EX-12 4 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 16, 2006     June 17, 2005  

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

    $ 491     $ 254  

Income related to equity method investees

      (3 )     (1 )
                
     488       253  

Add/(deduct):

     

Fixed charges

      106       94  

Interest capitalized

      (12 )     (11 )

Distributed income of equity method investees

      9       16  

Minority interest in pre-tax loss

      6       14  
                

Earnings available for fixed charges

    $ 597     $ 366  
                

Fixed charges:

     

Interest expensed and capitalized (2)

   $ 69     $ 56  

Estimate of interest within rent expense

      37       38  
                

Total fixed charges

    $ 106     $ 94  
                
    

Ratio of earnings to fixed charges

      5.6       3.9  
(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 $45 million, net earn-out payments made of $1 million, and interest income of $2 million for the twenty-four weeks ended June 16, 2006; and an operating loss of $81 million, and net earn-out payments made of $1 million for the twenty-four weeks ended June 17, 2005.

 

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

 

Exhibit 12

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