2007 Senior, Mezzanine and Other Loans	Dec. 31, 2010 Senior, Mezzanine and Other Loans Impaired Financing Receivable with No Related Allowance	Jan. 01, 2010 Senior, Mezzanine and Other Loans Impaired Financing Receivable with No Related Allowance
Accounts, Notes, Loans and Financing Receivable [Line Items]
Recorded investment in impaired Senior, mezzanine, and other loans															$ 83	$ 191
Notes receivable reserve representing an allowance for credit losses	292	210		89	0	203	210								74	183	113	92
Average investment in impaired loans															137	174
Investment in impaired loans with no related allowance for credit losses																			9	8
Notes receivable, past due															3
Timeshare sales and services	$ 1,221	$ 1,123	$ 1,423					$ 187	$ 46	$ 68	$ 147	$ 40	$ 46	$ 68

Activity Related to "Senior, mezzanine, and other loans" Notes Receivable Reserve (Detail) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2010	Jan. 01, 2010	Jan. 02, 2009
Financing Receivable, Allowance for Credit Losses [Line Items]
Ending Balance	$ 292	$ 210
Senior, Mezzanine and Other Loans
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning Balance	183	113	92
Additions	4	84	22
Reversals			(5)
Write-offs	(120)	(28)	(3)
Transfers and other	7	14	7
Ending Balance	$ 74	$ 183	$ 113

Activity Related to "Loans to timeshare owners" Notes Receivable Reserve (Detail) (USD $)
In Millions, unless otherwise specified

12 Months Ended

Dec. 31, 2010

Jan. 01, 2010

Jan. 02, 2009

Financing Receivable, Allowance for Credit Losses [Line Items]

$ 292

$ 210

Loans to timeshare owners

Beginning Balance

Additions for current year securitizations

Additions for new securitizations, net of clean-up call

Write-offs

(79)

(13)

(20)

One-time impact of the new Transfers of Financial Assets and Consolidation standards

219

^[1]

Defaulted note repurchase activity

^[2]

^[3]

Financing Receivable, Allowance for Credit Losses [Line Items]

218

Nonsecuritized Notes Receivable

Financing Receivable, Allowance for Credit Losses [Line Items]

203

210

Nonsecuritized Notes Receivable | Loans to timeshare owners

Beginning Balance

Additions for current year securitizations

Additions for new securitizations, net of clean-up call

(18)

Write-offs

(79)

(13)

(20)

One-time impact of the new Transfers of Financial Assets and Consolidation standards

^[1]

Defaulted note repurchase activity

^[2]

^[3]

Financing Receivable, Allowance for Credit Losses [Line Items]

129

Securitized Notes Receivable

Financing Receivable, Allowance for Credit Losses [Line Items]

Securitized Notes Receivable | Loans to timeshare owners

Beginning Balance

Additions for current year securitizations

Additions for new securitizations, net of clean-up call

Write-offs

One-time impact of the new Transfers of Financial Assets and Consolidation standards

135

^[1]

Defaulted note repurchase activity

(68)

^[2]

^[3]

$ 89

$ 0

[1]	The non-securitized notes receivable reserve relates to the implementation of the new Transfers of Financial Assets and Consolidation standards, which required us to establish reserves for certain previously securitized and subsequently repurchased notes held at January 2, 2010.
[2]	Decrease in securitized reserve and increase in non-securitized reserve was attributable to the transfer of the reserve when we repurchased the notes.
[3]	Consists of static pool and default rate assumption changes.

The Aging of the Recorded Investment in Loans to Timeshare Owners (Detail) (Loans to timeshare owners, USD $) In Millions, unless otherwise specified	Dec. 31, 2010
Loans to timeshare owners
Financing Receivable, Recorded Investment, Past Due [Line Items]
31 - 90 days past due	$ 38
91 - 150 days past due	24
Greater than 150 days past due	104
Total past due	166
Current	1,305
Total loans to timeshare owners	$ 1,471

Cash Flows Between the Company and Investors (Detail) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2010	Jan. 01, 2010	Jan. 02, 2009
Securitization or Asset-backed Financing Arrangement, Financial Asset for which Transfer is Accounted as Sale [Line Items]
Net proceeds to us from timeshare note securitizations	$ 215
Voluntary repurchases by us of defaulted notes (over 150 days overdue)	93
Timeshare Segment
Securitization or Asset-backed Financing Arrangement, Financial Asset for which Transfer is Accounted as Sale [Line Items]
Net proceeds to us from timeshare note securitizations	215	349	237
Voluntary repurchases by us of defaulted notes (over 150 days overdue)		81	56
Servicing fees received by us		6	6
Cash flows received from our retained interests		$ 75	$ 96

Asset Securitizations - Additional Information (Detail) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2010 Contract	Jan. 01, 2010 Contract	Jan. 02, 2009
Securitization or Asset-backed Financing Arrangement, Financial Asset for which Transfer is Accounted as Sale [Line Items]
Net proceeds from new timeshare note sales	$ 215
Timeshare Segment
Securitization or Asset-backed Financing Arrangement, Financial Asset for which Transfer is Accounted as Sale [Line Items]
Securitized notes receivable	229	446	300
New note securitization transactions	1	2
Trust notes issued by transaction-specific trust simultaneous with purchase of notes receivable	218
Net gains from the sales of timeshare notes receivable		37	16
Net proceeds from new timeshare note sales	215	349	237
Timeshare Segment \| Group 1
Securitization or Asset-backed Financing Arrangement, Financial Asset for which Transfer is Accounted as Sale [Line Items]
Securitized notes receivable		284
Timeshare Segment \| Group 2
Securitization or Asset-backed Financing Arrangement, Financial Asset for which Transfer is Accounted as Sale [Line Items]
Securitized notes receivable		380
Resecuritized reacquired notes receivable previously securitized in the previous note sale transaction		218
Timeshare Segment \| Hedge Ineffectiveness
Securitization or Asset-backed Financing Arrangement, Financial Asset for which Transfer is Accounted as Sale [Line Items]
Net gains from the sales of timeshare notes receivable			$ (12)

