EX-12 5 y44547exv12.htm EX-12: COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES EX-12

Exhibit 12
MERCK & CO., INC. AND SUBSIDIARIES
Computation of Ratios of Earnings to Fixed Charges
(\$ in millions except ratio data)
 Years Ended December 31, 2007 2006 2005 2004 2003 2002 Income from Continuing Operations Before Taxes \$ 3,370.7 \$ 6,221.4 \$ 7,363.9 \$ 7,974.5 \$ 9,051.6 \$ 9,651.7 Add (Subtract): One-third of rents 66.4 67.8 68.2 71.9 75.6 67.2 Interest expense, gross 384.3 375.1 385.5 293.7 350.9 390.6 Interest capitalized, net of amortization 31.8 29.4 (1.0 ) (21.3 ) (30.1 ) (36.9 ) Equity (income) loss from affiliates, net of distributions (454.3 ) (362.5 ) (615.9 ) (421.2 ) 79.2 (156.1 ) Preferred stock dividends, net of tax 120.0 120.0 120.0 151.0 150.9 164.3 Earnings from Continuing Operations \$ 3,518.9 \$ 6,451.2 \$ 7,320.7 \$ 8,048.6 \$ 9,678.1 \$ 10,080.8 One-third of rents \$ 66.4 \$ 67.8 \$ 68.2 \$ 71.9 \$ 75.6 \$ 67.2 Interest expense, gross 384.3 375.1 385.5 293.7 350.9 390.6 Preferred stock dividends 158.1 166.0 166.7 207.1 215.6 234.7 Fixed Charges from Continuing Operations \$ 608.8 \$ 608.9 \$ 620.4 \$ 572.7 \$ 642.1 \$ 692.5 Ratio of Earnings to Fixed Charges from Continuing Operations 6 11 12 14 15 15
For purposes of computing these ratios, “earnings” consist of income from continuing operations before taxes, one-third of rents (deemed by the Company to be representative of the interest factor inherent in rents), interest expense, net of amounts capitalized, equity (income) loss from affiliates, net of distributions, and dividends on preferred stock of subsidiary companies. “Fixed charges” consist of one-third of rents, interest expense as reported in the Company’s consolidated financial statements and dividends on preferred stock of subsidiary companies. Interest expense does not reflect interest on Financial Accounting Standards Board Interpretation No. 48, Accounting for Uncertainty in Income Taxes – an interpretation of FASB Statement No. 109, (“FIN 48”) liabilities.