EXHIBIT 12
PHH CORPORATION AND SUBSIDIARIES
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(DOLLARS IN MILLIONS)
THREE MONTHS ENDED
MARCH 31,
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2002 2001
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EARNINGS BEFORE FIXED CHARGES:
Income before income taxes and minority interest $ 72 $ 125
Plus: Fixed charges 53 62
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Earnings available to cover fixed charges $ 125 $ 187
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FIXED CHARGES (1):
Interest, including amortization of deferred financing costs $ 50 $ 59
Interest portion of rental payment 3 3
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Total fixed charges $ 53 $ 62
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RATIO OF EARNINGS TO FIXED CHARGES $ 2.35x $ 3.03x
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(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 on the operating lease rentals).
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