CONSOLIDATED STATEMENT OF CASH FLOWS Fiscal Years Ended December 28, 2001, December 29, 2000 and December 31, 1999 2001 2000 1999 ($ in millions) OPERATING ACTIVITIES Net income $ 236 $ 479 $ 400 Adjustments to reconcile to cash provided by operations: Depreciation and amortization 222 195 162 Income taxes 9 133 87 Timeshare activity, net (358) (195) (102) Other 275 48 19 Working capital changes: Accounts receivable 57 (53) (126) Inventories 1 (4) (17) Other current assets (21) 28 (38) Accounts payable and accruals (21) 219 326 Cash provided by operations 400 850 711 INVESTING ACTIVITIES Capital expenditures (560) (1,095) (929) Acquisitions — — (61) Dispositions 554 742 436 Loan advances (367) (389) (144) Loan collections and sales 71 93 54 Other (179) (377) (143) Cash used in investing activities (481) (1,026) (787) FINANCING ACTIVITIES Commercial paper, net (827) 46 355 Issuance of long-term debt 1,329 338 366 Repayment of long-term debt (123) (26) (63) Issuance (redemption) of convertible debt 405 — (120) Issuance of Class A common stock 76 58 43 Dividends paid (61) (55) (52) Purchase of treasury stock (235) (340) (354) Cash provided by financing activities 564 21 175 INCREASE (DECREASE) IN CASH AND EQUIVALENTS 483 (155) 99 CASH AND EQUIVALENTS, beginning of year 334 489 390 CASH AND EQUIVALENTS, end of year $ 817 $ 334 $ 489 See Notes To Consolidated Financial Statements 23 Marriott International, Inc. 2001 Annual Report