BETHESDA, Md., Feb. 15, 2012
FOURTH QUARTER HIGHLIGHTS
- Fourth quarter adjusted diluted earnings per share
(EPS) totaled $0.46, a 31 percent
increase over prior year adjusted results;
- Fourth quarter worldwide comparable systemwide REVPAR
rose 6.3 percent using actual dollars. Average daily
rate rose 3.7 percent using actual dollars;
- At year-end, the company’s worldwide pipeline of
hotels under construction, awaiting conversion or approved for
development totaled over 110,000 rooms, including over 52,000 rooms
outside North America;
- Over 6,900 rooms opened during the quarter, including
over 1,800 rooms converted from competitor brands and nearly 3,500
rooms in international markets;
- For full year 2011, Marriott repurchased 43.4 million
shares of the company’s common stock for $1.4
billion;
- For full year 2012, Marriott expects comparable
systemwide REVPAR on a constant dollar basis to increase 5 to 7 percent
in North America, outside North America and worldwide.
- At year-end 2011, group revenue bookings for 2012
North American comparable Marriott Hotels & Resorts properties were
9 percent higher than group revenue bookings at year-end 2010 for stays
in 2011.
Marriott International, Inc. (NYSE: MAR) today reported fourth
quarter and full year 2011 results.
The company completed the spin-off of its Timeshare segment on
November 21, 2011. Because of
Marriott’s significant continuing involvement in the business after the
spin-off through licensing and other agreements, Timeshare segment
results for periods prior to the spin-off date continue to be included
in the company’s historical financial results. However, to evaluate the
performance of the company excluding the impact of the timeshare
business, the company is adjusting results and previously provided
guidance as if the spin-off had occurred on the first day of fiscal
2010. Timeshare spin-off adjustments include items such as the removal
of timeshare business operating results and spin-off transaction costs,
as well as the addition of license fees and other related items. See
pages A-1 through A-6 for reported results, the timeshare spin-off
adjustments and adjusted results.
FOURTH QUARTER 2011 RESULTS
Fourth quarter 2011 adjusted net income totaled $159 million, an 18 percent increase compared
to fourth quarter 2010 adjusted net income. Adjusted diluted EPS
totaled $0.46, a 31 percent increase
from adjusted diluted EPS in the year-ago quarter. On October 5, 2011, the company forecasted fourth
quarter diluted EPS of $0.45 to $0.50,
which assumed the timeshare spin-off would occur at year-end 2011.
Adjusting for the timeshare spin-off as if the spin-off had occurred
the first day of fiscal 2010, the company’s guidance would have been $0.40 to $0.44 as shown on page A-18.
Reported net income totaled $141
million in the fourth quarter of 2011 compared to $173 million in the year-ago quarter. Reported
diluted EPS was $0.41 in the fourth
quarter of 2011 compared to $0.46 in the
fourth quarter of 2010.
Adjusted net income and adjusted diluted EPS for the fourth
quarter of 2011 exclude $14 million ($18 million after-tax and $0.05 per diluted share) of timeshare spin-off
adjustments.
Adjusted net income and adjusted diluted EPS for the fourth
quarter of 2010 exclude $22 million ($13 million after-tax and $0.04 per diluted share) of timeshare spin-off
adjustments. Adjusted results for the fourth quarter of 2010 also
exclude $25 million after-tax ($0.07 per diluted share) of impairment charges
and certain tax items, including an $85 million
($0.22 per diluted share) non-cash
benefit in the provision for income taxes.
J.W. Marriott, Jr., chairman and chief executive officer of
Marriott International, said, “2011 was a great year. Occupancies and
room rates improved at our hotels in most markets around the world. We
increased our global hotel distribution and spun off our timeshare
business as Marriott Vacations Worldwide Corporation, a new separately
traded public company. Return on invested capital increased
dramatically and meaningful top line growth in our lodging business
helped drive base and franchise fees beyond their prior peak in 2008.
Adjusted earnings per share was outstanding and we returned over $1.5 billion to our shareholders through share
repurchases and dividends.
“Our system has never looked better. We opened 210 properties
with nearly 32,000 rooms during the year, including 80 hotels flying
our new AC Hotels by Marriott flag in Europe.
With great momentum in international markets, the growth rate for our
hotel rooms outside the U.S. was higher than within the U.S. The
Autograph Collection made its debut in Europe
adding nine properties, including the four spectacular Boscolo hotels.
And our EDITION brand kicked into high gear with new hotel
announcements, including the iconic Clock Tower building in New York. In total, our hotel development
pipeline increased to over 110,000 rooms as we signed new management
and franchise agreements for more than 320 hotels with over 50,000
rooms in 2011, most for hotels yet to open.
“We are bullish about the long-term growth prospects for both
Marriott and the global lodging industry. With a growing middle class
and rapid economic growth in many emerging markets, global demand is
increasing steadily. In the U.S., supply growth remains modest. As a
result, we expect revenue per available room to continue to improve in
most markets. Marriott is well positioned to benefit from these global
macro trends. Our products are high quality, our guest satisfaction is
very high, and our brands are preferred by owners and franchisees. New
hotel openings and renovations of existing hotels continue to energize
our brands, and with new designs and services, we continue to find new
ways to engage our guests. We expect 2012 to be an exciting year.”
For the 2011 fourth quarter, REVPAR for worldwide comparable
systemwide properties increased 5.9 percent (a 6.3 percent increase
using actual dollars). Excluding the Middle
East and Japan markets,
worldwide comparable systemwide REVPAR rose 6.2 percent (a 6.5 percent
increase using actual dollars).
International comparable systemwide REVPAR rose 4.1 percent (a
5.9 percent increase using actual dollars), including a 4.5 percent
increase in average daily rate (a 6.3 percent increase using actual
dollars) in the fourth quarter of 2011. Excluding the Middle East and Japan
markets, international comparable systemwide REVPAR increased 5.6
percent (a 6.9 percent increase using actual dollars).
In North America, comparable
systemwide REVPAR increased 6.4 percent in the fourth quarter of 2011,
including a 3.2 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 5.8 percent with a 3.4
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 7.0 percent in the fourth quarter with
a 3.4 percent increase in average daily rate.
Marriott added 40 new properties (6,925 rooms) to its
worldwide lodging portfolio in the 2011 fourth quarter, including
Shanghai Marriott City Centre, the Renaissance and Courtyard Doha City
Center hotels and the Scrub Island Resort, Spa and Marina, an Autograph
Collection hotel in the British Virgin
Islands. Nine properties (1,946 rooms) exited the system during
the quarter. At year-end, the company’s lodging group encompassed 3,718
properties and timeshare resorts for a total of 643,196 rooms.
The company’s worldwide pipeline of hotels under construction,
awaiting conversion or approved for development totaled nearly 700
properties with over 110,000 rooms at year-end. During 2011, the
company signed new management and franchise agreements for more than
320 hotels with over 50,000 rooms.
MARRIOTT ADJUSTED REVENUES totaled $3.4
billion in the 2011 fourth quarter compared to approximately $3.2 billion for the fourth quarter of 2010.
Adjusted base management and franchise fees rose 9 percent to $346 million reflecting higher REVPAR and fees
from new hotels. Incentive fees declined 1 percent reflecting lower
incentive fees in the Middle East and
continued weakness in the greater Washington,
DC market. In the fourth quarter, 27 percent of worldwide
company-managed hotels earned incentive management fees compared to 26
percent in the year-ago quarter.
Worldwide comparable company-operated house profit margins
increased 60 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 20 basis points and
North American comparable company-operated house profit margins
increased 100 basis points from the year-ago quarter.
Owned, leased, corporate housing and other revenue, net of
direct expenses, increased $15 million
in the 2011 fourth quarter, to $56 million,
largely due to higher credit card and residential branding fee revenues
and improved operating results at owned and leased hotels.
ADJUSTED GENERAL, ADMINISTRATIVE and OTHER expenses for the
2011 fourth quarter increased 2 percent to $219
million, compared to adjusted expenses of $215
million in the year-ago quarter.
ADJUSTED GAINS AND OTHER INCOME totaled $1
million compared to $8 million in
the year-ago quarter, primarily reflecting net gains on the sale of
real estate in the 2010 fourth quarter.
Adjusted Earnings before Interest Expense, Taxes,
Depreciation and Amortization (EBITDA)
Adjusted EBITDA totaled $316 million
in the 2011 fourth quarter, a 12 percent increase over 2010 fourth
quarter adjusted EBITDA of $282 million.
See pages A-12 for the EBITDA and adjusted EBITDA calculations.
FULL YEAR 2011 RESULTS
For the full year 2011, adjusted net income totaled $475 million, a 23 percent increase over full
year 2010 adjusted net income. Adjusted diluted EPS totaled $1.31, an increase of 28 percent from adjusted
diluted EPS a year ago.
Reported net income totaled $198
million for full year 2011 compared to reported net income of $458 million a year ago. Reported diluted EPS
was $0.55 for 2011 compared to reported
diluted EPS of $1.21 for 2010.
Adjusted net income and adjusted diluted EPS for full year
2011 exclude $300 million ($260 million after-tax and $0.72 per diluted share) of timeshare spin-off
adjustments. Adjusted results for the full year 2011 also exclude $28 million pretax ($17
million after-tax and $0.05 per
diluted share) of non-cash impairment and other charges.
Adjusted net income and adjusted diluted EPS for full year
2010 exclude $76 million ($47 million after-tax and $0.12 per diluted share) of timeshare spin-off
adjustments. Adjusted results for full year 2010 also exclude $25 million after-tax ($0.07
per diluted share) of impairment charges and certain tax items,
including an $85 million ($0.23 per diluted share) non-cash benefit in
the provision for income taxes.
REVPAR for the company’s worldwide comparable systemwide
properties increased 6.4 percent (a 7.1 percent increase using actual
dollars) in 2011. Excluding the Middle East
and Japan markets, worldwide
comparable systemwide REVPAR rose 6.9 percent (a 7.4 percent increase
using actual dollars).
International comparable systemwide REVPAR for 2011 increased
6.3 percent (a 9.6 percent increase using actual dollars), including a
0.9 percent increase in occupancy and a 4.9 percent increase in average
daily rate (an 8.1 percent increase using actual dollars). Excluding
the Middle East and Japan markets, international comparable
systemwide REVPAR increased 8.9 percent (an 11.9 percent increase using
actual dollars).
In North America, comparable
systemwide REVPAR increased 6.5 percent in 2011. REVPAR at the
company’s comparable systemwide North American full-service and luxury
hotels (including Marriott Hotels & Resorts, The
Ritz-Carlton and Renaissance Hotels) increased 5.8 percent
with a 1.3 percent increase in occupancy and an average daily rate
increase of 3.7 percent. REVPAR for comparable systemwide North
American limited-service hotels (including Courtyard, Residence
Inn, SpringHill Suites, TownePlace Suites and Fairfield Inn
& Suites) increased 7.0 percent with a 3.0 percent increase in
average daily rate.
MARRIOTT ADJUSTED REVENUES totaled nearly $11.0 billion in 2011 compared to $10.2 billion in 2010. Total adjusted fees in
2011 were $1,307 million, an increase of
10 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 7 percent reflecting
higher property-level profit due to worldwide REVPAR increases and
continued cost control, as well as international unit growth. For full
year 2011, 29 percent of company-operated hotels earned incentive
management fees compared to 27 percent in the prior year. Approximately
two-thirds of incentive management fees came from hotels outside North America in both 2011 and 2010.
Owned, leased, corporate housing and other revenue, net of
direct expenses, totaled $140 million in
2011 compared to $91 million in 2010.
Results were primarily impacted by an increase in credit card and
residential branding fees, stronger results at owned and leased hotels
and an increase in termination fees net of property closing costs.
ADJUSTED GENERAL, ADMINISTRATIVE and OTHER expenses in 2011
increased $50 million to $643 million, an 8 percent increase compared
to adjusted expenses in 2010, largely due to higher compensation costs,
higher costs associated with growth in international markets and a
year-over-year increase in legal expenses.
