EXHIBIT 12.1
EXPRESS SCRIPTS HOLDING COMPANY
Calculation of Ratio of Earnings to Fixed Charges
(Dollar amounts in millions)
| Nine Months Ended September 30, | Year Ended December 31, | |||||||||||||||||||||||||||
| 2017 | 2016 | 2016 | 2015 | 2014 | 2013 | 2012 | ||||||||||||||||||||||
Income from continuing operations before income taxes(1) | $ | 3,493.2 | $ | 3,084.5 | $ | 4,421.5 | $ | 3,859.6 | $ | 3,056.1 | $ | 3,012.0 | $ | 2,188.5 | ||||||||||||||
Add: | ||||||||||||||||||||||||||||
Interest expense(2) | 439.9 | 406.1 | 552.1 | 498.7 | 511.4 | 529.1 | 619.0 | |||||||||||||||||||||
Estimated interest component of rental expense | 16.8 | 15.3 | 21.0 | 20.8 | 19.9 | 20.7 | 34.5 | |||||||||||||||||||||
Subtract: | ||||||||||||||||||||||||||||
Income attributable tonon-controlling interest | (11.0 | ) | (18.1 | ) | (23.2 | ) | (23.1 | ) | (27.4 | ) | (28.1 | ) | (17.2 | ) | ||||||||||||||
Income as adjusted | $ | 3,938.9 | $ | 3,487.8 | $ | 4,971.4 | $ | 4,356.0 | $ | 3,560.0 | $ | 3,533.7 | $ | 2,824.8 | ||||||||||||||
Fixed charges: | ||||||||||||||||||||||||||||
Interest expense(2) | 439.9 | 406.1 | 552.1 | 498.7 | 511.4 | 529.1 | 619.0 | |||||||||||||||||||||
Estimated interest component of rental expense | 16.8 | 15.3 | 21.0 | 20.8 | 19.9 | 20.7 | 34.5 | |||||||||||||||||||||
Total fixed charges | $ | 456.7 | $ | 421.4 | $ | 573.1 | $ | 519.5 | $ | 531.3 | $ | 549.8 | $ | 653.5 | ||||||||||||||
Ratio of Earnings to Fixed Charges | 8.6 | 8.3 | 8.7 | 8.4 | 6.7 | 6.4 | 4.3 | |||||||||||||||||||||
| (1) | Consists of income from continuing operations before income taxes adjusted to include distributed equity income from joint venture. |
| (2) | Interest expense for the nine months ended September 30, 2016 and the year ended December 31, 2016 excludes $6.7 million of interest expense related to the redemption of our $1,500.0 million aggregate principal amount of 3.125% senior notes due May 2016 and $136.0 million of interest expense related to the redemption of our $1,500.0 million aggregate principal amount of 2.650% senior notes due February 2017 and the tender offers for $368.6 million of our $1,200.0 million aggregate principal amount of 7.125% senior notes due March 2018, $162.6 million of our $500.0 million aggregate principal amount of 7.250% senior notes due June 2019 and $251.3 million of our $700.0 million aggregate principal amount of 6.125% senior notes due November 2041. Interest expense for the year ended December 31, 2015 excludes $1.6 million of interest expense related to the early repayment of our 2011 credit agreement. Interest expense for the year ended December 31, 2014 excludes $71.5 million of interest expense related to the redemption of our $1,250.0 million aggregate principal amount of 3.500% senior notes due November 2016. Interest expense for the year ended December 31, 2013 excludes $67.0 million of interest expense related to the redemption of ESI’s $1,000.0 million aggregate principal amount of 6.250% senior notes due June 2014. |
Note: Interest component of rental expense estimated to be 1/3 of rental expense, which management believes represents a reasonable approximation of the interest factor.
