EXHIBIT 12
CENDANT CORPORATION AND SUBSIDIARIES
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES (1)
(Dollars in millions)
YEAR ENDED DECEMBER 31,
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1997 1996 1995 1994 1993
--------- ----------- --------- --------- ---------
Income before income taxes, minority
interest and extraordinary loss $294.7 $ 713.7 $503.3 $464.3 $365.9
Plus: Fixed charges 430.4 345.4 295.2 238.6 217.4
Less: Capitalized interest -- (.6) -- (.2) (.4)
--------- ----------- --------- --------- ---------
Earnings available to cover fixed charges $725.1 $1,058.5 $798.5 $702.7 $582.9
========= =========== ========= ========= =========
Fixed charges (2):
Interest, including amortization of deferred
loans costs $397.0 $ 317.1 $273.2 $219.8 $198.9
Capitalized interest -- .6 -- .2 .4
Interest portion of rental payment 33.4 27.7 22.0 18.6 18.1
--------- ----------- --------- --------- ---------
Total fixed charges $430.4 $ 345.4 $295.2 $238.6 $217.4
========= =========== ========= ========= =========
Ratio of earnings to fixed charges (3) 1.68x 3.06x 2.70x 2.95x 2.68x
========= =========== ========= ========= =========
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(1) For the years ended 1993 through 1995, information included for CUC
International Inc. 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 operating lease rentals).
(3) For the year ended December 31, 1997, income before income taxes
includes non-recurring merger-related costs and other unusual charges
in the amount of $1,147.9 million ($816.8 million after-tax). Excluding
such charges, the ratio of earnings to fixed charges is 4.34x.