EXHIBIT 12.2
IKON OFFICE SOLUTIONS, INC. AND SUBSIDIARIES
RATIO OF EARNINGS TO FIXED CHARGES (EXCLUDING CAPTIVE FINANCE SUBSIDIARIES)
(dollars in thousands)
Fiscal Year Ended September 30
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1999 1998 1997 1996 1995
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Earnings
Income (loss) from continuing operations $ (51,437) $ (140,552) $ 85,897 $ 140,656 $ 100,539
Add:
Provision for income taxes (7,378) (33,291) 65,931 85,512 63,938
Fixed charges 103,085 98,544 92,738 59,514 42,138
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Earnings, as adjusted (A) $ 44,270 $ (75,299) $ 244,566 $ 285,682 $ 206,615
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Fixed charges
Other interest expense, including
Interest on capital leases $ 71,225 $ 70,668 $ 47,453 $ 37,179 $ 21,672
Estimated interest component of
rental expense 31,860 27,876 26,584 22,335 20,466
Prepayment penalties on early
extinguishment of debt 18,701
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Total fixed charges (B) $ 103,085 $ 98,544 $ 92,738 $ 59,514 $ 42,138
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Ratio of earnings to fixed charges
(A) divided by (B) 0.4(1) (0.8)(2) 2.6(3) 4.8(4) 4.9
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(1) Excluding the effect of the shareholder litigation settlement charge, the
ratio of earnings to fixed charges (excluding finance subsidiaries) for
the fiscal year ended September 30, 1999 is 1.4.
(2) Excluding the effect of transformation costs and the loss from asset
impairment, the ratio of earnings to fixed charges (excluding finance
subsidiaries) for the fiscal year ended September 30, 1998 is .2.
(3) Excluding the effects of transformation costs, the ratio of earnings to
fixed charges (excluding finance subsidiaries) for the fiscal year ended
September 30, 1997 is 4.0.
(4) Excluding the effects of the transformation costs, the ratio of earnings
to fixed charges (excluding finance subsidiaries) for the fiscal year
ended September 30, 1996 is 5.2.