EX-12 14 y94582exv12.htm COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
 

Exhibit 12

SCHERING-PLOUGH CORPORATION AND SUBSIDIARIES
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(Dollars in millions)

                                                 
    Years Ended December 31
    2003   2002   2001   2000   1999   1998
   
 
 
 
 
 
(Loss)/Income Before IncomeTaxes
   $ (46 )   $ 2,563     $ 2,523     $ 3,188     $ 2,795     $ 2,326  
Add Fixed Charges:
                                                
Interest Expense
     81       28       40       44       29       19  
One-third of Rental Expense
     30       27       24       24       22       19  
Capitalized Interest
     11       24       25       20       12       9  
 
    
     
     
     
     
     
 
Total Fixed Charges
     122       79       89       88       63       47  
Less: Capitalized Interest
     11       24       25       20       12       9  
Add: Amortization of Capitalized Interest
     9       8       7       7       7       7  
 
    
     
     
     
     
     
 
Earnings Before Income Taxes and Fixed Charges (other than Capitalized Interest)
   $ 74     $ 2,626     $ 2,594     $ 3,263     $ 2,853     $ 2,371  
 
    
     
     
     
     
     
 
Ratio of Earnings to Fixed Charges
     1       33       29       37       45       50  
 
    
     
     
     
     
     
 

“Earnings” consist of income before income taxes and fixed charges (other than capitalized interest). “Fixed charges” consist of interest expense, capitalized interest and one-third of rentals which Schering-Plough believes to be a reasonable estimate of an interest factor on leases.