EX-12 2 dex12.htm EXHIBIT 12 EXHIBIT 12

Exhibit 12

MARRIOTT INTERNATIONAL, INC.

COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

 

($ in millions, except ratio)    Fiscal Year  
   2006     2005     2004     2003     2002  

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

    $ 997     $ 717     $ 654     $ 488     $ 471  

(Income) loss related to equity method investees

      (3 )     (36 )     42       7       6  
                                        
     994       681       696       495       477  

Add/(deduct):

           

Fixed charges

      252       216       197       211       213  

Interest capitalized

      (32 )     (30 )     (16 )     (25 )     (43 )

Distributed income of equity method investees

      17       21       9       30       27  

Minority interest in pre-tax loss

      6       45       40       39       —    
                                        

Earnings available for fixed charges

    $ 1,237     $ 933     $ 926     $ 750     $ 674  
                                        

Fixed charges:

           

Interest expensed and capitalized (2)

    $ 156     $ 136     $ 115     $ 135     $ 129  

Estimate of interest within rent expense

      96       80       82       76       84  
                                        

Total fixed charges

    $ 252     $ 216     $ 197     $ 211     $ 213  
                                        

Ratio of earnings to fixed charges

      4.9       4.3       4.7       3.6       3.2  

(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 $76 million, interest expense of $4 million, and earn-out payments paid of $15 million for 2006; 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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