Starwood 2005 Annual Report Download - page 110

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STARWOOD HOTELS & RESORTS WORLDWIDE, INC.
AND STARWOOD HOTELS & RESORTS
NOTES TO FINANCIAL STATEMENTS Ì (Continued)
ITT Industries. In 1995, the former ITT Corporation, renamed ITT Industries, Inc. (""ITT Indus-
tries''), distributed to its stockholders all of the outstanding shares of common stock of ITT Corporation, then
a wholly owned subsidiary of ITT Industries (the ""Distribution''). In connection with this Distribution, ITT
Corporation, which was then named ITT Destinations, Inc., changed its name to ITT Corporation.
For purposes of governing certain of the ongoing relationships between the Company and ITT Industries
after the Distribution and spin-oÅ of ITT Corporation and to provide for an orderly transition, the Company
and ITT Industries have entered into various agreements including a spin-oÅ agreement, Employee BeneÑts
Services and Liability Agreement, Tax Allocation Agreement and Intellectual Property Transfer and License
Agreements. The Company may be liable to or due reimbursement from ITT Industries relating to the
resolution of certain pre-spin-oÅ matters under these agreements. Based on available information, manage-
ment does not believe that these matters would have a material impact on the consolidated results of
operations, Ñnancial position or cash Öows.
Note 23. Business Segment and Geographical Information
The Company has two operating segments: hotels and vacation ownership and residential. The hotel
segment generally represents a worldwide network of owned, leased and consolidated joint venture hotels and
resorts operated primarily under the Company's proprietary brand names including St. Regis», The Luxury
Collection», Sheraton», Westin», W», Le Mπeridien», and Four Points» by Sheraton as well as hotels and
resorts which are managed or franchised under these brand names in exchange for fees. The vacation
ownership and residential segment includes the development, ownership and operation of vacation ownership
resorts, marketing and selling VOIs, providing Ñnancing to customers who purchase such interests and the sale
of residential units.
The performance of the hotels and vacation ownership and residential segments is evaluated primarily on
operating proÑt before corporate selling, general and administrative expense, interest, gains (losses) on the
sale of real estate, restructuring and other special charges (credits), and income taxes. The Company does not
allocate these items to its segments.
F-47