Starwood 2008 Annual Report Download - page 122

Download and view the complete annual report

Please find page 122 of the 2008 Starwood annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 178

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154
  • 155
  • 156
  • 157
  • 158
  • 159
  • 160
  • 161
  • 162
  • 163
  • 164
  • 165
  • 166
  • 167
  • 168
  • 169
  • 170
  • 171
  • 172
  • 173
  • 174
  • 175
  • 176
  • 177
  • 178

STARWOOD HOTELS & RESORTS WORLDWIDE, INC.
CONSOLIDATED STATEMENTS OF EQUITY
Shares Amount Shares Amount Shares Amount
Additional
Paid-in
Capital
(b)
Deferred
Compensation
Accumulated
Other
Comprehensive
Loss
(a)
Retained
Earnings
Exchangeable
Units and
Class B EPS Class A EPS Shares
(In millions)
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
Net income . .............. — — — — — — — — — 542
Stock option and restricted stock
award transactions, net . . ..... — — — — 7 — 358 — — —
ESPP stock issuances ......... — — — — — — 7 — — —
Share repurchases . . ......... — — — — (29) — (1,787) — — —
Tax adjustments related to the
disposition of the Trust . ..... — — — — — — 4 — — —
FIN No. 48 implementation ..... — — — — — — — — — 35
Foreign currency translation ..... — — — — — — — — 84 —
Unrealized loss on securities, net . . — — — — — — — — (6) —
Pension adjustments . ......... — — — — — — — — 3 —
Dividends declared . ......... — — — — — — — — — (172)
Balance at December 31, 2007 . . . — — — — 191 2 868 — (147) 1,353
Net income . .............. — — — — — — — — — 329
Stock option and restricted stock
award transactions, net . . ..... — — — — 6 — 212 — — —
ESPP stock issuances ......... — — — — — — 6 — — —
Share repurchases . . ......... — — — — (14) — (593) — — —
Foreign currency translation ..... — — — — — — — — (190) —
Unrealized loss on investments . . . — — — — — — — — (2) —
Change in fair value of
derivatives .............. — — — — — — — — 6 —
Pension adjustments, net . . ..... — — — — — — — — (58) —
Dividends declared . ......... — — — — — — — — — (165)
Balance at December 31, 2008 . . . — $— — $— 183 $ 2 $ 493 $ — $(391) $1,517
(a) As of December 31, 2008, this balance is comprised of $304 million of cumulative translation adjustments, $4 unrealized net gain on
securities and $91 million of cumulative pension adjustments.
(b) Stock option and restricted stock award transactions are net of a tax benefit of $33 million, $65 million and $143 million in 2008, 2007, and
2006, 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 Note 1 for additional information on the Host Transaction.
The accompanying notes to financial statements are an integral part of the above statements.
F-6