Starwood Hotel & Resorts Worldwide 10-K 25 Feb 10 2009 FY Annual report Financial data

Consolidated Balance Sheets

Consolidated Balance Sheets (USD $)
In Millions	Dec. 31, 2009	Dec. 31, 2008
ASSETS
Cash and cash equivalents	$87	$389
Restricted cash	47	96
Accounts receivable, net of allowance for doubtful accounts of $54 and $49	447	552
Inventories	783	986
Prepaid expenses and other	127	143
Total current assets	1,491	2,166
Investments	344	372
Plant, property and equipment, net	3,350	3,347
Assets held for sale	71	336
Goodwill and intangible assets, net	2,063	2,161
Deferred tax assets	982	639
Other assets	460	682
Total assets	8,761	9,703
LIABILITIES AND STOCKHOLDERS' EQUITY
Short-term borrowings and current maturities of long-term debt	5	506
Accounts payable	139	171
Accrued expenses	1,212	1,274
Accrued salaries, wages and benefits	303	346
Accrued taxes and other	368	391
Total current liabilities	2,027	2,688
Long-term debt	2,955	3,502
Deferred income taxes	31	26
Other liabilities	1,903	1,843
Total liabilities	6,916	8,059
Stockholders' equity:
Common Stock; $.01 par value;authorized 1,000,000,000 shares; outstanding 186,785,068 and 182,827,483 shares at December 31, 2009 and 2008 respectively	2	2
Additional paid-in capital	552	493
Accumulated other comprehensive loss	(283)	(391)
Retained earnings	1,553	1,517
Total Starwood stockholders' equity	1,824	1,621
Noncontrolling interest	21	23
Total equity	1,845	1,644
Total liabilities and stockholders' equity	$8,761	$9,703

Consolidated Balance Sheets [Pa

Consolidated Balance Sheets [Parenthetical] (USD $)
In Millions, except Share data, unless otherwise specified	Dec. 31, 2009	Dec. 31, 2008
Consolidated Balance Sheets [Parenthetical]
Allowance for Doubtful Accounts Receivable, Current	$54	$49
Common stock par value	0.01	0.01
Common Stock, authorized	1,000,000,000	1,000,000,000
Common Stock, outstanding	186,785,068	182,827,483

Consolidated Statements of Inco

Consolidated Statements of Income (USD $)
In Millions, except Per Share data	12 Months Ended Dec. 31, 2009	12 Months Ended Dec. 31, 2008	12 Months Ended Dec. 31, 2007
Revenues
Owned, leased and consolidated joint venture hotels	$1,584	$2,212	$2,384
Vacation ownership and residential sales and services	523	749	1,025
Management fees, franchise fees and other income	658	751	730
Other revenues from managed and franchised properties	1,947	2,042	1,860
Total Revenues	4,712	5,754	5,999
Costs and Expenses
Owned, leased and consolidated joint venture hotels	1,315	1,688	1,774
Vacation ownership and residential	422	583	758
Selling, general, administrative and other	314	377	416
Restructuring, goodwill impairment, and other special charges (credits), net	379	141	53
Depreciation	274	281	271
Amortization	35	32	26
Other expenses from managed and franchised properties	1,947	2,042	1,860
Total Costs and Expenses	4,686	5,144	5,158
Operating income (loss)	26	610	841
Equity (losses) earnings and gains and (losses) from unconsolidated ventures, net	(4)	16	66
Interest expense, net of interest income of $3, $3 and $21	(227)	(207)	(147)
(Loss) gain on asset dispositions and impairments, net	(91)	(98)	(44)
(Loss) income from continuing operations before taxes and noncontrolling interest	(296)	321	716
Income tax benefit (expense)	293	(72)	(183)
Income (loss) from continuing operations	(3)	249	533
Discontinued operations:
Income (loss) from operations, net of tax (benefit) expense of $(2), $4, and $6	(2)	5	11
Gain (loss) on dispositions, net of tax (benefit) expense of $(35), $54, and $1	76	75	(1)
Net income (loss)	71	329	543
Net loss (income) attributable to noncontrolling interests	2	0	(1)
Net income attributable to Starwood	73	329	542
Earnings (Loss) Per Share - Basic
Continuing operations	$0	1.37	2.62
Discontinued operations	0.41	0.44	0.05
Net income	0.41	1.81	2.67
Earnings (Loss) Per Share - Diluted
Continuing operations	$0	1.34	2.52
Discontinued operations	0.41	0.43	0.05
Net income	0.41	1.77	2.57
Amounts attributable to Starwood's Common Shareholders
Income (loss) from continuing operations	(1)	249	532
Discontinued operations	74	80	10
Net income	$73	$329	$542
Weighted average number of shares	180	181	203
Weighted average number of shares assuming dilution	180	185	211
Dividends declared per Share	0.2	0.9	0.9

Consolidated Statements of Inc

Consolidated Statements of Income [Parenthetical] (USD $)
In Millions	12 Months Ended Dec. 31, 2009	12 Months Ended Dec. 31, 2008	12 Months Ended Dec. 31, 2007
Consolidated Statements of Income [Parenthetical]
Interest income	$3	$3	$21
Tax (benefit) expense on discontinued operations	(2)	4	6
Tax (benefit) expense on gain(loss) from discontinued operations	($35)	$54	$1

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income (USD $)
In Millions	12 Months Ended Dec. 31, 2009	12 Months Ended Dec. 31, 2008	12 Months Ended Dec. 31, 2007
Net income (loss)	$71	$329	$543
Other comprehensive income (loss), net of taxes:
Foreign currency translation adjustments	86	(190)	84
Less: Recognition of accumulated foreign currency translation adjustments on sold hotels	(13)	0	0
Defined benefit pension plans net gains (losses) arising during the year	10	(61)	1
Net curtailment and settlement gains	23	1	0
Amortization of acturial gains and losses included in net periodic pension cost	5	2	2
Change in fair value of derivatives	0	4	0
Reclassification adjustments for gains (losses) included in net income	(6)	2	0
Change in fair value of investments	3	(1)	(3)
Reclassification for gains and amortization included in net income	0	(1)	(3)
Total other comprehensive income (loss), net of taxes	108	(244)	81
Comprehensive income (loss)	179	85	624
Comprehensive (income) loss attributable to noncontrolling interests	2	0	(1)
Foreign currency translation adjustments attributable to noncontrolling interests	1	0	0
Comprehensive income (loss) attributable to Starwood	$182	$85	$623

