Starwood 2010 Annual Report Download - page 142

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discounted using a rate commensurate with the inherent risk of the project. Under the market approach, fair value
was determined with the comparable sales of similar assets and appraisals.
The Company had remaining restructuring accruals of $29 million as of December 31, 2010, which are
primarily long-term in nature and recorded in other liabilities. The activity in the restructuring and other special
charges account for the year ended December 31, 2010 included payments of $3 million primarily related to the
remaining severance accruals and a restructuring credit of $2 million associated with the reversal of previous
restructuring accruals no longer deemed necessary.
Note 15. Income Taxes
Income tax data from continuing operations of the Company is as follows (in millions):
2010 2009 2008
Year Ended December 31,
Pretax income
U.S. ..................................................... $ 85 $ (76) $315
Foreign ................................................... 250 (220) 6
$335 $(296) $321
Provision (benefit) for income tax
Current:
U.S. federal .............................................. $(61) $ (84) $ (15)
State and local ............................................ 18 12 32
Foreign ................................................. 43 38 48
— (34) 65
Deferred:
U.S. federal .............................................. 22 (117) 28
State and local ............................................ (7) (18) (23)
Foreign ................................................. 12 (124) 2
27 (259) 7
$ 27 $(293) $ 72
No provision has been made for U.S. taxes payable on undistributed foreign earnings amounting to approx-
imately $2.3 billion as of December 31, 2010 since these amounts are permanently reinvested.
F-26
STARWOOD HOTELS & RESORTS WORLDWIDE, INC.
NOTES TO FINANCIAL STATEMENTS — (Continued)