EXHIBIT 12
HILTON WORLDWIDE HOLDINGS INC.
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(in millions, except ratio amounts)
(unaudited)
Year Ended December 31, | |||||||||||||||||||
2014 | 2013 | 2012 | 2011 | 2010 | |||||||||||||||
Earnings: | |||||||||||||||||||
Income before taxes | $ | 1,147 | $ | 698 | $ | 573 | $ | 196 | $ | 419 | |||||||||
Equity in (earnings) losses from unconsolidated affiliates | (19 | ) | (16 | ) | 11 | 145 | 12 | ||||||||||||
1,128 | 682 | 584 | 341 | 431 | |||||||||||||||
Add: | |||||||||||||||||||
Fixed charges | 768 | 767 | 724 | 795 | 1,087 | ||||||||||||||
Distributed income of equity method investees | 22 | 27 | 31 | 13 | 18 | ||||||||||||||
Subtract: | |||||||||||||||||||
Interest capitalized | (4 | ) | (7 | ) | (6 | ) | (6 | ) | (1 | ) | |||||||||
Earnings available for fixed charges | $ | 1,914 | $ | 1,469 | $ | 1,333 | $ | 1,143 | $ | 1,535 | |||||||||
Fixed Charges: | |||||||||||||||||||
Interest expense(1) | $ | 618 | $ | 620 | $ | 569 | $ | 643 | $ | 946 | |||||||||
Interest capitalized | 4 | 7 | 6 | 6 | 1 | ||||||||||||||
Estimated interest included in rent expense | 149 | 140 | 149 | 146 | 140 | ||||||||||||||
Total Fixed Charges | $ | 768 | $ | 767 | $ | 724 | $ | 795 | $ | 1,087 | |||||||||
Ratio of Earnings to Fixed Charges | 2.5 | 1.9 | 1.8 | 1.4 | 1.4 |
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(1) Includes the amortization of debt discounts, premiums and capitalized expenses related to indebtedness.