Starwood Hotel & Resorts Worldwide 10-Q/A 30 Oct 09 2009 Q3 Quarterly report (amended) Financial data

Consolidated Balance Sheets

Consolidated Balance Sheets (USD $)
In Millions	Sep. 30, 2009	Dec. 31, 2008
ASSETS
Cash and cash equivalents	$113	$389
Restricted cash	35	96
Accounts receivable, net of allowance for doubtful accounts of $60 and $49	466	552
Inventories	1,048	986
Prepaid expenses and other	136	143
Total current assets	1,798	2,166
Investments	335	372
Plant, property and equipment, net	3,475	3,599
Assets held for sale	82	10
Goodwill and intangible assets, net	2,190	2,235
Deferred tax assets	753	639
Other assets	641	682
Total assets	9,274	9,703
LIABILITIES AND STOCKHOLDERS' EQUITY
Short-term borrowings and current maturities of long-term debt	5	506
Accounts payable	130	171
Accrued expenses	1,164	1,274
Accrued salaries, wages and benefits	310	346
Accrued taxes and other	360	391
Total current liabilities	1,969	2,688
Long-term debt	3,357	3,502
Deferred income taxes	29	26
Other liabilities	1,977	1,843
Total liabilities	7,332	8,059
Stockholders' equity:
Common Stock; $.01 par value;authorized 1,000,000,000 shares; outstanding 186,854,626 and 182,827,483 shares at September 30, 2009 and December 31,2008, respectively	2	2
Additional paid-in capital	528	493
Accumulated other comprehensive loss	(307)	(391)
Retained earnings	1,698	1,517
Total Starwood stockholders' equity	1,921	1,621
Noncontrolling interest	21	23
Total equity	1,942	1,644
Total liabilities and stockholders' equity	$9,274	$9,703

Consolidated Balance Sheets [Pa

Consolidated Balance Sheets [Parenthetical] (USD $)
In Millions, except Share data, unless otherwise specified	Sep. 30, 2009	Dec. 31, 2008
104550 - Statement - Consolidated Balance Sheets [Parenthetical]
Allowance for Doubtful Accounts Receivable, Current	$60	$49
Common stock par value	0.01	0.01
Common Stock, authorized	1,000,000,000	1,000,000,000
Common Stock, outstanding	186,854,626	182,827,483

Consolidated Statements of Inco

Consolidated Statements of Income (USD $)
In Millions, except Per Share data	3 Months Ended Sep. 30, 2009	3 Months Ended Sep. 30, 2008	9 Months Ended Sep. 30, 2009	9 Months Ended Sep. 30, 2008
Revenues
Owned, leased and consolidated joint venture hotels	$396	$575	$1,176	$1,755
Vacation ownership and residential sales and services (includes loss of $2 in the nine months ended September 30, 2009 relating to note sales)	126	226	387	613
Management fees, franchise fees and other income	181	218	533	642
Other revenues from managed and franchised properties	515	516	1,459	1,564
Total Revenues	1,218	1,535	3,555	4,574
Costs and Expenses
Owned, leased and consolidated joint venture hotels	330	437	993	1,329
Vacation ownership and residential	102	155	306	472
Selling, general, administrative and other	102	113	291	381
Restructuring and other special charges (credits), net	2	22	24	32
Depreciation	71	73	213	216
Amortization	11	10	25	26
Other expenses from managed and franchised properties	515	516	1,459	1,564
Total Costs and Expenses	1,133	1,326	3,311	4,020
Operating income	85	209	244	554
Equity (losses) earnings and gains and (losses) from unconsolidated ventures, net	(3)	3	(5)	14
Interest expense, net of interest income of $0, $0, $2 and $3	(60)	(48)	(156)	(150)
(Loss) gain on asset dispositions and impairments, net	(27)	(12)	(66)	(12)
(Loss) income from continuing operations before taxes	(5)	152	17	406
Income tax benefit (expense)	46	(38)	160	(106)
Income from continuing operations	41	114	177	300
Discontinued operations:
Gain (loss) on dispositions, net of tax benefit (expense) of $(1), $0, $1, and $(49)	(1)	0	1	(49)
Net income	40	114	178	251
Net loss (income) attributable to noncontrolling interests	0	(1)	2	(1)
Net income attributable to Starwood	40	113	180	250
Earnings (Loss) Per Share - Basic
Continuing operations	0.22	0.63	0.99	1.64
Discontinued operations	$0	$0	0.01	-0.27
Net income	0.22	0.63	$1	1.37
Earnings (Loss) Per Share - Diluted
Continuing operations	0.22	0.62	0.98	1.6
Discontinued operations	$0	$0	0.01	-0.27
Net income	0.22	0.62	0.99	1.33
Amounts attributable to Starwood's Common Shareholders
Income from continuing operations	41	113	179	299
Discontinued operations	(1)	0	1	(49)
Net income	$40	$113	$180	$250
Weighted average number of shares	180	180	180	182
Weighted average number of shares assuming dilution	185	183	183	186

Consolidated Statements of Inc

Consolidated Statements of Income [Parenthetical] (USD $)
In Millions	3 Months Ended Sep. 30, 2009	3 Months Ended Sep. 30, 2008	9 Months Ended Sep. 30, 2009	9 Months Ended Sep. 30, 2008
Consolidated Statements of Income [Parenthetical]
Interest income	$0	$0	$2	$3
Tax benefit (expense), discontinued ops	(1)	0	1	(49)
Note sale loss	$0	$0	$2	$0

