EX-12 3 dex12.htm STATEMENT OF COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES Statement of Computation of Ratio of Earnings to Fixed Charges

Exhibit 12

 

MARRIOTT INTERNATIONAL, INC.

COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

 

     Thirty-Six Weeks Ended
  

($ in millions, except ratio)

 

    September 9,
2005
     September 10,
2004
  

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

    $ 417     $ 455  

(Income) loss related to equity method investees

      (18 )     37  
    
 
       399       492  

Add/(deduct):

                 

Fixed charges

      149       136  

Interest capitalized

      (18 )     (10 )

Distributed income of equity method investees

      18       6  

Minority interest in pre-tax loss

      32       30  
    
 

Earnings available for fixed charges

    $ 580     $ 654  
    
 

Fixed charges:

                 

Interest expensed and capitalized (2)

   $ 87     $ 79  

Estimate of interest within rent expense

      62       57  
    
 

Total fixed charges

    $ 149     $ 136  
    
 

Ratio of earnings to fixed charges

      3.9       4.8  
(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 $115 million, and net earn-out payments received of $20 million for the thirty-six weeks ended September 9, 2005; and 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.

 

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

 

 

 

Exhibit 12

 

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