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THE HERTZ CORPORATION AND SUBSIDIARIES
COMPUTATION OF CONSOLIDATED RATIO OF EARNINGS
TO FIXED CHARGES (UNAUDITED)
(In Thousands of Dollars Except Ratios)
| Successor | | Predecessor | |||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| | | For the periods from | | | |||||||||||||||
| Years ended December 31, | December 21, 2005 to December 31, 2005 | | January 1, 2005 to December 20, 2005 | Years ended December 31, | |||||||||||||||
| ||||||||||||||||||||
| 2007 | 2006 | 2004 | 2003 | ||||||||||||||||
Income (loss) before income taxes and minority interest | $ | 388,856 | $ | 240,729 | $ | (33,218 | ) | $ | 574,906 | $ | 502,552 | $ | 237,492 | |||||||
Interest expense | 917,007 | 902,974 | 26,812 | 510,403 | 408,171 | 372,924 | ||||||||||||||
Portion of rent estimated to represent the interest factor | 165,109 | 147,800 | 4,084 | 131,449 | 119,918 | 118,813 | ||||||||||||||
Earnings (loss) before income taxes, minority interest and fixed charges(b) | $ | 1,470,972 | $ | 1,291,503 | $ | (2,322 | ) | $ | 1,216,758 | $ | 1,030,641 | $ | 729,229 | |||||||
Interest expense (including capitalized interest) | $ | 921,916 | $ | 909,169 | $ | 26,939 | $ | 513,275 | $ | 409,046 | $ | 373,522 | ||||||||
Portion of rent estimated to represent the interest factor | 165,109 | 147,800 | 4,084 | 131,449 | 119,918 | 118,813 | ||||||||||||||
Fixed charges | $ | 1,087,025 | $ | 1,056,969 | $ | 31,023 | $ | 644,724 | $ | 528,964 | $ | 492,335 | ||||||||
Ratio of earnings to fixed charges(b) | 1.4 | 1.2 | (a | ) | 1.9 | 1.9 | 1.5 | |||||||||||||
- (a)
- Earnings (loss) before income taxes, minority interest and fixed charges for the period ended December 31, 2005 were inadequate to cover fixed charges by $33.3 million.
- (b)
- We adopted the provisions of Financial Accounting Standards Board Interpretation No. 48, or "FIN 48," "Accounting for Uncertainty in Income Taxes—an Interpretation of FASB Statement No. 109" on January 1, 2007. Accrued interest expense, for the year ended December 31, 2007, of approximately $3.4 million is excluded from both fixed charges and earnings.
THE HERTZ CORPORATION AND SUBSIDIARIES COMPUTATION OF CONSOLIDATED RATIO OF EARNINGS TO FIXED CHARGES (UNAUDITED) (In Thousands of Dollars Except Ratios)