EX-12 4 d447757dex12.htm COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES Computation of Ratios of Earnings to Fixed Charges

Exhibit 12

MERCK & CO., INC. AND SUBSIDIARIES

Computation of Ratios of Earnings to Fixed Charges

($ in millions except ratio data)

 

     Nine Months
Ended
September 30,
    Years Ended December 31,  
     2012     2011     2010     2009     2008     2007  

Income Before Taxes

   $ 7,405      $ 7,334      $ 1,653      $ 15,290      $ 9,931      $ 3,492   

Add (Subtract):

            

One-third of rents

     102        138        144        79        75        66   

Interest expense, gross

     524        749        715        460        251        384   

Interest capitalized, net of amortization

     (16     (2 )     3        27        42        32   

Equity (income) loss from affiliates, net of distributions

     (229     (394 )     (263 )     (511 )     (494 )     (454 )
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Earnings as defined

   $ 7,786      $ 7,825      $ 2,252      $ 15,345      $ 9,805      $ 3,520   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

One-third of rents

   $ 102      $ 138      $ 144      $ 79      $ 75      $ 66   

Interest expense, gross

     524        749        715        460        251        384   

Preferred stock dividends

     124        138        202        143        145        158   
    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Fixed Charges

   $ 750      $ 1,025      $ 1,061      $ 682      $ 471      $ 608   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Ratio of Earnings to Fixed Charges

     10        8        2        23        21        6   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

For purposes of computing these ratios, “earnings” consist of income before taxes, one-third of rents (deemed by the Company to be representative of the interest factor inherent in rents), interest expense, interest capitalized, net of amortization and equity (income) loss from affiliates, net of distributions. “Fixed charges” consist of one-third of rents, interest expense as reported in the consolidated financial statements and dividends on preferred stock. Interest expense does not include interest related to uncertain tax positions.