EXHIBIT 12
HILTON HOTELS CORPORATION AND SUBSIDIARIES
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(dollar amounts in millions) (unaudited)
YEARS ENDED DECEMBER 31,
-----------------------------------------------------
1997 1996 1995 1994 1993
--------- --------- --------- --------- ---------
Income from continuing operations before income taxes and minority
interest (1)............................................................ $ 440 $ 235 $ 262 $ 184 $ 156
Add:
Interest expense (1).................................................... 181 96 114 95 90
Distributions from less than 50% owned companies........................ 10 18 13 12 6
Interest component of rent expense (1)(2)............................... 6 4 4 3 3
--------- --------- --------- --------- ---------
Earnings available for fixed charges...................................... $ 637 $ 353 $ 393 $ 294 $ 255
--------- --------- --------- --------- ---------
--------- --------- --------- --------- ---------
Fixed charges:
Interest expense (1).................................................... $ 181 $ 96 $ 114 $ 95 $ 90
Capitalized interest.................................................... 18 7 3 8 2
Interest component of rent expense (1)(2)............................... 6 4 4 3 3
--------- --------- --------- --------- ---------
Total fixed charges....................................................... $ 205 $ 107 $ 121 $ 106 $ 95
--------- --------- --------- --------- ---------
--------- --------- --------- --------- ---------
Ratio of earnings to fixed charges........................................ 3.1x 3.3x 3.2x 2.8x 2.7x
--------- --------- --------- --------- ---------
--------- --------- --------- --------- ---------
- ---------
(1) Includes 50% owned companies.
(2) Assumed interest component to be one-third of rent expense.
1
HILTON HOTELS CORPORATION AND SUBSIDIARIES
COMPUTATION OF RATIO OF EARNINGS TO COMBINED
FIXED CHARGES AND PREFERRED STOCK DIVIDENDS
(dollar amounts in millions) (unaudited)
YEARS ENDED DECEMBER 31,
-----------------------------------------------------
1997 1996 1995 1994 1993
--------- --------- --------- --------- ---------
Income from continuing operations before income taxes and minority
interest (1)............................................................ $ 440 $ 235 $ 262 $ 184 $ 156
Add:
Interest expense (1).................................................... 181 96 114 95 90
Distributions from less than 50% owned companies........................ 10 18 13 12 6
Interest component of rent expense (1)(2)............................... 6 4 4 3 3
--------- --------- --------- --------- ---------
Earnings available for combined fixed charges and preferred stock
dividends............................................................... $ 637 $ 353 $ 393 $ 294 $ 255
--------- --------- --------- --------- ---------
--------- --------- --------- --------- ---------
Fixed charges and preferred stock dividends:
Interest expense (1).................................................... $ 181 $ 96 $ 114 $ 95 $ 90
Capitalized interest.................................................... 18 7 3 8 2
Interest component of rent expense (1)(2)............................... 6 4 4 3 3
Preferred stock dividends............................................... 23 1 -- -- --
--------- --------- --------- --------- ---------
Total combined fixed charges and preferred stock dividends................ $ 228 $ 108 $ 121 $ 106 $ 95
--------- --------- --------- --------- ---------
--------- --------- --------- --------- ---------
Ratio of earnings to combined fixed charges and preferred stock
dividends............................................................... 2.8x 3.3x 3.2x 2.8x 2.7x
--------- --------- --------- --------- ---------
--------- --------- --------- --------- ---------
- ---------
(1) Includes 50% owned companies.
(2) Assumed interest component to be one-third of rent expense.
2