Consolidated Statements of Equi

Consolidated Statements of Equity (USD $)
In Millions	12 Months Ended Dec. 31, 2009		12 Months Ended Dec. 31, 2008		12 Months Ended Dec. 31, 2007
Balance shares					213
Balance value	$1,644		$2,102		$3,033
Net income (loss)	71		329		543
Stock option and restricted stock award transactions, net value	54		212		358
ESPP stock issuances, value	5		6		7
Share repurchases, value			(593)		(1,787)
Other			(2)		4
Impact of adoption of ASC 740-10					35
Dividends declared	(38)		(166)		(172)
Balance, shares	187		183		191
Other comprehensive income (loss)	109		(244)		81
Balance, value	1,845		1,644		2,102
Additional Paid-in Capital
Balance value	493		868		2,286
Stock option and restricted stock award transactions, net value	54	[2]	212	[2]	358	[2]
ESPP stock issuances, value	5		6		7
Share repurchases, value			(593)		(1,787)
Other					4
Balance, value	552		493		868
Accumulated Other Comprehensive Loss
Balance value	(391)		(147)		(228)
Other comprehensive income (loss)	108		(244)		81
Balance, value	(283)	[1]	(391)		(147)
Common Stock Shares
Balance shares					213
Balance value	2		2		2
Stock option and restricted stock award transactions, shares	4		6		7
Share repurchases, shares			(14)		(29)
Balance, shares	187		183		191
Balance, value	2		2		2
Retained Earnings
Balance value	1,517		1,353		948
Net income (loss)	73		329		542
Impact of adoption of ASC 740-10					35	[3]
Dividends declared	(37)		(165)		(172)
Balance, value	1,553		1,517		1,353
Equity Attributable to Noncontrolling Interests
Balance value	23		26		25
Net income (loss)	(2)				1
Other			(2)
Dividends declared	(1)		(1)
Other comprehensive income (loss)	1
Balance, value	$21		$23		$26
[1]As of December 31, 2009, this balance is comprised of $231 million of cumulative translation adjustments, $1 million unrealized net gain on investments and $53 million of cumulative pension adjustments.
[2]Stock option and restricted stock award transactions are net of a tax (expense) benefit of ($18) million, $33 million and $65 million in 2009, 2008, and 2007 respectively.
[3]This was previously FASB Interpretation No. 48 and was updated in the ASC, which is the source of authoritative accounting principles recognized by the FASB.

Consolidated Condensed Statemen

Consolidated Condensed Statements of Cash Flows (USD $)
In Millions	12 Months Ended Dec. 31, 2009	12 Months Ended Dec. 31, 2008	12 Months Ended Dec. 31, 2007
Operating Activities
Net income (loss)	$71	$329	$543
Adjustments to net income:
Discontinued operations,(gain) loss on dispositions, net	(76)	(75)	1
Discontinued operations, depreciation and amortization	8	10	9
Other adjustments relating to discontinued operations	0	0	0
Stock-based compensation expense	53	68	99
Excess stock based compensation tax (expense) benefit	0	(16)	(46)
Depreciation and amortization	309	313	297
Amortization of Financing Costs	10	5	4
Non-cash portion of restructuring, goodwill impairment and other special charges (credits), net	332	74	48
Non-cash foreign currency (gains) losses, net	(6)	(5)	11
Amortization of deferred gains	(82)	(83)	(81)
Provision for Doubtful Accounts	72	64	43
Distributions in excess (deficit) of equity earnings	30	21	10
(Gain) loss on the sale of VOI notes receivable	(24)	(4)	(2)
(Gain) loss on asset dispositions and impairments, net	91	98	44
Non-cash portion of income tax (benefit) expense	(260)	24	(142)
Changes in working capital:
Restricted cash	46	102	134
Accounts receivable	63	34	(34)
Inventories	(98)	(280)	(143)
Prepaid expenses and other	10	2	(2)
Accounts payable and accrued expenses	(44)	85	177
Accrued income taxes	(50)	(22)	210
VOI notes receivable activity, net	167	(150)	(209)
Other, net	(51)	52	(87)
Cash (used for) from operating activities	571	646	884
Investing Activities
Purchases of plant, property and equipment	(196)	(476)	(384)
Proceeds from asset sales, net	310	320	133
(Issuance) collection of notes receivable, net	(2)	3	45
Acquisitions, net of acquired cash	0	0	(74)
Purchase of investments	(5)	(37)	(49)
Proceeds from investments, net	35	39	112
Other, net	(26)	(21)	2
Cash (used for) from investing activities	116	(172)	(215)
Financing Activities
Revolving credit facility and short-term borrowings (repayments), net	(102)	(570)	341
Long-term debt issued	726	986	1,400
Long-term debt repaid	(1,681)	(4)	(799)
Dividends paid	(165)	(172)	(90)
Proceeds from stock option exercises	2	120	190
Excess stock based compensation tax benefit (expense)	0	16	46
Share repurchases	0	(593)	(1,787)
Other, net	227	(26)	(13)
Cash (used for) from financing activities	(993)	(243)	(712)
Exchange rate effect on cash and cash equivalents	4	7	11
(Decrease) increase in cash and cash equivalents	(302)	238	(32)
Cash and cash equivalents beginning of period	389	151	183
Cash and cash equivalents end of period	87	389	151
Supplemental Disclosures of Cash Flow Information
Cash paid (received) during the period for interest	202	186	164
Cash paid (received) during the period for income taxes, net of refunds	$12	$58	$128

Basis of Presentation

Basis of Presentation
	12 Months Ended Dec. 31, 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). 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 almost 1,000 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. 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 February25, 2010, the date the consolidated financial statements were filed.

Significant Accounting Policies

Significant Accounting Policies
	12 Months Ended Dec. 31, 2009 USD / shares
Significant Accounting Policies
Significant Accounting Policies [Text Block]	Note 2. Significant Accounting Policies Principles of Consolidation.The accompanying consolidated financial statements of the Company and its subsidiaries include the assets, liabilities, revenues and expenses of majority-owned subsidiaries over which the Company exercises control. Intercompany transactions and balances have been eliminated in consolidation. Cash and Cash Equivalents.The Company considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. Restricted Cash.Restricted cash primarily consists of deposits received on sales of VOIs and residential properties that are held in escrow until a certificate of occupancy is obtained, the legal rescission period has expired and the deed of trust has been recorded in governmental property ownership records. At December31, 2009 and 2008, the Company had short-term restricted cash balances of $47million and $96million, respectively. Inventories.Inventories are comprised principally of VOIs of $434million and $729million as of December31, 2009 and 2008, respectively, residential inventory of $315million and $203million at December31, 2009 and 2008, respectively, and hotel inventory. VOI and residential inventory is carried at the lower of cost or net realizable value and includes $31million, $25million and $37million of capitalized interest incurred in 2009, 2008 and 2007, respectively. Hotel inventory includes operating supplies and food and beverage inventory items which are generally valued at the lower of FIFO cost (first-in, first-out) or market. Hotel inventory also includes linens, china, glass, silver, uniforms, utensils and guest room items. Significant purchases of these items with a useful life of greater than one year are recorded at purchased cost and amortized over their useful life. Normal replacement purchases are expensed as incurred. Loan Loss Reserves.For the vacation ownership and residential segment, the Company records an estimate of expected uncollectibility on its VOI notes receivable as a reduction of revenue at the time it recognizes profit on a timeshare sale. The Company holds large amounts of homogeneous VOI notes receivable and therefore assesses uncollectibility based on pools of receivables. In estimating loss reserves, the Company uses a technique referred to as static pool analysis, which tracks uncollectible notes for each years sales over the life of the respective notes and projects an estimated default rate that is used in the determination of its loan loss reserve requirements. As of December31, 2009, the average estimated default rate for the Companys pools of receivables was 9.8%. Given the significance of the Companys respective pools of VOI notes receivable, a change in the projected default rate can have a significant impact to its loan loss reserve requirements, with a 0.1% change estimated to have an impact of approximately $3million. For the hotel segment, the Company measures loan impairment based on the present value of expected future cash flows discounted at the loans original effective interest rate or the estimated fair value of the collateral. For

