EX-12 3 dex12.htm EXHIBIT 12 EXHIBIT 12

Exhibit 12

 

MARRIOTT INTERNATIONAL, INC.

COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

($ in millions, except ratio)

 

     Fiscal year
  
     2003
     2002
     2001
     2000
     1999
  

Income from continuing operations before minority interest expense and income taxes (1)

    $ 488     $ 471     $ 421     $ 771     $ 634  

Loss related to equity method investees

      7       6       14       6       6  
    
 
 
 
 
       495       477       435       777       640  

Add/(deduct):

                                         

Fixed charges

      186       180       220       198       135  

Interest capitalized

      (25 )     (43 )     (61 )     (52 )     (33 )

Distributed income of equity method investees

      30       27       4       2       2  

Minority interest in pre-tax loss

      39       —         —         —         —    
    
 
 
 
 

Earnings available for fixed charges

    $ 725     $ 641     $ 598     $ 925     $ 744  
    
 
 
 
 

Fixed charges:

                                         

Interest expensed and capitalized (2)

    $ 135     $ 129     $ 170     $ 152     $ 94  

Estimate of interest within rent expense

      51       51       50       46       41  
    
 
 
 
 

Total fixed charges

    $ 186     $ 180     $ 220     $ 198     $ 135  
    
 
 
 
 

Ratio of earnings to fixed charges

      3.9       3.6       2.7       4.7       5.5  

 

(1) Reflected in income from continuing operations before income taxes are the following items associated with the synthetic fuel operation: a loss of $104 million and equity in earnings of $10 million for the year ended January 2, 2004; and a loss of
$134 million for the year ended January 3, 2003.

 

(2) “Interest expensed and capitalized” includes amortized premiums, discounts and capitalized expenses related to indebtedness.

 

Exhibit 12

 

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