Marriott International (MAR) 10-K 2006 FY Annual report

Exhibit 12

MARRIOTT INTERNATIONAL, INC.

COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

($ in millions, except ratio)	Fiscal Year
	2006			2005			2004			2003			2002
Income from continuing operations before income taxes and minority interest(1)	$	997		$	717		$	654		$	488		$	471
(Income) loss related to equity method investees		(3	)		(36	)		42			7			6
		994			681			696			495			477
Add/(deduct):
Fixed charges		252			216			197			211			213
Interest capitalized		(32	)		(30	)		(16	)		(25	)		(43	)
Distributed income of equity method investees		17			21			9			30			27
Minority interest in pre-tax loss		6			45			40			39			—
Earnings available for fixed charges	$	1,237		$	933		$	926		$	750		$	674
Fixed charges:
Interest expensed and capitalized(2)	$	156		$	136		$	115		$	135		$	129
Estimate of interest within rent expense		96			80			82			76			84
Total fixed charges	$	252		$	216		$	197		$	211		$	213
Ratio of earnings to fixed charges		4.9			4.3			4.7			3.6			3.2

⁽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 $76 million, interest expense of $4 million, and earn-out payments paid of $15 million for 2006; 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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