Earnings Per Share

Earnings Per Share
	12 Months Ended Dec. 31, 2009 USD / shares
Earnings Per Share
Earnings Per Share [Text Block]	Note 3. Earnings (Losses) per Share Basic and diluted earnings (losses) per share are calculated using income (losses) from continuing operations attributable to Starwoods common shareholders (i.e. excluding amounts attributable to noncontrolling interests). The following is a reconciliation of basic earnings (losses) per share to diluted earnings (losses) per share for income (losses) from continuing operations (in millions, except per share data): Year Ended December31, 2009 2008 2007 Earnings Per Per Per (Losses) Shares Share Earnings Shares Share Earnings Shares Share Basic (losses) earnings from continuing operations $ (1 ) 180 $ 0.00 $ 249 181 $ 1.37 $ 532 203 $ 2.62 Effect of dilutive securities: Employee options and restricted stock awards 4 8 Diluted (losses) earnings from continuing operations $ (1 ) 180 $ 0.00 $ 249 185 $ 1.34 $ 532 211 $ 2.52 Approximately 12million shares, 7million shares and 1million shares were excluded from the computation of diluted shares in 2009, 2008 and 2007, respectively, as their impact would have been anti-dilutive. Income from continuing operations was adjusted for dispositions that occurred in 2009 and were reclassified to discontinued operations for all periods presented (see Note17). The previously reported basic earnings per share were $1.40 and $2.67 for 2008 and 2007, respectively, and diluted earnings per share were $1.37 and $2.57 for 2008 and 2007, respectively.

Significant Acquisitions

Significant Acquisitions
	12 Months Ended Dec. 31, 2009 USD / shares
Significant Acquisitions
Property, Plant and Equipment, Schedule of Significant Acquisitions and Disposals [Text Block]	Note 4. Significant Acquisitions Acquisition of the Sheraton Full Moon Maldives Resort and Spa During the fourth quarter of 2008, the Company entered into a joint venture that acquired the Sheraton Full Moon Maldives Resort and Spa. The Company invested approximately $28million in this venture in exchange for a 45% ownership interest.

Asset Dispositions and Impairme

Asset Dispositions and Impairments
	12 Months Ended Dec. 31, 2009 USD / shares
Asset Dispositions and Impairments [Abstract]
Asset Dispositions and Impairments [Text Block]	Note 5. Asset Dispositions and Impairments As a result of the current economic climate, during 2009 and 2008, the Company reviewed the recoverability of its carrying values of its owned hotels and determined that certain hotels were impaired. The fair values of the hotels were estimated by using discounted cash flows, comparative sales for similar assets and recent letters of intent to sell certain assets. Impairment charges of $41million and $64million, relating to 11 hotels, were recorded in the years ended December31, 2009 and 2008, respectively. These assets are reported in the Hotels operating segment. It is reasonably possible that there will be additional impairments on owned hotels in 2010 if economic conditions worsen. Additionally, during 2009, the Company recorded a $13million impairment of an investment in a hotel management contract that has been cancelled, a $5million impairment of certain technology-related fixed assets and a $4million loss on the sale of a wholly-owned hotel. During 2009 and 2008, as a result of market conditions and its impact on the timeshare industry, the Company reviewed the fair value of its economic interests in securitized VOI notes receivable and concluded these interests were impaired. The fair value of the Companys investment in these retained interests was determined by estimating the net present value of the expected future cash flows, based on expected default and prepayment rates (See Note10.) The Company recorded impairment charges of $22million and $23million in the years ended December31, 2009 and 2008, respectively, related to these retained interests. These assets are reported in the Vacation Ownership and Residential operating segment. 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. During the fourth quarter of 2008, the Company sold a wholly-owned hotel for net cash proceeds of $99million. This sale was subject to a long term management contract and the Company recorded a deferred gain of $27million in connection with the sale. During the third quarter of 2008, the Company recorded a loss of $11million primarily related to an investment in which the Company holds a minority interest. This investment was fully written off as the joint ventures lenders began foreclosure proceedings on the underlying assets of the venture.

Assets Held for Sale

Assets Held for Sale
	12 Months Ended Dec. 31, 2009 USD / shares
Assets Held for Sale
Assets Held for Sale [Text Block]	Note 6. Assets Held for Sale During the fourth quarter of 2009, the Company entered into purchase and sale agreements for the sale of two wholly owned hotels for total expected cash consideration of approximately $78million. The Company received an $8million non-refundable deposit from the prospective buyer during the quarter. The Company classified these assets and the estimated goodwill to be allocated as assets held for sale, ceased depreciating them and reclassified the operating results to discontinued operations. Reclassifications have been made to the 2008 balance in order to be comparable to the 2009 presentation (see Note17).

Plant, Property and Equipment

Plant, Property and Equipment
	12 Months Ended Dec. 31, 2009 USD / shares
Plant, Property and Equipment
Property, Plant and Equipment Disclosure [Text Block]	Note 7. Plant, Property and Equipment Plant, property and equipment, excluding assets held for sale, consisted of the following (in millions): December31, 2009 2008 Land and improvements $ 597 $ 591 Buildings and improvements 3,222 3,144 Furniture, fixtures and equipment 1,824 1,702 Construction work in process 180 194 5,823 5,631 Less accumulated depreciation and amortization (2,473 ) (2,284 ) $ 3,350 $ 3,347 Reclassifications have been made to the 2008 balance in order to be comparable to the 2009 presentation (see Note17). The above balances include unamortized capitalized computer software costs of $136million and $129million at December31, 2009 and 2008 respectively. Amortization of capitalized computer software costs was $36million, $24million and $23million for the years ended December31, 2009, 2008 and 2007 respectively.

