EX-12.1 3 dex121.htm STATEMENT RE: COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES Statement Re: Computation of Ratio of Earnings to Fixed Charges

Exhibit 12.1

Avis Budget Group, Inc.

COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

(Dollars in millions)

 

     Year Ended December 31,     Nine Months
Ended
September 30,
 
     2009     2008     2007     2006     2005     2010      2009  

Fixed charges (a):

               

Interest, including amortization of deferred financing costs (b)

   $ 343      $ 402      $ 497      $ 632      $ 512      $ 292       $ 250   

Interest portion of rental payments

     65        62        59        61        57        49         49   
                                                         

Total fixed charges

   $ 408      $ 464      $ 556      $ 693      $ 569      $ 341       $ 299   
                                                         

Earnings available to cover fixed charges:

               

Income/loss from continuing operations before income taxes (c)

   $ (77   $ (1,343   $ (992   $ (677   $ (62   $ 106       $ 11   

Plus: Fixed charges (calculated above)

     408        464        556        693        569        341         299   
                                                         

Earnings available to cover fixed charges

   $ 331      $ (879   $ (436     16      $ 507      $ 447       $ 310   
                                                         

Ratio of earnings to fixed charges (d)

     —          —          —          —          —          1.31x         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.

(b)

Does not include interest expense from discontinued operations of $87 million and $163 million for the years ended December 31, 2006 and 2005, respectively.

(c)

During 2009, 2008 and 2007, the Company recorded impairment charges of $33 million, $1,262 million and $1,195 million, respectively. In the nine months ended September 30, 2009 and 2008, the Company recorded an impairment charge of $1 million and $1.262 million, respectively.

(d)

Earnings were not sufficient to cover fixed charges in 2009, 2008, 2007, 2006, and 2005.