Starwood 2011 Annual Report Download - page 154

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STARWOOD HOTELS & RESORTS WORLDWIDE, INC.
NOTES TO FINANCIAL STATEMENTS
service. The amount of expense for matching contributions totaled $15 million in 2011, $13 million in 2010, and
$15 million in 2009. The plan includes as an investment choice, the Company’s publicly traded common stock.
The balances held in the Company’s stock were $67 million and $87 million at December 31, 2011 and 2010,
respectively.
Multi-Employer Pension Plans. Certain employees are covered by union sponsored multi-employer
pension plans pursuant to agreements between the Company and various unions. The Company’s participation in
these plans is outlined in the table below (in millions):
Pension Fund
EIN/ Pension Plan
Number
Pension Protection Act
Zone Status Contributions
2011 2010 2011 2010 2009
New York Hotel Trades Council and Hotel
Association of New York City, Inc.
Pension Fund ...................... 13-1764242/001 Yellow (a) Yellow (b) $4 $4 $5
Other Funds ......................... 5 5 4
Total Contributions ................... $9 $9 $9
(a) As of January 1, 2011
(b) As of January 1, 2010
Eligible employees at the Company’s owned hotels in New York City participate in the New York Hotel
Trades Council and Hotel Association of New York City, Inc. Pension Fund. The Company contributions are
based on a percentage of all union employee wages as dictated by the collective bargaining agreement that
expires on June 30, 2012. The Company’s contributions did not exceed 5% of the total contributions to the
pension fund in 2011, 2010 or 2009. The pension fund has implemented a funding improvement plan and the
Company has not paid a surcharge.
Multi-Employer Health Plans. Certain employees are covered by union sponsored multi-employer health
plans pursuant to agreements between the Company and various unions. The plan benefits can include medical,
dental and life insurance for eligible participants and retirees. The Company contributions to these plans, which
were charged to expense during 2011, 2010 and 2009, was approximately $26 million, $27 million and $29
million, respectively.
Note 20. Leases and Rentals
The Company leases certain equipment for the hotels’ operations under various lease agreements. The leases
extend for varying periods through 2016 and generally are for a fixed amount each month. In addition, several of
the Company’s hotels are subject to leases of land or building facilities from third parties, which extend for
varying periods through 2096 and generally contain fixed and variable components. The variable components of
leases of land or building facilities are primarily based on the operating profit or revenues of the related hotels.
The Company’s minimum future rents at December 31, 2011 payable under non-cancelable operating leases
with third parties are as follows (in millions):
2012 ...................................................................... $ 84
2013 ...................................................................... 89
2014 ...................................................................... 88
2015 ...................................................................... 86
2016 ...................................................................... 84
Thereafter .................................................................. 1,024
F-37