EXHIBIT 12
PHH Corporation and Subsidiaries
Computation of Ratio of Earnings to Fixed Charges
(In millions)
Three Months Ended March 31,
1999 1998
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Income before income taxes $ 80.7 $ 98.2
Plus: Fixed charges 85.1 88.4
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Earnings available to cover fixed charges $ 165.8 $ 186.6
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Fixed charges (1):
Interest, including amortization of deferred
financing costs 80.8 85.4
Interest portion of rental payment 4.3 3.0
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Total fixed charges $ 85.1 $ 88.4
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Ratio of earnings to fixed charges 1.95x 2.11x
(1) Fixed charges consist 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
(deemed to be one-third of operating lease rentals). The substantial
portion of interest expense incurred on debt is used to finance the
Company's fleet leasing, mortgage services and relocation services
activities.