EXHIBIT 12.1
EXPRESS SCRIPTS HOLDING COMPANY
Calculation of Ratio of Earnings to Fixed Charges
(Dollar amounts in millions)
| Year Ended December 31, | ||||||||||||||||||||
| 2015 | 2014 | 2013 | 2012 | 2011 | ||||||||||||||||
Income from continuing operations before income taxes(1) | $ | 3,859.6 | $ | 3,056.1 | $ | 3,012.0 | $ | 2,188.5 | $ | 2,027.1 | ||||||||||
Add: | ||||||||||||||||||||
Interest expense(2) | 498.7 | 511.4 | 529.1 | 619.0 | 299.7 | |||||||||||||||
Estimated interest component of rental expense | 20.8 | 19.9 | 20.7 | 34.5 | 10.1 | |||||||||||||||
Subtract: | ||||||||||||||||||||
Income attributable to non-controlling interest | (23.1 | ) | (27.4 | ) | (28.1 | ) | (17.2 | ) | (2.7 | ) | ||||||||||
Income as adjusted | $ | 4,356.0 | $ | 3,560.0 | $ | 3,533.7 | $ | 2,824.8 | $ | 2,334.2 | ||||||||||
Fixed charges: | ||||||||||||||||||||
Interest expense(2) | 498.7 | 511.4 | 529.1 | 619.0 | 299.7 | |||||||||||||||
Estimated interest component of rental expense | 20.8 | 19.9 | 20.7 | 34.5 | 10.1 | |||||||||||||||
Total fixed charges | $ | 519.5 | $ | 531.3 | $ | 549.8 | $ | 653.5 | $ | 309.8 | ||||||||||
Ratio of Earnings to Fixed Charges | 8.4 | 6.7 | 6.4 | 4.3 | 7.5 | |||||||||||||||
| (1) | Consists of income from continuing operations before income taxes adjusted to include distributed equity income from joint venture. |
| (2) | Interest expense for the year ended December 31, 2015 excludes the one time $1.6 million interest expense related to the early repayment of our 2011 credit agreement. Interest expense for the year ended December 31, 2014 excludes the one time $71.5 million interest expense related to the redemption of our $1,250.0 million aggregate principal amount of 3.500% senior notes due 2016. Interest expense for the year ended December 31, 2013 excludes the one time $67.0 million interest expense related to the redemption of ESI’s $1,000.0 million aggregate principal amount of 6.250% senior notes due 2014. |
Note: Interest component of rental expense estimated to be 1/3 of rental expense, which management believes represents a reasonable approximation of the interest factor.