EX-12.1 3 d546104dex121.htm EX-12.1 EX-12.1

Exhibit 12.1

HILTON WORLDWIDE HOLDINGS INC.

COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

(in millions, except ratio amounts)

(unaudited)

 

     Year Ended December 31,  
         2017             2016             2015             2014             2013      

Earnings:

           

Income (loss) from continuing operations before income taxes

    $ 930     $ 556     $ 533     $ 333     $ (65 ) 

Equity in earnings from unconsolidated affiliates

      (2 )      (5 )      (2 )      (3 )      (4 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
     928       551       531       330       (69 ) 

Add:

           

Fixed charges

      504       502       494       543       693  

Distributed income of equity method investees

      1       2       2       4       3  

Subtract:

           

Interest capitalized

      (1 )      (1 )      (1 )      (2 )      (3 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Earnings available for fixed charges

    $ 1,432     $ 1,054     $ 1,026     $ 875     $ 624  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Fixed Charges:

           

Interest expense(1)

   $ 408     $ 394     $ 377     $ 416     $ 571  

Interest capitalized

      1       1       1       2       3  

Estimated interest included in rent expense

      95       107       116       125       119  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total Fixed Charges

    $ 504     $ 502     $ 494     $ 543     $ 693  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ratio of Earnings to Fixed Charges(2)

     2.8       2.1       2.1       1.6       —    
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

(1) Includes the amortization of debt discounts, premiums and capitalized expenses related to indebtedness.
(2) Earnings for the year ended December 31, 2013 were inadequate to cover fixed charges by $69 million.