EXHIBIT 12
FIRST DATA CORPORATION
COMPUTATION OF
RATIO OF EARNINGS TO FIXED CHARGES
(Dollars in millions)
Three Months Ended Nine Months Ended
September 30, September 30,
-------------------------- ---------------------------
1998 1997 1998 1997
---- ---- ---- ----
Earnings:
Income before income $275.9 $303.2 $553.6 (1) $552.7 (2)
taxes
Interest expense 25.5 29.7 80.3 85.3
Other adjustments 10.1 11.9 32.5 39.8
------ ------ ------ --------
Total earnings (a) $311.5 $344.8 $666.4 $677.8
====== ====== ====== ======
Fixed charges:
Interest expense $ 25.5 $ 29.7 $ 80.3 $ 85.3
Other adjustments 10.1 11.9 32.5 39.8
------ ------ ------ -------
Total fixed charges (b) $ 35.6 $ 41.6 $112.8 $125.1
====== ====== ====== ======
Ratio of earnings to
fixed charges (a/b) 8.75 8.29 5.91 5.42
(1) Includes provision for loss on contract and impairment charges totaling
$164.1 million. The pro forma ratio of earnings to fixed charges without
these charges would have been 7.36.
(2) Includes restructuring, net loss on business divestitures and impairment
charges of $211.6 million. The pro forma ratio of earnings to fixed
charges without these charges would have been 7.11.
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.