Exhibit 12.1
HYATT HOTELS CORPORATION
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(In millions of dollars)
For the Years Ended December 31, | |||||||||||||||||||
2014 | 2013 | 2012 | 2011 | 2010 | |||||||||||||||
Earnings: | |||||||||||||||||||
Pretax income from continuing operations before adjustment for income or loss from equity investees | $ | 500 | $ | 322 | $ | 116 | $ | 78 | $ | 128 | |||||||||
Fixed charges | 129 | 105 | 95 | 81 | 83 | ||||||||||||||
Distributed income of equity method investees | 70 | 39 | 15 | 12 | 9 | ||||||||||||||
Subtract: Interest capitalized net of amortization | 4 | 5 | 1 | 1 | 9 | ||||||||||||||
Subtract: Non-controlling interest loss with no fixed charges | (1 | ) | (2 | ) | (1 | ) | (1 | ) | (10 | ) | |||||||||
Total Earnings | $ | 696 | $ | 463 | $ | 226 | $ | 171 | $ | 221 | |||||||||
Fixed Charges: | |||||||||||||||||||
Interest expense | $ | 78 | $ | 74 | $ | 74 | $ | 61 | $ | 65 | |||||||||
Interest within rent expense | 28 | 26 | 21 | 20 | 18 | ||||||||||||||
Performance guarantees expense | 23 | 5 | — | — | — | ||||||||||||||
Total Fixed Charges | $ | 129 | $ | 105 | $ | 95 | $ | 81 | $ | 83 | |||||||||
Ratio of Earnings to Fixed Charges (1) | 5.4x | 4.4x | 2.4x | 2.1x | 2.7x |
(1) | For purposes of calculating the ratio of earnings to fixed charges, earnings represents pre-tax earnings before adjustments for income or loss from equity investees; and fixed charges include: interest (expenses and capitalized), amortized premiums, discounts and capitalized expenses related to indebtedness, the interest portion of rent expense that is deemed to be representative of the interest factor, and performance guarantee expense. Our performance guarantee arrangements are primarily subject to annual performance guarantee metrics. |