Marriott International (MAR) 10-Q 9 Oct 09 2009 Q3 Quarterly report Financial data

Statement Of Income Alternative

Statement Of Income Alternative (Unaudited) (USD $)
In Millions, except Per Share data	3 Months Ended Sep. 11, 2009		3 Months Ended Sep. 05, 2008		9 Months Ended Sep. 11, 2009		9 Months Ended Sep. 05, 2008
REVENUES
Base management fees	$116		$143		$367		$452
Franchise fees	100		108		281		314
Incentive management fees	17		52		95		229
Owned, leased, corporate housing, and other revenue	226		260		684		849
Timeshare sales and services (including note sale losses of $1 for the thirty-six weeks ended September 11, 2009 and note sale gains of $28 for the thirty-six weeks ended September 5, 2008)	254		384		746		1,098
Cost reimbursements	1,758		2,016		5,355		6,153
Revenues, Total	2,471		2,963		7,528		9,095
OPERATING COSTS AND EXPENSES
Owned, leased, and corporate housing-direct	214		240		638		757
Timeshare-direct	238		337		737		961
Timeshare strategy-impairment charges	614		0		614		0
Reimbursed costs	1,758		2,016		5,355		6,153
Restructuring costs	9		0		44		0
General, administrative, and other	144		167		464		513
Costs and Expenses, Total	2,977		2,760		7,852		8,384
OPERATING (LOSS) INCOME	(506)		203		(324)		711
(Losses) gains and other income (including gain on debt extinguishment of $21 for the thirty-six weeks ended September 11, 2009)	(1)		7		27		19
Interest expense	(27)		(33)		(84)		(113)
Interest income	5		8		20		28
(Provision for) reversal of provision for loan losses	0		0		(43)		2
Equity in (losses) earnings	(12)		2		(50)		26
Timeshare strategy-impairment charges (non-operating)	(138)		0		(138)		0
(LOSS) INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES	(679)		187		(592)		673
Benefit (provision) for income taxes	210		(103)		133		(317)
(LOSS) INCOME FROM CONTINUING OPERATIONS	(469)		84		(459)		356
Discontinued operations, net of tax	0		0		0		3
NET (LOSS) INCOME	(469)		84		(459)		359
Add: Net losses attributable to noncontrolling interests, net of tax	3		10		7		13
NET (LOSS) INCOME ATTRIBUTABLE TO MARRIOTT	($466)		$94		($452)		$372
EARNINGS PER SHARE-Basic
(Losses) earnings from continuing operations attributable to Marriott shareholders	-1.31	[1]	0.27	[1]	-1.27	[1]	1.04	[1]
Earnings from discontinued operations attributable to Marriott shareholders	$0		$0		$0		0.01
(Losses) earnings per share attributable to Marriott shareholders	-1.31		0.27		-1.27		1.05
EARNINGS PER SHARE-Diluted
(Losses) earnings from continuing operations attributable to Marriott shareholders	-1.31	[1]	0.25	[1]	-1.27	[1]	0.99	[1]
Earnings from discontinued operations attributable to Marriott shareholders	$0		$0		$0		0.01
(Losses) earnings per share attributable to Marriott shareholders	-1.31		0.25		-1.27		$1
CASH DIVIDENDS DECLARED PER SHARE	$0		0.0869		0.0869		0.2482
[1]See Footnote No. 8, "Earnings Per Share," for income from continuing operations attributable to Marriott used to calculate earnings from continuing operations per share attributable to Marriott shareholders.

1_Statement Of Income Alternati

Statement Of Income Alternative (Parenthetical) (Unaudited) (USD $)
In Millions	3 Months Ended Sep. 11, 2009	3 Months Ended Sep. 05, 2008	9 Months Ended Sep. 11, 2009	9 Months Ended Sep. 05, 2008
Timeshare sales and services, note sale	$0	$0	($1)	$28
(Losses) gains and other income, debt extinguishment	$0	$0	$21	$0

Statement Of Financial Position

Statement Of Financial Position Classified (USD $)
In Millions	Sep. 11, 2009		Jan. 02, 2009
Current assets
Cash and equivalents	$130	[1]	$134
Accounts and notes receivable	908	[1]	898
Inventory	1,465	[1]	1,981
Current deferred taxes, net	257	[1]	186
Prepaid expenses	78	[1]	72
Other	125	[1]	135
Assets, Current, Total	2,963	[1]	3,406
Property and equipment	1,371	[1]	1,443
Intangible assets
Goodwill	875	[1]	875
Contract acquisition costs and other	734	[1]	710
Goodwill And Intangible Assets, Net, Total	1,609	[1]	1,585
Equity and cost method investments	257	[1]	346
Notes receivable
Loans to equity method investees	16	[1]	50
Loans to timeshare owners	438	[1]	607
Other notes receivable	79	[1]	173
Notes, Loans and Financing Receivable, Net, Noncurrent, Total	533	[1]	830
Other long-term receivables	79	[1]	158
Deferred taxes, net	1,012	[1]	727
Other	443	[1]	408
Assets, Total	8,267	[1]	8,903
Current liabilities
Current portion of long-term debt	137	[1]	120
Accounts payable	559	[1]	704
Accrued payroll and benefits	603	[1]	633
Liability for guest loyalty program	438	[1]	446
Timeshare segment deferred revenue	75	[1]	70
Other payables and accruals	679	[1]	560
Liabilities, Current, Total	2,491	[1]	2,533
Long-term debt	2,523	[1]	2,975
Liability for guest loyalty program	1,171	[1]	1,090
Self-insurance reserves	231	[1]	204
Other long-term liabilities	866	[1]	710
Marriott shareholders' equity
Class A Common Stock	5	[1]	5
Additional paid-in-capital	3,556	[1]	3,590
Retained earnings	3,038	[1]	3,565
Treasury stock, at cost	(5,622)	[1]	(5,765)
Accumulated other comprehensive income (loss)	8	[1]	(15)
Stockholders' Equity Attributable to Parent, Total	985	[1]	1,380
Noncontrolling interests	0	[1]	11
Total Shareholders' Equity	985	[1]	1,391
Liabilities and Stockholders' Equity, Total	$8,267	[1]	$8,903
[1] Unaudited

