EX-12.1 3 a123115exhibit121.htm STATEMENT REGARDING COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES Exhibit


Exhibit 12.1
HYATT HOTELS CORPORATION
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(In millions of dollars)
 
For the Years Ended December 31,
 
2015
 
2014
 
2013
 
2012
 
2011
Earnings:
 
 
 
 
 
 
 
 
 
Pretax income from continuing operations before adjustment for equity earnings (losses) from unconsolidated hospitality ventures
$
258

 
$
500

 
$
322

 
$
116

 
$
78

Fixed charges
133

 
129

 
105

 
95

 
81

Distributed income of equity method unconsolidated hospitality ventures
25

 
70

 
39

 
15

 
12

Subtract: Interest capitalized net of amortization
6

 
4

 
5

 
1

 
1

Subtract: Noncontrolling interest loss with no fixed charges
—

 
(1
)
 
(2
)
 
(1
)
 
(1
)
Total Earnings
$
410

 
$
696

 
$
463

 
$
226

 
$
171

 
 
 
 
 
 
 
 
 
 
Fixed Charges:
 
 
 
 
 
 
 
 
 
Interest expense
$
77

 
$
78

 
$
74

 
$
74

 
$
61

Interest within rent expense
29

 
28

 
26

 
21

 
20

Performance guarantee expense, net
27

 
23

 
5

 
—

 
—

Total Fixed Charges
$
133

 
$
129

 
$
105

 
$
95

 
$
81

 
 
 
 
 
 
 
 
 
 
Ratio of Earnings to Fixed Charges (1)
3.1x

 
5.4x

 
4.4x

 
2.4x

 
2.1x


(1)
For purposes of calculating the ratio of earnings to fixed charges, earnings represents pre-tax earnings before adjustments for equity earnings (losses) from unconsolidated hospitality ventures; 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, net. Our performance guarantee arrangements are primarily subject to annual performance guarantee metrics.