EX-12.1 8 p65494a1ex12-1.txt EX-12.1 1 EXHIBIT 12.1 STARWOOD HOTELS & RESORTS WORLDWIDE, INC. PROGRAM FOR ANNUAL CLOSING OF ACCOUNTS -------------------------------------------------------------------------------- EXHIBIT 12.1 STARWOOD HOTELS & RESORTS WORLDWIDE, INC. STARWOOD HOTELS & RESORTS CALCULATION OF CONSOLIDATED RATIO OF EARNINGS TO TOTAL FIXED CHARGES (DOLLARS IN MILLIONS)
SIX MONTHS YEAR ENDED DECEMBER 31, ENDED JUNE 30, --------------------------------------------------- ----------------- 2000 1999 1998 1997 1996 2001 2000 ------- ------- ------- ------- ------- ------- ------- Earnings: Income from continuing operations ............... 401 $ (638) $ 220 $ (233) $ 156 175 167 Add: Adjustment for distributions in excess of equity earnings and losses (a) .......... (14) (30) (8) (3) (1) 6 (1) Provision for income taxes .................. 201 1,076 (89) 154 117 79 91 Minority equity in net income ............... 8 95 14 9 6 2 1 Amortization of interest capitalized ........ 1 1 4 2 4 -- -- ------- ------- ------- ------- ------- ------- ------- 597 504 141 (71) 282 262 258 ------- ------- ------- ------- ------- ------- ------- Fixed Charges: Interest and other financial charges ........ 457 516 473 33 82 199 222 Interest factor attributable to rentals (b) . 21 14 12 10 16 11 11 ------- ------- ------- ------- ------- ------- ------- 478 530 485 43 98 210 233 ------- ------- ------- ------- ------- ------- ------- Earnings, as adjusted, from continuing operations 1,075 $ 1,034 $ 626 $ (28) $ 380 472 491 ======= ======= ======= ======= ======= ======= ======= Fixed Charges: Fixed charges above ......................... 478 $ 530 $ 485 $ 43 $ 98 210 233 Interest capitalized ........................ 3 8 14 7 7 4 5 ------- ------- ------- ------- ------- ------- ------- Total fixed charges ......................... 481 $ 538 $ 499 $ 50 $ 105 214 238 ======= ======= ======= ======= ======= ======= ======= Ratio: Earnings, as adjusted, from continuing operations to fixed charges ................ 2.23 1.92 1.25 (c) 3.62 2.21 2.06 ======= ======= ======= ======= ======= ======= =======
Notes: (a) The adjustment represents distributions in excess of undistributed earnings and losses of companies in which at least 20% but less than 50% equity is owned. (b) 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. (c) Earnings were not adequate to cover total fixed charges by $78 million.