ADJUSTED GAINS AND OTHER INCOME totaled $8
million in 2011 primarily reflecting net gains on the sale of
real estate. Adjusted gains and other income of $15
million in 2010 included $13 million
of net gains on the sale of real estate.
Adjusted EBITDA
Adjusted EBITDA totaled $992 million
in 2011 compared to 2010 adjusted EBITDA of $885
million, a 12 percent increase. See pages A-13 for the EBITDA
and adjusted EBITDA calculations.
BALANCE SHEET
At year-end 2011, total debt was $2,171
million and cash balances totaled $102
million, compared to $2,829 million
in debt and $505 million of cash at
year-end 2010. The $658 million decline
in total debt from year-end 2010 primarily resulted from the spin-off
of the Timeshare segment and the transfer of its non-recourse debt,
which was partially offset by a $331 million
increase in commercial paper borrowings.
COMMON STOCK
Weighted average fully diluted shares outstanding used to
calculate adjusted diluted EPS totaled 346.4 million in the 2011 fourth
quarter compared to 382.0 million in the year-ago quarter.
The company repurchased 6.9 million shares of common stock in
the fourth quarter at a cost of $200 million.
For the full year 2011, the company repurchased 43.4 million shares of
common stock at a cost of $1.4 billion.
On February 10, 2012, the board of
directors increased the company’s authorization to repurchase shares by
35 million shares to yield a total share authorization of 40.5 million
shares.
FIRST QUARTER 2012 OUTLOOK
For the first quarter, the company expects comparable
systemwide REVPAR on a constant dollar basis will increase 5 to 6
percent in North America, 4 to 5
percent outside North America and 5
to 6 percent worldwide.
2012 OUTLOOK
The company expects full year 2012 comparable systemwide
REVPAR on a constant dollar basis will increase 5 to 7 percent in North America, outside North America and worldwide.
The company expects to open about 30,000 rooms in 2012 as most
hotels expected to open are already under construction or undergoing
conversion from other brands.
For 2012, assuming a strong U.S. dollar and modest fee revenue
growth in hotels in Washington, DC,
the company expects full year fee revenue could total $1,410 million to $1,450 million, growth of 8
to 11 percent over 2011 adjusted total fee revenue. The company expects
owned, leased, corporate housing and other revenue, net of direct
expense, could total $130 million to $140
million in 2012.
Compared to prior assumptions for 2012 operating profit
provided by the company on October 5, 2011,
expectations today reflect 2011 actual results and greater precision
resulting from the property-level budgeting process completed in the
fourth quarter.
The company estimates that, on a full year basis, one point of
worldwide systemwide REVPAR impacts total fees by approximately $20 million pretax and owned, leased,
corporate housing and other revenue, net of direct expense, by
approximately $5 million pretax.
For 2012, the company expects general, administrative and
other expenses to total $660 million to $670
million, an increase of 3 to 4 percent over 2011 adjusted
expenses of $643 million.
Given these assumptions, 2012 diluted EPS could total $1.52 to $1.64.
|
First
Quarter 2012
|
Full
Year 2012
|
|
Total
fee revenue
|
$295
million to $305 million
|
$1,410
million to $1,450 million
|
|
Owned,
leased, corporate housing and other revenue, net of direct expenses
|
$20
million to $25 million
|
$130
million to $140 million
|
|
General,
administrative and other expenses
|
$150
million to $155 million
|
$660
million to $670 million
|
|
Operating
income
|
$160
million to $180 million
|
$870
million to $930 million
|
|
Gains
and other income
|
Approx
$2 million
|
Approx
$10 million
|
|
Net
interest expense(1)
|
Approx
$25 million
|
Approx
$105 million
|
|
Equity
in earnings (losses)
|
Approx
$(5) million
|
Approx
$(5) million
|
|
Earnings
per share
|
$0.26
to $0.30
|
$1.52
to $1.64
|
|
Tax
rate
|
|
33.0
percent
|
|
(1)
Net of interest income
|
|
|
|
|
The company expects investment spending in 2012 will total
approximately $550 million to $750 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. Assuming additional investment
opportunities do not appear, roughly $1 billion
could be returned to shareholders through share repurchases and
dividends.
Based upon the assumptions above, full year 2012 EBITDA is
expected to total $1,090 million to $1,150
million, a 10 to 16 percent increase over the prior year’s
adjusted EBITDA. Adjusted EBITDA for full year 2011 totaled $992 million and is shown on page A-13.
Marriott International, Inc. (NYSE: MAR) will conduct its
quarterly earnings review for the investment community and news media
on Thursday, February 16, 2012 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 16, 2013.
The telephone dial-in number for the conference call is
706-679-3455 and the conference ID is 42170477. A telephone replay of
the conference call will be available from 1
p.m. ET, Thursday, February 16, 2012
until 8 p.m. ET, Thursday,
February 23, 2012. To access the replay, call 706-645-9291. The
reservation number for the recording is 42170477.
Note on forward-looking statements : This press
release and accompanying schedules contain “forward-looking statements”
within the meaning of federal securities laws, including 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 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 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; competitive conditions in the lodging
industry; relationships with clients and property owners; and the
availability of capital to finance hotel growth and refurbishment. 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
15, 2012. 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 over 3,700 lodging properties in 73 countries and
territories. Marriott International operates and franchises hotels
under the Marriott, JW Marriott, The Ritz-Carlton, EDITION, Autograph
Collection, Renaissance, AC Hotels by Marriott, Residence Inn,
Courtyard, TownePlace Suites, Fairfield Inn & Suites, SpringHill
Suites and Bulgari brand names; licenses the development and operation
of vacation ownership resorts under the Marriott Vacation Club and
Grand Residences by Marriott brands and licenses the development of The
Ritz-Carlton Destination Club brand to the newly independent Marriott
Vacations Worldwide Corporation; 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 120,000 employees at 2011 year-end. It is ranked by
FORTUNE as the lodging industry’s most admired company and one of the
best companies to work for. In fiscal year 2011, Marriott International
reported revenues of over $12 billion.
For more information or reservations, please visit our website at www.marriott.com, and for the
latest company news, visit www.marriottnewscenter.com.
IRPR#1
Tables follow
MARRIOTT
INTERNATIONAL, INC.
|
|
PRESS
RELEASE SCHEDULES
|
|
QUARTER
4, 2011
|
|
TABLE
OF CONTENTS
|
|
|
|
|
Consolidated
Statements of Income
|
A-1
|
|
|
|
|
Consolidated
Statements of Income for Prior Periods
|
A-3
|
|
|
|
|
Total
Lodging Products
|
A-7
|
|
|
|
|
Key
Lodging Statistics
|
A-8
|
|
|
|
|
EBITDA
and Adjusted EBITDA
|
A-12
|
|
|
|
|
EBITDA
and Adjusted EBITDA for Prior Periods
|
A-14
|
|
|
|
|
EBITDA
and Adjusted EBITDA Forecast
|
A-17
|
|
|
|
|
Fourth
Quarter 2011 Guidance Adjusted for the Impact of the Timeshare Spin-off
|
A-18
|
|
|
|
|
Adjusted
Pretax Margin Excluding Adjusted Reimbursed Costs
|
A-19
|
|
|
|
|
Adjusted
2007 EPS Excluding the Timeshare Segment and Including the Timeshare
License Fee
|
A-20
|
|
|
|
|
Non-GAAP
Financial Measures
|
A-21
|
|
|
|
MARRIOTT
INTERNATIONAL, INC.
|
|
NON-GAAP
FINANCIAL MEASURES
|
|
ADJUSTED
CONSOLIDATED STATEMENTS OF INCOME
|
|
FOURTH
QUARTER 2011 AND 2010
|
|
(in
millions, except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As
Reported
16 Weeks Ended
December 30, 2011
|
Timeshare
Spin-off
Adjustments (
10)
|
As
Adjusted
16 Weeks Ended
December 30, 2011 **
|
|
As
Reported
16 Weeks Ended
December 31, 2010
|
Timeshare
Spin-off
Adjustments (
10)
|
Other
Charges
and
Certain Tax Items
|
As
Adjusted
16 Weeks Ended
December 31, 2010 **
|
|
Percent
Better (Worse)
Adjusted 2011
vs. Adjusted 2010
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
REVENUES
|
|
|
|
|
|
|
|
|
|
|
|
|
Base
management fees
|
|
$ 183
|
$ (12)
|
$ 171
|
|
$ 178
|
$ (18)
|
$ -
|
$ 160
|
|
7
|
|
Franchise
fees
|
|
159
|
16
|
175
|
|
136
|
20
|
-
|
156
|
|
12
|
|
Incentive
management fees
|
|
74
|
-
|
74
|
|
75
|
-
|
-
|
75
|
|
(1)
|
|
Owned,
leased, corporate housing and other revenue (1 )
|
|
356
|
-
|
356
|
|
342
|
-
|
-
|
342
|
|
4
|
|
Timeshare
sales and services (2)
|
|
238
|
(238)
|
-
|
|
372
|
(372)
|
-
|
-
|
|
-
|
|
Cost
reimbursements (3 )
|
|
2,683
|
(58)
|
2,625
|
|
2,539
|
(78)
|
-
|
2,461
|
|
7
|
|
Total
Revenues
|
|
3,693
|
(292)
|
3,401
|
|
3,642
|
(448)
|
-
|
3,194
|
|
6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING
COSTS AND EXPENSES
|
|
|
|
|
|
|
|
|
|
|
|
|
Owned,
leased and corporate housing - direct (4 )
|
|
300
|
-
|
300
|
|
301
|
-
|
-
|
301
|
|
-
|
|
Timeshare
- direct
|
|
209
|
(209)
|
-
|
|
329
|
(329)
|
-
|
-
|
|
-
|
|
Timeshare
strategy - impairment charges (5 )
|
|
-
|
-
|
-
|
|
-
|
-
|
-
|
-
|
|
-
|
|
Reimbursed
costs
|
|
2,683
|
(58)
|
2,625
|
|
2,539
|
(78)
|
-
|
2,461
|
|
(7)
|
|
General,
administrative and other (6 )
|
|
254
|
(35)
|
219
|
|
351
|
(38)
|
(98)
|
215
|
|
(2)
|
|
Total
Expenses
|
|
3,446
|
(302)
|
3,144
|
|
3,520
|
(445)
|
(98)
|
2,977
|
|
(6)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING
INCOME (LOSS)
|
|
247
|
10
|
257
|
|
122
|
(3)
|
98
|
217
|
|
18
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gains
(losses) and other income (7 )
|
|
4
|
(3)
|
1
|
|
28
|
(20)
|
-
|
8
|
|
(88)
|
|
Interest
expense
|
|
(47)
|
5
|
(42)
|
|
(50)
|
11
|
-
|
(39)
|
|
(8)
|
|
Interest
income
|
|
5
|
2
|
7
|
|
8
|
3
|
-
|
11
|
|
(36)
|
|
Equity
in (losses) earnings (8 )
|
|
(7)
|
-
|
(7)
|
|
2
|
(13)
|
-
|
(11)
|
|
36
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME
(LOSS) BEFORE INCOME TAXES
|
|
202
|
14
|
216
|
|
110
|
(22)
|
98
|
186
|
|
16
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Provision)
benefit for income taxes
|
|
(61)
|
4
|
(57)
|
|
63
|
9
|
(123)
|
(51)
|
|
(12)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET
INCOME (LOSS)
|
|
$ 141
|
$ 18
|
$ 159
|
|
$ 173
|
$ (13)
|
$ (25)
|
$ 135
|
|
18
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EARNINGS
(LOSSES) PER SHARE - Basic
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (losses) per share (9 )
|
|
$ 0.42
|
$ 0.05
|
$ 0.47
|
|
$ 0.48
|
$
(0.04)
|
$
(0.07)
|
$ 0.37
|
|
27
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EARNINGS
(LOSSES) PER SHARE - Diluted
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (losses) per share (9 )
|
|
$ 0.41
|
$ 0.05
|
$ 0.46
|
|
$ 0.46
|
$
(0.04)
|
$
(0.07)
|
$ 0.35
|
|
31
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
Shares
|
|
335.6
|
335.6
|
335.6
|
|
365.6
|
365.6
|
365.6
|
365.6
|
|
|
|
Diluted
Shares
|
|
346.4
|
346.4
|
346.4
|
|
382.0
|
382.0
|
382.0
|
382.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See
page A-6 for footnote references.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
A-1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MARRIOTT
INTERNATIONAL, INC.
