EX-12 3 a2091645zex-12.htm EXHIBIT 12
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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.
(f): 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.