Exhibit 12
MARRIOTT INTERNATIONAL, INC.
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
Twenty-Four Weeks Ended | ||||||||
($ in millions, except ratio) | June 16, 2006 | June 17, 2005 | ||||||
Income before income taxes, minority interest and cumulative effect of change in accounting principle(1) | $ | 491 | $ | 254 | ||||
Income related to equity method investees | (3 | ) | (1 | ) | ||||
488 | 253 | |||||||
Add/(deduct): | ||||||||
Fixed charges | 106 | 94 | ||||||
Interest capitalized | (12 | ) | (11 | ) | ||||
Distributed income of equity method investees | 9 | 16 | ||||||
Minority interest in pre-tax loss | 6 | 14 | ||||||
Earnings available for fixed charges | $ | 597 | $ | 366 | ||||
Fixed charges: | ||||||||
Interest expensed and capitalized(2) | $ | 69 | $ | 56 | ||||
Estimate of interest within rent expense | 37 | 38 | ||||||
Total fixed charges | $ | 106 | $ | 94 | ||||
Ratio of earnings to fixed charges | 5.6 | 3.9 |
(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 $45 million, net earn-out payments made of $1 million, and interest income of $2 million for the twenty-four weeks ended June 16, 2006; and an operating loss of $81 million, and net earn-out payments made of $1 million for the twenty-four weeks ended June 17, 2005. |
(2) | “Interest expensed and capitalized” includes amortized premiums, discounts and capitalized expenses related to indebtedness. |
Exhibit 12
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