INTERPUBLIC GROUP OF COMPANIES, INC. - FORM 10-Q - EX-12.1 - COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES - April 29, 2010

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10-Q - FORM 10-Q - INTERPUBLIC GROUP OF COMPANIES, INC.d10q.htm
EX-32 - SECTION 906 CEO AND CFO CERTIFICATION - INTERPUBLIC GROUP OF COMPANIES, INC.dex32.htm
EX-31.2 - SECTION 302 CFO CERTIFICATION - INTERPUBLIC GROUP OF COMPANIES, INC.dex312.htm
EX-31.1 - SECTION 302 CEO CERTIFICATION - INTERPUBLIC GROUP OF COMPANIES, INC.dex311.htm
EX-10.(I)(B) - 3-YEAR CREDIT AGREEMENT - INTERPUBLIC GROUP OF COMPANIES, INC.dex10ib.htm

EXHIBIT 12.1

COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES

(Amounts in Millions, Except Ratios)

 

     Three months ended
March 31,		     Years ended December 31,  
     2010     2009    2008    2007    2006     2005  

Earnings (loss) 1

                

(Loss) income from continuing operations before income taxes

    $ (85.0 )    $ 232.4    $ 471.5    $ 235.7    $ (5.0 )    $ (186.6 ) 
                                             

Fixed charges 1

                

Interest expense and other charges

      32.6        155.6      211.9      236.7      218.7        181.9   

Interest factor of net operating rents 2

      43.1        181.4      183.9      185.6      185.1        183.9   
                                             

Total fixed charges

      75.7        337.0      395.8      422.3      403.8        365.8   
                                             

Earnings (loss), as adjusted

    $ (9.3 )    $ 569.4    $ 867.3    $ 658.0    $ 398.8      $ 179.2   
                                             

Ratio of earnings to fixed charges 3

      N/A        1.7      2.2      1.6      N/A        N/A   

 

1

Earnings (loss) consist of (loss) income from continuing operations before income taxes, equity in net (loss) income of unconsolidated affiliates and adjustments for net loss 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 three months ended March 31, 2010 and 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 $85.0, $5.0 and $186.6 in the three months ended March 31, 2010 and years ended December 31, 2006 and 2005, respectively.

INTERPUBLIC GROUP OF COMPANIES, INC. Reports