MARRIOTT INTERNATIONAL, INC.
Financial Highlights
(in millions, except per
share amounts)
52 Weeks Ended 53 Weeks
Ended
January 2, 2004 January 3, 2003
--------------------- ----------------------
Percent
Synthetic
Synthetic Better/
Lodging Fuel Total Lodging Fuel
Total (Worse)
------- ------ ------ ------- ------ ------ -------
REVENUES
Base management
fees $388 $ -- $388
$379 $ -- $379
Franchise fees
245 -- 245
232 -- 232
Incentive management
fees
109 -- 109
162 -- 162
Owned, leased,
corporate
housing
and other(1) 633 --
633 651 --
651
Timeshare interval
sales
and services
(2)
1,145 -- 1,145 1,059
-- 1,059
Cost reimbursements
(3)
6,192 -- 6,192 5,739
-- 5,739
Synthetic fuel
-- 302 302
-- 193 193
------- ------ ------ ------- ------ ------
Total Revenues 8,712 302
9,014 8,222 193 8,415
OPERATING COSTS
AND
EXPENSES
Owned, leased
and
corporate
housing -
direct
(4)
505 -- 505
580 -- 580
Timeshare -
direct 1,011
1,011 938 --
938
Reimbursed costs
6,192 -- 6,192 5,739
-- 5,739
General, administrative
and other
(5) 523
-- 523 510
-- 510
Synthetic fuel
-- 406 406
-- 327 327
------- ------ ------ ------- ------ ------
Total Expenses 8,231 406
8,637 7,767 327 8,094
------- ------ ------ ------- ------ ------
OPERATING INCOME
$481 $(104) 377 $455 $(134)
321 17
======= ====== =======
======
Gains and other
income (6)
106
132
Interest expense
(110)
(86)
Interest income
129
122
Provision for
loan losses
(7)
(12)
Equity in earnings
(losses)
- Synthetic
fuel (7)
10
--
- Other (8)
(17)
(6)
------
------
INCOME FROM
CONTINUING
OPERATIONS
BEFORE
INCOME
TAXES AND
MINORITY
INTEREST
488
471
Benefit (Provision)
for
income
taxes
43
(32)
------
------
INCOME FROM
CONTINUING
OPERATIONS
BEFORE
MINORITY
INTEREST
531
439
Minority Interest
(55)
--
------
------
INCOME FROM
CONTINUING
OPERATIONS
476
439 8
Discontinued
operations
Income (Loss) from Senior
Living Services, net of
tax
26
(108)
Loss from Distribution
Services, net of tax
--
(54)
------
------
NET INCOME
$502
$277 81
======
======
EARNINGS PER
SHARE - Basic
Earnings from
continuing operations
$2.05
$1.83 12
Earnings (loss) from
discontinued operations
0.11
(0.68) *
------
------
Earnings per share
$2.16
$1.15 88
======
======
EARNINGS PER
SHARE -
Diluted
Earnings from
continuing operations
$1.94
$1.74 11
Earnings (loss) from
discontinued operations
0.11
(0.64) *
------
------
Earnings per share
$2.05
$1.10 86
======
======
Basic Shares
232.5
240.3
Diluted Shares
245.4
254.6
* Calculated
percentage is not meaningful.
(1) Owned, leased,
corporate housing and other revenue includes revenue
from the properties we own or lease, our ExecuStay business, land rent
income and other revenue.
(2) Timeshare
interval sales and services includes total timeshare
revenue except for base fees, reimbursed costs and note sale gains.
(3) Cost reimbursements
include reimbursements from lodging properties
for Marriott funded operating expenses. Marriott earns no markup
on
these expenses.
(4) Owned, leased
and corporate housing - direct expenses include
operating expenses of our ExecuStay business unit, and owned or leased
hotels including lease payments, pre-opening expenses and
depreciation.
(5) General,
administrative and other expenses include the overhead
costs allocated to our lodging business segments (including ExecuStay
and timeshare) and our unallocated corporate overhead costs.
