EX-12.1 3 a123113ex-121.htm STATEMENT REGARDING COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES 12.31.13 EX-12.1


Exhibit 12.1
HYATT HOTELS CORPORATION
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(Dollars in millions)
 
For the Year Ended December 31,
 
2013
 
2012
 
2011
 
2010
 
2009
Earnings:
 
 
 
 
 
 
 
 
 
Pretax income (loss) from continuing operations before adjustment for income or loss from equity investees
$
322

 
$
116

 
$
78

 
$
128

 
$
(38
)
Fixed charges
101

 
95

 
81

 
83

 
88

Distributed income of equity method investees
39

 
15

 
12

 
9

 
10

Subtract: Interest capitalized net of amortization
5

 
1

 
1

 
9

 
12

Subtract: Non-controlling interest loss with no fixed charges
(2
)
 
(1
)
 
(1
)
 
(10
)
 
(1
)
Total Earnings
$
459

 
$
226

 
$
171

 
$
221

 
$
49

 
 
 
 
 
 
 
 
 
 
Fixed Charges:
 
 
 
 
 
 
 
 
 
Interest expense
$
74

 
$
74

 
$
61

 
$
65

 
$
69

Interest within rent expense
26

 
21

 
20

 
18

 
19

Performance guarantees accrued
1

 
—

 
—

 
—

 
—

Total Fixed Charges
$
101

 
$
95

 
$
81

 
$
83

 
$
88

 
 
 
 
 
 
 
 
 
 
Ratio of Earnings to Fixed Charges (1)
4.5x

 
2.4x

 
2.1x

 
2.7x

 
0 (2)


(1)
For purposes of calculating the ratio of earnings to fixed charges, earnings represents pre-tax earnings or (losses) before adjustments for income or loss from equity investees; and fixed charges include: interest (expenses and capitalized), amortized premiums, discounts and capitalized expenses related to indebtedness, the interest portion of rent expense that is deemed to be representative of the interest factor, and performance guarantee accrued.
(2)
We recorded a pre-tax loss from continuing operations of approximately $50 million for the fiscal year ended December 31, 2009. As a result, earnings were insufficient to cover fixed charges by $39 million for such year.