EX-12.1 3 a123114exhibit121.htm STATEMENT REGARDING COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES 12.31.14 Exhibit 12.1


Exhibit 12.1
HYATT HOTELS CORPORATION
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(In millions of dollars)
 
For the Years Ended December 31,
 
2014
 
2013
 
2012
 
2011
 
2010
Earnings:
 
 
 
 
 
 
 
 
 
Pretax income from continuing operations before adjustment for income or loss from equity investees
$
500

 
$
322

 
$
116

 
$
78

 
$
128

Fixed charges
129

 
105

 
95

 
81

 
83

Distributed income of equity method investees
70

 
39

 
15

 
12

 
9

Subtract: Interest capitalized net of amortization
4

 
5

 
1

 
1

 
9

Subtract: Non-controlling interest loss with no fixed charges
(1
)
 
(2
)
 
(1
)
 
(1
)
 
(10
)
Total Earnings
$
696

 
$
463

 
$
226

 
$
171

 
$
221

 
 
 
 
 
 
 
 
 
 
Fixed Charges:
 
 
 
 
 
 
 
 
 
Interest expense
$
78

 
$
74

 
$
74

 
$
61

 
$
65

Interest within rent expense
28

 
26

 
21

 
20

 
18

Performance guarantees expense
23

 
5

 
—

 
—

 
—

Total Fixed Charges
$
129

 
$
105

 
$
95

 
$
81

 
$
83

 
 
 
 
 
 
 
 
 
 
Ratio of Earnings to Fixed Charges (1)
5.4x

 
4.4x

 
2.4x

 
2.1x

 
2.7x


(1)
For purposes of calculating the ratio of earnings to fixed charges, earnings represents pre-tax earnings 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 expense. Our performance guarantee arrangements are primarily subject to annual performance guarantee metrics.