Spreadsheet: 4f325262-9284-47c0-8f65-aaffa375d458
Sheet: Sheet1

MARRIOTT INTERNATIONAL, INC. | Unnamed: 1 | Unnamed: 2 | Unnamed: 3 | Unnamed: 4 | Unnamed: 5 | Unnamed: 6 | Unnamed: 7
CONSOLIDATED STATEMENT OF INCOME
(in millions, except per share amounts)
 |  | Twelve Weeks Ended |  |  |  |  | Percent
 |  | March 23, 2007 |  |  | March 24, 2006 |  | Better/ (Worse)
REVENUES
Base management fees |  | 134 |  |  | 127 |  | 5.511811023622047
Franchise fees |  | 91 |  |  | 82 |  | 10.97560975609756
Incentive management fees |  | 71 |  |  | 59 |  | 20.33898305084746
Owned, leased, corporate housing and other revenue 1 |  | 250 |  |  | 254 |  | -1.574803149606299
Timeshare sales and services 2 |  | 369 |  |  | 306 |  | 20.58823529411764
Cost reimbursements 3 |  | 1921 |  |  | 1820 |  | 5.549450549450549
Synthetic fuel |  | 68 |  |  | 57 |  | 19.29824561403509
Total Revenues |  | 2904 |  |  | 2705 |  | 7.356746765249538
OPERATING COSTS AND EXPENSES
Owned, leased and corporate housing - direct 4 |  | 219 |  |  | 208 |  | -5.288461538461538
Timeshare - direct |  | 312 |  |  | 240 |  | -30
Reimbursed costs |  | 1921 |  |  | 1820 |  | -5.549450549450549
General, administrative and other 5 |  | 147 |  |  | 150 |  | 2
Synthetic fuel |  | 104 |  |  | 84 |  | -23.80952380952381
Total Expenses |  | 2703 |  |  | 2502 |  | -8.03357314148681
OPERATING INCOME |  | 201 |  |  | 203 |  | -0.9852216748768473
Gains and other income (expense) 6 |  | 23 |  |  | 34 |  | -32.35294117647059
Interest expense |  | -33 |  |  | -27 |  | -22.22222222222222
Interest income |  | 3 |  |  | 11 |  | -72.72727272727273
(Provision for) reversal of loan losses |  | 0 |  |  | 2 |  | -100
Equity in earnings (losses) 7 |  | 2 |  |  | -3 |  | 166.6666666666667
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES
AND MINORITY INTEREST |  | 196 |  |  | 220 |  | -10.90909090909091
Provision for income taxes |  | -14 |  |  | -56 |  | 75
Minority interest |  | 0 |  |  | 6 |  | -100
INCOME FROM CONTINUING OPERATIONS |  | 182 |  |  | 170 |  | 7.058823529411764
Cumulative effect of change in accounting principle, net of tax 8 |  | 0 |  |  | -109 |  | 100
NET INCOME |  | 182 |  |  | 61 |  | 198.3606557377049
EARNINGS PER SHARE - Basic
Earnings from continuing operations |  | 0.47 |  |  | 0.41 |  | 14.63414634146341
Losses from cumulative effect of change in accounting principle |  | 0 |  |  | -0.26 |  | 100
Earnings per share |  | 0.47 |  |  | 0.15 |  | 213.3333333333333
EARNINGS PER SHARE - Diluted
Earnings from continuing operations |  | 0.44 |  |  | 0.39 |  | 12.82051282051282
Losses from cumulative effect of change in accounting principle |  | 0 |  |  | -0.25 |  | 100
Earnings per share |  | 0.44 |  |  | 0.14 |  | 214.2857142857143
Basic Shares |  | 388.1 |  |  | 411.6
Diluted Shares |  | 411.3 |  |  | 441
1 – Owned, leased, corporate housing and other revenue includes revenue from the properties we own or lease, revenue from our corporate housing business, land rent income
and other revenue.
2 – Timeshare sales and services includes total timeshare revenue except for base fees, cost reimbursements, real estate gains and joint venture earnings.  Timeshare sales and
services includes gains on the sale of timeshare note receivable securitizations.
3 – Cost reimbursements include reimbursements from lodging 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 lodging business segments and our corporate overhead costs and general expenses.
6 – Gains and other income (expense) includes gains and losses on the sale of real estate, gains on note sales or repayments (except timeshare note securitizations gains),
gains and losses on the sale of joint ventures, income from cost method joint ventures and net earn-out payments associated with our synthetic fuel operations.
7 –  Equity in earnings (losses) includes our equity in earnings (losses) of unconsolidated equity method joint ventures.
8 – Cumulative effect of change in accounting principle, net of tax is associated with the adoption, in the 2006 first quarter, of Statement of Position 04-2, "Accounting for Real
Estate Time-sharing Transactions" which was issued by the American Institute of Certified Public Accountants.