Goodwill and Intangible Assets

Goodwill and Intangible Assets
	12 Months Ended Dec. 31, 2009 USD / shares
Goodwill and Intangible Assets
Goodwill and Intangible Assets Disclosure [Text Block]	Note 8. Goodwill and Intangible Assets The changes in the carrying amount of goodwill for the year ended December31, 2009 are as follows (in millions): Vacation Hotel Ownership Segment Segment Total Balance at January1, 2009(a) $ 1,324 $ 241 $ 1,565 Cumulative translation adjustment 7 7 Asset dispositions Impairment charge (90 ) (90 ) Other 1 1 Balance at December31, 2009 $ 1,332 $ 151 $ 1,483 (a) Goodwill associated with discontinued operations total $74million in 2009. This amount was reclassified in the December31, 2008 balance sheet as reflected in the beginning balance above. The Company performed its annual goodwill impairment test as of October31, 2009 for its hotel and vacation ownership reporting units and determined that the vacation ownership goodwill was impaired, resulting in a charge of $90million ($90million after-tax) to the restructuring, goodwill and impairment and other charges line item in the consolidated statement of operations. During the fourth quarter of 2009, the Company completed a comprehensive review of its vacation ownership business (see Note13). As a result of this review, the Company decided not to develop certain vacation ownership sites and future phases of certain existing projects. These actions reduced the future expected cash flows of the vacation ownership reporting unit which contributed to impairment of its goodwill. The first step of the goodwill impairment test compares the fair value of the reporting unit with its carrying value. If the fair value of the reporting unit exceeds its carrying amount then goodwill of the reporting unit is not considered impaired. For the Companys hotel reporting unit the fair value exceeded its carrying value. However, the fair value of the vacation ownership reporting unit was less than its carrying value, as such goodwill was deemed to be impaired, and step two of goodwill impairment test was performed. In the second step of the impairment test the Company determined the implied fair value of goodwill for the vacation ownership reporting unit by deducting the fair value of all tangible and intangible net assets as if it was acquired in a business combination, from the fair value determined in step one. This step resulted in an implied goodwill fair value of $151million compared to an actual goodwill balance of $241million, with the difference of $90million representing the impairment charge. In determining fair values associated with the goodwill impairment steps, the Company primarily used the income and the market approaches. Under the income approach, fair value was determined based on the estimated future cash flows of the reporting units taking into account assumptions such as, REVPAR, operating margins and sales pace of vacation ownership units and discounting these cash flows using a discount rate commensurate with the risk inherent in the calculations. Under the market approach, the fair value of the repor

Other Assets

Other Assets
	12 Months Ended Dec. 31, 2009 USD / shares
Other Assets [Abstract]
Other Assets [Text Block]	Note 9. Other Assets Other assets include the following (in millions): December31, 2009 2008 VOI notes receivable, net $ 222 $ 444 Other notes receivable, net 34 32 Prepaid taxes 103 130 Deposits and other 101 76 Total $ 460 $ 682 Included in these balances at December31, 2009 and 2008 are the following fixed rate notes receivable related to the financing of VOIs (in millions): December31, 2009 2008 Gross VOI notes receivable $ 336 $ 581 Allowance for uncollectible VOI notes receivable (94 ) (91 ) Net VOI notes receivable 242 490 Less current maturities of gross VOI notes receivable (30 ) (54 ) Current portion of the allowance for uncollectible VOI notes receivable 10 8 Long-term portion of net VOI notes receivable $ 222 $ 444 The current maturities of net VOI notes receivable are included in accounts receivable in the Companys balance sheets. As discussed in Note2, as the Company holds large amounts of similar VOI notes receivable, the Company assesses its loan loss reserves based on pools of receivables. As of December31, 2009, the average estimated default rate for the Companys pool of receivables was 9.8%. Given the significance of the Companys respective pools of VOI notes receivable, a change in the projected default rate can have a significant impact to its loan loss reserve requirements, with a 0.1% change estimated to have an impact of approximately $3million. It is reasonably possible that the carrying value of the VOI notes receivable could materially change in 2010 if the economy continues to worsen. The interest rates of the owned VOI notes receivable are as follows: December31, 2009 2008 Range of stated interest rates 0% - 18% 0% - 18% Weighted average interest rate 12.1% 11.9% The maturities of the gross VOI notes receivable are as follows (in millions): December31, 2009 2008 Due in 1year $ 30 $ 54 Due in 2years 25 47 Due in 3years 29 52 Due in 4years 34 64 Due in 5years 41 66 Due beyond 5years 177 298 Total gross VOI notes receivable $ 336 $ 581 The activity in the allowance for VOI loan losses was as follows (in millions): Balance at January1, 2009 $ 91 Provision for loan losses 64 Write-offs of uncollectible receivables and other (61 ) Balance at December31, 2009 $ 94

Notes Receivable Securitization

Notes Receivable Securitizations and Sales
	12 Months Ended Dec. 31, 2009 USD / shares
Notes Receivable Securitizations and Sales [Abstract]
Notes Receivable Securitizations and Sales [Text Block]	Note 10. Notes Receivable Securitizations 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 December31, 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 December31, 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 $29million, $23million and $21million during 2009, 2008 and 2007, 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 $3million, $4million and $2million during 2009, 2008 and 2007, respectively, which are included in vacation ownership and residential sales and services in the Companys consolidated statements of income. In June 2009, the Company securitized approximately $181million of VOI notes receivable (th

Fair Value

Fair Value
	12 Months Ended Dec. 31, 2009 USD / shares
Fair Value
Fair Value [Text Block]	Note 11. Fair Value The following table presents the Companys fair value hierarchy for its financial assets and liabilities measured at fair value on a recurring basis as of December31, 2009 (in millions): Level 1 Level 2 Level 3 Total Assets: Interest Rate Swaps $ $ 7 $ $ 7 Retained Interests 25 25 $ $ 7 $ 25 $ 32 Liabilities: Forward contracts $ $ 7 $ $ 7 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 Level2. 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 Level3. See Note10 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 (Level3)for the year ended December31, 2009 (in millions): Balance at January1, 2009 $ 19 Total losses (realized/unrealized) Included in earnings (19 ) Included in other comprehensive income 3 Purchases, issuances, and settlements 22 Transfers in and/or out of Level3 Balance at December31, 2009 $ 25

Deferred Gains

Deferred Gains
	12 Months Ended Dec. 31, 2009 USD / shares
Deferred Gains
Deferred Gains [Text Block]	Note 12. Deferred Gains The Company defers gains realized in connection with the sale of a property for which the Company continues to manage the property through a long-term management agreement and recognizes the gains over the initial term of the related agreement. As of December31, 2009 and 2008, the Company had total deferred gains of $1.093billion 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 $82million, $83million and $81million in 2009, 2008 and 2007, respectively.

