Marriott International (MAR) 10-Q 2004 Q3 Quarterly report

Exhibit 12

MARRIOTT INTERNATIONAL, INC.

COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

	Thirty-Six Weeks Ended
($ in millions, except ratio)	September 10, 2004			September 12, 2003
Income from continuing operations before income taxes and minority interest(1)	$	455		$	263
Loss (income) related to equity method investees		37			1
		492			264
Add/(deduct):
Fixed charges		115			128
Interest capitalized		(10	)		(18	)
Distributed income of equity method investees		6			17
Minority interest in pre-tax loss		30			20
Earnings available for fixed charges	$	633		$	411
Fixed charges:
Interest expensed and capitalized(2)	$	79		$	95
Estimate of interest within rent expense		36			33
Total fixed charges	$	115		$	128
Ratio of earnings to fixed charges		5.5			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: equity in losses of $28 million, an operating loss of $61 million, and net earn-out payments received of $28 million for the thirty-six weeks ended September 10, 2004; and an operating loss of $104 million for the thirty-six weeks ended September 12, 2003.

⁽²⁾ “Interest expensed and capitalized” includes amortized premiums, discounts and capitalized expenses related to indebtedness.

Exhibit 12

1