| Nine | ||||||||||||||||||||||||
| Months | ||||||||||||||||||||||||
| Ended | ||||||||||||||||||||||||
| September 30, | Year Ended December 31, | |||||||||||||||||||||||
| 2008 | 2007 | 2006 | 2005 | 2004 | 2003 | |||||||||||||||||||
Earnings available to cover fixed charges: |
||||||||||||||||||||||||
Income before income taxes, minority
interest and cumulative effect of
accounting change |
$ | 457 | $ | 655 | $ | 542 | $ | 626 | $ | 587 | $ | 500 | ||||||||||||
Plus: Fixed charges |
175 | 209 | 159 | 93 | 86 | 30 | ||||||||||||||||||
Amortization of capitalized interest |
16 | 18 | 8 | 5 | 6 | 4 | ||||||||||||||||||
Less: Minority interest in pre-tax income
of subsidiaries that have not incurred fixed charges (a) |
— | — | — | — | — | 25 | ||||||||||||||||||
Capitalized interest |
15 | 23 | 16 | 7 | 5 | 7 | ||||||||||||||||||
Earnings available to cover fixed charges |
$ | 633 | $ | 859 | $ | 693 | $ | 717 | $ | 674 | $ | 502 | ||||||||||||
Fixed charges (b): |
||||||||||||||||||||||||
Interest, including amortization of
deferred financing costs |
$ | 152 | $ | 183 | $ | 137 | $ | 75 | $ | 70 | $ | 16 | ||||||||||||
Interest
portion of rental expense |
23 | 26 | 22 | 18 | 16 | 14 | ||||||||||||||||||
Total fixed charges |
$ | 175 | $ | 209 | $ | 159 | $ | 93 | $ | 86 | $ | 30 | ||||||||||||
Ratio of earnings to fixed charges |
3.62x | 4.11x | 4.36x | 7.71x | 7.84x | 16.73x | ||||||||||||||||||
| (a) | Includes minority expense related to Wyndham Worldwide Corporation’s 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. |