Starwood 2012 Annual Report Download - page 178

STARWOOD HOTELS & RESORTS WORLDWIDE, INC.
NOTES TO FINANCIAL STATEMENTS
In 2011, we early adopted ASU 2011-08 to consider impairment for our two reporting units at that time,
hotels and vacation ownership. The ASU allows companies to perform a qualitative assessment of goodwill, to
determine if the two-step goodwill impairment test is necessary. In 2011, the internal and external factors
affecting the segments were evaluated, and we concluded the two-step goodwill impairment tests were not
required for either segment; thus, no impairment existed.
Intangible assets consisted of the following (in millions):
December 31,
2012 2011
Trademarks and trade names ............................................ $314 $313
Management and franchise agreements .................................... 456 412
Other ............................................................... 15 16
785 741
Accumulated amortization .............................................. (187) (164)
$ 598 $ 577
The intangible assets related to management and franchise agreements have finite lives, and accordingly, we
recorded amortization expense of $24 million, $29 million, and $33 million, respectively, during the years ended
December 31, 2012, 2011 and 2010. The other intangible assets noted above have indefinite lives.
Amortization expense relating to intangible assets with finite lives for each of the years ended December 31,
is expected to be as follows (in millions):
2013 ......................................................................... $25
2014 ......................................................................... 25
2015 ......................................................................... 25
2016 ......................................................................... 24
2017 ......................................................................... 24
Note 9. Other Assets
Other assets include the following (in millions):
December 31,
2012 2011
VOI notes receivable, net of allowance of $39 and $46 ......................... $ 92 $ 93
Prepaid expenses ....................................................... 158 104
Deposits and other ...................................................... 135 158
Total ................................................................ $385 $355
See Note 11 for discussion relating to VOI notes receivable.
Note 10. Transfers of Financial Assets
We have variable interests in the entities associated with our six outstanding securitization transactions. As
these securitizations consist of similar, homogenous loans, they have been aggregated for disclosure purposes.
We applied the variable interest model and determined we are the primary beneficiary of these VIEs. In making
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