EX-12.1 8 d185218dex121.htm COMPUTATION IN SUPPORT OF RATIO OF EARNINGS TO FIXED CHARGES Computation in Support of Ratio of Earnings to Fixed Charges

Exhibit 12.1

FIRST DATA CORPORATION

COMPUTATION OF

RATIO OF EARNINGS TO FIXED CHARGES

 

    Successor     Predecessor  

(in millions)

  Six months ended
June 30,
    Year ended
December 31,
    Period
from
September 25
though

December 31,
2007
    Period
from
January  1
though

September 24,
2007
   

Year ended

December 31,

 
         
  2011     2010     2010     2009     2008         2006  

Earnings:

               

(Loss) income before income taxes(1)

  $ (629.0   $ (671.8   $ (1,345.6   $ (1,665.2   $ (4,463.5   $ (478.0   $ 590.2      $ 1,051.4   

Interest expense

    904.6        899.8        1,796.6        1,796.4        1,964.9        584.7        103.6        248.0   

Other adjustments

    14.0        13.9        27.9        26.8        25.7        76.8        23.5        31.4   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total earnings (a)

  $ 289.6      $ 241.9      $ 478.9      $ 158.0      $ (2,472.9   $ 183.5      $ 717.3      $ 1,330.8   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Fixed charges:

               

Interest expense

  $ 904.6      $ 899.8      $ 1,796.6      $ 1,796.4      $ 1,964.9      $ 584.7      $ 103.6      $ 248.0   

Other adjustments

    14.0        13.9        27.9        26.8        25.7        76.8        23.5        31.4   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total fixed charges (b)

  $ 918.6      $ 913.7      $ 1,824.5      $ 1,823.2      $ 1,990.6      $ 661.5      $ 127.1      $ 279.4   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Ratio of earnings to fixed charges (a/b)(2)

                5.64        4.76   

 

(1) (Loss) income before income taxes includes equity earnings in affiliates, and excludes discontinued operations and net income attributable to noncontrolling interests. Reflecting such amounts on a cash basis would not materially impact the ratio. Includes a goodwill impairment charge of $3.2 billion recognized in 2008.
(2) Our ratio of earnings to fixed charges is less than one-to-one for the six months ended June 30, 2011 and 2010, years ended December 31, 2010, 2009 and 2008 as well as the successor period from September 25, 2007 through December 31, 2007, respectively. The deficiencies in total earnings were $629.0 million and $671.8 million for the six months ended June 30, 2011 and 2010, respectively, $1,345.6 million, $1,665.2 million and $4,463.5 million for the years ended December 31, 2010, 2009 and 2008, respectively, and $478.0 million for the successor period from September 25, 2007 through December 31, 2007.

For purposes of computing the ratio of earnings to fixed charges, fixed charges consist of interest on debt, amortization of deferred financing costs and a portion of rentals determined to be representative of interest. Fixed charges do not include interest on income tax liabilities. Earnings consist of income before income taxes plus fixed charges.