EX-12 6 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)

 

     Nine Months Ended
September 30,		  
     2009    2008  

Earnings before fixed charges:

      

Income (loss) before income taxes

    $ 11    $ (1,179 ) 

Plus: Fixed charges

      299      339   
               

Earnings available to cover fixed charges

    $ 310    $ (840 ) 
               

Fixed charges(a):

      

Interest, including amortization of deferred financing costs

    $ 250    $ 293   

Interest portion of rental payment

      49      46   
               

Total fixed charges

    $ 299    $ 339   
               

Ratio of earnings to fixed charges (b)

      1.04x      —     
               

 

(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:

 

     Nine Months Ended
September 30,
     2009    2008

Related to debt under vehicle programs

    $ 134    $ 194

All other

      116      99
             
   $ 250    $ 293
             

 

(b)

Earnings were not sufficient to cover fixed charges for the nine months ended September 30, 2008.

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