EX-12.1 2 chh12312013ex121.htm RATIO OF EARNINGS TO FIXED CHARGES CHH 12.31.2013 EX 12.1



Exhibit 12.1
 
 

 
Ratio of Earnings to Fixed Charges
Amounts in Thousands (except ratios)(1) 
 
 
Year Ended December 31,
 
2009
 
2010
 
2011
 
2012
 
2013
 
 
 
 
 
 
 
 
 
 
Earnings:
 
 
  
 
  
  
  
  
 
Pre-tax income from continuing operations
$150,634
 
$158,211
 
$158,057
  
$169,168
  
$156,918
Less: Income from equity investees
1,113

 
1,226

 
269

  
212

  
634

Pre-tax income from continuing operations before adjustment for income from equity investees
149,521

 
156,985

 
157,788

  
168,956

  
156,284

Add:
 
 
  

 
  

  
  

  
 
Fixed charges
6,956

 
10,498

 
19,657

  
34,210

  
50,444

Distributions from equity investees
1,337

 
1,155

 
1,139

  
1,310

  
1,445

 
 
 
 
 
 
 
 
 
 
Total Earnings
$
157,814

 
$
168,638

 
$
178,584

  
$
204,476

  
$
208,173

 
 

 
  

 
  

  
  

  
 

Fixed Charges:
 
 
  

 
  

  
  

  
 
Interest expense and amortization of loan costs(2)(3)
$
4,693

 
$
7,641

 
$
16,849

  
$
31,108

  
$
46,176

Rental expense interest component (4)
2,263

 
2,857

 
2,808

  
3,102

  
4,268

 
 
 
 
 
 
 
 
 
 
Total Fixed Charges
$
6,956

 
$
10,498

 
$
19,657

  
$
34,210

  
$
50,444

 
 

 
  

 
  

  
  

  
 

Ratio of Earnings to Fixed Charges
22.7

 
16.1

 
9.1

  
6.0

  
4.1

 
(1)
The Company had no preferred stock outstanding and did not pay preferred dividends in any of the periods presented. Consequently, the Company's ratio of earnings to combined fixed charges and preferred stock dividends for each of such periods is identical to the Company's ratio of earnings to fixed charges as indicated above.
(2)
Excludes losses recognized oN early extinguishment of debt.
(3)
The Company records interest expense accrued on uncertain tax positions as a component of income taxes. The Company has excluded these costs from both the earnings and fixed charges calculation.
(4)
The Company utilized one-third of rental expenses relating to operating leases as the interest portion which it believes is a reasonable approximation of the interest factor.