Long-Term Debt (Detail) (USD $)
In Millions, unless otherwise specified

Dec. 31, 2010

Jan. 01, 2010

Non-recourse debt associated with securitized notes receivable, interest rates ranging from 0.31% to 7.20% (weighted average interest rate of 4.96%)

$ 1,016

$ 0

Less current portion

(126)

Non-recourse debt, Total

890

$2,404 Effective Credit Facility

425

Long-term debt (including from VIEs of $891 and $3, respectively)

182

246

Recourse Debt

1,813

2,298

Less current portion

(12)

(64)

Recourse debt, Total

1,801

2,234

2,691

2,234

Series F, Senior Notes 4.625% Due June 15, 2012

348

^[1]

347

^[1]

Series G, Senior Notes 5.810% Due November 10, 2015

304

^[1]

302

^[1]

Series H, Senior Notes 6.200% Due June 15, 2016

289

^[1]

289

^[1]

Series I, Senior Notes 6.375% Due June 15, 2017

291

^[1]

291

^[1]

Series J, Senior Notes 5.625% Due February 15, 2013

Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]

$ 399

^[1]

$ 398

^[1]

[1]	Face amount and effective interest rate are as of year-end 2010.

Long-Term Debt (Parenthetical) (Detail) (USD $) In Millions, unless otherwise specified	Dec. 31, 2010
Debt Instrument [Line Items]
$2,404 Effective Credit Facility, borrowing capacity	$ 2,404
Non Recourse Debt
Debt Instrument [Line Items]
Non-recourse debt associated with securitized notes receivable, weighted average interest rate	4.96%
Non Recourse Debt \| Lower Limit
Debt Instrument [Line Items]
Debt instrument, stated interest rate	0.31%
Non Recourse Debt \| Upper Limit
Debt Instrument [Line Items]
Debt instrument, stated interest rate	7.20%
Series F, Senior Notes 4.625% Due June 15, 2012
Debt Instrument [Line Items]
Debt instrument, stated interest rate	4.625%
Senior Notes, face amount	348
Senior Notes, effective interest rate	5.02%
Series G, Senior Notes 5.810% Due November 10, 2015
Debt Instrument [Line Items]
Debt instrument, stated interest rate	5.81%
Senior Notes, face amount	316
Senior Notes, effective interest rate	6.53%
Series H, Senior Notes 6.200% Due June 15, 2016
Debt Instrument [Line Items]
Debt instrument, stated interest rate	6.20%
Senior Notes, face amount	289
Senior Notes, effective interest rate	6.30%
Series I, Senior Notes 6.375% Due June 15, 2017
Debt Instrument [Line Items]
Debt instrument, stated interest rate	6.375%
Senior Notes, face amount	293
Senior Notes, effective interest rate	6.45%
Series J, Senior Notes 5.625% Due February 15, 2013
Debt Instrument [Line Items]
Debt instrument, stated interest rate	5.625%
Senior Notes, face amount	$ 400
Senior Notes, effective interest rate	5.71%

Long-term Debt - Additional Information (Detail) (USD $) In Millions, unless otherwise specified	4 Months Ended	12 Months Ended
	Jan. 01, 2010	Dec. 31, 2010 Contract	Jan. 01, 2010	Jan. 02, 2009
Debt Instrument [Line Items]
Multicurrency revolving credit agreement, aggregate effective borrowings		$ 2,404
Number of consolidated notes receivable pools outstanding		13
Number of securitized notes receivable pools that reached performance triggers		7
Number of securitized notes receivable pools previously under performance triggers that returned to compliance		6
Number of securitized notes receivable pools out of compliance with performance triggers		1
Cash paid for interest, net of amounts capitalized		148	96	110
Repurchase of Senior Notes, principal amount		0	122
Repurchase of Senior Notes, gain			21	28
Repurchase of Senior Notes, acquired debt's purchase price			98
Repurchase of Senior Notes, carrying amount			119
Repurchase of Senior Notes, weighted average interest rate on the senior debt			6.80%
Cash payment of principal and interest to retire, at maturity, all outstanding Series C Senior Notes	79
Securitized Notes Receivable \| Performance Triggers
Debt Instrument [Line Items]
Cash flows redirected as a result of reaching performance triggers		$ 6	$ 17	$ 0

Debt Principal Payments (Net of Unamortized Discounts) (Detail) (USD $) In Millions, unless otherwise specified	Dec. 31, 2010
Debt Instrument [Line Items]
2011	$ 138
2012	491
2013	549
2014	151
2015	446
Thereafter	1,054
Ending balance	2,829
Non Recourse Debt
Debt Instrument [Line Items]
2011	126
2012	131
2013	138
2014	139
2015	134
Thereafter	348
Ending balance	1,016
Recourse Debt
Debt Instrument [Line Items]
2011	12
2012	360
2013	411
2014	12
2015	312
Thereafter	706
Ending balance	$ 1,813

Self-Insurance Reserve for Losses and Loss Adjustment Expenses (Detail) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2010	Jan. 01, 2010
Other Liabilities [Line Items]
Balance at beginning of year	$ 304	$ 296
Less: reinsurance recoverable	(9)	(12)
Net balance at beginning of year	295	284
Incurred related to:
Current year	114	109
Prior year	(8)	(6)
Total incurred	106	103
Paid related to:
Current year	(38)	(36)
Prior year	(57)	(56)
Total paid	(95)	(92)
Net balance at end of year	306	295
Add: reinsurance recoverable	7	9
Balance at end of year	$ 313	$ 304

Self-Insurance Reserve for Losses and Loss Adjustment Expenses - Additional Information (Detail) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2010	Jan. 01, 2010	Jan. 02, 2009
Other Liabilities [Line Items]
Decrease in provision for unpaid loss and loss adjustment expenses	$ (8)	$ (6)
Self-insurance reserve	313	304	296
Self-insurance reserve, current portion	98	96
Self-insurance reserve, long-term portion	$ 215	$ 208

