Exhibit 12
MARRIOTT INTERNATIONAL, INC. (“Marriott”)
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
Fiscal Year | ||||||||||||||||||||
($ in millions, except ratio) | 2010 | 2009 | 2008 | 2007 | 2006 | |||||||||||||||
Income (loss) from continuing operations before income taxes | $ | 551 | $ | (418 | ) | $ | 694 | $ | 1,137 | $ | 1,092 | |||||||||
Loss (income) related to equity method investees | 18 | 66 | (15 | ) | (3 | ) | (4 | ) | ||||||||||||
569 | (352 | ) | 679 | 1,134 | 1,088 | |||||||||||||||
Add/(deduct): | ||||||||||||||||||||
Fixed charges | 294 | 250 | 326 | 336 | 252 | |||||||||||||||
Interest capitalized | (18 | ) | (32 | ) | (55 | ) | (49 | ) | (32 | ) | ||||||||||
Distributed income of equity method investees | 5 | 9 | 27 | 29 | 17 | |||||||||||||||
Pretax losses attributable to noncontrolling interests | 0 | 11 | 24 | 1 | 0 | |||||||||||||||
Earnings (losses) attributable to Marriott available for fixed charges | $ | 850 | $ | (114 | ) | $ | 1,001 | $ | 1,451 | $ | 1,325 | |||||||||
Fixed charges: | ||||||||||||||||||||
Interest expensed and capitalized (1) | $ | 198 | $ | 150 | $ | 218 | $ | 233 | $ | 156 | ||||||||||
Estimate of interest within rent expense | 96 | 100 | 108 | 103 | 96 | |||||||||||||||
Total fixed charges | $ | 294 | $ | 250 | $ | 326 | $ | 336 | $ | 252 | ||||||||||
Ratio of earnings (losses) attributable to Marriott to fixed charges * | 2.9 | * | 3.1 | 4.3 | 5.3 |
(1) | “Interest expensed and capitalized” includes amortized premiums, discounts, and capitalized expenses related to indebtedness. |
* | In 2009, earnings were inadequate to cover fixed charges by approximately $364 million. |
Exhibit 12