Walgreens Boots Alliance (WBA) 10-Q 2018 Q2 Quarterly report

Exhibit 12

Walgreens Boots Alliance, Inc.

Computation of Historical Ratios of Earnings to Fixed Charges (a)

(in millions, except ratio data)

	Six months ended			Twelve Months Ended,
	February 28, 2018			2017			2016			2015			2014			2013
Income before income tax provision	$	2,875		$	4,853		$	5,144		$	5,311		$	3,557		$	4,047
Add:
Minority Interests	—			—			—			—			—			5
Fixed Charges	1,150			2,379			2,367			2,054			1,376			1,383
Amortization of capitalized interest	—			—			—			1			6			7
Less:
Equity earnings	(47		)	(61		)	(37		)	(315		)	(617		)	(496		)
Capitalized interest	—			—			—			(1		)	(6		)	(7		)
Earnings as defined	$	3,978		$	7,171		$	7,474		$	7,050		$	4,316		$	4,939
Interest expense, net of capitalized interest	$	300		$	728		$	628		$	632		$	168		$	193
Capitalized interest	—			—			—			1			6			7
Portions of rentals representative of the interest factor	850			1,651			1,739			1,421			1,202			1,183
Fixed charges as defined	$	1,150		$	2,379		$	2,367		$	2,054		$	1,376		$	1,383
Ratio of earnings to fixed charges	3.46			3.01			3.16			3.43			3.14			3.57

(a) For the purpose of computing these ratios, "earnings" consist of earnings before income tax provision and before adjustment for income or loss from equity investees, interest, distributed income of equity-method investees, and the portions of rentals representative of the interest factor.  "Fixed charges" consist of interest expense (which includes amortization of capitalized debt issuance costs), capitalized interest and the portions of rentals representative of the interest factor.