Starwood 2009 Annual Report Download - page 112

that we will be able to refinance our indebtedness as it becomes due and, if refinanced, on favorable terms. In
addition, there can be no assurance that in our continuing business we will generate cash flow at or above historical
levels, that currently anticipated results will be achieved or that we will be able to complete dispositions on
commercially reasonable terms or at all.
If we are unable to generate sufficient cash flow from operations in the future to service our debt, we may be
required to sell additional assets at lower than preferred amounts, reduce capital expenditures, refinance all or a
portion of our existing debt or obtain additional financing at unfavorable rates. Our ability to make scheduled
principal payments, to pay interest on or to refinance our indebtedness depends on our future performance and
financial results, which, to a certain extent, are subject to general conditions in or affecting the hotel and vacation
ownership industries and to general economic, political, financial, competitive, legislative and regulatory factors
beyond our control.
We had the following contractual obligations
(1)
outstanding as of December 31, 2009 (in millions):
Total
Due in Less
Than 1 Year
Due in
1-3 Years
Due in
3-5 Years
Due After
5 Years
Debt ............................ $2,957 $ 5 $ 774 $1,038 $1,140
Interest payable .................... 1,094 207 390 261 236
Capital lease obligations
(2)
............ 3 — 1 — 2
Operating lease obligations ............ 1,049 87 155 131 676
Unconditional purchase obligations
(3)
.... 308 86 136 80 6
Other long-term obligations ........... 4 1 3 — —
Total contractual obligations ........... $5,415 $386 $1,459 $1,510 $2,060
(1) The table below excludes unrecognized tax benefits that would require cash outlays for $499 million, the
timing of which is uncertain. Refer to Note 14 of the consolidated financial statements for additional discussion
on this matter. In addition, the table excludes amounts related to the construction of our St. Regis Bal Harbour
project that has a total project cost of $735 million, of which $353 million has been paid through December 31,
2009.
(2) Excludes sublease income of $3 million.
(3) Included in these balances are commitments that may be reimbursed or satisfied by our managed and franchised
properties.
We had the following commercial commitments outstanding as of December 31, 2009 (in millions):
Total
Less Than
1 Year 1-3 Years 3-5 Years
After
5 Years
Amount of Commitment Expiration Per Period
Standby letters of credit .................. $168 $165 $— $— $3
A dividend of $0.20 per share was paid in January 2010 to shareholders of record as of December 31, 2009.
A dividend of $0.90 per share was paid in January 2009 to shareholders of record as of December 31, 2008.
Off-Balance Sheet Arrangements
Our off-balance sheet arrangements include residual interests of $81 million, which are comprised of
$25 million of retained interests and $56 million of loans effectively retained in connection with the securitization
of vacation ownership receivables, letters of credit of $168 million, unconditional purchase obligations of
$308 million and surety bonds of $21 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.
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