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Aon Corporation and Consolidated Subsidiaries
Combined With Unconsolidated Subsidiaries
Computation of Ratio of Earnings to Fixed Charges
| Years Ended December 31, | ||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
(millions except ratios) | 2004 | 2003 | 2002 | 2001 | 2000 | ||||||||||||
Income from continuing operations before provision for income taxes and minority interest | $ | 880 | $ | 1,131 | $ | 840 | $ | 367 | $ | 846 | |||||||
Less: Earnings from unconsolidated entities under the equity method of accounting | 34 | 49 | 19 | (139 | ) | 44 | |||||||||||
Add back fixed charges: | |||||||||||||||||
Interest on indebtedness | 136 | 101 | 124 | 127 | 140 | ||||||||||||
Interest credited on deposit-type insurance contracts | 1 | — | 29 | 56 | 71 | ||||||||||||
Portion of rents representative of interest factor | 73 | 67 | 59 | 57 | 54 | ||||||||||||
Income as adjusted | $ | 1,056 | $ | 1,250 | $ | 1,033 | $ | 746 | $ | 1,067 | |||||||
Fixed charges: | |||||||||||||||||
Interest on indebtedness (1) | $ | 136 | $ | 101 | $ | 124 | $ | 127 | $ | 140 | |||||||
Interest credited on deposit-type insurance contracts | 1 | — | 29 | 56 | 71 | ||||||||||||
Portion of rents representative of interest factor | 73 | 67 | 59 | 57 | 54 | ||||||||||||
Total fixed charges | $ | 210 | $ | 168 | $ | 212 | $ | 240 | $ | 265 | |||||||
Ratio of earnings to fixed charges | 5.0 | 7.4 | 4.9 | 3.1 | 4.0 | ||||||||||||
- (1)
- As a result of the adoption of FIN 46 on December 31, 2003, Aon was required to deconsolidate its 8.205% mandatorily redeemable preferred capital securities. This decrease was offset by an increase in notes payable. Beginning in 2004, interest expense ($58 million for the year ended December 31, 2004) on these notes payable was reported as part of interest expense in the consolidated statements of income.
Aon Corporation and Consolidated Subsidiaries Combined With Unconsolidated Subsidiaries Computation of Ratio of Earnings to Fixed Charges