EXHIBIT 12(a)
UNITED RENTALS, INC.
STATEMENT OF COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
Year Ended December 31 | ||||||||||||||
1998 | 1999 | 2000 | 2001 | 2002(2) | ||||||||||
(dollars in thousands) | ||||||||||||||
Earnings: | ||||||||||||||
Income before provision for income taxes and extraordinary items | $ | 78,297 | $ | 241,807 | $ | 301,496 | $214,550 | $(101,384 | ) | |||||
Interest expense |
| 64,157 |
| 139,828 |
| 228,779 | 221,563 | 195,961 |
| |||||
Amortization of debt issuance costs |
| 1,423 |
| 4,154 |
| 6,880 | 9,468 | 10,080 |
| |||||
Interest portion of rent expense (1) |
| 6,834 |
| 21,833 |
| 45,224 | 55,739 | 61,742 |
| |||||
Earnings as adjusted | $ | 150,711 | $ | 407,622 | $ | 582,379 | $501,320 | $166,399 |
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Fixed charges: | ||||||||||||||
Interest expense | $ | 64,157 | $ | 139,828 | $ | 228,779 | $221,563 | $195,961 |
| |||||
Amortization of debt issuance costs |
| 1,423 |
| 4,154 |
| 6,880 | 9,468 | 10,080 |
| |||||
Interest portion of rent expense(1) |
| 6,834 |
| 21,833 |
| 45,224 | 55,739 | 61,742 |
| |||||
Fixed charges | $ | 72,414 | $ | 165,815 | $ | 280,883 | $286,770 | $267,783 |
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Ratio of earnings to fixed charges |
| 2.1x |
| 2.5x |
| 2.1x | 1.7x | 0.6x |
| |||||
(1) The interest portion of rent expense is estimated to be one-third of rent expense.
(2) The ratio in 2002 was less than 1x. The amount of the deficiency is approximately $101.4 million.