UNITED RENTALS NORTH AMERICA INC - FORM 10-Q - EX-12.1 - COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES - April 19, 2011

Attached files

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EX-10.B - EMPLOYMENT AGREEMENT - UNITED RENTALS NORTH AMERICA INCdex10b.htm
EX-31.B - RULE 13A-14(A) CERTIFICATION BY CHIEF FINANCIAL OFFICER - UNITED RENTALS NORTH AMERICA INCdex31b.htm
EX-10.C - FOURTH AMENDMENT DATED AS OF APRIL 14, 2011 - UNITED RENTALS NORTH AMERICA INCdex10c.htm
EX-32.B - SECTION 1350 CERTIFICATION BY CHIEF FINANCIAL OFFICER - UNITED RENTALS NORTH AMERICA INCdex32b.htm
EX-32.A - SECTION 1350 CERTIFICATION BY CHIEF EXECUTIVE OFFICER - UNITED RENTALS NORTH AMERICA INCdex32a.htm
10-Q - FORM 10-Q - UNITED RENTALS NORTH AMERICA INCd10q.htm
EX-31.A - RULE 13A-14(A) CERTIFICATION BY CHIEF EXECUTIVE OFFICER - UNITED RENTALS NORTH AMERICA INCdex31a.htm
EX-10.A - FORM OF UNITED RENTALS, INC. 2010 LONG TERM INCENTIVE PLAN - 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,
2011		  
     2006     2007     2008     2009     2010    

Earnings:

             

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

      405        578        (813 )      (107 )      (63 )      (27 ) 

Add:

             

Fixed charges, net of capitalized interest

      289        251        277        288        279        66   

Total earnings available for fixed charges

      694        829        (536 )      181        216        39   

Fixed charges (1):

             

Interest expense, net

      208        187        174        226        255        56   

Add back interest income, which is netted in interest expense

      11        6        6        1        1        —     

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

      —          —          41        20        (28 )      (1 ) 

Interest expense – subordinated convertible debentures, net

      13        9        9        (4 )      8        2   

Capitalized interest

      1        2        1        1        —          —     

Interest component of rent expense

      53        49        47        45        43        9   

Interest expense – discontinued operation

      4        —          —          —          —          —     

Fixed charges

      290        253        278        289        279        66   

Ratio of earnings to fixed charges

      2.4 x      3.3 x      — (2)(3)      — (2)      — (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, 2011 and the years ended December 31, 2010, 2009 and 2008, the ratio coverage was less than 1:1 for these periods. We would have had to have generated additional earnings of $27, $63, $108, and $814 for the three months ended March 31, 2011 and 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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