Penske Automotive (PAG) 10-Q 2013 Q2 Quarterly report

Exhibit 12

COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

	Three Months Ended					Six Months Ended
	June 30,					June 30,				Year Ended December 31,
	2013			2012		2013		2012		2012		2011		2010		2009		2008
Income from continuing operations before undistributed earnings of equity method investments, amortization of capitalized interest, and taxes	$	99.6		77.9		185.2		154.6		288.4		247.9		185.4		119.5		(553.1	)
Less undistributed earnings of equity method investments	$	(8.9	)	(8.2	)	(11.2	)	(12.6	)	(27.6	)	(25.5	)	(20.6	)	(13.8	)	(16.5	)
Plus distributed earnings of equity method investments	$	3.8		2.1		4.1		13.0		23.6		9.2		9.9		21.3		3.5
Plus amortization of capitalized interest	$	0.2		0.2		0.4		0.4		0.8		0.8		0.8		0.8		0.8
	$	94.7		72.0		178.5		155.4		285.2		232.4		175.5		127.8		(565.3	)
Plus:
Fixed charges:
Other interest expense (includes amortization of deferred financing costs)	$	12.1		11.5		23.8		23.6		46.8		44.1		48.4		54.6		53.3
Debt discount amortization	$	—		—		—		—		—		1.7		8.6		13.0		14.0
Floor plan interest expense	$	10.9		9.8		21.2		19.4		38.9		27.3		33.0		33.5		60.2
Capitalized interest	$	0.1		0.2		0.3		0.4		0.6		0.7		0.5		0.9		4.8
Interest factor in rental expense	$	14.8		14.3		29.5		28.4		57.2		54.6		52.1		50.4		49.2
Total fixed charges	$	37.9		35.8		74.8		71.8		143.5		128.4		142.6		152.4		181.5
Less:
Capitalized interest	$	0.1		0.2		0.3		0.4		0.6		0.7		0.5		0.9		4.8
Earnings	$	132.5		107.6		253.0		226.8		428.1		360.1		317.6		279.3		(388.6	)
Ratio of earnings to fixed charges (a)	3.5			3.0		3.4		3.2		3.0		2.8		2.2		1.8		—

(a)In the year ended December 31, 2008, earnings were insufficient to cover fixed charges by $570.1 million due to a non-cash impairment charge of $643.5 million.