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At December 28, 2001, 54.1 million shares were reserved under the Comprehensive Plan (including 40.3 million shares under the Stock Option Program and 1.9 million shares of the 

Supplemental Executive Stock Option awards) and 2.1 million shares were reserved under the Stock Purchase Plan. 

Stock options issued under the Stock Option Program out- standing at December 28, 2001, were as follows: 

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## F AIR VALUE OF FINANCIAL INSTRUMENTS 

We assume that the fair values of current assets and current liabilities are equal to their reported carrying amounts. The fair values of noncurrent financial assets and liabilities are shown below. 

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We value notes and other receivables based on the expected future cash flows discounted at risk adjusted rates. We determine valuations for long-term debt and other long- term liabilities based on quoted market prices or expected future payments discounted at risk adjusted rates. 

## CONTINGENT LIABILITIES 

We issue guarantees to lenders and other third parties in con- nection with financing transactions and other obligations. These guarantees were limited, in the aggregate, to $574 mil- lion at December 28, 2001, including guarantees involving major customers. As discussed below (see “Restructuring Costs and Other Charges”), we expect to fund $33 million of guarantee obligations in 2002. In addition, we have made an uncapped physical completion guaranty relating to one hotel property with minimal expected funding. As of December 28, 2001, we had extended approximately $669 million of loan commitments to owners of lodging properties and senior living communities under which we expect to fund approximately $187 million by January 3, 2003, and $334 million in total. Letters of credit outstanding on our behalf at December 28, 

2001 totaled $77 million, the majority of which related to our self-insurance programs. At December 28, 2001, we had repurchase obligations of $46 million related to notes receiv- able from timeshare interval purchasers, which have been sold with limited recourse. 

New World Development and another affiliate of Dr. Henry Cheng Kar-Shun have severally indemnified us for guarantees by us of leases with minimum annual payments of approximately $57 million. 

On March 30, 2001, Green Isle Partners, Ltd., S.E. (Green Isle) filed a 63-page complaint in Federal district court in Delaware against The Ritz-Carlton Hotel Company, L.L.C., The Ritz-Carlton Hotel Company of Puerto Rico, Inc. (Ritz- Carlton Puerto Rico), Marriott International, Inc., Marriott Distribution Services, Inc., Marriott International Capital Corp. and Avendra L.L.C. ( Green Isle Partners, Ltd. S.E., v. The Ritz-Carlton Hotel Company, L.L.C., et al, civil action no. 01- 202). Ritz-Carlton Puerto Rico manages The Ritz-Carlton San Juan Hotel, Spa and Casino located in San Juan, Puerto Rico, under an operating agreement with Green Isle dated December 15, 1995 (the Operating Agreement). 

The claim asserts 11 causes of action: three Racketeer Influenced and Corrupt Organizations Act (RICO) claims, together with claims based on the Robinson-Patman Act, breach of contract, breach of fiduciary duty, aiding and abet- ting a breach of fiduciary duty, breach of implied duties of good faith and fair dealing, common law fraud and inten- tional misrepresentation, negligent misrepresentation, and fiduciary accounting. The complaint does not request termi- nation of the Operating Agreement. 

The claim includes allegations of: (i) national, non-com- petitive contracts and attendant kick-back schemes; (ii) con- cealing transactions with affiliates; (iii) false entries in the books and manipulation of accounts payable and receivable; (iv) excessive compensation schemes and fraudulent expense accounts; (v) charges of prohibited overhead costs to the 

