EX-12.1 3 a58840exv12w1.htm EX-12.1 exv12w1
Exhibit 12.1
 
Molina Healthcare, Inc.
 
Computation of Ratio of Earnings to Fixed Charges
 
                                         
    Year Ended December 31,  
    2010     2009(1)     2008(1)     2007     2006  
          (Dollars in thousands)        
 
Earnings:
                                       
Income before income taxes
  $ 89,492     $ 38,157     $ 94,324     $ 92,722     $ 73,458  
Add fixed charges:
                                       
Interest expense, including amortization of debt discount and exp
    15,509       13,777       13,231       5,605       2,353  
Estimated interest portion of rental expense
    4,524       5,181       4,370       3,988       2,682  
                                         
Total fixed charges
    20,033       18,958       17,601       9,593       5,035  
                                         
Total earnings available for fixed charges
  $ 109,525     $ 57,115     $ 111,925     $ 102,315     $ 78,493  
                                         
Fixed Charges from above
  $ 20,033     $ 18,958     $ 17,601     $ 9,593     $ 5,035  
                                         
Ratio of Earnings to Fixed Charges
    5.6       3.0       6.4       10.7       15.6  
                                         
Total rent expense
  $ 25,134     $ 20,723     $ 17,481     $ 18,127     $ 12,193  
Interest factor
    18 %     25 %     25 %     22 %     22 %
                                         
Interest component of rental expense
  $ 4,524     $ 5,181     $ 4,370     $ 3,988     $ 2,682  
                                         
 
 
(1) Effective January 1, 2008 through December 31, 2009, income tax expense included both the Michigan business income tax, or BIT, and Michigan modified gross receipts tax, or MGRT. Effective January 1, 2010, we have recorded the MGRT as a premium tax and not as an income tax. We will continue to record the BIT as an income tax. For the years ended December 31, 2009, and 2008, amounts for premium tax expense and income tax expense have been reclassified to conform to this presentation. The MGRT amounted to $6.2 million, $5.5 million, and $5.1 million for the years ended December 31, 2010, 2009, and 2008, respectively.