Starwood 2011 Annual Report Download - page 136
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STARWOOD HOTELS & RESORTS WORLDWIDE, INC.
NOTES TO FINANCIAL STATEMENTS
gain as a result of an acquisition of a controlling interest in a joint venture in which we previously held a
non-controlling interest (see Note 4) and a $4 million gain from the sale of non-hotel assets.
During the year ended December 31, 2009, the Company recorded impairment charges of $41 million
relating to the impairment of six hotels. Also during 2009, 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 resulting in an impairment charge of $22 million. Additionally,
the Company recorded losses of $18 million, primarily related to impairments of hotel management contracts,
certain technology-related fixed assets and an investment in which the Company holds a minority interest.
During the years ended December 31, 2011, 2010 and 2009, the Company reviewed the recoverability of its
carrying values of its owned hotels and determined that certain hotels were impaired, as discussed above. The
fair values of the hotels were estimated by using discounted cash flows, comparative sales for similar assets and
recent letters of intent to sell certain assets. Impairment charges included above totaling $7 million, $2 million
and $41 million, relating to six, one and six hotels, were recorded in the years ended December 31, 2011, 2010
and 2009, respectively. These assets are reported in the hotels operating segment.
Note 6. Plant, Property and Equipment
Plant, property and equipment consisted of the following (in millions):
December 31,
2011 2010
Land and improvements ............................................. $ 614 $ 600
Buildings and improvements ......................................... 3,066 3,300
Furniture, fixtures and equipment ..................................... 1,859 1,901
Construction work in process ......................................... 244 170
5,783 5,971
Less accumulated depreciation and amortization .......................... (2,513) (2,648)
$ 3,270 $ 3,323
The above balances include unamortized capitalized computer software costs of $155 million and $132
million at December 31, 2011 and 2010 respectively. Amortization of capitalized computer software costs was
$32 million, $36 million and $36 million for the years ended December 31, 2011, 2010 and 2009, respectively.
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