EXHIBIT 12(a)
UNITED RENTALS, INC.
STATEMENT OF COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
Year Ended December 31 | ||||||||||||||||
1997 | 1998 | 1999 | 2000 | 2001 | Nine Months Ended September 30, 2002 | |||||||||||
(dollars in thousands) | ||||||||||||||||
Earnings: | ||||||||||||||||
Income before provision for income taxes and extraordinary items | $ | 34,917 | $ | 78,297 | $ | 241,807 | $ | 301,496 | $214,550 | $163,014 | ||||||
Interest expense |
| 11,847 |
| 64,157 |
| 139,828 |
| 228,779 | 221,563 | 146,206 | ||||||
Amortization of debt issuance costs |
| 124 |
| 1,423 |
| 4,154 |
| 6,880 | 9,468 | 7,489 | ||||||
Interest portion of rent expense (1) |
| 2,305 |
| 6,834 |
| 21,833 |
| 45,224 | 55,739 | 44,903 | ||||||
Earnings as adjusted | $ | 49,193 | $ | 150,711 | $ | 407,622 | $ | 582,379 | $501,320 | $361,612 | ||||||
Fixed charges: | ||||||||||||||||
Interest expense | $ | 11,847 | $ | 64,157 | $ | 139,828 | $ | 228,779 | $221,563 | $146,206 | ||||||
Amortization of debt issuance costs |
| 124 |
| 1,423 |
| 4,154 |
| 6,880 | 9,468 | 7,489 | ||||||
Interest portion of rent expense(1) |
| 2,305 |
| 6,834 |
| 21,833 |
| 45,224 | 55,739 | 44,903 | ||||||
Fixed charges | $ | 14,276 | $ | 72,414 | $ | 165,815 | $ | 280,883 | $286,770 | $198,598 | ||||||
Ratio of earnings to fixed charges |
| 3.4x |
| 2.1x |
| 2.5x |
| 2.1x | 1.7x | 1.8x | ||||||
(1) The interest portion of rent expense is estimated to be one-third of rent expense.