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income (USD $)
In Millions	3 Months Ended Sep. 30, 2009	3 Months Ended Sep. 30, 2008	9 Months Ended Sep. 30, 2009	9 Months Ended Sep. 30, 2008
Net income	$40	$114	$178	$251
Other comprehensive income (loss), net of taxes:
Foreign currency translation adjustments	53	(122)	75	(71)
Pension liability adjustments	2	0	15	(6)
Change in fair value of derivatives	(4)	8	(6)	5
Change in fair value of investments	0	(1)	1	2
Total other comprehensive income (loss), net of taxes	51	(115)	85	(70)
Comprehensive income (loss)	91	(1)	263	181
Comprehensive (income) loss attributable to noncontrolling interests	(1)	(1)	1	(1)
Comprehensive income (loss) attributable to Starwood	$90	($2)	$264	$180

Consolidated Condensed Statemen

Consolidated Condensed Statements of Cash Flows (USD $)
In Millions	9 Months Ended Sep. 30, 2009	9 Months Ended Sep. 30, 2008
Operating Activities
Net income	$178	$251
Adjustments to net income:
Discontinued operations,(gain) loss on dispositions, net	(1)	49
Depreciation and amortization	238	242
Amortization of deferred gains	(61)	(63)
Non-cash portion of restructuring and other special charges (credits), net	1	5
(Gain) loss on asset dispositions and impairments, net	66	12
Stock-based compensation expense	39	56
Excess stock based compensation	0	(15)
Distributions in excess of equity earnings	28	16
(Gain) loss on the sale of VOI notes receivable	(1)	(3)
Non-cash portion of income tax (benefit) expense	(128)	31
Other non-cash adjustments to net income	57	24
Decrease (increase) in restricted cash	58	3
Other changes in working capital	(97)	(79)
VOI notes receivable activity, net	36	(122)
Accrued and deferred income taxes and other	(66)	63
Cash (used for) from operating activities	347	470
Investing Activities
Purchases of plant, property and equipment	(144)	(337)
Proceeds from asset sales, net of transaction costs	98	14
(Issuance) collection of notes receivable, net	(1)	2
Proceeds from investments, net	25	24
Other, net	(14)	(16)
Cash (used for) from investing activities	(36)	(313)
Financing Activities
Revolving credit facility and short-term borrowings (repayments), net	(56)	(501)
Long-term debt issued	482	977
Long-term debt repaid	(1,080)	(3)
Dividends paid	(165)	(172)
Proceeds from employee stock option exercises	1	120
Excess stock based compensation	0	15
Share repurchases	0	(593)
Other, net	227	(26)
Cash (used for) from financing activities	(591)	(183)
Exchange rate effect on cash and cash equivalents	4	(6)
(Decrease) increase in cash and cash equivalents	(276)	(32)
Cash and cash equivalents beginning of period	389	151
Cash and cash equivalents end of period	113	119
Supplemental Disclosures of Cash Flow Information
Cash paid (received) during the period for interest	108	116
Cash paid (received) during the period for income taxes, net of refunds	($9)	$90

Basis of Presentation

Basis of Presentation
	9 Months Ended Sep. 30, 2009 USD / shares
Basis of Presentation
Basis of Presentation [Text Block]	Note 1. Basis of Presentation The accompanying consolidated financial statements represent the consolidated financial position and consolidated results of operations of Starwood Hotels Resorts Worldwide, Inc. and its subsidiaries (the Company or Starwood). The consolidated financial statements include the accounts of the Company and all of its controlled subsidiaries and partnerships. In consolidating, all material intercompany transactions are eliminated. We have evaluated all subsequent events through October30, 2009, the date the consolidated financial statements were filed. Starwood is one of the worlds largest hotel and leisure companies. The Companys principal business is hotels and leisure, which is comprised of a worldwide hospitality network of approximately 980 full-service hotels, vacation ownership resorts and residential developments primarily serving two markets: luxury and upscale. The principal operations of Starwood Vacation Ownership, Inc. (SVO) include the acquisition, development and operation of vacation ownership resorts; marketing and selling vacation ownership interests (VOIs) in the resorts; and providing financing to customers who purchase such interests.

Recently Issued Accounting Stan

Recently Issued Accounting Standards
	9 Months Ended Sep. 30, 2009 USD / shares
Recently Issued Accounting Standards
Recently Issued Accounting Standards [Text Block]	Note 2. Recently Issued Accounting Standards Adopted Accounting Standards In August2009, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2009-05, which supplements the guidance included in the FASB Accounting Standards Codification (Codification), Accounting Standards Codification (ASC) 820, Fair Value Measurements. This ASU clarifies how an entity should measure the fair value of liabilities and that the restrictions on the transfer of a liability should not be included in its fair value measurement. The effective date of this ASU is the first reporting period after August26, 2009. The Company adopted this topic on September30, 2009 and it had no effect on the Companys consolidated financial statements. In June2009, the FASB issued Statement of Financial Accounting Standards (SFAS) No.168, The FASB Accounting Standards Codification and the Hierarchy of Generally Accepted Accounting Principles a Replacement of FASB Statement No.162 (SFAS No.168), included in the Codification as ASC 105, Generally Accepted Accounting Principles. This topic is the source of authoritative accounting principles recognized by the FASB to be applied by non-governmental entities in the preparation of financial statements in accordance with generally accepted accounting principles. This topic is effective for interim and annual reporting periods ending after September15, 2009. The Company adopted this topic on September30, 2009 and it had no effect on the Companys consolidated financial statements. In April2009, the FASB issued FASB Staff Position (FSP) Issue No.Financial Accounting Standard (FAS) No.157-4 Determining Fair Value When the Volume and Level of Activity for the Asset or Liability Have Significantly Decreased and Identifying Transactions that are not Orderly (FSP FAS No.157-4), included in the Codification as ASC 820-10-65-4. This topic provides additional guidance for estimating fair value and is effective in reporting periods ending after June15, 2009. On June30, 2009, the Company adopted this topic, which did not have a material impact on its consolidated financial statements. In April2009, the FASB issued FSP No.FAS No.107-1 and Accounting Principles Board (APB) No.28-1 Interim Disclosures about Fair Value of Financial Instruments (FSP FAS No.107-1 and APB No 28-1), included in the Codification as ASC 825-10-65-1. This topic requires disclosures about the fair value of financial instruments for annual and interim reporting periods of publicly traded companies and is effective in reporting periods ending after June15, 2009. On June30, 2009, the Company adopted this topic, which did not have a material impact on its consolidated financial statements. In April2009, the FASB issued FSP Issue No.FAS No.115-2 and FAS No.124-2 Recognition and Presentation of Other-Than-Temporary Impairments (FSP FAS No.115-2 and 124-2), included in the Codification as ASC 320-10-65-1. This topic amends the other-than-temporary impairment guidance for debt securities to make the guidance more operational and to improve the disclosure of other-than-temporary impairments on debt and equity securities in the financial s

