EX-12: COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
Published on February 29, 2008
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 Companys 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. |