BETHESDA, Md., Feb. 14, 2011
FOURTH QUARTER HIGHLIGHTS
- Fourth quarter adjusted diluted earnings per share (EPS)
totaled $0.39, a 22 percent increase
over prior year adjusted results,
- Total fee revenue increased 14 percent from the year-ago
quarter to $389 million as a result of
strong revenue per available room (REVPAR) and unit growth. Total
incentive management fees climbed 27 percent. North American
incentive fees increased 50 percent,
- Fourth quarter worldwide comparable systemwide REVPAR
rose 8.1 percent using constant dollars. Average daily rate rose
2.3 percent using constant dollars,
- At year-end, the company’s worldwide pipeline of hotels
under construction, awaiting conversion or approved for development
totaled nearly 105,000 rooms, including nearly 45,000 rooms outside North America. The pipeline includes
AC Hotels by Marriott, a new brand with over 9,000 rooms expected at
launch in 2011,
- Over 8,500 rooms opened during the quarter, including
over 1,800 rooms converted from competitor brands and 2,100 rooms in
international markets.
Marriott International, Inc. (NYSE: MAR), in addition to
reporting its fourth quarter and full year 2010 results today,
announced a plan to split the company’s businesses into two separate,
publicly traded companies. Marriott International expects to spin
off its timeshare operations and development business as a new
independent company through a special tax-free dividend to Marriott
International shareholders in late 2011.
DETAILS OF THE TRANSACTION
Under the plan, the new company will focus on the timeshare
business as the exclusive developer and operator of timeshare,
fractional and related products under the Marriott brand and the
exclusive developer of fractional and related products under the
Ritz-Carlton brand. After the split, Marriott International will
concentrate on the lodging management and franchise business.
Marriott will also receive franchise fees from the timeshare
company’s use of the Marriott and Ritz-Carlton brands.
Marriott International chairman and chief executive officer,
J.W. Marriott, Jr., said, “Marriott took a bold step when we introduced
our Marriott brand to the timeshare industry in 1984. In this
transaction, we take another innovative step forward as we combine the
power of the Marriott and Ritz-Carlton brands with the flexibility and
focus of a new independent timeshare company.
“The transaction will permit both companies to tailor their
business strategies to best address market opportunities in their
respective industries. The new timeshare company will be
positioned to expand faster over time while Marriott International will
further advance its longstanding strategy of separating real estate
from management and franchise operations. With two public
companies, shareholders will be able to pursue investment goals in
either or both companies rather than one combined organization.
“Marriott Vacation Club owners and guests and The Ritz-Carlton
Destination Club members should see no change in the branding or
quality of their properties, services, usage options, use of Marriott
Rewards points, or access to Marriott International’s hotels. The
companies will continue to work together to provide outstanding
vacation experiences, similar to the relationship between Marriott
International and the franchisees of its hotel properties. After
the split, both companies will remain dedicated to the highest
standards of quality and value and the brand promise for which Marriott
and Ritz-Carlton are well known and widely respected.
“Day-to-day operations at both companies should not be
affected by this transaction. During the past few years, our
company has brought staffing levels and expenses in line with operating
conditions across our businesses. While we will continue to
improve efficiency where possible, we do not expect this transaction to
result in work force reductions. Associates should continue to
have attractive career opportunities due to the growth prospects of
both companies,” added Mr. Marriott.
As two separate public companies, both Marriott International
and the new company will have separate boards of directors. J.W.
Marriott, Jr. will remain chairman of the board and chief executive
officer of Marriott International. Stephen P. Weisz, president of
Marriott’s timeshare business since 1997 and a 39-year Marriott
veteran, will become chief executive officer of the new company.
William J. Shaw, who recently announced his retirement as vice
chairman of the company at Marriott International and also resigned
from its board, will become chairman of the board of the new timeshare
company and Deborah Marriott Harrison,
senior vice president of government affairs for Marriott International,
will serve as a board member.
Mr. Weisz said, “Our new company will be independent and the
largest pure-play timeshare firm in the world. We will be
publicly-held and financially sound with significant growth
opportunities including meaningful upside as the economic recovery
proceeds. We believe our outstanding brands, unparalleled
operating skill, prime resort locations and world-class sales expertise
will continue to provide us with a significant competitive advantage.
“With the launch of the Marriott Vacation Club Destinations
timeshare program, our points-based product, in 2010, we are confident
in our ability to fulfill the dreams and meet the growing expectations
of our customers. We expect to continue to create value for
shareholders through a diverse stream of income, including development,
management and financing. We dramatically improved our cost
structure and efficiency in the last two years and are well-positioned
for the upturn. And with over $1.5 billion
in timeshare segment inventory at year-end 2010, our near term
investment needs are modest. All in all, we expect to generate
meaningful cash from operations in the next few years. I am
enormously excited by this new opportunity for our business and our
associates.”
In 2010, Marriott International’s timeshare segment reported
revenue of approximately $1.5 billion
(unadjusted for specific terms of the transaction). At year-end
2010, Marriott International’s timeshare segment operated 71 timeshare
and fractional resorts with more than 400,000 owners and approximately
10,000 employees.
After the special dividend, the Marriott family is expected to
hold approximately 21 percent of the outstanding common stock of each
company.
Marriott International will continue to be listed on the New
York Stock Exchange and expects that the new timeshare company will
also be listed on the New York Stock Exchange. The new timeshare
company does not expect to pay a quarterly cash dividend or be
investment grade in the near term. Marriott International does
not expect to change its quarterly cash dividend as a result of this
transaction.
Marriott will disclose more details about the respective pro
forma balance sheets and pro forma income statements of the two
companies when the new timeshare company files a Form 10 registration
statement with the Securities and Exchange Commission, which it expects
to occur sometime in the second quarter of 2011. The transaction
is subject to the receipt of normal and customary regulatory approvals,
the execution of inter-company agreements, receipt of a favorable
ruling from the Internal Revenue Service (IRS), arrangement of adequate
financing facilities, final approval by Marriott International’s board
of directors, and other related matters. The transaction will not
require shareholder approval and will have no impact on Marriott’s
contractual obligations to the existing securitizations. Subject
to the completion of this ongoing work and the receipt of regulatory
approvals, the spin-off should be completed before year-end 2011.
FOURTH QUARTER 2010 RESULTS
Fourth quarter 2010 adjusted net income totaled $150 million, a 27 percent increase compared
to fourth quarter 2009 adjusted net income. Adjusted diluted EPS
totaled $0.39, a 22 percent increase
from adjusted diluted EPS in the year-ago quarter. On October 6, 2010, the company forecasted fourth
quarter diluted EPS of $0.33 to $0.36.
Reported net income totaled $173
million in the fourth quarter of 2010 compared to $106 million in the year-ago quarter.
Reported diluted EPS was $0.46 in
the fourth quarter of 2010 compared to $0.28
in the fourth quarter of 2009.
Adjusted net income and adjusted diluted EPS for the 2010
fourth quarter exclude $100 million
pretax ($62 million after-tax and $0.16 per diluted share) of non-cash
impairment and other charges, including an $84
million impairment charge related to a revenue management
software investment (see below) and $27 million
of impairment charges related to the anticipated disposition of a land
parcel and a golf course. An $11 million
reversal of a liability recorded as part of the Timeshare strategy
impairment charge in the 2009 third quarter partially offset these
charges. Fourth quarter 2010 adjusted results also exclude an $85 million ($0.22
per diluted share) non-cash benefit in the provision for income taxes
resulting from a settlement with the IRS related to the treatment of
funds received from foreign subsidiaries.
The revenue management software investment noted above is
designed to manage and price group rooms and catering business at North
American full-service hotels and will be a significant competitive
advantage. The system rollout began in the fourth quarter of 2010
and the company expects it will be implemented at nearly 500 hotels by
mid-2013 with more properties to follow. Marriott funded the
nearly $270 million total system cost as
it was developed, expecting to recover the cost from individual hotel
properties over time. However, due to the significant impact of
the recent recession on hotel owner profitability and the long-term
nature of its relationships with its owners and franchisees, in the
fourth quarter Marriott agreed to absorb a portion of the cost.
As a result, the company recorded the $84
million impairment charge on the investment in the fourth
quarter to reflect the expected levels of cost recovery.
Adjusted results for the 2009 fourth quarter exclude $19 million pretax ($12
million after-tax and $0.03 per
diluted share) of restructuring costs and other charges.
Speaking of the year’s results, Mr. Marriott said, “We clearly
turned the corner as 2010 progressed and our company delivered
outstanding results for the year. Business travelers headed back
on the road, and worldwide systemwide REVPAR increased nearly 6 percent
during the year with the fourth quarter up over 8 percent. In
North America, we saw growing momentum at our limited-service hotels,
as stronger urban markets drove systemwide REVPAR up 8 percent in the
quarter. REVPAR at our hotels in China
rose 33 percent on a constant dollar basis.
“We were also encouraged by trends in our North American group
business. Fourth quarter catering revenue for the Marriott Hotels
& Resorts brand increased 4 percent and group room revenue rose 3
percent. Near term group bookings for that brand are also picking
up. Revenue for group rooms booked in the 2010 fourth quarter for
stays in 2011 increased 21 percent year-over-year, including 11 percent
higher room rates.
“In our timeshare business, contract sales in 2010 totaled
over $700 million and the business
generated over $245 million in pretax
free cash flow. Our new points-based timeshare product offers
customers more price points and greater flexibility of use.
“We opened 157 properties with nearly 29,000 rooms during the
year, including our first EDITION hotel in Hawaii,
and announced two new brands, Autograph Hotels and AC Hotels by
Marriott. By the end of 2010, we had already added 13 Autograph
hotels, including The Cosmopolitan of Las
Vegas.
“While 2010 was a terrific year for the company, we are even
more optimistic and enthusiastic about the future. Demand and
pricing continue to strengthen. We expect 2011 worldwide
systemwide REVPAR to increase 6 to 8 percent. With nearly 105,000
rooms in our global development pipeline at the end of 2010, we expect
to add approximately 35,000 rooms to our system in 2011. With
continuing room rate momentum, premier service quality, and global
expansion, we expect an outstanding 2011.”
For the 2010 fourth quarter, REVPAR for worldwide comparable
systemwide properties increased 8.1 percent (a 7.6 percent increase
using actual dollars).
International comparable systemwide REVPAR rose 10.1 percent
(a 7.9 percent increase using actual dollars), including a 3.9 percent
increase in average daily rate (a 1.8 percent increase using actual
dollars) in the fourth quarter of 2010.
In North America, comparable
systemwide REVPAR increased 7.5 percent in the fourth quarter of 2010,
including a 1.8 percent increase in average daily rate. REVPAR
for comparable systemwide North American full-service and luxury hotels
(including Marriott Hotels & Resorts, The Ritz-Carlton and Renaissance
Hotels) increased 7.0 percent with a 2.6 percent increase in
average daily rate. REVPAR for comparable systemwide North
American limited-service hotels (including Courtyard, Residence
Inn, SpringHill Suites, TownePlace Suites and Fairfield Inn
& Suites) increased 8.0 percent in the fourth quarter with a
1.4 percent increase in average daily rate.
Marriott added 35 new properties (8,571 rooms) to its
worldwide lodging portfolio in the 2010 fourth quarter, including The
Cosmopolitan of Las Vegas, the Pune
Marriott Hotel and Convention Centre in India,
the JW Marriott Marquis Miami and the Algonquin Hotel, an Autograph
Collection hotel in New York City.
Eight properties (1,973 rooms) exited the system during the
quarter. At quarter-end, the company’s lodging group encompassed
3,545 properties and timeshare resorts for a total of over 618,000
rooms.
The company’s worldwide pipeline of hotels under construction,
awaiting conversion or approved for development totaled almost 700
properties with nearly 105,000 rooms at year-end. The pipeline
includes AC Hotels by Marriott, a new brand with over 9,000 rooms
expected at launch in 2011.
MARRIOTT REVENUES totaled over $3.6
billion in the 2010 fourth quarter compared to approximately $3.4 billion for the fourth quarter of 2009.
Base management and franchise fees rose 11 percent to $314 million reflecting higher REVPAR and fees
from new hotels. Fourth quarter worldwide incentive management
fees increased 27 percent to $75 million.
Incentive fees earned on hotels in North
America increased 50 percent to $27
million. In the fourth quarter, 26 percent of
company-managed hotels earned incentive management fees compared to 22
percent in the year-ago quarter.
Worldwide comparable company-operated house profit margins
increased 100 basis points in the fourth quarter reflecting higher
occupancy, rate increases and strong productivity. House profit
margins for comparable company-operated properties outside North America increased 130 basis points
and North American comparable company-operated house profit margins
increased 70 basis points from the year-ago quarter.
Owned, leased, corporate housing and other revenue, net of
direct expenses, increased $19 million
in the 2010 fourth quarter, to $41 million,
largely due to a $10 million increase in
branding fee revenue, the $4 million
reversal of a liability related to a hotel that closed in the quarter,
and $6 million of improved operating
results at owned and leased hotels.
In the fourth quarter, Marriott’s timeshare business continued
to focus its efforts on educating existing customers about the benefits
of its new points product. The program allows customers to
purchase timeshare in smaller increments than the traditional one-week
product and allows greater flexibility of use. In the fourth
quarter alone, over 30,000 existing owners joined the points program,
continuing to exceed the company’s expectations. Contract sales
to existing owners increased 47 percent in the fourth quarter compared
to the year-ago quarter. With fewer sales to new customers
year-over-year, fourth quarter adjusted Timeshare segment contract
sales declined $2 million to $201 million
(excluding a $4 million allowance for
residential contract cancellations recorded in the quarter). In
the prior year’s quarter, adjusted Timeshare segment contract sales
totaled $203 million (excluding a $28 million allowance for fractional and
residential contract cancellations).
In the fourth quarter, Timeshare sales and services revenue
totaled $372 million and, net of
expenses, totaled $43 million for the
quarter. Adjusting for restructuring and other charges, as well
as the impact of consolidating securitized notes had that occurred at
the beginning of 2009 rather than 2010, fourth quarter 2009 adjusted
Timeshare sales and services revenue would have totaled $373 million and, net of direct expenses,
would have totaled $64 million.
These adjustments and reported results for the 2009 quarter are
shown on page A-11.
Fourth quarter 2010 Timeshare sales and services revenue, net
of expenses, declined largely due to $8 million
of costs related to the new points-based program, a $6 million impairment charge related to a few
fractional projects, higher carry costs on unsold units, and lower
interest income on mortgage notes. These unfavorable variances
were partially offset by higher rental income and lower expenses
associated with reacquired inventory.
Timeshare segment results include Timeshare sales and services
revenue, net of direct expenses, as well as base management fees,
equity in earnings (losses), gains and other income, interest expense
and general, administrative and other expenses associated with the
timeshare business. Adjusted Timeshare segment results for the
2010 fourth quarter totaled $42 million
(as shown with reported results on page A-9) and included $15 million of interest expense related to the
consolidation of securitized Timeshare notes, as well as a $20 million gain on the sale of real estate,
both of which were included in the company’s fourth quarter 2010
guidance. In the prior year quarter, adjusted Timeshare segment
results would have totaled $28 million,
adjusting for the restructuring costs and other charges, as well as the
impact of consolidating securitized notes had that occurred at the
beginning of 2009 rather than 2010, as shown with reported results on
page A-11. Adjusted Timeshare segment results for the year-ago
quarter included $26 million of interest
expense related to the consolidation of securitized Timeshare notes.
ADJUSTED GENERAL, ADMINISTRATIVE and OTHER expenses for the
2010 fourth quarter increased 16 percent to $240
million, compared to adjusted expenses of $207
million in the year-ago quarter as shown with reported results
on page A-1. The increase in expenses reflected higher costs in
international growth markets, as well as $12
million of higher incentive compensation costs, a $5 million increase in legal costs, $4 million for brand initiatives, a $2 million increase in foreign exchange losses
and the unfavorable impact of the $3 million
reversal of a loan loss reserve in the year-ago quarter. These
expense increases were partially offset by $3
million of lower deferred compensation expenses in the quarter.
