GXS Corporation Ratio of earnings to combined fixed charges | EXHIBIT 12 |
Historical | Pro Forma | ||||||||||||||||||||||||||||||||||||
Three Months Ended | Twelve Months Ended | Year Ended | Twelve Months Ended | ||||||||||||||||||||||||||||||||||
Years Ended December 31, | March 31, | March 31, | December 31, | March 31, | |||||||||||||||||||||||||||||||||
1998 | 1999 | 2000 | 2001 | 2002 | 2003 | 2003 | 2002 | 2003 | |||||||||||||||||||||||||||||
Earnings | |||||||||||||||||||||||||||||||||||||
Net income | $ | 45,335 | $ | 54,730 | $ | 67,819 | $ | 68,594 | $ | (39,457 | ) | $ | (6,103 | ) | $ | (47,490 | ) | $ | (16,231 | ) | $ | (17,042 | ) | ||||||||||||||
Income tax expense | 22,063 | 30,868 | 42,793 | 49,278 | 9,858 | (1,438 | ) | 4,520 | (10,642 | ) | (11,173 | ) | |||||||||||||||||||||||||
Interest expense | 2,315 | 1,597 | 12,007 | 5,334 | 12,200 | 10,225 | 21,882 | 48,928 | 45,150 | ||||||||||||||||||||||||||||
Capitalization of interest expense | — | — | — | — | — | (64 | ) | (64 | ) | — | (64 | ) | |||||||||||||||||||||||||
Amortization of debt discount | — | — | — | — | — | (27 | ) | (27 | ) | (986 | ) | (986 | ) | ||||||||||||||||||||||||
Amortization of debt issue costs | — | — | — | — | 2,326 | 226 | 2,552 | 2,996 | 2,996 | ||||||||||||||||||||||||||||
Write-off of deferred financing costs | — | — | — | — | — | 5,548 | 5,548 | — | — | ||||||||||||||||||||||||||||
Portion of rent expense considered to represent interest (a) | 27,583 | 26,897 | 18,279 | 13,032 | 11,856 | 2,570 | 10,463 | 11,212 | 10,053 | ||||||||||||||||||||||||||||
Proportionate share of losses in investee companies and investment write-downs | 7,889 | 7,906 | 18,759 | 23,417 | 4,668 | 649 | 5,301 | 4,668 | 5,301 | ||||||||||||||||||||||||||||
Minority interest | — | (358 | ) | (699 | ) | (440 | ) | (545 | ) | (304 | ) | (541 | ) | (304 | ) | (541 | ) | ||||||||||||||||||||
Total earnings | $ | 105,185 | $ | 121,640 | $ | 158,958 | $ | 159,215 | $ | 906 | $ | 11,282 | $ | 2,144 | $ | 39,641 | $ | 33,694 | |||||||||||||||||||
Fixed Charges | |||||||||||||||||||||||||||||||||||||
Interest expense | $ | 2,315 | $ | 1,597 | $ | 12,007 | $ | 5,334 | $ | 12,200 | $ | 10,225 | $ | 21,882 | $ | 48,928 | $ | 45,150 | |||||||||||||||||||
Capitalization of interest expense | — | — | — | — | — | (64 | ) | (64 | ) | — | (64 | ) | |||||||||||||||||||||||||
Amortization of debt issue costs | — | — | — | — | 2,326 | 226 | 2,552 | 2,996 | 2,996 | ||||||||||||||||||||||||||||
Amortization of debt discount | — | — | — | — | — | (27 | ) | (27 | ) | (986 | ) | (986 | ) | ||||||||||||||||||||||||
Write-off of deferred financing costs | — | — | — | — | — | 5,548 | 5,548 | — | — | ||||||||||||||||||||||||||||
Portion of rent expense considered to represent interest (a) | 27,583 | 26,897 | 18,279 | 13,032 | 11,856 | 2,570 | 10,463 | 11,212 | 10,053 | ||||||||||||||||||||||||||||
Total fixed charges | $ | 29,898 | $ | 28,494 | $ | 30,286 | $ | 18,366 | $ | 26,382 | $ | 18,478 | $ | 40,354 | $ | 62,150 | $ | 57,149 | |||||||||||||||||||
Ratio | 3.52 | 4.27 | 5.25 | 8.67 | — | — | — | — | — | ||||||||||||||||||||||||||||
Fixed charges exceeded earnings by | $ | 25,476 | $ | 7,196 | $ | 38,210 | $ | 22,509 | $ | 23,455 |
(a) The Company considers one-third of rent expense to represent interest expense.