(6) Gains and
other income includes gains on the sale of real estate,
timeshare note sale gains, and gains on the sale of our interests in
joint ventures.
(7) Equity in
earnings/(losses) - Synthetic fuel includes our share of
the equity in earnings of the Synthetic fuel joint venture and the
earnout we received from the Synthetic fuel joint venture partner
beginning November 6, 2003. The earnout we received prior to November
6, 2003, along with the revenue generated from the previously
consolidated Synthetic fuel joint venture, are included in Synthetic
fuel revenue.
(8) Equity in
earnings/(losses) - Other includes our equity in
earnings/(losses) of unconsolidated joint ventures.
MARRIOTT INTERNATIONAL, INC.
Financial Highlights
(in millions, except per share amounts)
16 Weeks Ended 17 Weeks Ended
January 2, 2004 January 3, 2003
--------------------- ----------------------
Percent
Synthetic
Synthetic Better/
Lodging Fuel Total Lodging Fuel
Total (Worse)
------- ------ ------ ------- ------ ------ -------
REVENUES
Base management
fees $122 $-- $122
$121 $-- $121
Franchise fees
76 -- 76
72 -- 72
Incentive management
fees
34 -- 34
53 -- 53
Owned, leased,
corporate
housing
and other (1) 219 --
219 197 --
197
Timeshare interval
sales
and services
(2) 378
-- 378 318
-- 318
Cost reimbursements
(3)
1,959 -- 1,959 1,852
-- 1,852
Synthetic fuel
-- 78 78
-- 80 80
------- ------ ------ ------- ------ ------
Total Revenues 2,788
78 2,866 2,613 80
2,693
OPERATING COSTS
AND
EXPENSES
Owned, leased
and
corporate
housing
- direct (4)
158 -- 158
214 -- 214
Timeshare -
direct 323
-- 323 283
-- 283
Reimbursed costs
1,959 -- 1,959 1,852
-- 1,852
General, administrative
and other
(5) 187
-- 187 174
-- 174
Synthetic fuel
-- 78 78
-- 133 133
------- ------ ------ ------- ----- ------
Total Expenses 2,627
78 2,705 2,523 133 2,656
------- ------ ------ ------- ----- ------
OPERATING INCOME
$161 $ -- 161
$90 $(53) 37 *
======= ====== =======
=====
Gains and other
income
(6)
52
69
Interest expense
(33)
(27)
Interest income
51
47
Provision for
loan
losses
--
(12)
Equity in earnings
(losses)
- Synthetic
fuel (7)
10
--
- Other (8)
(16)
(6)
------
-----
INCOME FROM CONTINUING
OPERATIONS
BEFORE
INCOME
TAXES AND
MINORITY
INTEREST
225
108
(Provision)/Benefit
for
income
taxes
(29)
8
------
-----
INCOME FROM
CONTINUING
OPERATIONS
BEFORE
MINORITY
INTEREST
196
116
Minority Interest
(26)
--
------
-----
INCOME FROM
CONTINUING
OPERATIONS
170
116 47
Discontinued
operations
Loss from Senior Living
Services, net of tax
(3)
(125)
Income/(loss) from
Distribution Services,
net of tax
2
(28)
------
-----
NET INCOME/(LOSS)
$169
$(37) *
======
=====
EARNINGS PER
SHARE - Basic
Earnings from continuing
operations
$0.74
$0.49 51
Loss from discontinued
operations
(0.01)
(0.65) 98
------
------
Earnings/(loss) per
share
$0.73
$(0.16)
======
=====
EARNINGS PER
SHARE -
Diluted
Earnings from continuing
operations
$0.69
$0.47 47
Loss from discontinued
operations
--
(0.62) *
------
------
Earnings/(loss) per
share
$0.69
$(0.15) *
======
======
Basic Shares
231.4
237.0
Diluted Shares
245.8
247.3
* Calculated
percentage is not meaningful.