GAINS AND OTHER INCOME totaled $28
million and primarily reflected net gains on the sale of real
estate including $20 million from the
sale of a property associated with the timeshare business. The
prior year’s fourth quarter gains and other income totaled $4 million and included a $3 million gain on the sale of investments and
$1 million of net gains on the sale
of real estate.
INTEREST EXPENSE increased $16 million
to $50 million in the fourth quarter, primarily due to $15 million of interest expense related to the
consolidation of debt associated with securitized Timeshare notes, as
well as higher interest expense associated with the company’s deferred
compensation plan, partially offset by the impact of lower debt
balances. Adjusting for the impact of consolidating securitized
notes had that occurred at the beginning of 2009 rather than 2010,
fourth quarter 2009 interest expense would have been $60 million.
ADJUSTED INCOME TAXES
The adjusted provision for income taxes in the fourth quarter
of 2010 reflected a $12 million benefit
primarily associated with revisions to estimates of prior years’
foreign income tax expenses.
Adjusted Earnings before Interest Expense, Taxes,
Depreciation and Amortization (EBITDA)
Adjusted EBITDA totaled $325 million
in the 2010 fourth quarter. In the 2009 fourth quarter, adjusted
EBITDA totaled $300 million. If
the consolidation of securitized Timeshare notes had occurred at the
beginning of 2009, adjusted EBITDA in the 2009 fourth quarter would
have totaled $292 million.
Adjusted EBITDA for the fourth quarter of 2010 increased 11
percent over the year-ago quarter adjusted for the consolidation of
securitized notes. Adjusted EBITDA for the Timeshare segment
totaled $65 million in the 2010 fourth
quarter. If the consolidation of securitized Timeshare notes had
occurred at the beginning of 2009, adjusted Timeshare segment EBITDA in
the 2009 fourth quarter would have totaled $70
million. See pages A-14, A-15, and A-17 for the EBITDA and
adjusted EBITDA calculations.
FULL YEAR 2010 RESULTS
For the full year 2010, adjusted net income totaled $435 million, a 27 percent increase compared
to full year 2009 adjusted net income. Adjusted diluted EPS
totaled $1.15, an increase of 24 percent
from adjusted diluted EPS a year ago.
Reported net income totaled $458
million for full year 2010 compared to a reported net loss of $346 million a year ago. Reported
diluted EPS was $1.21 for 2010 compared
to reported diluted losses per share of $0.97
for 2009.
Adjusted net income and adjusted diluted EPS for full year
2010 exclude $100 million pretax ($62 million after-tax and $0.16 per diluted share) of impairment and
other charges and an $85 million ($0.23 per diluted share) non-cash benefit in
the provision for income taxes. Both items are described in more
detail earlier in this release under the caption “FOURTH QUARTER 2010
RESULTS”.
Adjusted net income and adjusted diluted EPS for full year
2009 exclude the $213 million pretax ($130 million after-tax and $0.37 per diluted share) restructuring costs
and other charges, as well as $752 million
pretax ($502 million after-tax and $1.41 per diluted share) of Timeshare strategy
impairment charges. Adjusted results for full year 2009 also
exclude the $56 million ($0.16 per diluted share) impact of non-cash
charges in the provision for income taxes.
REVPAR for the company’s worldwide comparable systemwide
properties increased 5.8 percent (a 5.9 percent increase using actual
dollars) in 2010.
International comparable systemwide REVPAR for 2010 increased
9.2 percent (a 9.3 percent increase using actual dollars), including a
5.9 percent increase in occupancy and a 0.2 percent decline in average
daily rate (flat in actual dollars).
In North America, comparable
systemwide REVPAR increased 4.9 percent in 2010. REVPAR at the
company’s comparable systemwide North American full-service and luxury
hotels (including Marriott Hotels & Resorts, The Ritz-Carlton
and Renaissance Hotels & Resorts) increased 5.5 percent
with a 3.7 percent increase in occupancy and an average daily rate
decline of 0.3 percent. REVPAR for comparable systemwide North
American limited-service hotels (including Courtyard, Residence
Inn, SpringHill Suites, TownePlace Suites and Fairfield Inn
& Suites) increased 4.4 percent with a 1.4 percent decline in
average daily rate.
MARRIOTT REVENUES totaled $11.7 billion
in 2010 compared to $10.9 billion in
2009. Total fees in 2010 were $1,185
million, an increase of 9 percent from the prior year.
Stronger base management and franchise fees reflected the
increase in worldwide REVPAR and unit growth across the system.
Incentive management fees increased 18 percent reflecting higher
property-level profit due to worldwide REVPAR increases and continued
cost control, as well as international unit growth. For full year
2010, 27 percent of company-operated hotels earned incentive management
fees compared to 25 percent in the prior year. Approximately
two-thirds of incentive management fees came from hotels outside North America in both 2010 and 2009.
Owned, leased, corporate housing and other revenue, net of
direct expenses, totaled $91 million in
2010 compared to $68 million in 2009.
Results were primarily impacted by a $12
million increase in termination fees net of property closing
costs, an $8 million increase in
branding fee revenue, and the $4 million
reversal of a liability related to a hotel that closed in the 2010
fourth quarter, partially offset by the impact of a $6 million cancellation fee earned in 2009.
Adjusted Timeshare segment contract sales in 2010 declined $43 million to $705 million (excluding a $20 million allowance for fractional and
residential contract cancellations recorded in the year) largely due to
tough comparisons as a result of the 25th anniversary promotion in the
second quarter of 2009. Contract sales were also affected by
fewer sales to new customers in the third and fourth quarters of 2010
as the sales force continued to focus on efforts to educate existing
owners about the benefits of the new product. In the prior year,
adjusted Timeshare segment contract sales totaled $748 million (excluding an $83 million allowance for fractional and
residential contract cancellations).
Timeshare sales and services revenue totaled $1,221 million in 2010 and, net of direct
expenses, totaled $199 million in 2010.
Adjusting for the timeshare strategy impairment, restructuring
and other charges, as well as the impact of consolidating securitized
notes had that occurred at the beginning of 2009 rather than 2010, 2009
adjusted Timeshare sales and services revenue would have totaled $1,248 million and, net of direct expenses,
would have totaled $182 million.
These adjustments for full year 2009 and reported results are
shown on page A-12.
Full year 2010 Timeshare sales and services revenue, net of
direct expenses, benefitted from lower marketing and sales costs,
higher closing efficiency, year-over-year price increases, and a $15 million favorable adjustment to the
Marriott Rewards liability resulting from lower than projected cost of
Marriott Rewards redemptions, as well as higher rental income.
Results were reduced by a $6 million
impairment charge related to a few fractional projects, higher carry
costs on unsold units, and lower interest income on mortgage notes, as
well as $20 million of costs related to
the new points-based program.
Timeshare segment results includes Timeshare sales and
services revenue, net of direct expenses, as well as base management
fees, equity in earnings (losses), gains and other income,
noncontrolling interest, interest expense and general, administrative
and other expenses associated with the timeshare business.
Excluding other charges, adjusted Timeshare segment results for
2010 totaled $134 million as shown with
reported results on page A-10. Adjusted Timeshare segment results
for 2010 included $55 million of
interest expense related to the consolidation of securitized Timeshare
notes and a $20 million gain on the sale
of real estate. In 2009, adjusted timeshare results would have
totaled $86 million, adjusting for the
timeshare strategy impairment, restructuring and other charges, as well
as the impact of consolidating securitized notes had that occurred at
the beginning of 2009 rather than 2010, as shown with reported results
on page A-12. Adjusted Timeshare segment results for 2009
included $77 million of interest expense
related to the consolidation of securitized Timeshare notes.
ADJUSTED GENERAL, ADMINISTRATIVE and OTHER expenses increased $47 million to $669 million, an 8 percent
increase compared to adjusted expenses in 2009, largely due to higher
incentive compensation costs. These adjustments and reported
results are shown on page A-2.
GAINS AND OTHER INCOME totaled $35
million in 2010 and included $34 million
of net gains on the sale of real estate and $1
million of returns from joint venture investments. Gains
and other income of $31 million in 2009
included a $21 million gain on the
extinguishment of debt, net gains of $10 million
from the sale of real estate, a $3 million
gain on the sale of investments and $2 million
of preferred returns from joint venture investments, partially offset
by a $5 million impairment charge on an
investment.
INTEREST EXPENSE increased $62 million
to $180 million in 2010 primarily due to $55
million of interest expense related to the consolidation of debt
associated with securitized Timeshare notes, lower capitalized interest
and higher interest expense associated with the company’s deferred
compensation plan, partially offset by the impact of lower debt
balances. Adjusting for the impact of consolidating securitized
notes had that occurred at the beginning of 2009 rather than 2010, 2009
interest expense would have totaled $195 million.
ADJUSTED INCOME TAXES
The adjusted provision for income taxes for 2010 reflected a $12 million benefit primarily associated with
revisions to estimates of prior years’ foreign income tax expenses.
Adjusted EBITDA
Adjusted EBITDA totaled $1,044 million
in 2010 compared to 2009 adjusted EBITDA of $898
million. If the consolidation of securitized Timeshare
notes had occurred at the beginning of 2009, adjusted EBITDA for 2009
would have totaled $974 million.
Adjusted EBITDA for 2010 increased 7 percent over the prior year
adjusted for the consolidation of securitized notes. Adjusted
EBITDA for the Timeshare segment totaled $227
million in 2010. If the consolidation of securitized
Timeshare notes had occurred at the beginning of 2009, adjusted
Timeshare segment EBITDA would have totaled $208
million in 2009. See pages A-14, A-16, and A-18 for the
EBITDA and adjusted EBITDA calculations.
BALANCE SHEET
At year-end 2010, total debt was $2,829
million and cash balances totaled $505
million, compared to $2,298 million
in debt and $115 million of cash at
year-end 2009. Adjusting for the debt associated with securitized
Timeshare mortgage notes now required to be consolidated under new
accounting rules, adjusted total debt, net of cash, totaled $1,308 million, a decline of $875 million since year-end 2009. The
applicable adjustments are shown on page A-21.
At year-end 2010, Marriott had no borrowings outstanding under
its $2.4 billion revolving bank credit
facility.
COMMON STOCK
Weighted average fully diluted shares outstanding used to
calculate adjusted diluted EPS totaled 382.0 million in the 2010 fourth
quarter compared to 372.2 million in the year-ago quarter.
The company repurchased 1.5 million shares of common stock in
2010 at a cost of $57 million. The
remaining share repurchase authorization, as of December
31, 2010, totaled 23.8 million shares.
FIRST QUARTER 2011 OUTLOOK
For the first quarter, the company assumes comparable
systemwide REVPAR on a constant dollar basis will increase 6 to 8
percent in North America, 9 to 11
percent outside North America and 7
to 9 percent worldwide.
The company assumes first quarter 2011 Timeshare contract
sales will total $140 million to $150 million
and Timeshare sales and services revenue, net of direct expenses, will
total approximately $35 million to $40 million.
With these assumptions, Timeshare segment results for the first
quarter, including interest expense associated with securitized notes,
are expected to total $20 million to $25 million.
2011 OUTLOOK
The company’s 2011 full year guidance assumes that the
spin-off of the Timeshare segment does not occur in the current year
and does not include pro forma adjustments or transaction expenses.
For the full year 2011, the company expects a strong pricing
environment. The company assumes full year 2011 systemwide REVPAR
on a constant dollar basis will increase 6 to 8 percent in North America, outside North America and on a worldwide basis.
The company expects to open approximately 35,000 rooms in 2011
as most hotels expected to open are already under construction or
undergoing conversion from other brands. Given these assumptions,
full year 2011 fee revenue could total $1,310
million to $1,340 million and owned, leased, corporate housing
and other revenue, net of direct expense, could total $115 million to $125 million.
The company estimates that, on a full year basis, one point of
worldwide systemwide REVPAR impacts total fees by approximately $15 million pretax and owned, leased,
corporate housing and other revenue, net of direct expense, by
approximately $5 million pretax.
The company expects 2011 Timeshare contract sales to be in
line with 2010 adjusted levels.
The company expects its 2011 general and administrative costs
to increase 3 to 5 percent over 2010 adjusted levels reflecting
increased spending for brand initiatives and higher costs in
international growth markets.
|
|
|
First
Quarter 2011
|
Full
Year 2011
|
|
Total
fee revenue
|
$280
million to $290 million
|
$1,310
million to $1,340 million
|
|
Owned,
leased, corporate housing and other revenue, net of direct expenses
|
$20
million to $25 million
|
$115
million to $125 million
|
|
Timeshare
sales and services revenue, net of direct expenses
|
$35
million to $40 million
|
$200
million to $210 million
|
|
General,
administrative and other expenses
|
$155
million to $160 million
|
$690
million to $700 million
|
|
Operating
income
|
$175
million to $200 million
|
$925
million to $985 million
|
|
Gains
and other income
|
Approx
$5 million
|
Approx
$10 million
|
|
Net
interest expense(1)
|
Approx
$35 million
|
Approx
$150 million
|
|
Equity
in earnings (losses)
|
Approx
($5) million
|
Approx
($10) million
|
|
Earnings
per share
|
$0.24
to $0.28
|
$1.35
to $1.45
|
|
Tax
rate
|
|
34.0
percent
|
|
(1)
Net of interest income
|
|
|
|
|
|
|
The company expects investment spending in 2011 will total
approximately $500 million to $700 million,
including $50 million to $100 million
for maintenance capital spending. Investment spending will also
include other capital expenditures (including property acquisitions),
new mezzanine financing and mortgage notes, contract acquisition costs,
and equity and other investments.
Based upon the assumptions above, full year 2011 EBITDA is
expected to total $1,170 million to $1,230
million, a 12 to 18 percent increase over the prior year’s
adjusted EBITDA. Adjusted EBITDA for full year 2010 totaled $1,044 million and is shown on page A-14.
Marriott International, Inc. (NYSE: MAR) will conduct its
quarterly earnings review for the investment community and news media
on Tuesday, February 15, 2011 at 10 a.m. Eastern Time (ET). The
conference call will be webcast simultaneously via Marriott’s investor
relations website at http://www.marriott.com/investor,
click the “Recent and Upcoming Events” tab and click on the quarterly
conference call link. A replay will be available at that same
website until February 15, 2012.
The telephone dial-in number for the conference call is
706-679-3455 and the conference ID is 30673010. A telephone
replay of the conference call will be available from 1 p.m. ET, Tuesday,
February 15, 2011 until 8 p.m. ET,
Tuesday, February 22, 2011.
To access the replay, call 706-645-9291. The reservation
number for the recording is 30673010.
Definitions
All references to net income or net loss reflect net income or
net loss attributable to Marriott. All references to EPS or
diluted losses per share, unless otherwise noted, reflect EPS or
diluted losses per share attributable to Marriott shareholders.
Deutsche Bank Securities Inc. is acting as financial advisor
to the company regarding the plan to spin off its timeshare business.
Note on forward-looking statements: This
press release and accompanying schedules contain “forward-looking
statements” within the meaning of federal securities laws, including
statements concerning the proposed spin-off of our timeshare operations
and development business; REVPAR, profit margin and earnings trends,
estimates and assumptions; the number of lodging properties we expect
to add in the future; our expectations about investment spending and
share repurchases; the expected launch, timing and initial number of
rooms in the AC Hotels by Marriott joint venture; and similar
statements concerning anticipated future events and expectations that
are not historical facts. We caution you that these statements
are not guarantees of future performance and are subject to numerous
risks and uncertainties, including those we identify below and other
risk factors that we identify in our most recent annual report on Form
10-K or quarterly report on Form 10-Q.
Risks particular to the proposed spin-off include
unanticipated developments that delay or otherwise negatively affect
the transaction; our ability to obtain financing for the new timeshare
company; our ability to obtain regulatory approvals; our receipt of a
favorable letter ruling from the Internal Revenue Service; final
approval by our board of directors; the impact of the transaction on
our relationships with our customers and employees; the ability of the
separated businesses to operate independently; and disruption to our
operations resulting from the proposed spin-off. Other risks that
could affect forward-looking statements in this press release include
changes in market conditions; the continuation and pace of the economic
recovery; supply and demand changes for hotel rooms, corporate housing
and our timeshare products; competitive conditions in the lodging
industry; relationships with clients and property owners; the
availability of capital to finance hotel growth and refurbishment; and
any delay in or failure to obtain any necessary consent for the AC
Hotels by Marriott joint venture. Any of these factors could
cause actual results to differ materially from the expectations we
express or imply in this press release.
