EX-12 7 dex12.htm EXHIBIT 12 EXHIBIT 12

Exhibit 12

 

MARRIOTT INTERNATIONAL, INC.

COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

 

     Twenty-Four Weeks Ended
  

($ in millions, except ratio)

 

    June 17,
2005
     June 18,
2004
  

Income before income taxes and minority interest (1)

    $ 254     $ 311  

(Income) loss related to equity method investees

      (1 )     29  
    
 
       253       340  

Add/(deduct):

                 

Fixed charges

      94       91  

Interest capitalized

      (11 )     (7 )

Distributed income of equity method investees

      16       2  

Minority interest in pre-tax loss

      14       14  
    
 

Earnings available for fixed charges

    $ 366     $ 440  
    
 

Fixed charges:

                 

Interest expensed and capitalized (2)

    $ 56     $ 53  

Estimate of interest within rent expense

      38       38  
    
 

Total fixed charges

    $ 94     $ 91  
    
 

Ratio of earnings to fixed charges

      3.9       4.8  

 

(1) Reflected in income before income taxes and minority interest are the following items associated with the synthetic fuel operation: an operating loss of $81 million, and net earn-out payments made of $1 million for the twenty-four weeks ended June 17, 2005; and equity in losses of $28 million, an operating loss of $30 million, and net earn-out payments received of $9 million for the twenty-four weeks ended June 18, 2004.

 

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

 

Exhibit 12

 

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