EX-12.1 5 p73541exv12w1.htm EXHIBIT 12.1 exv12w1
 

EXHIBIT 12.1
STARWOOD HOTELS & RESORTS WORLDWIDE, INC.
CALCULATION OF RATIO OF EARNINGS TO TOTAL FIXED CHARGES
(Dollars in Millions)
                                                         
          Six  
          Months Ended  
    Year Ended December 31,     June 30,  
    2006     2005     2004     2003     2002     2007     2006  
Income from continuing operations before income taxes and minority interest
   $ 682     $ 642     $ 412     $ (11 )   $ 252     $ 351     $ 270  
(Income) loss related to equity method investees
     (61 )     (64 )     (32 )     (12 )     (8 )     (46 )     (38 )
 
                                          
 
     621       578       380       (23 )     244       305       232  
 
                                                        
Add/(deduct):
                                                        
Fixed Charges
     317       338       321       345       392       123       191  
Interest Capitalized
     (27 )     (25 )     (18 )     (14 )     (10 )     (22 )     (11 )
Distributed income of equity method investees
     84       125       63       83       39       87       19  
Minority interest in pre-tax (income) loss
     (1 )     —       —       3       (2 )     1       —  
 
                                          
Earnings available for fixed charges(a)
   $ 994     $ 1,016     $ 746     $ 394     $ 663     $ 494     $ 431  
 
                                          
 
                                                        
Fixed Charges(a):
                                                        
Interest and other financial charges
   $ 262     $ 283     $ 275     $ 305     $ 356     $ 87     $ 166  
Interest factor attributable to rentals(b)
     28       30       28       26       26       14       14  
Interest capitalized
     27       25       18       14       10       22       11  
 
                                          
Total fixed charges
   $ 317     $ 338     $ 321     $ 345     $ 392     $ 123     $ 191  
 
                                          
 
                                                        
Ratio of earnings to fixed charges
     3.14       3.01       2.32       1.14       1.69       4.02       2.26  
 
                                          
Notes:
(a) Financial Accounting Standards Board Interpretation No. 48, Accounting for Uncertainty in Income Taxes, was adopted on January 1, 2007. Interest expense related to uncertain tax positions is not included in earnings or fixed charges for any periods presented.
(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.