We make these forward-looking statements as of February 14, 2011. We undertake no
obligation to publicly update or revise any forward-looking statement,
whether as a result of new information, future events or otherwise.
MARRIOTT INTERNATIONAL, INC. (NYSE: MAR) is a leading lodging
company with more than 3,500 lodging properties in 70 countries and
territories. Marriott International operates and franchises hotels
under the Marriott, JW Marriott, The Ritz-Carlton, EDITION, The
Autograph Collection, Renaissance, Residence Inn, Courtyard, TownePlace
Suites, Fairfield Inn, SpringHill Suites and Bulgari brand
names; develops and operates vacation ownership resorts under the Marriott
Vacation Club, The Ritz-Carlton Destination Club, and Grand
Residences by Marriott brands; licenses and manages whole-ownership
residential brands, including The Ritz-Carlton Residences, JW
Marriott Residences and Marriott Residences; operates Marriott
Executive Apartments; provides furnished corporate housing through
its Marriott ExecuStay division;
and operates conference centers. The company is headquartered in Bethesda, Maryland, USA, and had
approximately 129,000 employees at 2010 year-end. It is recognized as
one of the best companies to work for by FORTUNE®. In fiscal year
2010, Marriott International reported sales from continuing operations
of nearly $12 billion. For more
information or reservations, please visit our web site at www.marriott.com, and for the
latest company news, visit www.marriottnewscenter.com.
Tables
follow
|
|
|
|
|
|
MARRIOTT
INTERNATIONAL, INC.
|
|
PRESS
RELEASE SCHEDULES
|
|
QUARTER
4, 2010
|
|
TABLE
OF CONTENTS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated
Statements of Income
|
A-1
|
|
|
|
|
|
Total
Lodging Products
|
A-4
|
|
|
|
|
|
Key
Lodging Statistics
|
A-5
|
|
|
|
|
|
Timeshare
Segment
|
A-9
|
|
|
|
|
|
Fourth
Quarter 2009 Timeshare Segment As Adjusted Had
|
|
|
|
ASU
Nos. 2009-16 and 2009-17 Been Adopted on January 3, 2009
|
A-11
|
|
|
|
|
|
Full
Year 2009 Timeshare Segment As Adjusted Had
|
|
|
|
ASU
Nos. 2009-16 and 2009-17 Been Adopted on January 3, 2009
|
A-12
|
|
|
|
|
|
Timeshare
Inventory As Adjusted Had ASU Nos. 2009-16 and
|
|
|
|
2009-17
Been Adopted on January 3, 2009
|
A-13
|
|
|
|
|
|
EBITDA
and Adjusted EBITDA
|
A-14
|
|
|
|
|
|
Fourth
Quarter 2009 EBITDA As Adjusted Had ASU Nos. 2009-16
|
|
|
|
and
2009-17 Been Adopted on January 3, 2009
|
A-15
|
|
|
|
|
|
2009
EBITDA As Adjusted Had ASU Nos. 2009-16 and 2009-17
|
|
|
|
Been
Adopted on January 3, 2009
|
A-16
|
|
|
|
|
|
Fourth
Quarter 2010 and Fourth Quarter 2009 EBITDA for Timeshare Segment
|
|
|
|
As
Adjusted Had ASU Nos. 2009-16 and 2009-17 Been Adopted on January 3,
2009
|
A-17
|
|
|
|
|
|
Full
Year 2010 and Full Year 2009 EBITDA for Timeshare Segment
|
|
|
|
As
Adjusted Had ASU Nos. 2009-16 and 2009-17 Been Adopted on January 3,
2009
|
A-18
|
|
|
|
|
|
2011
EBITDA Forecast
|
A-19
|
|
|
|
|
|
Full
Year 2010 Free Cash Flow for Timeshare Segment
|
A-20
|
|
|
|
|
|
Adjusted
Total Debt Net of Cash
|
A-21
|
|
|
|
|
|
Non-GAAP
Financial Measures
|
A-22
|
|
|
|
|
MARRIOTT
INTERNATIONAL, INC.
|
|
CONSOLIDATED
STATEMENTS OF INCOME
|
|
(in
millions, except per share amounts)
|
|
|
|
|
|
|
|
|
|
Adjustments
|
|
|
|
Adjustments
|
|
|
|
|
|
As
Reported
16 Weeks Ended
December 31,
2010
|
Other
Charges
|
Certain
Tax Items
|
As
Adjusted
16 Weeks Ended
December 31,
2010 **
|
|
As
Reported 16 Weeks Ended January 1, 2010
|
Restructuring
Costs & Other Charges
|
Timeshare
Strategy -
Impairment
Charges
|
Certain
Tax Items
|
As
Adjusted 16 Weeks Ended January 1, 2010 **
|
|
Percent
Better (Worse)
Adjusted 2010
vs.
Adjusted 2009
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
REVENUES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Base
management fees
|
$
178
|
$
-
|
$
-
|
$
178
|
|
$
163
|
$
-
|
$
-
|
$
-
|
$
163
|
|
9
|
|
Franchise
fees
|
136
|
-
|
-
|
136
|
|
119
|
-
|
-
|
-
|
119
|
|
14
|
|
Incentive
management fees
|
75
|
-
|
-
|
75
|
|
59
|
-
|
-
|
-
|
59
|
|
27
|
|
Owned,
leased, corporate housing and other revenue (1 )
|
342
|
-
|
-
|
342
|
|
335
|
-
|
-
|
-
|
335
|
|
2
|
|
Timeshare
sales and services (including net note sale gains of $38 for the
sixteen weeks ended January 1, 2010) (2)
|
372
|
-
|
-
|
372
|
|
377
|
(2)
|
-
|
-
|
375
|
|
(1)
|
|
Cost
reimbursements (3 )
|
2,539
|
-
|
-
|
2,539
|
|
2,327
|
-
|
-
|
-
|
2,327
|
|
9
|
|
Total Revenues
|
3,642
|
-
|
-
|
3,642
|
|
3,380
|
(2)
|
-
|
-
|
3,378
|
|
8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING
COSTS AND EXPENSES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Owned,
leased and corporate housing - direct (4 )
|
301
|
-
|
-
|
301
|
|
313
|
-
|
-
|
-
|
313
|
|
4
|
|
Timeshare
- direct
|
329
|
-
|
-
|
329
|
|
303
|
-
|
-
|
-
|
303
|
|
(9)
|
|
Reimbursed
costs
|
2,539
|
-
|
-
|
2,539
|
|
2,327
|
-
|
-
|
-
|
2,327
|
|
(9)
|
|
Restructuring
costs
|
-
|
-
|
-
|
-
|
|
7
|
(7)
|
-
|
-
|
-
|
|
-
|
|
General,
administrative and other (5 )
|
351
|
(111)
|
-
|
240
|
|
215
|
(8)
|
-
|
-
|
207
|
|
(16)
|
|
Total Expenses
|
3,520
|
(111)
|
-
|
3,409
|
|
3,165
|
(15)
|
-
|
-
|
3,150
|
|
(8)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING
INCOME
|
122
|
111
|
-
|
233
|
|
215
|
13
|
-
|
-
|
228
|
|
2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gains
and other income (6 )
|
28
|
-
|
-
|
28
|
|
4
|
-
|
-
|
-
|
4
|
|
600
|
|
Interest
expense
|
(50)
|
-
|
-
|
(50)
|
|
(34)
|
-
|
-
|
-
|
(34)
|
|
(47)
|
|
Interest
income
|
8
|
-
|
-
|
8
|
|
5
|
-
|
-
|
-
|
5
|
|
60
|
|
Equity
in earnings (losses) (7 )
|
2
|
(11)
|
-
|
(9)
|
|
(16)
|
6
|
-
|
-
|
(10)
|
|
10
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME
BEFORE INCOME TAXES
|
110
|
100
|
-
|
210
|
|
174
|
19
|
-
|
-
|
193
|
|
9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Benefit
(provision) for income taxes
|
63
|
(38)
|
(85)
|
(60)
|
|
(68)
|
(7)
|
-
|
-
|
(75)
|
|
20
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET
INCOME (LOSS)
|
173
|
62
|
(85)
|
150
|
|
106
|
12
|
-
|
-
|
118
|
|
27
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Add:
Net losses attributable to noncontrolling interests, net of tax
|
-
|
-
|
-
|
-
|
|
-
|
-
|
-
|
-
|
-
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET
INCOME (LOSS) ATTRIBUTABLE TO MARRIOTT
|
$
173
|
$
62
|
$
(85)
|
$
150
|
|
$
106
|
$
12
|
$
-
|
$
-
|
$
118
|
|
27
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EARNINGS
(LOSSES) PER SHARE - Basic
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (losses) per share attributable to Marriott shareholders (8
)
|
$
0.48
|
$
0.17
|
$
(0.23)
|
$
0.41
|
|
$
0.30
|
$
0.03
|
$
-
|
$
-
|
$
0.33
|
|
24
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EARNINGS
(LOSSES) PER SHARE - Diluted
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (losses) per share attributable to Marriott shareholders (8
)
|
$
0.46
|
$
0.16
|
$
(0.22)
|
$
0.39
|
|
$
0.28
|
$
0.03
|
$
-
|
$
-
|
$
0.32
|
|
22
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
Shares
|
365.6
|
365.6
|
365.6
|
365.6
|
|
357.6
|
357.6
|
357.6
|
357.6
|
357.6
|
|
|
|
Diluted
Shares
|
382.0
|
382.0
|
382.0
|
382.0
|
|
372.2
|
372.2
|
372.2
|
372.2
|
372.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
**
Denotes non-GAAP financial measures. Please see pages A-22 and
A-23 for additional information about our reasons for providing these
alternative financial measures and limitations on their use.
|
|
See
page A-3 for footnote references.
|
|
|
|
A-1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MARRIOTT
INTERNATIONAL, INC.
|
|
CONSOLIDATED
STATEMENTS OF INCOME
|
|
(in
millions, except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments
|
|
|
|
Adjustments
|
|
|
|
|
|
As
Reported
52 Weeks Ended
December 31,
2010
|
Other
Charges
|
Certain
Tax Items
|
As
Adjusted
52 Weeks Ended
December 31,
2010 **
|
|
As
Reported
52 Weeks Ended
January 1, 2010
|
Restructuring
Costs & Other Charges
|
Timeshare
Strategy -
Impairment
Charges
|
Certain
Tax Items
|
As
Adjusted
52 Weeks Ended
January 1, 2010 **
|
|
Percent
Better (Worse)
Adjusted 2010
vs.
Adjusted 2009
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
REVENUES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Base
management fees
|
$
562
|
$
-
|
$
-
|
$
562
|
|
$
530
|
$
-
|
$
-
|
$
-
|
$
530
|
|
6
|
|
Franchise
fees
|
441
|
-
|
-
|
441
|
|
400
|
-
|
-
|
-
|
400
|
|
10
|
|
Incentive
management fees
|
182
|
-
|
-
|
182
|
|
154
|
-
|
-
|
-
|
154
|
|
18
|
|
Owned,
leased, corporate housing and other revenue (1)
|
1,046
|
-
|
-
|
1,046
|
|
1,019
|
-
|
-
|
-
|
1,019
|
|
3
|
|
Timeshare
sales and services (including net note sale gains of $37 for the
fifty-two weeks ended January 1, 2010) (2)
|
1,221
|
-
|
-
|
1,221
|
|
1,123
|
24
|
-
|
-
|
1,147
|
|
6
|
|
Cost
reimbursements 3
|
8,239
|
-
|
-
|
8,239
|
|
7,682
|
-
|
-
|
-
|
7,682
|
|
7
|
|
Total Revenues
|
11,691
|
-
|
-
|
11,691
|
|
10,908
|
24
|
-
|
-
|
10,932
|
|
7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING
COSTS AND EXPENSES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Owned,
leased and corporate housing - direct (4)
|
955
|
-
|
-
|
955
|
|
951
|
-
|
-
|
-
|
951
|
|
-
|
|
Timeshare
- direct
|
1,022
|
-
|
-
|
1,022
|
|
1,040
|
1
|
-
|
-
|
1,041
|
|
2
|
|
Timeshare
strategy - impairment charges
|
-
|
-
|
-
|
-
|
|
614
|
-
|
(614)
|
-
|
-
|
|
-
|
|
Reimbursed
costs
|
8,239
|
-
|
-
|
8,239
|
|
7,682
|
-
|
-
|
-
|
7,682
|
|
(7)
|
|
Restructuring
costs
|
-
|
-
|
-
|
-
|
|
51
|
(51)
|
-
|
-
|
-
|
|
-
|
|
General,
administrative and other (5)
|
780
|
(111)
|
-
|
669
|
|
722
|
(100)
|
-
|
-
|
622
|
|
(8)
|
|
Total Expenses
|
10,996
|
(111)
|
-
|
10,885
|
|
11,060
|
(150)
|
(614)
|
-
|
10,296
|
|
(6)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING
INCOME (LOSS)
|
695
|
111
|
-
|
806
|
|
(152)
|
174
|
614
|
-
|
636
|
|
27
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gains
and other income (including gain on debt extinguishment of $21 for the
fifty-two weeks ended January 1, 2010) (6)
|
35
|
-
|
-
|
35
|
|
31
|
-
|
-
|
-
|
31
|
|
13
|
|
Interest
expense
|
(180)
|
-
|
-
|
(180)
|
|
(118)
|
-
|
-
|
-
|
(118)
|
|
(53)
|
|
Interest
income
|
19
|
-
|
-
|
19
|
|
25
|
-
|
-
|
-
|
25
|
|
(24)
|
|
Equity
in losses (7 )
|
(18)
|
(11)
|
-
|
(29)
|
|
(66)
|
39
|
-
|
-
|
(27)
|
|
(7)
|
|
Timeshare
strategy - impairment charges (non-operating)
|
-
|
-
|
-
|
-
|
|
(138)
|
-
|
138
|
-
|
-
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME
(LOSS) BEFORE INCOME TAXES
|
551
|
100
|
-
|
651
|
|
(418)
|
213
|
752
|
-
|
547
|
|
19
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Provision)
benefit for income taxes
|
(93)
|
(38)
|
(85)
|
(216)
|
|
65
|
(83)
|
(250)
|
56
|
(212)
|
|
(2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET
INCOME (LOSS)
|
458
|
62
|
(85)
|
435
|
|
(353)
|
130
|
502
|
56
|
335
|
|
30
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Add:
Net losses attributable to noncontrolling interests, net of tax
|
-
|
-
|
-
|
-
|
|
7
|
-
|
-
|
-
|
7
|
|
(100)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET
INCOME (LOSS) ATTRIBUTABLE TO MARRIOTT
|
$
458
|
$
62
|
$
(85)
|
$
435
|
|
$
(346)
|
$
130
|
$
502
|
$
56
|
$
342
|
|
27
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EARNINGS
(LOSSES) PER SHARE - Basic
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (losses) per share attributable to Marriott shareholders (8
)
|
$
1.26
|
$
0.17
|
$
(0.24)
|
$
1.20
|
|
$
(0.97)
|
$
0.37
|
$
1.41
|
$
0.16
|
$
0.96
|
|
25
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EARNINGS
(LOSSES) PER SHARE - Diluted (9)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (losses) per share attributable to Marriott shareholders (8
)
|
$
1.21
|
$
0.16
|
$
(0.23)
|
$
1.15
|
|
$
(0.97)
|
$
0.37
|
$
1.41
|
$
0.16
|
$
0.93
|
|
24
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
Shares
|
362.8
|
362.8
|
362.8
|
362.8
|
|
356.4
|
356.4
|
356.4
|
356.4
|
356.4
|
|
|
|
Diluted
Shares 9
|
378.3
|
378.3
|
378.3
|
378.3
|
|
356.4
|
356.4
|
356.4
|
356.4
|
367.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
**
Denotes non-GAAP financial measures. Please see pages A-22 and
A-23 for additional information about our reasons for providing these
alternative financial measures and limitations on their use.
|
|
See
page A-3 for footnote references.
|
|
|
|
A-2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MARRIOTT
INTERNATIONAL, INC.
|
|
FOOTNOTES
TO CONSOLIDATED STATEMENTS OF INCOME
|
|
|
|
|
|
|
|
|
|
(1) – Owned,
leased, corporate housing and other revenue includes
revenue from the properties we own or lease, revenue from our corporate
housing business, termination fees, branding fees and other revenue.
|
|
(2) – Timeshare
sales and services includes
total timeshare revenue except for base management fees and cost
reimbursements.
|
|
(3) – Cost
reimbursements include
reimbursements from properties for Marriott-funded operating expenses.
|
|
(4) – Owned,
leased and corporate housing - direct expenses
include operating expenses related to our owned or leased hotels,
including lease payments, pre-opening expenses and depreciation, plus
expenses related to our corporate housing business.
|
|
(5) – General,
administrative and other expenses
include the overhead costs allocated to our segments, and our corporate
overhead costs and general expenses.
|
|
(6) – Gains
and other income includes
gains and losses on: the sale of real estate, note sales or repayments
(except timeshare note securitizations), the sale of joint
ventures and investments; and debt extinguishments, as well as income
from cost method joint ventures.
|
|
(7) – Equity
in earnings (losses) includes
our equity in earnings (losses) of unconsolidated equity method joint
ventures.
|
|
(8) –
Earnings per share attributable to Marriott shareholders plus
adjustment items may not equal earnings per share attributable to
Marriott shareholders as adjusted due to rounding.
|
|
(9) –
Basic and fully diluted weighted average shares outstanding used to
calculate earnings per share for the period in which we had a loss are
the same because inclusion
of additional equivalents would be anti-dilutive.
|
|
|
|
A-3
|
|
|
MARRIOTT INTERNATIONAL, INC.
|
|
TOTAL
LODGING PRODUCTS (1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Number
of Properties
|
|
Number
of Rooms/Suites
|
|
Brand
|
|
December
31,
2010
|
January
1,
2010
|
vs.