Restructuring and Other Special

Restructuring and Other Special Charges
	12 Months Ended Dec. 31, 2009 USD / shares
Restructuring and other special charges
Restructuring and other Special Charges [Text Block]	Note 13. Restructuring, Goodwill Impairment and Other Special Charges, Net During the year ended December31, 2009, the Company completed a comprehensive review of its vacation ownership business. The Company decided not to develop certain vacation ownership sites and future phases of certain existing projects. As a result of these decisions, the Company recorded a primarily non-cash impairment charge of $255million. The impairment included a charge of approximately $148million primarily related to land held for development; a charge of $64million for the reduction in inventory values at four properties; the write-off of fixed assets of $21million; facility exit costs of $15million and $7million in other costs. Additionally, as a result of this decision and the current economic climate, the Company recorded a $90million non-cash charge for the impairment of goodwill in the vacation ownership reporting unit (see Note8). Additionally, in 2009, the Company recorded restructuring and other special charges of $34million, primarily related to severance charges and costs to close vacation ownership sales galleries, associated with its ongoing initiative of rationalizing its cost structure. During the year ended December31, 2008, the Company recorded restructuring and other special charges of $141million, including $62million of severance and related charges associated with its ongoing initiative of rationalizing its cost structure. The Company also recorded impairment charges of approximately $79million primarily related to the decision not to develop two vacation ownership projects as a result of the current economic climate and its impact on business conditions. During the year ended December31, 2007, the Company recorded net restructuring and other special charges of approximately $53million primarily related to the Companys redevelopment of the Sheraton Bal Harbour Beach Resort (Bal Harbour). The Company demolished the hotel in late 2007 and is in the process of rebuilding a St. Regis hotel along with branded residences and fractional units. Bal Harbour was closed for business on July1, 2007, and the majority of employees were terminated. The charge primarily related to accelerated depreciation, demolition, and severance costs. In determining the fair value associated with the impairment charges the Company primarily used the income and market approaches. Under the income approach, fair value was determined based on estimated future cash flows taking into consideration items such as operating margins and the sales pace of vacation ownership intervals, discounted using a rate commensurate with the inherent risk of the project. Under the market approach, fair value was determined with comparable sales of similar assets and appraisals. Restructuring, Goodwill Impairment and Other Special Charges by operating segment are as follows: Year Ended December31, 2009 2008 2007 Segment Hotel $ 21 $ 41 $ 53 Vacation Ownership Residential 358 100 Total $ 379 $ 141 $ 53 Th

Income Taxes

Income Taxes
	12 Months Ended Dec. 31, 2009 USD / shares
Income Taxes
Income Taxes [Text Block]	Note 14. Income Taxes Income tax data from continuing operations of the Company is as follows (in millions): Year Ended December31, 2009 2008 2007 Pretax income U.S. $ (408 ) $ 185 $ 501 Foreign 112 136 215 $ (296 ) $ 321 $ 716 Provision (benefit) for income tax Current: U.S. federal $ (84 ) $ (15 ) $ 161 State and local 12 32 7 Foreign 38 48 157 (34 ) 65 325 Deferred: U.S. federal (117 ) 28 (105 ) State and local (18 ) (23 ) Foreign (124 ) 2 (37 ) (259 ) 7 (142 ) $ (293 ) $ 72 $ 183 No provision has been made for U.S.taxes payable on undistributed foreign earnings amounting to approximately $759million as of December31, 2009 since these amounts are permanently reinvested. Deferred income taxes represent the tax effect of the differences between the book and tax bases of assets and liabilities. Deferred tax assets (liabilities) include the following (in millions): December31, 2009 2008 Plant, property and equipment $ 502 $ 389 Intangibles 7 10 Allowances for doubtful accounts and other reserves 225 132 Employee benefits 99 105 Net operating loss, capital loss and tax credit carryforwards 503 605 Deferred income (83 ) (238 ) Other 180 98 1,433 1,101 Less valuation allowance (482 ) (488 ) Deferred income taxes $ 951 $ 613 At December31, 2009, the Company had federal and state net operating losses, which have varying expiration dates extending through 2028, of approximately $1million and $2.4billion, respectively. The Company had federal tax credit carryforwards, which are expected to be realized, of $13million which will fully expire by 2029. The Company also had foreign net operating loss and tax credit carryforwards of approximately $58million and $19million, respectively. The majority of foreign net operating loss carryforwards are in jurisdictions with an indefinite carryforward period and the tax credit carryforwards will fully expire by 2016. The Company has established a valuation allowance against substantially all of the tax benefit for the federal and state loss carryforwards and all foreign carryforwards as it is unlikely that the benefit will be realized prior to their expiration. The Company is currently considering certain tax-planning strategies that may allow it to utilize these tax attributes within the statutory carryforward period. The Company generated a federal capital loss in connection with a disposition transaction in 2006 which was originally estimated at approximately $2.6billion at December31, 2006. During 2007

Debt

Debt
	12 Months Ended Dec. 31, 2009 USD / shares
Debt
Debt [Text Block]	Note 15. Debt Long-term debt and short-term borrowings consisted of the following (in millions): December31, 2009 2008 Senior Credit Facilities: Revolving Credit Facilities, interest rates ranging from 3.70% to 3.94% at December31, 2009, maturing 2011 $ 114 $ 213 Term loan repaid during 2009 1,375 Senior Notes, interest at 7.875%, maturing 2012 608 799 Senior Notes, interest at 6.25%, maturing 2013 498 601 Senior Notes, interest at 7.875%, maturing 2014 485 Senior Notes (former Sheraton Holding notes), interest at 7.375%, maturing 2015 449 449 Senior Notes, interest at 6.75%, maturing 2018 400 400 Senior Notes, interest at 7.15%, maturing 2019 244 Mortgages and other, interest rates ranging from 5.80% to 8.56%, various maturities 162 171 2,960 4,008 Less current maturities (5 ) (506 ) Long-term debt $ 2,955 $ 3,502 Aggregate debt maturities for each of the years ended December 31 are as follows (in millions): 2010 $ 5 2011 122 2012 653 2013 550 2014 488 Thereafter 1,142 $ 2,960 The Company maintains lines of credit under which bank loans and other short-term debt are drawn. In addition, smaller credit lines are maintained by the Companys foreign subsidiaries. The Company had approximately $1.6billion of available borrowing capacity under its domestic and foreign lines of credit as of December31, 2009. The short-term borrowings at December31, 2009 and 2008 were insignificant. The Company is subject to certain restrictive debt covenants under its short-term borrowing and long-term debt obligations including defined financial covenants, limitations on incurring additional debt ability to pay dividends, escrow account funding requirements for debt service, capital expenditures, tax payments and insurance premiums, among other restrictions. The Company was in compliance with all of the short-term and long-term debt covenants at December31, 2009. During 2009, the Company reduced debt by over $1billion. The Company issued new debt of $750million and prepaid debt of $1.675billion including term loans maturing in 2009, 2010, and 2011 totaling $1.375billion. Additional sources of cash generated to pay down debt were proceeds from asset sales, securitizations and a co-branding arrangement, as described in Notes5, 10 and 16. During 2009, the Company entered into six interest rate swap agreements with a notional amount of $500million, under which the Company pays floating and receives fixed interest rates (see Note22). On December7, 2009, the Company used the proceeds from a public offering of Senior Notes described below, together with other borrowings, to complete a tender offer to repurchase $195million of the principal amount of its 7.875%Senior Notes due 2012 and $105million of its 6.25%Senior Notes due 2013. In connection with this tender offer, the Company recorded a $17million charg