Statement Of Cash Flows Indirec

Statement Of Cash Flows Indirect (Unaudited) (USD $)
In Millions	9 Months Ended Sep. 11, 2009		9 Months Ended Sep. 05, 2008
OPERATING ACTIVITIES
Net (loss) income	($459)		$359
Adjustments to reconcile to cash provided by operating activities:
Depreciation and amortization	124		130
Income taxes	(195)		223
Timeshare activity, net	54		(273)
Timeshare strategy-impairment charges	752		0
Liability for guest loyalty program	68		79
Restructuring costs and other charges, net	18		0
Asset impairments and write-offs	66		27
Working capital changes and other	169		10
Net cash provided by operating activities	597		555
INVESTING ACTIVITIES
Capital expenditures	(112)		(220)
Dispositions	1		19
Loan advances	(50)		(20)
Loan collections and sales	15		33
Equity and cost method investments	(27)		(4)
Contract acquisition costs	(26)		(124)
Other	69		(51)
Net cash used in investing activities	(130)		(367)
FINANCING ACTIVITIES
Commercial paper/credit facility, net	(259)		226
Issuance of long-term debt	0		17
Repayment of long-term debt	(159)		(192)
Issuance of Class A Common Stock	10		42
Dividends paid	(63)		(84)
Purchase of treasury stock	0		(428)
Other	0		16
Net cash used in financing activities	(471)		(403)
DECREASE IN CASH AND EQUIVALENTS	(4)		(215)
CASH AND EQUIVALENTS, beginning of period	134		332
CASH AND EQUIVALENTS, end of period	$130	[1]	$117
[1] Unaudited

1.Basis of Presentation

1.Basis of Presentation
	9 Months Ended Sep. 11, 2009 USD / shares
Notes to Financial Statements [Abstract]
1.Basis of Presentation	1. Basis of Presentation The condensed consolidated financial statements present the results of operations, financial position, and cash flows of Marriott International, Inc. (Marriott, and together with its subsidiaries we, us, or the Company). In accordance with Financial Accounting Standards (FAS) No.160, Noncontrolling Interests in Consolidated Financial Statements-an Amendment of ARB No.51 (FAS No.160), references in this report to our earnings per share, net income and shareholders equity attributable to Marriott do not include noncontrolling interests (previously known as minority interests), which we report separately. Please see Footnote No.2, New Accounting Standards, for additional information on this accounting standard adopted in the 2009 first quarter. The accompanying condensed consolidated financial statements have not been audited. We have condensed or omitted certain information and footnote disclosures normally included in financial statements presented in accordance with U.S. generally accepted accounting principles (GAAP). We believe our disclosures are adequate to make the information presented not misleading. You should, however, read the condensed consolidated financial statements in conjunction with the consolidated financial statements and notes to those financial statements in our Annual Report on Form 10-K for the fiscal year ended January2, 2009 (2008 Form 10-K). Certain terms not otherwise defined in this quarterly report have the meanings specified in our 2008 Form 10-K. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the financial statements, the reported amounts of revenues and expenses during the reporting periods, and the disclosures of contingent liabilities. Accordingly, ultimate results could differ from those estimates. We have reclassified certain prior year amounts to conform to our 2009 presentation. Because we discontinued our synthetic fuel business in 2007, we have segregated the balances and activities of the synthetic fuel reportable segment and reported them as discontinued operations for all periods presented. On May1, 2009, the Board of Directors declared the issuance of a stock dividend of a 0.00369 share of common stock for each outstanding share of common stock of the Company, payable on July30, 2009, to shareholders of record on June25, 2009. On August6, 2009, the Board of Directors declared the issuance of a stock dividend of a 0.00379 share of common stock for each outstanding share of common stock of the Company, payable on September3, 2009, to shareholders of record on August20, 2009. For periods prior to the stock dividends, all share and per share data in our condensed consolidated financial statements and related notes have been retroactively adjusted to reflect the second and third quarter stock dividends using factors of 0.00360 and 0.00370, respectively, adjusted downward to reflect cash that was paid in lieu of fractional shares on July30, 2009, and September3, 2009 to shareholders as of the dates of record. Our

2.New Accounting Standards

2.New Accounting Standards
	9 Months Ended Sep. 11, 2009 USD / shares
Notes to Financial Statements [Abstract]
2.New Accounting Standards	2. New Accounting Standards Financial Accounting Standards No.141 (Revised 2007), Business Combinations (FAS No.141(R)) We adopted FAS No.141(R) on January3, 2009, the first day of our 2009 fiscal year. FAS No.141(R) significantly changed the accounting for business combinations. Under FAS No.141(R), an acquiring entity is required to recognize all the assets acquired and all the liabilities assumed in a transaction at the acquisition-date fair value with limited exceptions. Transaction costs are no longer included in the measurement of the business acquired. Instead, these costs are expensed as they are incurred. FAS No.141(R) also includes a substantial number of new disclosure requirements. FAS No.141(R) applies to business combinations for which the acquisition date is on or after the beginning of the first annual reporting period beginning on or after December15, 2008, which for us was the beginning of our 2009 fiscal year. The adoption of FAS No.141(R) did not have a material impact on our financial statements. Financial Accounting Standards No.157, Fair Value Measurements (FAS No.157) We adopted FAS No.157 on December29, 2007, the first day of our 2008 fiscal year. FASB Staff Position (FSP) FAS No.157-2, Effective Date of Financial Accounting Standards Board (FASB) Statement No.157 (FSP FAS No.157-2), amended FAS No.157 by delaying its effective date, by one year, for non-financial assets and non-financial liabilities, except for items that are recognized or disclosed at fair value in the financial statements on a recurring basis. In accordance with FSP FAS No.157-2, we adopted the provisions of FAS No.157 to non-financial assets and non-financial liabilities in the first quarter of 2009. See Footnote No.6, Fair Value Measurements, for additional information. The adoption did not have a material impact on our financial statements. Financial Accounting Standards No.160, Noncontrolling Interests in Consolidated Financial Statements-an Amendment of ARB No.51 (FAS No.160) We adopted FAS No.160 on January3, 2009, the first day of our 2009 fiscal year. FAS No.160 establishes new accounting and reporting standards for noncontrolling interests, previously known as minority interests, in a subsidiary and for the deconsolidation of a subsidiary. Specifically, this statement requires the recognition of noncontrolling interests as equity in the consolidated financial statements separate from the parents equity. The amount of net income or loss attributable to the noncontrolling interests is included in consolidated net income on the face of the income statement. FAS No.160 clarifies that changes in a parents ownership interest in a subsidiary that do not result in deconsolidation are equity transactions if the parent retains its controlling financial interest. In addition, this statement requires that a parent recognize a gain or loss in net income attributable to Marriott when a subsidiary is deconsolidated. Such gain or loss is measured using the fair value of the noncontrolling equity investment on the deconsolidation date. FAS No.160 also includes expanded disclosure requirements regarding the interests of the parent a

