Hilton Hotels 10-K405 2001 FY Annual report (delinquent filer disclosure)

EXHIBIT 12

HILTON HOTELS CORPORATION
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(dollars in millions)(unaudited)

		YEARS ENDED DECEMBER 31,
		1997		1998		1999		2000		2001
Income from continuing operations before income taxes and minority interest (1)		$	309	$	332	$	311	$	461	$	227
Add:
	Interest expense (1)		99		142		237		462		394
	Distributions from less than 50% owned companies		5		3		7		15		10
	Interest component of rent expense (1)(2)		4		4		4		41		17
Earnings available for fixed charges		$	417	$	481	$	559	$	979	$	648
Fixed charges:
	Interest expense (1)	$	99	$	142	$	237	$	462	$	394
	Capitalized interest		2		4		7		9		10
	Interest component of rent expense (1)(2)		4		4		4		41		17
Total fixed charges		$	105	$	150	$	248	$	512	$	421
Ratio of earnings to fixed charges			4.0x		3.2x		2.3x		1.9x		1.5x

(1)

Includes 50% owned companies.

(2)

Assumed interest component to be one-third of rent expense.

EXHIBIT 12

HILTON HOTELS CORPORATION
COMPUTATION OF RATIO OF EARNINGS TO COMBINED FIXED CHARGES AND PREFERRED STOCK DIVIDENDS
(dollars in millions)(unaudited)

		YEARS ENDED DECEMBER 31,
		1997		1998		1999		2000		2001
Income from continuing operations before income taxes and minority interest (1)		$	309	$	332	$	311	$	461	$	227
Add:
	Interest expense (1)		99		142		237		462		394
	Distributions from less than 50% owned companies		5		3		7		15		10
	Interest component of rent expense (1)(2)		4		4		4		41		17
Earnings available for fixed charges and preferred stock dividends		$	417	$	481	$	559	$	979	$	648
Fixed charges and preferred stock dividends:
	Interest expense (1)	$	99	$	142	$	237	$	462	$	394
	Capitalized interest		2		4		7		9		10
	Interest component of rent expense (1)(2)		4		4		4		41		17
	Preferred stock dividends		22		17		—		—		—
Total fixed charges and preferred stock dividends		$	127	$	167	$	248	$	512	$	421
Ratio of earnings to combined fixed charges and preferred stock dividends			3.3x		2.9x		2.3x		1.9x		1.5x

(1)

Includes 50% owned companies.

(2)

Assumed interest component to be one-third of rent expense.