EX-12.1 2 l31740aexv12w1.htm EX-12.1 EX-12.1
Exhibit 12.1
CARDINAL HEALTH, INC.
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
                                                 
                                            For the Nine  
    Fiscal Year Ended June 30,     Months Ended,  
(in millions, except for ratios)   2003     2004     2005     2006     2007     March 31, 2008  
 
                                                
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     $ 1,461.5  
 
                                                
Plus fixed charges:
                                                
Interest expense
     92.1       78.4       138.5       167.2       189.6       178.1  
Capitalized interest
     4.9       6.5       5.8       4.9       12.4       11.2  
Amortization of debt offering costs
     3.3       3.6       3.4       3.4       7.4       2.6  
Interest portion of rent expense(1)
     14.8       15.7       21.5       18.3       19.6       14.4  
 
                                    
 
                                                
Fixed charges
     115.1       104.2       169.2       193.8       229.0       206.3  
 
                                                
Plus amortization of capitalized interest
     1.1       1.6       2.1       2.0       1.2       0.7  
Less capitalized interest
     (4.9 )     (6.5 )     (5.8 )     (4.9 )     (12.4 )     (11.2 )
 
                                                
 
                                    
Earnings
   $ 1,936.1     $ 2,108.2     $ 1,829.9     $ 1,931.3     $ 1,470.1     $ 1,657.3  
 
                                    
 
                                                
Ratio of earnings to fixed charges
     16.8       20.2       10.8       10.0       6.4       8.0  
 
(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.