Starwood 2007 Annual Report Download - page 157

The Company’s minimum future rents at December 31, 2007 payable under non-cancelable operating leases
with third parties are as follows (in millions):
2008 .................................................................. $ 82
2009 .................................................................. $ 83
2010 .................................................................. $ 77
2011 .................................................................. $ 72
2012 .................................................................. $ 64
Thereafter .............................................................. $766
Rent expense under non-cancelable operating leases consisted of the following (in millions):
2007 2006 2005
Year Ended December 31,
Minimum rent ............................................. $86 $76 $80
Contingent rent ............................................ 10 11 19
Sublease rent .............................................. (6) (4) (7)
$90 $83 $92
Note 19. Stockholders’ Equity
Share Repurchases. In April 2007, the Board of Directors authorized an additional $1 billion in Share
repurchases under the Company’s existing Corporation Share repurchase authorization (the “Share Repurchase
Authorization”). In November 2007, the Board of Directors of the Company further authorized the repurchase of up
to an additional $1 billion of Corporation Shares under the Share Repurchase Authorization. During the year ended
December 31, 2007, the Company repurchased 29.6 million Shares and Corporation Shares at a total cost of
$1.8 billion. As of December 31, 2007, approximately $593 million remains available under the Share Repurchase
Authorization.
Exchangeable Preferred Shares. During 1998, 6.3 million shares of Class A EPS, 5.5 million shares of
Class B EPS and approximately 800,000 limited partnership units of the SLT Realty Limited Partnership (the
“Realty Partnership”) and SLC Operating Limited Partnership (the “Operating Partnership”) were issued by the
Trust and Corporation in connection with the acquisition of Westin Hotels & Resorts Worldwide, Inc. and certain of
its affiliates.
On March 15, 2006, the Company completed the redemption of the remaining 25,000 outstanding shares of
Class B EPS for approximately $1 million in cash. On April 10, 2006, when the Company consummated the first
phase of the Host Transaction, holders of Class A EPS received from Host $0.503 in cash and 0.6122 shares of Host
common stock. Also in connection with the Host Transaction, the Company redeemed all of the Class A EPS
(approximately 562,000 shares) and Realty Partnership units (approximately 40,000 units) for approximately
$34 million in cash. The Operating Partnership units are convertible into Corporation Shares at the unit holder’s
option, provided that the Company has the option to settle conversion requests in cash or Shares. For the year ended
December 31, 2006, the Company redeemed approximately 926,000 Operating Partnership units for approximately
$56 million in cash, and there were approximately 179,000 of these units outstanding at December 31, 2007 and
2006.
Note 20. Stock-Based Compensation
In 2004, the Company adopted the 2004 Long-Term Incentive Compensation Plan (“2004 LTIP”), which
superseded the 2002 Long Term Incentive Compensation Plan (“2002 LTIP”) and provides for the purchase of
Shares by directors, officers, employees, consultants and advisors, pursuant to equity award grants. Although no
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STARWOOD HOTELS & RESORTS WORLDWIDE, INC.
NOTES TO FINANCIAL STATEMENTS — (Continued)