Exhibit 12.1
Avis Budget Group, Inc.
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(Dollars in millions)
Year Ended December 31, | Six Months Ended June 30, | |||||||||||||||||||||||||||
2010 | 2009 | 2008 | 2007 | 2006 | 2011 | 2010 | ||||||||||||||||||||||
Fixed charges(a) : | ||||||||||||||||||||||||||||
Interest, including amortization of deferred financing costs(b) | $ | 445 | $ | 343 | $ | 402 | $ | 497 | $ | 632 | $ | 236 | $ | 191 | ||||||||||||||
Interest portion of rental payments | 65 | 65 | 62 | 59 | 61 | 34 | 33 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Total fixed charges | $ | 510 | $ | 408 | $ | 464 | $ | 556 | $ | 693 | $ | 270 | $ | 224 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Earnings available to cover fixed charges: | ||||||||||||||||||||||||||||
Income (loss) from continuing operations before income taxes(c) | $ | 72 | $ | (77 | ) | $ | (1,343 | ) | $ | (992 | ) | $ | (677 | ) | $ | 100 | $ | (37 | ) | |||||||||
Plus: Fixed charges (calculated above) | 510 | 408 | 464 | 556 | 693 | 270 | 224 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Earnings available to cover fixed charges | $ | 582 | $ | 331 | $ | (879 | ) | $ | (436 | ) | $ | 16 | $ | 370 | $ | 187 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Ratio of earnings to fixed charges(d) | 1.14x | — | — | — | — | 1.4x | — | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) | Consists of interest expense on all indebtedness (including amortization of deferred financing costs) and the portion of operating lease rental expense that is representative of the interest factor. |
(b) | Does not include interest expense from discontinued operations of $87 million for the year ended December 31, 2006. |
(c) | During 2009, 2008 and 2007, the Company recorded impairment charges of $33 million, $1,262 million and $1,195 million, respectively. |
(d) | Earnings were not sufficient to cover fixed charges in 2009, 2008, 2007, 2006 and for the six months ended June 30, 2010. |
For the years ended December 31, 2009, 2008, 2007 and 2006, earnings were less than fixed charges by $77 million, $1,343 million, $992 million and $677 million, respectively. For the six months ended June 30, 2010, earnings were less than fixed charges by $37 million.