EX-12 2 a07-25417_1ex12.htm EX-12

Exhibit 12

 

 

Abbott Laboratories

 

Computation of Ratio of Earnings to Fixed Charges

 

(Unaudited)

 

(dollars in millions)

 

 

 

 

 

Nine Months Ended

 

 

 

September 30, 2007

 

Net Earnings

 

$

2,403

 

Add (deduct):

 

 

 

Taxes on earnings

 

583

 

Capitalized interest cost, net of amortization

 

(15

)

Minority interest

 

7

 

 

 

 

 

Earnings from Operations as adjusted

 

2,978

 

 

 

 

 

Fixed Charges:

 

 

 

Interest on long-term and short-term debt

 

448

 

Capitalized interest cost

 

28

 

Rental expense representative of an interest factor

 

52

 

 

 

 

 

Total Fixed Charges

 

528

 

 

 

 

 

Total adjusted earnings available for payment of fixed charges

 

$

3,506

 

 

 

 

 

Ratio of earnings to fixed charges

 

6.6

 

 

 

 

 

 

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