Shareholders' Equity - Additional Information (Detail) (USD $) In Millions, except Per Share data, unless otherwise specified	Dec. 31, 2010	Jan. 01, 2010
Stockholders Equity Note [Line Items]
Class A Common Stock, authorized	800
Class A Common Stock, par value	$ 0.01
Prefered stock, authorized	10
Class A Common Stock, outstanding	366.9
Prefered stock, outstanding	0
Accumulated other comprehensive income (loss), currency translation adjustments	$ (4)	$ 11
Accumulated other comprehensive income, cash flow hedges	2	2
Accumulated other comprehensive income (loss)	$ (2)	$ 13

Contingencies - Additional Information (Detail) In Millions, unless otherwise specified			12 Months Ended																			12 Months Ended
	Dec. 31, 2010 USD ($)	Dec. 31, 2010 Commitments Timeshare Segment USD ($)	Dec. 31, 2010 Lower Limit	Dec. 31, 2010 Upper Limit	Dec. 31, 2010 Effective Credit Facility USD ($)	Dec. 31, 2010 Outside Effective Credit Facility USD ($)	Dec. 31, 2010 Project Completion Guarantee Project One USD ($)	Dec. 31, 2010 Project Completion Guarantee Project Two USD ($)	Dec. 31, 2010 Project Completion Guarantee Project Two CAD	Dec. 31, 2010 Primary Obligor USD ($)	Dec. 31, 2010 Primary Obligor Guarantee, Operating Profit USD ($)	Dec. 31, 2010 Primary Obligor Guarantee, Operating Profit Condition Not Yet in Effect USD ($)	Dec. 31, 2010 Secondarily Liable USD ($)	Dec. 31, 2010 Secondarily Liable Property Lease Guarantee Sunrise Senior Living, Inc USD ($)	Dec. 31, 2010 Secondarily Liable Property Lease Guarantee Renaissance Hotel Group N. V. USD ($)	Dec. 31, 2010 Secondarily Liable Property Lease Guarantee Renaissance Hotel Group N. V. EUR (€)	Sep. 09, 2005 Secondarily Liable Property Lease Guarantee Renaissance Hotel Group N. V. EUR (€)	Dec. 31, 2010 Secondarily Liable Debt Securities Payable USD ($)	Dec. 31, 2010 Secondarily Liable Debt Securities Payable Sunrise Senior Living, Inc USD ($)	Dec. 31, 2010 Secondarily Liable Debt Securities Payable CNL Retirement Properties, Inc USD ($)	Dec. 31, 2010 Secondarily Liable Debt Securities Payable Five Star Senior Living USD ($)	Dec. 31, 2010 Investment in Other Joint Venture Commitment One Year from Balance Sheet Date Commitments USD ($) Entity	Dec. 31, 2010 Investment in Other Joint Venture Commitment One Year from Balance Sheet Date Commitments EUR (€)	Dec. 31, 2010 Investment in Other Joint Venture Commitment Group 1 Upper Limit USD ($)	Dec. 31, 2010 Investment in Other Joint Venture Commitment Group 1 Upper Limit EUR (€)	Dec. 31, 2010 Investment in Other Joint Venture Commitment Group 2 Upper Limit USD ($)	Dec. 31, 2010 Leasehold Purchase One Year from Balance Sheet Date Commitments USD ($) Year	Dec. 31, 2010 Leasehold Purchase One Year from Balance Sheet Date Commitments EUR (€)	Dec. 31, 2010 Real Estate Purchase Within Three Years From Balance Sheet Date Commitments USD ($)	Dec. 31, 2010 Real Estate Purchase Within Three Years From Balance Sheet Date Commitments EUR (€)	Dec. 31, 2010 Equity Investment for Non Controlling Interest in Partnership Commitment USD ($)	Dec. 31, 2010 Equity Investment for Non Controlling Interest in Partnership Commitment More than One and within Two Years from Balance Sheet Date USD ($)	Dec. 31, 2010 Equity Investment for Non Controlling Interest in Partnership Commitment More than Two and within Three Years from Balance Sheet Date USD ($)	Dec. 31, 2010 Equity Investment for Non Controlling Interest in Partnership Commitment Expirations More than One and within Two Years from Balance Sheet Date USD ($)	Dec. 31, 2010 Equity Investment for Non Controlling Interest in Partnership Commitment Expirations More than Two and within Three Years from Balance Sheet Date USD ($)	Dec. 31, 2010 Equity Investment for Non Controlling Interest in Partnership Commitment Expirations More Than Three Years From Balance Sheet Date and Thereafter USD ($)	Dec. 31, 2010 Equity Investment for Non Controlling Interest in Partnership Commitment Upper Limit USD ($)	Dec. 31, 2010 Investment in Joint Venture for Development of New Property Commitment Upper Limit Within Three Years From Balance Sheet Date USD ($)	Dec. 31, 2010 Other Purchase Commitment Commitments USD ($)	Dec. 31, 2010 Other Purchase Commitment Commitments EUR (€)	Dec. 31, 2010 Other Purchase Commitment One Year from Balance Sheet Date Commitments USD ($)	Dec. 31, 2010 Other Purchase Commitment More than One and within Two Years from Balance Sheet Date Commitments USD ($)	Dec. 31, 2010 Other Purchase Commitment More than Two and within Three Years from Balance Sheet Date Commitments USD ($)	Dec. 31, 2010 Other Purchase Commitment More than Three and within Four Years from Balance Sheet Date Commitments USD ($)	Dec. 31, 2010 Lodging Properties Commitments USD ($)	Dec. 31, 2010 Lodging Properties Commitments Within Three Years From Balance Sheet Date USD ($)	Dec. 31, 2010 Lodging Properties Commitments Expirations Within Three Years From Balance Sheet Date USD ($)	Dec. 31, 2010 Lodging Properties Commitments Expirations More than Five Years from Balance Sheet Date and Thereafter USD ($)	Dec. 31, 2010 Investment in Fund to Purchase or Develop Hotels Commitment One Year from Balance Sheet Date USD ($)
Commitments and Contingencies Disclosure [Line Items]
Funding guarantees term			P3Y	P10Y
Carrying value of our liability related to this guarantee										$ 5
Liability for expected future fundings, in "Other long-term liabilities"										26
Maximum Potential Amount of Future Fundings							592	491	491	199	121	32	133	87				46	7	38	1
Pro rata ownership in the joint venture							34.00%	20.00%	20.00%
Liability for Expected Future Fundings							16	3		31	25
Annual rent payments, approximately															6
Remaining rent payments, approximately															52
CTF Holdings Ltd. cash collateral in the event funding is required															8	6	35
Purchase commitments		18
Deposits in conjunction with commitments to purchase timeshare and fractional units upon completion of construction		11
Unfunded purchase commitments		7																				54	41				33	25	60	45									4	3	1	1	1	1
Acquisition interests in joint ventures																						50.00%	50.00%
Term of leasehold commitment																											50,000,000	50,000,000
Number of new joint ventures																						2	2
Obligation to acquire remaining interest																						We also have a right and under certain circumstances an obligation to acquire the remaining interest in the joint ventures over the next ten years.	We also have a right and under certain circumstances an obligation to acquire the remaining interest in the joint ventures over the next ten years.
Investment commitment																																3	20	8	10	10	28	11											1
Loan commitments not expected to be funded																															5														3		2	1
Investment commitments not expected to be funded																								27	20	7
Loan commitments that we have extended to owners of lodging properties																																													4	1
Letters of credit outstanding	81				78	3
Surety bonds issued	$ 219

