EX-12 2 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

 

     Twelve Weeks Ended  

($ in millions, except ratio)

 

    March 24, 2006     March 25, 2005  

Income before income taxes, minority interest and cumulative effect of change in accounting
principle (1)

   $ 220     $ 140  

Loss related to equity method investees

      3       5  
                
     223       145  

Add/(deduct):

     

Fixed charges

      52       48  

Interest capitalized

      (6 )     (5 )

Distributed income of equity method investees

      3       11  

Minority interest in pre-tax loss

      6       10  
                

Earnings available for fixed charges

    $ 278     $ 209  
                

Fixed charges:

     

Interest expensed and capitalized (2)

   $ 33     $ 29  

Estimate of interest within rent expense

      19       19  
                

Total fixed charges

    $ 52     $ 48  
                

Ratio of earnings to fixed charges

      5.3       4.4  
(1) Reflected in income before income taxes, minority interest and cumulative effect of change in accounting principle are the following items associated with the synthetic fuel operation: an operating loss of $27 million, and net earn-out payments made of $4 million for the twelve weeks ended March 24, 2006; and an operating loss of $45 million, and net earn-out payments made of $9 million for the twelve weeks ended March 25, 2005.
(2) “Interest expensed and capitalized” includes amortized premiums, discounts and capitalized expenses related to indebtedness.

Exhibit 12

 

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