Starwood 2008 Annual Report Download - page 108

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additional $1 billion of Corporation Shares under the Share Repurchase Authorization. During the year ended
December 31, 2008, we repurchased approximately 13.6 million shares at a total cost of approximately $593 mil-
lion. As of December 31, 2008, there was no availability remaining under the Share Repurchase Authorization.
At December 31, 2008, we had outstanding approximately 183 million Corporation Shares and 178,000 SLC
Operating Limited Partnership units.
Off-Balance Sheet Arrangements
Our off-balance sheet arrangements include retained interests in securitizations of $19 million, letters of credit
of $115 million, unconditional purchase obligations of $98 million and surety bonds of $91 million. These items are
more fully discussed earlier in this section and in the Notes to Financial Statements and Item 8 of Part II of this
report.
Item 7A. Quantitative and Qualitative Disclosures about Market Risk.
In limited instances, we seek to reduce earnings and cash flow volatility associated with changes in interest
rates and foreign currency exchange rates by entering into financial arrangements intended to provide a hedge
against a portion of the risks associated with such volatility. We continue to have exposure to such risks to the extent
they are not hedged.
We enter into a derivative financial arrangement to the extent it meets the objectives described above, and we
do not engage in such transactions for trading or speculative purposes.
At year-end 2008, we were party to the following derivative instruments:
• Forward contracts to hedge forecasted transactions for management and franchise fee revenues earned in
foreign currencies. The aggregate dollar equivalent of the notional amounts was approximately $55 million,
and they expire in 2009.
• Forward foreign exchange contracts to manage the foreign currency exposure related to certain intercom-
pany loans not deemed to be permanently invested. The aggregate dollar equivalent of the notional amounts
of the forward contracts was approximately $376 million and they expire in 2009.
42