EX-12.1 4 dex121.htm COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES Computation of Ratio of Earnings to Fixed Charges

 

Exhibit 12.1

CARDINAL HEALTH, INC.

COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

 

      Fiscal Year Ended June 30,     For the Three
Months Ended,
September 30, 2010		  

(in millions, except for ratios)

    2006     2007     2008     2009     2010    

Earnings before income taxes and discontinued operations

    $ 1,316.3      $ 815.3      $ 1,295.1      $ 1,159.8      $ 1,211.6      $ 424.2   

Plus fixed charges:

             

Interest expense

      102.5        108.2        143.4        118.4        125.5        22.6   

Capitalized interest

      4.1        10.5        13.5        5.1        2.9        1.4   

Amortization of debt offering costs

      3.4        7.4        3.5        3.8        9.9        0.5   

Interest portion of rent expense

      16.8        15.6        12.2        11.1        6.0        1.7   
                                                

Fixed charges

      126.8        141.7        172.6        138.4        144.3        26.2   

Plus amortization of capitalized interest

      2.9        1.3        1.5        2.5        6.5        1.5   

Less capitalized interest

      (4.1 )      (10.5 )      (13.5 )      (5.1 )      (2.9 )      (1.4 ) 
                                                

Earnings

    $ 1,441.9      $ 947.8      $ 1,455.7      $ 1,295.6      $ 1,359.5      $ 450.5   
                                                

Ratio of earnings to fixed charges(1)

      11.4        6.7        8.4        9.4        9.4        17.2   

 

(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 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.