EX-12 5 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,
 
     2011      2010  

Earnings before fixed charges:

     

Income (loss) before income taxes

   $ 11       $ (66

Plus: Fixed charges

     134         112   
                 

Earnings available to cover fixed charges

   $ 145       $ 46   
                 

Fixed charges(a):

     

Interest, including amortization of deferred financing costs

   $ 117       $ 95   

Interest portion of rental payment

     17         17   
                 

Total fixed charges

   $ 134       $ 112   
                 

Ratio of earnings to fixed charges (b)

     1.1x         —     
                 

 

(a) 

Consists of interest expense on all indebtedness (including amortization of deferred financing costs) 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,
 
     2011      2010  

Related to debt under vehicle programs

   $ 66       $ 54   

All other

     51         41   
                 
   $ 117       $ 95   
                 

 

(b) 

Earnings were not sufficient to cover fixed charges for the three months ended March 31, 2010 by $66 million.

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