EX-12.1 2 l29927aexv12w1.htm EX-12.1 EX-12.1
 

EXHIBIT 12.1
CARDINAL HEALTH, INC.
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
                                                 
    Fiscal Years Ended September 30, 2007   Six Months Ended
(in millions, except for ratios)   2003   2004   2005   2006   2007   December 31, 2007
Earnings before income taxes, discontinued operations, and cumulative effect of change in accounting
  $ 1,824.8     $ 2,008.9     $ 1,664.4     $ 1,740.4     $ 1,252.3     $ 916.1  
 
                                               
Plus fixed charges:
                                               
Interest expense
    92.1       78.4       138.5       167.2       189.6       123.8  
Capitalized interest
    4.9       6.5       5.8       4.9       12.4       6.9  
Amortization of debt offering costs
    3.3       3.6       3.4       3.4       7.4       1.8  
Interest portion of rent expense(1)
    14.8       15.7       21.5       18.3       19.6       10.0  
 
                                               
Fixed charges
    115.1       104.2       169.2       193.8       229.0       142.5  
 
                                               
Plus amortization of capitalized interest
    1.1       1.6       2.1       2.0       1.2       0.4  
Less capitalized interest
    (4.9 )     (6.5 )     (5.8 )     (4.9 )     (12.4 )     (6.9 )
 
                                               
Earnings
  $ 1,936.1     $ 2,108.2     $ 1,829.9     $ 1,931.3     $ 1,470.1     $ 1,052.1  
 
                                               
Ratio of earnings to fixed charges
    16.8       20.2       10.8       10.0       6.4       7.4  
 
(1)   The ratio of earnings to fixed charges is computed by dividing fixed charges into earnings before income taxes, discontinued operations and cumulative effect of change in accounting plus fixed charges and capitalized interest. Fixed charges include interest expense, amortization of debt offering costs and the portion of rent expense which 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.