Attached files
| file | filename |
|---|---|
| EXCEL - IDEA: XBRL DOCUMENT - OMNICARE INC | Financial_Report.xls |
| EX-32.1 - SECTION 1350 CERTIFICATION OF CHIEF EXECUTIVE OFFICER OF THE COMPANY - OMNICARE INC | ocrq314ex321.htm |
| EX-31.1 - RULE 13-A-14(A) CERTIFICATION OF CHIEF EXECUTIVE OFFICER OF THE COMPANY - OMNICARE INC | ocrq314ex311.htm |
| EX-31.2 - RULE 13-A-14(A) CERTIFICATION OF CHIEF FINANCIAL OFFICER OF THE COMPANY - OMNICARE INC | ocrq314ex312.htm |
| 10-Q - 10-Q - OMNICARE INC | a10qq32014.htm |
| EX-32.2 - SECTION 1350 CERTIFICATION OF CHIEF FINANCIAL OFFICER OF THE COMPANY - OMNICARE INC | ocrq314ex322.htm |
Exhibit 12
Statement of Computation of Ratio of Earnings to Fixed Charges
Omnicare, Inc. and Subsidiary Companies
(in thousands, except ratio)
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Income (loss) before income taxes (2) | $ | 107,025 | $ | (95,701 | ) | $ | 310,602 | $ | 60,269 | ||||||||
Add fixed charges: | |||||||||||||||||
Interest expense | 21,916 | 23,146 | 66,612 | 68,380 | |||||||||||||
Amortization of discount on convertible notes (1) | 6,139 | 6,218 | 18,484 | 18,474 | |||||||||||||
Amortization of debt issuance expense | 828 | 922 | 2,506 | 2,849 | |||||||||||||
Interest expense-special items (2) | — | 4,784 | 647 | 4,784 | |||||||||||||
Interest portion of rent expense | 3,603 | 4,145 | 11,196 | 12,157 | |||||||||||||
Adjusted income (loss) | $ | 139,511 | $ | (56,486 | ) | $ | 410,047 | $ | 166,913 | ||||||||
Fixed charges: | |||||||||||||||||
Interest expense | $ | 21,916 | $ | 23,146 | $ | 66,612 | $ | 68,380 | |||||||||
Amortization of discount on convertible notes (1) | 6,139 | 6,218 | 18,484 | 18,474 | |||||||||||||
Amortization of debt issuance expense | 828 | 922 | 2,506 | 2,849 | |||||||||||||
Interest expense-special items (2) | — | 4,784 | 647 | 4,784 | |||||||||||||
Interest portion of rent expense | 3,603 | 4,145 | 11,196 | 12,157 | |||||||||||||
Fixed charges | $ | 32,486 | $ | 39,215 | $ | 99,445 | $ | 106,644 | |||||||||
Ratio of earnings to fixed charges(3) | 4.3 | x | — | x | 4.1 | x | 1.6 | 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 from applicable financial covenant coverage calculations. The following listing of charges, which are included in the Company’s income from continuing operations before income taxes, includes certain of these excludable charges (in thousands): |
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Settlement, litigation and other related charges (a) | $ | 12,868 | $ | 143,484 | $ | 27,467 | $ | 169,615 | |||||||||
Other charges (b) | 3,999 | 61,632 | 25,559 | 96,906 | |||||||||||||
Total - non-interest expense special items | $ | 16,867 | $ | 205,116 | $ | 53,026 | $ | 266,521 | |||||||||
Interest expense special items (c) | $ | — | $ | 4,784 | $ | 647 | $ | 4,784 | |||||||||
(a) See further discussion at the "Commitment and Contingencies" note of the Notes to the Consolidated Financial Statements. | |||||||||||||||||
(b) See further discussion at the "Other Charges" caption of the "Significant Accounting Policies" note of the Notes to the Consolidated Financial Statements. | |||||||||||||||||
(c) See the "Debt" note of the Notes to the Consolidated Financial Statements. | |||||||||||||||||
(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. Due to the registrant’s loss (including the charges/(credits) above) in the three months ended September 30, 2013, the ratio coverage was less than 1:1. The registrant would have needed to generate additional earnings of $96 million to achieve a coverage of 1:1 in the three months ended September 30, 2013. |