UNITED RENTALS NORTH AMERICA INC - FORM 10-K - EX-12 - COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES - February 3, 2010

Attached files

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10-K - FORM 10-K - UNITED RENTALS NORTH AMERICA INCd10k.htm
EX-10.(KK) - INCREMENTAL ASSUMPTION AGREEMENT, DATED AS OF DECEMBER 2, 2009 - UNITED RENTALS NORTH AMERICA INCdex10kk.htm
EX-10.(NN) - SECOND AMENDMENT DATED AS OF NOVEMBER 5, 2009 - UNITED RENTALS NORTH AMERICA INCdex10nn.htm
EX-23 - CONSENT OF ERNST & YOUNG LLP - UNITED RENTALS NORTH AMERICA INCdex23.htm
EX-21 - SUBSIDIARIES OF UNITED RENTALS, INC. - UNITED RENTALS NORTH AMERICA INCdex21.htm
EX-32.(B) - SECTION 1350 CERTIFICATION BY CHIEF FINANCIAL OFFICER - UNITED RENTALS NORTH AMERICA INCdex32b.htm
EX-31.(B) - RULE 13A-14(A) CERTIFICATION BY CHIEF FINANCIAL OFFICER - UNITED RENTALS NORTH AMERICA INCdex31b.htm
EX-31.(A) - RULE 13A-14(A) CERTIFICATION BY CHIEF EXECUTIVE OFFICER - UNITED RENTALS NORTH AMERICA INCdex31a.htm
EX-32.(A) - SECTION 1350 CERTIFICATION BY CHIEF EXECUTIVE OFFICER - UNITED RENTALS NORTH AMERICA INCdex32a.htm
EX-10.(GG) - FORM OF INDEMNIFICATION AGREEMENT FOR EXECUTIVE OFFICERS AND DIRECTORS - UNITED RENTALS NORTH AMERICA INCdex10gg.htm

Exhibit 12

COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

(In millions, except ratios)

 

       Year Ended December 31,  
       2005      2006      2007      2008     2009  

Earnings:

                      

Income (loss) from continuing operations before provision (benefit) for income taxes

      331      405      578      (813 )    (107 ) 

Add:

                      

Fixed charges, net of capitalized interest

      262      289      251      277     288   

Total earnings available for fixed charges

      593      694      829      (536 )    181   

Fixed charges (1):

                      

Interest expense, net

      181      208      187      174      226   

Add back interest income, which is netted in interest expense

      8      11      6      6      1   

Add back refinance charges/gains (losses) on bond repurchases/retirement of subordinated convertible debentures, included in interest expense

      —        —        —        41      20   

Interest expense—subordinated convertible debentures, net

      14      13      9      9      (4 ) 

Capitalized interest

      1      1      2      1      1   

Interest component of rent expense

      55      53      49      47      45   

Interest expense—discontinued operation

      4      4      —        —        —     

Fixed charges

      263      290      253      278      289   

Ratio of earnings to fixed charges

      2.3x      2.4x      3.3x      —   (2)(3)    —   (2) 

 

(1) Fixed charges consist of interest expense, which includes amortization of deferred finance charges, interest expense-subordinated debentures, capitalized interest and imputed interest on our lease obligations. The interest component of rent was determined based on an estimate of a reasonable interest factor at the inception of the leases.
(2) Due to our losses for the years ended December 31, 2009 and 2008, the ratio coverage was less than 1:1 for these years. We would have had to have generated additional earnings of $108 and $814 for the years ended December 31, 2009 and 2008, respectively, to have achieved coverage ratios of 1:1.
(3) The loss for the year ended December 31, 2008 includes the effect of an $1,147 pretax non-cash goodwill impairment charge. The effect of this charge was to reduce the ratio of earnings to fixed charges. Had this charge been excluded from the calculation, the ratio of earnings to fixed charges would have been 2.2x for the year ended December 31, 2008.

UNITED RENTALS NORTH AMERICA INC Reports

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