(1) Owned, leased,
corporate housing and other revenue includes revenue
from the properties we own or lease, our ExecuStay business, land rent
income and other revenue.
(2) Timeshare
interval sales and services includes total timeshare
revenue except for base fees, reimbursed costs and note sale gains.
(3) Cost reimbursements
include reimbursements from lodging properties
for Marriott funded operating expenses. Marriott earns no markup
on
these expenses.
(4) Owned, leased
and corporate housing - direct expenses include
operating expenses of our ExecuStay business unit, and owned or leased
hotels including lease payments, pre-opening expenses and
depreciation.
(5) General,
administrative and other expenses include the overhead
costs allocated to our lodging business segments (including ExecuStay
and timeshare) and our unallocated corporate overhead costs.
(6) Gains and
other income includes gains on the sale of real estate,
timeshare note sale gains, and gains on the sale of our interests in
joint ventures.
(7) Equity in
earnings/(losses) - Synthetic fuel includes our share of
the equity in earnings of the Synthetic fuel joint venture and the
earnout we received from the Synthetic fuel joint venture partner
beginning November 6, 2003. The earnout we received prior to November
6, 2003, along with the revenue generated from the previously
consolidated Synthetic fuel joint venture, are included in Synthetic
fuel revenue.
(8) Equity in
earnings/(losses) - Other includes our equity in
earnings/(losses) of unconsolidated joint ventures.
MARRIOTT INTERNATIONAL, INC.
Business Segments
($ in millions)
Year Ended (1)
--------------------------------
January 2, 2004 January 3, 2003
--------------- ---------------
REVENUES
Full-Service
$5,876
$5,508
Select-Service
1,000
967
Extended-Stay
557
600
Timeshare
1,279
1,147
--------------- ---------------
Total Lodging
8,712
8,222
Synthetic Fuel
302
193
--------------- ---------------
Total
$9,014
$8,415
=============== ===============
INCOME FROM CONTINUING
OPERATIONS
Full-Service
$407
$397
Select-Service
99
130
Extended-Stay
47
(3)
Timeshare
149
183
--------------- ---------------
Total Lodging Financial
Results (pretax)
702
707
Synthetic Fuel
(after tax)
96
74
Unallocated
corporate expense
(132)
(126)
Interest income,
provision for
loan losses
and interest expense
12
24
Income taxes
(excluding Synthetic Fuel) (202)
(240)
--------------- ---------------
Total
$476
$439
=============== ===============
(1) There were
52 weeks in the year ended January 2, 2004 and 53 weeks in
the year ended January 3, 2003.
MARRIOTT INTERNATIONAL, INC.
Business Segments
($ in millions)
Quarter Ended(1)
---------------------------------
January 2, 2004 January 3, 2003
---------------- ---------------
REVENUES
Full-Service
$1,899
$1,791
Select-Service
301
291
Extended-Stay
165
184
Timeshare
423
347
--------------- ----------------
Total Lodging
2,788
2,613
Synthetic Fuel
78
80
--------------- ----------------
Total
$2,866
$2,693
=============== ================
INCOME FROM CONTINUING
OPERATIONS
Full-Service
$148
$132
Select-Service
18
35
Extended-Stay
10
(38)
Timeshare
64
73
--------------- ----------------
Total Lodging Financial Results
(pretax)
240
202
Synthetic Fuel
(after tax)
30
36
Unallocated
corporate expense
(43)
(49)
Interest income,
provision for
loan losses
and interest expense
18
8
Income taxes
(excluding Synthetic Fuel)
(75)
(81)
--------------- ----------------
Total
$170
$116
=============== ================
(1) There were
16 weeks in the fourth quarter ended January 2, 2004 and 17
weeks in the fourth quarter ended January 3, 2003.
MARRIOTT INTERNATIONAL, INC.
