EX-12 2 dex12.htm STATEMENT RE: COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES Statement Re: Computation of Ratio of Earnings to Fixed Charges

Exhibit 12

Avis Budget Group, Inc.

COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

(Dollars in millions)

 

     Three Months Ended
March 31,		  
     2007    2006  

Earnings before fixed charges:

      

Income (loss) from continuing operations before income taxes

    $ 11    $ (98 )

Plus: Fixed charges

      132      182  
               

Earnings available to cover fixed charges

    $ 143    $ 84  
               

Fixed charges (a):

      

Interest, including amortization of deferred financing costs (b)

    $ 118    $ 166  

Interest portion of rental payment

      14      16  
               

Total fixed charges

    $ 132    $ 182  
               

Ratio of earnings to fixed charges (c)

      1.1x      —  
               

(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:

 

     Three Months Ended
March 31,
     2007    2006

Related to debt under vehicle programs

    $ 83    $ 97

All other

      35      69
             
   $ 118    $ 166
             

 

(b)

Does not include interest expense from discontinued operations of $42 million for the three months ended March 31, 2006.

(c)

Earnings were not sufficient to cover fixed charges for the three months ended March 31, 2006.

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