EX-12.1 10 exhibit121-computationofra.htm EXHIBIT 12.1 Exhibit

Exhibit 12.1
 
HealthSouth Corporation and Subsidiaries
 
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
 
In computing the ratio of earnings to fixed charges: (1) earnings have been based on income from continuing operations before income taxes, fixed charges (exclusive of interest capitalized), and distributed income of equity investees and (2) fixed charges consist of interest and amortization of debt discounts and fees expense (including amounts capitalized) and the estimated interest portion of rents.
 
 
 
 
 
 
For the Year Ended December 31,
 
 
 
Nine Months Ended September 30, 2015

 
 
2014

 
 
2013

 
 
2012

 
 
2011

 
 
2010

 
 
 
 
 
 
      (In Millions, Except Ratios)
 
COMPUTATION OF FIXED CHARGES:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest expensed and capitalized in continuing operations, including amortization of debt discounts and fees
 
$
98.9
 
 
$
110.7

 
 
$
102.3

 
 
$
95.1

 
 
$
119.9

 
 
$
126.0

 
Interest expensed and capitalized in discontinued operations, including amortization of debt discounts and fees
 
 
—
 
 
 
—

 
 
 
—

 
 
 
0.1

 
 
 
0.7

 
 
 
1.0

 
Interest element of rentals (1)
 
 
15.4
 
 
 
19.8

 
 
 
21.6

 
 
 
22.1

 
 
 
22.3

 
 
 
21.1

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total fixed charges
 
$
114.3
 
 
$
130.5

 
 
$
123.9

 
 
$
117.3

 
 
$
142.9

 
 
$
148.1

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
COMPUTATION OF EARNINGS:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Pre-tax income from continuing operations before equity in net income of nonconsolidated affiliates
 
$
280.7
 
 
$
376.2

 
 
$
384.0

 
 
$
327.3

 
 
$
230.9

 
 
$
179.8

 
Fixed charges
 
 
114.3
 
 
 
130.5

 
 
 
123.9

 
 
 
117.3

 
 
 
142.9

 
 
 
148.1

 
Amortization of capitalized interest
 
 
0.1
 
 
 
0.2

 
 
 
0.1

 
 
 
—

 
 
 
—

 
 
 
—

 
Distributed income of equity investees
 
 
4.5
 
 
 
12.6

 
 
 
11.4

 
 
 
11.0

 
 
 
13.0

 
 
 
8.1

 
Interest capitalized
 
 
(0.6)
 
 
 
(1.5)

 
 
 
(1.9)

 
 
 
(1.0)

 
 
 
(0.5)

 
 
 
(0.4)

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total earnings
 
$
399.0
 
 
$
518.0

 
 
$
517.5

 
 
$
454.6

 
 
$
386.3

 
 
$
335.6

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
RATIO OF EARNINGS TO FIXED CHARGES
 
 
3.5
 
 
 
4.0

 
 
 
4.2

 
 
 
3.9

 
 
 
2.7

 
 
 
2.3

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(1)
 
Management has determined the interest component of rent expense to be 33%.