EX-12.1 2 a12312016-10kex121.htm EXHIBIT 12.1
EXHIBIT 12.1
MOLINA HEALTHCARE, INC.
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

| Year Ended December 31,
| 2016 |  | 2015 |  | 2014 |  | 2013 |  | 2012
| (Dollars in millions)
Earnings: |  |  |  |  |  |  |  |  |
Income before income taxes, continuing operations | $ | 205 |  |  | $ | 322 |  |  | $ | 135 |  |  | $ | 81 |  |  | $ | 23 |
Add fixed charges: |  |  |  |  |  |  |  |  |
Interest expense, including amortization of debt discount | 101 |  |  | 66 |  |  | 57 |  |  | 52 |  |  | 17 |
Estimated interest portion of rental expense | 12 |  |  | 8 |  |  | 5 |  |  | 4 |  |  | 3 |
Total fixed charges | 113 |  |  | 74 |  |  | 62 |  |  | 56 |  |  | 20 |
Total earnings available for fixed charges | $ | 318 |  |  | $ | 396 |  |  | $ | 197 |  |  | $ | 137 |  |  | $ | 43 |
Fixed charges from above: | $ | 113 |  |  | $ | 74 |  |  | $ | 62 |  |  | $ | 56 |  |  | $ | 20 |
Ratio of Earnings to Fixed Charges | 2.8 |  |  | 5.4 |  |  | 3.2 |  |  | 2.4 |  |  | 2.2 |
Total rent expense | $ | 64 |  |  | $ | 44 |  |  | $ | 32 |  |  | $ | 25 |  |  | $ | 20 |
Interest factor | 18 | % |  | 18 | % |  | 16 | % |  | 16 | % |  | 14 | %
Interest component of rental expense | $ | 12 |  |  | $ | 8 |  |  | $ | 5 |  |  | $ | 4 |  |  | $ | 3 |