Exhibit (12)
PHH CORPORATION AND SUBSIDIARIES
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(DOLLARS IN THOUSANDS)
Year Ended April 30
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1996 1995 1994 1993 1992
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Income from continuing operations
before income taxes $ 139,148 $ 121,318 $ 109,796 $ 94,238 $ 83,117
Add:
Interest expense 252,966 194,196 162,108 193,935 237,058
Interest portion of rentals* 7,840 8,065 9,088 8,456 8,665
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Earnings available for fixed charges $ 399,954 $ 323,579 $ 280,992 $ 296,629 $ 328,840
============ ============ ============ ============ ============
Fixed charges:
Interest expense $ 252,966 $ 194,196 $ 162,108 $ 193,935 $ 237,058
Interest portion of rentals* 7,840 8,065 9,088 8,456 8,665
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$ 260,806 $ 202,261 $ 171,196 $ 202,391 $ 245,723
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Ratio of earnings to fixed charges 1.53 1.60 1.64 1.47 1.34
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*Amounts reflect a one-third portion of rentals, the portion deemed
representative of the interest factor.
Note: The interest included in fixed charges consists of the amounts identified
as interest expense in the Consolidated Statements of Income, the
substantial portion of which represents interest on debt incurred to
finance leasing activities and mortgage banking activities, as well as
the interest costs associated with home relocation services which are
ordinarily recovered through direct billings to clients and are included
with "Costs, including interest, of carrying and reselling homes" in the
Consolidated Financial Statements.
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