|
|
NON-GAAP
FINANCIAL MEASURES
|
|
ADJUSTED
CONSOLIDATED STATEMENTS OF INCOME
|
|
FULL
YEAR 2011 AND 2010
|
|
(in
millions, except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As
Reported
52 Weeks Ended
December 30, 2011
|
Timeshare
Spin-off
Adjustments (
10)
|
Other
Charges
and
Certain Tax Items
|
As
Adjusted
52 Weeks Ended
December 30, 2011 **
|
|
As
Reported
52 Weeks Ended
December 31, 2010
|
Timeshare
Spin-off
Adjustments (
10)
|
Other
Charges
and
Certain Tax Items
|
As
Adjusted
52 Weeks Ended
December 31, 2010 **
|
|
Percent
Better (Worse)
Adjusted 2011
vs. Adjusted 2010
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
REVENUES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Base
management fees
|
|
$ 602
|
$ (56)
|
$ -
|
$ 546
|
|
$ 562
|
$ (60)
|
$ -
|
$ 502
|
|
9
|
|
Franchise
fees
|
|
506
|
60
|
-
|
566
|
|
441
|
64
|
-
|
505
|
|
12
|
|
Incentive
management fees
|
|
195
|
-
|
-
|
195
|
|
182
|
-
|
-
|
182
|
|
7
|
|
Owned,
leased, corporate housing and other revenue (1 )
|
|
1,083
|
-
|
-
|
1,083
|
|
1,046
|
-
|
-
|
1,046
|
|
4
|
|
Timeshare
sales and services (2)
|
|
1,088
|
(1,088)
|
-
|
-
|
|
1,221
|
(1,221)
|
-
|
-
|
|
-
|
|
Cost
reimbursements (3 )
|
|
8,843
|
(268)
|
-
|
8,575
|
|
8,239
|
(251)
|
-
|
7,988
|
|
7
|
|
Total
Revenues
|
|
12,317
|
(1,352)
|
-
|
10,965
|
|
11,691
|
(1,468)
|
-
|
10,223
|
|
7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING
COSTS AND EXPENSES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Owned,
leased and corporate housing - direct (4 )
|
|
943
|
-
|
-
|
943
|
|
955
|
-
|
-
|
955
|
|
1
|
|
Timeshare
- direct
|
|
929
|
(929)
|
-
|
-
|
|
1,022
|
(1,022)
|
-
|
-
|
|
-
|
|
Timeshare
strategy - impairment charges (5 )
|
|
324
|
(324)
|
-
|
-
|
|
-
|
-
|
-
|
-
|
|
-
|
|
Reimbursed
costs
|
|
8,843
|
(268)
|
-
|
8,575
|
|
8,239
|
(251)
|
-
|
7,988
|
|
(7)
|
|
General,
administrative and other (6 )
|
|
752
|
(99)
|
(10)
|
643
|
|
780
|
(89)
|
(98)
|
593
|
|
(8)
|
|
Total
Expenses
|
|
11,791
|
(1,620)
|
(10)
|
10,161
|
|
10,996
|
(1,362)
|
(98)
|
9,536
|
|
(7)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING
INCOME (LOSS)
|
|
526
|
268
|
10
|
804
|
|
695
|
(106)
|
98
|
687
|
|
17
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Losses)
gains and other income (7 )
|
|
(7)
|
(3)
|
18
|
8
|
|
35
|
(20)
|
-
|
15
|
|
(47)
|
|
Interest
expense
|
|
(164)
|
29
|
-
|
(135)
|
|
(180)
|
43
|
-
|
(137)
|
|
1
|
|
Interest
income
|
|
14
|
10
|
-
|
24
|
|
19
|
10
|
-
|
29
|
|
(17)
|
|
Equity
in losses (8 )
|
|
(13)
|
(4)
|
-
|
(17)
|
|
(18)
|
(3)
|
-
|
(21)
|
|
19
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME
(LOSS) BEFORE INCOME TAXES
|
|
356
|
300
|
28
|
684
|
|
551
|
(76)
|
98
|
573
|
|
19
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Provision)
benefit for income taxes
|
|
(158)
|
(40)
|
(11)
|
(209)
|
|
(93)
|
29
|
(123)
|
(187)
|
|
(12)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET
INCOME (LOSS)
|
|
$ 198
|
$ 260
|
$ 17
|
$ 475
|
|
$ 458
|
$ (47)
|
$ (25)
|
$ 386
|
|
23
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EARNINGS
(LOSSES) PER SHARE - Basic
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (losses) per share (9 )
|
|
$ 0.56
|
$ 0.74
|
$ 0.05
|
$ 1.36
|
|
$ 1.26
|
$
(0.13)
|
$
(0.07)
|
$ 1.07
|
|
27
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EARNINGS
(LOSSES) PER SHARE - Diluted
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (losses) per share (9 )
|
|
$ 0.55
|
$ 0.72
|
$ 0.05
|
$ 1.31
|
|
$ 1.21
|
$
(0.12)
|
$
(0.07)
|
$ 1.02
|
|
28
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
Shares
|
|
350.1
|
350.1
|
350.1
|
350.1
|
|
362.8
|
362.8
|
362.8
|
362.8
|
|
|
|
Diluted
Shares
|
|
362.3
|
362.3
|
362.3
|
362.3
|
|
378.3
|
378.3
|
378.3
|
378.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See
page A-6 for footnote references.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
A-2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MARRIOTT
INTERNATIONAL, INC.
|
|
NON-GAAP
FINANCIAL MEASURES
|
|
ADJUSTED
CONSOLIDATED STATEMENTS OF INCOME
|
|
FIRST
QUARTER 2011 AND 2010
|
|
(in
millions, except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As
Reported
12 Weeks Ended
March 25, 2011
|
Timeshare
Spin-off
Adjustments (
10)
|
As
Adjusted
12 Weeks Ended
March 25, 2011 **
|
|
As
Reported
12 Weeks Ended
March 26, 2010
|
Timeshare
Spin-off
Adjustments (
10)
|
As
Adjusted
12 Weeks Ended
March 26, 2010 **
|
|
Percent
Better (Worse)
Adjusted 2011
vs. Adjusted 2010
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
REVENUES
|
|
|
|
|
|
|
|
|
|
|
|
Base
management fees
|
|
$ 134
|
$ (14)
|
$ 120
|
|
$ 125
|
$ (14)
|
$ 111
|
|
8
|
|
Franchise
fees
|
|
103
|
14
|
117
|
|
91
|
14
|
105
|
|
11
|
|
Incentive
management fees
|
|
42
|
-
|
42
|
|
40
|
-
|
40
|
|
5
|
|
Owned,
leased, corporate housing and other revenue (1 )
|
|
224
|
-
|
224
|
|
229
|
-
|
229
|
|
(2)
|
|
Timeshare
sales and services (2)
|
|
276
|
(276)
|
-
|
|
285
|
(285)
|
-
|
|
-
|
|
Cost
reimbursements (3 )
|
|
1,999
|
(62)
|
1,937
|
|
1,860
|
(57)
|
1,803
|
|
7
|
|
Total
Revenues
|
|
2,778
|
(338)
|
2,440
|
|
2,630
|
(342)
|
2,288
|
|
7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING
COSTS AND EXPENSES
|
|
|
|
|
|
|
|
|
|
|
|
Owned,
leased and corporate housing - direct (4 )
|
|
204
|
-
|
204
|
|
217
|
-
|
217
|
|
6
|
|
Timeshare
- direct
|
|
225
|
(225)
|
-
|
|
235
|
(235)
|
-
|
|
-
|
|
Timeshare
strategy - impairment charges (5 )
|
|
-
|
-
|
-
|
|
-
|
-
|
-
|
|
-
|
|
Reimbursed
costs
|
|
1,999
|
(62)
|
1,937
|
|
1,860
|
(57)
|
1,803
|
|
(7)
|
|
General,
administrative and other (6 )
|
|
159
|
(18)
|
141
|
|
138
|
(19)
|
119
|
|
(18)
|
|
Total
Expenses
|
|
2,587
|
(305)
|
2,282
|
|
2,450
|
(311)
|
2,139
|
|
(7)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING
INCOME (LOSS)
|
|
191
|
(33)
|
158
|
|
180
|
(31)
|
149
|
|
6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gains
and other income (7 )
|
|
2
|
-
|
2
|
|
1
|
-
|
1
|
|
100
|
|
Interest
expense
|
|
(41)
|
9
|
(32)
|
|
(45)
|
11
|
(34)
|
|
6
|
|
Interest
income
|
|
4
|
3
|
7
|
|
4
|
2
|
6
|
|
17
|
|
Equity
in (losses) earnings (8 )
|
|
(4)
|
-
|
(4)
|
|
(11)
|
5
|
(6)
|
|
33
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME
(LOSS) BEFORE INCOME TAXES
|
|
152
|
(21)
|
131
|
|
129
|
(13)
|
116
|
|
13
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Provision)
benefit for income taxes
|
|
(51)
|
8
|
(43)
|
|
(46)
|
4
|
(42)
|
|
(2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET
INCOME (LOSS)
|
|
$ 101
|
$ (13)
|
$ 88
|
|
$ 83
|
$ (9)
|
$ 74
|
|
19
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EARNINGS
(LOSSES) PER SHARE - Basic
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (losses) per share (9 )
|
|
$ 0.27
|
$
(0.04)
|
$ 0.24
|
|
$ 0.23
|
$
(0.02)
|
$ 0.21
|
|
14
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EARNINGS
(LOSSES) PER SHARE - Diluted
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (losses) per share (9 )
|
|
$ 0.26
|
$
(0.03)
|
$ 0.23
|
|
$ 0.22
|
$
(0.02)
|
$ 0.20
|
|
15
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
Shares
|
|
367.1
|
367.1
|
367.1
|
|
359.4
|
359.4
|
359.4
|
|
|
|
Diluted
Shares
|
|
381.8
|
381.8
|
381.8
|
|
373.3
|
373.3
|
373.3
|
|
|
|
See
page A-6 for footnote references.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
A-3
|
|
|
|
|
|
|
|
|
|
|
|
|
MARRIOTT
INTERNATIONAL, INC.
