STARWOOD HOTEL & RESORTS WORLDWIDE, INC | 2013 | FY | 3


Advertising Costs.    We enter into multi-media advertising campaigns, including television, radio, internet, print advertisements and other promotional activities. Costs associated with these campaigns, including communication and production costs, are aggregated and expensed the first time that the advertising takes place. If it becomes apparent that the media campaign will not take place, then all costs are expensed at that time. During the years ended December 31, 2013, 2012 and 2011, we incurred approximately $154 million, $154 million and $149 million of advertising expense and other promotional activities, respectively, a significant portion of which was reimbursed by managed and franchised hotels.