Starwood 2007 Annual Report Download - page 124

STARWOOD HOTELS & RESORTS WORLDWIDE, INC.
CONSOLIDATED STATEMENTS OF INCOME
2007 2006 2005
Year Ended December 31,
(In millions, except per Share
data)
Revenues
Owned, leased and consolidated joint venture hotels ...................... $2,429 $2,692 $3,517
Vacation ownership and residential sales and services (including note sale gains
of $0 in 2007 and $17 in 2006) ................................... 1,025 1,005 889
Management fees, franchise fees and other income ....................... 839 697 501
Other revenues from managed and franchised properties ................... 1,860 1,585 1,070
6,153 5,979 5,977
Costs and Expenses
Owned, leased and consolidated joint venture hotels ...................... 1,805 2,023 2,634
Vacation ownership and residential ................................... 758 736 661
Selling, general, administrative and other .............................. 513 470 370
Restructuring and other special charges, net ............................ 53 20 13
Depreciation ................................................... 280 280 387
Amortization ................................................... 26 26 20
Other expenses from managed and franchised properties ................... 1,860 1,585 1,070
5,295 5,140 5,155
Operating income ............................................... 858 839 822
Gain on sale of VOI notes receivable ................................. — — 25
Equity earnings and gains and losses from unconsolidated ventures, net ....... 66 61 64
Interest expense, net of interest income of $21, $29 and $19 ................ (147) (215) (239)
Loss on asset dispositions and impairments, net ......................... (44) (3) (30)
Income from continuing operations before taxes and minority equity .......... 733 682 642
Income tax benefit (expense) ....................................... (189) 434 (172)
Tax expense on repatriation of foreign earnings under the American Jobs
Creation Act of 2004 ........................................... — — (47)
Minority equity in net income ...................................... (1) (1) —
Income from continuing operations .................................. 543 1,115 423
Discontinued operations:
Loss from operations, net of tax benefit of $0, $0 and $(1) ............... — — (1)
Loss on dispositions, net of tax expense of $1, $2 and $0 ................ (1) (2) —
Cumulative effect of accounting change, net of tax ....................... — (70) —
Net income .................................................... $ 542 $1,043 $ 422
Earnings (Losses) Per Share — Basic
Continuing operations ............................................ $ 2.67 $ 5.25 $ 1.95
Discontinued operations ........................................... — (0.01) —
Cumulative effect of accounting change ............................... — (0.33) —
Net income .................................................... $ 2.67 $ 4.91 $ 1.95
Earnings (Losses) Per Share — Diluted
Continuing operations ............................................ $ 2.57 $ 5.01 $ 1.88
Discontinued operations ........................................... — (0.01) —
Cumulative effect of accounting change ............................... — (0.31) —
Net income .................................................... $ 2.57 $ 4.69 $ 1.88
Weighted average number of Shares .................................. 203 213 217
Weighted average number of Shares assuming dilution .................... 211 223 225
Distributions and dividends declared per Share .......................... $ 0.90 $ 0.84 $ 0.84
The accompanying notes to financial statements are an integral part of the above statements.
F-4