|
|
NON-GAAP
FINANCIAL MEASURES
|
|
ADJUSTED
CONSOLIDATED STATEMENTS OF INCOME
|
|
SECOND
QUARTER 2011 AND 2010
|
|
(in
millions, except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As
Reported
12 Weeks Ended
June 17, 2011
|
Timeshare
Spin-off
Adjustments (
10)
|
As
Adjusted
12 Weeks Ended
June 17, 2011 **
|
|
As
Reported
12 Weeks Ended
June 18, 2010
|
Timeshare
Spin-off
Adjustments (
10)
|
As
Adjusted
12 Weeks Ended
June 18, 2010 **
|
|
Percent
Better (Worse)
Adjusted 2011
vs. Adjusted 2010
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
REVENUES
|
|
|
|
|
|
|
|
|
|
|
|
Base
management fees
|
|
$ 149
|
$ (14)
|
$ 135
|
|
$ 136
|
$ (14)
|
$ 122
|
|
11
|
|
Franchise
fees
|
|
120
|
15
|
135
|
|
105
|
15
|
120
|
|
13
|
|
Incentive
management fees
|
|
50
|
-
|
50
|
|
46
|
-
|
46
|
|
9
|
|
Owned,
leased, corporate housing and other revenue (1)
|
|
249
|
-
|
249
|
|
255
|
-
|
255
|
|
(2)
|
|
Timeshare
sales and services (2)
|
|
288
|
(288)
|
-
|
|
289
|
(289)
|
-
|
|
-
|
|
Cost
reimbursements (3)
|
|
2,116
|
(80)
|
2,036
|
|
1,940
|
(57)
|
1,883
|
|
8
|
|
Total
Revenues
|
|
2,972
|
(367)
|
2,605
|
|
2,771
|
(345)
|
2,426
|
|
7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING
COSTS AND EXPENSES
|
|
|
|
|
|
|
|
|
|
|
|
Owned,
leased and corporate housing - direct (4)
|
|
220
|
-
|
220
|
|
224
|
-
|
224
|
|
2
|
|
Timeshare
- direct
|
|
245
|
(245)
|
-
|
|
239
|
(239)
|
-
|
|
-
|
|
Timeshare
strategy - impairment charges (5)
|
|
-
|
-
|
-
|
|
-
|
-
|
-
|
|
-
|
|
Reimbursed
costs
|
|
2,116
|
(80)
|
2,036
|
|
1,940
|
(57)
|
1,883
|
|
(8)
|
|
General,
administrative and other (6)
|
|
159
|
(19)
|
140
|
|
142
|
(14)
|
128
|
|
(9)
|
|
Total
Expenses
|
|
2,740
|
(344)
|
2,396
|
|
2,545
|
(310)
|
2,235
|
|
(7)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING
INCOME (LOSS)
|
|
232
|
(23)
|
209
|
|
226
|
(35)
|
191
|
|
9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gains
(losses) and other income (7)
|
|
3
|
(1)
|
2
|
|
3
|
-
|
3
|
|
(33)
|
|
Interest
expense
|
|
(37)
|
8
|
(29)
|
|
(44)
|
11
|
(33)
|
|
12
|
|
Interest
income
|
|
3
|
2
|
5
|
|
3
|
3
|
6
|
|
(17)
|
|
Equity
in (losses) earnings (8)
|
|
-
|
-
|
-
|
|
(4)
|
3
|
(1)
|
|
100
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME
(LOSS) BEFORE INCOME TAXES
|
|
201
|
(14)
|
187
|
|
184
|
(18)
|
166
|
|
13
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Provision)
benefit for income taxes
|
|
(66)
|
5
|
(61)
|
|
(65)
|
8
|
(57)
|
|
(7)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET
INCOME (LOSS)
|
|
$ 135
|
$ (9)
|
$ 126
|
|
$ 119
|
$ (10)
|
$ 109
|
|
16
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EARNINGS
(LOSSES) PER SHARE - Basic
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (losses) per share (9)
|
|
$ 0.38
|
$
(0.02)
|
$ 0.35
|
|
$ 0.33
|
$
(0.03)
|
$ 0.30
|
|
17
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EARNINGS
(LOSSES) PER SHARE - Diluted
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (losses) per share (9)
|
|
$ 0.37
|
$
(0.02)
|
$ 0.34
|
|
$ 0.31
|
$
(0.03)
|
$ 0.29
|
|
17
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
Shares
|
|
356.9
|
356.9
|
356.9
|
|
362.1
|
362.1
|
362.1
|
|
|
|
Diluted
Shares
|
|
369.4
|
369.4
|
369.4
|
|
377.4
|
377.4
|
377.4
|
|
|
|
See
page A-6 for footnote references.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
A-4
|
|
|
|
|
|
|
|
|
|
|
|
|
MARRIOTT
INTERNATIONAL, INC.
|
|
NON-GAAP
FINANCIAL MEASURES
|
|
ADJUSTED
CONSOLIDATED STATEMENTS OF INCOME
|
|
THIRD
QUARTER 2011 AND 2010
|
|
(in
millions, except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As
Reported
12 Weeks Ended
September 9, 2011
|
Timeshare
Spin-off
Adjustments (
10)
|
Other
Charges
and
Certain Tax Items
|
As
Adjusted
12 Weeks Ended
September 9, 2011 **
|
|
As
Reported
12 Weeks Ended
September 10, 2010
|
Timeshare
Spin-off
Adjustments (
10)
|
As
Adjusted
12 Weeks Ended
September 10, 2010 **
|
|
Percent
Better (Worse)
Adjusted 2011
vs. Adjusted 2010
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
REVENUES
|
|
|
|
|
|
|
|
|
|
|
|
|
Base
management fees
|
|
$ 136
|
$ (16)
|
$ -
|
$ 120
|
|
$ 123
|
$ (14)
|
$ 109
|
|
10
|
|
Franchise
fees
|
|
124
|
15
|
-
|
139
|
|
109
|
15
|
124
|
|
12
|
|
Incentive
management fees
|
|
29
|
-
|
-
|
29
|
|
21
|
-
|
21
|
|
38
|
|
Owned,
leased, corporate housing and other revenue (1)
|
|
254
|
-
|
-
|
254
|
|
220
|
-
|
220
|
|
15
|
|
Timeshare
sales and services (2)
|
|
286
|
(286)
|
-
|
-
|
|
275
|
(275)
|
-
|
|
-
|
|
Cost
reimbursements (3)
|
|
2,045
|
(68)
|
-
|
1,977
|
|
1,900
|
(59)
|
1,841
|
|
7
|
|
Total
Revenues
|
|
2,874
|
(355)
|
-
|
2,519
|
|
2,648
|
(333)
|
2,315
|
|
9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING
COSTS AND EXPENSES
|
|
|
|
|
|
|
|
|
|
|
|
|
Owned,
leased and corporate housing - direct (4)
|
|
219
|
-
|
-
|
219
|
|
213
|
-
|
213
|
|
(3)
|
|
Timeshare
- direct
|
|
250
|
(250)
|
-
|
-
|
|
219
|
(219)
|
-
|
|
-
|
|
Timeshare
strategy - impairment charges (5)
|
|
324
|
(324)
|
-
|
-
|
|
-
|
-
|
-
|
|
-
|
|
Reimbursed
costs
|
|
2,045
|
(68)
|
-
|
1,977
|
|
1,900
|
(59)
|
1,841
|
|
(7)
|
|
General,
administrative and other (6)
|
|
180
|
(27)
|
(10)
|
143
|
|
149
|
(18)
|
131
|
|
(9)
|
|
Total
Expenses
|
|
3,018
|
(669)
|
(10)
|
2,339
|
|
2,481
|
(296)
|
2,185
|
|
(7)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING
(LOSS) INCOME
|
|
(144)
|
314
|
10
|
180
|
|
167
|
(37)
|
130
|
|
38
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Losses)
gains and other income (7)
|
|
(16)
|
1
|
18
|
3
|
|
3
|
-
|
3
|
|
-
|
|
Interest
expense
|
|
(39)
|
7
|
-
|
(32)
|
|
(41)
|
10
|
(31)
|
|
(3)
|
|
Interest
income
|
|
2
|
3
|
-
|
5
|
|
4
|
2
|
6
|
|
(17)
|
|
Equity
in (losses) earnings (8)
|
|
(2)
|
(4)
|
-
|
(6)
|
|
(5)
|
2
|
(3)
|
|
(100)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(LOSS)
INCOME BEFORE INCOME TAXES
|
|
(199)
|
321
|
28
|
150
|
|
128
|
(23)
|
105
|
|
43
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Benefit
(provision) for income taxes
|
|
20
|
(57)
|
(11)
|
(48)
|
|
(45)
|
8
|
(37)
|
|
(30)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET
(LOSS) INCOME
|
|
$ (179)
|
$ 264
|
$ 17
|
$ 102
|
|
$ 83
|
$ (15)
|
$ 68
|
|
50
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(LOSSES)
EARNINGS PER SHARE - Basic
|
|
|
|
|
|
|
|
|
|
|
|
|
(Losses) earnings per share (9)
|
|
$
(0.52)
|
$ 0.76
|
$ 0.05
|
$ 0.30
|
|
$ 0.23
|
$
(0.04)
|
$ 0.19
|
|
58
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(LOSSES)
EARNINGS PER SHARE - Diluted
|
|
|
|
|
|
|
|
|
|
|
|
|
(Losses) earnings per share (9)
|
|
$
(0.52)
|
$ 0.76
|
$ 0.05
|
$ 0.29
|
|
$ 0.22
|
$
(0.04)
|
$ 0.18
|
|
61
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
Shares
|
|
345.4
|
345.4
|
345.4
|
345.4
|
|
363.1
|
363.1
|
363.1
|
|
|
|
Diluted
Shares 11
|
|
345.4
|
345.4
|
345.4
|
346.4
|
|
378.1
|
378.1
|
378.1
|
|
|
|
See
page A-6 for footnote references.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
A-5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MARRIOTT
INTERNATIONAL, INC.
|
|
NON-GAAP
FINANCIAL MEASURES
|
|
ADJUSTED
CONSOLIDATED STATEMENTS OF INCOME
|
|
(in
millions, except per share amounts)
|
|
|
|
**
Denotes non-GAAP financial measures. Please see pages A-21 and A-22 for
additional information about our reasons for providing these
alternative financial measures and limitations on their use.
|
|
(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) –
Reflects the following 2011 third quarter impairments: inventory $256
million, land $62 million, and other impairments $6 million, all of
which are allocated to the Timeshare segment.
|
|
(6) – General,
administrative and other expenses
include the overhead costs allocated to our segments, and our corporate
overhead costs and general expenses.
|
|
(7) – Gains
(losses) and other income includes
gains and losses on: the sale of real estate, note sales or repayments
(except timeshare note securitizations), the sale or
other-than-temporary impairment
of joint ventures and investments, debt extinguishments, and income
from cost method joint ventures.
|
|
(8) – Equity
in (losses) earnings includes
our equity in earnings or losses of unconsolidated equity method joint
ventures.
|
|
(9) –
Earnings per share plus adjustment items may not equal earnings per
share as adjusted due to rounding.
|
|
(10) –
The adjusted consolidated statements of income are presented as if the
Timeshare spin-off had occurred on January 2, 2010.
|
|
(11) –
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-6
|
|
|
MARRIOTT
INTERNATIONAL, INC.
|
|
TOTAL
LODGING PRODUCTS (1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Number
of Properties
|
|
Number
of Rooms/Suites
|
|
Brand
|
|
December
30,
2011
|
December
31,
2010
|
vs.
December 31,
2010
|
|
December
30,
2011
|
December
31,
2010
|
vs.
