EX-12 7 dex12.htm EXHIBIT 12 Exhibit 12

Exhibit 12

 

MARRIOTT INTERNATIONAL, INC.

COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

 

     Thirty-Six Weeks Ended
  
($ in millions, except ratio)    September 10,
2004
     September 12,
2003
  

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

    $ 455     $ 263  

Loss (income) related to equity method investees

      37       1  
    
 
       492       264  

Add/(deduct):

                 

Fixed charges

      115       128  

Interest capitalized

      (10 )     (18 )

Distributed income of equity method investees

      6       17  

Minority interest in pre-tax loss

      30       20  
    
 

Earnings available for fixed charges

    $ 633     $ 411  
    
 

Fixed charges:

                 

Interest expensed and capitalized (2)

    $ 79     $ 95  

Estimate of interest within rent expense

      36       33  
    
 

Total fixed charges

    $ 115     $ 128  
    
 

Ratio of earnings to fixed charges

      5.5       3.2  

 

(1) Reflected in income from continuing operations before income taxes and minority interest are the following items associated with the synthetic fuel operation: equity in losses of $28 million, an operating loss of $61 million, and net earn-out payments received of $28 million for the thirty-six weeks ended September 10, 2004; and an operating loss of $104 million for the thirty-six weeks ended September 12, 2003.

 

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

 

 

Exhibit 12

 

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