Starwood 2006 Annual Report Download - page 68

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STARWOOD HOTELS & RESORTS WORLDWIDE, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In millions)
2006 2005 2004
Year Ended
December 31,
Operating Activities
Net income . ................................................................. $1,043 $ 422 $ 395
Adjustments to net income:
Discontinued operations:
Loss (gain) on dispositions, net .................................................. 2 — (26)
Other adjustments relating to discontinued operations . ................................... — 11 1
Cumulative effect of accounting change . ............................................. 70 — —
Stock-based compensation expense ................................................. 103 31 16
Excess stock-based compensation tax benefit . . . ........................................ (87) — —
Depreciation and amortization . . . .................................................. 306 407 431
Amortization of deferred loan costs ................................................. 5 12 12
Non-cash portion of restructuring and other special charges (credits), net ......................... (7) (3) (37)
Non-cash foreign currency losses (gains), net . . . ........................................ (8) 2 (9)
Provision for doubtful accounts . . .................................................. 25 6 25
Equity earnings, net of distributions ................................................. (30) (7) 31
Gain on sale of VOI notes receivable . . . ............................................. (17) (25) (14)
Loss on asset dispositions and impairments, net . ........................................ 3 30 33
Non-cash portion of income tax (benefit) expense ........................................ (620) (110) 31
Changes in working capital:
Restricted cash. . . ............................................................ (35) 50 (257)
Accounts receivable ........................................................... 49 (152) (67)
Inventories ................................................................. (82) 105 (22)
Prepaid expenses and other . . . .................................................... (11) (8) (52)
Accounts payable and accrued expenses . ............................................. 12 157 118
Accrued income taxes . . . ....................................................... (64) (135) (24)
VOI notes receivable activity, net . . .................................................. (138) (40) (114)
Other, net. . . ................................................................. (19) 11 107
Cash from operating activities . . . .................................................. 500 764 578
Investing Activities
Purchases of plant, property and equipment . ............................................. (371) (464) (333)
Proceeds from asset sales, net ...................................................... 1,515 510 74
Collection (issuance) of notes receivable, net ............................................. 95 11 (2)
Acquisitions, net of acquired cash . . .................................................. (25) (242) (65)
Proceeds from (purchases of) investments . . ............................................. 191 47 (73)
Proceeds from (acquisition of) senior debt . ............................................. — 221 (4)
Other, net. . . ................................................................. (3) 2 (12)
Cash from (used for) investing activities . ............................................. 1,402 85 (415)
Financing Activities
Revolving credit facility and short-term borrowings (repayments), net . . . ......................... 73 333 (20)
Long-term debt issued ........................................................... 2 9 300
Long-term debt repaid ........................................................... (1,534) (583) (451)
Distributions paid . . ............................................................ (276) (176) (172)
Proceeds from employee stock option exercises . . . ........................................ 380 405 379
Excess stock-based compensation tax benefit ............................................. 87 — —
Share repurchases . . ............................................................ (1,287) (228) (310)
Other, net. . . ................................................................. (80) (13) 1
Cash used for financing activities. .................................................. (2,635) (253) (273)
Exchange rate effect on cash and cash equivalents . ........................................ 19 (25) 9
Increase (decrease) in cash and cash equivalents . . ........................................ (714) 571 (101)
Cash and cash equivalents — beginning of period . . ........................................ 897 326 427
Cash and cash equivalents — end of period . ............................................. $ 183 $897 $326
Supplemental Disclosures of Cash Flow Information
Cash paid during the period for:
Interest . . . ................................................................. $ 247 $274 $293
Income taxes, net of refunds ...................................................... $ 249 $447 $ 21
The accompanying notes to financial statements are an integral part of the above statements.
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