EX-12 2 dex12.htm EXHIBIT 12 Exhibit 12

Exhibit 12

MARRIOTT INTERNATIONAL, INC. (“Marriott”)

COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

 

     Fiscal Year  
($ in millions, except ratio)    2009     2008     2007     2006     2005  

(Loss) income from continuing operations before income taxes

    $ (418 )    $ 694      $ 1,137      $ 1,092      $ 829   

Loss (income) related to equity method investees

      66        (15 )      (3 )      (4 )      (36 ) 
                                        
     (352 )      679        1,134        1,088        793   

Add/(deduct):

           

Fixed charges

      250        326        336        252        216   

Interest capitalized

      (32 )      (55 )      (49 )      (32 )      (30 ) 

Distributed income of equity method investees

      9        27        29        17        21   

Pretax losses attributable to noncontrolling interests

      11        24        1        —        (2 ) 
                                        

(Losses) earnings attributable to Marriott available for fixed charges

    $ (114 )    $ 1,001      $ 1,451      $ 1,325      $ 998   
                                        

Fixed charges:

           

Interest expensed and capitalized (1)

    $ 150      $ 218      $ 233      $ 156      $ 136   

Estimate of interest within rent expense

      100        108        103        96        80   
                                        

Total fixed charges

    $ 250      $ 326      $ 336      $ 252      $ 216   
                                        

Ratio of (losses) earnings attributable to Marriott to fixed charges (2)

      —        3.1        4.3        5.3        4.6   

 

(1)

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

(2)

In 2009, earnings were inadequate to cover fixed charges by approximately $364 million.

 

Exhibit 12

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