Exhibit 12.1
CARDINAL HEALTH, INC.
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
For the Nine | ||||||||||||||||||||||||
Fiscal Year Ended June 30, | Months Ended, | |||||||||||||||||||||||
(in millions, except for ratios) | 2003 | 2004 | 2005 | 2006 | 2007 | March 31, 2008 | ||||||||||||||||||
Earnings before income taxes, discontinued operations, and cumulative effect of change in accounting | $ | 1,824.8 | $ | 2,008.9 | $ | 1,664.4 | $ | 1,740.4 | $ | 1,252.3 | $ | 1,461.5 | ||||||||||||
Plus fixed charges: | ||||||||||||||||||||||||
Interest expense | 92.1 | 78.4 | 138.5 | 167.2 | 189.6 | 178.1 | ||||||||||||||||||
Capitalized interest | 4.9 | 6.5 | 5.8 | 4.9 | 12.4 | 11.2 | ||||||||||||||||||
Amortization of debt offering costs | 3.3 | 3.6 | 3.4 | 3.4 | 7.4 | 2.6 | ||||||||||||||||||
Interest portion of rent expense(1) | 14.8 | 15.7 | 21.5 | 18.3 | 19.6 | 14.4 | ||||||||||||||||||
Fixed charges | 115.1 | 104.2 | 169.2 | 193.8 | 229.0 | 206.3 | ||||||||||||||||||
Plus amortization of capitalized interest | 1.1 | 1.6 | 2.1 | 2.0 | 1.2 | 0.7 | ||||||||||||||||||
Less capitalized interest | (4.9 | ) | (6.5 | ) | (5.8 | ) | (4.9 | ) | (12.4 | ) | (11.2 | ) | ||||||||||||
Earnings | $ | 1,936.1 | $ | 2,108.2 | $ | 1,829.9 | $ | 1,931.3 | $ | 1,470.1 | $ | 1,657.3 | ||||||||||||
Ratio of earnings to fixed charges | 16.8 | 20.2 | 10.8 | 10.0 | 6.4 | 8.0 |
(1) | The ratio of earnings to fixed charges is computed by dividing fixed charges into earnings before income taxes, discontinued operations and cumulative effect of change in accounting plus fixed charges and capitalized interest. Fixed charges include interest expense, amortization of debt offering costs and the portion of rent expense which is deemed to be representative of the interest factor. Interest expense recorded on tax exposures has been recorded in income tax expense and has therefore been excluded from the calculation. |