EX-12.1 6 a10-kexhibit121.htm COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES 10-K Exhibit 12.1


Exhibit 12.1
Cardinal Health, Inc. and Subsidiaries
Computation Of Ratio of Earnings To Fixed Charges
 
June 30,
(in millions, except for ratios) 
2008
 
2009
 
2010
 
2011
 
2012
Earnings before income taxes and discontinued operations
$
1,295

 
$
1,160

 
$
1,212

 
$
1,518

 
$
1,698

Plus fixed charges:
 

 
 

 
 

 
 

 
 

Interest expense
143

 
118

 
125

 
95

 
92

Capitalized interest
14

 
5

 
3

 
6

 
6

Amortization of debt offering costs
4

 
4

 
10

 
2

 
3

Interest portion of rent expense
12

 
11

 
6

 
7

 
8

Fixed charges
173

 
138

 
144

 
110

 
109

Plus: amortization of capitalized interest
2

 
3

 
7

 
6

 
3

Less: capitalized interest
(14
)
 
(5
)
 
(3
)
 
(6
)
 
(6
)
Earnings
$
1,456

 
$
1,296

 
$
1,360

 
$
1,628

 
$
1,804

 
 

 
 

 
 

 
 

 
 

Ratio of earnings to fixed charges (1)
8.4

 
9.4

 
9.4

 
14.8

 
16.6

(1) The ratio of earnings to fixed charges is computed by dividing fixed charges into earnings before income taxes and discontinued operations plus fixed charges and capitalized interest. Fixed charges include interest expense, amortization of debt offering costs and the portion of rent expense that 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.