EXHIBIT 12 CENDANT CORPORATION AND SUBSIDIARIES COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES (DOLLARS IN MILLIONS) SIX MONTHS ENDED JUNE 30, 2000 ------------- EARNINGS BEFORE FIXED CHARGES: Income before income taxes and minority interest $ 515 Plus: Fixed charges 226 Less: Equity income in unconsolidated affiliates 6 Minority interest 60 ------ Earnings available to cover fixed charges $ 675 ====== FIXED CHARGES (1): Interest, including amortization of deferred financing costs $ 136 Minority interest 60 Interest portion of rental payment 30 ------ Total fixed charges $ 226 ====== RATIO OF EARNINGS TO FIXED CHARGES (2) 2.99x ====== - --------------- (1) Fixed charges include 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). (2) Income before income taxes and minority interest includes other charges of $83 million. Excluding such charges, the ratio of earnings to fixed charges is 3.35x.