3.Income Taxes

3.Income Taxes
	9 Months Ended Sep. 11, 2009 USD / shares
Notes to Financial Statements [Abstract]
3.Income Taxes	3. Income Taxes Our federal income tax returns have been examined and we have settled all issues for tax years through 2004 with the exception of one 1994 transaction as discussed in Footnote No.2, Income Taxes, in our 2008 Form 10-K. We filed a refund claim relating to 2000 and 2001. The Internal Revenue Service (IRS) disallowed the claims, and in July 2009 we protested the disallowance. This issue is pending in the IRS Appeals Division. The 2005, 2006 and 2007 IRS field examinations have been completed, and the unresolved issues from those years are now with the IRS Appeals Division. The 2008 and 2009 IRS examinations are ongoing as part of the IRSs Compliance Assurance Program. Various state, local, and foreign income tax returns are also under examination by taxing authorities. We recorded $56 million of income tax expense for the thirty-six week period ended September11, 2009 (which included a $13 million income tax expense in the third quarter), primarily related to the treatment of funds received from foreign subsidiaries. We are contesting the issue with the IRS for tax years 2005, 2006, and 2007. The charges recorded in 2009 primarily relate to our ongoing current fiscal year exposure related to this issue. The balance of unrecognized tax benefits was $247 million at the end of the 2009 third quarter. For the third quarter of 2009, we increased unrecognized tax benefits by $21 million (from $226 million at the end of the 2009 second quarter) primarily representing an increase for the foreign subsidiaries issue. For the thirty-six weeks ended 2009, we increased unrecognized tax benefits by $106 million (from $141 million at year-end 2008), primarily representing an increase for the foreign subsidiaries issue due to our ongoing current fiscal year exposure. The unrecognized tax benefits balance of $247 million at the end of the 2009 third quarter included $131 million of tax positions that, if recognized, would impact the effective tax rate. As a large taxpayer, we are under continual audit by the IRS and other taxing authorities. It is possible that the amount of the liability for unrecognized tax benefits could change during the next 52-week period, but we do not anticipate that a significant impact to the unrecognized tax benefit balance will occur.

4.Discontinued Operations-Synth

4.Discontinued Operations-Synthetic Fuel
	9 Months Ended Sep. 11, 2009 USD / shares
Notes to Financial Statements [Abstract]
4.Discontinued Operations-Synthetic Fuel	4. Discontinued Operations-Synthetic Fuel Our synthetic fuel operations consisted of four coal-based synthetic fuel production facilities (the Facilities). Because tax credits under Section45K of the Internal Revenue Code were only available for the production and sale of synthetic fuel produced from coal before 2008, and because we estimated that high oil prices during 2007 would result in the phase-out of a significant portion of the tax credits available for synthetic fuel produced and sold in 2007, we permanently shut down the Facilities on November3, 2007. Accordingly, we now report this business as a discontinued operation. See Footnote No.4, Discontinued Operations-Synthetic Fuel, in our 2008 Form 10-K for additional information. The following table provides income statement and balance sheet information relating to the discontinued synthetic fuel operations. The discontinued synthetic fuel operations reflected in the income statement for the twelve and thirty-six weeks ended September5, 2008, only represents activity related to Marriott and there were no noncontrolling interests. Income Statement Summary Twelve Weeks Ended Thirty-Six Weeks Ended ($ in millions) September11,2009 September5,2008 September11,2009 September5,2008 Revenue $ $ $ $ 1 Loss from discontinued operations before income taxes $ $ (1 ) $ $ (4 ) Tax (provision) benefit (3 ) Tax credits 1 10 Total tax (provision) benefit 1 7 Income from discontinued operations $ $ $ $ 3 Balance Sheet Summary At Period End ($ in millions) September11,2009 January2,2009 Liabilities $ $ (3 )

5.Share-Based Compensation

5.Share-Based Compensation
	9 Months Ended Sep. 11, 2009 USD / shares
Notes to Financial Statements [Abstract]
5.Share-Based Compensation	5. Share-Based Compensation Under our 2002 Comprehensive Stock and Cash Incentive Plan (the Comprehensive Plan), we award: (1)stock options to purchase our ClassA Common Stock (Stock Option Program); (2)share appreciation rights (SARs) for our ClassA Common Stock (Stock Appreciation Right Program); (3)restricted stock units of our ClassA Common Stock; and (4)deferred stock units. We grant awards at exercise prices or strike prices that are equal to the market price of our ClassA Common Stock on the date of grant. Restricted Stock Units We granted 0.8million restricted stock units during the thirty-six weeks ended September11, 2009, to certain officers and key employees, and those units vest generally over four years in equal annual installments commencing one year after the date of grant. The weighted average grant-date fair value of the restricted stock units granted in the first three quarters of 2009 was $19. SARs We granted 0.5million SARs to officers and key employees during the thirty-six weeks ended September11, 2009. These SARs expire 10 years after the date of grant and both vest and are exercisable in cumulative installments of one quarter at the end of each of the first four years following the date of grant. The weighted average grant-date fair value of these SARs was $5, and the weighted average exercise price was $15. During the thirty-six weeks ended September11, 2009, we also granted 5,600 non-employee director SARs to a director with a weighted average exercise price of $23 and a weighted average grant-date fair value of $10. These non-employee director SARs expire 10 years after the date of grant and vest upon grant, but are generally not exercisable until one year after grant. To estimate the fair value of each SAR granted, we use a lattice-based valuation model that incorporates a range of assumptions for inputs. Historical data is used to estimate exercise behaviors for separate groups of retirement eligible and non-retirement eligible employees. The expected terms of the SARs granted are derived from the outputs of the valuation model and represent the periods of time that the SARs granted are expected to be outstanding. The range of assumptions for the SARs granted during the first three quarters of 2009 is as follows: Expected volatility 32%-33 % Dividend yield 0.95 % Risk-free rate 2.0%-3.2 % Expected term (in years) 6-10 The risk-free rates are based on the corresponding U.S. Treasury spot rates for the expected duration at the date of grant, converted to a continuously compounded rate. Deferred Stock Units We issued 32,000 deferred stock units with a weighted average grant-date fair value of $23 to non-employee directors during the thirty-six weeks ended September11, 2009. These non-employee director deferred stock units vest within one year and are distributed upon election. Other Information At the end of the 2009 third quarter, 69.8million shares were reserved under the Comprehensive Plan, including 37.4million shares under the Stock Option Program and Stock Appreciation Right Program. On May1, 2009, the shareholders approved

