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

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EXCEL - IDEA: XBRL DOCUMENT - INTERPUBLIC GROUP OF COMPANIES, INC.Financial_Report.xls
10-Q - FORM 10-Q - INTERPUBLIC GROUP OF COMPANIES, INC.d10q.htm
EX-31.1 - CERTIFICATION OF THE CHIEF EXECUTIVE OFFICER PURSUANT TO RULE 13A-14(A) - INTERPUBLIC GROUP OF COMPANIES, INC.dex311.htm
EX-31.2 - CERTIFICATION OF THE CHIEF FINANCIAL OFFICER PURSUANT TO RULE 13A-14(A) - INTERPUBLIC GROUP OF COMPANIES, INC.dex312.htm
EX-32 - CERTIFICATION OF THE CEO & CFO FURNISHED PUESUANT TO 18 U.S.C SECTION 1350 - INTERPUBLIC GROUP OF COMPANIES, INC.dex32.htm

 

EXHIBIT 12.1

COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES

(Amounts in Millions, Except Ratios)

 

     Nine months ended
September 30,
2010		     Years ended December 31,  
       2009      2008      2007      2006     2005  

Earnings (loss) 1

                

Income (loss) from continuing operations before income taxes

    $ 130.4      $ 232.4       $ 471.5       $ 235.7       $ (5.0 )    $ (186.6 ) 
                                                   

Fixed charges 1

                

Interest expense and other charges

      102.3        155.6         211.9         236.7         218.7        181.9   

Interest factor of net operating rents 2

      128.3        181.4         183.9         185.6         185.1        183.9   
                                                   

Total fixed charges

      230.6        337.0         395.8         422.3         403.8        365.8   
                                                   

Earnings (loss), as adjusted

    $ 361.0      $ 569.4       $ 867.3       $ 658.0       $ 398.8      $ 179.2   
                                                   

Ratio of earnings to fixed charges 3

      1.6        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 (loss) of unconsolidated affiliates and adjustments for net (income) 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 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