UNITED RENTALS NORTH AMERICA INC - FORM 10-K - EX-12 - COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES - January 25, 2012

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EX-21 - SUBSIDIARIES OF UNITED RENTALS, INC. - UNITED RENTALS NORTH AMERICA INCuri-2011123110kex21.htm
EX-23 - CONSENT OF ERNST & YOUNG LLP - UNITED RENTALS NORTH AMERICA INCuri-2011123110kex23.htm
EX-31.A - RULE 13A-14(A) CERTIFICATION BY CHIEF EXECUTIVE OFFICER - UNITED RENTALS NORTH AMERICA INCuri-2011123110kex31a.htm
EX-32.A - SECTION 1350 CERTIFICATION BY CHIEF EXECUTIVE OFFICER - UNITED RENTALS NORTH AMERICA INCuri-2011123110kex32a.htm
EX-31.B - RULE 13A-14(A) CERTIFICATION BY CHIEF FINANCIAL OFFICER - UNITED RENTALS NORTH AMERICA INCuri-2011123110kex31b.htm
EX-10.HH - THIRD AMENDMENT, DATED AS OF DECEMBER 22, 2011, TO THE EMPLOYMENT AGREEMENT BETWEEN UNITED RENTALS, INC. AND WILLIAM B. PLUMMER - UNITED RENTALS NORTH AMERICA INCuri-2011123110kex10hh.htm
EX-10.MM - SEVERANCE AGREEMENT AND GENERAL RELEASE, EFFECTIVE AS OF DECEMBER 7, 2011, BETWEEN UNITED RENTALS, INC. AND KEN DEWITT - UNITED RENTALS NORTH AMERICA INCuri-2011123110kex10mm.htm
10-K - FORM 10-K - UNITED RENTALS NORTH AMERICA INCuri-2011123110k.htm
EX-32.B - SECTION 1350 CERTIFICATION BY CHIEF FINANCIAL OFFICER - UNITED RENTALS NORTH AMERICA INCuri-2011123110kex32b.htm
Exhibit 12
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(In millions, except ratios)
 
 
Year Ended December 31, 
 
 
2007 
 
2008 
 
2009 
 
2010 
2011 
 
Earnings:
 
 
 
 
 
Income (loss) from continuing operations before provision (benefit) for
income taxes
$
578

$
(813
)
$
(107
)
$
(63
)
$
164

Add:
 
 
 
 
 
Fixed charges, net of capitalized interest
251
277
288
279
271

Total earnings available for fixed charges
829

(536
)
181

216

435

Fixed charges (1):
 
 
 
 
 
Interest expense, net
187
174
226
255
228

Add back interest income, which is netted in interest expense
6
6
1
1
1

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

41
20
(28
)
(5
)
Interest expense—subordinated convertible debentures, net
9
9
(4
)
8
7

Capitalized interest
2
1
1
—

—

Interest component of rent expense
49
47
45
43
40

Fixed charges
$
253

$
278

$
289

$
279

$
271

Ratio of earnings to fixed charges
3.3x

 —(2)(3)

       —  (2)

—  (2)

1.6x

 
_________________
(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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