EXHIBIT 12
THE HERTZ CORPORATION AND SUBSIDIARIES
CONSOLIDATED COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(In Thousands of Dollars Except Ratios)
Unaudited
|
| Six Months Ended |
| ||||
|
| 2007 |
| 2006 |
| ||
Income (loss) before income taxes and minority interest |
| $ | 52,425 |
| $ | (6,027 | ) |
Interest expense |
| 441,369 |
| 439,136 |
| ||
Portion of rent estimated to represent the interest factor |
| 78,431 |
| 71,144 |
| ||
Earnings before income taxes, minority interest and fixed charges(a) |
| $ | 572,225 |
| $ | 504,253 |
|
Interest expense (including capitalized interest) |
| $ | 444,050 |
| $ | 442,544 |
|
Portion of rent estimated to represent the interest factor |
| 78,431 |
| 71,144 |
| ||
Fixed charges(a) |
| $ | 522,481 |
| $ | 513,688 |
|
Ratio of earnings to fixed charges |
| 1.1 |
| (b) |
| ||
(a) 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 of approximately $1 million is excluded from both fixed charges and earnings.
(b) Earnings before income taxes, minority interest and fixed charges for the six months ended June 30, 2006 were inadequate to cover fixed charges by $9.4 million.