Starwood 2012 Annual Report Download - page 188

STARWOOD HOTELS & RESORTS WORLDWIDE, INC.
NOTES TO FINANCIAL STATEMENTS
two interest rate swaps related to the 7.875% Senior Notes, which had notional amounts totaling $200 million (see
Note 23). As a result of the early redemption of the 7.875% Senior Notes, we recorded a net charge of
approximately $16 million in in the loss on early extinguishment of debt, net, line item in our statements of income,
representing the redemption premiums, swap settlements and other related redemption costs.
During the year ended December 31, 2011, we sold our interest in a consolidated joint venture which
resulted in the buyer assuming approximately $57 million of our mortgage debt.
During the year ended December 31, 2011, we entered into two interest rate swaps with a total notional
amount of $100 million, where we pay floating and receive fixed interest rates. These two interest rates swaps
were terminated in 2012 (see Note 23).
Note 16. Securitized Vacation Ownership Debt
Long-term and short-term securitized vacation ownership debt consisted of the following (in millions):
December 31,
2012 2011
2005 securitization, interest rates ranging from 5.25% to 6.29%, maturing 2013 .... $ 22 $ 37
2006 securitization, interest rates ranging from 5.28% to 5.85%, maturing 2018 .... 18 27
2009 securitization, interest rate at 5.81%, maturing 2015 ..................... 63 92
2010 securitization, interest rates ranging from 3.65% to 4.75%, maturing 2021 .... 138 190
2011 securitization, interest rates ranging from 3.67% to 4.82%, maturing 2026 .... 137 186
2012 securitization, interest rates ranging from 2.00% to 2.76%, maturing 2024 .... 155 —
533 532
Less current maturities ................................................. (150) (130)
Long-term debt ....................................................... $383 $402
During the year ended December 31, 2012, we completed a securitization of approximately $174 million of
vacation ownership notes receivable (see Note 10).
During the years ended December 31, 2012 and 2011, interest expense associated with securitized vacation
ownership debt was $22 million.
Note 17. Other Liabilities
Other liabilities consisted of the following (in millions):
December 31,
2012 2011
Deferred gains on asset sales ........................................... $ 944 $ 933
SPG point liability (a) ................................................. 733 724
Deferred revenue including VOI and residential sales ....................... 33 17
Benefit plan liabilities ................................................ 78 74
Insurance reserves ................................................... 45 47
Other ............................................................. 123 176
$1,956 $1,971
(a) Includes the actuarially determined liability related to the SPG program and the liability associated with the
American Express transaction discussed below.
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