Starwood 2006 Annual Report Download - page 81

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Note 7. Plant, Property and Equipment
Plant, property and equipment, excluding assets held for sale, consisted of the following (in millions):
2006 2005
December 31,
Land and improvements .......................................... $ 760 $ 936
Buildings and improvements....................................... 3,603 3,682
Furniture, fixtures and equipment ................................... 1,566 1,449
Construction work in process ...................................... 153 143
6,082 6,210
Less accumulated depreciation and amortization ........................ (2,251) (2,041)
$ 3,831 $ 4,169
Note 8. Goodwill and Intangible Assets
The changes in the carrying amount of goodwill for the year ended December 31, 2006 are as follows (in
millions):
Hotel
Segment
Vacation
Ownership
Segment Total
Balance at January 1, 2006 ............................... $1,548 $241 $1,789
Adjustments related to the Le Méridien Acquisition
(a)
........... (71) — (71)
Cumulative translation adjustment .......................... 28 — 28
Asset dispositions ...................................... (35) — (35)
Balance at December 31, 2006 ............................ $1,470 $241 $1,711
(a) Represents purchase price adjustments related to the Le Meridien Acquisition previously discussed in Note 4. In 2006, the Company
received the final third-party valuation of the intangible assets acquired and adjusted their value and the related deferred tax asset
accordingly.
Intangible assets consisted of the following (in millions):
2006 2005
December 31,
Trademarks and trade names .......................................... $315 $317
Management and franchise agreements ................................... 291 220
Other ............................................................ 81 61
687 598
Accumulated amortization ............................................ (96) (72)
$591 $526
F-20
STARWOOD HOTELS & RESORTS WORLDWIDE, INC.
NOTES TO FINANCIAL STATEMENTS — (Continued)