Earnings Per Share

Earnings Per Share
	9 Months Ended Sep. 30, 2009 USD / shares
Earnings Per Share
Earnings Per Share [Text Block]	Note 3. Earnings Per Share Basic and diluted earnings per share are calculated using income from continuing operations attributable to Starwoods common shareholders (i.e. excluding amounts attributable to non-controlling interests). The following is a reconciliation of basic earnings per share to diluted earnings per share for income from continuing operations (in millions, except per Share data): Three Months Ended September 30, 2009 2008 Earnings Shares Per Share Earnings Shares Per Share Basic earnings from continuing operations $ 41 180 $ 0.22 $ 113 180 $ 0.63 Effect of dilutive securities: Employee stock options and restricted stock awards 5 3 Diluted earnings from continuing operations $ 41 185 $ 0.22 $ 113 183 $ 0.62 Nine Months Ended September 30, 2009 2008 Earnings Shares Per Share Earnings Shares Per Share Basic earnings from continuing operations $ 179 180 $ 0.99 $ 299 182 $ 1.64 Effect of dilutive securities: Employee stock options and restricted stock awards 3 4 Diluted earnings from continuing operations $ 179 183 $ 0.98 $ 299 186 $ 1.60 Approximately 7,755,000 and 7,719,000 shares for the three months ended September30, 2009 and 2008 and 9,699,000 and 5,728,000 shares for the nine months ended September30, 2009 and 2008, respectively, were excluded from the computation of diluted shares, as their impact would have been anti-dilutive.

Asset Dispositions and Impairme

Asset Dispositions and Impairments
	9 Months Ended Sep. 30, 2009 USD / shares
Asset Dispositions and Impairments [Abstract]
Asset Dispositions and Impairments [Text Block]	Note 4. Asset Dispositions and Impairments During the third quarter of 2009, the Company sold a wholly-owned hotel for cash proceeds of approximately $90million. This sale was subject to a long-term management contract, and the Company recorded a deferred gain of $8million in connection with the sale. Also during the quarter, the Company sold another wholly-owned hotel for cash proceeds of approximately $6million. The Company recorded a loss of approximately $3million on this sale. Additionally, the Company recorded a $13million impairment of an investment in a hotel management contract expected to be cancelled in the near term, a $6million impairment of the Companys retained economic interests in securitized loans (see Note 7), and a $3million impairment of a property which is no longer in operation. During the second quarter of 2009, the Company sold a wholly-owned hotel for cash proceeds of approximately $4million. The Company recorded a loss of approximately $3million on the sale. Also during the second quarter of 2009, the Company terminated the lease of a hotel prior to its original term. As a result, the Company wrote down its leasehold improvements to fair value, resulting in an impairment charge of $10million. During the first quarter of 2009, the Company sold a wholly-owned hotel in exchange for a long-term agreement to manage the hotel. The Company recorded a loss of approximately $5million on the sale. During the third quarter of 2008, the Company recorded losses of $16million primarily related to the impairment of two separate investments in which the Company held minority interests, offset, in part, by a gain of approximately $4million associated with the sale of one wholly-owned hotel for $15million in cash.

Assets Held for Sale

Assets Held for Sale
	9 Months Ended Sep. 30, 2009 USD / shares
Assets Held for Sale
Assets Held for Sale [Text Block]	Note 5. Assets Held for Sale During the third quarter of 2009, the Company entered into purchase and sale agreements for the sale of certain non-core assets for total expected cash consideration of approximately $125 million. The Company received non-refundable deposits from the prospective buyers in these two separate transactions during the quarter. The Company classified these assets and the estimated goodwill to be allocated as assets held for sale and ceased depreciating them. During the first quarter of 2008, the Company entered into a purchase and sale agreement for the sale of a hotel for total consideration of $10million. The Company received a non-refundable deposit from the prospective buyer during the first quarter of 2008. The Company recorded an impairment charge of approximately $1million in the first quarter of 2008 related to this hotel. In December2008, the Company and prospective buyer agreed to extend the closing period for up to 12months and the prospective buyer paid the Company an incremental non-refundable deposit of approximately $2million. During the second quarter of 2009, the agreement was terminated, and as a result, this hotel was reclassified as held for use.

