Penske Automotive (PAG) 10-Q 2015 Q3 Quarterly report

Exhibit 12

COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

	Three Months Ended					Nine Months Ended
	September 30,					September 30,					Year Ended December 31,
	2015			2014		2015			2014		2014			2013		2012		2011		2010
Income from continuing operations before income taxes	$	129.3		117.0		$	388.4		339.8		$	457.9		372.8		290.4		244.3		182.7
Less undistributed earnings of equity method investments	$	(11.0	)	(12.7	)	$	(29.7	)	(28.7	)	$	(40.8	)	(30.7	)	(27.6	)	(25.5	)	(20.6	)
Plus distributed earnings of equity method investments	$	4.3		4.3		$	10.7		9.3		$	15.5		10.8		23.6		9.2		9.9
Plus amortization of capitalized interest	$	0.2		0.2		$	0.6		0.6		$	0.8		0.8		0.8		0.8		0.8
Income from continuing operations before undistributed earnings of equity method investments, amortization of capitalized interest, and taxes	$	122.8		108.8		$	370.0		321.0		$	433.4		353.7		287.2		228.8		172.8
Plus:
Fixed charges:
Other interest expense (includes amortization of deferred financing costs)	$	16.3		12.4		$	49.0		37.2		$	52.8		45.3		46.1		44.0		48.4
Debt discount amortization	$	—		—		$	—		—		$	—		—		—		1.7		8.6
Floor plan interest expense	$	11.4		11.3		$	32.7		34.1		$	46.5		43.5		38.3		26.9		32.5
Capitalized interest	$	0.2		0.2		$	0.5		0.5		$	0.8		0.7		0.6		0.7		0.5
Interest factor in rental expense	$	16.7		15.7		$	49.5		46.9		$	63.1		57.3		55.7		53.4		50.8
Total fixed charges	$	44.6		39.6		$	131.7		118.7		$	163.2		146.8		140.7		126.7		140.8
Less:
Capitalized interest	$	0.2		0.2		$	0.5		0.5		$	0.8		0.7		0.6		0.7		0.5
Earnings	$	167.2		148.2		$	501.2		439.2		$	595.8		499.8		427.3		354.8		313.1
Ratio of earnings to fixed charges	3.7			3.7		3.8			3.7		3.7			3.4		3.0		2.8		2.2