Penske Automotive (PAG) 10-K 2015 FY Annual report

Exhibit 12

COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

	Year ended December 31,
	2015		2014		2013		2012		2011
Income from continuing operations before income taxes	$	491.9	$	457.9	$	371.8	$	290.4	$	244.3
Less undistributed earnings of equity method investments		(39.3)		(40.8)		(30.7)		(27.6)		(25.5)
Plus distributed earnings of equity method investments		16.1		15.5		10.8		23.6		9.2
Plus amortization of capitalized interest		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	$	469.5	$	433.4	$	352.7	$	287.2	$	228.8
Plus:
Fixed charges:
Other interest expense (includes amortization of deferred financing costs)	$	69.4	$	52.8	$	45.3	$	46.1	$	44.0
Debt discount amortization		—		—		—		—		1.7
Floor plan interest expense		44.5		46.5		43.5		38.3		26.9
Capitalized interest		0.8		0.8		0.7		0.6		0.7
Interest factor in rental expense		66.6		63.1		57.3		55.7		53.4
Total fixed charges	$	181.3	$	163.2	$	146.8	$	140.7	$	126.7
Less:
Capitalized interest	$	0.8	$	0.8	$	0.7	$	0.6	$	0.7
Earnings	$	650.0	$	595.8	$	498.8	$	427.3	$	354.8
Ratio of earnings to fixed charges		3.6		3.7		3.4		3.0		2.8