January 1,
2010
|
|
December
31,
2010
|
January
1,
2010
|
vs.
January 1,
2010
|
|
|
|
|
|
|
|
|
|
|
|
Domestic
Full-Service
|
|
|
|
|
|
|
|
|
|
Marriott Hotels & Resorts
|
|
357
|
353
|
4
|
|
143,349
|
140,160
|
3,189
|
|
Renaissance Hotels
|
|
78
|
79
|
(1)
|
|
28,288
|
28,918
|
(630)
|
|
Autograph Collection
|
|
13
|
-
|
13
|
|
3,828
|
-
|
3,828
|
|
Domestic
Limited-Service
|
|
|
|
|
|
|
|
|
|
Courtyard
|
|
795
|
768
|
27
|
|
111,634
|
107,640
|
3,994
|
|
Fairfield Inn & Suites
|
|
648
|
620
|
28
|
|
58,510
|
55,622
|
2,888
|
|
SpringHill Suites
|
|
273
|
255
|
18
|
|
31,961
|
29,846
|
2,115
|
|
Residence Inn
|
|
595
|
591
|
4
|
|
71,571
|
70,995
|
576
|
|
TownePlace Suites
|
|
192
|
184
|
8
|
|
19,320
|
18,451
|
869
|
|
International
|
|
|
|
|
|
|
|
|
|
Marriott Hotels & Resorts
|
|
197
|
192
|
5
|
|
60,670
|
58,595
|
2,075
|
|
Renaissance Hotels
|
|
68
|
64
|
4
|
|
22,720
|
21,664
|
1,056
|
|
Courtyard
|
|
97
|
90
|
7
|
|
19,435
|
17,566
|
1,869
|
|
Fairfield Inn & Suites
|
|
10
|
9
|
1
|
|
1,235
|
1,109
|
126
|
|
SpringHill Suites
|
|
1
|
1
|
-
|
|
124
|
124
|
-
|
|
Residence Inn
|
|
18
|
17
|
1
|
|
2,559
|
2,417
|
142
|
|
TownePlace Suites
|
|
1
|
-
|
1
|
|
105
|
-
|
105
|
|
Marriott Executive Apartments
|
|
23
|
23
|
-
|
|
3,775
|
3,880
|
(105)
|
|
Luxury
|
|
|
|
|
|
|
|
|
|
The Ritz-Carlton - Domestic
|
|
39
|
40
|
(1)
|
|
11,587
|
12,115
|
(528)
|
|
The Ritz-Carlton - International
|
|
35
|
34
|
1
|
|
10,457
|
10,171
|
286
|
|
Bulgari Hotels & Resorts
|
|
2
|
2
|
-
|
|
117
|
117
|
-
|
|
Edition
|
|
1
|
-
|
1
|
|
353
|
-
|
353
|
|
The Ritz-Carlton Residential
|
|
28
|
26
|
2
|
|
3,085
|
2,706
|
379
|
|
The Ritz-Carlton Serviced Apartments
|
|
3
|
3
|
-
|
|
458
|
474
|
(16)
|
|
Timeshare
(2)
|
|
|
|
|
|
|
|
|
|
Marriott Vacation Club (3 )
|
|
53
|
52
|
1
|
|
11,918
|
11,854
|
64
|
|
The Ritz-Carlton Destination Club
|
|
10
|
9
|
1
|
|
491
|
461
|
30
|
|
The Ritz-Carlton Residences
|
|
4
|
4
|
-
|
|
238
|
237
|
1
|
|
Grand Residences by Marriott - Fractional
|
|
2
|
2
|
-
|
|
248
|
248
|
-
|
|
Grand Residences by Marriott - Residential
|
|
2
|
2
|
-
|
|
68
|
91
|
(23)
|
|
Sub
Total Timeshare
|
|
71
|
69
|
2
|
|
12,963
|
12,891
|
72
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
3,545
|
3,420
|
125
|
|
618,104
|
595,461
|
22,643
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Number
of Timeshare Interval, Fractional and Residential Resorts
|
|
|
|
|
|
|
|
|
Total
|
Properties
in
|
|
|
|
|
|
|
|
|
Properties
(2)
|
Active
Sales (4)
|
|
|
|
|
|
|
100%
Company-Developed
|
|
|
|
|
|
|
|
|
|
Marriott Vacation Club (3 )
|
|
53
|
27
|
|
|
|
|
|
|
The Ritz-Carlton Destination Club and Residences
|
|
12
|
10
|
|
|
|
|
|
|
Grand Residences by Marriott and Residences
|
|
4
|
3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Joint
Ventures
|
|
|
|
|
|
|
|
|
|
The Ritz-Carlton Destination Club and Residences
|
|
2
|
2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
71
|
42
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
Total Lodging Products excludes the 2,043 and 2,072 corporate housing
rental units as of December 31, 2010 and January 1, 2010, respectively.
(2)
Includes products that are in active sales as well as those that are
sold out. Residential products are included once they possess a
certificate of occupancy.
(3)
Marriott Vacation Club includes Horizons by Marriott Vacation Club
products that were previously reported separately.
(4)
Products in active sales may not be ready for occupancy.
|
|
|
|
A-4
|
|
|
|
|
|
|
|
|
|
|
MARRIOTT
INTERNATIONAL, INC.
KEY LODGING STATISTICS
Constant $
|
|
|
|
Comparable
Company-Operated International Properties(1)
|
|
|
|
|
|
Four
Months Ended December 31, 2010 and December 31, 2009
|
|
|
|
REVPAR
|
|
Occupancy
|
|
Average
Daily Rate
|
|
Region
|
|
2010
|
vs.
2009
|
|
2010
|
|
vs.
2009
|
|
2010
|
vs.
2009
|
|
Caribbean
& Latin America
|
|
$117.64
|
6.2%
|
|
67.1%
|
1.7%
|
pts.
|
|
$175.22
|
3.5%
|
|
Continental
Europe
|
|
$126.41
|
10.3%
|
|
74.1%
|
3.5%
|
pts.
|
|
$170.57
|
5.1%
|
|
United
Kingdom
|
|
$129.39
|
8.3%
|
|
77.1%
|
1.7%
|
pts.
|
|
$167.72
|
5.9%
|
|
Middle
East & Africa
|
|
$99.88
|
0.8%
|
|
73.3%
|
2.7%
|
pts.
|
|
$136.21
|
-2.9%
|
|
Asia
Pacific(2 )
|
|
$91.43
|
18.3%
|
|
68.6%
|
6.5%
|
pts.
|
|
$133.30
|
7.1%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Regional
Composite(3 )
|
|
$113.61
|
10.0%
|
|
72.4%
|
3.7%
|
pts.
|
|
$156.99
|
4.3%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
International
Luxury(4 )
|
|
$202.34
|
13.7%
|
|
64.5%
|
4.7%
|
pts.
|
|
$313.56
|
5.4%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
International(5 )
|
|
$123.28
|
10.5%
|
|
71.5%
|
3.9%
|
pts.
|
|
$172.37
|
4.6%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Worldwide(6
)
|
|
$105.02
|
7.9%
|
|
67.4%
|
2.9%
|
pts.
|
|
$155.77
|
3.3%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comparable
Systemwide International Properties(1)
|
|
|
|
|
|
Four
Months Ended December 31, 2010 and December 31, 2009
|
|
|
|
REVPAR
|
|
Occupancy
|
|
Average
Daily Rate
|
|
Region
|
|
2010
|
vs.
2009
|
|
2010
|
|
vs.
2009
|
|
2010
|
vs.
2009
|
|
Caribbean
& Latin America
|
|
$101.31
|
9.4%
|
|
65.3%
|
3.1%
|
pts.
|
|
$155.14
|
4.2%
|
|
Continental
Europe
|
|
$123.53
|
9.7%
|
|
73.4%
|
3.8%
|
pts.
|
|
$168.28
|
3.9%
|
|
United
Kingdom
|
|
$128.09
|
8.2%
|
|
76.6%
|
1.6%
|
pts.
|
|
$167.15
|
5.9%
|
|
Middle
East & Africa
|
|
$98.44
|
0.9%
|
|
73.1%
|
2.7%
|
pts.
|
|
$134.62
|
-2.8%
|
|
Asia
Pacific(2 )
|
|
$100.48
|
13.6%
|
|
69.2%
|
5.9%
|
pts.
|
|
$145.21
|
3.9%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Regional
Composite(3 )
|
|
$112.51
|
9.5%
|
|
71.6%
|
3.9%
|
pts.
|
|
$157.12
|
3.6%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
International
Luxury(4 )
|
|
$202.34
|
13.7%
|
|
64.5%
|
4.7%
|
pts.
|
|
$313.56
|
5.4%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
International(5 )
|
|
$120.57
|
10.1%
|
|
71.0%
|
4.0%
|
pts.
|
|
$169.89
|
3.9%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Worldwide(6
)
|
|
$87.02
|
8.1%
|
|
65.9%
|
3.6%
|
pts.
|
|
$132.02
|
2.3%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
We report financial results on a period basis and international
statistics on a monthly basis. Statistics are in
constant dollars for September
through December. International includes properties located
outside the
continental United States and
Canada, except for Worldwide which includes the continental United
States.
(2)
Does not include Hawaii.
(3)
Regional information includes the Marriott Hotels & Resorts,
Renaissance Hotels and Courtyard brands.
Includes Hawaii.
(4)
International Luxury includes The Ritz-Carlton properties outside
of the continental United States and Canada and
Bulgari Hotels & Resorts.
(5)
Includes Regional Composite and International Luxury.
(6)
Includes international statistics for the four calendar months
ended December 31, 2010 and December 31, 2009,
and the continental United
States statistics for the sixteen weeks ended December 31, 2010 and
January 1, 2010.
Includes the Marriott Hotels
& Resorts, Renaissance Hotels, The Ritz-Carlton, Bulgari Hotels
& Resorts,
Residence Inn, Courtyard,
Fairfield Inn & Suites, TownePlace Suites, and SpringHill Suites
brands.
|
|
|
|
|
MARRIOTT
INTERNATIONAL, INC.
KEY LODGING STATISTICS
Constant $
|
|
|
|
Comparable
Company-Operated International Properties(1)
|
|
|
|
|
|
Twelve
Months Ended December 31, 2010 and December 31, 2009
|
|
|
|
REVPAR
|
|
Occupancy
|
|
Average
Daily Rate
|
|
Region
|
|
2010
|
vs.
2009
|
|
2010
|
|
vs.
2009
|
|
2010
|
vs.
2009
|
|
Caribbean
& Latin America
|
|
$126.19
|
5.5%
|
|
70.7%
|
4.1%
|
pts.
|
|
$178.59
|
-0.5%
|
|
Continental
Europe
|
|
$114.92
|
7.6%
|
|
71.1%
|
4.0%
|
pts.
|
|
$161.63
|
1.6%
|
|
United
Kingdom
|
|
$121.68
|
7.8%
|
|
76.4%
|
3.1%
|
pts.
|
|
$159.27
|
3.3%
|
|
Middle
East & Africa
|
|
$93.86
|
-2.6%
|
|
70.5%
|
2.4%
|
pts.
|
|
$133.18
|
-5.9%
|
|
Asia
Pacific(2)
|
|
$83.96
|
23.3%
|
|
66.7%
|
11.7%
|
pts.
|
|
$125.88
|
1.7%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Regional
Composite(3)
|
|
$107.47
|
9.1%
|
|
71.1%
|
5.8%
|
pts.
|
|
$151.19
|
0.2%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
International
Luxury(4)
|
|
$198.82
|
10.7%
|
|
64.0%
|
6.0%
|
pts.
|
|
$310.46
|
0.4%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
International(5)
|
|
$117.38
|
9.4%
|
|
70.3%
|
5.8%
|
pts.
|
|
$166.93
|
0.3%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Worldwide(6)
|
|
$103.30
|
6.3%
|
|
68.7%
|
4.1%
|
pts.
|
|
$150.46
|
0.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comparable
Systemwide International Properties(1)
|
|
|
|
|
|
Twelve
Months Ended December 31, 2010 and December 31, 2009
|
|
|
|
REVPAR
|
|
Occupancy
|
|
Average
Daily Rate
|
|
Region
|
|
2010
|
vs.
2009
|
|
2010
|
|
vs.
2009
|
|
2010
|
vs.
2009
|
|
Caribbean
& Latin America
|
|
$109.45
|
10.6%
|
|
67.9%
|
6.3%
|
pts.
|
|
$161.09
|
0.3%
|
|
Continental
Europe
|
|
$111.95
|
7.1%
|
|
69.9%
|
4.5%
|
pts.
|
|
$160.08
|
0.2%
|
|
United
Kingdom
|
|
$120.47
|
7.7%
|
|
75.9%
|
3.1%
|
pts.
|
|
$158.75
|
3.3%
|
|
Middle
East & Africa
|
|
$92.74
|
-2.3%
|
|
70.4%
|
2.7%
|
pts.
|
|
$131.66
|
-6.0%
|
|
Asia
Pacific(2)
|
|
$90.71
|
16.5%
|
|
67.2%
|
10.1%
|
pts.
|
|
$134.90
|
-1.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Regional
Composite(3)
|
|
$106.01
|
8.9%
|
|
70.1%
|
5.9%
|
pts.
|
|
$151.12
|
-0.3%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
International
Luxury(4)
|
|
$198.82
|
10.7%
|
|
64.0%
|
6.0%
|
pts.
|
|
$310.46
|
0.4%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
International(5)
|
|
$114.31
|
9.2%
|
|
69.6%
|
5.9%
|
pts.
|
|
$164.24
|
-0.2%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Worldwide(6)
|
|
$87.28
|
5.8%
|
|
67.8%
|
4.1%
|
pts.
|
|
$128.82
|
-0.6%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
We report financial results on a period basis and international
statistics on a monthly basis. Statistics are in constant
dollars for January through
December. International includes properties located outside the
continental United States and
Canada, except for Worldwide
which includes the continental United States.
(2)
Does not include Hawaii.
(3)
Regional information includes the Marriott Hotels & Resorts,
Renaissance Hotels and Courtyard brands. Includes Hawaii.
(4)
International Luxury includes The Ritz-Carlton properties outside
of the continental United States and Canada and Bulgari
Hotels & Resorts.
(5)
Includes Regional Composite and International Luxury.
