UNITED RENTALS NORTH AMERICA INC - FORM 10-Q - EX-12.1 - COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES - April 21, 2010

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10-Q - FORM 10-Q - UNITED RENTALS NORTH AMERICA INCd10q.htm
EX-10.D - FORM OF UNITED RENTALS, INC. STOCK OPTION AGREEMENT - UNITED RENTALS NORTH AMERICA INCdex10d.htm
EX-10.C - GOTTSEGEN EMPLOYMENT AGREEMENT, FIRST AMENDMENT - UNITED RENTALS NORTH AMERICA INCdex10c.htm
EX-10.B - FLANNERY EMPLOYMENT AGREEMENT - UNITED RENTALS NORTH AMERICA INCdex10b.htm
EX-10.E - FORM OF UNITED RENTALS, INC. RESTRICTED STOCK UNIT AGREEMENT - UNITED RENTALS NORTH AMERICA INCdex10e.htm
EX-31.B - RULE 13A-14(A) CERTIFICATION BY CHIEF FINANCIAL OFFICER - UNITED RENTALS NORTH AMERICA INCdex31b.htm
EX-32.A - SECTION 1350 CERTIFICATION BY CHIEF EXECUTIVE OFFICER - UNITED RENTALS NORTH AMERICA INCdex32a.htm
EX-32.B - SECTION 1350 CERTIFICATION BY CHIEF FINANCIAL OFFICER - UNITED RENTALS NORTH AMERICA INCdex32b.htm
EX-31.A - RULE 13A-14(A) CERTIFICATION BY CHIEF EXECUTIVE OFFICER - UNITED RENTALS NORTH AMERICA INCdex31a.htm
EX-10.A - DIXON EMPLOYMENT AGREEMENT - UNITED RENTALS NORTH AMERICA INCdex10a.htm

Exhibit 12.1

COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

(In millions, except ratios)

 

     Year Ended December 31,     Three Months
Ended March 31,
2010		  
     2005     2006     2007     2008     2009        

Earnings:

             

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

    331      405      578      (813 )    (107 )    (64 ) 

Add:

             

Fixed charges, net of capitalized interest

    262      289     251      277     288      70   

Total earnings available for fixed charges

    593      694      829      (536 )    181      6   

Fixed charges (1):

             

Interest expense, net

    181      208      187      174      226      61   

Add back interest income, which is netted in interest expense

    8      11      6      6      1      —     

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

    —        —        —        41      20      (4 ) 

Interest expense – subordinated convertible debentures, net

    14      13      9      9      (4 )    2   

Capitalized interest

    1      1      2      1      1      —     

Interest component of rent expense

    55      53      49      47      45      11   

Interest expense – discontinued operation

    4      4      —        —        —        —     

Fixed charges

    263      290      253      278      289      70   

Ratio of earnings to fixed charges

    2.3 x    2.4 x    3.3 x    — (2)(3)    — (2)    — (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 is determined based on an estimate of a reasonable interest factor at the inception of the leases.
(2) Due to our losses for the three months ended March 31, 2010 and the years ended December 31, 2009 and 2008, the ratio coverage was less than 1:1 for these periods. We would have had to have generated additional earnings of $64, $108, and $814 for the three months ended March 31, 2010 and 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