EX-12.1 3 moh-12312017xex121.htm EXHIBIT 12.1
EXHIBIT 12.1
MOLINA HEALTHCARE, INC.
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

| Year Ended December 31,
| 2017 |  | 2016 |  | 2015 |  | 2014 |  | 2013
| (Dollars in millions)
Earnings: |  |  |  |  |  |  |  |  |
(Loss) income before income taxes, continuing operations | $ | (612 | ) |  | $ | 205 |  |  | $ | 322 |  |  | $ | 135 |  |  | $ | 81 |
Add fixed charges: |  |  |  |  |  |  |  |  |
Interest expense, including amortization of debt discount | 118 |  |  | 101 |  |  | 66 |  |  | 57 |  |  | 52 |
Estimated interest portion of rental expense | 11 |  |  | 12 |  |  | 8 |  |  | 5 |  |  | 4 |
Total fixed charges | 129 |  |  | 113 |  |  | 74 |  |  | 62 |  |  | 56 |
Total earnings available for fixed charges | $ | (483 | ) |  | $ | 318 |  |  | $ | 396 |  |  | $ | 197 |  |  | $ | 137 |
Fixed charges from above: | $ | 129 |  |  | $ | 113 |  |  | $ | 74 |  |  | $ | 62 |  |  | $ | 56 |
Ratio of Earnings to Fixed Charges (1) | — |  |  | 2.8 |  |  | 5.4 |  |  | 3.2 |  |  | 2.4 |
Total rent expense | $ | 75 |  |  | $ | 64 |  |  | $ | 44 |  |  | $ | 32 |  |  | $ | 25 |
Interest factor | 14 | % |  | 18 | % |  | 18 | % |  | 16 | % |  | 16 | %
Interest component of rental expense | $ | 11 |  |  | $ | 12 |  |  | $ | 8 |  |  | $ | 5 |  |  | $ | 4 |

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(1) | Earnings were inadequate to cover fixed charges by $612 million for the year ended December 31, 2017.