(6)
Includes international statistics for the twelve calendar months
ended December 31, 2010 and December 31, 2009, and the
continental United States
statistics for the fifty-two weeks ended December 31, 2010 and January
1, 2010. Includes the
Marriott Hotels &
Resorts, Renaissance Hotels, The Ritz-Carlton, Bulgari Hotels &
Resorts, Residence Inn, Courtyard,
Fairfield Inn & Suites,
TownePlace Suites, and SpringHill Suites brands.
|
|
|
|
A-6
|
|
|
|
|
|
|
|
|
|
|
|
|
MARRIOTT
INTERNATIONAL, INC.
KEY LODGING STATISTICS
|
|
|
|
Comparable
Company-Operated North American Properties(1)
|
|
|
|
|
|
Sixteen
Weeks Ended December 31, 2010 and January 1, 2010
|
|
|
|
REVPAR
|
|
Occupancy
|
|
Average
Daily Rate
|
|
Brand
|
|
2010
|
vs.
2009
|
|
2010
|
|
vs.
2009
|
|
2010
|
vs.
2009
|
|
Marriott
Hotels & Resorts
|
|
$108.08
|
5.6%
|
|
66.2%
|
1.3%
|
pts.
|
|
$163.16
|
3.5%
|
|
Renaissance
Hotels
|
|
$102.95
|
6.4%
|
|
65.2%
|
1.2%
|
pts.
|
|
$157.94
|
4.5%
|
|
Composite
North American Full-Service(2)
|
|
$107.12
|
5.7%
|
|
66.0%
|
1.3%
|
pts.
|
|
$162.19
|
3.6%
|
|
The
Ritz-Carlton(3)
|
|
$184.47
|
10.0%
|
|
65.4%
|
4.5%
|
pts.
|
|
$282.16
|
2.5%
|
|
Composite
North American Full-Service & Luxury(4)
|
|
$116.62
|
6.5%
|
|
66.0%
|
1.7%
|
pts.
|
|
$176.80
|
3.8%
|
|
Residence
Inn
|
|
$80.49
|
6.7%
|
|
71.9%
|
4.7%
|
pts.
|
|
$111.92
|
-0.2%
|
|
Courtyard
|
|
$67.72
|
6.0%
|
|
62.3%
|
2.9%
|
pts.
|
|
$108.75
|
1.1%
|
|
TownePlace
Suites
|
|
$46.18
|
11.0%
|
|
63.3%
|
6.1%
|
pts.
|
|
$73.00
|
0.2%
|
|
SpringHill
Suites
|
|
$59.47
|
7.5%
|
|
62.0%
|
2.6%
|
pts.
|
|
$95.94
|
3.0%
|
|
Composite
North American Limited-Service(5 )
|
|
$69.36
|
6.5%
|
|
65.0%
|
3.5%
|
pts.
|
|
$106.66
|
0.7%
|
|
Composite
- All(6)
|
|
$96.78
|
6.5%
|
|
65.6%
|
2.5%
|
pts.
|
|
$147.60
|
2.5%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comparable
Systemwide North American Properties(1)
|
|
|
|
|
|
|
|
Sixteen
Weeks Ended December 31, 2010 and January 1, 2010
|
|
|
|
REVPAR
|
|
Occupancy
|
|
Average
Daily Rate
|
|
Brand
|
|
2010
|
vs.
2009
|
|
2010
|
|
vs.
2009
|
|
2010
|
vs.
2009
|
|
Marriott
Hotels & Resorts
|
|
$93.45
|
6.3%
|
|
63.8%
|
2.5%
|
pts.
|
|
$146.49
|
2.2%
|
|
Renaissance
Hotels
|
|
$93.37
|
7.4%
|
|
65.3%
|
2.6%
|
pts.
|
|
$143.06
|
3.2%
|
|
Composite
North American Full-Service(2)
|
|
$93.43
|
6.5%
|
|
64.1%
|
2.5%
|
pts.
|
|
$145.87
|
2.4%
|
|
The
Ritz-Carlton(3)
|
|
$184.47
|
10.0%
|
|
65.4%
|
4.5%
|
pts.
|
|
$282.16
|
2.5%
|
|
Composite
North American Full-Service & Luxury(4)
|
|
$100.14
|
7.0%
|
|
64.2%
|
2.6%
|
pts.
|
|
$156.09
|
2.6%
|
|
Residence
Inn
|
|
$81.23
|
8.0%
|
|
72.9%
|
4.8%
|
pts.
|
|
$111.40
|
0.8%
|
|
Courtyard
|
|
$69.70
|
7.1%
|
|
63.2%
|
3.3%
|
pts.
|
|
$110.34
|
1.5%
|
|
Fairfield
Inn & Suites
|
|
$50.54
|
9.4%
|
|
60.0%
|
3.4%
|
pts.
|
|
$84.25
|
3.2%
|
|
TownePlace
Suites
|
|
$52.89
|
12.1%
|
|
66.7%
|
7.3%
|
pts.
|
|
$79.30
|
-0.1%
|
|
SpringHill
Suites
|
|
$60.54
|
7.8%
|
|
62.8%
|
3.6%
|
pts.
|
|
$96.33
|
1.6%
|
|
Composite
North American Limited-Service(5)
|
|
$67.03
|
8.0%
|
|
65.2%
|
4.0%
|
pts.
|
|
$102.75
|
1.4%
|
|
Composite
- All(6 )
|
|
$79.74
|
7.5%
|
|
64.8%
|
3.5%
|
pts.
|
|
$123.01
|
1.8%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
Statistics include only properties located in the continental United
States.
|
|
(2)
Includes the Marriott Hotels & Resorts and Renaissance Hotels
brands.
|
|
(3)
Statistics for The Ritz-Carlton are for September through December.
|
|
(4)
Includes the Marriott Hotels & Resorts, Renaissance Hotels and The
Ritz-Carlton brands.
|
|
(5)
Includes the Residence Inn, Courtyard, Fairfield Inn & Suites,
TownePlace Suites, and SpringHill Suites brands.
|
|
(6)
Includes the Marriott Hotels & Resorts, Renaissance Hotels, The
Ritz-Carlton, Residence Inn, Courtyard, Fairfield Inn & Suites,
TownePlace Suites, and
SpringHill Suites brands.
|
|
|
|
A-7
|
|
|
|
|
|
|
|
|
|
|
|
|
MARRIOTT
INTERNATIONAL, INC.
KEY LODGING STATISTICS
|
|
|
|
Comparable
Company-Operated North American Properties(1)
|
|
|
|
|
|
|
|
Fifty-two
Weeks Ended December 31, 2010 and January 1, 2010
|
|
|
|
REVPAR
|
|
Occupancy
|
|
Average
Daily Rate
|
|
Brand
|
|
2010
|
vs.
2009
|
|
2010
|
|
vs.
2009
|
|
2010
|
vs.
2009
|
|
Marriott
Hotels & Resorts
|
|
$107.98
|
4.7%
|
|
69.1%
|
3.0%
|
pts.
|
|
$156.27
|
0.2%
|
|
Renaissance
Hotels & Resorts
|
|
$102.51
|
2.6%
|
|
67.2%
|
1.9%
|
pts.
|
|
$152.57
|
-0.3%
|
|
Composite
North American Full-Service(2)
|
|
$106.95
|
4.3%
|
|
68.7%
|
2.8%
|
pts.
|
|
$155.60
|
0.1%
|
|
The
Ritz-Carlton(3)
|
|
$189.30
|
9.8%
|
|
67.6%
|
5.8%
|
pts.
|
|
$280.17
|
0.3%
|
|
Composite
North American Full-Service & Luxury(4)
|
|
$116.36
|
5.3%
|
|
68.6%
|
3.1%
|
pts.
|
|
$169.61
|
0.5%
|
|
Residence
Inn
|
|
$84.06
|
4.4%
|
|
74.0%
|
4.7%
|
pts.
|
|
$113.52
|
-2.2%
|
|
Courtyard
|
|
$69.26
|
3.1%
|
|
64.3%
|
3.1%
|
pts.
|
|
$107.69
|
-1.9%
|
|
TownePlace
Suites
|
|
$48.47
|
2.1%
|
|
65.5%
|
4.2%
|
pts.
|
|
$73.94
|
-4.5%
|
|
SpringHill
Suites
|
|
$62.16
|
4.3%
|
|
64.7%
|
3.4%
|
pts.
|
|
$96.04
|
-1.2%
|
|
Composite
North American Limited-Service(5)
|
|
$71.51
|
3.5%
|
|
67.1%
|
3.6%
|
pts.
|
|
$106.59
|
-2.0%
|
|
Composite
- All(6)
|
|
$97.43
|
4.7%
|
|
68.0%
|
3.3%
|
pts.
|
|
$143.35
|
-0.4%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comparable
Systemwide North American Properties(1)
|
|
|
|
|
|
Fifty-two
Weeks Ended December 31, 2010 and January 1, 2010
|
|
|
|
REVPAR
|
|
Occupancy
|
|
Average
Daily Rate
|
|
Brand
|
|
2010
|
vs.
2009
|
|
2010
|
|
vs.
2009
|
|
2010
|
vs.
2009
|
|
Marriott
Hotels & Resorts
|
|
$95.07
|
5.0%
|
|
66.5%
|
3.5%
|
pts.
|
|
$143.06
|
-0.6%
|
|
Renaissance
Hotels & Resorts
|
|
$93.82
|
4.4%
|
|
67.2%
|
3.5%
|
pts.
|
|
$139.71
|
-1.0%
|
|
Composite
North American Full-Service(2)
|
|
$94.85
|
4.9%
|
|
66.6%
|
3.5%
|
pts.
|
|
$142.46
|
-0.6%
|
|
The
Ritz-Carlton(3)
|
|
$189.30
|
9.8%
|
|
67.6%
|
5.8%
|
pts.
|
|
$280.17
|
0.3%
|
|
Composite
North American Full-Service & Luxury(4)
|
|
$101.29
|
5.5%
|
|
66.6%
|
3.7%
|
pts.
|
|
$151.98
|
-0.3%
|
|
Residence
Inn
|
|
$84.41
|
5.0%
|
|
75.3%
|
4.8%
|
pts.
|
|
$112.06
|
-1.6%
|
|
Courtyard
|
|
$72.27
|
4.0%
|
|
65.7%
|
3.1%
|
pts.
|
|
$110.00
|
-1.0%
|
|
Fairfield
Inn & Suites
|
|
$53.33
|
4.6%
|
|
63.1%
|
2.9%
|
pts.
|
|
$84.54
|
-0.3%
|
|
TownePlace
Suites
|
|
$55.01
|
5.6%
|
|
68.7%
|
6.1%
|
pts.
|
|
$80.02
|
-3.7%
|
|
SpringHill
Suites
|
|
$63.91
|
3.6%
|
|
65.7%
|
3.7%
|
pts.
|
|
$97.32
|
-2.2%
|
|
Composite
North American Limited-Service(5)
|
|
$69.85
|
4.4%
|
|
67.8%
|
3.8%
|
pts.
|
|
$102.96
|
-1.4%
|
|
Composite
- All(6)
|
|
$81.87
|
4.9%
|
|
67.4%
|
3.7%
|
pts.
|
|
$121.50
|
-0.9%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
Statistics include only properties located in the continental United
States.
|
|
(2)
Includes the Marriott Hotels & Resorts and Renaissance Hotels
brands.
|
|
(3)
Statistics for The Ritz-Carlton are for January through December.
|
|
(4)
Includes the Marriott Hotels & Resorts, Renaissance Hotels and The
Ritz-Carlton brands.
|
|
(5)
Includes the Residence Inn, Courtyard, Fairfield Inn & Suites,
TownePlace Suites, and SpringHill Suites brands.
|
|
(6)
Includes the Marriott Hotels & Resorts, Renaissance Hotels, The
Ritz-Carlton, Residence Inn, Courtyard, Fairfield Inn & Suites,
TownePlace
Suites, and SpringHill Suites
brands.
|
|
|
|
A-8
|
|
|
|
|
|
|
|
|
|
|
|
|
MARRIOTT
INTERNATIONAL, INC.
|
|
TIMESHARE
SEGMENT
|
|
($ in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments
|
|
|
|
|
|
Adjustments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As
Reported
16 Weeks
Ended
December 31,
2010
|
|
Other
Charges
|
|
As
Adjusted
16 Weeks
Ended
December 31,
2010**
|
|
As
Reported
16 Weeks
Ended
January 1,
2010
|
|
Restructuring
Costs & Other
Charges
|
|
As
Adjusted
16 Weeks
Ended
January 1,
2010**
|
|
Percent
Better / (Worse) Adjusted 2010 vs. Adjusted 2009
|
|
|
Segment
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Base
management fees
|
|
$
16
|
|
$
-
|
|
$
16
|
|
$
15
|
|
$
-
|
|
$
15
|
|
7
|
|
|
Sales
and services revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Development
|
|
196
|
|
-
|
|
196
|
|
185
|
|
-
|
|
185
|
|
6
|
|
|
Services
|
|
98
|
|
-
|
|
98
|
|
98
|
|
-
|
|
98
|
|
-
|
|
|
Financing
revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
income - non-securitized notes
|
|
10
|
|
-
|
|
10
|
|
12
|
|
-
|
|
12
|
|
(17)
|
|
|
Interest
income - securitized notes
|
|
48
|
|
-
|
|
48
|
|
-
|
|
-
|
|
-
|
|
*
|
|
|
Other
financing revenue (1)
|
|
2
|
|
-
|
|
2
|
|
59
|
|
(2)
|
|
57
|
|
(96)
|
|
|
Total
financing revenue
|
|
60
|
|
-
|
|
60
|
|
71
|
|
(2)
|
|
69
|
|
(13)
|
|
|
Other
revenue
|
|
18
|
|
-
|
|
18
|
|
23
|
|
-
|
|
23
|
|
(22)
|
|
|
Total
sales and services revenue
|
|
372
|
|
-
|
|
372
|
|
377
|
|
(2)
|
|
375
|
|
(1)
|
|
|
Cost
reimbursements
|
|
86
|
|
-
|
|
86
|
|
85
|
|
-
|
|
85
|
|
1
|
|
|
Segment
revenues
|
|
$
474
|
|
$
-
|
|
$
474
|
|
$
477
|
|
$
(2)
|
|
$
475
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment
Results
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Base
management fees
|
|
$
16
|
|
$
-
|
|
$
16
|
|
$
15
|
|
$
-
|
|
$
15
|
|
7
|
|
|
Timeshare
sales and services, net
|
|
43
|
|
-
|
|
43
|
|
74
|
|
(2)
|
|
72
|
|
(40)
|
|
|
Restructuring
costs
|
|
-
|
|
-
|
|
-
|
|
(7)
|
|
7
|
|
-
|
|
-
|
|
|
General,
administrative and other
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
expense
|
|
(37)
|
|
13
|
|
(24)
|
|
(23)
|
|
-
|
|
(23)
|
|
(4)
|
|
|
Gains
and other income
|
|
20
|
|
-
|
|
20
|
|
1
|
|
-
|
|
1
|
|
1,900
|
|
|
Equity
in earnings (losses)
|
|
2
|
|
-
|
|
2
|
|
(6)
|
|
3
|
|
(3)
|
|
167
|
|
|
Interest
expense
|
|
(15)
|
|
-
|
|
(15)
|
|
-
|
|
-
|
|
-
|
|
*
|
|
|
Segment
results
|
|
$
29
|
|
$
13
|
|
$
42
|
|
$
54
|
|
$
8
|
|
$
62
|
|
(32)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Contract
Sales
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Company:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Timeshare
|
|
$
189
|
|
|
|
|
|
$
183
|
|
|
|
|
|
|
|
|
Fractional
|
|
8
|
|
|
|
|
|
3
|
|
|
|
|
|
|
|
|
Residential
|
|
1
|
|
|
|
|
|
9
|
|
|
|
|
|
|
|
|
Total company
|
|
198
|
|
|
|
|
|
195
|
|
|
|
|
|
|
|
|
Joint
ventures:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fractional
|
|
3
|
|
|
|
|
|
(12)
|
|
|
|
|
|
|
|
|
Residential
|
|
(4)
|
|
|
|
|
|
(8)
|
|
|
|
|
|
|
|
|
Total joint ventures
|
|
(1)
|
|
|
|
|
|
(20)
|
|
|
|
|
|
|
|
|
Total
contract sales (2,3)
|
|
$
197
|
|
|
|
|
|
$
175
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
*
|
Percent
cannot be calculated.
|
|
**
|
Denotes
non-GAAP financial measures. Please see pages A-22
and A-23
for additional information about our reasons for
providing these alternative financial measures
|
|
|
and
the limitations on their use.
|
|
(1)
(2)
(3)
|
As
Reported 16 Weeks Ended January 1, 2010 and As Adjusted 16 Weeks Ended
January 1, 2010 include gain on notes sold of $38 million and $38
million,
respectively.
