the Courtyard Joint Venture ($521 million). At December 29, 2000: senior living loans and timeshare loans ($190 million); lodg- ing senior loans ($150 million); lodging mezzanine loans, includ- ing the loan to the Courtyard Joint Venture ($418 million). Notes receivable due from affiliates totaling $540 million at December 28, 2001 and $395 million at December 29, 2000 are included in investments in affiliates in the accompanying consolidated balance sheet. Amounts due within one year of $73 million at December 28, 2001 and $59 million at December 29, 2000 are classified as current assets in the accompanying consolidated balance sheet. We record property and equipment at cost, including interest, rent and real estate taxes incurred during development and con- struction. Interest capitalized as a cost of property and equip- ment totaled $61 million in 2001, $52 million in 2000 and  $33 million in 1999. 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 and paint. All repairs and main- tenance costs are expensed as incurred. We compute depreciation using the straight-line method over the estimated useful lives of the assets (three to 40 years). We amortize leasehold improve- ments over the shorter of the asset life or lease term. On February 17, 1999, we completed a cash tender offer for approximately 44 percent of the outstanding common stock of Execustay Corporation (ExecuStay), a leading provider of leased corporate apartments in the United States. On February 24, 1999, substantially all of the remaining common stock of ExecuStay was converted into nonvoting preferred stock of ExecuStay, which we acquired on March 26, 1999, for approximately 2.1 million shares of our Class A Common Stock. Our aggregate purchase price totaled $116 million inclusive of $63 million of our Class A Common Stock. Unaudited pro forma sales, net income and diluted earnings per share for 1999, calculated as if ExecuStay had been acquired at the beginning of that year, were $8,762 million, $399 million and $1.50, respectively. The unaudited pro forma combined results of operations do not reflect our expected future results of operations. We consolidated the operating results of ExecuStay from February 24, 1999, and have accounted for the acquisition using the purchase method of accounting. We have been amortizing the resulting goodwill on a straight-line basis over 30 years. In 2001, in connection with the sale of four of the above lodging properties, we agreed to transfer 31 existing lodging property leases to a subsidiary of the lessor and subsequently enter into agreements with the new lessee to operate the hotels under long-term management agreements. These properties were previ- ously sold and leased back by us in 1997, 1998 and 1999. As of In 2001, we agreed to sell 18 lodging properties and three pieces of undeveloped land for $680 million in cash. We will continue to operate 17 of the hotels under long-term management agree- ments. As of December 28, 2001, sales of 11 of those properties and the undeveloped land had been completed for proceeds of $470 million. Six of the 11 properties are accounted for under the full accrual method in accordance with FAS No. 66. The buy- ers did not make adequate minimum initial investments in the remaining five properties, which we accounted for under the cost recovery method. The sale of two of the properties were to joint ventures in which we have a minority interest. Where the full accrual method applied, we recognized profit proportionate to the outside interests in the joint venture at the date of sale. We recognized $2 million of net losses in 2001 and will recognize the remaining $16 million of gains in subsequent years, provided certain contingencies in the sales contracts expire. We recorded a pretax charge of $39 million, which was included in corporate expenses in the fourth quarter of 1999, to reflect the settlement transactions. The agreement also provided for the resolution of litigation with respect to four other limited partnerships. On September 28, 2000, the court entered a final order with respect to those partner- ships, and on that same date, we and Host Marriott each paid into escrow approximately $31 million for payment to the plaintiffs in exchange for dismissal of the complaints and full releases. Under the agreement, we acquired, through an unconsolidated joint venture with an affiliate of Host Marriott Corporation (Host Marriott), substantially all of the limited partners’ interests in CBM I and CBM II which own 120 Courtyard by Marriott hotels. We continue to manage the 120 hotels under long-term agreements. The joint venture was financed with equity contributed in equal shares by us and an affiliate of Host Marriott and approximately $200 million in mezzanine debt provided by us. Our total invest- ment in the joint venture, including the mezzanine debt, is approx- imately $300 million. Final court approval of the CBM I and CBM II settlements was granted on October 24, 2000, and became effec- tive on December 8, 2000. In the first quarter of 2000, we entered into an agreement to resolve litigation involving certain limited partnerships formed in the mid- to late 1980s. The agreement was reached with lead counsel to the plaintiffs in the lawsuits, and with the special litigation committee appointed by the general partner of two of the partnerships, Courtyard by Marriott Limited Partnership (CBM I) and Courtyard by Marriott II Limited Partnership (CBM II). The agree- ment was amended in September 2000, to increase the amount that CBM I settlement class members were to receive after deduction of court-awarded attorneys’ fees and expenses and to provide that the defendants, including the Company, would pay a portion of the attorneys’ fees and expenses of the CBM I settlement class. Courtyard Joint Venture PROPERTY AND EQUIPMENT Dispositions ACQUISITIONS AND DISPOSITIONS ExecuStay 2001 2000 ($ in millions) Land $ 505 $ 584 Buildings and leasehold improvements 860 1,074 Furniture and equipment 620 619 Timeshare properties 1,167 914 Construction in progress 337 324 3,489 3,515 Accumulated depreciation and amortization (559) (504) $2,930 $3,011 Marriott International, Inc. 2001 Annual Report 29