Sales from Distribution Services exclude sales (made at market terms and conditions) to other business segments of $157 million, $176 million and $166 million in 2001, 2000 and 1999, respectively. Segment operating expenses include selling, general and administrative expenses directly related to the operations of the businesses, aggregating $698 million in 2001, $682 million in 2000 and $592 million in 1999. The consolidated financial statements include the following related to international operations: sales of $477 million in 2001, $455 million in 2000 and $392 million in 1999; operating profit before corporate expenses and interest of $42 million in 2001, $73 million in 2000 and $66 million in 1999; and fixed assets of $211 million in 2001, $241 million in 2000 and  $137 million in 1999. terminations and noncancelable lease costs in excess of esti- mated sublease income. In addition, we recorded a $5 million charge for lease terminations resulting from cancellations of leased units by our ExecuStay corporate apartment business, primarily in downtown New York City. We incur certain costs associated with the development of properties, including legal costs, the cost of land and planning and design costs. We capitalize these costs as incurred and they become part of the cost basis of the property once it is devel- oped. As a result of the dramatic downturn in the economy in the aftermath of the September 11, 2001 attacks, we decided to cancel development projects no longer deemed viable. As a result, we expensed $28 million of previously capitalized costs. In addition, management has begun to actively engage in efforts to sell 25 Village Oaks senior living communities. These communities offer companion living and are significantly dif- ferent from our other senior living brands. As a result of the plan to exit this line of business, we have reclassified the assets associated with the 25 properties as assets held for sale and accordingly recorded those assets at their estimated fair value, resulting in an impairment charge of $60 million. The Company has experienced a significant decline in demand for hotel rooms in the aftermath of the September 11, 2001 attacks on New York and Washington and the subsequent dra- matic downturn in the economy. This decline has resulted in reduced management and franchise fees, cancellation of develop- ment projects, and anticipated losses under guarantees and loans. We have responded by implementing certain companywide cost- saving measures, although we do not expect any significant changes to the scope of our operations. As a result of our restruc- turing plan, we incurred restructuring costs of $124 million, including (1) $16 million in severance costs; (2) $20 million, pri- marily associated with loss on a sublease of excess space arising from the reduction in personnel; (3) $28 million related to the write-off of capitalized costs relating to development projects no longer deemed viable; and (4) $60 million related to the write- down of the Village Oaks brand of companion-style senior living communities, which are now classified as held for sale, to their estimated fair value. Detailed information related to the restruc- turing costs and other charges, which were recorded in the fourth quarter of 2001 as a result of the economic downturn and the unfavorable lodging environment, is provided below. We issue guarantees to lenders and other third parties in con- nection with financing transactions and other obligations. We also advance loans to some owners of properties that we man- age. As a result of the downturn in the economy, certain hotels have experienced significant declines in profitability and the owners have not been able to meet debt service obligations to the Company or in some cases, to third-party lending institu- tions. As a result, based upon cash flow projections, we expect to fund under certain guarantees, which are not deemed recov- erable, and we expect that several of the loans made by us will not be repaid according to their original terms. Due to the expected guarantee fundings deemed nonrecoverable and the expected loan losses, we recorded charges of $85 million in the fourth quarter of 2001. In the fourth quarter of 2001, we reserved $17 million of accounts receivable following an analysis of these accounts which we deemed uncollectible, generally as a result of the unfavorable hotel operating environment. The Company recorded a charge related to the impairment of an investment in a technology-related joint venture ($22 mil- lion), losses on the anticipated sale of three lodging properties ($13 million), write-offs of investments in management con- tracts and other assets ($8 million), and the write-off of capi- talized software costs arising from a decision to change a technology platform ($2 million). A summary of the restructuring costs and other charges recorded in the fourth quarter of 2001 is detailed as follows: Our restructuring plan resulted in the reduction of approxi- mately 1,700 employees (the majority of which were termi- nated by December 28, 2001) across the Company. We recorded a workforce reduction charge of $16 million related primarily to severance and fringe benefits. The charge does not reflect amounts billed out separately to owners for property-level sev- erance costs. In addition, we delayed filling vacant positions and reduced staff hours. As a result of the workforce reduction and delay in filling vacant positions, we consolidated excess corporate facilities. We recorded a restructuring charge of approximately $15 mil- lion for excess corporate facilities, primarily related to lease Asset Impairments and Other Charges Accounts Receivable – Bad Debts Facilities Exit Costs Restructuring Costs Severance 38 Marriott International, Inc. 2001 Annual Report Other Charges Reserves for Guarantees and Loan Losses RESTRUCTURING COSTS AND OTHER CHARGES Development Cancellations and Elimination of Product Line