As
Reported 16 Weeks Ended December 31, 2010 includes residential contract
cancellation allowances of ($4) million. Contract sales for the
2010 fourth quarter were $201 million before project specific contract
cancellation allowances.
As
Reported 16 Weeks Ended January 1, 2010 includes fractional and
residential contract cancellation allowances of ($20) million and ($8)
million, respectively.
Contract
sales for the 2009 fourth quarter were $203 million before project
specific contract cancellation allowances.
|
|
|
|
|
A-9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MARRIOTT
INTERNATIONAL, INC.
|
|
TIMESHARE
SEGMENT
|
|
($ in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments
|
|
|
|
|
|
Adjustments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As
Reported
52 Weeks
Ended
December 31,
2010
|
|
Other
Charges
|
|
As
Adjusted
52 Weeks
Ended
December 31,
2010**
|
|
As
Reported
52 Weeks
Ended
January 1,
2010
|
|
Restructuring
Costs & Other
Charges
|
|
Timeshare
Strategy -
Impairment
Charges
|
|
As
Adjusted
52 Weeks
Ended
January 1,
2010**
|
|
Percent
Better / (Worse) Adjusted 2010 vs. Adjusted 2009
|
|
|
Segment
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Base
management fees
|
|
$
50
|
|
$
-
|
|
$
50
|
|
$
47
|
|
$
-
|
|
$
-
|
|
$
47
|
|
6
|
|
|
Sales
and services revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Development
|
|
626
|
|
-
|
|
626
|
|
626
|
|
4
|
|
-
|
|
630
|
|
(1)
|
|
|
Services
|
|
351
|
|
-
|
|
351
|
|
330
|
|
-
|
|
-
|
|
330
|
|
6
|
|
|
Financing
revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
income - non-securitized notes
|
|
40
|
|
-
|
|
40
|
|
46
|
|
-
|
|
-
|
|
46
|
|
(13)
|
|
|
Interest
income - securitized notes
|
|
147
|
|
-
|
|
147
|
|
-
|
|
-
|
|
-
|
|
-
|
|
*
|
|
|
Other
financing revenue (1)
|
|
7
|
|
-
|
|
7
|
|
67
|
|
20
|
|
-
|
|
87
|
|
(92)
|
|
|
Total
financing revenue
|
|
194
|
|
-
|
|
194
|
|
113
|
|
20
|
|
-
|
|
133
|
|
46
|
|
|
Other
revenue
|
|
50
|
|
-
|
|
50
|
|
54
|
|
-
|
|
-
|
|
54
|
|
(7)
|
|
|
Total
sales and services revenue
|
|
1,221
|
|
-
|
|
1,221
|
|
1,123
|
|
24
|
|
-
|
|
1,147
|
|
6
|
|
|
Cost
reimbursements
|
|
275
|
|
-
|
|
275
|
|
269
|
|
-
|
|
-
|
|
269
|
|
2
|
|
|
Segment
revenues
|
|
$
1,546
|
|
$
-
|
|
$
1,546
|
|
$
1,439
|
|
$
24
|
|
$
-
|
|
$
1,463
|
|
6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment
Results
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Base
management fees
|
|
$
50
|
|
$
-
|
|
$
50
|
|
$
47
|
|
$
-
|
|
$
-
|
|
$
47
|
|
6
|
|
|
Timeshare
sales and services, net
|
|
199
|
|
-
|
|
199
|
|
83
|
|
23
|
|
-
|
|
106
|
|
88
|
|
|
Timeshare
strategy - impairment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
charges
|
|
-
|
|
-
|
|
-
|
|
(614)
|
|
-
|
|
614
|
|
-
|
|
-
|
|
|
Restructuring
costs
|
|
-
|
|
-
|
|
-
|
|
(45)
|
|
45
|
|
-
|
|
-
|
|
-
|
|
|
General,
administrative and other
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
expense
|
|
(85)
|
|
13
|
|
(72)
|
|
(80)
|
|
7
|
|
-
|
|
(73)
|
|
1
|
|
|
Gains
and other income
|
|
20
|
|
-
|
|
20
|
|
2
|
|
-
|
|
-
|
|
2
|
|
900
|
|
|
Equity
in losses
|
|
(8)
|
|
-
|
|
(8)
|
|
(12)
|
|
6
|
|
-
|
|
(6)
|
|
(33)
|
|
|
Interest
expense
|
|
(55)
|
|
-
|
|
(55)
|
|
-
|
|
-
|
|
-
|
|
-
|
|
*
|
|
|
Timeshare
strategy - impairment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
charges (non-operating)
|
|
-
|
|
-
|
|
-
|
|
(71)
|
|
-
|
|
71
|
|
-
|
|
-
|
|
|
Noncontrolling
interest
|
|
-
|
|
-
|
|
-
|
|
11
|
|
-
|
|
-
|
|
11
|
|
(100)
|
|
|
Segment
results
|
|
$
121
|
|
$
13
|
|
$
134
|
|
$
(679)
|
|
$
81
|
|
$
685
|
|
$
87
|
|
54
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Contract
Sales
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Company:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Timeshare
|
|
$
651
|
|
|
|
|
|
$
685
|
|
|
|
|
|
|
|
|
|
|
Fractional
|
|
28
|
|
|
|
|
|
28
|
|
|
|
|
|
|
|
|
|
|
Residential
|
|
9
|
|
|
|
|
|
8
|
|
|
|
|
|
|
|
|
|
|
Total company
|
|
688
|
|
|
|
|
|
721
|
|
|
|
|
|
|
|
|
|
|
Joint
ventures:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fractional
|
|
5
|
|
|
|
|
|
(21)
|
|
|
|
|
|
|
|
|
|
|
Residential
|
|
(8)
|
|
|
|
|
|
(35)
|
|
|
|
|
|
|
|
|
|
|
Total joint ventures
|
|
(3)
|
|
|
|
|
|
(56)
|
|
|
|
|
|
|
|
|
|
|
Total
contract sales (2,3)
|
|
$
685
|
|
|
|
|
|
$
665
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
*
|
Percent
cannot be calculated.
|
|
**
|
Denotes
non-GAAP financial measures. Please see pages A-22
and A-23
for additional information about our reasons for
providing these alternative financial measures and the limitations on
their use.
|
|
|
|
|
(1)
|
As
Reported 52 Weeks Ended January 1, 2010 and As Adjusted 52 Weeks Ended
January 1, 2010 include gain on notes sold of $37 million and $37
million, respectively.
|
|
(2)
|
As
Reported 52 Weeks Ended December 31, 2010 includes fractional and
residential contract cancellation allowances of ($8) million and ($12)
million, respectively. Contract sales for 2010 were $705 million
before project specific contract
cancellation allowances.
|
|
(3)
|
As
Reported 52 Weeks Ended January 1, 2010 includes fractional and
residential contract cancellation allowances of ($44) million and ($39)
million, respectively. Contract sales for 2009 were $748 million
before project specific contract
cancellation allowances.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MARRIOTT
INTERNATIONAL, INC.
|
|
TIMESHARE
SEGMENT
|
|
AS
ADJUSTED HAD ASU NOS. 2009-16 AND 2009-17 BEEN ADOPTED ON JANUARY 3,
2009
|
|
FOURTH
QUARTER 2009
|
|
($ in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As
Reported
16 Weeks
Ended
January 1,
2010
|
|
Restructuring
Costs & Other
Charges
|
|
As
Adjusted
16 Weeks
Ended
January 1,
2010**
|
|
ASU
Nos.
2009-16
And 2009-17
Adjustments
|
|
As
Adjusted For
ASU Nos. 2009-16
And 2009-17
16 Weeks Ended
January 1, 2010**
|
|
|
Segment
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
Base
management fees
|
|
$
15
|
|
$
-
|
|
$
15
|
|
$
-
|
|
$
15
|
|
|
Sales
and services revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
Development
|
|
185
|
|
-
|
|
185
|
|
4
|
|
189
|
|
|
Services
|
|
98
|
|
-
|
|
98
|
|
-
|
|
98
|
|
|
Financing
revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
income - non-securitized notes
|
|
12
|
|
-
|
|
12
|
|
-
|
|
12
|
|
|
Interest
income - securitized notes
|
|
-
|
|
-
|
|
-
|
|
49
|
|
49
|
|
|
Other
financing revenue
|
|
59
|
|
(2)
|
|
57
|
|
(55)
|
|
2
|
|
|
Total
financing revenue
|
|
71
|
|
(2)
|
|
69
|
|
(6)
|
|
63
|
|
|
Other
revenue
|
|
23
|
|
-
|
|
23
|
|
-
|
|
23
|
|
|
Total
sales and services revenue
|
|
377
|
|
(2)
|
|
375
|
|
(2)
|
|
373
|
|
|
Cost
reimbursements
|
|
85
|
|
-
|
|
85
|
|
-
|
|
85
|
|
|
Segment
revenues
|
|
$
477
|
|
$
(2)
|
|
$
475
|
|
$
(2)
|
|
$
473
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment
Results
|
|
|
|
|
|
|
|
|
|
|
|
|
Base
management fees
|
|
$
15
|
|
$
-
|
|
$
15
|
|
$
-
|
|
$
15
|
|
|
Timeshare
sales and services, net
|
|
74
|
|
(2)
|
|
72
|
|
(8)
|
|
64
|
|
|
Restructuring
costs
|
|
(7)
|
|
7
|
|
-
|
|
-
|
|
-
|
|
|
General,
administrative and other
|
|
|
|
|
|
|
|
|
|
|
|
|
expense
|
|
(23)
|
|
-
|
|
(23)
|
|
-
|
|
(23)
|
|
|
Gains
and other income
|
|
1
|
|
-
|
|
1
|
|
-
|
|
1
|
|
|
Equity
in losses
|
|
(6)
|
|
3
|
|
(3)
|
|
-
|
|
(3)
|
|
|
Interest
expense
|
|
-
|
|
-
|
|
-
|
|
(26)
|
|
(26)
|
|
|
Segment
results
|
|
$
54
|
|
$
8
|
|
$
62
|
|
$
(34)
|
|
$
28
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gain /
(Loss) on Notes Sold
|
|
|
|
|
|
|
|
|
|
|
|
|
Gain /
(loss) on notes sold
|
|
$
38
|
|
$
-
|
|
$
38
|
|
$
(38)
|
|
$
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
**
|
Denotes
non-GAAP financial measures. Please see pages A-22 and A-23 for
additional information about our reasons for providing these
alternative financial measures and the limitations on their use.
|
|
|
|
|
|
|
|
A-11
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MARRIOTT
INTERNATIONAL, INC.
|
|
TIMESHARE
SEGMENT
|
|
AS
ADJUSTED HAD ASU NOS. 2009-16 AND 2009-17 BEEN ADOPTED ON JANUARY 3,
2009
|
|
FULL
YEAR 2009
|
|
($ in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As
Reported
52 Weeks
Ended
January 1,
2010
|
|
Restructuring
Costs & Other
Charges
|
|
Timeshare
Strategy -
Impairment
Charges
|
|
As
Adjusted
52 Weeks
Ended
January 1,
2010**
|
|
ASU
Nos.
2009-16
And 2009-17
Adjustments
|
|
As
Adjusted For
ASU Nos. 2009-16
And 2009-17
52 Weeks Ended
January 1, 2010**
|
|
|
Segment
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Base
management fees
|
|
$
47
|
|
$
-
|
|
$
-
|
|
$
47
|
|
$
-
|
|
$
47
|
|
|
Sales
and services revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Development
|
|
626
|
|
4
|
|
-
|
|
630
|
|
23
|
|
653
|
|
|
Services
|
|
330
|
|
-
|
|
-
|
|
330
|
|
-
|
|
330
|
|
|
Financing
revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
income - non-securitized notes
|
|
46
|
|
-
|
|
-
|
|
46
|
|
-
|
|
46
|
|
|
Interest
income - securitized notes
|
|
-
|
|
-
|
|
-
|
|
-
|
|
158
|
|
158
|
|
|
Other
financing revenue
|
|
67
|
|
20
|
|
-
|
|
87
|
|
(79)
|
|
8
|
|
|
Total
financing revenue
|
|
113
|
|
20
|
|
-
|
|
133
|
|
79
|
|
212
|
|
|
Other
revenue
|
|
54
|
|
-
|
|
-
|
|
54
|
|
(1)
|
|
53
|
|
|
Total
sales and services revenue
|
|
1,123
|
|
24
|
|
-
|
|
1,147
|
|
101
|
|
1,248
|
|
|
Cost
reimbursements
|
|
269
|
|
-
|
|
-
|
|
269
|
|
-
|
|
269
|
|
|
Segment
revenues
|
|
$
1,439
|
|
$
24
|
|
$
-
|
|
$
1,463
|
|
$
101
|
|
$
1,564
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment
Results
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Base
management fees
|
|
$
47
|
|
$
-
|
|
$
-
|
|
$
47
|
|
$
-
|
|
$
47
|
|
|
Timeshare
sales and services, net
|
|
83
|
|
23
|
|
-
|
|
106
|
|
76
|
|
182
|
|
|
Timeshare
strategy - impairment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
charges
|
|
(614)
|
|
-
|
|
614
|
|
-
|
|
-
|
|
-
|
|
|
Restructuring
costs
|
|
(45)
|
|
45
|
|
-
|
|
-
|
|
-
|
|
-
|
|
|
General,
administrative and other
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
expense
|
|
(80)
|
|
7
|
|
-
|
|
(73)
|
|
-
|
|
(73)
|
|
|
Gains
and other income
|
|
2
|
|
-
|
|
-
|
|
2
|
|
-
|
|
2
|
|
|
Equity
in losses
|
|
(12)
|
|
6
|
|
-
|
|
(6)
|
|
-
|
|
(6)
|
|
|
Interest
expense
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(77)
|
|
(77)
|
|
|
Timeshare
strategy - impairment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
charges (non-operating)
|
|
(71)
|
|
-
|
|
71
|
|
-
|
|
-
|
|
-
|
|
|
Noncontrolling
interest
|
|
11
|
|
-
|
|
-
|
|
11
|
|
-
|
|
11
|
|
|
Segment
results
|
|
$
(679)
|
|
$
81
|
|
$
685
|
|
$
87
|
|
$
(1)
|
|
$
86
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gain /
(Loss) on Notes Sold
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gain /
(loss) on notes sold
|
|
$
37
|
|
$
-
|
|
$
-
|
|
$
37
|
|
$
(37)
|
|
$
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
**
|
Denotes
non-GAAP financial measures. Please see pages A-22 and A-23 for
additional information about our reasons for providing these
alternative financial measures and the limitations on their use.
|
|
|
|
|
|
|
|
A-12
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MARRIOTT
INTERNATIONAL, INC.
|
|
NON-GAAP
FINANCIAL MEASURES
|
|
TIMESHARE
INVENTORY
|
|
AS
ADJUSTED HAD ASU NOS. 2009-16 AND 2009-17 BEEN ADOPTED ON JANUARY 3,
2009
|
|
($ in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance
at
Year-End 2010
|
|
As
Reported
Balance at
Year-End 2009
|
|
ASU
Nos. 2009-16
And 2009-17
Adjustments
|
|
As
Adjusted For
ASU Nos. 2009-16
And 2009-17
Balance at
Year-End 2009** (1)
|
|
|
|
|
|
|
|
|
|
|
|
Finished
goods (2)
|
|
$
732
|
|
$
721
|
|
$
100
|
|
$
821
|
|
Work-in-process
|
|
101
|
|
198
|
|
-
|
|
198
|
|
Land
and infrastructure
|
|
639
|
|
507
|
|
-
|
|
507
|
|
Total
inventory
|
|
$
1,472
|
|
$
1,426
|
|
$
100
|
|
$
1,526
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
**
Denotes non-GAAP financial measures. Please see pages A-22 and
A-23 for additional information about our reasons for providing
these alternative financial measures
and the limitations on their use.
