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<PAGE>
EXHIBIT 12
CENDANT CORPORATION AND SUBSIDIARIES
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(DOLLARS IN MILLIONS)
NINE MONTHS ENDED
SEPTEMBER 30, 2000
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EARNINGS BEFORE FIXED CHARGES:
Income before income taxes and minority interest $ 745
Plus: Fixed charges 348
Less: Equity income in unconsolidated affiliates 14
Minority interest 95
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Earnings available to cover fixed charges $ 984
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FIXED CHARGES (1):
Interest, including amortization of deferred
financing costs $ 211
Minority interest 95
Interest portion of rental payment 42
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Total fixed charges $ 348
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RATIO OF EARNINGS TO FIXED CHARGES (2) 2.83
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(1) Fixed charges include 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 (deemed
to be one-third of operating lease rentals).
(2) Income before income taxes and minority interest includes other charges of
$90 million. Excluding such charges, the ratio of earnings to fixed charges
is 3.09x.
37
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