6.Fair Value Measurements

6.Fair Value Measurements
	9 Months Ended Sep. 11, 2009 USD / shares
Notes to Financial Statements [Abstract]
6.Fair Value Measurements	6. Fair Value Measurements FAS No.157 defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (an exit price). The standard outlines a valuation framework and creates a fair value hierarchy in order to increase the consistency and comparability of fair value measurements and the related disclosures. FAS No.157 details the disclosures that are required for items measured at fair value. We have various financial instruments we must measure on a recurring basis under FAS No.157, including certain marketable securities, derivatives, and residual interests related to our asset securitizations. We also apply the provisions of FAS No.157 to various non-recurring measurements for our financial and non-financial assets and liabilities, which included the impairment of a joint venture investment, and two security deposits in the first quarter of 2009 and the impairment of Timeshare segment inventory, property and equipment, anticipated fundings in conjunction with certain purchase commitments, and a joint venture investment in the third quarter of 2009. See Footnote No.19, Restructuring Costs and Other Charges, and Footnote No.18, Timeshare Strategy-Impairment Charges, for further information. We measure our assets and liabilities using inputs from the following three levels of the fair value hierarchy: Level 1 inputs are unadjusted quoted prices in active markets for identical assets or liabilities that we have the ability to access at the measurement date. Level 2 inputs include quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability (i.e., interest rates, yield curves, etc.), and inputs that are derived principally from or corroborated by observable market data by correlation or other means (market corroborated inputs). Level 3 includes unobservable inputs that reflect our assumptions about the assumptions that market participants would use in pricing the asset or liability. We develop these inputs based on the best information available, including our own data. In accordance with the fair value hierarchy, the following table shows the fair value as of September11, 2009, of those assets and liabilities that we must measure at fair value on a recurring basis and that we classify as Other current assets, Other assets, Other payables and accruals, and Other long-term liabilities: ($ in millions) Fair Value Measurements as of September11, 2009 Description Balance at September11, 2009 Level1 Level2 Level3 Assets: Residual interests $ 174 $ $ $ 174 Marketable securities 31 15 16 Liabilities: Derivative instruments (10 ) (4 ) (4 ) (2 ) The following tables summarize the changes in fair value of our Level 3 assets and liabilities for the

7.Fair Value of Financial Instr

7.Fair Value of Financial Instruments
	9 Months Ended Sep. 11, 2009 USD / shares
Notes to Financial Statements [Abstract]
7.Fair Value of Financial Instruments	7. Fair Value of Financial Instruments We adopted FSP FAS No.107-1 and APB Opinion No.28-1 as of March28, 2009, the first day of our 2009 second quarter. The guidance requires quarterly fair value disclosures for financial instruments rather than annual disclosure. We believe that the fair values of our current assets and current liabilities approximate their reported carrying amounts. The carrying values and the fair values of non-current financial assets and liabilities, that qualify as financial instruments per FAS No.107, Disclosures about Fair Value of Financial Instruments, are shown in the following table. At September11, 2009 At Year-End 2008 ($ in millions) Carrying Amount Fair Value Carrying Amount Fair Value Cost method investments $ 40 $ 32 $ 37 $ 36 Long-term notes receivable 533 519 830 817 Residual interests and effectively owned notes 197 197 135 135 Restricted cash 18 18 51 51 Marketable securities 31 31 24 24 Other long-term receivables 23 22 24 24 Total long-term financial assets $ 842 $ 819 $ 1,101 $ 1,087 Long-term debt $ (2,492 ) $ (2,473 ) $ (2,941 ) $ (2,720 ) Other long-term liabilities (90 ) (86 ) (92 ) (92 ) Long-term derivative liabilities (6 ) (6 ) (20 ) (20 ) Total long-term financial liabilities $ (2,588 ) $ (2,565 ) $ (3,053 ) $ (2,832 ) We estimate the fair value of our cost method investments by applying a cap rate to stabilized earnings. We estimate the fair value of our long-term notes receivables using various methods, which include discounting cash flows using risk-adjusted rates and applying historical results from our most recent securitization transaction to our unsold notes receivables. The carrying value of our restricted cash approximates its fair value, and we estimate the fair value of our other long-term receivables by discounting future cash flows at risk-adjusted rates. The carrying value of our marketable securities at September11, 2009, of $31 million includes $15 million in equity securities in one entity and $16 million in debt securities of the U.S. Government, its sponsored agencies and other U.S. corporations invested for our self-insurance programs. Our residual interests, marketable securities, and restricted cash are included within the Other long-term assets caption on our Condensed Consolidated Balance Sheets. We estimate the fair value of our long-term debt, excluding leases, using a combination of quoted market prices and expected future payments discounted at risk-adjusted rates. Other long-term liabilities represent guarantee costs and reserves and deposit liabilities. The carrying value of these liabilities approximates their fair values. Our residual interests related to our timeshare securitizations, marketable securities, and de

8.Earnings Per Share

8.Earnings Per Share
	9 Months Ended Sep. 11, 2009 USD / shares
Notes to Financial Statements [Abstract]
8.Earnings Per Share	8. Earnings Per Share The table below illustrates the reconciliation of the earnings (losses) and number of shares used in our calculations of basic and diluted earnings (losses) per share attributable to Marriott shareholders. Twelve Weeks Ended Thirty-Six Weeks Ended ($ in millions) September11,2009 September5,2008 September11,2009 September5,2008 Computation of Basic Earnings Per Share Attributable to Marriott Shareholders (Loss) income from continuing operations $ (469 ) $ 84 $ (459 ) $ 356 Net losses attributable to noncontrolling interests 3 10 7 13 (Loss) income from continuing operations attributable to Marriott shareholders (466 ) 94 (452 ) 369 Weighted average shares outstanding 355.5 353.8 354.5 355.6 Basic (losses) earnings per share from continuing operations attributable to Marriott shareholders $ (1.31 ) $ 0.27 $ (1.27 ) $ 1.04 Computation of Diluted Earnings Per Share Attributable to Marriott Shareholders (Loss) income from continuing operations attributable to Marriott shareholders $ (466 ) $ 94 $ (452 ) $ 369 Weighted average shares outstanding 355.5 353.8 354.5 355.6 Effect of dilutive securities Employee stock option and SARs plans 11.3 13.0 Deferred stock incentive plans 1.6 1.6 Restricted stock units 1.3 1.8 Shares for diluted earnings per share attributable to Marriott shareholders 355.5 368.0 354.5 372.0 Diluted (losses) earnings per share from continuing operations attributable to Marriott shareholders $ (1.31 ) $ 0.25 $ (1.27 ) $ 0.99 We compute the effect of dilutive securities using the treasury stock method and average market prices during the period. We determine dilution based on earnings from continuing operations attributable to Marriott shareholders. As we recorded a loss from continuing operations for the twelve and thirty-six week periods ended September11, 2009, we did not include the following shares in the Effect of dilutive securities caption in the preceding table, because it would have been antidilutive to do so: 7.4million employee stock option and SARs plan shares, 1.4million deferred stock incentive plans shares, or 2.0million restricted stock unit shares for the twelve-week period and 6.7million employee stock option and SARs plan shares, 1.5million deferred stock incentive plans shares, or 1.5million restricted stock units shares for the thirty-six week period. In accordance with FAS No.128, Earnings per Share, we have not included the following stock options and SARs in our calculation of diluted earnings per share attributable to Marriott shareholders because the exercise prices were greater

