8-KRegulation FD

MARRIOTT INTERNATIONAL INC /MD/ 8-K Report, Regulation FD Disclosure (May 26, 2011)

Filed May 26, 2011For Securities:MAR

Summary

Marriott International, Inc. (MAR) announced via an 8-K filing on May 25, 2011, that it anticipates significant cash tax benefits stemming from the anticipated spin-off of its timeshare business. These benefits are expected to materialize over several years and are related to the value of the timeshare assets. This comes after Marriott recorded substantial impairment charges totaling $752 million in 2009, largely impacting its luxury fractional and residential timeshare operations. Further details regarding these tax benefits are expected to be disclosed once the timeshare business files its Form 10 registration statement, which Marriott has targeted for late June 2011. Investors should note that these statements regarding tax benefits and the Form 10 filing timeline are considered forward-looking and are subject to various risks and uncertainties that could impact the planned spin-off.

Key Highlights

  • 1Anticipated spin-off of Marriott's timeshare business.
  • 2Expectation of several hundred million dollars in cash tax benefits over time from the spin-off.
  • 3Tax benefits are related to the value of the timeshare business.
  • 4Previous recording of $752 million in timeshare strategy impairment charges in 2009.
  • 5Target date for the timeshare business to file its Form 10 registration statement is late June 2011.
  • 6Disclosure includes forward-looking statements with inherent risks and uncertainties.

Frequently Asked Questions

The primary purpose of this 8-K filing is to disclose Marriott's expectation of significant cash tax benefits related to the anticipated spin-off of its timeshare business, and to provide a target timeline for the filing of the timeshare business's Form 10 registration statement.

Marriott expects to recognize several hundred million dollars in cash tax benefits over a number of years as a result of the timeshare business spin-off.

More information is expected to be provided after the timeshare business files its Form 10 registration statement with the SEC, which is targeted for late June 2011.

No, the expected tax benefits and the Form 10 filing timeline are considered forward-looking statements. They are subject to numerous risks and uncertainties that could potentially prevent, delay, alter, or negatively affect the planned spin-off.