EX-12 9 a2127912zex-12.htm EXHIBIT 12

Exhibit 12

 

Abbott Laboratories

Computation of Ratio of Earnings to Fixed Charges

(Unaudited)

(dollars in millions)

 

 

 

2003

 

2002

 

2001

 

2000

 

1999

 

 

 

 

 

 

 

 

 

 

 

 

 

NET EARNINGS

 

$

2,753

 

$

2,794

 

$

1,550

 

$

2,786

 

$

2,446

 

ADD (DEDUCT)

 

 

 

 

 

 

 

 

 

 

 

Taxes on earnings

 

981

 

880

 

333

 

1,030

 

951

 

Amortization of capitalized interest, net of capitalized interest

 

11

 

8

 

(6

)

(3

)

(1

)

Minority interest

 

11

 

18

 

17

 

8

 

8

 

 

 

 

 

 

 

 

 

 

 

 

 

NET EARNINGS AS ADJUSTED

 

$

3,756

 

$

3,700

 

$

1,894

 

$

3,821

 

$

3,404

 

 

 

 

 

 

 

 

 

 

 

 

 

FIXED CHARGES

 

 

 

 

 

 

 

 

 

 

 

Interest on long-term and short-term debt

 

188

 

239

 

307

 

114

 

145

 

Capitalized interest cost

 

5

 

8

 

22

 

18

 

13

 

Rental expense represenative of an interest factor

 

63

 

59

 

50

 

48

 

44

 

 

 

 

 

 

 

 

 

 

 

 

 

TOTAL FIXED CHARGES

 

256

 

306

 

379

 

180

 

202

 

 

 

 

 

 

 

 

 

 

 

 

 

TOTAL ADJUSTED EARNINGS AVAILABLE FOR PAYMENT OF FIXED CHARGES

 

$

4,012

 

$

4,006

 

$

2,273

 

$

4,001

 

$

3,606

 

 

 

 

 

 

 

 

 

 

 

 

 

RATIO OF EARNINGS TO FIXED CHARGES

 

15.7

 

13.1

 

6.0

 

22.2

 

17.9

 

 

NOTE: For the purpose of calculating this ratio, (i) earnings have been calculated by adjusting net earnings for taxes on earnings; interest expense; amortization of capitalized interest, net of capitalized interest; minority interest; and the portion of rentals representative of the interest factor, (ii) Abbott considers one-third of rental expense to be the amount representing return on capital, and (iii) fixed charges comprise total interest expense, including capitalized interest and such portion of rentals.