Other Liabilities

Other Liabilities
	12 Months Ended Dec. 31, 2009 USD / shares
Other Liabilities [Abstract]
Other Liabilities [Text Block]	Note 16. Other Liabilities Other liabilities consisted of the following (in millions): December31, 2009 2008 Deferred gains on asset sales $ 1,009 $ 1,069 SPG point liability(a) 634 430 Deferred income including VOI and residential sales 33 55 Benefit plan liabilities 65 106 Insurance reserves 46 50 Other 116 133 $ 1,903 $ 1,843 (a) Includes the actuarially determined liability related to the SPG program and the liability associated with the American Express transaction discussed below. In June 2009, 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 to June15, 2015. In connection with the Amendment in July 2009, the Company received $250million in cash and, in return, sold SPG points to American Express. In accordance with ASC 470, Debt, 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 five year period beginning in October 2009. 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
	12 Months Ended Dec. 31, 2009 USD / shares
Discontinued Operations
Discontinued Operations [Text Block]	Note 17. Discontinued Operations Summary financial information for discontinued operations is as follows (in millions): Year Ended December31, 2009 2008 2007 Income Statement Data Gain (loss) on disposition, net of tax $ 76 $ 75 $ (1 ) Income (loss) from operations, net of tax (2 ) 5 11 For the year ended December31, 2009, the $76million (net of tax) gain on dispositions includes the gains from the sale of the Companys Bliss spa business, other non-core assets and three hotels. The operations from the Bliss spa business, and the revenues and expenses from two hotels which are in the process of being sold, are included in discontinued operations, resulting in a loss of $2million, net of tax. The assets sold in 2009 and the two hotels recorded in assets held for sale at December31, 2009 were reclassified in the December31, 2008 balance sheet as assets held for sale in order to segregate the discontinued operations assets from continuing operations assets. The impact of the current assets and liabilities related to the discontinued operations were not reclassified as the change was inconsequential. Previously As Reported Restated Change Goodwill and intangible assets, net $ 2,235 $ 2,161 $ (74 ) Plant, property and equipment, net 3,599 3,347 (252 ) Assets held for sale 10 336 326 For the year ended December31, 2008, the gain on dispositions includes a $124million gain ($129million pre tax) on sale of three hotels which were sold unencumbered by management or franchise contracts partially offset by a $49million tax charge as a result of a 2008 administrative tax ruling for an unrelated taxpayer that impacts the tax liability associated with the disposition of one of the Companys businesses several years ago. Additionally, $5million ($9million pretax) of 2008 results from operations relating to Bliss and the two owned hotels that were in the process of being sold at December31, 2009, were reclassified to discontinued operations for the year ended December31, 2008. For the year ended December31, 2007, the income from discontinued operations represents $11million ($17million pretax) of 2007 results from operations relating to Bliss and the two hotels that were in the process of being sold at December31, 2009 and that were reclassified to discontinued operations. The loss on disposition includes a $1million tax assessment associated with the disposition of the Companys former gaming business in 1999.

Pension and Postretirement Bene

Pension and Postretirement Benefit Plans
	12 Months Ended Dec. 31, 2009 USD / shares
Pension and Postretirement Benefit Plans
Pension and Postretirement Benefit Plans [Text Block]	Note 18. Employee Benefit Plans During the year ended December31, 2009, the Company recorded net actuarial gain and gains from settlements and curtailments of $10million (net of tax) and $23million (net of tax) respectively. These gains were recorded in other comprehensive income. The amortization of actuarial loss, a component of accumulated other comprehensive income, for the year ended December31, 2009 was $5million (net of tax). Included in accumulated other comprehensive (loss) income at December31, 2009 are unrecognized net actuarial losses of $63million ($53million, net of tax) that have not yet been recognized in net periodic pension cost. The actuarial loss included in accumulated other comprehensive (loss) income and expected to be recognized in net periodic pension cost during the year ended December31, 2010 is $1million ($1million, net of tax). Defined Benefit and Postretirement Benefit Plans.The Company and its subsidiaries sponsor or previously sponsored numerous funded and unfunded domestic and international pension plans. All defined benefit plans covering U.S.employees are frozen. Certain plans covering non-U.S.employees remain active. The Company also sponsors the Starwood Hotels Resorts Worldwide, Inc. Retiree Welfare Program. This plan provides health care and life insurance benefits for certain eligible retired employees. The Company has prefunded a portion of the health care and life insurance obligations through trust funds where such prefunding can be accomplished on a tax effective basis. The Company also funds this program on a pay-as-you-go basis. The following table sets forth the projected benefit obligation, fair value of plan assets, the funded status and the accumulated benefit obligation of the Companys defined benefit pension and postretirement benefit plans at December31, 2009 and 2008 (in millions): Domestic Pension Benefits Foreign Pension Benefits Postretirement Benefits 2009 2008 2009 2008 2009 2008 Change in Projected Benefit Obligation Benefit obligation at beginning of year $ 17 $ 17 $ 199 $ 206 $ 18 $ 20 Service cost 5 4 Interest cost 1 1 13 11 1 1 Actuarial loss (gain) 11 20 3 Settlements and curtailments (50 ) (7 ) Effect of foreign exchange rates 8 (27 ) Plan participant contributions 1 Benefits paid (1 ) (1 ) (6 ) (6 ) (4 ) (3 ) Plan amendments (2 ) (2 ) Benefit obligation at end of year $ 17 $ 17 $ 178 $ 199 $ 19 $ 18 Change in Plan Assets Fair value of plan assets at beginning of year $ $ $ 132 $ 185 $ 2 $ 5 Actual return on plan

Leases and Rentals

Leases and Rentals
	12 Months Ended Dec. 31, 2009 USD / shares
Leases and Rentals
Leases of Lessee Disclosure [Text Block]	Note 19. Leases and Rentals The Company leases certain equipment for the hotels operations under various lease agreements. The leases extend for varying periods through 2015 and generally are for a fixed amount each month. In addition, several of the Companys hotels are subject to leases of land or building facilities from third parties, which extend for varying periods through 2089 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. In June 2008, the Company entered into an agreement to lease the W London Leicester Square Hotel for 40years, commencing once the hotel reopens following a major renovation. The commencement of the lease term is contingent upon the completion of the renovation which is under way and is expected to be completed in January 2011. The minimum future rent payments due upon completion of the hotel is 3.5million in year one, 4.5million in year two, and 5.5million in year three. After the third year the rent changes based on the United Kingdom RRI Index. Due to the uncertain opening date, the payments are not included in the table below. The Companys minimum future rents at December31, 2009 payable under non-cancelable operating leases with third parties are as follows (in millions): 2010 $ 87 2011 $ 88 2012 $ 67 2013 $ 66 2014 $ 65 Thereafter $ 676 Rent expense under non-cancelable operating leases consisted of the following (in millions): Year Ended December31, 2009 2008 2007 Minimum rent $ 89 $ 93 $ 86 Contingent rent 2 10 10 Sublease rent (3 ) (6 ) (6 ) $ 88 $ 97 $ 90

