Exhibit 12
MARRIOTT INTERNATIONAL, INC.
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
($ in millions, except ratio)
Thirty-six weeks ended | ||||||||
September 12, 2003 | September 6, 2002 | |||||||
Income from continuing operations before minority interest expense and income taxes(1) | $ | 263 | $ | 363 | ||||
Loss related to equity method investees | 4 | — | ||||||
267 | 363 | |||||||
Add/(deduct): | ||||||||
Fixed charges | 128 | 127 | ||||||
Interest capitalized | (18 | ) | (32 | ) | ||||
Distributed income of equity method investees | 17 | 15 | ||||||
Minority interest in pre-tax loss | 20 | — | ||||||
Earnings available for fixed charges | $ | 414 | $ | 473 | ||||
Fixed charges: | ||||||||
Interest expensed and capitalized (2) | $ | 95 | $ | 91 | ||||
Estimate of interest within rent expense | 33 | 36 | ||||||
Total fixed charges | $ | 128 | $ | 127 | ||||
Ratio of earnings to fixed charges | 3.2 | 3.7 |
(1) | Reflected in income from continuing operations before minority interest and income taxes are losses from our Synthetic Fuel business of $104 million and $81 million, respectively, for the thirty-six weeks ended September 12, 2003 and September 6, 2002. |
(2) | “Interest expensed and capitalized” includes amortized premiums, discounts and capitalized expenses related to indebtedness. |
Exhibit 12
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