EXHIBIT 12
CENDANT CORPORATION AND SUBSIDIARIES
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(DOLLARS IN MILLIONS)
<Table>
<Caption>
NINE MONTHS ENDED
SEPTEMBER 30,
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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 $ 1,246 $ 852
Plus: Fixed charges 711 400
Less: Equity income (loss) in unconsolidated affiliates (5) 14
Minority interest 33 95
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Earnings available to cover fixed charges $ 1,929 $ 1,143
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FIXED CHARGES (1):
Interest, including amortization of deferred financing costs $ 633(2) $ 259(3)
Minority interest 33 95
Interest portion of rental payment 45 46
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Total fixed charges $ 711 $ 400
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RATIO OF EARNINGS TO FIXED CHARGES $ 2.71x(4) $ 2.86x(5)
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</Table>
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(1) Consists 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) Consists of interest expense incurred by the Company's PHH subsidiary
($225 million), related to the Company's stockholder litigation settlement
liability ($105 million) and all other ($303 million).
(3) Consists of interest expense incurred by the Company's PHH subsidiary
($117 million), related to the Company's stockholder litigation settlement
liability ($20 million) and all other ($122 million).
(4) 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 $299 million. Excluding such amounts,
the ratio of earnings to fixed charges is 2.52x.
(5) Income before income taxes, minority interest and equity in Homestore.com
includes other charges of $103 million and a net loss on the dispositions
of businesses of $7 million. Excluding such amounts, the ratio of earnings
to fixed charges is 3.13x.