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,
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1999 1998 1999 1998
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Earnings:
Income before income taxes $285.4 (1) $275.9 $718.7 (1) $553.6 (2)
Interest expense 27.4 25.5 74.4 80.3
Other adjustments 13.3 10.1 39.9 32.5
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Total earnings (a) $326.1 $311.5 $833.0 $666.4
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Fixed charges:
Interest expense $ 27.4 $ 25.5 $ 74.4 $ 80.3
Other adjustments 13.3 10.1 39.9 32.5
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Total fixed charges (b) $ 40.7 $ 35.6 $114.3 $112.8
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Ratio of earnings to fixed
charges (a/b) 8.01 8.75 7.29 5.91
(1) Includes restructuring, business divestitures, litigation and impairment
charges of $6.1 million and $41.0 million for the quarter and nine months
ended September 30, 1999, respectively. The pro forma ratio of earnings to
fixed charges without these charges would have been 8.16 and 7.65 for the
quarter and nine months ended September 30, 1999, respectively.
(2) Includes business divestiture, 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 for the nine months ended
September 30, 1998.
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.