Exhibit 12
Cendant Corporation and Subsidiaries
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(Dollars in millions)
Three Months Ended
March 31,
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2001 2000
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Earnings before fixed charges:
Income before income taxes, minority interest and equity in Homestore.com $ 513 $ 220
Plus: Fixed charges 201 109
Less: Equity loss in unconsolidated affiliates (3) --
Minority interest 22 25
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Earnings available to cover fixed charges $ 695 $ 304
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Fixed charges (1):
Interest, including amortization of deferred
financing costs $ 165 $ 69
Minority interest 22 25
Interest portion of rental payment 14 15
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Total fixed charges $ 201 $ 109
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Ratio of earnings to fixed charges $3.46(2) $2.79(3)
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(1) Fixed charges consist of interest expense on all indebtedness (including
amortization of deferred financing costs and capitalized interest) and the
portion of operating lease rental expense that is representative of the
interest factor.
(2) Income before income taxes, minority interest and equity in Homestore.com
includes a net gain on the dispositions of businesses of $435 million,
partially offset by other charges of $204 million. Excluding such amounts,
the ratio of earnings to fixed charges is 2.31x.
(3) Income before income taxes, minority interest and equity in Homestore.com
includes net restructuring charges of $106 million and a net loss on the
dispositions of businesses of $13 million, partially offset by litigation
related credits of $38 million. Excluding such amounts, the ratio of
earnings to fixed charges is 3.53x.