Starwood 2008 Annual Report Download - page 123

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STARWOOD HOTELS & RESORTS WORLDWIDE, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
2008 2007 2006
Year Ended December 31,
(In millions)
Operating Activities
Net income .................................................................... $329 $ 542 $1,043
Adjustments to net income:
Discontinued operations:
(Gain) loss on dispositions, net ..................................................... (75) — 2
Other adjustments relating to discontinued operations. ....................................... — 1 —
Cumulative effect of accounting change ................................................. — — 70
Stock-based compensation expense . . . ................................................. 68 99 103
Excess stock-based compensation tax benefit . . ............................................ (16) (46) (87)
Depreciation and amortization . ...................................................... 323 306 306
Amortization of deferred loan costs . . . ................................................. 5 4 5
Non-cash portion of restructuring and other special charges (credits), net ............................. 74 48 (7)
Non-cash foreign currency (gains) losses, net . . ............................................ (5) 11 (8)
Amortization of deferred gains . ...................................................... (83) (81) (62)
Provision for doubtful accounts ...................................................... 64 43 25
Minority equity in net income . ...................................................... — 1 —
Distributions in excess (deficit) of equity earnings ........................................... 21 10 (30)
Gain on sale of VOI notes receivable . . ................................................. (4) (2) (18)
Loss on asset dispositions and impairments, net ............................................ 98 44 3
Non-cash portion of income tax expense (benefit) ........................................... 24 (142) (620)
Changes in working capital:
Restricted cash . ............................................................... 102 134 (35)
Accounts receivable . . . .......................................................... 34 (34) 49
Inventories ................................................................... (280) (143) (82)
Prepaid expenses and other . . . ...................................................... 2 (2) (11)
Accounts payable and accrued expenses ................................................. 85 177 12
Accrued income taxes . . .......................................................... (22) 210 (64)
VOI notes receivable activity, net . ...................................................... (150) (209) (109)
Other, net . .................................................................... 52 (87) 15
Cash from operating activities . ...................................................... 646 884 500
Investing Activities
Purchases of plant, property and equipment ................................................ (476) (384) (371)
Proceeds from asset sales, net . . . ...................................................... 320 133 1,515
Issuance of notes receivable .......................................................... (2) (10) (19)
Collection of notes receivable . . . ...................................................... 5 55 114
Acquisitions, net of acquired cash ...................................................... — (74) (25)
Purchases of investments . . .......................................................... (37) (49) (61)
Proceeds from investments. .......................................................... 39 112 252
Other . . . .................................................................... (21) 2 (3)
Cash (used for) from investing activities ................................................. (172) (215) 1,402
Financing Activities
Revolving credit facility and short-term borrowings (repayments), net . . . .............................. (570) 341 73
Long-term debt issued . . . .......................................................... 986 1,400 2
Long-term debt repaid . . . .......................................................... (4) (799) (1,534)
Dividends/distributions paid .......................................................... (172) (90) (276)
Proceeds from stock option exercises . . . ................................................. 120 190 380
Excess stock based compensation tax benefit ................................................ 16 46 87
Share repurchases . ............................................................... (593) (1,787) (1,287)
Other, net . .................................................................... (26) (13) (80)
Cash used for financing activities ..................................................... (243) (712) (2,635)
Exchange rate effect on cash and cash equivalents ............................................ 7 11 19
Increase (Decrease) in cash and cash equivalents . ............................................ 238 (32) (714)
Cash and cash equivalents — beginning of period . ............................................ 151 183 897
Cash and cash equivalents — end of period ................................................. $389 $ 151 $ 183
Supplemental Disclosures of Cash Flow Information
Cash paid during the period for:
Interest . .................................................................... $186 $ 164 $ 247
Income taxes, net of refunds . . ...................................................... $ 58 $ 128 $ 249
The accompanying notes to financial statements are an integral part of the above statements.
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