1 EXHIBIT 12 THE HERTZ CORPORATION AND SUBSIDIARIES COMPUTATION OF CONSOLIDATED RATIO OF EARNINGS TO FIXED CHARGES (UNAUDITED) Years Ended December 31, ---------------------------------------------------------- 1999 1998 1997 1996 1995 ---------- -------- -------- -------- -------- (In Thousands of Dollars Except Ratios) Income before income taxes............... $ 560,393 $465,392 $343,270 $256,569 $172,344 Interest expense......................... 353,516 317,756 316,038 309,249 323,871 Portion of rent estimated to represent the interest factor.................... 90,463 78,435 72,752 69,188 75,874 ---------- -------- -------- -------- -------- Earnings before income taxes and fixed charges................................ $1,004,372 $861,583 $732,060 $635,006 $572,089 ========== ======== ======== ======== ======== Interest expense (including capitalized interest).............................. $ 355,309 $318,967 $316,536 $309,843 $325,021 Portion of rent estimated to represent the interest factor.................... 90,463 78,435 72,752 69,188 75,874 ---------- -------- -------- -------- -------- Fixed charges............................ $ 445,772 $397,402 $389,288 $379,031 $400,895 ========== ======== ======== ======== ======== Ratio of earnings to fixed charges....... 2.3 2.2 1.9 1.7 1.4 ========== ======== ======== ======== ========