EXHIBIT 12
FIRST DATA CORPORATION
COMPUTATION OF
RATIO OF EARNINGS TO FIXED CHARGES
Successor | Predecessor | |||||||||||||||||||||
(in millions) | Year ended December 31, 2008 | Period from September 25 though December 31, 2007 | Period from January 1 though September 24, 2007 | Year ended December 31, | ||||||||||||||||||
2006 | 2005 | 2004 | ||||||||||||||||||||
Earnings: | ||||||||||||||||||||||
(Loss) income before income taxes (1) | $ | (4,463.5 | ) | $ | (478.0 | ) | $ | 590.2 | $ | 1,051.4 | $ | 995.8 | $ | 1,507.8 | ||||||||
Interest expense | 1,964.9 | 584.7 | 103.6 | 248.0 | 190.9 | 116.4 | ||||||||||||||||
Other adjustments | 25.7 | 76.8 | 23.5 | 31.4 | 30.0 | 35.4 | ||||||||||||||||
Total earnings (a) | $ | (2,472.9 | ) | $ | 183.5 | $ | 717.3 | $ | 1,330.8 | $ | 1,216.7 | $ | 1,659.6 | |||||||||
Fixed charges: | ||||||||||||||||||||||
Interest expense | $ | 1,964.9 | $ | 584.7 | $ | 103.6 | $ | 248.0 | $ | 190.9 | $ | 116.4 | ||||||||||
Other adjustments | 25.7 | 76.8 | 23.5 | 31.4 | 30.0 | 35.4 | ||||||||||||||||
Total fixed charges (b) | $ | 1,990.6 | $ | 661.5 | $ | 127.1 | $ | 279.4 | $ | 220.9 | $ | 151.8 | ||||||||||
Ratio of earnings to fixed charges (a/b)(2) | 5.64 | 4.76 | 5.51 | 10.93 |
(1) | (Loss) 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. Includes a goodwill impairment charge of $3.2 billion recognized in 2008. |
(2) | The Company’s ratio of earnings to fixed charges is less than one-to-one for the year ended December 31, 2008 as well as the successor period from September 25, 2007 through December 31, 2007. The deficiencies in total earnings were $4,463.5 million for the year ended December 31, 2008 and $478.0 million for the successor period from September 25, 2007 through December 31, 2007. |
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. Fixed charges do not include interest on income tax liabilities. Earnings consist of income before income taxes plus fixed charges.