Attached files
| file | filename |
|---|---|
| EX-23 - EXHIBIT 23 - PHH CORP | ex-2320151231.htm |
| EX-21 - EXHIBIT 21 - PHH CORP | ex-2120151231.htm |
| EX-3.1 - EXHIBIT 3.1 - PHH CORP | ex-3120151231.htm |
| EX-3.2 - EXHIBIT 3.2 - PHH CORP | ex-3220151231.htm |
| EX-32.2 - EXHIBIT 32.2 - PHH CORP | ex-32220151231.htm |
| EX-31.1 - EXHIBIT 31.1 - PHH CORP | ex-31120151231.htm |
| EX-32.1 - EXHIBIT 32.1 - PHH CORP | ex-32120151231.htm |
| EX-31.2 - EXHIBIT 31.2 - PHH CORP | ex-31220151231.htm |
| 10-K - 10-K - PHH CORP | phh2015123110-k.htm |
Exhibit 12
PHH CORPORATION AND SUBSIDIARIES
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
($ in millions, except ratios)
Year Ended December 31, | |||||||||||||||||||
2015 | 2014 | 2013 | 2012 | 2011 | |||||||||||||||
Earnings available to cover fixed charges: | |||||||||||||||||||
(Loss) income from continuing operations before income taxes | $ | (213 | ) | $ | (284 | ) | $ | 140 | $ | (14 | ) | $ | (289 | ) | |||||
Adjustments for equity method investments | — | 1 | (3 | ) | 2 | (2 | ) | ||||||||||||
Fixed charges | 97 | 137 | 192 | 218 | 207 | ||||||||||||||
Total | $ | (116 | ) | $ | (146 | ) | $ | 329 | $ | 206 | $ | (84 | ) | ||||||
Fixed charges: | |||||||||||||||||||
Interest expense(1) | $ | 90 | $ | 130 | $ | 185 | $ | 212 | $ | 201 | |||||||||
Estimated interest portion of net rental expense(2) | 7 | 7 | 7 | 6 | 6 | ||||||||||||||
Total | $ | 97 | $ | 137 | $ | 192 | $ | 218 | $ | 207 | |||||||||
Ratio of earnings to fixed charges(3) | — | — | 1.71 | — | — | ||||||||||||||
Coverage deficiencies | $ | 213 | $ | 283 | $ | — | $ | 12 | $ | 291 | |||||||||
______________
(1) Consists of interest expense on all indebtedness including amortization of deferred financing costs.
(2) One-third of rental expense net of income from subleases is deemed an appropriate representative of the interest rate factor.
(3) The ratio of earnings to fixed charges was less than 1:1 for the years ended December 31, 2015 and 2014, which was driven by Market-related fair value adjustments to our mortgage servicing rights, provisions for legal and regulatory reserves, charges related to early debt retirement and costs to re-engineer our business. The ratio was less than 1:1 for the years ended December 31, 2012 and 2011, which was primarily driven by unfavorable Market-related fair value adjustments to our mortgage servicing rights.