Starwood 2006 Annual Report Download - page 65

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STARWOOD HOTELS & RESORTS WORLDWIDE, INC.
CONSOLIDATED STATEMENTS OF INCOME
(In millions, except per Share data)
2006 2005 2004
Year Ended December 31,
Revenues
Owned, leased and consolidated joint venture hotels ...................... $2,692 $3,517 $3,326
Vacation ownership and residential sales and services ..................... 1,005 889 640
Management fees, franchise fees and other income ....................... 697 501 419
Other revenues from managed and franchised properties ................... 1,585 1,070 983
5,979 5,977 5,368
Costs and Expenses
Owned, leased and consolidated joint venture hotels ...................... 2,023 2,634 2,519
Vacation ownership and residential ................................... 736 661 488
Selling, general, administrative and other .............................. 470 370 331
Restructuring and other special charges (credits), net ..................... 20 13 (37)
Depreciation ................................................... 280 387 413
Amortization ................................................... 26 20 18
Other expenses from managed and franchised properties ................... 1,585 1,070 983
5,140 5,155 4,715
Operating income ............................................... 839 822 653
Gain on sale of VOI notes receivable ................................. — 25 14
Equity earnings and gains and losses from unconsolidated ventures, net ....... 61 64 32
Interest expense, net of interest income of $29, $19 and $3................. (215) (239) (254)
Loss on asset dispositions and impairments, net ......................... (3) (30) (33)
Income from continuing operations before taxes and minority equity .......... 682 642 412
Income tax benefit (expense) ....................................... 434 (172) (43)
Tax expense on repatriation of foreign earnings under the American Jobs
Creation Act of 2004 ........................................... — (47) —
Minority equity in net income ...................................... (1) — —
Income from continuing operations .................................. 1,115 423 369
Discontinued operations:
Loss from operations, net of tax benefit of $0, $(1) and $0 ............... — (1) —
(Loss) gain on dispositions, net of tax expense (benefit) of $2, $0 and $(10) . . (2) — 26
Cumulative effect of accounting change, net of tax ....................... (70) — —
Net income .................................................... $1,043 $ 422 $ 395
Earnings (Losses) Per Share — Basic
Continuing operations ............................................ $ 5.25 $ 1.95 $ 1.78
Discontinued operations ........................................... (0.01) — 0.13
Cumulative effect of accounting change ............................... (0.33) — —
Net income .................................................... $ 4.91 $ 1.95 $ 1.91
Earnings (Losses) Per Share — Diluted
Continuing operations ............................................ $ 5.01 $ 1.88 $ 1.72
Discontinued operations ........................................... (0.01) — 0.12
Cumulative effect of accounting change ............................... (0.31) — —
Net income .................................................... $ 4.69 $ 1.88 $ 1.84
Weighted average number of Shares .................................. 213 217 207
Weighted average number of Shares assuming dilution .................... 223 225 215
Distributions and dividends declared per Share .......................... $ 0.84 $ 0.84 $ 0.84
The accompanying notes to financial statements are an integral part of the above statements.
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