EX-12 7 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)

 

      2005  
       2004  
       2003  
       2002  
       2001  
  

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

    $ 717     $ 654     $ 488     $ 471     $ 421  

(Income) loss related to equity method investees

      (36 )     42       7       6       14  
    
 
 
 
 
       681       696       495       477       435  

Add/(deduct):

                                         

Fixed charges

      216       197       211       213       268  

Interest capitalized

      (30 )     (16 )     (25 )     (43 )     (61 )

Distributed income of equity method investees

      21       9       30       27       4  

Minority interest in pre-tax loss

      45       40       39       —         —    
    
 
 
 
 

Earnings available for fixed charges

    $ 933     $ 926     $ 750     $ 674     $ 646  
    
 
 
 
 

Fixed charges:

                                         

Interest expensed and capitalized (2)

    $ 136     $ 115     $ 135     $ 129     $ 170  

Estimate of interest within rent expense

      80       82       76       84       98  
    
 
 
 
 

Total fixed charges

    $ 216     $ 197     $ 211     $ 213     $ 268  
    
 
 
 
 

Ratio of earnings to fixed charges

      4.3       4.7       3.6       3.2       2.4  
(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 $144 million, partially offset by earn-out payments received, net of $32 million for 2005; an operating loss of $98 million and equity in losses of $28 million, partially offset by earn-out payments received, net of $28 million for 2004; an operating loss of $104 million and equity in earnings of $10 million for 2003; and an operating loss of $134 million for 2002.
(2) “Interest expensed and capitalized” includes amortized premiums, discounts and capitalized expenses related to indebtedness.

 

Exhibit 12

 

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