EX-12.1 5 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,  

(in millions, except for ratios)

   2007     2008     2009     2010     2011  

Earnings before income taxes and discontinued operations

   $ 815.3      $ 1,295.1      $ 1,159.8      $ 1,211.6      $ 1,518.3   

Plus fixed charges:

          

Interest expense

     108.2        143.4        118.4        125.5        95.2   

Capitalized interest

     10.5        13.5        5.1        2.9        5.7   

Amortization of debt offering costs

     7.4        3.5        3.8        9.9        1.8   

Interest portion of rent expense

     15.6        12.2        11.1        6.0        7.1   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Fixed charges

     141.7        172.6        138.4        144.3        109.8   

Plus amortization of capitalized interest

     1.3        1.5        2.5        6.5        5.3   

Less capitalized interest

     (10.5     (13.5     (5.1     (2.9     (5.7
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Earnings

   $ 947.8      $ 1,455.7      $ 1,295.6      $ 1,359.5      $ 1,627.7   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Ratio of earnings to fixed charges (1)

     6.7        8.4        9.4        9.4        14.8   

 

(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.