December 31,
2010
|
|
|
|
|
|
|
|
|
|
|
|
Domestic
Full-Service
|
|
|
|
|
|
|
|
|
|
Marriott Hotels & Resorts
|
|
353
|
357
|
(4)
|
|
142,881
|
143,349
|
(468)
|
|
Renaissance Hotels
|
|
80
|
78
|
2
|
|
29,229
|
28,288
|
941
|
|
Autograph Collection
|
|
17
|
13
|
4
|
|
5,207
|
3,828
|
1,379
|
|
Domestic
Limited-Service
|
|
|
|
|
|
|
|
|
|
Courtyard
|
|
805
|
795
|
10
|
|
113,413
|
111,634
|
1,779
|
|
Fairfield Inn & Suites
|
|
667
|
648
|
19
|
|
60,392
|
58,510
|
1,882
|
|
SpringHill Suites
|
|
285
|
273
|
12
|
|
33,466
|
31,961
|
1,505
|
|
Residence Inn
|
|
597
|
595
|
2
|
|
72,076
|
71,571
|
505
|
|
TownePlace Suites
|
|
200
|
192
|
8
|
|
20,048
|
19,320
|
728
|
|
International
|
|
|
|
|
|
|
|
|
|
Marriott Hotels & Resorts
|
|
202
|
197
|
5
|
|
62,714
|
60,670
|
2,044
|
|
Renaissance Hotels
|
|
74
|
68
|
6
|
|
23,737
|
22,720
|
1,017
|
|
Autograph Collection
|
|
5
|
-
|
5
|
|
548
|
-
|
548
|
|
Courtyard
|
|
108
|
97
|
11
|
|
21,306
|
19,435
|
1,871
|
|
Fairfield Inn & Suites
|
|
13
|
10
|
3
|
|
1,568
|
1,235
|
333
|
|
SpringHill Suites
|
|
2
|
1
|
1
|
|
299
|
124
|
175
|
|
Residence Inn
|
|
20
|
18
|
2
|
|
2,791
|
2,559
|
232
|
|
TownePlace Suites
|
|
1
|
1
|
-
|
|
105
|
105
|
-
|
|
Marriott Executive Apartments
|
|
23
|
23
|
-
|
|
3,700
|
3,775
|
(75)
|
|
Luxury
|
|
|
|
|
|
|
|
|
|
The
Ritz-Carlton - Domestic
|
|
39
|
39
|
-
|
|
11,587
|
11,587
|
-
|
|
The
Ritz-Carlton - International
|
|
39
|
35
|
4
|
|
11,996
|
10,457
|
1,539
|
|
Bulgari Hotels & Resorts
|
|
2
|
2
|
-
|
|
117
|
117
|
-
|
|
Edition
|
|
1
|
1
|
-
|
|
78
|
353
|
(275)
|
|
The
Ritz-Carlton Residential
|
|
32
|
28
|
4
|
|
3,838
|
3,085
|
753
|
|
The
Ritz-Carlton Serviced Apartments
|
|
4
|
3
|
1
|
|
579
|
458
|
121
|
|
Unconsolidated
Joint Ventures
|
|
|
|
|
|
|
|
|
|
AC
Hotels by Marriott
|
|
80
|
-
|
80
|
|
8,371
|
-
|
8,371
|
|
Autograph Collection
|
|
5
|
-
|
5
|
|
350
|
-
|
350
|
|
Timeshare
(2 )
|
|
64
|
71
|
(7)
|
|
12,800
|
12,963
|
(163)
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
3,718
|
3,545
|
173
|
|
643,196
|
618,104
|
25,092
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
Total Lodging Products excludes the 2,166 and 2,043 corporate housing
rental units as of December 30, 2011 and December 31, 2010,
respectively.
|
|
(2)
The methodology used to report the number of timeshare properties and
rooms/suites changed in Q4 2011 as a result of the Timeshare spin-off.
|
|
|
|
A-7
|
|
|
|
|
|
|
|
|
|
|
MARRIOTT
INTERNATIONAL, INC.
KEY
LODGING STATISTICS
Constant
$
|
|
Comparable
Company-Operated International Properties(1)
|
|
|
|
|
|
Four
Months Ended December 31, 2011 and December 31, 2010
|
|
|
|
REVPAR
|
|
Occupancy
|
|
Average
Daily Rate
|
|
Region
|
|
2011
|
vs.
2010
|
|
2011
|
vs.
2010
|
|
2011
|
vs.
2010
|
|
Caribbean
& Latin America
|
|
$128.66
|
10.9%
|
|
69.8%
|
2.1%
|
pts.
|
|
$184.44
|
7.5%
|
|
Europe
|
|
$131.66
|
1.3%
|
|
73.7%
|
-1.6%
|
pts.
|
|
$178.72
|
3.5%
|
|
Middle
East & Africa
|
|
$89.50
|
-8.4%
|
|
62.5%
|
-9.5%
|
pts.
|
|
$143.11
|
5.5%
|
|
Asia
Pacific
|
|
$108.11
|
11.1%
|
|
75.2%
|
4.0%
|
pts.
|
|
$143.78
|
5.3%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Regional
Composite(2)
|
|
$120.51
|
4.2%
|
|
72.6%
|
-0.2%
|
pts.
|
|
$166.01
|
4.5%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
International
Luxury(3)
|
|
$204.50
|
5.5%
|
|
63.7%
|
-1.7%
|
pts.
|
|
$321.28
|
8.4%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
International(4)
|
|
$130.93
|
4.5%
|
|
71.5%
|
-0.4%
|
pts.
|
|
$183.16
|
5.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Worldwide(5
)
|
|
$112.21
|
5.6%
|
|
69.0%
|
1.2%
|
pts.
|
|
$162.69
|
3.7%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comparable
Systemwide International Properties(1)
|
|
|
|
|
|
Four
Months Ended December 31, 2011 and December 31, 2010
|
|
|
|
REVPAR
|
|
Occupancy
|
|
Average
Daily Rate
|
|
Region
|
|
2011
|
vs.
2010
|
|
2011
|
vs.
2010
|
|
2011
|
vs.
2010
|
|
Caribbean
& Latin America
|
|
$107.09
|
9.4%
|
|
66.6%
|
1.3%
|
pts.
|
|
$160.74
|
7.3%
|
|
Europe
|
|
$127.56
|
1.6%
|
|
73.5%
|
-1.2%
|
pts.
|
|
$173.65
|
3.3%
|
|
Middle
East & Africa
|
|
$86.04
|
-8.5%
|
|
61.5%
|
-9.1%
|
pts.
|
|
$139.83
|
5.1%
|
|
Asia
Pacific
|
|
$117.75
|
8.4%
|
|
75.2%
|
3.4%
|
pts.
|
|
$156.56
|
3.4%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Regional
Composite(2)
|
|
$118.25
|
3.9%
|
|
71.9%
|
-0.1%
|
pts.
|
|
$164.44
|
4.1%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
International
Luxury(3 )
|
|
$204.50
|
5.5%
|
|
63.7%
|
-1.7%
|
pts.
|
|
$321.28
|
8.4%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
International(4 )
|
|
$126.88
|
4.1%
|
|
71.1%
|
-0.3%
|
pts.
|
|
$178.49
|
4.5%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Worldwide(5
)
|
|
$91.90
|
5.9%
|
|
67.5%
|
1.6%
|
pts.
|
|
$136.12
|
3.3%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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
United States and Canada, except for Worldwide which includes the
United States.
|
|
(2)
Regional information includes the Marriott Hotels & Resorts,
Renaissance Hotels and Courtyard brands.
|
|
(3)
International Luxury includes The Ritz-Carlton properties outside of
the United States and Canada and Bulgari Hotels & Resorts.
|
|
(4)
Includes Regional Composite and International Luxury.
|
|
(5)
Includes international statistics for the four calendar months ended
December 31, 2011 and December 31, 2010, and the United States
statistics for the sixteen weeks ended December 30, 2011 and December
31, 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-8
|
|
|
|
|
|
|
|
|
|
|
|
|
MARRIOTT
INTERNATIONAL, INC.
KEY
LODGING STATISTICS
Constant
$
|
|
Comparable
Company-Operated International Properties(1)
|
|
|
|
|
|
Twelve
Months Ended December 31, 2011 and December 31, 2010
|
|
|
|
REVPAR
|
|
Occupancy
|
|
Average
Daily Rate
|
|
Region
|
|
2011
|
vs.
2010
|
|
2011
|
vs.
2010
|
|
2011
|
vs.
2010
|
|
Caribbean
& Latin America
|
|
$133.29
|
10.6%
|
|
72.6%
|
2.8%
|
pts.
|
|
$183.64
|
6.4%
|
|
Europe
|
|
$128.21
|
5.0%
|
|
73.2%
|
0.1%
|
pts.
|
|
$175.20
|
4.8%
|
|
Middle
East & Africa
|
|
$83.11
|
-9.3%
|
|
58.8%
|
-11.0%
|
pts.
|
|
$141.22
|
7.6%
|
|
Asia
Pacific
|
|
$100.69
|
14.8%
|
|
73.1%
|
5.6%
|
pts.
|
|
$137.80
|
5.9%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Regional
Composite(2)
|
|
$116.67
|
7.0%
|
|
71.8%
|
1.1%
|
pts.
|
|
$162.58
|
5.4%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
International
Luxury(3)
|
|
$199.53
|
6.2%
|
|
63.8%
|
-0.5%
|
pts.
|
|
$312.52
|
7.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
International(4)
|
|
$126.96
|
6.9%
|
|
70.8%
|
0.9%
|
pts.
|
|
$179.38
|
5.5%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Worldwide(5)
|
|
$111.26
|
6.4%
|
|
70.3%
|
1.5%
|
pts.
|
|
$158.15
|
4.1%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comparable
Systemwide International Properties(1)
|
|
|
|
|
|
Twelve
Months Ended December 31, 2011 and December 31, 2010
|
|
|
|
REVPAR
|
|
Occupancy
|
|
Average
Daily Rate
|
|
Region
|
|
2011
|
vs.
2010
|
|
2011
|
vs.
2010
|
|
2011
|
vs.
2010
|
|
Caribbean
& Latin America
|
|
$113.14
|
9.9%
|
|
69.3%
|
2.3%
|
pts.
|
|
$163.29
|
6.2%
|
|
Europe
|
|
$123.95
|
5.3%
|
|
72.3%
|
0.5%
|
pts.
|
|
$171.34
|
4.6%
|
|
Middle
East & Africa
|
|
$80.55
|
-8.5%
|
|
58.4%
|
-9.7%
|
pts.
|
|
$137.92
|
6.7%
|
|
Asia
Pacific
|
|
$106.97
|
10.3%
|
|
72.6%
|
4.4%
|
pts.
|
|
$147.36
|
3.6%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Regional
Composite(2)
|
|
$114.03
|
6.4%
|
|
70.8%
|
1.1%
|
pts.
|
|
$161.01
|
4.7%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
International
Luxury(3)
|
|
$199.53
|
6.2%
|
|
63.8%
|
-0.5%
|
pts.
|
|
$312.52
|
7.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
International(4)
|
|
$122.59
|
6.3%
|
|
70.1%
|
0.9%
|
pts.
|
|
$174.82
|
4.9%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Worldwide(5)
|
|
$92.69
|
6.4%
|
|
69.6%
|
2.0%
|
pts.
|
|
$133.26
|
3.4%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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
United States and Canada, except for Worldwide which includes the
United States.
|
|
(2)
Regional information includes the Marriott Hotels & Resorts,
Renaissance Hotels and Courtyard brands.
|
|
(3)
International Luxury includes The Ritz-Carlton properties outside of
the United States and Canada and Bulgari Hotels & Resorts.
|
|
(4)
Includes Regional Composite and International Luxury.
|
|
(5)
Includes international statistics for the twelve calendar months ended
December 31, 2011 and December 31, 2010, and the United States
statistics for the fifty-two weeks ended December 30, 2011 and December
31, 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-9
|
|
|
|
|
|
|
|
|
|
|
|
|
MARRIOTT
INTERNATIONAL, INC.
KEY
LODGING STATISTICS
|
|
Comparable
Company-Operated North American Properties(1)
|
|
|
|
|
|
Sixteen
Weeks Ended December 30, 2011 and December 31, 2010
|
|
|
|
REVPAR
|
|
Occupancy
|
|
Average
Daily Rate
|
|
Brand
|
|
2011
|
vs.
2010
|
|
2011
|
vs.
2010
|
|
2011
|
vs.
