Starwood 2012 Annual Report Download - page 184

STARWOOD HOTELS & RESORTS WORLDWIDE, INC.
NOTES TO FINANCIAL STATEMENTS
The tax effect of the temporary differences and carryforward items that give rise to deferred taxes were as
follows (in millions):
December 31,
2012 2011
Plant, property and equipment ......................................... $ (43) $ (23)
Intangibles ......................................................... (70) (11)
Inventories ......................................................... 58 118
Deferred gains ...................................................... 366 350
Investments ........................................................ 208 133
Receivables (net of reserves) .......................................... 47 9
Accrued expenses and other reserves .................................... 182 201
Employee benefits ................................................... 81 61
Net operating loss, capital loss and tax credit carryforwards .................. 223 257
Other ............................................................. 37 3
1,089 1,098
Less valuation allowance ............................................. (251) (234)
Deferred income taxes ................................................ $ 838 $ 864
At December 31, 2012, we had federal net operating losses, which have varying expiration dates extending
through 2030, of approximately $9 million. We expect to realize substantially all of the tax benefit associated
with these attributes.
At December 31, 2012, we had state net operating losses, which have varying expiration dates extending
through 2032, of approximately $1.4 billion. We also had state tax credit carryforwards of $22 million which are
indefinite or will fully expire by 2026. We have established a valuation allowance against the majority of these
attributes as it is unlikely that the tax benefit of these attributes will be realized prior to expiration.
At December 31, 2012, we had foreign net operating losses, capital losses and other attributes, which are
indefinite or have varying expiration dates extending through 2031, of approximately $250 million, $19 million
and $14 million, respectively. We also had tax credit carryforwards of approximately $23 million in foreign
jurisdictions. The tax credit carryforwards available in foreign jurisdictions are indefinite or will fully expire by
2031. We have established a valuation allowance against the majority of these attributes as it is unlikely that the
tax benefit of these attributes will be realized prior to expiration.
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