EX-12 2 exhibit12computationofrati.htm EXHIBIT 12 Exhibit


Exhibit 12

AmerisourceBergen Corporation
Computation of Ratio of Earnings to Fixed Charges


 
 
Fiscal Year Ended September 30,
(in thousands, except ratios)
 
2017
 
2016
 
2015
 
2014
 
2013
Determination of earnings:
 
 
 
 
 
 
 
 
 
 
Income from continuing operations before income taxes
 
$
917,887

 
$
1,390,910

 
$
268,964

 
$
669,863

 
$
822,032

Add:
 
 
 
 
 
 
 
 
 
 
Loss (gain) on equity investments
 
8,822

 
(582
)
 
30,833

 
172

 
113

Fixed charges (excluding capitalized interest)
 
161,153

 
157,666

 
123,818

 
95,760

 
92,352

Amortization of capitalized interest
 
1,676

 
1,676

 
1,676

 
1,676

 
1,635

Total earnings available for fixed charges
 
$
1,089,538

 
$
1,549,670

 
$
425,291

 
$
767,471

 
$
916,132

 
 
 
 
 
 
 
 
 
 
 
Fixed charges:
 
 
 
 
 
 
 
 
 
 
Interest expense
 
$
149,042

 
$
144,349

 
$
112,021

 
$
84,475

 
$
81,477

Capitalized interest
 
1,269

 
—

 
—

 
—

 
—

Estimated interest portion of rent expense
 
12,111

 
13,317

 
11,797

 
11,285

 
10,875

Total fixed charges
 
$
162,422

 
$
157,666

 
$
123,818

 
$
95,760

 
$
92,352

Ratio of earnings to fixed charges 1
 
6.7
 
9.8
 
3.4
 
8.0
 
9.9
____________________
1 For purposes of computing the above ratios:
•
Earnings include $914.4 million of charges for litigation settlements and accruals in the fiscal year ended September 30, 2017.
•
Earnings include Warrants expense, a non-cash expense, of $140.3 million, $912.7 million, $422.7, and $90.1 million in the fiscal years ended September 30, 2016, 2015, 2014, and 2013, respectively.
•
Loss (gain) on equity investments includes an impairment charge of $30.6 million in fiscal 2015 related to the Company's minority interest in a pharmaceutical wholesaler in Brazil. There was no such impairment charge recorded in the fiscal years ended September 30, 2017, 2016, 2014, or 2013, respectively.