2010
|
|
Marriott
Hotels & Resorts
|
|
$116.45
|
5.0%
|
|
68.9%
|
1.7%
|
pts.
|
|
$169.06
|
2.4%
|
|
Renaissance
Hotels
|
|
$112.91
|
6.6%
|
|
68.5%
|
3.1%
|
pts.
|
|
$164.80
|
1.7%
|
|
Composite
North American Full-Service(2)
|
|
$115.79
|
5.3%
|
|
68.8%
|
2.0%
|
pts.
|
|
$168.27
|
2.3%
|
|
The
Ritz-Carlton(3)
|
|
$203.45
|
9.3%
|
|
66.0%
|
1.1%
|
pts.
|
|
$308.44
|
7.5%
|
|
Composite
North American Full-Service & Luxury(4)
|
|
$126.20
|
6.0%
|
|
68.5%
|
1.9%
|
pts.
|
|
$184.31
|
3.2%
|
|
Residence
Inn
|
|
$84.60
|
4.6%
|
|
72.3%
|
0.7%
|
pts.
|
|
$117.02
|
3.6%
|
|
Courtyard
|
|
$73.08
|
7.5%
|
|
64.8%
|
2.4%
|
pts.
|
|
$112.85
|
3.5%
|
|
TownePlace
Suites
|
|
$53.59
|
14.3%
|
|
70.4%
|
5.3%
|
pts.
|
|
$76.10
|
5.6%
|
|
SpringHill
Suites
|
|
$63.60
|
5.5%
|
|
64.7%
|
1.4%
|
pts.
|
|
$98.29
|
3.2%
|
|
Composite
North American Limited-Service(5)
|
|
$74.53
|
6.6%
|
|
67.2%
|
1.9%
|
pts.
|
|
$110.90
|
3.6%
|
|
Composite
- All(6)
|
|
$104.52
|
6.2%
|
|
67.9%
|
1.9%
|
pts.
|
|
$153.84
|
3.2%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comparable
Systemwide North American Properties(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sixteen
Weeks Ended December 30, 2011 and December 31, 2010
|
|
|
|
REVPAR
|
|
Occupancy
|
|
Average
Daily Rate
|
|
Brand
|
|
2011
|
vs.
2010
|
|
2011
|
vs.
2010
|
|
2011
|
vs.
2010
|
|
Marriott
Hotels & Resorts
|
|
$100.36
|
5.0%
|
|
65.7%
|
1.4%
|
pts.
|
|
$152.67
|
2.8%
|
|
Renaissance
Hotels
|
|
$100.60
|
6.2%
|
|
67.2%
|
2.1%
|
pts.
|
|
$149.60
|
2.8%
|
|
Composite
North American Full-Service(2)
|
|
$100.41
|
5.2%
|
|
66.0%
|
1.5%
|
pts.
|
|
$152.11
|
2.8%
|
|
The
Ritz-Carlton(3)
|
|
$203.45
|
9.3%
|
|
66.0%
|
1.1%
|
pts.
|
|
$308.44
|
7.5%
|
|
Composite
North American Full-Service & Luxury(4)
|
|
$107.71
|
5.8%
|
|
66.0%
|
1.5%
|
pts.
|
|
$163.18
|
3.4%
|
|
Residence
Inn
|
|
$85.20
|
5.2%
|
|
73.9%
|
1.3%
|
pts.
|
|
$115.35
|
3.3%
|
|
Courtyard
|
|
$74.39
|
7.2%
|
|
65.4%
|
2.4%
|
pts.
|
|
$113.71
|
3.3%
|
|
Fairfield
Inn & Suites
|
|
$56.65
|
9.5%
|
|
63.0%
|
3.1%
|
pts.
|
|
$89.91
|
4.2%
|
|
TownePlace
Suites
|
|
$57.78
|
8.9%
|
|
69.0%
|
2.5%
|
pts.
|
|
$83.80
|
4.9%
|
|
SpringHill
Suites
|
|
$64.36
|
7.1%
|
|
65.5%
|
2.7%
|
pts.
|
|
$98.20
|
2.6%
|
|
Composite
North American Limited-Service(5)
|
|
$71.48
|
7.0%
|
|
67.3%
|
2.3%
|
pts.
|
|
$106.21
|
3.4%
|
|
Composite
- All(6)
|
|
$85.04
|
6.4%
|
|
66.8%
|
2.0%
|
pts.
|
|
$127.29
|
3.2%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
Statistics include only properties located in the 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-10
|
|
|
|
|
|
|
|
|
|
|
|
|
MARRIOTT
INTERNATIONAL, INC.
KEY
LODGING STATISTICS
|
|
Comparable
Company-Operated North American Properties(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fifty-two
Weeks Ended December 30, 2011 and December 31, 2010
|
|
|
|
REVPAR
|
|
Occupancy
|
|
Average
Daily Rate
|
|
Brand
|
|
2011
|
vs.
2010
|
|
2011
|
vs.
2010
|
|
2011
|
vs.
2010
|
|
Marriott
Hotels & Resorts
|
|
$116.45
|
4.6%
|
|
71.0%
|
0.8%
|
pts.
|
|
$164.08
|
3.4%
|
|
Renaissance
Hotels
|
|
$112.55
|
6.7%
|
|
69.7%
|
2.3%
|
pts.
|
|
$161.40
|
3.1%
|
|
Composite
North American Full-Service(2)
|
|
$115.72
|
5.0%
|
|
70.7%
|
1.1%
|
pts.
|
|
$163.59
|
3.3%
|
|
The
Ritz-Carlton(3)
|
|
$209.11
|
10.2%
|
|
69.2%
|
2.4%
|
pts.
|
|
$302.31
|
6.3%
|
|
Composite
North American Full-Service & Luxury(4)
|
|
$126.07
|
5.9%
|
|
70.6%
|
1.3%
|
pts.
|
|
$178.65
|
4.0%
|
|
Residence
Inn
|
|
$88.09
|
4.0%
|
|
75.1%
|
1.2%
|
pts.
|
|
$117.25
|
2.4%
|
|
Courtyard
|
|
$74.90
|
7.7%
|
|
67.2%
|
2.8%
|
pts.
|
|
$111.42
|
3.2%
|
|
Fairfield
Inn & Suites
|
|
$71.04
|
10.8%
|
|
79.0%
|
0.5%
|
pts.
|
|
$89.94
|
10.1%
|
|
TownePlace
Suites
|
|
$54.32
|
10.7%
|
|
71.9%
|
4.8%
|
pts.
|
|
$75.52
|
3.3%
|
|
SpringHill
Suites
|
|
$66.69
|
8.3%
|
|
66.9%
|
2.5%
|
pts.
|
|
$99.71
|
4.2%
|
|
Composite
North American Limited-Service(5)
|
|
$76.86
|
6.7%
|
|
69.7%
|
2.4%
|
pts.
|
|
$110.34
|
3.0%
|
|
Composite
- All(6)
|
|
$105.28
|
6.2%
|
|
70.2%
|
1.8%
|
pts.
|
|
$150.00
|
3.5%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comparable
Systemwide North American Properties(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fifty-two
Weeks Ended December 30, 2011 and December 31, 2010
|
|
|
|
REVPAR
|
|
Occupancy
|
|
Average
Daily Rate
|
|
Brand
|
|
2011
|
vs.
2010
|
|
2011
|
vs.
2010
|
|
2011
|
vs.
2010
|
|
Marriott
Hotels & Resorts
|
|
$102.28
|
5.0%
|
|
68.2%
|
1.1%
|
pts.
|
|
$149.94
|
3.3%
|
|
Renaissance
Hotels
|
|
$101.24
|
6.3%
|
|
69.0%
|
1.9%
|
pts.
|
|
$146.74
|
3.3%
|
|
Composite
North American Full-Service(2)
|
|
$102.10
|
5.2%
|
|
68.4%
|
1.3%
|
pts.
|
|
$149.36
|
3.3%
|
|
The
Ritz-Carlton(3)
|
|
$209.11
|
10.2%
|
|
69.2%
|
2.4%
|
pts.
|
|
$302.31
|
6.3%
|
|
Composite
North American Full-Service & Luxury(4)
|
|
$109.14
|
5.8%
|
|
68.4%
|
1.3%
|
pts.
|
|
$159.53
|
3.7%
|
|
Residence
Inn
|
|
$88.47
|
5.2%
|
|
76.7%
|
1.7%
|
pts.
|
|
$115.41
|
2.9%
|
|
Courtyard
|
|
$77.03
|
7.0%
|
|
68.1%
|
2.5%
|
pts.
|
|
$113.19
|
3.0%
|
|
Fairfield
Inn & Suites
|
|
$58.92
|
9.1%
|
|
65.8%
|
3.1%
|
pts.
|
|
$89.57
|
3.9%
|
|
TownePlace
Suites
|
|
$60.15
|
9.3%
|
|
72.1%
|
3.7%
|
pts.
|
|
$83.46
|
3.7%
|
|
SpringHill
Suites
|
|
$67.98
|
8.2%
|
|
68.5%
|
3.6%
|
pts.
|
|
$99.21
|
2.5%
|
|
Composite
North American Limited-Service(5)
|
|
$74.29
|
7.0%
|
|
70.1%
|
2.6%
|
pts.
|
|
$106.02
|
3.0%
|
|
Composite
- All(6)
|
|
$87.28
|
6.5%
|
|
69.5%
|
2.2%
|
pts.
|
|
$125.67
|
3.2%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
Statistics include only properties located in the United States.
|
|
|
|
|
|
|
|
|
|
|
|
(2)
Includes the Marriott Hotels & Resorts and Renaissance Hotels
brands.
|
|
(3)
Statistics for The Ritz-Carlton are for January through December.
|
|
(4)
Includes the Marriott Hotels & Resorts, Renaissance Hotels and The
Ritz-Carlton brands.
|
|
(5)
Includes the Residence Inn, Courtyard, Fairfield Inn & Suites,
TownePlace Suites and SpringHill Suites brands.
|
|
(6)
Includes the Marriott Hotels & Resorts, Renaissance Hotels, The
Ritz-Carlton, Residence Inn, Courtyard, Fairfield Inn & Suites,
TownePlace Suites, and SpringHill Suites brands.
|
|
|
|
A-11
|
|
|
|
|
|
|
|
|
|
|
|
|
MARRIOTT
INTERNATIONAL, INC.
