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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, | ||||||
---|---|---|---|---|---|---|---|
| 2003 | 2002 | |||||
Earnings before fixed charges: | |||||||
Income before income taxes and minority interest | $ | 1,790 | $ | 1,234 | |||
Plus: Fixed charges | 824 | 614 | |||||
Less: Minority interest (pretax) in mandatorily redeemable preferred interest in a subsidiary | 6 | 10 | |||||
Minority interest in pretax income of subsidiaries that have not incurred fixed charges | 18 | 14 | |||||
Earnings available to cover fixed charges | $ | 2,590 | $ | 1,824 | |||
Fixed charges(*): | |||||||
Interest, including amortization of deferred financing costs | $ | 716 | $ | 538 | |||
Minority interest (pretax) in mandatorily redeemable preferred interest in a subsidiary | 6 | 10 | |||||
Interest portion of rental payment | 102 | 66 | |||||
Total fixed charges | $ | 824 | $ | 614 | |||
Ratio of earnings to fixed charges | $ | 3.14 | x | $ | 2.97 | x | |
- (*)
- 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, | ||||||
---|---|---|---|---|---|---|---|---|
| | 2003 | 2002 | |||||
Incurred by the Company's PHH subsidiary | $ | 256 | $ | 148 | ||||
Related to the debt under management and mortgage programs incurred by the Company's vehicle rental subsidiaries | 201 | 158 | ||||||
All other | 259 | 232 |
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Cendant Corporation and Subsidiaries COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES (Dollars in millions)