Starwood 2006 Annual Report Download - page 89

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on the $2.4 billion capital loss generated for federal tax purposes. The remaining benefit consisted of an adjustment
to deferred income taxes for the increased tax basis of certain retained assets, partially offset by current tax
liabilities generated in the transaction.
During 2005, the Company was notified by ITT Industries that a refund of tax and interest had been approved
by the IRS for payment to ITT Industries related to its 1993-1995 tax returns. In connection with its acquisition of
Sheraton Holding, the Company is party to a tax sharing agreement between ITT Industries, Hartford Insurance and
Sheraton Holding as a result of their 1995 split of ITT Industries into these companies and is entitled to one-third of
this refund. As a result of this notification, the Company recorded an $8 million tax benefit during 2005.
During 2004, the IRS completed its audits of the Company’s 1999 and 2000 tax returns and issued its final
audit adjustments to the Company. As a result of the completion of these audits and the receipt of the final audit
adjustments, the Company recorded a $5 million tax benefit. In addition, the Company recognized a $10 million tax
benefit related to the reversal of previously accrued income taxes after an evaluation of the applicable exposures and
the expiration of the related statutes of limitations.
Note 14. Debt
Long-term debt and short-term borrowings consisted of the following (in millions):
2006 2005
December 31,
Senior Credit Facility:
Revolving Credit Facility, interest rates ranging from 4.74% to 6.84% at
December 31, 2006, maturing 2011 .............................. $ 435 $ —
Senior Credit Facility (fully repaid during 2006):
Term loan, interest at LIBOR + 1.25% (5.64% at December 31, 2005) ...... — 450
Revolving Credit Facility, interest at Canadian Bankers’ Acceptance rate +
1.25% (4.57% at December 31, 2005)............................. — 11
Senior Notes interest rates of 7.375% and 7.875%, maturing 2007 and 2012 .... 1,481 1,494
Sheraton Holding public debt, interest at 7.375%, maturing in 2015 .......... 449 597
Convertible Debt ................................................ — 360
Mortgages and other, interest rates ranging from 4.25% to 8.60%, various
maturities ................................................... 267 1,233
2,632 4,145
Less current maturities ........................................... (805) (1,219)
Less long-term debt held for sale .................................... — (77)
Long-term debt ................................................. $1,827 $ 2,849
Aggregate debt maturities for each of the years ended December 31 are as follows (in millions):
2007 ................................................................. $ 805
2008 ................................................................. 5
2009 ................................................................. 40
2010 ................................................................. 6
2011 ................................................................. 441
Thereafter ............................................................. 1,335
$2,632
F-28
STARWOOD HOTELS & RESORTS WORLDWIDE, INC.
NOTES TO FINANCIAL STATEMENTS — (Continued)