Exhibit 12
MARRIOTT INTERNATIONAL, INC.
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
Fiscal year | ||||||||||||||||||||
($ in millions, except ratio)
| 2004 | 2003 | 2002 | 2001 | 2000 | |||||||||||||||
Income from continuing operations before income taxes and minority interest(1) | $ | 654 | $ | 488 | $ | 471 | $ | 421 | $ | 771 | ||||||||||
Loss related to equity method investees | 42 | 7 | 6 | 14 | 6 | |||||||||||||||
696 | 495 | 477 | 435 | 777 | ||||||||||||||||
Add/(deduct): | ||||||||||||||||||||
Fixed charges | 197 | 211 | 213 | 268 | 240 | |||||||||||||||
Interest capitalized | (16 | ) | (25 | ) | (43 | ) | (61 | ) | (52 | ) | ||||||||||
Distributed income of equity method investees | 9 | 30 | 27 | 4 | 2 | |||||||||||||||
Minority interest in pre-tax loss | 40 | 39 | — | — | — | |||||||||||||||
Earnings available for fixed charges | $ | 926 | $ | 750 | $ | 674 | $ | 646 | $ | 967 | ||||||||||
Fixed charges: | ||||||||||||||||||||
Interest expensed and capitalized(2) | $ | 115 | $ | 135 | $ | 129 | $ | 170 | $ | 152 | ||||||||||
Estimate of interest within rent expense | 82 | 76 | 84 | 98 | 88 | |||||||||||||||
Total fixed charges | $ | 197 | $ | 211 | $ | 213 | $ | 268 | $ | 240 | ||||||||||
Ratio of earnings to fixed charges | 4.7 | 3.6 | 3.2 | 2.4 | 4.0 |
(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 $98 million and equity in losses of $28 million, partially offset by net earn-out payments received of $28 million for the year ended December 31, 2004; an operating loss of $104 million and equity in earnings of $10 million for the year ended January 2, 2004; and an operating loss of $134 million for the year ended January 3, 2003. |
(2) | “Interest expensed and capitalized” includes amortized premiums, discounts and capitalized expenses related to indebtedness. |
Exhibit 12
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