EX-12.1 6 hsp-ex121_12312012x10k.htm EXHIBIT HSP-EX 12.1_12.31.2012_10K


Exhibit 12.1
 
Hospira, Inc.
 
Computation of Ratio of Earnings to Fixed Charges
 
(Unaudited)
 
(dollars in millions except ratios)
 
 
For the Years Ended
 
2012
 
2011
 
2010
 
2009
 
2008
(Loss) Income from Continuing Operations Before Income Taxes
$
(41.9
)
 
$
(27.1
)
 
$
379.3

 
$
384.8

 
$
407.5

Add:
 

 
 
 
 
 
 
 
 
One-third of rents
13.7

 
10.9

 
9.1

 
10.0

 
8.8

Interest expense
86.3

 
93.1

 
101.1

 
106.3

 
116.2

Amortization of capitalized interest
7.2

 
6.1

 
2.8

 
0.5

 
3.0

 
 

 
 
 
 
 
 
 
 
Earnings from Continuing Operations
$
65.3

 
$
83.0

 
$
492.3

 
$
501.6

 
$
535.5

 
 

 
 
 
 
 
 
 
 
Fixed charges:
 

 
 
 
 
 
 
 
 
One-third of rents
$
13.7

 
$
10.9

 
$
9.1

 
$
10.0

 
$
8.8

Interest expense
86.3

 
93.1

 
101.1

 
106.3

 
116.2

Interest capitalized
18.8

 
12.4

 
8.4

 
5.8

 
8.0

 
 

 
 
 
 
 
 
 
 
Fixed Charges from Continuing Operations
$
118.8

 
$
116.4

 
$
118.6

 
$
122.1

 
$
133.0

 
 

 
 
 
 
 
 
 
 
Ratio of Earnings to Fixed Charges from Continuing Operations
0.5

 
0.7

 
4.2

 
4.1

 
4.0

 
For purposes of computing this ratio, “earnings” consist of income (loss) from continuing operations before taxes, one-third of rents (deemed by Hospira to be representative of the interest factor inherent in rents), interest expense and amortization of capitalized interest.  “Fixed charges” consist of one-third of rents, interest expense and interest capitalized.