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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
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FORM 10-K/A
[X] JOINT ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
FOR THE FISCAL YEAR ENDED DECEMBER 31, 1998
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
FOR THE TRANSITION PERIOD FROM ________ TO ________
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<S> <C>
COMMISSION FILE NUMBER: 1-6828 COMMISSION FILE NUMBER: 1-7959
STARWOOD HOTELS & RESORTS STARWOOD HOTELS & RESORTS WORLDWIDE, INC.
(EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS (EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS
CHARTER) CHARTER)
MARYLAND MARYLAND
(STATE OR OTHER JURISDICTION (STATE OR OTHER JURISDICTION
OF INCORPORATION OR ORGANIZATION) OF INCORPORATION OR ORGANIZATION)
52-0901263 52-1193298
(I.R.S. EMPLOYER IDENTIFICATION NO.) (I.R.S. EMPLOYER IDENTIFICATION NO.)
777 WESTCHESTER AVENUE 777 WESTCHESTER AVENUE
WHITE PLAINS, NY 10604 WHITE PLAINS, NY 10604
(ADDRESS OF PRINCIPAL EXECUTIVE (ADDRESS OF PRINCIPAL EXECUTIVE
OFFICES, INCLUDING ZIP CODE) OFFICES, INCLUDING ZIP CODE)
(914) 640-8100 (914) 640-8100
(REGISTRANT'S TELEPHONE NUMBER, (REGISTRANT'S TELEPHONE NUMBER,
INCLUDING AREA CODE) INCLUDING AREA CODE)
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SECURITIES REGISTERED PURSUANT TO SECTION 12(b) OF THE ACT:
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TITLE OF EACH CLASS NAME OF EACH EXCHANGE ON WHICH REGISTERED
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<S> <C>
COMMON STOCK, PAR VALUE $0.01 PER SHARE NEW YORK STOCK EXCHANGE
("CORPORATION SHARE"), OF STARWOOD HOTELS & PACIFIC EXCHANGE
RESORTS WORLDWIDE, INC. (THE "CORPORATION"), THE
CLASS B SHARES OF BENEFICIAL INTEREST, PAR VALUE
$0.01 PER SHARE ("CLASS B SHARES"), OF STARWOOD
HOTELS & RESORTS (THE "TRUST"), AND PREFERRED
STOCK PURCHASE RIGHTS OF THE CORPORATION, ALL OF
WHICH ARE ATTACHED AND TRADE TOGETHER WITH AS A
UNIT
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SECURITIES REGISTERED PURSUANT TO SECTION 12(g) OF THE ACT: NONE
Indicate by check mark whether the Registrants (1) have filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
Registrants were required to file such reports), and (2) have been subject to
such filing requirements for the past 90 days. Yes [X] No [ ]
Indicate by check mark if disclosure of delinquent filers pursuant to Item 405
of Regulation S-K is not contained herein, and will not be contained, to the
best of each Registrant's knowledge, in definitive proxy or information
statements incorporated by reference in Part III of this Form 10-K or any
amendment to this Form 10-K. Yes [X]
As of March 29, 1999, the aggregate market value of the Registrants' voting
and non-voting common equity held by non-affiliates (for purposes of this Joint
Annual Report only, includes all shares other than those held by the
Registrants' Directors, Trustees and executive officers) was $4,051,152,064.06.
As of March 29, 1999, the Corporation had outstanding 176,864,503 Corporation
Shares and the Trust had outstanding 176,864,503 Class B Shares and 100 Class A
shares of beneficial interest, par value $0.01 per share ("Class A Shares").
For information concerning ownership of Units, see the Proxy Statement for the
Corporation's Annual Meeting of Stockholders that is currently expected to be
held on May 29, 1999 (the "Proxy Statement"), which is incorporated by reference
under various Items of this Joint Annual Report.
DOCUMENT INCORPORATED BY REFERENCE:
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<CAPTION>
DOCUMENT WHERE INCORPORATED
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<S> <C>
Proxy Statement Part III (Items 11, 12 and 13)
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The undersigned Registrants hereby amend the following Item of their Joint
Annual Report on Form 10-K for the year ended December 31, 1998, as set forth
below:
PART IV
ITEM 14. EXHIBITS, FINANCIAL STATEMENTS, FINANCIAL STATEMENT SCHEDULES AND
REPORTS ON FORM 8-K.
Note 27 to the Financial Statements of the Registrants filed as part of the
Joint Annual Report is amended and restated in its entirety as follows:
NOTE 27. QUARTERLY RESULTS (UNAUDITED)
The following unaudited quarterly results have been restated from amounts
previously reported by the Company for the change in accounting policy related
to non-owned managed hotel revenues (see Note 1).
