Exhibit 12
WYNDHAM WORLDWIDE CORPORATION
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(Dollars in millions)
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(Dollars in millions)
Year Ended December 31, | ||||||||||||||||||||
2007 | 2006 | 2005 | 2004 | 2003 | ||||||||||||||||
Earnings available to cover fixed charges: | ||||||||||||||||||||
Income before income taxes, minority interest and cumulative effect of accounting change | $ | 655 | $ | 542 | $ | 626 | $ | 587 | $ | 500 | ||||||||||
Plus: Fixed charges | 209 | 159 | 93 | 86 | 30 | |||||||||||||||
Amortization of capitalized interest | 18 | 8 | 5 | 6 | 4 | |||||||||||||||
Less: Minority interest in pre-tax income of subsidiaries that have not incurred fixed charges (a) | — | — | — | — | 25 | |||||||||||||||
Capitalized interest | 23 | 16 | 7 | 5 | 7 | |||||||||||||||
Earnings available to cover fixed charges | $ | 859 | $ | 693 | $ | 717 | $ | 674 | $ | 502 | ||||||||||
Fixed charges (b): | ||||||||||||||||||||
Interest, including amortization of deferred financing costs | $ | 183 | $ | 137 | $ | 75 | $ | 70 | $ | 16 | ||||||||||
Interest portion of rental payments | 26 | 22 | 18 | 16 | 14 | |||||||||||||||
Total fixed charges | $ | 209 | $ | 159 | $ | 93 | $ | 86 | $ | 30 | ||||||||||
Ratio of earnings to fixed charges | 4.11x | 4.36x | 7.71x | 7.84x | 16.73x | |||||||||||||||
(a) | Includes minority expense related to the Company’s venture with Marriott International, Inc. | |
(b) | Consists of interest expense on all indebtedness (including amortization of deferred financing costs) and the portion of operating lease rental expense that is representative of the interest factor. |