Starwood 2008 Annual Report Download - page 120

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STARWOOD HOTELS & RESORTS WORLDWIDE, INC.
CONSOLIDATED STATEMENTS OF INCOME
2008 2007 2006
Year Ended December 31,
(In millions, except per share
data)
Revenues
Owned, leased and consolidated joint venture hotels ...................... $2,259 $2,429 $2,692
Vacation ownership and residential sales and services ..................... 749 1,025 1,005
Management fees, franchise fees and other income ....................... 857 834 693
Other revenues from managed and franchised properties ................... 2,042 1,865 1,589
5,907 6,153 5,979
Cost and Expenses
Owned, leased and consolidated joint venture hotels ...................... 1,722 1,805 2,023
Vacation ownership and residential ................................... 583 758 736
Selling, general, administrative and other .............................. 477 508 466
Restructuring and other special charges, net ............................ 141 53 20
Depreciation ................................................... 291 280 280
Amortization ................................................... 32 26 26
Other expenses from managed and franchised properties ................... 2,042 1,865 1,589
5,288 5,295 5,140
Operating income ............................................... 619 858 839
Equity earnings and gains and losses from unconsolidated ventures, net ....... 16 66 61
Interest expense, net of interest income of $3, $21 and $29 ................. (207) (147) (215)
Loss on asset dispositions and impairments, net ......................... (98) (44) (3)
Income from continuing operations before taxes and minority equity . ......... 330 733 682
Income tax (expense) benefit ....................................... (76) (189) 434
Minority equity in net income ...................................... — (1) (1)
Income from continuing operations .................................. 254 543 1,115
Discontinued operations:
Gain (loss) on dispositions, net of tax expense of $54, $1 and $2 . ......... 75 (1) (2)
Cumulative effect of accounting change, net of tax ....................... — — (70)
Net income .................................................... $ 329 $ 542 $1,043
Earnings (Losses) Per Share — Basic
Continuing operations ............................................ $ 1.40 $ 2.67 $ 5.25
Discontinued operations ........................................... 0.41 — (0.01)
Cumulative effect of accounting change ............................... — — (0.33)
Net income .................................................... $ 1.81 $ 2.67 $ 4.91
Earnings (Losses) Per Share — Diluted
Continuing operations ............................................ $ 1.37 $ 2.57 $ 5.01
Discontinued operations ........................................... 0.40 — (0.01)
Cumulative effect of accounting change ............................... — — (0.31)
Net income .................................................... $ 1.77 $ 2.57 $ 4.69
Weighted average number of Shares .................................. 181 203 213
Weighted average number of Shares assuming dilution .................... 185 211 223
Distribution and dividends declared per Share........................... $ 0.90 $ 0.90 $ 0.84
The accompanying notes to financial statements are an integral part of the above statements.
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