CONSOLIDATED BALANCE SHEET
January 2, 2004 and January 3, 2003
($ in millions)
January 2,2004
January 3,2003
---------------- -----------------
ASSETS
Current Assets
Cash and equivalents
$229
$198
Accounts and notes receivable
699
522
Prepaid taxes
223
300
Other
84
89
Assets held for sale
--
664
---------------- -----------------
1,235
1,773
Property and
equipment
2,513
2,560
Goodwill
923
923
Other intangible
assets
526
495
Investments
in affiliates - equity 468
475
Investments
in affiliates - notes
receivable
558
522
Notes and other
receivables, net
Loans to timeshare owners
167
153
Other notes receivable
389
366
Other long-term receivables
548
473
---------------- -----------------
1,104
992
Other
850
556
---------------- -----------------
$8,177
$8,296
================ =================
LIABILITIES AND SHAREHOLDERS'
EQUITY
Current liabilities
Accounts payable
$584
$505
Accrued payroll and benefits
412
373
Casualty self insurance
43
32
Other payables and accruals
667
662
Current portion of long-term debt 64
221
Liabilities of businesses held
for sale
--
390
--------------- -----------------
1,770
2,183
Long-term debt
1,391
1,553
Casualty self
insurance reserves 169
106
Other long-term
liabilities
1,009
881
Shareholders'
equity
Class A common stock
3
3
Additional paid-in capital
3,317
3,224
Retained earnings
1,505
1,126
Deferred compensation
(81)
(43)
Treasury stock, at cost
(865)
(667)
Accumulated other comprehensive
loss
(41)
(70)
--------------- ----------------
3,838
3,573
--------------- ----------------
$8,177
$8,296
=============== ================
MARRIOTT
INTERNATIONAL, INC.
KEY LODGING STATISTICS
North American Comparable Company-Operated Properties (1)
--------------------------------------------------------------------------
16 Weeks Ended Jan. 2, 2004 vs.
17 Weeks Ended Jan. 3, 2003
------------------------------------------------
Average Daily
REVPAR
Occupancy Rate
------
--------- -------------
Brand
2003 vs. 2002 2003 vs. 2002
2003 vs. 2002
--------------------------------------------------------------------------
Marriott Hotels
&
Resorts
$91.21 -1.2% 66.6% 0.1% pts.
$136.93 -1.4%
The Ritz-Carlton
(2) $144.34 4.8% 63.5%
3.2% pts. $227.17 -0.5%
Renaissance
Hotels &
Resorts
$83.38 0.1% 63.0% 1.5%
pts. $132.35 -2.3%
Composite -
Full-Service
$95.84 0.1% 65.8% 0.6%
pts. $145.72 -0.8%
Residence Inn
$68.63 -1.7% 72.9% -0.6% pts.
$94.15 -0.8%
Courtyard
$59.92 -0.7% 64.9% -0.3% pts.
$92.38 -0.3%
TownePlace Suites
$42.56 2.1% 68.4% 2.0%
pts. $62.19 -0.9%
Composite -
Select-
Service
&
Extended-Stay $60.38
-0.4% 67.0% 0.0% pts. $90.18 -0.4%
Composite -
All $82.94
0.0% 66.2% 0.4% pts. $125.29 -0.5%
North American Comparable Systemwide Properties (1)
--------------------------------------------------------------------------
16 Weeks Ended Jan. 2, 2004 vs.
17 Weeks Ended Jan. 3, 2003
-----------------------------------------------------
Average Daily
REVPAR
Occupancy Rate
------
--------- -------------
Brand
2003 vs. 2002 2003 vs. 2002
2003 vs. 2002
--------------------------------------------------------------------------
Marriott Hotels
&
Resorts
$84.02 -0.9% 64.9% -0.1% pts.
$129.42 -0.8%
The Ritz-Carlton
(2) $144.34 4.8% 63.5%
3.2% pts. $227.17 -0.5%
Renaissance
Hotels &
Resorts
$78.51 1.5% 63.5%
2.3% pts. $123.73 -2.1%
Composite -
Full-Service
$87.80 0.4% 64.6%
0.5% pts. $135.89 -0.4%
Residence Inn
$66.68 -0.7% 72.0% -0.1% pts.
