EX-12 4 0004.txt COMPUTATION OF RATIO OF EARNINGS Exhibit 12 Cendant Corporation and Subsidiaries COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES (Dollars in millions)
Three Months Ended March 31, ------------------ 2001 2000 ----- ---- Earnings before fixed charges: Income before income taxes, minority interest and equity in Homestore.com $ 474 $193 Plus: Fixed charges 199 107 Less: Equity income in unconsolidated affiliates (3) -- Minority interest 22 25 ----- ---- Earnings available to cover fixed charges $ 655 $275 ===== ==== Fixed charges (1): Interest, including amortization of deferred financing costs $ 165 $ 68 Minority interest 22 25 Interest portion of rental payment 13 14 ----- ---- Total fixed charges $ 199 $107 ===== ==== Ratio of earnings to fixed charges $3.28 (2) $2.56 (3) ===== ====
---------- (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 $205 million. Excluding such amounts, the ratio of earnings to fixed charges is 2.14x. (3) Income before income taxes, minority interest and equity in Homestore.com includes net restructuring charges of $86 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 3.13x.