Maximum Potential Amount of Future Fundings as the Primary Obligor for Guarantees and the Liability for Expected Future Fundings (Detail) (Primary Obligor, USD $) In Millions, unless otherwise specified	Dec. 31, 2010
Loss Contingencies [Line Items]
Maximum Potential Amount of Future Fundings	$ 199
Liability for Expected Future Fundings	31
Guarantee, Indebtedness of Others
Loss Contingencies [Line Items]
Maximum Potential Amount of Future Fundings	29
Liability for Expected Future Fundings	3
Guarantee, Operating Profit
Loss Contingencies [Line Items]
Maximum Potential Amount of Future Fundings	121
Liability for Expected Future Fundings	25
Guarantee, Other
Loss Contingencies [Line Items]
Maximum Potential Amount of Future Fundings	49
Liability for Expected Future Fundings	$ 3

Business Segments - Additional Information (Detail) (USD $)	12 Months Ended
	Dec. 31, 2010	Jan. 01, 2010	Jan. 02, 2009
Segment Reporting Disclosure [Line Items]
Number of business segments	5
Revenues	$ 11,691,000,000	$ 10,908,000,000	$ 12,879,000,000
Segment results	983,000,000	4,000,000	1,166,000,000
Property and equipment	1,307,000,000	1,362,000,000
Estimated completion period	P20Y
Estimated Completion, Date Range, Start	2011
Estimated Completion, Date Range, End	2030
For the 20-year period from 2011 through 2030, the cash flow associated with completing all phases of our existing portfolio of owned timeshare properties	2,800,000,000
International Operations
Segment Reporting Disclosure [Line Items]
Revenues	1,841,000,000	1,700,000,000	2,230,000,000
Segment results	252,000,000	(26,000,000)	253,000,000
Property and equipment	350,000,000	325,000,000
International Operations \| Europe
Segment Reporting Disclosure [Line Items]
Segment results	71,000,000
International Operations \| Americas Excluding The United States
Segment Reporting Disclosure [Line Items]
Segment results	67,000,000
International Operations \| Asia
Segment Reporting Disclosure [Line Items]
Segment results	91,000,000
International Operations \| Ireland and the United Kingdom
Segment Reporting Disclosure [Line Items]
Segment results	(4,000,000)
International Operations \| Middle East And Africa
Segment Reporting Disclosure [Line Items]
Segment results	23,000,000
International Operations \| Australia
Segment Reporting Disclosure [Line Items]
Segment results	4,000,000
Total Reportable Segments
Segment Reporting Disclosure [Line Items]
Selling expenses	419,000,000	440,000,000	633,000,000
Revenues	11,611,000,000	10,831,000,000	12,817,000,000
Timeshare Segment
Segment Reporting Disclosure [Line Items]
Percentage of selling expense	85.00%	86.00%	88.00%
Revenues	1,546,000,000	1,439,000,000	1,750,000,000
Segment results	121,000,000	(679,000,000)	28,000,000
Timeshare Segment \| International Operations
Segment Reporting Disclosure [Line Items]
Impairment charges and restructuring costs		176,000,000
Restructuring costs and other charges			12,000,000
Timeshare Segment \| International Operations \| Europe
Segment Reporting Disclosure [Line Items]
Impairment charges and restructuring costs		47,000,000
Restructuring costs and other charges			10,000,000
Timeshare Segment \| International Operations \| Americas Excluding The United States
Segment Reporting Disclosure [Line Items]
Impairment charges and restructuring costs		100,000,000
Restructuring costs and other charges			2,000,000
Timeshare Segment \| International Operations \| Asia
Segment Reporting Disclosure [Line Items]
Impairment charges and restructuring costs		22,000,000
Timeshare Segment \| International Operations \| Ireland and the United Kingdom
Segment Reporting Disclosure [Line Items]
Impairment charges and restructuring costs		$ 7,000,000

Segment Revenues (Detail) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2010	Jan. 01, 2010	Jan. 02, 2009
Segment Reporting, Revenue Reconciling Item [Line Items]
Revenue	$ 11,691	$ 10,908	$ 12,879
North American Full Service Segment
Segment Reporting, Revenue Reconciling Item [Line Items]
Revenue	5,108	4,848	5,631
North American Limited Service Segment
Segment Reporting, Revenue Reconciling Item [Line Items]
Revenue	2,149	1,986	2,233
International Segment
Segment Reporting, Revenue Reconciling Item [Line Items]
Revenue	1,245	1,145	1,544
Luxury Segment
Segment Reporting, Revenue Reconciling Item [Line Items]
Revenue	1,563	1,413	1,659
Timeshare Segment
Segment Reporting, Revenue Reconciling Item [Line Items]
Revenue	1,546	1,439	1,750
Total Reportable Segments
Segment Reporting, Revenue Reconciling Item [Line Items]
Revenue	11,611	10,831	12,817
Unallocated Corporate
Segment Reporting, Revenue Reconciling Item [Line Items]
Revenue	$ 80	$ 77	$ 62

Income (Loss) from Continuing Operations Attributable to Marriott (Detail) (USD $)
In Millions, unless otherwise specified

