Penske Automotive (PAG) 10-Q 2014 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,
	2014			2013		2014			2013		2013		2012		2011		2010		2009
Income from continuing operations before undistributed earnings of equity method investments, amortization of capitalized interest, and taxes	$	122.4		98.4		$	223.0		184.3		372.6		287.7		245.2		185.7		119.6
Less undistributed earnings of equity method investments	$	(10.9	)	(8.9	)	$	(16.0	)	(11.2	)	(30.7	)	(27.6	)	(25.4	)	(20.6	)	(13.8	)
Plus distributed earnings of equity method investments	$	5.0		3.8		$	5.0		4.1		10.8		23.6		9.2		9.9		21.3
Plus amortization of capitalized interest	$	0.2		0.2		$	0.4		0.4		0.8		0.8		0.8		0.8		0.8
	$	116.7		93.5		$	212.4		177.6		353.5		284.5		229.8		175.8		127.9
Plus:
Fixed charges:
Other interest expense (includes amortization of deferred financing costs)	$	13.1		11.9		$	26.2		23.4		47.7		46.6		44.1		48.4		54.5
Debt discount amortization	$	—		—		$	—		—		—		—		1.7		8.6		13.0
Floor plan interest expense	$	11.6		10.7		$	22.7		20.8		43.3		38.1		26.6		32.4		32.7
Capitalized interest	$	0.2		0.1		$	0.4		0.3		1.3		0.6		0.7		0.5		0.9
Interest factor in rental expense	$	16.4		14.5		$	32.2		28.9		59.1		55.9		53.2		50.3		49.1
Total fixed charges	$	41.3		37.2		$	81.5		73.4		151.4		141.2		126.3		140.2		150.2
Less:
Capitalized interest	$	0.2		0.1		$	0.4		0.3		1.3		0.6		0.7		0.5		0.9
Earnings	$	157.8		130.6		$	293.5		250.7		503.6		425.1		355.4		315.5		277.2
Ratio of earnings to fixed charges	3.8			3.5		3.6			3.4		3.3		3.0		2.8		2.3		1.8