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Exhibit 12
Cendant Corporation and Subsidiaries
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(Dollars in millions)
| Nine Months Ended September 30, | |||||||
---|---|---|---|---|---|---|---|---|
| 2002 | 2001 | ||||||
Earnings before fixed charges: | ||||||||
Income before income taxes, minority interest and equity in Homestore.com | $ | 1,277 | $ | 1,172 | ||||
Plus: Fixed charges | 628 | 696 | ||||||
Less: Equity loss in unconsolidated affiliates | — | (5 | ) | |||||
Minority interest | 24 | 33 | ||||||
Earnings available to cover fixed charges | $ | 1,881 | $ | 1,840 | ||||
Fixed charges(a): | ||||||||
Interest, including amortization of deferred financing costs | $ | 538 | $ | 631 | ||||
Minority interest | 24 | 33 | ||||||
Interest portion of rental payment | 66 | 32 | ||||||
Total fixed charges | $ | 628 | $ | 696 | ||||
Ratio of earnings to fixed charges | 3.00x | (b) | 2.64x | (c) | ||||
- (a)
- Consists of interest expense on all indebtedness (including amortization of deferred financing costs and capitalized interest) and the portion of operating lease rental expense that is representative of the interest factor. Interest expense on all indebtedness is detailed as follows:
| September 30, | |||||
---|---|---|---|---|---|---|
| 2002 | 2001 | ||||
Incurred by the Company's PHH subsidiary | $ | 148 | $ | 208 | ||
Related to the debt under management and mortgage programs incurred by the Company's car rental subsidiary | 158 | 135 | ||||
All other | 232 | 288 |
- (b)
- Income before income taxes, minority interest and equity in Homestore.com includes other charges of $289 million. Excluding such amounts, the ratio of earnings to fixed charges is 3.46x.
- (f)
- Income before income taxes, minority interest and equity in Homestore.com includes a net gain on the dispositions of businesses of $435 million, partially offset by other charges of $299 million. Excluding such amounts, the ratio of earnings to fixed charges is 2.45x.
Cendant Corporation and Subsidiaries COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES (Dollars in millions)