Starwood 2009 Annual Report Download - page 156

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repay the remaining liability and, if the Company does not repay such liability, the Company is required to pledge
certain receivables as collateral for the remaining balance of the liability.
Note 17. Discontinued Operations
Summary financial information for discontinued operations is as follows (in millions):
2009 2008 2007
Year Ended December 31,
Income Statement Data
Gain (loss) on disposition, net of tax .............................. $76 $75 $(1)
Income (loss) from operations, net of tax ........................... (2) 5 11
For the year ended December 31, 2009, the $76 million (net of tax) gain on dispositions includes the gains from
the sale of the Company’s Bliss spa business, other non-core assets and three hotels. The operations from the Bliss
spa business, and the revenues and expenses from two hotels which are in the process of being sold, are included in
discontinued operations, resulting in a loss of $2 million, net of tax.
The assets sold in 2009 and the two hotels recorded in assets held for sale at December 31, 2009 were
reclassified in the December 31, 2008 balance sheet as assets held for sale in order to segregate the discontinued
operations assets from continuing operations assets. The impact of the current assets and liabilities related to the
discontinued operations were not reclassified as the change was inconsequential.
Previously
Reported
As
Restated Change
Goodwill and intangible assets, net.......................... $2,235 $2,161 $ (74)
Plant, property and equipment, net .......................... 3,599 3,347 (252)
Assets held for sale ..................................... 10 336 326
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 partially offset by
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. Additionally,
$5 million ($9 million pretax) of 2008 results from operations relating to Bliss and the two owned hotels that were in
the process of being sold at December 31, 2009, were reclassified to discontinued operations for the year ended
December 31, 2008.
For the year ended December 31, 2007, the income from discontinued operations represents $11 million
($17 million pretax) of 2007 results from operations relating to Bliss and the two hotels that were in the process of
being sold at December 31, 2009 and that were reclassified to discontinued operations. The loss on disposition includes a
$1 million tax assessment associated with the disposition of the Company’s former gaming business in 1999.
Note 18. Employee Benefit Plans
During the year ended December 31, 2009, the Company recorded net actuarial gain and gains from
settlements and curtailments of $10 million (net of tax) and $23 million (net of tax) respectively. These gains
were recorded in other comprehensive income. The amortization of actuarial loss, a component of accumulated
other comprehensive income, for the year ended December 31, 2009 was $5 million (net of tax).
Included in accumulated other comprehensive (loss) income at December 31, 2009 are unrecognized net
actuarial losses of $63 million ($53 million, net of tax) that have not yet been recognized in net periodic pension
F-33
STARWOOD HOTELS & RESORTS WORLDWIDE, INC.
NOTES TO FINANCIAL STATEMENTS — (Continued)