UNITED RENTALS NORTH AMERICA INC - FORM 10-K - EX-12 - COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES - February 1, 2011

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10-K - FORM 10-K - UNITED RENTALS NORTH AMERICA INCd10k.htm
EX-21 - SUBSIDIARIES OF UNITED RENTALS, INC. - UNITED RENTALS NORTH AMERICA INCdex21.htm
EX-23 - CONSENT OF ERNST & YOUNG LLP - UNITED RENTALS NORTH AMERICA INCdex23.htm
EX-31.(B) - RULE 13A-14(A) CERTIFICATION BY CHIEF FINANCIAL OFFICER - UNITED RENTALS NORTH AMERICA INCdex31b.htm
EX-10.(J) - AMENDMENT NUMBER ONE TO THE UNITED RENTALS, INC. ANNUAL INCENTIVE PLAN - UNITED RENTALS NORTH AMERICA INCdex10j.htm
EX-10.(F) - AMENDMENT NUMBER ONE TO THE UNITED RENTALS, INC. DEFERRED COMPENSATION PLAN - UNITED RENTALS NORTH AMERICA INCdex10f.htm
EX-4.(FF) - SUPPLEMENTAL INDENTURE, DATED AS OF DECEMBER 1, 2010 - UNITED RENTALS NORTH AMERICA INCdex4ff.htm
EX-10.(P) - AMENDMENT NUMBER ONE TO THE UNITED RENTALS, INC. RESTRICTED STOCK UNIT DEFERRAL - UNITED RENTALS NORTH AMERICA INCdex10p.htm
EX-32.(A) - SECTION 1350 CERTIFICATION BY CHIEF EXECUTIVE OFFICER - UNITED RENTALS NORTH AMERICA INCdex32a.htm
EX-10.(H) - AMENDMENT NUMBER ONE TO THE UNITED RENTALS, INC. DEFERRED COMPENSATION PLAN - UNITED RENTALS NORTH AMERICA INCdex10h.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.(PP) - FIRST AMENDMENT, EFFECTIVE AS OF MAY 11, 2008, TO THE EMPLOYMENT AGREEMENT - UNITED RENTALS NORTH AMERICA INCdex10pp.htm
EX-10.(GG) - SECOND AMENDMENT, EFFECTIVE AS OF DECEMBER 1, 2008, TO THE EMPLOYMENT AGREEMENT - UNITED RENTALS NORTH AMERICA INCdex10gg.htm
EX-10.(KK) - FIRST AMENDMENT, EFFECTIVE AS OF SEPTEMBER 3, 2008, TO THE EMPLOYMENT AGREEMENT - UNITED RENTALS NORTH AMERICA INCdex10kk.htm
EX-10.(RR) - FIRST AMENDMENT, EFFECTIVE AS OF MARCH 12, 2010, TO THE EMPLOYMENT AGREEMENT - UNITED RENTALS NORTH AMERICA INCdex10rr.htm
EX-10.(NN) - SECOND AMENDMENT, EFFECTIVE AS OF FEBRUARY 2, 2009, TO THE EMPLOYMENT AGREEMENT - UNITED RENTALS NORTH AMERICA INCdex10nn.htm
EX-10.(II) - FIRST AMENDMENT, EFFECTIVE AS OF AUGUST 30, 2006, TO THE EMPLOYMENT AGREEMENT - UNITED RENTALS NORTH AMERICA INCdex10ii.htm
EX-10.(DD) - FOURTH AMENDMENT, EFFECTIVE AS OF AUGUST 22, 2008, TO THE EMPLOYMENT AGREEMENT - UNITED RENTALS NORTH AMERICA INCdex10dd.htm

Exhibit 12

COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

(In millions, except ratios)

 

       Year Ended December 31,  
       2006        2007        2008     2009     2010  

Earnings:

                   

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

      $ 405         $ 578         $ (813 )    $ (107 )    $ (63 ) 

Add:

                   

Fixed charges, net of capitalized interest

        289           251           277        288        279   

Total earnings available for fixed charges

        694           829           (536 )      181        216   

Fixed charges (1):

                   

Interest expense, net

        208           187           174        226        255   

Add back interest income, which is netted in interest expense

        11           6           6        1        1   

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

        —             —             41        20        (28 ) 

Interest expense—subordinated convertible debentures, net

        13           9           9        (4 )      8   

Capitalized interest

        1           2           1        1        —     

Interest component of rent expense

        53           49           47        45        43   

Interest expense—discontinued operation

        4           —             —          —          —     

Fixed charges

      $ 290         $ 253         $ 278      $ 289      $ 279   

Ratio of earnings to fixed charges

        2.4x           3.3x           —   (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 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, 2010, 2009 and 2008, the ratio coverage was less than 1:1 for these years. We would have had to have generated additional earnings of $63, $108 and $814 for the years ended December 31, 2010, 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.

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