Starwood 2008 Annual Report Download - page 154

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The weighted average asset allocations at December 31, 2008 and 2007 for the Company’s defined benefit
pension and postretirement benefit plans and the Company’s current target asset allocation ranges are as follows:
Target
Allocation 2008 2007
Target
Allocation 2008 2007
Target
Allocation 2008 2007
Percentage of
Plan Assets
Percentage of
Plan Assets
Percentage of
Plan Assets
Pension Benefits Foreign Pension Benefits Postretirement Benefits
Equity securities .............. n/a n/a n/a 34% 32% 45% 79% 42% 63%
Debt securities ............... n/a n/a n/a 66% 65% 48% — 37% 35%
Cash and other ............... n/a n/a n/a — 3% 7% 21% 21% 2%
100% 100% 100% 100% 100% 100%
The investment objective of the foreign pension plans and postretirement benefit plan is to seek long-term
capital appreciation and current income by investing in a diversified portfolio of equity and fixed income securities
with a moderate level of risk. At December 31, 2008, all remaining domestic pension plans are unfunded plans.
The Company expects to contribute approximately $1 million to its domestic pension plans, approximately
$18 million to its foreign pension plans, and approximately $2 million to the postretirement benefit plan in 2009.
The following table represents the Company’s expected pension and postretirement benefit plan payments for the
next five years and the five years thereafter (in millions):
Pension
Benefits
Foreign Pension
Benefits
Postretirement
Benefits
2009 ........................................ $1 $ 7 $2
2010 ........................................ $1 $ 7 $2
2011 ........................................ $1 $ 8 $2
2012 ........................................ $1 $ 8 $2
2013 ........................................ $1 $ 9 $2
2014 — 2018 .................................. $7 $57 $8
Defined Contribution Plans. The Company and its subsidiaries sponsor various defined contribution plans,
including the Starwood Hotels & Resorts Worldwide, Inc. Savings and Retirement Plan, which is a voluntary
defined contribution plan allowing participation by employees on U.S. payroll who meet certain age and service
requirements. Each participant may contribute on a pretax basis between 1% and 50% of his or her compensation to
the plan subject to certain maximum limits. The plan also contains provisions for matching contributions to be made
by the Company, which are based on a portion of a participant’s eligible compensation. The amount of expense for
matching contributions totaled $32 million in 2008, $28 million in 2007 and $25 million in 2006. Included as an
investment choice is the Company’s publicly traded common stock, which had a balance of $30 million and
$62 million at December 31, 2008 and 2007, respectively.
Multi-Employer Pension Plans. Certain employees are covered by union sponsored multi-employer pen-
sion plans. Pursuant to agreements between the Company and various unions, contributions of $9 million in 2008,
$9 million in 2007 and $8 million in 2006 were made by the Company and charged to expense.
F-38
STARWOOD HOTELS & RESORTS WORLDWIDE, INC.
NOTES TO FINANCIAL STATEMENTS — (Continued)