Starwood 2012 Annual Report Download - page 147

Our New Facility is used to fund general corporate cash needs. As of December 31, 2012, no amounts were
drawn under the New Facility with up to $1.75 billion available for borrowing. The New Facility allows for
multi-currency borrowing and, if drawn upon, would have an applicable margin, inclusive of the commitment
fee, of 1.25% plus the applicable currency LIBOR rate. Our ability to borrow under the New Facility is subject to
compliance with the terms and conditions under the New Facility, including certain leverage covenants. Based
upon the current level of operations, management believes that our cash flow from operations, together with our
significant cash balances, available borrowings under the New Facility, and our capacity for additional
borrowings will be adequate to meet anticipated requirements for scheduled maturities (primarily our
$294 million of Senior Notes due in 2015), dividends, working capital, capital expenditures, marketing and
advertising program expenditures, other discretionary investments, interest and scheduled principal payments and
share repurchases for the foreseeable future. However, there can be no assurance that we will be able to refinance
our indebtedness as it becomes due and, if refinanced, on favorable terms. Approximately $145 million, included
in our cash balance above, is deemed to be permanently invested in foreign countries and we would be subject to
income taxes if we repatriated these amounts. In addition, there can be no assurance that in our continuing
business we will generate cash flow at or above historical levels, that currently anticipated results will be
achieved or that we will be able to complete dispositions on commercially reasonable terms or at all.
If we are unable to generate sufficient cash flow from operations in the future to service our debt, we may be
required to sell additional assets at lower than preferred amounts, reduce capital expenditures, refinance all or a
portion of our existing debt or obtain additional financing at unfavorable rates. Our ability to make scheduled
principal payments, to pay interest on or to refinance our indebtedness depends on our future performance and
financial results, which, to a certain extent, are subject to general conditions in or affecting the hotel and vacation
ownership industries and to general economic, political, financial, competitive, legislative and regulatory factors
beyond our control.
We had the following contractual obligations(1) outstanding as of December 31, 2012 (in millions):
Total
Due in Less
Than 1 Year
Due in
1-3 Years
Due in
3-5 Years
Due After
5 Years
Debt (2) ........................... $1,274 $ 2 $297 $ 38 $ 937
Interest payable .................... 462 74 155 113 120
Capital lease obligations ............. 1 — 1 — —
Operating lease obligation ............ 1,410 95 185 167 963
Unconditional purchase obligations (3) . . . 143 76 62 5 —
Other long-term obligations ........... 16 1 3 4 8
Total contractual obligations .......... $3,306 $248 $703 $327 $2,028
(1) This table excludes unrecognized tax benefits that would require cash outlays for $226 million, the timing of
which is uncertain. Refer to Note 14 of the consolidated financial statements for additional discussion on this
matter.
(2) Excludes securitized debt of $533 million, all of which is non-recourse.
(3) Includes commitments that may be reimbursed or satisfied by our managed and franchised properties.
We had the following commercial commitments outstanding as of December 31, 2012 (in millions):
Total
Less Than
1 Year 1-3 Years 3-5 Years
After 5
Years
Standby letters of credit ........................... $117 $94 $19 $— $4
A dividend of $1.25 per share was paid in December 2012 to shareholders of record as of December 14,
2012.
A dividend of $0.50 per share was paid in December 2011 to shareholders of record as of December 15,
2011.
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