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,
     2008     2007

Earnings before fixed charges:

    

Income (loss) from continuing operations before income taxes

   $ (18 )   $ 11

Plus: Fixed charges

     119       132
              

Earnings available to cover fixed charges

   $ 101     $ 143
              

Fixed charges:

    

Interest, including amortization of deferred financing costs (a)

   $ 104     $ 118

Interest portion of rental payment

     15       14
              

Total fixed charges

   $ 119     $ 132
              

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,
     2008    2007

Related to debt under vehicle programs

   $ 72    $ 83

All other

     32      35
             
   $ 104    $ 118
             

 

(b)

Earnings were not sufficient to cover fixed charges for the three months ended March 31, 2008.

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