EXHIBIT 12 CENDANT CORPORATION AND SUBSIDIARIES COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES (DOLLARS IN MILLIONS) NINE MONTHS ENDED SEPTEMBER 30, 2000 ------------------ EARNINGS BEFORE FIXED CHARGES: Income before income taxes and minority interest $ 745 Plus: Fixed charges 348 Less: Equity income in unconsolidated affiliates 14 Minority interest 95 -------- Earnings available to cover fixed charges $ 984 ======== FIXED CHARGES (1): Interest, including amortization of deferred financing costs $ 211 Minority interest 95 Interest portion of rental payment 42 -------- Total fixed charges $ 348 ======== RATIO OF EARNINGS TO FIXED CHARGES (2) 2.83 ======== - -------------- (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 $90 million. Excluding such charges, the ratio of earnings to fixed charges is 3.09x. 37