|
|
NON-GAAP
FINANCIAL MEASURES
|
|
EBITDA
AND ADJUSTED EBITDA
|
|
FOURTH
QUARTER 2011 AND 2010
|
|
($ in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As
Reported
16 Weeks Ended
December 30, 2011
|
|
Timeshare
Spin-off
Adjustments
16 Weeks Ended
December 30, 2011
|
|
|
|
As Adjusted
16 Weeks Ended
December 30, 2011 **
|
|
Net
Income
|
$ 141
|
|
$ 18
|
|
|
|
$ 159
|
|
Interest
expense
|
47
|
|
(5)
|
|
|
|
42
|
|
Tax
provision (benefit)
|
61
|
|
(4)
|
|
|
|
57
|
|
Depreciation
and amortization
|
52
|
|
(5)
|
|
|
|
47
|
|
Less:
Depreciation reimbursed by third-party owners
|
(4)
|
|
-
|
|
|
|
(4)
|
|
Interest
expense from unconsolidated joint ventures
|
5
|
|
-
|
|
|
|
5
|
|
Depreciation
and amortization from unconsolidated joint ventures
|
10
|
|
-
|
|
|
|
10
|
|
EBITDA
**
|
$ 312
|
|
$ 4
|
|
|
|
$ 316
|
|
|
|
|
|
|
|
|
|
|
Increase
over 2010 Adjusted EBITDA
|
|
|
|
|
|
|
12%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As
Reported
16 Weeks Ended
December 31, 2010
|
|
Timeshare
Spin-off
Adjustments
16 Weeks Ended
December 31, 2010
|
|
Other
Charges
16 Weeks Ended
December 31, 2010
|
|
As
Adjusted
16 Weeks Ended
December 31, 2010 **
|
|
Net
Income (loss)
|
$ 173
|
|
$ (13)
|
|
$ (25)
|
|
$ 135
|
|
Interest
expense
|
50
|
|
(11)
|
|
-
|
|
39
|
|
Tax
(benefit) provision
|
(63)
|
|
(9)
|
|
123
|
|
51
|
|
Depreciation
and amortization
|
57
|
|
(11)
|
|
-
|
|
46
|
|
Less:
Depreciation reimbursed by third-party owners
|
(3)
|
|
-
|
|
-
|
|
(3)
|
|
Interest
expense from unconsolidated joint ventures
|
3
|
|
3
|
|
-
|
|
6
|
|
Depreciation
and amortization from unconsolidated joint ventures
|
8
|
|
-
|
|
-
|
|
8
|
|
EBITDA
**
|
$ 225
|
|
$ (41)
|
|
$ 98
|
|
$ 282
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
**
Denotes non-GAAP financial measures. Please see pages A-21 and A-22 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
|
|
EBITDA
AND ADJUSTED EBITDA
|
|
FULL
YEAR 2011 AND 2010
|
|
($ in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As
Reported
52 Weeks Ended
December 30, 2011
|
|
Timeshare
Spin-off
Adjustments
52 Weeks Ended
December 30, 2011
|
|
Other
Charges
52 Weeks Ended
December 30, 2011
|
|
As
Adjusted
52 Weeks Ended
December 30, 2011 **
|
|
Net
Income
|
$ 198
|
|
$ 260
|
|
$ 17
|
|
$ 475
|
|
Interest
expense
|
164
|
|
(29)
|
|
-
|
|
135
|
|
Tax
provision
|
158
|
|
40
|
|
11
|
|
209
|
|
Depreciation
and amortization
|
168
|
|
(28)
|
|
-
|
|
140
|
|
Less:
Depreciation reimbursed by third-party owners
|
(15)
|
|
-
|
|
-
|
|
(15)
|
|
Interest
expense from unconsolidated joint ventures
|
18
|
|
-
|
|
-
|
|
18
|
|
Depreciation
and amortization from unconsolidated joint ventures
|
30
|
|
-
|
|
-
|
|
30
|
|
EBITDA
**
|
$ 721
|
|
$ 243
|
|
$ 28
|
|
$ 992
|
|
|
|
|
|
|
|
|
|
|
Increase
over 2010 Adjusted EBITDA
|
|
|
|
|
|
|
12%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As
Reported
52 Weeks Ended
December 31, 2010
|
|
Timeshare
Spin-off
Adjustments
52 Weeks Ended
December 31, 2010
|
|
Other
Charges
52 Weeks Ended
December 31, 2010
|
|
As
Adjusted
52 Weeks Ended
December 31, 2010 **
|
|
Net
Income (loss)
|
$ 458
|
|
$ (47)
|
|
$ (25)
|
|
$ 386
|
|
Interest
expense
|
180
|
|
(43)
|
|
-
|
|
137
|
|
Tax
provision (benefit)
|
93
|
|
(29)
|
|
123
|
|
187
|
|
Depreciation
and amortization
|
178
|
|
(35)
|
|
-
|
|
143
|
|
Less:
Depreciation reimbursed by third-party owners
|
(11)
|
|
-
|
|
-
|
|
(11)
|
|
Interest
expense from unconsolidated joint ventures
|
19
|
|
(3)
|
|
-
|
|
16
|
|
Depreciation
and amortization from unconsolidated joint ventures
|
27
|
|
-
|
|
-
|
|
27
|
|
EBITDA
**
|
$ 944
|
|
$ (157)
|
|
$ 98
|
|
$ 885
|
|
|
|
|
|
|
|
|
|
|
**
Denotes non-GAAP financial measures. Please see pages A-21 and A-22 for
additional information about our reasons for providing these
alternative financial measures and the limitations on their use.
|
|
|
|
A-13
|
|
|
|
|
|
|
|
|
|
MARRIOTT
INTERNATIONAL, INC.
|
|
NON-GAAP
FINANCIAL MEASURES
|
|
EBITDA
AND ADJUSTED EBITDA
|
|
FIRST
QUARTER 2011 AND 2010
|
|
($ in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As
Reported
12 Weeks Ended
March 25, 2011
|
|
Timeshare
Spin-off
Adjustments
12 Weeks Ended
March 25, 2011
|
|
As
Adjusted
12 Weeks Ended
March 25, 2011 **
|
|
Net
Income (loss)
|
$ 101
|
|
$ (13)
|
|
$ 88
|
|
Interest
expense
|
41
|
|
(9)
|
|
32
|
|
Tax
provision (benefit)
|
51
|
|
(8)
|
|
43
|
|
Depreciation
and amortization
|
35
|
|
(7)
|
|
28
|
|
Less:
Depreciation reimbursed by third-party owners
|
(4)
|
|
-
|
|
(4)
|
|
Interest
expense from unconsolidated joint ventures
|
4
|
|
-
|
|
4
|
|
Depreciation
and amortization from unconsolidated joint ventures
|
6
|
|
-
|
|
6
|
|
EBITDA
**
|
$ 234
|
|
$ (37)
|
|
$ 197
|
|
|
|
|
|
|
|
|
Increase
over 2010 EBITDA
|
|
|
|
|
5%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As
Reported
12 Weeks Ended
March 26, 2010
|
|
Timeshare
Spin-off
Adjustments
12 Weeks Ended
March 26, 2010
|
|
As
Adjusted
12 Weeks Ended
March 26, 2010 **
|
|
Net
Income (loss)
|
$ 83
|
|
$ (9)
|
|
$ 74
|
|
Interest
expense
|
45
|
|
(11)
|
|
34
|
|
Tax
provision (benefit)
|
46
|
|
(4)
|
|
42
|
|
Depreciation
and amortization
|
39
|
|
(8)
|
|
31
|
|
Less:
Depreciation reimbursed by third-party owners
|
(3)
|
|
-
|
|
(3)
|
|
Interest
expense from unconsolidated joint ventures
|
5
|
|
(2)
|
|
3
|
|
Depreciation
and amortization from unconsolidated joint ventures
|
6
|
|
-
|
|
6
|
|
EBITDA
**
|
$ 221
|
|
$ (34)
|
|
$ 187
|
|
|
|
|
|
|
|
|
**
Denotes non-GAAP financial measures. Please see pages A-21 and A-22 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
|
|
SECOND
QUARTER 2011 AND 2010
|
|
($ in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As
Reported
12 Weeks Ended
June 17, 2011
|
|
Timeshare
Spin-off
Adjustments
12 Weeks Ended
June 17, 2011
|
|
As
Adjusted
12 Weeks Ended
June 17, 2011 **
|
|
Net
Income (loss)
|
$ 135
|
|
$ (9)
|
|
$ 126
|
|
Interest
expense
|
37
|
|
(8)
|
|
29
|
|
Tax
provision (benefit)
|
66
|
|
(5)
|
|
61
|
|
Depreciation
and amortization
|
41
|
|
(9)
|
|
32
|
|
Less:
Depreciation reimbursed by third-party owners
|
(3)
|
|
-
|
|
(3)
|
|
Interest
expense from unconsolidated joint ventures
|
4
|
|
-
|
|
4
|
|
Depreciation
and amortization from unconsolidated joint ventures
|
7
|
|
-
|
|
7
|
|
EBITDA
**
|
$ 287
|
|
$ (31)
|
|
$ 256
|
|
|
|
|
|
|
|
|
Increase
over 2010 EBITDA
|
|
|
|
|
7%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As
Reported
12 Weeks Ended
June 18, 2010
|
|
Timeshare
Spin-off
Adjustments
12 Weeks Ended
June 18, 2010
|
|
As
Adjusted
12 Weeks Ended
June 18, 2010 **
|
|
Net
Income (loss)
|
$ 119
|
|
$ (10)
|
|
$ 109
|
|
Interest
expense
|
44
|
|
(11)
|
|
33
|
|
Tax
provision (benefit)
|
65
|
|
(8)
|
|
57
|
|
Depreciation
and amortization
|
42
|
|
(8)
|
|
34
|
|
Less:
Depreciation reimbursed by third-party owners
|
(3)
|
|
-
|
|
(3)
|
|
Interest
expense from unconsolidated joint ventures
|
5
|
|
(2)
|
|
3
|
|
Depreciation
and amortization from unconsolidated joint ventures
|
6
|
|
-
|
|
6
|
|
EBITDA
**
|
$ 278
|
|
$ (39)
|
|
$ 239
|
|
|
|
|
|
|
|
|
**
Denotes non-GAAP financial measures. Please see pages A-21 and A-22 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
|
|
THIRD
QUARTER 2011 AND 2010
|
|
($ in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As
Reported
12 Weeks Ended
September 9, 2011
|
|
Timeshare
Spin-off
Adjustments
12 Weeks Ended
September 9, 2011
|
|
Other
Charges
12 Weeks Ended
September 9, 2011
|
|
As
Adjusted
12 Weeks Ended
September 9, 2011 **
|
|
Net
(Loss) income
|
$ (179)
|
|
$ 264
|
|
$ 17
|
|
$ 102
|
|
Interest
expense
|
39
|
|
(7)
|
|
-
|
|
32
|
|
Tax
(benefit) provision
|
(20)
|
|
57
|
|
11
|
|
48
|
|
Depreciation
and amortization
|
40
|
|
(7)
|
|
-
|
|
33
|
|
Less:
Depreciation reimbursed by third-party owners
|
(4)
|
|
-
|
|
-
|
|
(4)
|
|
Interest
expense from unconsolidated joint ventures
|
5
|
|
-
|
|
-
|
|
5
|
|
Depreciation
and amortization from unconsolidated joint ventures
|
7
|
|
-
|
|
-
|
|
7
|
|
EBITDA
**
|
$ (112)
|
|
$ 307
|
|
$ 28
|
|
$ 223
|
|
|
|
|
|
|
|
|
|
|
Increase
over 2010 EBITDA
|
|
|
|
|
|
|
26%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As
Reported
12 Weeks Ended
September 10, 2010
|
|
Timeshare
Spin-off
Adjustments
12 Weeks Ended
September 10, 2010
|
|
|
|
As
Adjusted
12 Weeks Ended
September 10, 2010 **
|
|
Net
Income (loss)
|
$ 83
|
|
$ (15)
|
|
|
|
$ 68
|
|
Interest
expense
|
41
|
|
(10)
|
|
|
|
31
|
|
Tax
provision (benefit)
|
45
|
|
(8)
|
|
|
|
37
|
|
Depreciation
and amortization
|
40
|
|
(8)
|
|
|
|
32
|
|
Less:
Depreciation reimbursed by third-party owners
|
(2)
|
|
-
|
|
|
|
(2)
|
|
Interest
expense from unconsolidated joint ventures
|
6
|
|
(2)
|
|
|
|
4
|
|
Depreciation
and amortization from unconsolidated joint ventures
|
7
|
|
-
|
|
|
|
7
|
|
EBITDA
**
|
$ 220
|
|
$ (43)
|
|
|
|
$ 177
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
**
Denotes non-GAAP financial measures. Please see pages A-21 and A-22 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
|
|
FORECASTED
2012
|
|
($ in
millions)
|
|
|
|
|
|
|
|
|
|
Range
|
|
|
|
|
Estimated
EBITDA
Full Year 2012
|
|
As
Adjusted
52 Weeks Ended
December 30, 2011 **
|
|
Net
Income
|
$ 516
|
|
$ 556
|
|
$ 475
|
|
Interest
expense
|
135
|
|
135
|
|
135
|
|
Tax
provision
|
254
|
|
274
|
|
209
|
|
Depreciation
and amortization
|
145
|
|
145
|
|
140
|
|
Less:
Depreciation reimbursed by third-party owners
|
(15)
|
|
(15)
|
|
(15)
|
|
Interest
expense from unconsolidated joint ventures
|
20
|
|
20
|
|
18
|
|
Depreciation
and amortization from unconsolidated joint ventures
|
35
|
|
35
|
|
30
|
|
EBITDA
**
|
$ 1,090
|
|
$ 1,150
|
|
$ 992
|
|
|
|
|
|
|
|
|
Increase
over 2011 Adjusted EBITDA
|
10%
|
|
16%
|
|
|
|
|
|
|
|
|
|
|
**
Denotes non-GAAP financial measures. Please see pages A-21 and A-22 for
additional information about our reasons for providing these
alternative financial measures and the limitations on their use.
