EX-12 3 dex12.htm EXHIBIT 12 EXHIBIT 12

Exhibit 12

 

MARRIOTT INTERNATIONAL, INC.

COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

 

     Fiscal year
  

($ in millions, except ratio)

 

    2004
     2003
     2002
     2001
     2000
  

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

    $ 654     $ 488     $ 471     $ 421     $ 771  

Loss related to equity method investees

      42       7       6       14       6  
    
 
 
 
 
       696       495       477       435       777  

Add/(deduct):

                                         

Fixed charges

      197       211       213       268       240  

Interest capitalized

      (16 )     (25 )     (43 )     (61 )     (52 )

Distributed income of equity method investees

      9       30       27       4       2  

Minority interest in pre-tax loss

      40       39       —         —         —    
    
 
 
 
 

Earnings available for fixed charges

    $ 926     $ 750     $ 674     $ 646     $ 967  
    
 
 
 
 

Fixed charges:

                                         

Interest expensed and capitalized (2)

    $ 115     $ 135     $ 129     $ 170     $ 152  

Estimate of interest within rent expense

      82       76       84       98       88  
    
 
 
 
 

Total fixed charges

    $ 197     $ 211     $ 213     $ 268     $ 240  
    
 
 
 
 

Ratio of earnings to fixed charges

      4.7       3.6       3.2       2.4       4.0  
(1) Reflected in income from continuing operations before income taxes and minority interest are the following items associated with the synthetic fuel operation: an operating loss of $98 million and equity in losses of $28 million, partially offset by net earn-out payments received of $28 million for the year ended December 31, 2004; an operating loss of $104 million and equity in earnings of $10 million for the year ended January 2, 2004; and an operating 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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