QUARTERLY FINANCIAL DATA – UNAUDITED SELECTED HISTORICAL FINANCIAL DATA The following table presents summary selected historical financial data for the Company derived from our financial statements as of and for the five fiscal years ended December 28, 2001. Since the information in this table is only a summary and does not provide all of the information contained in our financial statements, including the related notes, you should read “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and our Consolidated Financial Statements. Per share data and Shareholders’ Equity have not been presented prior to 1998 because we were not a publicly held company during that time. Fiscal Year 2001 2000 1999 1998 1997 ($ in millions, except per share data) Income Statement Data: Sales $10,152 $10,080 $ 8,739 $ 7,968 $ 7,236 Operating Profit Before Corporate Expenses and Interest 590 922 830 736 609 Net Income 236 479 400 390 324 Per Share Data: Diluted Earnings Per Share .92 1.89 1.51 1.46 Cash Dividends Declared .255 .235 .215 .195 Balance Sheet Data (at end of year): Total Assets 9,107 8,237 7,324 6,233 5,161 Long-Term and Convertible Debt 2,815 2,016 1,676 1,267 422 Shareholders’ Equity 3,478 3,267 2,908 2,570 Other Data: Systemwide Sales 1 $20,000 $19,781 $17,684 $16,024 $13,196 1 Systemwide sales comprise revenues generated from guests at managed,franchised, owned, and leased hotels and senior living communities, together with sales generated by our other businesses. We consider systemwide sales to be a meaningful indicator of our performance because it measures the growth in revenues of all of the properties that carry one of the Marriott brand names. Our growth in profitability is in large part driven by such overall revenue growth. Nevertheless, sys- temwide sales should not be considered an alternative to revenues, operating profit, net income, cash flows from operations, or any other operating measure pre- scribed by accounting principles generally accepted in the United States. In addition, systemwide sales may not be comparable to similarly titled measures, such as sales and revenues, which do not include gross sales generated by managed and franchised properties. 40 Marriott International, Inc. 2001 Annual Report 2001 1 First Second Third Fourth Fiscal Quarter Quarter Quarter Quarter Year ($ in millions, except per share data) Sales $2,461 $2,450 $2,373 $2,868 $10,152 Operating profit (loss) before corporate expenses and interest $ 226 $ 239 $ 178 $ (53) $ 590 Net income (loss) $ 121 $ 130 $ 101 $ (116) $ 236 Diluted earnings (loss) per share 2 $ .47 $ .50 $ .39 $ (.48) $ .92 2000 1 First Second Third Fourth Fiscal Quarter Quarter Quarter Quarter Year ($ in millions, except per share data) Sales $2,177 $2,409 $2,315 $3,179 $10,080 Operating profit (loss) before corporate expenses and interest $ 193 $ 247 $ 216 $ 266 $ 922 Net income $ 94 $ 126 $ 110 $ 149 $ 479 Diluted earnings per share $ .37 $ .50 $ .43 $ .59 $ 1.89 1 The quarters consist of 12 weeks, except the fourth quarter, which consists of 16 weeks. 2 In 2001 the sum of the earnings per share for the four quarters differs from annual earnings per share due to the required method of computing the weighted average shares in interim periods.