Exhibit 12
Avis Budget Group, Inc.
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(Dollars in millions)
Year Ended December 31, | |||||||||||||||||||
2007 | 2006 | 2005 | 2004 | 2003 | |||||||||||||||
Earnings available to cover fixed charges: | |||||||||||||||||||
Income (loss) from continuing operations before | $ | (992 | ) | $ | (677 | ) | $ | (62 | ) | $ | 7 | $ | (263 | ) | |||||
Plus: Fixed charges | 556 | 693 | 569 | 607 | 644 | ||||||||||||||
Earnings available to cover fixed charges | $ | (436 | ) | $ | 16 | $ | 507 | $ | 614 | $ | 381 | ||||||||
Fixed charges: | |||||||||||||||||||
Interest, including amortization of deferred | $ | 497 | $ | 632 | $ | 512 | $ | 553 | $ | 595 | |||||||||
Interest portion of rental payment | 59 | 61 | 57 | 54 | 49 | ||||||||||||||
Total fixed charges | $ | 556 | $ | 693 | $ | 569 | 607 | $ | 644 | ||||||||||
Ratio of earnings to fixed charges(b) | - | - | - | 1.01x | - | ||||||||||||||
(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. Interest expense on all indebtedness is detailed as follows: |
Year Ended December 31, | |||||||||||||||
2007 | 2006 | 2005 | 2004 | 2003 | |||||||||||
Related to the debt under vehicle programs | $ | 356 | $ | 361 | $ | 313 | $ | 263 | $ | 270 | |||||
All other | 141 | 271 | 199 | 290 | 325 | ||||||||||
$ | 497 | $ | 632 | $ | 512 | $ | 553 | $ | 595 | ||||||
Does not include interest expense from discontinued operations of $87 million, $163 million, $371 million and $268 million for the years ended December 31, 2006, 2005, 2004 and 2003, respectively. |
(b) | Earnings were not sufficient to cover fixed charges in 2007, 2006, 2005 and 2003. |
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