EX-12: COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
Published on February 27, 2009
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, | ||||||||||||||||||||
| 2008 (a) | 2007 | 2006 | 2005 | 2004 | ||||||||||||||||
|
Earnings available to cover fixed charges:
|
||||||||||||||||||||
|
Income/(loss) before income taxes and cumulative
effect of accounting change |
$ | (887 | ) | $ | 655 | $ | 542 | $ | 626 | $ | 587 | |||||||||
|
Plus: Fixed charges
|
242 | 209 | 159 | 93 | 86 | |||||||||||||||
|
Amortization of capitalized interest
|
22 | 18 | 8 | 5 | 6 | |||||||||||||||
|
Less: Capitalized interest
|
19 | 23 | 16 | 7 | 5 | |||||||||||||||
|
Earnings available to cover fixed charges
|
$ | (642 | ) | $ | 859 | $ | 693 | $ | 717 | $ | 674 | |||||||||
|
Fixed
charges (b):
|
||||||||||||||||||||
|
Interest, including amortization of deferred financing costs
|
$ | 211 | $ | 183 | $ | 137 | $ | 75 | $ | 70 | ||||||||||
|
Interest portion of rental payments
|
31 | 26 | 22 | 18 | 16 | |||||||||||||||
|
Total fixed charges
|
$ | 242 | $ | 209 | $ | 159 | $ | 93 | $ | 86 | ||||||||||
|
Ratio of earnings to fixed charges
|
| 4.11x | 4.36x | 7.71x | 7.84x | |||||||||||||||
| (a) | The Company was deficient to cover fixed charges by $884 million. | |
| (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. |