Other Assets

Other Assets
	9 Months Ended Sep. 30, 2009 USD / shares
Other Assets [Abstract]
Other Assets [Text Block]	Note 6. Other Assets Other assets include the following (in millions): September 30, December 31, 2009 2008 VOI notes receivable, net $ 356 $ 444 Other notes receivable, net 36 32 Prepaid taxes 127 130 Deposits and other 122 76 $ 641 $ 682

Notes Receivable Securitization

Notes Receivable Securitizations and Sales
	9 Months Ended Sep. 30, 2009 USD / shares
Notes Receivable Securitizations and Sales [Abstract]
Notes Receivable Securitizations and Sales [Text Block]	Note 7. Notes Receivable Securitizations and Sales From time to time, the Company securitizes, without recourse, its fixed rate VOI notes receivable. To accomplish these securitizations, the Company transfers a pool of VOI notes receivable to third-party special purpose entities (together with the special purpose entities in the next sentence, the SPEs) and the SPEs transfer the VOI notes receivable to qualifying special purpose entities (QSPEs). The Company continues to service the securitized VOI notes receivable pursuant to servicing agreements negotiated at arms-length based on market conditions; accordingly, the Company has not recognized any servicing assets or liabilities. All of the Companys VOI notes receivable securitizations to date have qualified to be, and have been, accounted for as sales. In order to be accounted for as a sale, the transferor must surrender control of the financial assets and receive consideration other than beneficial interests in the transferred asset. With respect to those transactions still outstanding at September30, 2009, the Company retains economic interests (the Retained Interests) in securitized VOI notes receivables through SPE ownership of QSPE beneficial interests. The Retained Interests, which are comprised of subordinated interests and interest only strips in the related VOI notes receivable, provide credit enhancement to the third-party purchasers of the related QSPE beneficial interests. Retained Interests cash flows are limited to the cash available from the related VOI notes receivable, after servicing and other related fees, absorbing 100% of any credit losses on the related VOI notes receivable and QSPE fixed rate interest expense. With respect to those transactions still outstanding at September30, 2009, the Retained Interests are classified and accounted for as available-for-sale securities. Securities are classified as available for sale if the Company does not have the intent and ability to hold these securities to maturity or these securities were not bought with the intent to be sold in the near term. These securities are reported at fair value, with credit losses recorded in the statement of income and other unrealized gains and losses reported in stockholders equity. The Companys securitization agreements provide the Company with the option, subject to certain limitations, to repurchase or replace defaulted VOI notes receivable at their outstanding principal amounts. Such activity totaled $8million and $21million during the three and nine months ended September30, 2009, respectively, and $6million and $17million during the three and nine months ended September30, 2008, respectively. The Company has been able to resell the VOIs underlying the VOI notes repurchased or replaced under these provisions without incurring significant losses. The Companys replacement of the defaulted VOI notes receivable under the securitization agreements with new VOI notes receivable resulted in net gains of approximately $0 million and $2million during the three and nine months ended September30, 2009, respectively, and $1million and $3million during the three and nine months ended September3

Fair Value

Fair Value
	9 Months Ended Sep. 30, 2009 USD / shares
Fair Value
Fair Value [Text Block]	Note 8. Fair Value The following table represents the Companys fair value hierarchy for its financial assets and liabilities measured at fair value on a recurring basis as of September30, 2009 (in millions): Level 1 Level 2 Level 3 Total Assets: Interest rate swaps $ $ 8 $ $ 8 Retained Interests 7 7 $ $ 8 $ 7 $ 15 Liabilities: Forward contracts $ $ 1 $ $ 1 The forward contracts are over the counter contracts that do not trade on a public exchange. The fair values of the contracts are based on inputs such as foreign currency spot rates and forward points that are readily available on public markets, and as such, are classified as Level 2. The Company considered both its credit risk, as well as its counterparties credit risk in determining fair value and no adjustment was made as it was deemed insignificant based on the short duration of the contracts and the Companys rate of short-term debt. The interest rate swaps are valued using an income approach. Expected future cash flows are converted to a present value amount based on market expectations of the yield curve on floating interest rates, which is readily available on public markets. The Company estimates the fair value of its Retained Interests using a discounted cash flow model with unobservable inputs, which is considered Level 3. See Note 7 for the assumptions used to calculate the estimated fair value and sensitivity analysis based on changes in assumptions. The following table presents a reconciliation of the Companys Retained Interests measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the three and nine months ended September30, 2009 (in millions): Balance at June30, 2009 $ 10 Total losses (realized/unrealized) Included in earnings (6 ) Included in other comprehensive income 1 Purchases, issuances, and settlements 2 Transfers in and/or out of Level 3 Balance at September30, 2009 $ 7 Balance at December31, 2008 $ 19 Total losses (realized/unrealized) Included in earnings (19 ) Included in other comprehensive income 1 Purchases, issuances, and settlements 6 Transfers in and/or out of Level 3 Balance at September30, 2009 $ 7

Debt

Debt
	9 Months Ended Sep. 30, 2009 USD / shares
Debt
Debt [Text Block]	Note 9. Debt Long-term debt and short-term borrowings consisted of the following (in millions): September 30, December 31, 2009 2008 Senior Credit Facilities: Revolving Credit Facility, interest rate of 3.302% at September30, 2009, maturing 2011 $ 159 $ 213 Term loans, interest rate of 3.313% at September30, 2009, maturing 2011 300 1,375 Senior Notes, interest at 7.875%, maturing 2012 802 799 Senior Notes, interest at 6.250%, maturing 2013 604 601 Senior Notes, interest at 7.875%, maturing 2014 484 Senior Notes, interest at 7.375%, maturing 2015 449 449 Senior Notes, interest at 6.750%, maturing 2018 400 400 Mortgages and other, interest rates ranging from 5.800% to 8.560%, various maturities 164 171 3,362 4,008 Less current maturities (5 ) (506 ) Long-term debt $ 3,357 $ 3,502 On April27, 2009, the Company amended its revolving credit and term loan facilities (collectively with prior amendments the Amended Credit Facilities) with the consent of the lenders thereunder. The Amended Credit Facilities enhance the Companys financial flexibility by increasing the Companys maximum Consolidated Leverage Ratio (as defined in the Amended Credit Facilities) from 4.50x to 5.50x. Additionally, the definition of Consolidated EBITDA used in the Amended Credit Facilities has been modified to exclude certain cash severance expenses from Consolidated EBITDA. In connection with the amendment, the Company repaid $500million of its term loan that was due June2009 by drawing down on its revolver. In connection with the amendment, the Company agreed to increase the pricing on the outstanding Amended Credit Facilities based upon the Companys Consolidated Leverage Ratio, the Companys unsecured debt rating and the type of loan borrowed. The margin increases range from 2.00% to 3.50% for term loans maintained as Eurodollar Loans, 1.75% to 3.00% for revolving loans maintained as Euro Rate Loans, and 0.00% to 1.50% for Base Rate and Canadian Prime Rate Loans. The applicable margin for the Facility Fee ranges from 0.25% to 0.50%. The amendment further modifies the Amended Credit Facilities by (i.) restricting the Companys ability to pay dividends and repurchase stock depending on the Companys free cash flow and Consolidated Leverage Ratio and (ii.) decreasing the Companys permitted lien basket from 10% of Net Tangible Assets (as defined in the Amended Credit Facilities) to 5% of Net Tangible Assets. An amendment fee of 50 basis points was also paid to all consenting lenders who approved the Amended Credit Facilities, with no amendment fee being paid on the repaid portion of the term loan. On April30, 2009, the Company launched and priced a public offering of $500million of senior notes with a coupon rate of 7.875% (the Notes) due October15, 2014, issued at a discount price of 96.285%. The Company received net proceeds of approximately $475million on the settlement date of May7, 2009. The proceeds were used to reduce the outstand