9.Inventory

9.Inventory
	9 Months Ended Sep. 11, 2009 USD / shares
Notes to Financial Statements [Abstract]
9.Inventory	9. Inventory Inventory, totaling $1,465 million and $1,981 million as of September11, 2009, and January2, 2009, respectively, consists primarily of Timeshare segment interval, fractional ownership, and residential products totaling $1,447 million and $1,959 million as of September11, 2009, and January2, 2009, respectively. Inventory totaling $18 million and $22 million as of September11, 2009, and January2, 2009, respectively, primarily relates to hotel operating supplies for the limited number of properties we own or lease. We value Timeshare segment interval, fractional ownership, and residential products at the lower of cost or net realizable value, and generally value operating supplies at the lower of cost (using the first-in, first-out method) or market. Consistent with recognized industry practice, we classify Timeshare segment interval, fractional ownership, and residential products inventory, which has an operating cycle that exceeds 12 months, as a current asset. Weak economic conditions in the United States, Europe and much of the rest of the world, instability in the financial markets following the 2008 worldwide financial crisis, and weak consumer confidence all contributed to a difficult business environment and resulted in weaker demand for our Timeshare segment products, in particular our luxury residential (or whole ownership) products, but also to a lesser extent our luxury fractional ownership and timeshare products. In the 2009 third quarter, we recorded an inventory impairment charge of $529 million in conjunction with our evaluation of the entire Timeshare portfolio. See Footnote No.18, Timeshare Strategy-Impairment Charges, for additional information.

10.Property and Equipment

10.Property and Equipment
	9 Months Ended Sep. 11, 2009 USD / shares
Notes to Financial Statements [Abstract]
10.Property and Equipment	10. Property and Equipment The following table details the composition of our property and equipment balances at September11, 2009, and January2, 2009. ($ in millions) September11,2009 January2,2009 Land $ 453 $ 469 Buildings and leasehold improvements 907 852 Furniture and equipment 963 954 Construction in progress 193 244 2,516 2,519 Accumulated depreciation (1,145 ) (1,076 ) $ 1,371 $ 1,443

11.Notes Receivable

11.Notes Receivable
	9 Months Ended Sep. 11, 2009 USD / shares
Notes to Financial Statements [Abstract]
11.Notes Receivable	11. Notes Receivable The following table details the composition of our notes receivable balances at September11, 2009, and January2, 2009. ($ in millions) September11,2009 January2,2009 Loans to timeshare owners $ 511 $ 688 Senior loans 1 2 Mezzanine and other loans 192 236 704 926 Less current portion (171 ) (96 ) $ 533 $ 830 We classify notes receivable due within one year as current assets in the caption Accounts and notes receivable in the accompanying Condensed Consolidated Balance Sheets, including $73 million and $81 million, at September11, 2009, and January2, 2009, respectively, related to Loans to timeshare owners. In the first quarter of 2009, we fully reserved two notes receivable balances that we deemed uncollectible, one of which relates to a project that is in development. We recorded a total charge of $42 million in the first quarter of 2009 in the Provision for loan losses caption in our Condensed Consolidated Statements of Income related to these two notes receivable balances. We also recorded a $1 million charge in the second quarter of 2009 related to two notes receivable balances. See Footnote No.19, Restructuring Costs and Other Charges for additional information. In the 2009 third quarter we fully reserved certain notes receivable balances that we deemed uncollectible, which relate to a Timeshare segment project that is in development. Accordingly, we recorded a loan impairment charge of $40 million in the 2009 third quarter in the Timeshare strategy-impairment charges (non-operating) caption of our Consolidated Statements of Income. See Footnote No.18, Timeshare Strategy-Impairment Charges, for additional information.

12.Asset Securitizations

12.Asset Securitizations
	9 Months Ended Sep. 11, 2009 USD / shares
Notes to Financial Statements [Abstract]
12.Asset Securitizations	12. Asset Securitizations As noted in Footnote No.12, Asset Securitizations, in our 2008 Form 10-K, we periodically sell, without recourse, through special purpose entities, notes receivable originated by our Timeshare segment in connection with the sale of timeshare interval and fractional products. We continue to service the notes and transfer all proceeds collected to special purpose entities. We retain servicing assets and other interests in the notes and account for these assets and interests as residual interests. Residual interests at September11, 2009, and January2, 2009, totaled $174 million and $221 million, respectively, and included servicing assets totaling $12 million and $12 million, respectively. The interests are limited to the present value of cash available after paying financing expenses and program fees and absorbing credit losses. We have inherent risk for changes in fair value of the servicing assets but do not deem the risk significant and therefore, do not use other financial instruments to mitigate this risk. The changes in servicing assets for the twelve weeks and thirty-six weeks ended September11, 2009, measured using the fair value method appear in the following table: ($ in millions) Servicing Assets Twelve Weeks EndedSeptember11,2009 Servicing Assets Thirty-Six Weeks EndedSeptember11,2009 Fair value at beginning of period $ 13 $ 12 Servicing from securitizations 3 Changes in fair value (1) (1 ) (3 ) Fair value at end of period $ 12 $ 12 (1) Principally represents changes due to collection/realization of expected future cash flows over time and changes in fair value due to changes in key variables listed below. At the end of the third quarter of 2009, $1,168 million of principal due from timeshare interval and fractional owners remained outstanding in 13 special purpose entities formed in connection with our timeshare note sales. Delinquencies of more than 90 days amounted to $16 million. The impact to us from delinquencies, and our maximum exposure to loss as a result of our involvement with these special purpose entities, is limited to our residual interests, which we value based on a discounted cash flow model, as discussed in Footnote No.6, Fair Value Measurements. Please see the Timeshare Residual Interests Valuation caption within the Restructuring Costs and Other Charges section of the Managements Discussion and Analysis of Financial Condition and Results of Operations section for additional information on the risks associated with our residual interests. Under the terms of our timeshare note sales, we have the right, at our option, to repurchase defaulted mortgage notes at par. The transaction documents typically limit such repurchases to ten percent of the transactions initial mortgage balance, but during the 2009 third quarter investors in two of our outstanding note sale transactions agreed to increase the applicable limit to 15 percent. In cases where we have chosen to exercise this repurchase right, we have been able to resell the timeshare units underlying the

