Financial Information
MARRIOTT INTERNATIONAL, INC.
RETURN ON INVESTED CAPITAL
(UNAUDITED)
The reconciliations of income (loss) to earnings (losses) before interest expense and taxes are as follows:
The reconciliations of assets to invested capital are as follows:
** Denotes a non-GAAP financial measure. See pages 74-75 for information about our reasons for providing these alternative financial measures and the limitations on their use.
1 Timeshare interest (for periods before the November 21, 2011 spin-off of our timeshare operations and timeshare development business) represents previously capitalized interest that was a component of product cost.
2 At year-end 2013, “current portion of long-term debt” included $46 million in liabilities held for sale classified as “other current liabilities.”
3 Calculated as “Invested capital” for the current year and prior year, divided by two, with the exception of 2010. To reflect our adoption of ASU No. 2009-16 and ASU No. 2009-17 (new standards related to transfers of financial assets and consolidation) on the first day of fiscal year 2010, we calculate “Average invested capital” for 2010 as the average of (1) the 2010 beginning balance (reflecting the impact of adopting those standards); and (2) the Year-End 2010 balance.
4 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 then wholly owned subsidiary Marriott Vacations Worldwide Corporation (“MVW”). From the spin-off date, Marriott no longer beneficially owned any shares of MVW common stock and for periods after the spin-off date does not 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. The results for 2011 include the results of the former Timeshare segment before the spin-off date while results for all earlier fiscal years include the results of the former Timeshare segment for those entire fiscal years.