EX-12 4 dex12.htm COMPUTATION IN SUPPORT OF RATIO OF EARNINGS Prepared by R.R. Donnelley Financial -- Computation in Support of Ratio of Earnings
 
Exhibit 12
 
FIRST DATA CORPORATION
COMPUTATION OF
RATIO OF EARNINGS TO FIXED CHARGES
(Dollars in millions)
 
    
Years Ended December 31,
  
    
2001
     
2000
     
1999
     
1998
     
1997
  
Earnings:
                                             
Income before income taxes
   
$
1,211.4
(1)
   
$
1,308.3
(2)
   
$
1,825.4
(3)
   
$
711.9
(4)
   
$
706.4
(5)
Interest expense
   
 
119.6
 
   
 
99.2
 
   
 
103.8
 
   
 
104.1
 
   
 
116.5
 
Other adjustments
   
 
49.1
 
   
 
46.3
 
   
 
54.4
 
   
 
47.5
 
   
 
55.5
 
    
  
  
  
  
Total earnings (a)
   
$
1,380.1
 
   
$
1,453.8
 
   
$
1,983.6
 
   
$
863.5
 
   
$
878.4
 
    
  
  
  
  
Fixed charges:
                                             
Interest expense
   
 
119.6
 
   
 
99.2
 
   
 
103.8
 
   
 
104.1
 
   
$
116.5
 
Other adjustments
   
 
49.1
 
   
 
46.3
 
   
 
54.4
 
   
 
47.5
 
   
 
55.5
 
    
  
  
  
  
Total fixed charges (b)
   
$
168.7
 
   
$
145.5
 
   
$
158.2
 
   
$
151.6
 
   
$
172.0
 
    
  
  
  
  
Ratio of earnings to fixed charges (a ÷ b)
   
 
8.18
 
   
 
9.99
 
   
 
12.54
 
   
 
5.70
 
   
 
5.11
 
 
(1)
 
Inclues net restructuring, business divestitures and impairment charges of $184.8 million ($121.7 million after tax). The pro-forma ratio of earnings to fixed charges without these charges would have been 9.28.
 
(2)
 
Includes net restructuring, business divestitures, litigation and impairment benefit of $71.3 million ($46.0 million after tax). The pro-forma ratio of earnings to fixed charges without these benefits would have been 9.50.
 
(3)
 
Includes net restructuring, business divestitures, litigation and impairment benefit of $715.8 million ($417.6 million after tax). The pro-forma ratio of earnings to fixed charges without these benefits would have been 8.01.
 
(4)
 
Includes restructuring, net loss on business divestitures and impairment charges of $319.1 million ($231.5 million after tax). The pro-forma ratio of earnings to fixed charges without these charges would have been 7.80.
 
(5)
 
Includes restructuring, net loss on business divestitures and impairment charges of $369.3 million ($333.9 million after tax). The pro-forma ratio of earnings to fixed charges without these charges would have been 7.25.
 
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. Earnings consist of income before income taxes plus fixed charges.