CONSOLIDATED STATEMENT OF INCOME Fiscal Years Ended December 28, 2001, December 29, 2000 and December 31, 1999 2001 2000 1999 ($ in millions, except per share amounts) SALES  Management and franchise fees $ 829 $ 940 $ 823 Distribution services 1,637 1,500 1,139 Other 2,087 2,002 1,593 4,553 4,442 3,555 Other revenues from managed properties 5,599 5,638 5,184 10,152 10,080 8,739 OPERATING COSTS AND EXPENSES  Distribution services 1,641 1,496 1,118 Other 2,216 2,024 1,607 Restructuring costs 106 — — 3,963 3,520 2,725 Other costs from managed properties 5,599 5,638 5,184 9,562 9,158 7,909 OPERATING PROFIT BEFORE CORPORATE EXPENSES AND INTEREST 590 922 830 Corporate expenses (139) (120) (164) Interest expense (109) (100) (61) Interest income 94 60 37 Provision for loan losses (48) (5) (5) Restructuring costs (18) — — INCOME BEFORE INCOME TAXES 370 757 637 Provision for income taxes 134 278 237 NET INCOME $ 236 $ 479 $ 400 Basic Earnings Per Share $ 0.97 $ 1.99 $ 1.62 Diluted Earnings Per Share $ 0.92 $ 1.89 $ 1.51 See Notes To Consolidated Financial Statements Marriott International, Inc. 2001 Annual Report 21