Stockholders' Equity

Stockholders' Equity
	1/1/2009 - 12/31/2009 USD / shares
Stockholders' equity:
Stockholders' Equity [Text Block]	Note 20. Stockholders Equity Share Repurchases.During the year ended December31, 2009, the Company did not repurchase any Company common shares. During the year ended December31, 2008, the Company repurchased 13.6million shares at a total cost of $593million. As of December31, 2009, no repurchase capacity remained under the Share Repurchase Authorization.

Stock-Based Compensation

Stock-Based Compensation
	12 Months Ended Dec. 31, 2009 USD / shares
Stock-Based Compensation
Stock-Based Compensation [Text Block]	Note 21. Stock-Based Compensation In 2004, the Company 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, the Companys 1999 Long-Term Incentive Compensation Plan or the Companys 1995Share 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 December31, 2009 was approximately 53million. Compensation expense, net of reimbursements during 2009, 2008 and 2007 was approximately $53million, $68million and $99million, respectively, resulting in tax benefits of $21million, $26million and $33million, respectively. The Company utilizes the Lattice model to calculate the fair value of option grants. Weighted average assumptions used to determine the fair value of option grants were as follows: Year Ended December31, 2009 2008 2007 Dividend yield 3.50 % 1.50 % 1.40 % Volatility: Near term 74.0 % 38 % 25 % Long term 43.0 % 36 % 37 % Expected life 7 yrs 6 yrs 6 yrs Yield curve: 6month 0.45 % 1.90 % 5.12 % 1year 0.72 % 1.91 % 4.96 % 3year 1.40 % 2.17 % 4.55 % 5year 1.99 % 2.79 % 4.52 % 10year 3.02 % 3.73 % 4.56 % The dividend yield is estimated based on the current expected annualized dividend payment and the average price of the Companys common shares during the prior year. The estimated volatility is based on a combination of historical share price volatility as well as implied volatility based on market analysis. The historical share price volatility was measured over an 8-year period, which is equal to the contractual term of the options. The weighted average volatility for 2009 grants was 53.1%. The expected life represents the period that the Companys stock-based awards are expected to be outstanding and was determined based on an actuarial calculation using historical experience, giving consideration to the contractual terms of the stock-based awards and vesting schedules. The yield curve (risk-free interest rate) is based on the implied zero-coupon yield from the U.S.Treasury yield curve over the expected term of the option. The following table summarizes the Companys stock option activity during 2009: Weighted Average Options Exercise (In millions) Price Per Share Outstanding at December31, 2008 8.7 $ 40.66 Granted 5.3 11.39 Exercised (0.1 ) 23.36 Forfeited, Canceled or Expired (0.8 )

Derivative Financial Instrument

Derivative Financial Instruments
	12 Months Ended Dec. 31, 2009 USD / shares
Derivative Financial Instruments
Derivative Financial Instruments [Text Block]	Note 22. Derivative Financial Instruments The Company enters into forward contracts to manage foreign exchange risk. Beginning in January 2008, the Company entered 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. During 2009, the Company cancelled notional amounts of $4million related to two hedges and received cash proceeds of approximately $0.3million. The notional dollar amounts of the outstanding Euro and Yen forward contracts at December31, 2009 are $24million 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 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. During 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 year ended December31, 2009, 26 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 December31, 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 by effectively converting debt with a fixed rate to a floating rate. These interest rate swaps have been designated and qualify as fair value hedges and have met the requirements to assume zero ineffectiveness. In th

Fair Value of Financial Instrum

Fair Value of Financial Instruments
	12 Months Ended Dec. 31, 2009 USD / shares
Fair Value of Financial Instruments
Fair Value of Financial Instruments [Text Block]	Note 23. Fair Value of Financial Instruments The following table presents the carrying amounts and estimated fair values of the Companys financial instruments (in millions): December31, 2009 December31, 2008 Carrying Fair Carrying Fair Amount Value Amount Value Assets : Restricted cash $ 7 $ 7 $ 6 $ 6 VOI notes receivable 222 253 444 419 Other notes receivable 36 36 32 32 Total financial assets $ 265 $ 296 $ 482 $ 457 Liabilities: Long-term debt $ 2,955 $ 3,071 $ 3,502 $ 2,725 Other long-term liabilities 8 8 7 7 Total financial liabilities $ 2,963 $ 3,079 $ 3,509 $ 2,732 Off-Balance sheet: Letters of credit $ $ 168 $ $ 115 Surety bonds 21 91 Total Off-Balance sheet $ $ 189 $ $ 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 Note11 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.

Commitments and Contingencies

Commitments and Contingencies
	12 Months Ended Dec. 31, 2009 USD / shares
Commitments - Contingencies
Commitments and Contingencies [Text Block]	Note 24. Commitments and Contingencies The Company had the following contractual obligations outstanding as of December31, 2009 (in millions): Due in Less Due in Due in Due After Total Than 1Year 1-3Years 3-5Years 5Years Unconditional purchase obligations(a) $ 308 $ 86 $ 136 $ 80 $ 6 Other long-term obligations 4 1 3 Total contractual obligations $ 312 $ 87 $ 139 $ 80 $ 6 (a) Included in these balances are commitments that may be reimbursed or satisfied by the Companys managed and franchised properties. The Company had the following commercial commitments outstanding as of December31, 2009 (in millions): Amount of Commitment Expiration Per Period Less Than After Total 1Year 1-3Years 3-5Years 5Years Standby letters of credit $ 168 $ 165 $ $ $ 3 Variable Interest Entities.Of the over 900 hotels that the Company manages or franchises for third party owners, the Company has evaluated approximately 22 hotels that it has a variable interest in, 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 to determine which 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 they should not be 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 December31, 2009, the Company has approximately $81million of investments associated with 18 VIEs, equity investments of $11million associated with one VIE, and a loan balance of $5million 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 loan balances of $5million 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