$92.55 -0.6%
Courtyard
$60.23 0.3% 65.2% -0.2%
pts. $92.34 0.6%
Fairfield Inn
$37.56 0.3% 60.0%
0.0% pts. $62.61 0.2%
TownePlace Suites
$42.64 2.3% 68.5%
2.4% pts. $62.22 -1.3%
SpringHill Suites
$51.41 4.1% 65.5%
2.2% pts. $78.44 0.6%
Composite -
Select-
Service
&
Extended-Stay $54.22
0.3% 65.6% 0.2% pts. $82.63 0.0%
Composite -
All $69.05
0.4% 65.2% 0.3% pts. $105.95 -0.1%
North American Comparable Company-Operated Properties (1)
--------------------------------------------------------------------------
52 Weeks Ended Jan. 2, 2004 vs.
53 Weeks Ended Jan. 3, 2003
-----------------------------------------------------
Average Daily
REVPAR
Occupancy Rate
------
--------- -------------
Brand
2003 vs. 2002 2003 vs. 2002
2003 vs. 2002
--------------------------------------------------------------------------
Marriott Hotels
&
Resorts
$93.81 -2.8% 69.3% -0.5% pts.
$135.42 -2.1%
The Ritz-Carlton
(3) $151.85 1.0% 65.7%
1.1% pts. $231.12 -0.8%
Renaissance
Hotels &
Resorts
$86.99 -0.4% 65.8% 0.9%
pts. $132.12 -1.8%
Composite -
Full-Service
$98.65 -1.8% 68.4% -0.1% pts.
$144.17 -1.6%
Residence Inn
$73.09 -2.3% 77.0% -0.3% pts.
$94.94 -1.9%
Courtyard
$63.01 -2.7% 67.6% -1.0% pts.
$93.16 -1.2%
TownePlace Suites
$44.48 -1.0% 70.3% -2.0% pts.
$63.24 1.8%
Composite -
Select-
Service
&
Extended-Stay $63.64
-2.2% 70.0% -0.8% pts. $90.98 -1.1%
Composite -
All $85.85
-1.9% 69.0% -0.4% pts. $124.45 -1.4%
North American Comparable Systemwide Properties (1)
--------------------------------------------------------------------------
52 Weeks Ended Jan. 2, 2004
vs. 53 Weeks Ended Jan. 3, 2003
-----------------------------------------------------
Average Daily
REVPAR
Occupancy Rate
------
--------- -------------
Brand
2003 vs. 2002 2003 vs. 2002
2003 vs. 2002
--------------------------------------------------------------------------
Marriott Hotels
&
Resorts
$86.87 -2.4% 67.6% -0.4% pts.
$128.53 -1.8%
The Ritz-Carlton
(3) $151.85 1.0% 65.7%
1.1% pts. $231.12 -0.8%
Renaissance
Hotels &
Resorts
$80.92 0.1% 65.3%
1.5% pts. $123.97 -2.2%
Composite -
Full-Service
$90.57 -1.6% 67.1% 0.0%
pts. $134.92 -1.6%
Residence Inn
$71.47 -1.1% 76.2% 0.2%
pts. $93.85 -1.4%
Courtyard
$63.65 -1.4% 68.5% -0.6% pts.
$92.90 -0.6%
Fairfield Inn
$41.22 -0.4% 64.1% -0.3% pts.
$64.28 0.2%
TownePlace Suites
$44.89 -0.1% 70.9% 0.0%
pts. $63.34 -0.2%
SpringHill Suites
$54.94 3.2% 68.4%
1.3% pts. $80.38 1.3%
Composite -
Select-
Service
&
Extended-Stay $57.95
-0.8% 69.2% -0.2% pts. $83.70 -0.6%
Composite -
All $72.31
-1.3% 68.3% -0.1% pts. $105.86 -1.1%
(1) Composite
- All statistics include properties for the Marriott Hotels
& Resorts, Renaissance Hotels & Resorts, The Ritz-Carlton, Courtyard,
Residence Inn, TownePlace Suites, Fairfield Inn, and SpringHill Suites
brands. Select-Service and Extended-Stay composite statistics include
properties for the Courtyard, Residence Inn, TownePlace Suites,
Fairfield Inn and SpringHill Suites brands.
