EX-12.1 3 c75028a1exv12w1.txt EX-12.1 COMPUTATION OF RATIOS OF EARNINGS EXHIBIT 12.1 STARWOOD HOTELS & RESORTS WORLDWIDE, INC. CALCULATION OF RATIO OF EARNINGS TO TOTAL FIXED CHARGES (DOLLARS IN MILLIONS)
YEAR ENDED DECEMBER 31, ------------------------------------------------ 2002 2001 2000 1999 1998 ---- ---- ------ ------- ----- Earnings: Income (loss) from continuing operations 246 145 398 (670) 220 Add: Adjustment for distributions in excess of equity earnings and losses (a) 3 (13) (14) (30) (8) Provision for income taxes 4 43 201 1,095 (89) Minority equity in net income 2 3 8 95 14 Amortization of interest capitalized 1 1 1 1 4 ---- ---- ------ ------- ----- 256 179 594 491 141 ---- ---- ------ ------- ----- Fixed Charges: Interest and other financial charges 356 403 460 567 473 Interest factor attributable to rentals (b) 26 25 21 14 12 ---- ---- ------ ------- ----- 382 428 481 581 485 ---- ---- ------ ------- ----- Earnings, as adjusted, from continuing operations 638 607 1,075 $ 1,072 $ 626 ==== ==== ====== ======= ===== Fixed Charges: Fixed charges above 382 428 481 $ 581 $ 485 Interest capitalized 6 7 3 8 14 ---- ---- ------ ------- ----- Total fixed charges 388 435 484 $ 589 $ 499 ==== ==== ====== ======= ===== Ratio: Earnings, as adjusted, from continuing operations to fixed charges 1.64 1.40 2.22 1.82 1.25 ==== ==== ====== ======= =====
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.