Exhibit 12
MARRIOTT INTERNATIONAL, INC.
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
Twelve Weeks Ended | ||||||||
($ in millions, except ratio) | March 23, 2007 | March 24, 2006 | ||||||
Income from continuing operations before income taxes and minority interest(1) | $ | 196 | $ | 220 | ||||
(Income) loss related to equity method investees | (2 | ) | 3 | |||||
194 | 223 | |||||||
Add/(deduct): | ||||||||
Fixed charges | 64 | 52 | ||||||
Interest capitalized | (9 | ) | (6 | ) | ||||
Distributed income of equity method investees | 4 | 3 | ||||||
Minority interest in pre-tax loss | — | 6 | ||||||
Earnings available for fixed charges | $ | 253 | $ | 278 | ||||
Fixed charges: | ||||||||
Interest expensed and capitalized(2) | $ | 42 | $ | 33 | ||||
Estimate of interest within rent expense | 22 | 19 | ||||||
Total fixed charges | $ | 64 | $ | 52 | ||||
Ratio of earnings to fixed charges | 4.0 | 5.3 |
(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 $36 million, net earn-out payments made of $12 million, and interest expense of $6 million for the twelve weeks ended March 23, 2007; and an operating loss of $27 million and net earn-out payments made of $4 million for the twelve weeks ended March 24, 2006. |
(2) | “Interest expensed and capitalized” includes amortized premiums, discounts, and capitalized expenses related to indebtedness. |
Exhibit 12
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