Starwood 2012 Annual Report Download - page 182

STARWOOD HOTELS & RESORTS WORLDWIDE, INC.
NOTES TO FINANCIAL STATEMENTS
Past due balances of VOI notes receivable by credit quality indicators are as follows (in millions):
30-59 Days 60-89 Days >90 Days Total Past Total
Past Due Past Due Past Due Due Current Receivables
As of December 31, 2012
Sheraton ............................ $ 4 $ 3 $20 $27 $331 $358
Westin ............................. 3 2 10 15 334 349
Other .............................. — — 7 7 21 28
$ 7 $ 5 $37 $49 $686 $735
As of December 31, 2011
Sheraton ............................ $ 5 $ 3 $26 $34 $321 $355
Westin ............................. 3 2 17 22 345 367
Other .............................. 1 1 4 6 31 37
$ 9 $ 6 $47 $62 $697 $759
Note 12. Deferred Gains
We defer gains realized in connection with the sale of a property for which we continue to manage through a
long-term management agreement and recognize the gains over the initial term of the related agreement. As of
December 31, 2012 and 2011, we had total deferred gains of $1.035 billion and $1.018 billion, respectively,
included in accrued expenses and other liabilities in our consolidated balance sheets. Amortization of deferred
gains is included in management fees, franchise fees and other income in our consolidated statements of income
and totaled approximately $87 million, $87 million and $81 million in 2012, 2011 and 2010, respectively.
Note 13. Restructuring and Other Special Charges (Credits), Net
Restructuring and other special charges (credits), net were $(12) million, $68 million and $(75) million for
the years ended December 31, 2012, 2011 and 2010, respectively. These net charges (credits) are not recorded in
our reportable segment earnings.
As a result of a court ruling during the year ended December 31, 2012, we recorded a favorable adjustment
of $11 million to reverse a portion of a litigation reserve that we recorded in 2011.
During the year ended December 31, 2011, we recorded a charge of $70 million related to an unfavorable
decision in a lawsuit (see Note 25), offset by a credit of $2 million to adjust previously recorded reserves to the
amounts we expected to pay.
During the year ended December 31, 2010, we received cash proceeds of $75 million in connection with the
favorable settlement of a lawsuit. We recorded this settlement, net of the reimbursement of legal costs incurred in
connection with the litigation, as a credit to the restructuring and other special charges (credits) line item.
Additionally, we recorded a credit of $8 million, as a liability associated with an acquisition in 1998 was no
longer deemed necessary (see Note 25).
We had remaining restructuring accruals of $78 million and $89 million as of December 31, 2012 and 2011,
respectively, primarily recorded in accrued expenses.
F-25