|
|
|
|
A-17
|
|
|
|
|
|
|
|
MARRIOTT
INTERNATIONAL, INC.
|
|
NON-GAAP
FINANCIAL MEASURES
|
|
FOURTH
QUARTER 2011 GUIDANCE (PREVIOUSLY PROVIDED ON OCTOBER 5, 2011)
|
|
ADJUSTED
FOR THE TIMESHARE SPIN-OFF
|
|
($ in
millions except per share amounts)
|
|
|
|
|
|
|
|
|
|
Range
|
|
|
|
Estimated
4th Quarter 2011 **, (1)
|
|
|
|
|
|
|
|
Guided
Timeshare segment results (as of October 5, 2011)
|
|
$ (45)
|
|
$ (50)
|
|
Spin-off
adjustments
|
|
19
|
|
19
|
|
|
|
(26)
|
|
(31)
|
|
Benefit
for income taxes
|
|
9
|
|
10
|
|
After-tax
guided Timeshare segment results (as of October 5, 2011) and
spin-off adjustments
|
|
$ (17)
|
|
$ (21)
|
|
|
|
|
|
|
|
Diluted
EPS Guidance (as of October 5, 2011)
|
|
$ 0.45
|
|
$ 0.50
|
|
Diluted
EPS impact of guided Timeshare segment results (as of October 5, 2011)
and spin-off adjustments
|
|
(0.05)
|
|
(0.06)
|
|
Adjusted
diluted EPS guidance **
|
|
$ 0.40
|
|
$ 0.44
|
|
|
|
|
|
|
|
Diluted
Shares
|
|
345.5
|
|
345.5
|
|
|
|
|
|
|
|
**
Denotes non-GAAP financial measures. Please see pages A-21 and A-22 for
additional information about our reasons for providing these
alternative financial measures and the limitations on their use.
|
|
|
|
(1)
The fourth quarter 2011 guidance (previously provided on October 5,
2011) adjusted for the impact of the Timeshare spin-off is presented as
if the Timeshare spin-off had occurred on January 2, 2010.
|
|
|
|
A-18
|
|
|
|
|
|
|
MARRIOTT
INTERNATIONAL, INC.
|
|
NON-GAAP
FINANCIAL MEASURES
|
|
ADJUSTED
PRETAX MARGIN EXCLUDING ADJUSTED REIMBURSED COSTS
|
|
FOURTH
QUARTER 2011 AND 2010
|
|
($ in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fourth
Quarter
2011
|
|
Fourth
Quarter
2010
|
|
Income
before income taxes as reported
|
$ 202
|
|
$ 110
|
|
Other
charges and Timeshare spin-off adjustments
|
14
|
|
76
|
|
Income
before income taxes, as adjusted **
|
$ 216
|
|
$ 186
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
revenues as reported
|
$ 3,693
|
|
$ 3,642
|
|
Other
charges and Timeshare spin-off adjustments
|
(292)
|
|
(448)
|
|
Total
revenues, as adjusted **
|
3,401
|
|
3,194
|
|
Less:
adjusted cost reimbursements **
|
(2,625)
|
|
(2,461)
|
|
Total
revenues as adjusted and excluding cost reimbursements **
|
$ 776
|
|
$ 733
|
|
|
|
|
|
|
|
Adjusted
pretax margin, excluding cost reimbursements **
|
27.8%
|
|
25.4%
|
|
|
|
|
|
|
|
**
Denotes
non-GAAP financial measures. Please see pages A-21 and A-22 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
|
|
ADJUSTED
2007 EPS EXCLUDING THE TIMESHARE SEGMENT,
|
|
INCLUDING
ESTIMATED TIMESHARE LICENSE FEES,
|
|
AND
EXCLUDING THE ESOP CHARGE
|
|
($ in
millions except per share amounts)
|
|
|
|
|
|
|
|
Full
Year
2007
|
|
Impact
of removal of Timeshare segment results as reported
|
|
$ (306)
|
|
License
fees
|
|
78
|
|
Other
corporate allocations
|
|
(13)
|
|
|
|
(241)
|
|
Benefit
for income taxes
|
|
93
|
|
INCOME
IMPACT OF TIMESHARE SPIN-OFF ADJUSTMENTS
|
|
$ (148)
|
|
|
|
|
|
DILUTED
EPS FROM CONTINUING OPERATIONS AS REPORTED
|
|
$ 1.73
|
|
Diluted
EPS ESOP Charge Impact
|
|
0.14
|
|
DILUTED
EPS FROM CONTINUING OPERATIONS EXCLUDING ESOP IMPACT **
|
|
1.87
|
|
Diluted
EPS Impact of income impact of Timeshare spin-off adjustments
|
|
(0.37)
|
|
|
|
|
|
DILUTED
EPS FROM CONTINUING OPERATIONS AS ADJUSTED **
|
|
$ 1.50
|
|
|
|
|
|
Diluted
Shares
|
|
401.4
|
|
|
|
|
|
**
Denotes non-GAAP financial measures. Please see pages A-21 and A-22 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
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 other companies report, and as a result, the
non-GAAP measures we report may not be comparable to those reported by
others.
Adjusted Measures that Reflect the Timeshare Spin-off as if
it had Occurred on the First Day of 2011, 2010 or the First Day of
2007, as applicable ("Timeshare Spin-off Adjustments"). On November 21, 2011 we completed a spin-off of
our timeshare operations and timeshare development business through a
special tax-free dividend to our shareholders of all of the issued and
outstanding common stock of our wholly owned subsidiary Marriott
Vacations Worldwide Corporation ("MVW").
As of the spin-off date, Marriott no longer beneficially owns
any shares of MVW common stock and does not for periods after the
spin-off date consolidate MVW's financial results as part of Marriott's
financial reporting. However, because of Marriott's significant
continuing involvement in MVW future operations (by virtue of the
license and other agreements between Marriott and MVW), we continue to
include our former Timeshare segment's historical financial results for
periods before the spin-off date in our historical financial results as
a component of continuing operations. Under the license agreements we
receive license fees consisting of a fixed annual fee of $50 million (subject to a periodic inflation
adjustment), plus two percent of the gross sales price paid to MVW for
initial developer sales of interests in vacation ownership units and
residential real estate units and one percent of the gross sales price
paid to MVW for resales of interests in vacation ownership units and
residential real estate units, in each case that are identified with or
use the Marriott or Ritz-Carlton marks.
In order to perform year-over-year comparisons on a comparable
basis, management evaluates non-GAAP measures that, for periods prior
to the spin-off date and for guidance that was provided on October 5, 2011 for the 2011 fourth quarter,
assume the spin-off had occurred on the first day of 2011, 2010, or
2007, as applicable. The Timeshare Spin-off Adjustments remove the
results of our former Timeshare segment, assume payment by MVW of
estimated license fees of $60 million
for 2011, $64 million for 2010, and $78 million for 2007 and remove the
unallocated spin-off transaction costs of $34
million we incurred for full year 2011. We have also included
certain corporate items not previously allocated to our former
Timeshare segment in the Timeshare Spin-off Adjustments.
We provide adjusted measures that reflect Timeshare Spin-off
Adjustments for illustrative and informational purposes only. These
adjusted measures are not necessarily indicative of, and do not purport
to represent, what our operating results would have been had the
spin-off actually occurred on the first day of 2011, 2010, or 2007, as
applicable. This information also does not reflect certain financial
and operating benefits we expect to realize as a result of the
spin-off. For additional information on the nature of the Timeshare
Spin-off Adjustments, see the Form 8-K we filed with the Securities and
Exchange Commission on November 21, 2011
upon completion of the spin-off.
Adjusted Measures That Exclude Other Charges and Certain
Tax items. Management evaluates non-GAAP measures that exclude
certain 2011 charges, certain 2010 charges and tax items, and certain
2007 charges because those non-GAAP measures allow for
period-over-period comparisons of our on-going core operations before
the impact of 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.
2011 Other Charges. We recorded charges of $28 million in the 2011 third quarter, which
included an $18 million
other-than-temporary impairment of an investment in marketable
securities (not allocated to any of our segments), and a $10 million charge related to the impairment
of deferred contract acquisition costs and an accounts receivable
reserve, both of which were associated with a Luxury segment property
whose owner filed for bankruptcy.
2010 Other Charges and Certain Tax Items. We recorded
pre-tax charges of $98 million in the
2010 fourth quarter in the "General, administrative and other" caption
of our Income Statements. The charges included an $84 million impairment charge associated with
a portion of the development costs of an internally developed software
asset, which we elected to absorb rather than recovering from owners,
and a $14 million impairment charge
associated with the anticipated disposition of a land parcel. The $14 million charge impacted our North American
Limited-Service segment and the $84 million
charge was not allocated to any of our segments.
A-21
MARRIOTT INTERNATIONAL, INC.
NON-GAAP FINANCIAL MEASURES (cont.)
Certain tax items reflect the tax impact of the $98 million in pre-tax charges described in
the preceding paragraph as well as an $85
million decrease in tax expense we recorded in the 2010 fourth
quarter for 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 was due to the release of previously established
tax liabilities for the treatment of funds received from certain
non-U.S. subsidiaries. We do not allocate taxes to segments.
2007 Employee Stock Ownership ("ESOP") Settlement. We
recorded an after-tax charge of $54 million
in the second quarter of 2007 related to the 2007 settlement of issues
raised during the IRS' and Department of Labor's examination of the
ESOP feature of our Employees' Profit Sharing, Retirement and Savings
Plan and Trust. The charge reflected $35 million
of excise taxes (impacting general, administrative, and other
expenses), $13 million of interest
expense on those excise taxes and $6 million
of income tax expense primarily reflecting additional interest.
Earnings Before Interest Expense, Taxes, Depreciation and
Amortization ("EBITDA") is a financial measure that is not
prescribed or authorized by United States
generally accepted accounting principles ("GAAP"), reflects earnings
excluding the impact of interest expense, provision for income taxes,
and depreciation and amortization. We consider 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.
We also evaluate Adjusted EBITDA, another non-GAAP financial
measure, as an indicator of operating performance. Our Adjusted EBITDA
reflects the following items, each of which we describe more fully
above: (1) Timeshare Spin-off Adjustments; (2) an adjustment for $28 million of other charges for 2011; and (3)
an adjustment for $98 million of other
charges for 2010. We use Adjusted EBITDA to make period-over-period
comparisons of our ongoing core operations before material charges and
to facilitate comparing results from our ongoing operations before
material charges with those of other lodging companies.
EBITDA and Adjusted EBITDA have limitations and should not be
considered in isolation or as substitutes for performance measures
calculated in accordance with GAAP. Both of these non-GAAP measures
exclude certain cash expenses that we are obligated to make. In
addition, other companies in our industry may calculate EBITDA and
Adjusted EBITDA differently than we do or may not calculate them at
all, limiting EBITDA's and Adjusted EBITDA's usefulness as comparative
measures.
Adjusted Pretax Margin Excluding Adjusted Cost
Reimbursements. Cost reimbursements revenue represents
reimbursements of costs incurred on behalf of managed and franchised
properties and relates, predominantly, to payroll costs at managed
properties where we are the employer. As we record cost reimbursements
based upon costs incurred with no added markup, this revenue and
related expense has no impact on either our operating income or net
income because cost reimbursements revenue net of reimbursed costs
expense is zero. We consider total revenues as adjusted for Timeshare
Spin-off Adjustments and income before income taxes as adjusted for
Timeshare Spin-off Adjustments and Other Charges to be meaningful
metrics for the reasons noted above. In calculating adjusted pretax
margin we consider total revenues as adjusted to further exclude cost
reimbursements and therefore, adjusted pretax margin excluding cost
reimbursements to be meaningful metrics as they represent that portion
of revenue and pretax margin that impacts operating income and net
income.
A-22
|