Starwood 2004 Annual Report Download - page 112

STARWOOD HOTELS & RESORTS WORLDWIDE, INC.
AND STARWOOD HOTELS & RESORTS
NOTES TO FINANCIAL STATEMENTS Ì (Continued)
Dina Diagonale held various positions with the Company from January 2001 through June 2004. In 2004,
Ms. Diagonale earned a total of $241,409, which includes (i) approximately $77,500 upon the exercise of
in-the-money options and restricted stock that vested or became exercisable in the ordinary course,
(ii) Ms. Diagonale's 2003 bonus which was paid in March 2004, and (iii) base compensation and severance.
In addition, Ms. Diagonale was awarded 2,500 options to purchase Company shares in 2004, which terminated
prior to vesting upon her ceasing to be employed by the Company. Subsequent to her departure from the
Company, Ms. Diagonale married Kenneth S. Siegel, Executive Vice President and General Counsel of the
Company.
Note 20. Commitments and Contingencies
The Company had the following contractual obligations outstanding as of December 31, 2004 (in
millions):
Due in Less Due in Due in Due After
Total Than 1 Year 1-3 Years 4-5 Years 5 Years
Unconditional purchase obligations(a) ÏÏÏÏÏÏÏÏÏÏÏÏ $161 $50 $65 $26 $20
Other long-term obligations ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 2 2 Ì Ì Ì
Total contractual obligations ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $163 $52 $65 $26 $20
(a) Included in these balances are commitments that may be satisÑed by the Company's managed and franchised properties.
The Company had the following commercial commitments outstanding as of December 31, 2004 (in
millions):
Amount of Commitment Expiration Per Period
Less Than After
Total 1 Year 1-3 Years 4-5 Years 5 Years
Standby letters of creditÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $125 $125 $Ì $Ì $Ì
Hotel loan guarantees(1)(2)ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 67 Ì Ì 37 30
Other commercial commitments ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ Ì Ì Ì Ì Ì
Total commercial commitments ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $192 $125 $Ì $37 $30
(1) Excludes fair value of guarantees which are reÖected in the Company's consolidated balance sheet.
(2) Excludes a debt service guarantee since no substantial debt has been drawn.
Guaranteed Loans and Commitments. In limited cases, the Company has made loans to owners of or
partners in hotel or resort ventures for which the Company has a management or franchise agreement. Loans
outstanding under this program totaled $160 million at December 31, 2004. The Company evaluates these
loans for impairment, and at December 31, 2004, believes these loans are collectible. Unfunded loan
commitments, excluding the Westin Boston, Seaport Hotel discussed below, aggregating $46 million were
outstanding at December 31, 2004, of which $7 million are expected to be funded in 2005 and $30 million are
expected to be funded in total. These loans typically are secured by pledges of project ownership interests
and/or mortgages on the projects. The Company also has $78 million of equity and other potential
contributions associated with managed or joint venture properties, $34 million of which is expected to be
funded in 2005.
The Company participates in programs with unaÇliated lenders in which the Company may partially
guarantee loans made to facilitate third-party ownership of hotels that the Company manages or franchises. As
of December 31, 2004, the Company was a guarantor for a loan which could reach a maximum of $30 million
related to the St. Regis in Monarch Beach, California, which opened in mid-2001. The Company does not
anticipate any funding under the loan guarantee in 2005, as the project is well capitalized. Furthermore, since
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