INTERPUBLIC GROUP OF COMPANIES, INC. - FORM 10-K - EX-12 - COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES - February 26, 2010

Attached files

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10-K - FORM 10-K - INTERPUBLIC GROUP OF COMPANIES, INC.d10k.htm
EX-32 - CERTIFICATION PURSUANT TO SECTION 1350 - INTERPUBLIC GROUP OF COMPANIES, INC.dex32.htm
EX-21 - SUBSIDIARIES OF THE REGISTRANT - INTERPUBLIC GROUP OF COMPANIES, INC.dex21.htm
EX-23 - CONSENT OF PRICEWATERHOUSECOOPERS LLP - INTERPUBLIC GROUP OF COMPANIES, INC.dex23.htm
EX-31.2 - CFO CERTIFICATION - INTERPUBLIC GROUP OF COMPANIES, INC.dex312.htm
EX-31.1 - CEO CERTIFICATION - INTERPUBLIC GROUP OF COMPANIES, INC.dex311.htm
EX-10.III.A.88 - SUPPLEMENT TO THE 2006 PIP AND 2009 PIP - INTERPUBLIC GROUP OF COMPANIES, INC.dex10iiia88.htm
EX-24 - POWER OF ATTORNEY TO SIGN FORM 10K - INTERPUBLIC GROUP OF COMPANIES, INC.dex24.htm

Exhibit 12

COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES

(Amounts in Millions, Except Ratios)

 

     Years ended December 31,  
     2009    2008    2007    2006     2005  

Earnings (loss) 1

              

Income (loss) from continuing operations before
income taxes

    $ 232.4    $ 471.5    $ 235.7    $ (5.0 )    $ (186.6 ) 
                                     

Fixed charges 1

              

Interest expense and other charges

      155.6      211.9      236.7      218.7        181.9   

Interest factor of net operating rents 2

      181.4      183.9      185.6      185.1        183.9   
                                     

Total fixed charges

      337.0      395.8      422.3      403.8        365.8   
                                     

Earnings (loss), as adjusted

    $ 569.4    $ 867.3    $ 658.0    $ 398.8      $ 179.2   
                                     

Ratio of earnings to fixed charges 3

      1.7      2.2      1.6      N/A        N/A   

 

1

Earnings (loss) consist of income (loss) from continuing operations before income taxes, equity in net income of unconsolidated affiliates and adjustments for net income attributable to noncontrolling interests. Fixed charges consist of interest on indebtedness, amortization of debt discount, waiver and other amendment fees, debt issuance costs (all of which are included in interest expense) and the portion of net rental expense deemed representative of the interest component (one-third).

2

We have calculated the interest factor of net operating rent as one third of our operating rent, as this represents a reasonable approximation of the interest factor.

3

We had a less than 1:1 ratio of earnings to fixed charges due to our losses in the years ended December 31, 2006 and 2005. To provide a 1:1 coverage ratio for the deficient periods results as reported would have required additional earnings of $5.0 and $186.6 in the years ended December 31, 2006 and 2005, respectively.

INTERPUBLIC GROUP OF COMPANIES, INC. Reports

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