|
|
(1)
As Adjusted had ASU Nos. 2009-16 and 2009-17 (formerly referred
to as FAS 166 & 167) been adopted on January 3, 2009.
|
|
(2)
Includes completed inventory as well as an estimate of inventory
we expect to acquire when we foreclose on defaulted notes. The
estimate of inventory we
expect to acquire when we foreclose on defaulted notes for As Adjusted
2009 and As Reported 2010
include securitized and
non-securitized notes, and As Reported 2009 includes non-securitized
notes.
|
|
|
|
A-13
|
|
|
|
|
|
|
|
|
|
|
MARRIOTT
INTERNATIONAL, INC.
|
|
NON-GAAP
FINANCIAL MEASURES
|
|
EBITDA
AND ADJUSTED EBITDA
|
|
($ in
millions)
|
|
|
|
|
|
|
Fiscal
Year 2010
|
|
|
First
Quarter
|
|
Second
Quarter
|
|
Third
Quarter
|
|
Fourth
Quarter
|
|
Total
|
|
Net
Income attributable to Marriott
|
$
83
|
|
$
119
|
|
$
83
|
|
$
173
|
|
$
458
|
|
Interest
expense
|
45
|
|
44
|
|
41
|
|
50
|
|
180
|
|
Tax
provision (benefit)
|
46
|
|
65
|
|
45
|
|
(63)
|
|
93
|
|
Depreciation
and amortization
|
39
|
|
42
|
|
40
|
|
57
|
|
178
|
|
Less:
Depreciation reimbursed by third-party owners
|
(3)
|
|
(3)
|
|
(2)
|
|
(3)
|
|
(11)
|
|
Interest
expense from unconsolidated joint ventures
|
5
|
|
5
|
|
6
|
|
3
|
|
19
|
|
Depreciation
and amortization from unconsolidated joint ventures
|
6
|
|
6
|
|
7
|
|
8
|
|
27
|
|
EBITDA
**
|
221
|
|
278
|
|
220
|
|
225
|
|
944
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
charges
|
|
|
|
|
|
|
|
|
|
|
Impairment of investments and other
|
-
|
|
-
|
|
-
|
|
100
|
|
100
|
|
Total
other charges
|
-
|
|
-
|
|
-
|
|
100
|
|
100
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA **
|
$
221
|
|
$
278
|
|
$
220
|
|
$
325
|
|
$
1,044
|
|
|
|
|
|
|
|
|
|
|
|
|
Increase
over 2009 Adjusted EBITDA
|
3%
|
|
26%
|
|
35%
|
|
8%
|
|
16%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal
Year 2009
|
|
|
First
Quarter
|
|
Second
Quarter
|
|
Third
Quarter
|
|
Fourth
Quarter
|
|
Total
|
|
Net
(Loss) Income attributable to Marriott
|
$
(23)
|
|
$
37
|
|
$
(466)
|
|
$
106
|
|
$
(346)
|
|
Interest
expense
|
29
|
|
28
|
|
27
|
|
34
|
|
118
|
|
Tax
provision (benefit)
|
33
|
|
44
|
|
(210)
|
|
68
|
|
(65)
|
|
Tax
provision, noncontrolling interest
|
1
|
|
2
|
|
1
|
|
-
|
|
4
|
|
Depreciation
and amortization
|
39
|
|
42
|
|
43
|
|
61
|
|
185
|
|
Less:
Depreciation reimbursed by third-party owners
|
(2)
|
|
(2)
|
|
(2)
|
|
(3)
|
|
(9)
|
|
Interest
expense from unconsolidated joint ventures
|
3
|
|
6
|
|
4
|
|
6
|
|
19
|
|
Depreciation
and amortization from unconsolidated joint ventures
|
6
|
|
6
|
|
6
|
|
9
|
|
27
|
|
EBITDA
**
|
86
|
|
163
|
|
(597)
|
|
281
|
|
(67)
|
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring
costs and other charges
|
|
|
|
|
|
|
|
|
|
|
Severance
|
2
|
|
10
|
|
4
|
|
5
|
|
21
|
|
Facilities exit costs
|
-
|
|
22
|
|
5
|
|
2
|
|
29
|
|
Development cancellations
|
-
|
|
1
|
|
-
|
|
-
|
|
1
|
|
Total restructuring costs
|
2
|
|
33
|
|
9
|
|
7
|
|
51
|
|
Impairment of investments and other, net of prior year
reserves
|
68
|
|
3
|
|
1
|
|
11
|
|
83
|
|
Reserves for loan losses
|
42
|
|
1
|
|
-
|
|
-
|
|
43
|
|
Contract cancellation allowances
|
4
|
|
1
|
|
1
|
|
3
|
|
9
|
|
Residual interests valuation
|
13
|
|
12
|
|
(3)
|
|
(2)
|
|
20
|
|
System development write-off
|
-
|
|
7
|
|
-
|
|
-
|
|
7
|
|
Total other charges
|
127
|
|
24
|
|
(1)
|
|
12
|
|
162
|
|
Total
restructuring costs and other charges
|
129
|
|
57
|
|
8
|
|
19
|
|
213
|
|
|
|
|
|
|
|
|
|
|
|
|
Timeshare
strategy - impairment charges
|
|
|
|
|
|
|
|
|
|
|
Operating impairments
|
-
|
|
-
|
|
614
|
|
-
|
|
614
|
|
Non-operating impairments
|
-
|
|
-
|
|
138
|
|
-
|
|
138
|
|
Total
timeshare strategy - impairment charges
|
-
|
|
-
|
|
752
|
|
-
|
|
752
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA **
|
$
215
|
|
$
220
|
|
$
163
|
|
$
300
|
|
$
898
|
|
|
|
|
|
|
|
|
|
|
|
|
**
Denotes non-GAAP financial measures. Please see pages A-22 and
A-23 for additional information about our reasons for providing these
alternative financial measures and the limitations on their use.
|
|
|
|
|
|
A-14
|
|
|
|
|
|
|
|
|
|
|
|
MARRIOTT
INTERNATIONAL, INC.
|
|
NON-GAAP
FINANCIAL MEASURES
|
|
EBITDA
AND ADJUSTED EBITDA
|
|
AS
ADJUSTED HAD ASU NOS. 2009-16 AND 2009-17 BEEN ADOPTED ON JANUARY 3,
2009
|
|
FOURTH
QUARTER 2009
|
|
($ in
millions)
|
|
|
|
|
|
|
|
|
|
Fourth
Quarter
2009
|
|
ASU
Nos.
2009-16 and
2009-17
Adjustments
|
|
As
Adjusted For
ASU Nos.
2009-16 and
2009-17
Fourth Quarter
2009**
|
|
Net
Income (Loss) attributable to Marriott
|
$
106
|
|
$
(22)
|
|
$
84
|
|
Interest
expense
|
34
|
|
26
|
|
60
|
|
Tax
provision (benefit)
|
68
|
|
(14)
|
|
54
|
|
Tax
provision, noncontrolling interest
|
-
|
|
-
|
|
-
|
|
Depreciation
and amortization
|
61
|
|
-
|
|
61
|
|
Less:
Depreciation reimbursed by third-party owners
|
(3)
|
|
-
|
|
(3)
|
|
Interest
expense from unconsolidated joint ventures
|
6
|
|
-
|
|
6
|
|
Depreciation
and amortization from unconsolidated joint ventures
|
9
|
|
-
|
|
9
|
|
EBITDA
**
|
281
|
|
(10)
|
|
271
|
|
|
|
|
|
|
|
|
Restructuring
costs and other charges
|
|
|
|
|
|
|
Severance
|
5
|
|
-
|
|
5
|
|
Facilities exit costs
|
2
|
|
-
|
|
2
|
|
Development cancellations
|
-
|
|
-
|
|
-
|
|
Total restructuring costs
|
7
|
|
-
|
|
7
|
|
Impairment of investments and other, net of prior year
reserves
|
11
|
|
-
|
|
11
|
|
Reserves for loan losses
|
-
|
|
-
|
|
-
|
|
Contract cancellation allowances
|
3
|
|
-
|
|
3
|
|
Residual interests valuation
|
(2)
|
|
2
|
|
-
|
|
System development write-off
|
-
|
|
-
|
|
-
|
|
Total other charges
|
12
|
|
2
|
|
14
|
|
Total
restructuring costs and other charges
|
19
|
|
2
|
|
21
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA **
|
$
300
|
|
$
(8)
|
|
$
292
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
**
Denotes non-GAAP financial measures. Please see pages A-22 and
A-23 for additional information about our reasons for providing these
alternative financial measures and
the limitations on their use.
|
|
|
|
|
|
A-15
|
|
|
|
|
|
|
|
MARRIOTT
INTERNATIONAL, INC.
|
|
NON-GAAP
FINANCIAL MEASURES
|
|
EBITDA
AND ADJUSTED EBITDA
|
|
AS
ADJUSTED HAD ASU NOS. 2009-16 AND 2009-17 BEEN ADOPTED ON JANUARY 3,
2009
|
|
FULL
YEAR 2009
|
|
($ in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2009
Fiscal Year
|
|
ASU
Nos.
2009-16 and
2009-17
Adjustments
|
|
As
Adjusted For
ASU Nos.
2009-16 and
2009-17
Fiscal Year
2009**
|
|
Net
Loss attributable to Marriott
|
$
(346)
|
|
$
12
|
|
$
(334)
|
|
Interest
expense
|
118
|
|
77
|
|
195
|
|
Tax
benefit
|
(65)
|
|
7
|
|
(58)
|
|
Tax
provision, noncontrolling interest
|
4
|
|
-
|
|
4
|
|
Depreciation
and amortization
|
185
|
|
-
|
|
185
|
|
Less:
Depreciation reimbursed by third-party owners
|
(9)
|
|
-
|
|
(9)
|
|
Interest
expense from unconsolidated joint ventures
|
19
|
|
-
|
|
19
|
|
Depreciation
and amortization from unconsolidated joint ventures
|
27
|
|
-
|
|
27
|
|
EBITDA
**
|
(67)
|
|
96
|
|
29
|
|
|
|
|
|
|
|
|
Restructuring
costs and other charges
|
|
|
|
|
|
|
Severance
|
21
|
|
-
|
|
21
|
|
Facilities exit costs
|
29
|
|
-
|
|
29
|
|
Development cancellations
|
1
|
|
-
|
|
1
|
|
Total restructuring costs
|
51
|
|
-
|
|
51
|
|
Impairment of investments and other, net of prior year
reserves
|
83
|
|
-
|
|
83
|
|
Reserves for loan losses
|
43
|
|
-
|
|
43
|
|
Contract cancellation allowances
|
9
|
|
-
|
|
9
|
|
Residual interests valuation
|
20
|
|
(20)
|
|
-
|
|
System development write-off
|
7
|
|
-
|
|
7
|
|
Total other charges
|
162
|
|
(20)
|
|
142
|
|
Total
restructuring costs and other charges
|
213
|
|
(20)
|
|
193
|
|
|
|
|
|
|
|
|
Timeshare
strategy - impairment charges
|
|
|
|
|
|
|
Operating impairments
|
614
|
|
-
|
|
614
|
|
Non-operating impairments
|
138
|
|
-
|
|
138
|
|
Total
timeshare strategy - impairment charges
|
752
|
|
-
|
|
752
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA **
|
$
898
|
|
$
76
|
|
$
974
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
**
Denotes non-GAAP financial measures. Please see pages A-22 and
A-23 for additional information about our reasons for providing these
alternative financial measures and
the limitations on their use.
|
|
|
|
|
|
A-16
|
|
|
|
|
|
|
|
MARRIOTT
INTERNATIONAL, INC.
|
|
NON-GAAP
FINANCIAL MEASURES
|
|
EBITDA
AND ADJUSTED EBITDA FOR TIMESHARE SEGMENT
|
|
AS
ADJUSTED HAD ASU NOS. 2009-16 AND 2009-17 BEEN ADOPTED ON JANUARY 3,
2009
|
|
FOURTH
QUARTER 2010 AND 2009
|
|
($ in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
Fourth
Quarter
2010
|
|
Fourth
Quarter
2009
|
|
ASU
Nos.
2009-16 and
2009-17
Adjustments
|
|
As
Adjusted For
ASU Nos.
2009-16 and
2009-17
Fourth Quarter
2009**
|
|
Timeshare
Segment Results
|
$
29
|
|
$
54
|
|
$
(36)
|
|
$
18
|
|
Interest
expense
|
15
|
|
-
|
|
26
|
|
26
|
|
Tax
provision (1 )
|
-
|
|
-
|
|
-
|
|
-
|
|
Depreciation
and amortization
|
11
|
|
14
|
|
-
|
|
14
|
|
Less:
Depreciation reimbursed by third-party owners
|
-
|
|
-
|
|
-
|
|
-
|
|
Interest
expense from unconsolidated joint ventures
|
(3)
|
|
2
|
|
-
|
|
2
|
|
Depreciation
and amortization from unconsolidated joint ventures
|
-
|
|
-
|
|
-
|
|
-
|
|
Timeshare
Segment EBITDA **
|
52
|
|
70
|
|
(10)
|
|
60
|
|
|
|
|
|
|
|
|
|
|
Restructuring
costs and other charges
|
|
|
|
|
|
|
|
|
Severance
|
-
|
|
4
|
|
-
|
|
4
|
|
Facilities exit costs
|
-
|
|
3
|
|
-
|
|
3
|
|
Development cancellations
|
-
|
|
-
|
|
-
|
|
-
|
|
Total restructuring costs
|
-
|
|
7
|
|
-
|
|
7
|
|
Impairment of investments and other, net of prior year
reserves
|
13
|
|
-
|
|
-
|
|
-
|
|
Reserves for loan losses
|
-
|
|
-
|
|
-
|
|
-
|
|
Contract cancellation allowances
|
-
|
|
3
|
|
-
|
|
3
|
|
Residual interests valuation
|
-
|
|
(2)
|
|
2
|
|
-
|
|
System development write-off
|
-
|
|
-
|
|
-
|
|
-
|
|
Total other charges
|
13
|
|
1
|
|
2
|
|
3
|
|
Total
restructuring costs and other charges
|
13
|
|
8
|
|
2
|
|
10
|
|
|
|
|
|
|
|
|
|
|
Timeshare
Segment Adjusted EBITDA **
|
$
65
|
|
$
78
|
|
$
(8)
|
|
$
70
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
**
Denotes non-GAAP financial measures. Please see pages A-22 and
A-23 for additional information about our reasons for providing these
alternative
financial measures and the
limitations on their use.
|
|
(1)
Income taxes are not allocated to segment results.
|
|
|
|
A-17
|
|
|
|
|
|
|
|
|
|
MARRIOTT
INTERNATIONAL, INC.
|
|
NON-GAAP
FINANCIAL MEASURES
|
|
EBITDA
AND ADJUSTED EBITDA FOR TIMESHARE SEGMENT
|
|
AS
ADJUSTED HAD ASU NOS. 2009-16 AND 2009-17 BEEN ADOPTED ON JANUARY 3,
2009
|
|
FULL
YEAR 2010 AND 2009
|
|
($ in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
Full
Year
2010
|
|
Full
Year
2009
|
|
ASU
Nos.
2009-16 and
2009-17
Adjustments
|
|
As
Adjusted For
ASU Nos.
