EX-12.1 10 c78061exv12w1.txt CAL. OF RATIO OF EARNINGS TO TOTAL FIXED CHARGES STARWOOD HOTELS & RESORTS WORLDWIDE, INC. EXHIBIT 12.1 STARWOOD HOTELS & RESORTS WORLDWIDE, INC. CALCULATION OF RATIO OF EARNINGS TO TOTAL FIXED CHARGES (Dollars in Millions)
Year Ended December 31, -------------------------------------------------- March 31, 2002 2001 2000 1999 1998 2003 ------- ------- ------- ------- ------- ------- Earnings: Income (loss) from continuing operations ........................ 251 147 397 (672) 218 (117) Add: Adjustment for distributions in excess of equity earnings and losses (a) .......................... 3 (13) (14) (30) (8) 21 Provision for income taxes (benefit) ........................ 4 43 201 1,095 (89) (70) Minority equity in net income (loss) ........................ 2 3 8 95 14 (1) Amortization of interest capitalized ........................ 1 1 1 1 4 - ------- ------- ------- ------- ------- ------- 261 181 593 489 139 (167) ------- ------- ------- ------- ------- ------- Fixed Charges: Interest and other financial charges ........................ 341 390 450 560 466 81 Interest factor attributable to rentals (b) ................. 26 25 21 14 12 6 ------- ------- ------- ------- ------- ------- 367 415 471 574 478 87 ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- Earnings, as adjusted, from continuing operations ............... 628 607 1,064 $ 1,063 $ 617 (80) ======= ======= ======= ------- ======= ======= Fixed Charges: Fixed charges above ......................................... 367 415 471 $ 574 $ 478 87 Interest capitalized ........................................ 6 7 3 8 14 1 ------- ------- ------- ------- ------- ------- Total fixed charges ......................................... 373 422 474 $ 582 $ 492 88 ======= ======= ======= ======= ======= ======= Ratio: Earnings, as adjusted, from continuing operations to fixed charges ........................................... 1.68 1.44 2.24 1.83 1.25 (c) ======= ======= ======= ======= ======= =======
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 sufficient to cover fixed charges by $168 million