Starwood 2012 Annual Report Download - page 194

STARWOOD HOTELS & RESORTS WORLDWIDE, INC.
NOTES TO FINANCIAL STATEMENTS
life insurance for eligible participants and retirees. Our contributions to these plans, which were charged to
expense during 2012, 2011 and 2010, were approximately $24 million, $26 million and $27 million, respectively.
Note 20. Leases and Rentals
We lease certain equipment for the hotels’ operations under various lease agreements. The leases extend for
varying periods through 2017 and generally are for a fixed amount each month. In addition, several of our hotels
are subject to leases of land or building facilities from third parties, which extend for varying periods through
2096 and generally contain fixed and variable components. The variable components of leases of land or building
facilities are primarily based on the operating profit or revenues of the related hotels.
Our minimum future rents at December 31, 2012 payable under non-cancelable operating leases with third
parties are as follows (in millions):
2013 ........................................................................ $ 95
2014 ........................................................................ 94
2015 ........................................................................ 92
2016 ........................................................................ 89
2017 ........................................................................ 78
Thereafter ................................................................... 969
Rent expense under non-cancelable operating leases consisted of the following (in millions):
Year Ended December 31,
2012 2011 2010
Minimum rent ................................................ $102 $108 $91
Contingent rent ............................................... 9 9 6
Sublease rent ................................................. (3) (4) (5)
$108 $113 $92
Note 21. Stockholders’ Equity
Share Repurchases During the year ended December 31, 2012, our Board of Directors authorized a
$250 million increase to the share repurchase program, and we repurchased approximately 6.3 million common
shares at an average price of $50.83 for a total cost of approximately $320 million. As of December 31, 2012,
$180 million remained available under the share repurchase authorization.
Note 22. Stock-Based Compensation
In 2004, we adopted the 2004 Long-Term Incentive Compensation Plan (“2004 LTIP”), which superseded
the 2002 Long-Term Incentive Compensation Plan (“2002 LTIP”) and provides the terms of equity award grants
to directors, officers, employees, consultants and advisors. Although no additional awards will be granted under
the 2002 LTIP, our 1999 Long-Term Incentive Compensation Plan or our 1995 Share Option Plan, the provisions
under each of the previous plans will continue to govern awards that have been granted and remain outstanding
under those plans. The aggregate award pool for non-qualified or incentive stock options, performance shares,
restricted stock and units or any combination of the foregoing which are available to be granted under the 2004
LTIP at December 31, 2012 was approximately 57.3 million.
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