EX-99.4 6 a09-13592_2ex99d4.htm EX-99.4

Exhibit 99.4

 

EXHIBIT 12.1

 

Cephalon, Inc.

Computation of Ratios of Earnings to Fixed Charges

(In thousands)

 

 

 

Year Ended December 31,

 

 

 

As
Adjusted
2004(1), (3)

 

As
Adjusted
2005(1), (3)

 

As
Adjusted
2006(1), (3)

 

As
Adjusted
2007(1), (3)

 

As
Adjusted
2008(1), (2)

 

Determination of earnings:

 

 

 

 

 

 

 

 

 

 

 

Income (loss) before income taxes

 

$

(33,808

)

$

(264,506

)

$

192,166

 

$

(123,276

)

$

134,070

 

Add:

 

 

 

 

 

 

 

 

 

 

 

Amortization of interest capitalized in current or prior periods

 

 

 

52

 

98

 

250

 

Fixed charges

 

29,918

 

81,007

 

97,054

 

79,993

 

84,762

 

Total earnings

 

$

(3,890

)

$

(183,499

)

$

289,272

 

$

(43,185

)

$

219,082

 

 

 

 

 

 

 

 

 

 

 

 

 

Fixed charges:

 

 

 

 

 

 

 

 

 

 

 

Interest expense and amortization of debt discount and premium on all indebtedness

 

26,481

 

75,257

 

87,805

 

70,866

 

75,233

 

Appropriate portion of rentals

 

3,437

 

5,750

 

9,249

 

9,127

 

9,529

 

Fixed charges

 

29,918

 

81,007

 

97,054

 

79,993

 

84,762

 

 

 

 

 

 

 

 

 

 

 

 

 

Capitalized interest

 

 

1,044

 

1,766

 

768

 

77

 

 

 

 

 

 

 

 

 

 

 

 

 

Total fixed charges

 

$

29,918

 

$

82,051

 

$

98,820

 

$

80,761

 

$

84,839

 

 

 

 

 

 

 

 

 

 

 

 

 

Ratio of earnings to fixed charges(*)

 

 

 

2.93

 

 

2.58

 

 

 

 

 

 

 

 

 

 

 

 

 

Deficiency of earnings to fixed charges

 

33,808

 

265,550

 

 

123,946

 

 

 


(*)    For the years ended December 31, 2004, 2005 and 2007, no ratios are provided because earnings were insufficient to cover fixed charges.

 

(1) As adjusted for FASB Staff Position APB 14-1, “Accounting for Convertible Debt Instruments That May Be Settled in Cash upon Conversion (Including Partial Cash Settlement).” See Note 1 of the Consolidated Financial Statements for additional information.

 

(2)  As adjusted for FAS No. 160, “Noncontrolling Interests in Consolidated Financial Statements.”

 

(3)  As adjusted for the retrospective application of a change in accounting method for inventory.  See Note 1 of the Consolidated Financial Statements for additional information.