Exhibit 12.1
Avis Budget Group, Inc.
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(Dollars in millions)
| Year Ended December 31, | Nine Months Ended September 30, | |||||||||||||||||||||||||||
| 2009 | 2008 | 2007 | 2006 | 2005 | 2010 | 2009 | ||||||||||||||||||||||
Fixed charges(a): | ||||||||||||||||||||||||||||
Interest, including amortization of deferred financing costs(b) | $ | 343 | $ | 402 | $ | 497 | $ | 632 | $ | 512 | $ | 292 | $ | 250 | ||||||||||||||
Interest portion of rental payments | 65 | 62 | 59 | 61 | 57 | 49 | 49 | |||||||||||||||||||||
Total fixed charges | $ | 408 | $ | 464 | $ | 556 | $ | 693 | $ | 569 | $ | 341 | $ | 299 | ||||||||||||||
Earnings available to cover fixed charges: | ||||||||||||||||||||||||||||
Income/loss from continuing operations before income taxes(c) | $ | (77 | ) | $ | (1,343 | ) | $ | (992 | ) | $ | (677 | ) | $ | (62 | ) | $ | 106 | $ | 11 | |||||||||
Plus: Fixed charges (calculated above) | 408 | 464 | 556 | 693 | 569 | 341 | 299 | |||||||||||||||||||||
Earnings available to cover fixed charges | $ | 331 | $ | (879 | ) | $ | (436 | ) | 16 | $ | 507 | $ | 447 | $ | 310 | |||||||||||||
Ratio of earnings to fixed charges(d) | — | — | — | — | — | 1.31x | 1.04x | |||||||||||||||||||||
| (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 and $163 million for the years ended December 31, 2006 and 2005, respectively. |
| (c) | During 2009, 2008 and 2007, the Company recorded impairment charges of $33 million, $1,262 million and $1,195 million, respectively. In the nine months ended September 30, 2009 and 2008, the Company recorded an impairment charge of $1 million and $1.262 million, respectively. |
| (d) | Earnings were not sufficient to cover fixed charges in 2009, 2008, 2007, 2006, and 2005. |