EX-12 2 dex12.htm COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES 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)

 

     Nine Months Ended
September 30,		  
     2007     2006  

Earnings before fixed charges:

     

Income (loss) from continuing operations before income taxes

    $ 162     $ (669 )

Plus: Fixed charges

      420       566  
                

Earnings available to cover fixed charges

    $ 582     $ (103 )
                

Fixed charges (a):

     

Interest, including amortization of deferred financing costs (b)

    $ 376     $ 519  

Interest portion of rental payment

      44       47  
                

Total fixed charges

    $ 420     $ 566  
                

Ratio of earnings to fixed charges (c)

     1.39 x     —    
                

(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:

         

     Nine Months Ended
September 30,		  
     2007     2006  

Related to debt under vehicle programs

    $ 270     $ 282  

All other

      106       237  
                
   $ 376     $ 519  
                

 

 

(b)

Does not include interest expense from discontinued operations of $73 million for the nine months ended September 30, 2006.

 
 

(c)

Earnings were not sufficient to cover fixed charges for the nine months ended September 30, 2006.

 

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