Exhibit 12.1
Catamaran Corporation
Ratios of Earnings to Fixed Charges
(dollars in thousands)
Earnings: | 2013 | Pro-forma adjustments (4) | Pro-forma Calculation | |||||||||
Income before income taxes | $ | 402,142 | $ | (18,320 | ) | $ | 383,822.00 | |||||
Less non-controlling interest (1) | (36,569 | ) | — | (36,569 | ) | |||||||
Add fixed charges: | ||||||||||||
Interest expense (2) | 39,116 | 18,320 | 57,436 | |||||||||
Interest portion of consolidated rent expense (3) | 11,766 | — | 11,766 | |||||||||
Adjusted earnings | $ | 416,455 | $ | — | $ | 416,455 | ||||||
Fixed charges: | ||||||||||||
Interest expense | $ | 39,116 | $ | 18,320 | $ | 57,436 | ||||||
Interest portion of consolidated rent expense | 11,766 | 11,766 | ||||||||||
Total fixed charges | $ | 50,882 | $ | 69,202 | ||||||||
Ratio of earnings to fixed charges | 8.18 x | 6.02x |
(1) | Non-controlling interest is not included in earnings contributed to the Company. |
(2) | Interest expense on income tax contingencies is not included in fixed charges. |
(3) | One third of rental expenses was used to represent the interest factor of rental expenses. |
(4) | The ratio of earnings to fixed charges for the year ended December 31, 2013 has been adjusted on a pro forma basis to give effect to the offer and sale of $500.0 million aggregate principal amount of Catamaran Corporation’s 4.75% Senior Notes due 2021 and the use of the net proceeds therefrom to repay $300.0 million of outstanding borrowings under Catamaran Corporation’s senior secured revolving credit facility, as if such events occurred on January 1, 2013. |