Marriott International (MAR) 10-K 2005 FY Annual report

Exhibit 12

MARRIOTT INTERNATIONAL, INC.

COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

	Fiscal Year
($ in millions, except ratio)	2005			2004			2003			2002			2001
Income from continuing operations before income taxes and minority interest(1)	$	717		$	654		$	488		$	471		$	421
(Income) loss related to equity method investees		(36	)		42			7			6			14
		681			696			495			477			435
Add/(deduct):
Fixed charges		216			197			211			213			268
Interest capitalized		(30	)		(16	)		(25	)		(43	)		(61	)
Distributed income of equity method investees		21			9			30			27			4
Minority interest in pre-tax loss		45			40			39			—			—
Earnings available for fixed charges	$	933		$	926		$	750		$	674		$	646
Fixed charges:
Interest expensed and capitalized(2)	$	136		$	115		$	135		$	129		$	170
Estimate of interest within rent expense		80			82			76			84			98
Total fixed charges	$	216		$	197		$	211		$	213		$	268
Ratio of earnings to fixed charges		4.3			4.7			3.6			3.2			2.4

⁽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 $144 million, partially offset by earn-out payments received, net of $32 million for 2005; an operating loss of $98 million and equity in losses of $28 million, partially offset by earn-out payments received, net of $28 million for 2004; an operating loss of $104 million and equity in earnings of $10 million for 2003; and an operating loss of $134 million for 2002.

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

Exhibit 12

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