EX-12 20 ex12.htm EXHIBIT 12
Exhibit 12
 
Walgreens Boots Alliance, Inc.
Computation of Historical Ratios of Earnings to Fixed Charges (a)
(in millions, except ratio data)
 
 
  
Six Months Ended,
    
Twelve Months Ended August 31,
  
 
  
February 28, 2015
    
2014
    
2013
    
2012
    
2011
    
2010
  
Income before income tax provision
  
$
3,641
    
$
3,557
    
$
4,047
    
$
3,376
    
$
4,294
    
$
3,373
  
Add:
                                                
Minority Interests
    
-
      
-
      
5
      
-
      
-
      
-
  
Fixed charges
    
875
      
1,376
      
1,383
      
1,260
      
1,212
      
1,100
  
Amortization of capitalized interest
    
1
      
6
      
7
      
6
      
5
      
-
  
Less:
                                                
Equity earnings
    
(315
)
    
(617
)
    
(496
)
    
-
      
-
      
-
  
Capitalized interest
    
(1
)
    
(6
)
    
(7
)
    
(9
)
    
(10
)
    
(12
)
Earnings as defined
  
$
4,201
    
$
4,316
    
$
4,939
    
$
4,633
    
$
5,501
    
$
4,461
  
                                                 
Interest expense, net of capitalized interest
  
$
209
    
$
168
    
$
193
    
$
94
    
$
77
    
$
90
  
Capitalized interest
    
1
      
6
      
7
      
9
      
10
      
12
  
Portions of rentals representative of the interest factor
    
665
      
1,202
      
1,183
      
1,157
      
1,125
      
998
  
Fixed charges as defined
  
$
875
    
$
1,376
    
$
1,383
    
$
1,260
    
$
1,212
    
$
1,100
  
                                                 
Ratio of earnings to fixed charges
    
4.80
      
3.14
      
3.57
      
3.68
      
4.54
      
4.06
  
 
(a)
For the purpose of computing these ratios, "earnings" consist of earnings before income tax provision and before adjustment for income or loss from equity investees, interest, distributed income of equity-method investees, and the portions of rentals representative of the interest factor.  "Fixed charges" consist of interest expense (which includes amortization of capitalized debt issuance costs), capitalized interest and the portions of rentals representative of the interest factor.
 
Walgreens Boots Alliance, Inc. is the successor of Walgreen Co. See Note 1 of the consolidated financial statements for further information