(2) Statistics
for The Ritz-Carlton are for the four months ended
December 31, 2003.
(3) Statistics
for The Ritz-Carlton are for the twelve months ended
December 31, 2003.
MARRIOTT INTERNATIONAL, INC.
KEY LODGING STATISTICS
International Comparable Company-Operated Properties (1,2)
--------------------------------------------------------------------------
Four Months Ended December 31, 2003
and December 31, 2002
-------------------------------------------------
Average Daily
REVPAR
Occupancy Rate
------
--------- -------------
Brand
2003 vs. 2002 2003 vs. 2002
2003 vs. 2002
--------------------------------------------------------------------------
Caribbean &
Latin
America
$78.06 8.2% 63.8%
4.0% pts. $122.41 1.5%
Continental
Europe $87.09 -0.6%
71.5% 3.0% pts. $121.77 -4.7%
United Kingdom
$128.11 5.1% 82.9%
4.5% pts. $154.46 -0.6%
Middle East
& Africa $53.82 34.5% 72.5%
5.8% pts. $74.25 23.8%
Asia Pacific(4)
$69.92 1.2% 75.5% -0.4%
pts. $92.59 1.7%
Total International
(5)
$80.81 4.0% 72.1%
2.3% pts. $112.09 0.7%
International Comparable Systemwide Properties (1,2)
--------------------------------------------------------------------------
Four Months Ended December 31, 2003
and December 31, 2002
------------------------------------------------
Average Daily
REVPAR
Occupancy Rate
------
--------- -------------
Brand
2003 vs. 2002 2003 vs. 2002
2003 vs. 2002
--------------------------------------------------------------------------
Caribbean &
Latin
America
$73.04 8.2% 62.8%
4.4% pts. $116.29 0.6%
Continental
Europe $85.56 1.3%
69.8% 3.6% pts. $122.60 -3.8%
United Kingdom
$101.01 -1.6% 78.1% 1.1%
pts. $129.28 -2.9%
Middle East
& Africa $50.38 26.5% 67.6%
2.3% pts. $74.56 22.2%
Asia Pacific(4)
$77.66 3.8% 76.8%
0.6% pts. $101.16 3.0%
Total International
(5)
$83.15 3.4% 72.2%
2.2% pts. $115.09 0.3%
International Comparable Company-Operated Properties (1,3)
--------------------------------------------------------------------------
Twelve Months Ended December 31, 2003
and December 31, 2002
--------------------------------------------------
Average Daily
REVPAR
Occupancy Rate
------
--------- -------------
Brand
2003 vs. 2002 2003 vs. 2002
2003 vs. 2002
--------------------------------------------------------------------------
Caribbean &
Latin
America
$85.32 9.5% 67.5%
4.2% pts. $126.45 2.7%
Continental
Europe $79.92 -4.9%
67.9% 0.3% pts. $117.79 -5.4%
United Kingdom
$113.48 -2.4% 76.6% -0.7% pts.
$148.14 -1.5%
Middle East
& Africa $47.49 15.7% 66.5%
0.4% pts. $71.39 14.9%
Asia Pacific(4)
$55.86 -10.5% 65.5% -6.7% pts.
$85.25 -1.4%
Total International
(5)
$74.14 -1.8% 67.6% -1.3% pts.
$109.62 0.1%
International Comparable Systemwide Properties (1,3)
--------------------------------------------------------------------------
Twelve Months Ended December 31, 2003
and December 31, 2002
------------------------------------------------
Average Daily
REVPAR
Occupancy Rate
------
--------- -------------
Brand
2003 vs. 2002 2003 vs. 2002
2003 vs. 2002
--------------------------------------------------------------------------
Caribbean &
Latin
America
$79.49 8.5% 65.3%
3.8% pts. $121.64 2.2%
Continental
Europe $77.50 -3.5%
64.9% 0.3% pts. $119.40 -4.0%
United Kingdom
$90.71 -4.2% 72.3% -0.8% pts.
