Starwood 2004 Annual Report Download - page 92

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STARWOOD HOTELS & RESORTS WORLDWIDE, INC.
AND STARWOOD HOTELS & RESORTS
NOTES TO FINANCIAL STATEMENTS Ì (Continued)
Note 9. Restructuring and Other Special Charges (Credits)
The Company had remaining accruals related to restructuring charges of $23 million at December 31,
2004 and $24 million at December 31, 2003, of which $19 million and $20 million is included in other
liabilities in the accompanying December 31, 2004 and 2003 consolidated balance sheets, respectively. The
following tables summarize restructuring and other special charges (credits) activity during the years ended
December 31, 2004, 2003 and 2002:
Noncash Cash Expenditures Total Charge
Credits Receipts Accrued (Credit)
Year Ended December 31, 2004
Restructuring charges (credits):
Adjustments to liability as a result of beneÑt plan
termination ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $ Ì $ Ì $Ì $ Ì
Other special credits:
Adjustments from favorable settlement of litigationÏÏÏÏÏ $(37) $ Ì $Ì $(37)
Total other special credits ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $(37) $ Ì $Ì $(37)
Year Ended December 31, 2003
Restructuring credits:
Adjustments to liability as a result of beneÑt plan
termination ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $ (9) $ Ì $Ì $ (9)
Other special credits:
Proceeds from favorable settlement of litigationÏÏÏÏÏÏÏÏ $ Ì $(12) $Ì $(12)
Legal defense costsÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ Ì Ì 13 13
Adjustments to receivables previously written down ÏÏÏÏ Ì Ì (1) (1)
Total other special credits ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $ Ì $(12) $12 $ Ì
Year Ended December 31, 2002
Restructuring credits ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $ Ì $ (1) $Ì $ (1)
Other special credits:
Adjustments to receivables previously written down ÏÏÏÏ $ Ì $ Ì $(3) $ (3)
Adjustments to e-business investments previously written
downÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ (3) Ì Ì (3)
Total other special credits ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $ (3) $ Ì $(3) $ (6)
2004 Other Special Credits. During the year ended December 31, 2004, the Company reversed a
$37 million special charge previously recorded in 1999 due to the favorable resolution of a litigation matter.
2003 Restructuring and Other Special Charges (Credits). During the year ended December 31, 2003,
the Company received $12 million in a favorable settlement of a litigation matter. This special credit was
oÅset by an increase of $13 million in a reserve for legal defense costs associated with a separate litigation
matter. Additionally, the Company reversed through restructuring credits a $9 million liability that was
originally established in 1997 for the ITT Excess Pension Plan through restructuring charges and is no longer
required as the Company Ñnalized the settlement of its remaining obligations associated with the plan.
F-26