EX-12 10 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)

 

     Year Ended December 31,  
     2010      2009     2008     2007     2006  

Earnings available to cover fixed charges:

            

Income (loss) from continuing operations before income taxes

    $ 72       $ (77 )    $ (1,343 )    $ (992 )    $ (677 ) 

Plus: Fixed charges

      510         408        464        556        693   
                                         

Earnings available to cover fixed charges

    $ 582       $ 331      $ (879 )    $ (436 )    $ 16   
                                         

Fixed charges (a) :

            

Interest, including amortization of deferred financing costs

    $ 445       $ 343      $ 402      $ 497      $ 632   

Interest portion of rental payment

      65         65        62        59        61   
                                         

Total fixed charges

    $ 510       $ 408      $ 464      $ 556        693   
                                         

Ratio of earnings to fixed charges (b)

      1.14x         —          —          —          —     
                                         

 

(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. Does not include interest expense from discontinued operations of $87 million in 2006 and does include early extinguishment of debt expense of $52 million in 2010. Interest expense on all indebtedness is detailed as follows:

 

     Year Ended December 31,  
     2010      2009      2008      2007      2006  

Related to debt under vehicle programs

    $ 215       $ 186       $ 266       $ 356       $ 361   

All other

      230         157         136         141         271   
                                            
   $ 445       $ 343       $ 402       $ 497       $ 632   

 

(b)

Earnings were not sufficient to cover fixed charges in 2009, 2008, 2007 and 2006 by $77 million, $1,343 million, $992 million and $677 million, respectively.

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