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)    2010     2009     2008     2007     2006  

Income (loss) from continuing operations before income taxes

    $ 551      $ (418 )    $ 694      $ 1,137      $ 1,092   

Loss (income) related to equity method investees

      18        66        (15 )      (3 )      (4 ) 
                                        
     569        (352 )      679        1,134        1,088   

Add/(deduct):

           

Fixed charges

      294        250        326        336        252   

Interest capitalized

      (18 )      (32 )      (55 )      (49 )      (32 ) 

Distributed income of equity method investees

      5        9        27        29        17   

Pretax losses attributable to noncontrolling interests

      0        11        24        1        0   
                                        

Earnings (losses) attributable to Marriott available for fixed charges

    $ 850      $ (114 )    $ 1,001      $ 1,451      $ 1,325   
                                        

Fixed charges:

           

Interest expensed and capitalized (1)

    $ 198      $ 150      $ 218      $ 233      $ 156   

Estimate of interest within rent expense

      96        100        108        103        96   
                                        

Total fixed charges

    $ 294      $ 250      $ 326      $ 336      $ 252   
                                        

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

      2.9        *        3.1        4.3        5.3   

 

(1)

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

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

 

Exhibit 12