Starwood 2008 Annual Report Download - page 150

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Note 16. Other Liabilities
Other liabilities consisted of the following (in millions):
2008 2007
December 31,
Deferred gains on asset sales ....................................... $1,069 $1,133
SPG point liability ............................................... 430 354
Deferred income including VOI and residential sales ...................... 55 34
Benefit plan liabilities............................................. 106 62
Insurance reserves ............................................... 50 68
Other . . ....................................................... 133 150
$1,843 $1,801
Note 17. Discontinued Operations
Summary financial information for discontinued operations is as follows (in millions):
2008 2007 2006
Year Ended December 31,
Income Statement Data
Gain (loss) on disposition, net of tax .............................. $75 $(1) $(2)
For the year ended December 31, 2008, the gain on dispositions includes a $124 million gain ($129 million pre
tax) on sale of three hotels which were sold unencumbered by management or franchise contracts. Discontinued
operations for the year ended December 31, 2008 also includes a $49 million tax charge as a result of a 2008
administrative tax ruling for an unrelated taxpayer that impacts the tax liability associated with the disposition of
one of the Company’s businesses several years ago.
For the year ended December 31, 2007, the loss on disposition represents a $1 million tax assessment
associated with the disposition of the Company’s former gaming business in 1999.
For the year ended December 31, 2006, the loss on disposition represents a $2 million tax assessment
associated with the disposition of the Company’s former gaming business in 1999.
Note 18. Employee Benefit Plans
On December 31, 2006, the Company adopted the recognition and disclosure provisions of SFAS No. 158.
SFAS No. 158 required the Company to recognize the funded status (i.e., the difference between the fair value of
plan assets and the projected benefit obligations) of its pension plans in the December 31, 2006 consolidated
balance sheet, with a corresponding adjustment to accumulated other comprehensive income, net of tax. The
incremental effects of adopting the provisions of SFAS No. 158 on the Company’s consolidated balance sheet at
December 31, 2006 increased net liabilities by $6 million, with a corresponding decrease to accumulated other
comprehensive income. The adoption of SFAS No. 158 had no effect on the Company’s consolidated statement of
income for the year ended December 31, 2006, or for any prior period presented, and it will not effect the
Company’s operating results in future periods.
The net actuarial loss recognized in accumulated other comprehensive income for the year ended December 31,
2008 was $60 million (net of tax). The amortization of actuarial gain/loss, a component of accumulated other
comprehensive income, for the year ended December 31, 2008 was $2 million.
Included in accumulated other comprehensive income at December 31, 2008 are unrecognized net actuarial
losses of $98 million ($93 million, net of tax) and net prior service credit of $2 million ($2 million, net of tax) that
F-34
STARWOOD HOTELS & RESORTS WORLDWIDE, INC.
NOTES TO FINANCIAL STATEMENTS — (Continued)