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THREE MONTHS ENDED
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MARCH 31 JUNE 30 SEPTEMBER 30 DECEMBER 31 YEAR
-------- ------- ------------ ----------- ------
(IN MILLIONS, EXCEPT PER UNIT DATA)
<S> <C> <C> <C> <C> <C>
1998
Revenues.................................. $ 884 $1,282 $1,277 $1,267 $4,710
Costs and expenses........................ $ 767 $1,069 $1,292 $ 981 $4,109
Income (loss) from continuing
operations.............................. $ 28 $ 70 $ (101) $ 144 $ 141
Discontinued operations................... $ 940 $ 152 $ 24 $ (2) $1,114
Net income (loss)......................... $ 968 $ 222 $ (77) $ 142 $1,255
Earnings per Unit:
Basic --
Income (loss) from continuing
operations........................... $ 0.12 $ 0.35 $(0.56) $ 0.80 $ 0.68
Discontinued operations................. $ 5.13 $ 0.80 $ 0.13 $(0.01) $ 6.02
Net income (loss)....................... $ 5.25 $ 1.15 $(0.43) $ 0.79 $ 6.70
Diluted --
Income (loss) from continuing
operations........................... $ 0.12 $ 0.35 $(0.56) $ 0.76 $ 0.67
Discontinued operations................. $ 5.05 $ 0.75 $ 0.13 $(0.01) $ 5.96
Net income (loss)....................... $ 5.17 $ 1.10 $(0.43) $ 0.75 $ 6.63
1997
Revenues.................................. $ 666 $ 768 $ 741 $ 799 $2,974
Costs and expenses........................ $ 667 $ 628 $ 608 $1,339 $3,242
Income (loss) from continuing
operations.............................. $ 95 $ 183 $ 43 $ (591) $ (270)
Discontinued operations................... $ (15) $ 14 $ 15 $ 11 $ 25
Extraordinary item........................ $ -- $ -- $ -- $ (42) $ (42)
Cumulative effect of accounting change.... $ (11) $ -- $ -- $ -- $ (11)
Net income (loss)......................... $ 69 $ 197 $ 58 $ (622) $ (298)
Earnings per Unit:
Basic --
Income (loss) from continuing
operations........................... $ 0.76 $ 1.46 $ 0.34 $(4.69) $(2.14)
Discontinued operations................. $(0.12) $ 0.11 $ 0.12 $ 0.08 $ 0.20
Extraordinary item...................... $ -- $ -- $ -- $(0.33) $(0.33)
Cumulative effect of accounting
change............................... $(0.09) $ -- $ -- $ -- $(0.09)
Net income.............................. $ 0.55 $ 1.57 $ 0.46 $(4.94) $(2.36)
Diluted --
Income (loss) from continuing
operations........................... $ 0.75 $ 1.44 $ 0.34 $(4.69) $(2.14)
Discontinued operations................. $(0.12) $ 0.11 $ 0.11 $ 0.08 $ 0.20
Extraordinary item...................... $ -- $ -- $ -- $(0.33) $(0.33)
Cumulative effect of accounting
change............................... $(0.09) $ -- $ -- $ -- $(0.09)
Net income (loss)....................... $ 0.54 $ 1.55 $ 0.45 $(4.94) $(2.36)
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SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) of the Securities
Exchange Act of 1934, the Registrant has duly caused this Report to be signed on
its behalf by the undersigned, thereunto duly authorized.
STARWOOD HOTELS & RESORTS
WORLDWIDE, INC.
By: /s/ BARRY S. STERNLICHT
------------------------------------
Barry S. Sternlicht
Chairman and Chief Executive Officer
Date: May 17, 1999
Pursuant to the requirements of the Securities Exchange Act of 1934, this
Report has been signed below by the following persons on behalf of the
Registrant in the capacities and on the dates indicated.