13.Long-term Debt

13.Long-term Debt
	9 Months Ended Sep. 11, 2009 USD / shares
Notes to Financial Statements [Abstract]
13.Long-term Debt	13. Long-term Debt Our long-term debt at September11, 2009, and January2, 2009, consisted of the following: ($ in millions) September11, 2009 January2, 2009 Senior Notes: Series C, interest rate of 7.875%, face amount of $76, maturing September15, 2009 $ 76 $ 76 Series F, interest rate of 4.625%, face amount of $348, maturing June15, 2012 347 347 Series G, interest rate of 5.810%, face amount of $316, maturing November10, 2015 301 349 Series H, interest rate of 6.200%, face amount of $289, maturing June15, 2016 289 314 Series I, interest rate of 6.375%, face amount of $293, maturing June15, 2017 291 335 Series J, interest rate of 5.625%, face amount of $400, maturing February15, 2013 398 397 $2.4B Effective Credit Facility, average interest rate of 0.762% at September11, 2009 710 969 Other 248 308 2,660 3,095 Less current portion (137 ) (120 ) $ 2,523 $ 2,975 As of the end of our 2009 third quarter, all debt was unsecured, and we had long-term public debt ratings of BBB- from Standard and Poors and Baa3 from Moodys. In the first three quarters of 2009, we repurchased $122 million principal amount of our Senior Notes in the open market, across multiple series. We recorded a gain of $21 million for the debt extinguishment representing the difference between the acquired debts purchase price of $98 million and its carrying amount of $119 million. Subsequent to the 2009 third quarter, on September15, 2009, we made a $79 million cash payment of principal and interest to retire, at maturity, all of our outstanding Series C Senior Notes. As discussed in more detail in Footnote No.13, Long-term debt, of our 2008 Form 10-K, we are party to a multicurrency revolving credit agreement (the Credit Facility) that provides for $2.4 billion of aggregate effective borrowings to support general corporate needs, including working capital and capital expenditures, and letters of credit and supported our commercial paper program. Until the 2008 fourth quarter, we regularly issued short-term commercial paper primarily in the United States and, to a much lesser extent, in Europe. Disruptions in the financial markets beginning in September 2008 significantly reduced liquidity in the commercial paper market. Accordingly, in the fourth quarter of 2008, we suspended issuing commercial paper and used funds borrowed under the Credit Facility to repay all of our previously issued commercial paper as it matured. Our Standard and Poors commercial paper rating at the end of the 2009 third quarter was A3. Because the market for A3 commercial paper is currently very limited, it would be very difficult to rely on the use of this market as a meaningful source of liquidity, and we do not anticipate issuing commercial paper under these circumstances. We classified outstanding commercial paper as long-term debt based on our ability and intent to refinance it on a long-term basis. We reserved unused capacity under our Cre

14.Comprehensive Income and Cap

14.Comprehensive Income and Capital Structure
	9 Months Ended Sep. 11, 2009 USD / shares
Notes to Financial Statements [Abstract]
14.Comprehensive Income and Capital Structure	14. Comprehensive Income and Capital Structure The following tables detail comprehensive income attributable to Marriott, comprehensive income attributable to noncontrolling interests, and consolidated comprehensive income for the twelve and thirty-six weeks ended September11, 2009, and September5, 2008. Attributable to Marriott Attributable to Noncontrolling Interests Consolidated ($ in millions) Twelve Weeks Ended Twelve Weeks Ended Twelve Weeks Ended September11, 2009 September5, 2008 September11, 2009 September5, 2008 September11, 2009 September5, 2008 Net (loss) income $ (466 ) $ 94 $ (3 ) $ (10 ) $ (469 ) $ 84 Other comprehensive income (loss), net of tax: Foreign currency translation adjustments 8 (14 ) 8 (14 ) Other derivative instrument adjustments (3 ) (4 ) (3 ) (4 ) Unrealized gains (losses) on available-for-sale securities 2 (5 ) 2 (5 ) Reclassification of losses (gains) on available-for-sale securities 5 5 Total other comprehensive (loss) income, net of tax 12 (23 ) 12 (23 ) Comprehensive (loss) income $ (454 ) $ 71 $ (3 ) $ (10 ) $ (457 ) $ 61 Attributable to Marriott Attributable to Noncontrolling Interests Consolidated ($ in millions) Thirty-Six Weeks Ended Thirty-Six Weeks Ended Thirty-Six Weeks Ended September 11, 2009 September 5, 2008 September 11, 2009 September 5, 2008 September 11, 2009 September 5, 2008 Net (loss) income $ (452 ) $ 372 $ (7 ) $ (13 ) $ (459 ) $ 359 Other comprehensive income (loss), net of tax: Foreign currency translation adjustments 20 2 20 2 Other derivative instrument adjustments (7 ) 6 (7 ) 6 Unrealized gains (losses) on available-for-sale securities 5 (11 ) 5 (11 ) Reclassification of losses (gains) on available-for-sale securities 5 5 Total other comprehensive (loss) income, net of tax 23 (3 ) 23 (3 ) Comprehensive (loss) income $ (429 ) $ 369 $ (7 ) $ (13 ) $ (436 ) $ 356 The following table details changes in shareholders equity, including changes in equity attributable to Marriott shareholders and changes in equity attributable to the noncontrolling interests. We have restated common shares outstanding to reflect the stock dividends that were declared on May1, 2009 and August6, 2009, respectively. The stock dividends

15.Contingencies

15.Contingencies
	9 Months Ended Sep. 11, 2009 USD / shares
Notes to Financial Statements [Abstract]
15.Contingencies	15. Contingencies Guarantees We issue guarantees to certain lenders and hotel owners primarily to obtain long-term management contracts. The guarantees generally have a stated maximum amount of funding and a term of three to 10 years. The terms of guarantees to lenders generally require us to fund if cash flows from hotel operations are inadequate to cover annual debt service or to repay the loan at the end of the term. The terms of the guarantees to hotel owners generally require us to fund if the hotels do not attain specified levels of operating profit. Guarantee fundings to lenders and hotel owners are generally recoverable as loans repayable to us out of future hotel cash flows and/or proceeds from the sale of hotels. We also enter into project completion guarantees with certain lenders in conjunction with hotels and Timeshare segment properties that we or our joint venture partners are building. The maximum potential amount of future fundings for guarantees where we are the primary obligor and the carrying amount of the liability for expected future fundings at September11, 2009, are as follows: ($ in millions) Guarantee Type MaximumPotential Amount of FutureFundings Liability for ExpectedFuture Fundings at September11,2009 Debt service $ 37 $ 1 Operating profit 152 26 Other 102 7 Total guarantees where we are the primary obligor $ 291 $ 34 The liability for expected future fundings at September11, 2009, is included in our Condensed Consolidated Balance Sheets as follows: $6 million in the Other payables and accruals line item and $28 million in the Other long-term liabilities line item. Our guarantees of $291 million listed in the preceding table include $33 million of operating profit guarantees that will not be in effect until the underlying properties open and we begin to operate the properties, along with $3 million of debt service guarantees that will not be in effect until the underlying debt has been funded, and $9 million of other guarantees that will not be in effect until certain requirements are met. The guarantees of $291 million in the preceding table do not include $179 million of guarantees that we anticipate will expire in the years 2011 through 2013, related to Senior Living Services lease obligations totaling $123 million and lifecare bonds totaling $56 million for which we are secondarily liable. Sunrise Senior Living, Inc. (Sunrise) is the primary obligor of the leases and $8 million of the lifecare bonds, and CNL Retirement Properties, Inc., which subsequently merged with Health Care Property Investors, Inc. (HCP), is the primary obligor of $46 million of the lifecare bonds. Five Star is the primary obligor of the remainder of the lifecare bonds. Prior to our sale of the Senior Living Services business in 2003, these preexisting guarantees were guarantees by us of obligations of consolidated Senior Living Services subsidiaries. Sunrise and HCP have indemnified us for any guarantee fundings we may be called on to make in connection with these lease obligations and lifecare bonds. While we

