Starwood 2005 Annual Report Download - page 92

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STARWOOD HOTELS & RESORTS WORLDWIDE, INC.
AND STARWOOD HOTELS & RESORTS
NOTES TO FINANCIAL STATEMENTS Ì (Continued)
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 ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $ Ì $ Ì $Ì $ Ì
Other special credits:
Adjustments from favorable settlement of
litigationÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $(37) $ Ì $Ì $(37)
Total other special credits ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $(37) $ Ì $Ì $(37)
Year Ended December 31, 2003
Restructuring credits:
Adjustments to liability as a result of beneÑt
plan termination ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $ (9) $ Ì $Ì $ (9)
Other special charges (credits):
Proceeds from favorable settlement of litigation $ Ì $(12) $Ì $(12)
Legal defense costsÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ Ì Ì 13 13
Adjustments to receivables previously written
downÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ Ì Ì (1) (1)
Total other special charges (credits) ÏÏÏÏÏÏÏÏÏÏÏ $ Ì $(12) $12 $ Ì
2005 Restructuring and Other Special Charges (Credits). During the year ended December 31, 2005,
the Company recorded a $13 million charge primarily related to severance costs in connection with the
Company's restructuring as a result of its planned disposition of signiÑcant real estate assets. The Company
also recorded $3 million of transition costs associated with the acquisition of the Le Mπeridien brand and
management business in November 2005. These charges were oÅset by the reversal of $3 million of reserves
related to the Company's acquisition of Sheraton Holding Corporation and its subsidiaries (formerly ITT
Corporation) in 1998 as the related obligations no longer exist.
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-29