But while 2008 was a difficult year, it also demonstrated Marriott's strength. We responded quickly to the downturn, remaining focused on profitability as well as "People, Places and Purpose," which are highlighted in this annual report.

Despite the tough business environment, particularly late in the year, revenue totaled $12.9 billion; income from continuing operations totaled $359 million; and diluted earnings per share from continuing operations were $0.98. Our earnings reflected restructuring costs and other charges totaling $124 million after-tax or $0.34 per diluted share. These charges were largely due to the downturn in the economy and difficult credit environment.

Our balance sheet is in good shape, which is especially important given the state of the capital markets. At year-end, we are appropriately leveraged with long-term debt totaling $3 billion. We have minimal debt maturing through 2011 and substantial additional liquidity available under our credit facility. Coupled with modest investment spending this year, we expect our debt levels will decline in 2009 despite the business climate.

We acted quickly in 2008 to control costs throughout the organization. We reduced centralized cost allocations and staff expenses, often by adjusting employee hours and delaying filling open positions. We closed less productive timeshare sales offices and deferred new business initiatives. Throughout this effort, we paid careful attention to hotel owner returns while maintaining strong guest satisfaction and preserving jobs where possible.

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