2006 Annual Report

Management’s Responsibility for Financial Statements
Management of Marriott International is responsible for the integrity
and objectivity of the consolidated financial statements and other
financial information presented in this annual report. In meeting this
responsibility, we maintain a highly developed system of internal controls,
policies and procedures, including an internal auditing function.
The consolidated financial statements have been audited by
Ernst & Young LLP, independent registered public accounting firm.
Their report expresses an informed judgment as to whether management’s
financial statements, considered in their entirety, fairly
present our financial position, operating results and cash flows in
conformity with U.S. generally accepted accounting principles.
Management of Marriott International, Inc. (the “Company”) is
responsible for establishing and maintaining adequate internal control
over financial reporting and for the assessment of the effectiveness
of internal control over financial reporting. As defined by the
Securities and Exchange Commission, internal control over financial
reporting is a process designed by, or under the supervision of, the
Company’s principal executive and principal financial officers and
effected by the Company’s Board of Directors, management and
other personnel, to provide reasonable assurance regarding the reliability
of financial reporting and the preparation of the consolidated
financial statements in accordance with U.S. generally accepted
accounting principles.
The Company’s internal control over financial reporting is supported
by written policies and procedures that: (1) pertain to the
maintenance of records that, in reasonable detail, accurately and
fairly reflect the Company’s transactions and dispositions of the
Company’s assets; (2) provide reasonable assurance that transactions
are recorded as necessary to permit preparation of the consolidated
financial statements in accordance with U.S. generally
accepted accounting principles, and that receipts and expenditures
of the Company are being made only in accordance with authorizations
of the Company’s management and directors; and (3) provide
reasonable assurance regarding prevention or timely detection of
unauthorized acquisition, use or disposition of the Company’s
assets that could have a material effect on the consolidated financial
statements.
68 | MARRIOTT INTERNATIONAL, INC. 2006
The Board of Directors pursues its responsibility for the financial
statements through its Audit Committee, composed of four directors
not otherwise employed by the company. The committee
meets a minimum of four times during the year with the independent
registered public accounting firm, representatives of management
and the internal auditors to review the scope and results of
the internal and external audits, the accounting principles applied
in financial reporting, and financial and operational controls. The
independent registered public accounting firm and internal auditors
have unrestricted access to the Audit Committee, with or without
the presence of management.
Management’s Report on Internal Control Over Financial Reporting
Because of its inherent limitations, internal control over financial
reporting may not prevent or detect misstatements. Also, projections
of any evaluation of effectiveness to future periods are subject
to the risk that controls may become inadequate because of
changes in conditions, or that the degree of compliance with the
policies or procedures may deteriorate.
In connection with the preparation of the Company’s annual consolidated
financial statements, management has undertaken an assessment
of the effectiveness of the Company’s internal control over
financial reporting as of December 29, 2006, based on criteria established
in Internal Control-Integrated Framework issued by the
Committee of Sponsoring Organizations of the Treadway Commission
(the “COSO Framework”). Management’s assessment included an evaluation
of the design of the Company’s internal control over financial
reporting and testing of the operational effectiveness of those controls.
Based on this assessment, management has concluded that as of
December 29, 2006, the Company’s internal control over financial
reporting was effective to provide reasonable assurance regarding
the reliability of financial reporting and the preparation of financial
statements for external purposes in accordance with U.S. generally
accepted accounting principles.
Ernst & Young LLP, the independent registered public accounting
firm that audited the Company’s consolidated financial statements
included in this report, has issued an attestation report on management’s
assessment of internal control over financial reporting, a
copy of which appears on the next page of this annual report.