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, | |||||||||||||||||||||||||||
| 2011 | 2010 | 2009 | 2008 | 2007 | 2012 | 2011 | ||||||||||||||||||||||
Earnings before fixed charges: | ||||||||||||||||||||||||||||
Income (loss) before income taxes | $ | 36 | $ | 72 | $ | (77 | ) | $ | (1,343 | ) | $ | (992 | ) | $ | 102 | $ | 100 | |||||||||||
Plus: Fixed charges | 576 | 510 | 408 | 464 | 556 | 382 | 270 | |||||||||||||||||||||
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Earnings available to cover fixed charges | $ | 612 | $ | 582 | $ | 331 | $ | (879 | ) | $ | (436 | ) | $ | 484 | $ | 370 | ||||||||||||
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| Fixed charges(a): | ||||||||||||||||||||||||||||
Interest, including amortization of deferred financing costs | $ | 506 | $ | 445 | $ | 343 | $ | 402 | $ | 497 | $ | 341 | $ | 236 | ||||||||||||||
Interest portion of rental payment | 70 | 65 | 65 | 62 | 59 | 41 | 34 | |||||||||||||||||||||
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Total fixed charges | $ | 576 | $ | 510 | $ | 408 | $ | 464 | $ | 556 | $ | 382 | $ | 270 | ||||||||||||||
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Ratio of earnings to fixed charges (b) | 1.06x | 1.14x | — | — | — | 1.3x | 1.4x | |||||||||||||||||||||
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| (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. Does not include early extinguishment of debt expense of $52 million in the year ended December 31, 2010 and $50 million in the six months ended June 30, 2012. Interest expense on all indebtedness is detailed as follows: |
| Year Ended December 31, | Six Months Ended June 30, | |||||||||||||||||||||||||||
| 2011 | 2010 | 2009 | 2008 | 2007 | 2012 | 2011 | ||||||||||||||||||||||
Related to debt under vehicle programs | $ | 279 | $ | 215 | $ | 186 | $ | 266 | $ | 356 | $ | 156 | $ | 135 | ||||||||||||||
All other | 227 | 230 | 157 | 136 | 141 | 185 | 101 | |||||||||||||||||||||
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| $ | 506 | $ | 445 | $ | 343 | $ | 402 | $ | 497 | $ | 341 | $ | 236 | |||||||||||||||
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| (b) | Earnings were not sufficient to cover fixed charges in 2009, 2008 and 2007 by $77 million, $1,343 million and $992 million, respectively. |