16.Derivative Instruments

16.Derivative Instruments
	9 Months Ended Sep. 11, 2009 USD / shares
Notes to Financial Statements [Abstract]
16.Derivative Instruments	16. Derivative Instruments We adopted FAS No.161 on January3, 2009, the first day of our 2009 fiscal year. FAS No.161 enhances the current disclosure framework for derivative instruments and hedging activities. In this initial year of adoption, we have elected not to present earlier periods for comparative purposes. The designation of a derivative instrument as a hedge and its ability to meet the FAS No.133 hedge accounting criteria determine how the change in fair value of the derivative instrument will be reflected in the Condensed Consolidated Financial Statements. A derivative qualifies for hedge accounting if, at inception, the derivative is expected to be highly effective in offsetting the underlying hedged cash flows or fair value and the documentation standards of FAS No.133 are fulfilled at the time we enter into the derivative contract. A hedge is designated as a cash flow hedge, fair value hedge, or a net investment in foreign operations hedge based on the exposure being hedged. The asset or liability value of the derivative will change in tandem with its fair value. Changes in fair value, for the effective portion of qualifying hedges, are recorded in other comprehensive income (OCI). The derivatives gain or loss is released from OCI to match the timing of the underlying hedged cash flows effect on earnings. We review the effectiveness of our hedging instruments on a quarterly basis, recognize current period hedge ineffectiveness immediately in earnings, and discontinue hedge accounting for any hedge that we no longer consider to be highly effective. We recognize changes in fair value for derivatives not designated as hedges or those not qualifying for hedge accounting in current period earnings. Upon termination of cash flow hedges, we release gains and losses from OCI based on the timing of the underlying cash flows, unless the termination results from the failure of the intended transaction to occur in the expected timeframe. Such untimely transactions require us to immediately recognize in earnings gains and losses previously recorded in OCI. Changes in interest rates, foreign exchange rates, and equity securities expose us to market risk. We manage our exposure to these risks by monitoring available financing alternatives, as well as through development and application of credit granting policies. We also use derivative instruments, including cash flow hedges, net investment in foreign operations hedges, fair value hedges, and other derivative instruments, as part of our overall strategy to manage our exposure to market risks associated with fluctuations in interest rates and foreign currency exchange rates. As a matter of policy, we only enter into transactions that we believe will be highly effective at offsetting the underlying risk, and we do not use derivatives for trading or speculative purposes. Our use of derivative instruments to manage market risks exposes us to the risk that a counterparty could default on a derivative contract. Our financial instrument counterparties are high-quality investment or commercial banks with significant experience with such instruments. We manage our exposure to co

17.Business Segments

17.Business Segments
	9 Months Ended Sep. 11, 2009 USD / shares
Notes to Financial Statements [Abstract]
17.Business Segments	17. Business Segments We are a diversified hospitality company with operations in five business segments: North American Full-Service Lodging, which includes the Marriott Hotels Resorts, Marriott Conference Centers, JW Marriott Hotels Resorts, Renaissance Hotels Resorts, and Renaissance ClubSport properties located in the continental United States and Canada; North American Limited-Service Lodging, which includes the Courtyard, Fairfield Inn, SpringHill Suites, Residence Inn, TownePlace Suites, and Marriott ExecuStay properties located in the continental United States and Canada; International Lodging, which includes the Marriott Hotels Resorts, JW Marriott Hotels Resorts, Renaissance Hotels Resorts, Courtyard, Fairfield Inn, Residence Inn, and Marriott Executive Apartments properties located outside the continental United States and Canada; Luxury Lodging, which includes The Ritz-Carlton and Bulgari Hotels Resorts properties worldwide (together with adjacent residential properties associated with some Ritz-Carlton hotels), as well as Edition, for which no properties are yet open; and Timeshare, which includes the development, marketing, operation, and sale of Marriott Vacation Club, The Ritz-Carlton Destination Club, Ritz-Carlton Residences, and Grand Residences by Marriott timeshare, fractional ownership, and residential properties worldwide. We evaluate the performance of our segments based primarily on the results of the segment without allocating corporate expenses, interest expense, income taxes, or indirect general, administrative, and other expenses. With the exception of the Timeshare segment, we do not allocate interest income to our segments. Because note sales are an integral part of the Timeshare segment, we include note sale gains or (losses) in our Timeshare segment results. We also include interest income associated with our Timeshare segment notes in our Timeshare segment results because financing sales are an integral part of that segments business. Additionally, we allocate other gains and losses, equity in earnings or losses from our joint ventures, divisional general, administrative, and other expenses, and income or losses attributable to noncontrolling interests to each of our segments. Other unallocated corporate represents that portion of our revenues, general, administrative, and other expenses, equity in earnings or losses, and other gains or losses that are not allocable to our segments. We aggregate the brands presented within our North American Full-Service, North American Limited-Service, International, Luxury, and Timeshare segments considering their similar economic characteristics, types of customers, distribution channels, the regulatory business environment of the brands and operations within each segment and our organizational and management reporting structure. Revenues Twelve Weeks Ended Thirty-Six Weeks Ended ($ in millions) September11,2009 September5,2008 September11,2009 September5,2008 North American Full-Service Segment $ 1,074 $ 1,239 $ 3,382 $ 3,91

18.Timeshare Strategy-Impairmen

18.Timeshare Strategy-Impairment Charges
	9 Months Ended Sep. 11, 2009 USD / shares
Notes to Financial Statements [Abstract]
18.Timeshare Strategy-Impairment Charges	18. Timeshare Strategy-Impairment Charges In response to the difficult business conditions that the Timeshare segments timeshare, luxury residential, and luxury fractional real estate development businesses continue to experience, we evaluated our entire Timeshare portfolio in the 2009 third quarter. In order to adjust the business strategy to reflect current market conditions, on September22, 2009, we approved plans for our Timeshare segment to take the following actions: (1)for our luxury residential projects, reduce prices, convert certain proposed projects to other uses, sell some undeveloped land, and not pursue further Marriott-funded residential development projects; (2)reduce prices for existing luxury fractional units; (3)continue short-term promotions for our U.S. timeshare business and defer the introduction of new projects and development phases; and (4)for our European timeshare and fractional resorts, continue promotional pricing and marketing incentives and not pursue further development. We designed these plans, which primarily relate to luxury residential and fractional resorts, to stimulate sales, accelerate cash flow, and reduce investment spending. As a result of these decisions, we recorded third quarter 2009 pretax charges totaling $752 million in our Consolidated Statements of Income ($502 million after-tax), including $614 million of pretax charges impacting operating income under the Timeshare strategy-impairment charges caption, and $138 million of pretax charges impacting non-operating income under the Timeshare strategy-impairment charges (non-operating) caption. These $752 million of pretax impairment charges are non-cash, except for $27 million associated with future mezzanine loan fundings in 2009 and $21 million related to purchase commitments expected to be funded in 2010. Grouped by product type and/or geographic location, these impairment charges consist of $295 million associated with five luxury residential projects, $299 million associated with nine North American luxury fractional projects, $93 million related to one North American timeshare project, $51 million related to the four projects in our European timeshare and fractional business, and $14 million associated with two Asia Pacific timeshare resorts. The following table details the composition of these charges. ($ in millions) ImpairmentCharge Third Quarter 2009 Operating Income Charge Inventory impairment $ 529 Property and equipment impairment 64 Other impairments 21 Total operating income charge 614 Third Quarter 2009 Non-Operating Income Charge Joint venture impairment 71 Loan impairment 40 Funding liability 27 Total non-operating income charge 138 Total $ 752 In accordance with FAS No.144, Accounting for the Impairment or Disposal of Long-Lived Assets, we made these impairment adjustments to inventory, property and equipment and one joint venture investment to adjust the carrying value of each underlying asset to our estimate of its fair value as of the end of the 2009 third quarter, including