12 Months Ended

Dec. 31, 2010

Jan. 01, 2010

Jan. 02, 2009

Other unallocated corporate

$ 983

$ 4

$ 1,166

(326)

(318)

(324)

Interest income and interest expense

(106)

^[1]

(93)

^[1]

(124)

^[1]

Income (loss) from continuing operations attributable to Marriott shareholders

(93)

^[2]

(359)

^[2]

458

(346)

359

North American Full Service Segment

Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]

Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]

318

272

419

North American Limited Service Segment

Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]

298

265

395

International Segment

Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]

169

129

246

Luxury Segment

Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]

Timeshare Segment

Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]

$ 121

$ (679)

$ 28

[1]	Of the $180 million of interest expense shown on the Income Statement for year -end 2010 we allocated $55 million to our Timeshare segment.
[2]	The $61 million of income tax benefits for year-end 2009 included our benefit for income taxes of $65 million as shown in the Income Statements and taxes attributable to noncontrolling interests of $4 million.

Income (Loss) from Continuing Operations Attributable to Marriott (Parenthetical) (Detail) (USD $)
In Millions, unless otherwise specified

12 Months Ended

Dec. 31, 2010

Jan. 01, 2010

Jan. 02, 2009

$ 180

^[1]

$ 118

^[1]

$ 163

^[1]

(Provision) benefit for income taxes

(93)

^[2]

(359)

^[2]

(93)

^[1]

(350)

^[1]

Taxes attributable to noncontrolling interests

Timeshare Segment

Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]

Segment Reporting, Other Significant Reconciling Item [Line Items]

$ 55

[1]	See Footnote No. 22, "Related Party Transactions," of the Notes to Consolidated Financial Statements for disclosure of related party amounts.
[2]	The $61 million of income tax benefits for year-end 2009 included our benefit for income taxes of $65 million as shown in the Income Statements and taxes attributable to noncontrolling interests of $4 million.

Net Losses Attributable to Noncontrolling Interests (Detail) (USD $)
In Millions, unless otherwise specified

12 Months Ended

Dec. 31, 2010

Jan. 01, 2010

Jan. 02, 2009

$ 983

$ 4

$ 1,166

Net Losses Attributable to Noncontrolling Interests

(93)

^[1]

(359)

^[1]

Noncontrolling Interest

Segment Reporting, Other Significant Reconciling Item [Line Items]

Segment Reporting, Other Significant Reconciling Item [Line Items]

(4)

(9)

International Segment

Segment Reporting, Other Significant Reconciling Item [Line Items]

169

129

246

International Segment | Noncontrolling Interest

Segment Reporting, Other Significant Reconciling Item [Line Items]

(1)

Timeshare Segment

Segment Reporting, Other Significant Reconciling Item [Line Items]

121

(679)

Timeshare Segment | Noncontrolling Interest

$ 0

$ 11

$ 25

[1]	The $61 million of income tax benefits for year-end 2009 included our benefit for income taxes of $65 million as shown in the Income Statements and taxes attributable to noncontrolling interests of $4 million.

Equity in (Losses) Earnings of Equity Method Investees (Detail) (USD $)
In Millions, unless otherwise specified

12 Months Ended

Dec. 31, 2010

Jan. 01, 2010

Jan. 02, 2009

Equity in (Losses) Earnings of Equity Method Investees

$ (18)

^[1]

$ (66)

^[1]

$ 15

^[1]

North American Full Service Segment

Equity in (Losses) Earnings of Equity Method Investees

North American Limited Service Segment

Equity in (Losses) Earnings of Equity Method Investees

(13)

(9)

International Segment

Equity in (Losses) Earnings of Equity Method Investees

(7)

(11)

(2)

Luxury Segment

Equity in (Losses) Earnings of Equity Method Investees

(2)

(32)

(12)

Timeshare Segment

Equity in (Losses) Earnings of Equity Method Investees

(8)

(12)

Total Reportable Segments

Equity in (Losses) Earnings of Equity Method Investees

(28)

(63)

Unallocated Corporate

Equity in (Losses) Earnings of Equity Method Investees

$ 10

$ (3)

$ 15

[1]	See Footnote No. 22, "Related Party Transactions," of the Notes to Consolidated Financial Statements for disclosure of related party amounts.

This item represents the entity's proportionate share for the period of the net income (loss) of its investee (such as unconsolidated subsidiaries and joint ventures) to which the equity method of accounting is applied. Such amount typically reflects adjustments similar to those made in preparing consolidated statements, including adjustments to eliminate intercompany gains and losses, and to amortize, if appropriate, any difference between cost and underlying equity in net assets of the investee at the date of investment.

+ References+ Details

Depreciation and Amortization (Detail) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2010	Jan. 01, 2010	Jan. 02, 2009
Segment Reporting Information [Line Items]
Depreciation and Amortization	$ 178	$ 185	$ 190
North American Full Service Segment
Segment Reporting Information [Line Items]
Depreciation and Amortization	31	33	29
North American Limited Service Segment
Segment Reporting Information [Line Items]
Depreciation and Amortization	19	18	20
International Segment
Segment Reporting Information [Line Items]
Depreciation and Amortization	24	25	24
Luxury Segment
Segment Reporting Information [Line Items]
Depreciation and Amortization	19	17	16
Timeshare Segment
Segment Reporting Information [Line Items]
Depreciation and Amortization	36	42	46
Total Reportable Segments
Segment Reporting Information [Line Items]
Depreciation and Amortization	129	135	135
Unallocated Corporate
Segment Reporting Information [Line Items]
Depreciation and Amortization	$ 49	$ 50	$ 55

