Starwood 2008 Annual Report Download - page 162

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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-
off matters under these agreements. As discussed in Note 1, as part of the Host Transaction, the Company sold the
shares of Sheraton Holding to Host. In connection with this transaction, the Company entered into an indemni-
fication agreement with Host for certain obligations including those associated with the Distribution. Based on
available information, management does not believe that these matters would have a material impact on the
Company’s consolidated results of operations, financial position or cash flows.
Note 24. Business Segment and Geographical Information
The Company has two operating segments: hotels and vacation ownership and residential. The hotel segment
generally 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», Le Méridien», Four Points»by Sheraton, Aloft»and Element»as well as hotels and
resorts which are managed or franchised under these brand names in exchange for fees. The vacation ownership and
residential segment includes the development, ownership and operation of vacation ownership resorts, marketing
and selling VOIs, providing financing to customers who purchase such interests, licensing fees from branded
condominiums and residences and the sale of residential units.
The performance of the hotels and vacation ownership and residential segments is evaluated primarily on
operating profit before corporate selling, general and administrative expense, interest expense, net of interest
income, losses on asset dispositions and impairments, restructuring and other special charges and income tax
benefit (expense). The Company does not allocate these items to its segments.
F-46
STARWOOD HOTELS & RESORTS WORLDWIDE, INC.
NOTES TO FINANCIAL STATEMENTS — (Continued)