Starwood 2004 Annual Report Download - page 102

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STARWOOD HOTELS & RESORTS WORLDWIDE, INC.
AND STARWOOD HOTELS & RESORTS
NOTES TO FINANCIAL STATEMENTS Ì (Continued)
The weighted average asset allocations at December 31, 2004 and 2003 for the Company's domestic
deÑned beneÑt pension and postretirement beneÑt plans and the Company's current target asset allocation
ranges are as follows:
Pension BeneÑts Foreign Pension BeneÑts Postretirement BeneÑts
Percentage of Percentage of Percentage of
Plan Assets Plan Assets Plan Assets
Target Target Target
Allocation 2004 2003 Allocation 2004 2003 Allocation 2004 2003
Equity securities ÏÏÏÏÏÏÏÏÏ N/A N/A 0% 62% 66% 67% 60% 63% 57%
Debt securities ÏÏÏÏÏÏÏÏÏÏÏ N/A N/A 79% 37% 29% 26% 40% 35% 42%
Cash and other ÏÏÏÏÏÏÏÏÏÏ N/A N/A 21% 1% 5% 7% 0% 2% 1%
100% 100% 100% 100% 100% 100% 100%
The investment objective of the foreign pension plans and postretirement beneÑt plan is to seek long-term
capital appreciation and current income by investing in a diversiÑed portfolio of equity and Ñxed income
securities with a moderate level of risk. At December 31, 2004, all remaining domestic pension plans are
unfunded plans.
The Company expects to contribute approximately $1 million to its domestic pension plans, approxi-
mately $5 million to its foreign pension plans, and approximately $3 million to the postretirement beneÑt plan
in 2005. The following table represents the Company's expected pension and postretirement beneÑt plan
payments for the next Ñve years and the Ñve years thereafter (in millions):
Pension Foreign Pension Postretirement
BeneÑts BeneÑts BeneÑts
2005 ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $1 $ 2 $ 3
2006 ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $1 $ 2 $ 2
2007 ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $1 $ 2 $ 3
2008 ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $1 $ 2 $ 2
2009 ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $1 $ 2 $ 2
2010-2014 ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $6 $10 $11
DeÑned Contribution Plans. The Company and its subsidiaries sponsor various deÑned contribution
plans, including the Starwood Hotels & Resorts Worldwide, Inc. Savings and Retirement Plan, which is a
voluntary deÑned contribution plan allowing participation by employees on U.S. payroll who meet certain age
and service requirements. Each participant may contribute on a pretax basis between 1% and 18% of his or her
compensation to the plan subject to certain maximum limits. The plan also contains provisions for matching
contributions to be made by the Company, which are based on a portion of a participant's eligible
compensation. The amount of expense for matching contributions totaled $20 million in 2004, $18 million in
2003 and $17 million in 2002.
Multi-Employer Pension Plans. Certain employees are covered by union sponsored multi-employer
pension plans. Pursuant to agreements between the Company and various unions, contributions of $10 million
in 2004 and $8 million in 2003 and 2002 were made by the Company and charged to expense.
Note 15. Leases and Rentals
The Corporation leases certain equipment for the hotels' operations under various lease agreements. The
leases extend for varying periods through 2012 and generally are for a Ñxed amount each month. In addition,
several of the Corporation's hotels are subject to leases of land or building facilities from third parties, which
F-36