Walgreens Boots Alliance (WBA) 10-Q 2018 Q3 Quarterly report

Exhibit 12

Walgreens Boots Alliance, Inc.

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

(in millions, except ratio data)

	Nine months ended			Twelve Months Ended,
	May 31, 2018			2017			2016			2015			2014			2013
Income before income tax provision	$	4,314		$	4,853		$	5,144		$	5,311		$	3,557		$	4,047
Add:
Minority Interests	—			—			—			—			—			5
Fixed Charges	1,653			2,379			2,367			2,054			1,376			1,383
Amortization of capitalized interest	—			—			—			1			6			7
Less:
Equity earnings	(78		)	(61		)	(37		)	(315		)	(617		)	(496		)
Capitalized interest	—			—			—			(1		)	(6		)	(7		)
Earnings as defined	$	5,889		$	7,171		$	7,474		$	7,050		$	4,316		$	4,939
Interest expense, net of capitalized interest	$	463		$	728		$	628		$	632		$	168		$	193
Capitalized interest	—			—			—			1			6			7
Portions of rentals representative of the interest factor	1,190			1,651			1,739			1,421			1,202			1,183
Fixed charges as defined	$	1,653		$	2,379		$	2,367		$	2,054		$	1,376		$	1,383
Ratio of earnings to fixed charges	3.56			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.

On December 31, 2014, Walgreens Boots Alliance became the successor of Walgreen Co. pursuant to a merger designed to effect a reorganization of Walgreen Co. into a holding company structure. See note 1 to Walgreens Boots Alliance’s Annual Report on Form 10-K for the fiscal year ended August 31, 2017 for additional information.