EX-99.4 5 exhibit99_4.htm EXHIBIT 99.4 exhibit99_4.htm
EXHIBIT 99.4


EXHIBIT 12
                                       
Statement of Computation of Ratio of Earnings to Fixed Charges
Omnicare, Inc. and Subsidiary Companies
(in thousands, except ratio)
                                         
   
For the years ended December 31,
   
2010
     
2009
     
2008
     
2007
     
2006
   
Income from continuing operations before income taxes
  $ 33,508   (2)    $ 331,551   (2)    $ 219,610   (2)    $ 148,904   (2)    $ 288,826   (2) 
Add fixed charges:
                                                 
Interest expense
    115,479         114,304         135,155         155,857         161,875    
Amortization of discount on convertible notes (1)
    29,536         27,977         25,934         24,041         22,286    
Amortization of debt issuance expense
    5,944         5,589         7,896         7,209         7,278    
Interest expense-special items
    14,297   (2)      -         -         -         -    
Interest portion of rent expense
    20,926         23,049         25,157         23,794         22,459    
Adjusted income
  $ 219,690       $ 502,470       $ 413,752       $ 359,805       $ 502,724    
                                                   
Fixed charges:
                                                 
Interest expense
  $ 115,479       $ 114,304       $ 135,155       $ 155,857       $ 161,875    
Amortization of discount on convertible notes (1)
    29,536         27,977         25,934         24,041         22,286    
Amortization of debt issuance expense
    5,944         5,589         7,896         7,209         7,278    
Interest expense-special items
    14,297   (2)      -         -         -         -    
Interest portion of rent expense
    20,926         23,049         25,157         23,794         22,459    
Fixed charges
  $ 186,182       $ 170,919       $ 194,142       $ 210,901       $ 213,898    
                                                   
Ratio of earnings to fixed charges(3)
    1.2  x       2.9  x       2.1  x       1.7  x       2.4  x  

(1)  
See the “Debt” note of the Notes to Consolidated Financial Statements.
(2)  
Certain of the Company’s debt agreements and indentures provide for the exclusion of various special charges/(credits) from applicable financial covenant coverage calculations.  The following listing of charges/(credits), which are included in the Company’s income from continuing operations before income taxes, includes certain of these excludable charges/(credits) for the years ended December 31 (in thousands):

   
2010
   
2009
   
2008
   
2007
   
2006
 
Restructuring and other related charges (a)
  $ 17,165     $ 19,814     $ 34,089     $ 25,116     $ 27,188  
Settlement, litigation and other related charges (b)
    113,709       77,449       99,267       42,516       125,128  
Goodwill and other asset impairment charges (c)
    22,884       -       -       -       -  
Separation, benefit plan termination and related costs (d)
    64,760       -       -       -       -  
Other expense (b)(e)(f)(g)(a)
    87,316       5,893       6,445       17,193       39,858  
Total - non-interest expense special items
  $ 305,834     $ 103,156     $ 139,801     $ 84,825     $ 192,174  
                                         
Interest expense special items (e)
  $ 14,297     $ -     $ -     $ -     $ -  
                                         
(a) See the "Restructuring and Other Related Charges" note of the Notes to Consolidated Financial Statements.
 
(b) See the "Commitments and Contingencies" note of the Notes to the Consolidated Financial Statements.
 
(c) See the "Goodwill and Other Intangible Assets" note of the Notes to the Consolidated Financial Statements.
 
(d) See the "Separation, Benefit Plan Termination and Related Costs" note of the Notes to the Consolidated Financial Statements.
 
(e) See the "Debt" note of the Notes to the Consolidated Financial Statements.
 
(f) See the "Acquisitions" note of the Notes to the Consolidated Financial Statements.
 
(g) See the "Stock-Based Compensation" note of the Notes to Consolidated Financial Statements.
 
For the 2007 and 2006 years data, see the respective note in that years consolidated financial statements for additional information on the nature of the charge reflected above
 
 
 
(3)  
The ratio of earnings to fixed charges has been computed by adding income before income taxes and fixed charges to derive adjusted income, and dividing adjusted income by fixed charges.  Fixed charges consist of interest expense on debt (including the amortization of debt expense) and one-third (the proportion deemed representative of the interest portion) of rent expense.