EX-12.1 3 dex121.htm RATIO OF EARNINGS TO FIXED CHARGES Ratio of Earnings to Fixed Charges
 
EXHIBIT 12.1
 
IKON OFFICE SOLUTIONS, INC.
RATIO OF EARNINGS TO FIXED CHARGES
(dollars in thousands)
 
    
Fiscal Year Ended September 30
  
    
2002
     
2001
     
2000
     
1999
     
1998
  
Earnings
                                             
Income (loss) from continuing operations
   
$
150,334
 
   
$
14,005
 
   
$
25,960
 
   
$
33,836
 
   
$
(83,050
)
Add:
                                             
Provision for income taxes
   
 
88,866
 
   
 
53,791
 
   
 
55,873
 
   
 
45,555
 
   
 
8,863
 
Fixed charges
   
 
249,177
 
   
 
287,383
 
   
 
272,439
 
   
 
230,375
 
   
 
228,365
 
    
  
  
  
  
Earnings, as adjusted (A)
   
 
488,377
 
   
 
355,179
 
   
 
354,272
 
   
 
309,766
 
   
 
154,178
 
    
  
  
  
  
Fixed charges
                                             
Other interest expense including interest on capital leases
   
 
212,280
 
   
 
246,892
 
   
 
237,521
 
   
 
197,901
 
   
 
199,816
 
Estimated interest component of rental expense
   
 
36,897
 
   
 
40,491
 
   
 
34,918
 
   
 
32,474
 
   
 
28,549
 
    
  
  
  
  
Total fixed charges (B)
   
$
249,177
 
   
$
287,383
 
   
$
272,439
 
   
$
230,375
 
   
$
228,365
 
    
  
  
  
  
Ratio of earnings to fixed charges (A) divided by (B)
   
 
2.0
(1)
   
 
1.2
(2)
   
 
1.3
(3)
   
 
1.3
(4)
   
 
0.7
(5)
    
  
  
  
  
(1)
 
Excluding the effect of the reversal of restructuring charges, the ratio of earnings to fixed charges for the fiscal year ended September 30, 2002 is 1.9.
 
(2)
 
Excluding the effect of restructuring and asset impairment charges, reserve adjustments related primarily to the Company’s exit of telephony operations, gain from discontinued operations and a tax reserve adjustment related to the Company’s use of leveraged corporate owned life insurance programs, the ratio of earnings to fixed charges for the fiscal year ended September 30, 2001 is 1.5.
 
(3)
 
Excluding the effect of the gain on sale of investment, extraordinary gain from the early extinguishment of debt, shareholder litigation insurance proceeds, restructuring and asset impairment charge, and benefit from discontinued operations, the ratio of earnings to fixed charges for the fiscal year ended September 30, 2000 is 1.6.
 
(4)
 
Excluding the effect of the asset securitization gain and the shareholder litigation settlement charge, the ratio of earnings to fixed charges for the fiscal year ended September 30, 1999 is 1.7.
 
(5)
 
Excluding the effect of transformation costs and the loss from asset impairment, the ratio of earnings to fixed charges for the fiscal year ended September 30, 1998 is 1.1.