EX-12 3 dex12.htm COMPUTATION IN SUPPORT OF RATIO OF EARNINGS TO FIXED CHARGES Computation in Support of Ratio of Earnings to Fixed Charges

Exhibit 12

 

FIRST DATA CORPORATION

 

COMPUTATION OF

RATIO OF EARNINGS TO FIXED CHARGES

(Dollars in Millions)

 

     Years Ended December 31,
     2006    2005    2004    2003    2002

Earnings:

              

Income before income taxes (1)

   $ 1,051.4    $ 995.8    $ 1,507.8    $ 1,058.2    $ 655.6

Interest expense

     248.0      190.9      116.4      81.6      84.7

Other adjustments

     31.4      30.0      35.4      39.0      40.8
                                  

Total earnings (a)

   $ 1,330.8    $ 1,216.7    $ 1,659.6    $ 1,178.8    $ 781.1
                                  

Fixed charges:

              

Interest expense

   $ 248.0    $ 190.9    $ 116.4    $ 81.6    $ 84.7

Other adjustments

     31.4      30.0      35.4      39.0      40.8
                                  

Total fixed charges (b)

   $ 279.4    $ 220.9    $ 151.8    $ 120.6    $ 125.5
                                  

Ratio of earnings to fixed charges (a/b)

     4.76      5.51      10.93      9.77      6.22

(1) Income before income taxes includes minority interest and equity earnings in affiliates, and excludes discontinued operations. Reflecting such amounts on a cash basis would not materially impact the ratio due to the frequency of cash distributions.

 

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.