EX-12.1 5 p75014exv12w1.htm EX-12.1 exv12w1
 

EXHIBIT 12.1
STARWOOD HOTELS & RESORTS WORLDWIDE, INC.
CALCULATION OF RATIO OF EARNINGS TO TOTAL FIXED CHARGES
(Dollars in Millions)
                                         
    Year Ended December 31,  
    2007     2006     2005     2004     2003  
Income from continuing operations before income taxes and minority interest
   $ 733     $ 682     $ 642     $ 412     $ (11 )
(Income) loss related to equity method investees
     (66 )     (61 )     (64 )     (32 )     (12 )
 
                              
 
     667       621       578       380       (23 )
Add/(deduct):
                                        
Fixed Charges
     265       317       338       321       345  
Interest Capitalized
     (47 )     (27 )     (25 )     (18 )     (14 )
Distributed income of equity method investees
     142       84       125       63       83  
Minority interest in pre-tax (income) loss
     (1 )     (1 )     —       —       3  
 
                              
Earnings available for fixed charges
   $ 1,026     $ 994     $ 1,016     $ 746     $ 394  
 
                              
 
                                        
Fixed Charges:
                                        
Interest and other financial charges
   $ 188     $ 262     $ 283     $ 275     $ 305  
Interest factor attributable to rentals (a)
     30       28       30       28       26  
Interest capitalized
     47       27       25       18       14  
 
                              
Total fixed charges
   $ 265     $ 317     $ 338     $ 321     $ 345  
 
                              
 
                                        
Ratio of earnings to fixed charges
     3.87       3.14       3.01       2.32       1.14  
 
                              
Notes:
(A) The interest factor attributable to rentals consists of one-third of rental charges, which is deemed by Starwood to be representative of the interest factor inherent in rents.