Deferred Gains

Deferred Gains
	9 Months Ended Sep. 30, 2009 USD / shares
Deferred Gains
Deferred Gains [Text Block]	Note 10. Deferred Gains The Company defers gains realized in connection with the sale of a property that the Company continues to manage through a long-term management agreement and recognizes the gains over the initial term of the related agreement. As of September30, 2009 and December31, 2008, the Company had total deferred gains of $1.117billion and $1.151billion, respectively, included in accrued expenses and other liabilities in the Companys consolidated balance sheets. Amortization of deferred gains is included in management fees, franchise fees and other income in the Companys consolidated statements of income and totaled approximately $21million, $61million, $21million and $63million in the three and nine months ended September30, 2009, and September30, 2008, respectively.

Restructuring and Other Special

Restructuring and Other Special Charges
	9 Months Ended Sep. 30, 2009 USD / shares
Restructuring and other special charges
Restructuring and other Special Charges [Text Block]	Note 11. Restructuring and Other Special Charges During the three and nine months ended September30, 2009, the Company recorded restructuring charges of $2million and $24million, respectively, in connection with its ongoing initiative of rationalizing its cost structure in light of the decline in growth in its business units. These charges were primarily related to severance costs. During the three and nine months ended September30, 2008, the Company recorded a $22million and a $32million, respectively, restructuring charge in connection with the Companys ongoing initiative of rationalizing its cost structure with charges primarily related to severance and closure of vacation ownership sales centers. Restructuring costs and other special charges, net, by segment are as follows (in millions): Three Months Ended Nine Months Ended September 30, September 30, 2009 2008 2009 2008 Hotel $ 1 $ 12 $ 14 $ 17 Vacation Ownership Residential 1 10 10 15 Total $ 2 $ 22 $ 24 $ 32 The Company had remaining accruals of $22million and $41million at September30, 2009 and December31, 2008, respectively, which are primarily recorded in accrued expenses and other liabilities. The following table summarizes activity in the restructuring and other special charges related accruals: December 31, Expenses Non-cash September 30, 2008 (Reversals) Payments Other 2009 Retained reserves established by Sheraton Holding prior to its merger with the Company in 1998 $ 8 $ $ $ $ 8 Le Mridien acquisition reserves (2 ) 2 Consulting fees associated with cost reduction initiatives 3 2 (5 ) Severance 23 19 (35 ) 7 Closure of vacation ownership facilities 7 5 (3 ) (2 ) 7 Total $ 41 $ 24 $ (43 ) $ $ 22

Derivative Financial Instrument

Derivative Financial Instruments
	9 Months Ended Sep. 30, 2009 USD / shares
Derivative Financial Instruments
Derivative Financial Instruments [Text Block]	Note 12. Derivative Financial Instruments The Company, based on market conditions, enters into forward contracts to manage foreign exchange risk. The Company enters into forward contracts to hedge forecasted transactions based in certain foreign currencies, including the Euro, Canadian Dollar and Yen. These forward contracts have been designated and qualify as cash flow hedges, and their change in fair value is recorded as a component of other comprehensive income and reclassified into earnings in the same period or periods in which the forecasted transaction occurs. To qualify as a hedge, the Company needs to formally document, designate and assess the effectiveness of the transactions that receive hedge accounting. In the third quarter of 2009, we cancelled notional amounts of $4million related to two hedges and received cash proceeds of approximately $0.3million. The forecasted transaction is still expected to occur in the future and the change in fair value at the time of settlement was recorded in accumulated other comprehensive income. The notional dollar amounts of the outstanding Euro and Yen forward contracts at September30, 2009 are $27million and $4million, respectively, with average exchange rates of 1.4 and 90.5, respectively, with terms of primarily less than one year. The Canadian forward contracts expired during the second quarter of 2009. The Company reviews the effectiveness of its hedging instruments on a quarterly basis and records any ineffectiveness into earnings. The Company discontinues hedge accounting for any hedge that is no longer evaluated to be highly effective. From time to time, the Company may choose to de-designate portions of hedges when changes in estimates of forecasted transactions occur. In the second quarter of 2009, the Company de-designated notional amounts of $4million related to three hedges. Other than the de-designated portions, each of these hedges was highly effective in offsetting fluctuations in foreign currencies. An insignificant amount of gain due to ineffectiveness was recorded in the consolidated statements of income during 2009. Additionally, during the third quarter of 2009, nine forward contracts matured. The Company also enters into forward contracts to manage foreign exchange risk on intercompany loans that are not deemed permanently invested. These forward contracts are not designated as hedges, and their change in fair value is recorded in the Companys consolidated statements of income at each reporting period. The Company enters into interest rate swap agreements to manage interest expense. The Companys objective is to manage the impact of interest rates on the results of operations, cash flows and the market value of the Companys debt. At September30, 2009, the Company has six interest rate swap agreements with an aggregate notional amount of $500million under which the Company pays floating rates and receives fixed rates of interest (Fair Value Swaps). The Fair Value Swaps hedge the change in fair value of certain fixed rate debt related to fluctuations in interest rates and mature in 2012, 2013 and 2014. The Fair Value Swaps modify the Companys interest rate exposure

