Exhibit 12.1
PDL BIOPHARMA, INC.
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(Unaudited)
(Amount in thousands, except for ratios)
| For the Six Months Ended June 30, 2013 | ||||||||||||||||||||||||
| For the Years Ended December 31, | ||||||||||||||||||||||||
| 2008 | 2009 | 2010 | 2011 | 2012 | ||||||||||||||||||||
| Earnings: | ||||||||||||||||||||||||
| Income before income taxes | $ | 243,334 | $ | 280,285 | $ | 150,370 | $ | 307,428 | $ | 327,133 | $ | 218,245 | ||||||||||||
| Add: fixed charges | 14,285 | 19,430 | 43,578 | 36,153 | 29,097 | 12,081 | ||||||||||||||||||
| Earnings | $ | 257,619 | $ | 299,715 | $ | 193,948 | $ | 343,581 | $ | 356,230 | $ | 230,326 | ||||||||||||
| Fixed Charges: | ||||||||||||||||||||||||
Interest expense1 | $ | 14,219 | $ | 19,357 | $ | 43,529 | $ | 36,102 | $ | 29,036 | $ | 12,051 | ||||||||||||
Estimated interest portion of rent expense2 | 66 | 73 | 49 | 51 | 61 | 30 | ||||||||||||||||||
| Fixed charges | $ | 14,285 | 19,430 | $ | 43,578 | $ | 36,153 | $ | 29,097 | $ | 12,081 | |||||||||||||
| Ratio of earnings to fixed charges | 18.03 | 15.43 | 4.45 | 9.50 | 12.24 | 19.07 | ||||||||||||||||||
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1 Interest expense includes amortization of debt discount and expenses.
2 Represents the estimated portion of operating lease rental expense that is considered by us to be representative of interest and amortization of discount related to indebtedness.