Starwood 2003 Annual Report Download - page 114

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STARWOOD HOTELS & RESORTS WORLDWIDE, INC.
AND STARWOOD HOTELS & RESORTS
NOTES TO FINANCIAL STATEMENTS Ì (Continued)
For purposes of governing certain of the ongoing relationships between the Company and ITT Industries
after the Distribution and spin-oÅ of ITT Corporation and to provide for an orderly transition, the Company
and ITT Industries have entered into various agreements including a spin-oÅ agreement, Employee BeneÑts
Services and Liability Agreement, Tax Allocation Agreement and Intellectual Property Transfer and License
Agreements. The Company may be liable to or due reimbursement from ITT Industries relating to the
resolution of certain pre-spin-oÅ matters under these agreements. Based on available information, manage-
ment does not believe that these matters would have a material impact on the consolidated results of
operations, Ñnancial position or cash Öows.
For discussion of certain other matters, see Note 13. Income Taxes.
Note 22. Business Segment and Geographical Information
The Company has two operating segments: hotels and vacation ownership. The hotel segment represents
a worldwide network of owned, leased and consolidated joint venture hotels and resorts operated primarily
under the Company's proprietary brand names including St. Regis, The Luxury Collection, Sheraton, Westin,
W and Four Points by Sheraton as well as hotels and resorts which are managed or franchised under these
brand names in exchange for fees. The vacation ownership segment includes the development, ownership and
operation of vacation ownership resorts, marketing and selling VOIs and providing Ñnancing to customers who
purchase such interests.
The performance of the hotels and vacation ownership segments is evaluated primarily on operating proÑt
before corporate selling, general and administrative expense, interest, gains on the sale of real estate,
investments, restructuring and other special charges and income taxes. The Company does not allocate these
items to its segments.
F-48