Exhibit 12
MARRIOTT INTERNATIONAL, INC.
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
Twenty-Four Weeks Ended | ||||||||
($ in millions, except ratio)
| June 17, 2005 | June 18, 2004 | ||||||
Income before income taxes and minority interest(1) | $ | 254 | $ | 311 | ||||
(Income) loss related to equity method investees | (1 | ) | 29 | |||||
253 | 340 | |||||||
Add/(deduct): | ||||||||
Fixed charges | 94 | 91 | ||||||
Interest capitalized | (11 | ) | (7 | ) | ||||
Distributed income of equity method investees | 16 | 2 | ||||||
Minority interest in pre-tax loss | 14 | 14 | ||||||
Earnings available for fixed charges | $ | 366 | $ | 440 | ||||
Fixed charges: | ||||||||
Interest expensed and capitalized(2) | $ | 56 | $ | 53 | ||||
Estimate of interest within rent expense | 38 | 38 | ||||||
Total fixed charges | $ | 94 | $ | 91 | ||||
Ratio of earnings to fixed charges | 3.9 | 4.8 |
(1) | Reflected in income before income taxes and minority interest are the following items associated with the synthetic fuel operation: an operating loss of $81 million, and net earn-out payments made of $1 million for the twenty-four weeks ended June 17, 2005; and equity in losses of $28 million, an operating loss of $30 million, and net earn-out payments received of $9 million for the twenty-four weeks ended June 18, 2004. |
(2) | “Interest expensed and capitalized” includes amortized premiums, discounts and capitalized expenses related to indebtedness. |
Exhibit 12
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