EX-12 3 dex12.htm STATEMENT REGARDING COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES Statement regarding computation of ratio of earnings to fixed charges

Exhibit 12

 

CARDINAL HEALTH, INC.

COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

FOR THE FIVE FISCAL YEARS ENDED JUNE 30, 2005 AND

FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2005

 

     Fiscal Year Ended June 30,
     Three Months
Ended
September 30,
  

(in millions, except for ratios)

    2001
     2002
     2003
     2004
     2005
     2005
  

Earnings before income taxes, discontinued operations, and cumulative effect of change in accounting

    $ 1,340.8     $ 1,737.2     $ 2,088.9     $ 2,243.0     $ 1,690.2     $ 340.7  

Plus fixed charges:

                                                 

Interest expense

      158.1       134.2       119.6       101.9       167.9       45.8  

Capitalized interest

      2.7       3.9       6.3       8.1       8.2       1.2  

Amortization of debt offering costs

      2.3       3.1       3.3       3.6       3.4       0.8  

Interest portion of rent expense(1)

      37.5       32.9       18.4       20.2       24.9       7.5  
    
 
 
 
 
 

Fixed charges

      200.6       174.1       147.6       133.8       204.4       55.3  

Plus amortization of capitalized interest

      —         —         1.1       1.6       2.1       0.5  

Less capitalized interest

      (2.7 )     (3.9 )     (6.3 )     (8.1 )     (8.2 )     (1.2 )
    
 
 
 
 
 

Earnings

    $ 1,538.7     $ 1,907.4     $ 2,231.3     $ 2,370.3     $ 1,888.5     $ 395.3  
    
 
 
 
 
 

Ratio of Earnings to Fixed Charges

      7.7       11.0       15.1       17.7       9.2       7.2  
(1) Fixed charges include the interest portion of rent expense. In calculating the interest portion of rent expense in fiscal 2001 and 2002, Cardinal Health, Inc. used a prior convention which assumed that one-third of rental payments represented interest. Cardinal Health, Inc. refined its calculation for fiscal 2003, 2004 and 2005.