EX-12 2 e29143a1exv12.htm EX-12: COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES EX-12
 

Exhibit 12
Avis Budget Group, Inc.
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(Dollars in millions)
                                         
    Year Ended December 31,
     
    2005   2004   2003   2002   2001
                     
Earnings available to cover fixed charges:
                                       
Income (loss) from continuing operations before income taxes
  $ (62 )   $ 7     $ (263 )   $ (375 )   $ (745 )
Plus: Fixed charges
    569       607       644       543       577  
                               
Earnings available to cover fixed charges
  $ 507     $ 614     $ 381     $ 168     $ (168 )
                               
Fixed charges (a):
                                       
Interest, including amortization of deferred financing costs (b)
  $ 512     $ 553     $ 595     $ 513     $ 556  
Interest portion of rental payment
    57       54       49       30       21  
                               
Total fixed charges
  $ 569     $ 607     $ 644     $ 543     $ 577  
                               
Ratio of earnings to fixed charges (c)
    -       1.01 x     -       -       -  
                               
 
(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:
                                           
    Year Ended December 31,
     
    2005   2004   2003   2002   2001
                     
Related to the debt under vehicle programs
  $ 313     $ 263     $ 270     $ 213     $ 189  
All other
    199       290       325       300       367  
                               
    $ 512     $ 553     $ 595     $ 513     $ 556  
                               
(b) Does not include interest expense from discontinued operations of $163 million, $371 million, $268 million, $227 million and $157 million for the years ended December 31, 2005, 2004, 2003, 2002 and 2001, respectively.
 
(c) Earnings were not sufficient to cover fixed charges in 2005, 2003, 2002 and 2001.
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