Avis 2010 Annual Report Download - page 669

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
:
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
1.14x
—
—
—
—
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
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.
(a)
(b)
(a)
(b)