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

 

     Twenty-Four Weeks Ended  
($ in millions, except ratio)    June 15, 2007     June 16, 2006  

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

    $ 445     $ 491  

Income related to equity method investees

      (1 )     (3 )
                
     444       488  

Add/(deduct):

     

Fixed charges

      149       106  

Interest capitalized

      (20 )     (12 )

Distributed income of equity method investees

      11       9  

Minority interest in pre-tax loss

      —         6  
                

Earnings available for fixed charges

    $ 584     $ 597  
                

Fixed charges:

     

Interest expensed and capitalized (2) 

    $ 105     $ 69  

Estimate of interest within rent expense

      44       37  
                

Total fixed charges

    $ 149     $ 106  
                

Ratio of earnings to fixed charges

      3.9       5.6  

(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 $71 million, net earn-out payments made of $28 million, and interest expense of $9 million for the twenty-four weeks ended June 15, 2007; and 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.

(2)

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

Exhibit 12