EX-12 2 ye2014ratioofearningstofc.htm RATIO OF EARNINGS TO FIXED CHARGES YE2014 Ratio of Earnings to FC


EXHIBIT 12
HILTON WORLDWIDE HOLDINGS INC.
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(in millions, except ratio amounts)
(unaudited)

 
Year Ended December 31,
 
2014
 
2013
 
2012
 
2011
 
2010
Earnings:
 
 
 
 
 
 
 
 
 
Income before taxes
$
1,147

 
$
698

 
$
573

 
$
196

 
$
419

Equity in (earnings) losses from unconsolidated affiliates
(19
)
 
(16
)
 
11

 
145

 
12

 
1,128

 
682

 
584

 
341

 
431

Add:
 
 
 
 
 
 
 
 
 
Fixed charges
768

 
767

 
724

 
795

 
1,087

Distributed income of equity method investees
22

 
27

 
31

 
13

 
18

Subtract:
 
 
 
 
 
 
 
 
 
Interest capitalized
(4
)
 
(7
)
 
(6
)
 
(6
)
 
(1
)
Earnings available for fixed charges
$
1,914

 
$
1,469

 
$
1,333

 
$
1,143

 
$
1,535

 
 
 
 
 
 
 
 
 
 
Fixed Charges:
 
 
 
 
 
 
 
 
 
Interest expense(1)
$
618

 
$
620

 
$
569

 
$
643

 
$
946

Interest capitalized
4

 
7

 
6

 
6

 
1

Estimated interest included in rent expense
149

 
140

 
149

 
146

 
140

Total Fixed Charges
$
768

 
$
767

 
$
724

 
$
795

 
$
1,087

 
 
 
 
 
 
 
 
 
 
Ratio of Earnings to Fixed Charges
2.5

 
1.9

 
1.8

 
1.4

 
1.4

____________
(1) Includes the amortization of debt discounts, premiums and capitalized expenses related to indebtedness.