EXHIBIT 12
CENDANT CORPORATION AND SUBSIDIARIES
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(IN THOUSANDS)
NINE MONTHS
ENDED YEARS ENDED DECEMBER 31,
SEPTEMBER 30, ----------------------------------------------------------------------
1997 1996 1995 1994 1993 1992
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Income before income
taxes, minority interest
and extraordinary
loss (1) $ 747,230 $ 713,670 $ 503,332 $ 464,332 $ 365,930 $ 236,949
Plus: Fixed charges 304,720 345,421 302,539 238,212 206,031 240,103
Less: Capitalized interest -- (560) -- (246) (440) --
----------- ----------- ----------- ----------- ----------- -----------
Earnings available to
cover fixed charges $ 1,051,950 $ 1,058,531 $ 805,871 $ 702,298 $ 571,521 $ 477,052
=========== =========== =========== =========== =========== ===========
Fixed charges (1, 2):
Interest, including
amortization of
deferred loans costs $ 281,207 $ 317,127 $ 280,499 $ 219,417 $ 187,447 $ 226,350
Capitalized interest -- 560 -- 246 440 --
Interest portion of
rental payment 23,513 27,734 22,040 18,549 18,144 13,753
----------- ----------- ----------- ----------- ----------- -----------
Total fixed charges $ 304,720 $ 345,421 $ 302,539 $ 238,212 $ 206,031 $ 240,103
=========== =========== =========== =========== =========== ===========
Ratio of earnings to
fixed charges 3.45 3.06 2.66 2.95 2.77 1.99
=========== =========== =========== =========== =========== ===========
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(1) For years ended 1992 through 1995, information included for the Company and
PHH Corporation is based on the fiscal years ended January 31.
(2) 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 operation lease rentals).