Assets (Detail) (USD $) In Millions, unless otherwise specified	Dec. 31, 2010	Jan. 01, 2010
Segment Reporting, Asset Reconciling Item [Line Items]
Total Assets	$ 8,983	$ 7,933
North American Full Service Segment
Segment Reporting, Asset Reconciling Item [Line Items]
Total Assets	1,203	1,175
North American Limited Service Segment
Segment Reporting, Asset Reconciling Item [Line Items]
Total Assets	464	468
International Segment
Segment Reporting, Asset Reconciling Item [Line Items]
Total Assets	841	849
Luxury Segment
Segment Reporting, Asset Reconciling Item [Line Items]
Total Assets	871	653
Timeshare Segment
Segment Reporting, Asset Reconciling Item [Line Items]
Total Assets	3,310	2,653
Total Reportable Segments
Segment Reporting, Asset Reconciling Item [Line Items]
Total Assets	6,689	5,798
Unallocated Corporate
Segment Reporting, Asset Reconciling Item [Line Items]
Total Assets	$ 2,294	$ 2,135

Equity Method Investments (Detail) (USD $) In Millions, unless otherwise specified	Dec. 31, 2010	Jan. 01, 2010
Segment Reporting Information [Line Items]
Equity method investments	$ 190	$ 208
North American Full Service Segment
Segment Reporting Information [Line Items]
Equity method investments	14	14
North American Limited Service Segment
Segment Reporting Information [Line Items]
Equity method investments	87	100
International Segment
Segment Reporting Information [Line Items]
Equity method investments	38	47
Luxury Segment
Segment Reporting Information [Line Items]
Equity method investments	44	38
Timeshare Segment
Segment Reporting Information [Line Items]
Equity method investments	1	2
Total Reportable Segments
Segment Reporting Information [Line Items]
Equity method investments	184	201
Unallocated Corporate
Segment Reporting Information [Line Items]
Equity method investments	$ 6	$ 7

Goodwill (Detail) (USD $) In Millions, unless otherwise specified	Dec. 31, 2010	Jan. 01, 2010	Jan. 02, 2009
Segment Reporting Information [Line Items]
Goodwill before accumulated amortization	$ 1,003	$ 1,003	$ 1,003
Accumulated amortization	(128)	(128)	(128)
Goodwill	875	875	875
North American Full Service Segment
Segment Reporting Information [Line Items]
Goodwill before accumulated amortization	390	390	390
Accumulated amortization	(55)	(55)	(55)
Goodwill	335	335	335
North American Limited Service Segment
Segment Reporting Information [Line Items]
Goodwill before accumulated amortization	86	86	86
Accumulated amortization	(14)	(14)	(14)
Goodwill	72	72	72
International Segment
Segment Reporting Information [Line Items]
Goodwill before accumulated amortization	335	335	335
Accumulated amortization	(37)	(37)	(37)
Goodwill	298	298	298
Luxury Segment
Segment Reporting Information [Line Items]
Goodwill before accumulated amortization	192	192	192
Accumulated amortization	(22)	(22)	(22)
Goodwill	$ 170	$ 170	$ 170

Capital Expenditures (Detail) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2010	Jan. 01, 2010	Jan. 02, 2009
Reconciliation of Fixed Assets from Segment to Consolidated [Line Items]
Capital Expenditures	$ 307	$ 147	$ 357
North American Full Service Segment
Reconciliation of Fixed Assets from Segment to Consolidated [Line Items]
Capital Expenditures	7	18	117
North American Limited Service Segment
Reconciliation of Fixed Assets from Segment to Consolidated [Line Items]
Capital Expenditures	13	9	13
International Segment
Reconciliation of Fixed Assets from Segment to Consolidated [Line Items]
Capital Expenditures	35	33	45
Luxury Segment
Reconciliation of Fixed Assets from Segment to Consolidated [Line Items]
Capital Expenditures	168	1	6
Timeshare Segment
Reconciliation of Fixed Assets from Segment to Consolidated [Line Items]
Capital Expenditures	24	28	105
Total Reportable Segments
Reconciliation of Fixed Assets from Segment to Consolidated [Line Items]
Capital Expenditures	247	89	286
Unallocated Corporate
Reconciliation of Fixed Assets from Segment to Consolidated [Line Items]
Capital Expenditures	$ 60	$ 58	$ 71

Composition of Impairment Charges (Detail) (USD $)
In Millions, unless otherwise specified

12 Months Ended

Dec. 31, 2010

Jan. 01, 2010

Jan. 02, 2009

Timeshare strategy-impairment charges, non-operating

$ 0

$ 614

$ 0

^[1]

138

^[1]

Total

752

Total (after-tax)

502

Inventories

529

Property Plant and Equipment

Time Share Purchase Commitments

Equity Method Investee

Timeshare strategy-impairment charges, non-operating

Loans

Timeshare strategy-impairment charges, non-operating

Funding Liability

Timeshare strategy-impairment charges, non-operating

$ 27

[1]	See Footnote No. 22, "Related Party Transactions," of the Notes to Consolidated Financial Statements for disclosure of related party amounts.

Timeshare Strategy - Impairment Charges - Additional Information (Detail) (USD $)
In Millions, unless otherwise specified

12 Months Ended

4 Months Ended

12 Months Ended

Dec. 31, 2010

Jan. 01, 2010

Jan. 02, 2009

Dec. 31, 2010

Funding Liability

Jan. 01, 2010

Funding Liability

Jan. 01, 2010

Time Share Purchase Commitments

Jan. 01, 2010

Timeshare Segment

Jan. 01, 2010

Luxury Residential Projects

Project

Jan. 01, 2010

North American Luxury Fractional Projects

Project

Jan. 01, 2010

North American Timeshare Project

Project

Jan. 01, 2010

European Timeshare And Fractional Business

Project

Jan. 01, 2010

Asia Pacific Timeshare Resorts

Project

Timeshare strategy-impairment charges, non-operating

$ 0

^[1]

$ 138

^[1]

$ 0

^[1]

$ 27

Timeshare strategy-impairment charges, operating and non-operating

614

752

685

295

299

Number of impaired projects

Timeshare strategy-impairment charges, non-operating reversal

$ 11

[1]	See Footnote No. 22, "Related Party Transactions," of the Notes to Consolidated Financial Statements for disclosure of related party amounts.

Restructuring Costs and Other Charges - Additional Information (Detail) (USD $)
In Millions, unless otherwise specified

12 Months Ended

16 Months Ended

Dec. 31, 2010

Jan. 01, 2010

Jan. 02, 2009

Jan. 01, 2010

$ 0

$ 51

$ 55

$ 106

^[1]

Other charges

$ 162

[1]	Includes charges recorded in the 2008 fourth quarter through year-end 2009. After 2009, we have not incurred and do not expect to incur additional restructuring expenses.

