Exhibit 12.1
KERZNER INTERNATIONAL LIMITED
CALCULATION OF RATIO OF EARNINGS TO FIXED CHARGES
(In Thousands of US Dollars)
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| For the years ended December 31, |
| For the nine |
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| 2000(1) |
| 2001 |
| 2002 |
| 2003 |
| 2004 |
| 2005 |
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Income (loss) from continuing operations before provision for income taxes and minority interest |
| $ | (109,134 | ) | $ | 38,359 |
| $ | 47,760 |
| $ | 71,769 |
| $ | 61,322 |
| $ | 21,016 |
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Fixed charges |
| 58,713 |
| 63,881 |
| 41,728 |
| 32,059 |
| 45,266 |
| 43,134 |
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Amortization of capitalized interest |
| 1,579 |
| 1,948 |
| 1,985 |
| 1,993 |
| 2,066 |
| 1,650 |
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Distributed income of equity investees |
| 18,590 |
| 20,036 |
| 30,258 |
| 21,864 |
| 36,974 |
| 33,239 |
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Less: Equity earnings in equity investees |
| (23,733 | ) | (26,473 | ) | (24,832 | ) | (33,640 | ) | (43,364 | ) | (43,494 | ) | ||||||
Less: Capitalized interest |
| (11,072 | ) | (1,099 | ) | (237 | ) | (433 | ) | (5,806 | ) | (8,355 | ) | ||||||
Less: Minority interest that have not incurred fixed charges |
| — |
| — |
| — |
| (1,340 | ) | 7,234 |
| 6,561 |
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Earnings available for fixed charges |
| $ | (65,057 | ) | $ | 96,652 |
| $ | 96,662 |
| $ | 92,272 |
| $ | 103,692 |
| $ | 53,751 |
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Interest expense and amortization of debt issuance costs, discounts and premiums |
| $ | 45,678 |
| $ | 60,375 |
| $ | 39,104 |
| $ | 29,264 |
| $ | 36,814 |
| $ | 32,582 |
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Capitalized interest |
| 11,072 |
| 1,099 |
| 237 |
| 433 |
| 5,806 |
| 8,355 |
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Interest component of rentals(2) |
| 1,963 |
| 2,407 |
| 2,387 |
| 2,362 |
| 2,646 |
| 2,197 |
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Total fixed charges |
| $ | 58,713 |
| $ | 63,881 |
| $ | 41,728 |
| $ | 32,059 |
| $ | 45,266 |
| $ | 43,134 |
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Ratio of earnings to fixed charges |
| — |
| 1.51 |
| 2.32 |
| 2.88 |
| 2.29 |
| 1.25 |
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(1) Earnings were insufficient to cover fixed charges by $123,770 for the year ended December 31, 2000.
(2) The Company estimates the interest components of rentals to be 0.33.