EX-12 3 e08480exv12.htm EX-12: STATEMENT RE: COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES Exhibit 12
 

Exhibit 12

Cendant Corporation and Subsidiaries
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(Dollars in millions)

                     
        Three Months Ended  
        March 31,  
        2005     2004  
Earnings before fixed charges:
                
Income before income taxes and minority interest
   $ 179     $ 296  
Plus:  
Fixed charges
     197       244  
   
Amortization of capitalized interest
     1       2  
Less:  
Minority interest in pre-tax income of subsidiaries that have not incurred fixed charges
     –       6  
   
Capitalized interest
     1       1  
   
 
            
Earnings available to cover fixed charges
   $ 376     $ 535  
   
 
            
Fixed charges (a):
                
Interest, including amortization of deferred financing costs
   $ 160     $ 203  
Minority interest (pre-tax) in mandatorily redeemable preferred interest in a subsidiary
     –       6  
Interest portion of rental payment
     37       35  
   
 
            
Total fixed charges
   $ 197     $ 244  
   
 
            
Ratio of earnings to fixed charges
     1.91x       2.19x  
   
 
            
(a)  
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. Interest expense on all indebtedness is detailed as follows:
                 
    March 31,  
    2005     2004  
Related to the debt under management programs incurred by the Company’s vehicle rental business
   $ 63     $ 64  
All other
     97       139  

* * *