Marriott International (MAR) 8-K Other events

Exhibit 99.2

November 11, 2003

MARRIOTT INTERNATIONAL, INC.

Non-GAAP Financial Measure Reconciliation

Timeshare Return on Invested Capital

($ in millions)

	1999			2000			2001			2002			2003 E
Timeshare financial results	$	123		$	138		$	147		$	183		$	147
Interval International gain1		—			—			—			(44	)		—
Timeshare capitalized interest		8			21			30			23			22
Earnings before interest expense and income taxes	$	131		$	159		$	177		$	162		$	169
Average Capital Investment	$	1,105		$	1,336		$	1,748		$	2,050		$	2,178
Return on invested capital2		12	%		12	%		10	%		8	%		8	%

¹ Adjustment reflects a non-recurring gain related to the sale of our investment in Interval International.

² Return on invested capital is a financial measure that is not presented in accordance with accounting principles generally accepted in the United States. We consider return on invested capital to be a meaningful indicator of our operating performance because it measures how effectively we use the money invested in our timeshare operations. Timeshare financial results as adjusted is a meaningful indicator of timeshare performance because it reflects that portion of our financial results which is recurring and as such is useful for comparability purposes and measuring the Company's trends. However, return on invested capital and financial results as adjusted should not be considered an alternative to net income, income from continuing operations or any other operating measure prescribed by accounting principles generally accepted in the United States.

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MARRIOTT INTERNATIONAL, INC.

Non-GAAP Financial Measure Reconciliation

Adjusted Financial Results and Earnings per Share from Continuing Operations

($ in millions)

	FY 2001
	As Reported			Restructuring Costs1			Other Charges 2			As Adjusted 4
FINANCIAL RESULTS
Full-Service	$	294		$	26		$	58		$	378
Select-Service		145			5			8			158
Extended-Stay		55			11			5			71
Core Lodging Total		494			42			71			607
Timeshare		147			2			—			149
Total Lodging		641			44			71			756
Interest Expense		(109	)		—			—			(109	)
Interest Income		94			—			6			100
Provision for Loan Losses		(48	)		—			43			(5	)
Corporate Expenses		(139	)		—			22			(117	)
Restructuring Costs		(18	)		18			—			—
Income from Continuing Operations before Income Taxes		421			62			142			625
Income Tax Provision		(152	)		(23	)		(52	)		(227	)
Income from Continuing Operations	$	269		$	39		$	90		$	398
Diluted earnings per share from continuing operations3	$	1.05								$	1.54
Diluted Shares		256.7									260.8

¹ Adjustment reflects non-recurring restructuring costs, as noted in our fiscal 2002 Form 10-K.

² Adjustment reflects non-recurring other charges, as noted in our fiscal 2002 Form 10-K.

³ Adjusted earnings per share from continuing operations is a financial measure that is not presented in accordance with accounting principles generally accepted in the United States. We consider adjusted earnings per share from continuing operations to be a meaningful indicator of our operating performance because it reflects that portion of our earnings per share from continuing operations which is recurring and as such is useful for comparability purposes and measuring the Company’s financial trends. However, adjusted earnings per share from continuing operations should not be considered an alternative to earnings per share from continuing operations or any other operating measure prescribed by accounting principles generally accepted in the United States.

⁴ Adjusted financial results is a financial measure that is not presented in accordance with accounting principles generally accepted in the United States. We consider adjusted financial results to be a meaningful indicator of our operating performance because it reflects that portion of our financial results which is recurring and as such is useful for comparability purposes and measuring the Company’s trends. However, adjusted financial results should not be considered an alternative to net income, financial results, operating profit, or any other operating measure prescribed by accounting principles generally accepted in the United States.

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MARRIOTT INTERNATIONAL, INC.

