Goodwill and Intangible Asset Disclosure
Adjustments to Financial Statements: Removal of Goodwill
Adjusted Financial Ratios: Removal of Goodwill (Summary)
Adjusted Total Asset Turnover
Adjusted Financial Leverage
Adjusted Return on Equity (ROE)
Adjusted Return on Assets (ROA)

Marriott International Inc., balance sheet: goodwill and intangible assets

US$ in millions

	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015
Costs incurred to obtain contracts with customers	1,588)	1,347)	—)	—)	—)
Contracts acquired in business combinations and other	1,972)	1,983)	—)	—)	—)
Contract acquisition costs and other (legacy)	—)	—)	3,530)	3,276)	1,702)
Definite-lived intangible assets, gross	3,560)	3,330)	3,530)	3,276)	1,702)
Accumulated amortization	(808)	(674)	(579)	(447)	(380)
Definite-lived intangible assets, net	2,752)	2,656)	2,951)	2,829)	1,322)
Indefinite-lived intangible brand assets	5,889)	5,724)	5,854)	6,441)	129)
Intangible assets	8,641)	8,380)	8,805)	9,270)	1,451)
Goodwill	9,048)	9,039)	9,207)	7,598)	943)
Intangible assets and goodwill	17,689)	17,419)	18,012)	16,868)	2,394)

Based on: 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31).

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Item	Description	The company
Intangible assets	Sum of the carrying amounts of all intangible assets, excluding goodwill, as of the balance sheet date, net of accumulated amortization and impairment charges.	Marriott International Inc. intangible assets decreased from 2017 to 2018 but then increased from 2018 to 2019 not reaching 2017 level.
Goodwill	Amount after accumulated impairment loss of an asset representing future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized.	Marriott International Inc. goodwill decreased from 2017 to 2018 but then slightly increased from 2018 to 2019.
Intangible assets and goodwill	Sum of the carrying amounts of all intangible assets, including goodwill, as of the balance sheet date, net of accumulated amortization and impairment charges.	Marriott International Inc. intangible assets and goodwill decreased from 2017 to 2018 but then slightly increased from 2018 to 2019.

Marriott International Inc., adjustments to financial statements

US$ in millions

	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015
Adjustment to Total Assets
Total assets (as reported)	25,051)	23,696)	23,948)	24,140)	6,082)
Less: Goodwill	9,048)	9,039)	9,207)	7,598)	943)
Total assets (adjusted)	16,003)	14,657)	14,741)	16,542)	5,139)
Adjustment to Shareholders’ Equity (deficit)
Shareholders’ equity (deficit) (as reported)	703)	2,225)	3,731)	5,357)	(3,590)
Less: Goodwill	9,048)	9,039)	9,207)	7,598)	943)
Shareholders’ equity (deficit) (adjusted)	(8,345)	(6,814)	(5,476)	(2,241)	(4,533)

Based on: 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31).

Marriott International Inc., Financial Data: Reported vs. Adjusted

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Marriott International Inc., adjusted financial ratios

	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015
Total Asset Turnover
Reported total asset turnover	0.84	0.88	0.96	0.71	2.38
Adjusted total asset turnover	1.31	1.42	1.55	1.03	2.82
Financial Leverage
Reported financial leverage	35.63	10.65	6.42	4.51	—
Adjusted financial leverage	—	—	—	—	—
Return on Equity (ROE)
Reported ROE	181.08%	85.71%	36.77%	14.56%	—
Adjusted ROE	—	—	—	—	—
Return on Assets (ROA)
Reported ROA	5.08%	8.05%	5.73%	3.23%	14.12%
Adjusted ROA	7.95%	13.01%	9.31%	4.72%	16.72%

Based on: 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31).

Financial ratio	Description	The company
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	Marriott International Inc. adjusted total asset turnover ratio deteriorated from 2017 to 2018 and from 2018 to 2019.
Adjusted ROA	A profitability ratio calculated as net income divided by adjusted total assets.	Marriott International Inc. adjusted ROA improved from 2017 to 2018 but then deteriorated significantly from 2018 to 2019.

