EX-12 2 cvs-20171231ex12f296371.htm EX-12

Exhibit 12

CVS Health Corporation

Computation of Ratios of Earnings to Fixed Charges

|  | Year Ended December 31,
In millions |  | 2017 |  | 2016 |  | 2015 |  | 2014 |  | 2013
Earnings: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Income from continuing operations before income taxes (a) |  | $ | 8,267 |  |  | $ | 8,635 |  |  | $ | 8,614 |  |  | $ | 7,678 |  |  | $ | 7,528 |
Interest portion of net rental expense (b) |  |  | 802 |  |  |  | 790 |  |  |  | 764 |  |  |  | 786 |  |  |  | 750 |
Interest expense (net of interest capitalized) |  |  | 1,062 |  |  |  | 1,078 |  |  |  | 859 |  |  |  | 615 |  |  |  | 517 |
Adjusted earnings |  | $ | 10,131 |  |  | $ | 10,503 |  |  | $ | 10,237 |  |  | $ | 9,079 |  |  | $ | 8,795 |
Fixed Charges: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest portion of net rental expense (b) |  |  | 802 |  |  |  | 790 |  |  |  | 764 |  |  |  | 786 |  |  |  | 750 |
Interest expense (net of interest capitalized) |  |  | 1,062 |  |  |  | 1,078 |  |  |  | 859 |  |  |  | 615 |  |  |  | 517 |
Interest capitalized |  |  | 8 |  |  |  | 13 |  |  |  | 12 |  |  |  | 19 |  |  |  | 25 |
Total fixed charges |  | $ | 1,872 |  |  | $ | 1,881 |  |  | $ | 1,635 |  |  | $ | 1,420 |  |  | $ | 1,292 |
Ratio of earnings to fixed charges |  |  | 5.41 | x |  |  | 5.58 | x |  |  | 6.26 | x |  |  | 6.39 | x |  |  | 6.81 | x

| (a) |  | Excludes net (income) loss attributable to noncontrolling interest.

| (b) |  | The portion of net rental expense deemed to be representative of the interest factor.