EX-12 3 a2201962zex-12.htm EX-12

Exhibit 12

 

Abbott Laboratories

Computation of Ratio of Earnings to Fixed Charges

(Unaudited)

(dollars in millions)

 

 

 

2010

 

2009

 

2008

 

2007

 

2006

 

EARNINGS FROM CONTINUING OPERATIONS ADD (DEDUCT)

 

$

4,626

 

$

5,746

 

$

4,734

 

$

3,606

 

$

1,717

 

Taxes on earnings from continuing operations

 

1,087

 

1,448

 

1,122

 

863

 

559

 

Amortization of capitalized interest, net of capitalized interest

 

 

(4

)

6

 

(25

)

(28

)

Noncontrolling interest

 

9

 

7

 

7

 

9

 

8

 

EARNINGS FROM CONTINUING OPERATIONS AS ADJUSTED

 

$

5,722

 

$

7,197

 

$

5,869

 

$

4,453

 

$

2,256

 

FIXED CHARGES Interest on long-term and short-term debt

 

553

 

520

 

528

 

593

 

416

 

Capitalized interest cost

 

20

 

23

 

17

 

42

 

43

 

Rental expense representative of an interest factor

 

110

 

94

 

77

 

69

 

66

 

TOTAL FIXED CHARGES

 

683

 

637

 

622

 

704

 

525

 

TOTAL ADJUSTED EARNINGS FROM CONTINUING OPERATIONS AVAILABLE FOR PAYMENT OF FIXED CHARGES

 

$

6,405

 

$

7,834

 

$

6,491

 

$

5,157

 

$

2,781

 

RATIO OF EARNINGS FROM CONTINUING OPERATIONS TO FIXED CHARGES

 

9.4

 

12.3

 

10.4

 

7.3

 

5.3

 

 

NOTE: For the purpose of calculating this ratio, (i) earnings from continuing operations have been calculated by adjusting earnings from continuing operations for taxes on earnings from continuing operations; interest expense; amortization of capitalized interest, net of capitalized interest; noncontrolling 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.