$125.44 -3.2%
Middle East
& Africa $46.00 15.8% 64.3%
0.6% pts. $71.58 14.6%
Asia Pacific(4)
$63.10 -6.8% 67.8% -5.3% pts.
$93.13 0.5%
Total International
(5)
$75.69 -1.5% 67.5% -1.0% pts.
$112.14 0.0%
(1) International
financial results are reported on a period end basis,
while International statistics are reported on a month end basis.
(2) Statistics
are in constant dollars and include results for September
through December. Excludes North America.
(3) Statistics
are in constant dollars and include results for January
through December. Excludes North America.
(4) Excludes
Hawaii.
(5) Includes
Hawaii.
MARRIOTT INTERNATIONAL, INC.
Total Lodging Products (1)
--------------------------------------------------------------------------
Number of Number
of
Properties Rooms/Suites
Jan. 2, vs. Jan. 3, Jan. 2, vs. Jan. 3,
Brand
2004 2003
2004 2003
--------------------------------
----------------------------------------
Full-Service
Lodging
--------------------
Marriott Hotels & Resorts
472 +22 173,974
+8,774
The Ritz-Carlton
56 +5
18,347 +1,781
Renaissance Hotels & Resorts 126
-- 45,614 -185
Ramada International
192 +46 26,150
+4,920
Select-Service
Lodging
----------------------
Courtyard
616 +29 88,214
+3,858
Fairfield Inn
524 +21 50,206
+1,992
SpringHill Suites
110 +12 12,682
+1,473
Extended-Stay
Lodging
---------------------
Residence Inn
449 +21 53,314
+2,741
TownePlace Suites
111 +7
11,381 +677
Marriott Executive Apartments 13
+2 2,322
+315
Timeshare
---------
Marriott Vacation Club
International
41 -4
7,622 +649
Horizons by Marriott Vacation
Club International
2 --
256 +110
The Ritz-Carlton Club
4 --
234 +30
Marriott Grand Residence Club 2
-- 248
--
----------------- ---------------------
Total
2,718 +161 490,564
+27,135
================= =====================
(1) Total Lodging
Products excludes the 2,978 corporate housing rental
units.
MARRIOTT INTERNATIONAL, INC.
Non-GAAP Financial Measure Reconciliation
(in millions, except per share amounts)
We consider income from continuing
operations and the effective tax rate excluding the impact of the Synthetic
Fuel joint venture, to be meaningful performance indicators because they
reflect that portion of our income from continuing operations and the effective
tax rate that relates to our lodging business and enables investors to
compare the results of our operations and effective tax rate to that of
other lodging companies.
The reconciliation of the effective
income tax rate from continuing operations to the effective income tax
rate from continuing operations, excluding the impact of our Synthetic
Fuel business is as follows:
Fourth Quarter YTD 2003
Continuing Operations
-------------------------------------------
Income from
Continuing Synthetic Fuel Excluding
Operations Impact
Synthetic Fuel
------------ -------------- --------------
Pre tax income
(loss)
$488 $(94)
$582
Tax
Benefit/(Provision)
(168)
34 (202)
Tax Credits
211 211
--
------------ -------------- --------------
Total
Tax Benefit/(Provision) 43
245 (202)
------------ -------------- --------------
Income from
Continuing
Operations
before Minority
Interest
531 151
380
Minority Interest
(55)
(55)
--
Income from Continuing
Operations
$476
$ 96 $380
============ ============== ==============
Diluted Shares
245.4 245.4
245.4
Earnings per
Share - Diluted $1.94
$0.39 $1.55
Tax Rate
-8.8%
34.6%
Fourth Quarter YTD 2002
Continuing Operations
-------------------------------------------
Income from
Continuing Synthetic Fuel Excluding
Operations Impact
Synthetic Fuel
------------ -------------- --------------
Pre tax income
(loss)
$471 $(134)
$605
Tax
Benefit/(Provision) (191)
49 (240)
Tax Credits
159
159
--
------------ -------------- --------------
Total Tax Benefit/(Provision)
(32)
208 (240)
------------ -------------- --------------
Income from
Continuing
Operations
before Minority
Interest
439
74 365
Minority Interest
--
--
--
------------ -------------- --------------
Income from
Continuing
Operations
$439
$ 74 $365
============ ============== ==============
Diluted Shares
254.6 254.6
254.6
Earnings per
Share - Diluted $1.74
$0.29 $1.45
Tax Rate
6.8%
39.6%
MARRIOTT INTERNATIONAL, INC.
