Starwood 2005 Annual Report Download - page 91

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STARWOOD HOTELS & RESORTS WORLDWIDE, INC.
AND STARWOOD HOTELS & RESORTS
NOTES TO FINANCIAL STATEMENTS Ì (Continued)
As previously discussed in Note 7. Assets and Debt Held for Sale, the Company has included
approximately $533 million of goodwill in assets held for sale. This represents approximately $514 million of
goodwill that the Company expects to allocate to the sale of 38 hotels to Host and approximately $19 million
of goodwill that the Company expects to allocate to the sale of three hotels completed in January 2006.
Note 10. Other Assets
Other assets include notes receivable, net of $297 million and $295 million at December 31, 2005 and
2004, respectively, primarily related to the Ñnancing of VOIs (as discussed in Note 6. Notes Receivable
Securitizations and Sales).
Contractual Obligations. On December 30, 2003, the Company together with Lehman Brothers
Holdings Inc. (""Lehman Brothers''), announced the acquisition of all of the outstanding senior debt
(approximately $1.3 billion), at a discount, of Le Mπeridien Hotels and Resorts Ltd. (""Le Mπeridien''). At
December 31, 2004, the approximate $200 million investment was represented by a high yield junior
participation interest. As part of this investment, the Company entered into an agreement with Lehman
Brothers whereby they would negotiate with the Company on an exclusive basis towards a recapitalization of
Le Mπeridien. In November 2005 the Company acquired the Le Mπeridien brand and the related management
and franchise business for the portfolio of 122 hotels and resorts for approximately $225 million, and the
Company's original investment in the outstanding senior debt of Le Mπeridien, together with accrued interest,
was returned to the Company.
Note 11. Restructuring and Other Special Charges (Credits)
The Company had remaining accruals related to restructuring charges of $28 million at December 31,
2005 and $23 million at December 31, 2004, of which $6 million and $19 million is included in other liabilities
in the accompanying December 31, 2005 and 2004 consolidated balance sheets, respectively. The following
tables summarize restructuring and other special charges (credits) activity during the years ended Decem-
ber 31, 2005, 2004 and 2003:
Noncash Cash Expenditures Total Charge
Credits Receipts Accrued (Credit)
Year Ended December 31, 2005
Restructuring charges:
Severance costs associated with a corporate
restructuring ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $ Ì $ Ì $13 $ 13
Le Mπeridien transition costs ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ Ì Ì 3 3
Total restructuring charges ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $ Ì $ Ì $16 $ 16
Other special credits:
Adjustments to ITT merger related reservesÏÏÏ $ (3) $ Ì $Ì $ (3)
Total other special credits ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $ (3) $ Ì $Ì $ (3)
F-28