19.Restructuring Costs and Othe

19.Restructuring Costs and Other Charges
	9 Months Ended Sep. 11, 2009 USD / shares
Notes to Financial Statements [Abstract]
19.Restructuring Costs and Other Charges	19. Restructuring Costs and Other Charges During the latter part of 2008, we experienced a significant decline in demand for hotel rooms both domestically and internationally as a result, in part, of the recent failures and near failures of a number of large financial service companies in the fourth quarter of 2008 and the dramatic downturn in the economy. Our capital intensive Timeshare business was also hurt both domestically and internationally by the downturn in market conditions and particularly the significant deterioration in the credit markets, which resulted in our decision not to complete a note sale in the fourth quarter of 2008 (although we did complete a note sale in the first quarter of 2009). These declines resulted in reduced management and franchise fees, cancellation of development projects, reduced timeshare contract sales, and anticipated losses under guarantees and loans. In the fourth quarter of 2008, we put certain company-wide cost-saving measures in place in response to these declines, with individual company segments and corporate departments implementing further cost saving measures. Upper-level management responsible for the Timeshare segment, hotel operations, development, and above-property level management of the various corporate departments and brand teams individually led these decentralized management initiatives. The various initiatives resulted in aggregate restructuring costs of $55 million that we recorded in the fourth quarter of 2008. We also recorded $137 million of other charges in the 2008 fourth quarter. For information regarding the fourth quarter 2008 charges, see Footnote No.20, Restructuring Costs and Other Charges, in our 2008 Form 10-K. Restructuring Costs As part of the restructuring actions we began in the fourth quarter of 2008, we initiated further cost savings measures in the 2009 first, second, and third quarters associated with our Timeshare segment, hotel development, above-property level management, and corporate overhead. These further measures resulted in additional restructuring costs of $44 million in the first three quarters of 2009, $9 million of which were incurred in the third quarter. These 2009 restructuring costs included: (1)$16 million in severance costs related to the reduction of 970 employees, $4 million of which we incurred in the third quarter for 116 employees terminated during the quarter (the majority of whom were given notice of termination by September11, 2009); (2)$27 million in facilities exit costs incurred in the second and third quarters of 2009, $5 million of which we incurred in the third quarter; and (3)$1 million related to the write-off of capitalized costs relating to development projects no longer deemed viable in the second quarter of 2009. The severance costs do not reflect amounts billed out separately to owners for property-level severance costs. The $4 million of severance costs we recorded in the 2009 third quarter reflected a portion of the $6 million to $9 million in costs that, as disclosed in our Quarterly Report on Form 10-Q for the quarterly period ended June19, 2009 (2009 Second Quarter Form 10-Q), we expected to incur i

20.Variable Interest Entities

20.Variable Interest Entities
	9 Months Ended Sep. 11, 2009 USD / shares
Notes to Financial Statements [Abstract]
20.Variable Interest Entities	20. Variable Interest Entities In accordance with FASB Interpretation No.46 (revised December 2003), Consolidation of Variable Interest Entities (FIN 46(R)), we analyze our variable interests, including loans, guarantees, and equity investments, to determine if the entity in which we have a variable interest is a variable interest entity. Our analysis includes both quantitative and qualitative reviews. We base our quantitative analysis on the forecasted cash flows of the entity, and our qualitative analysis on our review of the design of the entity, its organizational structure including decision-making ability and financial agreements. We also use our quantitative and qualitative analyses to determine if we must consolidate a variable interest entity as the primary beneficiary. We have an equity investment in and a loan receivable due from a variable interest entity that develops and markets fractional ownership and residential interests, and we consolidate the entity because we are the primary beneficiary. We concluded that the entity is a variable interest entity because the voting rights are not proportionate to the economic interests. The loan we provided to the entity replaced the original senior loan, and at September11, 2009, had a principal balance of $76 million and an accrued interest balance of $25 million. The variable interest entity uses the loan facility to fund its net cash flow. The loans outstanding principal balance increased by $2 million compared to the quarter ended June19, 2009. At September11, 2009, the carrying amount of consolidated assets included within our Condensed Consolidated Balance Sheet that are collateral for the variable interest entitys obligations totaled $58 million and comprised $55 million of real estate held for development, property, equipment, and other assets and $3 million of cash. Further, at September11, 2009, the carrying amount of the consolidated liabilities and noncontrolling interests included within our Condensed Consolidated Balance Sheets for this variable interest entity totaled $16 million and the noncontrolling interest was reduced to zero. The creditors of this entity do not have general recourse to our credit. We have contracted to purchase the noncontrolling interest in the entity for less than $1 million. The acquisition will occur in stages, and commenced with our initial acquisition of 3 percent of the noncontrolling interest in the entity that occurred during the 2009 third quarter. The acquisition is expected to be completed in the 2010 third quarter. Our Timeshare segment uses several special purpose entities to maintain ownership of real estate in certain jurisdictions in order to facilitate sales within the Asia Pacific Points Club (the Asia Club). We also use a special purpose entity to maintain ownership of real estate for sale of a Portfolio membership in the Ritz-Carlton Destination Club (RCDC Club). Although we have no equity ownership in the Asia or RCDC Clubs themselves, we absorb the variability in the assets of the Asia or RCDC Clubs to the extent that inventory has not been sold to the ultimate Asia or RCDC Club member. The Asia and RCDC Clubs ar

Document Information

Document Information
	9 Months Ended Sep. 11, 2009 USD / shares
Document Information [Text Block]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	2009-09-11

Entity Information

Entity Information (USD $)
	9 Months Ended Sep. 11, 2009	Sep. 25, 2009
Entity [Text Block]
Trading Symbol	MAR
Entity Registrant Name	MARRIOTT INTERNATIONAL INC /MD/
Entity Central Index Key	0001048286
Current Fiscal Year End Date	--01-01
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		356,024,123