2009-16 and
2009-17
Full Year
2009**
|
|
Timeshare
Segment Results
|
$
121
|
|
$
(679)
|
|
$
19
|
|
$
(660)
|
|
Interest
expense
|
55
|
|
-
|
|
77
|
|
77
|
|
Tax
provision (1)
|
-
|
|
-
|
|
-
|
|
-
|
|
Depreciation
and amortization
|
36
|
|
42
|
|
-
|
|
42
|
|
Less:
Depreciation reimbursed by third-party owners
|
-
|
|
-
|
|
-
|
|
-
|
|
Interest
expense from unconsolidated joint ventures
|
2
|
|
3
|
|
-
|
|
3
|
|
Depreciation
and amortization from unconsolidated joint ventures
|
-
|
|
-
|
|
-
|
|
-
|
|
Timeshare
Segment EBITDA **
|
214
|
|
(634)
|
|
96
|
|
(538)
|
|
|
|
|
|
|
|
|
|
|
Restructuring
costs and other charges
|
|
|
|
|
|
|
|
|
Severance
|
-
|
|
15
|
|
-
|
|
15
|
|
Facilities exit costs
|
-
|
|
29
|
|
-
|
|
29
|
|
Development cancellations
|
-
|
|
1
|
|
-
|
|
1
|
|
Total restructuring costs
|
-
|
|
45
|
|
-
|
|
45
|
|
Impairment of investments and other, net of prior year
reserves
|
13
|
|
-
|
|
-
|
|
-
|
|
Reserves for loan losses
|
-
|
|
-
|
|
-
|
|
-
|
|
Contract cancellation allowances
|
-
|
|
9
|
|
-
|
|
9
|
|
Residual interests valuation
|
-
|
|
20
|
|
(20)
|
|
-
|
|
System development write-off
|
-
|
|
7
|
|
-
|
|
7
|
|
Total other charges
|
13
|
|
36
|
|
(20)
|
|
16
|
|
Total
restructuring costs and other charges
|
13
|
|
81
|
|
(20)
|
|
61
|
|
|
|
|
|
|
|
|
|
|
Timeshare
strategy - impairment charges
|
|
|
|
|
|
|
|
|
Operating impairments
|
-
|
|
614
|
|
-
|
|
614
|
|
Non-operating impairments
|
-
|
|
71
|
|
-
|
|
71
|
|
Total
timeshare strategy - impairment charges
|
-
|
|
685
|
|
-
|
|
685
|
|
|
|
|
|
|
|
|
|
|
Timeshare
Segment Adjusted EBITDA **
|
$
227
|
|
$
132
|
|
$
76
|
|
$
208
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
**
Denotes non-GAAP financial measures. Please see pages A-22 and
A-23 for additional information about our reasons for providing these
alternative financial
measures and the limitations on
their use.
|
|
(1)
Income taxes are not allocated to segment results.
|
|
|
|
A-18
|
|
|
|
|
|
|
|
|
|
MARRIOTT
INTERNATIONAL, INC.
|
|
NON-GAAP
FINANCIAL MEASURES
|
|
EBITDA
|
|
FORECASTED
2011
|
|
($ in
millions)
|
|
|
|
|
|
Range
|
|
|
|
Estimated
EBITDA
Full Year 2011
|
|
Net
Income attributable to Marriott
|
|
$
511
|
|
$
551
|
|
Interest
expense
|
|
175
|
|
175
|
|
Tax
provision
|
|
264
|
|
284
|
|
Depreciation
and amortization
|
|
180
|
|
180
|
|
Less:
Depreciation reimbursed by third-party owners
|
|
(15)
|
|
(15)
|
|
Interest
expense from unconsolidated joint ventures
|
|
20
|
|
20
|
|
Depreciation
and amortization from unconsolidated joint ventures
|
|
35
|
|
35
|
|
EBITDA
**
|
|
$
1,170
|
|
$
1,230
|
|
|
|
|
|
|
|
|
|
|
|
|
|
**
Denotes non-GAAP financial measures. Please see pages A-22 and
A-23 for additional information about our reasons for
providing these alternative
financial measures and the limitations on their use.
|
|
|
|
|
|
|
|
A-19
|
|
|
|
|
|
|
MARRIOTT
INTERNATIONAL, INC.
|
|
NON-GAAP
FINANCIAL MEASURES
|
|
FREE
CASH FLOW FOR TIMESHARE SEGMENT
|
|
FULL
YEAR 2010
|
|
($ in
millions)
|
|
|
|
|
|
|
|
|
Full
Year 2010
|
|
Timeshare
Segment Adjusted EBITDA **
|
$
227
|
|
Inventory
|
15
|
|
Financing
Activity
|
(72)
|
|
Other
|
75
|
|
Timeshare
Segment Free Cash Flow **
|
$
245
|
|
|
|
|
|
|
|
|
|
|
**
Denotes non-GAAP financial measures. Please see pages A-22 and
A-23 for additional information about
our reasons for providing these
alternative financial measures and
the limitations on their use.
|
|
|
|
|
|
|
|
A-20
|
|
|
|
MARRIOTT
INTERNATIONAL, INC.
|
|
NON-GAAP
FINANCIAL MEASURES
|
|
ADJUSTED
TOTAL DEBT NET OF CASH
|
|
($ in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
Balance
at
Year-End 2010
|
|
Balance
at
Year-End
2009
|
|
Better
/ (Worse)
Change
|
|
Total
debt
|
$
2,829
|
|
$
2,298
|
|
$
(531)
|
|
Cash
and cash equivalents
|
(505)
|
|
(115)
|
|
390
|
|
Total
debt net of cash**
|
2,324
|
|
2,183
|
|
(141)
|
|
Less
the impact of ASU Nos. 2009-16 and 2009-17
|
(1,016)
|
|
-
|
|
1,016
|
|
Adjusted
total debt net of cash** (a)
|
$
1,308
|
|
$
2,183
|
|
$
875
|
|
|
|
|
|
|
|
|
|
(a)
Excludes the impact of the update to ASU Nos. 2009-16 and 2009-17.
|
|
|
|
**
Denotes non-GAAP financial measures. Please see pages A-22 and
A-23 for additional information
about our reasons for providing
these alternative financial measures and the limitations on their use.
|
|
|
|
|
|
|
|
A-21
|
|
|
|
|
|
|
|
|
MARRIOTT
INTERNATIONAL, INC.
|
|
NON-GAAP
FINANCIAL MEASURES
|
|
|
|
In our
press release and schedules, and on the related conference call, we
report certain financial measures that are not prescribed or authorized
by United States generally accepted accounting principles (“GAAP”).
We discuss management’s reasons for reporting these non-GAAP
measures below, and the press release schedules reconcile the most
directly comparable GAAP measure to each non-GAAP measure that we refer
to (identified by a double asterisk on the preceding pages).
Although management evaluates and presents these non-GAAP
measures for the reasons described below, please be aware that these
non-GAAP measures have limitations and should not be considered in
isolation or as a substitute for revenue, operating income, income from
continuing operations, net income, earnings per share or any other
comparable operating measure prescribed by GAAP. In addition,
these non-GAAP financial measures may be calculated and/or presented
differently than measures with the same or similar names that are
reported by other companies, and as a result, the non-GAAP measures we
report may not be comparable to those reported by others.
|
|
|
|
Adjusted
Measures That Exclude Certain Charges, Costs, and Other Expenses.
Management evaluates non-GAAP measures that
exclude: (1) the impact of Timeshare strategy - impairment charges
incurred in the 2009 third quarter; (2) restructuring costs and other
charges incurred in the 2009 first through fourth quarters; (3) other
charges incurred in the 2010 fourth quarter; and (4) certain tax
expenses incurred in the 2009 first through third quarters and the
related reversal of those expenses in the 2010 fourth quarter, because
those non-GAAP measures allow for period-over-period comparisons of our
on-going core operations before material charges. These non-GAAP
measures also facilitate management’s comparison of results from our
on-going operations before material charges with results from other
lodging companies.
|
|
|
|
Timeshare
Strategy - Impairment Charges. In
response to the difficult business conditions that the Timeshare
segment’s timeshare, luxury residential, and luxury fractional real
estate development businesses experienced, we evaluated our entire
Timeshare portfolio in the 2009 third quarter. In order to adjust
the business strategy to reflect current market conditions at that
time, on September 22, 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. 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.
|
|
|
|
Restructuring
Costs and Other Charges - 2009. During
the latter part of 2008 we experienced a significant decline in demand
for hotel rooms both domestically and internationally due, in part, to
the financial crisis and the dramatic downturn in the economy.
Our capital intensive Timeshare business was also hurt by the
downturn in market conditions and particularly, the significant
deterioration in the credit markets. These declines resulted in
reduced management and franchise fees, cancellation of development
projects, reduced timeshare contract sales, contract cancellation
allowances, and charges and reserves associated with expected fundings,
loans, Timeshare inventory, accounts receivable, contract cancellation
allowances, valuation of Timeshare residual interests, hedge
ineffectiveness, and asset impairments. We responded by
implementing various cost saving measures which resulted in first,
second, third and fourth quarter 2009 restructuring costs of $2
million, $33 million, $9 million, and $7 million, respectively, that
were directly related to the downturn. We also incurred other
charges in the 2009 first, second, and fourth quarters totaling $127
million, $24 million, and $12 million respectively, as well as $1
million in net other credits in the 2009 third quarter, that were
directly related to the downturn, including asset impairment charges,
accounts receivable and guarantee charges, reserves associated with
loans, reversal of the liability related to expected fundings,
Timeshare contract cancellation allowances, and charges related to the
valuation of Timeshare residual interests.
|
|
|
|
Other
Charges - 2010. We
recorded other net charges of $100 million in the 2010 fourth quarter
which included an $84 million impairment charge associated with an
internally developed software asset and a $27 million impairment charge
associated with the anticipated disposition of a land parcel and a golf
course. These charges were partially offset by an $11 million
reversal recorded in the 2010 fourth quarter of a funding liability
recorded in 2009. Due to the significant impact of the recent
recession on hotel owner profitability, we agreed to absorb a portion
of the cost of the software asset and recorded an $84 million
impairment charge on the investment in the fourth quarter to reflect
the expected unrecovered cost. We consider our core operations to
encompass managing and franchising properties, and therefore we also
consider the $27 million impairment charge associated with ancillary
assets to be unrelated to our core operations. Except for the
impairment charges totaling $27 million of which $13 million impacted
our Timeshare Segment and $14 million impacted our North American
Limited-Service segment, the rest of the other charges in 2010 were not
allocated to any of our segments.
|
|
|
|
Certain
Tax Expenses. Certain
tax expenses for 2009 of $56 million included non-cash charges of $26
million in the 2009 first quarter, $17 million in the 2009 second
quarter, and $13 million in the 2009 third quarter primarily related to
the treatment of funds received from certain foreign subsidiaries, an
issue we were contesting with the Internal Revenue Service (“IRS”).
In the 2008 second quarter we also had recorded non-cash charges
of $24 million associated with the same issue. In the 2010 fourth
quarter, we reached a settlement with the Appeals Division of the IRS
that resolved all issues that arose in the audit of tax years 2005
through 2008. This settlement resulted in a decrease in tax
expense for 2010 of approximately $85 million, which was due to the
release of previously established tax liabilities for the treatment of
funds received from certain non-U.S. subsidiaries.
|
|
|
|
A-22
|
|
|
MARRIOTT
INTERNATIONAL, INC.
|
|
NON-GAAP
FINANCIAL MEASURES
|
|
(cont.)
|
|
|
|
Earnings
Before Interest, Taxes, Depreciation and Amortization .
Earnings before interest, taxes, depreciation and amortization
(“EBITDA”) reflects earnings excluding the impact of interest expense,
provision for income taxes, depreciation and amortization. Management
considers EBITDA to be an indicator of operating performance because we
use it to measure our ability to service debt, fund capital
expenditures, and expand our business. We also use EBITDA, as do
analysts, lenders, investors and others, to evaluate companies because
it excludes certain items that can vary widely across different
industries or among companies within the same industry. For
example, interest expense can be dependent on a company’s capital
structure, debt levels and credit ratings. Accordingly, the
impact of interest expense on earnings can vary significantly among
companies. The tax positions of companies can also vary because
of their differing abilities to take advantage of tax benefits and
because of the tax policies of the jurisdictions in which they operate.
As a result, effective tax rates and provision for income taxes
can vary considerably among companies. EBITDA also excludes
depreciation and amortization because companies utilize productive
assets of different ages and use different methods of both acquiring
and depreciating productive assets. These differences can result
in considerable variability in the relative costs of productive assets
and the depreciation and amortization expense among companies.
|
|
|
|
Both
EBITDA and Adjusted EBITDA (described below) exclude certain cash
expenses that we are obligated to make.
|
|
|
|
Adjusted
EBITDA. Management also evaluates Adjusted EBITDA as
an indicator of operating performance. Adjusted EBITDA excludes:
(1) Timeshare strategy - impairment charges of $752 million incurred in
the 2009 third quarter; (2) the 2009 restructuring costs and other
charges of $19 million from the fourth quarter, $8 million from the
third quarter, $57 million from the second quarter and $129 million
from the first quarter; and (3) the 2010 other net charges of $100
million recorded in the 2010 fourth quarter. Management excludes
these Timeshare strategy-impairment charges and restructuring costs and
other charges for the reasons noted above under “Adjusted Measures That
Exclude Certain Charges, Costs, and Other Expenses.”
|
|
|
|
Timeshare
Segment EBITDA .
Timeshare segment EBITDA reflects Timeshare segment results
excluding the impact of interest expense, tax expense and depreciation
and amortization. We do not allocate taxes to our Timeshare or
other segments. Management uses this non-GAAP measure for the
reasons noted previously under the "EBITDA" caption.
|
|
|
|
Timeshare
Segment Adjusted EBITDA. Management
also evaluates Timeshare Segment Adjusted EBITDA as an indicator of
Timeshare segment operating performance. Timeshare Segment
Adjusted EBITDA excludes: (1) Timeshare strategy - impairment charges
that were allocated to our Timeshare segment of $685 million incurred
in the 2009 third quarter; (2) the 2009 Timeshare segment restructuring
costs and other charges of $8 million from the fourth quarter, $5
million from the third quarter, $50 million from the second quarter and
$18 million from the first quarter; and (3) the 2010 other charges of
$13 million recorded in the 2010 fourth quarter that were allocated to
our Timeshare segment. Management uses this non-GAAP measure for
the reasons noted previously under the "Adjusted EBITDA" caption.
|
|
|
|
Timeshare
Segment Free Cash Flow. The
calculation of Timeshare segment free cash flow adds back to Timeshare
segment EBITDA the net cash flow change in Timeshare segment inventory,
asset dispositions and adjustments for non-cash items, and deducts net
cash used in financing activities associated with securitized and
non-securitized timeshare notes, non-development capital spending and
working capital changes. We consider Timeshare segment free cash
flow to be a meaningful indicator of our operating performance and
evaluate this metric because it represents the cash we have available
for capital spending, investments, and other purposes.
|
|
|
|
Adjusted
Measures that Exclude the Impact of New Accounting Standards or Reflect
Their Early Adoption. As
of the first day of fiscal year 2010, we adopted Accounting Standards
Update ("ASU") No. 2009-16, "Transfers and Servicing (Topic 860):
Accounting for Transfers of Financial Assets" (formerly known as FAS
No. 166) and ASU No. 2009-17, "Consolidations (Topic 810): Improvements
to Financial Reporting by Enterprises Involved with Variable Interest
Entities" (formerly known as FAS No. 167), which required consolidating
previously securitized pools of Timeshare notes and impacts the ongoing
accounting for those notes. Management evaluates non-GAAP
measures that exclude the impact of these standards in the current year
or include the impact of these standards as if we had adopted them
early in order to better perform year-over-year comparisons on a
comparable basis.
|
|
|
|
Total
Debt Net of Cash (or “Net Debt”) and Adjusted Total Debt Net of Cash.
Total debt net of cash reflects total debt
less cash and cash equivalents. Management considers total debt
net of cash to be a more accurate indicator of the net debt that must
be repaid or refinanced at maturity (as it gives consideration to cash
resources available to retire a portion of the debt when due). In
addition, Management evaluates adjusted total debt net of cash, which
excludes the debt that was consolidated as a result of adopting ASU
Nos. 2009-16 and 2009-17, because that debt is non-recourse to the
Company and is not supported by the Company’s cash flows.
Management believes that these financial measures provide a
clearer picture of the future demands on cash to repay debt and uses
these measures in making decisions regarding its borrowing capacity and
future refinancing needs. Management also evaluates adjusted
total debt net of cash for the reason stated in the previous paragraph.
|
|
|
|