Bread Financial (BFH) 10-K 2012 FY Annual report

Exhibit 12.1

RATIO OF EARNINGS TO FIXED CHARGES

The following table sets forth our ratios of earnings to fixed charges for the periods indicated. Earnings consist of income from continuing operations before provisions for income taxes plus fixed charges. Fixed charges include interest expense, amortization of debt issuance costs and the portion of rental expense we believe is representative of the interest component of rent expense.

	Year Ended December 31,
	2012			2011			2010			2009			2008
	(In thousands, except per share amounts)
Income from continuing operations		$	682,904		$	514,095		$	310,890		$	262,946		$	380,151
Plus
Fixed charges			318,148			320,978			338,609			164,413			114,186
Total		$	1,001,052		$	835,073		$	649,499		$	427,359		$	494,337
Earnings to fixed charges ratio			3.2			2.6			1.9			2.6			4.3
Fixed charges:
Interest expense, including the amortization of debt issuance costs		$	295,175		$	300,816		$	320,469		$	146,589		$	96,041
Estimate of interest component of rent expense(1)			22,973			20,162			18,140			17,824			18,145
Total fixed charges		$	318,148		$	320,978		$	338,609		$	164,413		$	114,186

(1)   Estimated at 1/3 of total rent expense