Starwood 2006 Annual Report Download - page 67

STARWOOD HOTELS & RESORTS WORLDWIDE, INC.
CONSOLIDATED STATEMENTS OF EQUITY
(In millions)
Shares Amount Shares Amount Shares Amount
Additional
Paid-in
Capital
(b)
Deferred
Compensation
Accumulated
Other
Comprehensive
Loss
(a)
Retained
Earnings
(Accumulated
Deficit)
Exchangeable
units and
Class B EPS Class A EPS Shares
Balance at December 31, 2003 .................................. 1 $31 — $— 202 $4 $4,952 $ (9) $(334) $ (287)
Net income ............................................ — — — — — — — — — 395 Stock option and restricted stock award transactions, net .................. — — — — 14 — 456 (5) — — ESPP stock issuances ...................................... — — — — — — 12 — — — Share repurchases ........................................ — — — — (7) — (310) — — —
Conversion or redemption and cancellation of Class A EPS, Class B EPS and
Partnership Units ....................................... (1) (31) 1 — — — 11 — — —
Foreign currency translation .................................. — — — — — — — — 79 — Minimum pension liability adjustment............................. — — — — — — — — (4) — Unrealized gain on securities, net ............................... — — — — — — — — 4 — Distributions declared ...................................... — — — — — — — — — (176)
Balance at December 31, 2004 .................................. — — 1 — 209 4 5,121 (14) (255) (68)
Net income ............................................ — — — — — — — — — 422 Stock option and restricted stock award transactions, net .................. — — — — 12 — 542 (39) — —
ESPP stock issuances ...................................... — — — — — — 12 — — — Share repurchases ........................................ — — — — (4) — (253) — — —
Conversion or redemption and cancellation of Class A EPS, Class B EPS and
Partnership Units ....................................... — — — — — — (10) — — —
Foreign currency translation .................................. — — — — — — — — (60) —
Minimum pension liability adjustment............................. — — — — — — — — (6) — Unrealized loss on securities, net................................ — — — — — — — — (1) — Distributions declared ...................................... — — — — — — — — — (184)
Balance at December 31, 2005 .................................. — — 1 — 217 4 5,412 (53) (322) 170
Net income ............................................ — — — — — — — — — 1,043
Implementation of SFAS No. 123(R) ............................. — — — — — — (53) 53 — — Disposition of the Trust
(c)
.................................... — — — — — — (2,368) — — (83)
Stock option and restricted stock award transactions, net .................. — — — — 15 — 588 — — — ESPP stock issuances ...................................... — — — — — — 7 — — — Share repurchases ........................................ — — — — (22) — (1,263) — — —
Redemption of convertible debt ................................ — — — — 3 — — — — — Conversion or redemption and cancellation of Class A EPS, Class B EPS and
Partnership Units ....................................... — — (1) — — (2) (37) — — —
Foreign currency translation .................................. — — — — — — — — 72 — Recognition of accumulated foreign currency translation adjustments on sold hotels . . — — — — — — — — 29 — Minimum pension liability adjustment............................. — — — — — — — — 2 — Implementation of SFAS No. 158, net ............................. — — — — — — — — (8) — Unrealized loss on securities, net................................ — — — — — — — — (1) — Distributions declared ...................................... — — — — — — — — — (182)
Balance at December 31, 2006 .................................. — $— — $— 213 $2 $2,286 $ — $(228) $ 948
(a) As of December 31, 2006, this balance is comprised of $198 million of cumulative translation adjustments, $6 million of cumulative unrealized gains on securities, including derivative instruments, and $36 million of
cumulative minimum pension liability adjustments.
(b) Stock option and restricted stock award transactions are net of a tax benefit of $143 million, $66 million and $70 million in 2006, 2005 and 2004, respectively. (c) As part of the Host Transaction, the Company sold the Class A Shares of the Trust and shareholders sold the Class B Shares of the Trust. The book value of the Trust associated with this sale was removed through retained
earnings up to the amount of retained earnings that existed at the sale date with the remaining balance reducing additional paid-in capital. See Notes 1 and 5 for additional information on the Host Transaction.
The accompanying notes to financial statements are an integral part of the above statements.
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