Exhibit 12.1
CERTEGY INC.
RATIO OF EARNINGS TO FIXED CHARGES
($ in thousands, except ratio data)
For the year ended December 31, | ||||||||||||||||||||
2000 | 2001(2) | 2002(2) | 2003(2) | 2004(2) | ||||||||||||||||
Earnings: | ||||||||||||||||||||
Income before income taxes (1) | $ | 144,536 | $ | 132,077 | $ | 126,945 | $ | 132,573 | $ | 156,789 | ||||||||||
Add: | ||||||||||||||||||||
Interest expense | 1,301 | 7,200 | 7,120 | 7,950 | 12,914 | |||||||||||||||
Other adjustments | 5,594 | 5,069 | 4,549 | 4,653 | 4,632 | |||||||||||||||
Total earnings | $ | 151,431 | $ | 144,346 | $ | 138,614 | $ | 145,176 | $ | 174,335 | ||||||||||
Fixed charges: | ||||||||||||||||||||
Interest expense | $ | 1,301 | $ | 7,200 | $ | 7,120 | $ | 7,950 | $ | 12,914 | ||||||||||
Other adjustments | 5,594 | 5,069 | 4,549 | 4,653 | 4,632 | |||||||||||||||
Total fixed charges | $ | 6,895 | $ | 12,269 | $ | 11,669 | $ | 12,603 | $ | 17,546 | ||||||||||
Ratio of earnings to fixed charges | 21.96 | x | 11.77 | x | 11.88 | x | 11.52 | x | 9.94 | x |
(1) | Income from continuing operations before income taxes and cumulative effect of a change in accounting principle, but including minority interests. |
(2) | On January 1, 2005, the Company adopted SFAS 123(R), as further described in Notes 2 and 8 to the consolidated financial statements, which requires all share-based payments to employees to be recognized in the income statement based on their fair values. Periods from the Company’s spin-off from Equifax Inc. on July 7, 2001 to December 31, 2004 were restated to conform to this presentation. |
For the purposes of calculating the ratio of earnings to fixed charges, fixed charges consist of interest on indebtedness, amortization of deferred financing costs, and an estimated amount of rental expense that is deemed to be representative of the interest factor.