Starwood 2012 Annual Report Download - page 190

STARWOOD HOTELS & RESORTS WORLDWIDE, INC.
NOTES TO FINANCIAL STATEMENTS
cost. The actuarial loss included in accumulated other comprehensive (loss) income that is expected to be
recognized in net periodic pension cost during the year ended December 31, 2013 is $3 million ($2 million, net of
tax).
Defined Benefit and Postretirement Benefit Plans. We sponsor or previously sponsored numerous
funded and unfunded domestic and international pension plans. All defined benefit plans covering U.S.
employees are frozen. Certain plans covering non-U.S. employees remain active.
We also sponsor the Starwood Hotels & Resorts Worldwide, Inc. Retiree Welfare Program. This plan
provides health care and life insurance benefits for certain eligible retired employees. We have prefunded a
portion of the life insurance obligations through trust funds where such prefunding can be accomplished on a tax
effective basis. We also fund this program on a pay-as-you-go basis.
The following table sets forth the benefit obligation, fair value of plan assets, the funded status and the
accumulated benefit obligation of our defined benefit pension and postretirement benefit plans at December 31
(in millions):
Domestic
Pension Benefits
Foreign
Pension Benefits
Postretirement
Benefits
2012 2011 2012 2011 2012 2011
Change in Benefit Obligation
Benefit obligation at beginning of year ......................... $20 $19 $206 $183 $ 20 $ 20
Service cost ............................................ — — — — — —
Interest cost ............................................ 1 1 10 10 1 1
Actuarial loss ........................................... 3 1 19 18 — 1
Effect of foreign exchange rates ............................ — — 4 (1) — —
Plan participant contributions .............................. — — — — 1 1
Benefits paid ........................................... (1) (1) (7) (5) (2) (3)
Other ................................................. — — — 1 — —
Benefit obligation at end of year .............................. $23 $20 $232 $206 $ 20 $ 20
Change in Plan Assets
Fair value of plan assets at beginning of year .................... $— $— $190 $176 $ — $ 1
Actual return on plan assets, net of expenses .................. — — 19 12 — —
Employer contribution .................................... 1 1 11 8 1 1
Plan participant contributions .............................. — — — — 1 1
Effect of foreign exchange rates ............................ — — 4 (1) — —
Benefits paid ........................................... (1) (1) (7) (5) (2) (3)
Fair value of plan assets at end of year ......................... $— $— $217 $190 $ — $ —
Unfunded status ........................................... $(23) $(20) $ (14) $ (16) $(20) $(20)
Accumulated benefit obligation ............................... $23 $20 $229 $205 n/a n/a
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