Starwood 2009 Annual Report Download - page 157

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cost. The actuarial loss included in accumulated other comprehensive (loss) income and expected to be recognized
in net periodic pension cost during the year ended December 31, 2010 is $1 million ($1 million, net of tax).
Defined Benefit and Postretirement Benefit Plans. The Company and its subsidiaries sponsor or previously
sponsored numerous funded and unfunded domestic and international pension plans. All defined benefit plans
covering U.S. employees are frozen. Certain plans covering non-U.S. employees remain active.
The Company also sponsors the Starwood Hotels & Resorts Worldwide, Inc. Retiree Welfare Program. This
plan provides health care and life insurance benefits for certain eligible retired employees. The Company has
prefunded a portion of the health care and life insurance obligations through trust funds where such prefunding can
be accomplished on a tax effective basis. The Company also funds this program on a pay-as-you-go basis.
The following table sets forth the projected benefit obligation, fair value of plan assets, the funded status and
the accumulated benefit obligation of the Company’s defined benefit pension and postretirement benefit plans at
December 31, 2009 and 2008 (in millions):
2009 2008 2009 2008 2009 2008
Domestic
Pension Benefits Foreign Pension Benefits
Postretirement
Benefits
Change in Projected Benefit Obligation
Benefit obligation at beginning of year ...... $17 $17 $199 $206 $ 18 $ 20
Service cost ........................ — — 5 4 — —
Interest cost ........................ 1 1 13 11 1 1
Actuarial loss (gain) .................. — — 11 20 3 —
Settlements and curtailments ............ — — (50) (7) — —
Effect of foreign exchange rates ......... — — 8 (27) — —
Plan participant contributions ........... — — — — 1 —
Benefits paid ....................... (1) (1) (6) (6) (4) (3)
Plan amendments .................... — — (2) (2) — —
Benefit obligation at end of year ........... $17 $17 $178 $199 $ 19 $ 18
Change in Plan Assets
Fair value of plan assets at beginning of
year .............................. $— $— $132 $185 $ 2 $ 5
Actual return on plan assets, net of
expenses ......................... — — 28 (35) — —
Employer contribution ................ 1 1 21 20 2 3
Plan participant contributions ........... — — — — 1 —
Effect of foreign exchange rates ......... — — 9 (26) — —
Settlements and curtailments ............ — — (25) (6) — —
Asset transfer ....................... — — — — — (3)
Benefits paid ....................... (1) (1) (6) (6) (4) (3)
Fair value of plan assets at end of year ...... $— $— $159 $132 $ 1 $ 2
Unfunded status ....................... $(17) $(17) $ (19) $ (67) $(18) $(16)
Accumulated benefit obligation ............ $17 $17 $176 $174 n/a n/a
Plans with Accumulated Benefit Obligations
in Excess of Plan Assets
Projected benefit obligation ............. $17 $17 $117 $132 $ 19 $ 18
Accumulated benefit obligation .......... $17 $17 $115 $108 n/a n/a
Fair value of plan assets ............... $— $— $ 87 $ 57 $ 1 $ 2
F-34
STARWOOD HOTELS & RESORTS WORLDWIDE, INC.
NOTES TO FINANCIAL STATEMENTS — (Continued)