Business Segment Information

Business Segment Information
	12 Months Ended Dec. 31, 2009 USD / shares
Business Segment Information
Business Segment Information [Text Block]	Note 25. 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 Companys proprietary brand names including St. Regis, The Luxury Collection, Sheraton, Westin, W, Le Mridien, 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. The following table presents revenues, operating income, assets and capital expenditures for the Companys reportable segments (in millions): 2009 2008 2007 Revenues: Hotel $ 4,038 $ 4,860 $ 4,846 Vacation ownership and residential 674 894 1,153 Total $ 4,712 $ 5,754 $ 5,999 Operating income: Hotel $ 471 $ 776 $ 861 Vacation ownership and residential 73 136 246 Total segment operating income 544 912 1,107 Selling, general, administrative and other (139 ) (161 ) (213 ) Restructuring, goodwill impairment and other special charges, net (379 ) (141 ) (53 ) Operating income 26 610 841 Equity earnings and gains and losses from unconsolidated ventures, net: Hotel (5 ) 12 55 Vacation ownership and residential 1 4 11 Interest expense, net (227 ) (207 ) (147 ) Loss on asset dispositions and impairments, net (91 ) (98 ) (44 ) Income (loss) from continuing operations before taxes and minority interest $ (296 ) $ 321 $ 716 Depreciation and amortization: Hotel $ 229 $ 241 $ 233 Vacation ownership and residential 27 29 21 Corporate 53 43 43 Total $ 309 $ 313 $ 297 Assets: Hotel(a) $ 5,924 $ 6,728 Vacation ownership and residential(b) 1,639 2,183 Corporate 1,198 792 Total $ 8,761

Quarterly Results

Quarterly Results
	12 Months Ended Dec. 31, 2009 USD / shares
Quarterly Results (Unaudited)
Quarterly Financial Information [Text Block]	Note 26. Quarterly Results (Unaudited) Three Months Ended March31 June30 September30 December31 Year (In millions, except per share data) 2009 Revenues $ 1,091 $ 1,190 $ 1,192 $ 1,283 $ 4,756 Costs and expenses $ 1,030 $ 1,091 $ 1,106 $ 1,503 $ 4,730 Income from continuing operations $ 7 $ 140 $ 36 $ (186 ) $ (3 ) Discontinued operations $ (3 ) $ (6 ) $ 4 $ 79 $ 74 Net income $ 4 $ 134 $ 40 $ (107 ) $ 71 Earnings per share: Basic Income (loss) from continuing operations $ 0.04 $ 0.79 $ 0.20 $ (1.03 ) $ (0.00 ) Discontinued operations $ (0.01 ) $ (0.04 ) $ 0.02 $ 0.44 $ 0.41 Net income $ 0.03 $ 0.75 $ 0.22 $ (0.59 ) $ 0.41 Diluted Income (loss) from continuing operations $ 0.04 $ 0.78 $ 0.20 $ (1.03 ) $ (0.00 ) Discontinued operations $ (0.01 ) $ (0.04 ) $ 0.02 $ 0.44 $ 0.41 Net income $ 0.03 $ 0.74 $ 0.22 $ (0.59 ) $ 0.41 2008 Revenues $ 1,427 $ 1,532 $ 1,497 $ 1,298 $ 5,754 Costs and expenses $ 1,284 $ 1,338 $ 1,289 $ 1,233 $ 5,144 Income from continuing operations $ 77 $ 104 $ 113 $ (45 ) $ 249 Discontinued operations $ (45 ) $ 1 $ $ 124 $ 80 Net income $ 32 $ 105 $ 113 $ 79 $ 329 Earnings per share: Basic Income (loss) from continuing operations $ 0.42 $ 0.56 $ 0.63 $ (0.25 ) $ 1.37 Discontinued operations $ (0.25 ) $ 0.01 $ $ 0.69 $ 0.44 Net income $ 0.17 $ 0.57 $ 0.63 $ 0.44 $ 1.81 Diluted Income (loss) from continuing operations $ 0.41 $ 0.55 $ 0.62 $ (0.25 ) $ 1.34 Discontinued operations $ (0.24 ) $ 0.01 $ $ 0.69 $ 0.43 Net income $ 0.17 $ 0.56 $ 0.62 $ 0.44 $ 1.77 Due to the dispositions in the fourth quarter of 2009 that were recorded as discontinued operations (see Note17), certain amounts in the table above have been reclassified to present comparable results for all periods presented.

Valuation and Qualifying Accoun

Valuation and Qualifying Accounts
	12 Months Ended Dec. 31, 2009 USD / shares
VALUATION AND QUALIFYING ACCOUNTS
Schedule of Valuation and Qualifying Accounts Disclosure [Text Block]	SCHEDULEII STARWOOD HOTELS RESORTS WORLDWIDE, INC. VALUATION AND QUALIFYING ACCOUNTS (In millions) Additions (Deductions) Charged to/reversed Charged Balance from to/from Other Payments/ Balance January1, Expenses Accounts(a) Other December31, 2009 Trade receivables allowance for doubtful accounts $ 49 $ 8 $ 7 $ (10 ) $ 54 Notes receivable allowance for doubtful accounts $ 117 $ 64 $ (3 ) $ (60 ) $ 118 Reserves included in accrued and other liabilities: Restructuring and other special charges $ 41 $ 379 $ (332 ) $ (54 ) $ 34 2008 Trade receivables allowance for doubtful accounts $ 50 $ 8 $ 3 $ (12 ) $ 49 Notes receivable allowance for doubtful accounts $ 94 $ 55 $ $ (32 ) $ 117 Reserves included in accrued and other liabilities: Restructuring and other special charges $ 9 $ 141 $ (83 ) $ (26 ) $ 41 2007 Trade receivables allowance for doubtful accounts $ 49 $ 6 $ 6 $ (11 ) $ 50 Notes receivable allowance for doubtful accounts $ 74 $ 37 $ (9 ) $ (8 ) $ 94 Reserves included in accrued and other liabilities: Restructuring and other special charges $ 11 $ 53 $ (46 ) $ (9 ) $ 9 (a) Charged to/from other accounts: Description of Charged to/from Other Accounts 2009 Plant, property and equipment $ (178 ) Goodwill (90 ) Inventory (61 ) Investments (5 ) Other assets (1 ) Accounts receivable 2 Accrued expenses 5 Total charged to/from other accounts $ (328 ) 2008 Investments $ (7 ) Plant, property and equipment (66 ) Other assets 3 Accrued expenses (14 ) APIC 4 Total charged to/from other accounts $ (80 ) 2007 Cash $ 2 Plant, property and equipment (48 ) Other assets (3 ) Total charged to/from other accounts $ (49 )

Document Information

Document Information
	12 Months Ended Dec. 31, 2009 USD / shares
Document Information [Line Items]
Document Type	10-K
Amendment Flag	false
Document Period End Date	2009-12-31

Entity Information

Entity Information (USD $)
In Millions, except Share data	12 Months Ended Dec. 31, 2009	Feb. 19, 2010
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 Public Float	$4,131
Entity Common Stock, Shares Outstanding		186,812,007