Liability and Total Costs Incurred Through the Restructuring (Detail) (USD $)
In Millions, unless otherwise specified

12 Months Ended

16 Months Ended

Dec. 31, 2010

Jan. 01, 2010

Jan. 02, 2009

Jan. 01, 2010

$ 25

106

^[1]

Timeshare Segment

^[1]

Timeshare Segment | Employee Severance

^[1]

Timeshare Segment | Facility Closing

^[1]

Timeshare Segment | Development Cancellations

^[1]

Hotel Development

^[1]

Hotel Development | Employee Severance

^[1]

Hotel Development | Development Cancellations

^[1]

Above Property Level Management

^[1]

Above Property Level Management | Employee Severance

$ 7

^[1]

[1]	Includes charges recorded in the 2008 fourth quarter through year-end 2009. After 2009, we have not incurred and do not expect to incur additional restructuring expenses.

Variable Interest Entities - Additional Information (Detail) (USD $)
In Millions, unless otherwise specified

12 Months Ended

Dec. 31, 2010

Jan. 01, 2010

Jan. 02, 2009

Notes receivable (including from VIEs of $911 and $0, respectively)

$ 8,983

$ 7,933

1,264

^[1]

452

^[1]

Restricted cash, current

Restricted cash, noncurrent

138

2,691

2,234

^[1]

Variable Interest Entity, Entity Maximum Loss Exposure

180

^[1]

118

^[1]

163

^[1]

Our maximum exposure to loss relating to the entities that own these notes is the overcollateralization amount (the difference between the loan collateral balance and the balance on the outstanding notes), plus cash reserves and any residual interest in future cash flows from collateral.

Timeshare Segment

3,310

2,653

Defaulted notes voluntarily repurchased

Non defaulted notes voluntarily repurchased

Timeshare Segment | Lower Limit

Limit to repurchasing defaulted mortgage notes at the outstanding principal balance

10.00%

Timeshare Segment | Upper Limit

Limit to repurchasing defaulted mortgage notes at the outstanding principal balance

15.00%

Group 4

Gain from sale of assets and liabilities of an entity

Net cash flow from sale of assets and liabilities of an entity

Variable Interest Entity, Primary Beneficiary

Notes receivable (including from VIEs of $911 and $0, respectively)

911

126

891

Variable Interest Entity, Primary Beneficiary | Group 1

Notes receivable, current

1,081

118

Notes receivable (including from VIEs of $911 and $0, respectively)

911

Interest receivable

Restricted cash, current

Restricted cash, noncurrent

Noncontrolling interest

147

Debt issuance cost amortization

Variable Interest Entity, Primary Beneficiary | Group 1 | Non Recourse

Total Liabilities

1,020

Interest payable

126

891

Variable Interest Entity, Not Primary Beneficiary | Group 2

Notes receivable, current

Accrued liability for additional funding

Variable Interest Entity, Not Primary Beneficiary | Group 3

Nature of common ownership or management control relationships

we manage hotels on behalf of tenant entities 100 percent owned by CTF, which lease the hotels from third-party owners.

Total number of hotels

10,000,000

Number of entities on behalf of

3,000,000

Variable Interest Entity, Not Primary Beneficiary | Group 3 | Upper Limit

CTF trust account

Variable Interest Entity, Not Primary Beneficiary | Group 3 | Seven of Ten Hotels | Secondarily Liable

Nature of common ownership or management control relationships

We are secondarily liable (after exhaustion of funds from the trust account) for rent payments for seven of the ten hotels if there are cash flow shortfalls.

Future lease payment

Variable Interest Entity, Not Primary Beneficiary | Group 3 | Three of Ten Hotels | Secondarily Liable

Nature of common ownership or management control relationships

we are secondarily liable for rent payments of up to an aggregate cap of $15 million for the three other hotels if there are cash flow shortfalls.

Variable Interest Entity, Not Primary Beneficiary | Group 3 | Three of Ten Hotels | Secondarily Liable | Upper Limit

Future lease payment

$ 15

[1]	See Footnote No. 22, "Related Party Transactions," of the Notes to Consolidated Financial Statements for disclosure of related party amounts.

Cash Flows Between us and the Timeshare Notes Securitization Variable Interest Entities (Detail) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2010
Variable Interest Entity [Line Items]
Proceeds from securitization	$ 215
Principal receipts	231
Interest receipts	142
Reserve release	3
Total	591
Principal to investors	(230)
Repurchases	(93)
Interest to investors	(53)
Total	(376)
Net Cash Flows	$ 215

Future Obligations Under Operating Leases (Detail) (Primary Obligations Operating Leases, USD $) In Millions, unless otherwise specified	Dec. 31, 2010
Primary Obligations Operating Leases
Schedule of Operating Leases [Line Items]
Minimum operating lease payments - 2011	$ 143
Minimum operating lease payments - 2012	145
Minimum operating lease payments - 2013	129
Minimum operating lease payments - 2014	117
Minimum operating lease payments - 2015	115
Minimum operating lease payments - thereafter	862
Total Minimum Operating Lease Payments as Primary Obligor	$ 1,511

Leases - Additional Information (Detail) (USD $) In Millions, unless otherwise specified			12 Months Ended
	Dec. 31, 2010	Jan. 01, 2010	Dec. 31, 2010 Primary Obligations Operating Leases Year	Dec. 31, 2010 Primary Obligations Operating Leases Upper Limit Year	Dec. 31, 2010 Primary Obligations Operating Leases Lower Limit Right	Dec. 31, 2010 Variable Interest Entity, Not Primary Beneficiary
Leases Disclosure [Line Items]
Obligations of consolidated subsidiaries that are non-recourse			$ 338
Minimum renewal option period (in years)			5
Maximum renewal option period (in years)			10
Description of Lessee Leasing Arrangements, Operating Leases			Most leases have initial terms of up to 20 years and contain one or more renewal options, generally for five- or 10- year periods.
Lease initial terms (in years)				20
Number of lease renewal options					1
Minimum operating lease payments			1,511			58
Minimum operating lease payments - 2011			143			18
Minimum operating lease payments - 2012			145			15
Minimum operating lease payments - 2013			129			12
Minimum operating lease payments - 2014			117			8
Minimum operating lease payments - 2015			115			4
Minimum operating lease payments - thereafter			862			1
Present value of net minimum lease payments associated with capital leases	$ 6	$ 6

