EXHIBIT 12.3
DELUXE CORPORATION
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
Nine Months
Ended Years Ended December 31,
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September 30, 1998 1997 1996 1995 1994 1993 1992
(As restated)(1) ---- ---- ---- ---- ---- ----
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Earnings
- --------
Income from Continuing Operations
before Income Taxes $ 146,560 $ 115,150 $ 118,765 $ 169,319 $ 246,706 $ 235,913 $ 324,783
Interest expense
(excluding capitalized interest) 6,293 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 10,803 13,621 13,467 14,761 13,554 13,259 12,923
Amortization of debt expense 91 122 121 84 84 84 84
--------- --------- --------- --------- --------- --------- ---------
TOTAL EARNINGS $ 163,747 $ 137,715 $ 143,002 $ 197,262 $ 270,077 $ 259,326 $ 353,161
Fixed charges
- -------------
Interest Expense
(including capitalized interest) 7,378 $ 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 10,803 13,621 13,467 14,761 13,554 13,259 12,923
Amortization of debt expense 91 122 121 84 84 84 84
--------- --------- --------- --------- --------- --------- ---------
TOTAL FIXED CHARGES $ 18,272 $ 23,485 $ 25,566 $ 29,559 $ 24,130 $ 23,898 $ 28,831
RATIO OF EARNINGS
TO FIXED CHARGES: 9.0 5.9 5.6 6.7 11.2 10.9 12.2
(1) Subsequent to the issuance of the Company's Quarterly Report on Form 10-Q
for the quarter ended September 30, 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 third quarter of 1998. See Note 2 in the Notes to Consolidated Financial
Statements contained in the Company's Amendment No. 1 to the Quarterly
Report on Form 10-Q for the quarter ended September 30, 1998.