Other Liabilities

Other Liabilities
	9 Months Ended Sep. 30, 2009 USD / shares
Other Liabilities [Abstract]
Other Liabilities [Text Block]	Note 13. Other Liabilities In June2009, the Company entered into an amendment to its existing co-branded credit card agreement (Amendment) with American Express and extended the term of its co-branding agreement. In connection with the Amendment, the Company received $250million in cash in July2009 and, in return, sold SPG points to American Express. In accordance with ASC 470-10-25-2, the Company has recorded the sale of these points as a financing arrangement with an implicit interest rate of 4.5%. The liability associated with this financing arrangement will be reduced ratably over a multi-year period beginning in October2009. The portion of this liability to be redeemed in the next twelve months has been recorded in accrued expenses with the remaining balance recorded in other liabilities. In accordance with the terms of the Amendment, if the Company fails to comply with certain financial covenants the Company would have to repay the remaining liability and, if the Company does not repay such liability, the Company is required to pledge certain receivables as collateral for the remaining balance of the liability.

Discontinued Operations

Discontinued Operations
	9 Months Ended Sep. 30, 2009 USD / shares
Discontinued Operations
Discontinued Operations [Text Block]	Note 14. Discontinued Operations For the three months ended September30, 2009, the Company recorded a $1million tax charge in discontinued operations related to a 2008 administrative tax ruling for an unrelated taxpayer that impacts the tax liability associated with the disposition of one of its businesses several years ago. For the nine months ended September30, 2009 and 2008, the Company recorded a net benefit of $1million and tax charges of $49million, respectively, in discontinued operations. The Company recorded $2million and $49million of tax charges for the nine months ended September30, 2009 and 2008, respectively, as a result of a 2008 administrative tax ruling discussed above. The charge for the nine months ended September30, 2009 is offset by a benefit of approximately $3million related to the final settlement of an uncertain tax position for an entity we sold several years ago.

Pension and Postretirement Bene

Pension and Postretirement Benefit Plans
	9 Months Ended Sep. 30, 2009 USD / shares
Pension and Postretirement Benefit Plans
Pension and Postretirement Benefit Plans [Text Block]	Note 15. Pension and Postretirement Benefit Plans The following table presents the components of net periodic benefit cost for the three and nine months ended September30, 2009 and 2008 (in millions): Three Months Ended September 30, 2009 2008 Foreign Foreign Pension Pension Postretirement Pension Pension Postretirement Benefits Benefits Benefits Benefits Benefits Benefits Service cost $ $ 1.1 $ $ $ 1.0 $ Interest cost 0.2 3.2 0.3 0.2 2.9 0.3 Expected return on plan assets (2.5 ) (2.9 ) (0.1 ) Amortization of: Actuarial loss 1.3 0.4 Prior service income (0.1 ) (0.1 ) Net period benefit cost $ 0.2 $ 3.0 $ 0.3 $ 0.2 $ 1.3 $ 0.2 Nine Months Ended September 30, 2009 2008 Foreign Foreign Pension Pension Postretirement Pension Pension Postretirement Benefits Benefits Benefits Benefits Benefits Benefits Service cost $ $ 3.5 $ $ $ 4.3 $ Interest cost 0.7 9.5 0.8 0.6 8.9 0.9 Expected return on plan assets (7.5 ) (0.1 ) (8.8 ) (0.3 ) Amortization of: Actuarial loss 3.7 1.2 Prior service income (0.2 ) (0.3 ) Net periodic benefit cost $ 0.7 $ 9.0 $ 0.7 $ 0.6 $ 5.3 $ 0.6 During the three and nine months ended September30, 2009, the Company contributed approximately $2million and $15million, respectively, to its pension and post retirement benefit plans. For the remainder of 2009, the Company expects to contribute approximately $6million to its pension and post-retirement benefit plans. A portion of these fundings will be reimbursed for costs related to employees of managed hotels.

Income Taxes

Income Taxes
	9 Months Ended Sep. 30, 2009 USD / shares
Income Taxes
Income Taxes [Text Block]	Note 16. Income Taxes The total amount of unrecognized tax benefits as of September30, 2009, was $998million, of which $150million would affect the Companys effective tax rate if recognized. The amount of unrecognized tax benefits includes approximately $499million related to the February1998 disposition of ITT World Directories which the Company strongly believes was completed on a tax deferred basis. In 2002, the IRS proposed an adjustment to tax the gain on disposition in 1998, and the issue has progressed to litigation in United States Tax Court. In January2009, the Company and the IRS reached an agreement in principle to settle the litigation pertaining to the tax treatment of this transaction. Upon finalization of the agreement details, the Company expects to obtain a refund of over $200million for previously paid tax. As a result, the Company expects to decrease its unrecognized tax benefits by approximately $499million within the next twelve months. It is reasonably possible that zero to substantially all of the Companys other remaining unrecognized tax benefits will reverse within the next twelve months. During the three months ended September30, 2009, a tax benefit of $10million was recognized to reverse an interest accrual associated with the timing of taxable income recognition from VOI sales. Taxpayers that defer taxable income recognition through installment sale accounting are required to pay interest on the deferral in the tax year that the income is reported. The interest is due only if a taxpayer has a cash tax liability in the tax year of income recognition. The Company currently expects that it will not have a cash tax liability in the years when the deferred taxable income is recognized and therefore reversed the associated interest accrual. The Company recognizes interest and penalties related to unrecognized tax benefits through income tax expense. As of September30, 2009, the Company had $227million accrued for the payment of interest and no accrued penalties. The Company is subject to taxation in the U.S. federal jurisdiction, as well as various state and foreign jurisdictions. As of September30, 2009, the Company is no longer subject to examination by U.S. federal taxing authorities for years prior to 2004 and to examination by any U.S. state taxing authority prior to 1998. All subsequent periods remain eligible for examination. In the significant foreign jurisdictions in which the Company operates, the Company is no longer subject to examination by the relevant taxing authorities for any years prior to 2001. During the three months ended June30, 2009, the Company entered into an Italian tax incentive program through which the tax basis of its Italian owned hotels were stepped up in exchange for paying $9million of current tax over a three year period. As a result, the Company was able to recognize a tax benefit of $129million to establish the deferred tax asset related to the basis step up. This benefit was offset by a $9million tax charge to accrue the current tax payable under the program, resulting in a net benefit of $120million.