Non-GAAP Financial Measure Reconciliation

Adjusted Financial Results and Earnings per Share from Continuing Operations

($ in millions)

	FY 2002
	As Reported			Goodwill Write-down 1			Interval International Gain2			As Adjusted 4
FINANCIAL RESULTS
Lodging
Full-Service	$	397		$	—		$	—		$	397
Select-Service		130			—			—			130
Extended-Stay		(3	)		50			—			47
Core Lodging Total		524			50			—			574
Timeshare		183			—			(44	)		139
Total Lodging		707			50			(44	)		713
Synthetic Fuel		(134	)		—			—			(134	)
		573			50			(44	)		579
Interest Expense		(86	)		—			—			(86	)
Interest Income		122			—			—			122
Provision for Loan Losses		(12	)		—			—			(12	)
Corporate Expenses		(126	)		—			—			(126	)
Income from Continuing Operations before Income Taxes		471			50			(44	)		477
Income Tax (Provision)/Benefit		(32	)		(18	)		15			(35	)
Income from Continuing Operations	$	439		$	32		$	(29	)	$	442
Diluted earnings per share from continuing operations3	$	1.74								$	1.75
Diluted Shares		254.6									254.6

¹ Adjustment reflects a non-recurring write-down of acquisition goodwill associated with our executive housing business, as noted in our fiscal 2002 Form 10-K.

² Adjustment reflects a non-recurring gain related to the sale of our investment in Interval International, as noted in our fiscal 2002 Form 10-K.

³ Adjusted earnings per share from continuing operations is a financial measure that is not presented in accordance with accounting principles generally accepted in the United States. We consider adjusted earnings per share from continuing operations to be a meaningful indicator of our operating performance because it reflects that portion of our earnings per share from continuing operations which is recurring and as such is useful for comparability purposes and measuring the Company’s financial trends. However, adjusted earnings per share from continuing operations should not be considered an alternative to earnings per share from continuing operations or any other operating measure prescribed by accounting principles generally accepted in the United States.

⁴ Adjusted financial results is a financial measure that is not presented in accordance with accounting principles generally accepted in the United States. We consider adjusted financial results to be a meaningful indicator of our operating performance because it reflects that portion of our financial results which is recurring and as such is useful for comparability purposes and measuring the Company’s trends. However, adjusted financial results should not be considered an alternative to net income, financial results, operating profit, or any other operating measure prescribed by accounting principles generally accepted in the United States.

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MARRIOTT INTERNATIONAL, INC.

Non-GAAP Financial Measure Reconciliation

Earnings Before Interest Expense, Taxes, Depreciation and

Amortization from continuing operations²

($ in millions)

	Q4 2002			Q1 2003			Q2 2003			Q3 2003		LTM 1
Income from continuing operations	$	116		$	87		$	126		$	93	$	422
Depreciation		38			29			27			30		124
Amortization		10			5			7			7		29
Interest expense		27			26			25			26		104
Income tax (benefit)/provision		(8	)		(40	)		(16	)		33		(31	)
EBITDA from continuing operations2	$	183		$	107		$	169		$	189	$	648

¹ Reflects the four quarters ended September 12, 2003.

² Earnings before interest expense, income taxes, depreciation and amortization (EBITDA) from continuing operations is a financial measure that is not presented in accordance with accounting principles generally accepted in the United States. We consider EBITDA from continuing operations to be an indicator of operating performance, which can be used to measure our ability to service debt, fund capital expenditures and expand our business. However, EBITDA from continuing operations is not an alternative to net income, financial results, or any other operating measure prescribed by accounting principles generally accepted in the United States.

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MARRIOTT INTERNATIONAL, INC.

Detail

Timeshare Cash from Operations

($ in millions)

	2000			2001			2002			2003E			2006E
Timeshare financial results	$	138		$	147		$	183		$	147		$	287
Gain on sale1		—			—			(44	)		—			—
Tax expense2		(51	)		(53	)		(48	)		(51	)		(102	)
Timeshare operating activity, net		(195	)		(358	)		(63	)		(114	)		36
Depreciation and amortization		22			34			38			44			49
Timeshare cash (used in) provided by operations	$	(86	)	$	(230	)	$	66		$	26		$	270

¹ The gain on sale is not an operating activity and therefore is deducted. The proceeds from the sale are included in investing activities on the statement of cash flows.

² Tax expense is computed using the Company’s core tax rates for the respective years and assumes the taxes are paid in cash at the time the tax expense is incurred.

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