EX-12.1 3 dp94125_ex1201.htm EXHIBIT 12.1

Exhibit 12.1

MSCI Inc.
Ratio of Earnings to Fixed Charges

 

   Six Months Ended  Year Ended
  

June

30,

  December 31,  December 31,  December 31,  December 31,  December 31,
   2018  2017  2016  2015  2014  2013
                   
Operating revenues  $714,362   $1,274,172   $1,150,669   $1,075,013   $996,680   $913,364 
Total operating expenses   373,685    694,984    662,565    671,115    659,514    573,033 
Operating income   340,677    579,188    488,104    403,898    337,166    340,331 
Interest income   (7,051)   (6,314)   (2,906)   (1,166)   (851)   (889)
Interest expense   61,321    116,098    101,651    62,387    31,820    26,256 
Other expense (income)   (9,354)   2,505    3,421    (6,877)   (2,141)   2,136 
Other expense (income), net   44,916    112,289    102,166    54,344    28,828    27,503 
Income from continuing operations before provision for income taxes   295,761    466,899    385,938    349,554    308,338    312,828 
Provision for income taxes   63,840    162,927    125,083    119,516    109,396    112,918 
Income from continuing operations   231,921    303,972    260,855    230,038    198,942    199,910 
(Loss) income from discontinued operations, net of income taxes   —      —      —      (6,390)   85,171    22,647 
Net income  $231,921   $303,972   $260,855   $223,648   $284,113   $222,557 
                               
Income from continuing operations before provision for income taxes  $295,761   $466,899   $385,938   $349,554   $308,338   $312,828a
Interest Expense (includes amortization of fees and discounts)   61,321    116,098    101,651    62,387    23,876(3)   26,256b
Estimated portion of rent expense representative of interest   4,029    7,651    7,596    8,314    8,705    8,034b
                               
Earnings  $361,111   $590,648   $495,185   $420,255   $340,919   $347,118a+
b=
c
Fixed Charges:                              
Interest Expense (includes amortization of fees and discounts)(1)  $61,329   $116,098   $101,651   $62,387   $23,876   $26,256 
Estimated portion of rent expense representative of interest(2)   4,029    7,651    7,596    8,314    8,705    8,034 
Total Fixed Charges  $65,350   $123,749   $109,247   $70,701   $32,581   $34,290b
Earnings to Fixed Charges Ratio   5.53    4.77    4.53    5.94    10.46    10.12c/b
                               

 

(1) The interest expense included in fixed charges above reflects only interest on third-party indebtedness and excludes any interest expense accrued on uncertain tax positions, as permitted by Financial Accounting Standards Board (FASB) Accounting Standards Codification Topic 740, Income Taxes (formerly FASB Interpretation No. 48, Accounting for Income Taxes).
(2) Rent expense substantially represents payments for rented spaces. MSCI Inc. has used one-third of rent expense as a reasonable estimate of the financing component of rent expense, since it is impracticable to determine the actual financing component of rent expense.
(3) Excludes $7.9 million of accelerated amortization of discount and capitalized expenses related to indebtedness that were recognized upon the November 20, 2014 termination of MSCI Inc.’s senior secured credit facility, as amended.