EX-12 4 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)

 

     Six Months Ended
June 30,
     2009     2008

Earnings before fixed charges:

    

Income (loss) before income taxes

   $ (72   $ 7

Plus: Fixed charges

     200        228
              

Earnings available to cover fixed charges

   $ 128      $ 235
              

Fixed charges(a):

    

Interest, including amortization of deferred financing costs

   $ 168      $ 197

Interest portion of rental payment

     32        31
              

Total fixed charges

   $ 200      $ 228
              

Ratio of earnings to fixed charges (b)

     —          1.03x
              

 

(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:

 

     Six Months Ended
June 30,
     2009    2008

Related to debt under vehicle programs

   $ 90    $ 131

All other

     78      66
             
   $ 168    $ 197
             

 

(b)

Earnings were not sufficient to cover fixed charges for the six months ended June 30, 2009.

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