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Contractual Obligations and Off Balance Sheet Arrangements |
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The preceding table does not reflect unrecognized tax benefits as of year-end 2009 of $249 million. As a large taxpayer, we are under continual audit by the IRS and other taxing authorities. We anticipate concluding U.S. federal appeals negotiations for the 2005, 2006 and 2007 tax years in the next 12 months, where the items under consideration include the taxation of our loyalty and gift card programs and the treatment of funds received from foreign subsidiaries. The conclusion of the negotiations could have a material impact on our unrecognized tax benefit balances. See Footnote No. 2, "Income Taxes," for additional information. The following table summarizes our guarantee commitments as of year-end 2009: |
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In addition to the guarantees noted in the preceding table, we have provided a project completion guarantee to a lender for a project with an estimated aggregate total cost of $586 million. Our liability related to this guarantee is included in our liability for anticipated project funding disclosed in Footnote No. 20, "Timeshare Strategy – Impairment Charges." We have provided a project completion guarantee to another lender for a project with an estimated aggregate total cost of CAD $466 million (USD $441 million). We do not expect to fund under this project completion guarantee. For additional information on these project completion guarantees, including our pro rata ownership percentages, see the "Guarantees" caption within Footnote No. 18, "Contingencies." For additional information on our guarantees, including their nature and the circumstances under which they were entered into, see the "Guarantees" caption within Footnote No. 18, "Contingencies." In addition to the guarantees described in the preceding paragraphs, in conjunction with financing obtained for specific projects or properties owned by joint ventures in which we are a party, we may provide industry standard indemnifications to the lender for loss, liability or damage occurring as a result of the actions of the other joint venture owner or our own actions. We also had the following other commitments, including loan and investment commitments, outstanding at year-end 2009: |
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For further information on our loan and investment commitments, including the nature of the commitments and their expirations, see the "Loan and Investment Commitments" caption within Footnote No. 18, "Contingencies." At year-end 2009, we also had $116 million of letters of credit outstanding, the majority of which related to our self-insurance programs. Surety bonds issued as of year-end 2009 totaled $361 million, the majority of which were requested by federal, state or local governments related to our lodging operations, including our Timeshare segment and self-insurance programs. In the normal course of the hotel management business, we enter into purchase commitments to manage the daily operating needs of hotels we manage for owners. Since we are reimbursed from the cash flows of the hotels, these obligations have minimal impact on our net income and cash flow. > Back to top of page |
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