Exhibit 12
MARRIOTT INTERNATIONAL, INC.
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
Twelve Weeks Ended | ||||||||
($ in millions, except ratio)
| March 24, 2006 | March 25, 2005 | ||||||
Income before income taxes, minority interest and cumulative effect of change in accounting | $ | 220 | $ | 140 | ||||
Loss related to equity method investees | 3 | 5 | ||||||
223 | 145 | |||||||
Add/(deduct): | ||||||||
Fixed charges | 52 | 48 | ||||||
Interest capitalized | (6 | ) | (5 | ) | ||||
Distributed income of equity method investees | 3 | 11 | ||||||
Minority interest in pre-tax loss | 6 | 10 | ||||||
Earnings available for fixed charges | $ | 278 | $ | 209 | ||||
Fixed charges: | ||||||||
Interest expensed and capitalized(2) | $ | 33 | $ | 29 | ||||
Estimate of interest within rent expense | 19 | 19 | ||||||
Total fixed charges | $ | 52 | $ | 48 | ||||
Ratio of earnings to fixed charges | 5.3 | 4.4 |
(1) | Reflected in income before income taxes, minority interest and cumulative effect of change in accounting principle are the following items associated with the synthetic fuel operation: an operating loss of $27 million, and net earn-out payments made of $4 million for the twelve weeks ended March 24, 2006; and an operating loss of $45 million, and net earn-out payments made of $9 million for the twelve weeks ended March 25, 2005. |
(2) | “Interest expensed and capitalized” includes amortized premiums, discounts and capitalized expenses related to indebtedness. |
Exhibit 12
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