Non-GAAP Financial Measure Reconciliation
(in millions, except per share amounts)
We consider income from continuing
operations and the effective tax rate excluding the impact of the Synthetic
Fuel joint venture, to be meaningful performance indicators because they
reflect that portion of our income from continuing operations and the effective
tax rate that relates to our lodging business and enables investors to
compare the results of our operations and effective tax rate to that of
other lodging companies.
The reconciliation of the effective
income tax rate from continuing operations to the effective income tax
rate from continuing operations, excluding the impact of our Synthetic
Fuel business is as follows:
Fourth Quarter 2003
Continuing Operations
-------------------------------------------
Income from
Continuing Synthetic Fuel Excluding
Operations Impact
Synthetic Fuel
------------ -------------- --------------
Pre tax income
(loss)
$225
$ 10 $215
Tax
Benefit/(Provision)
(78)
(3) (75)
Tax Credits
49
49 --
------------ -------------- --------------
Total Tax Benefit/(Provision)
(29)
46 (75)
------------ -------------- --------------
Income from
Continuing
Operations
before Minority
Interest
196
56 140
Minority Interest
(26)
(26) --
------------ -------------- --------------
Income from
Continuing
Operations
$170
$ 30 $140
============ ============== ==============
Diluted Shares
245.8 245.8
245.8
Earnings per
Share - Diluted $0.69
$0.12 $0.57
Tax Rate
12.9%
34.5%
Fourth Quarter 2002
Continuing Operations
-------------------------------------------
Income from
Continuing Synthetic Fuel Excluding
Operations Impact
Synthetic Fuel
------------ -------------- --------------
Pre tax income
(loss)
$108 $(53)
$161
Tax
Benefit/(Provision)
(60)
21 (81)
Tax Credits
68
68
--
------------ -------------- --------------
Total Tax Benefit/(Provision)
8
89 (81)
------------ -------------- --------------
Income from
Continuing
Operations
before Minority
Interest
116
36
80
Minority Interest
--
--
--
------------ -------------- --------------
Income from
Continuing
Operations
$116 $ 36
$ 80
============ ============== ==============
Diluted Shares
247.3 247.3
247.3
Earnings per
Share - Diluted $0.47
$0.14 $0.33
Tax Rate
-7.4%
49.7%
MARRIOTT INTERNATIONAL, INC.
Non-GAAP Financial Measure Reconciliation
(in millions)
We consider lodging operating income
to be a meaningful indicator of our performance because it measures our
growth in profitability as a lodging company and enables investors to compare
the operating income related to our lodging segments to the operating income
of other lodging companies.
The reconciliation of operating
income to lodging operating income is as follows:
Fiscal Year
---------------------
2003 2002
---------- --------
Operating Income
$377 $321
Less:
Synthetic Fuel Operating Loss
104 134
---------- --------
Lodging Operating
Income
$481 $455
========== ========
Fourth Quarter
---------------------
2003 2002
---------- --------
Operating Income
$161
$37
Less:
Synthetic Fuel Operating Loss
--
53
---------- --------
Lodging Operating
Income
$161
$90
========== ========
IRPR#1 |