Exhibit 12
WYNDHAM WORLDWIDE CORPORATION
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(Dollars in millions)
| Year Ended December 31, | ||||||||||||||||||||
| 2011 | 2010 | 2009 (a) | 2008 (a) | 2007 (a) | ||||||||||||||||
| Earnings available to cover fixed charges: |
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| Income/(loss) before income taxes and cumulative effect of accounting change |
$ | 650 | $ | 563 | $ | 493 | $ | (887 | ) | $ | 655 | |||||||||
| Less: Income/(loss) from equity investees |
3 | 1 | 1 | 4 | (1 | ) | ||||||||||||||
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| 647 | 562 | 492 | (891 | ) | 656 | |||||||||||||||
| Plus: Fixed charges |
279 | 305 | 290 | 263 | 232 | |||||||||||||||
| Amortization of capitalized interest |
5 | 9 | 12 | 22 | 18 | |||||||||||||||
| Less: Capitalized interest |
10 | 7 | 12 | 21 | 23 | |||||||||||||||
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| Earnings available to cover fixed charges |
$ | 921 | $ | 869 | $ | 782 | $ | (627 | ) | $ | 883 | |||||||||
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| Fixed charges (b): |
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| Interest |
$ | 244 | $ | 272 | $ | 253 | $ | 211 | $ | 183 | ||||||||||
| Capitalized interest |
10 | 7 | 12 | 21 | 23 | |||||||||||||||
| Interest portion of rental payments |
25 | 26 | 25 | 31 | 26 | |||||||||||||||
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| Total fixed charges |
$ | 279 | $ | 305 | $ | 290 | $ | 263 | $ | 232 | ||||||||||
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| Ratio of earnings to fixed charges |
3.30x | 2.85x | 2.70x | — | (c) | 3.81x | ||||||||||||||
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| (a) | Ratio computation has been amended to (i) exclude income from equity investees from the determination of earnings available to cover fixed charges and (ii) include capitalized interest within total fixed charges. For the years ended December 31, 2009 and 2007, ratio was previously reported as 2.78x and 4.11x, respectively. For the year ended December 31, 2008, the Company previously reported that it was deficient to cover fixed charges by $884 million. |
| (b) | Consists of interest expense on all indebtedness (including costs related to the early extinguishment of debt and the amortization of deferred financing costs), capitalized interest and the portion of operating lease rental expense that is representative of the interest factor. |
| (c) | The Company was deficient to cover fixed charges by $890 million. |