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Exhibit 12.1
 
Hospira, Inc.
 
Computation of Ratio of Earnings to Fixed Charges
 
(Unaudited)
 
(dollars in millions except ratios)
 
 
For the Years Ended
 
2014
 
2013
 
2012
 
2011
 
2010
Income (Loss) from Continuing Operations Before Income Taxes or Equity Income
$
388.2

 
$
(123.2
)
 
$
(41.9
)
 
$
(27.1
)
 
$
379.3

Add:
 

 
 
 
 
 
 
 
 
One-third of rents
14.0

 
10.4

 
13.7

 
10.9

 
9.1

Interest expense
77.2

 
86.2

 
86.3

 
93.1

 
101.1

Amortization of capitalized interest
10.6

 
9.4

 
7.2

 
6.1

 
2.8

 
 

 
 
 
 
 
 
 
 
Earnings (Loss) from Continuing Operations
$
490.0

 
$
(17.2
)
 
$
65.3

 
$
83.0

 
$
492.3

 
 

 
 
 
 
 
 
 
 
Fixed charges:
 

 
 
 
 
 
 
 
 
One-third of rents
$
14.0

 
$
10.4

 
$
13.7

 
$
10.9

 
$
9.1

Interest expense
77.2

 
86.2

 
86.3

 
93.1

 
101.1

Interest capitalized
31.6

 
23.5

 
18.8

 
12.4

 
8.4

 
 

 
 
 
 
 
 
 
 
Fixed Charges from Continuing Operations
$
122.8

 
$
120.1

 
$
118.8

 
$
116.4

 
$
118.6

 
 

 
 
 
 
 
 
 
 
Ratio of Earnings to Fixed Charges from Continuing Operations
4.0

 
*

 
0.5

 
0.7

 
4.2

 
For purposes of computing this ratio, “loss” or “earnings” consist of income (loss) from continuing operations before taxes, one-third of rents (deemed by Hospira to be representative of the interest factor inherent in rents), interest expense and amortization of capitalized interest.  “Fixed charges” consist of one-third of rents, interest expense and interest capitalized.

* Earnings for the year ended December 31, 2013, were inadequate to cover fixed charges. For the year ended December 31, 2013, additional earnings of $137.3 million would have been required to make the ratio 1.0x.