EX-12.1 12 d237908dex121.htm STATEMENT RE: COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES Statement Re: Computation of Ratio of Earnings to Fixed Charges

Exhibit 12.1

Avis Budget Group, Inc.

COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

(Dollars in millions)

 

     Year Ended December 31,     Six Months Ended
June 30,
 
     2010      2009     2008     2007     2006     2011      2010  

Fixed charges (a) :

                

Interest, including amortization of deferred financing costs (b)

   $ 445       $ 343      $ 402      $ 497      $ 632      $ 236       $ 191   

Interest portion of rental payments

     65         65        62        59        61        34         33   
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

    

 

 

 

Total fixed charges

   $ 510       $ 408      $ 464      $ 556      $ 693      $ 270       $ 224   
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

    

 

 

 

Earnings available to cover fixed charges:

                

Income (loss) from continuing operations before income taxes (c)

   $ 72       $ (77   $ (1,343   $ (992   $ (677   $ 100       $ (37

Plus: Fixed charges (calculated above)

     510         408        464        556        693        270         224   
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

    

 

 

 

Earnings available to cover fixed charges

   $ 582       $ 331      $ (879   $ (436   $ 16      $ 370       $ 187   
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

    

 

 

 

Ratio of earnings to fixed charges (d)

     1.14x         —          —          —          —          1.4x         —     
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

    

 

 

 

 

(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.

(b) 

Does not include interest expense from discontinued operations of $87 million for the year ended December 31, 2006.

(c)

During 2009, 2008 and 2007, the Company recorded impairment charges of $33 million, $1,262 million and $1,195 million, respectively.

(d) 

Earnings were not sufficient to cover fixed charges in 2009, 2008, 2007, 2006 and for the six months ended June 30, 2010.

For the years ended December 31, 2009, 2008, 2007 and 2006, earnings were less than fixed charges by $77 million, $1,343 million, $992 million and $677 million, respectively. For the six months ended June 30, 2010, earnings were less than fixed charges by $37 million.