Composition of Rent Expense Associated with Operating Leases (Detail) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2010	Jan. 01, 2010	Jan. 02, 2009
Schedule of Operating Leases [Line Items]
Minimum rentals	$ 252	$ 262	$ 283
Additional rentals	67	63	67
Operating Leases, Rent Expense, Total	$ 319	$ 325	$ 350

Incentive management fees

The increases or decreases in lease payments that result from changes occurring after the inception of the lease in the factors (other than the passage of time) on which lease payments are based, except that any escalation of minimum lease payments relating to increases in construction or acquisition cost of the leased property or for increases in some measure of cost or value during the construction or preconstruction period, shall be excluded from contingent rentals. Contingent rentals also may include amounts for which the triggering events have not yet occurred or the specified targets for which have not yet been achieved (such as sales based percentage rent), but which events are considered probable of occurring or which specified targets are considered probable of being achieved.

+ References+ Details

Future Obligations Under Capital Leases (Detail) (USD $) In Millions, unless otherwise specified	Dec. 31, 2010	Jan. 01, 2010
Schedule of Capital Lease Obligations [Line Items]
Minimum capital lease payments - 2011	$ 1
Minimum capital lease payments - 2012	1
Minimum capital lease payments - 2013	1
Minimum capital lease payments - 2014	1
Minimum capital lease payments - 2015	1
Minimum capital lease payments - thereafter	4
Total Minimum Capital Lease Payments	9
Less: Amount representing interest	(3)
Present value of net minimum lease payments	$ 6	$ 6

Related Party Transactions - Additional Information (Detail) (USD $) In Millions, unless otherwise specified	Dec. 31, 2010	Jan. 01, 2010
Related Party Transaction [Line Items]
Undistributed earnings	$ 3,286	$ 3,103
Equity Method Investment \| Lower Limit
Related Party Transaction [Line Items]
Ownership interest in equity method investments	10.00%
Equity Method Investment \| Upper Limit
Related Party Transaction [Line Items]
Ownership interest in equity method investments	49.00%
Equity Method Investee
Related Party Transaction [Line Items]
Undistributed earnings	$ 1

Financial Data Resulting from Transactions with Related Parties, Income Statement Data (Detail) (USD $)
In Millions, unless otherwise specified

12 Months Ended

Dec. 31, 2010

Jan. 01, 2010

Jan. 02, 2009

Base management fees

$ 562

^[1]

$ 530

^[1]

$ 635

^[1]

Franchise fees

441

^[1]

400

^[1]

451

^[1]

182

^[1]

154

^[1]

311

^[1]

Cost reimbursements

8,239

^[1]

7,682

^[1]

8,834

^[1]

Owned, leased, corporate housing, and other

1,046

1,019

1,225

Total revenue

11,691

10,908

12,879

General, administrative, and other

(780)

^[1]

(722)

^[1]

(803)

^[1]

Reimbursed costs

(8,239)

^[1]

(7,682)

^[1]

(8,834)

^[1]

Timeshare strategy-impairment charges (non-operating)

^[1]

(138)

^[1]

Provision for income taxes

^[1]

(65)

^[1]

350

^[1]

Related Party Transactions

Base management fees

Franchise fees

Incentive management fees

Cost reimbursements

270

260

340

Owned, leased, corporate housing, and other

Total revenue

312

306

400

General, administrative, and other

(1)

Reimbursed costs

(270)

(260)

(340)

Gains and other income

Interest expense-capitalized

Equity in (losses) earnings

(29)

(66)

Timeshare strategy-impairment charges (non-operating)

(138)

Provision for income taxes

$ 0

$ 1

[1]	See Footnote No. 22, "Related Party Transactions," of the Notes to Consolidated Financial Statements for disclosure of related party amounts.

Financial Data Resulting from Transactions with Related Parties, Balance Sheet Data (Detail) (USD $)
In Millions, unless otherwise specified

Dec. 31, 2010

Jan. 01, 2010

Current assets-accounts and notes receivable

$ 938

^[1]

$ 838

^[1]

Contract acquisition costs

768

^[1]

731

^[1]

Equity and cost method investments

190

208

Deferred taxes, net asset

1,444

620

246

255

Current liabilities:

Current assets-accounts and notes receivable

(551)

^[1]

(688)

^[1]

Related Party Transactions

Deferred development

Contract acquisition costs

Equity and cost method investments

190

208

Deferred taxes, net asset

Current liabilities:

Other long-term liabilities

(25)

(31)

$ (8)

$ (13)

[1]	See Footnote No. 22, "Related Party Transactions," of the Notes to Consolidated Financial Statements for disclosure of related party amounts.

Equity Method Investment Summarized Financial Information, Income Statement (Detail) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2010	Jan. 01, 2010	Jan. 02, 2009
Subsidiary or Equity Method Investee [Line Items]
Sales	$ 914	$ 850	$ 1,342
Net (loss) income	$ (77)	$ (241)	$ 122

This item represents the disclosure of summarized financial information for unconsolidated subsidiaries and 50 percent-or-less owned entities accounted for using the equity method of accounting. If investments in common stock of corporate joint ventures or other investments accounted for under the equity method are, in the aggregate, material in relation to the financial position or results of operations of an investor, it may be necessary to present summarized information as to assets of the investee, or group of investments for which combined disclosure is appropriate, either by individual financial statement caption or in groups, as appropriate. Such summarized financial information may, at a minimum, include net income or loss.

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Equity Method Investment Summarized Financial Information, Balance Sheet (Detail) (USD $) In Millions, unless otherwise specified	Dec. 31, 2010	Jan. 01, 2010
Subsidiary or Equity Method Investee [Line Items]
Assets (primarily comprised of hotel real estate managed by us)	$ 3,186	$ 3,228
Liabilities	$ 2,446	$ 2,339

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