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<CAPTION>
SIGNATURE TITLE DATE
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<C> <S> <C>
/s/ BARRY S. STERNLICHT Chairman, Chief Executive Officer May 17, 1999
- --------------------------------------------------- and Director (Principal Executive
Barry S. Sternlicht Officer)
/s/ RONALD C. BROWN Executive Vice President and Chief May 17, 1999
- --------------------------------------------------- Financial Officer (Principal
Ronald C. Brown Financial and Accounting Officer)
/s/ BRENDA C. BARNES Director May 17, 1999
- ---------------------------------------------------
Brenda C. Barnes
/s/ JUERGEN BARTELS Director May 17, 1999
- ---------------------------------------------------
Juergen Bartels
/s/ JEAN-MARC CHAPUS Director May 17, 1999
- ---------------------------------------------------
Jean-Marc Chapus
/s/ BRUCE W. DUNCAN Director May 17, 1999
- ---------------------------------------------------
Bruce W. Duncan
Director May , 1999
- ---------------------------------------------------
Jonathan D. Eilian
/s/ MADISON F. GROSE Director May 17, 1999
- ---------------------------------------------------
Madison F. Grose
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<CAPTION>
SIGNATURE TITLE DATE
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<C> <S> <C>
/s/ ERIC HIPPEAU Director May 17, 1999
- ---------------------------------------------------
Eric Hippeau
/s/ EARLE F. JONES Director May 17, 1999
- ---------------------------------------------------
Earle F. Jones
/s/ L. DENNIS KOZLOWSKI Director May 17, 1999
- ---------------------------------------------------
L. Dennis Kozlowski
/s/ MICHAEL A. LEVEN Director May 17, 1999
- ---------------------------------------------------
Michael A. Leven
/s/ GEORGE J. MITCHELL Director May 17, 1999
- ---------------------------------------------------
George J. Mitchell
/s/ STEPHEN R. QUAZZO Director May 17, 1999
- ---------------------------------------------------
Stephen R. Quazzo
/s/ DANIEL H. STERN Director May 17, 1999
- ---------------------------------------------------
Daniel H. Stern
/s/ RAYMOND S. TROUBH Director May 17, 1999
- ---------------------------------------------------
Raymond S. Troubh
/s/ DANIEL W. YIH Director May 17, 1999
- ---------------------------------------------------
Daniel W. Yih
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SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) of the Securities
Exchange Act of 1934, the Registrant has duly caused this Report to be signed on
its behalf by the undersigned, thereunto duly authorized.
STARWOOD HOTELS & RESORTS
By: /s/ BARRY S. STERNLICHT
------------------------------------
Barry S. Sternlicht
Chairman and Chief Executive Officer
Date: May 17, 1999
Pursuant to the requirements of the Securities Exchange Act of 1934, this Report
has been signed below by the following persons on behalf of the Registrant in
the capacities and on the dates indicated.
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<CAPTION>
SIGNATURE TITLE DATE
--------- ----- ----
<C> <S> <C>
/s/ BARRY S. STERNLICHT Chairman, Chief Executive Officer May 17, 1999
- --------------------------------------------------- and Trustee (Principal Executive
Barry S. Sternlicht Officer)
/s/ RONALD C. BROWN Vice President, Chief Financial May 17, 1999
- --------------------------------------------------- Officer and Chief Accounting
Ronald C. Brown Officer (Principal Financial and
Accounting Officer)
/s/ BRENDA C. BARNES Trustee May 17, 1999
- ---------------------------------------------------
Brenda C. Barnes
/s/ JUERGEN BARTELS Trustee May 17, 1999
- ---------------------------------------------------
Juergen Bartels
/s/ JEAN-MARC CHAPUS Trustee May 17, 1999
- ---------------------------------------------------
Jean-Marc Chapus
/s/ BRUCE W. DUNCAN Trustee May 17, 1999
- ---------------------------------------------------
Bruce W. Duncan
Trustee May , 1999
- ---------------------------------------------------
Jonathan D. Eilian
/s/ MADISON F. GROSE Trustee May 17, 1999
- ---------------------------------------------------
Madison F. Grose
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<CAPTION>
SIGNATURE TITLE DATE
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<C> <S> <C>
/s/ ERIC HIPPEAU Trustee May 17, 1999
- ---------------------------------------------------
Eric Hippeau
/s/ EARLE F. JONES Trustee May 17, 1999
- ---------------------------------------------------
Earle F. Jones
/s/ L. DENNIS KOZLOWSKI Trustee May 17, 1999
- ---------------------------------------------------
L. Dennis Kozlowski
/s/ MICHAEL A. LEVEN Trustee May 17, 1999
- ---------------------------------------------------
Michael A. Leven
/s/ GEORGE J. MITCHELL Trustee May 17, 1999
- ---------------------------------------------------
George J. Mitchell
/s/ STEPHEN R. QUAZZO Trustee May 17, 1999
- ---------------------------------------------------
Stephen R. Quazzo
/s/ DANIEL H. STERN Trustee May 17, 1999
- ---------------------------------------------------
Daniel H. Stern
/s/ RAYMOND S. TROUBH Trustee May 17, 1999
- ---------------------------------------------------
Raymond S. Troubh
/s/ DANIEL W. YIH Trustee May 17, 1999
- ---------------------------------------------------
Daniel W. Yih
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