Chemed (CHE) 10-K 2016 FY Annual report

EXHIBIT 12

CHEMED CORPORATION
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(in thousands, except ratios)
	2012			2013			2014			2015			2016
Pretax income from continuing operations	$	145,819		$	123,829		$	162,754		$	180,126		$	177,054
Additions:
Fixed charges		28,021			28,032			21,388			16,985			17,060
Amortization of capitalized interest		435			435			435			435			435
Adjusted income	$	174,275		$	152,296		$	184,577		$	197,546		$	194,549
Fixed Charges:
Interest expense	$	14,723		$	15,035		$	8,186		$	3,645		$	3,715
Interest component of rental expense		13,298			12,997			13,202			13,340			13,345
Fixed charges	$	28,021		$	28,032		$	21,388		$	16,985		$	17,060
Ratio of earnings to fixed charges (a)		6.2	x		5.4	x		8.6	x		11.6	x		11.4	x
(a) For purposes of computing the ratio of earnings to fixed charges, pretax income from continuing operations has
been added to fixed charges and adjusted for capitalized interest to derive adjusted income. Fixed charges consist
of interest expense on debt (including the amortization of deferred financing costs), prepayment penalties on the
early extinguishment of debt and one-third (the proportion deemed representative of the interest component) of
rental expense. Fixed charge amounts include interest from both continuing and discontinued operations.

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