Stockholders' Equity

Stockholders' Equity
	1/1/2009 - 9/30/2009 USD / shares
Stockholders' Equity
Stockholders' Equity [Text Block]	Note 17. Stockholders Equity The following table represents changes in stockholders equity that are attributable to Starwoods stockholders and non-controlling interests (in millions). Equity Attributable to Starwood Stockholders Accumulated Equity Additional Other Attributable to Shares Paid-in Comprehensive Retained Noncontrolling Shares Amount Capital Loss Earnings Interests Total Balance at December31, 2008 183 $ 2 $ 493 $ (391 ) $ 1,517 $ 23 $ 1,644 Net income (loss) 180 (2 ) 178 Stock option and restricted stock award transactions, net 4 31 31 Foreign currency translation 74 1 75 Pension liability adjustments 15 15 Change in fair value of derivatives and investments (5 ) (5 ) ESPP stock issuances 4 4 Dividends 1 (1 ) Balance at September30, 2009 187 $ 2 $ 528 $ (307 ) $ 1,698 $ 21 $ 1,942 Share Issuances and Repurchases. During the three and nine months ended September30, 2009, the Company issued an insignificant amount of common shares as a result of stock option exercises. The Company has not repurchased any common stock during 2009. In November2007, the Board of Directors authorized the repurchase of up to $1billion of common stock under the Companys existing repurchase authorization (the Share Repurchase Authorization). As of September30, 2009, no repurchase capacity remained available under the Share Repurchase Authorization. Limited Partnership Units. At September30, 2009, there were approximately 169,000 Operating Limited Partnership (the Operating Partnership) units outstanding. The Operating Partnership units are convertible into common shares at the unit holders option, provided that the Company has the option to settle conversion requests in cash or common shares. Dividends. On January9, 2009, the Company paid a dividend of $0.90 per share to shareholders of record on December31, 2008.

Stock-Based Compensation

Stock-Based Compensation
	9 Months Ended Sep. 30, 2009 USD / shares
Stock-Based Compensation
Stock-Based Compensation [Text Block]	Note 18. Stock-Based Compensation In accordance with the Companys 2004 Long-Term Incentive Compensation Plan, during the nine month period ended September30, 2009, the Company granted approximately 5.3million stock options that had a weighted average grant date fair value of $4.69 per option. The weighted average exercise price of these options was $11.39. In addition, the Company granted approximately 5.3 million restricted shares and restricted stock units that had a weighted average grant date fair value of $11.79 per share or unit. The Company recorded stock-based employee compensation expense, including the estimated impact of 2009 reimbursements from third parties, of $13million and $39million in the three and nine months ended September30, 2009 respectively, and $16million and $56million in the three and nine months ended September30, 2008, respectively. As of September30, 2009, there was approximately $28million of unrecognized compensation cost, net of estimated forfeitures, related to non-vested options, which is expected to be recognized, on a straight-line basis, over a weighted-average period of 3.19years. As of September30, 2009, there was approximately $121million of unrecognized compensation cost, net of estimated forfeitures, related to restricted stock and restricted stock units, which is expected to be recognized, on a straight-line basis, over a weighted-average period of 2.19 years.

Fair Value of Financial Instrum

Fair Value of Financial Instruments
	9 Months Ended Sep. 30, 2009 USD / shares
Fair Value of Financial Instruments
Fair Value of Financial Instruments [Text Block]	Note 19. Fair Value of Financial Instruments The following table presents the carrying amounts and estimated fair values of the Companys financial instruments (in millions): September 30, 2009 December 31, 2008 Carrying Fair Carrying Fair Amount Value Amount Value Assets : Restricted cash $ 7 $ 7 $ 6 $ 6 VOI notes receivable 356 405 444 419 Other notes receivable 36 36 32 32 Total financial assets $ 399 $ 448 $ 482 $ 457 Liabilities: Long-term debt $ 3,357 $ 3,366 $ 3,502 $ 2,725 Other long-term liabilities 8 8 7 7 Total financial liabilities $ 3,365 $ 3,374 $ 3,509 $ 2,732 Off-Balance sheet: Letters of credit $ $ 168 $ $ 115 Surety bonds 47 91 Total Off-Balance sheet $ $ 215 $ $ 206 The Company believes the carrying values of its financial instruments related to current assets and liabilities approximate fair value. The Company records its retained interests and derivative assets and liabilities at fair value. See Note 8 for recorded amounts and the methods and assumptions used to estimate fair value. The carrying value of the Companys restricted cash approximates its fair value. The Company estimates the fair value of its VOI notes receivable by discounting the expected future cash flows with discount rates commensurate with the risk of the underlying notes, primarily determined by the credit worthiness of the borrowers based on their Fair Isaac Corporation (FICO) scores. The fair value of other notes receivable is estimated based on terms of the instrument and current market conditions. These financial instrument assets are recorded in the other assets line item in the Companys consolidated balance sheet. The Company estimates the fair value of its publicly traded debt based on the bid prices in the public debt markets. The carrying amount of its floating rate debt is a reasonable basis of fair value due to the variable nature of the interest rates. The Companys non-public fixed rate debt fair value is determined based upon discounted cash flows for the debt rates deemed reasonable for the type of debt, prevailing market conditions and the length to maturity for the debt. Other long-term liabilities represent a financial guarantee. The carrying value of this liability approximates its fair value based on expected funding under the guarantee. The fair values of the Companys letters of credit and surety bonds are estimated to be the same as the contract values based on the nature of the fee arrangements with the issuing financial institutions.

