EX-12 2 a12ye2016ratioofearningsto.htm RATIO OF EARNINGS TO FIXED CHARGES Exhibit


Exhibit 12

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

 
Year Ended December 31,
 
2016
 
2015
 
2014
 
2013
 
2012
Earnings:
 
 
 
 
 
 
 
 
 
Income (loss) from continuing operations before income taxes
$
556

 
$
533

 
$
333

 
$
(65
)
 
$
(86
)
Equity in losses (earnings) from unconsolidated affiliates
(5
)
 
(2
)
 
(3
)
 
(4
)
 
23

 
551

 
531

 
330

 
(69
)
 
(63
)
Add:
 
 
 
 
 
 
 
 
 
Fixed charges
502

 
494

 
543

 
693

 
687

Distributed income of equity method investees
3

 
2

 
4

 
3

 
3

Subtract:
 
 
 
 
 
 
 
 
 
Interest capitalized
(1
)
 
(1
)
 
(2
)
 
(3
)
 
(3
)
Earnings available for fixed charges
$
1,055

 
$
1,026

 
$
875

 
$
624

 
$
624

 
 
 
 
 
 
 
 
 
 
Fixed Charges:
 
 
 
 
 
 
 
 
 
Interest expense(1)
$
394

 
$
377

 
$
416

 
$
571

 
$
557

Interest capitalized
1

 
1

 
2

 
3

 
3

Estimated interest included in rent expense
107

 
116

 
125

 
119

 
127

Total Fixed Charges
$
502

 
$
494

 
$
543

 
$
693

 
$
687

 
 
 
 
 
 
 
 
 
 
Ratio of Earnings to Fixed Charges(2)
2.1

 
2.1

 
1.6

 
—

 
—

____________
(1) 
Includes the amortization of debt discounts, premiums and capitalized expenses related to indebtedness.
(2) 
Earnings for the years ended December 31, 2013 and 2012 were inadequate to cover fixed charges by $69 million and $63 million, respectively.