Omnicare (OCR) 10-Q 2006 Q3 Quarterly report

EXHIBIT 12

Statement of Computation of Ratio of Earnings to Fixed Charges
Omnicare, Inc. and Subsidiary Companies
(in thousands, except ratio)
Unaudited

	Three months ended September 30,						Nine months ended September 30,
	2006			2005			2006			2005
Income before Income Taxes(1)	$	84,582		$	93,508		$	215,478		$	284,808
Add fixed charges:
Interest expense(2)		41,330			45,722			122,844			83,763
Amortization of debt expense		2,038			1,135			6,005			3,452
Interest portion of rent expense		6,041			5,091			17,240			13,594
Adjusted income(1) (2)	$	133,991		$	145,456		$	361,567		$	385,617
Fixed charges:
Interest expense(2)	$	41,330		$	45,722		$	122,844		$	83,763
Amortization of debt expense		2,038			1,135			6,005			3,452
Interest portion of rent expense		6,041			5,091			17,240			13,594
Fixed charges(2)	$	49,409		$	51,948		$	146,089		$	100,809
Ratio of earnings to fixed charges(3)		2.7	x		2.8	x		2.5	x		3.8	x

(1) Includes the following pretax charges:

	Three months ended September 30,				Nine months ended September 30,
	2006		2005		2006		2005
Restructuring and other related charges (a)	$	5,119	$	8,950	$	24,721	$	8,950
Litigation charges (b)		9,886		—		118,818		—
Heartland matters (b)		24,985		—		24,985		—

(a)	See the “Restructuring and Other Related Charges” note of the Notes to the Consolidated Financial Statements.
(b)	See the “Commitments and Contingencies” note of the Notes to the Consolidated Financial Statements.
(2)	Includes the following pretax charges:

Call premium and write-off of unamortized debt issuance costs (c) $ — $ 7,465 $ — $ 7,465

(c)	See the “Debt” note of the Notes to the Consolidated Financial Statements.
(3)	The ratio of earnings to fixed charges has been computed by adding income before income taxes and fixed charges to derive adjusted income, and dividing adjusted income by fixed charges. Fixed charges consist of interest expense on debt (including the amortization of debt expense) and one-third (the proportion deemed representative of the interest portion) of rent expense.