DELUXE CORPORATION EXHIBIT 12.5
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
Year
Ended Years Ended December 31,
----- -----------------------------------------------------------------
December 31, 1998 1997 1996 1995 1994 1993 1992
(As restated)(1) ---- ---- ---- ---- ---- ----
Earnings
- --------
Income from Continuing Operations
before Income Taxes $242,915 $115,150 $118,765 $169,319 $246,706 $235,913 $324,783
Interest expense
(excluding capitalized interest) 8,273 8,822 10,649 13,099 9,733 10,070 15,371
Portion of rent expense under
long-term operating leases
representative of an interest factor 15,126 13,621 13,467 14,761 13,554 13,259 12,923
Amortization of debt expense 122 122 121 84 84 84 84
-------- -------- -------- -------- -------- -------- --------
TOTAL EARNINGS $266,436 $137,715 $143,002 $197,262 $270,077 $259,326 $353,161
Fixed charges
- -------------
Interest Expense
(including capitalized interest) 9,664 $ 9,742 $ 11,978 $ 14,714 $ 10,492 $ 10,555 $ 15,824
Portion of rent expense under
long-term operating leases
representative of an interest factor 15,126 13,621 13,467 14,761 13,554 13,259 12,923
Amortization of debt expense 122 122 121 84 84 84 84
-------- -------- -------- -------- -------- -------- --------
TOTAL FIXED CHARGES $ 24,912 $ 23,485 $ 25,566 $ 29,559 $ 24,130 $ 23,898 $ 28,831
RATIO OF EARNINGS
TO FIXED CHARGES: 10.7 5.9 5.6 6.7 11.2 10.9 12.2
(1)Subsequent to the issuance of the Company's Annual Report on Form 10-K for
the year ended December 31, 1998, and after discussions with the Securities and
Exchange Commission, which concluded in September 1999, the Company revised its
accounting treatment for future losses on long-term contracts and relationships
and its calculation of impairment charges on long-lived assets related to the
Company's Deluxe Government Services segment. As a result, the Company has
restated its financial information for the year ended December 31, 1998. See
Note 16 in the Notes to Consolidated Financial Statements contained in the
Company's Amendment No. 1 to the Annual Report on Form 10-K for the year ended
December 31, 1998.