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Previous: PHH CORP, 10-Q, EX-10.1, 2000-11-14 |
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<PAGE>
EXHIBIT 12
PHH CORPORATION AND SUBSIDIARIES
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(IN MILLIONS)
NINE MONTHS ENDED
SEPTEMBER 30, 2000
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EARNINGS BEFORE FIXED CHARGES:
Income before income taxes $ 211
Plus: Fixed charges 79
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Earnings available to cover fixed charges $ 290
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FIXED CHARGES (1):
Interest, including amortization of deferred
financing costs $ 71
Interest portion of rental payment 8
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Total fixed charges $ 79
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RATIO OF EARNINGS TO FIXED CHARGES 3.67x
=================
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(1) Fixed charges consist 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 (deemed to be
one-third of operating lease rentals). The substantial portion of interest
expense incurred on debt is used to finance the Company's mortgage services
and relocation services activities.
19
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