EXHIBIT 12
ORIENT-EXPRESS HOTELS LTD. AND SUBSIDIARIES
Computation of Ratios of Earnings to Fixed Charges(3)
Year ended December 31, | |||||||||||||||
2013 | 2012 | 2011 | 2010 | 2009 | |||||||||||
Earnings available to cover fixed charges: | |||||||||||||||
Add: | |||||||||||||||
Earnings/(losses) before income taxes and earnings from unconsolidated companies from continuing operations | (14,992 | ) | 8,101 | (4,637 | ) | (11,250 | ) | 142 | |||||||
Fixed charges | 39,432 | 38,568 | 47,034 | 40,646 | 40,013 | ||||||||||
Amortization of capitalized interest | 468 | 398 | 510 | 496 | 445 | ||||||||||
Distributed income of equity method investees | 7,841 | 2,524 | 2,428 | 1,759 | 3,790 | ||||||||||
Less: | |||||||||||||||
Interest capitalized | (1,088 | ) | (4,193 | ) | (863 | ) | (2,201 | ) | (949 | ) | |||||
Non-controlling interest in pre-tax income of subsidiaries without fixed charges | 120 | 220 | 314 | 417 | 178 | ||||||||||
Earnings available to cover fixed charges | 31,781 | 45,618 | 44,786 | 29,867 | 43,619 | ||||||||||
Fixed charges: | |||||||||||||||
Interest expensed and capitalized (1) | 28,217 | 29,737 | 36,571 | 32,609 | 33,475 | ||||||||||
Amortized premiums, discounts and capitalized expenses related to indebtedness | 7,197 | 5,318 | 7,167 | 4,884 | 3,596 | ||||||||||
Estimate of interest in rent expense (2) | 4,018 | 3,513 | 3,296 | 3,153 | 2,942 | ||||||||||
Total fixed charges | 39,432 | 38,568 | 47,034 | 40,646 | 40,013 | ||||||||||
Ratio of earnings to fixed charges | N/A | 1.2 | N/A | N/A | 1.1 | ||||||||||
Deficiency in earnings to cover fixed charges | 7,650 | — | 2,248 | 10,779 | — | ||||||||||
(1) The interest included in fixed charges is interest on third party indebtedness. Interest expense accrued on uncertain tax positions is excluded from the calculation of earnings because that amount was presented as a component of income taxes. | |||||||||||||||
(2) Historically, OEH has been using one-third of rent expense as a reasonable estimate of the financing component of rent expense, since it is impracticable to determine the actual financing component of rent expense. | |||||||||||||||
(3)��Certain balances in prior periods have been restated for discontinued operations. |