HEWITT ASSOCIATES INC - FORM 10-K - EX-12.1 - RATIO OF EARNINGS TO FIXED CHARGES - November 10, 2009

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10-K - FORM 10-K - HEWITT ASSOCIATES INCd10k.htm
EX-21 - SUBSIDIARIES - HEWITT ASSOCIATES INCdex21.htm
EX-32.1 - SECTION 906 CERTIFICATION OF CEO - HEWITT ASSOCIATES INCdex321.htm
EX-31.1 - SECTION 302 CERTIFICATION OF CEO - HEWITT ASSOCIATES INCdex311.htm
EX-10.22 - 2009 CHANGE-IN-CONTROL EXECUTIVE SEVERANCE PLAN - HEWITT ASSOCIATES INCdex1022.htm
EX-31.2 - SECTION 302 CERTIFICATION OF CFO - HEWITT ASSOCIATES INCdex312.htm
EX-32.2 - SECTION 906 CERTIFICATION OF CFO - HEWITT ASSOCIATES INCdex322.htm
EX-10.36 - FORM OF FISCAL YEAR 2009 RESTRICTED STOCK UNIT AWARD AGREEMENT - HEWITT ASSOCIATES INCdex1036.htm
EX-23.1 - CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM - HEWITT ASSOCIATES INCdex231.htm

EXHIBIT 12.1

RATIO OF EARNINGS TO FIXED CHARGES

 

     Year ended September 30,  
     2005     2006     2007     2008     2009  

Income (loss) before income taxes

    $ 220,515      $ (59,570 )    $ (124,718 )    $ 316,444      $ 409,720   

Income from non-consolidated subsidiaries

      (469 )      (2,219 )      (2,786 )      (4,187 )      (1,406 ) 

Minority interest

      (70 )      (90 )      1        -        -   

Amortization of capitalized interest

      52        45        62        287        726   

Distributed income of equity investees

      -        -        1,215        2,110        2,330   

Fixed charges

      68,169        66,250        65,515        76,466        70,268   

Interest capitalized

      -        -        (875 )      (2,024 )      (1,052 ) 
                                        

Earnings available for fixed charges

      288,197        4,416        (61,586 )      389,096        480,586   
                                        

Fixed Charges:

           

Interest expensed and capitalized

      23,086        23,266        19,513        24,282        35,679   

Portion of rent expense representing interest

      38,628        37,789        42,082        52,184        34,589   

Amortized discount related to unsecured convertible senior term notes

      6,455        5,195        3,920        -        -   
                                        

Total fixed charges

      68,169        66,250        65,515        76,466        70,268   
                                        

Ratio of Earnings to Fixed Charges (1)

      4.2        0.1        (0.9 )      5.1        6.8   

Deficiency (2) (3)

    $ -      $ 61,834      $ 127,101      $ -      $ -   

 

(1) For purposes of calculating the ratio of earnings to fixed charges, “earnings” are defined as (a) income before income taxes, (income) loss from equity investees and minority interest plus (b) amortization of capitalized interest and (c) fixed charges, minus interest capitalized. “Fixed charges” consists of interest expensed and capitalized plus the portion of rental expense considered to be a reasonable approximation of interest plus the amortization of the discount related to unsecured convertible senior term notes.
(2) During the year ended September 30, 2007, the Company recorded non-cash charges of $329 million related to impairment of goodwill, intangible assets, and contract loss provisions; a pre-tax severance charge of $32 million resulting from ongoing productivity initiatives across the business; a pre-tax charge of $29 million related to the review of our real estate portfolio; a pre-tax charge of $15 million related to the anticipated restructuring of an HR BPO contract; and a pre-tax charge of $5 million resulting from the second-quarter resolution of a legal dispute with a vendor.
(3) During the year ended September 30, 2006, the Company recorded non-cash charges of $264 million related to its HR BPO business.

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