EX-12 3 a2096741zex-12.txt EXHIBIT 12 EXHIBIT 12 CENDANT CORPORATION AND SUBSIDIARIES COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES (DOLLARS IN MILLIONS)
NINE MONTHS ENDED SEPTEMBER 30, ------------------------ 2002 2001 ------- ------- EARNINGS BEFORE FIXED CHARGES: Income before income taxes, minority interest and equity in Homestore.com $ 1,277 $ 1,172 Plus: Fixed charges 628 696 Less: Equity loss in unconsolidated affiliates -- (5) Minority interest 24 33 ------- ------- Earnings available to cover fixed charges $ 1,881 $ 1,840 ======= ======= FIXED CHARGES (A): Interest, including amortization of deferred financing costs $ 538 $ 631 Minority interest 24 33 Interest portion of rental payment 66 32 ------- ------- Total fixed charges $ 628 $ 696 ======= ======= RATIO OF EARNINGS TO FIXED CHARGES 3.00x(b) 2.64x(c) ======= =======
---------- (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:
SEPTEMBER 30, ------------------------ 2002 2001 ------- ------- Incurred by the Company's PHH subsidiary $ 148 $ 208 Related to the debt under management and mortgage programs incurred by the Company's car rental subsidiary 158 135 All other 232 288
(b) Income before income taxes, minority interest and equity in Homestore.com includes other charges of $289 million. Excluding such amounts, the ratio of earnings to fixed charges is 3.46x. (c) 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 2.45x. ****