EX-99.1 2 y59836exv99w1.htm EX-99.1: COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES EX-99.1
EXHIBIT 99.1
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
The following table sets forth the ratio of earnings to fixed charges for Reuters Group PLC for the periods presented. For purposes of reporting with the US Securities and Exchange Commission (SEC), Thomson Reuters PLC is a successor issuer to Reuters Group PLC. The information below was derived from audited financial statements previously filed by Reuters Group PLC with the SEC. We computed the ratios of earnings to fixed charges by dividing the amount of total earnings by the amount of total fixed charges.
                                         
    Year Ended December 31,  
    2007     2006     2005     2004     2003  
(in millions of British pounds sterling, except for ratios)   IFRS     IFRS     IFRS     IFRS     UK GAAP  
 
                                        
Earnings
                                        
Earnings from continuing operations before income taxes
   £ 281     £ 320     £ 237     £ 389     £ 94  
Fixed charges
     70       57       59       68       99  
Total
   £ 351     £ 377     £ 296     £ 457     £ 193  
 
                                        
Fixed Charges
                                        
Interest expense
   £ 46     £ 32     £ 28     £ 27     £ 47  
Estimated interest component of rental expense
     24       25       31       41       52  
Total
   £ 70     £ 57     £ 59     £ 68     £ 99  
 
                                        
Ratio of Earnings to Fixed Charges
     5.01 x     6.61 x     5.02 x     6.72 x     1.95 x
The ratios above for 2005, 2006 and 2007 reflect Reuters Group PLC’s adoption of IAS 39 in 2005.

 

 

The following table sets forth the ratio of earnings to fixed charges for Reuters Group PLC for the applicable periods under US GAAP.
                                 
    Year Ended December 31,  
    2006     2005     2004     2003  
(in millions of British pounds sterling, except for ratios)   US GAAP     US GAAP     US GAAP     US GAAP  
 
                                
Earnings
                                
Earnings (loss) from continuing operations before income taxes
   £ 350     £ 162     £ 519     £ (14)  
Fixed charges
     57       59       68       99  
Total
   £ 407     £ 221     £ 587     £ 85  
 
                                
Fixed Charges
                                
Interest expense
   £ 32     £ 28     £ 27     £ 47  
Estimated interest component of rental expense
     25       31       41       52  
Total
   £ 57     £ 59     £ 68     £ 99  
 
                                
Ratio of Earnings to Fixed Charges
     7.14 x      3.75 x      8.63 x      N/A  
 
For 2003, earnings were insufficient to cover fixed charges. Additional earnings from continuing operations before income taxes of £14 million would have been required to attain a ratio of earnings to fixed charges of 1.00.