Marriott International Inc., Financial Ratios: Reported vs. Adjusted

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	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015
As Reported
Selected Financial Data (US$ in millions)
Revenues	20,972)	20,758)	22,894)	17,072)	14,486)
Total assets	25,051)	23,696)	23,948)	24,140)	6,082)
Activity Ratio
Total asset turnover¹	0.84	0.88	0.96	0.71	2.38
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Revenues	20,972)	20,758)	22,894)	17,072)	14,486)
Adjusted total assets	16,003)	14,657)	14,741)	16,542)	5,139)
Activity Ratio
Adjusted total asset turnover²	1.31	1.42	1.55	1.03	2.82

Based on: 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31).

2019 Calculations

¹ Total asset turnover = Revenues ÷ Total assets
= 20,972 ÷ 25,051 = 0.84

² Adjusted total asset turnover = Revenues ÷ Adjusted total assets
= 20,972 ÷ 16,003 = 1.31

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Activity ratio	Description	The company
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	Marriott International Inc. adjusted total asset turnover ratio deteriorated from 2017 to 2018 and from 2018 to 2019.

	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015
As Reported
Selected Financial Data (US$ in millions)
Total assets	25,051)	23,696)	23,948)	24,140)	6,082)
Shareholders’ equity (deficit)	703)	2,225)	3,731)	5,357)	(3,590)
Solvency Ratio
Financial leverage¹	35.63	10.65	6.42	4.51	—
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Adjusted total assets	16,003)	14,657)	14,741)	16,542)	5,139)
Adjusted shareholders’ equity (deficit)	(8,345)	(6,814)	(5,476)	(2,241)	(4,533)
Solvency Ratio
Adjusted financial leverage²	—	—	—	—	—

Based on: 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31).

2019 Calculations

¹ Financial leverage = Total assets ÷ Shareholders’ equity (deficit)
= 25,051 ÷ 703 = 35.63

² Adjusted financial leverage = Adjusted total assets ÷ Adjusted shareholders’ equity (deficit)
= 16,003 ÷ -8,345 = —

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	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015
As Reported
Selected Financial Data (US$ in millions)
Net income	1,273)	1,907)	1,372)	780)	859)
Shareholders’ equity (deficit)	703)	2,225)	3,731)	5,357)	(3,590)
Profitability Ratio
ROE¹	181.08%	85.71%	36.77%	14.56%	—
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Net income	1,273)	1,907)	1,372)	780)	859)
Adjusted shareholders’ equity (deficit)	(8,345)	(6,814)	(5,476)	(2,241)	(4,533)
Profitability Ratio
Adjusted ROE²	—	—	—	—	—

Based on: 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31).

2019 Calculations

¹ ROE = 100 × Net income ÷ Shareholders’ equity (deficit)
= 100 × 1,273 ÷ 703 = 181.08%

² Adjusted ROE = 100 × Net income ÷ Adjusted shareholders’ equity (deficit)
= 100 × 1,273 ÷ -8,345 = —

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	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015
As Reported
Selected Financial Data (US$ in millions)
Net income	1,273)	1,907)	1,372)	780)	859)
Total assets	25,051)	23,696)	23,948)	24,140)	6,082)
Profitability Ratio
ROA¹	5.08%	8.05%	5.73%	3.23%	14.12%
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Net income	1,273)	1,907)	1,372)	780)	859)
Adjusted total assets	16,003)	14,657)	14,741)	16,542)	5,139)
Profitability Ratio
Adjusted ROA²	7.95%	13.01%	9.31%	4.72%	16.72%

Based on: 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31).

2019 Calculations

¹ ROA = 100 × Net income ÷ Total assets
= 100 × 1,273 ÷ 25,051 = 5.08%

² Adjusted ROA = 100 × Net income ÷ Adjusted total assets
= 100 × 1,273 ÷ 16,003 = 7.95%

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Profitability ratio	Description	The company
Adjusted ROA	A profitability ratio calculated as net income divided by adjusted total assets.	Marriott International Inc. adjusted ROA improved from 2017 to 2018 but then deteriorated significantly from 2018 to 2019.

Marriott International Inc. (NASDAQ:MAR)

Analysis of Goodwill and Intangible Assets

Goodwill and Intangible Asset Disclosure

Adjustments to Financial Statements: Removal of Goodwill

Marriott International Inc., Financial Data: Reported vs. Adjusted

Adjusted Financial Ratios: Removal of Goodwill (Summary)

Marriott International Inc., Financial Ratios: Reported vs. Adjusted

Adjusted Total Asset Turnover

Adjusted Financial Leverage

Adjusted Return on Equity (ROE)

Adjusted Return on Assets (ROA)