Business Segment Information

Business Segment Information
	9 Months Ended Sep. 30, 2009 USD / shares
Business Segment Information
Business Segment Information [Text Block]	Note 20. Business Segment 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 Companys proprietary brand names including St. Regis, The Luxury Collection, Sheraton, Westin, W, Le Mridien, Aloft, Element, 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 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 and the sale of residential units. The performance of the hotels and vacation ownership and residential segments is evaluated primarily on total segment operating income. Accordingly, items below this line item are not allocated to its segments. The following table presents revenues, operating income, capital expenditures and assets for the Companys reportable segments (in millions): Three Months Ended Nine Months Ended September 30, September 30, 2009 2008 2009 2008 Revenues: Hotel $ 1,053 $ 1,270 $ 3,054 $ 3,855 Vacation ownership and residential 165 265 501 719 Total $ 1,218 $ 1,535 $ 3,555 $ 4,574 Operating income: Hotel $ 105 $ 198 $ 303 $ 595 Vacation ownership and residential 17 63 60 119 Total segment operating income 122 261 363 714 Selling, general, administrative and other (35 ) (30 ) (95 ) (128 ) Restructuring and other special charges, net (2 ) (22 ) (24 ) (32 ) Operating income 85 209 244 554 Equity (losses)earnings and gains and (losses)from unconsolidated ventures, net: Hotel (4 ) 1 (7 ) 9 Vacation ownership and residential 1 2 2 5 Interest expense, net (60 ) (48 ) (156 ) (150 ) (Loss) gain on asset dispositions and impairments, net (27 ) (12 ) (66 ) (12 ) (Loss) income from continuing operations before taxes $ (5 ) $ 152 $ 17 $ 406 Capital expenditures: Hotel $ 21 $ 74 $ 93 $ 193 Vacation ownership and residential 7 26 34 80 Corporate 3 21 17 64 Total $ 31 $ 121 $ 144 $ 337 September 30, December 31, 2009 2008 Assets: Hotel(a) $ 6,198 $ 6,728 Vacation ownership and residential(b) 2,101 2,183 Corporate 975 792 Total $ 9,274

Commitments and Contingencies

Commitments and Contingencies
	9 Months Ended Sep. 30, 2009 USD / shares
Commitments - Contingencies
Commitments and Contingencies [Text Block]	Note 21. Commitments and Contingencies Variable Interest Entities. The Company has evaluated the 20 hotels in which it has a variable interest, generally in the form of investments, loans, guarantees, or equity. The Company determines if it is the primary beneficiary of the hotel by considering qualitative and quantitative factors. Qualitative factors include evaluating distribution terms, proportional voting rights, decision making ability, and the capital structure. Quantitatively, the Company evaluates financial forecasts under various scenarios to determine which variable interest holders would absorb over 50% of the expected losses of the hotel. The Company has determined it is not the primary beneficiary of any of the variable interest entities (VIEs) and therefore these entities are not consolidated in the Companys financial statements. In all cases, the VIEs associated with the Companys variable interests are hotels for which the Company has entered into management or franchise agreements with the hotel owners. The Company is paid a fee primarily based on financial metrics of the hotel. The hotels are financed by the owners, generally in the form of working capital, equity, and debt. At September30, 2009, the Company has approximately $62million of investments associated with 17 VIEs, equity investments of $11million associated with one VIE, and a loan balance of $5 million associated with one VIE. As the Company is not obligated to fund future cash contributions under these agreements, the maximum loss equals the carrying value. In addition, the Company has not contributed amounts to the VIEs in excess of their contractual obligations. At December31, 2008, the Company had approximately $66million of investments associated with 19 VIEs, equity investments of $10million associated with one VIE, and a loan balance of $5 million associated with one VIE. Guaranteed Loans and Commitments. In limited cases, the Company has made loans to owners of or partners in hotel or resort ventures for which the Company has a management or franchise agreement. Loans outstanding under this program totaled $28million at September30, 2009. The Company evaluates these loans for impairment, and at September30, 2009, believes the net carrying value of these loans are collectible. Unfunded loan commitments aggregating $56million were outstanding at September30, 2009, none of which is expected to be funded in the next twelve months or in total. These loans typically are secured by pledges of project ownership interests and/or mortgages on the projects. The Company also has $110million of equity and other potential contributions associated with managed or joint venture properties, $68million of which is expected to be funded in the next twelve months. Surety bonds issued on behalf of the Company as of September30, 2009 totaled $47million, the majority of which were required by state or local governments relating to our vacation ownership operations and by our insurers to secure large deductible insurance programs. To secure management contracts, the Company may provide performance guarantees to third-party owners. Most of these performance g

Document Information

Document Information
	9 Months Ended Sep. 30, 2009 USD / shares
Document Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	2009-09-30

Entity Information

Entity Information (USD $)
	9 Months Ended Sep. 30, 2009	Oct. 26, 2009
Entity Information [Line Items]
Entity Registrant Name	Starwood Hotel & Resorts Worldwide Inc
Entity Central Index Key	0000316206
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		187,009,911