Starwood 2006 Annual Report Download - page 82

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The intangible assets related to management and franchise agreements have finite lives, and accordingly, the
Company recognized amortization expense of $25 million, $19 million and $15 million, respectively, related to
these assets during the years ended December 31, 2006, 2005 and 2004. The other intangible assets noted above
have indefinite lives. Amortization expense relating to intangible assets with finite lives for each of the years ended
December 31 is expected to be as follows (in millions):
2007 . .................................................................. $27
2008 . .................................................................. $27
2009 . .................................................................. $24
2010 . .................................................................. $24
2011 . .................................................................. $23
Note 9. Other Assets
Other assets include notes receivable of $293 million and $297 million, net of allowance for doubtful accounts,
at December 31, 2006 and 2005, respectively. Included in these balances at December 31, 2006 and 2005 are the
following fixed rate notes receivable related to the financing of VOIs (in millions):
2006 2005
December 31,
Gross VOI notes receivable ........................................... $296 $212
Allowance for uncollectible VOI notes receivable ........................... (31) (22)
Net VOI notes receivable ............................................. 265 190
Less current maturities of gross VOI notes receivable ........................ (25) (30)
Current portion of the allowance for uncollectible VOI notes receivable........... 2 3
Long-term portion of net VOI notes receivable ............................. $242 $163
The current maturities of net VOI notes receivable are included in accounts receivable in the Company’s
balance sheets.
The interest rates of the owned VOI notes receivable are as follows:
2006 2005
December 31,
Range of stated interest rates ................................ 0%-18.0% 0% - 17.9%
Weighted average interest rate ............................... 11.9% 12.3%
The maturities of the gross VOI notes receivable are as follows (in millions):
2006 2005
December 31,
Due in 1 year...................................................... $ 25 $ 30
Due in 2 years ..................................................... 22 15
Due in 3 years ..................................................... 24 16
Due in 4 years ..................................................... 26 17
Due in 5 years ..................................................... 28 19
Due beyond 5 years ................................................. 171 115
Total gross VOI notes receivable ....................................... $296 $212
F-21
STARWOOD HOTELS & RESORTS WORLDWIDE, INC.
NOTES TO FINANCIAL STATEMENTS — (Continued)