Starwood 2010 Annual Report Download - page 133

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hotels, were recorded in the years ended December 31, 2010, 2009 and 2008, respectively. These assets are reported
in the hotels operating segment.
During 2009 and 2008, as a result of market conditions at the time and the impact on the timeshare industry, the
Company reviewed the fair value of its economic interests in securitized VOI notes receivable and concluded these
interests were impaired. The fair value of the Company’s investment in these retained interests was determined by
estimating the net present value of the expected future cash flows, based on expected default and prepayment rates (See
Note 10.) The Company recorded impairment charges of $22 million and $23 million in the years ended December 31,
2009 and 2008, related to these retained interests. These assets, prior to the adoption of ASU No. 2009-17, were reported
in the vacation ownership and residential operating segment.
During the years ended December 31, 2009 and 2008 the Company recorded losses of $18 million and
$11 million, respectively, primarily related to impairments of hotel management contracts, certain technology-
related fixed assets and an investment in which the Company holds a minority interest.
Note 6. Assets Held for Sale
During the year ended December 31, 2009, the Company entered into purchase and sale agreements for the
sale of one wholly owned hotel for total expected cash consideration of approximately $78 million. The Company
classified this asset and the estimated goodwill to be allocated as assets held for sale, ceased depreciating it and
reclassified the operating results to discontinued operations. The hotel was sold during the second quarter of 2010
(see Note 19).
Note 7. Plant, Property and Equipment
Plant, property and equipment, excluding assets held for sale, consisted of the following (in millions):
2010 2009
December 31,
Land and improvements .......................................... $ 600 $ 597
Buildings and improvements....................................... 3,300 3,222
Furniture, fixtures and equipment ................................... 1,901 1,824
Construction work in process ...................................... 170 180
5,971 5,823
Less accumulated depreciation and amortization ........................ (2,648) (2,473)
$ 3,323 $ 3,350
The above balances include unamortized capitalized computer software costs of $132 million and $136 million
at December 31, 2010 and 2009 respectively. Amortization of capitalized computer software costs was $36 million,
$36 million and $24 million for the years ended December 31, 2010, 2009 and 2008, respectively.
F-17
STARWOOD HOTELS & RESORTS WORLDWIDE, INC.
NOTES TO FINANCIAL STATEMENTS — (Continued)